Texas Real Estate Exam Practice

Question 1 of 5

Agency & BrokerageEasy

What is a 'net listing,' and is it permitted in Texas?

AA standard listing with a fixed percentage commission

BA listing only for commercial, income-producing property types

CA listing setting a seller's minimum, keeping the rest as fee

DA listing that automatically renews every 90 days

Explanation

A net listing sets a minimum amount the seller must receive, with any excess becoming the broker's fee — Texas discourages this arrangement because it creates a direct conflict between the broker's interest and the seller's, and it isn't banned outright but carries real risk and disclosure duties. It isn't simply a fixed-percentage listing, isn't tied to commercial property, and doesn't involve automatic renewal.

Question 2 of 5

Agency & BrokerageEasy

What is the difference between an 'exclusive right to sell' listing and an 'exclusive agency' listing?

AExclusive right to sell listings cannot include a term date

BThere is no real difference between the two listing types

CExclusive agency listings are illegal in Texas

DUnder exclusive right to sell, the broker earns a fee

Explanation

Under an exclusive right to sell, the listing broker earns a fee no matter who procures the buyer, including the seller — under exclusive agency, the seller keeps the right to sell without owing a fee if they find the buyer themselves. The two types are meaningfully different, exclusive agency listings are legal in Texas, and exclusive right to sell listings do have a term date like any listing agreement.

Question 3 of 5

Agency & BrokerageEasy

What is an 'open listing' in Texas real estate practice?

AA non-exclusive listing where multiple brokers may compete for the fee

BA listing that requires no written agreement at all

CA listing available only during open-house events

DA listing that is publicly posted on a county courthouse bulletin board

Explanation

An open listing lets a seller work with multiple brokers non-exclusively, and only the broker who actually procures the buyer earns a fee — it has nothing to do with courthouse postings, isn't limited to open-house timing, and Texas listing agreements generally still need to be in writing to be enforceable.

Question 4 of 5

Agency & BrokerageMedium

What is the key difference between a client and a customer in a Texas real estate transaction?

AA customer is anyone who hasn't signed a contract yet

BA client is owed fiduciary duty; a customer isn't

CA client always pays commission, a customer never does

DA client is the buyer, a customer is the seller

Explanation

A client has an agency relationship with a license holder and is owed fiduciary duties (loyalty, confidentiality, and the rest); a customer isn't represented but is still owed basic honesty and fair dealing. Who pays commission doesn't define the relationship, and the buyer/seller and pre-contract distinctions aren't what separates the two terms.

Question 5 of 5

Agency & BrokerageMedium

Under Texas law, what is an intermediary in a real estate transaction?

AA broker representing both parties, with written consent

BA third party who inspects for the seller

CAn attorney who reviews the contract for errors

DA lender's representative verifying financing

Explanation

An intermediary is a broker who, with the written consent of both parties, represents both the buyer and the seller in the same transaction while remaining neutral on material issues like price. That's distinct from an inspector, an attorney, or a lender's representative, none of whom are acting as a broker representing both principals.

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