Texas Real Estate Exam Practice

Question 1 of 5

Property DisclosureEasy

Is a transfer by a fiduciary (such as an estate executor) in the course of administering an estate generally exempt from the disclosure requirement?

ANo, executors must always provide full disclosure

BYes, but only for estates valued under a set amount

CNo, this exemption applies only to trustees, never executors

DYes, this kind of fiduciary transfer is generally exempt

Explanation

Transfers made by a fiduciary administering an estate are generally exempt from the disclosure requirement, since the fiduciary typically lacks the prior owner's direct knowledge of the property — it isn't a universal executor duty, isn't gated by estate value, and the exemption isn't limited to only trustees.

Question 2 of 5

Property DisclosureEasy

Is a transfer of property to a spouse or child generally exempt from the Seller's Disclosure Notice requirement?

ANo, family transfers always require the full notice

BYes, but only if the property has no existing defects

CYes, transfers to a spouse or child are generally exempt

DNo, TREC must individually approve each family exemption, with no exceptions

Explanation

Texas law generally exempts transfers to a spouse or child from the disclosure requirement — it isn't required for every family transfer, isn't conditioned on the property being defect-free, and doesn't need TREC's individual approval, since TREC doesn't administer this Property Code exemption.

Question 3 of 5

Property DisclosureEasy

Is a transfer of property between co-owners (such as one joint owner buying out another) generally exempt from the Seller's Disclosure Notice requirement?

ANo, co-owner transfers are specifically excluded from any exemption

BYes, transfers between existing co-owners are generally exempt

CYes, but only if the property is under a set price

DNo, every transfer of any kind requires the notice

Explanation

Texas law generally exempts transfers between existing co-owners from the Seller's Disclosure Notice requirement, since a co-owner already has direct knowledge of the property — it isn't a universal no-exceptions requirement, isn't gated by price, and isn't specifically excluded from the exemption list.

Question 4 of 5

Property DisclosureMedium

Which of these is a commonly recognized exemption from the Texas Seller's Disclosure Notice requirement?

AA sale where the buyer has an agent

BA transfer by foreclosure or trustee's sale

CA sale that closes within 30 days of listing

DA sale priced above the local median

Explanation

Foreclosure and trustee-sale transfers are among the recognized exemptions, since the seller in that situation typically isn't the prior owner with knowledge of the property's condition. Buyer representation, sale price, and how quickly a deal closes have no bearing on whether the disclosure requirement applies.

Question 5 of 5

Property DisclosureMedium

What is the Seller's Disclosure Notice generally required for in Texas?

AMost residential sales, with statutory exemptions

BOnly new construction never occupied

COnly first-time homebuyer transactions

DEvery real estate transaction, no exceptions

Explanation

The Seller's Disclosure Notice applies to most residential sales but has specific statutory exemptions (such as certain foreclosure or court-ordered transfers) — it isn't truly exception-free, and it isn't limited to first-time buyers. New construction is actually one of the more common exemptions, not the requirement's main target.

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