Step2Study

Texas Real Estate Sales Agent Exam practice questions

204 free questions with answers and explanations.

Practice test
  1. 51.A real estate sales agent is preparing an advertisement for a property listed for sale. According to TREC advertising rules, which of the following information is REQUIRED to be included in the advertisement?Texas Real Estate Law
  2. 52.A landlord and a tenant enter into a lease agreement for a commercial property. The lease specifies an initial base rent of $3,000 per month for the first year, with subsequent annual increases tied to the Consumer Price Index (CPI). This type of lease is known as what?Contracts
  3. 53.A listing broker receives multiple offers on a property. The seller instructs the broker to only present offers from buyers who are pre-approved for a mortgage, and to disregard any cash offers or offers with financing contingencies. What is the listing broker's ethical and legal obligation under TRELA and agency law?Texas Real Estate Law
  4. 54.A tenant signs a lease agreement for a commercial space. The lease states that the tenant is responsible for paying a fixed monthly rent, plus a pro-rata share of the building's property taxes, insurance, and common area maintenance (CAM) charges. What type of lease has the tenant entered into?Contracts
  5. 55.A tenant is leasing a retail space under an agreement where the rent is calculated as a base amount plus a percentage of the tenant's gross sales above a certain threshold. What type of lease is this?Contracts
  6. 56.A real estate sales agent is representing a buyer who wants to include a clause in their offer that makes the purchase contingent upon the buyer selling their current home. Which of the following forms or methods is the most appropriate way for the sales agent to include this contingency in the contract?Texas Real Estate Law
  7. 57.A property manager, licensed as a real estate broker, is managing an apartment complex. A tenant reports a broken dishwasher and a leaky faucet. The property manager instructs the tenant to contact a specific repair company directly and pay for the repairs, then deduct the cost from the next month's rent. Is this action permissible under Texas property management laws and TREC rules?Texas Real Estate Law
  8. 58.A real estate sales agent is preparing a Comparative Market Analysis (CMA) for a seller client. In order to provide an accurate assessment of market value, which of the following actions is the sales agent permitted to perform under TREC Rules?Texas Real Estate Law
  9. 59.A real estate broker operating as an intermediary has a buyer client and a seller client for the same transaction. The buyer client asks the broker to negotiate a lower price. The seller client, unaware of the buyer's request, asks the broker if the buyer would accept a higher price. What is the broker's appropriate action regarding these confidential requests?Texas Real Estate Law
  10. 60.A real estate sales agent is assisting a seller with completing the Seller's Disclosure Notice. The seller informs the agent that they are unaware of any defects, but the agent personally observed a significant crack in the foundation during the initial walkthrough. What is the agent's MOST appropriate course of action?Texas Real Estate Law
  11. 61.A buyer makes a written offer to purchase a property for $350,000. The seller receives the offer and responds by changing the price to $360,000 and the closing date, then signs and returns it to the buyer. What is the legal effect of the seller's action?Contracts
  12. 62.A tenant has a one-year lease agreement for an apartment. Three months into the lease, the tenant's employer relocates them to another city. The tenant finds a new person to take over the remainder of the lease, and the landlord agrees to release the original tenant from all future liability, accepting the new person as the sole tenant. What legal action has occurred?Contracts
  13. 63.A buyer is interested in purchasing a property in Texas and asks their real estate agent about the mineral rights associated with the property. The agent, who is not an attorney, provides detailed advice on how to reserve mineral rights and drafts a complex addendum for the buyer to include in the contract. Which of the following statements is true regarding the agent's actions?Texas Real Estate Law
  14. 64.A buyer is interested in purchasing a property but wants to ensure they have the right to inspect it thoroughly, obtain financing, and receive a clear title before being fully committed. Which clause in the TREC One to Four Family Residential Contract (Resale) allows the buyer to terminate the contract if these conditions are not met?Contracts
  15. 65.A real estate broker operating in Texas wants to open a branch office. According to TREC Rules, which of the following is REQUIRED for the branch office?Texas Real Estate Law
  16. 66.A tenant has a one-year lease agreement for an apartment. Three months into the lease, the tenant's employer relocates them to another city. The tenant finds a suitable replacement to take over the remainder of the lease, and the landlord agrees to release the original tenant from all future obligations, substituting the new tenant in their place. This legal action is known as what?Contracts
  17. 67.A real estate sales agent is representing a buyer who wants to purchase a property with significant structural issues. The buyer is aware of these issues and intends to undertake major renovations. The agent advises the buyer to include an 'as-is' clause in the contract. What is the implication of an 'as-is' clause in a Texas real estate contract?Texas Real Estate Law
  18. 68.A seller accepts an offer on their home, and both parties sign a TREC One to Four Family Residential Contract (Resale). Before closing, the seller's house is significantly damaged by a fire, rendering it uninhabitable. The contract does not explicitly address property damage before closing. Under Texas law, what is the most likely outcome for the contract?Contracts
  19. 69.A real estate sales agent is involved in a transaction where a contract for sale has been signed by both parties. Before closing, the buyer decides they no longer wish to purchase the property for personal reasons and wants to terminate the contract. The contract includes the TREC promulgated 'Addendum for 'Back-Up' Contract' and the 'Third Party Financing Addendum'. Which of the following allows the buyer to terminate and potentially receive their earnest money back?Texas Real Estate Law
  20. 70.A property owner wants to lease their commercial building to a tenant for five years. The owner wants to ensure that the rental income keeps pace with inflation and property value increases over time, but without the complexity of tying it to a specific economic index. Which lease clause would best achieve this goal by scheduling predetermined rent increases?Contracts
  21. 71.A land developer enters into an option contract to purchase 50 acres of undeveloped land. The developer pays an option fee of $10,000 for a 90-day option period. During this period, the developer discovers unforeseen environmental contamination that would make the project economically unfeasible. What is the developer's most likely course of action and financial outcome?Contracts
  22. 72.A buyer and seller have signed a TREC One to Four Family Residential Contract (Resale). The buyer's loan officer informs them that their mortgage application requires additional documentation, delaying the loan approval beyond the contract's specified closing date. The buyer's agent advises them that they can likely extend the closing date without breaching the contract, thanks to a specific provision. Which provision is the agent most likely referring to?Contracts
  23. 73.A real estate sales agent is listing a property for sale. The seller informs the agent that there is a known underground storage tank (UST) on the property, which was used for heating oil many years ago and is now empty. What is the sales agent's primary responsibility regarding this information?Texas Real Estate Law
  24. 74.A real estate agent is preparing a listing agreement for a seller who is selling their primary residence. The seller is concerned about potential liability if a prospective buyer is injured on the property during a showing. Which clause in the listing agreement would typically protect the agent from such claims?Contracts
  25. 75.A licensed real estate sales agent is preparing to list a residential property for sale. The agent discovers that the property was built in 1972. According to federal and state regulations, which of the following disclosures is most critical for the agent to ensure is provided to potential buyers?Texas Real Estate Law
  26. 76.A buyer's agent, working under an exclusive buyer representation agreement, discovers a significant structural defect during a property showing that the seller's disclosure statement did not mention. What is the buyer's agent's primary ethical and legal obligation regarding this discovery?Texas Real Estate Law
  27. 77.A commercial tenant's lease agreement includes a clause stating that if the landlord sells the property during the lease term, the new owner must honor the existing lease terms and cannot evict the tenant simply due to the change in ownership. This clause is a common example of what?Contracts
  28. 78.A real estate sales agent is representing a buyer who is making an offer on a residential property. The buyer wants to include a provision in the contract that is not covered by any existing TREC-promulgated addenda. The sales agent drafts this special provision directly into the 'Special Provisions' paragraph of the TREC One to Four Family Residential Contract (Resale). What is the consequence of this action under TREC Rules?Texas Real Estate Law
  29. 79.A buyer's agent, representing a client interested in a residential property, discovers that the seller has not provided a Seller's Disclosure Notice. The property is a single-family home previously occupied by the seller. What is the agent's primary responsibility regarding this disclosure?Texas Real Estate Law
  30. 80.A real estate sales agent is working with a buyer who expresses concerns about potential lead-based paint hazards in a pre-1978 home. Which of the following statements accurately describes the sales agent's responsibility regarding lead-based paint disclosure under federal law, as implemented in Texas?Texas Real Estate Law
  31. 81.A real estate agent is preparing a listing agreement for a seller who is concerned about paying a commission if they find the buyer themselves. The agent explains that a specific type of listing agreement would allow the seller to avoid paying a commission under those circumstances. Which type of listing agreement is the agent most likely describing?Contracts
  32. 82.A buyer is interested in purchasing a property located within a municipal utility district (MUD). According to Texas law, what specific disclosure must the seller provide to the buyer regarding the MUD?Texas Real Estate Law
  33. 83.A licensed real estate sales agent is assisting a seller client who informs the agent that the property has an underground storage tank (UST) that was used for heating oil in the 1960s but was decommissioned and filled with sand in 1990. The agent should advise the seller that:Texas Real Estate Law
  34. 84.A buyer client is interested in purchasing a property that is part of a Property Owners' Association (POA). The sales agent explains that the buyer has certain rights to review documents related to the POA. Which of the following documents is the buyer legally entitled to receive and review under Texas law, typically provided by the seller?Texas Real Estate Law
  35. 85.A property owner wants to lease their commercial building to a tenant for five years. To account for potential increases in operating costs over the lease term, the owner wants a clause that ties rent adjustments to a recognized economic indicator. Which type of clause should be included in the lease agreement?Contracts
  36. 86.A real estate sales agent is presenting an offer to a seller client. The offer includes a special provision drafted by the buyer's agent that states, 'Seller agrees to pay for any and all repairs identified in the inspection report, up to a maximum of $5,000.' Which of the following is the most appropriate action for the sales agent to advise their seller client?Texas Real Estate Law
  37. 87.A real estate agent is preparing a listing agreement for a commercial property. The seller wants to ensure they retain the right to sell the property themselves without owing a commission to the agent, but still wants the agent to market the property to other potential buyers. Which type of listing agreement best fits the seller's wishes?Contracts
  38. 88.A licensed real estate sales agent in Texas is representing a buyer. The buyer wants to include a provision in the purchase contract that allows them to terminate the contract if their loan application is denied within 10 days of the effective date. Which of the following clauses would best achieve this for the buyer?Texas Real Estate Law
  39. 89.A real estate sales agent is found by TREC to have engaged in misrepresentation while advertising a property. What is the PRIMARY purpose of TREC's disciplinary actions, such as license suspension or revocation, in such a case?Texas Real Estate Law
  40. 90.A real estate sales agent is preparing an advertisement for a listing. Which of the following is a mandatory requirement for all advertisements by a licensed sales agent in Texas, according to TREC advertising rules?Texas Real Estate Law
  41. 91.A Texas homeowner wants to challenge the assessed value of their property because they believe it is too high. Which of the following government rights or powers allows the local appraisal district to levy taxes on the property?Property Ownership
  42. 92.A Texas homeowner has an agreement with their utility company that allows the company to run power lines across a corner of their property. This agreement grants the utility company a permanent, non-possessory right to use the land for a specific purpose. This is an example of:Property Ownership
  43. 93.A buyer's agent is conducting a CMA for a client interested in purchasing a property. The agent finds a comparable property that sold last month for $350,000. This comparable property has an attached two-car garage, while the subject property has a detached one-car garage. The market value difference for the garage types is estimated at $15,000 in favor of the attached two-car garage. How should the agent adjust the comparable property?Valuation and Market Analysis
  44. 94.A developer is planning a new residential community in a growing Texas city. Before construction can begin, the developer must submit detailed plans to the local government for review and approval to ensure compliance with zoning ordinances, building codes, and infrastructure requirements. What is this approval process commonly known as?Property Ownership
  45. 95.A real estate agent is asked to determine the value of a unique historic property that generates rental income from a small commercial space on the ground floor and residential units above. Which appraisal approach would be most appropriate for this type of property?Valuation and Market Analysis
  46. 96.A client is interested in purchasing a condominium unit in a high-rise building in downtown Austin. What type of ownership is typically associated with a condominium, where the owner holds title to the air space within their unit and an undivided interest in the common elements?Property Ownership
  47. 97.In the valuation process, what is the 'highest and best use' of a property?Valuation and Market Analysis
  48. 98.Which of the following would be considered an example of external obsolescence affecting a property's value?Valuation and Market Analysis
  49. 99.A buyer is interested in a property that includes mineral rights. The seller, however, previously conveyed one-half of the mineral rights to a third party. If the buyer purchases the surface estate, what will be the status of the mineral rights?Property Ownership
  50. 100.An appraiser is valuing a single-family home using the sales comparison approach. Which of the following factors would likely require the MOST significant dollar adjustment to a comparable property's sales price?Valuation and Market Analysis