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Texas Real Estate Sales Agent Exam practice questions

204 free questions with answers and explanations.

Practice test
  1. 101.A Texas real estate license holder is engaged by a client to provide an opinion of value for a property. The license holder is not a licensed appraiser. Under what circumstances is it permissible for the license holder to provide this opinion of value?Valuation and Market Analysis
  2. 102.An appraiser determines that a property's value is negatively impacted because its five-bedroom layout only has one bathroom, which is below market expectations for a home of its size. This loss in value is best described as:Valuation and Market Analysis
  3. 103.A buyer is considering purchasing a home in a large master-planned community in Texas. The community has a Homeowners Association (HOA) and extensive rules regarding landscaping, exterior paint colors, and allowable structures. These rules are examples of:Property Ownership
  4. 104.An appraiser is valuing a commercial property that has a net operating income (NOI) of $120,000 per year. Similar properties in the area have recently sold at a capitalization rate (cap rate) of 8%. Using the income capitalization approach, what is the estimated value of this property?Valuation and Market Analysis
  5. 105.A property owner wants to ensure that a portion of their land is preserved as a natural habitat forever, even after they sell the property. They enter into an agreement with a conservation organization that prohibits future development on that specific parcel. This arrangement is best described as a(n):Property Ownership
  6. 106.A homeowner in a Texas subdivision discovers that their neighbor has built a new fence that extends 2 feet onto their property. The homeowner has evidence from a recent survey confirming the encroachment. What is the most appropriate initial course of action for the homeowner?Property Ownership
  7. 107.A Texas rancher has a stream flowing through their property. Under Texas law, what type of water rights apply to the use of this stream, assuming it is a navigable waterway?Property Ownership
  8. 108.A property owner holds a life estate in a property, with the provision that upon their death, the property will pass to their niece. The niece holds a future interest in the property. What type of estate does the niece possess?Property Ownership
  9. 109.A Texas couple purchased a property with a deed containing a condition that states, 'The property shall never be used for commercial purposes; if it is, ownership shall automatically revert to the grantor or their heirs.' What type of estate has this couple acquired?Property Ownership
  10. 110.A married couple in Texas owns their primary residence. If one spouse dies without a will, how will the deceased's share of community property generally pass, assuming no children from a prior marriage and no separate property?Property Ownership
  11. 111.A developer plans to build a new subdivision. The county zoning ordinance specifies that all residential lots must have a minimum area of 10,000 square feet. This type of land use control, which dictates how property can be used and developed, is an example of:Property Ownership
  12. 112.A buyer's agent is assisting a client with purchasing a home in a rapidly appreciating market. The agent has identified several comparable sales, but all of them closed 3-6 months ago. To provide the most accurate Comparative Market Analysis (CMA), which adjustment would be most crucial for the agent to consider?Valuation and Market Analysis
  13. 113.A real estate agent is preparing a Comparative Market Analysis (CMA) for a client. When comparing the subject property to a recently sold comparable property, the comparable has a significantly larger, newly renovated kitchen compared to the subject. How should the agent adjust for this difference?Valuation and Market Analysis
  14. 114.A tenant in a commercial lease installs specialized machinery for their manufacturing business. The lease agreement is silent on whether these items are personal property or fixtures. Upon the expiration of the lease, the tenant plans to remove the machinery. What is the legal classification of this machinery?Property Ownership
  15. 115.A real estate agent is preparing a Comparative Market Analysis (CMA) for a seller client. The agent has identified three comparable properties that recently sold. One comparable property has a new swimming pool, which is estimated to add $25,000 to its value. The subject property does not have a pool. When adjusting the comparable property, what action should the agent take?Valuation and Market Analysis
  16. 116.Which of the following principles of value states that maximum value is realized when a property is in harmony with its surroundings?Valuation and Market Analysis
  17. 117.An appraiser is valuing a property using the cost approach. The estimated cost to construct a new building with similar utility and function is $400,000. The appraiser estimates that the property has accumulated depreciation of $80,000. The land value is estimated at $100,000. What is the estimated value of the property using the cost approach?Valuation and Market Analysis
  18. 118.A real estate agent is preparing a Broker's Price Opinion (BPO) for a lender. The subject property has a unique architectural style that makes it difficult to find truly comparable sales. To provide a credible BPO, what should the agent prioritize when selecting comparables?Valuation and Market Analysis
  19. 119.A Texas homeowner installs a new, custom-built swimming pool in their backyard. The pool is permanently installed and integrated into the landscape. This swimming pool is considered:Property Ownership
  20. 120.A Texas real estate broker maintains several trust accounts for client funds. According to TREC rules, which of the following is NOT an acceptable practice for handling interest earned on these trust accounts?Real Estate Practice
  21. 121.A real estate agent is showing a commercial property that was built in 1985. The agent is asked by a potential tenant, who uses a wheelchair, about the accessibility of the building's restrooms and entrance. Which federal law primarily governs the accessibility requirements for this commercial property?Real Estate Practice
  22. 122.A licensed real estate agent in Texas is designing a new website to promote their services. According to TREC advertising rules, which of the following must be prominently displayed on the website?Real Estate Practice
  23. 123.A licensed real estate agent is preparing a Comparative Market Analysis (CMA) for a client. In order to provide the most accurate assessment, the agent includes data from recent sales, active listings, and expired listings. Which of the following is considered an ethical practice when presenting a CMA to a client?Real Estate Practice
  24. 124.A newly licensed real estate agent in Texas is approached by a buyer who wants to pay the commission directly to the agent rather than through the sponsoring broker, as the agent is an independent contractor. How should the agent proceed?Real Estate Practice
  25. 125.A real estate agent is managing a rental property for an owner. The tenant pays a security deposit of $1,500. According to Texas law, how should the agent handle this security deposit?Real Estate Practice
  26. 126.A real estate agent is working with a buyer who uses a wheelchair. The buyer is interested in a single-family home that was built in 1995. The buyer requests that the seller install a ramp to the front door and widen interior doorways to accommodate the wheelchair. Who is generally responsible for the cost of these modifications under the Fair Housing Act?Real Estate Practice
  27. 127.A real estate broker in Texas operates a large office with several agents. To promote a sense of teamwork, the broker encourages all agents to share information about their upcoming listings with each other before they are publicly listed. Is this practice permissible under antitrust laws?Real Estate Practice
  28. 128.A Texas real estate agent is preparing a listing presentation for a potential seller. To ensure compliance with fair housing laws, which of the following statements should the agent avoid making?Real Estate Practice
  29. 129.A real estate agent receives an offer on a property and notices that the earnest money check is made out to the agent directly, instead of the title company or broker's trust account. What is the agent's immediate and most appropriate action according to TREC rules?Real Estate Practice
  30. 130.A real estate agent is approached by a client who expresses interest in a property located within a neighborhood predominantly occupied by a specific ethnic group. The client asks the agent to provide demographic information, specifically requesting the percentage of residents from that ethnic group in the area, stating it's for 'cultural compatibility.' How should the agent respond?Real Estate Practice
  31. 131.A real estate agent is hosting an open house. A potential buyer, who uses a service animal, asks if there are any restrictions on pets in the condominium complex. The complex has a strict 'no pets' policy. How should the agent respond, ensuring compliance with the Fair Housing Act?Real Estate Practice
  32. 132.A real estate agent is preparing a Comparative Market Analysis (CMA) for a potential seller client. The agent includes a disclaimer stating that the CMA is 'not an appraisal and should not be considered as such.' Which of the following is the primary reason TREC requires this disclaimer?Real Estate Practice
  33. 133.A real estate agent is preparing a listing advertisement for a residential property. The agent includes a phrase in the advertisement stating, "Ideal for a single professional or young couple, no children preferred." Which of the following fair housing laws is most likely violated by this advertisement?Real Estate Practice
  34. 134.A group of real estate brokers in a small town agree to set a standard commission rate of 6% for all residential sales in their area. They also agree not to work with any broker who charges less than 6%. This type of agreement is a clear violation of which federal law?Real Estate Practice
  35. 135.A real estate agent is representing a seller who insists on only showing their property to 'families with traditional values.' The agent knows this is discriminatory but fears losing the listing if they confront the seller. What is the agent's ethical obligation in this situation according to the Canons of Professional Ethics and Conduct for Texas real estate licensees?Real Estate Practice
  36. 136.A Texas real estate broker is preparing to shred old transaction records that are more than four years old. According to TREC Rules, what is the minimum duration for which a broker must retain records related to real estate transactions?Real Estate Practice
  37. 137.A real estate broker in Texas has decided to convert their brokerage to a paperless office. What is the minimum retention period required by TREC for electronic records related to real estate transactions?Real Estate Practice
  38. 138.A broker operating a real estate office in Texas ensures that all client funds, such as earnest money and security deposits, are deposited into a separate, non-interest-bearing account. This practice is primarily designed to prevent which of the following unethical activities?Real Estate Practice
  39. 139.A real estate brokerage firm's policy states that all advertising must prominently display the broker's name or an assumed business name of the broker that has been filed with TREC and is registered with the Secretary of State. This requirement is in place to ensure compliance with which aspect of real estate practice?Real Estate Practice
  40. 140.A real estate agent is preparing to open their own independent brokerage in Texas. To ensure they comply with TREC's trust account rules, which of the following is an acceptable practice for handling earnest money deposits?Real Estate Practice
  41. 141.A real estate agent is preparing an advertisement for a luxury property. The advertisement states, 'This home offers unparalleled views and a lifestyle only a select few can afford!' Which ethical principle, if any, might this advertisement violate?Real Estate Practice
  42. 142.A real estate broker is hosting an open house for a seller. The seller expresses a strong preference to sell to a buyer who is a veteran, stating, 'I want to give back to those who served.' Which of the following is the most appropriate action for the broker to take?Real Estate Practice
  43. 143.A real estate broker has established a policy that all agents in the office must use the same standard commission rate for listings, and any deviation from this rate must be approved by the broker. If the broker then enters into an agreement with other local brokers to maintain these similar rates across their respective offices, what antitrust violation could occur?Real Estate Practice
  44. 144.A real estate broker operating in Texas decides to offer a cash rebate to buyers who use their services, provided the rebate is disclosed to all parties involved in the transaction and to the lender. Under Texas real estate regulations, is this practice permissible?Real Estate Practice
  45. 145.A newly licensed real estate agent is excited to promote their services. They decide to create a social media advertisement that states, 'I guarantee to sell your home in 30 days or I'll buy it myself!' What ethical and legal issue does this advertisement most likely present under TREC rules?Real Estate Practice
  46. 146.An agent is representing a seller who inherited a property and has never occupied it. The property is a single-family home. Regarding the Seller's Disclosure Notice, what is the seller's obligation?Property Disclosures
  47. 147.A homeowner wants to build a detached garage on their property. Upon consulting the local zoning ordinance, they discover that their property is zoned R-1 (Single-Family Residential), and the ordinance specifies a maximum impervious cover of 35% for such lots. The homeowner's existing house, driveway, and patio already account for 30% impervious cover. The proposed garage would add another 8%. What action must the homeowner take to proceed with their plans?Land Use Controls and Regulations
  48. 148.A developer plans to build a new subdivision in a suburban area. Before construction can begin, the developer must submit detailed plans for streets, utilities, and lot configurations to the local government for approval. This process ensures that the development aligns with the community's long-term growth objectives and infrastructure capabilities. Which of the following governmental rights in land is primarily being exercised in this scenario?Land Use Controls and Regulations
  49. 149.A property is located in an area designated as a flood hazard zone by FEMA. The seller has never experienced flooding in the home. On the Seller's Disclosure Notice, under the 'Water Penetration' section, how should the seller address the flood zone designation?Property Disclosures
  50. 150.A buyer is interested in purchasing a historic home located in a designated preservation district. The buyer plans to extensively remodel the interior and exterior of the property. Before proceeding with the purchase, the buyer's agent advises them to investigate potential restrictions on alterations. Which of the following public controls would most likely govern the proposed renovations?Land Use Controls and Regulations