Free Texas real estate practice exam

Answer key and explanations

Every answer, with the reasoning. Work through the ones you missed — that list is your study plan.

1. Question 1 — answer B

   A homeowner permanently installs a chandelier in the dining room. The chandelier is now best described as:

   Attachment converts personal property into a fixture, which is part of the real property. Trade fixtures belong to business tenants; emblements are cultivated crops.

2. Question 2 — answer C

   Which physical characteristic of land means no two parcels are exactly alike?

   Non-homogeneity (uniqueness) means every parcel is different, if only by location. Immobility and indestructibility are the other two physical characteristics; scarcity is economic.

3. Question 3 — answer C

   A property owner installs a new, built-in oven in their kitchen. What type of property is the oven considered?

   The oven is considered a fixture because it is a built-in appliance attached to the real property.

4. Question 4 — answer C

   Which of the following is an example of a public land-use control?

   Zoning ordinances are a type of public land-use control that regulates the use of land within a particular area.

5. Question 5 — answer B

   A farmer plants crops on their land, which are considered _____.

   Emblements refer to crops or other products of the land that are considered personal property, even though they are attached to the real property.

6. Question 6 — answer B

   What is the purpose of a metes and bounds description in a property deed?

   A metes and bounds description is used to describe the property's boundaries using reference points and distances, providing a detailed and accurate description of the property's location and size.

7. Question 7 — answer B

   A property is being taken by the government through eminent domain. What is the primary consideration for determining just compensation?

   Just compensation in eminent domain cases is typically determined by the property's current market value, which takes into account its highest and best use.

8. Question 8 — answer C

   Which of the following is a type of private land-use control?

   CC&Rs are a type of private land-use control that restricts the use of land within a particular development or subdivision.

9. Question 9 — answer C

   A free-standing refrigerator in a rental property is considered _____.

   A free-standing refrigerator is considered personal property because it is not attached to the real property.

10. Question 10 — answer B

    What is the primary purpose of a title search?

    A title search is conducted to identify any liens, encumbrances, or other issues that may affect the property's title, ensuring that the buyer receives clear title to the property.

11. Question 11 — answer C

    A built-in oven is considered what type of property?

    A built-in oven is attached to the property and is therefore considered a fixture, which is a type of real property.

12. Question 12 — answer B

    Which freehold estate provides the most complete ownership rights?

    Fee simple absolute is the highest form of ownership — the full bundle of rights, indefinitely. A life estate ends at a life; defeasible estates carry conditions; an estate for years is leasehold.

13. Question 13 — answer B

    Recording a deed in the public records provides:

    Recording gives constructive (legal) notice to the world of the claim. Actual notice requires direct knowledge; recording alone guarantees neither marketability nor insurance.

14. Question 14 — answer B

    What is the primary purpose of recording a deed?

    Recording a deed provides constructive notice to potential buyers that the property has been sold and who the new owner is, protecting the buyer's priority.

15. Question 15 — answer B

    What type of estate is created when a landlord leases a property to a tenant for a specific period of time?

    A leasehold estate is created when a landlord leases a property to a tenant for a specific period of time, giving the tenant the right to use and occupy the property.

16. Question 16 — answer B

    What is the purpose of a title search?

    A title search is conducted to identify any encumbrances or title defects that may affect the buyer's ownership of the property.

17. Question 17 — answer B

    A buyer purchases a property and receives a general warranty deed from the seller. What type of protection does this deed provide to the buyer?

    A general warranty deed provides the buyer with protection against defects in title and encumbrances, giving the buyer the greatest protection.

18. Question 18 — answer D

    What is the difference between a freehold estate and a leasehold estate?

    A freehold estate is an estate that is held for an indefinite period, while a leasehold estate is an estate that is held for a fixed period.

19. Question 19 — answer C

    A property owner sells their property to a buyer, but the deed is not recorded. What is the effect on the buyer's title?

    The deed is valid between the parties, but recording is necessary to protect the buyer's title against later purchasers.

20. Question 20 — answer B

    What type of notice is provided to potential buyers when a deed is recorded?

    Recording a deed provides constructive notice to potential buyers, putting them on notice of the buyer's interest in the property.

21. Question 21 — answer C

    Which appraisal approach is generally most reliable for an owner-occupied single-family home in an active market?

    With plentiful comparable sales, the sales comparison (market data) approach best reflects what buyers actually pay. Cost suits new/special-use buildings; income suits investment property.

22. Question 22 — answer B

    A modest home's value rises because it sits among larger, higher-value homes. This illustrates the principle of:

    Progression: a lesser property is pulled up in value by superior neighbors. Regression is the reverse; substitution caps value at the cost of an equivalent alternative.

23. Question 23 — answer D

    A commercial property's market value is determined by which of the following?

    The market value of a commercial property is typically determined by considering all three approaches to value: sales comparison, cost, and income.

24. Question 24 — answer B

    What type of depreciation occurs when a property's design or layout is no longer functional or efficient?

    Functional depreciation occurs when a property's design or layout is no longer functional or efficient, such as an outdated floor plan.

25. Question 25 — answer A

    A broker price opinion (BPO) is most commonly used for which of the following purposes?

    A BPO is often used by lenders to determine the market value of a property, particularly in situations where a full appraisal is not necessary.

26. Question 26 — answer B

    Which approach to value estimates the cost to replace or reproduce a property, minus depreciation?

    The cost approach estimates the cost to replace or reproduce a property, minus depreciation, to determine its value.

27. Question 27 — answer A

    What is the term for the principle that a property's value is highest and best when it is used for its most profitable purpose?

    The principle of highest and best use states that a property's value is highest and best when it is used for its most profitable purpose, which is also legally permissible, physically possible, and financially feasible.

28. Question 28 — answer C

    Appraiser independence is important because it ensures that the appraiser's opinion of value is

    Appraiser independence is crucial to ensure that the appraiser's opinion of value is unbiased and objective, free from any external influence or pressure.

29. Question 29 — answer A

    The principle of conformity states that a property's value is maximized when it is similar in design, age, and condition to neighboring properties.

    The principle of conformity states that a property's value is maximized when it is similar in design, age, and condition to neighboring properties, which helps to maintain property values and avoid negative externalities.

30. Question 30 — answer D

    What is the primary difference between market value and price?

    Market value is an estimate of what a property would sell for in a normal market transaction, while price is the actual amount paid

31. Question 31 — answer C

    The principle of substitution states that:

    The principle of substitution states that a buyer will pay no more for a property than they would for a similar property of equal utility

32. Question 32 — answer B

    A buyer's offer states it is open for acceptance until Friday. On Wednesday the seller responds with a higher price. The buyer's original offer is now:

    A counteroffer is a rejection of the original offer and terminates it — the seller cannot later 'accept' the original offer without the buyer reviving it.

33. Question 33 — answer D

    A buyer makes an offer on a property with a contingency for financing. The seller responds with a counteroffer that changes the price. What happens to the original offer?

    A counteroffer terminates the original offer, allowing the seller to propose new terms.

34. Question 34 — answer B

    A buyer's agent has a fiduciary duty to disclose all known facts about a property to their client. What does this duty require the agent to do?

    The duty of disclosure requires the agent to disclose all known facts about the property, whether favorable or unfavorable, to their client.

35. Question 35 — answer C

    A seller's agent is working with a buyer who is interested in purchasing a property. What is the agent's duty to the buyer in this situation?

    Although the agent represents the seller, they still have a duty to treat the buyer honestly and fairly.

36. Question 36 — answer B

    What type of agent is authorized to bind the principal to a contract?

    A general agent has the authority to bind the principal to a contract, whereas a special agent has limited authority.

37. Question 37 — answer B

    A buyer and seller enter into a contract with an earnest money provision. If the buyer breaches the contract, what can the seller do with the earnest money?

    If the buyer breaches the contract, the seller can keep the earnest money as liquidated damages, but this is not always the case and depends on the contract terms.

38. Question 38 — answer B

    What is the primary purpose of the earnest money deposit in a real estate contract?

    The earnest money deposit demonstrates the buyer's good faith and commitment to the purchase.

39. Question 39 — answer C

    A buyer makes an offer to purchase a house, and the seller responds with a counteroffer. What happens to the original offer?

    A counteroffer terminates the original offer, replacing it with a new proposal.

40. Question 40 — answer A

    A seller lists their property with a broker, granting the broker the authority to market and show the property. What type of agent is the broker in this scenario?

    The broker is a special agent, authorized to perform specific tasks on behalf of the seller, such as marketing and showing the property.

41. Question 41 — answer D

    A buyer and seller enter into a contract, but the buyer fails to perform. What is the seller's remedy?

    The seller may pursue specific performance, requiring the buyer to complete the purchase, or rescission, canceling the contract, or seek damages for the buyer's breach.

42. Question 42 — answer B

    What is the effect of a buyer's inspection contingency in a real estate contract?

    The inspection contingency allows the buyer to terminate the contract if the inspection reveals defects, providing a way for the buyer to exit the contract if the property's condition is unacceptable.

43. Question 43 — answer A

    How is an agency relationship typically created in a real estate transaction?

    An agency relationship is typically created by a written agreement, such as a listing agreement or a buyer's representation agreement, which outlines the scope of the agent's authority and the terms of the relationship.

44. Question 44 — answer B

    A buyer makes an offer on a property, but the seller responds with a counteroffer. What is the effect on the original offer?

    A counteroffer terminates the original offer, as it is a new proposal that replaces the original one.

45. Question 45 — answer C

    What is the primary purpose of the earnest money deposit in a real estate transaction?

    The earnest money deposit demonstrates the buyer's good faith and commitment to the purchase, and is typically held in escrow until the transaction is completed.

46. Question 46 — answer B

    A buyer hires a real estate agent to represent them in a transaction. What is the agent's fiduciary duty of obedience?

    The agent's fiduciary duty of obedience requires them to follow the lawful instructions of the buyer, as long as they are within the scope of the agency agreement.

47. Question 47 — answer A

    A seller lists their property with a real estate agent, but does not provide a written agreement. What type of agency is created?

    A special agency is created when a seller lists their property with a real estate agent, even if there is no written agreement, as the agent is authorized to perform a specific task on behalf of the seller.

48. Question 48 — answer B

    Under the federal Fair Housing Act, which of the following is a protected class?

    The federal protected classes are race, color, religion, national origin, sex, disability, and familial status.

49. Question 49 — answer A

    Inducing homeowners to sell by predicting that people of a particular protected class are moving into the neighborhood is:

    Blockbusting (panic selling) is illegally prompting sales with demographic-change predictions. Redlining is area-based lending discrimination; steering channels buyers to or away from areas.

50. Question 50 — answer B

    What is the primary purpose of the Federal Fair Housing Act?

    The Federal Fair Housing Act aims to prevent discrimination in housing-related transactions based on protected classes such as race, color, religion, sex, national origin, disability, and familial status.

51. Question 51 — answer B

    What is the term for the practice of directing buyers to or away from certain neighborhoods based on their race or other protected characteristics?

    Steering refers to the practice of guiding buyers towards or away from certain neighborhoods based on their race or other protected characteristics, which is prohibited by the Federal Fair Housing Act.

52. Question 52 — answer B

    A real estate agent creates an advertisement that excludes certain protected classes from a property listing. What law is the agent likely violating?

    The Fair Housing Act prohibits discriminatory advertising in housing-related transactions, including excluding certain protected classes from property listings.

53. Question 53 — answer C

    What is the purpose of the Real Estate Settlement Procedures Act (RESPA)?

    RESPA aims to prohibit kickbacks and referral fees in residential transactions, ensuring that consumers are not subjected to unnecessary and inflated costs.

54. Question 54 — answer C

    A real estate agent is handling trust funds on behalf of a client. What is the agent's primary responsibility?

    The agent's primary responsibility is to maintain the trust funds in a separate, escrow account, ensuring that the funds are kept secure and separate from the agent's own money.

55. Question 55 — answer C

    A real estate agent is contacted by a consumer who is on the Do-Not-Call Registry. What should the agent do?

    The agent should respect the consumer's request and not contact them, as the consumer has opted out of receiving telemarketing calls by registering on the Do-Not-Call Registry.

56. Question 56 — answer B

    Which federal law requires that handicapped individuals have equal access to commercial facilities and public accommodations?

    The Americans with Disabilities Act requires that handicapped individuals have equal access to commercial facilities and public accommodations.

57. Question 57 — answer A

    A real estate agent is found to have engaged in price-fixing with other agents in the area. This is a violation of which federal law?

    The Sherman Antitrust Act prohibits price-fixing and other anti-competitive practices.

58. Question 58 — answer B

    Federal lead-based paint disclosure requirements apply to residential property built before:

    The federal lead-based paint disclosure rule covers housing built before 1978, when residential lead paint was banned.

59. Question 59 — answer A

    A seller tells the listing agent the roof leaks during heavy rain. Regarding this defect, the agent must:

    Known material defects must be disclosed to prospective buyers; concealment is misrepresentation regardless of whether anyone asks.

60. Question 60 — answer B

    A seller of a pre-1978 home must provide the buyer with a specific disclosure regarding a potential environmental hazard. What is the primary purpose of this disclosure?

    The seller of a pre-1978 home must provide the buyer with a lead-based paint disclosure, as required by federal law, to inform the buyer of the potential presence of lead-based paint and the risks associated with it.

61. Question 61 — answer A

    A property is located in a flood zone, but the seller does not disclose this information to the buyer. What is the buyer's recourse if they discover the property is in a flood zone after closing?

    If the seller fails to disclose that the property is located in a flood zone, the buyer may be able to sue the seller for damages, as this is a material fact that could affect the property's value or desirability.

62. Question 62 — answer A

    What is the primary difference between a material defect and a stigmatized property?

    A material defect refers to a physical problem with the property, such as a structural issue or needed repair, while a stigmatized property has a psychological impact, such as a history of murder or other traumatic event, that may affect its desirability but not its physical condition.

63. Question 63 — answer C

    A buyer is purchasing a property that was formerly used as a gas station. What is the buyer's primary concern regarding environmental hazards?

    The buyer's primary concern regarding environmental hazards when purchasing a property that was formerly used as a gas station is the potential presence of underground storage tanks, which could have leaked hazardous substances into the soil or groundwater.

64. Question 64 — answer A

    What is the purpose of the CERCLA law?

    The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) is a federal law that provides funding for the cleanup of contaminated sites and holds responsible parties liable for the costs of cleanup.

65. Question 65 — answer D

    A seller is required to disclose the presence of which environmental hazard if it is known to exist on the property?

    The seller is required to disclose the presence of environmental hazards, including asbestos, radon, and mold, if they are known to exist on the property, as these can pose health risks to occupants and affect the property's value.

66. Question 66 — answer D

    What is the consequence of a seller's failure to disclose a material defect, such as a leaky roof, to the buyer?

    If the seller fails to disclose a material defect, such as a leaky roof, the buyer may be able to rescind the sale and recover their earnest money, sue the seller for damages, or require the seller to repair the defect, depending on the circumstances and the terms of the sale.

67. Question 67 — answer B

    Which mortgage clause lets the lender demand full repayment if the property is sold?

    The alienation or due-on-sale clause triggers on transfer of the property. Acceleration triggers on default; defeasance cancels the lien at payoff.

68. Question 68 — answer C

    On a conventional loan, private mortgage insurance is typically required when the loan-to-value ratio exceeds:

    Above 80% LTV (less than 20% down), conventional lenders typically require PMI to cover the added default risk.

69. Question 69 — answer B

    A borrower signs a promissory note with a 20% down payment. What is the primary purpose of this note?

    The promissory note is a promise to repay the loan and evidences the debt, while the deed of trust or mortgage secures the loan with the property as collateral.

70. Question 70 — answer C

    A loan has an alienation clause, also known as a due-on-sale clause. What does this clause do?

    An alienation clause, or due-on-sale clause, gives the lender the right to accelerate the loan if the property is sold or transferred without the lender's consent.

71. Question 71 — answer C

    A borrower puts down 10% on a home purchase. What is the likely consequence of this low down payment?

    With a down payment of less than 20%, the borrower will likely be required to pay private mortgage insurance (PMI) due to the high loan-to-value ratio.

72. Question 72 — answer B

    What is the purpose of the Truth-in-Lending Act (TILA) and Regulation Z?

    TILA and Regulation Z require lenders to disclose loan terms and costs to the borrower, including the annual percentage rate (APR) and finance charges.

73. Question 73 — answer C

    What is the main purpose of the Closing Disclosure form?

    The Closing Disclosure form summarizes the transaction's costs and terms for the borrower, including the loan amount, interest rate, and closing costs.

74. Question 74 — answer A

    A home sells for $250,000 with a 6% commission split evenly between the listing and selling brokerages. Each brokerage receives:

    $250,000 × 6% = $15,000 total; split evenly, each brokerage gets $7,500.

75. Question 75 — answer A

    A property valued at $180,000 is assessed at 25% of value. The tax rate is $2.50 per $100 of assessed value. The annual tax is:

    Assessed value = $180,000 × 25% = $45,000. $45,000 ÷ 100 = 450; 450 × $2.50 = $1,125.

76. Question 76 — answer B

    A home sells for $500,000 with a 7% commission split evenly between the listing and selling brokerages. How much does each brokerage receive?

    Total commission = $500,000 × 7% = $35,000. Split evenly, each brokerage gets $17,500.

77. Question 77 — answer A

    How many square feet are in a 0.25-acre parcel? (1 acre = 43,560 sq ft)

    0.25 × 43,560 = 10,890 sq ft.

78. Question 78 — answer C

    Annual property taxes are $9,300. Using a 365-day year, the seller is responsible for 216 days. What is the seller's prorated share?

    Daily tax = $9,300 ÷ 365 = $25.48. Seller's share = $25.48 × 216 = $5,503.56.

79. Question 79 — answer D

    A property valued at $300,000 is assessed at 40% of value. The tax rate is $2.50 per $100 of assessed value. What is the annual tax?

    Assessed = $300,000 × 40% = $120,000. Tax = ($120,000 ÷ 100) × 2.5 = $3,000.

80. Question 80 — answer C

    A home sells for $460,000 with a 5% commission and no other closing costs. What does the seller net?

    Commission = $460,000 × 5% = $23,000. Net = $460,000 − $23,000 = $437,000.

81. Question 81 — answer B

    The primary purpose of the Texas Real Estate Commission is to:

    TREC exists to protect consumers of real estate services; it neither sets commission rates nor runs MLS systems.

82. Question 82 — answer A

    Members of the Texas Real Estate Commission are:

    TREC's nine members are appointed by the governor with senate confirmation — six broker members and three public members.

83. Question 83 — answer C

    What is the primary purpose of the Texas Real Estate Commission (TREC)?

    TREC's primary purpose is to protect the public in transactions involving real estate.

84. Question 84 — answer B

    To be eligible for a Texas sales agent license, an applicant must be at least:

    TREC requires applicants to be at least 18, a U.S. citizen or lawfully admitted alien, and a Texas resident (with limited exceptions).

85. Question 85 — answer C

    A Texas sales agent may receive compensation for a real estate transaction only from:

    Sales agents act only through a sponsoring broker and may be compensated only by that broker — never directly by a party to the transaction.

86. Question 86 — answer A

    To be eligible for a Texas real estate sales agent license, an applicant must be at least:

    The Texas Real Estate Commission requires applicants to be at least 18 years old to apply for a sales agent license.

87. Question 87 — answer B

    Which act by a Texas license holder is grounds for TREC disciplinary action?

    Commingling trust money with personal or operating funds violates TRELA and TREC rules and is a classic disciplinary trigger.

88. Question 88 — answer B

    Advertising by a Texas sales agent must always include:

    TREC advertising rules require the broker's name (or assumed name) in all advertising so the responsible brokerage is identifiable.

89. Question 89 — answer C

    A sales agent is found to have converted client funds for personal use. What is the most likely outcome?

    Conversion of client funds is a serious violation of TREC standards and can result in license revocation.

90. Question 90 — answer C

    What is required to be included in all advertising by a real estate broker?

    TREC rules require that a broker's name be included in all advertising to ensure transparency and accountability.

91. Question 91 — answer C

    A sales agent allows an unlicensed assistant to show properties to clients. What is the most likely consequence?

    Allowing an unlicensed assistant to perform duties that require a license can result in disciplinary action against the sales agent.

92. Question 92 — answer B

    A broker commingles client funds with personal funds. What is the primary concern?

    Commingling client funds with personal funds puts the client's funds at risk of being used for personal expenses or lost in the event of the broker's financial insolvency.

93. Question 93 — answer B

    A sales agent fails to disclose a known defect in a property. What is the most likely consequence?

    Failing to disclose known defects can lead to legal action against the sales agent and damage to their professional reputation.

94. Question 94 — answer C

    What is required of a sales agent when handling client trust funds?

    Client trust funds must be deposited into a separate trust account to maintain their integrity and prevent commingling with personal funds.

95. Question 95 — answer B

    A sales agent fails to disclose a known defect in a property to a potential buyer. This action is a violation of which TREC canon?

    Integrity requires honesty in dealings, and failing to disclose known defects is a breach of this principle.

96. Question 96 — answer A

    In Texas, a broker who facilitates a transaction between a buyer and seller the brokerage represents, with written consent of both, acts as:

    Texas replaced common-law dual agency with statutory intermediary status — requiring written consent from both parties, typically in the listing/representation agreements.

97. Question 97 — answer A

    The Information About Brokerage Services (IABS) notice must be provided:

    License holders must give the IABS form at first substantive communication about a specific property with a party they don't represent.

98. Question 98 — answer A

    What is required for a broker to act as an intermediary in a Texas real estate transaction?

    A broker must obtain written consent from both parties to act as an intermediary, replacing the common-law concept of dual agency.

99. Question 99 — answer B

    When must a broker provide the Information About Brokerage Services (IABS) form to a potential client?

    The IABS form must be provided at the first substantive contact between a broker and a potential client, which is typically the initial meeting or conversation.

100. Question 100 — answer B

     What type of agreement allows a buyer to be represented by a broker in a Texas real estate transaction?

     A buyer/tenant representation agreement allows a buyer to be represented by a broker, outlining the terms and scope of the representation.

101. Question 101 — answer B

     What is the primary purpose of a listing agreement in Texas?

     A listing agreement grants a broker the authority to market a property for sale, outlining the terms and conditions of the listing, including the commission rate and duration.

102. Question 102 — answer C

     Which of the following is a characteristic of a subagency relationship in Texas?

     In a subagency relationship, the subagent represents the seller and owes a fiduciary duty to the seller, not the buyer.

103. Question 103 — answer A

     What is the responsibility of a broker in supervising sponsored agents in Texas?

     A broker is responsible for ensuring that sponsored agents comply with all applicable laws and regulations, including those related to agency, contracts, and ethics.

104. Question 104 — answer C

     What is the consequence of a broker failing to provide the IABS form to a potential client at the first substantive contact?

     A broker who fails to provide the IABS form to a potential client at the first substantive contact may be subject to disciplinary action by TREC, including fines or other penalties.

105. Question 105 — answer C

     A Texas broker is working with a buyer who is interested in purchasing a property listed with the broker's firm. What must the broker do to comply with Texas law?

     In Texas, a broker must obtain written consent from both parties to act as an intermediary, which replaces the common-law concept of dual agency.

106. Question 106 — answer C

     At what point must a Texas broker provide the Information About Brokerage Services (IABS) form to a potential client?

     The IABS form must be provided to potential clients at the first substantive contact, which is the initial meeting or discussion about a specific property or transaction.

107. Question 107 — answer A

     Texas license holders must use TREC promulgated contract forms:

     When TREC has promulgated a form appropriate to the transaction, license holders are required to use it (with narrow exceptions such as forms prepared by a party's attorney).

108. Question 108 — answer A

     Under the TREC One to Four Family Residential Contract, paying the option fee gives the buyer:

     The option fee buys an unrestricted right to terminate within the negotiated option period — the buyer can walk away for any reason and keep only the earnest money at risk otherwise.

109. Question 109 — answer B

     What is the primary purpose of the Third-Party Financing Addendum in a Texas residential real estate transaction?

     The Third-Party Financing Addendum is used to inform the seller of the buyer's financing plans and to outline the terms of the financing.

110. Question 110 — answer B

     A buyer is using the One to Four Family Residential Contract (Resale) form and wants to negotiate the option fee. What is the broker's role in this situation?

     The broker has limited authority to fill in blanks in the promulgated forms, including the option fee amount in the One to Four Family Residential Contract (Resale).

111. Question 111 — answer A

     A seller and buyer have signed a contract using the One to Four Family Residential Contract (Resale) form. Later, they agree to change the closing date. What document should they use to make this change?

     An amendment to the contract is the appropriate document to use when making changes to a signed contract.

112. Question 112 — answer C

     What is the purpose of the termination-option period in a Texas residential real estate contract?

     The termination-option period is a time period during which the buyer can conduct due diligence and terminate the contract if they are not satisfied with the results.

113. Question 113 — answer B

     A broker is working with a buyer who wants to use a custom contract form instead of the One to Four Family Residential Contract (Resale) form. What should the broker advise the buyer?

     The broker should advise the buyer to use the promulgated form to avoid potential disputes and ensure that the contract complies with Texas law.

114. Question 114 — answer C

     What is the effect of not using a promulgated form when required by the Texas Real Estate Commission?

     Not using a promulgated form when required may lead to disputes and challenges, as the contract may not comply with Texas law.

115. Question 115 — answer B

     A buyer and seller have signed a contract using the One to Four Family Residential Contract (Resale) form. The buyer now wants to add a clause that requires the seller to make repairs to the property. What should the broker do?

     The broker should use an amendment to the contract to add the new clause, as this is the appropriate way to make changes to a signed contract.

116. Question 116 — answer A

     The Texas Veterans Land Board program provides eligible Texas veterans with:

     The VLB offers below-market financing programs for land purchases, homes, and home improvements to eligible Texas veterans.

117. Question 117 — answer A

     Texas homestead protections primarily:

     The Texas homestead is protected from forced sale by most creditors — with exceptions such as purchase-money liens, property taxes, and home-equity loans.

118. Question 118 — answer B

     The Texas Veterans Land Board offers financing for

     The Texas Veterans Land Board offers financing for home improvements, among other programs, but details such as loan limits may apply.

119. Question 119 — answer A

     Which of the following best describes a key feature of the Texas Veterans Land Board's land loan program?

     The Texas Veterans Land Board's land loan program is known for offering low, fixed interest rates for the life of the loan, among other benefits.

120. Question 120 — answer C

     To qualify for a Texas Veterans Land Board home loan, an applicant must

     To qualify for a Texas Veterans Land Board home loan, an applicant must be a resident of Texas and have served in the US military, among other possible requirements.

Common questions