Missed Questions and Answers:


Which statement accurately describes an abstract of title?

  • An abstract of title documents a property’s chain of title.


The Crows gave their son, Gibson, the family property, so long as he doesn't join his friend's rock band. If he joins the band, the property goes back to them. What type of estate is this?

  •  Fee simple determinable


An individual, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called ______.

  • An act of waste


What's the purpose of a chain of title?

  • To establish history of past ownership


Select the statement that accurately reflects the type of deed used for the transfer.

  • A deed of trust conveys real estate to a trustee for the beneficiary named in the deed.


Select the statement that correctly exemplifies the covenant term.

  • The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on.


Which of these situations might be addressed by a subject to clause or limitations in the deed Jane is using to convey property to Moira?

  • An easement runs across the property, permitting Jane's neighbors to access the neighborhood boat dock


Claire rents 1,100 square feet of office space in a new professional building. Her rent payment includes insurance and property taxes, but she pays separately for some operating expenses. What kind of lease does Claire have?

  • Modified gross lease


A homeowner lives in a state that requires an abstract of title for property conveyance, but the chain of title was broken 50 years ago. What is the status of the title?

  • Depending on state laws, the homeowner may have marketable title.


Lucas, Ivan, Chad, and Trace own a property as joint tenants. After a few years, Ivan sells his interest to Tom (with permission from Lucas, Chad, and Trace). Chad dies intestate but is survived by a wife, Amy. Trace also then passes away but wills his property to Monique. Who owns the property after Trace’s death?

  •  Lucas and Tom


A tenant’s new business venture is a software services firm where IT professionals handle programming and customer service tasks for a number of business clients. His employees all work at tables in an open office space. He most likely has a _______ lease for the office space.

  • Loft


Stu is buying Freddie’s property. What must occur for the transfer of title to take place?

  • Freddie must intend to convey the property to Stu.


A property was sold using a general warranty deed. Which one of these statements is true?

  • The buyer is the grantee.


Which document is used to give a buyer an overview of the title history and information about what is or isn't covered in a title insurance policy?

  • Preliminary report


Which one of the following statements about testamentary trusts is true?

  • Testamentary trusts do not avoid probate.


A parent is considering a move to a foreign country and wants to deed her property to her 17-year-old son, who agrees to maintain it. Which of these must occur to make this transfer legal?

  • The parent must sign the deed and have her signature acknowledged.


Which of the following statements is true regarding trusts?

  • Any asset may be held in a trust.


Which of these statements about the homeowner's right of redemption is true?

  • Rights of redemption window with REOs may have expired.


Jonathan is acting as an intermediary in Texas. He has received written consent from the parties involved in the transaction. What additional requirement does Jonathan need to meet?

  •  Information detailing the broker’s compensation and the source of that compensation


Which of the following statements about agency by ratification in Texas is true?

  •  Agency by ratification is permitted in Texas.


Jameson is interested in becoming a member of the ESAC. How many years of real estate experience must he have in order to qualify as one of the seven real estate professional members?

  • 5


How many members does the Education Standards Advisory Committee have?

  • 12


If Drake, an alleged violator, wishes to have a hearing, he must submit a written request for a hearing regarding the occurrence of the alleged violation and/or the penalty amount. He must submit this written notification _______.

  • No later than the 20th day after the date he receives the violation notice from the Standards and Enforcement Division


Which of the following statements about the Texas Real Estate Broker-Lawyer Committee (BLC) is true?

  •  Members of the BLC serve staggered six-year terms, with the public member serving a two-year term.


Who is responsible for funding the Real Estate Recovery Trust Account?

  •  All real estate license and certificate holders


When should the continuing education requirement be completed in Texas?

  • Before renewal of the two-year licensing period for license holders


Elisha is a property manager at Oakwood Luxury Apartments in San Antonio. A family of seven recently inquired about renting a three-bedroom unit. What law can guide Elisha in her decision?

  • The Texas Landlord and Tenant Act


Georgie Banker is the widow of the late Gordon Banker. How should Georgie be listed as a party in a TREC sales contract regarding a property that Georgie owns?

  • Georgie Banker, an unmarried person


Which veteran loan program in Texas offers qualified veterans help with the purchase of their primary home?

  • Veterans Housing Assistance Program


Which of the following describes the purpose of equitable interest according to Texas rules?

  • Curb unlicensed real estate sales


Which of the following is an example of an involuntary, specific, statutory lien in Texas?

  • Materialman’s lien


Unlike Texas, there are states that follow what organization’s policy allowing two people per bedroom as a “reasonable standard.”

  • The Department of Housing and Urban Development


Jerimiah and his wife Camille are expecting their third child. They’re shopping around the Austin area for a two-bedroom, two-bathroom apartment. Are there any occupancy regulations in Texas that would prohibit this from happening?

  • No, Jerimiah and Camille are within the occupancy standards established under Texas law.


Wynona is a Texas tenant with a written estate-for-years tenancy. How much notice must she give her landlord if she wants to terminate her lease upon expiration of the lease term?

  • None


Which required clause in a Texas deed, also known as “words of conveyance,” contains words that state the grantor’s intention to convey the property at this time?

  • Granting


Charles is a Texas real estate licensee who loves being able to help his friends, family, and business associates with their real estate needs. In which of these situations would Chester NOT need to disclose his equitable interest in the transaction?

  • His bestfriend’s home


Which of these scenarios shows Texas landlord Jessica fulfilling one of her duties?

  • She promptly fixes the plumbing when it stops working properly.


In Texas, leases may be terminated by expiration, ______, or abandonment.

  • Mutual agreement


A Texas license holder, who is acting on his own behalf assigning an interest in a contract to purchase real property must disclose to any potential buyer that the license holder is assigning an interest in a contract and that ______.

  • He doesn’t have legal title to the real property


In Texas, how many days after a tenant moves in does a landlord have to re-key and test all key-operated devices?

  • 7 Days


Merry and Nick are purchasing a home from Bill and Jen in San Antonio. They’re paying a $50,000 down payment, and taking out a $145,000 FHA loan. Which of the following parties is responsible for doing a search for mechanic’s and materialman’s liens on that property under the terms of the TREC residential resale contract?

  • The title company


In Texas, the property title remains in trust until payment in full occurs for the underlying loan. What type of theory for who owns what in a mortgage is this?

  • Title theory


Any business that has violated the Texas Anti-Spam law can expect to ______.

  • Face civil penalties and liabilities


__ enforces the Canons of Professional Ethics and Conduct in Texas.

  • TREC


When a real estate licensee receives compensation for referring a client to a real estate licensee in a proposed real estate transaction, this is known as ______.

  • Valuable Consideration


What happens to any excess earnest money when the property closes?

  • It’s refunded to the buyer.


Which type of lender specializes in taking in savings deposits and then lending money out to consumers through mortgages and other loans

  • Savings and Loans


Mick focuses on originating mortgage loans at a company that has in-house loan processors and underwriters. The options he offers consumers are limited to the products his company offers. What's Mick's position?

  • Mortgage Banker


A licensee is developing an ad for three properties he has listed in an upscale community. He wants to keep it short and simple. Which of these would NOT trigger full disclosure under TILA?

  • Get a low 4.925% APR


What needs to be in place for title insurance to cover claims of individuals who live or have lived on the property?

  • A public record of tenancy


While walking around the exterior of a rural home she’s inspecting, Juanita noticed a metal vent pipe sticking out of the ground 25 feet from the house. She documents this because it may be a sign of what potential environmental hazard?

  • Underground storage tank


Which of these is a violation of the RRP Rule?

  • Contractors perform renovations that disturb lead-based paint without holding proper certification.


Which of these scenarios would require an environmental impact statement?

  •  The U.S. National Park Service plans to build a new visitor center on property owned by the federal government.


Amira’s seller Tom just received the news that his buyers are walking away from the sale. They weren’t willing to proceed after they saw the inspection report. Neither Amira nor Tom has requested a copy of the report. What’s the most likely reason for that?

  • If they see the report, they’ll be required to disclose any adverse findings.


Which economic principle states that the value of property today is impacted by the current value of the total expected future benefits?

  • Principle of anticipation


Using the capitalization formula, what is the value if the net operating income is $20,000 and the rate of capitalization is 10%?

  • $200,000


You’re helping your client Scot with the purchase of a ranch home in Texas. Scot wants to bring his cattle over, so he’s asked for early possession. The transaction is scheduled to close on July 15, and Scot needs to move his cattle in on February 1. What form should you help Scot complete?

  •  There's no form for this.


Texas homeowner James is required to present any prospective buyers with a notice as to the legal and economic risks of purchasing coastal property. Which TREC addendum is James required to include?

  • Addendum for Property Located Seaward of the Gulf Intracoastal Waterway


Which of the following forms is provided when a listing agreement is signed, regardless of the age, location, or type of property?

  •  Information About Brokerage Services


How many lawyers does the governor appoint to the Broker-Lawyer Committee?

  • 0


Which of the following is a true statement about civil litigation in Texas fair housing complaint cases?

  • If a TWCCRD conciliation agreement is entered into or a hearing commences before an administrative law judge, the private lawsuit must be terminated.


In Texas, which of the following real estate contracts does not have to be in writing to be enforceable?

  • A lease that is for one year or less


Chapter 27 of the Texas Property Code specifies that, in order to recover damages for a construction defect, buyers must notify the contractor ______ days before the date they file suit to recover damages.

  • 60 days


In the Loan Assumption Addendum to the TREC One to Four Family Residential Contract (Resale), paragraph (C) states if the ______ of all assumed loans varies in an amount greater than $500, either party can terminate the contract.

  •  Total principal balance



When performing a market analysis, to what are all adjustments made?

  •   The sales price of the comparable properties


Which agency enforces Title II under the Americans with Disabilities Act of 1990, when it relates to state and local public housing, housing assistance, and housing referrals?

  • HUD


What are the two categories of comparison when evaluating comparables to a subject property in the market comparison approach?

  • Elements and units


FAR, or floor area ratio, includes ______.

  • All of the habitable structures on a lot


What entity enforces the Telephone Consumer Protection Act?

  • Federal Communications Commission


Hannah wasn’t able to get the financing to open her boutique, so her mother became a silent partner and provided additional cash. Hannah and her mother have an agreement that states Hannah’s mother can’t be held financially or legally liable if there are any problems with the store. What type of contract clause is this?

  •  Indemnification


John is selling his rental property to Tony. Marcus represents John, and Meredith is working with Tony, though there is no agency relationship between them. In this scenario, who is/are the principal(s) in an agency relationship?

  • John


Harriet, an out-of-state licensee, is friends with Tonya, a licensee who works with Perfectly at Home. Harriet referred one of her buyer friends to Tonya, so Tonya plans to pay Harriet a referral fee. Which one of the following statements about this fee is true?

  •  Tonya must pay the referral fee through her brokerage firm to Harriet’s brokerage firm.


Which of these situations represents an illegal tie-in arrangement?

  • A licensee tells his seller client he'll only represent her if the client uses a specific company to close her transaction.


In order for her house to accommodate her inability to hear, Angela has made a request for the house to be equipped with a doorbell that also alerts occupants with a flashing light. Which statement is correct?

  •  This is likely to be considered a reasonable accommodation, and Angela should be permitted to install it at her own expense.



Why is it important for licensees to understand the definition of a stigmatized property?

  • So they can make any required disclosures.


There is an independent contractor licensee working for B & L Realty. Since there is an independent contractor, what supervisory responsibility does their broker have?

  •  The licensee is considered an employee for licensing law purposes, but they're still an independent contractor for IRS purposes.


A family owns a 212-acre farm. Their property is landlocked, but they have permitted water rights to use the stream located six miles away for irrigation purposes. What kind of water rights do they hold?

  • Prior appropriation


Monique wants to take over Travis's mortgage loan. Which of these statements is true?

  • "Subject to" is an agreement between the seller and the buyer.


Commander Halfback retires after 25 years of service in the Coast Guard. He is looking to buy a home. What type of loan should he use?

  •  FHA, VA, or conventional


Government-insured loans have an additional provision, which is described in paragraph D of the Third Party Financing Addendum to the TREC One to Four Family Residential Contract (Resale). Specifically, the buyer is not obligated to purchase the property unless the buyer is given a written statement containing what information?

  • The appraised value of the property or the reasonable value of the property


The Recovery Trust Account should maintain a balance of at least what amount?

  •  $1.7 million


Tamron, a real estate agent located outside of Texas, is hosting an open house for a listing in which she represents the seller. During the open house, a buyer customer asks Tamron for her opinion on a real estate-related topic. She gives the buyer a few pieces of advice. What best describes this situation?

  • Tamron may have unintentionally created a dual agency situation by giving a customer advice while representing the other party.


Simone is a trustee for her children’s trust fund. Simone is also a broker. When she buys or sells investment property on behalf of that trust, which of the following is required by Texas law?

  •  Simone must disclose in writing to the other party that she holds a real estate license


When a real estate licensee receives compensation for referring a client to a real estate licensee in a proposed real estate transaction, this is known as ______.

  • Valuable consideration