Texas Real Estate Exam
Free Practice · 10 Questions · 20 min
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Question 1 of 10
Disclosures & EnvironmentalEasy

Under the federal lead-based paint disclosure rule, "target housing" generally means housing that was constructed before which year?

A1970
B1986
C1978
D1992
Explanation
The rule defines target housing as housing constructed prior to 1978, with exceptions for housing for the elderly or persons with disabilities (unless a child under 6 lives there) and 0-bedroom dwellings. The 1992 date is when Congress passed the underlying Act, not the construction cutoff, and 1970 and 1986 are simply wrong dates.
Question 2 of 10
Agency & BrokerageEasy

What is a 'net listing' in Texas real estate practice?

AA listing setting a seller's minimum, keeping the rest as fee
BA standard listing that pays a fixed percentage commission
CA listing that renews automatically every 90 days until canceled
DA listing only for commercial, income-producing property types
Explanation
A net listing makes the broker's commission whatever the sale brings above the amount the owner wants to net. TREC rules let a broker take one only if the principal requires a net listing and appears familiar with current market values, and the agreement must assure the owner at least the desired price and limit the broker to a specified maximum commission. It is not a fixed-percentage listing, is not limited to commercial property, and has nothing to do with automatic renewal.
Question 3 of 10
Disclosures & EnvironmentalEasy

Before a buyer is obligated to purchase target housing, the seller must provide an EPA-approved lead hazard information pamphlet. Which EPA pamphlet is named in the rule?

AThe Homebuyer's Guide to Lead Hazards
BRenovate Right: Lead Safety for Your Home
CA Citizen's Guide to Lead in Your House
DProtect Your Family From Lead in Your Home
Explanation
The seller or lessor must give the purchaser or lessee an EPA-approved lead hazard information pamphlet, and the rule names Protect Your Family From Lead in Your Home (or an equivalent approved for use in that state). Renovate Right is the separate pamphlet for renovation work, the Citizen's Guide title belongs to EPA's radon booklet, and the last title is made up.
Question 4 of 10
Property DisclosureEasy

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

AYes, transfers to a spouse or child are generally exempt
BYes, but only if the property has no existing defects
CNo, TREC must individually approve each family exemption
DNo, family transfers always require the full notice
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 5 of 10
Property Value & AppraisalEasy

An owner spent $600,000 building a custom home. Which statement about the relationship between cost and value is correct?

AValue can never be less than the owner's total cost
BValue equals cost plus a standard builder's profit
CValue may be greater or less than the cost spent
DValue must equal the cost if the work was permitted
Explanation
Cost and value are different concepts. Federal appraisal standards quote the Supreme Court that the value of property may be greater or less than its cost; buyers pay for what the property is worth to them, not for what the owner spent. Permits do not tie value to cost, value can fall below cost (for example with an over-improvement), and there is no rule that value equals cost plus profit.
Question 6 of 10
TREC Rules & StandardsMedium

Can a licensed Texas sales agent operate independently, without a sponsoring broker?

AYes, for deals under a set dollar amount
BYes, after holding a license two-plus years
CYes, by completing extra continuing education
DNo, a sales agent must always be sponsored
Explanation
A sales agent's license only permits them to practice under a sponsoring broker — there's no experience threshold, transaction-size exception, or amount of continuing education that allows independent practice. Only a broker's license allows that.
Question 7 of 10
Closing & FinanceMedium

What does a title insurance policy generally protect against?

AA decline in the property's market value
BThe buyer's liability if a visitor is injured
CPhysical damage from fire, storms, or flooding
DLoss from title defects predating the policy
Explanation
Title insurance covers financial loss from title defects — like an undisclosed lien or an ownership dispute — that existed before the policy was issued. It has nothing to do with physical property damage, visitor liability (that's homeowner's/general liability insurance), or market value changes.
Question 8 of 10
Landlord-Tenant & OwnershipMedium

Under Texas law, within how long must a landlord generally return a tenant's security deposit after the tenant moves out?

ANo deadline, as long as they eventually respond
B90 days, only if the tenant requests it
C30 days, with an itemized list of deductions
D60 days, with no duty to itemize deductions
Explanation
Texas law generally requires the deposit (or an itemized list of deductions) back within 30 days of the tenant surrendering the property — there's no 60- or 90-day standard, and it isn't left open-ended or conditioned on the tenant remembering to request it.
Question 9 of 10
Real Estate FinancingMedium

What does a promissory note represent in a financed real estate purchase?

AThe borrower's personal promise to repay the debt
BThe document that physically transfers title to the buyer
CA government guarantee that the loan will be repaid
DThe lender's promise to approve any future refinance
Explanation
The promissory note is the borrower's personal, signed promise to repay the loan under its stated terms; the deed is what transfers title, not the note. It's not a promise about future refinancing, and it isn't a government guarantee (that's a separate feature of certain loan programs).
Question 10 of 10
Property DisclosureMedium

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

AA sale priced above the local median price
BA sale that closes within 30 days of listing
CA sale in which the buyer has a buyer's agent
DA transfer by foreclosure or trustee's sale
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.

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