A home loses market value because of its awkward, outdated floor plan. An appraiser would classify this loss as:
A) physical deterioration
B) external obsolescence
C) economic depreciation
D) functional obsolescence
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A Texas property owner dies without a will and without any discoverable heirs. Title to the property passes to the state by:
A) eminent domain
B) escheat
C) reversion
D) condemnation
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A licensed Texas sales agent may receive compensation for a real estate transaction ONLY from:
A) the seller, if named in the listing agreement
B) their sponsoring broker
C) any party to the transaction who agrees in writing
D) the buyer, under a signed representation agreement
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In Texas, an unlicensed assistant employed by a broker may legally:
A) host an open house while the agent is away
B) show a listed property to a prospective buyer
C) explain contract terms to a seller
D) schedule showing appointments for the agent
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An easement appurtenant differs from an easement in gross in that an easement appurtenant:
A) Is a personal right that cannot be transferred
B) Must be in writing, unlike an easement in gross
C) Benefits a specific parcel and transfers automatically with the land
D) Allows use of the burdened property for any purpose
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In a Texas deed of trust, the borrower is known as the:
A) trustor
B) trustee
C) beneficiary
D) mortgagee
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Under a Texas residential contract, legal title passes from seller to buyer at closing via the:
A) Sales contract itself
B) Title commitment
C) Warranty deed
D) Closing Disclosure
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A loan is described as "assumable" when:
A) The lender absorbs the risk of a future value decline
B) A qualified buyer can take over the seller's existing mortgage, with lender approval
C) The borrower personally guarantees the entire property value
D) The loan automatically transfers to heirs without their consent
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The four phases of a neighborhood's life cycle, in order, are:
A) Stability, Growth, Revitalization, Decline
B) Decline, Growth, Stability, Revitalization
C) Revitalization, Growth, Stability, Decline
D) Growth, Stability, Decline, Revitalization
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keep seeing people ask if their practice exams are actually like the real thing, and honestly the only people who can answer that are the ones who just took it. so if you sat for the exam in the last few months: what caught you off guard? stuff you over-studied that barely showed up? topics that hit way harder than expected? did the question wording feel like your prep material? or totally different?
The 1988 amendments to the federal Fair Housing Act added which two protected classes?
A) Sex and national origin
B) Familial status and disability
C) Religion and color
D) Age and sexual orientation
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An "encumbrance" on real property is best defined as:
A) Any physical defect that must be disclosed to buyers
B) Any government zoning ordinance
C) Any claim, lien, or restriction attached to the property that doesn't prevent its transfer
D) Any improvement that lowers market value
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A "material fact" in real estate is best defined as:
A) Only defects visible during a walkthrough inspection
B) Whatever the seller personally considers important
C) A fact that would likely affect a reasonable buyer's decision to purchase or the price offered
D) Only facts a specific state statute requires disclosed
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A Texas broker who deposits client funds into their own personal bank account has committed:
A) A minor bookkeeping error
B) Tax fraud
C) No violation, as long as the funds are returned before closing
D) Commingling
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Under TREC rules, a broker must keep trust account records for at least:
A) 4 years
B) 1 year
C) 10 years
D) 7 years
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Which of the following is NOT a required element of a valid real estate contract in Texas?
A) Offer and acceptance
B) Notarization of the parties' signatures
C) Consideration
D) Legal capacity of all parties
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After three missed mortgage payments, the lender sends written notice demanding immediate repayment of the entire outstanding loan balance. Which clause in the deed of trust authorizes this?
A) The defeasance clause
B) The subordination clause
C) The alienation clause
D) The acceleration clause
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For the past 11 years, a neighbor has openly fenced off, maintained, and landscaped a strip of land that legally belongs to the adjacent property owner. The owner never gave permission and never objected. Under Texas law, which of the following best describes the neighbor's potential claim?
A) No claim exists — the owner's silence implies permission, which defeats the hostile element
B) The neighbor may have a valid adverse possession claim, having satisfied the 10-year requirement
C) The neighbor can only claim the land if they paid property taxes on it throughout that period
D) Texas does not recognize adverse possession claims on residential property
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During a title search on a Texas property, a buyer’s agent discovers a lis pendens recorded against it. What does this mean for the buyer?
A) The property has unpaid tax liens that must be resolved before title can transfer
B) The property is subject to pending litigation, and any buyer takes title subject to the outcome of that lawsuit
C) The seller is in default on their mortgage and the lender has initiated foreclosure proceedings
D) The property has a recorded easement that limits how the land can be used
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Two parties shake hands after verbally agreeing on a $350,000 sale price for a home. The next morning, the seller receives a better offer and backs out. Which of the following is correct?
A) The seller is within their rights—under the Statute of Frauds, real estate contracts must be in writing to be enforceable
B) The buyer can pursue specific performance—a verbal agreement with a clear price is legally binding
C) The verbal agreement is enforceable only if both parties can provide witnesses who were present
D) The handshake constitutes a binding agreement under Texas law
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