Free Texas Agency Practice Test — LicenseIQ

Question 1

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 2

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 3

A seller's elderly father died of natural causes in the house last year. Under TRELA, what is the listing agent's duty?

Accepted Answer

§1101.556 relieves license holders of any duty to inquire about or disclose a death by natural causes, suicide, or an accident unrelated to the property's condition.

Question 4

A sales agent meets a buyer whom the agent knows is represented by another license holder. Must the agent provide the IABS to that buyer?

Accepted Answer

§1101.558(c)(2) excuses the IABS when the license holder meets with a party the license holder knows is represented by another license holder. Brokerage affiliation does not matter.

Question 5

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 6

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 7

A sales agent application is filed with TREC on February 3. By what date must the applicant meet all licensing requirements, including passing the exam?

Accepted Answer

A TREC application expires one year from the date it is filed, and every requirement must be met within that year.

Question 8

An active sales agent on a later renewal has not finished CE by the expiration date. What option is available?

Accepted Answer

For later active renewals, TREC allows a $200 deferral fee that keeps the license active for 60 more days. This option is not available for first-renewal SAE or for late renewals.

Question 9

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 10

A sales agent's license expired 26 months ago. What must the person do to practice again?

Accepted Answer

A license may be renewed up to 6 months late and reinstated from 6 months up to 2 years after expiration. After 2 years, the person must reapply and pass the exam. At 26 months the reinstatement window has closed.

Question 11

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 12

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 13

A license holder tells a buyer, 'In my opinion, this home is priced fairly.' The buyer later disagrees. Which DTPA principle most likely protects the agent?

Accepted Answer

§17.49(c) exempts claims based on professional services whose essence is advice, judgment, or opinion. An honest pricing opinion fits that description.

Question 14

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 15

Which action by a sales agent using a TREC form is permitted?

Accepted Answer

License holders may fill in blanks with factual information and business details. Drafting legal provisions or advising on their legal effect is the practice of law.

Question 16

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 17

Two buyers in one transaction hold uncollectible judgments of $90,000 and $60,000 against the same agent. How much will the first buyer receive from the Recovery Trust Account?

Accepted Answer

Total claims are $150,000, which exceeds the $125,000 per-transaction cap, so payments are prorated. Ratio = 125,000 / 150,000 = 0.8333. First buyer: $90,000 x 0.8333 = $75,000. The second buyer receives $50,000.

Question 18

Which state agency enforces the Texas Fair Housing Act?

Accepted Answer

TWC's Civil Rights Division investigates and enforces Texas Fair Housing Act complaints. TREC separately disciplines licensees for discrimination.

Question 19

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 20

Which statement about Sales Agent Apprentice Education (SAE) for a first renewal is correct?

Accepted Answer

SAE hours cannot be deferred, and they apply to both active and inactive first renewals. The $200, 60-day deferral applies only to CE for later active renewals.

Question 21

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 22

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 23

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 24

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 25

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Texas real estate agency practice test

1. The best way to create an agency relationship is a(n):

2. A property manager owes fiduciary duties primarily to the:

3. A seller's elderly father died of natural causes in the house last year. Under TRELA, what is the listing agent's duty?

4. A sales agent meets a buyer whom the agent knows is represented by another license holder. Must the agent provide the IABS to that buyer?

5. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

6. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

7. A sales agent application is filed with TREC on February 3. By what date must the applicant meet all licensing requirements, including passing the exam?

8. An active sales agent on a later renewal has not finished CE by the expiration date. What option is available?

9. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

10. A sales agent's license expired 26 months ago. What must the person do to practice again?

11. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

12. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

13. A license holder tells a buyer, 'In my opinion, this home is priced fairly.' The buyer later disagrees. Which DTPA principle most likely protects the agent?

14. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

15. Which action by a sales agent using a TREC form is permitted?

16. A material defect that a seller/agent must disclose is one that:

17. Two buyers in one transaction hold uncollectible judgments of $90,000 and $60,000 against the same agent. How much will the first buyer receive from the Recovery Trust Account?

18. Which state agency enforces the Texas Fair Housing Act?

19. An agency relationship can be terminated by all of the following EXCEPT:

20. Which statement about Sales Agent Apprentice Education (SAE) for a first renewal is correct?

21. Which statement about dual agency is correct?

22. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

23. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

24. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

25. Which of the following is a fiduciary duty an agent owes the principal?

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