Texas Real Estate Sales Agent License, Practice Exams

A homeowner converts his garage into a retail shop in violation of the zoning ordinance. What may the city do?

1. Take title to the lot as a penalty for the zoning violation.
2. Enjoin or abate the violation; his title is not affected. ✓
3. Nothing, since zoning rules bind only new construction work.
4. Void his deed and return the lot to the previous owner.

Why: DRE Reference Book ch. 5: PUBLIC AUTHORITIES MAY ENJOIN OR ABATE IMPROVEMENTS OR ALTERATIONS THAT ARE IN VIOLATION OF A ZONING ORDINANCE, BUT ONLY THE USE OF THE LAND/PROPERTY, NOT THE TITLE, IS AFFECTED.

The usual offer-and-acceptance rules for real estate contracts may not apply to contracts between merchants for the sale of goods. What body of law governs those contracts?

1. The Statute of Frauds alone.
2. The Uniform Commercial Code. ✓
3. The Uniform Partnership Act.
4. The Interstate Land Sales Act.

Why: DRE Reference Book ch. 6 (Termination of offer): THIS DISCUSSION OF OFFER AND ACCEPTANCE, AND THE REST OF THE DISCUSSION AS TO FORMATION OF CONTRACTS, MAY NOT APPLY TO CONTRACTS BETWEEN MERCHANTS FOR THE SALE OF GOODS. THESE ARE GOVERNED BY THE ... UNIFORM COMMERCIAL CODE, which each state has adopted.

Which deed recites a consideration and purports to convey the real estate, and may add only a covenant that the grantor has done nothing to harm the title?

1. A general warranty deed.
2. A deed of reconveyance.
3. A bargain and sale deed. ✓
4. A sheriff's deed on sale.

Why: DRE Reference Book ch. 27: BARGAIN AND SALE DEED: ANY DEED THAT RECITES A CONSIDERATION AND PURPORTS TO CONVEY THE REAL ESTATE; A BARGAIN AND SALE DEED WITH A COVENANT AGAINST THE GRANTOR'S ACT IS ONE IN WHICH THE GRANTOR WARRANTS THAT GRANTOR HAS DONE NOTHING TO HARM OR CLOUD THE TITLE. A general warranty deed carries full covenants, and a sheriff's deed carries none.

A typed will is signed by the testator. What attestation does the Estates Code require?

1. Two witnesses aged 18 or older, plus a notary public's seal
2. One disinterested witness who signs within 30 days
3. Two witnesses aged 14 or older, signing in his presence ✓
4. Three witnesses who each sign in one another's presence

Why: Estates Code 251.051(3) requires attestation by two or more credible witnesses who are at least 14 years of age and who subscribe their names in their own handwriting in the testator's presence. No notary is needed for validity; a notarized self-proving affidavit under 251.101 only simplifies probate.

A broker marketing a developer's lots offers entry in a prize draw to anyone who buys a lot. What does the Act say?

1. It is allowed if the prize is under $1,000.
2. Selling real property by lottery is a ground for discipline. ✓
3. It is allowed if TREC is notified first.
4. It is allowed if every buyer receives a prize.

Why: Occupations Code 1101.652(b)(14) makes it a ground for discipline when a license holder SOLICITS, SELLS, OR OFFERS FOR SALE REAL PROPERTY BY MEANS OF A LOTTERY, and (b)(15) BY MEANS OF A DECEPTIVE PRACTICE.

An appraiser uses a house that sold eight months ago as a comparable. Since the sale, its new owner has remodeled the kitchen and replaced the roof. As of when should the appraiser judge the comparable's condition?

1. As of the day the appraiser inspects it.
2. As of the subject's effective date.
3. As of when the remodeling was finished.
4. As of the time the comparable sold. ✓

Why: DRE Reference Book ch. 15, The Procedure: PROPER COMPARISONS BETWEEN LIKE PROPERTIES ARE IDEALLY BASED ON AN ACTUAL INSPECTION. INSPECTIONS SHOULD DETERMINE: THE CONDITION OF IMPROVEMENTS AT TIME OF SALE, NOT AS OF DATE OF INSPECTION. The price reflects the house as it was when it sold, so the later remodeling must be set aside.

An elderly owner is told the paper she is signing is a receipt for rent. It is in fact a contract to sell her home. What is its status?

1. Voidable, and binding on her until rescinded
2. Void, as she never meant to make a contract ✓
3. Valid, since she signed without reading it
4. Unenforceable only after the closing date

Why: Reference Book chapter 6 distinguishes fraud in the inception or execution from fraud in the inducement. Where the signer is deceived as to the nature of the act and does not know a contract is being signed, the contract is void. Fraud in the inducement, where the signer knows what is being signed, makes it only voidable.

A loan's principal and interest is $1,896.20 a month. Annual taxes are $5,400 and annual hazard insurance is $1,380, both paid monthly into escrow. What is the monthly PITI?

1. $2,011.20
2. $2,346.20
3. $2,461.20 ✓
4. $8,676.20

Why: Reference Book chapter 12 defines PITI as principal and interest, property taxes and hazard insurance. Taxes are $5,400 / 12 = $450 and insurance $1,380 / 12 = $115, so $1,896.20 + $450 + $115 = $2,461.20. Adding the annual amounts unconverted gives $8,676.20.

Which of these is a listed ground for disciplining a Texas license holder?

1. Charging a commission above 6% of the property's sales price.
2. Knowingly making an invoice inaccurate in a material way. ✓
3. Declining to list a property the agent thinks overpriced.
4. Refusing to show a listing on a Sunday or on a public holiday.

Why: Occupations Code 1101.652(b)(24): the commission may discipline a license holder who WITHHOLDS FROM OR INSERTS INTO A STATEMENT OF ACCOUNT OR INVOICE A STATEMENT THAT THE LICENSE HOLDER KNOWS MAKES THE STATEMENT OF ACCOUNT OR INVOICE INACCURATE IN A MATERIAL WAY. The Act fixes no commission ceiling and no duty to take every listing or show on any day.

Who receives a copy of each new sales agent license from TREC?

1. The county clerk.
2. The local Realtor association.
3. The agent's first client.
4. The sponsoring broker. ✓

Why: Occupations Code 1101.554 provides that THE COMMISSION SHALL DELIVER A COPY OF EACH SALES AGENT LICENSE TO THE BROKER THAT IS SPONSORING THE SALES AGENT.

A property manager's instructions are to spend nothing over $500 without the owner's approval. A pipe bursts at night, flooding a unit, and the owner cannot be reached. The manager may:

1. Do nothing beyond $500 until the owner can be reached
2. Order the needed repair; an emergency widens authority ✓
3. Order the repair only if the tenant agrees to pay for it
4. Terminate the lease so the owner avoids liability

Why: Reference Book chapter 10 states that an agent has expanded authority in an emergency, including the power to disobey instructions where it is clearly in the principal's interest and there is no time to obtain instructions, and gives a property manager's urgent repair as the example. The duty of obedience yields in that narrow case.

A broker accepts a buyer's promissory note as earnest money but lets the seller believe cash was received. What has the broker done?

1. Nothing wrong at all, as notes are the legal equivalent of cash.
2. Nothing wrong at all, if the note is paid before the closing date.
3. Breached the duty to disclose facts that could affect the seller. ✓
4. Only a clerical error, cured by correcting the deposit receipt later.

Why: DRE Reference Book ch. 10: WHILE CHECKS HAVE BEEN UNIVERSALLY ACCEPTED AS THE EQUIVALENCY OF MONEY IN BUSINESS TRANSACTIONS, PROMISSORY NOTES ARE NOT. ... A REAL ESTATE BROKER, LIKE A TRUSTEE, HAS AN AFFIRMATIVE DUTY TO DISCLOSE ALL MATERIAL FACTS WHICH MIGHT INFLUENCE A PRINCIPAL'S DECISION. THUS THE BROKER WHO IMPLIEDLY REPRESENTS TO A PRINCIPAL THAT THE BROKER HAS RECEIVED CASH ... (WHEN IN FACT THE BROKER HAS ACCEPTED A NON-NEGOTIABLE PROMISSORY NOTE) HAS VIOLATED THE REAL ESTATE LAW.

Under TREC rules, which of these activities requires a Texas real estate license?

1. Selling your own rental house at a profit as principal.
2. Charging a fee to help people find apartments to rent. ✓
3. Running a member listing service paid nothing on sales.
4. Leasing land for the company that employs and pays you.

Why: 22 TAC 535.4(m): A REAL ESTATE LICENSE IS REQUIRED FOR A PERSON TO RECEIVE A FEE OR OTHER CONSIDERATION FOR ASSISTING ANOTHER PERSON TO LOCATE REAL PROPERTY FOR SALE, PURCHASE, RENT, OR LEASE, INCLUDING THE OPERATION OF A SERVICE WHICH FINDS APARTMENTS OR HOMES. The others are exempt under 22 TAC 535.5: a principal selling for profit, TRADE ASSOCIATIONS OR OTHER ORGANIZATIONS THAT PROVIDE AN ELECTRONIC LISTING SERVICE FOR THEIR MEMBERS, BUT DO NOT RECEIVE COMPENSATION WHEN THE REAL ESTATE IS SOLD, and an entity's directly compensated employee.

Unknown to either party, a cabin burned to the ground an hour before its owner and a buyer signed a contract for its sale. What is the effect?

1. The buyer must still pay the full agreed price.
2. The seller must rebuild the cabin before closing day.
3. The contract is valid but voidable by the seller.
4. There is no contract, as performance is impossible. ✓

Why: DRE Reference Book ch. 6: WHERE THE SUBJECT MATTER OF THE AGREEMENT HAS, UNKNOWN TO THE PARTIES, ALREADY CEASED TO EXIST, SO THAT PERFORMANCE OF THE CONTRACT WOULD BE IMPOSSIBLE, THERE IS NO CONTRACT.

A buyer submits an offer on a 1972 condominium before the seller has provided any lead disclosures. What must the seller do before accepting the offer?

1. Make the disclosures, then let the buyer review and amend the offer ✓
2. Accept first, then deliver the disclosures at any time before closing
3. Nothing more, as a buyer who offers early waives the disclosures
4. Reject the offer and require the buyer to begin again afterward

Why: 40 CFR 745.107(b): if any disclosure activity occurs after the purchaser has made an offer, the seller must complete the required disclosures prior to accepting the offer and allow the purchaser an opportunity to review the information and possibly amend the offer. Disclosing after acceptance would leave the buyer already obligated, which 745.107(a) forbids, and nothing requires the offer to be rejected.

In a community property state, how much of the community property may a spouse leave by will?

1. Her own half of the community property. ✓
2. All of it, if title stands in her name.
3. None; it passes wholly to the survivor.
4. Only her separate property, not any of it.

Why: DRE Reference Book ch. 5: EACH SPOUSE HAS THE RIGHT TO DISPOSE OF HIS OR HER HALF OF COMMUNITY PROPERTY BY WILL. Only absent a will does the decedent's half pass to the surviving spouse.

A landlord knows a rental house is in a 100-year floodplain but signs a one-year lease without giving the floodplain notice. A flood then damages the tenant's belongings, and repair or replacement will cost 60% of their market value. What may the tenant do?

1. End the lease by written notice within 30 days ✓
2. End the lease by giving 90 days' written notice
3. Recover triple rent, but the lease stays in force
4. Nothing; flood loss is the tenant's insurance risk

Why: Property Code 92.0135(f): IF A LANDLORD VIOLATES THIS SECTION AND A TENANT SUFFERS A SUBSTANTIAL LOSS OR DAMAGE TO THE TENANT'S PERSONAL PROPERTY AS A RESULT OF FLOODING, THE TENANT MAY TERMINATE THE LEASE BY GIVING A WRITTEN NOTICE OF TERMINATION TO THE LANDLORD NOT LATER THAN THE 30TH DAY AFTER THE DATE THE LOSS OR DAMAGE OCCURRED. The loss is substantial because the cost is 50 PERCENT OR MORE OF THE PERSONAL PROPERTY'S MARKET VALUE, and 92.0135(g) requires a refund of rent paid in advance for the period after termination.

An owner has a parcel rezoned for commercial use in an area where there is no demand for commercial sites. What effect does the rezoning alone have on value?

1. It raises value to that of the best commercial site
2. It doubles value, since commercial land sells higher
3. It creates no value without demand for that use ✓
4. It lowers value to the residential figure

Why: Reference Book chapter 15 states that zoning by itself does not create value unless there is a demand for the land so zoned. Demand, backed by purchasing power, is one of the four essential elements of value.

Which of these is classified as real property?

1. A right-of-way over the next lot serving it ✓
2. A promissory note secured by a mortgage on the parcel
3. A car kept in the garage on the parcel
4. Money received from the sale of the parcel

Why: Reference Book chapter 4 lists as real property land, things affixed to it, that which is incidental or appurtenant to the land, and that which is immovable by law; easements over adjoining land are given as appurtenant examples. Money, movable goods and evidences of debt such as a note are personal property.

Which of these is an "advertisement" under 22 TAC 535.155?

1. A private email to a current client about a listing.
2. A signed contract delivered to a party.
3. A text replying to a buyer's question on a showing.
4. A social media post promoting services. ✓

Why: 22 TAC 535.155 defines an ADVERTISEMENT as ANY FORM OF COMMUNICATION BY OR ON BEHALF OF A LICENSE HOLDER DESIGNED TO ATTRACT THE PUBLIC TO USE REAL ESTATE BROKERAGE SERVICES, including ALL ELECTRONIC MEDIA INCLUDING EMAIL, TEXT MESSAGES, SOCIAL MEDIA, THE INTERNET, business cards, signs and billboards, and excludes A COMMUNICATION FROM A LICENSE HOLDER TO THE LICENSE HOLDER'S CURRENT CLIENT.

An investor that buys many home loans each year acquires ownership of a homeowner's mortgage loan. The same company keeps servicing it. Must the investor tell the homeowner that it now owns the loan?

1. No; notice is needed only when the servicer changes.
2. Yes, at least 15 days before the date of transfer.
3. Yes, by the 30th calendar day after the transfer. ✓
4. No, unless the loan's terms or payments will change.

Why: 12 CFR 1026.39(b): EACH COVERED PERSON ... SHALL MAIL OR DELIVER THE DISCLOSURES REQUIRED BY THIS SECTION TO THE CONSUMER ON OR BEFORE THE 30TH CALENDAR DAY FOLLOWING THE DATE OF TRANSFER; under (a)(1) a covered person is one THAT BECOMES THE OWNER OF AN EXISTING MORTGAGE LOAN BY ACQUIRING LEGAL TITLE TO THE DEBT OBLIGATION ... AND WHO ACQUIRES MORE THAN ONE MORTGAGE LOAN IN ANY TWELVE-MONTH PERIOD. The duty turns on a new owner, not a new servicer.

A rancher places fill in a regulated creek to build a stock pond for her cattle. The work does not impair the creek's flow or reduce its reach. Does she need a section 404 permit?

1. Yes; any fill in navigable waters needs one.
2. Yes, unless the pond also waters her crops.
3. No, but only if a state program approves it.
4. No; building farm or stock ponds is exempt. ✓

Why: 33 U.S.C. 1344(f)(1): the discharge of dredged or fill material ... (C) FOR THE PURPOSE OF CONSTRUCTION OR MAINTENANCE OF FARM OR STOCK PONDS OR IRRIGATION DITCHES, OR THE MAINTENANCE OF DRAINAGE DITCHES ... IS NOT PROHIBITED BY OR OTHERWISE SUBJECT TO REGULATION UNDER THIS SECTION. Under (f)(2) a permit is needed only where THE FLOW OR CIRCULATION OF NAVIGABLE WATERS MAY BE IMPAIRED OR THE REACH OF SUCH WATERS BE REDUCED, which the facts rule out.

If a broker's signed employment contract states no amount of compensation, what does the law imply?

1. That the broker agreed to work for no pay at all.
2. That the broker may set any fee after the sale.
3. A promise to pay the customary local commission. ✓
4. A promise to pay a fixed rate set by state law.

Why: DRE Reference Book ch. 10: IF NO AMOUNT OF COMPENSATION IS MENTIONED IN THE CONTRACT OF EMPLOYMENT, THE LAW IMPLIES A PROMISE ON THE PART OF THE OWNER TO PAY THE USUAL OR CUSTOMARY COMMISSION CHARGED IN THE NEIGHBORHOOD FOR LIKE SERVICES. Commission rates are not fixed by law.

A buyer's agent receives the seller's written disclosure that the house had foundation repairs. Beyond passing it on, what does the agent owe the buyer?

1. Nothing more; disclosing it fully discharges the duty.
2. Only to tell the seller she has read the disclosure.
3. To explain its significance and counsel her about it. ✓
4. To set the price cut the buyer should demand for it.

Why: DRE Reference Book ch. 10: THE AGENT OF THE PRINCIPAL TO WHOM THE DISCLOSURES ARE BEING MADE OWES FIDUCIARY DUTIES TO THAT PRINCIPAL WHICH INCLUDE 'EXPLAINING' THE SIGNIFICANCE AND CONSEQUENCES OF THAT WHICH HAS BEEN DISCLOSED ... AND THE AGENT IS OBLIGATED TO 'COUNSEL' THE PRINCIPAL, which INCLUDES CONDUCTING ANY REQUIRED INQUIRY OR RECOMMENDING THAT AN INQUIRY BE UNDERTAKEN.

For the own-property disclosure rule, which of these counts as the license holder acting for himself?

1. Selling for a neighbor who is a close friend.
2. Selling for a client under an exclusive listing.
3. Selling for a company he owns over 10% of. ✓
4. Selling for his broker's other sales agents.

Why: 22 TAC 535.144(a) extends "license holder" for 1101.652(a-1)(1) to one acting for THE LICENSE HOLDER'S SPOUSE, PARENT OR CHILD; A BUSINESS ENTITY IN WHICH THE LICENSE HOLDER IS MORE THAN A 10% OWNER; or A TRUST of which the license holder is trustee or the license holder or a close relative is a beneficiary.

Why is an appraiser's final opinion of value rounded rather than stated in odd dollars and cents?

1. Lenders will only accept values in round thousands.
2. Rounding conceals the weight given to each approach.
3. Cents imply precision market data cannot support. ✓
4. Odd figures would reveal that approaches were averaged.

Why: DRE Reference Book ch. 15, Reconciliation: THE FINAL OPINION OF VALUE SHOULD NOT BE REPORTED IN ODD DOLLARS AND CENTS AS THAT WOULD IMPLY A LEVEL OF PRECISION NOT GENERALLY SUPPORTED BY MARKET DATA. INSTEAD, THE OPINION OF VALUE SHOULD BE ROUNDED.

In the cost approach, what does the land value as if vacant plus the full cost new of the building, with all direct and indirect costs and profit and before any depreciation, tend to set?

1. The lower limit of the property's value.
2. The assessed value used for property tax.
3. The upper limit of the property's value. ✓
4. The insurable value of the whole property.

Why: DRE Reference Book ch. 15, Cost Approach: THE TOTAL COST OF THE LAND AS IF VACANT, PLUS THE RECONSTRUCTION COST NEW OF THE BUILDING WITH ALL DIRECT AND INDIRECT EXPENSES AND PROFIT, AND BEFORE DEDUCTION OF DEPRECIATION, WILL TEND TO SET THE UPPER LIMIT OF VALUE. Under the principle of substitution a buyer will not pay more than the cost of producing an equivalent property.

A 12-unit building rents at market for $1,250 per unit per month. Vacancy and collection loss is 6%. Operating expenses, including reserves, are $54,200 a year, and the owner also pays $36,000 a year on the mortgage. What is net operating income?

1. $79,000
2. $115,000 ✓
3. $125,800
4. $169,200

Why: Reference Book chapter 15: potential gross income less vacancy and collection loss is effective gross income, and deducting operating expenses gives net income; mortgage principal and interest "must be disregarded by the appraiser as not being allowable expense items." 12 units times $1,250 times 12 is $180,000; less 6% ($10,800) is $169,200; less $54,200 is $115,000. Deducting the mortgage too gives $79,000.

A listing agent, with no basis for it, assures a buyer that a house is "in perfect shape." The roof leaks. How has an appellate court described such a statement?

1. As a representation of a material fact ✓
2. As harmless sales talk that binds no one
3. As an opinion the buyer had to check
4. As a promise enforceable only in writing

Why: Reference Book chapter 10 reports that a broker's statement that a house was "in perfect shape," while obviously not literally true, has been described by an appellate court as a representation of a material fact. It also notes that a positive assertion not warranted by the information of the person making it can be actual fraud even without evil intent.

A seller and the first buyer sign an amendment cutting the price. The back-up buyer says the amendment ended the first contract, so the back-up contract is now primary. Is he right?

1. No; an amendment does not terminate the first contract. ✓
2. Yes; any change at all to the first contract terminates it.
3. Yes, since the amendment lowered the first contract price.
4. Yes, as soon as the seller has signed the new amendment.

Why: TREC No. 11-9, paragraph I: AN AMENDMENT OR MODIFICATION OF THE FIRST CONTRACT WILL NOT TERMINATE THE FIRST CONTRACT. The back-up contract stays contingent under paragraph G until the first contract actually terminates.

Under HUD's rules, what is it when a leasing agent assigns every tenant with children to the ground floor of a building, however the rule is explained?

1. Steering, by assigning people to a floor on familial status. ✓
2. A lawful rule, since all families still receive a unit.
3. Blockbusting, since it changes the makeup of each of the floors.
4. Lawful, if the ground-floor units rent at the same price.

Why: 24 CFR 100.70(c): practices GENERALLY REFERRED TO AS UNLAWFUL STEERING PRACTICES include (4) ASSIGNING ANY PERSON TO A PARTICULAR SECTION OF A COMMUNITY, NEIGHBORHOOD OR DEVELOPMENT, OR TO A PARTICULAR FLOOR OF A BUILDING, BECAUSE OF ... FAMILIAL STATUS. Equal rent does not cure the assignment.

Under general principles, how is the rate of a listing broker's commission set?

1. By the state licensing agency, in a fee schedule
2. By the local association of real estate brokers
3. By a rate that federal law fixes for home sales
4. By agreement between the broker and the client ✓

Why: Reference Book chapter 20 states the principle that the amount or rate of real estate commissions is not fixed by law: commissions are set by each broker individually and may be negotiable between the seller and the broker. An association that set rates for its members would be engaged in the kind of agreement the antitrust laws forbid.

What is assessed value?

1. A lender appraiser's valuation of the property securing its loan.
2. The listing broker's estimate of value, used to set the list price.
3. The price agreed between the buyer and the seller at closing.
4. A public authority's valuation of property as the basis for taxes. ✓

Why: Reference Book chapter 27 defines assessed valuation as "a valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property," and the assessor as the official responsible for it. Chapter 16 adds that property taxes are ad valorem, levied according to value.

A person holds a power of attorney for an elderly relative and sells two of the relative's properties this year. Does that person need a license?

1. Yes; any sale of real estate for another person needs a license.
2. No, but only if no fee or commission is charged for the sales.
3. Yes, unless the power of attorney is recorded in the county records.
4. No; an attorney-in-fact is exempt for up to three transactions a year. ✓

Why: Occupations Code 1101.005(2) exempts AN ATTORNEY-IN-FACT AUTHORIZED UNDER A POWER OF ATTORNEY TO CONDUCT NOT MORE THAN THREE REAL ESTATE TRANSACTIONS ANNUALLY. Two sales in a year are within the exemption.

Can giving up a lawsuit, rather than paying money, serve as consideration for another party's promise?

1. No; only money or property can be consideration.
2. No, since a promise not to act has no legal value.
3. Yes, but only if the lawsuit had already been won.
4. Yes; an act of forbearance can be consideration. ✓

Why: DRE Reference Book ch. 6: THE CONSIDERATION MAY BE EITHER A BENEFIT CONFERRED, OR AGREED TO BE CONFERRED ... OR A DETRIMENT SUFFERED OR AGREED TO BE SUFFERED. IT MAY BE AN ACT OF FORBEARANCE OR A CHANGE IN LEGAL RELATIONS.

A broker lets a sales agent handle work beyond the written scope. Who is responsible for those acts?

1. Only the sales agent.
2. Neither, as the acts were unauthorized.
3. The broker. ✓
4. The client who accepted the work.

Why: 22 TAC 535.2(a) provides that IF A BROKER PERMITS A SPONSORED SALES AGENT TO CONDUCT ACTIVITIES BEYOND THE SCOPE EXPLICITLY AUTHORIZED BY THE BROKER, THOSE ARE ACTS FOR WHICH THE BROKER IS RESPONSIBLE.

A variance lets an owner build closer to her side line than the zone normally permits. Can the same variance let her build taller than any neighbor may?

1. Yes; once it is granted, a variance lifts every limit on the lot.
2. Yes, if the added height is needed to recover her building costs.
3. No, unless her lot is also rezoned to a commercial district.
4. No; it gives the same, not additional, privileges as neighbors. ✓

Why: DRE Reference Book ch. 18: IF GRANTED, THE WAIVER OR “ZONING VARIANCE” PROVIDES THE PROPERTY OWNER WITH THE SAME, BUT NOT ADDITIONAL, DEVELOPMENT PRIVILEGES AS NEIGHBORING PARCELS IN THE SAME ZONE.

An intermediary broker appoints one associate to each party. What may the appointed associates do?

1. Only pass messages, with no advice at all.
2. Advise the party each is appointed to. ✓
3. Advise both parties equally.
4. Negotiate for the broker, not the parties.

Why: Occupations Code 1101.560(a) and (c) let the broker, with the parties' written authority and WRITTEN NOTICE OF THE APPOINTMENT TO ALL PARTIES, appoint associates to COMMUNICATE WITH AND CARRY OUT INSTRUCTIONS OF each party, and an appointed license holder MAY PROVIDE OPINIONS AND ADVICE DURING NEGOTIATIONS TO THE PARTY TO WHOM THE LICENSE HOLDER IS APPOINTED.

Dana holds a recorded driveway easement across her neighbor Eli's lot. Dana later buys Eli's lot outright. What becomes of the easement?

1. It survives and can be sold apart from either parcel.
2. It ends by merger, as one person now owns both parcels. ✓
3. It becomes an easement in gross held by Dana herself.
4. It continues until Dana records a separate release.

Why: DRE Reference Book ch. 5: EASEMENTS MAY BE EXTINGUISHED OR TERMINATED IN SEVERAL WAYS, INCLUDING ... MERGER OF THE SERVIENT TENEMENT AND THE EASEMENT IN THE SAME PERSON. Once Dana owns the burdened lot as well as the easement, no one holds a right over another's land, so the easement ends.

A developer builds a 100-unit condominium building with one elevator. How many of the units must meet the Fair Housing Act's accessible design requirements?

1. Only the ground-floor units, as with any other building.
2. Only the units served directly by the elevator lobby.
3. Only 10 percent of the units, spread across the floors.
4. All 100 units, because the building has an elevator. ✓

Why: 24 CFR 100.205(d), Example (1): A 100 UNIT CONDOMINIUM APARTMENT BUILDING WITH ONE ELEVATOR ... ALL 100 UNITS ARE COVERED MULTIFAMILY DWELLING UNITS. 42 U.S.C. 3604(f)(7)(A) covers BUILDINGS CONSISTING OF 4 OR MORE UNITS IF SUCH BUILDINGS HAVE ONE OR MORE ELEVATORS; only in buildings without one is coverage limited to ground-floor units.

A seller's commission agreement was signed not by the seller but by his attorney-in-fact, who had authority to sign it. Can the broker sue the seller on it?

1. No; only the seller's own signature counts.
2. Yes, but only if it was also recorded.
3. No, unless a notary witnessed the signing.
4. Yes; an authorized person may sign it. ✓

Why: Occupations Code 1101.806(c): a commission action requires that THE PROMISE OR AGREEMENT ON WHICH THE ACTION IS BASED, OR A MEMORANDUM, IS IN WRITING AND SIGNED BY THE PARTY AGAINST WHOM THE ACTION IS BROUGHT OR BY A PERSON AUTHORIZED BY THAT PARTY TO SIGN THE DOCUMENT.

A lease clause says the tenant will keep the storefront windows clean, but it is unclear whether a breach ends the lease or only gives a claim. The tenant lets them get dirty. How will a court likely read the clause?

1. As a condition, so the landlord may end the lease at once.
2. As a condition, as every lease duty is a condition of it.
3. As a covenant, so the landlord may sue but not terminate. ✓
4. As void, since an ambiguous lease term cannot be enforced.

Why: DRE Reference Book ch. 9 (Tenant's or landlord's breach of a condition or covenant): for a covenant, IF THE PROMISE IS NOT HONORED, THE NON-BREACHING PARTY IS GENERALLY ONLY ENTITLED TO REMEDIES FOR BREACH OF LEASE (SUCH AS SUING FOR DAMAGES OR INJUNCTIVE RELIEF) ... BECAUSE OF THE SEVERITY OF THE REMEDY FOR BREACH OF A CONDITION (TERMINATION), A COURT IS LIKELY TO CONSTRUE AN AMBIGUOUS PROVISION AS MERELY A COVENANT.

A state has its own lead disclosure law that asks more of sellers than the federal rule does. How does the federal rule affect a seller's duty under that state law?

1. It preempts the state law, so only the federal rule then applies.
2. It lets the seller choose which one of the two laws to follow.
3. It leaves the state duty in place; the seller must meet both. ✓
4. It keeps the state law only for sales that are made without agents.

Why: 40 CFR 745.119: NOTHING IN THIS SUBPART SHALL RELIEVE A SELLER, LESSOR, OR AGENT FROM ANY RESPONSIBILITY FOR COMPLIANCE WITH STATE OR LOCAL LAWS, ORDINANCES, CODES, OR REGULATIONS GOVERNING NOTICE OR DISCLOSURE OF KNOWN LEAD-BASED PAINT OR LEAD-BASED PAINT HAZARDS. The federal rule is a floor; the state duty still binds the seller.

Three tenants in common cannot agree on what to do with a small lot. One wants out, and the lot cannot practically be divided. What court proceeding fits?

1. A quiet title action to fix the shares
2. A declaratory relief action on the deed
3. A suit for specific performance of the deed
4. A partition action and court-ordered sale ✓

Why: Reference Book chapter 6 explains that a co-owner may sue the other co-owners for a severance of their interests, and that if the property cannot practically be divided the court may order a sale and divide the proceeds; this is a partition action. Chapter 5 adds that a tenant in common may be limited to forcing a sale of the whole property this way. A quiet title action settles an adverse claim to title, not a split among co-owners.

A first mortgage was recorded ten years ago. This year's property taxes on the parcel are unpaid. Which lien has priority?

1. The property tax lien, whatever the dates ✓
2. The mortgage, because it was recorded first
3. Whichever lienholder files suit first
4. Both share equally in any sale proceeds

Why: Reference Book chapter 12 describes property taxes and authorized assessments as super liens that keep priority over deeds of trust and mortgages no matter when recorded, and chapter 5 says tax liens are superior to any mortgage regardless of its date. The first-in-time rule gives way to real property taxes.

A new zoning rule bars an owner from building apartments on his land, cutting its value, but single-family homes may still be built there. Is he usually owed compensation?

1. Yes; any loss in value from a regulation must be paid.
2. Yes, measured by the value lost on the apartment plan.
3. No; a regulation that lowers value is usually not a taking. ✓
4. No, unless he had already applied for and paid for a permit.

Why: DRE Reference Book ch. 17: NOT ALL GOVERNMENT ACTIVITY WHICH MAY REDUCE OR ENTIRELY DESTROY THE VALUE OF PROPERTY IS A “TAKING.” FOR EXAMPLE, ZONING OR HEALTH REGULATIONS WHICH PROHIBIT AN OWNER FROM USING A PROPERTY FOR A CERTAIN PURPOSE OR IN A CERTAIN MANNER MAY MAKE THE PROPERTY MUCH LESS VALUABLE BUT, USUALLY, NO COMPENSATION IS PAID. A regulatory taking generally requires a far more severe economic impact, such as denial of all economically beneficial use.

A buyer of a 1968 house tells the listing agent he does not want a lead inspection at all. How is the inspection opportunity handled?

1. He may waive it by so indicating in writing ✓
2. It cannot be waived by a buyer of target housing
3. He waives it simply by not scheduling one in time
4. The seller must still order one before closing

Why: 40 CFR 745.110(b) lets a purchaser waive the opportunity to conduct the risk assessment or inspection "by so indicating in writing," and 745.113(a)(5) has the purchaser state that he either received the opportunity or waived it. Silence is not a waiver, and the seller has no duty to conduct an evaluation (745.107(a)).

Who bears the burden of proof in a tenant's suit over a retained security deposit?

1. The tenant, to show bad faith.
2. Both equally.
3. The court decides it without any burden on either side.
4. The landlord, to show it was reasonable. ✓

Why: Property Code 92.109(c) provides that IN AN ACTION BROUGHT BY A TENANT UNDER THIS SUBCHAPTER, THE LANDLORD HAS THE BURDEN OF PROVING THAT THE RETENTION OF ANY PORTION OF THE SECURITY DEPOSIT WAS REASONABLE.

An advertisement offers to rebate part of the agent's commission to buyers. What must it disclose?

1. The exact dollar amount of the rebate in every single case.
2. That TREC has approved the rebate program in advance.
3. That the rebate needs the represented party's consent. ✓
4. That the rebate will be paid in cash at the closing table.

Why: 22 TAC 535.155: a misleading advertisement includes one THAT OFFERS TO REBATE A PORTION OF A LICENSE HOLDER'S COMPENSATION TO A PARTY IF THE ADVERTISEMENT DOES NOT DISCLOSE THAT PAYMENT OF THE REBATE IS SUBJECT TO THE CONSENT OF THE PARTY THE LICENSE HOLDER REPRESENTS IN THE TRANSACTION.

A drainage district places fill to rebuild a recently storm-damaged part of a serviceable levee standing in regulated waters. Does the work need a section 404 permit?

1. Yes; every fill in navigable waters needs one.
2. Yes, unless the Governor declares an emergency.
3. No; maintenance of serviceable levees is exempt. ✓
4. No, but only if the levee protects working farms.

Why: 33 U.S.C. 1344(f)(1)(B): the discharge of dredged or fill material FOR THE PURPOSE OF MAINTENANCE, INCLUDING EMERGENCY RECONSTRUCTION OF RECENTLY DAMAGED PARTS, OF CURRENTLY SERVICEABLE STRUCTURES SUCH AS DIKES, DAMS, LEVEES ... IS NOT PROHIBITED BY OR OTHERWISE SUBJECT TO REGULATION UNDER THIS SECTION.

What are the minimum services a broker representing a party must provide?

1. Hold an open house every month.
2. Arrange the party's financing.
3. Order a survey and inspection.
4. Answer questions and present offers. ✓

Why: Occupations Code 1101.557(b)(3) provides that a broker representing a party SHALL, AT A MINIMUM, ANSWER THE PARTY'S QUESTIONS AND PRESENT ANY OFFER TO OR FROM THE PARTY, and (b)(2) requires the broker to INFORM THE PARTY of material information, including the RECEIPT OF AN OFFER.

A violent crime occurred in a house years ago. The house has no physical defect, but some buyers might care about its history. What general test decides whether the licensee should treat that history as a material fact?

1. Whether it caused physical damage to the structure itself.
2. Whether it happened within the last twelve months only.
3. Whether it would likely affect the principal's judgment. ✓
4. Whether it appears anywhere in the county land records.

Why: DRE Reference Book ch. 27: MATERIAL FACT, A FACT IS MATERIAL IF IT IS ONE WHICH THE AGENT SHOULD REALIZE WOULD BE LIKELY TO AFFECT THE JUDGMENT OF THE PRINCIPAL IN GIVING HIS OR HER CONSENT TO THE AGENT TO ENTER INTO THE PARTICULAR TRANSACTION ON THE SPECIFIED TERMS. The test is the fact's likely effect on the decision, not whether it is physical.

A seller agrees to pay 1.5 points on the buyer's loan. The price is $400,000, the home appraises at $392,500, and the lender lends 80% of the appraised value. What do the points cost the seller?

1. $4,710. ✓
2. $4,800.
3. $5,887.50.
4. $6,000.

Why: DRE Reference Book ch. 27: DISCOUNT POINTS are THE AMOUNT OF MONEY THE BORROWER OR SELLER MUST PAY THE LENDER TO GET A MORTGAGE AT A STATED INTEREST RATE, and A POINT EQUALS ONE PERCENT OF THE LOAN; the LTV ratio applies to the APPRAISED VALUE. Working: $392,500 x 0.80 = $314,000 loan; x 0.015 = $4,710. $4,800 uses 80% of the price; $5,887.50 takes points on the appraised value and $6,000 on the price, not on the loan.

A buyer holds a final judgment against a sales agent, with execution returned nulla bona and a judgment lien perfected. After giving TREC and the agent written notice of her verified claim, how long must she wait before asking the court for an order for payment from the recovery trust account?

1. Until after the 10th day
2. Until after the 20th day ✓
3. Until after the 30th day
4. Until after the 60th day

Why: Occupations Code 1101.606(b): AFTER THE 20TH DAY AFTER THE DATE THE AGGRIEVED PERSON GIVES WRITTEN NOTICE OF THE CLAIM TO THE COMMISSION AND JUDGMENT DEBTOR, THE PERSON MAY APPLY TO THE COURT THAT ENTERED THE JUDGMENT FOR AN ORDER FOR PAYMENT FROM THE TRUST ACCOUNT. If she then fails to schedule a hearing BEFORE THE FIRST ANNIVERSARY of filing the application, RECOVERY IS WAIVED.

A seller's exclusive agent falsely tells a buyer, "My seller won't take a dollar under $400,000." The buyer pays $400,000 and later learns the seller would have taken less. Is the misstatement usually actionable by the buyer?

1. No; it is not usually a misrepresentation of a material fact. ✓
2. Yes; any false statement of price is a fraud on the buyer.
3. Yes, if the buyer can show the house was worth much less.
4. Yes, because the agent owes the buyer a fiduciary duty as well.

Why: DRE Reference Book ch. 10: A MISREPRESENTATION BY THE BROKER WHO IS THE EXCLUSIVE AGENT OF THE SELLER TO A PROSPECTIVE BUYER OF THE LOWEST PRICE ACCEPTABLE TO A SELLER IS NOT USUALLY ACTIONABLE BY THE BUYER, BECAUSE IT IS NOT A REPRESENTATION OF A MATERIAL FACT. THE SELLER HAS A RIGHT TO OBTAIN THE BEST PRICE AVAILABLE.

A slab 60 feet by 24 feet is poured 6 inches thick. Concrete costs $135 per cubic yard. What does the concrete cost?

1. $3,600 ✓
2. $10,800
3. $43,200
4. $97,200

Why: Reference Book chapter 26: volume = length x width x height and 1 cubic yard = 27 cubic feet. 6 inches is 0.5 foot, so 60 x 24 x 0.5 = 720 cubic feet; 720 / 27 = 26.67 cubic yards; x $135 = $3,600. Dividing by 9 (square feet in a square yard) gives $10,800, and treating 6 inches as 6 feet gives $43,200.

A contract carries TREC's addendum for sale of other property by buyer. The buyer's house has not sold by the addendum date, and the buyer has not waived the contingency. What follows?

1. The contract ends automatically, with a refund. ✓
2. The seller keeps the earnest money as damages.
3. Closing moves back 30 days, without any notice.
4. The buyer must close using other borrowed funds.

Why: TREC No. 10-6, paragraph A: IF THE CONTINGENCY IS NOT SATISFIED OR WAIVED BY BUYER BY THE ABOVE DATE, THE CONTRACT WILL TERMINATE AUTOMATICALLY AND THE EARNEST MONEY WILL BE REFUNDED TO BUYER. No notice or election by either party is needed.

A sales agent takes the same approved CE course twice in one license period. What credit does she get for the second time?

1. Full credit as an elective.
2. None. ✓
3. Half credit toward the 18 hours.
4. Full credit, if a year has passed.

Why: 22 TAC 535.92 provides that the commission will not award credit to a license holder who attends or instructs the same course more than once during the term of the current license period. The second attendance counts for nothing toward the 18 hours.

An adult seller signs a purchase contract with a 17-year-old buyer who is not emancipated. Under the general rule, who may later disaffirm the contract on the ground of age?

1. Either party, at any time before closing
2. Only the adult seller, who took the risk
3. Only the minor, not the adult seller ✓
4. Neither party, once both have signed it

Why: Reference Book chapter 6 states the general rule that contracts of minors are voidable at the option of the minor, who may disaffirm during minority or for a reasonable time after reaching majority; the adult party has no such right. States differ at the edges: the chapter notes that in California a real property contract by an unemancipated minor is void, not voidable.

A comparable apartment building sold for $2,500,000 and had net operating income of $212,500. What overall capitalization rate does the sale indicate?

1. 7.5%
2. 8.5% ✓
3. 9.5%
4. 11.8%

Why: Reference Book chapter 15: R = I divided by V, and "the preferred method of Overall Rate derivation is from an analysis of comparable sales and their relationship between net income and sales price." $212,500 divided by $2,500,000 is 0.085, or 8.5%. Dividing price by income instead gives 11.8, which is not a rate.

Property worth $300,000 on the market carries an assessment ratio of 80%, and the levy is $32 for each $1,000 of assessed valuation. What is the yearly tax bill?

1. $768
2. $7,680 ✓
3. $9,600
4. $76,800

Why: DRE Reference Book ch. 26: TAX = ASSESSED VALUE X RATE. Assessed value $300,000 x 0.80 = $240,000; 240 thousands x $32 = $7,680. $9,600 applies the rate to market value, and $768 and $76,800 misplace the decimal.

A home sells for $385,000 at a 6% commission, split equally between the listing and selling firms. The listing agent is paid 60% of her firm's share. What does the listing agent receive?

1. $4,620
2. $6,930 ✓
3. $11,550
4. $13,860

Why: DRE Reference Book ch. 26: COMMISSION = SALE PRICE X RATE. $385,000 x 0.06 = $23,100; the listing firm's half is $11,550; the agent's 60% of that is $11,550 x 0.60 = $6,930. $13,860 takes 60% of the whole commission, and $4,620 is the firm's 40%.

When may an escrow holder disburse funds that were deposited into escrow by check?

1. As soon as the deed for the buyer has been recorded.
2. Once the buyer's bank confirms there is enough money.
3. Once the check has cleared and the funds are available. ✓
4. At once, if the check is drawn on a local bank account.

Why: DRE Reference Book ch. 8 (Escrow Principle 16): THE ESCROW HOLDER MUST NOT DISBURSE ANY FUNDS FROM AN ESCROW ACCOUNT UNTIL ALL ITEMS SUCH AS CHECKS, DRAFTS, ETC. HAVE CLEARED, AND THUS HAVE BECOME AVAILABLE FOR WITHDRAWAL AS AN AUTOMATIC RIGHT.

Under the principle of the four-stage life cycle, which four stages characterize all property?

1. Growth, stability, decline and revitalization. ✓
2. Development, growth, stability and decline.
3. Growth, decline, stability and then conformity.
4. Stability, growth, decline and then gentrification.

Why: DRE Reference Book ch. 15: PRINCIPLE OF FOUR-STAGE LIFE CYCLE ... ALL PROPERTY IS CHARACTERIZED BY FOUR DISTINCT STAGES: GROWTH, STABILITY, DECLINE, AND REVITALIZATION. Neighborhoods tend to follow the pattern, and the process is frequently reversed.

A homeowner closes a home equity loan secured by her principal dwelling and receives all the material disclosures and rescission notices at closing. Until when may she rescind?

1. Midnight of the third calendar day after closing
2. Midnight of the third business day after closing ✓
3. Midnight of the seventh business day after closing
4. Only until the loan funds are disbursed to her

Why: 12 CFR 1026.23(a)(3) allows rescission until midnight of the third business day after consummation, delivery of the notice or delivery of the material disclosures, whichever is last. For rescission, 1026.2(a)(6) counts all calendar days except Sundays and federal legal holidays, and 1026.23(c) holds disbursement until the period ends.

A town passes a zoning rule that applies to one tract only, drafted to shut out a rival of a local developer. Why is it open to challenge?

1. Zoning may only be adopted by the state, never a town
2. Zoning applies only to land that is not yet built on
3. Zoning must be uniform and serve the public welfare ✓
4. Zoning must be approved by every owner in the zone

Why: Reference Book chapter 5 says zoning restrictions, to be valid, should be substantially related to the protection of public health, safety, morals or general welfare, and must be uniform and not created for the benefit of any particular group. Cities and counties do have the power to zone.

A seller of unimproved land for residential use knows a gas pipeline crosses it. What must be disclosed?

1. Nothing, as pipelines are public record.
2. Only the pipeline company's name.
3. Only if the buyer asks in writing.
4. The pipeline's location, as far as known. ✓

Why: Property Code 5.013(a) and (b) require A SELLER OF UNIMPROVED REAL PROPERTY TO BE USED FOR RESIDENTIAL PURPOSES to give a written notice DISCLOSING THE LOCATION OF A TRANSPORTATION PIPELINE, including natural gas, TO THE BEST OF THE SELLER'S BELIEF AND KNOWLEDGE, delivered on or before the contract's effective date.

A salesperson is asked to value a complex industrial plant and lacks the expertise to do it competently. What should the salesperson do?

1. Seek the advice of a professional appraiser. ✓
2. Give an opinion labeled as informal.
3. Average the list prices of nearby plants.
4. Rely on the owner's book value for it.

Why: Reference Book chapter 15 cautions licensees "not to claim greater appraisal ability or expertise than is actually possessed" and says: "When unable to competently perform a valuation, the advice of a professional real estate appraiser should be sought." It also warns agents not to rely on book values.

Which of these may lease real estate without a Texas license?

1. An owner's employee leasing the owner's land. ✓
2. A person leasing other owners' homes for a fee.
3. A sales agent without a sponsoring broker.
4. A company that places tenants for many landlords.

Why: Occupations Code 1101.005(7) and (8) exempt AN ON-SITE MANAGER OF AN APARTMENT COMPLEX and AN OWNER OR THE OWNER'S EMPLOYEE WHO LEASES THE OWNER'S IMPROVED OR UNIMPROVED REAL ESTATE. Leasing for other owners for a fee is brokerage.

An original contractor finishes remodeling an owner's home in March and is not paid. By when must it file its lien affidavit?

1. May 15
2. June 15 ✓
3. July 15
4. August 15

Why: Property Code 53.052(a)(2) requires an original contractor on a residential construction project to file not later than the 15th day of the third month after the month the work was completed, so June 15 for March. July 15 would be the fourth-month deadline that 53.052(a)(1) sets for other projects.

A building has a reproduction cost of $300,000 and is 30% depreciated on the age-life method. Its roof, costing $15,000 new, is 60% worn, and its heating system, costing $10,000 new, is 50% depreciated. Depreciating the roof and heating separately and applying the age-life rate to the rest of the building, what is total physical deterioration?

1. $82,500
2. $90,000
3. $96,500 ✓
4. $104,000

Why: Reference Book chapter 15's store example depreciates the short-lived items separately, then applies the building's age-life percentage to the reproduction cost less those items. Roof: 60% of $15,000 is $9,000; heating: 50% of $10,000 is $5,000; 30% of the remaining $275,000 is $82,500; total $96,500. Taking 30% of the full $300,000 as well double-counts the roof and heating.

An investor bought a house at a foreclosure sale and, 60 days after her closing, signs a contract to resell it to a buyer using an FHA-insured loan. Is the property eligible?

1. Yes, if a second appraisal supports the higher price.
2. Yes, since the seller is the owner of record already.
3. No; a resale within 90 days of acquisition is ineligible. ✓
4. No; an FHA resale must wait at least a full 12 months.

Why: 24 CFR 203.37a(b)(2): IF THE RE-SALE DATE IS 90 DAYS OR LESS FOLLOWING THE DATE OF ACQUISITION BY THE SELLER, THE PROPERTY IS NOT ELIGIBLE FOR A MORTGAGE TO BE INSURED BY FHA. Between 91 and 180 days a second appraisal may be required for a large price increase.

How does Ginnie Mae support the secondary mortgage market?

1. It buys conventional loans from lenders and holds them in its portfolio.
2. It guarantees mortgage-backed securities; it does not buy the mortgages. ✓
3. It insures home loans against default by collecting a monthly premium.
4. It lends to member banks at the discount rate to fund new home loans.

Why: DRE Reference Book ch. 12: GINNIE MAE DOES NOT PURCHASE MORTGAGES. RATHER, IT ADDS ITS GUARANTEE TO MORTGAGE-BACKED SECURITIES (MBS) ISSUED BY APPROVED LENDERS, backed by the FULL FAITH AND CREDIT OF THE U. S. GOVERNMENT.

A license holder managing a rental house orders repairs for the owner. The contractor adds 10% to the bill and quietly passes that 10% back to the license holder. What is the position?

1. It is allowed, since the contractor chose to make the payment.
2. It is allowed if the repair price was fair for the local market.
3. It is an undisclosed rebate on an expenditure for a principal. ✓
4. It is allowed if it is less than the monthly management fee paid.

Why: Occupations Code 1101.652(b)(13): the commission may discipline a license holder who ACCEPTS, RECEIVES, OR CHARGES AN UNDISCLOSED COMMISSION, REBATE, OR DIRECT PROFIT ON AN EXPENDITURE MADE FOR A PRINCIPAL. The owner paid the inflated bill and was never told of the kickback.

How much qualifying real estate education must a sales agent applicant complete?

1. At least 6 semester hours, or equivalent classroom hours
2. At least 12 semester hours, or the equivalent ✓
3. At least 18 semester hours, or equivalent classroom hours
4. At least 60 semester hours, or equivalent classroom hours

Why: Occupations Code 1101.358(a) requires a sales agent applicant to show completion of AT LEAST 12 SEMESTER HOURS, OR EQUIVALENT CLASSROOM HOURS, OF QUALIFYING REAL ESTATE COURSES. The first renewal adds more under 1101.454; 60 semester hours is the broker ceiling.

For which homes does the resale contract say a seller's lead-based paint disclosure is required by federal law?

1. Dwellings built before 1978. ✓
2. Dwellings built before 1990.
3. All homes, whatever their age.
4. Only homes with children in them.

Why: Paragraph 7C of TREC No. 20-19 states that SELLER'S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS IS REQUIRED BY FEDERAL LAW FOR A RESIDENTIAL DWELLING CONSTRUCTED PRIOR TO 1978; TREC No. 56-0 is the addendum for it.

A sponsored sales agent is about to handle her first residential lease. For how many of her first times doing that type of activity must her broker require coaching from an experienced license holder?

1. 1 time
2. 3 times ✓
3. 5 times
4. 10 times

Why: 22 TAC 535.2(i): AT A MINIMUM, WHEN A SALES AGENT PERFORMS A TYPE OF REAL ESTATE BROKERAGE ACTIVITY FOR THE FIRST THREE TIMES, THE BROKER MUST REQUIRE THAT THE SALES AGENT RECEIVE COACHING AND ASSISTANCE FROM AN EXPERIENCED LICENSE HOLDER COMPETENT FOR THAT ACTIVITY.