Texas Real Estate Sales Agent Exam Practice

Try three Texas real estate questions

Pick an answer to check it, then read the explanation. Each Texas explanation names the statute or rule section it relies on.

1. Question 1 of 3Agency and brokerage

   According to TREC rules, Noah, a licensed sales agent, is buying his mother's rental house for himself. He plans to sign a purchase contract that says nothing about his license, and he told his mother orally that he is an agent. What does the rule require of Noah?

   1. AA. Nothing, because he is buying for himself rather than for a client
   2. BB. Disclose his license status orally at first contact, with no writing required
   3. CC. Provide his mother with the Information About Brokerage Services notice first
   4. DD. Disclose in writing before signing that he is a licensed sales agent acting on his own behalf
   Show answer to question 1

   Answer: D. Disclose in writing before signing that he is a licensed sales agent acting on his own behalf

   Under 22 TAC §535.144(b), a license holder who engages in a transaction on his own behalf or on behalf of a spouse, parent or child must disclose in writing that he is a licensed broker or sales agent in the contract of sale or rental agreement or in another writing given before entering into the contract. An oral statement at first contact does not satisfy the rule. There is no exception for purchases made for oneself, and the Information About Brokerage Services notice is not the disclosure this rule requires.

2. Question 2 of 3Special topics

   Under the Texas Property Code, a homeowner's property is listed as her residence homestead on the most recent appraisal roll for the appraisal district, and she receives a residence homestead tax exemption on it. She has also recorded a voluntary designation of a different property as her homestead. Which property is treated as her homestead for purposes of the homestead seizure provisions?

   1. AA. The property covered by the recorded voluntary designation, because that designation prevails
   2. BB. Neither property, because only a court can decide which one is the homestead
   3. CC. The property on the most recent appraisal roll, because the tax exemption controls
   4. DD. Both properties, because each one is treated as a homestead
   Show answer to question 2

   Answer: A. The property covered by the recorded voluntary designation, because that designation prevails

   Under Tex. Prop. Code §41.005(e), property that receives a residence homestead tax exemption is considered designated as the person's homestead if it is listed as the residence homestead on the most recent appraisal roll, but when the person has made a designation by recorded instrument and a different property is considered designated under that subsection, the recorded designation prevails. The tax exemption alone does not control, and the statute does not treat both properties as the homestead.

3. Question 3 of 3Contracts

   Marcus, a Texas sales agent, represents a seller. The buyer's offer uses a Commission-approved contract, and Marcus tells the seller that adding an escalation clause would protect her if other offers come in. Under TREC rules, how is Marcus's recommendation treated?

   1. AA. It is prohibited only if Marcus charges a separate fee for the advice.
   2. BB. It is prohibited because he may not recommend language defining or affecting the principals' rights or remedies.
   3. CC. It is permitted if the seller initials the added clause and it is conspicuous.
   4. DD. It is permitted because an escalation clause is only an informational item.
   Show answer to question 3

   Answer: B. It is prohibited because he may not recommend language defining or affecting the principals' rights or remedies.

   Under 22 TAC §537.11(b)(5), a license holder may not draft or recommend language to be included in a contract form defining or affecting the rights, obligations, or remedies of the principals, including escalation clauses. Initialing a conspicuous change does not cure the problem because the written-instruction exception in 22 TAC §537.11(d)(2) applies when a principal specifically instructs the license holder to add or strike language, not when the license holder recommends the language.