Real Estate Practice Questions: Fair Housing, Listings and Risk
Real Estate Practice accounts for 10 scored questions on the National portion of the Texas sales agent exam. This free set covers broker responsibilities, brokerage agreements, fair housing and risk management. Try 20 original questions, then check the explanation and source for each answer. Six separate Texas-law examples follow and do not affect your National quiz score.
20 questions on real estate practice, scored, each with a full explanation after you answer. Every question is also written out below if you would rather study at your own pace.
20 questions
~15 min
National practice only
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Study mode · National principles
Work through the questions at your own pace.
Choose an answer mentally, then open its explanation. Each question has a source and a point to watch. These are original practice questions, not Pearson VUE exam items or a prediction of your result.
1
A sale found by the owner
A listing provides for the agreed commission if the home sells during its term, even when the owner finds the buyer. There are no relevant exclusions in the agreement. Which listing type does this describe?
A.Open listing
B.Exclusive agency listing
C.Exclusive right-to-sell listing
D.Net listing
Check answer and explanation
Correct answer: C. Exclusive right-to-sell listing
An exclusive right-to-sell listing does not leave the owner a general commission-free route merely by finding the buyer. The agreement still controls when compensation is earned and any exceptions. The listing type alone does not guarantee payment in every possible circumstance.
Why the other choices miss:
A. Open listing: An open listing allows more than one broker to seek a buyer. This agreement gives one broker protection even when the owner finds the buyer.
B. Exclusive agency listing: Exclusive agency ordinarily preserves the owner's stated right to find a buyer without paying a commission. The question expressly removes that route.
D. Net listing: A net listing bases compensation on proceeds above the seller's required net amount. The question describes when a commission is earned, not that calculation.
Watch for this: An owner's retained right to sell without a commission points instead to exclusive agency, subject to the agreement.
Rule: Brokerage agreements; exclusive right to sell
An agreement gives the seller a stated net amount and makes the broker's compensation the excess sale proceeds. What is the main conflict this structure creates?
A.The seller loses the right to review any offer
B.The broker must accept the first offer received
C.The buyer automatically becomes the broker's client
D.The broker's gain can compete with the seller's best result
Check answer and explanation
Correct answer: D. The broker's gain can compete with the seller's best result
A net listing can reward the broker for retaining proceeds that otherwise could benefit the seller. Recognize the conflict without assuming that every jurisdiction permits or prohibits the arrangement. The Texas supplement explains that state's specific restrictions.
Why the other choices miss:
A. The seller loses the right to review any offer: A compensation arrangement does not take away the seller's ability to review offers. The conflict concerns who benefits from excess proceeds.
B. The broker must accept the first offer received: Nothing in a net listing requires acceptance of the first offer. The broker still owes duties to the seller represented.
C. The buyer automatically becomes the broker's client: The buyer's agency relationship is not created by the seller's compensation arrangement. Separate facts would be needed to establish it.
Watch for this: A compensation incentive does not replace the duty to put the client's interests first.
Rule: Brokerage agreements; net listings and conflicts of interest
Which list names the seven protected classes stated in the federal Fair Housing Act?
A.Race, color, religion, national origin, sex, familial status and disability
B.Race, color, religion, national origin, age, marital status and disability
C.Race, color, religion, occupation, sex, familial status and credit score
D.Race, color, education, national origin, income, familial status and disability
Check answer and explanation
Correct answer: A. Race, color, religion, national origin, sex, familial status and disability
The correct list matches HUD's summary of the Act. Age, income and marital status are not separately named classes under this federal statute. That does not make every decision using those factors lawful: other laws, local protections and discriminatory effects can matter.
Why the other choices miss:
B. Race, color, religion, national origin, age, marital status and disability: Age and marital status replace sex and familial status here. They are not separately named classes in the federal Act, although other protections may apply.
C. Race, color, religion, occupation, sex, familial status and credit score: Occupation and credit score replace color and national origin. A lender cannot use a supposedly neutral criterion as a cover for prohibited discrimination.
D. Race, color, education, national origin, income, familial status and disability: Education and income replace religion and sex. Do not substitute those terms for the Act's named classes.
Watch for this: Answer the question about this Act without treating its list as the whole of discrimination law.
To earn a commission, an agent urges an owner to sell by claiming that families of a particular race are moving nearby and will lower property values. Which violation is described?
A.Steering
B.Blockbusting
C.Redlining
D.Market allocation
Check answer and explanation
Correct answer: B. Blockbusting
The agent is trying, for profit, to induce a sale through a representation about the arrival of a protected group. That is blockbusting. The focus is the pressure on the owner to sell, not a lender's loan decision or a buyer's search criteria.
Why the other choices miss:
A. Steering: Steering concerns restricting housing choices by a protected trait. Here the agent pressures an owner to sell through racial fear.
C. Redlining: Redlining concerns discriminatory access to credit or related services. No lending decision is described in this scenario.
D. Market allocation: Market allocation involves competitors agreeing to divide customers or territory. The agent's attempt to obtain a listing is a different act.
Watch for this: The profit motive and the attempt to induce a sale are important parts of this example.
A mortgage lender refuses otherwise qualifying applications solely because the homes are in a majority-minority neighborhood. Which practice is illustrated?
A.Blockbusting
B.A lawful credit-risk comparison
C.Steering in home selection
D.Discriminatory redlining
Check answer and explanation
Correct answer: D. Discriminatory redlining
The lender is restricting credit based on the neighborhood's racial composition, not a legitimate assessment of the applications. HUD identifies this kind of mortgage denial as lending discrimination. Geography by itself does not make every lending decision unlawful; the discriminatory basis matters.
Why the other choices miss:
A. Blockbusting: Blockbusting involves inducing a sale or rental for profit through claims about a protected group's arrival. This lender is denying credit.
B. A lawful credit-risk comparison: The lender is rejecting otherwise qualifying applicants solely because of racial composition. That is not the supported credit assessment this choice suggests.
C. Steering in home selection: Steering in home selection concerns channeling buyers toward or away from housing. This question describes a mortgage lender's credit decision.
Watch for this: Do not confuse a racial lending boundary with a supported, consistently applied credit assessment.
Two competing brokerages agree not to accept listings below the same minimum commission rate. There is no joint venture or other integration of their services. What is the problem?
A.They have agreed to fix a price floor
B.They have independently quoted their own fees
C.They have created an exclusive agency listing
D.They have negotiated one client's service agreement
Check answer and explanation
Correct answer: A. They have agreed to fix a price floor
A bare agreement between competitors to set a commission floor is price fixing. Each firm must make its pricing decisions independently. Similar rates alone do not establish collusion, and negotiability does not require a broker to accept every proposed discount.
Why the other choices miss:
B. They have independently quoted their own fees: Independent pricing requires each firm to choose its own fees. Their agreement on a minimum rate defeats that description.
C. They have created an exclusive agency listing: An exclusive agency listing is an agreement with a seller. It does not describe a pricing agreement between competing brokerages.
D. They have negotiated one client's service agreement: One firm's negotiation with its own client is different from two competitors agreeing on a fee floor for their listings.
Watch for this: The decisive fact is the competitors' agreement, not whether the rate happens to be high, low or common.
A residential agent is offered a specialized industrial listing but lacks the necessary market and property knowledge. Which response best addresses the competence problem?
A.Accept and rely only on the seller's technical claims
B.Accept but omit unfamiliar issues from the marketing
C.Explain the limits and arrange qualified help or a referral
D.Use a disclaimer instead of obtaining the missing expertise
Check answer and explanation
Correct answer: C. Explain the limits and arrange qualified help or a referral
An active license is not expertise in every property type. Bring the limits to the broker's and client's attention and obtain the competence needed before undertaking work you cannot perform properly, or refer it. Texas Rule 531.4 is a state illustration of this broader competence principle.
Why the other choices miss:
A. Accept and rely only on the seller's technical claims: The seller's claims do not supply the agent's missing expertise. The agent must obtain qualified help or refer work beyond the agent's competence.
B. Accept but omit unfamiliar issues from the marketing: Leaving unfamiliar matters out of marketing does not resolve the competence problem. Those matters may be important to the client's decision.
D. Use a disclaimer instead of obtaining the missing expertise: A disclaimer cannot substitute for the judgment and skill required to perform the assignment properly.
Watch for this: Disclosure alone does not supply missing skill or make unsupported advice safe.
An agent knows a roof leaks but tells a buyer it has no leaks. How should that statement be classified?
A.An opinion about the home's visual appeal
B.Misrepresentation of a material fact
C.A prediction about future maintenance costs
D.An estimate of the property's asking price
Check answer and explanation
Correct answer: B. Misrepresentation of a material fact
The agent is making a specific factual claim that the agent knows is false. It is not mere praise or puffing. A fraud claim requires its other legal elements, so this short scenario should not be read as a complete court finding or an automatic damages award.
Why the other choices miss:
A. An opinion about the home's visual appeal: Whether a roof leaks is a verifiable condition, not a subjective opinion about how attractive the house looks.
C. A prediction about future maintenance costs: The agent asserts a present condition known to be false. The statement is not merely a prediction about later maintenance.
D. An estimate of the property's asking price: An asking-price estimate concerns price. It does not change the character of a knowingly false statement about a roof leak.
Watch for this: Calling a home 'beautiful' and denying a known leak are different kinds of statements.
Two buyers request the same budget and property features. An agent shows them different neighborhoods solely because they are of different races. What is the agent doing?
A.Discriminatory steering
B.Applying the buyers' property criteria
C.Performing a market allocation agreement
D.Preparing a neutral market comparison
Check answer and explanation
Correct answer: A. Discriminatory steering
The agent, not the buyers' stated housing needs, is restricting choice by race. That is steering. Helping buyers search by their own lawful property preferences is different from deciding where they should live because of a protected characteristic.
Why the other choices miss:
B. Applying the buyers' property criteria: The buyers supplied the same relevant search criteria. The different treatment comes from the agent's use of race, not those criteria.
C. Performing a market allocation agreement: Market allocation requires an agreement between competitors to divide markets or customers. No such agreement appears here.
D. Preparing a neutral market comparison: A neutral comparison evaluates property or market information. Assigning neighborhoods by a buyer's race is not that work.
Watch for this: Good intentions do not make protected-class channeling lawful.
A rental development does not qualify as housing for older persons. Its advertisement says 'adults only, no children.' Which conclusion is correct under the Fair Housing Act?
A.The owner's approval makes the preference lawful
B.A private lease can waive the advertising rule
C.The ad expresses a prohibited familial-status preference
D.The ad is lawful if an agent did not write it
Check answer and explanation
Correct answer: C. The ad expresses a prohibited familial-status preference
The advertisement excludes households with children in housing where familial-status protection applies. Section 3603(b)'s common owner exemptions do not remove the advertising restriction. Qualifying housing for older persons has a separate familial-status exception under Section 3607(b), which the question expressly rules out.
Why the other choices miss:
A. The owner's approval makes the preference lawful: An owner's approval cannot authorize an advertisement that violates an applicable federal advertising restriction.
B. A private lease can waive the advertising rule: A lease cannot waive the applicable prohibition on an advertisement expressing a familial-status preference.
D. The ad is lawful if an agent did not write it: The advertising restriction is not limited to ads written by real estate agents. Changing the author does not remove the prohibited preference.
Watch for this: Do not teach 'never exempt' as a substitute for checking which protection and which exception apply.
An owner actually occupies one unit of a four-unit dwelling and otherwise qualifies for Section 3603(b)(2). Which statement correctly describes the scope of that exemption?
A.Every housing decision the owner approves is lawful
B.An owner-occupied building of any size qualifies
C.Every federal civil-rights law is waived for the property
D.Section 3604(c)'s advertising rule still applies
Check answer and explanation
Correct answer: D. Section 3604(c)'s advertising rule still applies
The exemption concerns certain Fair Housing Act sale-or-rental provisions, not Section 3604(c). It also does not erase separate laws such as Section 1982's protection against racial discrimination in property rights. The single-family owner exemption has different conditions, including restrictions on using brokerage services.
Why the other choices miss:
A. Every housing decision the owner approves is lawful: The exemption has a defined scope. It does not make every owner-approved decision lawful under all applicable laws.
B. An owner-occupied building of any size qualifies: The described exemption concerns an owner-occupied dwelling for no more than four families living independently. Size is part of the condition.
C. Every federal civil-rights law is waived for the property: An exemption under one Fair Housing Act provision does not waive separate civil-rights protections, including racial equality in property rights.
Watch for this: Keep the owner-occupied four-unit exemption separate from the single-family no-broker exemption.
Independent competing brokerages agree that one will take only east-side clients and the other only west-side clients, solely to avoid competing. What is this arrangement?
A.An independent choice of a farm area
B.An unlawful market-allocation agreement
C.An exclusive right-to-sell listing
D.A buyer's location preference
Check answer and explanation
Correct answer: B. An unlawful market-allocation agreement
The competitors are agreeing not to compete for territory or customers. That is a bare horizontal market allocation. A firm independently choosing a service area is different; not every geographic limit or legitimate integrated arrangement is the agreement described here.
Why the other choices miss:
A. An independent choice of a farm area: A firm can independently select a farm area. Here the two competitors agree to divide clients to avoid competing.
C. An exclusive right-to-sell listing: A listing describes a broker's relationship with a seller. It does not authorize competing firms to divide territory.
D. A buyer's location preference: A buyer choosing a location is different from competing brokerages agreeing which customers each firm will serve.
Watch for this: Look for coordination between competing businesses, not just two firms working in different places.
For a live sales call covered by the FTC Telemarketing Sales Rule, a brokerage has an established business relationship with a consumer. The consumer then tells that brokerage not to call again and gives no later permission. May the relationship alone justify another sales call?
A.Yes, until 18 months after the last transaction
B.Yes, if the agent calls during permitted hours
C.No, the seller-specific request must be honored
D.Yes, if a different agent at the firm calls
Check answer and explanation
Correct answer: C. No, the seller-specific request must be honored
The established-business-relationship exception does not override a request to stop calls from that seller. Calling at an allowed time or changing the caller does not fix that problem. This question concerns a covered live sales call, not every service message or communication channel.
Why the other choices miss:
A. Yes, until 18 months after the last transaction: The business-relationship exception does not override this consumer's request to stop calls from the brokerage.
B. Yes, if the agent calls during permitted hours: Permitted calling hours address timing. They do not authorize a call that the consumer has told this seller to stop.
D. Yes, if a different agent at the firm calls: The request applies to calls from the brokerage. Changing the individual agent does not create permission for the same seller.
Watch for this: An exception to the National Registry restriction is not permission to ignore the brokerage's own Do Not Call list.
Rule: 16 CFR 310.4(b)(1)(iii); seller-specific Do Not Call
A visitor slips on a wet brokerage-lobby floor and brings a bodily-injury claim. Which insurance category is the closer starting point for reviewing possible coverage?
A.General liability insurance
B.Professional liability insurance
C.Title insurance
D.Private mortgage insurance
Check answer and explanation
Correct answer: A. General liability insurance
General liability commonly addresses premises-related bodily injury. Professional liability, often called errors and omissions coverage, addresses specified errors in services. Neither label guarantees a payout: policy terms, exclusions and the facts still control.
Why the other choices miss:
B. Professional liability insurance: Professional liability concerns covered errors in professional services. This claim arises from a physical hazard in the lobby.
C. Title insurance: Title insurance addresses covered title risks. It is not the starting category for a visitor's slip-and-fall injury.
D. Private mortgage insurance: Private mortgage insurance protects a lender against covered borrower default risk. It is unrelated to this office visitor's injury.
Watch for this: The injury happened at a brokerage, but it did not arise from professional advice or a missed transaction task.
Rule: Insurance; general liability versus professional liability
One broker has the exclusive listing, but the agreement lets the owner find a buyer without owing a commission. No broker helps produce that buyer, and no other payment provision applies. Which listing fits?
A.Open listing
B.Exclusive right-to-sell listing
C.Net listing
D.Exclusive agency listing
Check answer and explanation
Correct answer: D. Exclusive agency listing
Exclusive agency protects the selected broker against competing brokers while retaining the owner's stated self-sale right. An open listing is nonexclusive. An exclusive right-to-sell listing ordinarily does not retain that general self-sale exception.
Why the other choices miss:
A. Open listing: An open listing is nonexclusive. The question gives one broker an exclusive listing while preserving the owner's self-sale exception.
B. Exclusive right-to-sell listing: Exclusive right to sell ordinarily protects the broker's commission even if the owner finds the buyer, subject to the agreement. These facts retain a self-sale right.
C. Net listing: A net listing calculates compensation from proceeds above a stated amount. That calculation is absent from this question.
Watch for this: The word 'exclusive' alone does not answer the question. Ask which right the owner retained.
A management agreement requires the broker to report rent collected, authorized expenses and the owner's balance each month. Which action fulfills that obligation?
A.Send the owner only the broker's commission invoice
B.Provide the agreed accounting supported by the records
C.Treat gross rent as the manager's own business revenue
D.Wait until the property is sold to explain the balance
Check answer and explanation
Correct answer: B. Provide the agreed accounting supported by the records
The agreed accounting lets the owner see what was received, spent and retained on the owner's behalf. The monthly timing comes from this hypothetical agreement, not a universal statutory deadline. Recordkeeping and trust-account rules remain separate obligations.
Why the other choices miss:
A. Send the owner only the broker's commission invoice: The manager's fee invoice does not show all rent received, expenses paid and the owner's remaining balance.
C. Treat gross rent as the manager's own business revenue: Money collected for the owner does not become the manager's own revenue merely because the manager received it.
D. Wait until the property is sold to explain the balance: Waiting for a sale ignores the agreement's monthly reporting requirement. The owner needs the accounting during management.
Watch for this: A management fee is not the same thing as all the money collected for the owner.
A listing is not authority to sign the sale contract
A seller authorizes a broker to market the property and find a buyer. The seller gives no authority to sign a sale contract on the seller's behalf. What does the listing alone authorize?
A.Finding a buyer within the agreed scope of brokerage
B.Executing the buyer's contract in the seller's name
C.Conveying the seller's title without further instructions
D.Changing the seller's legal obligations without approval
Check answer and explanation
Correct answer: A. Finding a buyer within the agreed scope of brokerage
A listing is an employment or brokerage agreement. A right to find a buyer is not, by itself, authority to bind the owner to a sale contract or sign a deed. Additional valid authority would have to be established, not inferred from the listing's name.
Why the other choices miss:
B. Executing the buyer's contract in the seller's name: Authority to locate a buyer does not itself authorize signing a sale contract in the owner's name. The question gives no additional signing authority.
C. Conveying the seller's title without further instructions: A marketing agreement does not itself authorize executing a conveyance of the owner's title. That requires valid additional authority.
D. Changing the seller's legal obligations without approval: The broker must act within the authorized scope. A listing does not give unilateral power to change the seller's legal obligations.
Watch for this: 'Right to sell' in a listing label does not mean power to sign for the owner.
Rule: Agency authority; a listing is not power to sign a sale contract
A privately operated brokerage office serves the public. The owner says its small size and old building mean it has no ADA Title III duties. Which response is correct?
A.Title III covers only offices operated by government
B.Every preexisting building is exempt from Title III
C.Only offices receiving federal funds have duties
D.Size and age alone do not exempt the office
Check answer and explanation
Correct answer: D. Size and age alone do not exempt the office
Title III addresses access to businesses serving the public. Existing-building barrier removal uses a readily achievable standard, which considers difficulty, expense and resources. New construction, alterations and other access duties have their own requirements. This is not a claim that every building needs the same work.
Why the other choices miss:
A. Title III covers only offices operated by government: Title III applies to covered private businesses open to the public. Government activities are addressed under a different part of the ADA.
B. Every preexisting building is exempt from Title III: An older building is not automatically exempt. Existing-building duties include barrier removal where readily achievable.
C. Only offices receiving federal funds have duties: Receiving federal funds is not the trigger for Title III coverage of a public-facing private business.
Watch for this: Do not confuse public-facing business duties with a promise of automatic exemption for an older office.
A buyer asks a non-attorney agent whether a disputed deed restriction is legally enforceable. The issue is outside the agent's authorized brokerage role. What should the agent do?
A.Promise enforceability if the restriction is recorded
B.Refer the legal question to an attorney
C.Offer a legal conclusion labeled as a personal view
D.Assume the restriction expired because it is old
Check answer and explanation
Correct answer: B. Refer the legal question to an attorney
Recognizing the boundary of brokerage work is part of competence. Share relevant factual information without supplying an unauthorized legal opinion. The client's attorney can analyze the restriction and advise the client. Texas Rule 537.11 provides a specific state illustration of that boundary.
Why the other choices miss:
A. Promise enforceability if the restriction is recorded: Recording a restriction does not resolve every question of enforceability. The agent should not promise a legal outcome.
C. Offer a legal conclusion labeled as a personal view: Labeling a legal conclusion as a personal opinion does not make it factual information within the authorized brokerage role.
D. Assume the restriction expired because it is old: Age alone does not establish that a restriction has expired. Its language and applicable law require legal analysis.
Watch for this: Adding 'in my opinion' does not turn a legal conclusion into factual form completion.
Rule: Broker responsibilities; unauthorized practice of law; Texas illustration: 22 TAC 537.11
A client claims an agent negligently missed a required transaction deadline and caused a financial loss. Which insurance category is the closer match to review?
A.General liability for a premises injury
B.Private mortgage insurance for lender credit risk
C.Professional liability or errors and omissions coverage
D.Property insurance for damage to the office building
Check answer and explanation
Correct answer: C. Professional liability or errors and omissions coverage
The alleged loss arises from professional services rather than a visitor's injury or damage to the office. E&O is the relevant category to examine. Whether the particular claim is covered depends on the policy, including exclusions and reporting requirements.
Why the other choices miss:
A. General liability for a premises injury: General liability for a premises injury addresses a different risk. The alleged loss here comes from a professional transaction task.
B. Private mortgage insurance for lender credit risk: Private mortgage insurance addresses a lender's covered default loss. It does not insure an agent's alleged deadline error.
D. Property insurance for damage to the office building: Damage to the office building is a property-insurance concern. The client instead alleges financial harm from professional negligence.
Watch for this: Insurance may respond to a claim; it does not excuse the missed duty or guarantee payment.
Rule: Insurance; professional liability and errors and omissions
Identify the actor and the action before choosing a label. Follow a link to the question, then open its answer for the explanation, wrong-choice reasons and source.
A premises injury and a professional-service error point toward different insurance categories. Coverage still depends on the policy.
Optional supplement · Texas-specific applications
6 Texas rules to keep separate.
These examples require Texas form or statutory knowledge. They are not included in the National quiz or its score. If you only need National practice, you can skip to the study resources.
1
A Texas non-representation showing agreement
In 2026, a Texas agent who does not represent the seller arranges a residential showing for a prospective buyer without representing that buyer. For this showing-only non-representation arrangement, which terms must the written agreement have?
A.An exclusive term of at least 30 days
B.No end date if the buyer receives IABS
C.A nonexclusive term ending within 14 days of signing
D.An oral term lasting only for the showing
Check answer and explanation
Correct answer: C. A nonexclusive term ending within 14 days of signing
Sections 1101.562 and 1101.563 govern this limited arrangement. The agreement must precede the showing, be nonexclusive and end no more than 14 days after it is entered into. Other required contents still apply. This is not the different case of a listing-brokerage agent hosting its own listing's open house.
Why the other choices miss:
A. An exclusive term of at least 30 days: A minimum exclusive term contradicts this showing-only non-representation arrangement. The required term is nonexclusive and no longer than fourteen days.
B. No end date if the buyer receives IABS: IABS is a disclosure, not a replacement for this agreement. The agreement still needs a termination date and its other required contents.
D. An oral term lasting only for the showing: The required agreement must be written and entered into before the showing. Limiting an oral understanding to one visit does not satisfy that requirement.
Watch for this: The 14-day limit belongs to the non-representation arrangement, not every buyer-representation agreement limited to showing.
Rule: Texas Occupations Code 1101.562, 1101.563; effective January 1, 2026
A Texas property-management sales agent receives rent and a security deposit held for another person. Which action does Rule 535.146(b)(2) require of the agent?
A.Deposit the funds in the agent's own trust account
B.Keep the funds until the owner requests them
C.Place the money in an operating account temporarily
D.Immediately deliver the funds to the sponsoring broker
Check answer and explanation
Correct answer: D. Immediately deliver the funds to the sponsoring broker
A sales agent may not maintain a trust account and must immediately deliver received trust money to the sponsoring broker. The broker's separate deposit-or-delivery rule generally sets an outside deadline of the second working day after receipt, unless the principals expressly agree otherwise in writing.
Why the other choices miss:
A. Deposit the funds in the agent's own trust account: A Texas sales agent may not maintain a trust account. The immediate delivery duty runs to the sponsoring broker.
B. Keep the funds until the owner requests them: The rule does not let the agent hold trust money until the owner asks. Receipt triggers immediate delivery to the sponsoring broker.
C. Place the money in an operating account temporarily: Temporary use of an operating account is not the required delivery to the sponsoring broker. These funds are held for another person.
Watch for this: Do not give the sales agent the broker's deposit deadline. Their duties are different.
A buyer asks a Texas sales agent who is not an attorney to invent a clause changing the buyer's termination rights. What should the agent do?
A.Have the buyer consult an attorney about the custom clause
B.Draft it because the buyer supplied the general idea
C.Add it if it fits inside the Special Provisions box
D.Copy similar wording from an unrelated transaction
Check answer and explanation
Correct answer: A. Have the buyer consult an attorney about the custom clause
Rule 537.11(b)(5) bars drafting or recommending language that defines or changes the parties' rights, obligations or remedies. The client should obtain their own legal advice. A client's request, a short clause or an available blank does not remove the restriction.
Why the other choices miss:
B. Draft it because the buyer supplied the general idea: The buyer supplying an idea does not authorize the agent to draft language changing termination rights.
C. Add it if it fits inside the Special Provisions box: The size of the blank does not define the agent's legal authority. Custom rights-changing language remains outside permitted factual completion.
D. Copy similar wording from an unrelated transaction: Wording from another transaction may not fit this one. Copying it does not remove the prohibition on drafting or recommending the custom clause.
Watch for this: Recognizing that legal language is needed does not authorize the agent to create it.
In an otherwise permitted use of the applicable TREC form, which task may a Texas sales agent perform without giving legal advice?
A.Give an opinion that the seller has valid title
B.Complete factual blanks and explain informational choices
C.Write a new remedy for breach of contract
D.Interpret whether a disputed restriction is enforceable
Check answer and explanation
Correct answer: B. Complete factual blanks and explain informational choices
Rule 537.11 allows informational completion and explanation of informational choices without practicing law. It does not permit advice on legal effect or title validity. Its other limits still apply, including use of a mandatory form approved for the purpose rather than replacing it with added wording.
Why the other choices miss:
A. Give an opinion that the seller has valid title: An opinion about title validity is a legal opinion. It is different from inserting factual information into a permitted form.
C. Write a new remedy for breach of contract: Creating a breach remedy changes the parties' legal rights. It goes beyond informational completion of a form.
D. Interpret whether a disputed restriction is enforceable: Interpreting the enforceability of a disputed restriction supplies legal advice. That question belongs with the client's attorney.
Watch for this: Filling a blank with a fact is different from designing the legal consequence of that fact.
An associated Texas sales agent, acting for the broker in a brokerage transaction, makes a material misrepresentation. The broker says, 'I did not know, so Section 1101.803 cannot apply to me.' Is that reading correct?
A.Yes, actual knowledge is expressly required by that section
B.Yes, only the individual agent can ever be responsible
C.No, the section does not state that knowledge requirement
D.No, the section guarantees the same damages in every case
Check answer and explanation
Correct answer: C. No, the section does not state that knowledge requirement
Section 1101.803 makes the broker liable to TREC, the public and clients for conduct under the chapter by the broker or an associated or acting sales agent. It does not supply the claimed knowledge exception. That does not decide every element, defense or damages question in a particular civil case.
Why the other choices miss:
A. Yes, actual knowledge is expressly required by that section: Section 1101.803 does not include the claimed actual-knowledge condition. The broker cannot establish immunity from that section merely by asserting ignorance.
B. Yes, only the individual agent can ever be responsible: The statute expressly addresses broker responsibility for an associated or acting sales agent. It is not confined to the individual agent's responsibility.
D. No, the section guarantees the same damages in every case: The statutory responsibility does not establish identical damages in every civil case. The facts and other applicable legal requirements still matter.
Watch for this: Do not turn the statutory responsibility into either automatic immunity or a guaranteed court outcome.
The two protections a Texas net listing still needs
A Texas seller requires a net listing and appears familiar with current market values. What additional protections must the listing agreement provide under Rule 535.16(b)?
A.A buyer's waiver and a seller's inspection report
B.An unlimited commission and an automatic extension
C.A guaranteed sale date and a standard local fee
D.The seller's desired-price floor and a specified commission ceiling
Check answer and explanation
Correct answer: D. The seller's desired-price floor and a specified commission ceiling
The agreement must assure the principal no less than the desired price and limit the broker to a specified maximum commission. Those requirements are in addition to the seller requiring the arrangement and appearing familiar with current market values. The rule restricts net listings rather than imposing a blanket ban.
Why the other choices miss:
A. A buyer's waiver and a seller's inspection report: A buyer's waiver and an inspection report do not provide the seller's required desired-price assurance and maximum commission limit.
B. An unlimited commission and an automatic extension: An unlimited commission conflicts with the required specified maximum. An automatic extension does not supply the missing protections.
C. A guaranteed sale date and a standard local fee: A guaranteed sale date and a supposed standard local fee are not the two protections the net-listing rule requires.
Watch for this: The seller's request alone does not satisfy all of the rule's conditions.
A sales agent and a sponsoring broker have different trust-money duties. A showing-only non-representation agreement is not the same as a representation agreement with limited services. When the facts change, check the rule again instead of carrying over a deadline from a different situation.
The official topic has 10 scored items. The counts below describe our 20-question sample, not a promise of which questions you will see. The Texas bonus examples are excluded.
Real Estate Practice: official allocation and free practice coverage
National subtopic
Exam items
Our questions
Responsibilities of broker
2
2
Brokerage agreements between the broker and principal
3
5
Fair Housing
3
7
Risk management
2
6
A sample is not complete coverage of every possible question. See Pearson VUE's Salesperson outline, section V. Sources beside each answer explain the underlying principle. Texas-specific rules and examples link to their own authority.
Start with who did what. A lender rejecting a neighborhood, an agent restricting a buyer's choices and competing firms dividing territory can all limit choice, but they trigger different rules.
Read the conditions before choosing an answer. A listing type does not erase the agreement's terms. A fair-housing exemption does not waive every civil-rights law. Insurance describes potential protection, not a promise that a particular claim will be paid.
Choose what to study next.
Start with the lesson behind a missed question, then try another problem without notes.
The current Salesperson National outline allocates 10 scored items: two on broker responsibilities, three on brokerage agreements, three on fair housing and two on risk management. Contracts and Agency is a separate area. This 20-question sample covers the four broad groups, not every skill listed beneath them.
Are these real Pearson VUE questions?
No. These are original practice exercises using hypothetical situations. The rules and principles are supported by the linked sources, but the wording is not from Pearson VUE's live exam. The questions have not been calibrated to its difficulty, and a high score here is not a pass prediction.
Why are the six Texas examples separate?
They test Texas-specific requirements such as showing agreements, trust-money handling and TREC's limits on form completion. They remain free to read but do not count toward the National quiz score. General competence questions can cite a Texas rule as an illustration without requiring that rule number or its state-specific details.
Does fair housing always prohibit adults-only advertising?
Not as an unqualified rule. Familial-status restrictions are unlawful in ordinary covered housing, but qualifying housing for older persons has a specific exception. The common owner exemptions in Section 3603(b) do not remove Section 3604(c)'s advertising restriction. An exemption from one provision does not waive every other civil-rights law.
May a broker quote a rate that matches a competitor's?
Yes, if the firm chose it independently. A matching price alone does not prove price fixing. Competing firms may not make a bare agreement to set rates, minimum fees or territories. A client can negotiate; the broker does not have to accept every requested discount.
What is the difference between exclusive agency and exclusive right to sell?
With exclusive agency, the owner ordinarily retains the stated right to find a buyer without owing a commission when no broker produces that buyer. Exclusive right to sell ordinarily provides for the agreed commission even when the owner finds the buyer. Read the actual compensation terms and exclusions rather than deciding from the word exclusive alone.
What is the difference between general liability and E&O insurance?
Start with the alleged harm. A visitor injured by an office-floor hazard points toward general liability. A client's financial loss from a negligent professional task points toward professional liability, often called errors and omissions or E&O. The policy, exclusions and reporting requirements determine coverage of a particular claim.
Can I keep practicing in the app?
Yes. Open the web app or choose the mobile app. Selected activities are free, and full access is paid. This topic-quiz score stays on this page and cannot yet be saved to your account. Note the topics you want to review before leaving. Sign in to save practice completed inside the app instead.
Sources and review notes
Last reviewed: . The topic allocation comes from Pearson VUE's Salesperson outline. HUD, FTC and Department of Justice sources support the federal topics. California DRE material is used for general agency and listing concepts, not California rules applied to Texas. Texas-only requirements have their own references. The scenarios are hypothetical teaching examples, not reported transactions. This page is exam preparation, not advice for a transaction.
Use the source beside an answer to check the specific rule.
