Real Estate Practice Practice Questions
Real estate practice is 10 scored items on the national portion of the Texas Sales Agent exam. It covers a broker's responsibilities, listing and buyer-representation agreements, federal Fair Housing law, antitrust, fraud, and risk management. Work the questions below, then read every explanation.
Exam prep only
Real estate practice questions put you inside a brokerage scenario and ask which listing pays, which Fair Housing line was crossed, or which antitrust rule applies. The wrong answers are usually real rules dropped in from a different topic.
Use the name-the-rule filter. Before you pick, name the exact rule the question tests, the listing type, the protected class, or the antitrust violation. The most common trap is treating a commission rate as standard, which is itself a price-fixing risk.
Quiz mode · Test yourself
Real Estate Practice Practice Questions
15 scenario-based 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.
Every question explained
Prefer to study at your own pace? Here are all 15 questions. Read each one and pick your answer, then reveal the correct answer, the reasoning, and the trap that catches most candidates.
1. A seller signs a listing in which the broker earns a commission no matter who finds the buyer, including the seller. Which listing type is this?
- A.Open listing
- B.Exclusive agency listing
- C.Exclusive right-to-sell listing
- D.Net listing
Show answer and explanation
Correct answer: C. Exclusive right-to-sell listing
Why C is correct: An exclusive right-to-sell listing guarantees the broker a commission regardless of who procures the buyer, including the seller. An exclusive agency listing lets the seller sell on their own without owing a commission. An open listing pays only the broker who finds the buyer.
Trap: If the seller can find their own buyer and avoid paying, that is exclusive agency, not exclusive right-to-sell.
Source: Listing agreements
2. A net listing, in which the broker keeps any amount above the seller's stated net, is disfavored because it
- A.guarantees the seller the highest price
- B.creates a conflict of interest between the broker and the seller
- C.is the only listing that pays a commission
- D.must always be in writing
Show answer and explanation
Correct answer: B. creates a conflict of interest between the broker and the seller
Why B is correct: In a net listing, the broker keeps any surplus above the seller's net figure, which tempts the broker to maximize personal gain rather than the seller's interest. This conflict of interest is why net listings are disfavored and tightly regulated.
Trap: A net listing creates a conflict of interest. Do not mistake the broker's incentive for a benefit to the seller.
Source: Listing agreements; conflict of interest
3. Which set lists the federally protected classes under the Fair Housing Act?
- A.Race, color, religion, national origin, sex, familial status, and disability
- B.Age, income, occupation, and credit score
- C.Marital status, education, and political affiliation
- D.Only race and color
Show answer and explanation
Correct answer: A. Race, color, religion, national origin, sex, familial status, and disability
Why A is correct: The federal Fair Housing Act protects against discrimination based on race, color, religion, national origin, sex, familial status, and disability. Income, age, and occupation are not federally protected classes under that Act.
Trap: Memorize the seven federal classes. Age and income are not among them at the federal level.
Source: Federal Fair Housing Act
4. An agent tells a homeowner that minority families are moving in and values will drop, urging a quick sale. This illegal practice is
- A.steering
- B.blockbusting
- C.redlining
- D.puffing
Show answer and explanation
Correct answer: B. blockbusting
Why B is correct: Blockbusting is inducing owners to sell by suggesting that the entry of a protected class will lower property values or change the neighborhood. It is prohibited under the Fair Housing Act. Steering is channeling buyers toward or away from areas based on a protected class.
Trap: Blockbusting scares owners into selling; steering directs buyers. Both are Fair Housing violations, but they are different acts.
Source: Federal Fair Housing Act; blockbusting
5. A lender refuses to make loans in a particular neighborhood based on its racial composition. This illegal practice is
- A.steering
- B.blockbusting
- C.redlining
- D.a tie-in arrangement
Show answer and explanation
Correct answer: C. redlining
Why C is correct: Redlining is the refusal to lend or insure in certain areas based on the racial or ethnic composition of the neighborhood rather than the merits of the loan. It is prohibited under fair lending and fair housing laws.
Trap: Redlining is a lending practice tied to a geographic area. Steering and blockbusting target buyers and sellers directly.
Source: Federal Fair Housing Act; fair lending
6. Two brokers from competing firms agree to both charge sellers the same commission rate so neither undercuts the other. This agreement is
- A.permissible because commission rates are set by local custom
- B.price-fixing, an antitrust violation, even though the rate sounds standard
- C.permissible if both brokers disclose the rate in writing
- D.a tie-in arrangement
Show answer and explanation
Correct answer: B. price-fixing, an antitrust violation, even though the rate sounds standard
Why B is correct: Commission rates are always negotiable between a broker and a client. Competing brokers agreeing to charge the same rate is price-fixing, a per se violation of antitrust law under the Sherman Act, which carries serious penalties.
Trap: There is no standard or customary commission rate. Even calling a rate standard is an antitrust risk.
Source: Sherman Antitrust Act; price-fixing
7. Which of the following is one of the four antitrust violations a license holder must avoid?
- A.Charging a negotiated commission
- B.Market allocation, where competitors divide up territories or customers
- C.Advertising a listing online
- D.Holding an open house
Show answer and explanation
Correct answer: B. Market allocation, where competitors divide up territories or customers
Why B is correct: The four antitrust violations are price-fixing, market allocation, group boycotting, and tie-in arrangements. Market allocation is when competitors agree to divide territories or customers rather than compete. Negotiating a commission and advertising are lawful.
Trap: Market allocation, group boycotting, price-fixing, and tie-ins are the four antitrust violations. Normal competition is not one of them.
Source: Sherman Antitrust Act
8. A licensee states that a roof is in perfect condition when the licensee knows it leaks. This is
- A.puffing, which is lawful opinion
- B.misrepresentation, which can expose the licensee to liability
- C.a permissible sales technique
- D.a Fair Housing violation
Show answer and explanation
Correct answer: B. misrepresentation, which can expose the licensee to liability
Why B is correct: Stating a known false fact, such as that a leaking roof is perfect, is misrepresentation and can create liability for fraud. Puffing is non-factual opinion or sales talk, such as calling a view stunning, and is generally lawful.
Trap: Puffing is opinion; misrepresentation is a false statement of fact. A known false condition is misrepresentation.
Source: Misrepresentation and fraud; risk management
9. An agent shows minority buyers homes only in certain neighborhoods and white buyers homes in others. This practice is
- A.good customer service
- B.steering, a fair housing violation
- C.required by law
- D.permitted if the buyer agrees
Show answer and explanation
Correct answer: B. steering, a fair housing violation
Why B is correct: Steering is directing buyers toward or away from neighborhoods based on a protected class. It is a fair housing violation even if framed as helpful and even if the buyer does not object.
Trap: Channeling buyers by protected class is steering, regardless of intent or consent.
Source: Fair Housing Act (42 U.S.C. §3601 et seq.); steering
10. An advertisement for a rental states 'adults only, no children.' This advertisement is
- A.acceptable
- B.a fair housing violation based on familial status
- C.required disclosure
- D.only a problem in commercial property
Show answer and explanation
Correct answer: B. a fair housing violation based on familial status
Why B is correct: Stating a preference, limitation, or discrimination based on a protected class in an advertisement violates the Fair Housing Act. Familial status (households with children) is a protected class. Discriminatory advertising is never exempt.
Trap: Discriminatory ads are always prohibited, even where a sale-or-rental exemption might otherwise apply.
Source: Fair Housing Act; advertising
11. Which is a recognized exemption under the federal Fair Housing Act?
- A.Any landlord may refuse anyone for any reason
- B.An owner of a single-family home selling without a broker and without discriminatory advertising, subject to limits
- C.A broker may discriminate if the client requests it
- D.Discriminatory advertising by an owner
Show answer and explanation
Correct answer: B. An owner of a single-family home selling without a broker and without discriminatory advertising, subject to limits
Why B is correct: Limited exemptions exist, such as an owner selling a single-family home without using a broker or discriminatory advertising, and owner-occupied buildings of four or fewer units (the 'Mrs. Murphy' exemption). The exemptions never permit discriminatory advertising, and they do not apply when a license holder is involved.
Trap: Exemptions are narrow and never cover discriminatory advertising or transactions involving a license holder.
Source: Fair Housing Act; exemptions
12. Two competing brokerages agree to divide the city so each works only its own territory. This is the antitrust violation of
- A.market allocation
- B.puffing
- C.steering
- D.novation
Show answer and explanation
Correct answer: A. market allocation
Why A is correct: Market allocation is an agreement among competitors to divide territories or customers. Like price fixing, group boycotts, and tie-in arrangements, it is a per se antitrust violation.
Trap: Dividing territories among competitors is market allocation, an antitrust violation, not normal business planning.
Source: Sherman Antitrust Act; market allocation
13. Several brokers agree among themselves to refuse to cooperate with a new discount brokerage. This is
- A.a lawful business decision
- B.a group boycott, an antitrust violation
- C.required by the local board
- D.fair competition
Show answer and explanation
Correct answer: B. a group boycott, an antitrust violation
Why B is correct: A group boycott is an agreement among competitors to refuse to deal with another competitor or business. It is a per se antitrust violation. Each firm must independently decide who to do business with.
Trap: Competitors conspiring to freeze out a rival is a group boycott, even when the rival is a discounter.
Source: Sherman Antitrust Act; group boycott
14. An agent says, 'This is the most charming home on the block.' This statement is
- A.an actionable misrepresentation
- B.puffing, a non-actionable opinion
- C.a fair housing violation
- D.a breach of contract
Show answer and explanation
Correct answer: B. puffing, a non-actionable opinion
Why B is correct: Puffing is an exaggerated opinion or sales talk, such as 'most charming,' that a reasonable person would not rely on as a statement of fact. A false statement of material fact, by contrast, is misrepresentation.
Trap: Opinion or sales talk is puffing. A false statement of a verifiable material fact crosses into misrepresentation.
Source: Agency; puffing vs misrepresentation
15. The broker who is the uninterrupted, primary cause that results in the buyer purchasing the property is said to be the
- A.procuring cause of the sale
- B.intermediary
- C.appraiser
- D.escrow agent
Show answer and explanation
Correct answer: A. procuring cause of the sale
Why A is correct: The procuring cause is the broker whose efforts set in motion an uninterrupted chain of events leading to the sale. Procuring-cause disputes determine which broker earns the commission when more than one was involved.
Trap: Procuring cause is about who actually caused the sale, not merely who showed the home first.
Source: Agency; procuring cause
15 here, 1,200+ in the app
You found your gaps. Now close them across all 14 areas.
Pass Texas gives you 1,200+ Texas-specific questions, diagnostics across the 14 exam areas, Trap Library, Math Coach, offline access, and one $59.99 purchase. No subscription. No copied exam questions.
Get the full question bankFrequently asked questions
How many real estate practice questions are on the Texas exam?+
Real Estate Practice is 10 scored items on the national portion of the Texas Sales Agent exam. Expect questions on listing and representation agreements, Fair Housing, antitrust, fraud and misrepresentation, and brokerage risk management.
What are the federally protected classes under the Fair Housing Act?+
The federal Fair Housing Act prohibits discrimination based on race, color, religion, national origin, sex, familial status, and disability. Steering, blockbusting, redlining, and discriminatory advertising are all prohibited.
Why can a broker never quote a standard commission rate?+
Commission rates are always negotiable between a broker and a client. Suggesting a standard or going rate, or agreeing with competitors on rates, is price-fixing, a per se antitrust violation under the Sherman Act.