Special Topics (Texas) Practice Questions
Special topics is 6 outline items on the Texas state-law portion. It spans Texas-specific subjects such as community property, homestead protection and the homestead tax exemption, the Deceptive Trade Practices Act (DTPA), mechanic's and materialman's liens, the Veterans Land Board, and MUD disclosure. Work the questions below, then read every explanation.
Exam prep only
These questions cover the Texas-only material that does not fit the other state areas. The big distinctions are community versus separate property, homestead creditor protection versus the homestead tax exemption, and the consumer remedies under the DTPA.
Use the Texas-specific read. Identify the Texas concept the question names, then apply its rule. Confirm live exemption amounts and homestead details against current Texas law when applying outside exam practice.
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Special Topics (Texas) Practice Questions
15 scenario-based questions on special topics (texas), 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 couple buys a home with income earned during their marriage. Under Texas law, this property is generally
- A.separate property of the spouse who earned more
- B.community property owned by both spouses
- C.a joint tenancy with right of survivorship by default
- D.owned by the state until probate
Show answer and explanation
Correct answer: B. community property owned by both spouses
Why B is correct: Texas is a community-property state. Property acquired during marriage, such as a home bought with income earned during the marriage, is generally community property owned by both spouses. Property owned before marriage or received by gift or inheritance is separate property.
Trap: Income earned during marriage is community property in Texas, regardless of which spouse earned it.
Source: Texas Family Code; community property
2. A spouse owned a house before the marriage and never changed how it was held. Under Texas law, that house is
- A.community property
- B.separate property of the spouse who owned it before marriage
- C.automatically split 50-50
- D.owned by both spouses equally
Show answer and explanation
Correct answer: B. separate property of the spouse who owned it before marriage
Why B is correct: Property owned by a spouse before marriage is separate property in Texas, as is property received during marriage by gift or inheritance. Community property is generally what is acquired during the marriage other than by gift or inheritance.
Trap: Pre-marriage property and gifts or inheritance are separate property, not community property.
Source: Texas Family Code; separate property
3. Texas homestead law primarily provides
- A.a guarantee that property values will rise
- B.protection of a primary residence from forced sale by most creditors
- C.free property insurance
- D.an exemption from federal income tax
Show answer and explanation
Correct answer: B. protection of a primary residence from forced sale by most creditors
Why B is correct: Texas homestead protection shields a primary residence from forced sale by most creditors, subject to limits and certain exceptions such as mortgage liens, taxes, and certain other obligations. It is a strong creditor protection, separate from the homestead tax exemption.
Trap: Homestead creditor protection blocks forced sale; it is not insurance or a value guarantee.
Source: Texas Constitution Art. XVI; Texas Property Code Ch. 41; homestead
4. How does the homestead tax exemption differ from homestead creditor protection in Texas?
- A.They are the same thing
- B.The tax exemption reduces the taxable value of a primary residence, while creditor protection blocks forced sale by most creditors
- C.The tax exemption blocks forced sale, and creditor protection lowers taxes
- D.Neither applies to a primary residence
Show answer and explanation
Correct answer: B. The tax exemption reduces the taxable value of a primary residence, while creditor protection blocks forced sale by most creditors
Why B is correct: The homestead tax exemption reduces the taxable value of a primary residence, lowering property tax. Homestead creditor protection is a separate concept that shields the home from forced sale by most creditors. They share a name but do different things.
Trap: Keep the two homestead ideas separate: one lowers property tax, the other blocks forced sale.
Source: Texas Tax Code Ch. 11; homestead exemption
5. A homeowner relies on a seller's misleading statements about the property and suffers a loss. A Texas statute that gives consumers remedies for false, misleading, or deceptive acts is the
- A.Statute of Frauds
- B.Deceptive Trade Practices Act (DTPA)
- C.Sherman Antitrust Act
- D.Real Estate Settlement Procedures Act
Show answer and explanation
Correct answer: B. Deceptive Trade Practices Act (DTPA)
Why B is correct: The Texas Deceptive Trade Practices Act (DTPA) gives consumers remedies for false, misleading, or deceptive acts and practices. It is significant for license holders because misrepresentations in a transaction can expose them to DTPA liability.
Trap: The DTPA is the Texas consumer-protection statute. It is not the Statute of Frauds or a federal antitrust or settlement law.
Source: Texas Business & Commerce Code Ch. 17; DTPA
6. The security instrument most commonly used to finance a home purchase in Texas is the
- A.two-party mortgage
- B.deed of trust, which adds a trustee with a power of sale
- C.land contract
- D.bill of sale
Show answer and explanation
Correct answer: B. deed of trust, which adds a trustee with a power of sale
Why B is correct: Texas commonly uses a deed of trust rather than a traditional mortgage. The deed of trust has three parties: the borrower (trustor), the lender (beneficiary), and a neutral trustee who holds a power of sale that allows non-judicial foreclosure on default.
Trap: The Texas deed of trust adds a trustee and a power of sale. That power of sale is what enables non-judicial foreclosure.
Source: Texas Property Code Ch. 51; deeds of trust
7. Under a Texas deed of trust with a power of sale, a non-judicial foreclosure sale is generally held
- A.on the first Tuesday of the month after required notice
- B.any day the lender chooses with no notice
- C.only after a full court trial
- D.on the last day of the year
Show answer and explanation
Correct answer: A. on the first Tuesday of the month after required notice
Why A is correct: Texas non-judicial foreclosure sales are held on the first Tuesday of the month (or the first Wednesday if the first Tuesday is January 1 or July 4), at the county courthouse, after the statutorily required notices of default and sale.
Trap: Non-judicial foreclosure still requires proper notice and a set sale date. It is faster than judicial foreclosure, not noticeless.
Source: Texas Property Code §51.002; foreclosure sales
8. After a non-judicial foreclosure of a home under a Texas deed of trust, the former owner generally has
- A.a two-year right to redeem the property
- B.no statutory right of redemption
- C.an unlimited right to repurchase
- D.the right to stay for ten years
Show answer and explanation
Correct answer: B. no statutory right of redemption
Why B is correct: Texas does not provide a statutory right of redemption after a non-judicial mortgage foreclosure. A right of redemption does exist after a property-tax foreclosure sale (generally two years for a residence homestead or agricultural land, 180 days otherwise), but that is a different process.
Trap: Do not confuse the tax-sale redemption period with mortgage foreclosure. There is no redemption after a deed-of-trust foreclosure.
Source: Texas Property Code; Tax Code §34.21 (tax-sale redemption)
9. A seller of an existing single-family home in Texas must generally give the buyer a
- A.Seller's Disclosure Notice about the property's condition
- B.copy of the seller's tax returns
- C.guarantee of future appreciation
- D.list of the seller's debts
Show answer and explanation
Correct answer: A. Seller's Disclosure Notice about the property's condition
Why A is correct: Under Texas Property Code §5.008, a seller of residential real property of not more than one dwelling unit must deliver a written Seller's Disclosure Notice describing the property's known condition. Certain transfers are exempt, such as some foreclosure and estate sales.
Trap: The Seller's Disclosure Notice is required by statute for most residential resales, with limited exemptions.
Source: Texas Property Code §5.008; Seller's Disclosure Notice
10. The Texas Deceptive Trade Practices Act (DTPA) primarily
- A.sets real estate license fees
- B.protects consumers from false, misleading, or deceptive business practices
- C.governs property tax rates
- D.creates the homestead exemption
Show answer and explanation
Correct answer: B. protects consumers from false, misleading, or deceptive business practices
Why B is correct: The DTPA protects consumers from false, misleading, or deceptive acts in trade. A consumer who proves a knowing violation may recover economic damages and, in some cases, additional (up to treble) damages. License holders can face DTPA exposure for misrepresentation.
Trap: The DTPA is consumer-protection law with real teeth, including possible treble damages. It is not about licensing fees or taxes.
Source: Texas Business & Commerce Code Ch. 17; DTPA
11. A mechanic's and materialman's lien against a Texas residential homestead generally requires
- A.only an oral agreement after the work is done
- B.a written contract signed by both spouses and executed before the work begins
- C.no contract at all
- D.approval from the county tax office
Show answer and explanation
Correct answer: B. a written contract signed by both spouses and executed before the work begins
Why B is correct: To fix a valid mechanic's and materialman's lien on a Texas homestead, the law generally requires a written contract, signed by both spouses if married, executed and filed before the labor or materials are furnished. Homestead protection makes these liens harder to establish than on non-homestead property.
Trap: On a homestead, the written contract must be signed before work starts (and by both spouses). An after-the-fact oral deal will not support the lien.
Source: Texas Property Code Ch. 53; Texas Constitution Art. XVI §50
12. When a home is in a municipal utility district, Texas law requires the seller to give the buyer
- A.nothing special
- B.a statutory MUD notice disclosing the district and its taxes or fees
- C.a federal flood certificate only
- D.a survey of the entire district
Show answer and explanation
Correct answer: B. a statutory MUD notice disclosing the district and its taxes or fees
Why B is correct: A seller of property located in a municipal utility district (MUD) must provide the buyer the statutory MUD notice before the contract binds, disclosing the district and its tax rate, bonded indebtedness, or standby fees. The buyer may terminate if the notice is not timely given.
Trap: MUD disclosure is a statutory notice with a termination right, not an optional courtesy.
Source: Texas Water Code §49.452; Texas Property Code §5.013
13. A buyer of a home subject to mandatory membership in a property owners association is entitled to
- A.ignore the association entirely
- B.notice of the mandatory membership and, on request, a resale certificate with association information
- C.a waiver of all dues
- D.automatic board membership
Show answer and explanation
Correct answer: B. notice of the mandatory membership and, on request, a resale certificate with association information
Why B is correct: Texas law requires notice that the property is subject to mandatory membership in a property owners association, and a buyer can obtain a resale certificate disclosing assessments, fees, and the association's financial and restriction information.
Trap: Mandatory POA membership triggers disclosure and resale-certificate rights. The buyer cannot simply opt out of a mandatory association.
Source: Texas Property Code §§5.012, 207; POA disclosure
14. The Texas Veterans Land Board (VLB) provides eligible Texas veterans with
- A.free homes with no repayment
- B.land, home, and home-improvement loan programs
- C.exemption from all property taxes
- D.a real estate license
Show answer and explanation
Correct answer: B. land, home, and home-improvement loan programs
Why B is correct: The Texas Veterans Land Board offers eligible veterans below-market loan programs for land, home purchases, and home improvements. It is a state benefit program, not a giveaway and not a tax exemption.
Trap: The VLB provides loan programs, not free property. It is distinct from any veteran property-tax exemption.
Source: Texas Natural Resources Code; Veterans Land Board
15. To sell or mortgage a Texas homestead owned by a married couple, the deed or lien generally must be
- A.signed by either spouse alone
- B.signed by both spouses
- C.approved by the county
- D.recorded before it is signed
Show answer and explanation
Correct answer: B. signed by both spouses
Why B is correct: Because of homestead protections, both spouses must generally join in (sign) a conveyance or a lien on the homestead, even if title is in one spouse's name. This protects the family's homestead interest.
Trap: Homestead conveyances and liens require both spouses' signatures. One spouse cannot encumber the homestead alone.
Source: Texas Constitution Art. XVI; Texas Family Code; homestead joinder
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Get the full question bankFrequently asked questions
Is Texas a community-property state?+
Yes. Property acquired during marriage is generally community property owned by both spouses, while property owned before marriage or received by gift or inheritance is separate property. This affects how married persons take and convey title.
What is the difference between homestead protection and the homestead tax exemption?+
Homestead creditor protection shields a primary residence from forced sale by most creditors. The homestead tax exemption reduces the taxable value of the primary residence, lowering property tax. They share a name but do different things.
What is the DTPA?+
The Texas Deceptive Trade Practices Act gives consumers remedies for false, misleading, or deceptive acts and practices. License holders can face DTPA liability for misrepresentations made in a real estate transaction.