A property owner in Texas is selling their single-family home. The buyer is obtaining financing, and the loan requires flood insurance. The seller's existing homeowner's insurance policy does not cover flood damage. What is the most accurate statement regarding the seller's responsibility to disclose flood risk and insurance requirements to the buyer?

The seller must disclose the property's flood zone designation and the buyer's need for flood insurance as a condition of financing.. Texas law requires sellers to disclose known material defects, and flood zone designation requiring specific insurance is a material fact impacting the buyer's ability to secure financing and protect their investment. The seller must disclose this information.

A real estate broker in Texas receives an earnest money deposit check for a contract that is subsequently terminated due to an unmet contingency. The buyer requests the return of the earnest money. The seller, however, believes the buyer breached the contract and demands the earnest money. What is the broker's most appropriate course of action?

Hold the earnest money and notify both parties in writing of the dispute, recommending they seek legal counsel.. When there is a dispute over earnest money, the broker must notify both parties in writing and hold the funds until an agreement is reached or a court order is obtained. Disbursing without agreement or court order can lead to liability.

A buyer in Texas makes an offer on a property. The seller accepts the offer, and the contract is fully executed. Later, the buyer discovers that the seller intentionally failed to disclose a significant foundation issue that was known at the time of sale. What legal recourse does the buyer have against the seller?

The buyer may sue for damages, including the cost of repairs, and potentially seek rescission of the sale.. Intentional non-disclosure of a material fact, like a known foundation issue, is fraudulent. The buyer can pursue legal remedies such as suing for damages (cost of repairs) or seeking to rescind the contract, effectively unwinding the sale.

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Free Texas Real Estate Exam practice test with 50 realistic multiple-choice questions, instant grading, and explanations. Study with drill mode, category score reports, and a personalized review plan.

Exam format

50 multiple-choice practice questions
Drill mode with instant feedback and explanations after each answer

Study tips

Review the official exam content outline before your first practice run.
Take the full practice exam once to establish a baseline score by category.
Focus review on categories where you score below the passing threshold.
Re-take missed questions in drill mode until you can explain each correct answer.
Schedule the real exam only after consistent passing scores on practice tests.

Sample TX Real Estate practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

Question 1Seller Disclosures
A property owner in Texas is selling their single-family home. The buyer is obtaining financing, and the loan requires flood insurance. The seller's existing homeowner's insurance policy does not cover flood damage. What is the most accurate statement regarding the seller's responsibility to disclose flood risk and insurance requirements to the buyer?
- A.The seller is not required to disclose flood risk unless the property has flooded in the past five years.
- B.The seller is only obligated to disclose if they have previously filed a flood damage claim.
- C.The seller's agent is responsible for obtaining flood zone information and informing the buyer, not the seller.
- D.The seller must disclose the property's flood zone designation and the buyer's need for flood insurance as a condition of financing.(Correct)
Explanation
Texas law requires sellers to disclose known material defects, and flood zone designation requiring specific insurance is a material fact impacting the buyer's ability to secure financing and protect their investment. The seller must disclose this information.
Question 2Trust Accounts and Earnest Money
A real estate broker in Texas receives an earnest money deposit check for a contract that is subsequently terminated due to an unmet contingency. The buyer requests the return of the earnest money. The seller, however, believes the buyer breached the contract and demands the earnest money. What is the broker's most appropriate course of action?
- A.Hold the earnest money and notify both parties in writing of the dispute, recommending they seek legal counsel.(Correct)
- B.Immediately disburse the earnest money to the seller, as they are the client.
- C.Deposit the earnest money into their operating account and await further instructions from TREC.
- D.Disburse the earnest money to the buyer, as the contingency was not met.
Explanation
When there is a dispute over earnest money, the broker must notify both parties in writing and hold the funds until an agreement is reached or a court order is obtained. Disbursing without agreement or court order can lead to liability.
Question 3Contract Remedies and Fraud
A buyer in Texas makes an offer on a property. The seller accepts the offer, and the contract is fully executed. Later, the buyer discovers that the seller intentionally failed to disclose a significant foundation issue that was known at the time of sale. What legal recourse does the buyer have against the seller?
- A.The buyer must wait for the seller to address the foundation issue before taking any action.
- B.The buyer's only recourse is to report the seller to the Texas Real Estate Commission (TREC).
- C.The buyer may sue for damages, including the cost of repairs, and potentially seek rescission of the sale.(Correct)
- D.The buyer can only terminate the contract and recover the earnest money.
Explanation
Intentional non-disclosure of a material fact, like a known foundation issue, is fraudulent. The buyer can pursue legal remedies such as suing for damages (cost of repairs) or seeking to rescind the contract, effectively unwinding the sale.

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Frequently asked questions

How many questions are on this TX Real Estate practice test?

This practice test includes 50 multiple-choice questions designed to mirror the format and difficulty of the real Texas Real Estate Exam.

Is this TX Real Estate practice test free?

Yes. You can start practicing for free. Create an account to save progress, track weak categories, and retake the exam.

Do I get explanations after each question?

Yes. In drill mode you see why the correct answer is right, why distractors are wrong, and practical examples where relevant.

How should I use this practice test to prepare?

Take the full exam under timed conditions, review missed questions by category, then focus study on your weakest sections before scheduling the real exam.

Does this replace official exam materials?

No. Use this as a supplement alongside official candidate information bulletins, textbooks, and hands-on experience required for your license or certification.

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