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Texas Real Estate Exam (National) Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the primary purpose of a deed in a real estate transaction?✔✔ To transfer ownership of real property
What kind of agency is created when a broker represents both buyer and seller in the same transaction?✔✔ Dual agency
What does "fiduciary duty" mean in a real estate context?✔✔ The legal obligation to act in the best interest of a client
Who typically pays the commission to the real estate agents in a residential sale?✔✔ The seller
What type of lien is created voluntarily by the homeowner?✔✔ Mortgage lien 1 / 4
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What is the name of the report used to estimate a home’s market value based on similar properties?✔✔ Comparative Market Analysis (CMA)
What does it mean when a property is "under contract"?✔✔ The buyer and seller have signed a purchase agreement
What document outlines the loan amount, interest rate, and repayment terms of a mortgage?✔✔ Promissory note
What is the role of an escrow officer in a real estate transaction?✔✔ To hold funds and documents until all terms of the contract are met
What kind of property is transferred with a bill of sale?✔✔ Personal property
What is the term for a loss in value due to age or outdated design? 2 / 4
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✔✔ Functional obsolescence
What does "title" refer to in real estate?✔✔ Legal ownership of property
What type of insurance protects against defects in ownership title?✔✔ Title insurance
What is an example of a physical characteristic of land?✔✔ Immobility
What is the legal process of transferring property after death with a will called?✔✔ Devise
What does the term "testate" mean?✔✔ Dying with a valid will
Who holds legal title in a deed of trust? 3 / 4
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✔✔ The trustee
Which federal law prohibits discrimination in housing based on race, color, religion, sex, or national origin?✔✔ Fair Housing Act
What does RESPA regulate in real estate transactions?✔✔ Closing and settlement procedures
What is a property manager’s first responsibility to the owner?✔✔ To maximize the owner’s return on investment
What is it called when a person dies without a will and without heirs?✔✔ Escheat
Who is responsible for signing the deed in a real estate transaction?✔✔ The seller
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