Texas Real Estate 26 Exam Questions & Answers 2026 (21–30)

Q21In Texas, which term is used for a broker who is authorized in writing to act as an agent for BOTH buyer and seller in the same transaction?

• ADual agent
• BTransaction broker
• CIntermediary
• DFacilitator

Q22When a broker acts as an intermediary and appoints two different associates to work with each party, the appointed associates may:

• ADisclose all confidential information between both parties freely
• BNegotiate terms on behalf of the broker without limitation
• CRepresent only the intermediary broker, not either party
• DAdvise and advocate for their respective appointed party

Q23Which of the following pieces of information is an intermediary broker PROHIBITED from revealing to either party?

• AThat a party will accept a price less than the listed/offered price unless the party authorizes disclosure
• BThe existence of other pending offers on the property
• CAny material defects known about the property
• DThe general price range of comparable sales

Q24A broker has written intermediary consent from both parties. There are no associates available to appoint. Which statement is TRUE?

• AThe broker must withdraw from the transaction and refer both parties elsewhere
• BThe broker may proceed as intermediary but cannot give opinions or advice to either party
• CThe broker may freely advise both parties since they consented to intermediary status
• DThe broker must appoint an outside agent to serve one party before proceeding

Q25Broker Maria represents Seller via a listing agreement and also has a buyer representation agreement with Buyer. Both parties consent in writing to intermediary status. Maria appoints Agent X for Seller and Agent Y for Buyer. Which statement is CORRECT?

• AAgent X may share Seller's confidential price floor with Agent Y to help close the deal
• BMaria may now give advice to both parties because she appointed associates
• CAgent X and Agent Y may each advise their respective party but must keep that party's confidences
• DMaria must personally supervise every negotiation exchange between X and Y

Q26The Texas Seller's Disclosure Notice is required by which Texas law?

• ATexas Property Code §5.007
• BTexas Occupations Code §1101.800
• CTexas Administrative Code Title 22 §535.154
• DTexas Property Code §5.008

Q27Which type of residential property is EXEMPT from the Texas Seller's Disclosure Notice requirement?

• AA property being transferred by court order (e.g., foreclosure or probate)
• BA single-family home built after 1978
• CA property with a known defect already repaired
• DA property selling below market value

Q28A seller fails to deliver the Seller's Disclosure Notice before signing the contract. What right does the buyer have under Texas Property Code §5.008?

• AThe buyer may sue for triple damages immediately
• BThe buyer may terminate the contract within 7 days of receiving the notice for a full refund of earnest money
• CThe buyer must complete the purchase as-is with no recourse
• DThe buyer is entitled to a 10% price reduction by law

Q29A Texas licensee learns that a listing property was the site of a murder two years ago. There is no physical defect. Is the agent required to disclose this?

• AYes, because any fact that might affect value must always be disclosed
• BNo, only if the buyer specifically asks about prior occupant deaths
• CNo, stigmatized property psychological defects are not required disclosures under Texas law
• DYes, because murder constitutes a material defect under TREC rules

Q30A listing agent discovers the seller completed a foundation repair without a permit. The seller asks the agent to stay silent. What is the agent's correct course of action?

• AHonor the seller's instruction because client confidentiality supersedes disclosure
• BDisclose the unpermitted repair only to the buyer's lender, not the buyer
• CDisclose only if the buyer orders a structural inspection
• DRefuse to stay silent and disclose the known material defect to the buyer