Free TREC Consumer Protection Questions and Answers

Question 1

A buyer purchases a furnished condominium apartment as an investment. The document that evidences the buyer's ownership of the furniture is a?

Accepted Answer

Bill of sale

Answer

Adverse possession

Answer

Deed of trust

Answer

Agreement of sale

Question 2

The appropriate time for a selling broker to explain the agency relationship to a prospective buyer is?

Accepted Answer

at their initial meting

Answer

at the time of licensee's first contact

Answer

both parties

Answer

terminate the purchase contract with the seller

Question 3

A lot was purchased as an investment for $10,500 and sold a year later at a loss of 20%. If the owner paid a 10% commission, what was the owner's net loss on the sale

Accepted Answer

$2,940
10500X.20= 2,100
8400X.10=840
2,100+840=2,940

Answer

$2,940
10500x.30= 2,100
8400x.10=840
2,100+840=2,940

Answer

$2,940
10500x.20= 2,100
8400x.0=840
2,100+840=2,940

Answer

$2,940
1050x.20= 2,100
8400x.10=840
2,100+840=2,940

Question 4

A license holder is showing a home built in 1972 to buyers who notice paint flaking on the woodwork. How should the license holder proceed

Accepted Answer

advise the prospective buyers to get a lead based paint inspection

Answer

recommend repainting the woodwork immediately

Answer

suggest the buyers do a termite inspection instead

Answer

ignore the paint flaking issue

Question 5

The commission earned by a listing broker on a sale of property is established by?

Accepted Answer

Agreement between the seller and the broker

Answer

Property tax assessment

Answer

Market conditions

Answer

State law regulations