Real Estate License Cheat Sheet 2026

The 30 highest-yield Real Estate License facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Who is in charge of deciding on a property's listing price? → the owner of the property
2. A point paid to a lender at closing typically equals what percentage of the loan amount? → 1%
3. An appraiser deducts $15,000 from a comparable's sale price because it has a finished basement the subject lacks. What is this adjustment based on? → The contributory value of the feature
4. A contingency in a purchase agreement is best described as: → A condition that must be met for the contract to proceed
5. Select all that apply: If a deed is valid it must be: → Signed
6. Which of the following is NOT registered, licensed, certified or regulated by the Texas Real Estate Commission? → Appraisers.
7. Under an Exclusive Right to Sell listing agreement, the listing broker earns a commission: → Regardless of who procures the buyer, including the seller themselves
8. Which of the following best defines market value? → The most probable price a property should bring in a competitive open market
9. In a deed of trust, the party who holds title on behalf of the lender is the: → Trustee
10. If a licensed Real Estate broker is an agent in a transaction in which real property is sold by lottery, his or her action is → Cause for suspension or revocation of the broker's license.
11. The Transfer Disclosure Statement (TDS) form is required on: → the sale of a one-to-four unit residential property
12. A cloud on title is best described as: → Any claim or encumbrance that may impair the owner's title
13. In order to be enforceable, which of the following contracts must be in writing? → A buyer's agreement to take over an existing loan secured by a deed of trust.
14. Title to real property passes to the grantee when the deed is → delivered and accepted
15. Which isn't true of a tenancy in common? → On their death, a tenant in common may not leave their interest in the property to others.
16. Which clause in a mortgage allows the lender to demand full repayment if the borrower sells the property? → Due-on-sale clause
17. A legal description of real property: → All of the above
18. Each active real estate broker licensed by the Texas Real Estate Commission shall display in a prominent location in their place of business a → Consumer Information Form 1-1
19. A chronological history of all recorded documents affecting title to a parcel is called the: → Chain of title
20. Which type of loan adjusts the interest rate periodically based on an index? → Adjustable-rate mortgage (ARM)
21. Which of the notices shown below MUST be signed by a buyer or a seller → Consent to Transition to Transaction Broker Notice.
22. In the sales comparison approach, if the comparable is superior to the subject, the appraiser should: → Subtract value from the comparable
23. It is appropriate for real property managers to be compensated in all of the following ways, except: → receiving kickbacks from contractors and suppliers.
24. A 'meeting of the minds' refers to: → Mutual agreement on the essential terms
25. A transfer of title that occurs by operation of law or natural events, without the owner's consent, is referred to as: → Involuntary alienation
26. A property generates $90,000 in potential gross income with a 5% vacancy and $30,000 in operating expenses. What is the NOI? → $55,500
27. A document appearing valid on its face but lacking some legal requirement, giving an apparent but defective right to title, is called: → Color of title
28. Which of the following best describes a balloon payment? → The mandatory payment of the whole outstanding debt
29. Which of the following is most correct? → All Realtors must be members of NAR.
30. A bundle of rights in real property does NOT typically include the right to: → Violate local zoning laws