Modern Real Estate Practice in Texas, 16 th Edition
Getting a Real Estate License
Modern Real Estate Practice in Texas, 16th Edition, is designed to prepare you for a career in
real estate. However, before you can become a broker or salesperson, you must obtain a license.
Passing the real estate licensing examination is an integral part of the requirements for becoming
licensed. The exam is designed to test your knowledge of real estate laws, principles, and
practices.
APPLYING TO TAKE THE EXAM
To be eligible for a license, an individual must be a citizen of the United States or a lawfully
admitted alien, be at least 18 years of age, and be a legal resident of Texas at the time of filing
the application. An applicant must satisfy the commission as to his or her honesty,
trustworthiness, integrity, and competency. Competency is judged solely on the basis of an
examination. Honesty, trustworthiness, and integrity of an applicant are, in part, evaluated by
criteria contained in TREC rules 535.52 and 541.1. Included among the many offenses for which
the commission may deny a license application are pleading guilty or nolo contendere to or a
conviction of offenses involving fraud and misrepresentation, forgery, and falsification of
records, including providing false or misleading information to the commission. TREC rules can
be obtained at www.trec.texas.gov; choose the Forms, Laws, & Contracts tab.
Getting approval to take the exam
After you have completed your education requirements, go to the TREC website and download
the Application for Inactive Salesperson License form under the Licenses: Apply/Renew tab.
Just complete the form online and pay the fees shown on the application form (currently $163,
which includes the application fee, $20 for the Real Estate Center, and $10 for the real estate
recovery trust account.) There is an additional $20 fee for mailing a paper application rather than
filing online. Evidence of successful completion of your education via credit transcript or
certificate should be submitted with your application. If you file online, scan and send education
documents electronically or fax them to TREC. If you mail a paper application, submit paper
copies of all course completion documents with your application.
The Commission will send you a letter of eligibility, including an ID number, which is your
permit to schedule the examination; you will take the exam; and once you have successfully
passed it, TREC will send you an inactive salesperson license. Before you will be eligible to
practice real estate brokerage, however, you must be sponsored by an active real estate broker.
You will submit to TREC a Salesperson Sponsorship Form, and TREC will issue an active
salesperson license. If you have already chosen a sponsoring broker at the time you apply to take
the examination and want to expedite the process for getting an active license, you may submit
both forms at the same time.
Fingerprints
All applicants for a license must submit a set of fingerprints to the commission or to the Texas
Department of Public Safety for purposes of conducting a criminal history check [§1101.3521].
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Modern Real Estate Practice in Texas, 16th Edition
Refer to the TREC website for the procedures for submitting fingerprints and to TREC Rule
535.101 for the current amounts for all fees.
Selecting a broker
You must have a broker-sponsor before you can begin the practice of real estate, as described
above. Your license will be mailed to that broker and you will be working under that broker’s
license and supervision. Because selection of a broker-sponsor is crucial to your success in real
estate, several suggestions for that process are listed in the following:
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Select four or five different brokers to interview:
o Study real estate ads in the paper or online.
o Visit open houses and talk to REALTORS® in each office.
o Ask friends and relatives about past dealings with REALTORS®.
o Select an area you want to work in; see who is most active there.
o Think through what you’ll ask during an interview, and anticipate their questions.
Consider your appointment interview as both the broker’s considering you and your
considering the broker. Tell the broker what you have to offer the firm.
Ask questions during the interview. Possible questions include the following:
o What is the firm’s history?
o Does the broker foresee the firm being sold or merged in the near future?
o What is the firm’s image? (Ask this of friends, acquaintances, and agents in the
office as well as the broker.)
o What is the total sales volume of the company? What does that represent in terms
of market share?
o How is the sales volume distributed among agents (i.e., how many agents are
responsible for how much production)?
o Does the brokerage specialize in certain types of properties, price ranges,
geographic areas, or clients?
o What is the broker’s experience?
o What is the broker’s current role at the firm? Does he or she still actively sell?
o Is someone (broker, manager, legal counsel) available to answer questions about
contracts and transactions? At what times is that person available?
o What is the desk- and phone-duty opportunity/obligation?
o What are the open house opportunities (to sit in for someone else)?
o What training opportunities are available and who provides them? Who pays for
them?
o How often does the firm schedule sales meetings, who runs them, and is
attendance mandatory?
o What advertising does the brokerage do? What are the opportunities for agents to
participate and how much does that cost?
o What types of promotional literature are available for marketing?
o Does the firm offer other real estate–related services (mortgage, title, etc.) and
how do those programs work?
o What support staff or services are provided to agents? Who pays for them?
o What technology and Web resources are offered by the firm?
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Modern Real Estate Practice in Texas, 16th Edition
o
o
o
o
o
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What is the company policy about personal assistants?
What is the commission split?
Do I owe the company a commission if I buy a FSBO or sell my own home?
Is a minimum number of transactions expected each month?
May I have a copy of the policy manual before I make a decision? (Pay close
attention to the policy regarding “pending sales” should you later decide to leave
the firm.)
o Who pays what expenses—desk fees, MLS and association fees, transaction fees
in a franchise, technology fees, business cards, stationery, signs, sign riders,
telephone? (Realize that, as an independent contractor, you are paid on
commission only and need three to six months’ living expenses set aside before
you begin—to allow for the time it takes to list a property, market it, and close it.
As an independent contractor, you furnish your own car, gas, and insurance. In
addition, there may be $3,000 or more in start-up costs, among them, licensing
fees, MLS and association fees, business cards, and sign riders.)
Think about your personality, preferred market area, and the office atmosphere. Meet
other agents in the office and talk with them about the real estate business. Do they
have a positive attitude about the firm and real estate in general?
Select the office you think you will “fit into” the best.
Making an appointment to take the examination
After you have received the letter of eligibility from TREC to take the examination, you can
schedule an appointment to take the exam. You will make an appointment with Pearson Vue, an
independent testing company that administers the Texas Real Estate Licensing Examination;
registration may be completed by telephone, fax, Internet, or standard mail. You will have your
choice of testing at one of the many testing centers located throughout the state of Texas. The
current fee for taking the license examination is $54, although it is subject to change. The
examination must be passed within one year after the license application is filed with TREC
(S.B. 747, 2011).
WEB LINK @ www.pearsonvue.com
Candidate Handbook
A Candidate Handbook contains important information to assist you in scheduling and taking
your examination. You may download it at any time from the Pearson Vue website. The
Candidate Handbook includes
 guidelines for taking the examination;
 test center locations;
 how to make an appointment to take the examination;
 check-in procedures at the examination and required identification;
 computerized testing procedures;
 tips for preparing for the examination; and
 a detailed content outline, references for study, and sample questions.
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
WHAT TO EXPECT FROM THE EXAM
Salesperson and broker candidates are given separate examinations. The salesperson exam
consists of 110 questions in two parts: Real Estate General Theory (80 questions) and Texas
State-Specific Law and Regulations (30 questions). The broker exam has 120 questions with 80
in the theory section and 40 in the Texas law and regulations section. In most instances, the items
on the broker exam cover the same topics as the sales exam but are more difficult. There are five
to ten “pretest” questions included on each exam, but those answers are not scored. They are
used by Pearson Vue as a means of testing those questions for future use. If you have comments
about exam questions, you may enter them on the computer keyboard during the examination.
All exams are “closed book.” No study materials, notes, purses, backpacks, briefcases, or similar
materials may be carried into the examination room. Calculators are permitted while taking the
exam; they must be silent, battery-operated, nonprogrammable, and paperless without alphabetic
keyboards or communication capabilities. Scratch paper is provided. The questions are entirely
multiple-choice in format, with four answer choices for each question. The exam must be
completed within the allotted time of 240 minutes, which should be ample if you are adequately
prepared.
You must pass both parts of the exam to qualify for your real estate license. Candidates who fail
one part of the exam have to retake only the section they failed. If both parts of the examination
are not passed within one year after the date on which the application for a license was filed, the
candidate must make a new application to TREC, including the payment of all fees.
TAKING THE EXAMINATION
You will take your examination on a computer. The system is very simple to use, even for
candidates with no previous typing or computer experience. You have an opportunity to practice
using the system before beginning your exam. The time used for practice is not counted in the
time available for the actual exam.
Items on the examinations are confidential and copyrighted material. If a school or another
applicant asks you to reveal examination material, you should refuse. Any disclosure of test
questions is prohibited and can result in denial of licensure and/or civil or criminal prosecution.
The minimum passing score for each part of the salesperson examination is 70 percent; for the
broker examination, 75 percent. As soon as you complete your test, you will receive a report
indicating your score, whether you passed or failed, and your strengths and weaknesses in
various content areas of the exam. You should keep your printed score reports as confirmation of
having completed the examinations. Examination results are transmitted electronically to TREC
every night. If the examination is passed and all other requirements for licensure are satisfied, the
applicant can expect TREC to print a license the next business day. Passing the examination,
however, does not authorize the applicant to act as a licensee. For the salesperson license, you
must first apply for an active license under the sponsorship of an active real estate broker. For
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
either the salesperson or broker license, you may not begin your practice until the license
certificate is received.
If you fail one or more parts of your exam, you will receive instructions for rescheduling and
retaking the examination. Before retaking the test, applicants are advised to study—based on the
information contained in the examination analysis given at the examination site.
Just about anything you have studied in this book, in agency, in contracts, and in finance may be
included on the exam; and all real estate subject matter is “fair game.” The following section
reflects the most recent outline for the Pearson Vue Texas exam, effective September 2, 2014.
For a further breakdown of each topic, go to the “Content Outline” in the Candidate Handbook at
the pearsonvue.com website.
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
EXAMINATION OUTLINES
National Exam Content Outline for Brokers
The national portion of the real estate exam is made up of eighty (80) scored items, which are
distributed as noted in the following content outline. Approximately ten percent (10%) of the
scored items on the national examination will involve mathematical computations.
The national examination also contains five (5) pretest items that are not counted toward the
score. These items are used to gather statistics on performance and to help assess appropriateness
for use on future examinations. Because pretest items look exactly like items that are scored,
candidates should answer all the items on the examination.
I. REAL PROPERTY CHARACTERISTICS, DEFINITIONS, OWNERSHIP,
RESTRICTIONS, AND TRANSFER (9 items)
A. Definitions, descriptions, and ways to hold title
1. Elements of real and personal property
2. Property description and area calculations
3. Estates in real property
4. Forms of ownership, rights, interests, and obligations
B. Land use controls and restrictions
1. Government controls
2. Private controls — covenants and restrictions
3. Private controls —mortgage (deed of trust) and liens
C. Transfer/alienation of title to real property
1. Voluntary
2. Involuntary
3. Protections
4. Partition/severance (voluntary or involuntary)
5. Deeds and warranties: validity, types, and covenants
6. Title and title insurance
II. PROPERTY VALUATION AND APPRAISAL (9 items)
A. Market Analysis/Broker Price Opinion
1. Definition and Purpose
2. Process
3. Requirements
B. Appraisal
1. Definition and Purpose
2. Process
3. Requirements
4. Three approaches to value
C. Investment analysis
1. Application of principles
2. Math calculations
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
3. Commercial-Investment property types
III. CONTRACTS AND RELATIONSHIPS WITH BUYERS AND SELLERS (17 items)
A. Contract elements
1. Authority
2. Validity
3. Void/voidable
4. Enforceable/unenforceable (Statute of Frauds)
5. Unilateral/bilateral
6. Executory/executed
B. Contracts with buyers and sellers
1. General purpose/definition of listing
2. Types
3. Required elements
4. Establishing listing price
5. Responsibilities
C. Commission agreements
1. Negotiation of commission
2. Who may collect
3. Other compensation arrangements
4. Math: licensee compensation/commission
D. Sales contracts
1. Terminology
2. Procedures
3. Standard parts
4. Contingencies and misc. provisions
5. Contractual rights and obligations
6. Disputes and dispute resolution terms
E. Distressed property sales
F. Licensee relationships and responsibilities
1. Types of relationships – definitions
2. Relationship powers and obligations
IV. PROPERTY CONDITIONS AND DISCLOSURES (8 items)
A. Federal environmental regulations
1. Lead-based paint
2. CERCLA
3. Asbestos
4. Wetlands and flood plains
B. Environmental issues
1. Mold
2. Radon
3. Protected species
4. Other
C. Material and other property disclosures
D. Liability considerations
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
V. FEDERAL LAWS GOVERNING REAL ESTATE ACTIVITIES (7 items)
A. Anti-Discrimination/Fair Housing Acts
1. Protected Classes
2. Advertising
3. Enforcement/penalties
B. Americans with Disabilities Act (ADA)
C. Restraint of Trade (Sherman Act, etc.)
D. Lending (Regulation Z, etc.)
E. Privacy (Privacy Act, etc.)
F. Marketing
1. Real Estate Settlement Procedures Act (RESPA)
2. Do Not Call
G. Other regulations that apply
VI. FINANCING THE TRANSACTION AND SETTLEMENT (9 items)
A. Financing components
1. Financing instruments
2. Financing sources (primary and secondary mortgage markets, seller financing)
3. Types of loans
4. Financing clauses, terminology, and cost of money (calculation)
5. Lending issues
B. Lender requirements and obligations
1. Private mortgage insurance (PMI)
2. FHA requirements
3. VA requirements
4. Escrow/impound account
5. Credit report
6. Assumption requirements
7. Appraisal requirements
8. Hazard and flood insurance
9. Federal financing and credit regulation
C. Settlement/Closing
1. Procedures and forms
2. Closing costs and calculations
3. Documents, title, and recording
VII. LEASES, RENTS, AND PROPERTY MANAGEMENT (7 items)
A. Types and elements of leases
1. Leasehold estates
2. Types of leases
3. Lease clauses and provisions
B. Lessor and lessee rights, responsibilities, liabilities, and recourse
1. Owned and leased inclusions
2. Reversionary rights of owners
3. Rental-related discriminatory laws
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
4. Unit-related disclosures
5. Effect of sale/transfer/foreclosure
6. Evictions
7. Tenant improvements
8. Termination of a lease
9. Breach
C. Property management contracts and obligations of parties
1. Contracts and contractual relationships
2. Manager’s obligations, duties, and liabilities
3. Owner’s obligations, duties, and liabilities
4. Management/owner math calculations
VIII. BROKERAGE OPERATIONS (14 items)
A. Broker management of funds
1. Earnest money
2. Commingling
3. Conversion of funds
B. Supervision and management
1. Broker-salesperson relationship
2. Office operations
3. Training
4. Recordkeeping
5. Activities requiring a license
C. Advertising
D. Ethical and legal business practices
1. Misrepresentation
2. Implied duty of good faith
3. Due diligence
4. Unauthorized practice of law
5. Marketing practices
E. Forms of business ownership
F. Independent contractors vs. employee
G. Regulatory compliance
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
National Exam Content Outline for Salespersons
The national portion of the real estate exam is made up of eighty (80) scored items, which are
distributed as noted in the following content outline. Approximately ten percent (10%) of the
scored items on the national examination will involve mathematical computations.
The national examination also contains five (5) pretest items that are not counted toward the
score. These items are used to gather statistics on performance and to help assess appropriateness
for use on future examinations. Because pretest items look exactly like items that are scored,
candidates should answer all the items on the examination.
I. REAL PROPERTY CHARACTERISTICS, DEFINITIONS, OWNERSHIP,
RESTRICTIONS, AND TRANSFER (12 items)
A. Definitions, descriptions, and ways to hold title
1. Elements of real and personal property
2. Property description and area calculations
3. Estates in real property
4. Forms of ownership, rights, interests, and obligations
B. Land use controls and restrictions
1. Government controls
2. Private controls — non-monetary
3. Private controls — mortgage (deed of trust) and liens
C. Transfer/alienation of title to real property
1. Voluntary
2. Involuntary
3. Protections
4. Partition/severance (voluntary or involuntary)
5. Deeds and warranties: validity, types, and covenants
6. Title and title insurance
II. PROPERTY VALUATION (7 items)
A. Principles, types, and estimates of property value
1. Valuation definition, purpose, and process
2. Characteristics
3. Valuation principles
4. Approaches to value
5. Depreciation/obsolescence
6. Appraisals and fair market value
7. Math calculations
8. Influences on property value
9. Competitive Market Analysis (CMA)
B. Investment analysis
1. Application of principles
2. Math calculations
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
III. CONTRACTS AND RELATIONSHIPS WITH BUYERS AND SELLERS (14 items)
A. Contract elements
1. Validity
2. Void/voidable
3. Enforceable/unenforceable (Statute of Frauds)
4. Executory/executed
B. Listing contracts
1. General purpose/definition of listing
2. Types
3. Required elements
4. Establishing listing price
5. Responsibilities
6. Compensation arrangement
C. Buyer Representation Agreements
1. General purpose
2. Types
3. Required elements
4. Responsibilities
5. Compensation arrangement
D. Sales contracts
1. Terminology
2. Procedures
3. Standard parts
4. Contingencies and misc. provisions
5. Contractual rights and obligations
6. Disputes and dispute resolution terms
7. Delivery and acceptance
E. Option contracts
F. Agency relationships and responsibilities
1. Types of relationships — definitions
2. Relationship powers and obligations
IV. PROPERTY CONDITIONS AND DISCLOSURES (9 items)
A. Federal environmental regulations
1. Lead-based paint
2. CERCLA
3. Asbestos
4. Wetlands and flood plains
B. Environmental issues
1. Mold
2. Radon
3. Protected species
4. Other
C. Material and other property disclosures
V. RISK MANAGEMENT (6 items)
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
A. Types of insurance
1. General Liability
2. Errors and Omissions
3. Hazard and Flood
4. Other insurance
B. Record keeping
1. Contracts
2. Accounting
3. Other important documents
C. Privacy, security, and confidentiality
1. Security measures and controls
2. Systems and programs
3. Electronic communication and social media
4. Personal safety
D. Scope of expertise
VI. FEDERAL LAWS GOVERNING REAL ESTATE ACTIVITIES (9 items)
A. Anti-Discrimination/Fair Housing Acts
1. Protected Classes
2. Advertising
3. Enforcement/penalties
B. Americans with Disabilities Act (ADA)
C. Restraint of Trade (Sherman Act, etc.)
D. Lending (Regulation Z, etc.)
E. Privacy (Privacy Act, etc.)
F. Marketing
1. Real Estate Settlement Procedures Act (RESPA)
2. Do Not Call
G. Other regulations that apply
VII. FINANCING THE TRANSACTION AND SETTLEMENT (8 items)
A. Financing components
1. Financing instruments
2. Financing sources (primary and secondary mortgage markets, seller financing)
3. Types of loans
4. Financing clauses, terminology, and cost of money (calculation)
5. Lending issues
B. Lender requirements and obligations
1. Private mortgage insurance (PMI)
2. FHA requirements
3. VA requirements
4. Escrow/impound account
5. Credit report
6. Assumption requirements
7. Appraisal requirements
8. Hazard and flood insurance
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
9. Federal financing and credit regulation
C. Settlement/Closing
1. Procedures and forms
2. Closing costs and calculations
3. Documents, title, and recording
VIII. LEASES, RENTS, AND PROPERTY MANAGEMENT (5 items)
A. Types and elements of leases
1. Leasehold estates
2. Types of leases
3. Lease clauses and provisions
B. Lessor and lessee rights, responsibilities, liabilities, and recourse
1. Owned and leased inclusions
2. Reversionary rights of owners
3. Unit-related disclosures
4. Effect of sale/transfer/foreclosure
5. Evictions
6. Tenant improvements
7. Termination of a lease
8. Breach
9. Security deposit guidelines and procedures
C. Property management contracts and obligations of parties
1. Contracts and contractual relationships
2. Manager’s obligations, duties, and liabilities
3. Owner’s obligations, duties, and liabilities
4. Management/owner math calculations
IX. BROKERAGE OPERATIONS (6 items)
A. Trust Accounts
1. Earnest money
2. Commingling
3. Conversion of funds
B. Advertising
C. Forms of business ownership
1. Corporation
2. Partnership (general and limited)
3. Limited liability company
4. Sole proprietorship
D. Independent contractors vs. employee
X. ETHICAL AND LEGAL BUSINESS PRACTICES (4 items)
A. Misrepresentation issues
B. Implied duty of good faith
C. Due diligence
D. Unauthorized practice of law
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
Texas State Content Outline for Salesperson and Broker Examinations
The state portion of the Texas real estate examination consists of thirty (30) scored items for the
salesperson examination and forty (40) scored items for the broker examination. Both
examinations also contain 5-10 pretest items. These pretest items are not identified and will not
affect a candidate’s score in any way. Because pretest items look exactly like scored items,
candidates should answer all the items on the examination.
I. COMMISSION DUTIES AND POWERS (Salesperson 2 items, Broker 3 items)
A. General Powers: Composition, Duties, and Powers; Real Estate Advisory
Committees
B. Handling of Complaints: Investigations, Hearings and Appeals
C. Penalties for Violation: Unlicensed Activity; Authority for Disciplinary Actions;
Recovery Trust Account
II. LICENSING (Salesperson 2 items, Broker 4 items)
A. Activities Requiring License: Scope of Practice; Exemptions; Business Entities;
Non-Resident Broker; Inspectors and Appraisers
B. Licensing Process: General Requirements (moral character, residency, sponsor,
etc.); Education; Examination; Grounds to Reject Application; Appeals of Denial,
Criminal Background Check (Broker only)
C. License Maintenance and Renewal: Continuing Education; Place of Business;
Change of Salesperson Sponsorship; Inactive Status, Assumed Names
III. STANDARDS OF CONDUCT (Salesperson 7 items, Broker 9 items)
A. Professional Ethics and Conduct
B. Grounds for Suspension and Revocation
C. Unauthorized Practice of Law
D. Trust Accounts
E. Splitting Fees (vs. Permissible Rebates)
F. Advertising Rules
IV. AGENCY/BROKERAGE (Salesperson 8 items, Broker 10 items)
A. Disclosure
B. Intermediary Practice
C. Duties to Client (including Minimum Services)
D. Enforcing Compensation Agreements (Broker only)
E. Broker-Salesperson Relationships; Broker’s Responsibility for Acts of
Salesperson
F. Appropriate Use of Unlicensed Assistants
V. CONTRACTS (Salesperson 7 items, Broker 8 items)
A. Use and Understanding of Standard Contract Forms
B. Statute of Frauds
C. Seller Disclosure Requirements
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
VI. SPECIAL TOPICS (Salesperson 4 items, Broker 6 items)
A. Community Property
B. Homestead
C. Deceptive Trade Practices Act
D. Wills and Estates
E. Landlord-Tenant Issues
F. Foreclosure and Short Sales
G. Recording Statutes
H. Mechanic’s and Materialman’s Liens
I. Veterans’ Land Board
J. Home Owners Associations
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
Examination
Portion
# of Items (scored
and pretest
Salesperson
National
85
150 Minutes
State
40
90 Minutes
Both
125
240 Minutes
National
85
150 Minutes
State
50
90 Minutes
Both
135
240 Minutes
Broker
Time Allowed
MULTIPLE-CHOICE QUESTIONS: TEST-TAKING STRATEGIES
There are as many different ways to prepare for and take multiple-choice examinations as there
are test takers. Before you try the following sample exams, take some time to read this brief
overview of test-taking strategies. While no one can tell you which method will work best for
you, it is always a good idea to think about what you are going to do before you do it.
One of the most important things to remember about multiple-choice test questions is this: they
always give you the correct answer. You don’t have to remember how things are spelled, and
you don’t have to try to guess what the question is about. The answer is always there, right in
front of you.
Of course, if it were as easy as that, it wouldn’t be much of a test. The key to success in taking
multiple-choice examinations is actually two keys: first, know the correct answer. You do that by
going to class, paying attention, taking good notes, and studying the material. Then, if you don’t
know the answer, you can analyze the questions and answers effectively, and you can apply the
second key: be able to make a reasonable guess. Even if you don’t know the answer, you will
probably know which answers are clearly wrong and which ones are more likely than the others
to be right.
If you can eliminate one answer as wrong, you have improved your odds in “guessing correctly”
by 25 percent, from 4-to-1 to 3-to-1. If you can eliminate two wrong answers, you have a 50/50
shot at a correct guess. Of course, if you can eliminate three wrong answers, your chance of a
correct response is 100 percent. In any case, there is no secret formula. The only sure way to
improve your odds of a correct answer is to study and learn the material.
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
Structure of the question
A multiple-choice question has a basic structure. It starts with what test writers call the stem.
That’s the text of the question that sets up the need for an answer. The stem may be an
incomplete statement that is finished by the correct answer; it may be a story problem or
hypothetical example about which you will be asked a question. Or it may be a math problem, in
which you are given basic information and asked to solve a mathematical issue, such as the
amount of a commission or capital gain.
The stem is always followed by options: four possible answers to the question presented by the
stem. Depending on the structure and content of the stem, the options may be single words or
numbers, phrases, or complete sentences. Three of the options are distractors: incorrect answers
intended to “distract” you from the correct choice. One of the options is the correct answer,
called the key.
Reading a multiple-choice question
Here are three methods for approaching a multiple-choice test question:
1.
2.
3.
The Traditional Method—Read the question through from start to finish; then, read
the options. When you get to the correct answer, mark it and move on. This method
works best for short questions, such as those that require completion or simply define
a term. For long, more complicated questions or those that are not quite clear,
however, you may miss important information.
The Focus Method—As we’ve seen, multiple-choice questions have different parts. In
longer math or story-type questions, the last line of the stem will contain the
question’s focus: the basic issue the item asks you to address. That is, the question is
always in the last line of the stem. In the focus method, when you come to a longer
item, read the last line of the stem first. This will clue you in to what the question is
about. Then go back and read the stem from beginning to end. The advantage is this:
while you are reading complicated facts or math elements, you know what to look for.
You can watch for important items and disregard unnecessary information.
The Upside-Down Method—This technique takes the focus method one step farther.
Here, you do just what the name implies: you start reading the question from the
bottom up. By reading the four options first, you can learn exactly what the test writer
wants you to focus on. For instance, a fact-pattern problem might include several
dollar values in the stem, leading you to believe you’re going to have to do a math
calculation. You might try to recall all the equations you’ve memorized, only to find
at the end of the stem that you’re only expected to define a term. If you’ve read the
options first, you know what to look for.
©2014 Kaplan, Inc.