Texas Real Estate Broker Exam With Actual
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Explained Rationales/Expert Verified For
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1. Which of the following is required for a real estate broker in
Texas?
A. Must be at least 18 years old
B. Must have held a salesperson license for at least 4 years
C. Must complete 30 hours of continuing education every year
D. Must be a Texas resident for at least 2 years
B. Must have held a salesperson license for at least 4 years
Rationale: Texas law requires applicants to have at least 4 years of
active experience as a licensed real estate salesperson within the
preceding 5 years before applying for a broker license.
2. A real estate broker can legally:
A. Represent both the buyer and seller without disclosure
B. Operate independently and employ other licensees
C. Only sell properties owned by the broker
D. Avoid keeping records of transactions
B. Operate independently and employ other licensees
Rationale: Brokers in Texas can operate their own real estate business
and employ salespersons, unlike salespersons who must work under a
broker.
, 3. A broker must deposit client funds in which of the following
accounts?
A. Personal savings account
B. Trust account separate from personal funds
C. Business checking account with other funds
D. Any account the broker chooses
B. Trust account separate from personal funds
Rationale: Client funds, such as earnest money, must be held in a trust
account to avoid commingling with personal or business funds.
4. The Texas Real Estate Commission (TREC) is responsible for:
A. Approving all home sales contracts
B. Issuing licenses and enforcing real estate laws
C. Setting mortgage interest rates
D. Determining property taxes
B. Issuing licenses and enforcing real estate laws
Rationale: TREC regulates real estate licensees, enforces the Real
Estate License Act, and ensures compliance with state laws.
5. In Texas, a broker must retain real estate transaction records for
at least:
A. 1 year
B. 2 years
C. 3 years
D. 5 years
C. 3 years
Rationale: Brokers are required to keep all transaction records for at
least 3 years from the date of closing or termination of the listing.
6. Which type of agency exists when a broker represents a client but
has not entered into a written agreement?
, A. Universal agency
B. Express agency
C. Implied agency
D. Dual agency
C. Implied agency
Rationale: Implied agency occurs through the actions or conduct of
the broker and client, even if there is no written agreement.
7. A broker's fiduciary duties include:
A. Honesty, loyalty, disclosure, confidentiality, and obedience
B. Marketing only their own listings
C. Charging the highest commission possible
D. Avoiding disclosure of material facts
A. Honesty, loyalty, disclosure, confidentiality, and obedience
Rationale: Fiduciary duties require brokers to act in the best interests
of their clients with full disclosure and loyalty.
8. Which of the following constitutes a material fact in real estate?
A. The color of the front door
B. Known structural damage
C. Seller’s personal preference for closing date
D. The buyer’s credit score
B. Known structural damage
Rationale: Material facts are those that affect the value or desirability
of the property and must be disclosed to buyers.
9. When must a broker provide the Consumer Information Form
(Information About Brokerage Services)?
A. Before entering into a listing or buyer representation
agreement
B. After the contract is signed
, C. Only if requested by the client
D. Never; it’s optional
A. Before entering into a listing or buyer representation agreement
Rationale: Texas law requires the form to be given at the first
substantive discussion about a possible transaction.
10. A broker may pay a referral fee to:
A. Anyone, licensed or unlicensed
B. Only licensed real estate agents
C. Any friend or family member
D. Only attorneys
B. Only licensed real estate agents
Rationale: Referral fees may only be paid to licensed real estate
professionals in Texas, unless a specific exception applies.
11. The statute of frauds in Texas requires which type of real
estate contract to be in writing?
A. Listing agreement
B. Lease for more than 1 year
C. Sale of land
D. All of the above
D. All of the above
Rationale: Contracts for the sale of land, leases over one year, and
listing agreements must be in writing to be enforceable under Texas
law.
12. Which of the following is a violation of the Texas Deceptive
Trade Practices Act?
A. Misrepresenting property condition
B. Advertising property truthfully
Questions & Verified Answers, Plus
Explained Rationales/Expert Verified For
Guaranteed 100% Pass 2026/Latest
Update/Instant Download Pdf
1. Which of the following is required for a real estate broker in
Texas?
A. Must be at least 18 years old
B. Must have held a salesperson license for at least 4 years
C. Must complete 30 hours of continuing education every year
D. Must be a Texas resident for at least 2 years
B. Must have held a salesperson license for at least 4 years
Rationale: Texas law requires applicants to have at least 4 years of
active experience as a licensed real estate salesperson within the
preceding 5 years before applying for a broker license.
2. A real estate broker can legally:
A. Represent both the buyer and seller without disclosure
B. Operate independently and employ other licensees
C. Only sell properties owned by the broker
D. Avoid keeping records of transactions
B. Operate independently and employ other licensees
Rationale: Brokers in Texas can operate their own real estate business
and employ salespersons, unlike salespersons who must work under a
broker.
, 3. A broker must deposit client funds in which of the following
accounts?
A. Personal savings account
B. Trust account separate from personal funds
C. Business checking account with other funds
D. Any account the broker chooses
B. Trust account separate from personal funds
Rationale: Client funds, such as earnest money, must be held in a trust
account to avoid commingling with personal or business funds.
4. The Texas Real Estate Commission (TREC) is responsible for:
A. Approving all home sales contracts
B. Issuing licenses and enforcing real estate laws
C. Setting mortgage interest rates
D. Determining property taxes
B. Issuing licenses and enforcing real estate laws
Rationale: TREC regulates real estate licensees, enforces the Real
Estate License Act, and ensures compliance with state laws.
5. In Texas, a broker must retain real estate transaction records for
at least:
A. 1 year
B. 2 years
C. 3 years
D. 5 years
C. 3 years
Rationale: Brokers are required to keep all transaction records for at
least 3 years from the date of closing or termination of the listing.
6. Which type of agency exists when a broker represents a client but
has not entered into a written agreement?
, A. Universal agency
B. Express agency
C. Implied agency
D. Dual agency
C. Implied agency
Rationale: Implied agency occurs through the actions or conduct of
the broker and client, even if there is no written agreement.
7. A broker's fiduciary duties include:
A. Honesty, loyalty, disclosure, confidentiality, and obedience
B. Marketing only their own listings
C. Charging the highest commission possible
D. Avoiding disclosure of material facts
A. Honesty, loyalty, disclosure, confidentiality, and obedience
Rationale: Fiduciary duties require brokers to act in the best interests
of their clients with full disclosure and loyalty.
8. Which of the following constitutes a material fact in real estate?
A. The color of the front door
B. Known structural damage
C. Seller’s personal preference for closing date
D. The buyer’s credit score
B. Known structural damage
Rationale: Material facts are those that affect the value or desirability
of the property and must be disclosed to buyers.
9. When must a broker provide the Consumer Information Form
(Information About Brokerage Services)?
A. Before entering into a listing or buyer representation
agreement
B. After the contract is signed
, C. Only if requested by the client
D. Never; it’s optional
A. Before entering into a listing or buyer representation agreement
Rationale: Texas law requires the form to be given at the first
substantive discussion about a possible transaction.
10. A broker may pay a referral fee to:
A. Anyone, licensed or unlicensed
B. Only licensed real estate agents
C. Any friend or family member
D. Only attorneys
B. Only licensed real estate agents
Rationale: Referral fees may only be paid to licensed real estate
professionals in Texas, unless a specific exception applies.
11. The statute of frauds in Texas requires which type of real
estate contract to be in writing?
A. Listing agreement
B. Lease for more than 1 year
C. Sale of land
D. All of the above
D. All of the above
Rationale: Contracts for the sale of land, leases over one year, and
listing agreements must be in writing to be enforceable under Texas
law.
12. Which of the following is a violation of the Texas Deceptive
Trade Practices Act?
A. Misrepresenting property condition
B. Advertising property truthfully
