TEXAS REAL ESTATE STATE PORTION EXAM 140
QUESTIONS & CORRECT ANSWERS LATEST 2025
How many members in TREC? - ANSWER-9: 3 general public, 6 brokers
Who appoints, confirms TREC members? - ANSWER-Governor appoints, senate
approves
How many members on the Broker-Lawyer Committee? - ANSWER-13: 6
brokers, 6 lawyers, 1 public member
Who appoints Broker-Lawyer committee members? - ANSWER-Brokers/TREC,
Lawyers/Pres of State Bar, Public Member/Governor
Where is the Real Estate Advisory Committee? - ANSWER-Texas A & M
Who is on the Real Estate Advisory Committee? - ANSWER-10 members: 6
brokers, 3 public members, 1 ex TREC officio
How long does an individual have after an incident to file a complaint against a
license holder? - ANSWER-4 years
If your license is revoked by TREC, you may..... - ANSWER-appeal to the district
court
,Brokerage without a license is defined as a - ANSWER-Class A Misdemeanor
Penalties for Brokerage without a license - ANSWER-Fine up to $4,000;
imprisonment in county jail for not more than 1 year, or both
Additional penalties for brokerage without a license - ANSWER-Civil penalties of
up to three times the amount of money received
The Real Estate Recovery Account was created to - ANSWER-pay aggrieved
persons who suffered monetary losses due to unscrupulous acts of license holders.
If Real Estate Recovery Trust Account is below $1 million - ANSWER-Brokers
and licensees pay a pro rata share of $10 upon license renewal
If Real Estate Recovery Trust Account is above $3.5 million, - ANSWER-the
excess goes into the State's General Fund
When an amount if paid out of the Real Estate Recovery Trust Account on behalf
of a license holder, - ANSWER-the license of the person can be suspended or
revoked. It may never be recovered until the account is paid back with interest.
Maximum amount payable by the Real Estate Recovery Trust Account -
ANSWER-is $100,000 per license holder and $50,000 per transaction.
Does TREC resolve disputes between license holders? - ANSWER-No
YES License - ANSWER-attorneys receiving a commission
, YES License - ANSWER-Auctioneers involved in any part of a transaction, other
than calling
YES License - ANSWER-apartment locators
Yes License - ANSWER-real estate agents
Yes License - ANSWER-Business entities who receives commissions on behalf of
license holders
Yes License - ANSWER-Designated broker, officer, or manager of a Real Estate
Limited Liability Company
Yes License - ANSWER-a third party who collects rents from a single family
residence (property manager)
Yes License - ANSWER-Any business that engages in real estate brokerage must
have a licensed broker
EXEMPT License - ANSWER-attorneys receiving a fee but no commission split
EXEMPT License - ANSWER-court appointed receivers, trustees, guardians, and
sheriffs; anyone engaged in or carrying out foreclosure sales
EXEMPT License - ANSWER-Administrators and executors of a will
EXEMPT License - ANSWER-on-site apartment managers
QUESTIONS & CORRECT ANSWERS LATEST 2025
How many members in TREC? - ANSWER-9: 3 general public, 6 brokers
Who appoints, confirms TREC members? - ANSWER-Governor appoints, senate
approves
How many members on the Broker-Lawyer Committee? - ANSWER-13: 6
brokers, 6 lawyers, 1 public member
Who appoints Broker-Lawyer committee members? - ANSWER-Brokers/TREC,
Lawyers/Pres of State Bar, Public Member/Governor
Where is the Real Estate Advisory Committee? - ANSWER-Texas A & M
Who is on the Real Estate Advisory Committee? - ANSWER-10 members: 6
brokers, 3 public members, 1 ex TREC officio
How long does an individual have after an incident to file a complaint against a
license holder? - ANSWER-4 years
If your license is revoked by TREC, you may..... - ANSWER-appeal to the district
court
,Brokerage without a license is defined as a - ANSWER-Class A Misdemeanor
Penalties for Brokerage without a license - ANSWER-Fine up to $4,000;
imprisonment in county jail for not more than 1 year, or both
Additional penalties for brokerage without a license - ANSWER-Civil penalties of
up to three times the amount of money received
The Real Estate Recovery Account was created to - ANSWER-pay aggrieved
persons who suffered monetary losses due to unscrupulous acts of license holders.
If Real Estate Recovery Trust Account is below $1 million - ANSWER-Brokers
and licensees pay a pro rata share of $10 upon license renewal
If Real Estate Recovery Trust Account is above $3.5 million, - ANSWER-the
excess goes into the State's General Fund
When an amount if paid out of the Real Estate Recovery Trust Account on behalf
of a license holder, - ANSWER-the license of the person can be suspended or
revoked. It may never be recovered until the account is paid back with interest.
Maximum amount payable by the Real Estate Recovery Trust Account -
ANSWER-is $100,000 per license holder and $50,000 per transaction.
Does TREC resolve disputes between license holders? - ANSWER-No
YES License - ANSWER-attorneys receiving a commission
, YES License - ANSWER-Auctioneers involved in any part of a transaction, other
than calling
YES License - ANSWER-apartment locators
Yes License - ANSWER-real estate agents
Yes License - ANSWER-Business entities who receives commissions on behalf of
license holders
Yes License - ANSWER-Designated broker, officer, or manager of a Real Estate
Limited Liability Company
Yes License - ANSWER-a third party who collects rents from a single family
residence (property manager)
Yes License - ANSWER-Any business that engages in real estate brokerage must
have a licensed broker
EXEMPT License - ANSWER-attorneys receiving a fee but no commission split
EXEMPT License - ANSWER-court appointed receivers, trustees, guardians, and
sheriffs; anyone engaged in or carrying out foreclosure sales
EXEMPT License - ANSWER-Administrators and executors of a will
EXEMPT License - ANSWER-on-site apartment managers
