Real Estate Broker State Prep Exam 1 – 100 Questions & Verified Answers on TRELA, TREC, Trust Accounts & Contracts | Texas Broker Exam 2026

This document contains approximately 100 verified exam questions and answers for Real Estate Broker State Prep Exam 1 (2026), focused on Texas brokerage law, TRELA regulations, TREC rules, trust account management, agency disclosure, intermediary representation, and contract compliance. The material thoroughly reviews statutory requirements under the Texas Real Estate License Act (TRELA), including Recovery Trust Account limits, MCE compliance rules, branch office licensing, sponsorship termination procedures, and penalties for unlicensed activity. The content provides detailed coverage of brokerage operations and fiduciary responsibilities, including trust account handling and conversion, earnest money deposit timelines (by the close of the second business day after execution), commission sharing with out-of-state brokers, disclosure of representation under SB 489, intermediary requirements (written consent of both parties), IABS presentation standards (TREC wording, minimum 10-point font), and advertising rules requiring broker identification. It also examines disclosure requirements such as Seller’s Disclosure exemptions (e.g., foreclosure), Coastal Area Property notices, statutory tax district notices, and homestead limitations. Contract-related material includes TREC 1–4 Family Resale Contract provisions, protection periods, Seller’s Temporary Lease Addendum usage, contract addenda preparation authority, and procedures for earnest money disputes (15-day seller response timeline before release). Additional topics include mold remediation rules, Texas Veterans Land Board loan program exceptions, landlord security deposit accounting (30 days), commission rebates, referral restrictions involving unlicensed individuals, intermediary appointments, and liability scenarios under agency law. This study resource is especially relevant for Texas broker candidates, broker associates upgrading licenses, real estate instructors, and professionals preparing for the Texas Real Estate Broker licensing exam. It is also valuable for sales agents studying advanced brokerage law, trust accounting compliance, agency disclosure obligations, and TREC disciplinary procedures. The material aligns with Texas Real Estate License Act (TRELA) provisions, Texas Real Estate Commission (TREC) rules and promulgated contract forms, and state broker licensing exam standards. Keywords: TRELA recovery trust account limits, TREC investigation complaint timeline, unlicensed assistant penalties TREC, trust account conversion violation, earnest money deposit timeline, intermediary written consent requirement, IABS disclosure 10 point font, SB 489 representation disclosure first contact, branch office license requirement, sponsorship termination procedure TREC, seller disclosure foreclosure exemption, coastal area property notice Texas, Texas homestead foreclosure exception, statutory tax district notice responsibility, commission sharing out of state broker, mold remediation rules Texas, Veterans Land Board loan eligibility, seller temporary lease addendum use, TREC 1 4 family resale contract, security deposit accounting 30 days