TEXAS STATE PORTION FINAL EXAM PREP 2026/2027 |
ACCURATE QUESTIONS + VERIFIED ANSWERS
GUARANTEED PASS
1. Q: What does TREC stand for? ANSWER Texas Real Estate Commission
2. Q: How many members serve on TREC? ANSWER 9 members (6 real estate
brokers/agents, 3 public members)
3. Q: Who appoints TREC members? ANSWER The Governor, with Senate
confirmation
4. Q: How long are TREC member terms? ANSWER 6 years
5. Q: What is the primary purpose of TREC? ANSWER To protect the public
through licensing and regulation of real estate professionals
6. Q: Under TREC rules, how long must a broker keep transaction records?
ANSWER 4 years
7. Q: What is the minimum age to obtain a Texas real estate license?
ANSWER 18 years old
8. Q: What education is required before taking the Texas sales agent exam?
ANSWER 180 hours of qualifying real estate courses
9. Q: How many hours of SAE (Sales Agent Apprentice Education) must a new
licensee complete? ANSWER 98 hours within the first two years
10. Q: What is the renewal period for a Texas real estate sales agent license?
ANSWER Every 2 years
11. Q: How many MCE/CE hours are required at each renewal after the first
renewal? ANSWER 18 hours
12. Q: What is the mandatory legal update course requirement in Texas CE?
ANSWER 4 hours of Legal Update I and 4 hours of Legal Update II
13. Q: Can a Texas real estate licensee pay a referral fee to an unlicensed
person? ANSWER No
,14. Q: What must a sales agent do to become a broker in Texas? ANSWER
Have at least 4 years of active experience as a licensee in the 5 years preceding
application and complete 270 hours of qualifying education
15. Q: What is an "inactive" license in Texas? ANSWER A license that is not
associated with a sponsoring broker; the licensee cannot practice real estate
16. Q: Can a Texas sales agent work for more than one broker? ANSWER No,
a sales agent may only be sponsored by one broker at a time
17. Q: What is TRELA? ANSWER Texas Real Estate License Act — the law
governing real estate licensing in Texas
18. Q: Who enforces TRELA? ANSWER TREC
19. Q: What is a "designated broker"? ANSWER The licensed broker who is
responsible for all acts of the business entity and its sponsored licensees
20. Q: Can a business entity hold a real estate broker license in Texas?
ANSWER Yes, but it must have a designated broker who is an active individual
broker
TEXAS REAL ESTATE RECOVERY TRUST ACCOUNT
21. Q: What is the Texas Real Estate Recovery Trust Account? ANSWER A
fund to reimburse members of the public who suffer actual damages caused by
a licensed agent's fraudulent acts
22. Q: What is the maximum payment from the Recovery Trust Account per
transaction? ANSWER $125,000
23. Q: What is the maximum total Recovery Trust Account payout against a
single licensee? ANSWER $250,000
24. Q: What happens to a licensee's license if a payment is made from the
Recovery Trust Account on their behalf? ANSWER The license is automatically
revoked
25. Q: Can a licensee regain their license after a Recovery Trust Account
payment? ANSWER Yes, but only after repaying the full amount plus interest
AGENCY IN TEXAS
, 26. Q: What is an "intermediary" in Texas real estate? ANSWER A broker who
represents both the buyer and seller in the same transaction with written
consent from both parties
27. Q: What must a broker obtain before acting as an intermediary? ANSWER
Written consent from both the buyer and the seller
28. Q: What is the required disclosure form when first meeting with a
potential buyer or seller? ANSWER Information About Brokerage Services
(IABS) notice
29. Q: When must the IABS be provided? ANSWER At the first substantive
dialogue with a prospective client
30. Q: What is a "fiduciary" duty? ANSWER A duty of trust and confidence
owed to a client, including loyalty, obedience, disclosure, confidentiality,
accounting, and reasonable care
31. Q: In Texas, who does a buyer's agent represent? ANSWER The buyer
32. Q: What is a subagent in Texas? ANSWER An agent who works for the
listing broker and represents the seller, even when assisting a buyer
33. Q: Is subagency common in Texas today? ANSWER No, it is rarely used
due to liability concerns
34. Q: What is the difference between a client and a customer in Texas real
estate? ANSWER A client has a formal agency agreement; a customer receives
limited non-fiduciary assistance
35. Q: Can a Texas sales agent represent a buyer without a written
agreement? ANSWER They may work with a buyer without a written
agreement, but written buyer representation agreements are encouraged
CONTRACTS IN TEXAS
36. Q: What is the primary residential contract form used in Texas? ANSWER
One to Four Family Residential Contract (Resale) — promulgated by TREC
37. Q: Who promulgates contract forms in Texas? ANSWER TREC (Texas Real
Estate Commission)
ACCURATE QUESTIONS + VERIFIED ANSWERS
GUARANTEED PASS
1. Q: What does TREC stand for? ANSWER Texas Real Estate Commission
2. Q: How many members serve on TREC? ANSWER 9 members (6 real estate
brokers/agents, 3 public members)
3. Q: Who appoints TREC members? ANSWER The Governor, with Senate
confirmation
4. Q: How long are TREC member terms? ANSWER 6 years
5. Q: What is the primary purpose of TREC? ANSWER To protect the public
through licensing and regulation of real estate professionals
6. Q: Under TREC rules, how long must a broker keep transaction records?
ANSWER 4 years
7. Q: What is the minimum age to obtain a Texas real estate license?
ANSWER 18 years old
8. Q: What education is required before taking the Texas sales agent exam?
ANSWER 180 hours of qualifying real estate courses
9. Q: How many hours of SAE (Sales Agent Apprentice Education) must a new
licensee complete? ANSWER 98 hours within the first two years
10. Q: What is the renewal period for a Texas real estate sales agent license?
ANSWER Every 2 years
11. Q: How many MCE/CE hours are required at each renewal after the first
renewal? ANSWER 18 hours
12. Q: What is the mandatory legal update course requirement in Texas CE?
ANSWER 4 hours of Legal Update I and 4 hours of Legal Update II
13. Q: Can a Texas real estate licensee pay a referral fee to an unlicensed
person? ANSWER No
,14. Q: What must a sales agent do to become a broker in Texas? ANSWER
Have at least 4 years of active experience as a licensee in the 5 years preceding
application and complete 270 hours of qualifying education
15. Q: What is an "inactive" license in Texas? ANSWER A license that is not
associated with a sponsoring broker; the licensee cannot practice real estate
16. Q: Can a Texas sales agent work for more than one broker? ANSWER No,
a sales agent may only be sponsored by one broker at a time
17. Q: What is TRELA? ANSWER Texas Real Estate License Act — the law
governing real estate licensing in Texas
18. Q: Who enforces TRELA? ANSWER TREC
19. Q: What is a "designated broker"? ANSWER The licensed broker who is
responsible for all acts of the business entity and its sponsored licensees
20. Q: Can a business entity hold a real estate broker license in Texas?
ANSWER Yes, but it must have a designated broker who is an active individual
broker
TEXAS REAL ESTATE RECOVERY TRUST ACCOUNT
21. Q: What is the Texas Real Estate Recovery Trust Account? ANSWER A
fund to reimburse members of the public who suffer actual damages caused by
a licensed agent's fraudulent acts
22. Q: What is the maximum payment from the Recovery Trust Account per
transaction? ANSWER $125,000
23. Q: What is the maximum total Recovery Trust Account payout against a
single licensee? ANSWER $250,000
24. Q: What happens to a licensee's license if a payment is made from the
Recovery Trust Account on their behalf? ANSWER The license is automatically
revoked
25. Q: Can a licensee regain their license after a Recovery Trust Account
payment? ANSWER Yes, but only after repaying the full amount plus interest
AGENCY IN TEXAS
, 26. Q: What is an "intermediary" in Texas real estate? ANSWER A broker who
represents both the buyer and seller in the same transaction with written
consent from both parties
27. Q: What must a broker obtain before acting as an intermediary? ANSWER
Written consent from both the buyer and the seller
28. Q: What is the required disclosure form when first meeting with a
potential buyer or seller? ANSWER Information About Brokerage Services
(IABS) notice
29. Q: When must the IABS be provided? ANSWER At the first substantive
dialogue with a prospective client
30. Q: What is a "fiduciary" duty? ANSWER A duty of trust and confidence
owed to a client, including loyalty, obedience, disclosure, confidentiality,
accounting, and reasonable care
31. Q: In Texas, who does a buyer's agent represent? ANSWER The buyer
32. Q: What is a subagent in Texas? ANSWER An agent who works for the
listing broker and represents the seller, even when assisting a buyer
33. Q: Is subagency common in Texas today? ANSWER No, it is rarely used
due to liability concerns
34. Q: What is the difference between a client and a customer in Texas real
estate? ANSWER A client has a formal agency agreement; a customer receives
limited non-fiduciary assistance
35. Q: Can a Texas sales agent represent a buyer without a written
agreement? ANSWER They may work with a buyer without a written
agreement, but written buyer representation agreements are encouraged
CONTRACTS IN TEXAS
36. Q: What is the primary residential contract form used in Texas? ANSWER
One to Four Family Residential Contract (Resale) — promulgated by TREC
37. Q: Who promulgates contract forms in Texas? ANSWER TREC (Texas Real
Estate Commission)
