TEXAS STATE PORTION REAL ESTATE VERIFIED EXAM QUESTIONS
AND ANSWERS - LATEST VERSION 2026
1. Who is responsible for any wrongs done by a salesperson while acting
within the scope of the agency agreement? ANSWER : The broker is
liable for the wrongdoing of his or her salespersons. The principal is
liable for any wrongs committed by the broker while acting within the
scope of the agency agreement.
2. What is the distinction between sales contracts and option contracts?
ANSWER : One characteristic of sales contracts is mutual obligation.
Option contracts lack mutual obligation. The buyer in an option contract
is not obligated to buy.
3. A listing agreement must contain: ANSWER : A standard street address
is sufficient.
4. If the commission investigates a complaint and determines that an
individual's real estate license should be suspended or revoked, the
licensee is entitled to a hearing before the commission within how many
days after the commission reaches its decision? ANSWER : A licensee
who faces suspension or revocation of their license is entitled to a hearing
within 30 days of the commission reaching their decision.
5. Which of the licensed entities does not fall under the regulatory authority
of the Texas Real Estate Commission? ANSWER : The Texas Appraiser
Licensing and Certification Board has jurisdiction over state licensed and
certified appraisers. In addition to licensing brokers and salespersons, the
Texas Real Estate Commission is responsible for licensing real estate
inspectors and for regulation of companies that sell and issue residential
service contracts ("home warranties"). (Article 65736, Vernon's Texas
Civil Statutes).
6. A licensee in Texas may not practice law, unless licensed and authorized
to do so in Texas. Practicing law includes altering contracts, or drawing
up: ANSWER : A deed, deed of trust, will, or other written instrument
that may transfer or affect the title to land.
7. What penalties may a licensee who breaches the agency relationship
face? ANSWER : A licensee who breaches the agency relationship may
, be sued for damages, termination of the contract, and/or non-payment of
the commission.
8. Undisclosed dual agency is: ANSWER : A violation of the TRELA.
9. What is the composition of the Broker-Lawyer Committee? ANSWER :
Six broker members are appointed by the Texas Real Estate Commission;
six attorney members are appointed by the President of the State Bar of
Texas. The appointees serve a term of six years with one-third of them
being appointed every two years.
10.A licensee must disclose any existing agency relationships to a new
client. This disclosure: ANSWER : May be done orally or in writing.
11.A broker may do which of the following for an individual without
actually representing the individual? ANSWER : A broker may obtain
financing, assist in locating a property, and prepare a contract or lease for
an individual without representing the individual.
12.A real estate licensee must notify the real estate program manager if:
ANSWER : A licensee must notify the real estate program manager
within 20 days of receiving any criminal complaint, information,
indictment, or conviction in which the licensee is named as a defendant;
or entry of a civil court order, verdict, or judgment, against the licensee in
any court of competent jurisdiction in which the subject matter therein
involves any real estate or business-related activity by the licensee.
13.Pamela, who lives in a suburb in which many homes are rented, decides
to open a rental agency in order to assist her friends in finding suitable
renters. Pamela's conduct is: ANSWER : Unacceptable because it
involves an activity for which a real estate license is required.
14.The sole broker of a brokerage firm has his or her real estate license
suspended for two years. What would happen to the licenses of the
salespersons affiliated with this broker? ANSWER : If the broker's
license is suspended or revoked, the salespersons' licenses are made
inactive and must be returned to the commission. A salesperson's license
may be made active when the salesperson is sponsored by a new broker.
15.Which agency is responsible for the contract forms used by Texas
licensees? ANSWER : The Texas Real Estate Commission.
16.A community property with rights of survivorship agreement must:
ANSWER : Doesn't need to go through probate, must be signed by both
spouses, must include the property description, be in writing, contain
, wording that makes evident the intent of survivorship, and be recorded in
the county courthouse.
17.Generally, the most important responsibility of an agent is to: ANSWER
: Represent the financial interests of the client.
18.Broker Bea recently entered into a listing contract with Seller Sally.
Broker Bea just learned that Sally is actually 17 years old and not
married. The listing contract is: ANSWER : Voidable at the option of the
minor.
19.Which of the following people would need to obtain a real estate license
if they were involved in a real estate activity? A. the executor of an estate
B. a court-appointed guardian C. a trustee of the bankruptcy court D. one
who sells lots in a mobile home park ANSWER : D. The sale of land/lots
is an act of brokerage and requires that one have a license if he or she is
not the owner of the lot. The other three ANSWER s are listed as people
who do not need a license in Section 3 of the Texas Real Estate License
Act.
20.An agency relationship may be terminated by: ANSWER : Expiration of
time, agreement, rescission, abandonment, or by the death of either party.
21.A property owner may claim a homeowner's exemption in Texas on a
residence that is both owned and occupied. The exemption reduces the
assessed value of the residence by: ANSWER : $7,000 dollars.
22.A broker must maintain a place of business in the state of Texas. If the
location changes, the broker has how long to notify the commission?
ANSWER : The broker must notify the commission of any change of
address within 10 days.
23.What happens when an applicant for licensure has failed to pass the
competency examination within the prescribed six-month period?
ANSWER : The applicant must submit a new application meeting all
current requirements.
24.The written disclosure of agency relationships is not required if the:
ANSWER : Proposed transaction is for a residential lease for not more
than one year and no sale is being considered. Disclosure is also not
required if the licensee meets with a party who is represented by another
licensee.
25.An agency relationship may be created in all of the following ways
except: A. by ratification. B. by estoppel. C. by apparent authority D. by
AND ANSWERS - LATEST VERSION 2026
1. Who is responsible for any wrongs done by a salesperson while acting
within the scope of the agency agreement? ANSWER : The broker is
liable for the wrongdoing of his or her salespersons. The principal is
liable for any wrongs committed by the broker while acting within the
scope of the agency agreement.
2. What is the distinction between sales contracts and option contracts?
ANSWER : One characteristic of sales contracts is mutual obligation.
Option contracts lack mutual obligation. The buyer in an option contract
is not obligated to buy.
3. A listing agreement must contain: ANSWER : A standard street address
is sufficient.
4. If the commission investigates a complaint and determines that an
individual's real estate license should be suspended or revoked, the
licensee is entitled to a hearing before the commission within how many
days after the commission reaches its decision? ANSWER : A licensee
who faces suspension or revocation of their license is entitled to a hearing
within 30 days of the commission reaching their decision.
5. Which of the licensed entities does not fall under the regulatory authority
of the Texas Real Estate Commission? ANSWER : The Texas Appraiser
Licensing and Certification Board has jurisdiction over state licensed and
certified appraisers. In addition to licensing brokers and salespersons, the
Texas Real Estate Commission is responsible for licensing real estate
inspectors and for regulation of companies that sell and issue residential
service contracts ("home warranties"). (Article 65736, Vernon's Texas
Civil Statutes).
6. A licensee in Texas may not practice law, unless licensed and authorized
to do so in Texas. Practicing law includes altering contracts, or drawing
up: ANSWER : A deed, deed of trust, will, or other written instrument
that may transfer or affect the title to land.
7. What penalties may a licensee who breaches the agency relationship
face? ANSWER : A licensee who breaches the agency relationship may
, be sued for damages, termination of the contract, and/or non-payment of
the commission.
8. Undisclosed dual agency is: ANSWER : A violation of the TRELA.
9. What is the composition of the Broker-Lawyer Committee? ANSWER :
Six broker members are appointed by the Texas Real Estate Commission;
six attorney members are appointed by the President of the State Bar of
Texas. The appointees serve a term of six years with one-third of them
being appointed every two years.
10.A licensee must disclose any existing agency relationships to a new
client. This disclosure: ANSWER : May be done orally or in writing.
11.A broker may do which of the following for an individual without
actually representing the individual? ANSWER : A broker may obtain
financing, assist in locating a property, and prepare a contract or lease for
an individual without representing the individual.
12.A real estate licensee must notify the real estate program manager if:
ANSWER : A licensee must notify the real estate program manager
within 20 days of receiving any criminal complaint, information,
indictment, or conviction in which the licensee is named as a defendant;
or entry of a civil court order, verdict, or judgment, against the licensee in
any court of competent jurisdiction in which the subject matter therein
involves any real estate or business-related activity by the licensee.
13.Pamela, who lives in a suburb in which many homes are rented, decides
to open a rental agency in order to assist her friends in finding suitable
renters. Pamela's conduct is: ANSWER : Unacceptable because it
involves an activity for which a real estate license is required.
14.The sole broker of a brokerage firm has his or her real estate license
suspended for two years. What would happen to the licenses of the
salespersons affiliated with this broker? ANSWER : If the broker's
license is suspended or revoked, the salespersons' licenses are made
inactive and must be returned to the commission. A salesperson's license
may be made active when the salesperson is sponsored by a new broker.
15.Which agency is responsible for the contract forms used by Texas
licensees? ANSWER : The Texas Real Estate Commission.
16.A community property with rights of survivorship agreement must:
ANSWER : Doesn't need to go through probate, must be signed by both
spouses, must include the property description, be in writing, contain
, wording that makes evident the intent of survivorship, and be recorded in
the county courthouse.
17.Generally, the most important responsibility of an agent is to: ANSWER
: Represent the financial interests of the client.
18.Broker Bea recently entered into a listing contract with Seller Sally.
Broker Bea just learned that Sally is actually 17 years old and not
married. The listing contract is: ANSWER : Voidable at the option of the
minor.
19.Which of the following people would need to obtain a real estate license
if they were involved in a real estate activity? A. the executor of an estate
B. a court-appointed guardian C. a trustee of the bankruptcy court D. one
who sells lots in a mobile home park ANSWER : D. The sale of land/lots
is an act of brokerage and requires that one have a license if he or she is
not the owner of the lot. The other three ANSWER s are listed as people
who do not need a license in Section 3 of the Texas Real Estate License
Act.
20.An agency relationship may be terminated by: ANSWER : Expiration of
time, agreement, rescission, abandonment, or by the death of either party.
21.A property owner may claim a homeowner's exemption in Texas on a
residence that is both owned and occupied. The exemption reduces the
assessed value of the residence by: ANSWER : $7,000 dollars.
22.A broker must maintain a place of business in the state of Texas. If the
location changes, the broker has how long to notify the commission?
ANSWER : The broker must notify the commission of any change of
address within 10 days.
23.What happens when an applicant for licensure has failed to pass the
competency examination within the prescribed six-month period?
ANSWER : The applicant must submit a new application meeting all
current requirements.
24.The written disclosure of agency relationships is not required if the:
ANSWER : Proposed transaction is for a residential lease for not more
than one year and no sale is being considered. Disclosure is also not
required if the licensee meets with a party who is represented by another
licensee.
25.An agency relationship may be created in all of the following ways
except: A. by ratification. B. by estoppel. C. by apparent authority D. by
