Texas Real Estate Law Exam Practice
Questions And Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A
Instant Download Pdf
1. Which of the following is required for a real estate broker in Texas to legally
operate?
A. High school diploma only
B. Active real estate license issued by the Texas Real Estate Commission (TREC)
C. College degree in business
D. Registration with the local city council
Rationale: In Texas, all brokers must hold an active license issued by TREC to
engage in real estate brokerage activities.
2. What is the main purpose of the Texas Real Estate Commission (TREC)?
A. To sell properties directly to consumers
B. To determine property taxes
C. To regulate and license real estate professionals in Texas
D. To appraise homes
Rationale: TREC oversees licensing, education, and enforcement for brokers and
sales agents to ensure compliance with Texas real estate law.
,3. How long must a broker maintain records of transactions in Texas?
A. 1 year
B. 2 years
C. 4 years
D. 7 years
Rationale: Texas law requires brokers to maintain transaction records for 4 years
from the date of the transaction.
4. Which type of listing gives the broker the exclusive right to earn a commission
regardless of who sells the property?
A. Open listing
B. Net listing
C. Exclusive right-to-sell listing
D. Exclusive agency listing
Rationale: An exclusive right-to-sell listing guarantees the broker a commission
even if the owner sells the property themselves.
5. What is the minimum age requirement for a real estate salesperson license in
Texas?
A. 16
B. 17
C. 18
D. 21
Rationale: Applicants must be at least 18 years old to qualify for a real estate
license in Texas.
6. Which of the following constitutes a violation of the Texas Deceptive Trade
Practices Act (DTPA)?
,A. Honest opinion about a property
B. Misrepresenting property conditions
C. Following all disclosure laws
D. B only
Rationale: The DTPA protects consumers from false, misleading, or deceptive
acts; misrepresentation of property conditions is a clear violation.
7. What is a “fiduciary duty” in real estate?
A. Responsibility to the public at large
B. Obligation of a real estate agent to act in the best interest of their client
C. Duty to report to the Texas Legislature
D. Legal requirement to pay property taxes
Rationale: Fiduciary duties require agents to act with loyalty, obedience,
disclosure, confidentiality, accounting, and reasonable care toward their client.
8. Which of the following is a material fact that must be disclosed to a buyer in
Texas?
A. Seller’s future plans
B. Neighborhood opinions
C. Known structural defects
D. Seller’s personal preferences
Rationale: Material facts are conditions or defects that could affect a buyer’s
decision; known structural defects are required disclosures.
9. The maximum amount that can be paid from the Real Estate Recovery Trust
Account per licensee is:
A. $25,000
B. $50,000
, C. $75,000
D. $100,000
Rationale: Texas law caps payments from the Recovery Trust Account at $50,000
per licensee for claims against their license.
10. What is the statute of limitations for filing a civil suit under the Texas
Deceptive Trade Practices Act?
A. 1 year
B. 2 years
C. 2 years from discovery
D. 5 years
Rationale: Consumers have 2 years from the date they discover the violation to
file a DTPA claim.
11. Which of the following actions can result in TREC disciplinary action?
A. Failing to supervise sales agents
B. Commingling client funds
C. Misrepresentation
D. All of the above
Rationale: TREC can sanction license holders for violations including failure to
supervise, mishandling funds, or misrepresentation.
12. An “option” in real estate is:
A. The right to buy property at a predetermined price within a specific period
B. A lease agreement
C. A standard purchase contract
D. A financing arrangement
Questions And Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A
Instant Download Pdf
1. Which of the following is required for a real estate broker in Texas to legally
operate?
A. High school diploma only
B. Active real estate license issued by the Texas Real Estate Commission (TREC)
C. College degree in business
D. Registration with the local city council
Rationale: In Texas, all brokers must hold an active license issued by TREC to
engage in real estate brokerage activities.
2. What is the main purpose of the Texas Real Estate Commission (TREC)?
A. To sell properties directly to consumers
B. To determine property taxes
C. To regulate and license real estate professionals in Texas
D. To appraise homes
Rationale: TREC oversees licensing, education, and enforcement for brokers and
sales agents to ensure compliance with Texas real estate law.
,3. How long must a broker maintain records of transactions in Texas?
A. 1 year
B. 2 years
C. 4 years
D. 7 years
Rationale: Texas law requires brokers to maintain transaction records for 4 years
from the date of the transaction.
4. Which type of listing gives the broker the exclusive right to earn a commission
regardless of who sells the property?
A. Open listing
B. Net listing
C. Exclusive right-to-sell listing
D. Exclusive agency listing
Rationale: An exclusive right-to-sell listing guarantees the broker a commission
even if the owner sells the property themselves.
5. What is the minimum age requirement for a real estate salesperson license in
Texas?
A. 16
B. 17
C. 18
D. 21
Rationale: Applicants must be at least 18 years old to qualify for a real estate
license in Texas.
6. Which of the following constitutes a violation of the Texas Deceptive Trade
Practices Act (DTPA)?
,A. Honest opinion about a property
B. Misrepresenting property conditions
C. Following all disclosure laws
D. B only
Rationale: The DTPA protects consumers from false, misleading, or deceptive
acts; misrepresentation of property conditions is a clear violation.
7. What is a “fiduciary duty” in real estate?
A. Responsibility to the public at large
B. Obligation of a real estate agent to act in the best interest of their client
C. Duty to report to the Texas Legislature
D. Legal requirement to pay property taxes
Rationale: Fiduciary duties require agents to act with loyalty, obedience,
disclosure, confidentiality, accounting, and reasonable care toward their client.
8. Which of the following is a material fact that must be disclosed to a buyer in
Texas?
A. Seller’s future plans
B. Neighborhood opinions
C. Known structural defects
D. Seller’s personal preferences
Rationale: Material facts are conditions or defects that could affect a buyer’s
decision; known structural defects are required disclosures.
9. The maximum amount that can be paid from the Real Estate Recovery Trust
Account per licensee is:
A. $25,000
B. $50,000
, C. $75,000
D. $100,000
Rationale: Texas law caps payments from the Recovery Trust Account at $50,000
per licensee for claims against their license.
10. What is the statute of limitations for filing a civil suit under the Texas
Deceptive Trade Practices Act?
A. 1 year
B. 2 years
C. 2 years from discovery
D. 5 years
Rationale: Consumers have 2 years from the date they discover the violation to
file a DTPA claim.
11. Which of the following actions can result in TREC disciplinary action?
A. Failing to supervise sales agents
B. Commingling client funds
C. Misrepresentation
D. All of the above
Rationale: TREC can sanction license holders for violations including failure to
supervise, mishandling funds, or misrepresentation.
12. An “option” in real estate is:
A. The right to buy property at a predetermined price within a specific period
B. A lease agreement
C. A standard purchase contract
D. A financing arrangement
