SAE Real Estate Brokerage Exam Texas
TREC Actual Exam 2026/2027 with
Detailed Rationales | Complete
Exam-Style Questions | Pass Guaranteed
– A+ Graded
Section 1: Agency Relationships & Duties (Questions 1–40)
Q1: A prospective buyer walks into your open house and immediately asks, "Will you show
me this property if I don't have my own agent?" Under TREC rules, what must you do before
showing the property?
A. Require the buyer to sign a Buyer Representation Agreement before entering
B. Provide the Information About Brokerage Services (IABS) notice and explain your agency
relationship [CORRECT]
C. Proceed with the showing but note in your files that the buyer is unrepresented
D. Refuse to show the property until the buyer obtains independent representation
Correct Answer: B
Rationale: The best answer is B. This is correct because under TREC rules, you must provide
the Information About Brokerage Services notice to all prospective buyers, tenants, sellers,
and landlords at the first substantive dialogue—before any confidential information is shared
or property is shown. Remember that in Texas, this isn't optional; it's a mandatory disclosure
that explains how agency relationships work in our state. The IABS notice helps consumers
understand whether you're working as their agent, the seller's agent, or in another capacity.
Q2: A listing agent's seller client mentions in passing that the roof has a small leak that
hasn't been repaired yet. The agent knows this is a material defect. What duty requires the
agent to ensure this disclosure makes it to potential buyers?
A. The duty of obedience to the seller's instructions
B. The duty of loyalty to maximize the seller's profit
,C. The duty to disclose material defects known to the agent [CORRECT]
D. The duty of confidentiality regarding the seller's personal matters
Correct Answer: C
Rationale: The best answer is C. This matches the TRELA requirement that agents must
disclose material defects they know about, even if the seller hasn't specifically instructed
them to do so. Remember that in Texas, material facts about the property's condition aren't
confidential—they must be disclosed. This duty overrides any request from the seller to keep
quiet about known problems, because failing to disclose could constitute misrepresentation
or fraud.
Q3: Which of the following scenarios properly creates an agency relationship under Texas
law?
A. A buyer tells a listing agent at an open house, "I really love this kitchen"
B. A seller shakes hands with a broker and says, "I'd like you to help me find a buyer for my
ranch"
C. A buyer signs a written Buyer Representation Agreement with a broker [CORRECT]
D. A tenant asks a property manager, "What time does the pool close?"
Correct Answer: C
Rationale: The best answer is C. This is correct because under TREC rules, agency
relationships with buyers must be established through a written agreement—typically the
Residential Buyer/Tenant Representation Agreement. While sellers can sometimes create
agency through oral agreements (though written is always preferred), buyer agency in Texas
generally requires a written contract to clearly establish the relationship and compensation
terms. Remember that in Texas, we want these relationships clearly documented to avoid
disputes later.
Q4: An intermediary relationship is established when a broker represents both the buyer and
seller in the same transaction. Under TREC rules, what is required for this arrangement to be
valid?
A. The broker must charge both parties identical commission rates
B. The broker must obtain the written consent of both parties to act as intermediary
[CORRECT]
C. The broker must assign different agents to each party without informing them
D. The broker must represent neither party's interests to maintain neutrality
Correct Answer: B
,Rationale: The best answer is B. This matches the TRELA requirement that intermediary
status requires written agreement from both parties before the dual representation begins.
Remember that in Texas, you cannot just decide to be an intermediary because both parties
are your clients—you need their informed consent in writing first. This ensures both sides
understand that the broker won't advocate for one party over the other and that confidential
information must be handled carefully.
Q5: A broker is acting as an intermediary with appointments (assigned agents). The buyer's
appointed agent learns that the buyer is willing to pay $50,000 more than the listed price.
What must the agent do with this information?
A. Share it with the seller's appointed agent to help negotiations
B. Keep it confidential from the seller and seller's agent [CORRECT]
C. Share it with the intermediary broker but no one else
D. Suggest the buyer offer the higher amount to ensure acceptance
Correct Answer: B
Rationale: The best answer is B. This is correct because under TREC intermediary rules with
appointments, each appointed agent owes full fiduciary duties—including confidentiality—to
their respective client. Remember that in Texas, when you're appointed to represent one party
in an intermediary transaction, you treat them as your sole client for that side, which means
their financial position stays confidential. The seller's agent doesn't get to know the buyer's
maximum willingness to pay, just as the buyer's agent doesn't learn the seller's bottom line.
Q6: A salesperson working under a broker receives a call from a friend who wants to list their
home. The salesperson should:
A. Take the listing directly and handle everything themselves
B. Refer the friend to another brokerage to avoid conflicts
C. Notify their sponsoring broker and follow the broker's procedures for handling the listing
[CORRECT]
D. Meet with the friend first to discuss terms before involving the broker
Correct Answer: C
Rationale: The best answer is C. This matches the TREC requirement that all listings belong
to the broker, not the individual salesperson. Remember that in Texas, sales agents cannot
contract directly with clients—all agency agreements are between the client and the
sponsoring broker. The salesperson needs to bring this opportunity to their broker
immediately and follow established office protocols, which typically include the broker
reviewing the listing agreement and ensuring proper documentation.
, Q7: Under TRELA, when does an agency relationship typically terminate?
A. Only when the closing occurs on a transaction
B. Upon completion of the purpose, mutual agreement, expiration of the agreement, or
destruction of the property [CORRECT]
C. When the client decides they no longer like the agent's personality
D. Automatically after 90 days regardless of contract terms
Correct Answer: B
Rationale: The best answer is B. This is correct because Texas law recognizes several
standard ways agency ends: the job gets done (closing), both sides agree to end it, the
contract term expires, or the subject property is destroyed. Remember that in Texas, agency
isn't something you can just walk away from without consequences—there are specific
termination events, and either party breaching the agreement could face legal action. The
relationship has legal weight and doesn't dissolve simply because someone gets annoyed.
Q8: A buyer's agent is showing properties to a client who mentions they're relocating because
of a job transfer. The agent's duty of confidentiality requires them to:
A. Keep this motivation confidential from all parties unless authorized to disclose [CORRECT]
B. Share it with listing agents to help negotiate better terms
C. Disclose it on the purchase contract as material information
D. Inform the buyer's employer to verify the transfer details
Correct Answer: A
Rationale: The best answer is A. This matches the TRELA requirement that agents must
protect their client's confidential information throughout the relationship and even after it
ends. Remember that in Texas, the fact that a buyer is relocating and potentially
time-pressured is exactly the kind of information that could harm them in negotiations if
disclosed. The listing agent doesn't need to know why the buyer is moving or how motivated
they are—that's privileged information the buyer's agent keeps under lock and key.
Q9: Which of the following is NOT a fiduciary duty owed by a Texas real estate agent to their
client?
A. Loyalty
B. Obedience
C. Guaranteed sale of the property [CORRECT]
D. Accounting for funds
TREC Actual Exam 2026/2027 with
Detailed Rationales | Complete
Exam-Style Questions | Pass Guaranteed
– A+ Graded
Section 1: Agency Relationships & Duties (Questions 1–40)
Q1: A prospective buyer walks into your open house and immediately asks, "Will you show
me this property if I don't have my own agent?" Under TREC rules, what must you do before
showing the property?
A. Require the buyer to sign a Buyer Representation Agreement before entering
B. Provide the Information About Brokerage Services (IABS) notice and explain your agency
relationship [CORRECT]
C. Proceed with the showing but note in your files that the buyer is unrepresented
D. Refuse to show the property until the buyer obtains independent representation
Correct Answer: B
Rationale: The best answer is B. This is correct because under TREC rules, you must provide
the Information About Brokerage Services notice to all prospective buyers, tenants, sellers,
and landlords at the first substantive dialogue—before any confidential information is shared
or property is shown. Remember that in Texas, this isn't optional; it's a mandatory disclosure
that explains how agency relationships work in our state. The IABS notice helps consumers
understand whether you're working as their agent, the seller's agent, or in another capacity.
Q2: A listing agent's seller client mentions in passing that the roof has a small leak that
hasn't been repaired yet. The agent knows this is a material defect. What duty requires the
agent to ensure this disclosure makes it to potential buyers?
A. The duty of obedience to the seller's instructions
B. The duty of loyalty to maximize the seller's profit
,C. The duty to disclose material defects known to the agent [CORRECT]
D. The duty of confidentiality regarding the seller's personal matters
Correct Answer: C
Rationale: The best answer is C. This matches the TRELA requirement that agents must
disclose material defects they know about, even if the seller hasn't specifically instructed
them to do so. Remember that in Texas, material facts about the property's condition aren't
confidential—they must be disclosed. This duty overrides any request from the seller to keep
quiet about known problems, because failing to disclose could constitute misrepresentation
or fraud.
Q3: Which of the following scenarios properly creates an agency relationship under Texas
law?
A. A buyer tells a listing agent at an open house, "I really love this kitchen"
B. A seller shakes hands with a broker and says, "I'd like you to help me find a buyer for my
ranch"
C. A buyer signs a written Buyer Representation Agreement with a broker [CORRECT]
D. A tenant asks a property manager, "What time does the pool close?"
Correct Answer: C
Rationale: The best answer is C. This is correct because under TREC rules, agency
relationships with buyers must be established through a written agreement—typically the
Residential Buyer/Tenant Representation Agreement. While sellers can sometimes create
agency through oral agreements (though written is always preferred), buyer agency in Texas
generally requires a written contract to clearly establish the relationship and compensation
terms. Remember that in Texas, we want these relationships clearly documented to avoid
disputes later.
Q4: An intermediary relationship is established when a broker represents both the buyer and
seller in the same transaction. Under TREC rules, what is required for this arrangement to be
valid?
A. The broker must charge both parties identical commission rates
B. The broker must obtain the written consent of both parties to act as intermediary
[CORRECT]
C. The broker must assign different agents to each party without informing them
D. The broker must represent neither party's interests to maintain neutrality
Correct Answer: B
,Rationale: The best answer is B. This matches the TRELA requirement that intermediary
status requires written agreement from both parties before the dual representation begins.
Remember that in Texas, you cannot just decide to be an intermediary because both parties
are your clients—you need their informed consent in writing first. This ensures both sides
understand that the broker won't advocate for one party over the other and that confidential
information must be handled carefully.
Q5: A broker is acting as an intermediary with appointments (assigned agents). The buyer's
appointed agent learns that the buyer is willing to pay $50,000 more than the listed price.
What must the agent do with this information?
A. Share it with the seller's appointed agent to help negotiations
B. Keep it confidential from the seller and seller's agent [CORRECT]
C. Share it with the intermediary broker but no one else
D. Suggest the buyer offer the higher amount to ensure acceptance
Correct Answer: B
Rationale: The best answer is B. This is correct because under TREC intermediary rules with
appointments, each appointed agent owes full fiduciary duties—including confidentiality—to
their respective client. Remember that in Texas, when you're appointed to represent one party
in an intermediary transaction, you treat them as your sole client for that side, which means
their financial position stays confidential. The seller's agent doesn't get to know the buyer's
maximum willingness to pay, just as the buyer's agent doesn't learn the seller's bottom line.
Q6: A salesperson working under a broker receives a call from a friend who wants to list their
home. The salesperson should:
A. Take the listing directly and handle everything themselves
B. Refer the friend to another brokerage to avoid conflicts
C. Notify their sponsoring broker and follow the broker's procedures for handling the listing
[CORRECT]
D. Meet with the friend first to discuss terms before involving the broker
Correct Answer: C
Rationale: The best answer is C. This matches the TREC requirement that all listings belong
to the broker, not the individual salesperson. Remember that in Texas, sales agents cannot
contract directly with clients—all agency agreements are between the client and the
sponsoring broker. The salesperson needs to bring this opportunity to their broker
immediately and follow established office protocols, which typically include the broker
reviewing the listing agreement and ensuring proper documentation.
, Q7: Under TRELA, when does an agency relationship typically terminate?
A. Only when the closing occurs on a transaction
B. Upon completion of the purpose, mutual agreement, expiration of the agreement, or
destruction of the property [CORRECT]
C. When the client decides they no longer like the agent's personality
D. Automatically after 90 days regardless of contract terms
Correct Answer: B
Rationale: The best answer is B. This is correct because Texas law recognizes several
standard ways agency ends: the job gets done (closing), both sides agree to end it, the
contract term expires, or the subject property is destroyed. Remember that in Texas, agency
isn't something you can just walk away from without consequences—there are specific
termination events, and either party breaching the agreement could face legal action. The
relationship has legal weight and doesn't dissolve simply because someone gets annoyed.
Q8: A buyer's agent is showing properties to a client who mentions they're relocating because
of a job transfer. The agent's duty of confidentiality requires them to:
A. Keep this motivation confidential from all parties unless authorized to disclose [CORRECT]
B. Share it with listing agents to help negotiate better terms
C. Disclose it on the purchase contract as material information
D. Inform the buyer's employer to verify the transfer details
Correct Answer: A
Rationale: The best answer is A. This matches the TRELA requirement that agents must
protect their client's confidential information throughout the relationship and even after it
ends. Remember that in Texas, the fact that a buyer is relocating and potentially
time-pressured is exactly the kind of information that could harm them in negotiations if
disclosed. The listing agent doesn't need to know why the buyer is moving or how motivated
they are—that's privileged information the buyer's agent keeps under lock and key.
Q9: Which of the following is NOT a fiduciary duty owed by a Texas real estate agent to their
client?
A. Loyalty
B. Obedience
C. Guaranteed sale of the property [CORRECT]
D. Accounting for funds
