Texas Real Estate SAE Brokerage Exam, Texas
Real Estate Commission (TREC), 2026/2027 –
150+ Practice Questions with Verified
Answers
SECTION 1: COMMISSION DUTIES AND POWERS (Questions 1–25)
Q1. When was the Texas Real Estate Commission (TREC) created?
A) 1929
B) 1939
C) 1949
D) 1959
Answer: B
Rationale: TREC was created in 1939 to regulate real estate practices in
Texas and protect consumers .
Q2. How many members serve on the Texas Real Estate Commission?
A) 6 members
B) 7 members
C) 9 members
D) 11 members
Answer: C
Rationale: TREC has 9 members: 6 licensed real estate brokers and 3
members representing the general public .
Q3. Who appoints the members of TREC?
A) The Texas State Senate
B) The Texas House of Representatives
C) The Governor of Texas
D) The Attorney General
Answer: C
Rationale: The Governor of Texas appoints TREC members with advice and
consent from the Senate .
,Q4. What does TREC have the authority to do?
A) Set commission rates for real estate transactions
B) Make rules and regulations governing real estate practices
C) Determine property tax assessments
D) License home appraisers only
Answer: B
Rationale: TREC has the authority to make rules and regulations that govern
real estate practices in Texas .
Q5. What happens if a license holder fails to respond to a TREC subpoena?
A) The license holder receives a warning
B) TREC can file a suit with the Attorney General
C) The license is automatically suspended
D) Nothing happens
Answer: B
Rationale: If a license holder fails to respond to a TREC subpoena, TREC can
file a suit with the Attorney General to enforce compliance .
Q6. Where are TREC hearings typically held?
A) In the county where the license holder resides
B) In Austin, Texas
C) In the county where the incident occurred
D) In the nearest major city
Answer: B
Rationale: TREC hearings are held in Austin, Texas, unless a license holder
requests the hearing be held in their county .
Q7. How long does an individual have to file a complaint with TREC?
A) 1 year from the effective date of the contract
B) 2 years from the date of the incident
C) 4 years from the effective date of the contract or date of incident
D) 5 years from closing
,Answer: C
Rationale: An individual has 4 years from the effective date of the contract
or the date of the incident to file a complaint with TREC .
Q8. What is the penalty for a person engaging in real estate brokerage
without a license?
A) Class C misdemeanor
B) Class A misdemeanor with a fine not more than $4,000 or imprisonment
C) $500 fine only
D) No penalty if no harm occurred
Answer: B
Rationale: Engaging in real estate brokerage without a license is a Class A
misdemeanor, subject to a fine of not more than $4,000 or imprisonment in
the county jail. The broker who profited is liable for 3 times the amount
received .
Q9. The Texas Appraiser Licensing and Certification Board (TALCB) regulates:
A) Real estate brokers
B) Real estate sales agents
C) Real estate appraisers
D) Property managers
Answer: C
Rationale: TALCB regulates real estate appraisers and administers the Texas
Appraiser Licensing and Certification Act .
Q10. How many members serve on the TALCB?
A) 6 members
B) 7 members
C) 9 members
D) 11 members
Answer: C
Rationale: TALCB has 9 members: 4 licensed real estate appraisers, 4
members of the general public appointed by the governor, and the executive
secretary of the Texas Veterans Land Board .
, Q11. What can a license holder do if their license is revoked by TREC?
A) Nothing; the decision is final
B) Appeal the decision to the district court
C) Automatically get a new license after 30 days
D) Request a hearing with the Governor
Answer: B
Rationale: If TREC revokes a license, the license holder can appeal the
decision to the district court .
Q12. What is the penalty for violation of the License Act?
A) $1,000 per day
B) $5,000 per day for violation of the license act by any person
C) $10,000 per occurrence
D) License suspension only
Answer: B
Rationale: The penalty for violation of the License Act is $5,000 per day for
violation of the license act by any person, licensed or unlicensed .
Q13. Which bill requires disclosure of representation at first contact with
another party?
A) Senate Bill 489
B) Senate Bill 1968
C) House Bill 100
D) House Bill 200
Answer: A
Rationale: Senate Bill 489 requires license holders to disclose representation
at first contact with another party. Oral or written disclosure is allowed .
Q14. What is the primary mission of TREC?
A) To promote real estate sales
B) To regulate real estate practices and protect the public
C) To provide loans to buyers
D) To set property tax rates
Real Estate Commission (TREC), 2026/2027 –
150+ Practice Questions with Verified
Answers
SECTION 1: COMMISSION DUTIES AND POWERS (Questions 1–25)
Q1. When was the Texas Real Estate Commission (TREC) created?
A) 1929
B) 1939
C) 1949
D) 1959
Answer: B
Rationale: TREC was created in 1939 to regulate real estate practices in
Texas and protect consumers .
Q2. How many members serve on the Texas Real Estate Commission?
A) 6 members
B) 7 members
C) 9 members
D) 11 members
Answer: C
Rationale: TREC has 9 members: 6 licensed real estate brokers and 3
members representing the general public .
Q3. Who appoints the members of TREC?
A) The Texas State Senate
B) The Texas House of Representatives
C) The Governor of Texas
D) The Attorney General
Answer: C
Rationale: The Governor of Texas appoints TREC members with advice and
consent from the Senate .
,Q4. What does TREC have the authority to do?
A) Set commission rates for real estate transactions
B) Make rules and regulations governing real estate practices
C) Determine property tax assessments
D) License home appraisers only
Answer: B
Rationale: TREC has the authority to make rules and regulations that govern
real estate practices in Texas .
Q5. What happens if a license holder fails to respond to a TREC subpoena?
A) The license holder receives a warning
B) TREC can file a suit with the Attorney General
C) The license is automatically suspended
D) Nothing happens
Answer: B
Rationale: If a license holder fails to respond to a TREC subpoena, TREC can
file a suit with the Attorney General to enforce compliance .
Q6. Where are TREC hearings typically held?
A) In the county where the license holder resides
B) In Austin, Texas
C) In the county where the incident occurred
D) In the nearest major city
Answer: B
Rationale: TREC hearings are held in Austin, Texas, unless a license holder
requests the hearing be held in their county .
Q7. How long does an individual have to file a complaint with TREC?
A) 1 year from the effective date of the contract
B) 2 years from the date of the incident
C) 4 years from the effective date of the contract or date of incident
D) 5 years from closing
,Answer: C
Rationale: An individual has 4 years from the effective date of the contract
or the date of the incident to file a complaint with TREC .
Q8. What is the penalty for a person engaging in real estate brokerage
without a license?
A) Class C misdemeanor
B) Class A misdemeanor with a fine not more than $4,000 or imprisonment
C) $500 fine only
D) No penalty if no harm occurred
Answer: B
Rationale: Engaging in real estate brokerage without a license is a Class A
misdemeanor, subject to a fine of not more than $4,000 or imprisonment in
the county jail. The broker who profited is liable for 3 times the amount
received .
Q9. The Texas Appraiser Licensing and Certification Board (TALCB) regulates:
A) Real estate brokers
B) Real estate sales agents
C) Real estate appraisers
D) Property managers
Answer: C
Rationale: TALCB regulates real estate appraisers and administers the Texas
Appraiser Licensing and Certification Act .
Q10. How many members serve on the TALCB?
A) 6 members
B) 7 members
C) 9 members
D) 11 members
Answer: C
Rationale: TALCB has 9 members: 4 licensed real estate appraisers, 4
members of the general public appointed by the governor, and the executive
secretary of the Texas Veterans Land Board .
, Q11. What can a license holder do if their license is revoked by TREC?
A) Nothing; the decision is final
B) Appeal the decision to the district court
C) Automatically get a new license after 30 days
D) Request a hearing with the Governor
Answer: B
Rationale: If TREC revokes a license, the license holder can appeal the
decision to the district court .
Q12. What is the penalty for violation of the License Act?
A) $1,000 per day
B) $5,000 per day for violation of the license act by any person
C) $10,000 per occurrence
D) License suspension only
Answer: B
Rationale: The penalty for violation of the License Act is $5,000 per day for
violation of the license act by any person, licensed or unlicensed .
Q13. Which bill requires disclosure of representation at first contact with
another party?
A) Senate Bill 489
B) Senate Bill 1968
C) House Bill 100
D) House Bill 200
Answer: A
Rationale: Senate Bill 489 requires license holders to disclose representation
at first contact with another party. Oral or written disclosure is allowed .
Q14. What is the primary mission of TREC?
A) To promote real estate sales
B) To regulate real estate practices and protect the public
C) To provide loans to buyers
D) To set property tax rates
