Texas Real Estate SAE Brokerage
Supplemental Acknowledgment Examination,
Texas Real Estate Commission (TREC),
2026/2027 – 85-Question Licensing
Assessment
Part 1: Texas Real Estate Commission (TREC) – Authority,
Composition, and Jurisdiction (Q1–Q10)
Q1. The Texas Real Estate Commission (TREC) is composed of how
many members, and how are they selected?
A. 6 members, all appointed by the Texas Senate
B. 9 members, appointed by the Governor with advice and consent of the
Senate
C. 12 members, elected by the public
D. 15 members, appointed by the Real Estate Center at Texas A&M University
Answer: B
Rationale: TREC is composed of 9 members appointed by the Governor with
the advice and consent of the Senate. Six members must be licensed real
estate brokers, and three members must represent the general public .
Q2. TREC was created in 1949. Which of the following powers does
TREC possess?
A. Authority to make rules and regulations governing real estate license
holders
B. Power to subpoena books, records, and witnesses
C. Authority to suspend or revoke real estate licenses
D. All of the above
Answer: D
Rationale: TREC has broad regulatory authority under the Texas Real Estate
License Act. It can adopt administrative rules, conduct investigations,
subpoena records, and impose disciplinary actions including suspension or
revocation of licenses .
,Q3. If a license holder fails to respond to a TREC subpoena, which
entity may TREC file suit with?
A. The local county sheriff
B. The Texas Attorney General
C. The local district attorney
D. The FBI
Answer: B
Rationale: If a license holder fails to comply with a TREC subpoena, the
Commission has the authority to seek enforcement through the Texas
Attorney General's office . The Attorney General can file suit to compel
compliance.
Q4. Which advisory committee writes and updates the promulgated
contract forms that license holders must use in certain
transactions?
A. The TREC Enforcement Committee
B. The Broker-Lawyer Committee
C. The Texas Real Estate Advisory Board
D. The Texas State Bar Real Estate Section
Answer: B
Rationale: The Broker-Lawyer Committee consists of 13 members: six
brokers chosen by TREC, six lawyers chosen by the President of the State Bar
of Texas, and one public member chosen by the governor. This committee
writes and reviews promulgated contract forms .
Q5. An individual has how many years from the effective date of a
real estate contract to file a complaint with TREC?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Answer: C
,Rationale: Under Texas law, an individual has four years from the effective
date of a contract to file a complaint with TREC regarding a real estate
transaction . This is the statute of limitations period for TREC administrative
complaints.
Q6. TREC plays no part in which of the following?
A. Suspending a license holder's license for unethical conduct
B. Resolving private disputes between license holders
C. Approving continuing education course providers
D. Investigating complaints against license holders
Answer: B
Rationale: TREC's authority is administrative and regulatory. It can take
disciplinary action for violations of license law, but it does not resolve private
contractual disputes or fee disputes between license holders. Such matters
are handled through civil courts .
Q7. What is the maximum fine for a Class A misdemeanor conviction
for engaging in real estate brokerage without a license?
A. $1,000
B. $2,000
C. $4,000
D. $10,000
Answer: C
Rationale: Engaging in real estate brokerage activity without a valid license
is a Class A misdemeanor, punishable by a fine of up to $4,000 and/or
imprisonment in county jail . This provision underscores the seriousness of
unlicensed activity.
Q8. If a license holder is convicted of a felony or a criminal offense
involving fraud, TREC has the authority to:
A. Issue a warning only
B. Suspend or revoke the license holder's license
C. Refer the matter to the Texas Attorney General for criminal prosecution
D. Assess a fine of $100,000
, Answer: B
Rationale: Section 1101.652(a)(1) of the License Act gives TREC authority to
suspend or revoke a license holder that has entered a plea of guilty, nolo
contendere, or has been convicted of a felony or any criminal offense that
involves fraud. The Commission does not have authority to revoke for mere
charges; a conviction or plea is required .
Q9. What is the Real Estate Recovery Trust Account?
A. An account used by brokers to deposit earnest money
B. An account that pays aggrieved persons who suffered monetary loss due
to the unscrupulous acts of a license holder
C. An account used to pay TREC operating expenses
D. An account that provides loans to new brokers
Answer: B
Rationale: The Real Estate Recovery Trust Account (also known as the Real
Estate Recovery Account) is a fund administered by TREC that provides
compensation to individuals who have suffered financial loss due to specific
wrongful acts (fraud, misrepresentation, conversion of trust funds)
committed by a licensed real estate agent or broker .
Q10. State law limits the maximum payment from the Real Estate
Recovery Trust Account to:
A. $50,000 per license holder and $100,000 per transaction
B. $100,000 per license holder and $50,000 per transaction
C. $25,000 per license holder and $50,000 per transaction
D. $100,000 per license holder and $100,000 per transaction
Answer: B
Rationale: The current statutory limits are $100,000 per license holder (in
the aggregate) and $50,000 per transaction. These limits are periodically
adjusted by the legislature and represent the maximum amount any single
aggrieved person may recover .
Part 2: Licensing Requirements and Eligibility (Q11–Q20)
Supplemental Acknowledgment Examination,
Texas Real Estate Commission (TREC),
2026/2027 – 85-Question Licensing
Assessment
Part 1: Texas Real Estate Commission (TREC) – Authority,
Composition, and Jurisdiction (Q1–Q10)
Q1. The Texas Real Estate Commission (TREC) is composed of how
many members, and how are they selected?
A. 6 members, all appointed by the Texas Senate
B. 9 members, appointed by the Governor with advice and consent of the
Senate
C. 12 members, elected by the public
D. 15 members, appointed by the Real Estate Center at Texas A&M University
Answer: B
Rationale: TREC is composed of 9 members appointed by the Governor with
the advice and consent of the Senate. Six members must be licensed real
estate brokers, and three members must represent the general public .
Q2. TREC was created in 1949. Which of the following powers does
TREC possess?
A. Authority to make rules and regulations governing real estate license
holders
B. Power to subpoena books, records, and witnesses
C. Authority to suspend or revoke real estate licenses
D. All of the above
Answer: D
Rationale: TREC has broad regulatory authority under the Texas Real Estate
License Act. It can adopt administrative rules, conduct investigations,
subpoena records, and impose disciplinary actions including suspension or
revocation of licenses .
,Q3. If a license holder fails to respond to a TREC subpoena, which
entity may TREC file suit with?
A. The local county sheriff
B. The Texas Attorney General
C. The local district attorney
D. The FBI
Answer: B
Rationale: If a license holder fails to comply with a TREC subpoena, the
Commission has the authority to seek enforcement through the Texas
Attorney General's office . The Attorney General can file suit to compel
compliance.
Q4. Which advisory committee writes and updates the promulgated
contract forms that license holders must use in certain
transactions?
A. The TREC Enforcement Committee
B. The Broker-Lawyer Committee
C. The Texas Real Estate Advisory Board
D. The Texas State Bar Real Estate Section
Answer: B
Rationale: The Broker-Lawyer Committee consists of 13 members: six
brokers chosen by TREC, six lawyers chosen by the President of the State Bar
of Texas, and one public member chosen by the governor. This committee
writes and reviews promulgated contract forms .
Q5. An individual has how many years from the effective date of a
real estate contract to file a complaint with TREC?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Answer: C
,Rationale: Under Texas law, an individual has four years from the effective
date of a contract to file a complaint with TREC regarding a real estate
transaction . This is the statute of limitations period for TREC administrative
complaints.
Q6. TREC plays no part in which of the following?
A. Suspending a license holder's license for unethical conduct
B. Resolving private disputes between license holders
C. Approving continuing education course providers
D. Investigating complaints against license holders
Answer: B
Rationale: TREC's authority is administrative and regulatory. It can take
disciplinary action for violations of license law, but it does not resolve private
contractual disputes or fee disputes between license holders. Such matters
are handled through civil courts .
Q7. What is the maximum fine for a Class A misdemeanor conviction
for engaging in real estate brokerage without a license?
A. $1,000
B. $2,000
C. $4,000
D. $10,000
Answer: C
Rationale: Engaging in real estate brokerage activity without a valid license
is a Class A misdemeanor, punishable by a fine of up to $4,000 and/or
imprisonment in county jail . This provision underscores the seriousness of
unlicensed activity.
Q8. If a license holder is convicted of a felony or a criminal offense
involving fraud, TREC has the authority to:
A. Issue a warning only
B. Suspend or revoke the license holder's license
C. Refer the matter to the Texas Attorney General for criminal prosecution
D. Assess a fine of $100,000
, Answer: B
Rationale: Section 1101.652(a)(1) of the License Act gives TREC authority to
suspend or revoke a license holder that has entered a plea of guilty, nolo
contendere, or has been convicted of a felony or any criminal offense that
involves fraud. The Commission does not have authority to revoke for mere
charges; a conviction or plea is required .
Q9. What is the Real Estate Recovery Trust Account?
A. An account used by brokers to deposit earnest money
B. An account that pays aggrieved persons who suffered monetary loss due
to the unscrupulous acts of a license holder
C. An account used to pay TREC operating expenses
D. An account that provides loans to new brokers
Answer: B
Rationale: The Real Estate Recovery Trust Account (also known as the Real
Estate Recovery Account) is a fund administered by TREC that provides
compensation to individuals who have suffered financial loss due to specific
wrongful acts (fraud, misrepresentation, conversion of trust funds)
committed by a licensed real estate agent or broker .
Q10. State law limits the maximum payment from the Real Estate
Recovery Trust Account to:
A. $50,000 per license holder and $100,000 per transaction
B. $100,000 per license holder and $50,000 per transaction
C. $25,000 per license holder and $50,000 per transaction
D. $100,000 per license holder and $100,000 per transaction
Answer: B
Rationale: The current statutory limits are $100,000 per license holder (in
the aggregate) and $50,000 per transaction. These limits are periodically
adjusted by the legislature and represent the maximum amount any single
aggrieved person may recover .
Part 2: Licensing Requirements and Eligibility (Q11–Q20)
