Texas Real Estate Exam Practice Test with 170 Correctly
Answered Questions with Rationales Review 2026-2027 | TX
Real Estate Exam Prep with a Comprehensive of 170+
Questions and Correct Answers
Which of the following actions is NOT a violation of the Texas Real Estate
License Act?
A. A broker guarantees a buyer that, based on past performance , an investment
property will appreciate over the next two years.
B. Placing a sign to sell or lease real property with only the verbal consent of the
owner.
C. A broker offers a guaranteed buy back of a property for a set price, if the
purchaser is not happy with the investment after a two-year period of ownership.
D. Selling real estate by lottery.
C. A broker offers a guaranteed buy back of a property for a set price, if the
purchaser is not happy with the investment after a two-year period of ownership. ·
Putting your money where your mouth is and signing a contract to purchase with a
two-year close date to buy it back yourself is legal. You can't guarantee a future
profit verbally as this is illegal. Selling real estate by lottery and putting a sign in
the yard on verbal consent is also illegal.
With the knowledge and consent of her broker/employer, an unlicensed assistant is
showing a property to prospective buyers. What is true about this situation?
A. Only the broker can be fined by the Texas Real Estate Commission for this
activity
B. The broker and unlicensed assistant are both guilty of a third degree felony
C. Both the broker and unlicensed assistant can be fined an administrative penalty
of $5,000 per day
D. Only the unlicensed assistant can be fined by the Texas Real Estate
Commission for this activity
1
,C. Both the broker and unlicensed assistant can be fined an administrative penalty
of $5,000 per day
Any violation of TRELA can result in an administrative penalty of up to $5000/day
per violation imposed by the Texas Real Estate Commission. It is not a felony only
a misdemeanor. Both broker and assistant may be fined not just one or the other.
The Texas Real Estate Commission has received an application for a Texas Real
Estate Sales License from Mary. Mary has completed all her educational
requirements and passed the state exam. At this point, the Texas Real Estate
Commission will begin the background check. Which of the following statements
is not true?
A. Mary can appeal a denial of her application within 30 days.
B. The Texas Real Estate Commission will notify Mary if her application for
license is denied.
C. The Texas Real Estate Commission has 30 days to complete the background
check.
D. The Texas Real Estate Commission has no time limit for determining the
"integrity" of an applicant like Mary.
C. The Texas Real Estate Commission has 30 days to complete the background
check.
The Texas Real Estate Commission has no limit on days to review your application
or complete your background check. TREC will notify an applicant if the
application for license is denied. An applicant has 30 days from the date their
application was denied to request a hearing.
NOTE - This question asks "which of the following... is NOT true?" which means
it's looking for a false answer, and it's false that TREC has 30 days to complete the
background check.
Arthur was a Texas licensed Real Estate Sales agent for a long time. He then chose
to become inactive and Texas Real Estate Commission has been holding his
license in inactive status. He now wants to activate the license. What does he need
to do?
A. Apply through a broker, pay $200 and take a 30-hour continuing education
course
2
,B. Apply through a broker, pay $50 and take a 30-hour continuing education
course
C. Apply through a broker, pay $200 and take an 18-hour continuing education
course
D. Apply through a broker, pay $200 and take a 15-hour continuing education
course
C. Apply through a broker, pay $200 and take an 18-hour continuing education
course
Licensees past their 2 yr SAE period (experienced) must be sponsored by a broker,
pay their $200 CE deferral fee and take 18hrs (10 CE, 8 Legal) to re-activate an
inactive license. There is no time limit for experienced agents to be inactive nor
education required while inactive as long as you pay your renewal fee eve,y two
years.
A Texas licensee has defaulted on his Texas State Student loans. As a result of this
Texas Real Estate Commission will:
A. revoke the license of the license holder immediately.
B. do nothing.
C. refuse to renew the license of this individual unless and until the loan payments
are brought up to date.
D. require the license holder to move his license to inactive status.
B. do nothing.
In Texas (and many other states), there used to be laws which could result in a real
estate licensee losing their license if they defaulted on their student loan debt. In
2019, SB 37 banned Texas agencies from denying, suspending, or revoking a
borrower's occupational license for defaulting on their student loans.
When a license holder markets his own property, he should:
A. inform the buyer that he is a license holder and the owner of the property.
B. use the IABS to disclose his interest in the property.
C. use the TREC promulgated form to disclose his interest in the property.
D. not mention his interest unless the buyer decides to buy the property.
A. inform the buyer that he is a license holder and the owner of the property.
Per TRELA you must always disclose self, spouse, parent or child is involved in a
real estate transaction. The /ABS discloses agency, not personal interest. There is
3
, no TREC promulgated form solely intended for this disclosure although paragraph
4 of the TREC contracts are now used for this. Not mentioning your personal
interest in a transaction is illegal.
A Texas broker may pay a commission to:
A. Any unlicensed person for a referral
B. An in-house employee of a principal
C. A licensed attorney in Texas
D. A foreign broker who doesn't negotiate in Texas
D. A foreign broker who doesn't negotiate in Texas
Any licensed broker outside of Texas is considered a foreign broker and may be
paid a referral tee out of your commission. Attorneys must also have a real estate
license. In-house employees must have a license. Only licensed brokers in Texas
can receive a real estate commission in Texas.
Kelly, A seller, is queried as to whether any known plumbing defects exist in her
home. She replies that no, to the best of her knowledge, there are no plumbing
defects. Unbeknownst to her, the pipes are corroded and due for replacement. Is
she in violation of her disclosure responsibilities?
A. No, since she is unaware of the plumbing issue, she is not liable for failure to
disclose material defects.
B. Yes, unless she was specifically qualified to answer the question or had
qualified advice, she was in violation of her responsibility to disclose material
defects.
C. No, because she is not required to answer this question; any material defects
will be discovered during the inspection.
D. Yes, because it is her responsibility to make sure the property is free of material
defects or to report them.
A. No, since she is unaware of the plumbing issue, she is not liable for failure to
disclose material defects.
Since Kelly answered to the best of her knowledge, she was not in violation of her
responsibility to disclose any known material facts.
When is it NOT mandatory for the seller to provide a copy of the "Seller's
Disclosure of Property Condition" to prospective buyers?
4
Answered Questions with Rationales Review 2026-2027 | TX
Real Estate Exam Prep with a Comprehensive of 170+
Questions and Correct Answers
Which of the following actions is NOT a violation of the Texas Real Estate
License Act?
A. A broker guarantees a buyer that, based on past performance , an investment
property will appreciate over the next two years.
B. Placing a sign to sell or lease real property with only the verbal consent of the
owner.
C. A broker offers a guaranteed buy back of a property for a set price, if the
purchaser is not happy with the investment after a two-year period of ownership.
D. Selling real estate by lottery.
C. A broker offers a guaranteed buy back of a property for a set price, if the
purchaser is not happy with the investment after a two-year period of ownership. ·
Putting your money where your mouth is and signing a contract to purchase with a
two-year close date to buy it back yourself is legal. You can't guarantee a future
profit verbally as this is illegal. Selling real estate by lottery and putting a sign in
the yard on verbal consent is also illegal.
With the knowledge and consent of her broker/employer, an unlicensed assistant is
showing a property to prospective buyers. What is true about this situation?
A. Only the broker can be fined by the Texas Real Estate Commission for this
activity
B. The broker and unlicensed assistant are both guilty of a third degree felony
C. Both the broker and unlicensed assistant can be fined an administrative penalty
of $5,000 per day
D. Only the unlicensed assistant can be fined by the Texas Real Estate
Commission for this activity
1
,C. Both the broker and unlicensed assistant can be fined an administrative penalty
of $5,000 per day
Any violation of TRELA can result in an administrative penalty of up to $5000/day
per violation imposed by the Texas Real Estate Commission. It is not a felony only
a misdemeanor. Both broker and assistant may be fined not just one or the other.
The Texas Real Estate Commission has received an application for a Texas Real
Estate Sales License from Mary. Mary has completed all her educational
requirements and passed the state exam. At this point, the Texas Real Estate
Commission will begin the background check. Which of the following statements
is not true?
A. Mary can appeal a denial of her application within 30 days.
B. The Texas Real Estate Commission will notify Mary if her application for
license is denied.
C. The Texas Real Estate Commission has 30 days to complete the background
check.
D. The Texas Real Estate Commission has no time limit for determining the
"integrity" of an applicant like Mary.
C. The Texas Real Estate Commission has 30 days to complete the background
check.
The Texas Real Estate Commission has no limit on days to review your application
or complete your background check. TREC will notify an applicant if the
application for license is denied. An applicant has 30 days from the date their
application was denied to request a hearing.
NOTE - This question asks "which of the following... is NOT true?" which means
it's looking for a false answer, and it's false that TREC has 30 days to complete the
background check.
Arthur was a Texas licensed Real Estate Sales agent for a long time. He then chose
to become inactive and Texas Real Estate Commission has been holding his
license in inactive status. He now wants to activate the license. What does he need
to do?
A. Apply through a broker, pay $200 and take a 30-hour continuing education
course
2
,B. Apply through a broker, pay $50 and take a 30-hour continuing education
course
C. Apply through a broker, pay $200 and take an 18-hour continuing education
course
D. Apply through a broker, pay $200 and take a 15-hour continuing education
course
C. Apply through a broker, pay $200 and take an 18-hour continuing education
course
Licensees past their 2 yr SAE period (experienced) must be sponsored by a broker,
pay their $200 CE deferral fee and take 18hrs (10 CE, 8 Legal) to re-activate an
inactive license. There is no time limit for experienced agents to be inactive nor
education required while inactive as long as you pay your renewal fee eve,y two
years.
A Texas licensee has defaulted on his Texas State Student loans. As a result of this
Texas Real Estate Commission will:
A. revoke the license of the license holder immediately.
B. do nothing.
C. refuse to renew the license of this individual unless and until the loan payments
are brought up to date.
D. require the license holder to move his license to inactive status.
B. do nothing.
In Texas (and many other states), there used to be laws which could result in a real
estate licensee losing their license if they defaulted on their student loan debt. In
2019, SB 37 banned Texas agencies from denying, suspending, or revoking a
borrower's occupational license for defaulting on their student loans.
When a license holder markets his own property, he should:
A. inform the buyer that he is a license holder and the owner of the property.
B. use the IABS to disclose his interest in the property.
C. use the TREC promulgated form to disclose his interest in the property.
D. not mention his interest unless the buyer decides to buy the property.
A. inform the buyer that he is a license holder and the owner of the property.
Per TRELA you must always disclose self, spouse, parent or child is involved in a
real estate transaction. The /ABS discloses agency, not personal interest. There is
3
, no TREC promulgated form solely intended for this disclosure although paragraph
4 of the TREC contracts are now used for this. Not mentioning your personal
interest in a transaction is illegal.
A Texas broker may pay a commission to:
A. Any unlicensed person for a referral
B. An in-house employee of a principal
C. A licensed attorney in Texas
D. A foreign broker who doesn't negotiate in Texas
D. A foreign broker who doesn't negotiate in Texas
Any licensed broker outside of Texas is considered a foreign broker and may be
paid a referral tee out of your commission. Attorneys must also have a real estate
license. In-house employees must have a license. Only licensed brokers in Texas
can receive a real estate commission in Texas.
Kelly, A seller, is queried as to whether any known plumbing defects exist in her
home. She replies that no, to the best of her knowledge, there are no plumbing
defects. Unbeknownst to her, the pipes are corroded and due for replacement. Is
she in violation of her disclosure responsibilities?
A. No, since she is unaware of the plumbing issue, she is not liable for failure to
disclose material defects.
B. Yes, unless she was specifically qualified to answer the question or had
qualified advice, she was in violation of her responsibility to disclose material
defects.
C. No, because she is not required to answer this question; any material defects
will be discovered during the inspection.
D. Yes, because it is her responsibility to make sure the property is free of material
defects or to report them.
A. No, since she is unaware of the plumbing issue, she is not liable for failure to
disclose material defects.
Since Kelly answered to the best of her knowledge, she was not in violation of her
responsibility to disclose any known material facts.
When is it NOT mandatory for the seller to provide a copy of the "Seller's
Disclosure of Property Condition" to prospective buyers?
4
