Texas Real Estate Broker Exam With
Actual Questions & Verified
Answers,Plus Rationales/Expert
Verified For Guaranteed Pass Graded
A+/2026 /Latest Update/Instant
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1. Which of the following is required to become a licensed real estate
broker in Texas?
A) Completion of 180 hours of qualifying education
B) Being at least 21 years old
C) Holding an active real estate salesperson license for at least 4 years
D) Passing the state and national portions of the broker exam
Answer: C) Holding an active real estate salesperson license for at least 4
years
Rationale: Texas law requires a candidate to have held an active real estate
salesperson license for at least 4 years within the 5 years immediately
preceding the application.
2. Which entity regulates real estate brokers in Texas?
A) Texas Department of Licensing and Regulation
B) Texas Real Estate Commission (TREC)
C) Texas Board of Realtors
D) Federal Trade Commission
Answer: B) Texas Real Estate Commission (TREC)
Rationale: TREC is the state agency responsible for licensing and regulating
real estate professionals in Texas.
, 3. A broker owes a fiduciary duty to:
A) The buyer only
B) The seller only
C) The client
D) The general public
Answer: C) The client
Rationale: Brokers owe fiduciary duties, including loyalty, confidentiality, and
disclosure, to their client, not necessarily to the general public.
4. Which of the following is considered commingling?
A) Placing earnest money in a separate escrow account
B) Mixing client funds with the broker’s personal funds
C) Depositing client funds in a TREC-approved trust account
D) Using a third-party escrow company
Answer: B) Mixing client funds with the broker’s personal funds
Rationale: Commingling occurs when a broker mixes client or escrow funds
with personal or business funds, which is prohibited.
5. Which of the following is true regarding earnest money deposits?
A) Must be returned immediately upon signing a contract
B) Can be used by the broker for personal expenses
C) Must be deposited in a trust account by the third business day after
contract execution
D) Is considered non-refundable under all circumstances
Answer: C) Must be deposited in a trust account by the third business day
after contract execution
Rationale: Texas law requires brokers to deposit earnest money into a trust or
escrow account within a set timeframe, typically the third business day.
6. What type of listing gives a broker the exclusive right to sell a property
and earn a commission regardless of who finds the buyer?
A) Open listing
B) Exclusive agency listing
C) Exclusive right-to-sell listing
D) Net listing
, Answer: C) Exclusive right-to-sell listing
Rationale: In an exclusive right-to-sell listing, the broker earns a commission
no matter who finds the buyer.
7. Which of the following describes a dual agency?
A) Representing the buyer and seller in the same transaction
B) Representing multiple buyers for the same property
C) Representing the seller and another broker
D) A broker assisting another broker
Answer: A) Representing the buyer and seller in the same transaction
Rationale: Dual agency occurs when one broker represents both parties in a
transaction, which requires informed consent.
8. A broker who advertises a property without the owner’s consent is:
A) Committing fraud
B) Acting within broker discretion
C) Violating TREC rules
D) Not liable
Answer: C) Violating TREC rules
Rationale: Advertising a property without written consent from the owner
violates Texas Real Estate Commission regulations.
9. Which statement about a real estate trust account is correct?
A) Personal funds of the broker can be combined with client funds
B) It is used to hold client funds safely and separately from business
funds
C) It can be used for office expenses if the broker is short on cash
D) Only cash payments can be deposited
Answer: B) It is used to hold client funds safely and separately from business
funds
Rationale: Trust accounts are designed to protect client funds and must be
separate from the broker’s personal or business funds.
10.Which type of property is exempt from Texas property taxes?
A) Owner-occupied residential property
B) Agricultural land used for farming
Actual Questions & Verified
Answers,Plus Rationales/Expert
Verified For Guaranteed Pass Graded
A+/2026 /Latest Update/Instant
Download Pdf
1. Which of the following is required to become a licensed real estate
broker in Texas?
A) Completion of 180 hours of qualifying education
B) Being at least 21 years old
C) Holding an active real estate salesperson license for at least 4 years
D) Passing the state and national portions of the broker exam
Answer: C) Holding an active real estate salesperson license for at least 4
years
Rationale: Texas law requires a candidate to have held an active real estate
salesperson license for at least 4 years within the 5 years immediately
preceding the application.
2. Which entity regulates real estate brokers in Texas?
A) Texas Department of Licensing and Regulation
B) Texas Real Estate Commission (TREC)
C) Texas Board of Realtors
D) Federal Trade Commission
Answer: B) Texas Real Estate Commission (TREC)
Rationale: TREC is the state agency responsible for licensing and regulating
real estate professionals in Texas.
, 3. A broker owes a fiduciary duty to:
A) The buyer only
B) The seller only
C) The client
D) The general public
Answer: C) The client
Rationale: Brokers owe fiduciary duties, including loyalty, confidentiality, and
disclosure, to their client, not necessarily to the general public.
4. Which of the following is considered commingling?
A) Placing earnest money in a separate escrow account
B) Mixing client funds with the broker’s personal funds
C) Depositing client funds in a TREC-approved trust account
D) Using a third-party escrow company
Answer: B) Mixing client funds with the broker’s personal funds
Rationale: Commingling occurs when a broker mixes client or escrow funds
with personal or business funds, which is prohibited.
5. Which of the following is true regarding earnest money deposits?
A) Must be returned immediately upon signing a contract
B) Can be used by the broker for personal expenses
C) Must be deposited in a trust account by the third business day after
contract execution
D) Is considered non-refundable under all circumstances
Answer: C) Must be deposited in a trust account by the third business day
after contract execution
Rationale: Texas law requires brokers to deposit earnest money into a trust or
escrow account within a set timeframe, typically the third business day.
6. What type of listing gives a broker the exclusive right to sell a property
and earn a commission regardless of who finds the buyer?
A) Open listing
B) Exclusive agency listing
C) Exclusive right-to-sell listing
D) Net listing
, Answer: C) Exclusive right-to-sell listing
Rationale: In an exclusive right-to-sell listing, the broker earns a commission
no matter who finds the buyer.
7. Which of the following describes a dual agency?
A) Representing the buyer and seller in the same transaction
B) Representing multiple buyers for the same property
C) Representing the seller and another broker
D) A broker assisting another broker
Answer: A) Representing the buyer and seller in the same transaction
Rationale: Dual agency occurs when one broker represents both parties in a
transaction, which requires informed consent.
8. A broker who advertises a property without the owner’s consent is:
A) Committing fraud
B) Acting within broker discretion
C) Violating TREC rules
D) Not liable
Answer: C) Violating TREC rules
Rationale: Advertising a property without written consent from the owner
violates Texas Real Estate Commission regulations.
9. Which statement about a real estate trust account is correct?
A) Personal funds of the broker can be combined with client funds
B) It is used to hold client funds safely and separately from business
funds
C) It can be used for office expenses if the broker is short on cash
D) Only cash payments can be deposited
Answer: B) It is used to hold client funds safely and separately from business
funds
Rationale: Trust accounts are designed to protect client funds and must be
separate from the broker’s personal or business funds.
10.Which type of property is exempt from Texas property taxes?
A) Owner-occupied residential property
B) Agricultural land used for farming
