Free Texas Real Estate Practice Exam Questions (October 2026) 40+

In Texas, licensed activity is defined as anyone who lists, sells, leases, or deals in real estate transactions. If someone does any of those activities without a license it is considered unlicensed activity. In order to do prior tasks they must hold an active real estate license.

There are eight protected classes in Texas Fair Housing. The protected classes are the basis of race, color, religion, sex, handicap, familial status, national origin or ancestry.

No. TREC Rule 535.146 prohibits a sales agent from maintaining a real estate trust account. Client trust money received by a sales agent must be delivered immediately to the sponsoring broker. This question concerns client funds handled in real estate brokerage, not the creation of a personal trust.

Source: TREC Rule 535.146.

In terms of violation decisions, any ruling by the Texas Real Estate Commission can be appealed to a district court. Hopefully it does not come to that, but that is an option for violators that feel that are not being accurately represented.

The TREC may suspend or revoke a license if a licensee pleads guilty or is found guilty of a felony which includes fraud. Speeding tickets as well as not selling any properties will not result in a license being revoked.

The Texas Real Estate Commission is composed of nine members, each of whom shall be appointed by the Governor.

Commingling is when a licensee mixes funds held in care for a client with their own funds.

All Texas Licensees must follow The Canons of Professional Ethics. The Texas Real Estate Commission wrote the Canons of Professional Ethics into the state statutes and since then all licensees must follow them. Via Chapter 531 of TREC Canons of Professional Ethics and Conduct.

All individuals who hold an active Texas real estate license are required to complete 18 hours of Commission approved continuing education during each two year renewal period.

Inactive status. TREC allows a regular license renewal in inactive status without completing continuing education (CE). The license holder cannot perform activities requiring an active license and must meet the applicable CE requirements before returning to active status. Sales Agent Apprentice Education (SAE) for an initial sales-agent renewal is a separate requirement and must be completed even when renewing inactive. See TREC’s license renewal requirements.

Unlike some states, in Texas there is no state law that dictates what a broker may charge for a commission. The commission is completely negotiable in the listing contract.

All individuals who hold an active Texas real estate license are required to complete 18 hours of Commission approved continuing education during each two year renewal period.

Splitting the commission check with Isaac would not be allowed. A licensee is not permitted to divide a commission or fee with anyone that is not a licensed real estate broker or salesperson. He may however with his own personal money buy Isaac a gift card, give him cash, or of course pay him his normal fee.

While Texas agents should legally do ALL of the following. Texas state agency disclosure laws specifically address agency disclosure. Agency disclosure laws require agents to disclose the type of agency you have with your client.

No action for judgment, which results in an order for collection from the real estate recovery trust account, shall be started later than two years from the accrual of the cause of action. Per Texas Real Estate License Act.

The Texas Real Estate Commission members serve for terms of six years. Per Texas Real Estate License Act Sec. 1101.055.

All are applicable laws in the state of Texas except the Texas Transfer of Rights and Ownership Act. That does not exist.

Regardless of the number of applicants, payments from the Real Estate Recovery Trust Account may not exceed $50,000 per transaction, with a maximum of $100,000 per license holder for multiple transactions.

The Texas Real Estate Commission prohibits a license holder from using a sales contract drafted by themselves or another licensee. The only type of sales contracts that can be used are ones that a licensed attorney drafts; or one that either buyer or seller draws up themselves. A licensee that draws up a contractual agreement for another party is in violation of TRELA and is guilty of the Unauthorized Practice of Law.

If there is a latent structural defect and a contract is entered into without a Seller's Disclosure Notice; the seller for any reason (within a limited time) can terminate the contract. This right is protected by Texas Real Estate and Consumer Law.

No. TREC Rule 535.4(c) states that a person must be licensed as a broker or sales agent to show a property. “Show” does infact include causing or permitting a property to be viewed by a prospective buyer.

The Real Estate Recovery Trust Account is a special fund established by Texas Real Estate Code to provide reimbursement to persons who are victims of fraud, misrepresentation or deceit committed by real estate licensees during the course of any transaction for which a license is required. The recovery revolving fund is designed to protect consumers.

The creation of contract forms which bind the sale, exchange, option, lease or rental of any interest in real property cannot be drafted by agents or brokers. This goes for deeds, deeds of trust, notes and wills.

The Commission may NOT initiate an investigation on the basis of an anonymous complaint. The Commission can in fact and is required to investigate a signed written complaint that gives reasonable cause.

Cold calling or telemarketing for listings in Texas is legal but requires an active real estate license.

At no time should a licensee give legal advice. The only exception is if the licensee is also an attorney.

The Texas Legislature established the Texas Appraiser Licensing & Certification Board (TALCB) in order to safeguard consumers in matters of real property appraisal services. TALCB shares staff members and resources with the Texas Real Estate Commission (TREC). Together TREC and TALCB oversee real estate brokerage, real property appraisals, inspections, home warranties, and timeshare opportunities.

The Texas Real Estate Commission consists of 9 people. Per Texas Real Estate License Act Sec. 1101.051.

The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort. The concept is that a husband and wife are EQUAL partners.

No. Telemarketing is only permitted for active licensees.

When you hear misrepresentation this is in reference to integrity. The real estate broker or sales agents special obligation to employ prudence and caution in the discharge of his or her duties to avoid misrepresentation is integrity.

The penalty collected for a violation by a Texas real estate broker or salesperson is deposited in the Texas Real Estate Recovery Trust Account.

Under agency law in Texas dual agency is illegal. A license holder may not represent both principals as a dual agent under the revisions to TRELA.

Failure to satisfy the continuing education requirement by the license expiration date shall result in the renewed license being automatically placed on an "inactive" status.

In Texas, when negotiating real estate contracts a licensee shall use only contract forms promulgated by The Texas Real Estate Commission. Any other contracts unless stated by law would be considered invalid.

Branch license certificates must be filed with the TREC for ALL branches.

The TREC rules call for immediate presentation. All written offers should be presented to the property owner as quickly as it is reasonably possible. No real estate licensee has the right to withhold an offer from a property owner.

Appraisers are regulated by the Texas Appraiser Licensing and Certification Board not the Texas Real Estate Commission. All the other statements are true.

The Texas Real Estate Commission requires that all parties involved in the services of a broker be given the required information. All the information required is on an Information About Brokers Services Form. This must be given at first reasonable contact.

No it is not. Commingling is a breach of trust in which a fiduciary mixes funds held in care for a client with their own funds. Commingling is illegal in Texas.