TEXAS REAL ESTATE SALES AGENT EXAM – PRACTICE QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026 Q&A | INSTANT
DOWNLOAD PDF.
CORE DOMAINS
- Commission Duties and Powers
- Licensing Requirements
- Standards of Conduct and Ethics
- Agency Law and Brokerage
- Contracts and Addenda
- Texas Real Estate License Act (TRELA)
- Property Ownership and Land Descriptions
- Finance and Closing Procedures
- Texas Specific Disclosures
- Landlord-Tenant Regulations
INTRODUCTION
The purpose of this comprehensive assessment is to evaluate the competency and
readiness of candidates seeking licensure as Texas Real Estate Sales Agents. This exam
focuses on the essential skills and knowledge required to navigate the legal, ethical, and
practical complexities of the Texas real estate market. The structure utilizes multiple-
choice and scenario-based questions to mirror the actual licensing environment,
emphasizing real-world application and informed decision-making. Candidates must
demonstrate a deep understanding of state-specific statutes, fiduciary duties, and
professional standards of conduct. By engaging with these rigorous practice items,
,aspirants can identify knowledge gaps and refine their critical thinking skills for
professional success.
SECTION ONE: QUESTIONS 1–100
1. Which of the following entities is responsible for protecting consumers and
overseeing the licensing of real estate professionals in Texas?
A. Texas Association of Realtors
B. Texas Real Estate Commission
C. Office of the Attorney General
D. Department of Housing and Urban Development
🟢 B. Texas Real Estate Commission
🔴 RATIONALE: The Texas Real Estate Commission (TREC) is the state agency created
by the legislature to protect consumers and regulate providers of real estate and
professional inspection services.
2. A sales agent receives a commission check directly from a seller after a successful
closing. Which of the following is true?
A. This is acceptable if the broker gives written permission.
B. This is a violation of the Texas Real Estate License Act.
C. This is allowed if the agent is an independent contractor.
D. This is permitted for bonuses but not base commissions.
🟢 B. This is a violation of the Texas Real Estate License Act.
🔴 RATIONALE: Under TRELA, a sales agent may only receive compensation for real
estate brokerage services from their sponsoring broker, not directly from a client or
,another broker.
3. In Texas, the "Statute of Frauds" requires that all contracts for the sale of real
property must be:
A. Recorded at the county clerk’s office
B. Witnessed by a notary public
C. In writing and signed to be enforceable
D. Executed within 30 days of the offer
🟢 C. In writing and signed to be enforceable
🔴 RATIONALE: The Statute of Frauds is a legal principle requiring certain contracts,
including those for the sale of real estate, to be in writing and signed by the party to
be charged to be legally enforceable in court.
4. When an agent represents a buyer and a seller in the same transaction with
written consent from both parties, this is known in Texas as:
A. Dual Agency
B. Subagency
C. Intermediary Brokerage
D. Transactional Brokerage
🟢 C. Intermediary Brokerage
🔴 RATIONALE: Texas law does not permit Dual Agency; instead, it uses the
Intermediary Brokerage process, which requires written consent and allows the broker
to appoint agents to work with the individual parties.
5. How many members serve on the Texas Real Estate Commission?
, A. 6 members
B. 9 members
C. 12 members
D. 15 members
🟢 B. 9 members
🔴 RATIONALE: TREC consists of nine members appointed by the Governor with the
advice and consent of the Senate: six members who are real estate brokers and three
members who represent the public.
6. A license holder must disclose their status as a real estate agent when
representing:
A. Their own child
B. A business entity in which they own more than 10%
C. Their spouse
D. All of the above
🟢 D. All of the above
🔴 RATIONALE: TREC rules require a license holder to disclose their licensed status if
they are acting on behalf of themselves, a spouse, a child, or a business entity in which
the license holder owns more than 10%.
7. Which of the following is an example of commingling?
A. Placing earnest money in a designated trust account
B. Using client funds to pay for office rent
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026 Q&A | INSTANT
DOWNLOAD PDF.
CORE DOMAINS
- Commission Duties and Powers
- Licensing Requirements
- Standards of Conduct and Ethics
- Agency Law and Brokerage
- Contracts and Addenda
- Texas Real Estate License Act (TRELA)
- Property Ownership and Land Descriptions
- Finance and Closing Procedures
- Texas Specific Disclosures
- Landlord-Tenant Regulations
INTRODUCTION
The purpose of this comprehensive assessment is to evaluate the competency and
readiness of candidates seeking licensure as Texas Real Estate Sales Agents. This exam
focuses on the essential skills and knowledge required to navigate the legal, ethical, and
practical complexities of the Texas real estate market. The structure utilizes multiple-
choice and scenario-based questions to mirror the actual licensing environment,
emphasizing real-world application and informed decision-making. Candidates must
demonstrate a deep understanding of state-specific statutes, fiduciary duties, and
professional standards of conduct. By engaging with these rigorous practice items,
,aspirants can identify knowledge gaps and refine their critical thinking skills for
professional success.
SECTION ONE: QUESTIONS 1–100
1. Which of the following entities is responsible for protecting consumers and
overseeing the licensing of real estate professionals in Texas?
A. Texas Association of Realtors
B. Texas Real Estate Commission
C. Office of the Attorney General
D. Department of Housing and Urban Development
🟢 B. Texas Real Estate Commission
🔴 RATIONALE: The Texas Real Estate Commission (TREC) is the state agency created
by the legislature to protect consumers and regulate providers of real estate and
professional inspection services.
2. A sales agent receives a commission check directly from a seller after a successful
closing. Which of the following is true?
A. This is acceptable if the broker gives written permission.
B. This is a violation of the Texas Real Estate License Act.
C. This is allowed if the agent is an independent contractor.
D. This is permitted for bonuses but not base commissions.
🟢 B. This is a violation of the Texas Real Estate License Act.
🔴 RATIONALE: Under TRELA, a sales agent may only receive compensation for real
estate brokerage services from their sponsoring broker, not directly from a client or
,another broker.
3. In Texas, the "Statute of Frauds" requires that all contracts for the sale of real
property must be:
A. Recorded at the county clerk’s office
B. Witnessed by a notary public
C. In writing and signed to be enforceable
D. Executed within 30 days of the offer
🟢 C. In writing and signed to be enforceable
🔴 RATIONALE: The Statute of Frauds is a legal principle requiring certain contracts,
including those for the sale of real estate, to be in writing and signed by the party to
be charged to be legally enforceable in court.
4. When an agent represents a buyer and a seller in the same transaction with
written consent from both parties, this is known in Texas as:
A. Dual Agency
B. Subagency
C. Intermediary Brokerage
D. Transactional Brokerage
🟢 C. Intermediary Brokerage
🔴 RATIONALE: Texas law does not permit Dual Agency; instead, it uses the
Intermediary Brokerage process, which requires written consent and allows the broker
to appoint agents to work with the individual parties.
5. How many members serve on the Texas Real Estate Commission?
, A. 6 members
B. 9 members
C. 12 members
D. 15 members
🟢 B. 9 members
🔴 RATIONALE: TREC consists of nine members appointed by the Governor with the
advice and consent of the Senate: six members who are real estate brokers and three
members who represent the public.
6. A license holder must disclose their status as a real estate agent when
representing:
A. Their own child
B. A business entity in which they own more than 10%
C. Their spouse
D. All of the above
🟢 D. All of the above
🔴 RATIONALE: TREC rules require a license holder to disclose their licensed status if
they are acting on behalf of themselves, a spouse, a child, or a business entity in which
the license holder owns more than 10%.
7. Which of the following is an example of commingling?
A. Placing earnest money in a designated trust account
B. Using client funds to pay for office rent
