TEXAS REAL ESTATE EXAM; STATE PORTION |
COMPREHENSIVE QUESTIONS AND DETAILED
ANSWER EXPLANATIONS | 2026 UPDATE
• After the first renewal, what mandatory classes are required to renew a salesperson's
real estate license?
A) Completion of 15 hours of continuing education acceptable to the Commission
B) No mandatory requirements
C) Completion of 60 additional hours in core real estate courses
D) 18 hours of home study -✓✓ compleion of 15 hours of continuing education
acceptable to the Commission.
A licensee applying for first renewal of a salesperson license must provide satisfactory
evidence of completion of a total of 18 semester hours (270 classroom hours), with 180
hours being the application education requirement courses. Please note that this means
only 6 additional semester (90 classroom) hours in core real estate courses are required
to be filed during the term of the license as a licensed salesperson. These hours are
known as SAE, or Salesperson Apprentice Education. These 90 additional classroom
hours in core real estate courses for the SAE must be submitted and in the TREC
system by the end of the second year of licensure. After the first renewal, a license
holder is required to complete 15 MCE (Mandatory Continuing Education) hours of
acceptable mandatory continuing education every two years.
• A real estate licensee who receives an offer must
A) present offers from highest sales price to lowest price.
B) present any offers in the order they were received.
C) hold offers to make sure all buyers have a fair chance at the property.
D) present the offer as quickly as possible. -✓✓ present the offer as quickly as
possible.
All offers should be in writing and presented to the property owner as quickly as is
reasonably practical. The TREC rules call for immediate presentation. No real estate
broker or salesperson has the right to withhold an offer from a property owner.
• Which Canon of Professional Ethics requires that the broker or salesperson employ
prudence and caution in the discharge of her duties to avoid misrepresentation?
A) Accounting
B) Competency
C) Fidelity
D) Integrity -✓✓ integrity.
,The Canons of Professional Ethics and Conduct define integrity to include
"...employment of prudence and caution so as to avoid misrepresentation...by acts of
commission or omission."
• For a business entity to be licensed as a broker the following is required:
A) the entity must provide proof of E&O insurance of $1 million for each occurrence if
the designated agent owns less than 10% of the entity.
B) a managing officer of the entity must be designated as the agent for purposes of
TRELA.
C) all of these are required.
D) the designated agent must have a broker's license in active and good standing with
TREC. -✓✓ all of these are required.
For a business entity to hold a broker license, a managing officer of the entity must be
designated as the agent for purposes of TRELA and must have an active broker's
license in good standing with TREC. The business entity must have E&O insurance with
a minimum of $1 million for each occurrence if the designated agent is less than a 10%
owner of the entity.
• After real estate has been sold by the city or county to satisfy a delinquent tax lien, the
defaulted owner of a homestead usually has a right to
A) have the sale canceled by paying the back taxes and penalties.
B) file a judgment lien against the purchaser at the tax foreclosure sale.
C) redeem the property within a two-year time limit.
D) redeem the property within a three-year time limit. -✓✓ redeem the property within a
two-year time limit.
Texas law provides for a statutory right of redemption (two years for homestead
property) after the tax sale during which the defaulted owner may redeem the property
by paying the amount paid at the tax sale, plus interest and other charges, including
25% of the purchase price during the first year and 50% during the second year.
• In any real estate sales transaction that a broker negotiates, the broker would be well
advised to do all of the following EXCEPT
A) keep copies of all documents involved in the transaction in the broker's files for five
years after the year in which the transaction was closed.
B) provide the buyer the broker's personal opinion of the condition of the seller's title to
the property.
C) make sure that the closing statement is accurate and that a copy of it is delivered to
both the buyer and the seller.
D) make sure that the written purchase and sales agreement includes all of the terms
of the parties' agreement. -✓✓ provide the buyer the broker's personal opinion of the
condition of the seller's title to the property.
,Offering an opinion of title is a legal opinion and would constitute the Unauthorized
Practice of Law.
• In Texas, brokers and salespersons who are NOT lawyers may
A) complete a bill of sale after a sales contract has been signed.
B) suggest additional language to be added to a preprinted sales contract by a buyer or
seller.
C) fill in blanks on preprinted contract forms promulgated by the Texas Real Estate
Commission.
D) explain the legal significance of specific preprinted contract clauses to a buyer or a
seller. -✓✓ fill in blanks on preprinted contract forms promulgated by the Texas Real
Estate Commission.
Texas license holders must use TREC-promulgated forms, unless another is required
by the property owner or otherwise fits one of the four specific exemptions under TREC
Rules: TREC does not promulgate contract forms for commercial transactions or leases,
except for two temporary residential lease forms which are part of a sales contract. The
blanks may be filled in at the direction of the consumers who make final decisions and
sign the contract. However, real estate license holders who are not lawyers must be
careful to avoid any appearance of the Unauthorized Practice of Law. The broker and
salespersons are special agents hired for a very narrow purpose, which does not
ordinarily include signing the name of the principal.
• A ruling by TREC can be appealed to a district court. -✓✓ True
• TREC is authorized to settle commission -✓✓ False, the commission does not mediate
disputes between or among licensees concerning entitlement to sales commissions, nor
does it recommend individual licensees to the public.
• TREC is authorized to hold hearings and subpoena witnesses. -✓✓ True
• TREC has the power to suspend or revoke a license and to place on probation or
reprimand a license. -✓✓ True
• A real estate licensee may legally fill in contract forms that have been promulgated by
the Commission. -✓✓ True
• Contract forms are drafted and revised by the Real Estate Broker-Lawyer Committee. -
✓✓ True
• The Texas Real Estate Commission consist of nine members. -✓✓ True- The Texas
Real Estate Commission (TREC) consists of six brokers and three public members,
appointed by the Governor to staggered six-years terms.
, • The fund administered by TREC for reimbursing aggrieved persons who suffer actual
damages by acts committed by a licensee is the Real Estate Recovery Trust Account -
✓✓ True
• Each applicant pays a fee $100 at the time of application to the recovery fund. -✓✓ a
$10 fee is paid to he recovery fund.
• The recovery fund maximum per transaction is $50,000. -✓✓ True- The recovery fund
maximum is $50,000 per transaction and $100,000 per licensee, regardless of the
number of claimants.
• Licensees may use forms promulgated or approved by the Commission, prepared by
an attorney licensed in Texas, or prepared by the property owner. -✓✓ True
• A person who refers prospective buyers to a licensed broker for another person and
for a fee or valuable consideration, to be received either now or in the future, must have
a license. -✓✓ True
• A person who negotiates on behalf of a buyer for the purchase of a business
opportunity that does not include any real property is NOT required to hold a license. -
✓✓ True
• An applicant for a salesperson's license is legally authorized to practice real estate
after completing the required education, acquiring a sponsoring broker, and passing the
license examination. -✓✓ The new licensee may not practice real estate for another
person for a fee until the sponsoring broker receives the license.
• When calling a real estate auction, an auctioneer who holds an auctioneer's license
must also hold a real estate license. -✓✓ The auctioneer is exempt in this circumstance.
• Attorneys-at-law licensed in Texas are exempt from the licensing requirements of the
Real Estate License Act as long as they are not attempting to hire others to conduct the
business of a broker without a license to do so. -✓✓ True
• Someone who, for another and or a fee, commission, or other valuable consideration,
list or sells real estate must hold a real estate license (unless otherwise exempt) -✓✓
True
• In order for a corporation to engage in real estate brokerage, the entity must be
licensed and all officers must be licensed as brokers. -✓✓ The entity plus at least one
officer must hold a broker's license.
• To be eligible for a salesperson's license, an individual must be a U.S. citizen or legal
alien and a resident of Texas at the time of filing. -✓✓ True
COMPREHENSIVE QUESTIONS AND DETAILED
ANSWER EXPLANATIONS | 2026 UPDATE
• After the first renewal, what mandatory classes are required to renew a salesperson's
real estate license?
A) Completion of 15 hours of continuing education acceptable to the Commission
B) No mandatory requirements
C) Completion of 60 additional hours in core real estate courses
D) 18 hours of home study -✓✓ compleion of 15 hours of continuing education
acceptable to the Commission.
A licensee applying for first renewal of a salesperson license must provide satisfactory
evidence of completion of a total of 18 semester hours (270 classroom hours), with 180
hours being the application education requirement courses. Please note that this means
only 6 additional semester (90 classroom) hours in core real estate courses are required
to be filed during the term of the license as a licensed salesperson. These hours are
known as SAE, or Salesperson Apprentice Education. These 90 additional classroom
hours in core real estate courses for the SAE must be submitted and in the TREC
system by the end of the second year of licensure. After the first renewal, a license
holder is required to complete 15 MCE (Mandatory Continuing Education) hours of
acceptable mandatory continuing education every two years.
• A real estate licensee who receives an offer must
A) present offers from highest sales price to lowest price.
B) present any offers in the order they were received.
C) hold offers to make sure all buyers have a fair chance at the property.
D) present the offer as quickly as possible. -✓✓ present the offer as quickly as
possible.
All offers should be in writing and presented to the property owner as quickly as is
reasonably practical. The TREC rules call for immediate presentation. No real estate
broker or salesperson has the right to withhold an offer from a property owner.
• Which Canon of Professional Ethics requires that the broker or salesperson employ
prudence and caution in the discharge of her duties to avoid misrepresentation?
A) Accounting
B) Competency
C) Fidelity
D) Integrity -✓✓ integrity.
,The Canons of Professional Ethics and Conduct define integrity to include
"...employment of prudence and caution so as to avoid misrepresentation...by acts of
commission or omission."
• For a business entity to be licensed as a broker the following is required:
A) the entity must provide proof of E&O insurance of $1 million for each occurrence if
the designated agent owns less than 10% of the entity.
B) a managing officer of the entity must be designated as the agent for purposes of
TRELA.
C) all of these are required.
D) the designated agent must have a broker's license in active and good standing with
TREC. -✓✓ all of these are required.
For a business entity to hold a broker license, a managing officer of the entity must be
designated as the agent for purposes of TRELA and must have an active broker's
license in good standing with TREC. The business entity must have E&O insurance with
a minimum of $1 million for each occurrence if the designated agent is less than a 10%
owner of the entity.
• After real estate has been sold by the city or county to satisfy a delinquent tax lien, the
defaulted owner of a homestead usually has a right to
A) have the sale canceled by paying the back taxes and penalties.
B) file a judgment lien against the purchaser at the tax foreclosure sale.
C) redeem the property within a two-year time limit.
D) redeem the property within a three-year time limit. -✓✓ redeem the property within a
two-year time limit.
Texas law provides for a statutory right of redemption (two years for homestead
property) after the tax sale during which the defaulted owner may redeem the property
by paying the amount paid at the tax sale, plus interest and other charges, including
25% of the purchase price during the first year and 50% during the second year.
• In any real estate sales transaction that a broker negotiates, the broker would be well
advised to do all of the following EXCEPT
A) keep copies of all documents involved in the transaction in the broker's files for five
years after the year in which the transaction was closed.
B) provide the buyer the broker's personal opinion of the condition of the seller's title to
the property.
C) make sure that the closing statement is accurate and that a copy of it is delivered to
both the buyer and the seller.
D) make sure that the written purchase and sales agreement includes all of the terms
of the parties' agreement. -✓✓ provide the buyer the broker's personal opinion of the
condition of the seller's title to the property.
,Offering an opinion of title is a legal opinion and would constitute the Unauthorized
Practice of Law.
• In Texas, brokers and salespersons who are NOT lawyers may
A) complete a bill of sale after a sales contract has been signed.
B) suggest additional language to be added to a preprinted sales contract by a buyer or
seller.
C) fill in blanks on preprinted contract forms promulgated by the Texas Real Estate
Commission.
D) explain the legal significance of specific preprinted contract clauses to a buyer or a
seller. -✓✓ fill in blanks on preprinted contract forms promulgated by the Texas Real
Estate Commission.
Texas license holders must use TREC-promulgated forms, unless another is required
by the property owner or otherwise fits one of the four specific exemptions under TREC
Rules: TREC does not promulgate contract forms for commercial transactions or leases,
except for two temporary residential lease forms which are part of a sales contract. The
blanks may be filled in at the direction of the consumers who make final decisions and
sign the contract. However, real estate license holders who are not lawyers must be
careful to avoid any appearance of the Unauthorized Practice of Law. The broker and
salespersons are special agents hired for a very narrow purpose, which does not
ordinarily include signing the name of the principal.
• A ruling by TREC can be appealed to a district court. -✓✓ True
• TREC is authorized to settle commission -✓✓ False, the commission does not mediate
disputes between or among licensees concerning entitlement to sales commissions, nor
does it recommend individual licensees to the public.
• TREC is authorized to hold hearings and subpoena witnesses. -✓✓ True
• TREC has the power to suspend or revoke a license and to place on probation or
reprimand a license. -✓✓ True
• A real estate licensee may legally fill in contract forms that have been promulgated by
the Commission. -✓✓ True
• Contract forms are drafted and revised by the Real Estate Broker-Lawyer Committee. -
✓✓ True
• The Texas Real Estate Commission consist of nine members. -✓✓ True- The Texas
Real Estate Commission (TREC) consists of six brokers and three public members,
appointed by the Governor to staggered six-years terms.
, • The fund administered by TREC for reimbursing aggrieved persons who suffer actual
damages by acts committed by a licensee is the Real Estate Recovery Trust Account -
✓✓ True
• Each applicant pays a fee $100 at the time of application to the recovery fund. -✓✓ a
$10 fee is paid to he recovery fund.
• The recovery fund maximum per transaction is $50,000. -✓✓ True- The recovery fund
maximum is $50,000 per transaction and $100,000 per licensee, regardless of the
number of claimants.
• Licensees may use forms promulgated or approved by the Commission, prepared by
an attorney licensed in Texas, or prepared by the property owner. -✓✓ True
• A person who refers prospective buyers to a licensed broker for another person and
for a fee or valuable consideration, to be received either now or in the future, must have
a license. -✓✓ True
• A person who negotiates on behalf of a buyer for the purchase of a business
opportunity that does not include any real property is NOT required to hold a license. -
✓✓ True
• An applicant for a salesperson's license is legally authorized to practice real estate
after completing the required education, acquiring a sponsoring broker, and passing the
license examination. -✓✓ The new licensee may not practice real estate for another
person for a fee until the sponsoring broker receives the license.
• When calling a real estate auction, an auctioneer who holds an auctioneer's license
must also hold a real estate license. -✓✓ The auctioneer is exempt in this circumstance.
• Attorneys-at-law licensed in Texas are exempt from the licensing requirements of the
Real Estate License Act as long as they are not attempting to hire others to conduct the
business of a broker without a license to do so. -✓✓ True
• Someone who, for another and or a fee, commission, or other valuable consideration,
list or sells real estate must hold a real estate license (unless otherwise exempt) -✓✓
True
• In order for a corporation to engage in real estate brokerage, the entity must be
licensed and all officers must be licensed as brokers. -✓✓ The entity plus at least one
officer must hold a broker's license.
• To be eligible for a salesperson's license, an individual must be a U.S. citizen or legal
alien and a resident of Texas at the time of filing. -✓✓ True
