TEXAS REAL ESTATE EXAM; STATE PORTION |
COMPLETE QUESTIONS AND VERIFIED
ANSWERS | 2026 UPDATE | LATEST VERSION
• Texas Real Estate Commission (TREC) -✓✓ -created in 1949
-purpose: to administer the provisions of the License Act
-authority to make rules and regulations
-9 members (3 represent the general public, 6 are real estate brokers)
-all appointed by the governor and approved by the Senate
-serve 6 year terms
-has the power to subpoena books, records, and witnesses
-has the power to issue or revoke Real Estate Licenses
• Broker Lawyer Committee -✓✓ -writes promulgated contract forms
-13 members (6 are brokers appointed by TREC, 6 are lawyers appointed by the
President of the State Bar Association, 1 is a public member appointed by the
governor)
• Real Estate Recovery Fund -✓✓ created by TREC to pay aggrieved persons who
suffered a monetary loss due to unscrupulous acts of the licensees
-persons can receive up to 3 times the amount of money lost
-when an amount is paid out of it, the license of the individual is automatically
revoked or suspended without a hearing (cannot be recovered until the fund has
been repaid with interest)
• persons who must have a real estate license -✓✓ 1.attorneys who participate in a
commission split
2.auctioneers involved in a real estate transaction
, 3.apartment locators
4.real estate salespeople
5.the designated officer of a licensed real estate corporation or the designated
manager of a licensed Real Estate Limited Liability Company (the designated one
is a broker)
1-4 MUST BE SPONSORED BY A BROKER AND RECEIVE COMMISSIONS
ONLY FROM THAT BROKER
• steps in obtaining a real estate license -✓✓ 1. meet the educational requirements
2. submit an application with or without a sponsoring broker
3. submit the required fees
4. pass the state exam
5. demonstrate integrity
• licensing requirements -✓✓ -18 years of age
-resident of Texas at the time of application
-comply with legal residency requirements (not an illegal alien)
• educational requirements -✓✓ 180 classroom hours with a minimum of 120 in
core real estate courses
-60 hours in Principles of Real Estate, 30 hours in Law of Contracts, 30 hours in
the Law of Agency are mandatory
• TREC Consumer information form 1-1 -✓✓ -notifies the public of the recovery
fund
-applies to both real estate licensees and inspectors
COMPLETE QUESTIONS AND VERIFIED
ANSWERS | 2026 UPDATE | LATEST VERSION
• Texas Real Estate Commission (TREC) -✓✓ -created in 1949
-purpose: to administer the provisions of the License Act
-authority to make rules and regulations
-9 members (3 represent the general public, 6 are real estate brokers)
-all appointed by the governor and approved by the Senate
-serve 6 year terms
-has the power to subpoena books, records, and witnesses
-has the power to issue or revoke Real Estate Licenses
• Broker Lawyer Committee -✓✓ -writes promulgated contract forms
-13 members (6 are brokers appointed by TREC, 6 are lawyers appointed by the
President of the State Bar Association, 1 is a public member appointed by the
governor)
• Real Estate Recovery Fund -✓✓ created by TREC to pay aggrieved persons who
suffered a monetary loss due to unscrupulous acts of the licensees
-persons can receive up to 3 times the amount of money lost
-when an amount is paid out of it, the license of the individual is automatically
revoked or suspended without a hearing (cannot be recovered until the fund has
been repaid with interest)
• persons who must have a real estate license -✓✓ 1.attorneys who participate in a
commission split
2.auctioneers involved in a real estate transaction
, 3.apartment locators
4.real estate salespeople
5.the designated officer of a licensed real estate corporation or the designated
manager of a licensed Real Estate Limited Liability Company (the designated one
is a broker)
1-4 MUST BE SPONSORED BY A BROKER AND RECEIVE COMMISSIONS
ONLY FROM THAT BROKER
• steps in obtaining a real estate license -✓✓ 1. meet the educational requirements
2. submit an application with or without a sponsoring broker
3. submit the required fees
4. pass the state exam
5. demonstrate integrity
• licensing requirements -✓✓ -18 years of age
-resident of Texas at the time of application
-comply with legal residency requirements (not an illegal alien)
• educational requirements -✓✓ 180 classroom hours with a minimum of 120 in
core real estate courses
-60 hours in Principles of Real Estate, 30 hours in Law of Contracts, 30 hours in
the Law of Agency are mandatory
• TREC Consumer information form 1-1 -✓✓ -notifies the public of the recovery
fund
-applies to both real estate licensees and inspectors
