TREC State Exam Questions & Answers
2025/2026
When was TREC Created? - ANSWERS1939
What Does TREC have the authority to do? - ANSWERSMake rules and regulations
How many members are in TREC - ANSWERS9 Members
6 Brokers
3 General Public
How are TREC members appointed? - ANSWERSBy the governor or senate
What happens if a License Holder fails to respond to a subpoena - ANSWERSTREC can file a suit
with the attorney general
Who writes promulgated contract forms - ANSWERSThe broker Lawyer Committee
How many members are on the Broker Lawyer Committee? - ANSWERS13 Members
6 Brokers - appointed by TREC
6 Lawyers - appointed by state bar association
1 public member appointed by the governor
,Where is the Real Estate Center? - ANSWERSTexas A&M
How many members are on the Texas A&M advisory Committee? - ANSWERS10 appointed by
the governor
6 are brokers licensed for 5 years
3 representing the public
1 ex-official representing TREC
How long does a individual have to file a complaint with TREC? - ANSWERS4 years from the
effective date of contract, or the date of the incident
What does TREC have the power to do? - ANSWERSIssue or revoke a Real Estate License
Where are TREC hearings held? - ANSWERSAustin, unless a license holder requests the hearing
be held in their county
What happens if a license holder fails to respond to a summons from TREC - ANSWERSTREC will
automatically schedule a revocation/suspension hearing
What can you do if you license is revoked by TREC? - ANSWERSYou can appeal the decision to
the district court
What happens if a person engages in real estate brokerage without having a secured license
from TREC? - ANSWERSGuilty of a class A misdemeanor, subject to a fine not more than 4K or
imprisonment in the country jail
The broker who profited is liable for 3x's the amount recieved
, What is the penalty for violation of the License Act? - ANSWERS$5,000 per day for violation of
the license act by any person; licensed or unlicensed
What is the Real Estate Recovery Trust Account - ANSWERSCreated by TREC to pay aggrieved
persons who suffered a monetary due to acts of a license holder
How much money can an aggrieved person receive from the recovery trust account? -
ANSWERS3x's the amount of money lost
What happens if the recovery trust account is less than 1 million? - ANSWERSTREC could make
agents pay the renal fee ($10) of their license or whatever necessary to bring the amount to
1,700,000
What happens if the Recovery Trust account exceeds 3.5 Million? - ANSWERSThe excess goes
into the states general fund
What happens when Recovery Trust Account balance is not below 1 million - ANSWERSTREC
simply continues to invest funds
What happens to the licensee when TREC pays an amount out of the Recovery Trust Account -
ANSWERSThe license of the individual may be revoked or suspended.
The license may never be recovered until the account has been repaid with interest
What is the max payments TREC will pay out of the Recovery Trust? - ANSWERS100,000 per
license holder and 50,000 per transaction
Who is required to have a real estate license? - ANSWERS-Attorneys participating in a
commission split
2025/2026
When was TREC Created? - ANSWERS1939
What Does TREC have the authority to do? - ANSWERSMake rules and regulations
How many members are in TREC - ANSWERS9 Members
6 Brokers
3 General Public
How are TREC members appointed? - ANSWERSBy the governor or senate
What happens if a License Holder fails to respond to a subpoena - ANSWERSTREC can file a suit
with the attorney general
Who writes promulgated contract forms - ANSWERSThe broker Lawyer Committee
How many members are on the Broker Lawyer Committee? - ANSWERS13 Members
6 Brokers - appointed by TREC
6 Lawyers - appointed by state bar association
1 public member appointed by the governor
,Where is the Real Estate Center? - ANSWERSTexas A&M
How many members are on the Texas A&M advisory Committee? - ANSWERS10 appointed by
the governor
6 are brokers licensed for 5 years
3 representing the public
1 ex-official representing TREC
How long does a individual have to file a complaint with TREC? - ANSWERS4 years from the
effective date of contract, or the date of the incident
What does TREC have the power to do? - ANSWERSIssue or revoke a Real Estate License
Where are TREC hearings held? - ANSWERSAustin, unless a license holder requests the hearing
be held in their county
What happens if a license holder fails to respond to a summons from TREC - ANSWERSTREC will
automatically schedule a revocation/suspension hearing
What can you do if you license is revoked by TREC? - ANSWERSYou can appeal the decision to
the district court
What happens if a person engages in real estate brokerage without having a secured license
from TREC? - ANSWERSGuilty of a class A misdemeanor, subject to a fine not more than 4K or
imprisonment in the country jail
The broker who profited is liable for 3x's the amount recieved
, What is the penalty for violation of the License Act? - ANSWERS$5,000 per day for violation of
the license act by any person; licensed or unlicensed
What is the Real Estate Recovery Trust Account - ANSWERSCreated by TREC to pay aggrieved
persons who suffered a monetary due to acts of a license holder
How much money can an aggrieved person receive from the recovery trust account? -
ANSWERS3x's the amount of money lost
What happens if the recovery trust account is less than 1 million? - ANSWERSTREC could make
agents pay the renal fee ($10) of their license or whatever necessary to bring the amount to
1,700,000
What happens if the Recovery Trust account exceeds 3.5 Million? - ANSWERSThe excess goes
into the states general fund
What happens when Recovery Trust Account balance is not below 1 million - ANSWERSTREC
simply continues to invest funds
What happens to the licensee when TREC pays an amount out of the Recovery Trust Account -
ANSWERSThe license of the individual may be revoked or suspended.
The license may never be recovered until the account has been repaid with interest
What is the max payments TREC will pay out of the Recovery Trust? - ANSWERS100,000 per
license holder and 50,000 per transaction
Who is required to have a real estate license? - ANSWERS-Attorneys participating in a
commission split
