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1. The Texas Real Estate Commission (TREC) was created to:
a) Enforce federal fair housing laws
b) Regulate and license real estate professionals in Texas
c) Set property tax rates
d) Develop state land policies
Answer: b)
Rationale: TREC’s main function is to license and regulate real estate
professionals in Texas, ensuring compliance with state laws.
2. A Texas real estate license must be renewed every:
a) 1 year
b) 2 years
c) 3 years
d) 4 years
Answer: b)
Rationale: In Texas, real estate licenses are renewed every two years,
along with required continuing education.
,3. The Texas Real Estate License Act (TRELA) is found in which part of state
law?
a) Texas Property Code
b) Texas Business & Commerce Code
c) Texas Occupations Code
d) Texas Administrative Code
Answer: c)
Rationale: TRELA is codified in the Texas Occupations Code, Title 7,
Chapter 1101.
4. Which of the following is NOT a power of TREC?
a) Issue subpoenas
b) Conduct investigations
c) Enforce criminal penalties
d) Revoke licenses
Answer: c)
Rationale: TREC can enforce administrative sanctions but cannot
impose criminal penalties; those are handled by courts.
5. A real estate agent represents the:
a) Principal
b) Broker
c) Customer
d) State
Answer: b)
Rationale: In Texas, the sales agent represents the broker, who in turn
represents the client.
6. A broker must maintain records of all transactions for at least:
a) 1 year
b) 2 years
c) 3 years
, d) 4 years
Answer: c)
Rationale: Texas law requires brokers to keep transaction records for a
minimum of three years.
7. A sales agent may accept a commission only from:
a) The client
b) The seller
c) Their sponsoring broker
d) The buyer
Answer: c)
Rationale: Agents in Texas can only receive compensation through their
sponsoring broker.
8. A broker owes fiduciary duties to:
a) The buyer only
b) The seller only
c) The principal/client
d) All parties equally
Answer: c)
Rationale: Fiduciary duties are owed to the principal, which could be
either the buyer or the seller depending on the agreement.
9. Which of the following would terminate a listing agreement?
a) Death of the broker
b) Death of the salesperson
c) Temporary withdrawal of the property
d) Assignment to another agent
Answer: a)
Rationale: The death of the broker terminates the listing; the
salesperson’s death does not.