Texas Real Estate Salesperson EXAM PRACTICE
TEST QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES | INSTANT
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1. Which of the following is required for someone to obtain a real estate license in Texas?
A. Must be at least 18 years old
B. Must complete required education courses
C. Must have a four-year college degree
D. Must pass the state licensing exam
*Correct: A, B, D – A licensee must be at least 18, complete pre-licensing education, and pass the
state exam; a college degree is not required.
2. What is the primary purpose of the Texas Real Estate Commission (TREC)?
A. To set real estate prices
B. To enforce real estate laws
C. To approve mortgage rates
D. To provide home loans
*Correct: B – TREC enforces real estate laws, oversees licensing, and ensures compliance.
3. In Texas, which of these types of property can a licensed salesperson sell?
A. Residential
B. Commercial
C. Industrial
D. All of the above
*Correct: D – A licensed salesperson may handle residential, commercial, and industrial real
estate transactions.
4. Which type of listing agreement provides the highest protection to the broker?
A. Open listing
B. Exclusive agency listing
,C. Exclusive right-to-sell listing
D. Net listing
*Correct: C – An exclusive right-to-sell agreement guarantees the broker receives a commission
no matter who sells the property.
5. How long must a real estate licensee keep records of transactions in Texas?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
*Correct: B – Texas law requires maintaining transaction records for at least 4 years (some
sources say 4; double-check TREC rules).
6. What is required for a valid real estate contract in Texas?
A. Written agreement
B. Offer and acceptance
C. Consideration
D. All of the above
*Correct: D – A valid contract requires a written agreement, mutual consent, and consideration.
7. Which type of agency relationship exists when a broker represents a seller?
A. Buyer’s agent
B. Seller’s agent
C. Dual agent
D. Transaction broker
*Correct: B – When representing the seller, the broker is a seller’s agent and owes fiduciary
duties to the seller.
8. What is the term for the unauthorized practice of law in Texas real estate?
A. Misrepresentation
B. Practicing without a license
C. Drafting legal contracts for others
D. Offering financing
*Correct: C – Licensees cannot give legal advice or draft contracts that require legal expertise.
9. Which of the following must be included in a seller’s disclosure notice?
A. Material defects in the property
B. Pending lawsuits against the seller
C. Property tax history
D. Neighborhood demographics
, *Correct: A – The seller’s disclosure must reveal known material defects affecting the property’s
value.
10. In Texas, a lease for more than how many months must be in writing to be enforceable?
A. 6 months
B. 12 months
C. 18 months
D. 24 months
*Correct: B – Leases longer than 12 months must be in writing according to the Statute of
Frauds.
11. Which of the following constitutes a violation of fair housing laws?
A. Refusing to rent to a family with children
B. Offering different terms based on race
C. Steering clients to certain neighborhoods
D. All of the above
*Correct: D – All listed actions violate federal and state fair housing laws.
12. What is the purpose of an earnest money deposit?
A. To pay the broker
B. To compensate the buyer
C. To show buyer’s good faith
D. To cover closing costs
*Correct: C – Earnest money demonstrates the buyer’s commitment to completing the
transaction.
13. Which type of deed provides the greatest protection to the buyer?
A. General warranty deed
B. Special warranty deed
C. Quitclaim deed
D. Bargain and sale deed
*Correct: A – A general warranty deed guarantees the property is free of defects and grants full
legal protection to the buyer.
14. What is the maximum amount a licensee may receive from the Texas Real Estate Recovery
Trust Account for a single transaction?
A. $25,000
B. $50,000
C. $100,000
TEST QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES | INSTANT
DOWNLOAD PDF
1. Which of the following is required for someone to obtain a real estate license in Texas?
A. Must be at least 18 years old
B. Must complete required education courses
C. Must have a four-year college degree
D. Must pass the state licensing exam
*Correct: A, B, D – A licensee must be at least 18, complete pre-licensing education, and pass the
state exam; a college degree is not required.
2. What is the primary purpose of the Texas Real Estate Commission (TREC)?
A. To set real estate prices
B. To enforce real estate laws
C. To approve mortgage rates
D. To provide home loans
*Correct: B – TREC enforces real estate laws, oversees licensing, and ensures compliance.
3. In Texas, which of these types of property can a licensed salesperson sell?
A. Residential
B. Commercial
C. Industrial
D. All of the above
*Correct: D – A licensed salesperson may handle residential, commercial, and industrial real
estate transactions.
4. Which type of listing agreement provides the highest protection to the broker?
A. Open listing
B. Exclusive agency listing
,C. Exclusive right-to-sell listing
D. Net listing
*Correct: C – An exclusive right-to-sell agreement guarantees the broker receives a commission
no matter who sells the property.
5. How long must a real estate licensee keep records of transactions in Texas?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
*Correct: B – Texas law requires maintaining transaction records for at least 4 years (some
sources say 4; double-check TREC rules).
6. What is required for a valid real estate contract in Texas?
A. Written agreement
B. Offer and acceptance
C. Consideration
D. All of the above
*Correct: D – A valid contract requires a written agreement, mutual consent, and consideration.
7. Which type of agency relationship exists when a broker represents a seller?
A. Buyer’s agent
B. Seller’s agent
C. Dual agent
D. Transaction broker
*Correct: B – When representing the seller, the broker is a seller’s agent and owes fiduciary
duties to the seller.
8. What is the term for the unauthorized practice of law in Texas real estate?
A. Misrepresentation
B. Practicing without a license
C. Drafting legal contracts for others
D. Offering financing
*Correct: C – Licensees cannot give legal advice or draft contracts that require legal expertise.
9. Which of the following must be included in a seller’s disclosure notice?
A. Material defects in the property
B. Pending lawsuits against the seller
C. Property tax history
D. Neighborhood demographics
, *Correct: A – The seller’s disclosure must reveal known material defects affecting the property’s
value.
10. In Texas, a lease for more than how many months must be in writing to be enforceable?
A. 6 months
B. 12 months
C. 18 months
D. 24 months
*Correct: B – Leases longer than 12 months must be in writing according to the Statute of
Frauds.
11. Which of the following constitutes a violation of fair housing laws?
A. Refusing to rent to a family with children
B. Offering different terms based on race
C. Steering clients to certain neighborhoods
D. All of the above
*Correct: D – All listed actions violate federal and state fair housing laws.
12. What is the purpose of an earnest money deposit?
A. To pay the broker
B. To compensate the buyer
C. To show buyer’s good faith
D. To cover closing costs
*Correct: C – Earnest money demonstrates the buyer’s commitment to completing the
transaction.
13. Which type of deed provides the greatest protection to the buyer?
A. General warranty deed
B. Special warranty deed
C. Quitclaim deed
D. Bargain and sale deed
*Correct: A – A general warranty deed guarantees the property is free of defects and grants full
legal protection to the buyer.
14. What is the maximum amount a licensee may receive from the Texas Real Estate Recovery
Trust Account for a single transaction?
A. $25,000
B. $50,000
C. $100,000
