TEXAS STATE PORTION REAL ESTATE EXAM
Questions and Verified Answers
1. How many members are in TREC?
Answer 9: 3 general public, 6 brokers
Explanation: The Texas Real Estate Commission (TREC) consists of 9
members: 3 public members and 6 licensed brokers.
2. Who appoints and confirms TREC members?
Answer Governor appoints, Senate approves
Explanation: The Texas Governor appoints TREC members, and the
Texas Senate confirms the appointments.
3. How many members are on the Broker-Lawyer Committee?
Answer 13: 6 brokers, 6 lawyers, 1 public member
Explanation: The committee has 13 members: 6 brokers, 6 lawyers, and
1 public member.
4. Who appoints the Broker-Lawyer Committee members?
Answer Brokers/TREC, Lawyers/Pres of State Bar, Public
Member/Governor
Explanation: Brokers and TREC appoint broker members, lawyers and
,the State Bar President appoint lawyer members, and the Governor
appoints the public member.
5. Where is the Real Estate Advisory Committee located?
Answer Texas A&M
Explanation: The committee is based at Texas A&M University.
6. Who is on the Real Estate Advisory Committee?
Answer 10 members: 6 brokers, 3 public members, 1 ex TREC officio
Explanation: The committee comprises 10 members, including brokers
and public members, plus one ex officio TREC member.
7. How long does an individual have after an incident to file a
complaint against a license holder?
Answer 4 years
Explanation: The statute of limitations for filing complaints is 4 years
from the incident.
8. If your license is revoked by TREC, you may:
Answer Appeal to the district court
Explanation: Revoked licenses can be appealed to the district court.
,9. Brokerage without a license is defined as a:
Answer Class A Misdemeanor
Explanation: Engaging in brokerage activities without a license is a Class
A Misdemeanor in Texas.
10. Penalties for brokerage without a license include:
Answer Fine up to $4,000; imprisonment in county jail for not more
than 1 year, or both
Explanation: Penalties include fines and potential jail time.
11. Additional penalties for unlicensed brokerage:
Answer Civil penalties up to three times the amount received
Explanation: Civil penalties can be up to three times the unlawful
earnings.
12. The Real Estate Recovery Account was created to:
Answer Pay persons who suffer monetary losses due to unscrupulous
license holders
Explanation: It protects consumers by compensating victims of licensee
misconduct.
13. If the Real Estate Recovery Trust Account is below $1 million:
, Answer Brokers and licensees pay a pro-rata share of $10 upon license
renewal
Explanation: Licensees contribute $10 at renewal if the fund is below
threshold.
14. If the Trust Account exceeds $3.5 million:
Answer The excess goes into the State's General Fund
Explanation: Surplus funds above $3.5 million are transferred to the
state.
15. When a payout is made from the Real Estate Recovery Trust
Account:
Answer The license can be suspended or revoked; it may never be
recovered until paid back with interest
Explanation: The licensee's license may be affected until repayment.
16. Maximum payable by the Real Estate Recovery Trust Account per
license holder and transaction:
Answer $100,000 per license holder; $50,000 per transaction
Explanation: These are the statutory limits.
17. Does TREC resolve disputes between license holders?
Questions and Verified Answers
1. How many members are in TREC?
Answer 9: 3 general public, 6 brokers
Explanation: The Texas Real Estate Commission (TREC) consists of 9
members: 3 public members and 6 licensed brokers.
2. Who appoints and confirms TREC members?
Answer Governor appoints, Senate approves
Explanation: The Texas Governor appoints TREC members, and the
Texas Senate confirms the appointments.
3. How many members are on the Broker-Lawyer Committee?
Answer 13: 6 brokers, 6 lawyers, 1 public member
Explanation: The committee has 13 members: 6 brokers, 6 lawyers, and
1 public member.
4. Who appoints the Broker-Lawyer Committee members?
Answer Brokers/TREC, Lawyers/Pres of State Bar, Public
Member/Governor
Explanation: Brokers and TREC appoint broker members, lawyers and
,the State Bar President appoint lawyer members, and the Governor
appoints the public member.
5. Where is the Real Estate Advisory Committee located?
Answer Texas A&M
Explanation: The committee is based at Texas A&M University.
6. Who is on the Real Estate Advisory Committee?
Answer 10 members: 6 brokers, 3 public members, 1 ex TREC officio
Explanation: The committee comprises 10 members, including brokers
and public members, plus one ex officio TREC member.
7. How long does an individual have after an incident to file a
complaint against a license holder?
Answer 4 years
Explanation: The statute of limitations for filing complaints is 4 years
from the incident.
8. If your license is revoked by TREC, you may:
Answer Appeal to the district court
Explanation: Revoked licenses can be appealed to the district court.
,9. Brokerage without a license is defined as a:
Answer Class A Misdemeanor
Explanation: Engaging in brokerage activities without a license is a Class
A Misdemeanor in Texas.
10. Penalties for brokerage without a license include:
Answer Fine up to $4,000; imprisonment in county jail for not more
than 1 year, or both
Explanation: Penalties include fines and potential jail time.
11. Additional penalties for unlicensed brokerage:
Answer Civil penalties up to three times the amount received
Explanation: Civil penalties can be up to three times the unlawful
earnings.
12. The Real Estate Recovery Account was created to:
Answer Pay persons who suffer monetary losses due to unscrupulous
license holders
Explanation: It protects consumers by compensating victims of licensee
misconduct.
13. If the Real Estate Recovery Trust Account is below $1 million:
, Answer Brokers and licensees pay a pro-rata share of $10 upon license
renewal
Explanation: Licensees contribute $10 at renewal if the fund is below
threshold.
14. If the Trust Account exceeds $3.5 million:
Answer The excess goes into the State's General Fund
Explanation: Surplus funds above $3.5 million are transferred to the
state.
15. When a payout is made from the Real Estate Recovery Trust
Account:
Answer The license can be suspended or revoked; it may never be
recovered until paid back with interest
Explanation: The licensee's license may be affected until repayment.
16. Maximum payable by the Real Estate Recovery Trust Account per
license holder and transaction:
Answer $100,000 per license holder; $50,000 per transaction
Explanation: These are the statutory limits.
17. Does TREC resolve disputes between license holders?
