TREC State Exam Practice Questions
and Answers | Latest Version |
2025/2026 | Correct & Verified
What does “TREC” stand for?
A) Texas Real Estate Council
B) Texas Realtor Education Center
✔✔C) Texas Real Estate Commission
D) Texas Residential Exchange Committee
Which entity regulates licensing requirements for real estate sales agents in Texas?
A) Texas Bar Association
✔✔B) TREC
C) Texas Housing Board
D) Texas Board of Appraisers
How many members serve on the Texas Real Estate Commission?
A) 5
✔✔B) 9
C) 11
D) 7
1
,A real estate license applicant in Texas must complete how many hours of approved qualifying
real estate education?
✔✔A) 180 hours
B) 120 hours
C) 90 hours
D) 60 hours
A license holder who fails to respond to a TREC subpoena could result in:
A) A warning letter
✔✔B) TREC filing suit with the Attorney General to enforce the subpoena
C) Immediate license revocation without hearing
D) A fine under $100
What type of agency disclosure must a broker provide to both buyer and seller?
A) Contract summary
✔✔B) Information About Brokerage Services (IABS)
C) Property disclosure statement
D) Appraisal waiver
Which of the following is a fiduciary duty owed by a license holder to a client?
A) Neutrality
✔✔B) Loyalty
C) Advertising helper
2
,D) Title insurance provision
Which contract element ensures both parties agree to the same terms?
A) Legal description
B) Earnest money
✔✔C) Mutual assent
D) Loan approval
Which document establishes the terms under which a broker can list a property for sale?
A) Buyer representation agreement
✔✔B) Listing agreement
C) Lease
D) Promissory note
In Texas, real estate commissions are generally:
A) Set by TREC
✔✔B) Negotiated between broker and client
C) Fixed by law
D) Determined by the National Association of Realtors
What must a license holder do with earnest money received from a buyer?
A) Return it immediately
✔✔B) Deposit it into escrow according to TREC rules
3
, C) Use it for marketing
D) Hold until closing
Which of the following best describes a “homestead” under Texas law?
A) Business property
✔✔B) A primary residence with special protections
C) Agricultural land only
D) Rental property
Which of these actions could violate TREC advertising rules?
A) Publishing property photos
✔✔B) Failing to include the broker’s name in advertisements
C) Sending mailers to prospects
D) Hosting an open house
In a real estate dispute, TREC has authority to:
✔✔A) Revoke or suspend licenses
B) Award monetary damages to homeowners
C) Set commission percentages
D) Provide legal counsel to license holders
A listing agreement must include all EXCEPT:
A) Property description
4
and Answers | Latest Version |
2025/2026 | Correct & Verified
What does “TREC” stand for?
A) Texas Real Estate Council
B) Texas Realtor Education Center
✔✔C) Texas Real Estate Commission
D) Texas Residential Exchange Committee
Which entity regulates licensing requirements for real estate sales agents in Texas?
A) Texas Bar Association
✔✔B) TREC
C) Texas Housing Board
D) Texas Board of Appraisers
How many members serve on the Texas Real Estate Commission?
A) 5
✔✔B) 9
C) 11
D) 7
1
,A real estate license applicant in Texas must complete how many hours of approved qualifying
real estate education?
✔✔A) 180 hours
B) 120 hours
C) 90 hours
D) 60 hours
A license holder who fails to respond to a TREC subpoena could result in:
A) A warning letter
✔✔B) TREC filing suit with the Attorney General to enforce the subpoena
C) Immediate license revocation without hearing
D) A fine under $100
What type of agency disclosure must a broker provide to both buyer and seller?
A) Contract summary
✔✔B) Information About Brokerage Services (IABS)
C) Property disclosure statement
D) Appraisal waiver
Which of the following is a fiduciary duty owed by a license holder to a client?
A) Neutrality
✔✔B) Loyalty
C) Advertising helper
2
,D) Title insurance provision
Which contract element ensures both parties agree to the same terms?
A) Legal description
B) Earnest money
✔✔C) Mutual assent
D) Loan approval
Which document establishes the terms under which a broker can list a property for sale?
A) Buyer representation agreement
✔✔B) Listing agreement
C) Lease
D) Promissory note
In Texas, real estate commissions are generally:
A) Set by TREC
✔✔B) Negotiated between broker and client
C) Fixed by law
D) Determined by the National Association of Realtors
What must a license holder do with earnest money received from a buyer?
A) Return it immediately
✔✔B) Deposit it into escrow according to TREC rules
3
, C) Use it for marketing
D) Hold until closing
Which of the following best describes a “homestead” under Texas law?
A) Business property
✔✔B) A primary residence with special protections
C) Agricultural land only
D) Rental property
Which of these actions could violate TREC advertising rules?
A) Publishing property photos
✔✔B) Failing to include the broker’s name in advertisements
C) Sending mailers to prospects
D) Hosting an open house
In a real estate dispute, TREC has authority to:
✔✔A) Revoke or suspend licenses
B) Award monetary damages to homeowners
C) Set commission percentages
D) Provide legal counsel to license holders
A listing agreement must include all EXCEPT:
A) Property description
4
