Texas State Portion Real Estate Exam
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is required for an enforceable real estate contract involving land in Texas?
✔✔The contract must be in writing due to the Statute of Frauds.
What is a material fact in Texas real estate?
✔✔Information that could influence a buyer’s decision regarding a property.
Which type of agency requires written consent from all parties?
✔✔Dual agency.
What is the primary duty of a listing agent to a seller?
✔✔To market the property, negotiate offers, and act in the seller’s best interest.
Which action can lead to license suspension or revocation by TREC?
✔✔Fraud, misrepresentation, negligence, or violation of real estate laws.
What is the purpose of an earnest money deposit?
✔✔To demonstrate the buyer’s commitment to purchase the property.
Which Texas law requires lenders to provide loan disclosures and terms to borrowers?
1
,✔✔Texas Deceptive Trade Practices Act and federal Truth in Lending Act (TILA).
What is a key responsibility of a buyer’s agent?
✔✔Advocate for the buyer, disclose material facts, and negotiate favorable terms.
Which type of listing allows the seller to pay a commission only if the broker sells the property?
✔✔Exclusive agency listing.
What is the legal effect of signing a counteroffer in Texas?
✔✔It rejects the original offer and becomes a new offer.
Which Texas law protects consumers from unfair business practices in real estate transactions?
✔✔Texas Deceptive Trade Practices Act (DTPA).
Which document conveys ownership from seller to buyer?
✔✔Deed.
Which form must be provided to a potential buyer at the first substantive communication in
Texas?
✔✔Information About Brokerage Services (IABS) form.
What is required for a real estate license applicant in Texas?
2
,✔✔Completion of pre-licensing education, passing the state and national exams, and meeting
eligibility requirements.
How long is a standard Texas real estate license valid before renewal?
✔✔Two years.
What must a license holder disclose if they have a personal interest in a property transaction?
✔✔Their ownership or interest in the property to all parties involved.
What is the maximum fine TREC can impose for a violation of real estate law?
✔✔$5,000 per violation.
What is a common duty of a real estate agent to their client?
✔✔Loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting.
Which type of agency relationship represents the seller exclusively?
✔✔Seller’s agent.
What is dual agency in Texas?
✔✔When a broker represents both the buyer and seller in the same transaction with informed
consent.
3
, What is required for a valid real estate contract in Texas?
✔✔Offer and acceptance, legal purpose, consideration, and parties with legal capacity.
Which form of property ownership allows co-owners to have undivided interests without rights
of survivorship?
✔✔Tenancy in common.
Which type of deed provides the most protection to a buyer?
✔✔General warranty deed.
What is the primary purpose of a seller’s disclosure notice?
✔✔To inform buyers of known property defects and material facts affecting value or safety.
When can a Texas real estate license holder legally accept compensation from someone other
than their broker?
✔✔Never; all compensation must go through the sponsoring broker.
What is a key responsibility of a broker supervising agents?
✔✔Ensuring compliance with TREC rules and real estate laws.
Which federal law prohibits discrimination in housing based on race, color, religion, sex, familial
status, or national origin?
4
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is required for an enforceable real estate contract involving land in Texas?
✔✔The contract must be in writing due to the Statute of Frauds.
What is a material fact in Texas real estate?
✔✔Information that could influence a buyer’s decision regarding a property.
Which type of agency requires written consent from all parties?
✔✔Dual agency.
What is the primary duty of a listing agent to a seller?
✔✔To market the property, negotiate offers, and act in the seller’s best interest.
Which action can lead to license suspension or revocation by TREC?
✔✔Fraud, misrepresentation, negligence, or violation of real estate laws.
What is the purpose of an earnest money deposit?
✔✔To demonstrate the buyer’s commitment to purchase the property.
Which Texas law requires lenders to provide loan disclosures and terms to borrowers?
1
,✔✔Texas Deceptive Trade Practices Act and federal Truth in Lending Act (TILA).
What is a key responsibility of a buyer’s agent?
✔✔Advocate for the buyer, disclose material facts, and negotiate favorable terms.
Which type of listing allows the seller to pay a commission only if the broker sells the property?
✔✔Exclusive agency listing.
What is the legal effect of signing a counteroffer in Texas?
✔✔It rejects the original offer and becomes a new offer.
Which Texas law protects consumers from unfair business practices in real estate transactions?
✔✔Texas Deceptive Trade Practices Act (DTPA).
Which document conveys ownership from seller to buyer?
✔✔Deed.
Which form must be provided to a potential buyer at the first substantive communication in
Texas?
✔✔Information About Brokerage Services (IABS) form.
What is required for a real estate license applicant in Texas?
2
,✔✔Completion of pre-licensing education, passing the state and national exams, and meeting
eligibility requirements.
How long is a standard Texas real estate license valid before renewal?
✔✔Two years.
What must a license holder disclose if they have a personal interest in a property transaction?
✔✔Their ownership or interest in the property to all parties involved.
What is the maximum fine TREC can impose for a violation of real estate law?
✔✔$5,000 per violation.
What is a common duty of a real estate agent to their client?
✔✔Loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting.
Which type of agency relationship represents the seller exclusively?
✔✔Seller’s agent.
What is dual agency in Texas?
✔✔When a broker represents both the buyer and seller in the same transaction with informed
consent.
3
, What is required for a valid real estate contract in Texas?
✔✔Offer and acceptance, legal purpose, consideration, and parties with legal capacity.
Which form of property ownership allows co-owners to have undivided interests without rights
of survivorship?
✔✔Tenancy in common.
Which type of deed provides the most protection to a buyer?
✔✔General warranty deed.
What is the primary purpose of a seller’s disclosure notice?
✔✔To inform buyers of known property defects and material facts affecting value or safety.
When can a Texas real estate license holder legally accept compensation from someone other
than their broker?
✔✔Never; all compensation must go through the sponsoring broker.
What is a key responsibility of a broker supervising agents?
✔✔Ensuring compliance with TREC rules and real estate laws.
Which federal law prohibits discrimination in housing based on race, color, religion, sex, familial
status, or national origin?
4
