TEXAS STATE PORTION REAL ESTATE EXAM / EXPERT-VERIFIED ACTUAL QUESTIONS & ANSWERS FOR GUARANTEED PASS | NEWEST UPDATE,
2025-2026.
Who is responsible for any wrongs done by a salesperson while acting within the scope of the agency agreement? ✔️The broker is liable for the
wrongdoing of his or her salespersons. The principal is liable for any wrongs committed by the broker while acting within the scope of the
agency agreement.
what is the distinction between sales contracts and option contracts? ✔️One characteristic of sales contracts is mutual obligation. Option
contracts lack mutual obligation. The buyer in an option contract is not obligated to buy.
A listing agreement must contain: ✔️a standard street address is sufficient.
If the commission investigates a complaint and determines that an individual's real estate license should be suspended or revoked, the licensee
is entitled to a hearing before the commission within how many days after the commission reaches its decision? ✔️A licensee who faces
suspension or revocation of their license is entitled to a hearing within 30 days of the commission reaching their decision.
Which of the licensed entities does not fall under the regulatory authority of the Texas Real Estate Commission? ✔️The Texas Appraiser
Licensing and Certification Board has jurisdiction over state licensed and certified appraisers. In addition to licensing brokers and salespersons,
the Texas Real Estate Commission is responsible for licensing real estate inspectors and for regulation of companies that sell and issue
residential service contracts ("home warranties"). (Article 65736, Vernon's Texas Civil Statutes.
A licensee in Texas may not practice law, unless licensed and authorized to do so in Texas. Practicing law includes altering contracts, or drawing
up: ✔️a deed, deed of trust, will, or other written instrument that may transfer or affect the title to land.
What penalties may a licensee who breaches the agency relationship face? ✔️A licensee who breaches the agency relationship may be sued for
damages, termination of the contract, and/or non-payment of the commission.
Undisclosed dual agency is: ✔️a violation of the TRELA.
What is the composition of the Broker-Lawyer Committee? ✔️Six broker members are appointed by the Texas Real Estate Commission; six
attorney members are appointed by the President of the State Bar of Texas. The appointees serve a term of six years with one-third of them
being appointed every two years.
A licensee must disclose any existing agency relationships to a new client. This disclosure: ✔️may be done orally or in writing.
A broker may do which of the following for an individual without actually representing the individual? ✔️A broker may obtain financing, assist in
locating a property, and prepare a contract or lease for an individual without representing the individual.
A real estate licensee must notify the real estate program manager if: ✔️A licensee must notify the real estate program manager within 20 days
of receiving any criminal complaint, information, indictment, or conviction in which the licensee is named as a defendant; or entry of a civil
court order, verdict, or judgment, against the licensee in any court of competent jurisdiction in which the subject matter therein involves any
real estate or business-related activity by the licensee.
Pamela, who lives in a suburb in which many homes are rented, decides to open a rental agency in order to assist her friends in finding suitable
renters. Pamela's conduct is ✔️unacceptable because it involves an activity for which a real estate license is required.
The sole broker of a brokerage firm has his or her real estate license suspended for two years. What would happen to the licenses of the
salespersons affiliated with this broker? ✔️If the broker's license is suspended or revoked, the salespersons' licenses are made inactive and must
be returned to the commission. A salesperson's license may be made active when the salesperson is sponsored by a new broker.
Which agency is responsible for the contract forms used by Texas licensees? ✔️The Texas Real Estate Commission
A community property with rights of survivorship agreement must: ✔️doesn't need to go through probate, must be signed by both spouses,
must include the property description, be in writing, contain wording that makes evident the intent of survivorship, and be recorded in the
county courthouse.
Generally, the most important responsibility of an agent is to: ✔️represent the financial interests of the client.
Broker Bea recently entered into a listing contract with Seller Sally. Broker Bea just learned that Sally is actually 17 years old and not married.
The listing contract is: ✔️voidable at the option of the minor.
Which of the following people would need to obtain a real estate license if they were involved in a real estate activity?
, A. the executor of an estate
B. a court-appointed guardian
C. a trustee of the bankruptcy court
D. one who sells lots in a mobile home park ✔️D. The sale of land/lots is an act of brokerage and requires that one have a license if he or she is
not the owner of the lot. The other three answers are listed as people who do not need a license in Section 3 of the Texas Real Estate License
Act.
An agency relationship may be terminated by ✔️expiration of time, agreement, rescission, abandonment, or by the death of either party.
A property owner may claim a homeowner's exemption in Texas on a residence that is both owned and occupied. The exemption reduces the
assessed value of the residence by ✔️$7,000 dollars
A broker must maintain a place of business in the state of Texas. If the location changes, the broker has how long to notify the commission?
✔️The broker must notify the commission of any change of address within 10 days.
What happens when an applicant for licensure has failed to pass the competency examination within the prescribed six-month period? ✔️The
applicant must submit a new application meeting all current requirements.
The written disclosure of agency relationships is not required if the: ✔️proposed transaction is for a residential lease for not more than one year
and no sale is being considered. Disclosure is also not required if the licensee meets with a party who is represented by another licensee.
An agency relationship may be created in all of the following ways except:
A. by ratification.
B. by estoppel.
C. by apparent authority
D. by assumed authority ✔️D. An agency relationship may be created in all of these ways except for by assumed authority.
Dave defaulted on his mortgage loan and the property was ordered to be sold at a foreclosure sale. Dave may redeem his property: ✔️A
property owner in default may redeem his or her property up until the property is sold, under the equitable right of redemption.
What should a real estate broker do with licenses coming into his or her possession? ✔️prominently display them in his or her place of business
If a broker is working as an intermediary to both parties in a transaction, the broker may collect commissions from both parties if: ✔️each party
knows exactly how much commission is collected from the other party and receives full disclosure of all facts.
A contract may be terminated by: ✔️default, performance, mutual agreement, rescission, or by the fact that it is impossible to perform.
Who is credited with actually securing a written offer? ✔️Procuring cause
Each commissioner must be: ✔️both qualified voters and residents of Texas. Only six of the members must be licensed real estate brokers.
A salesperson may split his or her commission with: ✔️anyone that is not a licensed salesperson or broker in Texas.
An exclusive-right-to-sell agreement must include: ✔️a definite termination date not subject to prior notice.
A licensee avoids mentioning negative important facts that he or she knows to be true in his or her presentation to a potential purchaser of real
property. The licensee: ✔️may be charged with misrepresentation by omission.
Each TREC member is appointed for a minimum term of ____ . ✔️6 years, or until a successor is appointed.
For a two-year lease, a landlord may record, instead of the actual lease, a: ✔️Memorandum of lease. For more then one year lease
Seller Sam enters into a listing agreement with Broker Barb on January 5 that was to last 4 months. In early March, Sam decides that he doesn't
want to sell his house after all. What applies to the broker? ✔️The broker no longer has the authority to sell the house and the seller may be
subject to a penalty. However, the broker is not entitled to any commission.
Full disclosure of material facts by a licensee falls under which of the obligations of a licensee? ✔️Duty of Integrity
2025-2026.
Who is responsible for any wrongs done by a salesperson while acting within the scope of the agency agreement? ✔️The broker is liable for the
wrongdoing of his or her salespersons. The principal is liable for any wrongs committed by the broker while acting within the scope of the
agency agreement.
what is the distinction between sales contracts and option contracts? ✔️One characteristic of sales contracts is mutual obligation. Option
contracts lack mutual obligation. The buyer in an option contract is not obligated to buy.
A listing agreement must contain: ✔️a standard street address is sufficient.
If the commission investigates a complaint and determines that an individual's real estate license should be suspended or revoked, the licensee
is entitled to a hearing before the commission within how many days after the commission reaches its decision? ✔️A licensee who faces
suspension or revocation of their license is entitled to a hearing within 30 days of the commission reaching their decision.
Which of the licensed entities does not fall under the regulatory authority of the Texas Real Estate Commission? ✔️The Texas Appraiser
Licensing and Certification Board has jurisdiction over state licensed and certified appraisers. In addition to licensing brokers and salespersons,
the Texas Real Estate Commission is responsible for licensing real estate inspectors and for regulation of companies that sell and issue
residential service contracts ("home warranties"). (Article 65736, Vernon's Texas Civil Statutes.
A licensee in Texas may not practice law, unless licensed and authorized to do so in Texas. Practicing law includes altering contracts, or drawing
up: ✔️a deed, deed of trust, will, or other written instrument that may transfer or affect the title to land.
What penalties may a licensee who breaches the agency relationship face? ✔️A licensee who breaches the agency relationship may be sued for
damages, termination of the contract, and/or non-payment of the commission.
Undisclosed dual agency is: ✔️a violation of the TRELA.
What is the composition of the Broker-Lawyer Committee? ✔️Six broker members are appointed by the Texas Real Estate Commission; six
attorney members are appointed by the President of the State Bar of Texas. The appointees serve a term of six years with one-third of them
being appointed every two years.
A licensee must disclose any existing agency relationships to a new client. This disclosure: ✔️may be done orally or in writing.
A broker may do which of the following for an individual without actually representing the individual? ✔️A broker may obtain financing, assist in
locating a property, and prepare a contract or lease for an individual without representing the individual.
A real estate licensee must notify the real estate program manager if: ✔️A licensee must notify the real estate program manager within 20 days
of receiving any criminal complaint, information, indictment, or conviction in which the licensee is named as a defendant; or entry of a civil
court order, verdict, or judgment, against the licensee in any court of competent jurisdiction in which the subject matter therein involves any
real estate or business-related activity by the licensee.
Pamela, who lives in a suburb in which many homes are rented, decides to open a rental agency in order to assist her friends in finding suitable
renters. Pamela's conduct is ✔️unacceptable because it involves an activity for which a real estate license is required.
The sole broker of a brokerage firm has his or her real estate license suspended for two years. What would happen to the licenses of the
salespersons affiliated with this broker? ✔️If the broker's license is suspended or revoked, the salespersons' licenses are made inactive and must
be returned to the commission. A salesperson's license may be made active when the salesperson is sponsored by a new broker.
Which agency is responsible for the contract forms used by Texas licensees? ✔️The Texas Real Estate Commission
A community property with rights of survivorship agreement must: ✔️doesn't need to go through probate, must be signed by both spouses,
must include the property description, be in writing, contain wording that makes evident the intent of survivorship, and be recorded in the
county courthouse.
Generally, the most important responsibility of an agent is to: ✔️represent the financial interests of the client.
Broker Bea recently entered into a listing contract with Seller Sally. Broker Bea just learned that Sally is actually 17 years old and not married.
The listing contract is: ✔️voidable at the option of the minor.
Which of the following people would need to obtain a real estate license if they were involved in a real estate activity?
, A. the executor of an estate
B. a court-appointed guardian
C. a trustee of the bankruptcy court
D. one who sells lots in a mobile home park ✔️D. The sale of land/lots is an act of brokerage and requires that one have a license if he or she is
not the owner of the lot. The other three answers are listed as people who do not need a license in Section 3 of the Texas Real Estate License
Act.
An agency relationship may be terminated by ✔️expiration of time, agreement, rescission, abandonment, or by the death of either party.
A property owner may claim a homeowner's exemption in Texas on a residence that is both owned and occupied. The exemption reduces the
assessed value of the residence by ✔️$7,000 dollars
A broker must maintain a place of business in the state of Texas. If the location changes, the broker has how long to notify the commission?
✔️The broker must notify the commission of any change of address within 10 days.
What happens when an applicant for licensure has failed to pass the competency examination within the prescribed six-month period? ✔️The
applicant must submit a new application meeting all current requirements.
The written disclosure of agency relationships is not required if the: ✔️proposed transaction is for a residential lease for not more than one year
and no sale is being considered. Disclosure is also not required if the licensee meets with a party who is represented by another licensee.
An agency relationship may be created in all of the following ways except:
A. by ratification.
B. by estoppel.
C. by apparent authority
D. by assumed authority ✔️D. An agency relationship may be created in all of these ways except for by assumed authority.
Dave defaulted on his mortgage loan and the property was ordered to be sold at a foreclosure sale. Dave may redeem his property: ✔️A
property owner in default may redeem his or her property up until the property is sold, under the equitable right of redemption.
What should a real estate broker do with licenses coming into his or her possession? ✔️prominently display them in his or her place of business
If a broker is working as an intermediary to both parties in a transaction, the broker may collect commissions from both parties if: ✔️each party
knows exactly how much commission is collected from the other party and receives full disclosure of all facts.
A contract may be terminated by: ✔️default, performance, mutual agreement, rescission, or by the fact that it is impossible to perform.
Who is credited with actually securing a written offer? ✔️Procuring cause
Each commissioner must be: ✔️both qualified voters and residents of Texas. Only six of the members must be licensed real estate brokers.
A salesperson may split his or her commission with: ✔️anyone that is not a licensed salesperson or broker in Texas.
An exclusive-right-to-sell agreement must include: ✔️a definite termination date not subject to prior notice.
A licensee avoids mentioning negative important facts that he or she knows to be true in his or her presentation to a potential purchaser of real
property. The licensee: ✔️may be charged with misrepresentation by omission.
Each TREC member is appointed for a minimum term of ____ . ✔️6 years, or until a successor is appointed.
For a two-year lease, a landlord may record, instead of the actual lease, a: ✔️Memorandum of lease. For more then one year lease
Seller Sam enters into a listing agreement with Broker Barb on January 5 that was to last 4 months. In early March, Sam decides that he doesn't
want to sell his house after all. What applies to the broker? ✔️The broker no longer has the authority to sell the house and the seller may be
subject to a penalty. However, the broker is not entitled to any commission.
Full disclosure of material facts by a licensee falls under which of the obligations of a licensee? ✔️Duty of Integrity
