TEXAS SAE REAL ESTATE BROKERAGE EXAM
COMPREHENSIVE PRACTICE
2026/2027 EDITION
This is an independent practice exam for educational study; it is not an official Elsevier HESI exit examination or NCLEX.
Section Overview
This comprehensive critical thinking practice exam contains 150 questions across seven sections, aligned with the
SHRM Body of Competency and Knowledge (BoCK), current HR best practices, employment laws, and
evidence-based human resource management standards for 2026/2027.
Sec Topic Qs
1 TREC Regulations & Licensing Requirements 20
2 Agency Relationships & Fiduciary Duties 20
3 Real Estate Contracts - Purchase, Lease, Listing, Addenda 20
4 Property Management & Leasing 12
5 Real Estate Financing & Mortgage Lending 12
6 Real Estate Math - Calculations, Prorations, Commissions 12
7 Transfer of Title, Deeds, Escrow, and Closing 12
8 Real Estate Disclosures - Seller's, Lead, Environmental 12
9 Fair Housing, Ethics, and Professional Conduct 12
10 Brokerage Operations - Trust Accounts, Advertising, Records 8
11 Integrated Scenarios - Complex Brokerage Cases 10
TOTAL 150
Instructions
For each question, select the single best answer. Use the answer key at the end of the exam to check your work. Each
item includes a brief rationale explaining the correct response.
Answer Key Distribution: 38 A · 38 B · 37 C · 37 D
, Section 1: TREC Regulations & Licensing Requirements
Q1: The Texas Real Estate Commission (TREC) is responsible for:
A. Setting mortgage rates
B. Appraising all properties
C. Regulating real estate licensees in Texas [CORRECT]
D. Running the MLS
Correct Answer: C
Rationale: TREC regulates real estate licensees in Texas. The other options are not TREC's role.
Q2: To obtain a Texas real estate sales agent license, an applicant must generally:
A. Only be over 18
B. Only pay a fee
C. Have a broker's license
D. Complete the required education, pass the exam, and meet other TREC requirements [CORRECT]
Correct Answer: D
Rationale: Licensing requires education, examination, and TREC requirements. The other options are incomplete.
Q3: A Texas real estate broker's license requires:
A. No experience
B. Only a high school diploma
C. Experience as an active sales agent and additional education/exam [CORRECT]
D. No education
Correct Answer: C
Rationale: A broker license requires active sales-agent experience and additional education/exam. The other options are incorrect.
Q4: Which is a broker's responsibility in Texas?
A. Ignoring agents
B. Avoiding supervision
C. Supervising the activities of sponsored sales agents [CORRECT]
D. Only collecting commissions
Correct Answer: C
Rationale: A broker must supervise sponsored sales agents. The other options are incorrect.
Q5: The Texas license renewal cycle is:
A. Every year with no education
B. Every five years
C. Every two years, with required continuing education [CORRECT]
D. Never
Correct Answer: C
Rationale: Texas licenses renew every two years with CE. The other options are incorrect.
Q6: Continuing education (CE) for Texas licensees is required to:
A. Replace the exam
B. Increase fees
C. Maintain competency and renew the license [CORRECT]
D. Only for brokers
Correct Answer: C
Rationale: CE maintains competency and supports renewal. The other options are incorrect.
Q7: Which of the following may result in disciplinary action by TREC?
A. Following the law
B. Violating the License Act or commission rules [CORRECT]
C. Proper disclosure
D. Maintaining records
Texas SAE Real Estate Brokerage Exam - 2026/2027 Page 2
, Correct Answer: B
Rationale: Violations of the License Act/rules may lead to discipline. The other options are compliant.
Q8: A sponsored sales agent must work under:
A. A sponsoring broker [CORRECT]
B. No one
C. Another sales agent
D. The buyer
Correct Answer: A
Rationale: A sales agent works under a sponsoring broker. The other options are incorrect.
Q9: TREC disciplinary action can include:
A. Setting prices
B. Appraising homes
C. License suspension or revocation [CORRECT]
D. Lending money
Correct Answer: C
Rationale: TREC can suspend or revoke a license. The other options are not TREC actions.
Q10: An applicant for a Texas license must be:
A. At least 21 only
B. A U.S. citizen only
C. At least 18 years old and meet other requirements [CORRECT]
D. A college graduate
Correct Answer: C
Rationale: Texas licensees must be at least 18 and meet other requirements. The other options are incorrect.
Q11: Which is required for Texas license renewal?
A. Only paying a fee
B. Passing the exam again
C. Completing the required continuing education [CORRECT]
D. No requirements
Correct Answer: C
Rationale: Renewal requires completing CE. The other options are incorrect.
Q12: A broker who fails to supervise a sales agent:
A. Has no responsibility
B. Is always immune
C. Only pays a fee
D. May be subject to discipline [CORRECT]
Correct Answer: D
Rationale: A broker is responsible for supervision and may be disciplined for failing to supervise. The other options are incorrect.
Q13: Texas licensees must provide which information to clients?
A. Information about the Texas Real Estate Consumer Protection Notice [CORRECT]
B. The client's bank password
C. Personal tax returns
D. No information
Correct Answer: A
Rationale: Licensees must provide the Information About Brokerage Services and the Consumer Protection Notice. The other
options are incorrect.
Q14: The 'Information About Brokerage Services' (IABS) form informs parties about:
A. Agency relationships and services [CORRECT]
B. Mortgage rates
C. Property taxes
Texas SAE Real Estate Brokerage Exam - 2026/2027 Page 3
COMPREHENSIVE PRACTICE
2026/2027 EDITION
This is an independent practice exam for educational study; it is not an official Elsevier HESI exit examination or NCLEX.
Section Overview
This comprehensive critical thinking practice exam contains 150 questions across seven sections, aligned with the
SHRM Body of Competency and Knowledge (BoCK), current HR best practices, employment laws, and
evidence-based human resource management standards for 2026/2027.
Sec Topic Qs
1 TREC Regulations & Licensing Requirements 20
2 Agency Relationships & Fiduciary Duties 20
3 Real Estate Contracts - Purchase, Lease, Listing, Addenda 20
4 Property Management & Leasing 12
5 Real Estate Financing & Mortgage Lending 12
6 Real Estate Math - Calculations, Prorations, Commissions 12
7 Transfer of Title, Deeds, Escrow, and Closing 12
8 Real Estate Disclosures - Seller's, Lead, Environmental 12
9 Fair Housing, Ethics, and Professional Conduct 12
10 Brokerage Operations - Trust Accounts, Advertising, Records 8
11 Integrated Scenarios - Complex Brokerage Cases 10
TOTAL 150
Instructions
For each question, select the single best answer. Use the answer key at the end of the exam to check your work. Each
item includes a brief rationale explaining the correct response.
Answer Key Distribution: 38 A · 38 B · 37 C · 37 D
, Section 1: TREC Regulations & Licensing Requirements
Q1: The Texas Real Estate Commission (TREC) is responsible for:
A. Setting mortgage rates
B. Appraising all properties
C. Regulating real estate licensees in Texas [CORRECT]
D. Running the MLS
Correct Answer: C
Rationale: TREC regulates real estate licensees in Texas. The other options are not TREC's role.
Q2: To obtain a Texas real estate sales agent license, an applicant must generally:
A. Only be over 18
B. Only pay a fee
C. Have a broker's license
D. Complete the required education, pass the exam, and meet other TREC requirements [CORRECT]
Correct Answer: D
Rationale: Licensing requires education, examination, and TREC requirements. The other options are incomplete.
Q3: A Texas real estate broker's license requires:
A. No experience
B. Only a high school diploma
C. Experience as an active sales agent and additional education/exam [CORRECT]
D. No education
Correct Answer: C
Rationale: A broker license requires active sales-agent experience and additional education/exam. The other options are incorrect.
Q4: Which is a broker's responsibility in Texas?
A. Ignoring agents
B. Avoiding supervision
C. Supervising the activities of sponsored sales agents [CORRECT]
D. Only collecting commissions
Correct Answer: C
Rationale: A broker must supervise sponsored sales agents. The other options are incorrect.
Q5: The Texas license renewal cycle is:
A. Every year with no education
B. Every five years
C. Every two years, with required continuing education [CORRECT]
D. Never
Correct Answer: C
Rationale: Texas licenses renew every two years with CE. The other options are incorrect.
Q6: Continuing education (CE) for Texas licensees is required to:
A. Replace the exam
B. Increase fees
C. Maintain competency and renew the license [CORRECT]
D. Only for brokers
Correct Answer: C
Rationale: CE maintains competency and supports renewal. The other options are incorrect.
Q7: Which of the following may result in disciplinary action by TREC?
A. Following the law
B. Violating the License Act or commission rules [CORRECT]
C. Proper disclosure
D. Maintaining records
Texas SAE Real Estate Brokerage Exam - 2026/2027 Page 2
, Correct Answer: B
Rationale: Violations of the License Act/rules may lead to discipline. The other options are compliant.
Q8: A sponsored sales agent must work under:
A. A sponsoring broker [CORRECT]
B. No one
C. Another sales agent
D. The buyer
Correct Answer: A
Rationale: A sales agent works under a sponsoring broker. The other options are incorrect.
Q9: TREC disciplinary action can include:
A. Setting prices
B. Appraising homes
C. License suspension or revocation [CORRECT]
D. Lending money
Correct Answer: C
Rationale: TREC can suspend or revoke a license. The other options are not TREC actions.
Q10: An applicant for a Texas license must be:
A. At least 21 only
B. A U.S. citizen only
C. At least 18 years old and meet other requirements [CORRECT]
D. A college graduate
Correct Answer: C
Rationale: Texas licensees must be at least 18 and meet other requirements. The other options are incorrect.
Q11: Which is required for Texas license renewal?
A. Only paying a fee
B. Passing the exam again
C. Completing the required continuing education [CORRECT]
D. No requirements
Correct Answer: C
Rationale: Renewal requires completing CE. The other options are incorrect.
Q12: A broker who fails to supervise a sales agent:
A. Has no responsibility
B. Is always immune
C. Only pays a fee
D. May be subject to discipline [CORRECT]
Correct Answer: D
Rationale: A broker is responsible for supervision and may be disciplined for failing to supervise. The other options are incorrect.
Q13: Texas licensees must provide which information to clients?
A. Information about the Texas Real Estate Consumer Protection Notice [CORRECT]
B. The client's bank password
C. Personal tax returns
D. No information
Correct Answer: A
Rationale: Licensees must provide the Information About Brokerage Services and the Consumer Protection Notice. The other
options are incorrect.
Q14: The 'Information About Brokerage Services' (IABS) form informs parties about:
A. Agency relationships and services [CORRECT]
B. Mortgage rates
C. Property taxes
Texas SAE Real Estate Brokerage Exam - 2026/2027 Page 3
