TEXAS REAL ESTATE STATE EXAM PREP
COMPLETE STUDY GUIDE WITH
PRACTICE QUESTIONS, ANSWERS AND
COMPREHENSIVE TREC LAW,
CONTRACTS AND AGENCY REVIEW |
GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,After the first renewal, what mandatory classes are required to compleion of 15 hours of continuing education acceptable to the Commission.
renew a salesperson's real estate license?
A licensee applying for first renewal of a salesperson license must provide satisfactory
A) Completion of 15 hours of continuing education acceptable evidence of completion of a total of 18 semester hours (270 classroom hours), with 180
to the Commission hours being the application education requirement courses. Please note that this means
B) No mandatory requirements only 6 additional semester (90 classroom) hours in core real estate courses are required
C) Completion of 60 additional hours in core real estate to be filed during the term of the license as a licensed salesperson. These hours are
courses known as SAE, or Salesperson Apprentice Education. These 90 additional classroom
D) 18 hours of home study hours in core real estate courses for the SAE must be submitted and in the TREC system
by the end of the second year of licensure. After the first renewal, a license holder is
required to complete 15 MCE (Mandatory Continuing Education) hours of acceptable
mandatory continuing education every two years.
A real estate licensee who receives an offer must present the offer as quickly as possible.
A) present offers from highest sales price to lowest price. All offers should be in writing and presented to the property owner as quickly as is
B) present any offers in the order they were received. reasonably practical. The TREC rules call for immediate presentation. No real estate
C) hold offers to make sure all buyers have a fair chance at the broker or salesperson has the right to withhold an offer from a property owner.
property.
D) present the offer as quickly as possible.
Which Canon of Professional Ethics requires that the broker or integrity.
salesperson employ prudence and caution in the discharge of
her duties to avoid misrepresentation? The Canons of Professional Ethics and Conduct define integrity to include "...employment
of prudence and caution so as to avoid misrepresentation...by acts of commission or
A) Accounting omission."
B) Competency
C) Fidelity
D) Integrity
,For a business entity to be licensed as a broker the following is all of these are required.
required:
For a business entity to hold a broker license, a managing officer of the entity must be
A) the entity must provide proof of E&O insurance of $1 million designated as the agent for purposes of TRELA and must have an active broker's license
for each occurrence if the designated agent owns less than in good standing with TREC. The business entity must have E&O insurance with a minimum
10% of the entity. of $1 million for each occurrence if the designated agent is less than a 10% owner of the
B) a managing officer of the entity must be designated as the entity.
agent for purposes of TRELA.
C) all of these are required.
D) the designated agent must have a broker's license in active
and good standing with TREC.
After real estate has been sold by the city or county to satisfy redeem the property within a two-year time limit.
a delinquent tax lien, the defaulted owner of a homestead
usually has a right to Texas law provides for a statutory right of redemption (two years for homestead
property) after the tax sale during which the defaulted owner may redeem the property
A) have the sale canceled by paying the back taxes and by paying the amount paid at the tax sale, plus interest and other charges, including 25%
penalties. of the purchase price during the first year and 50% during the second year.
B) file a judgment lien against the purchaser at the tax
foreclosure sale.
C) redeem the property within a two-year time limit.
D) redeem the property within a three-year time limit.
In any real estate sales transaction that a broker negotiates, provide the buyer the broker's personal opinion of the condition of the seller's title to the
the broker would be well advised to do all of the following property.
EXCEPT
Offering an opinion of title is a legal opinion and would constitute the Unauthorized
A) keep copies of all documents involved in the transaction in Practice of Law.
the broker's files for five years after the year in which the
transaction was closed.
B) provide the buyer the broker's personal opinion of the
condition of the seller's title to the property.
C) make sure that the closing statement is accurate and that a
copy of it is delivered to both the buyer and the seller.
D) make sure that the written purchase and sales agreement
includes all of the terms of the parties' agreement.
, In Texas, brokers and salespersons who are NOT lawyers may fill in blanks on preprinted contract forms promulgated by the Texas Real Estate
A) complete a bill of sale after a sales contract has been Commission.
signed.
B) suggest additional language to be added to a preprinted Texas license holders must use TREC-promulgated forms, unless another is required by
sales contract by a buyer or seller. the property owner or otherwise fits one of the four specific exemptions under TREC
C) fill in blanks on preprinted contract forms promulgated by Rules: TREC does not promulgate contract forms for commercial transactions or leases,
the Texas Real Estate Commission. except for two temporary residential lease forms which are part of a sales contract. The
D) explain the legal significance of specific preprinted blanks may be filled in at the direction of the consumers who make final decisions and
contract clauses to a buyer or a seller. sign the contract. However, real estate license holders who are not lawyers must be
careful to avoid any appearance of the Unauthorized Practice of Law. The broker and
salespersons are special agents hired for a very narrow purpose, which does not
ordinarily include signing the name of the principal.
A ruling by TREC can be appealed to a district court. True
TREC is authorized to settle commission False, the commission does not mediate disputes between or among licensees
concerning entitlement to sales commissions, nor does it recommend individual licensees
to the public.
TREC is authorized to hold hearings and subpoena witnesses. True
TREC has the power to suspend or revoke a license and to True
place on probation or reprimand a license.
A real estate licensee may legally fill in contract forms that True
have been promulgated by the Commission.
Contract forms are drafted and revised by the Real Estate True
Broker-Lawyer Committee.
The Texas Real Estate Commission consist of nine members. True- The Texas Real Estate Commission (TREC) consists of six brokers and three public
members, appointed by the Governor to staggered six-years terms.
The fund administered by TREC for reimbursing aggrieved True
persons who suffer actual damages by acts committed by a
licensee is the Real Estate Recovery Trust Account
COMPLETE STUDY GUIDE WITH
PRACTICE QUESTIONS, ANSWERS AND
COMPREHENSIVE TREC LAW,
CONTRACTS AND AGENCY REVIEW |
GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,After the first renewal, what mandatory classes are required to compleion of 15 hours of continuing education acceptable to the Commission.
renew a salesperson's real estate license?
A licensee applying for first renewal of a salesperson license must provide satisfactory
A) Completion of 15 hours of continuing education acceptable evidence of completion of a total of 18 semester hours (270 classroom hours), with 180
to the Commission hours being the application education requirement courses. Please note that this means
B) No mandatory requirements only 6 additional semester (90 classroom) hours in core real estate courses are required
C) Completion of 60 additional hours in core real estate to be filed during the term of the license as a licensed salesperson. These hours are
courses known as SAE, or Salesperson Apprentice Education. These 90 additional classroom
D) 18 hours of home study hours in core real estate courses for the SAE must be submitted and in the TREC system
by the end of the second year of licensure. After the first renewal, a license holder is
required to complete 15 MCE (Mandatory Continuing Education) hours of acceptable
mandatory continuing education every two years.
A real estate licensee who receives an offer must present the offer as quickly as possible.
A) present offers from highest sales price to lowest price. All offers should be in writing and presented to the property owner as quickly as is
B) present any offers in the order they were received. reasonably practical. The TREC rules call for immediate presentation. No real estate
C) hold offers to make sure all buyers have a fair chance at the broker or salesperson has the right to withhold an offer from a property owner.
property.
D) present the offer as quickly as possible.
Which Canon of Professional Ethics requires that the broker or integrity.
salesperson employ prudence and caution in the discharge of
her duties to avoid misrepresentation? The Canons of Professional Ethics and Conduct define integrity to include "...employment
of prudence and caution so as to avoid misrepresentation...by acts of commission or
A) Accounting omission."
B) Competency
C) Fidelity
D) Integrity
,For a business entity to be licensed as a broker the following is all of these are required.
required:
For a business entity to hold a broker license, a managing officer of the entity must be
A) the entity must provide proof of E&O insurance of $1 million designated as the agent for purposes of TRELA and must have an active broker's license
for each occurrence if the designated agent owns less than in good standing with TREC. The business entity must have E&O insurance with a minimum
10% of the entity. of $1 million for each occurrence if the designated agent is less than a 10% owner of the
B) a managing officer of the entity must be designated as the entity.
agent for purposes of TRELA.
C) all of these are required.
D) the designated agent must have a broker's license in active
and good standing with TREC.
After real estate has been sold by the city or county to satisfy redeem the property within a two-year time limit.
a delinquent tax lien, the defaulted owner of a homestead
usually has a right to Texas law provides for a statutory right of redemption (two years for homestead
property) after the tax sale during which the defaulted owner may redeem the property
A) have the sale canceled by paying the back taxes and by paying the amount paid at the tax sale, plus interest and other charges, including 25%
penalties. of the purchase price during the first year and 50% during the second year.
B) file a judgment lien against the purchaser at the tax
foreclosure sale.
C) redeem the property within a two-year time limit.
D) redeem the property within a three-year time limit.
In any real estate sales transaction that a broker negotiates, provide the buyer the broker's personal opinion of the condition of the seller's title to the
the broker would be well advised to do all of the following property.
EXCEPT
Offering an opinion of title is a legal opinion and would constitute the Unauthorized
A) keep copies of all documents involved in the transaction in Practice of Law.
the broker's files for five years after the year in which the
transaction was closed.
B) provide the buyer the broker's personal opinion of the
condition of the seller's title to the property.
C) make sure that the closing statement is accurate and that a
copy of it is delivered to both the buyer and the seller.
D) make sure that the written purchase and sales agreement
includes all of the terms of the parties' agreement.
, In Texas, brokers and salespersons who are NOT lawyers may fill in blanks on preprinted contract forms promulgated by the Texas Real Estate
A) complete a bill of sale after a sales contract has been Commission.
signed.
B) suggest additional language to be added to a preprinted Texas license holders must use TREC-promulgated forms, unless another is required by
sales contract by a buyer or seller. the property owner or otherwise fits one of the four specific exemptions under TREC
C) fill in blanks on preprinted contract forms promulgated by Rules: TREC does not promulgate contract forms for commercial transactions or leases,
the Texas Real Estate Commission. except for two temporary residential lease forms which are part of a sales contract. The
D) explain the legal significance of specific preprinted blanks may be filled in at the direction of the consumers who make final decisions and
contract clauses to a buyer or a seller. sign the contract. However, real estate license holders who are not lawyers must be
careful to avoid any appearance of the Unauthorized Practice of Law. The broker and
salespersons are special agents hired for a very narrow purpose, which does not
ordinarily include signing the name of the principal.
A ruling by TREC can be appealed to a district court. True
TREC is authorized to settle commission False, the commission does not mediate disputes between or among licensees
concerning entitlement to sales commissions, nor does it recommend individual licensees
to the public.
TREC is authorized to hold hearings and subpoena witnesses. True
TREC has the power to suspend or revoke a license and to True
place on probation or reprimand a license.
A real estate licensee may legally fill in contract forms that True
have been promulgated by the Commission.
Contract forms are drafted and revised by the Real Estate True
Broker-Lawyer Committee.
The Texas Real Estate Commission consist of nine members. True- The Texas Real Estate Commission (TREC) consists of six brokers and three public
members, appointed by the Governor to staggered six-years terms.
The fund administered by TREC for reimbursing aggrieved True
persons who suffer actual damages by acts committed by a
licensee is the Real Estate Recovery Trust Account
