TEXAS PRINCIPLES OF REAL ESTATE ACTUAL
FINAL EXAM 300 MULTIPLE-CHOICE QUESTIONS
WITH CORRECT ANSWERS AND RATIONALES
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Question 1
The Texas Real Estate Commission (TREC) is primarily responsible for:
A) Setting mortgage interest rates
B) Regulating real estate licensing and practice
C) Approving home loans
D) Handling property tax assessments
Correct Answer: B
Rationale: TREC oversees licensing, enforcement of real estate laws, and protects
the public from dishonest or incompetent real estate agents. It does not set
mortgage rates, approve loans, or handle property taxes .
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Question 2
,How long are the terms of TREC members?
A) 2 years
B) 4 years
C) 6 years
D) 8 years
Correct Answer: C
Rationale: TREC members serve 6-year terms, ensuring stability and continuity in
real estate regulation in Texas .
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Question 3
What is the maximum administrative penalty that TREC can impose per violation?
A) $1,000
B) $2,500
C) $5,000
D) $10,000
Correct Answer: C
Rationale: The maximum administrative penalty TREC can levy is $5,000 per
violation or for each day a violation continues .
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,Question 4
An applicant for a salesperson license must:
A) Be a Texas resident for 5 years
B) Have a college degree
C) Have fingerprinting and background check prior to receiving a license
D) Pass the exam before completing education requirements
Correct Answer: C
Rationale: Applicants must undergo fingerprinting and background checks prior to
receiving a license. A college degree is not required .
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Question 5
How many classroom hours are required for a sales agent license in Texas?
A) 90 hours
B) 120 hours
C) 180 hours
D) 240 hours
Correct Answer: C
Rationale: Sales agent licensees must complete 180 classroom hours across 6
required courses .
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Question 6
Courses for the renewal of an active real estate broker or sales agent license are
called:
A) Pre-licensing courses
B) Continuing education (CE)
C) Advanced licensing courses
D) Professional development seminars
Correct Answer: B
Rationale: Continuing education (CE) courses are required for license renewal
every two years .
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Question 7
TRELA makes provisions for:
A) A minimum of 30 classroom hours for license renewal
B) A prerequisite of a minimum of 15 classroom hours counted toward license
renewal every two years
C) No education requirements for license renewal
D) 50 classroom hours for first renewal
FINAL EXAM 300 MULTIPLE-CHOICE QUESTIONS
WITH CORRECT ANSWERS AND RATIONALES
---
Question 1
The Texas Real Estate Commission (TREC) is primarily responsible for:
A) Setting mortgage interest rates
B) Regulating real estate licensing and practice
C) Approving home loans
D) Handling property tax assessments
Correct Answer: B
Rationale: TREC oversees licensing, enforcement of real estate laws, and protects
the public from dishonest or incompetent real estate agents. It does not set
mortgage rates, approve loans, or handle property taxes .
---
Question 2
,How long are the terms of TREC members?
A) 2 years
B) 4 years
C) 6 years
D) 8 years
Correct Answer: C
Rationale: TREC members serve 6-year terms, ensuring stability and continuity in
real estate regulation in Texas .
---
Question 3
What is the maximum administrative penalty that TREC can impose per violation?
A) $1,000
B) $2,500
C) $5,000
D) $10,000
Correct Answer: C
Rationale: The maximum administrative penalty TREC can levy is $5,000 per
violation or for each day a violation continues .
---
,Question 4
An applicant for a salesperson license must:
A) Be a Texas resident for 5 years
B) Have a college degree
C) Have fingerprinting and background check prior to receiving a license
D) Pass the exam before completing education requirements
Correct Answer: C
Rationale: Applicants must undergo fingerprinting and background checks prior to
receiving a license. A college degree is not required .
---
Question 5
How many classroom hours are required for a sales agent license in Texas?
A) 90 hours
B) 120 hours
C) 180 hours
D) 240 hours
Correct Answer: C
Rationale: Sales agent licensees must complete 180 classroom hours across 6
required courses .
, ---
Question 6
Courses for the renewal of an active real estate broker or sales agent license are
called:
A) Pre-licensing courses
B) Continuing education (CE)
C) Advanced licensing courses
D) Professional development seminars
Correct Answer: B
Rationale: Continuing education (CE) courses are required for license renewal
every two years .
---
Question 7
TRELA makes provisions for:
A) A minimum of 30 classroom hours for license renewal
B) A prerequisite of a minimum of 15 classroom hours counted toward license
renewal every two years
C) No education requirements for license renewal
D) 50 classroom hours for first renewal
