TX TREC REAL ESTATE EXAM |ACTUAL
QUESTIONS AND VERIFIED ANSWERS|BRAND NEW
2026-2027 UPDATE|GRADED A+
Question 1
A licensed sales agent obtains a listing. Several days later, the sales agent meets
prospective buyers at the property and tells them, "Our office represents the seller for this
property, so I'm very familiar with it." Under these circumstances, the sales agent
A) has not properly disclosed agency relationship.
B) is in violation of state regulations because the listing belongs to the broker.
C) has created an intermediary relationship in violation of Texas law.
D) has properly disclosed agency relationship with the seller.
CORRECT ANSWER
D) has properly disclosed agency relationship with the seller.
In Texas, a license holder must disclose an existing agency relationship at the first contact
with another potential party to the transaction or that party's agent, which this sales
agent has done in the statement. However, had the license holder used the term sales
agent or broker, the disclosure might have been questionable.
Question 2
TREC's Consumer Protection Notice advises the public about the availability of two
recovery funds and how to contact TREC. Which of the following is TRUE regarding TREC's
Consumer Protection Notice?
A) At the first substantive discussion with a prospective client, a broker or sales agent must
provide the TREC Consumer Protection Notice to the consumer.
1
,B) At the first face-to-face meeting or written communication with a prospective client, a
broker or sales agent must provide the TREC Consumer Protection Notice to the consumer.
C) TREC's Consumer Protection Notice must be displayed by each active real estate broker
and sales agent in each place of business the broker maintains.
D) At an open house, a broker or sales agent must have the TREC Consumer Protection
Notice displayed.
CORRECT ANSWER
C) TREC's Consumer Protection Notice must be displayed by each active real estate
broker and sales agent in each place of business the broker maintains.
TREC's Consumer Protection Notice must be displayed in a readily noticeable location in
each place of business and a link to the form must be displayed in a readily noticeable
place on the home page of a business website.
Question 3
The purpose of the Real Estate Recovery Trust Account is to provide
A) a source from which to collect unpaid commissions.
B) protection to the public from dishonest salespeople.
C) a mechanism for the Real Estate Commission to recover funds from unethical license
holders.
D) a means by which an injured party can collect monies through TREC.
CORRECT ANSWER
D) a means by which an injured party can collect monies through TREC.
Question 4
A broker or sales agent may perform all of these actions in preparation for a closing
EXCEPT
2
,A) conduct any title searches that might be required.
B) coordinate inspections and deliver documents and escrow monies to the appropriate
attorney.
C) maintain a time schedule and provide net data.
D) explain closing procedures to both buyer and seller and anticipate decision making
alternatives.
CORRECT ANSWER
A) conduct any title searches that might be required.
Conducting a title search for another person in connection with the license holder's
brokerage activity with that person may lead to charges of practicing law without a
license if the license holder advises the person regarding the validity or legal sufficiency
of an instrument or the validity of title to real property.
Question 5
Courses for a sales agent's first renewal are referred to as
A) Ongoing License Coursework (OLC).
B) Mandatory Continuing Education (MCE).
C) Sales Agent Apprentice Education (SAE).
D) Sales Agent Licensing Education (SLE).
CORRECT ANSWER
C) Sales Agent Apprentice Education (SAE).
Question 6
The Texas Real Estate License Act requires that the
3
, A) seller should not disclose facts that might impact negotiations of the transaction.
B) broker keeps all information that the seller has provided confidential.
C) broker discloses known negative material facts about the property that might affect the
sale even though the buyer does not ask for it.
D) broker discloses everything that the seller tells the broker.
CORRECT ANSWER
C) broker discloses known negative material facts about the property that might affect
the sale even though the buyer does not ask for it.
Question 7
After an investigation, TREC determines that a license holder had received a commission
from both parties to a transaction without the full knowledge and consent of both parties.
TREC may order the license holder to pay a refund to the consumers as a result of
A) an informal settlement conference as well as punitive damages.
B) an informal settlement conference as well as compensatory damages.
C) an informal settlement conference as well as liquated damages.
D) an informal settlement conference.
CORRECT ANSWER
A) an informal settlement conference as well as punitive damages.
Liquidated damages are intended to recover what has been lost and make the damaged
party whole.
A penalty clause, in contrast, is intended to be a form of punishment (punitive).
Question 8
4
QUESTIONS AND VERIFIED ANSWERS|BRAND NEW
2026-2027 UPDATE|GRADED A+
Question 1
A licensed sales agent obtains a listing. Several days later, the sales agent meets
prospective buyers at the property and tells them, "Our office represents the seller for this
property, so I'm very familiar with it." Under these circumstances, the sales agent
A) has not properly disclosed agency relationship.
B) is in violation of state regulations because the listing belongs to the broker.
C) has created an intermediary relationship in violation of Texas law.
D) has properly disclosed agency relationship with the seller.
CORRECT ANSWER
D) has properly disclosed agency relationship with the seller.
In Texas, a license holder must disclose an existing agency relationship at the first contact
with another potential party to the transaction or that party's agent, which this sales
agent has done in the statement. However, had the license holder used the term sales
agent or broker, the disclosure might have been questionable.
Question 2
TREC's Consumer Protection Notice advises the public about the availability of two
recovery funds and how to contact TREC. Which of the following is TRUE regarding TREC's
Consumer Protection Notice?
A) At the first substantive discussion with a prospective client, a broker or sales agent must
provide the TREC Consumer Protection Notice to the consumer.
1
,B) At the first face-to-face meeting or written communication with a prospective client, a
broker or sales agent must provide the TREC Consumer Protection Notice to the consumer.
C) TREC's Consumer Protection Notice must be displayed by each active real estate broker
and sales agent in each place of business the broker maintains.
D) At an open house, a broker or sales agent must have the TREC Consumer Protection
Notice displayed.
CORRECT ANSWER
C) TREC's Consumer Protection Notice must be displayed by each active real estate
broker and sales agent in each place of business the broker maintains.
TREC's Consumer Protection Notice must be displayed in a readily noticeable location in
each place of business and a link to the form must be displayed in a readily noticeable
place on the home page of a business website.
Question 3
The purpose of the Real Estate Recovery Trust Account is to provide
A) a source from which to collect unpaid commissions.
B) protection to the public from dishonest salespeople.
C) a mechanism for the Real Estate Commission to recover funds from unethical license
holders.
D) a means by which an injured party can collect monies through TREC.
CORRECT ANSWER
D) a means by which an injured party can collect monies through TREC.
Question 4
A broker or sales agent may perform all of these actions in preparation for a closing
EXCEPT
2
,A) conduct any title searches that might be required.
B) coordinate inspections and deliver documents and escrow monies to the appropriate
attorney.
C) maintain a time schedule and provide net data.
D) explain closing procedures to both buyer and seller and anticipate decision making
alternatives.
CORRECT ANSWER
A) conduct any title searches that might be required.
Conducting a title search for another person in connection with the license holder's
brokerage activity with that person may lead to charges of practicing law without a
license if the license holder advises the person regarding the validity or legal sufficiency
of an instrument or the validity of title to real property.
Question 5
Courses for a sales agent's first renewal are referred to as
A) Ongoing License Coursework (OLC).
B) Mandatory Continuing Education (MCE).
C) Sales Agent Apprentice Education (SAE).
D) Sales Agent Licensing Education (SLE).
CORRECT ANSWER
C) Sales Agent Apprentice Education (SAE).
Question 6
The Texas Real Estate License Act requires that the
3
, A) seller should not disclose facts that might impact negotiations of the transaction.
B) broker keeps all information that the seller has provided confidential.
C) broker discloses known negative material facts about the property that might affect the
sale even though the buyer does not ask for it.
D) broker discloses everything that the seller tells the broker.
CORRECT ANSWER
C) broker discloses known negative material facts about the property that might affect
the sale even though the buyer does not ask for it.
Question 7
After an investigation, TREC determines that a license holder had received a commission
from both parties to a transaction without the full knowledge and consent of both parties.
TREC may order the license holder to pay a refund to the consumers as a result of
A) an informal settlement conference as well as punitive damages.
B) an informal settlement conference as well as compensatory damages.
C) an informal settlement conference as well as liquated damages.
D) an informal settlement conference.
CORRECT ANSWER
A) an informal settlement conference as well as punitive damages.
Liquidated damages are intended to recover what has been lost and make the damaged
party whole.
A penalty clause, in contrast, is intended to be a form of punishment (punitive).
Question 8
4
