TEXAS REAL ESTATE SALES AGENT
LICENSING LEVEL II EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS)
PLUS RATIONALES 2026 Q&A | INSTANT
DOWNLOAD PDF
1. Which of the following is required to obtain a Texas real estate
license?
A. High school diploma or GED
B. Be at least 18 years old
C. Own property in Texas
D. Have a college degree
License applicants must be at least 18 years old to qualify for a real
estate license in Texas.
2. Which of the following best describes a real estate broker?
A. An individual who only works for buyers
B. An individual licensed to represent clients in real estate
transactions and may hire sales agents
C. A property manager only
D. Someone who sells insurance
A broker has full licensing privileges and can operate independently or
hire sales agents.
3. What is the maximum commission a broker can charge in Texas?
A. 10%
B. 20%
C. There is no set maximum; it is negotiable
,D. 15%
Texas law allows commissions to be negotiable between the broker and
client.
4. The Texas Real Estate Commission (TREC) is responsible for:
A. Setting mortgage rates
B. Regulating real estate licenses and enforcing licensing laws
C. Selling properties
D. Collecting property taxes
TREC oversees licensing, education requirements, and enforcement of
real estate laws in Texas.
5. Which of the following is considered real estate under Texas law?
A. Land and anything permanently attached to it
B. A mobile home on rented land
C. Personal property
D. Stocks and bonds
Real estate includes land and permanent attachments such as buildings
or structures.
6. What is a fiduciary duty?
A. An obligation to sell quickly
B. A requirement to provide marketing services
C. A legal duty to act in the best interest of the client
D. A duty to the general public
A fiduciary duty requires loyalty, obedience, disclosure, confidentiality,
and accounting to the client.
7. The statute of frauds requires certain contracts to be:
A. Oral
B. In writing
C. Witnessed by a notary only
D. Recorded with TREC
, Contracts involving real estate transfers must be in writing to be
enforceable under the statute of frauds.
8. Which of the following is an example of personal property?
A. A built-in dishwasher
B. A freestanding refrigerator
C. A house
D. Land
Personal property is movable and not permanently attached to the land
or structure.
9. In Texas, a broker may place earnest money deposits in which of
the following accounts?
A. Personal checking account
B. Trust or escrow account
C. Savings account under the broker’s name alone
D. The seller’s account
Earnest money must be deposited in a trust or escrow account to
protect client funds.
10. Which of the following must a seller disclose in a real estate
transaction?
A. Personal opinions about the neighborhood
B. Known material defects in the property
C. The seller’s future plans for the property
D. Previous owners’ credit histories
Sellers are legally required to disclose known material defects that could
affect the value or desirability of the property.
11. A license holder must renew their Texas real estate license every:
A. 1 year
B. 2 years
C. 3 years
LICENSING LEVEL II EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS)
PLUS RATIONALES 2026 Q&A | INSTANT
DOWNLOAD PDF
1. Which of the following is required to obtain a Texas real estate
license?
A. High school diploma or GED
B. Be at least 18 years old
C. Own property in Texas
D. Have a college degree
License applicants must be at least 18 years old to qualify for a real
estate license in Texas.
2. Which of the following best describes a real estate broker?
A. An individual who only works for buyers
B. An individual licensed to represent clients in real estate
transactions and may hire sales agents
C. A property manager only
D. Someone who sells insurance
A broker has full licensing privileges and can operate independently or
hire sales agents.
3. What is the maximum commission a broker can charge in Texas?
A. 10%
B. 20%
C. There is no set maximum; it is negotiable
,D. 15%
Texas law allows commissions to be negotiable between the broker and
client.
4. The Texas Real Estate Commission (TREC) is responsible for:
A. Setting mortgage rates
B. Regulating real estate licenses and enforcing licensing laws
C. Selling properties
D. Collecting property taxes
TREC oversees licensing, education requirements, and enforcement of
real estate laws in Texas.
5. Which of the following is considered real estate under Texas law?
A. Land and anything permanently attached to it
B. A mobile home on rented land
C. Personal property
D. Stocks and bonds
Real estate includes land and permanent attachments such as buildings
or structures.
6. What is a fiduciary duty?
A. An obligation to sell quickly
B. A requirement to provide marketing services
C. A legal duty to act in the best interest of the client
D. A duty to the general public
A fiduciary duty requires loyalty, obedience, disclosure, confidentiality,
and accounting to the client.
7. The statute of frauds requires certain contracts to be:
A. Oral
B. In writing
C. Witnessed by a notary only
D. Recorded with TREC
, Contracts involving real estate transfers must be in writing to be
enforceable under the statute of frauds.
8. Which of the following is an example of personal property?
A. A built-in dishwasher
B. A freestanding refrigerator
C. A house
D. Land
Personal property is movable and not permanently attached to the land
or structure.
9. In Texas, a broker may place earnest money deposits in which of
the following accounts?
A. Personal checking account
B. Trust or escrow account
C. Savings account under the broker’s name alone
D. The seller’s account
Earnest money must be deposited in a trust or escrow account to
protect client funds.
10. Which of the following must a seller disclose in a real estate
transaction?
A. Personal opinions about the neighborhood
B. Known material defects in the property
C. The seller’s future plans for the property
D. Previous owners’ credit histories
Sellers are legally required to disclose known material defects that could
affect the value or desirability of the property.
11. A license holder must renew their Texas real estate license every:
A. 1 year
B. 2 years
C. 3 years
