Texas Real Estate Exam; State Portion
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
Who must hold a real estate license in Texas to perform real estate activities for compensation?
✔✔Anyone engaging in selling, buying, leasing, or exchanging real estate for others.
Which document must be provided to a prospective client at the first substantive discussion?
✔✔Information About Brokerage Services (IABS) form.
What is the minimum age requirement to obtain a Texas real estate salesperson license?
✔✔18 years old.
What educational requirement must be met before applying for a salesperson license in Texas?
✔✔Completion of 180 hours of approved real estate education.
How long is a Texas real estate license valid before renewal?
✔✔Two years.
Who is responsible for supervising real estate salespersons in Texas?
✔✔A licensed real estate broker.
1
,Which TREC form must be used to create a legally binding contract for the sale of real property
in Texas?
✔✔TREC-promulgated contract forms.
What is the penalty for practicing real estate without a license in Texas?
✔✔Fines, legal action, and possible criminal charges.
Which agency relationship allows a broker to represent both the buyer and seller in the same
transaction?
✔✔Intermediary relationship with written consent.
How must a broker handle earnest money received from a client?
✔✔Deposit it into a trust account promptly according to TREC rules.
Which practice is considered a violation of Texas real estate license law?
✔✔Commingling client funds with personal funds.
What is the purpose of a broker’s trust account?
✔✔To hold client funds separate from the broker’s personal or business funds.
Which document discloses the broker’s relationship and duties to the client?
✔✔Agency disclosure form.
2
, What must a license holder do when their license changes broker affiliation?
✔✔Notify TREC and update records immediately.
Who enforces the Texas Real Estate License Act?
✔✔TREC (Texas Real Estate Commission).
What is the maximum TREC can fine a license holder per violation?
✔✔$5,000 per violation.
Which type of misrepresentation is illegal for a Texas real estate license holder?
✔✔Fraudulent or negligent misrepresentation.
How must a license holder disclose property defects to a buyer?
✔✔Accurately and completely, in writing if possible.
What is the rule for advertising real estate in Texas?
✔✔All advertising must include the broker’s licensed name and contact information.
Which action requires a real estate license in Texas?
✔✔Negotiating the sale of a property for another person for compensation.
3
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
Who must hold a real estate license in Texas to perform real estate activities for compensation?
✔✔Anyone engaging in selling, buying, leasing, or exchanging real estate for others.
Which document must be provided to a prospective client at the first substantive discussion?
✔✔Information About Brokerage Services (IABS) form.
What is the minimum age requirement to obtain a Texas real estate salesperson license?
✔✔18 years old.
What educational requirement must be met before applying for a salesperson license in Texas?
✔✔Completion of 180 hours of approved real estate education.
How long is a Texas real estate license valid before renewal?
✔✔Two years.
Who is responsible for supervising real estate salespersons in Texas?
✔✔A licensed real estate broker.
1
,Which TREC form must be used to create a legally binding contract for the sale of real property
in Texas?
✔✔TREC-promulgated contract forms.
What is the penalty for practicing real estate without a license in Texas?
✔✔Fines, legal action, and possible criminal charges.
Which agency relationship allows a broker to represent both the buyer and seller in the same
transaction?
✔✔Intermediary relationship with written consent.
How must a broker handle earnest money received from a client?
✔✔Deposit it into a trust account promptly according to TREC rules.
Which practice is considered a violation of Texas real estate license law?
✔✔Commingling client funds with personal funds.
What is the purpose of a broker’s trust account?
✔✔To hold client funds separate from the broker’s personal or business funds.
Which document discloses the broker’s relationship and duties to the client?
✔✔Agency disclosure form.
2
, What must a license holder do when their license changes broker affiliation?
✔✔Notify TREC and update records immediately.
Who enforces the Texas Real Estate License Act?
✔✔TREC (Texas Real Estate Commission).
What is the maximum TREC can fine a license holder per violation?
✔✔$5,000 per violation.
Which type of misrepresentation is illegal for a Texas real estate license holder?
✔✔Fraudulent or negligent misrepresentation.
How must a license holder disclose property defects to a buyer?
✔✔Accurately and completely, in writing if possible.
What is the rule for advertising real estate in Texas?
✔✔All advertising must include the broker’s licensed name and contact information.
Which action requires a real estate license in Texas?
✔✔Negotiating the sale of a property for another person for compensation.
3
