20 Hour Texas Law Module Exam
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which agency is primarily responsible for enforcing occupational
safety and health standards in Texas?
A. Texas Department of Insurance
B. Texas Workforce Commission
C. Texas Department of Licensing and Regulation
D. Texas Environmental Quality Commission
Rationale: The Texas Department of Licensing and Regulation (TDLR)
oversees safety standards related to occupational licenses in Texas.
2. What is the minimum age requirement to obtain a real estate
salesperson license in Texas?
A. 16
B. 18
, C. 21
D. 25
Rationale: Texas law requires applicants to be at least 18 years old to
hold a real estate license.
3. Which of the following actions constitutes unlicensed activity under
Texas law?
A. Negotiating a real estate contract without a license
B. Providing market analysis to a client
C. Referring a client to a licensed broker
D. Attending a real estate class
Rationale: Performing activities that require a license, such as
negotiating contracts, without a license is illegal in Texas.
4. How often must a Texas real estate license be renewed?
A. Annually
B. Every two years
C. Every three years
D. Every five years
Rationale: Texas real estate licenses expire every two years and
require continuing education for renewal.
5. Which organization administers the real estate licensing exams in
Texas?
A. Texas Real Estate Commission
B. Prometric Testing Services
, C. Texas Department of Insurance
D. National Association of Realtors
Rationale: Prometric Testing Services administers the state licensing
exams for real estate in Texas under TREC regulations.
6. What is the primary purpose of the Texas Real Estate License Act
(TRELA)?
A. Protect licensees from competition
B. Promote property sales
C. Protect the public in real estate transactions
D. Regulate mortgage lenders
Rationale: TRELA establishes legal requirements and standards for
real estate licensees to ensure public protection.
7. Which of the following is a fiduciary duty owed by a licensee to a
client?
A. Marketing the property
B. Loyalty
C. Providing legal advice
D. Guaranteeing a sale
Rationale: Loyalty is a fiduciary duty requiring licensees to act in the
best interest of their clients.
8. The legal requirement for a real estate contract in Texas to be
enforceable is that it must be:
A. Notarized
, B. Signed by witnesses
C. In writing
D. Recorded
Rationale: Under the Statute of Frauds, most real estate contracts
must be in writing to be enforceable in Texas.
9. Which type of agency relationship is created when a licensee
represents a seller exclusively?
A. Transaction broker
B. Dual agent
C. Seller’s agent
D. Buyer’s agent
Rationale: A seller’s agent represents only the seller in a transaction.
10. What must a licensee disclose to a client about a property
condition?
A. Only defects they personally observe
B. Only structural defects
C. All known material defects
D. Only legal issues
Rationale: Texas law requires licensees to disclose all known material
facts about a property.
11. How long must a real estate licensee retain records of a
transaction?
A. 1 year
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which agency is primarily responsible for enforcing occupational
safety and health standards in Texas?
A. Texas Department of Insurance
B. Texas Workforce Commission
C. Texas Department of Licensing and Regulation
D. Texas Environmental Quality Commission
Rationale: The Texas Department of Licensing and Regulation (TDLR)
oversees safety standards related to occupational licenses in Texas.
2. What is the minimum age requirement to obtain a real estate
salesperson license in Texas?
A. 16
B. 18
, C. 21
D. 25
Rationale: Texas law requires applicants to be at least 18 years old to
hold a real estate license.
3. Which of the following actions constitutes unlicensed activity under
Texas law?
A. Negotiating a real estate contract without a license
B. Providing market analysis to a client
C. Referring a client to a licensed broker
D. Attending a real estate class
Rationale: Performing activities that require a license, such as
negotiating contracts, without a license is illegal in Texas.
4. How often must a Texas real estate license be renewed?
A. Annually
B. Every two years
C. Every three years
D. Every five years
Rationale: Texas real estate licenses expire every two years and
require continuing education for renewal.
5. Which organization administers the real estate licensing exams in
Texas?
A. Texas Real Estate Commission
B. Prometric Testing Services
, C. Texas Department of Insurance
D. National Association of Realtors
Rationale: Prometric Testing Services administers the state licensing
exams for real estate in Texas under TREC regulations.
6. What is the primary purpose of the Texas Real Estate License Act
(TRELA)?
A. Protect licensees from competition
B. Promote property sales
C. Protect the public in real estate transactions
D. Regulate mortgage lenders
Rationale: TRELA establishes legal requirements and standards for
real estate licensees to ensure public protection.
7. Which of the following is a fiduciary duty owed by a licensee to a
client?
A. Marketing the property
B. Loyalty
C. Providing legal advice
D. Guaranteeing a sale
Rationale: Loyalty is a fiduciary duty requiring licensees to act in the
best interest of their clients.
8. The legal requirement for a real estate contract in Texas to be
enforceable is that it must be:
A. Notarized
, B. Signed by witnesses
C. In writing
D. Recorded
Rationale: Under the Statute of Frauds, most real estate contracts
must be in writing to be enforceable in Texas.
9. Which type of agency relationship is created when a licensee
represents a seller exclusively?
A. Transaction broker
B. Dual agent
C. Seller’s agent
D. Buyer’s agent
Rationale: A seller’s agent represents only the seller in a transaction.
10. What must a licensee disclose to a client about a property
condition?
A. Only defects they personally observe
B. Only structural defects
C. All known material defects
D. Only legal issues
Rationale: Texas law requires licensees to disclose all known material
facts about a property.
11. How long must a real estate licensee retain records of a
transaction?
A. 1 year
