TEXAS REAL ESTATE ACTUAL FINAL PAPER 2025/2026
QUESTIONS AND SOLUTIONS GRADED A+
✔✔What is required of any broker who sponsors one or more sales agents? - ✔✔6 hour
broker responsibility course
✔✔After first renewal, what CE is required by TREC? - ✔✔18 hour class every 2 years
✔✔What does the 18-hour CE include? - ✔✔4 hours each: Legal 1 and Legal 2
✔✔If TREC does not have proof of CE at the time a license holder renews (on time
renewal) - ✔✔Fee for renewal will be $200; late education must be done within 60 days
✔✔If TREC does not have proof of CE at the time a license holder renews (on time
renewal) AND late education is more than 60 days late... - ✔✔$450 penalty plus a $50
filing fee
✔✔If a licensee submits CE hours but fails to renew license on time, - ✔✔there is no
penalty
✔✔Fee for late renewal CE deferral - ✔✔$200
✔✔If TREC denies an application, they must notify the applicant in this amount of days -
✔✔30
✔✔The number of days an applicant has to appeal denial of license is - ✔✔10
✔✔If no appeal is made in the prescribed amount of time, - ✔✔TREC's decision stands
✔✔Sales licenses are always held by either TREC or the sponsoring broker, never by
the licensee. - ✔✔True
✔✔An inactive license holder doesn't need to disclose that his is a licensee when
purchasing real estate - ✔✔False
✔✔To activate an inactive license - ✔✔pay $50 and do 18 hours of CE
✔✔5 Canons of Professional Ethics and Conduct - ✔✔fidelity
integrity
competency
consumer information notice 1-2
discriminatory practices
, ✔✔Consumer information notice 1-2 - ✔✔Notifies the public of the recovery trust
account
Must be displayed in a prominent place in the broker's office
✔✔If TREC revokes a license, the licensee must wait this amount of time before trying
to obtain a new one - ✔✔2 years
✔✔Earnest money must be deposited by - ✔✔the close of business the second
business day after the effective date of the contract
✔✔No unlicensed person in Texas can ever - ✔✔earn real estate commission
✔✔A license holder may rebate a portion of his/her commission to a client - ✔✔true
✔✔A license holder may not rebate a portion of his/her commission to a customer -
✔✔False; but they need client's permission
✔✔All ads must include - ✔✔the broker or company name
✔✔The broker or company name - ✔✔must appear on every page of a website
✔✔Senate Bill 489 - ✔✔Requires a license holder to give IABS form (disclose agency)
at first substantive meeting
✔✔Exceptions to Senate Bill 489 - ✔✔Open houses, meeting with someone already
repped by another licensee, lease for not more than 1 year, no sale being considered
✔✔Oral or written disclosure of agency is allowed - ✔✔true
✔✔Intermediary - ✔✔the broker reps both buyer and seller
both parties must agree in writing
intermediary must not give advice to either party
✔✔A broker must deliver TREC correspondence to sales agents within how many
calendar days of receipt? - ✔✔10
✔✔In order to sue for a commission, you must prove: - ✔✔procuring cause of sale,
written compensation agreement, licensed by TREC, provided written notice to the
buyer to obtain an attorney's opinion of title or a title policy
✔✔If broker terminates sponsorship, he must: - ✔✔do so in writing and return license to
TREC immediately
QUESTIONS AND SOLUTIONS GRADED A+
✔✔What is required of any broker who sponsors one or more sales agents? - ✔✔6 hour
broker responsibility course
✔✔After first renewal, what CE is required by TREC? - ✔✔18 hour class every 2 years
✔✔What does the 18-hour CE include? - ✔✔4 hours each: Legal 1 and Legal 2
✔✔If TREC does not have proof of CE at the time a license holder renews (on time
renewal) - ✔✔Fee for renewal will be $200; late education must be done within 60 days
✔✔If TREC does not have proof of CE at the time a license holder renews (on time
renewal) AND late education is more than 60 days late... - ✔✔$450 penalty plus a $50
filing fee
✔✔If a licensee submits CE hours but fails to renew license on time, - ✔✔there is no
penalty
✔✔Fee for late renewal CE deferral - ✔✔$200
✔✔If TREC denies an application, they must notify the applicant in this amount of days -
✔✔30
✔✔The number of days an applicant has to appeal denial of license is - ✔✔10
✔✔If no appeal is made in the prescribed amount of time, - ✔✔TREC's decision stands
✔✔Sales licenses are always held by either TREC or the sponsoring broker, never by
the licensee. - ✔✔True
✔✔An inactive license holder doesn't need to disclose that his is a licensee when
purchasing real estate - ✔✔False
✔✔To activate an inactive license - ✔✔pay $50 and do 18 hours of CE
✔✔5 Canons of Professional Ethics and Conduct - ✔✔fidelity
integrity
competency
consumer information notice 1-2
discriminatory practices
, ✔✔Consumer information notice 1-2 - ✔✔Notifies the public of the recovery trust
account
Must be displayed in a prominent place in the broker's office
✔✔If TREC revokes a license, the licensee must wait this amount of time before trying
to obtain a new one - ✔✔2 years
✔✔Earnest money must be deposited by - ✔✔the close of business the second
business day after the effective date of the contract
✔✔No unlicensed person in Texas can ever - ✔✔earn real estate commission
✔✔A license holder may rebate a portion of his/her commission to a client - ✔✔true
✔✔A license holder may not rebate a portion of his/her commission to a customer -
✔✔False; but they need client's permission
✔✔All ads must include - ✔✔the broker or company name
✔✔The broker or company name - ✔✔must appear on every page of a website
✔✔Senate Bill 489 - ✔✔Requires a license holder to give IABS form (disclose agency)
at first substantive meeting
✔✔Exceptions to Senate Bill 489 - ✔✔Open houses, meeting with someone already
repped by another licensee, lease for not more than 1 year, no sale being considered
✔✔Oral or written disclosure of agency is allowed - ✔✔true
✔✔Intermediary - ✔✔the broker reps both buyer and seller
both parties must agree in writing
intermediary must not give advice to either party
✔✔A broker must deliver TREC correspondence to sales agents within how many
calendar days of receipt? - ✔✔10
✔✔In order to sue for a commission, you must prove: - ✔✔procuring cause of sale,
written compensation agreement, licensed by TREC, provided written notice to the
buyer to obtain an attorney's opinion of title or a title policy
✔✔If broker terminates sponsorship, he must: - ✔✔do so in writing and return license to
TREC immediately
