Texas Real Estate Final Exam Questions
and Answers Graded A+
Can a broker use the words "team" or "group" in the broker's licensed name or
assumed business name? - Correct answer-Yes. TREC Rules do not prohibit a
broker from using the word "team" or "group" anywhere in a broker's licensed or
assumed business name.
Can a name used in advertising be both an assumed business name and a team
name? - Correct answer-No. It will be one or the other. See question regarding the
difference between the types of names to figure out which one is appropriate for
your situation.
What is the difference between an assumed business name and a team name? -
Correct answer-Assumed Business Name (also known as a dba) is another name
for the broker's business that can be used by all sponsored sales agents and brokers
associated with this broker. Another name that indicates a broker's line of business,
e.g. property management or commercial, is also an assumed business name of the
broker, even though it may not be available for use by all sponsored agents and
associated brokers.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Team Name is a name used only by a team or group of one or more sponsored
sales agents or brokers associated with this broker. Team names must end in "team"
or "group" and cannot contain the words "brokerage", "company", "associates" or
other similar terms.
A residential service company is paying me a fee to advertise for it. Do I have to
disclose that fee to my client and use a TREC form? - Correct answer-Yes and yes.
You must also provide the client with the TREC Disclosure of Relationship with
Residential Service Company form
I am a sales agent. Can TREC review my advertising and advise me whether my
advertising complies with TREC Rules? - Correct answer-No. TREC does not
review a sales agent's advertising. TREC will only discuss advertising questions
with a broker directly. Your sponsoring broker should review your advertising
because your sponsoring broker is responsible for ensuring that your advertising
complies with TREC's advertising rules, and both you and your sponsoring broker
can be disciplined if your advertising violates TREC rules. Your broker must
maintain, on a current basis, written policies and procedures to ensure that each
sponsored sales agent complies with the Commission's advertising rules.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,When can an agent say that they "sold" a property in an advertisement? - Correct
answer-Any agent who worked with the seller or the buyer in a transaction that
resulted in the sale of a property may correctly state in an advertisement that they
"sold" the property. If the license holder did not participate in that specific
transaction, he cannot state or imply that his actions resulted in the sale of that
property. An example of a misleading advertisement of this nature would be if a
license holder sent out "Just Sold" postcards with her contact information and a
picture of a recently sold property that she did not help to sell. She didn't state that
she sold it but an average person reading the card could surely and reasonably
imply an erroneous claim of involvement. Another potential example of a
misleading advertisement is a license holder who included a list of "Recently Sold
Homes" in his advertisement that included many properties where he had no role in
the transaction, but he failed to make it clear in the ad which - if any - of those
transactions he was involved in. Under Texas law, a license holder may not "create
a misleading impression" in their advertisement. A broker must review all ads to
ensure this result is avoided.
Is a license holder required to put their license number on a sign or other
advertising? - Correct answer-No.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, May a license holder who is a rental locator advertise that they will pay a
prospective tenant a portion of their fee received from an apartment complex if the
tenant uses the locator's services? - Correct answer-Yes, as long as the ad complies
with Rule 535.155 (effective May 15, 2018), which requires the consent of the
party the license holder represents in a transaction. When a rental locator
represents an apartment complex, the locator needs the consent of the apartment
complex. When the rental locator represents a tenant and not an apartment
complex, as demonstrated by a written representation agreement or other evidence
of representation, the locator is not required to obtain the consent of the apartment
complex because the complex is not his client. Regardless of representation,
however, it is misleading advertising to advertise a rebate for an apartment
complex that the locator knows has a "no rebate" policy.
Can I advertise a service provider such as an inspector, moving company, or repair
contractor on my website? - Correct answer-Yes, but if you offer, recommend, or
promote the use of a service provider and expect to receive compensation from the
service provider when a party uses the service, the ad must disclose that you may
receive the compensation. You may advertise an inspector's services, however, an
inspector may not pay a fee or other valuable consideration for (1) a referral, (2)
inclusion on a list of inspectors or preferred providers, or a similar arrangement; or
(3) inclusion on a list of inspections contingent on other financial agreements.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
and Answers Graded A+
Can a broker use the words "team" or "group" in the broker's licensed name or
assumed business name? - Correct answer-Yes. TREC Rules do not prohibit a
broker from using the word "team" or "group" anywhere in a broker's licensed or
assumed business name.
Can a name used in advertising be both an assumed business name and a team
name? - Correct answer-No. It will be one or the other. See question regarding the
difference between the types of names to figure out which one is appropriate for
your situation.
What is the difference between an assumed business name and a team name? -
Correct answer-Assumed Business Name (also known as a dba) is another name
for the broker's business that can be used by all sponsored sales agents and brokers
associated with this broker. Another name that indicates a broker's line of business,
e.g. property management or commercial, is also an assumed business name of the
broker, even though it may not be available for use by all sponsored agents and
associated brokers.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Team Name is a name used only by a team or group of one or more sponsored
sales agents or brokers associated with this broker. Team names must end in "team"
or "group" and cannot contain the words "brokerage", "company", "associates" or
other similar terms.
A residential service company is paying me a fee to advertise for it. Do I have to
disclose that fee to my client and use a TREC form? - Correct answer-Yes and yes.
You must also provide the client with the TREC Disclosure of Relationship with
Residential Service Company form
I am a sales agent. Can TREC review my advertising and advise me whether my
advertising complies with TREC Rules? - Correct answer-No. TREC does not
review a sales agent's advertising. TREC will only discuss advertising questions
with a broker directly. Your sponsoring broker should review your advertising
because your sponsoring broker is responsible for ensuring that your advertising
complies with TREC's advertising rules, and both you and your sponsoring broker
can be disciplined if your advertising violates TREC rules. Your broker must
maintain, on a current basis, written policies and procedures to ensure that each
sponsored sales agent complies with the Commission's advertising rules.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,When can an agent say that they "sold" a property in an advertisement? - Correct
answer-Any agent who worked with the seller or the buyer in a transaction that
resulted in the sale of a property may correctly state in an advertisement that they
"sold" the property. If the license holder did not participate in that specific
transaction, he cannot state or imply that his actions resulted in the sale of that
property. An example of a misleading advertisement of this nature would be if a
license holder sent out "Just Sold" postcards with her contact information and a
picture of a recently sold property that she did not help to sell. She didn't state that
she sold it but an average person reading the card could surely and reasonably
imply an erroneous claim of involvement. Another potential example of a
misleading advertisement is a license holder who included a list of "Recently Sold
Homes" in his advertisement that included many properties where he had no role in
the transaction, but he failed to make it clear in the ad which - if any - of those
transactions he was involved in. Under Texas law, a license holder may not "create
a misleading impression" in their advertisement. A broker must review all ads to
ensure this result is avoided.
Is a license holder required to put their license number on a sign or other
advertising? - Correct answer-No.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, May a license holder who is a rental locator advertise that they will pay a
prospective tenant a portion of their fee received from an apartment complex if the
tenant uses the locator's services? - Correct answer-Yes, as long as the ad complies
with Rule 535.155 (effective May 15, 2018), which requires the consent of the
party the license holder represents in a transaction. When a rental locator
represents an apartment complex, the locator needs the consent of the apartment
complex. When the rental locator represents a tenant and not an apartment
complex, as demonstrated by a written representation agreement or other evidence
of representation, the locator is not required to obtain the consent of the apartment
complex because the complex is not his client. Regardless of representation,
however, it is misleading advertising to advertise a rebate for an apartment
complex that the locator knows has a "no rebate" policy.
Can I advertise a service provider such as an inspector, moving company, or repair
contractor on my website? - Correct answer-Yes, but if you offer, recommend, or
promote the use of a service provider and expect to receive compensation from the
service provider when a party uses the service, the ad must disclose that you may
receive the compensation. You may advertise an inspector's services, however, an
inspector may not pay a fee or other valuable consideration for (1) a referral, (2)
inclusion on a list of inspectors or preferred providers, or a similar arrangement; or
(3) inclusion on a list of inspections contingent on other financial agreements.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
