REAL ESTATE BROKER STATE PREP
EXAM 1 QUESTIONS AND ANSWERS
GRADED A+ 2025/2026
For what one cause of license revocation does TRELA specify a payment prior to relicensing? -
ANS Payment out of the Recovery Trust Account
An unlicensed assistant is showing property for her broker. Which of the following penalties
would apply and to whom? - ANS Both the broker and the unlicensed assistant would be
subject to fines by TREC
A licensee has been successfully sued by a past client in connection with a single transaction.
The client has prevailed and been awarded a judgment for $75,000.00. The licensee has
declared bankruptcy and is unable to pay the judgment. The client has applied to TREC for
payment out of the Recovery Trust Account. TREC has agreed to the payment. How much will
the client receive: - ANS $50,000.00
All of the following must be licensed as brokers EXCEPT: - ANS An investor-owner collecting or
accepting rent from single family residential properties
A licensee subject to MCE has completed an on-time renewal and payment of license fee, but
has not satisfied the MCE requirement. All of the following are true EXCEPT: - ANS After 60
days the licensee can remain active by paying another $250 fine
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, If a broker wants to have a branch office, the branch office must have: - ANS A branch office
license
What is true about TREC Consumer Information form 1-1? - ANS It must be displayed in the
broker's office
A broker has contacted a seller about listing the seller's property. The listing presentation went
well and the seller has agreed to list with the broker. The listing agreement has not been signed
but the broker has an appointment with the sellers for this evening to finalize the agreement
and for all parties to sign. The broker would like to place his sign on the property today. What is
true? - ANS The broker must wait for the written permission to place the sign
Can a broker rebate a portion of the commission to a customer at closing? - ANS Yes, with the
permission and agreement of the client
Texas broker has received a referral of a buyer from a broker in Mississippi. The buyer has
worked with the Texas broker and found a property to buy. The buyer has asked the Texas
broker to supply him with a TREC contract form. The broker has provided the form to the buyer.
The buyer has taken the form to his friend, the Mississippi broker, who has helped the buyer to
fill in the blanks on the form and offered some negotiation tips to the buyer. The buyer has
returned the form to the Texas broker. The Texas broker presented the offer to the seller and the
seller has accepted the offer. The transaction has closed and the Texas broker has received a
commission. Can the Texas broker share his commission with the Mississippi broker? -
ANS Yes, because the Mississippi broker did not negotiate in Texas
Which of the following legal documents can be prepared by a Texas real estate licensee? -
ANS A contract addendum
A broker has placed his own funds in the trust account along with the funds of several clients.
He has written records of all funds in the account. The broker has paid some office expenses out
of the account in an amount exceeding his own deposit. The broker is guilty of: -
ANS Conversion
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM 1 QUESTIONS AND ANSWERS
GRADED A+ 2025/2026
For what one cause of license revocation does TRELA specify a payment prior to relicensing? -
ANS Payment out of the Recovery Trust Account
An unlicensed assistant is showing property for her broker. Which of the following penalties
would apply and to whom? - ANS Both the broker and the unlicensed assistant would be
subject to fines by TREC
A licensee has been successfully sued by a past client in connection with a single transaction.
The client has prevailed and been awarded a judgment for $75,000.00. The licensee has
declared bankruptcy and is unable to pay the judgment. The client has applied to TREC for
payment out of the Recovery Trust Account. TREC has agreed to the payment. How much will
the client receive: - ANS $50,000.00
All of the following must be licensed as brokers EXCEPT: - ANS An investor-owner collecting or
accepting rent from single family residential properties
A licensee subject to MCE has completed an on-time renewal and payment of license fee, but
has not satisfied the MCE requirement. All of the following are true EXCEPT: - ANS After 60
days the licensee can remain active by paying another $250 fine
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, If a broker wants to have a branch office, the branch office must have: - ANS A branch office
license
What is true about TREC Consumer Information form 1-1? - ANS It must be displayed in the
broker's office
A broker has contacted a seller about listing the seller's property. The listing presentation went
well and the seller has agreed to list with the broker. The listing agreement has not been signed
but the broker has an appointment with the sellers for this evening to finalize the agreement
and for all parties to sign. The broker would like to place his sign on the property today. What is
true? - ANS The broker must wait for the written permission to place the sign
Can a broker rebate a portion of the commission to a customer at closing? - ANS Yes, with the
permission and agreement of the client
Texas broker has received a referral of a buyer from a broker in Mississippi. The buyer has
worked with the Texas broker and found a property to buy. The buyer has asked the Texas
broker to supply him with a TREC contract form. The broker has provided the form to the buyer.
The buyer has taken the form to his friend, the Mississippi broker, who has helped the buyer to
fill in the blanks on the form and offered some negotiation tips to the buyer. The buyer has
returned the form to the Texas broker. The Texas broker presented the offer to the seller and the
seller has accepted the offer. The transaction has closed and the Texas broker has received a
commission. Can the Texas broker share his commission with the Mississippi broker? -
ANS Yes, because the Mississippi broker did not negotiate in Texas
Which of the following legal documents can be prepared by a Texas real estate licensee? -
ANS A contract addendum
A broker has placed his own funds in the trust account along with the funds of several clients.
He has written records of all funds in the account. The broker has paid some office expenses out
of the account in an amount exceeding his own deposit. The broker is guilty of: -
ANS Conversion
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
