Texas Real Estate Exam Flashcards

Q: How many questions are on the Texas Real Estate Sales Agent exam?

The Texas Real Estate Sales Agent exam has 125 total items: 85 national and 40 state items, including scored and pretest questions. The time limit is 4 hours.

Q: What score do I need to pass the Texas real estate exam?

The January 2026 Pearson VUE handbook standard in this project is 70%, with 56 national questions and 28 state questions correct. Candidates should confirm the current handbook before scheduling.

Q: What should Texas Real Estate flashcards cover?

Texas Real Estate flashcards should cover TREC licensing, broker supervision, agency duties, IABS, intermediary practice, promulgated forms, disclosures, homestead rules, community property, and landlord-tenant rules.

Question 1

Texas Real Estate Commission (TREC)

Accepted Answer

The state agency that licenses and regulates Texas real estate brokers, sales agents, inspectors, and education providers under TRELA and TREC rules.

Question 2

TRELA

Accepted Answer

The Texas Real Estate License Act. It defines who must be licensed, license exemptions, prohibited conduct, disciplinary powers, and penalties for unlicensed activity.

Question 3

TREC commission makeup

Accepted Answer

TREC has nine governor-appointed members: six licensed broker members and three public members. Members serve staggered six-year terms.

Question 4

TREC administrative penalty

Accepted Answer

TREC may impose an administrative penalty up to $5,000 per violation, along with other discipline such as reprimand, suspension, revocation, or probation.

Question 5

Real Estate Recovery Fund

Accepted Answer

A TREC fund that may compensate consumers for actual damages caused by a license holder after the consumer obtains an unpaid court judgment.

Question 6

Recovery Fund limits

Accepted Answer

The recovery fund limit is commonly tested as $50,000 per transaction and $100,000 per license holder. Payment from the fund causes automatic license revocation.

Question 7

Texas sales agent education

Accepted Answer

Applicants complete 180 classroom hours: Principles I, Principles II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance.

Question 8

Basic Texas sales agent eligibility

Accepted Answer

An applicant must be at least 18, be a U.S. citizen or lawfully admitted alien, satisfy TREC honesty and integrity standards, complete education, and pass the background check.

Question 9

Fitness Determination

Accepted Answer

A request an applicant may make before applying so TREC can review whether criminal history or other conduct could affect license eligibility.

Question 10

Inactive license after passing

Accepted Answer

After requirements are met, TREC issues an inactive sales agent license. The agent cannot work until an active Texas broker sponsors the license.

Question 11

Sponsoring broker

Accepted Answer

The active Texas broker who sponsors a sales agent, supervises the agent's real estate services, and is responsible for proper brokerage activity.

Question 12

Commission payment rule

Accepted Answer

A Texas sales agent may not collect commission directly from a client. Compensation must flow through the sponsoring broker.

Question 13

Changing sponsoring brokers

Accepted Answer

During any gap between sponsors, the sales agent's license is inactive and the agent cannot perform real estate services for compensation.

Question 14

Broker written policies

Accepted Answer

Texas brokers must maintain written policies and procedures for supervising agents, handling trust funds, advertising, document retention, and complaints.

Question 15

Broker trust account responsibility

Accepted Answer

The broker, not an individual sales agent, is responsible for proper handling of client funds such as earnest money held in a trust account.

Question 16

License renewal cycle

Accepted Answer

Texas real estate sales agent licenses renew every two years, and renewal requires current TREC education and fee compliance.

Question 17

Continuing education for renewal

Accepted Answer

Texas sales agents complete 18 CE hours per two-year cycle: Legal Update I, Legal Update II, and elective hours.

Question 18

Sales Agent Apprentice Education (SAE)

Accepted Answer

Additional education required for newly licensed Texas sales agents before their first renewal. It is separate from later continuing education.

Question 19

OLD CAR fiduciary duties

Accepted Answer

Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care. These duties frame a Texas agent's obligations to a client.

Question 20

Client vs. customer

Accepted Answer

A client is represented and owed fiduciary duties. A customer is not represented but must still be treated honestly and fairly.

Question 21

IABS form

Accepted Answer

Information About Brokerage Services. It discloses brokerage relationship options and must be given at first substantive dialogue about a specific property.

Question 22

First substantive dialogue

Accepted Answer

A specific conversation about a party's real estate needs, motivations, or transaction details. It triggers the IABS delivery requirement.

Question 23

Texas intermediary relationship

Accepted Answer

A broker represents both buyer and seller in the same transaction only with written consent from both parties and required statutory disclosures.

Question 24

Intermediary without appointments

Accepted Answer

The broker remains neutral and cannot give opinions or advice favoring one party over the other. Confidential information remains protected.

Question 25

Intermediary with appointments

Accepted Answer

The broker appoints different license holders to communicate with and advise each party, while the broker still acts as intermediary.

Question 26

Written representation agreement

Accepted Answer

Texas brokers generally need a written listing or buyer representation agreement to establish agency duties and protect the right to compensation.

Question 27

Protection period

Accepted Answer

A safety clause that may preserve a broker's commission claim after a representation agreement expires for buyers or prospects the broker procured.

Question 28

TREC promulgated forms

Accepted Answer

Standardized real estate contract forms created for required use by Texas license holders when an appropriate promulgated form exists.

Question 29

Broker-Lawyer Committee

Accepted Answer

The committee that drafts and revises TREC contract forms. It is commonly tested as six brokers and six attorneys.

Question 30

What license holders may add to TREC forms

Accepted Answer

They may fill blanks, check boxes, add factual business details, and attach proper addenda. They may not draft legal provisions.

Question 31

Unauthorized practice of law

Accepted Answer

A license holder risks TRELA discipline by drafting legal clauses or modifying contract rights instead of using promulgated forms or referring parties to counsel.

Question 32

One-to-Four Family Residential Contract

Accepted Answer

The common TREC resale contract for one-to-four family residential property. It organizes key terms such as parties, property, price, financing, earnest money, and closing.

Question 33

Option period

Accepted Answer

A negotiated period giving the buyer an unrestricted right to terminate by timely written notice, supported by the option fee.

Question 34

Option fee

Accepted Answer

Consideration paid for the buyer's unrestricted termination right during the option period. It is treated separately from earnest money.

Question 35

Special Provisions paragraph

Accepted Answer

The place for factual statements and business details that do not belong elsewhere. It is not a place for a license holder to write legal terms.

Question 36

Third Party Financing Addendum

Accepted Answer

Used when the buyer's purchase depends on third-party loan approval, such as conventional, FHA, or VA financing.

Question 37

Mandatory HOA membership addendum

Accepted Answer

Used when the property is subject to mandatory membership in an owners' association, so HOA-related rights and costs are addressed in the contract.

Question 38

Amendment vs. addendum

Accepted Answer

An addendum supplements the original contract for a specific issue. An amendment changes terms after the contract already exists and requires agreement of the parties.

Question 39

Earnest money dispute

Accepted Answer

The title company does not decide who gets disputed earnest money. Release usually requires party agreement, mediation, court action, or interpleader.

Question 40

Seller's Disclosure Notice

Accepted Answer

A Texas Property Code disclosure for many residential sales. It covers known property condition items, but it does not replace an agent's duty to disclose known material facts.

Question 41

Seller disclosure exemptions

Accepted Answer

Common exemptions include foreclosure, estate, and some new construction transfers. The exact exemption should be checked against the current Property Code.

Question 42

Lead-based paint disclosure

Accepted Answer

A federal disclosure required for most housing built before 1978. It is separate from Texas-specific seller disclosure duties.

Question 43

Texas DTPA

Accepted Answer

The Deceptive Trade Practices Act protects consumers against false, misleading, deceptive, and unconscionable conduct, including in real estate transactions.

Question 44

DTPA damages

Accepted Answer

Actual damages are available for violations. Knowing or intentional conduct can allow up to three times actual damages, and attorney's fees may be awarded to a prevailing consumer.

Question 45

Valid DTPA waiver

Accepted Answer

A DTPA waiver is narrow. The consumer must be represented by their own attorney, and the attorney must separately sign the waiver.

Question 46

Texas homestead protection

Accepted Answer

Homestead law protects a qualifying home from most creditor claims. The protection is automatic and does not require filing a declaration.

Question 47

Homestead acreage limits

Accepted Answer

Texas homestead limits are commonly tested as 10 acres for an urban homestead, 200 rural acres for a family, and 100 rural acres for a single adult.

Question 48

Debts that can force homestead sale

Accepted Answer

Common exceptions include purchase money liens, property taxes, qualifying home equity loans, and mechanic's liens for improvements.

Question 49

Texas community property presumption

Accepted Answer

Property acquired during marriage is presumed community property. Separate property includes premarital property, gifts, inheritance, and qualifying personal injury recoveries.

Question 50

Texas residential security deposit

Accepted Answer

A landlord generally must return the deposit or provide itemized deductions within 30 days after surrender, once the tenant provides a forwarding address.

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