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Which Texas state agency is responsible for licensing and regulating real estate agents and brokers?

Texas Department of Licensing and Regulation (TDLR)

Texas Real Estate Commission (TREC)

Texas Department of Housing and Community Affairs

Texas Appraiser Licensing and Certification Board

to track

2026 Statistics

Key Facts: TX Real Estate Exam

59%

First-Time Pass Rate

TREC 2024

92,720

Annual Candidates

Highest in US

180 hrs

Pre-License Education

TREC

$100K

Homestead Exemption

School taxes

$54

Exam Fee

TREC

110 Q

Exam Questions

80 national + 30 state

Texas has the highest real estate exam volume in the US with 92,720 annual candidates and a 59% first-time pass rate. The exam requires 180 hours of pre-license education (6 courses), 110 questions in 2h30m, and 70% to pass. Texas is unique for its mandatory TREC promulgated forms, intermediary (not dual agency) relationships, and strong homestead protections. TREC administers the exam via Pearson VUE.

Sample TX Real Estate Practice Questions

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1Which Texas state agency is responsible for licensing and regulating real estate agents and brokers?

A.Texas Department of Licensing and Regulation (TDLR)

B.Texas Real Estate Commission (TREC)

C.Texas Department of Housing and Community Affairs

D.Texas Appraiser Licensing and Certification Board

Explanation: The Texas Real Estate Commission (TREC) is the state agency responsible for licensing and regulating real estate brokers and sales agents in Texas. TDLR handles other professional licenses but not real estate. The Texas Appraiser Licensing and Certification Board regulates appraisers, not agents.

2How many hours of pre-license education does Texas require for a sales agent license?

A.90 hours (3 courses of 30 hours each)

B.150 hours (5 courses of 30 hours each)

C.180 hours (6 courses of 30 hours each)

D.210 hours (7 courses of 30 hours each)

Explanation: Texas requires 180 hours of qualifying education consisting of six 30-hour courses: Principles of Real Estate I, Principles of Real Estate II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance. This is one of the highest pre-license education requirements among U.S. states.

3Which of the following is one of the six required 30-hour pre-license courses in Texas?

A.Real Estate Marketing

B.Promulgated Contract Forms

C.Property Management

D.Real Estate Appraisal

Explanation: Promulgated Contract Forms is one of the six required 30-hour pre-license courses for a Texas sales agent license. The six courses are: Principles of Real Estate I, Principles of Real Estate II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance. Marketing, Property Management, and Appraisal are not among the required courses.

4What is the license renewal cycle for a Texas real estate sales agent?

A.Every year

B.Every 2 years

C.Every 4 years

D.Every 5 years

Explanation: Texas real estate licenses are renewed on a 2-year cycle. During each renewal period, sales agents must complete 18 hours of continuing education, which includes the mandatory Legal Update I and Legal Update II courses (4 hours each). The initial license period runs from the date of issuance until the first renewal date set by TREC.

5How many hours of continuing education (CE) must a Texas sales agent complete every two years?

A.12 hours, including Legal Update I and II

B.18 hours, including Legal Update I and II

C.24 hours, including Legal Update I and II

D.18 hours, with no mandatory courses

Explanation: Texas requires 18 hours of CE every two-year renewal cycle. This must include the mandatory Legal Update I (4 hours) and Legal Update II (4 hours) courses, plus 10 additional hours of elective CE. The Legal Update courses cover recent changes to Texas real estate law and TREC rules, making them essential for staying current.

6Under Texas law, who is responsible for maintaining a trust account (escrow account) for holding earnest money and other client funds?

A.The individual sales agent who listed the property

B.The sponsoring broker of the sales agent

C.The buyer's attorney

D.TREC directly manages all trust accounts

Explanation: In Texas, the sponsoring broker is responsible for maintaining the trust account that holds earnest money and other client funds. Sales agents cannot maintain their own trust accounts. TREC does not hold funds directly but does regulate how brokers handle trust accounts and can audit them for compliance.

7What is the SAE (Sales Apprentice Education) requirement for newly licensed Texas sales agents?

A.90 additional hours of education within the first year

B.98 additional hours of qualifying education within the first renewal period

C.60 additional hours of qualifying education before the first renewal

D.No additional education is required beyond the initial 180 hours

Explanation: Newly licensed Texas sales agents must complete an additional 98 hours of Sales Apprentice Education (SAE) before their first license renewal. Combined with the initial 180-hour pre-license requirement, this totals 278 hours of education within the first licensing period. The SAE requirement ensures new agents receive comprehensive training before full licensure.

8What are the TREC Canons of Professional Ethics primarily designed to govern?

A.Marketing and advertising practices only

B.The ethical conduct of all license holders in their dealings with the public

C.Broker-to-broker commission disputes

D.The physical appearance and dress code of agents at showings

Explanation: The TREC Canons of Professional Ethics establish standards for the ethical conduct of all Texas real estate license holders in their dealings with the public. These canons cover honesty, fairness, integrity, and trustworthiness in real estate transactions. They go beyond just marketing and apply to all aspects of professional conduct.

9A consumer files a complaint against a Texas license holder with TREC. What is TREC's authority in this situation?

A.TREC can only issue a verbal warning

B.TREC can investigate, hold hearings, and impose disciplinary actions including license suspension or revocation

C.TREC must refer all complaints to local law enforcement

D.TREC can only mediate disputes between the parties

Explanation: TREC has broad authority to investigate complaints, hold administrative hearings, and impose disciplinary actions against license holders. Penalties can include reprimand, additional education requirements, probation, suspension, or revocation of the license, as well as administrative penalties. TREC acts as the regulatory and enforcement body for the Texas real estate industry.

10A Texas sales agent wants to place their license on inactive status. Which of the following is TRUE about inactive status?

A.The agent can still represent buyers but not sellers

B.The agent cannot perform any real estate activities for compensation while on inactive status

C.Inactive status automatically waives all continuing education requirements

D.An inactive license never expires and can be reactivated at any time

Explanation: When a Texas real estate license is on inactive status, the holder cannot engage in any real estate activities for compensation. The license holder must still meet renewal requirements and pay renewal fees to keep the license from expiring. To reactivate, the agent must complete any required CE and associate with a sponsoring broker.

About the TX Real Estate Exam

The Texas real estate sales agent exam covers TREC licensing requirements, promulgated contract forms, Texas property tax and homestead protections, intermediary relationships, and state-specific disclosures including MUD and flood zone requirements.

Questions

110 scored questions

Time Limit

2 hours 30 minutes

Passing Score

70%

Exam Fee

$54 (TREC / Pearson VUE)

TX Real Estate Exam Content Outline

25%

TREC & Licensing

TREC licensing requirements, 180-hour education, canons of ethics, trust accounts, continuing education

25%

Promulgated Forms & Contracts

TREC promulgated forms, option period, earnest money, addenda, DTPA

20%

TX Property Tax & Homestead

Homestead exemption, community property, tax protest, rollback taxes

20%

TX Agency & Disclosures

IABS, intermediary relationships, seller's disclosure, MUD, flood zone

10%

National Concepts

Property ownership, financing, valuation, federal fair housing

How to Pass the TX Real Estate Exam

What You Need to Know

Passing score: 70%
Exam length: 110 questions
Time limit: 2 hours 30 minutes
Exam fee: $54

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

TX Real Estate Study Tips from Top Performers

1Master TREC promulgated forms — know when each form and addendum is required

2Understand the option period: buyer pays option fee for unrestricted right to terminate

3Know intermediary relationships (NOT dual agency) and when IABS must be provided

4Learn Texas homestead protections: $100,000 school tax exemption, size limits (10 acres urban, 100/200 rural)

5Study community property rules: both spouses must sign on homestead transactions

Frequently Asked Questions

How hard is the Texas real estate exam?

The TX exam has a 59% first-time pass rate with 92,720 annual candidates — the highest volume in the US. It has 110 questions (80 national + 30 state) in 2h30m, requiring 70% to pass. TREC promulgated forms and Texas-specific contract law are heavily tested.

What are TREC promulgated forms?

TREC promulgated forms are standardized contract forms that Texas real estate agents MUST use. Using unauthorized forms is a violation. Key forms include the One to Four Family Residential Contract (Resale), Third Party Financing Addendum, and Property Condition Addendum.

What is the Texas intermediary relationship?

Texas does NOT use 'dual agency.' Instead, TREC uses the intermediary relationship, where a broker represents both buyer and seller with written consent. The broker may appoint different licensees to each party as 'appointed licensees' who can provide opinions and advice.

What is the Texas homestead exemption?

Texas homestead exemption provides $100,000 off the assessed value for school district taxes (since 2023). Additional exemptions exist for over-65, disabled persons, and veterans. Texas homestead law also protects against forced sale for most debts.