Texas Real Estate State Licensing Exam-
Updated Question and Answers [100%
Correct] 2025/2026 Latest Release!!
What is required for an individual to become eligible for a real estate license in Texas?
To be eligible for a real estate license in Texas, an individual must be at least 18 years old, be a
U.S. citizen or a legal resident, and have completed 180 hours of qualifying education.
Explain the purpose of the Texas Real Estate Commission (TREC).
The Texas Real Estate Commission (TREC) is responsible for regulating the real estate profession in
Texas, ensuring that real estate professionals comply with laws, and protecting the public by enforcing
rules and regulations.
What is the primary duty of a real estate broker in Texas?
The primary duty of a real estate broker in Texas is to act as an intermediary between buyers and
sellers, helping to facilitate the transaction process while ensuring compliance with all state regulations
and legal standards.
What is the difference between a real estate agent and a broker in Texas?
A real estate agent is licensed to assist in real estate transactions under the supervision of a
broker, while a broker has more advanced education and can own a real estate business and supervise
agents.
What type of insurance is required for a real estate broker in Texas?
A real estate broker in Texas is required to carry Errors and Omissions (E&O) insurance to protect
against lawsuits and claims arising from their professional actions.
What are the requirements for renewing a real estate license in Texas?
To renew a real estate license in Texas, an individual must complete 18 hours of continuing
education and submit a renewal application before the expiration date of the license.
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,What does the Texas law say about dual agency?
Texas law allows dual agency, but it requires the broker to inform and obtain written consent
from all parties involved in the transaction, ensuring transparency and preventing conflicts of interest.
What is a "Listing Agreement" in Texas real estate practice?
A Listing Agreement is a contract between a real estate agent and a property owner, giving the
agent the right to market and sell the property on behalf of the owner, usually in exchange for a
commission.
How does a real estate agent in Texas handle client funds?
In Texas, a real estate agent must handle client funds, such as earnest money or deposits, in a
fiduciary capacity, ensuring they are placed in an escrow account and used appropriately according to
the terms of the contract.
Explain the "Buyer's Representation Agreement" in Texas real estate.
A Buyer's Representation Agreement is a contract between a real estate agent and a buyer,
outlining the agent's duties to assist the buyer in purchasing property and typically establishing the
agent's compensation.
What is the difference between "property management" and "real estate sales" in Texas?
Property management involves overseeing rental properties, handling leases, maintenance, and
tenant relations, while real estate sales focus on buying and selling properties.
What is the Fair Housing Act, and how does it affect real estate transactions in Texas?
The Fair Housing Act prohibits discrimination based on race, color, religion, sex, disability, familial
status, or national origin in housing transactions, including renting, buying, and lending in Texas.
Describe "Title Insurance" and its importance in Texas real estate transactions.
Title Insurance protects the buyer and lender from financial loss due to defects in the title of a
property, such as liens or ownership disputes, ensuring a clear title during a transaction.
What is "Escrow" in a real estate transaction in Texas?
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, Escrow is the neutral holding of funds and documents related to a real estate transaction until all
conditions of the contract are met, ensuring both parties fulfill their obligations before the deal closes.
What is the role of an "Appraiser" in Texas real estate?
An appraiser provides an unbiased estimate of the market value of a property, which is important
for determining fair pricing and obtaining financing for a real estate transaction.
Explain the concept of "commission" in Texas real estate transactions.
Commission is the payment made to a real estate agent or broker for services rendered in
facilitating a property transaction, typically a percentage of the sale price.
What is "agency" in real estate in Texas?
Agency in real estate refers to the legal relationship between a real estate agent and their client,
where the agent has a fiduciary responsibility to act in the best interests of the client.
What does the "Texas Deceptive Trade Practices-Consumer Protection Act" (DTPA) involve?
The DTPA protects consumers from false, misleading, or deceptive business practices, including in
real estate transactions, ensuring that all parties engage in honest and fair dealing.
What is " earnest money" in a real estate transaction in Texas?
Earnest money is a deposit made by a buyer to demonstrate their intent to purchase a property,
which is held in escrow and applied toward the down payment or returned if the deal does not close.
What is the "Right of First Refusal" in real estate?
A Right of First Refusal is a contract provision that gives a tenant the option to purchase a
property before the owner sells it to another buyer, usually at a pre-agreed price or terms.
What is a "Closing Disclosure" in Texas real estate transactions?
A Closing Disclosure is a detailed statement of the final terms and costs of a real estate
transaction, including loan costs, taxes, and fees, provided to the buyer and seller prior to closing.
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