Texas Real Estate Commission (TREC) State Practice Exam

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• What action does TREC take if the Recovery Trust Account balance falls below $1 million?
• What does remediation refer to in the context of mold?
• Can a broker give advice or opinions to either party in a real estate transaction?
• How many hours of continuing education must a licensee complete every two years?
• What does 'substantive dialogue' entail?
• What type of continuing education classes are required for legal updates?
• Within how many calendar days must a broker respond to sponsored sales agents or clients representing other parties?
• What happens when the Recovery Trust Account balance is not below 1 million?
• Which of the following can a Sales Agent not do in Texas?
• What is one method to post the IABS and Consumer Notice?
• What is the maximum administrative penalty TREC can impose per day?
• What takes precedence between statutory intermediary and common law dual agency?
• When are foreclosure sales held in Texas?
• What is one component of the broker's license educational requirements?
• When are temporary lease addendums typically used?
• Where must property rights be recorded, and why?
• How many continuing education (CE) classes can be carried over to the next period?
• How long do Brokers in Texas need to maintain records of transactions?
• How long can homeowners backfile homestead exemptions?
• What is the primary purpose of the Consumer Information Notice 1-2?
• What is the penalty for violating the License Act as stipulated by TREC?
• If a license is revoked by TREC, what action can be taken by the individual?
• In a real estate transaction, what is often included in a contract’s timeframe for resolving title issues?
• What is the significance of the probate hearing in the context of title transfer?
• Who is primarily responsible for filling in the effective date on a real estate contract?
• What is the consequence of foreclosing a homestead for unpaid taxes?
• When does the title transfer according to a will?
• What type of foreclosures in Texas are classified as judicial?
• What differentiates earnest money from the option fee?
• Is it permissible for a commission to be paid to an unlicensed person?
• Can a licensee rebate a portion of the commission to a client in a transaction?
• What is the maximum criminal penalty for engaging in real estate brokerage without a license?
• What is the minimum annual limit for Errors and Omissions Insurance if an agent has less than 10% interest in a business?
• When must TREC be notified of an assumed name's usage or cessation?
• Which category does a Mechanics Lien belong to regarding foreclosable liens?
• When must the disclosure of agency be given?
• What does the Deceptive Trade Practices Act allow for?
• Is there a time limit for an applicant to choose a Broker?
• When can TREC initiate an investigation against a licensee?
• What is the consequence of a TREC payment from the Recovery Trust Account?
• What can happen if a person repeatedly violates the License Act?
• Which of the following situations would require TREC to take action?
• What is the time limit for filing a complaint under the Deceptive Trade Practices Act (DTPA)?
• Is the increased value of separate property considered community property?
• In which scenario would TREC schedule a revocation/suspension hearing?
• What is a primary benefit of the Texas Veterans mortgage loan program?
• What is the consequence of engaging in real estate brokerage without a valid license from TREC?
• What is a requirement for the Consumer Protection Notice posted on a business website?
• What type of form is the Information About Brokerage Services (IABS)?
• Under which circumstances do heirs receive property through descent?
• What is the required duration for a Brokerage to retain a written record of all funds?
• What is TREC's role in relation to real estate license holders?
• Can property owners remediate their own mold without a license?
• What is the legal process through which heirs receive property according to a will?
• When must a broker deliver mail and correspondence from TREC to sponsored sales agents?
• When must the Addendum for property located seaward of the gulf intracoastal waterway be used?
• When is the latest time a Broker must deposit money into a trust account after a contract's effective date?
• What is meant by "Time is of the Essence" in real estate contracts?
• Which entity promulgates the contract forms used in Texas real estate transactions?
• How many points are required to qualify for a broker's license through sales?
• What does the protection period depend on?
• When is it permissible to place a "for sale" sign on a property in Texas?
• Under which circumstance can a buyer terminate a contract?
• What is required for a backup offer to become effective?
• What is the purpose of the Addendum for Coastal Area Property?
• What can a non-resident broker earn in Texas?
• What governing body regulates the practices of real estate licensees in Texas?
• Which of the following is NOT a function of an HOA?
• How are exemptions from taxes generally handled?
• What does TALCB regulate?
• Which scenario requires IABS disclosure?
• What is the primary focus of the Addendum for property located seaward of the gulf intracoastal waterway?
• If an application is denied, how many days does the applicant have to appeal the decision?
• What happens to the excess funds if the Recovery Trust Account exceeds $3.5 million?
• In the context of wills, what is a key difference between an administrator and an executor?
• What is the timeframe within which probate must begin after a person's death?
• Which of the following is NOT a foreclosable lien on a Texas homestead?
• If an aggrieved person files a claim on the Recovery Trust Account, what must they demonstrate?
• What does interstate succession refer to?
• What is the redemption period for a homestead foreclosed on for unpaid taxes?
• What is the primary objective of the probate process?
• If a home has not been lived in, under what circumstance may a seller not provide a disclosure?
• Which type of properties do TREC promulgated forms typically cover?
• In which scenario would a broker be considered an intermediary without appointments?
• What power does the Texas Real Estate Commission (TREC) hold regarding real estate licenses?
• Where are TREC hearings typically conducted?
• What documentation is typically required for a TREC licensing applicant?
• If a broker wishes to terminate sponsorship, what must they do?
• What is the primary condition under which a foreign broker may collect a commission from a Texas broker?
• How long does a buyer have to address title concerns with the seller?
• When can a license holder engage in business after changing to a new broker?
• How does a buyer typically deliver the option fee to the seller?
• Who must a license holder disclose that they are representing?
• When should mold be removed from a property?
• How can a licensee demonstrate adherence to advertising regulations?
• When is a seller's disclosure of property not required?
• How many days does the title company have to provide title commitment after they receive a sales contract?
• Who regulates the Do Not Call List?
• Can a broker compensate an out-of-state broker?
• What does the Texas law say about the increase in value of separate property?
• What is required for renewing a license in Texas?
• What must a homeowner do if their homestead faces foreclosure for association dues?
• Is it permissible for a license holder to advertise another broker's listing?
• What legal process is involved in confirming a will?
• How long must a person wait to apply for a new license once their previous license has been revoked?
• How large can a rural homestead be for a family?
• Can a Broker pay commission to another Broker?
• How must the option fee be paid?
• What information must a seller provide in the disclosure?
• Can a person hold both a Broker and Sales Agent License simultaneously in Texas?
• What type of property is considered community property?
• What steps must a licensee take to return to active status after failing to complete CE?
• How many members are there on the Texas Appraiser Licensing and Certification Board (TALCB)?
• What is the main requirement of the Statute of Frauds regarding contracts?
• What is the definition of a "first substantive communication" in real estate?
• What is the maximum payment TREC will make from the Recovery Trust Account per license holder?
• How often do licensed real estate agents in Texas need to renew their license?
• When is Errors and Omissions Insurance required for a real estate agent?
• What can cause a complaint to be prioritized in a TREC investigation?
• Under what conditions can a license holder disclose their representation?
• What is the maximum size for an urban homestead?
• What is a requirement to qualify for a homestead exemption?
• When are landlords required to provide new locks for rental properties?
• How can a license holder reactivate their license in Texas?
• Which forms state that "time is of the essence"?
• What is the maximum fine for conducting real estate business without a license?
• By what time must a broker deposit earnest money into an escrow account after an accepted offer?
• What is required for a broker to represent both buyer and seller?
• Which of the following individuals does NOT require a Texas real estate license?
• How much can Texas veterans borrow to purchase unimproved property through the TVLB program?
• Who among the following is required to have a real estate license?
• How long does a title company have to deliver the title commitment to the buyer?
• When must the seller's disclosure of property condition be given to the buyer?
• What consequence may a licensee face if TREC pays an amount from the Recovery Trust Account?
• What does the HOA and POA addendum allow the buyer to obtain?
• What type of penalty can TREC impose for serious violations?
• Can an unlicensed investor buy and sell their own properties?
• What is one of the major educational requirements for obtaining a broker's license?
• What must landlords do regarding the management of security deposits?
• What is the minimum number of qualifying course hours required for a sales agent educational program?
• What is the consequence if a contingency clause is not met?
• What is required to obtain a real estate license in Texas?
• What is the role of an executor?
• When must a TREC IABS form be provided to consumers?
• Can the option fee and the earnest money deposit be combined into a single payment?
• For a single adult, what is the maximum size of a rural homestead?
• What must be disclosed to the buyer regarding MUD indebtedness?
• In what situation is IABS disclosure unnecessary?
• What is the primary purpose of the seller's disclosure of property condition?
• What defines community property in Texas?
• What is the maximum time frame landlords have to account for tenants' security deposits after they leave?
• What occurs if a license holder fails to respond to a TREC summons?
• What is the nature of homestead protection?
• Which of the following is NOT a factor considered by TREC during an investigation?
• Who is responsible for writing the promulgated contract forms under TREC?
• Which entity oversees the licensing of real estate professionals in Texas?
• What is the consequence if a contract is not in writing according to the Statute of Frauds?
• What is the purpose of the TREC RSC-2 Form?
• Which of the following entities are responsible for providing drainage, water, and sewer services in a MUD?
• After how many days does a licensee become inactive for not submitting the required continuing education?
• What constitutes separate property?
• How many days does the buyer have to deliver the option fee to the seller?
• Do 200 Homestead acres need to be connected for homestead protection?
• What kind of communication is NOT permitted when discussing commissions with unlicensed individuals?
• What must all advertisements by a licensee include?
• What does TREC stand for?
• What is the maximum time TREC has to deny an application after submission?
• What is a common outcome of filing a DTPA complaint?
• In what way must an option fee be paid in a contract?
• What happens to earnest money if a contract is terminated due to unmet contingencies?
• From whom do all license holders receive their commission?
• Where must an assumed name be filed according to TREC regulations?
• Within how many days can the buyer terminate an offer after receiving the seller's disclosure of property condition?
• In the context of real estate, what is an addendum?
• What triggers the start of a landlord's obligation to provide new locks?
• How must offers be presented on a property?
• When must a certification of mold remediation be provided after the work is complete?
• Where must a Consumer Information Notice 1-2 be prominently displayed?
• What is the required down payment for a 30-year loan under the TVLB loan program?
• Who is an administrator in the context of estate settlement?
• What can an appointed associate under an intermediary do regarding advice?
• What defines a non-resident broker within Texas real estate law?
• Can a licensed real estate holder prepare a contract?
• What obligation does a seller have regarding MUD disclosures?
• Which of the following is NOT a requirement for obtaining a real estate license in Texas?
• Which of the following is an acceptable form for a referral gift to an unlicensed individual?
• What is the penalty for not completing continuing education at the time of license renewal?
• Who is responsible for ensuring IABS compliance?
• In Texas, what is the time limit for filing a complaint against a licensee?
• How many years of mold remediation certifications must be given to new property owners?
• How can a sales license holder terminate their association with a sponsoring broker?
• How long after a probate hearing is title transfer considered final?
• What is the maximum value of a referral gift a licensee can give to an unlicensed individual?
• What type of activities can an unlicensed assistant perform in the context of real estate?
• Which of the following is true regarding Attorneys and Real Estate Licenses?
• What must homeowners do to receive a homestead exemption?
• How can a broker obtain more than one place of business?
• What bill requires the disclosure of IABS?
• Which of the following is NOT one of the 5 Canons of Professional Ethics?
• What happens when a property exceeds 200 acres?
• What is the purpose of the IABS form?
• What is required to be posted on a broker's website?