Browse all practice questions for the Texas Real Estate Commission (TREC) State Practice Exam. Search by topic, open any question and review its full explanation, then test yourself in the practice quiz.

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