Texas Real Estate Exam Practice Questions (2025)

The Texas real estate sales agent exam has 150 questions: 85 national and 65 state-specific. You need 70% to pass (105/150). Here are representative practice questions from both sections.

National Section Questions

Q1: A property has a net operating income of $48,000 and a cap rate of 6%. What is the property's value? - Formula: Value = NOI ÷ Cap Rate - $48,000 ÷ 0.06 = $800,000

Q2: Which type of agency relationship is created when a principal accepts the benefits of an agent's unauthorized actions? A) Express agency B) Implied agency C) Ratification D) Ostensible agency

Answer: C — Ratification occurs when a principal accepts the benefits of an agent's previously unauthorized act, thereby approving it after the fact.

Q3: A property manager collects $12,000 in rent and pays $3,000 in expenses. She earns 8% of gross rents as her management fee. What does the property owner receive? - Management fee: $12,000 × 0.08 = $960 - Owner receives: $12,000 - $3,000 - $960 = $8,040

Texas-Specific Section Questions

Q4: Who regulates real estate license holders in Texas? A) Texas Association of Realtors B) Texas Real Estate Commission (TREC) C) Texas Department of Licensing and Regulation D) Texas Secretary of State

Answer: B — TREC (Texas Real Estate Commission) regulates real estate brokers and sales agents in Texas.

Q5: Texas real estate license law is found in: A) Texas Property Code B) Texas Occupations Code Chapter 1101 C) Texas Business and Commerce Code D) Texas Administrative Code Title 22

Answer: B — The Texas Real Estate License Act (TRELA) is codified in Texas Occupations Code Chapter 1101. The implementing rules are in Texas Administrative Code Title 22.

Q6: A Texas sales agent receives an earnest money check. What must happen next? A) The sales agent deposits it in their personal account B) The sales agent delivers it to the sponsoring broker by the close of business C) The sales agent delivers it to the title company directly D) The earnest money is held until the option period expires

Answer: B — The sales agent must deliver the earnest money to the sponsoring broker promptly.

Q7: In Texas, what is the standard option period in a residential purchase contract? A) 3 days — mandated by TREC B) 7 days — mandated by TREC C) Negotiable — any length agreed to by buyer and seller D) 10 days — mandated by Texas Property Code

Answer: C — The option period in Texas is negotiable. The TREC One to Four Family Residential Contract includes a provision for an option period and option fee, but the length and fee amount are agreed to by the parties.

Q8: Under Texas agency law, what is an intermediary? A) A broker who represents neither party B) A broker who represents both buyer and seller in the same transaction with written consent C) A transaction coordinator who handles paperwork only D) A dual agent who owes fiduciary duties to both parties

Answer: B — Texas uses the term "intermediary" instead of "dual agent." An intermediary broker represents both parties with written consent and must appoint different associated agents to represent each party.

Q9: The Texas DTPA (Deceptive Trade Practices Act) allows a buyer to sue for: A) Misrepresentation only B) Three times actual damages for knowing violations C) Up to $5,000 regardless of damages D) Emotional distress only

Answer: B — Texas DTPA allows recovery of actual damages, and up to three times actual damages for knowing violations. This law is heavily tested in the Texas exam.

Q10: A Texas license holder represents a seller. A buyer asks if the roof leaks. The license holder knows it does but says nothing. This is: A) Acceptable — no duty to volunteer negative information to buyers B) A violation — license holders must disclose known material defects even when representing the seller C) Acceptable under intermediary rules D) Only a violation if the buyer asks directly in writing

Answer: B — Texas license holders must disclose known material defects affecting the value of the property, regardless of whom they represent. This duty cannot be waived.

Key Texas Topics to Know

• TREC vs. TAR forms: TREC promulgates mandatory forms; TAR creates optional forms that supplement TREC forms
• Intermediary: Texas's version of dual agency — requires written consent and appointed agents
• Option period: Negotiable; buyer pays option fee for unrestricted right to terminate
• DTPA: Deceptive Trade Practices Act — 3x damages for knowing violations
• Earnest money: Must go to broker promptly; typically held in title company escrow in Texas

[Practice Texas questions at CARealestate.com/states/texas](https://carealestate.com/states/texas)