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Texas Texas License Law
Practice Questions & Answers (2026)

Texas license law questions make up a substantial portion of the TX state exam and cover rules that are specific to Texas — national study materials often miss these details entirely. The Texas Real Estate Commission (TREC) tests its own licensing requirements, broker supervision standards, trust account rules, continuing education mandates, and advertising regulations. Candidates who pass the national portion comfortably often struggle on the state portion specifically because of these Texas-specific provisions. Every question in this section tests something the Texas Real Estate Commission (TREC) enforces directly, so study each answer explanation carefully for the specific TX rule being tested.

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Texas Texas License Law — Practice Questions & Answers

151 questions on Texas License Law from the Texas real estate question bank. First 10 are free — sign up to unlock all 151.

Q1. Which agency regulates real estate licenses in Texas?

A.Texas Department of Licensing and Regulation
B.Texas Real Estate Commission (TREC)
C.Texas Department of Savings and Mortgage Lending
D.Texas Office of Consumer Credit Commissioner

Explanation

The Texas Real Estate Commission (TREC) is the state agency responsible for licensing and regulating real estate sales agents and brokers in Texas.

Q2. How many hours of pre-license education are required to obtain a Texas real estate sales agent license?

A.90 hours
B.120 hours
C.150 hours
D.180 hours

Explanation

Texas requires 180 hours of qualifying pre-license education before a candidate may apply for a sales agent license. This is among the highest requirements in the nation.

Q3. The Texas real estate sales agent licensing exam consists of how many questions?

A.100 questions
B.110 questions
C.125 questions
D.150 questions

Explanation

The Texas real estate sales agent exam consists of 125 questions (85 national + 40 state-specific). Candidates must pass both sections.

Q4. What is the minimum passing score on the Texas real estate sales agent exam?

A.65%
B.70%
C.75%
D.80%

Explanation

Texas requires a minimum score of 70% on both the national and state portions of the real estate sales agent exam.

Q5. In Texas, a real estate sales agent license must be sponsored by:

A.Any licensed real estate professional
B.An active licensed Texas real estate broker
C.The Texas Real Estate Commission directly
D.A licensed broker in any state

Explanation

A Texas real estate sales agent must be sponsored by and associated with an active licensed Texas real estate broker. Sales agents cannot perform real estate activities independently.

Q6. Which form must Texas licensees provide to unrepresented consumers at the first substantive dialogue?

A.Seller's Disclosure Notice
B.Information About Brokerage Services (IABS) form
C.Buyer Representation Agreement
D.One to Four Family Residential Contract

Explanation

Texas law requires licensees to provide the Information About Brokerage Services (IABS) form to consumers at the first substantive dialogue to inform them about the different types of broker-consumer relationships available.

Q7. Texas real estate licenses are renewed every:

A.1 year
B.2 years
C.3 years
D.4 years

Explanation

Texas real estate sales agent and broker licenses are renewed every 2 years. Licensees must complete required continuing education before the renewal deadline.

Q8. How many hours of continuing education are required for Texas sales agent license renewal?

A.8 hours
B.18 hours
C.30 hours
D.36 hours

Explanation

Texas requires 18 hours of continuing education for the first renewal, including specific mandatory courses. Subsequent renewals also require 18 hours including mandatory Legal Update I and Legal Update II courses.

Q9. The TREC Real Estate Recovery Fund was established to:

A.Pay agent commissions when a broker becomes insolvent
B.Compensate consumers who suffer monetary damages from licensed agents
C.Fund TREC's ongoing regulatory operations
D.Provide loans to first-time homebuyers

Explanation

The TREC Real Estate Recovery Fund compensates consumers who have obtained a final civil judgment against a licensed agent or broker for fraud or misrepresentation and are unable to collect from the licensee.

Q10. In Texas, the Seller's Disclosure Notice is required to be provided by the seller in all of the following transactions EXCEPT:

A.A standard sale of a single-family home
B.A residential property being transferred as part of a foreclosure
C.A home being sold by a first-time seller
D.An owner-financed transaction

Explanation

Certain transactions are exempt from the Texas Seller's Disclosure Notice requirement, including foreclosure sales, executor or administrator sales, court-ordered sales, and certain estate transfers. Standard residential sales require the disclosure.

Q11. Under TREC rules, a Texas license holder who engages in a real estate transaction involving their own property must:

A.Obtain a special TREC exemption before proceeding
B.Disclose their licensed status to all parties
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