Texas Real Estate Practice Exam
(Free Questions & Answers)
The Texas real estate exam is administered by TREC and stands apart because Texas does not recognize dual agency. Instead, brokers who represent both buyer and seller in one transaction become 'intermediaries,' with strict rules governing what they can and cannot do. The state portion tests TREC-promulgated contract forms exclusively — Texas licensees are required by law to use these forms — and the option period mechanics, mandatory notice requirements, and seller disclosure exemptions unique to Texas.
Administered by: Texas Real Estate Commission (TREC) · 150 questions · Passing score: 70%
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Free Texas Real Estate Practice Exam Questions
Test your knowledge with these Texas real estate practice questions. Each question is based on topics from the Texas Real Estate Commission (TREC) exam and includes detailed explanations.
Q1. Which agency regulates real estate licenses in Texas?
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. In Texas, an 'intermediary' broker is one who:
Explanation
Texas law allows a broker to act as an intermediary—representing both buyer and seller in the same transaction—with the written consent of both parties. This is similar to dual agency in other states.
Q3. The TREC One to Four Family Residential Contract is:
Explanation
TREC promulgates standard contract forms that Texas licensees are required to use for covered transactions. Using unauthorized or outdated forms can be a license law violation. Attorneys (not licensees) may use non-TREC forms.
Q4. Texas is a community property state. This means that property acquired during marriage:
Explanation
Texas is one of nine community property states. Property acquired during marriage is generally owned equally (50/50) by both spouses, regardless of how title is held or which spouse earned the income. This affects real estate transactions significantly.
Q5. In Texas, the homestead exemption for ad valorem tax purposes allows a homeowner to:
Explanation
The Texas homestead exemption reduces the taxable assessed value of a primary residence, thereby reducing the property tax bill. For school district taxes, homeowners receive at least a $100,000 exemption (increased in 2023).
Q6. In Texas, who is authorized to prepare a formal appraisal for mortgage lending purposes?
Explanation
Formal appraisals for mortgage lending must be prepared by a state-licensed or state-certified real estate appraiser under FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act). Real estate agents may prepare CMAs, not formal appraisals.
Q7. A Texas licensee who changes the terms of their services based on a client's national origin is violating:
Explanation
Discriminating based on national origin violates the federal Fair Housing Act. In Texas, the Texas Fair Housing Act provides similar protections. Licensees must treat all clients equally regardless of protected class.
Q8. In Texas, title insurance premiums are:
Explanation
Texas is one of the few states where title insurance rates are set (promulgated) by the Texas Department of Insurance. All title companies must charge the same premium for the same coverage, so price competition focuses on service.
Q9. A Texas property has a market value of $425,000. The assessed value is 100% of market value. The school district tax rate is $1.10 per $100, the city rate is $0.65 per $100, and the county rate is $0.45 per $100. What is the total annual property tax before any exemptions?
Explanation
Combined tax rate = $1.10 + $0.65 + $0.45 = $2.20 per $100. Tax = ($425,000 ÷ $100) × $2.20 = 4,250 × $2.20 = $9,350.
Q10. The Texas Commission on Environmental Quality (TCEQ) is the state agency primarily responsible for:
Explanation
TCEQ is the state environmental agency in Texas responsible for protecting the state's human and natural resources by administering environmental regulations for air quality, water quality, and waste management.
Q11. In Texas, the power of local governments to regulate land use through zoning is derived from the state's:
Explanation
Zoning authority derives from the state's police power — the inherent governmental power to regulate for the public health, safety, and welfare. Texas has delegated this power to municipalities through enabling legislation.
Q12. Under Texas Property Code Chapter 92, a residential landlord must return a security deposit or provide an itemized deduction statement within how many days after the tenant vacates?
Explanation
Under Texas Property Code § 92.103, a landlord must return the security deposit or send a written itemized statement of deductions within 30 days after the tenant surrenders the premises.
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Texas Real Estate Exam — What to Expect
What Is On The Texas Real Estate Exam?
The Texas real estate salesperson exam is administered by the Texas Real Estate Commission (TREC) and tests both national real estate principles and Texas-specific laws and regulations. The exam contains 150 multiple-choice questions, and you must score at least 70% to pass.
The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to Texas — including regulations set by the Texas Real Estate Commission (TREC), Texas agency disclosure requirements, and state-specific contract and closing practices.
Topics covered on the Texas exam include: Property Ownership, Agency Law, Contracts, Finance, Texas License Law, Fair Housing, Real Estate Math. Candidates who struggle on the TX exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but Texas law questions require targeted preparation.
How Many Questions Are On The Texas Exam?
The Texas real estate salesperson exam has 150 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering Texas-specific laws administered by the Texas Real Estate Commission (TREC). You have 4 hours to complete the exam.
Texas Real Estate Exam Passing Score
You need a 70% to pass the Texas real estate exam. The first-time pass rate in Texas is approximately 57%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the TX-specific portion. Our Texas practice exam is built specifically around the Texas Real Estate Commission (TREC) exam outline.
Most Difficult Topics On The Texas Exam
These are the areas where Texas candidates most commonly lose points.
The Texas Real Estate Commission (TREC) has state-specific rules on mandatory disclosures, advertising, and broker-associate relationships that don't exist in other states.
Texas has specific rules around seller's disclosure notices. Candidates often struggle with which disclosures are mandatory and which exemptions apply (estate sales, foreclosures, etc.).
Texas uses TREC-promulgated forms exclusively. Questions frequently test the One to Four Family Residential Contract, financing addenda, and option period mechanics — all Texas-specific.
Texas has a unique intermediary agency system. Understanding when a broker becomes an intermediary, the required notices, and the rules around working with both buyer and seller in one transaction is heavily tested.
Texas Real Estate Math
The Texas real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the TX exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.
How To Get Your Texas Real Estate License
- 1Complete 180 hours of state-approved pre-license education covering topics required by the Texas Real Estate Commission (TREC).
- 2Submit your application to the Texas Real Estate Commission (TREC) and pay the required fees (exam fee: $43).
- 3Pass the Texas real estate salesperson exam (150 questions, 70% to pass).
- 4Complete a background check and fingerprinting as required by Texas law.
- 5Find a licensed sponsoring/employing broker to activate your license.
- 6Complete any required post-licensing education within the timeframe set by the Texas Real Estate Commission (TREC).
Best Study Strategy For The Texas Exam
Start with Texas license law first. State-specific regulations administered by the Texas Real Estate Commission (TREC) make up a significant portion of the TX exam and are not covered in most national study materials.
Master the math early. The Texas real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.
Take timed practice exams. The Texas exam has 150 questions within a 4 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.
Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the TX exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of Texas law.
Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but Texas may have additional protected classes. Know both federal and Texas-specific protections cold — this topic appears on virtually every exam.
Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.
Texas Real Estate Exam — Frequently Asked Questions
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