Practice Questions · Both Portions
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Practice Questions
20 exam-style questions with answers and explanations — pulled from the same bank TexPrep RE uses, covering both the national and Texas state portions. No email, no signup.
Texas TREC Sales Agent Exam · Updated July 2026
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Commit to an answer before you peek. The value isn't in reading questions — it's in the moment you have to choose. Pick your letter, then open the explanation. If you guessed right for the wrong reason, that counts as a miss.
These 20 questions mirror the real exam's style: scenario-based, four options, one defensibly correct answer. They span both portions you'll face on test day — national fundamentals and the Texas-specific law that TREC writes its own questions about.
Question 1 · License Law & TREC
TREC stands for:
- A. Texas Real Estate Council
- B. Texas Realty Examination Committee
- C. Texas Real Estate Commission
- D. Texas Regulatory and Ethics Commission
Show answer & explanation
Answer: C
TREC is the Texas Real Estate Commission — the state agency that licenses and regulates real estate professionals and enforces TRELA.
Question 2 · License Law & TREC
To qualify for a Texas real estate salesperson license, an applicant must complete how many hours of qualifying education?
- A. 180 hours
- B. 90 hours
- C. 270 hours
- D. 60 hours
Show answer & explanation
Answer: A
Texas requires 180 hours of qualifying education — six 30-hour courses — before an applicant can sit for the salesperson exam.
Question 3 · License Law & TREC
Which of the following is NOT one of the six required qualifying courses for a Texas salesperson license?
- A. Law of Contracts
- B. Principles of Real Estate
- C. Real Estate Finance
- D. Property Management
Show answer & explanation
Answer: D
Property Management isn't one of the six. The required courses are Principles I & II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance.
Question 4 · Agency & Brokerage
In Texas, the correct legal term for what's commonly called "dual agency" is:
- A. Facilitation
- B. Intermediary
- C. Co-representation
- D. Dual agency — Texas uses the same term as other states
Show answer & explanation
Answer: B
Texas law doesn't use "dual agency." When one broker represents both parties, it's called an intermediary relationship, with its own consent and conduct rules.
Question 5 · Agency & Brokerage
Under TREC rules, a broker must keep trust account records for at least:
- A. 4 years
- B. 1 year
- C. 10 years
- D. 7 years
Show answer & explanation
Answer: A
TREC requires brokers to retain trust account records for at least 4 years, and the account is subject to audit during that period.
Question 6 · Agency & Brokerage
A Texas broker who deposits client funds into their own personal bank account has committed:
- A. A minor bookkeeping error
- B. Tax fraud
- C. No violation, as long as the funds are returned before closing
- D. Commingling
Show answer & explanation
Answer: D
Mixing client funds with personal or brokerage funds is commingling — one of the most serious trust account violations, and grounds for suspension or revocation.
Question 7 · Contracts & Forms
Which of the following is NOT a required element of a valid real estate contract in Texas?
- A. Offer and acceptance
- B. Notarization of the parties' signatures
- C. Consideration
- D. Legal capacity of all parties
Show answer & explanation
Answer: B
Notarization isn't required for a purchase contract to be enforceable in Texas (though it is required to record a deed). The required elements are offer and acceptance, consideration, legal capacity, and a lawful purpose.
Question 8 · Contracts & Forms
Under a Texas residential contract, legal title passes from seller to buyer at closing via the:
- A. Sales contract itself
- B. Title commitment
- C. Warranty deed
- D. Closing Disclosure
Show answer & explanation
Answer: C
The warranty deed, executed and delivered at closing, is the instrument that actually conveys legal title. The contract just obligates the parties to get there.
Question 9 · Contracts & Forms
The Lead-Based Paint Addendum must be attached when a Texas residential property was built:
- A. Before 1978
- B. Before 1970, in a designated zone
- C. After 1990
- D. After 2000
Show answer & explanation
Answer: A
Federal law requires the lead-based paint disclosure for housing built before 1978 — the year the U.S. banned consumer lead paint.
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Question 10 · Real Estate Practice
Once a buyer requests an HOA resale certificate in Texas, the association must provide it within:
- A. 3 business days
- B. 7 business days
- C. 14 days
- D. 10 business days
Show answer & explanation
Answer: D
Texas Property Code gives the HOA 10 business days to deliver the resale certificate after a request.
Question 11 · Real Estate Practice
The 1988 amendments to the federal Fair Housing Act added which two protected classes?
- A. Sex and national origin
- B. Familial status and disability
- C. Religion and color
- D. Age and sexual orientation
Show answer & explanation
Answer: B
The original 1968 Act covered race, color, religion, national origin, and sex. The 1988 amendments added familial status and disability.
Question 12 · Property Ownership
An "encumbrance" on real property is best defined as:
- A. Any physical defect that must be disclosed to buyers
- B. Any government zoning ordinance
- C. Any claim, lien, or restriction attached to the property that doesn't prevent its transfer
- D. Any improvement that lowers market value
Show answer & explanation
Answer: C
Encumbrances — liens, easements, deed restrictions — can affect value or use, but title can still transfer with them attached, subject to disclosure.
Question 13 · Property Ownership
A "fixture" is best defined as:
- A. Any appliance connected to plumbing or electrical
- B. Any item the seller personally installed
- C. Any item listed on the tax assessment as an improvement
- D. Personal property permanently attached to real property, now considered part of it
Show answer & explanation
Answer: D
A fixture starts as personal property, then becomes real property once permanently attached — think built-in cabinets or an in-ground pool. It transfers with the home unless excluded.
Question 14 · Property Ownership
In an easement appurtenant, the dominant estate is:
- A. The parcel that benefits from the easement
- B. The parcel burdened by the easement
- C. The government entity that created the easement
- D. Whichever parcel was platted first
Show answer & explanation
Answer: A
The dominant estate holds the right to use the servient (burdened) estate. Classic example: a landlocked parcel with an easement across the neighboring lot to reach the road.
Question 15 · Finance & Loans
A promissory note in a real estate transaction is best described as:
- A. The document that secures the property as collateral
- B. The lender's commitment to fund the loan
- C. The buyer's personal promise to repay the loan
- D. The instrument that conveys legal title to a trustee
Show answer & explanation
Answer: C
The note is the borrower's personal, unconditional promise to repay — separate from the deed of trust, which is the security instrument.
Question 16 · Finance & Loans
A loan is described as "assumable" when:
- A. The lender absorbs the risk of a future value decline
- B. A qualified buyer can take over the seller's existing mortgage, with lender approval
- C. The borrower personally guarantees the entire property value
- D. The loan automatically transfers to heirs without their consent
Show answer & explanation
Answer: B
An assumable loan lets a qualified buyer step into the seller's existing mortgage — same rate, same remaining balance — with the lender's sign-off.
Question 17 · Appraisal & Value
The four phases of a neighborhood's life cycle, in order, are:
- A. Stability, Growth, Revitalization, Decline
- B. Decline, Growth, Stability, Revitalization
- C. Revitalization, Growth, Stability, Decline
- D. Growth, Stability, Decline, Revitalization
Show answer & explanation
Answer: D
Neighborhoods move through growth (new development), stability (equilibrium), decline (aging, disinvestment), and revitalization (renewal) — though a neighborhood can skip revitalization entirely.
Question 18 · Appraisal & Value
The complete cost approach formula for estimating value is:
- A. (Replacement Cost New − Accrued Depreciation) + Land Value
- B. Replacement Cost New − Land Value − Accrued Depreciation
- C. Land Value × (Replacement Cost New + Accrued Depreciation)
- D. Replacement Cost New × (1 − Depreciation Rate) − Land Value
Show answer & explanation
Answer: A
Estimate what the improvements would cost new, subtract accrued depreciation, then add the land value back in.
Question 19 · Disclosures & Environment
A "material fact" in real estate is best defined as:
- A. Only defects visible during a walkthrough inspection
- B. Whatever the seller personally considers important
- C. A fact that would likely affect a reasonable buyer's decision to purchase or the price offered
- D. Only facts a specific state statute requires disclosed
Show answer & explanation
Answer: C
Materiality is judged by whether a reasonable buyer would care — not by the seller's opinion or a narrow statutory checklist.
Question 20 · Disclosures & Environment
Which property is exempt from Title X federal lead-based paint disclosure requirements?
- A. A pre-1978 duplex where the owner lives in one unit
- B. A studio (0-bedroom) apartment in a pre-1978 building
- C. A 3-bedroom home built in 1965
- D. A 1975 home the seller never tested for lead
Show answer & explanation
Answer: B
Title X specifically exempts 0-bedroom units — efficiency studios, lofts — from lead-paint disclosure requirements, regardless of when the building was constructed.
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