Free practice test
Texas Real Estate Law Practice Test
25 questions on the Texas statutes and rules section only: the part of the exam generic national prep covers least. Every question shows its answer and explanation. No sign-up.
Question 1 of 25
An experienced Texas broker now holds an inactive license but wants a regular seat on the Broker Responsibility Advisory Committee. The broker has ten years of prior brokerage practice. What is the qualification problem?
Reveal answer
Correct answer: Prior experience does not substitute for the required active Texas broker license
An active Texas broker license is required in addition to prior experience and current practice. An inactive license fails that condition.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 2 of 25
Four members arrive for a Texas Broker Responsibility Advisory Committee meeting. A fifth appointed member then arrives. What changes under the quorum rule?
Reveal answer
Correct answer: The committee reaches its five-member quorum
The rule requires five members for a quorum. Four is below that threshold; five meets it.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 3 of 25
For Texas's exemption allowing an entity to receive a license holder's brokerage compensation, which entity types are specified?
Reveal answer
Correct answer: A limited liability company or an S corporation
The statute specifies an LLC or an S corporation, together with the other ownership, registration, and activity conditions.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
Question 4 of 25
A Texas brokerage employee manages the sales agents' negotiations and directs their listing work but never personally meets a customer. No exemption applies. What is required?
Reveal answer
Correct answer: A broker or sales agent license, because the employee directs licensed activities
Employees, agents, or associates of a broker must be licensed if they direct or supervise people performing licensed acts.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
Question 5 of 25
An applicant has passed the Texas sales agent exam but has not received the license. A broker offers to supervise the applicant's listing negotiations immediately. What is the result?
Reveal answer
Correct answer: The applicant may not act as a sales agent before receiving the license.
The Act prohibits an applicant from acting as a broker or sales agent until the license evidencing that authority is received.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
Question 6 of 25
A Texas committee is asked to evaluate whether brokers’ supervisory responsibilities should be addressed through revised rules or proposed legislation. Which committee fits that assignment?
Reveal answer
Correct answer: Broker Responsibility Advisory Committee because the subject is broker responsibility
The Broker Responsibility Advisory Committee examines broker responsibility, related rules, and possible legislative changes.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 7 of 25
How many education-member seats are included in Texas’s Education Standards Advisory Committee’s specified membership?
Reveal answer
Correct answer: Four
The twelve-member committee includes four education members, alongside seven license-holder members and one public member.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 8 of 25
What does Texas's inspection chapter say about work a person is authorized to perform under another state or local governmental license or registration?
Reveal answer
Correct answer: The chapter does not prevent the person from performing the authorized act.
Section 1102.002(b) preserves acts authorized by a license or registration issued under another law by the state or a governmental subdivision.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
Question 9 of 25
A property company replaces its directly paid leasing employee with an independent contractor to lease the company's properties. The contractor has no license and claims the same employee exemption. What is the flaw?
Reveal answer
Correct answer: An independent contractor is not an employee for this exemption.
Texas expressly excludes independent contractors from the definition of employee used in this entity exemption.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
Question 10 of 25
Which membership mix describes the Texas Real Estate Commission itself?
Reveal answer
Correct answer: Six brokers and three public members
TREC has nine commissioners: six brokers and three public members. Committee membership patterns are different.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 11 of 25
A Texas property company hires and directly pays an employee to lease property owned by the company. What does the entity-employee rule provide?
Reveal answer
Correct answer: The employee does not need a real estate license for this work for the employer.
Texas exempts an individual employed and directly compensated by an entity to buy, sell, or lease real property for that entity.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
Question 12 of 25
A study note says, “Because Texas’s Broker Responsibility Advisory Committee has nine members, it must have six brokers and three public members.” What is the best correction?
Reveal answer
Correct answer: The committee’s nine members must be active Texas brokers with the required brokerage experience
Equal total membership does not mean equal composition. Broker Responsibility requires nine active brokers with at least five years of prior brokerage practice and active current practice.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 13 of 25
A Texas advisory committee member who is not a commissioner submits actual and necessary travel expenses and asks for a separate payment for time spent serving. Under the Act’s general advisory committee provision, which treatment is correct?
Reveal answer
Correct answer: Expense reimbursement may be permitted, but compensation for service is not
The Act permits actual and necessary expense reimbursement while barring compensation for noncommissioner committee service.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 14 of 25
Which individual can satisfy the core Texas designated-broker requirements for a brokerage entity?
Reveal answer
Correct answer: An active Texas broker in good standing who has managing authority
The designated broker must hold an active Texas broker license in good standing and have managing authority for the entity.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
Question 15 of 25
Texas’s Broker Responsibility Advisory Committee starts with some appointments shorter than four years. A candidate concludes that its regular term is therefore two years. What is the best assessment?
Reveal answer
Correct answer: Incorrect, because initial shorter terms establish staggering while regular terms are four years
The rule separates regular staggered four-year terms from the initial two-, three-, and four-year appointments.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 16 of 25
A Texas broker says, “If TREC may adopt rules, it can change the Real Estate License Act without legislative action.” Which distinction defeats that reasoning?
Reveal answer
Correct answer: Authority to administer the Act through rules is different from authority to amend the statute
Section 1101.151 authorizes rules necessary to administer the Act, not agency amendment of the statute itself.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 17 of 25
A person works from outside Texas and conducts brokerage by email concerning land located entirely in Texas. Does the person's physical absence remove the activity from Texas's licensing rule?
Reveal answer
Correct answer: No; remote brokerage concerning Texas real property is treated as acting within Texas.
The Texas rule treats brokerage conducted from another state by email or other media as acting within Texas when the property is wholly or partly in Texas.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
Question 18 of 25
A Texas licensed brokerage entity's designated broker becomes inactive. The entity still has licensed sales agents and current insurance. What follows?
Reveal answer
Correct answer: The entity cannot act as a broker while it lacks a qualified designated broker.
An inactive broker cannot act as designated broker, and an entity may not act as a broker without a designated broker meeting the Act's requirements.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
Question 19 of 25
A Texas sales agent owns exactly 51% of an LLC registered with TREC. The LLC receives that agent's earned brokerage compensation and performs no other broker acts. Which conclusion is correct?
Reveal answer
Correct answer: The LLC meets the stated ownership threshold for the compensation-receiving exemption.
The exemption requires at least 51% ownership by the license holder, so exactly 51% satisfies that condition.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
Question 20 of 25
Who appoints members of the Texas Real Estate Commission?
Reveal answer
Correct answer: The governor, with the advice and consent of the Texas Senate
Commissioners are appointed by the governor with the advice and consent of the Texas Senate.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 21 of 25
A broker argues that TREC should act as the broker’s professional advocate because brokers occupy commission seats. Which response best distinguishes TREC’s role?
Reveal answer
Correct answer: TREC administers the statutory regulatory framework, including conduct and ethics standards
TREC is the regulator administering the Act; professional membership does not replace its statutory role with private advocacy.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 22 of 25
A new Texas commissioner has not completed required training. The chair proposes allowing the member to discuss pending rules but not vote. Is that proposal consistent with the Act?
Reveal answer
Correct answer: No, because the training restriction also prohibits deliberation
The Act separately prohibits deliberation before completion of training, so a no-vote arrangement is insufficient.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 23 of 25
A roster for Texas’s Education Standards Advisory Committee lists seven practicing license holders and four education members. Which seat is needed to complete the specified twelve-member composition?
Reveal answer
Correct answer: One public member
The specified composition is seven license holders, four education members, and one public member.
From the free practice set TREC's composition, duties, and powers, and its advisory committees
Question 24 of 25
An identified Texas clerical employee has been confirming advertised property information. The broker adds responsibility for directing sales agents' negotiations. What changes under the licensing rules?
Reveal answer
Correct answer: Directing licensed activities creates a licensing requirement that clerical confirmation did not.
Limited identified clerical confirmation is exempt, but a broker's employee who directs people performing licensed acts must be licensed.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
Question 25 of 25
A Texas sales agent's sponsoring broker authorizes an ordinary-course written price estimate for management of a property interest. The analysis is not called an appraisal. Which statement is correct about the purpose of this analysis?
Reveal answer
Correct answer: Management is among the purposes covered by the broker price-analysis exception.
The exception expressly includes a written price analysis related to actual or potential management of an interest in real property.
From the free practice set Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers
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How this test is built
Questions are drawn from the 386 free practice questions for Texas, one free practice set per exam module. Each module gets questions in proportion to its share of the state law section. The test only changes when the course content is updated.
| Module | Share of exam | Questions here |
|---|---|---|
| 9. Texas Real Estate Commission duties and powers Free practice: TREC's composition, duties, and powers, and its advisory committees | 3% | 13 |
| 10. Texas licensing Free practice: Texas activities requiring a license, exemptions, business entities, inspectors, and appraisers | 3% | 12 |