Free Texas Broker Real Estate Examination — State Law Portion Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Texas Broker Real Estate Examination — State Law Portion practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1For what use may the Texas Real Estate Commission's official seal be used?

   1. A. Official agency business only
   2. B. Any active broker's advertising
   3. C. Any approved provider's certificates
   4. D. Any REALTOR association publication

   Answer: A

   Explanation: TREC Rule §535.44 says, “The seal may be used only by the Commission in connection with official agency business.”

   Reference: TREC Rules | TREC — 22 TAC §535.44

2. 2After TREC sends notice denying a license application, by when must the applicant request a hearing in writing to prevent the denial from becoming final?

   1. A. 10 days
   2. B. 20 days
   3. C. 30 days
   4. D. 60 days

   Answer: C

   Explanation: TREC Rule §533.3 makes the denial final unless a written hearing request is made “not later than the 30th day.”

   Reference: TREC Rules | TREC — 22 TAC §533.3(a)

3. 3Under the Texas canon of fidelity, what is a license holder's primary duty while acting as an agent?

   1. A. Represent the client's interests
   2. B. Maximize the other party's proceeds
   3. C. Protect the title company's interests
   4. D. Advance the inspector's interests

   Answer: A

   Explanation: Rule §531.2 says “the primary duty of the license holder is to represent the interests of the client.”

   Reference: TREC Rules | TREC — 22 TAC §531.2

4. 4At what point must a Texas license holder provide the statutory written brokerage-services information to a party?

   1. A. At the first substantive communication about specific real property
   2. B. Only after an offer is signed
   3. C. Only at closing
   4. D. When the title commitment issues

   Answer: A

   Explanation: Texas Occupations Code §1101.558 requires notice at the “first substantive communication with a party” about specific real property.

   Reference: Texas Constitution and Statutes — Tex. Occ. Code §1101.558

5. 5Which form must a Texas license holder use when negotiating the sale of a single-family resale property, unless a rule exception applies?

   1. A. One to Four Family Residential Contract (Resale)
   2. B. New Home Contract (Incomplete Construction)
   3. C. Farm and Ranch Contract
   4. D. Residential Condominium Contract (Resale)

   Answer: A

   Explanation: TREC Rule §537.20 adopts “One to Four Family Residential Contract (Resale)” for mandatory use in that transaction type.

   Reference: TREC Rules | TREC — 22 TAC §537.28

6. 6Property possessed by either spouse during marriage is presumed to be what under Texas law?

   1. A. Community property
   2. B. Separate property
   3. C. Public property
   4. D. Trust property

   Answer: A

   Explanation: Texas Family Code §3.003 states that property possessed during marriage or dissolution “is presumed to be community property.”

   Reference: Texas Constitution and Statutes — Tex. Fam. Code §3.003

7. 7Which body is authorized to adopt rules necessary to administer Texas Occupations Code Chapter 1101?

   1. A. Texas Real Estate Commission
   2. B. Texas Appraiser Licensing and Certification Board
   3. C. Texas Department of Banking
   4. D. Texas Veterans Land Board

   Answer: A

   Explanation: Texas Occupations Code §1101.151 says the Commission may “adopt and enforce rules necessary to administer this chapter,” so TREC is the authorized body.

   Reference: Texas Constitution and Statutes — Tex. Occ. Code §1101.151

8. 8A person controls rent received for a Texas single-family rental and may decide where it is deposited. What does TREC Rule §535.4 require?

   1. A. A real estate license
   2. B. A residential appraiser license
   3. C. A property-tax consultant license
   4. D. A title-insurance license

   Answer: A

   Explanation: Rule §535.4(h) says a person controlling rent who may determine where to deposit it “must be licensed under the Act.”

   Reference: TREC Rules | TREC — 22 TAC §535.4(h)

9. 9Which Texas rule-based duty governs a license holder's treatment of transaction parties other than the client?

   1. A. Treat those parties fairly
   2. B. Place those parties' interests above the client's interests
   3. C. Make those parties the license holder's principals
   4. D. Disclose the client's confidential information to those parties

   Answer: A

   Explanation: Rule §531.2 requires that the license holder “shall treat other parties to a transaction fairly.”

   Reference: TREC Rules | TREC — 22 TAC §531.2

10. 10Which communication is exempt from the written brokerage-services notice requirement?

    1. A. A communication at an open house concerning that property
    2. B. A private negotiation of price with a prospective buyer
    3. C. A substantive discussion of a listed property's condition
    4. D. A meeting to prepare a specific offer

    Answer: A

    Explanation: Texas Occupations Code §1101.558(c)(3) exempts communication at property “held open for any prospective buyer or tenant” when it concerns that property.

    Reference: Texas Constitution and Statutes — Tex. Occ. Code §1101.558(c)