Free Texas Real Estate Exam Practice Questions (2026 Study Guide)
Prepare for your licensing test with 50 real-world scenario questions covering TREC rules, financing calculations, agency ethics, and promulgated contracts. Access the official test appointment system at the Pearson VUE Texas Real Estate Portal.
Finding accurate texas real estate exam practice questions free of charge is the most practical way to test your applied knowledge before booking an appointment. While general textbook definitions are helpful, the Pearson VUE exam relies on complex situational scenarios designed to evaluate problem-solving under pressure.
Before reviewing the practice module below, make sure to verify your specific exam domain weights. You can access the official scheduling portal to check updated state-wise passing scores and requirements.
Texas Real Estate Math & Mandatory Deadlines Cheat Sheet
A condensed reference guide for acreage conversions, proration formulas, earnest money deadlines, and TREC disciplinary limits.
43,560 sq. ft.
4 people driving 35 mph on Rte 60Close of 2nd Day
Working days after contract execution10 Acres (Urban)
Contiguous land for single or family$125k / $250k
Per occurrence / per licensee lifetimePearson VUE Exam Domain Weight Breakdown
National Section (85 Items)
Passing Score: 56 correct (70%)
Time Limit: 150 Minutes
Core Areas: Contracts, Financing, Land Use, Valuation, Agency, and Disclosures.
Texas State Section (40 Items)
Passing Score: 21 correct (70%)
Time Limit: 90 Minutes
Core Areas: Commission Duties, Licensing Standards, TRELA, Promulgated Contracts, and Texas Statues.
Part 1: National Real Estate Concepts (Questions 1–25)
Covers valuation math, general contract rules, and agency relationships across jurisdictions.
A) 8.0%
B) 9.0%
C) 9.5%
D) 10.2%
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Effective Gross Income = $150,000 – $7,500 (5% vacancy) = $142,500. Net Operating Income (NOI) = $142,500 – $34,500 = $108,000. Cap Rate = NOI / Value = $108,000 / $1,200,000 = 0.09 or 9.0%.
A) $48,000
B) $58,000
C) $62,000
D) $78,000
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Base annual rent = $4,000 * 12 = $48,000. Excess sales = $750,000 – $500,000 = $250,000. Percentage rent = $250,000 * 0.04 = $10,000. Total rent = $48,000 + $10,000 = $58,000.
A) Joint tenancy with right of survivorship
B) Tenancy in severalty
C) Tenancy in common
D) Tenancy by the entirety
Click to Reveal Correct Answer & Explanation
Correct Answer: C
Explanation: Tenancy in common allows unequal fractional shares and contains no survivorship rights, meaning an owner’s share passes to heirs upon death.
A) Physical deterioration
B) Functional obsolescence
C) External obsolescence
D) Economic depreciation
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Functional obsolescence results from internal design flaws, poor layouts, or outdated physical features within the structure itself.
A) $4,500
B) $5,400
C) $6,750
D) $7,200
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Loan amount = $450,000 * 0.80 = $360,000. Points are calculated on loan amount, not sales price: $360,000 * 0.015 = $5,400.
A) 10 acres
B) 20 acres
C) 40 acres
D) 80 acres
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: A standard section contains 640 acres. 640 / 4 (SW 1/4) = 160 acres; 160 / 4 (NE 1/4) = 40 acres; 40 / 2 (N 1/2) = 20 acres.
A) Easement appurtenant
B) Encroachment
C) Voluntary license
D) Restrictive deed covenant
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: An encroachment is an unauthorized physical invasion of a structure or fixture across a property boundary onto adjacent land.
A) “Convenient financing available”
B) “Only $1,250 per month mortgage payment”
C) “Low down payment terms”
D) “VA and FHA accepted”
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Stating a specific monthly payment amount is a trigger term under TILA, requiring disclosure of down payment, term length, and annual percentage rate (APR).
A) Special warranty deed
B) General warranty deed
C) Quitclaim deed
D) Bargain and sale deed
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: A general warranty deed provides the highest title protection by warranting against title defects occurring during and prior to the grantor’s ownership.
A) Redlining
B) Blockbusting
C) Steering
D) Subordination
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Blockbusting (panic peddling) is the illegal practice of encouraging people to sell their homes by claiming that minorities are entering the area.
A) Subordination clause
B) Acceleration clause
C) Defeasance clause
D) Alienation clause
Click to Reveal Correct Answer & Explanation
Correct Answer: A
Explanation: A subordination clause changes lien priority, allowing a junior lender (such as a construction lender) to hold superior claim over an earlier recorded lien.
A) $81,000
B) $97,200
C) $105,400
D) $112,000
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Total area = 120 ft * 180 ft = 21,600 sq. ft. Total valuation = 21,600 * $4.50 = $97,200.
A) Subrogation
B) Novation
C) Assignment
D) Foreclosure
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Novation replaces an original agreement or debtor with a new contract, completely releasing the original party from liability.
A) Trustor (Borrower)
B) Beneficiary (Lender)
C) Trustee (Neutral third party)
D) Closing attorney
Click to Reveal Correct Answer & Explanation
Correct Answer: C
Explanation: The borrower (trustor) gives bare legal title to a neutral trustee to secure loan repayment for the lender (beneficiary).
A) Escheat
B) Probate
C) Eminent domain
D) Foreclosure
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Probate is the judicial process that verifies a decedent’s will, satisfies remaining debts, and distributes property to designated beneficiaries.
A) Add $15,000 to the subject property
B) Deduct $15,000 from the comparable property sale price
C) Add $15,000 to the comparable property sale price
D) Make no dollar adjustment
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Under the sales comparison approach: Comp Better, Subtract (CBS). Always adjust the comparable, never the subject.
A) CERCLA (Superfund)
B) Clean Water Act
C) Clean Air Act
D) OSHA Guidelines
Click to Reveal Correct Answer & Explanation
Correct Answer: A
Explanation: CERCLA (Superfund) imposes strict, joint, and retroactive liability on property owners for toxic waste remediation on their property.
A) General liens attach only to real property.
B) General liens attach to all real and personal property of the debtor.
C) General liens take priority over property taxes.
D) Specific liens expire within 30 days.
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: A general lien (like federal income tax liens or money judgments) attaches to all property owned by the debtor, unlike specific liens that target single parcels.
A) Express agency
B) Ostensible (implied) agency
C) Universal agency
D) Designated agency
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Ostensible or implied agency is formed through actions and impressions that lead an outsider to reasonably rely on agency representation.
A) $1,992.00
B) $2,004.00
C) $2,185.00
D) $2,376.00
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Daily tax rate = $4,380 / 365 = $12.00 per day. Days owned by seller: Jan (31) + Feb (28) + Mar (31) + Apr (30) + May (31) + June (16) = 167 days. Proration: 167 * $12.00 = $2,004.00.
A) Principle of Anticipation
B) Principle of Substitution
C) Principle of Contribution
D) Principle of Conformity
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: The Principle of Substitution forms the basis of all appraisal approaches, holding that market value is set by the cost of comparable alternatives.
A) Forgives past tenant defaults
B) Verifies exact lease terms and balances to prevent future conflicting claims
C) Evicts holdover tenants
D) Replaces the deed of trust
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: An estoppel certificate confirms existing lease terms, rents, and deposits to legally protect new buyers from surprise claims.
A) Reversionary interest
B) Remainder interest
C) Pur autre vie estate
D) Leasehold interest
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: When a life estate passes title to a designated third party rather than returning to the grantor, that designated third party holds a remainder interest.
A) Loyalty
B) Confidentiality
C) Disclosure
D) Obedience
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Confidentiality is the single fiduciary obligation that survives termination of representation indefinitely unless the principal consents to disclosure.
A) Retain all escrow account reserves
B) Accelerate the loan debt and demand full immediate payoff
C) Sue for liquidated damages
D) Alter the title insurance policy
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: An alienation clause allows a mortgage lender to demand the entire remaining loan balance if the borrower transfers title without prior approval.
Part 2: Texas-Specific Licensing & TREC Law (Questions 26–50)
Strictly covers the Texas Real Estate License Act (TRELA), TREC Commission rules, and state contracts.
A) Hand the visitor the Information About Brokerage Services (IABS) notice immediately
B) Report the confidential details to her seller without notice
C) Nothing, because open house attendees are exempt
D) Demand that the buyer sign an exclusive representation agreement
Click to Reveal Correct Answer & Explanation
Correct Answer: A
Explanation: The open house exemption ends when substantive discussion occurs regarding motivation, financing, or representation. The IABS must be provided immediately.
A) Appointing agents to give advice to each party
B) Disclosing that the seller will accept less than asking price without written permission
C) Collecting commissions from both parties at closing
D) Using promulgated contract forms
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Under TRELA Section 1101.561, an Intermediary can never disclose confidential pricing thresholds unless specifically authorized in writing by that party.
A) No, electronics are personal chattel.
B) Yes, attached mounts and built-in fixtures convey as real property unless excluded in writing.
C) No, as long as drywall holes are patched.
D) Only if the items cost over $500.
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Paragraph 2B of the TREC One to Four Family contract defines built-in items and mounting brackets as improvements that convey unless excluded in Paragraph 2D.
A) The broker’s name must be at least half the size of the largest contact details on the advertisement.
B) The broker’s license number must be in every photo caption.
C) Sponsoring brokers do not need to be named if the agent’s license is listed.
D) Social media ads are exempt from TREC advertising laws.
Click to Reveal Correct Answer & Explanation
Correct Answer: A
Explanation: TREC advertising regulations demand that the broker’s business name or DBA appear clearly and conspicuously, sized at least 50% of the largest contact information.
A) Friday by 5:00 PM
B) Monday by close of business (the second working day)
C) Saturday at midnight
D) Within 7 calendar days
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: TREC rules require brokers to deposit trust monies by the close of business on the second working day after the contract’s effective date.
A) Disclose it immediately to all buyers.
B) Never disclose or inquire about HIV/AIDS status under federal and state protected-class statutes.
C) Disclose it only if asked directly in writing.
D) Notify the municipal public health office.
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Both federal fair housing laws and Texas Property Code protect agents and sellers from liability for not disclosing deaths related to HIV/AIDS, which is a protected disability.
A) The seller keeps both the earnest money and the option fee.
B) Earnest money is refunded in full to the buyer; the seller retains the $300 option fee.
C) Both deposits are refunded in full to the buyer.
D) Both deposits are split equally.
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Terminating within the contractual option period entitles the buyer to a complete refund of earnest money, while the seller keeps the agreed option fee.
A) 6 brokers and 3 public members appointed by the Governor
B) 9 licensed broker members elected by licensees
C) 5 attorneys and 4 brokers appointed by the state Supreme Court
D) 6 public members and 3 brokers appointed by the Attorney General
Click to Reveal Correct Answer & Explanation
Correct Answer: A
Explanation: TREC consists of 9 members appointed by the Governor of Texas: 6 licensed brokers with at least 5 years experience and 3 public citizens.
A) $50,000
B) $125,000
C) $250,000
D) $500,000
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: The maximum statutory payout from the Recovery Trust Account is $125,000 for a single claim and $250,000 total against any one licensed real estate agent.
A) 10 contiguous acres
B) 50 acres
C) 100 acres
D) 200 acres
Click to Reveal Correct Answer & Explanation
Correct Answer: A
Explanation: An urban homestead in Texas cannot exceed 10 contiguous acres for a single person or a family. Rural limits are 100 acres for singles and 200 for families.
A) 18 clock hours
B) 90 hours qualifying SAE plus 8 hours TREC Legal Update
C) 180 hours
D) 270 hours
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Texas first-time renewing sales agents must complete 90 hours of SAE along with 8 hours of Legal Update I & II, totaling 270 qualifying post-license hours.
A) Yes, if approved verbally by both parties
B) No, an agent can only receive real estate compensation from their sponsoring broker
C) Yes, if documented on the Closing Disclosure
D) Only if the transaction value is under $100,000
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Under TRELA, sales agents cannot accept real estate commissions from anyone other than the broker who sponsors their license.
A) The buyer reimburses the seller at closing
B) The seller agrees to reimburse the buyer at closing up to a negotiated maximum dollar amount
C) The broker pays the annual warranty fee
D) The title company pays for the home warranty
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Paragraph 7H allows the buyer to choose a home warranty, with the seller reimbursing them at closing up to a stated dollar figure.
A) Super-priority over all other recorded private liens and mortgages
B) Subordinate priority to first purchase mortgages
C) Equal standing with recorded mechanic’s liens
D) Junior priority to HOA assessments
Click to Reveal Correct Answer & Explanation
Correct Answer: A
Explanation: Property tax liens attach on January 1 of each year and take statutory priority over mortgages and private encumbrances.
A) 13 members: 6 brokers (TREC), 6 attorneys (State Bar), and 1 public member (Governor)
B) 9 members appointed entirely by the Texas Senate
C) 12 members elected by licensed real estate brokers
D) 7 members appointed by the Attorney General
Click to Reveal Correct Answer & Explanation
Correct Answer: A
Explanation: The Broker-Lawyer Committee consists of 13 members: 6 brokers appointed by TREC, 6 lawyers appointed by the State Bar President, and 1 public member appointed by the Governor.
A) Double actual damages only
B) Up to three times (treble) economic and mental anguish damages
C) Automatic license revocation with no monetary damages
D) Return of earnest money only
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Under DTPA, finding that an act was committed intentionally allows the court to award up to treble (3x) economic and mental anguish damages.
A) Licensed real estate brokers
B) Escrow title officers
C) Licensed attorneys or the principals to the transaction
D) Appraisers
Click to Reveal Correct Answer & Explanation
Correct Answer: C
Explanation: Real estate agents cannot draft customized contracts; doing so is the unauthorized practice of law. Only attorneys or the principals themselves may draft contracts.
A) 6 months
B) 1 year
C) 2 years
D) 5 years
Click to Reveal Correct Answer & Explanation
Correct Answer: C
Explanation: Texas allows a 2-year statutory right of redemption for homestead and agricultural property sold for unpaid taxes (25% penalty in year 1, 50% in year 2).
A) The agent must wait 30 days for postal confirmation from Austin
B) The new sponsoring broker must submit an online sponsorship request via the TREC portal
C) The agent must retake the state examination
D) A physical notice must be recorded at the county courthouse
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Sponsorship transfer can be processed immediately online through TREC’s portal once the new broker submits the sponsorship request.
A) Consumer Protection Notice (Form CN 1-5)
B) TREC Code of Ethics Banner
C) Local MLS Board Certificate
D) City Business Zoning Permit
Click to Reveal Correct Answer & Explanation
Correct Answer: A
Explanation: Texas brokers must display TREC Form CN 1-5 (Consumer Protection Notice) prominently in all office locations and provide it on business websites.
A) It remains active automatically
B) It is permanently canceled
C) It is placed on inactive status immediately
D) The agent automatically becomes a designated broker
Click to Reveal Correct Answer & Explanation
Correct Answer: C
Explanation: A sales agent can only act under an active sponsoring broker. If the broker is suspended, all sponsored sales agents become inactive until sponsored by a new broker.
A) Yes, if witnessed by two neutral parties
B) No, TRELA requires commission agreements to be in writing and signed
C) Yes, if earnest money has cleared escrow
D) Yes, up to $10,000
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Under TRELA Section 1101.806(c), no legal action can be filed in court to recover a real estate brokerage commission unless the agreement is in writing and signed.
A) Via verbal phone call to the broker
B) In writing to the physical or email addresses specified in Paragraph 21
C) Via county newspaper announcements
D) By leaving a voicemail with the escrow title officer
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Contractual notices between parties are not legally effective unless delivered in writing to the contact details explicitly written into Paragraph 21.
A) Class A Misdemeanor
B) Class C Infraction
C) First-degree Felony
D) Administrative civil fine only
Click to Reveal Correct Answer & Explanation
Correct Answer: A
Explanation: Practicing real estate without a license in Texas is a Class A misdemeanor, punishable by fines up to $4,000 and/or up to one year in county jail.
A) 1 year from the incident date
B) 4 years from the incident date
C) 10 years
D) Indefinitely
Click to Reveal Correct Answer & Explanation
Correct Answer: B
Explanation: Under Texas law, TREC will not investigate any complaint filed more than 4 years after the date of the alleged real estate violation.
Pearson VUE Test-Taking Strategy for Texas Examinees
1. Eliminate Dual Agency: In Texas questions, “Dual Agency” is strictly illegal. The correct answer regarding two-party representation under one brokerage is always Intermediary.
2. Watch Negative Stems: Notice words typed in capitals such as EXCEPT, NOT, or LEAST LIKELY. Re-read the question stem to make sure you are selecting the incorrect statement when requested.
3. Bring a Standard Non-Programmable Calculator: Pearson VUE test centers provide scratch paper, but bringing an approved calculator speeds up proration and capitalization questions significantly.
Frequently Asked Questions
Are these texas real estate exam practice questions free for everyone?
Yes, this complete 50-question mock exam, interactive toggles, and downloadable formula sheet are provided free for all real estate license candidates.
Where do I schedule my official Texas real estate exam?
You can book your examination directly through the Pearson VUE Texas Portal once TREC approves your eligibility application.
Can I retake only one portion if I fail?
Yes. If you fail the National portion but pass the Texas State portion (or vice versa), you only need to re-sit and pay for the specific section failed within your 1-year window.

Certification Research Editor at CertPrepDesk.com. Researches certification exams, licensing requirements, and study resources to help readers understand exam information through clear, practical guides based on official sources.
