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Free Texas Sales Agent State Law Examination Practice Questions

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Sample Practice Questions

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

  1. 1How many members serve on the Texas Real Estate Commission?

    1. A. 7
    2. B. 9
    3. C. 11
    4. D. 13

    Answer: B

    Explanation: Section 1101.051 states that the Commission consists of nine members. Therefore, nine is correct.

    Reference: Texas Constitution and Statutes — §1101.051

  2. 2A person expects a fee for helping renters locate Texas apartments. What license is generally required?

    1. A. A real estate broker or sales agent license
    2. B. A residential appraiser license
    3. C. A property tax consultant license
    4. D. An auctioneer license

    Answer: A

    Explanation: Rule 535.4 says a license is required to receive a fee or other consideration for assisting another person to locate real property for rent or lease.

    Reference: TREC Rules | TREC — §535.4 License Required

  3. 3When a client's interest conflicts with the sales agent's interest, which interest must the license holder place first?

    1. A. The principal's interest
    2. B. The title company's interest
    3. C. The license holder's interest
    4. D. The lender's interest

    Answer: A

    Explanation: Rule 535.156 requires the license holder to put the principal's interest above the license holder's own.

    Reference: TREC Rules | TREC — §535.156 Dishonesty; Bad Faith; Untrustworthiness

  4. 4A license holder learns significant transaction information affecting the client's decision. What is required?

    1. A. Keep the principal informed
    2. B. Tell only the closing agent
    3. C. Wait until closing
    4. D. Disclose it only if another party asks

    Answer: A

    Explanation: Rule 535.156 imposes an affirmative duty to keep the principal informed of significant transaction information.

    Reference: TREC Rules | TREC — §535.156 Dishonesty; Bad Faith; Untrustworthiness

  5. 5When negotiating a transaction type covered by a mandatory TREC form, what must a Texas license holder generally use?

    1. A. The Commission-approved mandatory form
    2. B. A form drafted by the sales agent
    3. C. Any internet template
    4. D. An oral agreement summary

    Answer: A

    Explanation: Rule 537.11 requires the mandatory Commission-approved form unless a stated exception applies.

    Reference: TREC Rules | TREC — §537.11 Use of Standard Contract Forms; Unauthorized Practice of Law

  6. 6Property possessed by either spouse at divorce is presumed to have what character?

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

    Answer: A

    Explanation: Family Code §3.003 presumes property possessed during dissolution to be community property.

    Reference: Fa 3 — §3.003(a)

  7. 7Which membership mix is required for the Texas Real Estate Commission?

    1. A. Five brokers and four public members
    2. B. Six attorneys and three brokers
    3. C. Six brokers and three public members
    4. D. Eight brokers and one public member

    Answer: C

    Explanation: Section 1101.051 specifies six members who are licensed real estate brokers and three members who represent the public. That yields the stated mix.

    Reference: Texas Constitution and Statutes — §1101.051

  8. 8A Texas-licensed auctioneer only calls bids at a real-property auction. Which statement is correct?

    1. A. A broker license is required for calling bids
    2. B. No real estate license is required if no other brokerage act is performed
    3. C. A sales agent license is required only for commercial property
    4. D. An appraiser license substitutes for a brokerage license

    Answer: B

    Explanation: Section 1101.005 exempts an auctioneer licensed under Chapter 1802 when conducting the auction and performing no other broker act.

    Reference: Texas Constitution and Statutes — §1101.005(4)

  9. 9To whom must a Texas license holder deal honestly and fairly?

    1. A. Only the principal
    2. B. Only represented parties
    3. C. All parties
    4. D. Only other license holders

    Answer: C

    Explanation: Texas ethics rules require honest and fair dealing with all parties while fidelity remains owed to the principal.

    Reference: TREC Rules | TREC — §535.156 Dishonesty; Bad Faith; Untrustworthiness

  10. 10When must a Texas license holder provide the Information About Brokerage Services notice to a prospect?

    1. A. At the first substantive communication about specific real property
    2. B. Only after a contract is signed
    3. C. At the closing table
    4. D. Only when the prospect requests it

    Answer: A

    Explanation: Rule 531.20 requires the IABS notice at the first substantive communication concerning specific real property.

    Reference: TREC Rules | TREC — §531.20 Information About Brokerage Services

Topics in this practice bank

These topics describe the available practice for Texas Sales Agent State Law Examination. Review the examination outline and its sources for scope and allocation details.

  • I. COMMISSION DUTIES AND POWERS (3 ITEMS)
    • A. General Powers — 1. Composition, Duties, and Powers
    • A. General Powers — 2. Real Estate Advisory Committees
    • B. Handling of Complaints — 1. Investigations
    • B. Handling of Complaints — 2. Hearings and Appeals
    • C. Penalties for Violation — 1. Unlicensed Activity
    • C. Penalties for Violation — 2. Authority for Disciplinary Actions
    • C. Penalties for Violation — 3. Recovery Trust Account
  • II. LICENSING (3 ITEMS)
    • A. Activities Requiring License — 1. Scope of Practice
    • A. Activities Requiring License — 2. Exemptions
    • A. Activities Requiring License — 3. Business Entities
    • A. Activities Requiring License — 4. Inspectors and Appraisers
    • B. Licensing Process — 1. General Requirements (fitness sponsor, etc.)
    • B. Licensing Process — 2. Education
    • B. Licensing Process — 3. Examination
    • B. Licensing Process — 4. Grounds to Deny an Application
    • B. Licensing Process — 5. Appeals of Denial
    • C. License Maintenance and Renewal — 1. Continuing Education
    • C. License Maintenance and Renewal — 2. Change of Sales Agent Sponsorship
    • C. License Maintenance and Renewal — 3. Inactive Status
    • C. License Maintenance and Renewal — 4. Assumed Names
  • III. STANDARDS OF CONDUCT (9 ITEMS)
    • A. Professional Ethics and Conduct
    • B. Grounds for Discipline
    • C. Unauthorized Practice of Law
    • D. Trust Accounts
    • E. Splitting Fees
    • F. Rebates
    • G. Advertising
  • IV. AGENCY/BROKERAGE (11 ITEMS)
    • A. Disclosure
    • B. Intermediary Practice
    • C. Duties to Client (including Minimum Services)
    • D. Broker-Sales Agent Relationships
    • E. Broker’s Responsibility for Acts of Sales Agent
    • F. Appropriate Use of Unlicensed Assistants
  • V. CONTRACTS (9 ITEMS)
    • A. Promulgated Contracts, Forms, and Addenda
    • B. Statute of Frauds
    • C. Seller Disclosure Requirements
  • VI. SPECIAL TOPICS (5 ITEMS)
    • A. Community Property
    • B. Homestead Protections and Tax Exemptions
    • C. Deceptive Trade Practices Act
    • D. Wills and Estates
    • E. Landlord-Tenant Issues
    • F. Foreclosure and Short Sales
    • G. Recording Statutes
    • H. Mechanic’s and Materialman’s Liens
    • I. Veterans Land Board
    • J. Home Owners Associations
    • K. Equitable Interest

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These are independent study questions, not actual examination items. For examination requirements and official information, view Texas Sales Agent State Law Examination details.