Texas Real Estate Exam 2026: 25 Q&A + Pass Tips

Quick Answer

The Texas real estate salesperson exam has 125 multiple-choice questions split into National (80) and State-Specific (45), with a 70% pass mark on EACH section. You have 4 hours total. Pre-licensing requirement is 180 hours across 5 courses (Principles I & II, Law of Agency, Law of Contracts, Real Estate Finance). Total fees ~$253. Licence valid 2 years, 18 hours CE per cycle (TREC, 2026).

Data last verified September 2026 from Texas Real Estate Commission and the current Salesperson Examination Content Outline.

Eligibility

• Age: 18+ (TREC, 2026).
• Pre-licensing: 180 hours from TREC-approved school.
• Residency: Not required; out-of-state applicants eligible.
• Honesty: Disclose any criminal/financial history; TREC reviews for good character.

Test format

Source: TREC Salesperson Examination Content Outline (2026).

Sample Q&A — National Topics (10 questions)

Q1. What is a "fiduciary duty"?

Legal duty to act in the client's best interest, including loyalty, confidentiality, full disclosure, and reasonable care.

Q2. What is "earnest money"?

A deposit demonstrating buyer's good faith — held in escrow until closing.

Q3. Define "marketable title".

Title reasonably free from doubt; defensible against reasonable challenges.

Q4. What is "equity"?

Owner's net interest: market value minus outstanding mortgage debt.

Q5. What is "LTV"?

Loan-to-value ratio: loan amount ÷ appraised value.

Q6. What is "PMI"?

Private mortgage insurance, required at LTV > 80%, removed at 78% LTV. CFPB (2026).

Q7. What is "PITI"?

Principal, Interest, Taxes, Insurance — total mortgage payment components.

Q8. What is "amortization"?

Periodic payment schedule paying off loan over its term.

Q9. What is an "adjustable-rate mortgage"?

Mortgage with interest rate that changes periodically based on an index — initial fixed period then adjustable.

Q10. What is "due-on-sale" clause?

Requires the loan balance to be paid in full upon property transfer.

Sample Q&A — Texas State-Specific (10 questions)

Q11. What is the Texas Real Estate Commission?

TREC — the state agency that licenses and regulates real estate brokers, salespersons, and education providers. Texas Real Estate Licensing Act (TREC, 2026).

Q12. What is the TREC-promulgated contract?

TREC forms (TAR-1 family) are state-promulgated forms for residential and commercial transactions; use of TREC forms is mandatory for TREC-licensed brokers (TREC, 2026).

Q13. Define "intermediary" relationship in Texas.

A broker acting for both buyer and seller with their written informed consent — must appoint separate associated licensees. Texas Real Estate Licensing Act §1101.560 (TREC, 2026).

Q14. What is the IABS form (TREC Form 1-0)?

Information About Brokerage Services — must be provided at first substantive interaction with a prospect. Texas Real Estate Licensing Act §1101.561 (TREC, 2026).

Q15. What is the MUD (Municipal Utility District) disclosure?

Required disclosure when property is in a MUD; informs buyer about the district's taxing authority. Texas Property Code §49.452 (TREC, 2026).

Q16. What is the Texas Seller's Disclosure?

Statutory disclosure of known property defects required from sellers in most residential transactions. Texas Property Code §5.008 (TREC, 2026).

Q17. What is the Texas Property Code requirement for home inspectors?

Buyers may hire an inspector; the Texas Real Estate Inspector Act regulates the profession. Texas Occupations Code Chapter 1102 (TREC, 2026).

Q18. How long is a TREC residential listing agreement valid?

Typically 90–180 days; the agreement must specify the duration and termination rights.

Q19. What is the Texas commercial real estate broker's commission rate?

Negotiable and disclosed in writing — no statutory cap (TREC, 2026).

Q20. What is the Texas recovery fund?

A fund that compensates consumers harmed by licensed broker misconduct; licensees contribute via annual fees. Texas Real Estate Licensing Act §1101.609 (TREC, 2026).

Pass-mark interpretation

You must independently score 70% on both the National and State-Specific sections. A failing score on either section means the entire exam is failed. Retake rule: 30-day waiting period after the first failure (TREC, 2026).

Where to book

Apply via trec.texas.gov; after approval, schedule at any PSI Testing Center. Bring photo ID. Exam fee $43 + licensing fee $200 + Recovery Fund fee $10 = $253 (TREC, 2026).

Resources

Use the TutorsBot entrance-exams hub for cross-cluster practice and the TREC publications page for the official Real Estate Licensing Act. For compliance and disclosures, see the TutorsBot GRC training course.

Career outlook and study plan 2026

Real estate remains one of the most resilient career paths in the US — the Bureau of Labor Statistics (BLS, 2026) projects 4% annual growth in real estate sales agent jobs through 2032, with median annual income of $56,000 and top-10% earners above $120,000. Commission structures typically split 70/30 with the broker, plus potential for team overrides and listing bonuses.

A structured 12-week study plan for the salesperson exam looks like this: weeks 1-3 cover real estate principles (ownership, contracts, finance basics, deeds, titles, liens); weeks 4-6 cover state-specific law (agency relationships, fair housing, disclosures, escrow rules); weeks 7-9 cover finance (mortgages, lending regulations, closings, math); weeks 10-12 cover practice exams + state-specific practice. Most successful candidates invest 200-400 hours of study across the 12-week window.

After licensure, you must affiliate with a sponsoring broker in your state — common brokerages include national brands (Coldwell Banker, RE/MAX, Berkshire Hathaway, Compass, Keller Williams) and local independent firms. New agents typically start on a 70/30 split with a desk fee; high-producing agents can negotiate 80/20 to 100% commission within 18-24 months.