The Texas real estate salesperson exam is administered by the Texas Real Estate Commission (TREC) and consists of 125 questions split between a national portion and a state-specific portion. Texas requires more pre-licensing education than any other state — 180 hours across six courses. This guide breaks down every topic you'll face on the exam and how to prepare for each one.
Texas TREC Exam Structure
National Portion
85 questions
State Portion
40 questions
Time Limit
4 hours (240 minutes)
Passing Score
70% on each portion separately
Exam Fee
$54 (Pearson VUE)
Pre-Licensing Hours
180 hours (6 courses)
Important: Texas requires you to pass each portion separately. You must score 70% or higher on both the national portion (60 of 85) AND the state portion (28 of 40). If you pass one section but fail the other, you only need to retake the failed section.
National Portion Topics (85 Questions)
The national portion covers real estate principles and practices that apply across all states. Here's what you need to know:
Property Ownership (12-15 questions)
Types of property ownership (fee simple, life estate, joint tenancy, tenancy in common), estates in land, legal descriptions, and property rights. This is a foundational topic — if you don't understand types of ownership, many other topics won't make sense.
- Bundle of rights concept
- Freehold vs. leasehold estates
- Concurrent ownership types and their characteristics
- Government rights (police power, eminent domain, taxation, escheat)
- Legal descriptions (metes and bounds, lot and block, rectangular survey)
Contracts (12-15 questions)
Contract formation requirements (offer, acceptance, consideration, legal purpose, capacity), types of contracts, breach of contract, and remedies. Understanding the elements of a valid contract is essential because these principles underlie most real estate transactions.
- Valid, void, voidable, and unenforceable contracts
- Statute of Frauds requirements
- Option contracts and right of first refusal
- Contingencies and their role in contracts
- Specific performance vs. liquidated damages
Agency (10-12 questions)
Agency relationships, fiduciary duties, types of agency (buyer's agent, seller's agent, dual agency), creation and termination of agency, and disclosure requirements.
Financing (10-12 questions)
Types of mortgages (conventional, FHA, VA), loan qualification (income ratios, LTV), closing costs, and mortgage calculations. Understanding the difference between conventional and government-backed loans is critical.
Valuation (8-10 questions)
The three approaches to value (sales comparison, cost, income), appraisal process, factors affecting property value, and comparative market analysis.
Fair Housing (6-8 questions)
Federal Fair Housing Act (protected classes), Americans with Disabilities Act, enforcement mechanisms, and prohibited discriminatory practices including steering, blockbusting, and redlining.
Real Estate Math (8-12 questions)
Commission calculations, area calculations, prorations, loan calculations, and financial ratios. Math questions appear on both the national and state portions.
Texas State Portion Topics (40 Questions)
The state portion focuses on Texas-specific law, regulations, and practices. This is where candidates who studied only national materials will struggle.
TREC Rules & Texas Real Estate License Act (8-10 questions)
TRELA is the foundational law governing real estate licensing in Texas. You need to understand licensing requirements, grounds for disciplinary action, continuing education requirements, and the authority of TREC.
- License types and requirements
- Grounds for license revocation or suspension
- TREC's role and authority
- Recovery fund provisions
- Advertising requirements
TREC-Promulgated Contract Forms (8-10 questions)
This is one of the most critical topics on the Texas state portion. Texas requires real estate licensees to use TREC-promulgated forms for most residential transactions. Using non-approved forms constitutes unauthorized practice of law.
- One to Four Family Residential Contract (Resale)
- New Home Contracts (completed and incomplete construction)
- Farm and Ranch Contract
- Addenda and amendments
- Option period and earnest money provisions
- Third-party financing addendum
Texas Agency & Intermediary Brokerage (5-7 questions)
Texas doesn't use the term "dual agency." Instead, Texas has the intermediary relationship, which allows a broker to represent both parties under specific conditions. Understanding the intermediary concept and the Information About Brokerage Services (IABS) form is essential.
- Intermediary relationship vs. dual agency in other states
- IABS form — when it must be provided and what it contains
- Appointed licensees in intermediary transactions
- Written consent requirements
Texas Property Rights & Homestead (4-6 questions)
Texas has some of the strongest homestead protections in the country. Homestead property is protected from most forced sales for debt, with exceptions for mortgage debt, property taxes, and mechanic's liens.
- Urban homestead (up to 10 acres) vs. rural homestead (up to 200 acres)
- Community property rules
- Homestead exemption from property taxes
- Exceptions to homestead protection
Texas Property Tax & Financing (4-6 questions)
Texas has no state income tax, so property taxes are a major revenue source and tend to be higher than national averages. Understanding property tax assessment, exemptions, and protest procedures is important.
Texas Fair Housing Act (2-3 questions)
Texas has its own fair housing law that mirrors and in some cases extends the federal Fair Housing Act. Know the additional protections and enforcement mechanisms specific to Texas.
Study Strategy by Topic Priority
Not all topics are weighted equally. Here's a prioritized study approach based on the number of questions and difficulty level:
High Priority (study first)
TREC-Promulgated Forms, TRELA/TREC Rules, Contracts, Property Ownership
Medium Priority
Agency/Intermediary, Financing, Real Estate Math, Property Rights
Lower Priority (but don't skip)
Fair Housing, Valuation, Property Management, Environmental
How to Study for the TREC Exam
1. Review All Six Course Areas
Your 180 hours of pre-licensing education covered Principles of Real Estate I & II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance. Before starting exam prep, review the key concepts from each course.
2. Take a Baseline Assessment
A baseline practice exam reveals which topics you've retained from your coursework and which need more study. This prevents you from wasting time on topics you already know.
3. Master the TREC Forms
Go through each promulgated form paragraph by paragraph. Understand what each provision means, when each form is used, and what the agent's responsibilities are with each form. This is the single most valuable use of your study time for the state portion.
4. Practice Both Portions Separately
Since you must pass each portion independently, practice them separately so you can identify whether your weakness is in national or state material. Then take full combined exams to build stamina.
5. Plan for 4-6 Weeks of Study
Given the volume of material from 180 hours of coursework, most successful candidates need 4-6 weeks of focused study. Daily sessions of 1-2 hours are more effective than occasional long cram sessions.
Sample Texas TREC Exam Questions
Q: When must a Texas licensee provide the Information About Brokerage Services (IABS) form?
A: At the time of first substantive dialogue about a specific property with a prospective buyer, seller, landlord, or tenant.
Q: What is the difference between intermediary brokerage in Texas and dual agency in other states?
A: In intermediary brokerage, the broker may appoint separate licensees to advise each party, providing a level of individual representation. Dual agency typically means one agent represents both sides. Texas requires written consent from both parties for intermediary status.
Q: Which of the following debts can overcome Texas homestead protections?
A: Mortgage debt (purchase money or home equity loans), property taxes, mechanic's liens (for work performed on the home), and owelty of partition liens. Most other debts cannot force the sale of a Texas homestead.
Q: Why must Texas real estate agents use TREC-promulgated contract forms?
A: Using non-approved contract forms constitutes unauthorized practice of law. TREC-promulgated forms are drafted by the Broker-Lawyer Committee and mandated for use in most residential transactions to protect consumers and ensure legal compliance.
Q: The option period in a Texas real estate contract allows the buyer to:
A: Terminate the contract for any reason during the negotiated time period, in exchange for non-refundable option money paid to the seller. The buyer does not need to provide a reason for termination during the option period.
Texas TREC Exam Pass Rate
The Texas real estate exam has a first-time pass rate of approximately 55-60%. Remember that you must pass both portions — failing either one means a retake of that section. The state portion tends to have a lower pass rate because candidates often underestimate the depth of Texas-specific material.
Total Cost of a Texas Real Estate License
| Item | Cost |
|---|---|
| 180-hour pre-licensing courses (6 courses) | $500 - $1,000 |
| Exam fee (Pearson VUE) | $54 |
| Fingerprinting / background check | $38 - $50 |
| License application fee (TREC) | $205 |
| Total estimated cost | $797 - $1,309 |
Bottom line: The Texas TREC exam covers a wide range of material across 180 hours of coursework. Prioritize TREC-promulgated forms, TRELA, and intermediary brokerage for the state portion. Take full-length practice exams to build stamina, and study both portions separately to ensure you pass each one.
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