1. Under the Texas Real Estate License Act (TRELA), which state agency is responsible for issuing and regulating real estate salesperson licenses in Texas?
- A. Texas Department of Licensing and Regulation (TDLR)
- B. Texas Real Estate Commission (TREC) ✓
- C. Texas Appraiser Licensing and Certification Board (TALCB)
- D. Texas Secretary of State
TREC, established under the Texas Occupations Code Chapter 1101, is the state agency that licenses and regulates real estate salespersons and brokers in Texas. TALCB, while a separate board, handles appraisers. TDLR regulates many other trades but not real estate salespersons.
2. A Texas real estate salesperson license is valid for how long before renewal is required?
- A. One year
- B. Three years
- C. Two years ✓
- D. Four years
Under TREC rules, a Texas real estate salesperson license has a two-year term. Licensees must complete required continuing education and submit a renewal application before the expiration date to maintain active status.
3. Which of the following activities REQUIRES a Texas real estate license under the Texas Occupations Code?
- A. An owner selling their own home without assistance
- B. A licensed attorney acting under a power of attorney on behalf of a client in a real estate transaction
- C. A person negotiating the sale of a neighbor's property in exchange for compensation ✓
- D. A resident apartment manager employed directly by the property owner to lease units
Negotiating real estate transactions on behalf of another person for compensation requires a Texas real estate license. Selling one's own property, licensed attorneys acting under power of attorney, and on-site residential apartment managers employed by the owner are specifically exempted from licensing requirements under Texas Occupations Code §1101.005.
4. An applicant is preparing to submit an application to TREC for an initial Texas real estate sales agent license. Which of the following correctly describes the qualifying education the applicant must have completed before TREC will approve the license?
- A. 180 classroom hours consisting of six 30-hour qualifying courses, including Principles of Real Estate I and II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance ✓
- B. 60 classroom hours consisting of Principles of Real Estate, Law of Agency, and Law of Contracts, with the remaining courses to be completed within the first year of licensure
- C. 900 classroom hours of qualifying education, including 270 hours of core real estate courses
- D. 270 classroom hours consisting of nine 30-hour qualifying courses, plus the Real Estate Brokerage course
Under Texas Occupations Code §1101.358 and 22 TAC §535.55, an applicant for a sales agent license must complete 180 classroom hours of qualifying real estate education before licensure: Principles of Real Estate I (30 hrs), Principles of Real Estate II (30 hrs), Law of Agency (30 hrs), Law of Contracts (30 hrs), Promulgated Contract Forms (30 hrs), and Real Estate Finance (30 hrs). Texas measures qualifying education in classroom hours, not semester hours. The 60-hour figure reflects pre-2016 requirements that have been repealed; 900 hours and 270 core hours are the broker license requirements under 22 TAC §535.56, not the sales agent standard. The 90-hour Sales Agent Apprentice Education (SAE) is a post-licensing requirement for the first renewal, not a pre-licensing requirement.
5. After passing the Texas salesperson licensing exam, how long does an applicant have to file an application for a license before the exam results expire?
- A. Six months
- B. Two years
- C. One year ✓
- D. Three years
Under current Texas Real Estate Commission rules, real estate licensing examination results are valid for one year. Therefore, if the question is asking when passed exam results expire, the correct answer is one year, not six months.
6. A Texas real estate salesperson license applicant has a prior felony conviction for fraud. How does TREC evaluate this application?
- A. The application is automatically denied because any felony conviction permanently bars licensure
- B. TREC reviews the application using a fitness determination considering the nature of the crime, its relation to the duties of a licensee, and rehabilitation evidence ✓
- C. The applicant must wait exactly five years after completing their sentence before applying
- D. TREC defers to the Texas Board of Pardons and Paroles to determine eligibility
Under Texas Occupations Code §1101.354 and TREC rules, a prior felony conviction does not result in automatic denial. TREC conducts an individual fitness review considering the nature and recency of the offense, its relationship to the responsibilities of a licensee, evidence of rehabilitation, and other factors. Applicants may request a Moral Character Determination before applying.
7. Under TREC rules, an active Texas salesperson must be sponsored by whom to perform real estate activities?
- A. A TREC staff member who acts as a supervising administrator
- B. Any licensed real estate professional with at least two years of experience
- C. A Texas-licensed real estate broker who accepts responsibility for the salesperson's activities ✓
- D. The Texas Association of Realtors, which maintains a roster of approved supervisors
Texas Occupations Code §1101.351 requires a salesperson to be sponsored by a licensed Texas real estate broker. The sponsoring broker assumes responsibility for the salesperson's real estate activities. Without an active sponsoring broker, the salesperson's license is placed in inactive status.
8. What happens to a Texas salesperson's license when their sponsoring broker's license expires or is revoked?
- A. The salesperson's license is automatically revoked as well
- B. The salesperson may continue working independently for up to 90 days
- C. The salesperson's license is placed on inactive status until a new sponsoring broker is obtained ✓
- D. TREC assigns a temporary supervising broker to the salesperson
Under TREC rules, if a sponsoring broker's license expires, is suspended, or is revoked, the salesperson cannot perform licensed activities. The salesperson's license becomes inactive until the salesperson finds and is sponsored by a new licensed broker. TREC does not assign replacement supervisors.
9. Under the Texas Occupations Code, which of the following is a ground for TREC to suspend or revoke a real estate license?
- A. Failing to join a local real estate association within six months of licensure
- B. Placing earnest money into a trust account rather than the broker's operating account
- C. Engaging in a practice of representing both buyer and seller in a transaction without proper disclosure and consent ✓
- D. Advertising a listing on a brokerage website without the salesperson's personal cell phone number
Texas Occupations Code §1101.652 lists acting as an intermediary or representing both parties without proper disclosure and written consent as grounds for license revocation or suspension. Earnest money is correctly placed in a trust account; local association membership is not required; advertising rules require broker identification but not the salesperson's personal phone number.
10. A Texas salesperson wishes to change sponsoring brokers. What is the correct procedure under TREC rules?
- A. The salesperson simply begins working for the new broker, and the change is automatically recorded
- B. The current broker must file a termination form, and then the new broker files a sponsorship form with TREC; the salesperson cannot perform licensed activities in between ✓
- C. The salesperson files a transfer form directly with TREC and may work for both brokers simultaneously for 30 days
- D. The salesperson must retake the state licensing exam before transferring to a new broker
Under TREC rules, to change sponsoring brokers, the current broker must terminate the sponsorship and the new broker must file a sponsorship request with TREC. The salesperson's license is in inactive status during the gap between sponsors and cannot engage in licensed activities until the new sponsorship is activated.