Texas Real Estate Exam Practice Test: Free Sample Questions (2026)

You finished your 180 hours. Now you need to pass the state exam.

The Texas real estate licensing exam covers two portions: national and state. Most people who fail do so on the state portion. They run out of time studying the wrong things.

This page gives you free practice questions from both portions, with full answer explanations. Work through them. Then I will show you how TREA's exam prep product through Expert Classroom gets you to test day fully prepared.

I'm David Offutt, TREC Instructor #1597. I built Texas Real Estate Academy after Champions School of Real Estate told me I couldn't teach without a real estate license. That's factually wrong. TREC disagreed too. You're in good hands.

Start Exam Prep with TREA

How the Texas Real Estate Exam Works

The Texas real estate licensing exam is administered by PSI Exams. It has two separate portions.

The national portion has 85 questions. You get 150 minutes. The state portion has 40 questions. You get 90 minutes. You must pass both portions. If you fail one, you retake only that portion.

Passing score: 56 correct on the national portion (66%), and 21 correct on the state portion (53%).

You can schedule your exam at PSI Exams. You have one year from the date TREC approves your application to sit for the exam.

National Portion Topics

• Property ownership and land use controls
• Laws of agency and fiduciary duties
• Property valuation and appraisal
• Financing concepts (mortgages, liens, title)
• Transfer of title (deeds, closing, escrow)
• Practice of real estate (listings, buyer agreements, disclosure)
• Real estate calculations (math)

State Portion Topics

• Texas license law (TRELA)
• TREC rules and regulations
• Agency relationships under Texas law
• Texas-specific contracts and addenda (TREC-promulgated forms)
• Fair housing - Texas additions
• Deceptive Trade Practices Act (DTPA)

Free Texas Real Estate Exam Practice Questions

Work through these before moving on. Each question is followed by the correct answer and a short explanation. These reflect the actual format and difficulty level of the licensing exam.

National Portion Practice Questions

Question 1: Property Ownership

A man and a woman purchase property together as joint tenants. The man dies. What happens to his interest in the property?

• A) It passes to his heirs through probate
• B) His interest is divided equally among all surviving joint tenants
• C) The woman automatically receives his interest through right of survivorship
• D) The property converts to a tenancy in common

Correct Answer: C. Joint tenancy includes the right of survivorship. When a joint tenant dies, their interest passes automatically and immediately to the surviving joint tenant(s). It bypasses probate entirely. This is one of the defining features that distinguishes joint tenancy from tenancy in common.

Question 2: Contracts

A buyer submits an offer with an earnest money deposit. The seller accepts the offer. Before closing, the buyer defaults without legal cause. What can the seller do with the earnest money?

• A) The seller must return the earnest money in full
• B) The seller may keep the earnest money as liquidated damages if the contract allows
• C) The earnest money automatically transfers to the listing agent as commission
• D) The seller must sue the buyer before touching the earnest money

Correct Answer: B. Most purchase contracts include a liquidated damages clause. If the buyer defaults, the seller may retain the earnest money as the agreed-upon remedy. However, the contract language controls. If the contract is silent, the parties may need to reach a separate agreement or litigate.

Question 3: Financing

A borrower takes out a mortgage and then defaults. The lender forecloses. After the foreclosure sale, the proceeds are not enough to cover the full loan balance. What is the remaining amount the borrower still owes called?

• A) Prepayment penalty
• B) Deficiency judgment
• C) Subordination agreement
• D) Acceleration clause

Correct Answer: B. A deficiency judgment allows the lender to seek the remaining balance from the borrower after a foreclosure sale falls short. Not all states allow deficiency judgments, and some restrict them on purchase-money mortgages. Texas has specific anti-deficiency rules for certain homestead situations.

Question 4: Property Valuation

A broker uses the sales comparison approach to estimate value. She finds three comparable sales. Comparable A is missing a garage that the subject property has. She should:

• A) Add the garage value to Comparable A's sale price
• B) Subtract the garage value from the subject property's estimated value
• C) Discard Comparable A and find a better comp
• D) Make no adjustment because garages are not structural

Correct Answer: A. In the sales comparison approach, you adjust the comparable, not the subject. Because Comparable A is inferior (it lacks the garage), you add the garage value to Comparable A's price to make it equivalent to the subject. The rule is: if the comp is better, subtract; if the comp is worse, add.

Question 5: Agency

A listing agent shows a property to a buyer who is not represented. During the showing, the buyer says, "I could actually go as high as $30,000 over asking if I have to." The listing agent:

• A) Must immediately disclose this to the seller
• B) Is bound to keep this information confidential
• C) May disclose it but only with the buyer's written consent
• D) Must withdraw from the transaction

Correct Answer: A. The listing agent represents the seller. They have a fiduciary duty to disclose any information that could benefit the seller - including the buyer's willingness to pay more. This is a core reason unrepresented buyers should understand the agent they are working with represents the other side.

State Portion Practice Questions

Question 6: TREC Rules and License Law

A licensed sales agent wants to operate under a business name other than their own. Which of the following is required under TREC rules?

• A) TREC approval is not needed; the agent just needs a DBA from the county clerk
• B) The assumed name must be registered with TREC and contain the broker's name
• C) The assumed name must be registered with TREC and may not imply the agent is a broker
• D) Agents may not operate under an assumed business name under any circumstances

Correct Answer: C. Under TREC rules, a sales agent may use an assumed business name, but it must be registered with TREC. The name cannot imply the person is a broker if they are not. Many agents get tripped up here - having a county DBA is not enough. TREC registration is required separately.

Question 7: Agency Relationships - Texas Law

A Texas buyer's agent receives written consent from both the buyer and the seller to act as an intermediary. In this role, the broker:

• A) May advocate for the buyer's interests above the seller's
• B) Must appoint separate associated licensees to work with each party
• C) Cannot disclose to the buyer the seller's motivation to sell
• D) Must keep all terms and counteroffers confidential from both parties

Correct Answer: C. Under Texas intermediary rules, the broker-as-intermediary cannot disclose to either party information the other party considers confidential - including the seller's motivation, the buyer's maximum price, or any personal circumstances. This is the key limitation that makes intermediary different from dual agency in other states.

Question 8: TREC-Promulgated Forms

A buyer is purchasing a property that has an existing survey. The parties want to use that survey. Where does this agreement belong in the TREC One to Four Family Residential Contract?

• A) Paragraph 6 - Title Policy and Survey
• B) Paragraph 7 - Property Condition
• C) Paragraph 12 - Settlement and Other Expenses
• D) The Third Party Financing Addendum

Correct Answer: A. Paragraph 6 of the One to Four Family contract covers both title policy and survey. It specifies who pays for a new survey, whether an existing survey is acceptable, and the T-47 affidavit requirements. This is a paragraph that shows up heavily on the state exam - know every section of Paragraph 6.

What These Questions Tell You

Notice a pattern in the state questions: they require knowing Texas-specific statutes, TREC rule language, and the exact structure of promulgated forms. You cannot guess your way through the state portion. You need to know the rules precisely.

That is where exam prep makes the difference between a first-time pass and a second attempt.

TREA Exam Prep Through Expert Classroom

TREA's exam prep product is delivered through Expert Classroom. This is live, instructor-led exam prep - not just a question bank.

Here is what you get:

• TREC-approved content. Courses are developed by David Offutt, TREC Instructor #1597, who holds an MS in Applied Economics and spent years building this curriculum.
• Live classroom instruction. Expert Classroom pairs you with licensed instructors who deliver the material in a live setting. You ask questions. You get answers.
• National and state portion coverage. Both sides of the exam, covered systematically.
• Contract and form fluency. TREC-promulgated forms are a major exam focus. The curriculum addresses them directly.
• Instant TREC posting. Once you hold your license, any CE you complete through TREA posts to TREC in approximately 3 seconds. That is the same infrastructure backing the exam prep system.

TREA does not offer 180-hour qualifying education. If you still need your QE, that is a different product from a different provider. TREA is for candidates who have completed their QE and are preparing to sit for the exam - or for licensed agents who need CE renewal.

Get Exam Prep From TREA

How to Study for the Texas Real Estate Exam

Here is an approach that works:

1. Review the TREC Candidate Handbook. Know the exam structure, topic weights, and pass/fail rules before you study a single concept. Download it from TREC.texas.gov.
2. Master the state portion first. The national portion is tested in every state. The state portion is Texas-only. Most first-time failures come from underestimating the state side.
3. Know the promulgated forms cold. The One to Four Family contract, the Third Party Financing Addendum, the Buyer Representation Agreement. Know where everything lives in each form.
4. Study agency relationships carefully. Intermediary, single-agent listing, buyer representation, MLS broker cooperation - Texas has specific rules on each.
5. Do practice questions under timed conditions. The national portion gives you about 1.75 minutes per question. The state portion gives you 2.25 minutes. Practice timing matters.
6. Review TREC license law (TRELA). The Texas Real Estate License Act governs what agents can and cannot do. Several questions will test your knowledge of it directly.

Common Mistakes on the Texas Exam

These are the errors candidates make most often:

• Misreading who the question is asking about. Read carefully. Many questions hinge on whether the subject is a buyer, seller, agent, or broker.
• Confusing national rules with Texas rules. The national portion tests general real estate law. The state portion tests Texas law. They sometimes differ. Agency relationships and disclosure requirements are common conflict zones.
• Skipping the math. The national portion includes calculation questions. Commission splits, proration, loan-to-value ratios. They are worth points you cannot leave on the table.
• Over-relying on flashcards. Definitions matter, but the exam tests application. "Which of the following is correct" requires understanding, not just recall.
• Not knowing TREC promulgated forms by paragraph number. "Where does X go in the One to Four?" is a real exam question type. Know the structure.

Ready to Pass the First Time?

These practice questions are a starting point. The full exam prep program through Expert Classroom is how you get to test day fully prepared.

Texas Real Estate Academy is based at 4528 W Vickery Blvd #100, Fort Worth, TX 76107. TREC CE Provider #10010-CEP. TREC Instructor #1597.

Start Exam Prep Now