Free Texas Real Estate Practice Exam 2026

Texas real estate exam sample questions and answers

6 of the 120 practice questions, one from each topic, with the answer explained.

1. 1. To make a TREC resale contract depend on the buyer obtaining a new loan from a lender, the agent should use:

   • A.The Loan Assumption Addendum
   • B.The Third Party Financing Addendum
   • C.A clause written in special provisions
   • D.The Seller Financing Addendum

   Answer: B. TREC Rule 537.47 requires the Third Party Financing Addendum whenever a promulgated contract is conditioned on third party financing, and Rule 537.11 bars drafting a clause for a purpose TREC has approved a form for. The Seller Financing and Loan Assumption addenda cover different kinds of financing.

2. 2. A consumer suit under the Texas Deceptive Trade Practices Act generally must be filed within:

   • A.Four years
   • B.One year
   • C.Six months
   • D.Two years

   Answer: D. Business and Commerce Code 17.565 requires suit within two years after the deceptive act or after the consumer discovered it or should have. The period can be extended 180 days only if the defendant caused the delay.

3. 3. A lender rejects a loan applicant because much of her income comes from public assistance, though it is reliable and ongoing. Under ECOA, this is:

   • A.Illegal discrimination in lending
   • B.Permitted because assistance is not earned income
   • C.Permitted if all applicants are treated alike
   • D.Permitted for loans over the conforming limit

   Answer: A. The Equal Credit Opportunity Act bars discrimination based on race, color, religion, national origin, sex, marital status, age or receipt of public assistance income. A lender may judge whether income is reliable, but may not reject it because its source is public assistance.

4. 4. An office suite measures 40 feet by 55 feet and rents for $4,400 per month. What is the annual rent per square foot?

   • A.$2.00
   • B.$277.89
   • C.$24.00
   • D.$0.04

   Answer: C. Area is 40 x 55 = 2,200 square feet; annual rent is $4,400 x 12 = $52,800; $52,800 / 2,200 = $24.00 per square foot per year. Dividing the monthly rent gives $2.00, which is a monthly figure, and dividing by the 190-foot perimeter gives $277.89.

5. 5. To fix a mechanic's lien on a married couple's Texas homestead, the contractor needs:

   • A.A lien notice filed after the work ends
   • B.Only the title holder's signature on file
   • C.A prior contract signed by both spouses
   • D.An oral agreement with either spouse

   Answer: C. Property Code 53.254 requires a written contract executed before the work or materials are furnished, signed by both spouses if the owner is married, and filed with the county clerk.

6. 6. A sales agent's sponsoring broker has his license revoked. What happens to the sales agent's license?

   • A.It becomes inactive
   • B.It is revoked as well
   • C.It moves to a supervisor
   • D.It stays active 30 days

   Answer: A. Under TREC Rule 535.121 a sales agent license becomes inactive when the sponsoring broker's license expires or is suspended, revoked or inactivated. The agent may practice again only after a new broker sponsors the agent.