Exam Cheat Sheet · Quick Reference
Texas Real Estate Broker Exam - State Portion
Texas · Pearson Vue
Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
130
50 state + 80 national
Passing score
76%
each portion
Exam time
240 min
≈ 4 hr, one sitting
Administered by
Pearson Vue
Format
Closed-book
Texas State Portion 50 questions
Texas Commission Duties and Powers
3 Q · 6%
General Powers (Composition, Duties, Powers, Real Estate Advisory Committees)Handling of Complaints (Investigations, Hearings and Appeals)Penalties for Violation (Unlicensed Activity, Authority for Disciplinary Actions, Recovery Trust Account)Commission membership composition and appointment requirementsCommissioner qualifications, terms, removal, and vacanciesExecutive Director and commission personnel roles and responsibilitiesTexas Real Estate Broker-Lawyer Committee structure and contract form dutiesCommission rulemaking authority and rule adoption proceduresTemporary suspension of licenses by disciplinary panelCease and desist orders and injunctive enforcement authority
Texas Licensing
4 Q · 8%
Activities Requiring License (Scope of Practice, Exemptions, Business Entities, Inspectors and Appraisers)Licensing Process (General Requirements, Education, Examination, Grounds to Deny, Appeals of Denial)License Maintenance and Renewal (Continuing Education, Change of Sales Agent Sponsorship, Inactive Status, Assumed Names)Military service members, veterans, and military spouses (expedited processing, fee waivers, credit for military service)Criminal history and fitness requirements (criminal offense guidelines, factors considered, criminal history evaluation letters)Nonresident and foreign broker licensure (consent to be sued, cooperation with foreign brokers, foreign business entities)Easement or right-of-way agent registration (eligibility, education, renewal, exemptions)Probationary licenses (issuance conditions, terms, renewal after the probationary period)Inspector licensing under Chapter 1102 (who must hold a real estate inspector license)Appraiser licensing under Chapter 1103 (who must hold an appraiser license or certificate)Place of Business (broker office requirements)Background Check (fingerprints and criminal history review)
Texas Standards of Conduct
9 Q · 18%
Professional Ethics and ConductGrounds for DisciplineUnauthorized Practice of LawTrust AccountsSplitting FeesRebatesAdvertisingDiscriminatory practices prohibited by the Canons (fair housing)License holder's duty to disclose when acting on own behalf or for a relative or business entityConsumer Protection Notice display and delivery requirements
Texas Agency and Brokerage
10 Q · 20%
DisclosureIntermediary PracticeDuties to Client (including Minimum Services)Broker-Sales Agent RelationshipsBroker Responsibility for Acts of Sales AgentAppropriate Use of Unlicensed AssistantsWritten buyer/tenant representation agreements (required terms, exclusivity, duration)Fiduciary duties owed to the principal (fidelity, loyalty, disclosure of known information)Liability limitations for misrepresentation by another and information that need not be disclosed (HIV/AIDS, deaths by natural causes)Enforcing Compensation Agreements (written agreement required to sue for a commission)Broker supervision of sales agents and the broker's written supervision policiesDesignated broker and business entity broker responsibilities
Texas Contracts
8 Q · 16%
Promulgated Contracts, Forms, and Addenda (TREC)Statute of FraudsSeller Disclosure RequirementsEarnest money and option fee (delivery deadlines, termination option)Contract termination rights and procedures (notices of termination)Financing addenda (third party financing, seller financing, loan assumption)Title policy, survey, and title objectionsProperty condition, inspections, repairs, and 'As Is' provisionsSpecial district and utility district notices (Water Code §49.452)Coastal area and public beach property disclosuresProperty owners' association addendum (subdivision information delivery and termination right)When license holders must use TREC-promulgated forms and the exceptions (22 TAC §537.11)
Texas Special Topics
6 Q · 12%
Community PropertyHomestead Protections and Tax ExemptionsDeceptive Trade Practices ActWills and EstatesLandlord-Tenant IssuesForeclosure and Short SalesRecording StatutesMechanics and Materialmans LiensVeterans Land BoardHome Owners AssociationsEquitable InterestExecutory contracts (contracts for deed): buyer and seller rights and obligations
+7 more
Texas Case Studies
10 Q · 20%
Narrative cases (a broker scenario followed by several questions on the Act and TREC rules: agency and intermediary practice, supervision, trust accounts, advertising, discipline)Contract cases (several questions on one transaction completed on TREC-promulgated contracts and addenda: dates and deadlines, earnest money and option fee, financing, title and survey, closing and termination)
National Portion 80 questions
Property Ownership
8 Q · 10%
Real vs personal propertyLand characteristics and legal descriptions (metes & bounds, lot & block, government survey)Measuring structures and land measurementEncumbrances: liens, easements, encroachments, subsurface/air/water rightsTypes of ownership: severalty, tenants in common, joint tenancy, common-interest, trusts, business entities, life estate
Land Use Controls
4 Q · 5%
Government rights in land: taxes, special assessments, eminent domain, escheatGovernment controls on land use: zoning, building codes, environmental regulationsPrivate controls: deed conditions, CC&Rs, HOA/condo bylaws
Valuation and Market Analysis
6 Q · 8%
Appraisals: when required, licensed/certified appraiser requirements, appraisal processEstimating value: economic principles affecting valueSales comparison approachCost approachIncome analysis approach (GRM, cap rate)Comparative Market Analysis (CMA), Broker Price Opinion (BPO), Automated Valuation Models (AVM)
Financing
8 Q · 10%
Loan terminology: points, LTV, PMI, PITI, underwriting criteriaMortgage clauses, promissory notes, deeds of trustLoan types: conventional, amortized, ARM, FHA, VA, USDA, owner financing, reverse mortgage, HELOC, construction, bridgeLending legislation: RESPA, Truth in Lending (Reg Z), TRID, Equal Credit Opportunity ActSecondary mortgage market: Fannie Mae, Freddie Mac, Ginnie Mae
Contracts
15 Q · 19%
General contract law: valid elements, Statute of Frauds, offer and acceptanceContract enforceability: void, voidable, unenforceable contractsBilateral vs unilateral contracts, option contractsElectronic signatures and digital transactionsRights, obligations, and breach remediesPurchase agreements: addenda, amendments, contingenciesLease contracts: types of leases, lease-purchase agreementsMultiple offers and counteroffers
Agency
10 Q · 13%
Agency vs non-agency relationshipsListing contracts: exclusive right-to-sell, exclusive agency, open listing, net listingBuyer brokerage and buyer representation agreementsTransaction brokers and facilitatorsPower of attorney, termination of agencyFiduciary duties: obedience, loyalty, disclosure, confidentiality, accounting, reasonable care (OLD CAR)Duties to customers and non-clientsAgency disclosure requirements and conflict of interest
Property Disclosures
6 Q · 7%
Property condition disclosures: seller disclosure requirements, inspections, surveysRed flags and material defectsEnvironmental disclosures: lead-based paint, asbestos, radon, mold, underground storage tanksGovernment disclosures: flood zones, wetlands, endangered speciesMaterial facts and duty to disclose
Property Management
2 Q · 3%
Tenant procurement and qualificationFair housing compliance in property management and ADAMarket analysis for establishing rentsLandlord/tenant rights and obligations
Transfer of Title
5 Q · 6%
Types of deeds: general warranty, special warranty, quitclaim, bargain and saleTitle insurance: owners vs lenders policies, title searches, title problemsClosing process: recordation, settlement statements, warrantiesSpecial processes: foreclosure, short sale, deed in lieu, probate
Practice of Real Estate
10 Q · 12%
Federal Fair Housing Act: protected classes, prohibited conduct, exemptionsAmericans with Disabilities Act (ADA) requirementsAntitrust laws: price fixing, group boycotts, market allocation, tie-in agreementsDo-Not-Call Registry and telemarketing rulesSocial media and internet advertising regulationsHandling earnest money and trust fundsDue diligence and fiduciary responsibilitiesIndependent contractor vs employee status
Real Estate Calculations
6 Q · 7%
Seller net proceeds calculationsBuyer funds required at closingProrations: taxes, insurance, rent, HOA duesTransfer tax and recording fee calculationsPITI (Principal, Interest, Taxes, Insurance) calculationsCommission calculations and splitsEquity, capitalization rate, and LTV calculationsDiscount points and origination feesArea and volume conversions (sq ft, acres)
Key Distinctions
Exclusive right-to-sell listingvsExclusive agency listing
Under an exclusive right-to-sell the broker earns the full agreed commission no matter who sells, including the seller personally, while under an exclusive agency the seller retains the right to sell the property himself without owing the broker a commission.
Modern Real Estate Practice (22nd ed.), Client Representation Agreements chapter, Types of Listing Agreements sectionVoid contractvsVoidable contract
A void contract (e.g., one made by a person legally adjudicated mentally incompetent, a forged signature, an illegal purpose, or missing all essential elements) has no legal effect from the beginning, while a voidable contract (e.g., duress, minors, intoxicated persons, lack of capacity without adjudication) is valid and enforceable unless the party entitled to disaffirm does so within a period of time.
Modern Real Estate Practice (22nd ed.), Unit 11, Validity of a contractVoidable/void contractvsUnenforceable contract
An oral agreement to sell real property is unenforceable under the Statute of Frauds because it fails the writing requirement even though its other elements may be valid, whereas illegality makes a contract void and a minor's or intoxicated person's contract is typically voidable.
Latent defectvsPatent defect
A latent defect is a structural/hidden defect not visible or discoverable by ordinary inspection (and must be disclosed if known), while a patent defect is visible and obvious on ordinary observation.
Modern Real Estate Practice (22nd ed.), Unit 9, Property conditions section — latent defect definitionSpecial assessmentvsAd valorem property tax
A special assessment creates a lien only against the specific properties that directly benefit from a public improvement (sidewalks, streetlights, sewer lines), while general ad valorem taxes are levied on all properties in the taxing jurisdiction based on assessed value.
Gross rent multiplier (GRM)vsGross income multiplier (GIM)
GRM is based on monthly gross rent and is used for one- to four-unit residential properties with no other income, while GIM is based on annual gross income and applies to properties with five or more units and commercial properties (e.g., a 12-unit building).
Modern Real Estate Practice (22nd ed.), Chapter 16 — Real Estate Appraisal, Gross rent or gross income multipliersPurchase money mortgagevsLand contract
With a purchase money mortgage the buyer receives the deed and legal title at closing and grants the seller a security interest for the unpaid balance, whereas under a land contract the seller retains legal title (buyer holds equitable title) until all installment payments are made.
Modern Real Estate Practice (22nd ed.), Unit 11, Owner financing contracts sectionJoint tenancyvsTenancy in common
Joint tenancy requires the four unities of time, title, interest, and possession and carries the right of survivorship; in a tenancy in common there is no survivorship, so a deceased co-owner's interest passes to heirs or devisees through probate.
SubleasevsAssignment of lease
A sublease transfers possession for only part of the remaining lease term with the tenant retaining a reversionary interest, while an assignment transfers the entire remaining interest with nothing retained.
Independent contractor sales associatevsEmployee
An independent contractor pays his or her own income and Social Security taxes, while an employer must withhold Social Security and income taxes from employees and must also pay unemployment compensation tax on employee wages.
Modern Real Estate Practice (22nd ed.), Real Estate Brokerage chapter, Independent Contractor vs Employee sectionAgency coupled with an interestvsOrdinary agency
An agency coupled with an interest — where the agent holds an ownership interest in the subject property — cannot be revoked by the principal acting alone and is not terminated by the principal's death, while an ordinary agency may be terminated unilaterally by either party (though damages may apply).
Modern Real Estate Practice (22nd ed.), Chapter 9 — Termination of agencySales agent exam passing scorevsBroker exam passing score
Under 22 TAC §535.57(c) a sales agent applicant must score at least 70% on each portion of the exam, while a broker applicant must score at least 75% on each portion.
TREC Rules, 22 TAC §535.57(c)Key Terms
Texas Real Estate Commission (composition) TRELA, Texas Occupations Code §1101.051
Under TRELA §1101.051(a) the commission consists of nine members appointed by the governor with senate consent — six who have been engaged in the brokerage business as licensed brokers as their major occupation for the five years preceding appointment and three public members — serving staggered six-year terms with vacancies filled by the governor.
Texas Real Estate Broker-Lawyer Committee TRELA, Texas Occupations Code §1101.252
Under TRELA §1101.252 a 13-member committee — six appointed by the commission, six State Bar of Texas members appointed by the state bar president, and one public member appointed by the governor — that drafts and revises standardized contract forms.
Real estate recovery trust account TRELA, Texas Occupations Code §1101.610
Fund from which payments for all claims arising out of a single transaction, including attorney's fees, interest, and court costs, may not exceed $125,000 regardless of the number of claimants (TRELA §1101.610(a)); a separate $250,000 cap in §1101.610(b) applies to claims based on judgments against a single license or certificate holder.
Intermediary TRELA (Occ. Code Ch. 1101), Section 1101.559(a)
Under TRELA §1101.559(a) a broker may act as intermediary between a seller and buyer only with written consent from each party that states the source of any expected compensation to the broker; a listing or buyer representation agreement satisfies consent if it sets out the conduct prohibited under §1101.651(d) in conspicuous bold or underlined print.
Trust money (deposit deadline) 22 TAC §535.146(b)(3)
Under 22 TAC §535.146(b)(3), absent a different time expressly agreed in writing by the principals, trust money must be deposited in a trust account or delivered to an authorized escrow agent not later than the close of business of the second working day after the broker receives it.
Broker's own money in a trust account TREC Rules, 22 TAC §535.146(c)(5)
Under 22 TAC §535.146(c)(5), money a broker becomes entitled to (such as earned compensation) must be removed from the trust account not later than the 30th day after the date the broker acquires ownership; leaving it longer is a form of commingling.
Showing agreement without representation TRELA (Occ. Code Ch. 1101), Section 1101.563(e)
Under TRELA §1101.563(e) a written agreement with a prospective buyer solely to show residential real property without representing the buyer may not be exclusive and may not state a termination date more than 14 days from the date it is entered into.
Team name TREC Rules, 22 TAC §535.154(c)(2)
Under 22 TAC §535.154(c)(2) an exclusive collective name used by agents sponsored by the same broker must end with the word 'team' or 'group,' may not suggest brokerage services independent of the sponsoring broker, and is registered with the Commission by the broker.
Consumer Protection Notice (TREC No. CN 1-5) TREC No. CN 1-5; 22 TAC §531.18(b)(2)(B)
Notice that must be displayed in a readily noticeable location in each place of business the broker maintains and linked on the homepage of each business website, labeled 'Texas Real Estate Commission Consumer Protection Notice' in at least 10 point font or 'TREC Consumer Protection Notice' in at least 12 point font (22 TAC §531.18(b)).
Easement or right-of-way agent TRELA, Texas Occupations Code §1101.509(b)
A registrant who, under TRELA §1101.509(b), must submit evidence of at least 16 classroom hours of commission-approved coursework in eminent domain law including property owners' rights, professional standards in negotiating with owners, and ethics in right-of-way acquisition — with 16 hours likewise required during each renewal period.
Real estate inspector (Chapter 1102) Texas Real Estate-Related Statutes, Occupations Code §1102.001
A person who represents to the public that he or she is trained and qualified to perform real estate inspections under the indirect supervision of a professional inspector, as distinguished from an apprentice inspector who works under direct supervision.
Seller's Disclosure Notice termination right Tex. Prop. Code Sec. 5.008(f)
Under Tex. Prop. Code §5.008(f), when a contract is entered into without the required notice, the purchaser may terminate the contract for any reason within seven days after receiving the notice.
Equitable interest / option assignment exemption TRELA, Texas Occupations Code §1101.0045
Under TRELA §1101.0045 a person may sell or offer to sell an option or assign an interest in a contract to purchase real property without a license only if the person does not use the option or contract to engage in real estate brokerage and discloses the nature of the equitable interest in writing to any seller or potential buyer.
Color of title
A claim to title founded on a document that appears valid and effective on its face (legal description, granting clause, signatures) but is actually defective — such as a deed from a grantor previously declared legally incompetent — so the holder has the appearance of title but not actual legal title.
Negligent misrepresentation Modern Real Estate Practice (22nd ed.), Chapter 9 — Opinion vs. fact (negligent misrepresentation)
Occurs when a real estate professional should have known that a statement about a material fact was false; it involves carelessness rather than the intent required for fraud.
Novation Modern Real Estate Practice (22nd ed.), Unit 11, Novation section
The substitution of a new contract for an existing one, discharging the old obligation entirely — as when parties sign a clean new contract incorporating all accepted changes — unlike an amendment, which merely modifies existing terms.
Formulas to Know
Income capitalization (value, NOI, rate)
Value = NOI ÷ Cap Rate; NOI = Value × Cap Rate; Cap Rate = NOI ÷ Sale Price. Example: $96,000 NOI at 8% = $1,200,000 and at 10% = $960,000, a $240,000 difference.NOI from potential gross income
Effective Gross Income = PGI × (1 − vacancy/collection rate); NOI = EGI − annual operating expenses; then Value = NOI ÷ Cap Rate. Example: $200,000 × 0.95 = $190,000 EGI − $76,000 = $114,000 NOI ÷ $1,425,000 = 8%.Gross Rent Multiplier value estimate
GRM = Comparable Sale Price ÷ Gross (monthly) Rent; Subject Value = GRM × Subject monthly rent. For multi-unit comps, use total monthly rent (units × per-unit rent). Example: $234,000 ÷ $1,800 = 130; 130 × $2,100 = $273,000.Cost approach with straight-line (age-life) depreciation
Annual depreciation = Replacement/Reproduction Cost ÷ total economic life; Total depreciation = annual × effective age; Property Value = (Cost − Total depreciation) + Land value. Example: $520,000 ÷ 40 = $13,000 × 15 = $195,000; $325,000 + $135,000 land = $460,000.Seller's net (minimum sale price)
Sale Price = (Desired net + closing costs) ÷ (1 − commission rate). Example: ($285,000 + $4,200) ÷ 0.945 = $306,032.Simple interest on a note (360-day year)
Interest = Principal × Annual Rate × (Days ÷ 360). Example: $6,500 × 0.08 × (90 ÷ 360) = $130.00.LTV, maximum loan and down payment
LTV is applied to the LOWER of sale price or appraised value: Maximum loan = lower value × LTV%; Down payment = Sale price − maximum loan; LTV = Loan ÷ Purchase price. Example: $305,000 × 0.80 = $244,000; $310,000 − $244,000 = $66,000 down.Area and acreage conversions
1 acre = 43,560 sq ft; Triangle area = ½ × base × height; Rectangle area = length × width; a section = 640 acres, so fractional calls divide successively (NW¼ of SE¼ = 640 ÷ 4 ÷ 4 = 40 acres). Example: ½ × 320 × 250 = 40,000 sq ft ÷ 43,560 = 0.92 acres.Proration of taxes and rent
Daily rate = annual amount ÷ 365 (or monthly rent ÷ 30), then multiply by the days belonging to each party, with the buyer owning the closing day. Example: $5,475 ÷ 365 = $15.00/day × 107 days (Sept 16–Dec 31) = $1,605.00 credit to buyer for prepaid taxes.Acreage adjustment under TREC No. 9-18 Paragraph 3D
Sales Price is adjusted by (stated acres − surveyed acres) × price per acre; if the variance is 10% or less of the Sales Price, neither party may terminate and the adjustment stands. Example: (20 − 18.5) × $12,000 = $18,000 reduction, $240,000 → $222,000 (7.5% variance).