Exam Cheat Sheet · Quick Reference
Texas Real Estate Sales Agent 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
120
40 state + 80 national
Passing score
70%
each portion
Exam time
240 min
≈ 4 hr, one sitting
Administered by
Pearson Vue
Format
Closed-book
Texas State Portion 40 questions
Texas Commission Duties and Powers
3 Q · 8%
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
3 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)
Texas Standards of Conduct
9 Q · 22%
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
11 Q · 28%
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)
Texas Contracts
9 Q · 22%
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
5 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
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
Joint tenancyvsTenancy in common
Joint tenancy carries the right of survivorship (a deceased owner's interest passes automatically to the surviving joint tenants) and requires equal interests, while a tenant in common's interest passes to their heirs and co-owners may hold unequal shares.
Easement appurtenantvsEasement in gross
An easement appurtenant benefits a specific parcel (the dominant estate) and transfers automatically with that land, while an easement in gross benefits a person or entity (such as a utility company) and has no dominant tenement.
CondominiumvsCooperative
A condominium unit owner holds fee simple title to the unit (in severalty) plus an undivided interest in the common elements as a tenant in common, while a cooperative purchaser owns shares of stock (personal property) in the corporation that holds title and receives a proprietary lease for the unit.
Chapter 4 – Forms of Real Estate Ownership, Cooperative ownershipFannie Mae / Freddie MacvsGinnie Mae (GNMA)
Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase mortgages (Fannie Mae primarily conventional loans) in the secondary market, while Ginnie Mae neither buys nor sells loans and instead guarantees securities issued by private offerors and backed by pools of government-insured FHA, VA, and USDA loans.
Unit 13 – Ginnie Mae (operational role distinction)Taking title 'subject to' a mortgagevsAssuming a mortgage
A buyer who takes title subject to the loan is not personally liable for a foreclosure deficiency (the original seller/borrower may remain liable), while an assuming buyer becomes personally obligated on the debt.
Unit 12 – Buying subject to or assuming a seller's mortgagePurchase money mortgage (seller financing)vsLand contract
With a purchase money mortgage the buyer receives legal title immediately and gives the seller a security interest, while under a land contract the seller retains legal title until all payments are made and the buyer holds only equitable title.
Modern Real Estate Practice, Unit 11 – Owner financing contracts (purchase money mortgage vs. land contract)Exclusive agency listingvsExclusive right-to-sell listing
Under an exclusive agency listing the seller keeps the right to sell the property personally without owing a commission, while under an exclusive right-to-sell the broker earns a commission no matter who sells the property.
ClientvsCustomer
Clients receive fiduciary duties such as loyalty, obedience, and confidentiality, while customers are owed only fair and honest dealing and no fiduciary duties.
Fee simple determinablevsFee simple subject to a condition subsequent
Title reverts automatically upon violation in a fee simple determinable, while with a condition subsequent the estate does not end automatically and the holder of the right of reentry must bring a legal action in court.
Chapter 3 – Interests in Real Estate, Fee simple defeasible (condition subsequent)Eminent domainvsInverse condemnation
In eminent domain the government initiates a taking of private property for public use with just compensation, while inverse condemnation is an action the property owner brings seeking compensation when a nearby public project diminishes the property's use and value without a direct taking.
Land-Use Controls and Real Estate Investment, Chapter 20 - Inverse condemnationComminglingvsConversion
Commingling is mixing client money with personal or general business funds (such as depositing earnest money into the broker's operating account), which is always illegal, while conversion is the illegal use of entrusted money.
Real Estate Agency chapter, Accounting (fiduciary duty) sectionDeadline to deposit trust money (22 TAC §535.146(b)(3))vsDeadline to remove broker's own earned funds (22 TAC §535.146(c)(5))
Trust money received must be deposited in a trust account or delivered to an authorized escrow agent by the close of business of the second working day after receipt (unless principals agree otherwise in writing), while money the broker becomes entitled to as compensation must be removed from the trust account no later than the 30th day after acquiring ownership.
22 TAC §535.146(b)(3)Key Terms
Texas Real Estate Commission (composition) TRELA, Texas Occupations Code §1101.051
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
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
The fund from which payments for 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, with a separate $250,000 cap on claims based on judgments against a single license or certificate holder.
Disciplinary panel (temporary suspension) TRELA, Texas Occupations Code §1101.662
A panel of three commission members appointed by the commission's presiding officer that must suspend a license temporarily if the license holder's continued practice would constitute a continuing threat to the public welfare.
Residential rental locator TRELA, Texas Occupations Code §1101.351(a)
A person who for consideration locates a unit in an apartment complex for lease to a prospective tenant; this activity requires a license, unlike an on-site apartment manager, an owner or owner's employee leasing the owner's real estate, or an attorney-in-fact conducting not more than three transactions annually.
Intermediary TRELA (Occ. Code Ch. 1101), Section 1101.559(a)
A broker acting between a seller and buyer in the same transaction, permitted only with written consent from each party that states the source of any expected compensation to the broker.
Team name TREC Rules, 22 TAC §535.154(c)(2)
An exclusive collective name used by sales agents sponsored by the same broker that must end with the word 'team' or 'group' and may not suggest the team offers brokerage services independent of its sponsoring broker.
Trust money 22 TAC §535.146(b)(3)
Money received by a broker on behalf of the principals that, absent a different time expressly agreed in writing by the principals, must be deposited in a trust account or delivered to an authorized escrow agent by the close of business of the second working day after receipt.
Information About Brokerage Services (IABS) notice link TREC Rules, 22 TAC §531.20(b)(1)(B) (TREC No. IABS 1-2)
A link to the completed IABS notice placed in a readily noticeable place on the business website homepage, labeled 'Texas Real Estate Commission Information About Brokerage Services' in at least 10 point font or 'TREC Information About Brokerage Services' in at least 12 point font; it may not be placed in an email footnote or signature block.
Consumer Protection Notice link TREC No. CN 1-5; 22 TAC §531.18(b)(2)(B)
A homepage link on 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.
Canon of Competency TREC Rules, 22 TAC §531.4
The ethical canon requiring a license holder to be informed on local market issues and conditions in the area served, to be informed on national, state, and local industry issues and developments, to exercise judgment and skill in brokerage activities, and to be educated in the characteristics of the specific type of real estate brokered (mortgage underwriting training is not included).
Ministerial acts Modern Real Estate Practice, Unit 9 — Nonagency section (ministerial acts)
The limited, non-advocacy acts of a nonagent/transaction broker who helps both buyer and seller with the necessary paperwork and formalities of transferring ownership without negotiating for either party.
Negligent misrepresentation Unit 9 – Customer-level services / Disclosures
A statement of material fact that the real estate professional should have known was false, made without intentional deception, for which the professional is still liable for resulting damages; fraud requires intent and puffing involves opinion rather than fact.
Statutory nonemployee (independent contractor) status Real Estate Brokerage chapter, Independent Contractor vs. Employee / IRS requirements section
Under 26 U.S.C. 3508, requires three conditions: a current real estate license, a written contract stating the associate will not be treated as an employee for federal tax purposes, and substantially all compensation based on sales production or output rather than hours worked — commission pay and a flexible schedule alone do not establish it.
Negative amortization Unit 12 – Negative Amortization
The process in which a payment cap limits the monthly payment to less than the interest owed, so the unpaid interest is added to the loan balance, causing the balance to increase.
Allocation of markets Real Estate Brokerage chapter, Antitrust Laws / Allocation of customers or markets section
An antitrust violation in which competing brokers agree to divide markets — by geographic area, price range, or housing category — and refrain from competing for each other's business.
Formulas to Know
Seller's net proceeds
Net proceeds = Sale price − (Commission + Seller's closing costs + Mortgage payoff); commission is computed on the gross sale price (e.g., $425,000 × 6% = $25,500).Commission split to a selling agent
Total commission = Sale price × commission rate; Broker's share = Total × split %; Agent's share = Broker's share × agent's % (e.g., $475,000 × 5.5% = $26,125 → ×50% = $13,062.50 → ×70% = $9,143.75).Loan amount, discount points, and origination fee
Loan = LTV % × the LOWER of sale price or appraised value; Discount points = Loan × (points as %, 1 point = 1% of loan); Origination fee = Loan × 1%; Down payment = Sale price − Loan. Points and fees are figured on the loan amount, never the sale price.Total cash a buyer needs at closing
Total cash = Down payment + Discount points + Origination fee + Other closing costs (e.g., $31,000 + $5,580 + $2,790 + $3,200 = $42,570).Prorations (taxes, rent, HOA dues)
Taxes (365-day year): Daily rate = Annual tax ÷ 365; taxes paid in arrears → seller credits buyer for Jan 1 through the stated last day of seller responsibility × daily rate; taxes prepaid → buyer credits seller for closing date through Dec 31 × daily rate. Rent/HOA (30-day month): Daily = Monthly ÷ 30; when the seller already collected/paid for the closing month, credit = remaining days owned by the buyer × daily rate.Gross Rent Multiplier
GRM = Sale price ÷ Monthly gross rent (e.g., $288,000 ÷ $2,400 = 120).Capitalization rate and value by income approach
Effective Gross Income = Gross income × (1 − vacancy rate); NOI = EGI − operating expenses; Cap rate = NOI ÷ Value; Value = NOI ÷ Cap rate (e.g., $96,000 ÷ 0.08 = $1,200,000 vs. $96,000 ÷ 0.10 = $960,000).Cost approach with straight-line depreciation
Annual depreciation = Replacement cost ÷ economic life; Total depreciation = Annual × effective age; Value = (Replacement cost − Total depreciation) + Land value.Monthly PITI (plus PMI) using a payment factor
P&I = Factor per $1,000 × (Loan ÷ 1,000); add Annual taxes ÷ 12 + Annual insurance ÷ 12 (+ Annual PMI ÷ 12).Land area and price per acre (survey measures)
Area (sq ft) = length × width; Acres = sq ft ÷ 43,560; Price = Acres × price per acre. Survey system: 1 section = 1 square mile = 640 acres; 1 township = 6 mi × 6 mi = 36 sections.