Texas — Agency & Brokerage — Texas Real Estate — State Law Practice Test

This Texas Real Estate — State Law Texas — Agency & Brokerage practice set has 44 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Texas — Agency & Brokerage bank with the correct answer and an explanation. The practice quiz above draws 30 questions at random from the same bank.

1. Under Texas law, when must a license holder provide the written Information About Brokerage Services (IABS) notice to a party?

   • At the time of the first substantive communication with the party about a proposed transaction regarding specific property — Correct answer
   • Only at the closing of the transaction
   • Only when a sales contract is signed
   • Within three days after the buyer makes an offer

   Explanation: TRELA §1101.558(b-1) requires the written IABS notice at the time of the first SUBSTANTIVE communication with a party about a proposed transaction regarding specific real property. IABS（经纪服务信息告知书 / Information About Brokerage Services）: a TREC-prescribed notice explaining how a Texas broker may represent the parties. Source: TRELA §1101.558(b-1).

   Handbook: Texas Agency/Brokerage — IABS timing (TRELA §1101.558(b-1))

2. What is the primary purpose of the Texas IABS (Information About Brokerage Services) notice?

   • To inform the consumer how a broker may represent the parties and of the broker's basic duties; it is not a contract — Correct answer
   • To bind the consumer to use that broker as the buyer's agent
   • To disclose the seller's bottom-line acceptable price
   • To serve as the earnest-money receipt for the transaction

   Explanation: The IABS notice educates the consumer about how a Texas broker may represent the parties (seller agent, buyer agent, or intermediary) and the broker's basic duties; it is informational and is NOT a contract or an agreement to representation. IABS（经纪服务信息告知书）: consumer-education notice, not a representation agreement. Source: TRELA §1101.558(b-1); TREC IABS form.

   Handbook: Texas Agency/Brokerage — IABS purpose (TRELA §1101.558 / TREC IABS form)

3. In Texas, when is a license holder NOT required to provide the written IABS notice?

   • At an open house, when the communication concerns only that specific property — Correct answer
   • When meeting an unrepresented buyer to discuss listing their home
   • Whenever the transaction is for commercial property
   • When the buyer pays the broker directly rather than the seller

   Explanation: TRELA §1101.558(c) exempts the written IABS notice for: a residential lease for not more than one year with no sale being negotiated, a meeting with a party already represented by another license holder, and an open-house communication about that property. IABS（经纪服务信息告知书）: required at first substantive communication EXCEPT in these listed situations. Source: TRELA §1101.558(c).

   Handbook: Texas Agency/Brokerage — IABS exceptions (TRELA §1101.558(c))