Texas — Licensing — Texas Real Estate — State Law Practice Test

This Texas Real Estate — State Law Texas — Licensing practice set has 12 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Texas — Licensing bank with the correct answer and an explanation. The practice quiz above draws 12 questions at random from the same bank.

1. Under TRELA, a person must hold an active Texas real estate license to do which of the following?

   • Negotiate the sale of another person's home in exchange for a commission — Correct answer
   • Sell one's own personally owned home without an agent
   • Give a neighbor a free, uncompensated opinion on a listing price
   • Manage one's own rental property for personal income

   Explanation: TRELA defines a broker as a person who, for another and for compensation (or with the expectation of compensation), performs an act such as selling, listing, leasing, or negotiating real estate for a third party. All three elements — acting for ANOTHER, for COMPENSATION, and as to real estate — must be present, so doing it for a fee on behalf of someone else triggers the license requirement. Brokerage（房地产经纪业务）: acting for another for compensation in a real-estate transaction. (TRELA §1101.002, §1101.351)

   Handbook: Texas Licensing — Acts requiring a real estate license (TRELA §1101.002 / §1101.351)

2. Which of the following persons is EXEMPT from the Texas real estate license requirement under TRELA?

   • An attorney licensed to practice law in Texas, acting in that capacity — Correct answer
   • A sales agent who helps a client buy a home in exchange for a fee
   • An unlicensed assistant who shows listed homes and negotiates offers
   • A person who, for compensation, lists other owners' farms for sale

   Explanation: TRELA's applicability section lists persons the Act does not cover, including an attorney licensed in Texas, an owner selling or leasing the owner's own property, an on-site manager of an apartment complex, and a person acting under a court order (such as an administrator, executor, trustee, or receiver). An ordinary agent helping a client buy a home for a fee is squarely covered and is NOT exempt. Exemption（豁免）: a category of persons to whom the licensing law does not apply. (TRELA §1101.005)

   Handbook: Texas Licensing — Exemptions / applicability of the Act (TRELA §1101.005)

3. A Texas business entity (such as an LLC) that engages in real estate brokerage must do which of the following?

   • Hold its own broker license and designate an active Texas broker who is an officer, manager, or general partner — Correct answer
   • Operate under the personal license of any sales agent it employs
   • Register with the Secretary of State only, with no TREC license needed
   • Designate another licensed business entity to act as its broker

   Explanation: TRELA requires a business entity broker to designate one individual who holds an ACTIVE Texas real estate broker license, in good standing, and who is an officer, manager, or general partner of the entity, to act for it. That person is the entity's designated broker. The entity itself must be licensed; the designated broker cannot be a mere sales agent. Designated broker（指定经纪人）: the licensed individual broker who acts on behalf of a licensed business entity. (TRELA §1101.355; TREC Rule §535.53)

   Handbook: Texas Licensing — Business entity broker & designated broker (TRELA §1101.355 / TREC Rule §535.53)