Texas Real Estate Exam: Your Path to a TREC License

The Texas real estate licensing exam, overseen by the Texas Real Estate Commission (TREC), is a two-part examination that tests candidates on both national concepts and Texas-specific law and practice. The full exam includes 85 national questions and 40 state-specific questions for a total of 125 questions, with a passing threshold of 70% on each portion — meaning you must pass both sections independently; a strong national score cannot offset a failing state score. The Texas Real Estate License Act (TRELA) is the foundational statute governing real estate practice in the state, and its detailed provisions — covering everything from license eligibility and renewal to prohibited conduct and disciplinary procedures — form the backbone of the state exam.

One of the most distinctive features of Texas real estate practice is TREC's system of promulgated forms. Unlike most states where agents use forms drafted by local or state Realtor associations, TREC itself promulgates mandatory contract forms that licensees must use for most residential transactions. These include the One-to-Four Family Residential Contract (Resale), the Residential Condominium Contract, the Farm and Ranch Contract, and multiple addenda covering everything from third-party financing to seller financing and environmental assessments. Knowing when each form is required, which addenda apply in specific situations, and the key provisions within each form is a major emphasis area on the exam.

Texas candidates must also master the state's robust homestead protections, which are among the strongest in the nation. The Texas Constitution provides an unlimited dollar-value exemption for urban homesteads (up to 10 acres) and rural homesteads (up to 200 acres for a family), protecting a homeowner's primary residence from most creditors. Understanding how homestead rights affect financing, refinancing, and foreclosure is critical — especially the rule that a homestead cannot be used as collateral for a home equity loan unless strict constitutional requirements are met. Texas is also a community property state, meaning that property acquired during marriage is generally owned equally by both spouses regardless of whose name is on the title — a concept that affects listing agreements, sales contracts, and deeds. The Deceptive Trade Practices Act (DTPA), which allows consumers to sue for misleading or fraudulent business practices (including by real estate licensees), is another exam staple. This 50-question Texas practice test covers all of these topics and more, giving you the targeted preparation you need to pass the TREC exam with confidence.