What Is TREC? The Texas Real Estate Commission Explained
The Texas Real Estate Commission (TREC) is the state agency responsible for licensing and regulating real estate professionals in Texas. Established in 1949, TREC oversees more than 150,000 active license holders across the state, making it one of the largest real estate regulatory bodies in the United States.
TREC''s primary mission is to protect consumers in real estate transactions. The agency sets education standards, approves pre-license and continuing education providers, enforces the Texas Real Estate License Act (TRELA), and disciplines license holders who violate professional conduct standards. TREC also promulgates standard contract forms that licensed agents and brokers are required to use in Texas real estate transactions.
Headquartered in Austin, Texas, TREC is governed by nine commissioners appointed by the governor — six license holders and three public members. The commission oversees several regulatory programs including real estate salesperson and broker licensing, real estate inspector licensing, and the timeshare registration program.
Texas Real Estate License Exam: Format and Requirements
Before you can practice real estate in Texas, you must pass the Texas Real Estate Salesperson Licensing Exam, administered by Pearson VUE on behalf of TREC. Understanding the exam format is the first step toward building an effective study plan.
Exam Structure
- Total questions: 125 (scored) + 10 unscored pilot questions
- National portion: 85 questions
- State portion: 40 questions
- Time limit: 150 minutes total (105 minutes national, 45 minutes state)
- Passing score: 70% on each portion (60 of 85 national, 28 of 40 state)
- Format: Computer-based, multiple choice
- Testing centers: Available throughout Texas at Pearson VUE locations
Candidates must pass both portions to receive a passing result. If you fail one portion, you only need to retake the failed section. You have one year from the date of your eligibility notice to pass both portions, and you may attempt the exam up to five times during that period.
Exam Fees
The current exam fee is $43 per attempt, paid directly to Pearson VUE at the time of scheduling. This fee is non-refundable and applies whether you take one portion or both.
National Portion Topics
The 85-question national portion of the Texas real estate exam covers real estate principles and practices that apply across the United States. The national content is organized into eight major knowledge areas:
1. Property Ownership (7-9 questions)
Topics include classes of property, types of ownership (fee simple, life estate, joint tenancy, tenancy in common), water rights, air rights, mineral rights, and government powers including eminent domain, police power, taxation, and escheat.
2. Land Use Controls and Regulations (5-7 questions)
This section covers zoning laws, building codes, environmental regulations, deed restrictions, and subdivision requirements. You should understand how government and private entities restrict the use of land and how those restrictions affect property values and marketability.
3. Valuation and Market Analysis (7-9 questions)
Expect questions on appraisal principles, the three approaches to value (sales comparison, cost, and income), market conditions, competitive market analysis (CMA), and property depreciation. Understanding the difference between market value and market price is essential.
4. Financing (8-10 questions)
This knowledge area covers mortgage types (conventional, FHA, VA, USDA), loan-to-value ratios, the Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act (RESPA), qualifying ratios, foreclosure processes, and types of liens.
5. General Principles of Agency (9-11 questions)
One of the heaviest-weighted sections, covering fiduciary duties (loyalty, obedience, disclosure, confidentiality, accounting, reasonable care), types of agency relationships, agency creation and termination, dual agency, and buyer representation agreements.
6. Property Disclosures (5-7 questions)
Material facts, stigmatized properties, lead-based paint disclosure requirements, seller''s disclosure of property condition, environmental hazards (radon, asbestos, mold, underground storage tanks), and flood zone disclosure requirements.
7. Contracts (12-14 questions)
The largest content area on the national portion. Topics include essential elements of a valid contract, offer and acceptance, consideration, earnest money, contingencies, contract performance, breach and remedies, options, lease agreements, and listing agreements (exclusive right to sell, exclusive agency, open listing, net listing).
8. Transfer of Title (5-7 questions)
Deeds (warranty, quitclaim, special warranty), title insurance, closing procedures, proration calculations, RESPA requirements, HUD-1 settlement statements, recording requirements, and title searches.
9. Practice of Real Estate (8-10 questions)
License law overview, fair housing laws (Civil Rights Act of 1968, Fair Housing Act, ADA), anti-trust regulations (price fixing, market allocation, tie-in agreements), MLS rules, advertising requirements, and property management basics.
10. Real Estate Calculations (8-10 questions)
Math problems including commission calculations, proration of taxes and rent, mortgage payments, loan qualification, capitalization rate, net operating income, depreciation, and area/volume calculations. Having a solid grasp of real estate math can significantly boost your score.
Texas State Portion Topics
The 40-question state portion tests your knowledge of laws and regulations specific to Texas real estate practice. These questions are based entirely on Texas statutes, TREC rules, and Texas-specific practices.
Texas Real Estate License Act (TRELA)
TRELA is the foundational law governing real estate licensing in Texas. The exam tests knowledge of who must hold a license, exemptions from licensing requirements, license term and renewal, continuing education requirements, and grounds for disciplinary action.
TREC Rules (22 TAC)
TREC''s administrative rules are codified in Title 22 of the Texas Administrative Code. Key topics include advertising standards (TREC Rule 535.155), supervision requirements for brokers, mandatory disclosure forms, records retention (four years for all transaction-related documents), and the Inspector Standards of Practice.
Agency Relationships in Texas
Texas requires agents to provide the Information About Brokerage Services (IABS) form to prospective buyers and sellers before the first substantive discussion of real property. Texas recognizes intermediary brokerage, which allows one broker to represent both buyer and seller in the same transaction with written consent from all parties.
TREC Promulgated Contract Forms
Texas licensees must use TREC-promulgated forms unless a specific exception applies. The exam tests knowledge of the One to Four Family Residential Contract (Resale), the New Home Contract, the Farm and Ranch Contract, and the Unimproved Property Contract. Understanding the blank spaces that licensees may fill in versus those only attorneys can complete is critical.
Earnest Money and Option Fee
Texas contracts have a unique two-step approach. Earnest money must be delivered to the title company within three days of contract execution. The option period (and accompanying option fee paid directly to the seller) gives buyers the unrestricted right to terminate during that window — a Texas-specific feature not found in most other states.
Texas Property Code
The Seller''s Disclosure Notice requirements, the Condominium Act, homeowners association (HOA) disclosure rules, and the Texas Property Code''s provisions on landlord-tenant relationships are all fair game on the state portion.
Deceptive Trade Practices Act (DTPA)
Texas''s DTPA gives consumers powerful remedies against deceptive business practices, including real estate misrepresentations. License holders can face DTPA liability in addition to TREC disciplinary action.
TREC Licensing Requirements
Passing the exam is just one step in obtaining your Texas real estate salesperson license. Here is the complete pathway:
- Meet eligibility requirements: You must be at least 18 years old, be a U.S. citizen or lawfully admitted alien, and be a legal Texas resident (or plan to become one).
- Complete 180 hours of pre-license education: TREC requires six specific courses totaling 180 hours: Principles of Real Estate I (30 hrs), Principles of Real Estate II (30 hrs), Law of Agency (30 hrs), Law of Contracts (30 hrs), Promulgated Contract Forms (30 hrs), and Real Estate Finance (30 hrs). These must be completed at a TREC-approved provider.
- Submit your license application: Apply through TREC''s online portal and pay the $185 application fee. You must submit your application before you can receive an eligibility notice to sit for the exam.
- Pass a background check: TREC requires fingerprinting through MorphoTrust (now IDEMIA). The background check looks at criminal history, and certain offenses can result in denial. You may request a Fitness Determination from TREC before investing in coursework if you have a criminal record.
- Pass the licensing exam: Schedule and pass both the national and state portions of the Pearson VUE exam with a minimum score of 70% on each.
- Find a sponsoring broker: A salesperson license in Texas must be sponsored by a licensed Texas real estate broker. You cannot activate your license or practice real estate until you have an active sponsoring broker.
- Submit proof of errors and omissions (E&O) insurance (if required by your broker''s policy) and complete the license activation through TREC''s portal.
From application to active license, the process typically takes two to six months depending on how quickly you complete coursework, schedule the exam, and find a broker.
How to Study for the Texas Real Estate Exam
Most candidates spend 80 to 120 hours studying before sitting for the Texas real estate licensing exam. The following strategies are proven to improve pass rates:
Start with Your Pre-License Course Material
Your 180-hour pre-license coursework is the foundation. Do not rush through it. Take notes, review chapter summaries, and make sure you understand — not just memorize — the key concepts in contracts, agency, and finance before you attempt practice tests.
Use Practice Tests Strategically
Practice tests are one of the most effective study tools available. They help you identify knowledge gaps, build exam stamina, and get comfortable with the multiple-choice format. Our 19 free TREC practice quizzes below cover every major topic area including licensing rules, regulation, contract forms, ethics, advertising, and the complaint process. Use them to simulate exam conditions: time yourself, avoid looking up answers mid-quiz, and review every question you miss.
Focus on High-Weight Topics
Based on the exam content outline, prioritize contracts (national) and TREC promulgated forms (state). These two areas alone can account for 20-25% of your total score. Agency relationships and real estate calculations are also disproportionately represented and reward consistent study.
Master Texas-Specific Rules
Many candidates who pass the national portion still fail the state portion because they underestimate how Texas-specific the state questions are. Study TREC rules (22 TAC Chapter 535), the IABS form, the option period, intermediary brokerage, and TREC''s advertising compliance rules in depth.
Build a Study Schedule
Aim for two to three hours of focused study per day. Create a schedule that covers all content areas in the two weeks before your exam, with the final three days dedicated entirely to practice tests and reviewing your weakest areas.
Understand, Don''t Memorize
TREC exam questions are designed to test application, not rote recall. Scenarios and situational questions ("An agent receives an offer from a buyer while already representing the seller — what must the agent disclose?") are common. Focus on understanding why a rule exists and how it applies in practice.
Free TREC Practice Tests
PracticeTestGeeks offers 19 free TREC practice tests covering all the key content areas tested on the Texas real estate licensing exam. Each quiz includes detailed answer explanations so you learn from every question — right or wrong.
- TREC Licensing Questions and Answers — covers eligibility, applications, license types, renewal, and CE requirements
- TREC Regulation Questions and Answers — TRELA provisions, TREC rules (22 TAC), disciplinary actions, and license holder duties
- TREC Education Questions and Answers — pre-license hour requirements, approved providers, CE topics, and SAE requirements
- TREC Consumer Protection Questions and Answers — IABS form, disclosure duties, broker supervision, and consumer rights
- TREC Contract Forms (Set 1) — One to Four Family Residential Contract, promulgated addenda, and blank completion rules
- TREC Contract Forms (Set 2) — Farm and Ranch Contract, Unimproved Property Contract, and New Home Contract provisions
- TREC Contract Forms (Set 3) — option period, earnest money delivery, and contract amendments
- TREC Ethics and Professional Conduct (Set 1) — fiduciary duties, conflicts of interest, and NAR Code of Ethics
- TREC Ethics and Professional Conduct (Set 2) — dual agency, intermediary brokerage, and misrepresentation scenarios
- TREC Ethics and Professional Conduct (Set 3) — disciplinary case studies and complaint resolution
- TREC Real Estate Inspections (Set 1) — Standards of Practice, inspector licensing, and report requirements
- TREC Real Estate Inspections (Set 2) — structural components, electrical systems, and plumbing inspections
- TREC Real Estate Inspections (Set 3) — HVAC, roofing, and appliance inspection standards
- TREC Advertising Rules (Set 1) — Rule 535.155, required disclosures in ads, and team name rules
- TREC Advertising Rules (Set 2) — social media compliance, website requirements, and testimonials
- TREC Advertising Rules (Set 3) — misleading advertising, penalty scenarios, and recent rule changes
- TREC Complaint and Enforcement Process (Set 1) — how to file a complaint, investigation timeline, and informal conference
- TREC Complaint and Enforcement Process (Set 2) — sanctions, license revocation, and reinstatement procedures
- TREC Complaint and Enforcement Process (Set 3) — common violations, top complaint categories, and SOAH hearings
Texas Real Estate Agent Salary and Market Outlook
Texas has one of the most active real estate markets in the country, and the long-term outlook for licensed agents remains strong despite cyclical fluctuations in interest rates.
Earning Potential
According to the Bureau of Labor Statistics and Texas Workforce Commission data, the median annual income for real estate agents in Texas ranges from $55,000 to $85,000, with top producers in major metros earning significantly more. Keep in mind that real estate income is commission-based, so your earnings will depend heavily on your market, your brokerage''s split, and your personal production volume.
New agents typically take six to twelve months to close their first transaction and build a pipeline. Most brokerages offer a training period, and many new agents benefit from joining a team where leads and mentorship are provided in exchange for a higher commission split.
Texas Real Estate Markets
Texas''s major metros — Dallas-Fort Worth, Houston, San Antonio, and Austin — consistently rank among the nation''s busiest real estate markets. Texas has no state income tax, a business-friendly regulatory environment, and strong population growth driven by in-migration from California, New York, and Illinois, which continues to fuel housing demand across the state.
Broker License and Career Advancement
After working as a salesperson for at least four years and completing additional education (270 hours of qualifying education plus 630 hours of related course work), you can apply for a Texas real estate broker license. Brokers can operate their own firm, sponsor other agents, and earn income from both personal production and agent splits. The broker license is a significant career milestone that opens the door to brokerage ownership and management.
Continuing Education Requirements
To maintain an active Texas real estate salesperson license, you must complete 18 hours of continuing education every two years, including 4 hours of TREC Legal Update I, 4 hours of TREC Legal Update II, and 10 hours of elective CE. Your first renewal also requires Salesperson Apprentice Education (SAE) — an additional 270 hours of qualifying education completed during your first two renewal periods.
Frequently Asked Questions About the TREC Exam
How many questions are on the Texas real estate exam?
The Texas real estate salesperson exam contains 125 scored questions plus 10 unscored pilot questions, for a total of 135 questions. The 125 scored questions are divided into 85 on the national portion and 40 on the Texas state portion. You will not know which questions are unscored pilot questions.
What is the passing score for the Texas real estate exam?
You must score at least 70% on each portion separately to pass. That means a minimum of 60 correct answers on the 85-question national portion and 28 correct answers on the 40-question state portion. You cannot average the two scores — both must meet the 70% threshold.
How long do I have to complete the Texas real estate exam?
You have 150 minutes total — 105 minutes for the national portion and 45 minutes for the state portion. The sections are timed independently. Most candidates have enough time to complete both portions without rushing, but building exam stamina through timed practice tests is still recommended.
How many times can I take the Texas real estate exam?
You may attempt the exam up to five times within one year from the date your eligibility notice is issued. If you fail all five attempts, you must complete additional pre-license education before reapplying. Each attempt costs $43, paid to Pearson VUE.
What are the 180-hour education requirements for Texas real estate?
TREC requires six courses, each 30 hours: Principles of Real Estate I, Principles of Real Estate II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance. All courses must be completed at a TREC-approved education provider. Many providers offer online coursework that can be completed at your own pace.
What is the option period on a Texas real estate contract?
The option period is a Texas-specific contract provision that gives the buyer an unrestricted right to terminate the contract within a negotiated number of days (typically 5-10) after execution. In exchange for this right, the buyer pays the seller a negotiated option fee (typically $100-$500), which is paid directly to the seller and is generally not refundable but may be credited toward the purchase price at closing.
What is intermediary brokerage in Texas?
Intermediary brokerage occurs when one Texas real estate broker represents both the buyer and the seller in the same transaction. This is permitted only with written consent from both parties. The intermediary broker may appoint separate licensed associates to work with each party. Unlike dual agency in other states, Texas''s intermediary model has specific rules about what the broker and associates can and cannot advise each party.
How long does a Texas real estate license background check take?
The TREC background check through IDEMIA (fingerprinting) typically takes two to four weeks to process. However, if your criminal history requires further review, the process can take longer. TREC recommends submitting your fingerprints as early as possible — you can do so before completing all your coursework. If you have a prior criminal record, consider requesting a Fitness Determination from TREC before investing in education.
What are TREC''s advertising rules for Texas real estate agents?
Under TREC Rule 535.155, all real estate advertising must include the licensed broker''s name and the broker''s license number. Advertisements cannot be misleading, and agent teams must advertise under the broker''s name. Social media profiles used for real estate promotion are considered advertising and must comply with all TREC disclosure requirements. Violations of advertising rules are among the top complaint categories received by TREC each year.
What is the difference between a TREC salesperson and a broker license in Texas?
A salesperson license allows you to assist clients in buying and selling real estate, but only under the supervision of a licensed broker. A broker license allows you to operate independently, open your own firm, and sponsor other agents. To qualify for a Texas broker license, you must have been actively licensed as a salesperson for at least four years, complete additional qualifying education (270 hours), accumulate points through real estate transaction experience, and pass the broker licensing exam.
Conclusion
The TREC licensing exam is a rigorous but achievable milestone on the path to a rewarding real estate career in Texas. With the right preparation — completing your 180-hour pre-license education, understanding both the national and Texas-specific content, and using targeted practice tests to identify and close knowledge gaps — most candidates can pass on their first attempt.
Our 19 free TREC practice tests cover every major topic area tested by TREC, from contract forms and advertising rules to ethics, inspections, and the complaint process. Start with the licensing and regulation quizzes to build your foundational knowledge, then work through the contract forms and ethics sets as your exam date approaches. Each question comes with a detailed explanation designed to reinforce the underlying rule — not just the right answer.
Texas''s real estate market offers exceptional earning potential and long-term career growth. Take the first step today: work through our free practice tests, identify your weak spots, and go into your Pearson VUE exam with confidence.