TREC Rules: What the Texas Real Estate Commission Requires of Agents and Brokers

TREC Rules: What the Texas Real Estate Commission Governs

The Texas Real Estate Commission (TREC) is the state agency that licenses and regulates real estate professionals in Texas. TREC rules — formally the Texas Administrative Code Title 22, Part 23 — cover everything from how you qualify for a license to how you must behave in transactions, what contract forms you're required to use, and what continuing education you must complete to keep your license active.

Understanding TREC rules isn't just important for the Texas real estate exam; it's the foundation of how every licensed agent and broker in Texas must operate day-to-day. TREC updates its rules regularly through the rulemaking process, which includes public comment periods and Commission approval — agents who ignore rule changes risk inadvertent violations even in routine transactions.

TREC was established by the Real Estate License Act in 1939 and reorganized under the Texas Occupations Code. The Commission consists of nine members appointed by the governor: six real estate brokers and three members of the public. TREC's authority covers sales agents, brokers, inspectors, timeshare developers, and easement agents. Each license type has its own education requirements, examination, and ongoing obligations — and each is subject to TREC's enforcement authority, including the ability to suspend or revoke licenses for rule violations.

TREC rules govern the full lifecycle of a Texas real estate license: initial application and education requirements, examination, sponsorship rules for sales agents, post-licensing education, continuing education for renewals, advertising standards, recordkeeping obligations, and professional conduct standards including the Canons of Professional Ethics. This guide covers the major TREC rule categories that every Texas license holder — and every candidate preparing for the Texas real estate exam — should know. Links to the texas real estate commission license database are available for verifying current license status.

TREC Licensing Rules: Sales Agent and Broker Requirements

TREC rules establish separate licensing tracks for sales agents and brokers, each with its own education, experience, and examination requirements. Knowing these rules is essential both for candidates pursuing a Texas real estate license and for licensed agents who want to understand what it takes to upgrade to a broker license. Texas has one of the more rigorous pre-license education requirements in the country at 180 hours for sales agents — many states require only 40 to 75 hours — which reflects TREC's emphasis on ensuring new licensees understand Texas-specific law and practice before entering the market.

To obtain a Texas Sales Agent License, applicants must complete 180 hours of TREC-approved pre-licensing education. These 180 hours are divided into six mandatory courses: Principles of Real Estate I (30 hours), Principles of Real Estate II (30 hours), Law of Agency (30 hours), Law of Contracts (30 hours), Promulgated Contract Forms (30 hours), and Real Estate Finance (30 hours). After completing education, applicants must pass both the national and state portions of the Texas Real Estate Sales Agent exam.

A passing score is typically 70% or higher. Once licensed, a sales agent must work under a sponsoring broker — TREC rules require that a new sales agent be sponsored before they can engage in real estate activity. Sponsorship must occur within 6 months of passing the exam or the license expires.

After receiving a sales agent license, TREC requires completion of 98 hours of Sales Apprentice Education (SAE) before the first two renewals. SAE must include the Legal Update I and Legal Update II courses. Post-licensing education is separate from continuing education requirements that apply in later renewal cycles. The first renewal is at two years; subsequent renewals are every two years as well.

To qualify for a Texas Broker License, an applicant must have held an active sales agent license for at least four years within the preceding five years. The applicant must have completed at least 900 hours of qualifying real estate education, which includes the 180 hours required for a sales agent license plus an additional 630 hours of advanced education in specific subjects.

Broker applicants must also pass the broker examination, which covers both national real estate content and Texas-specific brokerage law and practices. A passing score is required on both portions. See requirements for a real estate license in Texas for the complete qualification checklist.

TREC also licenses real estate inspectors at multiple levels. A Real Estate Inspector must complete 154 hours of qualifying education and work under a Professional Real Estate Inspector. A Professional Inspector requires 448 hours of education plus field experience. Both must pass the Texas Real Estate Inspectors examination. Inspector licensing is governed separately from sales and broker licensing under Texas Occupations Code Chapter 1102 but still falls directly under TREC's enforcement authority and disciplinary process.

TREC Promulgated Contract Forms: What Agents Must Use

One of the most important TREC rules for practicing agents is the requirement to use TREC-promulgated contract forms. TREC has authority under Texas Occupations Code §1101.155 to promulgate — meaning create and require the use of — standard contract forms for real estate transactions. When a promulgated form exists for a type of transaction, a licensed agent or broker generally must use it.

Using a non-TREC form when a promulgated form exists, or modifying a promulgated form beyond what TREC permits, is a rule violation that can result in disciplinary action. The promulgated forms requirement is one of the most tested areas on the Texas real estate exam because it's unique to Texas — most states don't mandate specific contract forms the way TREC does.

The most frequently used TREC promulgated form is the One to Four Family Residential Contract (Resale), TREC Form No. 20-16. This is the standard form for resale purchases of single-family homes, duplexes, triplexes, or fourplexes in Texas.

Other promulgated forms include the New Home Contract (Completed Construction), Condominium Contract, Farm and Ranch Contract, and various addenda including the Third Party Financing Addendum, Seller's Disclosure Notice, and Addendum for Sale of Other Property by Buyer. TREC updates these forms periodically; agents are required to use the most current published version. Outdated forms should not be used once TREC has published a replacement.

TREC rules permit agents to use addenda or special provisions to customize a promulgated contract, but with strict limits. Special provisions may only be used to add factual statements and business details that are not covered by the standard form. They cannot be used to change the legal effect of the contract terms, and agents cannot practice law by drafting custom legal provisions.

If specialized legal terms are needed, the parties must use an attorney-prepared addendum. Understanding the scope of what can and cannot be added in the Special Provisions section is a frequently tested topic on the Texas real estate exam. You can view current texas real estate promulgated forms on the TREC website, where all current versions are publicly available.

TREC Canons of Professional Ethics and Conduct

TREC rules include the Canons of Professional Ethics and Conduct, which are the professional standards all licensees must follow in their real estate activities. The Canons are codified in 22 Texas Administrative Code §531.1 and cover the core duties of fidelity, integrity, competency, consumer information, and TREC rule compliance. Violations of the Canons can result in disciplinary action including license suspension or revocation. The Texas real estate exam tests knowledge of the Canons extensively — understanding what each Canon requires is essential for both exam success and ethical practice.

The Canon of Fidelity requires that licensees protect and promote the interests of the client. When an agent represents a buyer or seller, fiduciary-like duties attach — the agent must put the client's interests above their own and must not take actions that benefit themselves or third parties at the client's expense.

The Canon of Integrity requires that agents deal honestly with all parties, not just their own clients. An agent cannot misrepresent material facts to an opposing party even if doing so might benefit the agent's client. Deception, fraudulent misrepresentation, and failure to disclose known material defects are violations of this Canon.

The Canon of Competency requires that agents only undertake transactions for which they have the necessary knowledge, skill, and resources. If a licensee lacks expertise for a particular transaction type — say, a highly complex commercial lease — the agent must either obtain competent assistance or refer the client to someone who can handle the transaction competently.

This Canon also requires agents to keep current with changes in real estate law and practice through continuing education, which is why TREC mandates Legal Update CE courses in every renewal cycle. The trec real estate licensing rules are updated periodically, and staying current is part of licensees' competency obligation.

TREC rules also require licensees to provide certain consumer disclosures. The Consumer Protection Notice must be provided to clients at the time of the first substantive communication. The Information About Brokerage Services (IABS) form must be provided before a licensee provides substantive real estate services. These disclosure requirements exist to ensure consumers understand the nature of the representation they're receiving and their rights in a Texas real estate transaction.

TREC Advertising Rules for Agents and Brokers

TREC has detailed rules governing how licensed agents and brokers may advertise real estate services and listings. These rules apply to all advertising media — print, digital, social media, signage, and business cards — and non-compliance can result in TREC disciplinary action. The advertising rules are designed to ensure consumers can identify who is responsible for an advertisement and can verify that the person advertising is actually licensed in Texas. TREC's enforcement division actively monitors advertising compliance, and advertising violations are among the most common reasons for TREC disciplinary action against sales agents.

Under 22 TAC §535.155, all advertising by a sales agent or broker must include the broker's name (or assumed business name) as prominently as any other name used in the advertisement. A sales agent cannot advertise in a way that makes it appear they are an independent broker.

If a sales agent uses a team name or a personal branding name in advertising, the sponsoring broker's name must still appear prominently. The broker's name cannot be buried in small print at the bottom while the agent's personal brand appears in large text — TREC has enforced this requirement aggressively in recent years as agent personal branding has become more common.

Advertising must not be deceptive or misleading. Claims about properties, services, or the agent's qualifications must be accurate and substantiated. Agents may not advertise a property without authorization from the property owner or their agent. For internet advertising, the same rules apply — TREC's advertising requirements extend to websites, social media profiles, online listings, and any digital medium. Real estate license renewal requires completion of the Legal Update courses, which cover current advertising rule changes each cycle.

TREC Continuing Education Requirements

TREC rules require all active sales agents and brokers to complete continuing education (CE) as a condition of license renewal. CE is not optional — failure to complete the required hours before the license expiration date results in an expired license, and an agent cannot legally practice real estate in Texas on an expired license. TREC's online licensing portal (mylicense.texas.gov) tracks CE completion in real time as providers report completions, so agents can verify their CE hours are properly recorded well before the renewal deadline.

The standard CE requirement for sales agents is 18 hours per two-year renewal cycle. These 18 hours must include: 4 hours of Legal Update I, 4 hours of Legal Update II, 3 hours of contract-related coursework, and 7 hours of elective CE approved by TREC. The Legal Update courses are mandatory because they cover changes in Texas real estate law, Commission rules, and case law from each two-year period — ensuring that every active licensee stays current with the rules they must follow.

Brokers who sponsor sales agents must complete an additional 6 hours of Broker Responsibility CE, for a total of 24 hours per renewal cycle. The Broker Responsibility course covers the supervisory obligations of a sponsoring broker, including duties to supervise sponsored agents, proper handling of trust funds, record retention requirements, and the broker's liability for agent conduct. TREC introduced the mandatory Broker Responsibility requirement in response to enforcement cases involving brokers who claimed ignorance of agent misconduct occurring in their sponsored agents' transactions.

CE hours must be completed through TREC-approved education providers. Hours cannot be carried over from one renewal period to the next — if you complete more than 18 hours in a cycle, the excess doesn't apply to the next renewal. All CE must be completed before the license expiration date. TREC does not grant automatic grace periods for late CE — an expired license requires either reinstatement (within a grace period) or re-application from scratch, depending on how long the license has been expired. The trec license renewal process requires CE completion before submitting the renewal application.

TREC also allows CE credit for teaching approved courses. A licensee who teaches a TREC-approved CE course can receive CE credit for the hours taught. This provides an incentive for experienced agents and brokers to contribute to the education of newer licensees while maintaining their own CE compliance.