What are the seven federally protected classes under the Fair Housing Act?

Race, color, national origin, religion, sex, familial status, and disability. The Texas Fair Housing Act generally tracks the same federal protected-class list, though some Texas cities have local ordinances that go further. On the exam, the safest answer about Texas protected classes mirrors the federal list unless the question specifically mentions a city ordinance.

How long does a broker have to deposit or deliver trust money?

Under TREC Rule 535.146, a broker who accepts earnest money or other trust money must deposit it in a trust account or deliver it to an authorized escrow agent by the close of business on the second working day after the broker receives the trust money, unless the principals agree otherwise in writing. This is a broker-handling rule and is distinct from any deadline the contract itself sets for the buyer to deliver earnest money — the exam tests the distinction directly, so know which clock is running.

Can a sales agent hold a trust account?

No. Only a broker may maintain a trust account. A sales agent who receives trust money must immediately deliver it to the sponsoring broker or handle it exactly as the broker directs. This is one of the bright-line rules the exam tests in many forms — any scenario describing a sales agent depositing or keeping trust money is wrong on its face. The rule reflects the broader structure of Texas licensing: a sales agent always acts under the supervision of a sponsoring broker, and the broker — not the agent — carries ultimate responsibility for client funds.

When does lead-based paint disclosure apply?

To target housing built before 1978 — residential property with limited exceptions for housing for the elderly, zero-bedroom units, and certain short-term leases. The seller must disclose known lead-based paint and hazards, provide records, and deliver the "Protect Your Family From Lead" pamphlet. The disclosure obligation falls on the seller; the listing license holder is responsible for ensuring compliance. The buyer must also be offered a 10-day inspection period to test for lead-based paint, which the buyer can waive in writing.

Texas Real Estate Laws & Compliance — Study Guides & Practice Questions

Texas Real Estate Laws & Compliance

The laws module tests the statutory and regulatory framework that license holders operate under in Texas. This means TRELA (the Texas Real Estate License Act), the rules promulgated by TREC (the Texas Real Estate Commission), the federal Fair Housing Act, advertising standards, trust account requirements, and the Texas homestead and landlord-tenant statutes. License holders are expected to know what is required, what is prohibited, and what triggers a disciplinary action — and the exam tests all three. Most of the rules tested here are Texas-specific, which makes this module a strong differentiator between candidates who studied with Texas-focused materials and those who relied on generic national prep. Texas Occupations Code §1101.652 lists the grounds on which TREC may suspend or revoke a license — commingling, misrepresentation, failure to make required disclosures, and similar violations — and the exam expects candidates to recognize the conduct that triggers each. Expect to see scenario questions that combine a rule citation (often a specific Rule 535-series number) with a fact pattern asking whether a given action complies or violates.

Key Subtopics

TRELA — the Texas Real Estate License Act and the conduct it requires of license holders. TRELA is the umbrella statute that defines licensing categories, regulates conduct, and authorizes TREC enforcement.
TREC rules under 22 Texas Administrative Code — including advertising, trust accounts, and broker supervision. The 535-series rules are where most exam-relevant detail lives, and candidates should be able to associate the rule number with its topic.
Fair Housing Act — the seven protected classes federally and additional state-level protections. The federal protected classes are race, color, national origin, religion, sex, familial status, and disability; the Texas Fair Housing Act generally tracks the same list.
Texas homestead protections and the property-tax exemption. The homestead carries multiple protections (creditor protection, tax exemption, restrictions on home-equity lending) — the exam tests whether you can distinguish them.
Texas Property Code Chapter 92 — the landlord-tenant statute. Chapter 92 governs residential leases and includes the security-deposit timeline, the bad-faith withholding penalty, the repair duty, and required security devices.
Required disclosures, including the Seller's Disclosure Notice (Tex. Prop. Code §5.008) and lead-based paint under Title X for pre-1978 housing. Disclosure timing and exemptions are both tested.
Ethics, license discipline, and the most common rule violations TREC enforces. Commingling, failure to deposit trust money on time, and misrepresentation are the recurring exam scenarios.

Study This Cluster

Laws and compliance is rule-dense, and the most efficient path is to study by topic (trust accounts, fair housing, landlord-tenant, homestead, disclosures) rather than by statute number. Once you can describe what each rule requires in plain language, the rule numbers become anchors rather than memorization tasks. Use the cluster articles to build that conceptual map, then test under timed conditions.

License Law: Key Rules — the TRELA and TREC rules license holders are tested on most often.
Homestead Exemption & Property Tax — the Texas homestead protections and how the exemption is claimed.
Landlord-Tenant Law — Texas Property Code Chapter 92 in exam-relevant detail.
Lead-Based Paint Disclosure — the federal Title X disclosure required on pre-1978 housing.
Escrow & Trust Accounts — broker handling of trust money under TREC Rule 535.146.
Laws & Compliance Practice Questions — timed practice with full explanations.

Frequently Asked Questions

What are the seven federally protected classes under the Fair Housing Act?: Race, color, national origin, religion, sex, familial status, and disability. The Texas Fair Housing Act generally tracks the same federal protected-class list, though some Texas cities have local ordinances that go further. On the exam, the safest answer about Texas protected classes mirrors the federal list unless the question specifically mentions a city ordinance.
How long does a broker have to deposit or deliver trust money?: Under TREC Rule 535.146, a broker who accepts earnest money or other trust money must deposit it in a trust account or deliver it to an authorized escrow agent by the close of business on the second working day after the broker receives the trust money, unless the principals agree otherwise in writing. This is a broker-handling rule and is distinct from any deadline the contract itself sets for the buyer to deliver earnest money — the exam tests the distinction directly, so know which clock is running.
Can a sales agent hold a trust account?: No. Only a broker may maintain a trust account. A sales agent who receives trust money must immediately deliver it to the sponsoring broker or handle it exactly as the broker directs. This is one of the bright-line rules the exam tests in many forms — any scenario describing a sales agent depositing or keeping trust money is wrong on its face. The rule reflects the broader structure of Texas licensing: a sales agent always acts under the supervision of a sponsoring broker, and the broker — not the agent — carries ultimate responsibility for client funds.
When does lead-based paint disclosure apply?: To target housing built before 1978 — residential property with limited exceptions for housing for the elderly, zero-bedroom units, and certain short-term leases. The seller must disclose known lead-based paint and hazards, provide records, and deliver the "Protect Your Family From Lead" pamphlet. The disclosure obligation falls on the seller; the listing license holder is responsible for ensuring compliance. The buyer must also be offered a 10-day inspection period to test for lead-based paint, which the buyer can waive in writing.

Bottom Line

Laws and compliance is one of the most rule-dense modules on the exam, and most of the rules are Texas-specific — TRELA, the TREC 535-series rules, Texas Property Code Chapter 92, and the homestead provisions. Candidates who can name the rule, state what it requires, and recognize the most common violations will outperform those relying on general fair housing material. The trust-money trigger (broker receives, not contract executed) and the seven federal protected classes are two items worth committing to memory verbatim. For the full module weighting, see the Texas exam blueprint.