Texas Real Estate Laws & Compliance Practice Questions (Free + Explained)

TL;DR

What Does the Texas Real Estate Laws Section Test?

Based on the current Pearson VUE Texas Real Estate Candidate Handbook and exam content outline, the licensing exam is divided into two separately scored portions: a national portion (85 questions total — 80 scored and 5 unscored pretest items) and a state portion (50 questions total — 40 scored and 10 unscored pretest items). You must pass both portions independently. The passing score is scaled and typically corresponds to around 70%, but is not published as a fixed percentage — it is determined by TREC and Pearson VUE after a standard-setting study.

Legal and compliance content runs through both portions. On the state portion, the official outline covers Commission Duties & Powers, Licensing, Standards of Conduct, Agency & Brokerage, Contracts, Special Topics, and Case Studies. Case studies present scenario-based questions that integrate multiple laws and rules into a single problem. On the national portion, Fair Housing and ADA appear as a dedicated section alongside other national law topics. Understanding which laws appear on which portion — and how they are tested — is one of the most common sources of exam confusion. Our complete study guide covers exactly how to approach each section.

What Topics Are Tested?

• Texas Real Estate License Act (TRELA) — licensing requirements, grounds for license suspension or revocation, duties of license holders, and TREC's authority to discipline. This is the foundational Texas statute governing all license holders.
• TREC rules and standards of conduct — advertising requirements (broker's name must appear prominently), trust account rules, required use of TREC-promulgated contract forms when a promulgated form exists for the transaction, and disclosure obligations. Note: TREC promulgates contract forms only — not listing agreements, buyer-representation agreements, residential leases, property-management agreements, or commercial contracts.
• Real Estate Recovery Trust Account — compensates members of the public harmed by illegal acts of a licensed agent. Has statutory limits per transaction and per license holder (commonly tested figures include $125,000 per transaction and $250,000 per license holder — verify current limits against the official TREC handbook for your exam).
• Fair Housing Act — tested on the national portion. Covers the seven federally protected classes (race, color, national origin, religion, sex, familial status, disability), prohibited practices, and exemptions such as owner-occupied buildings with four or fewer units or single-family homes sold without a broker. In practice, these exemptions are not usable when a real estate license holder is involved, because license holders cannot participate in discriminatory conduct.
• Americans with Disabilities Act (ADA) — tested on the national portion alongside Fair Housing, but is a separate law. Title III applies to public accommodations and commercial facilities, requiring accessible design. The exam tests ADA concepts as they relate to real estate practice, not the full scope of commercial accessibility law.
• Lead-based paint disclosure — federal law requires sellers and landlords of most pre-1978 housing to disclose known lead-based paint hazards. This operates under a specific federal disclosure regime separate from other environmental topics.
• Special topics on the state portion — includes landlord-tenant issues, homestead protections, foreclosure and short sales, recording statutes, liens, HOA rules, and DTPA (Deceptive Trade Practices Act) liability for misrepresentation, failure to disclose, and other deceptive practices.
• Earnest money rules — TREC requires earnest money to be deposited by the close of business of the second working day after the contract is executed by all parties (the effective date) — earnest money deposit timing is also covered in our closing and settlement practice questions.

What Are the Common Exam Traps in This Section?

• National vs state confusion — Fair Housing and ADA questions appear on the national portion, not the state portion. TRELA and TREC rules appear on the state portion. For a full breakdown of what appears where, see our complete exam guide. Mixing these up is one of the most common errors on practice tests.
• ADA vs Fair Housing — they are tested together but are separate laws. ADA is not part of the Fair Housing Act. Questions may test which law applies to a specific scenario.
• TREC-promulgated forms scope — required only when a promulgated form exists for that transaction type. Does not cover listing agreements, buyer-representation agreements, leases, property-management agreements, or commercial contracts.
• Fair housing exemptions in practice — the exemptions exist but are not usable in practice when a license holder is involved. License holders may not participate in discriminatory conduct regardless of whether a technical exemption applies to the property.
• Earnest money timing — the exact rule is close of business of the second working day after execution by all parties. Questions test the specific timing, not a general principle. For exam purposes, the effective date is when the contract is fully executed by all parties.
• Advertising requirements — the broker's name or trade name must appear in all advertising in a readily noticeable way. The agent's name alone is not compliant.
• DTPA scope — covers false and misleading acts, failure to disclose material information, and unconscionable conduct — not just active misrepresentation. Questions often test whether silence or omission triggers DTPA liability.
• Negative phrasing — this section has a high concentration of NOT/EXCEPT questions. Read every answer choice before selecting.

How Ardelia Structures These Practice Questions

Ardelia's question bank contains 300+ questions covering TRELA, TREC rules, Fair Housing, ADA, and Texas special topics. Each question includes:

• A full explanation of why the correct answer is right
• Why each wrong answer is wrong — including which common misconception each distractor targets
• The specific statute, TREC rule, or exam outline section the question tests
• Whether the question is from the national or state portion of the exam
• Memory tips for rules with specific numbers or timeframes

The adaptive engine tracks your accuracy by sub-topic. If you are consistently missing Fair Housing exemption questions, your next session will route more of them — while reducing time on topics you have already mastered.

Frequently Asked Questions

Is Fair Housing tested on the national or state portion of the Texas exam?

Fair Housing and ADA are both tested on the national portion of the Texas real estate exam. TRELA, TREC rules, and Texas-specific law (liens, homestead, foreclosure, DTPA) appear on the state portion. Both portions are scored independently and you must pass both.

What is the exact earnest money deposit rule in Texas?

TREC requires earnest money to be deposited by the close of business of the second working day after the contract is executed by all parties (the effective date), unless the parties agree to different timing in writing within the contract. This specific timeframe appears frequently on the exam.

What are the Recovery Trust Account limits?

The Real Estate Recovery Trust Account has statutory limits per transaction and per license holder. Commonly tested figures are $125,000 per transaction and $250,000 per license holder over the life of their license. Confirm these against the current official TREC materials before your exam, as limits may be updated.

Which forms is a Texas license holder required to use?

TREC requires license holders to use TREC-promulgated contract forms when a promulgated form exists for that transaction type. This covers standard residential sales contracts. It does not extend to listing agreements, buyer-representation agreements, residential leases, property-management agreements, or commercial contracts — those use attorney-drafted or association forms.

Source: Pearson VUE Texas Real Estate Salesperson Candidate Handbook · Texas Real Estate Commission (trec.texas.gov)