A buyer makes an offer on a home with a financing contingency. The lender denies the loan. What happens to the earnest money?

The buyer is entitled to a refund of their earnest money. A financing contingency protects the buyer — if they cannot obtain financing as specified in the contract, they can terminate and receive their earnest money back. The seller cannot retain the earnest money when the buyer's failure to perform was caused by a contingency that was not satisfied. Always identify whether a contingency applies before determining earnest money disposition.

A listing agent receives two offers simultaneously. What must they do?

Present both offers to the seller promptly. A listing agent has a fiduciary duty to present all offers to the seller regardless of the agent's personal opinion of the offer's merit. The agent cannot withhold an offer without the seller's prior written instruction. The seller — not the agent — decides which offer to accept, counter, or reject.

A buyer's agent learns that their client is willing to pay $20,000 more than their offer price. Must they disclose this to the seller?

No. A buyer's agent must keep this information confidential. The fiduciary duty of confidentiality requires the buyer's agent to protect information that could harm their client's negotiating position. Disclosing the buyer's maximum price to the seller would be a breach of fiduciary duty. The duty of confidentiality survives the end of the agency relationship.

What is the difference between a client and a customer in a real estate transaction?

A client has a fiduciary relationship with the agent; a customer does not. The agent owes full fiduciary duties — loyalty, confidentiality, obedience, disclosure, accountability, and reasonable care — only to their client. A customer is owed honesty and fair dealing but not fiduciary duties. Understanding this distinction is essential for answering agency disclosure questions correctly.

A property sells for $350,000. The buyer puts down 20%. What is the loan amount and the LTV ratio?

Loan amount: $280,000. LTV: 80%. Calculation: $350,000 × 0.20 = $70,000 down payment. $350,000 − $70,000 = $280,000 loan. LTV = loan amount ÷ property value = $280,000 ÷ $350,000 = 80%. LTV questions appear on the national section and are straightforward if you know the formula: LTV = loan ÷ value.

An agent earns a 6% commission on a $425,000 sale, split 50/50 with the cooperating broker. What does each broker receive?

Each broker receives $12,750. Total commission: $425,000 × 0.06 = $25,500. Split 50/50: $25,500 ÷ 2 = $12,750 per broker. Commission math questions appear on most exam forms. Know how to calculate total commission, split commissions, and agent shares of broker commission in sequence.

In the TREC One to Four Family Residential Contract, what does the option period allow the buyer to do?

Terminate the contract for any reason within the option period, for a fee paid to the seller. The option period gives the buyer an unrestricted right to terminate — they do not need to provide a reason. The option fee is paid directly to the seller and is not refundable. The option period must be negotiated and specified in the contract — it does not exist by default.

Under the TREC contract, who is responsible for paying for a survey if none is provided?

It depends on what the parties negotiated in the contract. The TREC contract has a survey section where the parties can agree on who pays for a new survey or whether an existing survey will be used. There is no default rule — the contract terms govern. Exam questions testing the survey provision typically require you to identify who bears the cost based on the scenario described.

How many practice questions should I do before the Texas real estate exam?

Quality matters more than quantity. Carefully reviewing 100–200 practice questions with full answer explanations will prepare you better than rushing through 500 questions without review. Focus your practice on the highest-weight topics: Contracts and Agency for the national section, and TREC contract forms and agency relationships for the state section. Take at least two full-length timed practice exams in the week before your test date.

Are practice test questions the same as the real Texas real estate exam?

Practice questions test the same content areas and use the same scenario-based format as the actual exam. The exact questions on the real exam are not published. Well-written practice questions are built from the official exam blueprint and use the same style of scenario presentation. Reviewing practice questions familiarizes you with the format and helps identify weak topic areas before your test date.

What topics appear most on the Texas real estate practice test?

On the national section, Contracts (~20%), Agency (~14%), and Financing (~12%) are the highest-weight topics. On the state section, TREC contract forms (~20%), Standards of Practice (~18%), and Agency/Brokerage (~18%) are the highest-weight areas. Together these topics account for the majority of questions on both sections. Prioritize practice questions in these areas before moving to lower-weight topics.

Should I take timed or untimed practice tests?

Both. Start with untimed practice to build knowledge and understand the format. Switch to timed practice exams approximately 2 weeks before your test date. The national section gives you about 74 seconds per question — performing under that time pressure requires practice. Candidates who take their first timed exam on actual test day consistently underperform their knowledge level due to unfamiliarity with the pace.

What is the best way to review practice test answers?

Read the explanation for every question you got wrong — not just the correct answer. Identify the specific rule or concept the question was testing. If you got the answer right for the wrong reason (guessed correctly), treat it as a wrong answer and review the explanation. Tracking which topic areas you miss most frequently helps you allocate your remaining study time where it will have the most impact on your score.

TX Real Estate Exam — Free Practice Test Questions

TL;DR

The Texas Real Estate Salesperson Exam has 125 total questions — 85 national (105 minutes) and 40 state (45 minutes). Practice questions that mirror the scenario-based format of the actual exam are the most effective preparation. The highest-yield topics to practice are Contracts, Agency, Financing math, and the TREC promulgated contract forms for the state section.

How Do You Use Practice Questions Effectively?

Practice questions are most effective when you treat each wrong answer as a learning opportunity. After every question you get wrong, identify the rule it was testing, understand why the correct answer is correct, and understand why each wrong answer is wrong. A candidate who completes 50 practice questions with careful review will outperform one who rushes through 200 questions without reviewing. For a complete study strategy built around the exam blueprint, see our complete study guide.

The Texas real estate exam is entirely scenario-based — every question describes a situation and asks what a licensed agent should do. Exposure to this format before your test date significantly reduces the chance of being caught off guard by how questions are phrased.

National Section — Contracts Practice Questions

Contracts is the highest-weight topic on the national section (~20%). These questions test your ability to apply contract law to realistic client scenarios — not your ability to recite definitions. For the full topic weight breakdown, see our exam blueprint guide.

A buyer makes an offer on a home with a financing contingency. The lender denies the loan. What happens to the earnest money?: The buyer is entitled to a refund of their earnest money. A financing contingency protects the buyer — if they cannot obtain financing as specified in the contract, they can terminate and receive their earnest money back. The seller cannot retain the earnest money when the buyer's failure to perform was caused by a contingency that was not satisfied. Always identify whether a contingency applies before determining earnest money disposition.
A listing agent receives two offers simultaneously. What must they do?: Present both offers to the seller promptly. A listing agent has a fiduciary duty to present all offers to the seller regardless of the agent's personal opinion of the offer's merit. The agent cannot withhold an offer without the seller's prior written instruction. The seller — not the agent — decides which offer to accept, counter, or reject.

National Section — Agency Practice Questions

Agency is the second highest-weight topic on the national section (~14%). Questions test fiduciary duties, disclosure requirements, and the types of agency relationships.

A buyer's agent learns that their client is willing to pay $20,000 more than their offer price. Must they disclose this to the seller?: No. A buyer's agent must keep this information confidential. The fiduciary duty of confidentiality requires the buyer's agent to protect information that could harm their client's negotiating position. Disclosing the buyer's maximum price to the seller would be a breach of fiduciary duty. The duty of confidentiality survives the end of the agency relationship.
What is the difference between a client and a customer in a real estate transaction?: A client has a fiduciary relationship with the agent; a customer does not. The agent owes full fiduciary duties — loyalty, confidentiality, obedience, disclosure, accountability, and reasonable care — only to their client. A customer is owed honesty and fair dealing but not fiduciary duties. Understanding this distinction is essential for answering agency disclosure questions correctly.

National Section — Financing Math Practice Questions

Financing math questions require you to know specific formulas and apply them under time pressure. Practice each calculation type until you can solve it consistently in under 2 minutes using the on-screen calculator.

A property sells for $350,000. The buyer puts down 20%. What is the loan amount and the LTV ratio?: Loan amount: $280,000. LTV: 80%. Calculation: $350,000 × 0.20 = $70,000 down payment. $350,000 − $70,000 = $280,000 loan. LTV = loan amount ÷ property value = $280,000 ÷ $350,000 = 80%. LTV questions appear on the national section and are straightforward if you know the formula: LTV = loan ÷ value.
An agent earns a 6% commission on a $425,000 sale, split 50/50 with the cooperating broker. What does each broker receive?: Each broker receives $12,750. Total commission: $425,000 × 0.06 = $25,500. Split 50/50: $25,500 ÷ 2 = $12,750 per broker. Commission math questions appear on most exam forms. Know how to calculate total commission, split commissions, and agent shares of broker commission in sequence.

State Section — TREC Contract Forms Practice Questions

The TREC promulgated contract forms account for approximately 20% of the state section. These questions test your knowledge of the specific provisions in the One to Four Family Residential Contract and its addenda. For everything you need to know before your exam, see our exam tips guide.

In the TREC One to Four Family Residential Contract, what does the option period allow the buyer to do?: Terminate the contract for any reason within the option period, for a fee paid to the seller. The option period gives the buyer an unrestricted right to terminate — they do not need to provide a reason. The option fee is paid directly to the seller and is not refundable. The option period must be negotiated and specified in the contract — it does not exist by default.
Under the TREC contract, who is responsible for paying for a survey if none is provided?: It depends on what the parties negotiated in the contract. The TREC contract has a survey section where the parties can agree on who pays for a new survey or whether an existing survey will be used. There is no default rule — the contract terms govern. Exam questions testing the survey provision typically require you to identify who bears the cost based on the scenario described.

Take the Full Ardelia Practice Exam

These sample questions represent a small fraction of what appears on the actual exam. Ardelia's full question bank covers all national and state section topics with questions written to match the scenario-based format, difficulty, and phrasing of the actual Texas real estate exam. For an 8-week study schedule that incorporates timed practice exams, see our study schedule guide. For the complete exam hub with all resources, see our TX real estate exam hub.

Frequently Asked Questions

How many practice questions should I do before the Texas real estate exam?: Quality matters more than quantity. Carefully reviewing 100–200 practice questions with full answer explanations will prepare you better than rushing through 500 questions without review. Focus your practice on the highest-weight topics: Contracts and Agency for the national section, and TREC contract forms and agency relationships for the state section. Take at least two full-length timed practice exams in the week before your test date.
Are practice test questions the same as the real Texas real estate exam?: Practice questions test the same content areas and use the same scenario-based format as the actual exam. The exact questions on the real exam are not published. Well-written practice questions are built from the official exam blueprint and use the same style of scenario presentation. Reviewing practice questions familiarizes you with the format and helps identify weak topic areas before your test date.
What topics appear most on the Texas real estate practice test?: On the national section, Contracts (~20%), Agency (~14%), and Financing (~12%) are the highest-weight topics. On the state section, TREC contract forms (~20%), Standards of Practice (~18%), and Agency/Brokerage (~18%) are the highest-weight areas. Together these topics account for the majority of questions on both sections. Prioritize practice questions in these areas before moving to lower-weight topics.
Should I take timed or untimed practice tests?: Both. Start with untimed practice to build knowledge and understand the format. Switch to timed practice exams approximately 2 weeks before your test date. The national section gives you about 74 seconds per question — performing under that time pressure requires practice. Candidates who take their first timed exam on actual test day consistently underperform their knowledge level due to unfamiliarity with the pace.
What is the best way to review practice test answers?: Read the explanation for every question you got wrong — not just the correct answer. Identify the specific rule or concept the question was testing. If you got the answer right for the wrong reason (guessed correctly), treat it as a wrong answer and review the explanation. Tracking which topic areas you miss most frequently helps you allocate your remaining study time where it will have the most impact on your score.

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