Agency and Brokerage
Area IV is ten scored items and the joint-largest area. It covers disclosure, intermediary practice, the minimum duties owed to a client, enforcing compensation agreements, the broker-agent relationship, the broker's responsibility for the acts of sales agents, and the proper use of unlicensed assistants.
Disclosure: the IABS notice and the new written buyer agreement
Section 1101.558(b) requires a license holder who represents a party to disclose that representation at first contact with another party or that party's license holder. Separately, § 1101.558(b-1) requires written notice at the first substantive communication with a party about specific real property; as amended effective 1 January 2026 that notice carries four items, the fourth being the name, license number and contact information for the license holder and the license holder's supervisor and broker. No notice is owed at a public open house (§ 1101.558(c)(3)). New § 1101.563 then requires a written agreement with a prospective buyer of residential real property before showing any residential real property, or, if none will be shown, before presenting an offer.
Showings without representation
Section 1101.562 creates a status rather than a document: a broker may show property to a party without representing them if the broker has not agreed to represent them, is not otherwise acting as their agent, gives no opinions or advice, and performs no other act of brokerage — though the broker may confirm size, price and terms. The document is § 1101.563's. A written agreement entered for the sole purpose of showing under § 1101.562 may not be exclusive and may not run more than fourteen days (§ 1101.563(e)), and a separate agreement is needed before anything beyond showing.
Intermediary practice
Texas has no dual agency. A broker who agrees to represent both a buyer or tenant and a seller or landlord must act as intermediary (§ 1101.561(b)), with written consent from each party stating the source of expected compensation (§ 1101.559(a)). A listing or buyer representation agreement is sufficient consent where it specifies in conspicuous bold or underlined print the conduct prohibited by § 1101.651(d) — which forbids revealing that a seller will take less or a buyer will pay more, disclosing confidential information, or treating a party dishonestly. Under § 1101.560 the broker may appoint one associated license holder to each party, with written notice of the appointment to all parties; there is always a single intermediary broker.
Minimum duties, compensation and unlicensed assistants
Section 1101.557(b) sets a floor: the broker must inform the client of material information including the receipt of an offer, must answer the client's questions and must present any offer to or from the client. A broker cannot sue for a commission unless the promise, or a memorandum, is in writing and signed by the party sued (§ 1101.806(c)). And under 22 TAC § 535.4(c) a license is required to show a property, which expressly includes unlocking or providing access for a prospective buyer or tenant and hosting an open house — so an unlicensed assistant may do none of those.
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State-specific details
State exam facts
- State regulator
- Texas Real Estate Commission (TREC)
- Exam vendor
- Pearson VUE
- Prelicensing education
- 900 classroom hours (270 qualifying + 630 related)
- Time limit
- 240 minutes
Who regulates real estate brokers in Texas?
The Texas Real Estate Commission (TREC) licenses brokers and sales agents under the Texas Real Estate License Act (Occupations Code Chapter 1101) and the TREC rules at 22 Texas Administrative Code Part 23. TREC contracts with Pearson VUE to schedule and deliver the licensing exams at test centers across Texas.
What experience do I need before the Texas broker exam?
Broker applicants must have four years of active experience as a license holder during the 60 months preceding the application (Occupations Code § 1101.356(a)(1)) and must document not less than 720 qualifying experience points on TREC's Qualifying Experience Report (22 TAC § 535.56(b)(2)) — the points floor rose from 360, so older study material understates it. The education requirement is 270 hours of qualifying real estate courses plus 630 classroom hours of related education, and the six-hour Broker Responsibility Course is now required of every broker applicant.
How is the Texas broker exam structured?
Pearson VUE delivers a national portion of 80 scored questions and a Texas state portion of 50 scored questions in a single 4-hour session. Content outline #094401 splits the 50 state items into seven areas: TREC's duties and powers (3), licensing (4), standards of conduct (9), agency and brokerage (10), contracts (8), special topics (6) and case studies (10). Each portion is scored separately and you must pass both; confirm the current scored-question counts in TREC's Candidate Handbook.
What are the Texas case-study questions?
A fifth of the Texas state portion is case studies. Pearson VUE's outline says these "include both narrative cases and contract cases. Narrative cases require candidates to read a case study and respond to multiple associated items. Contract cases require candidates to respond to items based on use of TREC-promulgated contracts" — so expect fact patterns worked on forms such as TREC No. 20-19, the One to Four Family Residential Contract (Resale).
Sources: https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/094401.pdf, https://www.trec.texas.gov/agency-information/rules-and-laws/trec-rules, https://www.trec.texas.gov/exam-topic-reports, https://www.pearsonvue.com/us/en/tx/realestate.html
In the Texas Real Estate Broker guide: A 60-question national practice exam, with a key that explains all four options and not just the right one. Practice here stays free.