Texas Real Estate Broker Exam — All Questions

Which agency licenses and regulates real estate brokers in Texas?

• a.The Texas Department of Licensing and Regulation
• b.The Texas Real Estate Commission (TREC)✓
• c.The Texas Association of Realtors
• d.The Texas Secretary of State

Real estate licensing in Texas is governed by the Texas Real Estate License Act (TRELA, Occupations Code Chapter 1101) and administered by the Texas Real Estate Commission (TREC). TREC issues, renews, and disciplines broker and sales agent licenses. A trade association such as the Texas Association of Realtors is a private membership group with no licensing authority.

In Texas, a sales agent may perform licensed real estate activity:

• a.Independently once the license is active
• b.For any broker who pays the highest commission on a given deal
• c.Only for and in the name of the broker who sponsors the agent✓
• d.Only after obtaining a separate court appointment

A Texas sales agent must be sponsored by a broker and may act only for and in the name of that sponsoring broker. The broker supervises the sponsored agent's transactions, advertising, and handling of client money. A sales agent cannot operate independently, which is a key difference from the broker license.

A Texas broker who sponsors sales agents is responsible for:

• a.Supervising the sponsored agents' transactions, advertising, and handling of client money✓
• b.Personally attending every showing the agents hold
• c.Paying the agents' income taxes
• d.Guaranteeing that every listing sells

A sponsoring broker must adequately supervise sponsored agents, including their transactions, advertising, and trust-fund handling, and should maintain written policies. Failing to supervise is itself a ground for discipline under TRELA and the TREC rules. This supervisory responsibility is a central reason broker candidates are tested more heavily than sales agents.

The Texas real estate license structure is best described as:

• a.A single license with no tiers
• b.Broker-only, with no sales agent tier
• c.A five-tier ladder ending in attorney certification
• d.A two-step ladder: sales agent first, then the higher broker license✓

Texas uses a two-step ladder. A person first holds a sales agent license, working under a sponsoring broker, and may later qualify for the higher broker license after gaining qualifying experience and completing additional education. The broker exam is distinct from and more advanced than the sales agent exam.