Texas Real Estate 26 Exam Questions & Answers 2026 (1–10)

Question 1

In Texas, the term 'client' refers to the party who has what type of relationship with a real estate broker?

TheoryPractice · Accepted Answer

A principal who has signed a written representation agreement. A client in Texas real estate is a principal — a seller, buyer, landlord, or tenant — who has entered into a written representation agreement with the broker, creating fiduciary-level duties.

Question 2

Under TRELA, who bears ultimate responsibility for the acts and omissions of sponsored sales agents?

TheoryPractice · Accepted Answer

The sponsoring broker. Under the Texas Real Estate License Act (TRELA), the sponsoring broker is legally responsible for all professional acts performed by their sponsored agents.

Question 3

Which of the following duties is owed to a CLIENT but NOT to a mere customer under Texas law?

TheoryPractice · Accepted Answer

Loyalty (fiduciary duty). Loyalty is a fiduciary duty owed exclusively to a client. Honesty and disclosure of material defects are owed to everyone, including customers, regardless of representation status.

Question 4

When a broker represents both the buyer and seller in the same transaction with both parties' written consent, this is called:

TheoryPractice · Accepted Answer

Intermediary brokerage. Texas uses the term 'intermediary' for a broker who, with written consent of both parties, represents both buyer and seller in the same transaction.

Question 5

An agent who works with a buyer without any written representation agreement owes the buyer which of the following duties?

TheoryPractice · Accepted Answer

Honesty and disclosure of material facts. Without a representation agreement, the buyer is a customer, not a client. The agent still owes honesty and must disclose known material facts, but owes no fiduciary duties such as loyalty or confidentiality.

Question 6

A Texas broker has a signed listing agreement with Seller A and a buyer representation agreement with Buyer B. Both A and B want the broker to handle the same property. To legally proceed as an intermediary, what is the FIRST required step?

TheoryPractice · Accepted Answer

Obtain written consent from both A and B to act as intermediary. Before acting as an intermediary, the broker must obtain written consent from BOTH clients. Only after that consent is secured can the broker optionally appoint designated agents.

Question 7

What is the full name of the TREC form that a Texas licensee must give to a consumer at first substantive contact?

TheoryPractice · Accepted Answer

Information About Brokerage Services (IABS). The Information About Brokerage Services (IABS) notice, promulgated by TREC, must be provided to all consumers at or before the first substantive communication about specific real property.

Question 8

A licensee posts their IABS notice conspicuously on their website. When is this SUFFICIENT to satisfy the IABS delivery requirement?

TheoryPractice · Accepted Answer

When the first substantive communication occurs online through the site. TREC rules allow website posting as an acceptable delivery method when the first substantive communication takes place via that website. For in-person or phone contacts, the form must still be physically or electronically delivered.

Question 9

Which of the following must be included on the face of the IABS form?

TheoryPractice · Accepted Answer

The broker's license number and contact information. The IABS form must display the broker's name, license number, and business contact information so consumers can verify the licensee's credentials with TREC.

Question 10

A Texas licensee working solely as a buyer's agent shows a property listed by another broker. Which statement about IABS delivery is correct?

TheoryPractice · Accepted Answer

Both the listing broker's agent and the buyer's agent must provide the IABS at first substantive contact. Every licensee must provide the IABS at first substantive contact, regardless of which side they represent. There is no exemption for buyer's agents or existing clients.

Texas Real Estate 26 Exam Questions & Answers 2026 (1–10)

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