QUICK ANSWER

The Practice of Real Estate is one of the eight national content areas on the Texas exam. It covers the laws and duties that govern how agents do business honestly and fairly. The core topics are antitrust, do-not-call and CAN-SPAM, fair housing, the ADA, and property management, plus the conduct topics of advertising, the DTPA, unauthorized practice of law, and landlord-tenant law. This guide maps all of them and links to a full breakdown of each.

EXAM PREP ONLY

This is a study guide for the Texas sales agent exam. It is educational content, not legal advice. The rules referenced here come from federal law, the Texas Property Code, the Occupations Code, and TREC rules, which can change. Confirm the current law before relying on it, and see each linked guide for its primary sources.

1 of 8
national content areas on the exam
Conduct
how agents do business lawfully and fairly
80 / 56
national scored items, and the number to pass
Topic Practice
drill the whole area in the app

This area answers one question from many angles: how must an agent behave to stay on the right side of the law? Most of it is about competition, honesty, fairness, and knowing the limit of a real estate license. Learn the topics below, then drill them in real estate practice questions.

The area at a glance

Snippet answer: This area covers how agents conduct business lawfully. Antitrust protects competition. Do-not-call and CAN-SPAM govern outreach. Fair housing and the ADA prevent discrimination. Property management sets the rules for running property for others. Advertising, the DTPA, unauthorized practice of law, and landlord-tenant law round out the conduct duties. Several are federal, anchored to Texas through TREC discipline.

Topic What it covers
Antitrust Price-fixing, boycotts, market allocation, and tie-ins
Do-Not-Call and CAN-SPAM Telemarketing, texts, and commercial email rules
Fair Housing violations and exemptions Steering, blockbusting, redlining, and the exemptions
Fair Housing protected classes The seven federal classes and the Texas mirror
Americans with Disabilities Act Public accommodations, and ADA versus fair housing
Property management basics The manager's role, trust accounts, and licensing
Advertising rules Broker identification and misleading-ad rules
Deceptive Trade Practices Act Consumer protection and false or misleading conduct
Unauthorized practice of law Filling forms versus giving legal advice
Landlord-tenant law Deposits, notices, liens, and leasing traps

Antitrust

Snippet answer: Antitrust law, mainly the Sherman Act, bans agreements between competing brokers to fix prices, boycott a competitor, divide the market, or force a tie-in purchase. The rule for agents is that commissions are always negotiable and are never coordinated with competitors. Price-fixing, allocation, and boycotts are per se illegal, with severe criminal penalties.

The one rule to carry is that commissions are always negotiable, and you never discuss pricing or territory with a competing firm. See the four violations and the penalties in the antitrust spoke.

Do-Not-Call, CAN-SPAM, and telemarketing

Snippet answer: Three federal rules govern outreach. The Do-Not-Call Registry bars calling registered numbers without an exception, the TCPA sets 8 a.m. to 9 p.m. calling hours and requires consent for texts, and CAN-SPAM governs commercial email with a physical address, an ad label, and a 10-day opt-out. The main Do-Not-Call exceptions are written consent and an established business relationship.

Cold-calling for-sale-by-owner and expired listings runs straight into these rules. Learn the numbers, the exceptions, and the channel split in the do-not-call and CAN-SPAM spoke.

Fair housing and the ADA

Snippet answer: Fair housing bans discrimination in housing based on the seven protected classes, and the named violations are steering, blockbusting, and redlining. Narrow exemptions exist, but none allow race discrimination and none apply when an agent is involved. The ADA is different: it covers commercial and public accommodations, while fair housing covers residential housing.

This is the heart of the area. Start with the protected classes, then the fair housing violations and exemptions spoke, and keep the ADA line clear: commercial is ADA, residential is fair housing. Texas enforces its own Fair Housing Act through the Texas Workforce Commission.

Property management

Snippet answer: A property manager runs property for an owner as a fiduciary, guided by a management agreement, balancing income against the property's value. Rents and deposits go in a trust account, never commingled. In Texas, managing others' property for compensation generally requires a real estate license, with narrow exemptions for on-site apartment managers and owner-employees.

Fair housing applies fully to tenant selection, so property management is a discrimination hot spot. See the manager's duties, trust-account rules, and the licensing rule in the property management basics spoke.

This area rewards spotting the conduct issue in a scenario. Run the free real estate practice question set and check your instincts against the rationales.

Advertising, the DTPA, and unauthorized practice of law

Snippet answer: Three conduct rules protect the public. Advertising rules require the broker's name in a readily noticeable location, at least half the size of the largest agent contact information, and bar misleading ads. The DTPA is a consumer-protection law reaching false, misleading, and unconscionable conduct. Unauthorized practice of law means an agent may fill factual blanks on a form but may not draft legal rights or give legal opinions.

These three overlap constantly, since a misleading ad can be a DTPA issue and a legal opinion can be unauthorized practice. Read the advertising rules, the DTPA, and unauthorized practice of law spokes, and connect them to the broader standards of conduct.

Landlord-tenant law

Snippet answer: Texas landlord-tenant law is a practical rights-and-notices topic: security deposit refunds within 30 days of surrender, the forwarding-address rule, lawful deductions, landlord liens, lockout limits, notice to vacate, repairs, and retaliation. For an agent, leasing is still brokerage activity, so trust-account rules, forms, and broker supervision all apply.

Most questions ask you to classify the issue as possession, money, notice, tenant property, or broker conduct. See the deposit rules, the notice buckets, and the leasing traps in the landlord-tenant law spoke.

How to study this area

Snippet answer: Study this area as lawful-conduct rules. Learn antitrust (commissions are negotiable), the outreach rules (do-not-call and CAN-SPAM), fair housing and the ADA (residential versus commercial), and property management (fiduciary and trust accounts). Then add the conduct trio of advertising, DTPA, and unauthorized practice of law, plus landlord-tenant basics. Many topics are federal but become TREC discipline in Texas.

A simple approach works. Group the topics by what they protect: competition, consumer outreach, fair treatment, honest advertising and dealing, and the limits of a license. The exam tests this area through scenarios, so practice deciding what an agent may and may not do. When you can spot the conduct issue and choose the honest, humble answer, test yourself in the free practice test and the app.

Original practice questions

Use these to check yourself. They span the area and are not copied from any real exam.

Question 1. Two competing brokerages agree to both charge the same commission rate and not go below it. This is:

  • A) Legal, because each firm sets its own price
  • B) Illegal price-fixing under antitrust law
  • C) Legal if disclosed to clients
  • D) A tie-in arrangement

Answer: B. Competing firms agreeing to set or standardize commission rates is illegal price-fixing, a per se antitrust violation. Commissions are always negotiable and never coordinated with competitors. (Original question.)

Question 2. A tenant with a mobility disability asks to install a grab bar in their rented apartment. This is analyzed under:

  • A) The ADA, as a public accommodation
  • B) The Fair Housing Act, as a reasonable modification
  • C) Antitrust law
  • D) The Do-Not-Call rules

Answer: B. A physical change to a residential unit is a reasonable modification under the Fair Housing Act, which governs housing. The ADA covers commercial and public accommodations, not the apartment itself. (Original question.)

Question 3. A property manager collects rents and security deposits for several owners. Where must the funds be kept?

  • A) In the manager's personal account
  • B) In a trust or escrow account, separate from the manager's own funds
  • C) In the manager's business operating account
  • D) Anywhere, as long as records are kept

Answer: B. Client funds must be held in a trust or escrow account, separate from the manager's own money. Mixing them is commingling, which can bring TREC discipline. (Original question.)

Frequently Asked Questions

For quick answers to every common Texas exam question, see the Texas real estate exam FAQ.

What topics are in the Practice of Real Estate area?

The core topics are antitrust, do-not-call and CAN-SPAM, fair housing, the ADA, and property management. It also covers the conduct topics of advertising, the Deceptive Trade Practices Act, unauthorized practice of law, and landlord-tenant law. Together they cover how an agent conducts business lawfully and fairly.

How important is this area on the Texas exam?

It is one of the eight national content areas. The national portion has 80 scored items, and you need 56 correct to pass it. Several of these conduct topics also appear on the Texas state-law portion under Standards of Conduct and Special Topics. So the ideas show up more often than a single area count suggests.

What are the most Texas-specific points in this area?

Several stand out. Texas enforces its own Fair Housing Act through the Texas Workforce Commission, and property management for others generally requires a Texas license. Advertising follows TREC Rule 535.155, unauthorized practice of law follows TREC Rule 537.11, and landlord-tenant rights come from the Texas Property Code. Many federal topics also become TREC discipline issues in Texas.

Are antitrust and fair housing federal or Texas law?

Both are primarily federal. Antitrust comes from the Sherman Act, and fair housing from the federal Fair Housing Act. Texas mirrors fair housing with its own act and enforces both areas through licensing. So a violation can be a federal issue and a TREC discipline issue at the same time.

DRILL THE WHOLE AREA

Nine topics, one study system.

Pass Texas has topic practice for the entire Practice of Real Estate area, with explanations that show why each answer is right and a readiness check that tells you when you are ready. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.

Study the whole area in the app

Sources and Methodology

This guide was reviewed on July 21, 2026. It summarizes the Practice of Real Estate topics for the Texas sales agent exam and links to a full, separately sourced guide for each one. The exam structure, that the national portion has 80 scored items and requires 56 correct to pass, reflects the Pearson VUE Texas Real Estate Candidate Handbook and the national content outline. The rules referenced in the summaries come from the Sherman Antitrust Act, the FTC and FCC telemarketing and email rules, the federal Fair Housing Act and Texas Property Code Chapter 301, the Americans with Disabilities Act, the Texas Deceptive Trade Practices Act, and TREC rules including 535.155 and 537.11, and each is cited in full in the linked guide for that topic. Statutes, rules, and exam materials can change, so verify the current sources before relying on any point in practice.

This post is educational content for Texas real estate sales agent candidates. It is not legal advice. Each topic in this area carries consequences that depend on individual facts and current law, so confirm the current federal and Texas sources and consult a licensed professional before you rely on any point in a real transaction.