QUICK ANSWER

This Texas-specific state-law cheat sheet is a condensed reference for sales agent candidates. Use it to review current Pearson VUE state-law outline buckets, TREC licensing facts, IABS and Consumer Protection Notice duties, promulgated contract form traps, agency and intermediary rules, trust money rules, advertising rules, seller disclosure items, special topics, and the high-frequency dates that show up in Texas exam questions. It is a memory aid, not a replacement for TREC, Pearson VUE, the Texas statutes, or your 180-hour pre-license course.

40
scored sales agent state-law items in Pearson's current outline
10
state-law pretest items in Pearson's current outline
180
TREC qualifying education classroom hours for sales agent applicants
IABS 1-2
current TREC Information About Brokerage Services form ID checked for this guide

A Texas-specific state-law cheat sheet has one job:

Help you remember the Texas details that are easy to confuse under exam pressure.

The national portion tests broad real estate concepts. The Texas portion asks whether you can apply Texas-specific licensing rules, TREC forms, agency duties, contract rules, notices, discipline concepts, and special topics.

That is a different kind of study.

You are not only asking, "What is the general real estate rule?"

You are asking:

  • Is this a TREC rule or The Real Estate License Act issue?
  • Does this require an active Texas license?
  • Is the sales agent sponsored by a broker?
  • Is IABS required at this moment?
  • Is this intermediary or illegal dual agency?
  • Is this a promulgated form or attorney-drafted language?
  • Is this trust money, commission, rebate, or fee-splitting?
  • Is this a seller disclosure, POA notice, MUD notice, PID assessment, or water-service notice?
  • Is this a state-law special topic, like homestead, community property, DTPA, landlord-tenant, foreclosure, or recording?

The exam rewards clean sorting.

This guide is intentionally condensed. It is not a full outline and it is not legal advice. Use it as a final-pass reference after you have studied the larger Texas law topics.

Table Of Contents

Why This Texas-Specific State-Law Cheat Sheet Matters

Snippet answer: This Texas-specific state-law cheat sheet matters because many Texas exam misses come from mixing up general real estate rules with Texas licensing, TREC forms, agency disclosure, intermediary, contract use, notices, and special-topic rules.

The Texas state-law portion is not random trivia.

Pearson's current sales agent state-law outline says all references to "The Act" mean The Real Estate License Act in Texas, and references to TREC Rules mean the rules promulgated by the Texas Real Estate Commission.

That tells you how to read questions.

If a question says "The Act," think Texas Real Estate License Act. If it says "TREC Rules," think Chapter 535 and related TREC rules. If it says "promulgated form," think TREC contract form use. If it says "broker responsibility," do not drift into generic common law agency only.

The state portion is where Texas vocabulary matters:

  • TREC
  • TRELA
  • broker sponsorship
  • inactive license
  • IABS
  • Consumer Protection Notice
  • intermediary
  • appointed license holder
  • minimum services
  • trust money
  • commission through broker
  • promulgated contracts
  • Seller's Disclosure Notice
  • POA resale certificate
  • special taxing or assessment district
  • homestead
  • community property
  • VLB
  • DTPA

The biggest mistake is studying Texas as if it were a generic national outline with different labels.

It is not.

Texas has its own forms, agency rules, disclosures, and traps.

How To Use This Cheat Sheet

Snippet answer: Use this cheat sheet for fast recall, then go back to full articles or official sources for topics that still feel shaky.

Do not try to memorize this page from top to bottom in one sitting.

Use it in three passes.

Pass What to do Why it works
First pass Read the one-screen tables and highlight weak areas. You see the whole Texas state-law map quickly.
Second pass Review each H2 section and say the rule in your own words. You convert memorized terms into exam decisions.
Third pass Cover the right column in the tables and quiz yourself. You practice retrieval, not rereading.

This article is especially useful in the final week before your exam because it pulls the state-law facts into one place.

Plain English:

Use it to find the leak in your memory.

If you miss a topic in this cheat sheet, go deeper in the matching article before test day.

Current Texas State-Law Exam Map

Snippet answer: Pearson VUE's current Texas sales agent state-law outline, effective Jan. 1, 2026, identifies 40 scored state-law items, with topics covering TREC powers, licensing, conduct, agency, contracts, and special topics.

As verified on June 16, 2026, Pearson VUE's Texas Real Estate Content Outlines PDF lists the Texas Sales Agent State Law content outline as effective Jan. 1, 2026.

Pearson says the sales agent state-law portion contains:

  • 40 scored items

Pearson's outline headings include:

State-law area What to expect
Commission Duties and Powers TREC composition, complaints, investigations, hearings, penalties, recovery trust account.
Licensing Activities requiring a license, exemptions, business entities, licensing process, sponsorship, background check, renewal, inactive status, assumed names.
Standards of Conduct Ethics, discipline, unauthorized practice of law, trust accounts, fee splitting, rebates, advertising.
Agency and Brokerage Disclosure, intermediary, minimum services, broker-sales agent relationships, broker responsibility, unlicensed assistants.
Contracts Promulgated forms, statute of frauds, seller disclosure requirements.
Special Topics Community property, homestead, DTPA, wills and estates, landlord-tenant, foreclosure, recording, mechanic's liens, VLB, HOAs, equitable interest.

Exam translation:

The Texas state portion is not only law definitions. It can ask you to read a scenario, identify which Texas rule controls, and pick the license-holder-safe response.

About the item-count trap

Candidates love to memorize item counts, then stop thinking.

Do not do that.

Item counts tell you how to allocate study time, not what answer to pick.

Agency, contracts, and standards of conduct deserve heavy review because they are both high-frequency and scenario-heavy. Special topics deserve steady review because they are easy to confuse.

One-Screen High-Yield Texas Table

Snippet answer: The highest-yield Texas state-law facts are the ones that decide whether a license is required, which disclosure is due, which form is used, who may receive compensation, and when the broker must stay in control.

Topic Exam memory line Common trap
Sales agent status A sales agent acts on behalf of a broker and must be sponsored by a licensed broker to perform real estate services. Treating the sales agent as an independent broker.
Qualifying education TREC lists 180 classroom hours for sales agent qualifying education. Thinking exam prep app practice replaces pre-license education.
Fingerprints TREC says fingerprints must be on file with DPS, and a license will not issue if background check has not been passed. Scheduling the exam but forgetting the background step.
Active license An active license is required to negotiate a transaction between third parties. Letting an inactive license holder negotiate.
Compensation Sales agent compensation must go through the sponsoring broker. Paying a sales agent directly.
IABS Provide required brokerage-service information at the right first-substantive-communication moment unless an exception applies. Treating IABS like an optional marketing sheet.
Intermediary Texas does not use common-law dual agency language the way some states do. It uses statutory intermediary. Letting one agent give advice to both sides as if nothing changed.
Appointed license holders In intermediary, appointments allow separate associated license holders to provide advice and opinions to their respective principals. Appointing the same license holder to both sides.
Minimum services A broker representing a party must provide statutory minimum services. Assuming a broker can waive core duties entirely.
Trust money Broker must handle money belonging to others under trust-account and contract rules. Sales agent keeps escrow money or misses deposit instructions.
UPL License holders may fill blanks in promulgated forms but may not draft legal language or give legal advice. Writing custom clauses in Paragraph 11.
Forms TREC-adopted contract forms are required for license holders when applicable. Using a made-up contract when a promulgated form applies.
Seller disclosure Seller's Disclosure Notice is a seller disclosure under Property Code Section 5.008 for covered property. Treating it as an inspector report or broker warranty.
Special district MUD or special district facts may require a notice to purchaser. Treating district charges as "just utilities."
Advertising Broker name must be included, and team or assumed names must be registered before use. Sales agent advertises like the broker in charge.

The memory line:

Texas likes broker control, written disclosure, correct forms, clean compensation flow, and no unauthorized lawyering.

Licensing And License Maintenance

Snippet answer: Texas licensing questions often test active versus inactive status, broker sponsorship, 180 classroom hours, fingerprints, background review, renewal education, contact information, and who may receive compensation.

Start with the core identity:

A Texas sales agent is licensed by TREC to act as an agent on behalf of a real estate broker and that broker's clients. The sales agent must be sponsored by a licensed broker to perform real estate services.

That explains many answer choices.

If the person is not sponsored by a broker, the person is not functioning as an active Texas sales agent.

Sales agent qualifying education

TREC's sales agent licensing page lists 180 classroom hours of qualifying real estate courses:

Course Hours
Principles of Real Estate I 30
Principles of Real Estate II 30
Law of Agency 30
Law of Contracts 30
Promulgated Contract Forms 30
Real Estate Finance 30

Exam translation:

The 180-hour requirement is pre-license qualifying education. An exam prep app, cram course, or practice test does not replace it.

Fingerprints and background

TREC says applicants are required by law to have fingerprints on file with the Texas Department of Public Safety so a background check can be performed. TREC also says a license will not issue if the background check has not been passed.

Exam translation:

Passing the exam is not the same as having the license issued.

Active, inactive, and sponsored

The short version:

Status Can perform brokerage activity? Exam memory line
Active sales agent sponsored by broker Yes, through the broker. Sales agent works under broker sponsorship.
Inactive sales agent No brokerage activity for others. Inactive means no negotiating for third parties.
Applicant approved for exam Not yet an active license holder. Exam eligibility is not active practice.
Broker Can sponsor sales agents and act through the brokerage. Broker bears responsibility.
Business entity broker Needs proper broker license and designated broker. Entity cannot just collect commissions without proper licensure.

Renewal and first renewal

TREC's FAQ states that first renewal is under Sales Apprentice Education requirements. It says a renewing first-time sales agent must complete a total of 270 hours of qualifying course hours and the Legal Update I and II courses before renewal.

TREC's FAQ also states that license holders must meet CE requirements during each two-year license period and that CE must include:

  • 4 hours Legal Update I
  • 4 hours Legal Update II
  • 3 hours contract-related coursework
  • 7 hours elective CE
  • 18 total hours

Exam translation:

SAE is for first renewal. CE is the ongoing renewal bucket.

Do not merge them.

Criminal conviction notice

TREC's FAQ says a license holder convicted of a felony or criminal offense involving fraud must notify TREC not later than the 30th day after final conviction or entry of a plea of guilty or nolo contendere.

Exam translation:

The clock is short. Do not wait until renewal.

TREC Powers, Complaints, Discipline, And Recovery Trust Account

Snippet answer: TREC regulates Texas real estate license holders, adopts rules, handles complaints, investigates violations, disciplines license holders, and administers the Real Estate Recovery Trust Account, but it does not decide private contract damages.

TREC is the Texas Real Estate Commission.

For exam purposes, TREC's powers include:

  • adopting rules
  • issuing licenses
  • renewing licenses
  • enforcing TRELA and TREC Rules
  • investigating complaints
  • holding hearings
  • imposing disciplinary action
  • administering the Real Estate Recovery Trust Account

TREC does not do everything.

TREC does not:

  • give private legal advice about a transaction
  • decide earnest money ownership between parties
  • award money damages in a private dispute
  • create listing agreements
  • create buyer representation agreements
  • regulate every non-license-holder in a transaction

Plain English:

TREC regulates license conduct. It does not become the court for every bad deal.

Complaint and discipline traps

Fact pattern Think
License holder fails to deposit earnest money as contract requires Potential TREC complaint and contract issue.
Buyer and seller fight over who gets earnest money TREC does not decide entitlement to the money.
License holder convicted of fraud offense Notify TREC by required deadline and watch discipline.
Private loan between broker and another person Private civil issue unless TRELA or rules are violated.
Unlicensed person performs brokerage activity Unlicensed activity and discipline or enforcement issue.

Recovery Trust Account

The Real Estate Recovery Trust Account is tested because candidates often think it covers every loss.

It does not.

Exam translation:

Think judgment, license-holder misconduct, statutory requirements, and limits. Do not treat it as general insurance for unhappy clients.

Standards Of Conduct

Snippet answer: Texas standards of conduct questions often test broker responsibility, unauthorized practice of law, trust money, compensation, fee splitting, rebates, advertising, signs, and disclosure of conflicts.

This section is where the exam checks whether you know what a license holder may and may not do.

Unauthorized practice of law

The safe rule:

License holders may fill in blanks on TREC-promulgated forms when authorized, but they may not draft legal provisions, give legal advice, or choose legal language for a party.

TREC's FAQ says none of the promulgated forms are intended for use as a contract for deed and that an attorney would need to prepare an appropriate form.

Exam translation:

Paragraph 11 is not a playground.

If the clause changes legal rights in a custom way, send it to an attorney.

Trust money and escrow

Trust money is money belonging to another person that a broker receives in a real estate transaction.

Exam habits:

  • Read the contract instructions.
  • Follow deposit timing and delivery instructions.
  • A sales agent should not keep money personally.
  • The broker is responsible for trust-account procedures.
  • TREC may discipline a license holder for mishandling money.

TREC's FAQ says a sales agent may not have an escrow account and must turn all money received over to the sponsoring broker.

Compensation and fee splitting

Texas compensation rules are heavily broker-centered.

Payment issue Exam-safe answer
Sales agent commission Paid through the sponsoring broker.
Sales agent pays commission directly to another person Usually wrong unless handled through proper broker channels and allowed by law.
Unlicensed person paid for brokerage activity Problem.
Rebate to party represented May be allowed if handled properly and not misleading.
Fee split with attorney acting as buyer's agent Not allowed unless the attorney holds an active real estate license.

Exam translation:

Follow the money to the broker.

Advertising and names

TREC's FAQ and rules emphasize:

  • advertising cannot imply a sales agent is responsible for brokerage operations
  • broker name must be included as required
  • team names and assumed business names must be registered before use
  • individual sales agents cannot use an assumed business name as if they were the brokerage
  • broker should review advertising

Exam translation:

If the ad makes the sales agent look like the broker in charge, be suspicious.

Signs

TREC's FAQ says a license holder can be disciplined for placing a sign on property offering it for lease or rental without written permission of the owner or the owner's authorized agent.

Exam translation:

Permission matters even when the sign looks harmless.

Agency, Brokerage, IABS, And Intermediary

Snippet answer: Texas agency questions often turn on IABS timing, first contact disclosure, intermediary rules, appointed license holders, minimum services, and the broker's responsibility for sponsored sales agents.

Texas agency is one of the most important state-law buckets.

It is also where candidates import rules from other states and get burned.

IABS

TREC's current Information About Brokerage Services form is IABS 1-2, effective Jan. 1, 2026, as verified on June 16, 2026.

IABS is not a representation agreement. It is a statutory brokerage-services disclosure.

Exam memory:

IABS tells the consumer about brokerage-service options and duties. It does not, by itself, create agency.

IABS exceptions

TREC's FAQ describes exceptions where IABS is generally not required, including:

  • a residential lease for less than one year when a sale is not being considered
  • a meeting with a party currently known to be represented by another license holder
  • communication at an open house about that same property
  • the license holder acting solely as a principal

Exam translation:

Do not say "IABS always, no exceptions." Do not say "IABS never matters at an open house." Read the fact pattern.

First contact disclosure

Texas requires disclosure of representation status at first contact with another party or license holder representing another party.

Exam translation:

This is different from IABS. Representation disclosure and IABS are related, but not identical.

Intermediary

Texas intermediary is a statutory structure that allows a broker to act as intermediary between parties when the legal requirements are met.

The high-yield intermediary checklist:

Requirement or feature Memory line
Broker consent Both parties must give written consent.
Listing or representation agreement Must authorize intermediary.
Broker as intermediary The broker is the intermediary, not the sales agent individually.
Appointments Broker may appoint associated license holders to each side.
No appointment Broker and agents may not give advice or opinions to either side.
Confidential information Do not disclose without written authorization unless required.
Same appointee for both sides Wrong. One appointed license holder should not be appointed to both parties.

Plain English:

Intermediary is not "everybody just works both sides." It is a controlled statutory setup.

Minimum services

If a broker represents a party, Texas minimum-services duties matter.

Exam memory:

A broker cannot represent a party and contract away the basic statutory duty to present offers and answer questions as required by law.

Broker responsibility

The broker is responsible for sponsored sales agents.

That does not mean the sales agent has no duties. It means the broker's supervision, policies, and systems matter.

Exam translation:

When a question asks who is responsible for sales agent conduct, look for the sponsoring broker.

Contracts, Forms, Addenda, And Notices

Snippet answer: Texas contracts questions often test mandatory use of TREC forms, when a form is not promulgated, the difference between notices and addenda, correct form selection, seller disclosure, and the license holder's duty not to draft legal language.

TREC says real estate license holders are required to use TREC-adopted contract forms. TREC also says those forms are intended primarily for trained license holders, and mistakes can cause financial loss or unenforceable contracts.

Exam translation:

Use the right TREC form when one is promulgated and applicable. If no TREC form fits, do not invent legal drafting as a sales agent.

Forms TREC does not promulgate

TREC says it does not promulgate:

  • listing agreements
  • buyer representation agreements
  • property management contracts
  • forms for commercial property
  • residential leases, except temporary residential leases used in connection with a sale

Exam translation:

Do not choose "use the TREC listing agreement." TREC does not promulgate one.

One to Four Family Residential Contract transition note

As verified on June 16, 2026, TREC's contracts page lists:

Form Form ID Effective date shown by TREC
One to Four Family Residential Contract (Resale) 20-18 01/03/2025
One to Four Family Residential Contract (Resale) 20-19 07/01/2026

Because July 1, 2026 is after this article's verification date, check TREC's contract page by transaction date before relying on a form ID.

Exam translation:

Form IDs change. The exam and your real transaction documents depend on the version in effect for the relevant date.

Seller's Disclosure Notice

TREC's Seller's Disclosure Notice page lists Form 55-1, effective May 28, 2026. TREC says the disclosure form is required by sellers of previously occupied single-family residences and is used with covered contracts. It contains information required by Texas Property Code Section 5.008 regarding material facts and physical condition.

Exam translation:

The Seller's Disclosure Notice is a seller's disclosure. It is not a broker warranty, inspection report, appraisal, survey, or title policy.

Notices and addenda to keep separate

Document or notice Memory line
IABS Brokerage-services disclosure, not an agency agreement.
Consumer Protection Notice Posted or linked public notice requirement for license holders.
Seller's Disclosure Notice Seller's statutory property-condition disclosure for covered resale property.
POA addendum or resale certificate Mandatory membership, subdivision information, fees, restrictions, resale documents.
Special taxing or assessment district notice District taxes, assessments, bonds, standby fees, or district services.
PID assessment addendum Obligation to pay improvement district assessment.
Lead-based paint addendum Federal pre-1978 residential housing disclosure context.
Short Sale Addendum Lender approval context, not seller simply taking a low offer.
Third Party Financing Addendum Financing approval and buyer credit/property approval issues.
Amendment Changes the contract after execution.
Notice of Buyer's Termination Gives termination notice when buyer has a right to terminate.

Plain English:

An addendum changes or adds contract terms. A notice informs. Sometimes a document does both, but the exam often tests which one fits the fact pattern.

Dates, Deadlines, And Numbers

Snippet answer: Memorize the core Texas dates and numbers, but verify current form IDs, effective dates, fees, and exam policies with TREC and Pearson VUE because they can change.

Fact Number or timing Source-safe memory line
Sales agent qualifying education 180 classroom hours TREC sales agent licensing page.
Principles I 30 classroom hours One of six required 30-hour courses.
Principles II 30 classroom hours One of six required 30-hour courses.
Law of Agency 30 classroom hours One of six required 30-hour courses.
Law of Contracts 30 classroom hours One of six required 30-hour courses.
Promulgated Contract Forms 30 classroom hours One of six required 30-hour courses.
Real Estate Finance 30 classroom hours One of six required 30-hour courses.
Current sales agent state-law scored items 40 Pearson outline, effective Jan. 1, 2026.
Current sales agent state-law pretest items 10 Pearson outline, effective Jan. 1, 2026.
First renewal SAE total 270 hours TREC FAQ.
Regular CE total 18 hours each two-year license period TREC FAQ.
Legal Update I 4 hours Part of CE.
Legal Update II 4 hours Part of CE.
Contract-related CE 3 hours Part of CE.
Elective CE 7 hours Part of CE.
Conviction notice Not later than the 30th day after final conviction or plea TREC FAQ.
Current IABS form IABS 1-2, effective 01/01/2026 TREC form page.
Current Consumer Protection Notice CN 1-5, effective 09/01/2023 TREC form page.
Seller's Disclosure Notice 55-1, effective 05/28/2026 TREC form page.
Special taxing or assessment district notice 59-0, effective 02/12/2024 TREC form page.
PID assessment addendum 53-0, effective 09/01/2021 TREC contracts page.
General homestead school exemption $140,000 as verified on 2026-06-16 Texas Comptroller.
Age 65 or disabled additional school exemption $60,000 as verified on 2026-06-16 Texas Comptroller.
Property tax payment date Usually Jan. 31 Texas Comptroller.
Property tax delinquency Usually Feb. 1 Texas Comptroller.
Property tax lien attaches Jan. 1 Texas Tax Code Section 32.01.

The exam likes numbers, but numbers can get stale.

Use this table for memory, then trust official sources for current real-world decisions.

TEXAS STATE-LAW REVIEW

Turn this cheat sheet into practice reps.

The Texas real estate exam prep app is built for Texas sales agent candidates: original Texas-focused practice questions, national and state review, math drills, case-study practice, flashcards, and weak-area feedback. Use it after this cheat sheet to drill IABS, intermediary, TREC forms, licensing, trust money, advertising, contracts, notices, and special-topic scenarios. 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.

Practice Texas state-law questions

Special Topics Snapshot

Snippet answer: Texas special topics are lower item-count but high confusion. Study them as short rule clusters: community property, homestead, DTPA, wills and estates, landlord-tenant, foreclosure, recording, mechanic's liens, VLB, HOAs, and equitable interest.

Pearson's state-law outline lists Special Topics. The list is broad, so do not try to write a full treatise for each one during review.

Use a trigger table.

Topic Trigger words Exam-safe memory line
Community property Married, spouse, separate property, divorce, death Texas is a community property state. Know separate versus community property basics.
Homestead protections and tax exemptions Forced sale, property taxes, residence homestead Homestead can mean creditor protection or property tax exemption. Do not mix them.
DTPA Consumer, deceptive act, misrepresentation Do not turn every mistake into DTPA, but know consumer protection risk.
Wills and estates Death, devise, descent, executor, heir Watch authority to sell and signatures.
Landlord-tenant Security deposit, landlord lien, repair, notice, lockout Property Code rules are detailed. Read the fact pattern.
Foreclosure and short sales Default, notices, trustee sale, lender approval Tax foreclosure, HOA foreclosure, and deed of trust foreclosure are not identical.
Recording statutes Actual notice, constructive notice, priority, BFP Recording gives constructive notice. Unrecorded documents can still matter with actual notice.
Mechanic's and materialman's liens Labor, materials, deadlines, notices Deadlines and notices are technical. Original contractor and subcontractor rules differ.
Veterans Land Board Texas veterans, land loan, home loan, improvement loan State-specific veteran program, not a federal VA loan.
Home owners associations POA, HOA, resale certificate, assessments, restrictions In Texas, Property Code uses property owners association language.
Equitable interest Executory contract, signed contract, buyer interest Buyer can acquire equitable interest before deed delivery.

Plain English:

Special Topics are where the question tries to make you overgeneralize. Stay narrow.

Community property memory

Texas is a community property state.

For exam purposes:

  • property owned before marriage is usually separate
  • property acquired during marriage is often presumed community unless shown otherwise
  • gifts, devise, and descent can create separate property
  • signatures and authority can matter in transactions

Do not give legal advice about a real divorce, estate, or homestead signature problem.

Homestead memory

Homestead can mean:

  • creditor protection
  • forced sale protection with exceptions
  • property tax exemption
  • appraisal limitation
  • family law or probate facts

Exam translation:

When the word "homestead" appears, ask which homestead topic the question is testing.

DTPA memory

DTPA questions usually test consumer protection, misrepresentation, and conduct.

Good exam habit:

Do not exaggerate, hide known defects, invent expertise, or make unsupported promises.

Landlord-tenant memory

Texas landlord-tenant questions can test:

  • security deposits
  • landlord liens
  • repair duties
  • notices
  • lockouts
  • habitability-style facts
  • residential lease traps

Most misses happen because the candidate answers from "what sounds fair" instead of Texas Property Code rules.

Foreclosure memory

Texas foreclosure questions often test:

  • deed of trust
  • substitute trustee
  • notice of default
  • notice of sale
  • first Tuesday sale concept
  • deficiency concepts
  • short-sale lender approval
  • tax foreclosure and redemption as separate rules

Do not merge every foreclosure into one process.

Recording memory

Recording is about notice and priority.

Use this quick sort:

Notice type Meaning
Actual notice Person actually knows the fact.
Constructive notice Law treats the person as having notice because it is properly recorded or discoverable.
Inquiry notice Facts should cause a reasonable person to investigate.

Form ID Cheat Sheet

Snippet answer: TREC form IDs are useful for recognition, but form IDs and effective dates change. Use this table as a memory tool and verify current forms before real-world use.

As verified on June 16, 2026:

Form or document Form ID shown by TREC Effective date shown What it does
Information About Brokerage Services IABS 1-2 01/01/2026 Brokerage-services disclosure.
Consumer Protection Notice CN 1-5 09/01/2023 Public consumer notice.
Seller's Disclosure Notice 55-1 05/28/2026 Seller property-condition disclosure under Property Code Section 5.008.
One to Four Family Residential Contract (Resale) 20-18 01/03/2025 Resale contract in effect before the next listed version.
One to Four Family Residential Contract (Resale) 20-19 07/01/2026 Next listed resale contract version on TREC's contracts page.
Amendment to Contract 39-10 01/03/2025 Changes signed contract terms.
Amendment to Contract 39-11 07/01/2026 Next listed amendment version on TREC's contracts page.
PID assessment addendum 53-0 09/01/2021 Notice of obligation to pay improvement district assessment.
Notice to Purchaser of Special Taxing or Assessment District 59-0 02/12/2024 Water Code Chapter 49 district notice when applicable.
Addendum Concerning Right to Terminate Due to Lender's Appraisal 49-1 03/01/2019 Appraisal termination right context.
Addendum for Property in a Propane Gas System Service Area 47-0 02/01/2014 Propane gas system service area notice context.
Addendum for Coastal Area Property 33-2 12/05/2011 Coastal property notice context.
Addendum for Authorizing Hydrostatic Testing 48-1 03/01/2020 Authorization for hydrostatic testing.

Exam translation:

You do not need to recite every form ID to pass. But recognizing major forms helps with case-study and contract questions.

Current-date warning

This article was verified on June 16, 2026.

TREC's contracts page already lists some forms with July 1, 2026 effective dates. That means a candidate studying near the transition date should check the current TREC contract page instead of relying on memory.

Common Exam Traps

Snippet answer: The biggest Texas state-law traps are inactive practice, direct compensation to a sales agent, bad IABS timing, illegal intermediary behavior, drafting legal clauses, mishandling earnest money, and choosing the wrong form or notice.

Trap Better answer
Inactive license holder negotiates a sale for someone else. Active license is required for brokerage activity.
Sales agent takes commission directly from client. Compensation flows through sponsoring broker.
Sales agent uses a team name before broker registers it. Team name must be registered before use.
Agent gives legal advice about contract language. Refer legal language to attorney.
Agent uses Paragraph 11 for custom legal rights. Do not draft legal clauses.
Broker acts as intermediary without written authority. Written consent and proper authorization are required.
Same appointed license holder advises both sides. Appointments are separate.
IABS treated as representation agreement. IABS discloses brokerage services. It does not create agency by itself.
Seller's Disclosure Notice treated as inspection. It is seller disclosure, not inspection or warranty.
Special district notice ignored because "it is just water." Districts can involve taxes, assessments, bonds, or standby fees.
Buyer assumes seller's tax exemption transfers. Buyer must qualify independently.
Buyer assumes POA dues are optional. Mandatory membership can create assessments and resale-document issues.
Candidate answers every lien question with mechanic's lien. Tax liens, HOA liens, landlord liens, and mechanic's liens are different.
Candidate uses national dual agency language. Texas uses statutory intermediary.

Memory line:

When in doubt, pick the answer that keeps the license holder inside TREC rules, broker supervision, required disclosures, and correct forms.

Candidate Situations

Snippet answer: Candidate situations usually ask you to identify the Texas-specific rule that controls, not to solve every legal issue in the transaction.

Candidate situation What Texas is testing Best answer style
Buyer asks sales agent for legal wording to add to contract. Unauthorized practice of law. Refer to attorney.
Sales agent receives earnest money from buyer. Trust money and broker control. Follow contract and broker procedures.
Buyer asks whether IABS means the broker represents them. IABS versus agency. IABS is disclosure, not representation agreement.
Broker represents both buyer and seller. Intermediary. Need written consent and proper intermediary structure.
Broker appoints one agent to buyer and one to seller. Appointed license holders. Permitted if requirements met.
Broker appoints same agent to both sides. Bad intermediary appointment. Not proper.
Seller asks agent to hide known defect. Disclosure and honesty. Do not hide material facts.
Agent advertises as "Sally's Realty" without broker context. Advertising and names. Watch broker name and registered team or assumed name rules.
Buyer asks whether future property taxes will match seller's. Tax and exemption trap. Refer to appraisal district and tax office.
Property is in a MUD. Special district notice. Check required notice and district information.
Buyer wants to use seller financing. Contract and legal risk. Use proper forms and attorney when needed.
Seller wants a contract for deed. TREC forms not intended for that. Attorney prepares appropriate form.
Candidate sees "The Act." TRELA. Read as Texas Real Estate License Act.
Candidate sees "TREC Rules." Commission rules. Read as TREC-promulgated rules.

Original Learning Examples

Snippet answer: These original examples help you practice identifying the Texas-specific issue quickly.

These are original learning examples. They are not copied exam questions and they are not official Pearson VUE questions.

Example 1: The unsponsored sales agent

A person passed the Texas sales agent exam but has not been sponsored by a broker. A neighbor asks the person to negotiate a sales contract for a fee.

What is the Texas issue?

The issue is active licensure and broker sponsorship. Passing the exam is not enough to perform brokerage activity.

Exam takeaway: sales agent activity runs through broker sponsorship.

Example 2: The buyer thinks IABS means representation

A buyer receives IABS from a broker at an open house and assumes the broker now represents the buyer.

What is the Texas issue?

The issue is IABS versus agency. IABS explains brokerage services. It does not, by itself, create representation.

Exam takeaway: do not treat disclosure as a representation agreement.

Example 3: The one-agent intermediary problem

A broker has permission to act as intermediary but does not appoint separate license holders. One sales agent starts advising both buyer and seller on negotiation strategy.

What is the Texas issue?

The issue is intermediary conduct. Without proper appointments, advice and opinions to either party are restricted.

Exam takeaway: intermediary is controlled, not casual dual representation.

Example 4: The custom contract clause

A buyer wants the sales agent to write language saying the seller will pay "any and all future drainage claims."

What is the Texas issue?

The issue is unauthorized practice of law. Custom legal language belongs with an attorney.

Exam takeaway: use promulgated forms properly and refer legal drafting out.

Example 5: The direct commission

A buyer wants to pay the sales agent a bonus directly at closing.

What is the Texas issue?

The issue is compensation flow. Sales agent compensation must be handled through the sponsoring broker.

Exam takeaway: follow the broker channel.

Example 6: The property tax assumption

A buyer sees the seller's low tax bill and asks the agent to guarantee the same amount next year.

What is the Texas issue?

The issue is tax and exemption uncertainty. The buyer should verify future taxes and exemptions with the appraisal district and tax office.

Exam takeaway: do not guarantee tax outcomes.

Example 7: The MUD notice

The property is located in a district covered by Water Code Section 49.452. Seller asks whether the district notice can be skipped because the buyer already knows about the water bill.

What is the Texas issue?

The issue is special taxing or assessment district notice. Utility awareness is not the same as statutory notice.

Exam takeaway: service and district finance are different.

What To Pair With This

Snippet answer: Pair this cheat sheet with deeper articles on TREC, agency, contracts, standards of conduct, forms, foreclosure, recording, landlord-tenant, POA, and property taxes.

Pair this cheat sheet with Why it helps Internal link
Texas real estate exam guide Gives the full exam strategy map. /texas-real-estate-exam
Texas exam format Helps you understand item counts, state law, and pretest items. /texas-real-estate-exam-format
TREC explained Reviews TREC powers, rules, complaints, and licensing. /trec-explained-texas-real-estate-exam
Texas intermediary practice Deepens the agency and brokerage section. /texas-intermediary-practice-no-dual-agency
Texas advertising rules Reinforces names, broker identification, and advertising traps. /texas-real-estate-advertising-rules
Texas trust accounts Reviews earnest money, trust money, and commingling. /texas-real-estate-trust-accounts-earnest-money-commingling
Texas foreclosure and short sales Reviews special-topic foreclosure rules. /texas-foreclosure-short-sales-real-estate-exam
Recording statutes and notice Connects title, priority, actual notice, and constructive notice. /recording-statutes-notice-texas-real-estate-exam
HOA and POA in Texas Reviews POA disclosures, resale certificates, assessments, and traps. /homeowners-property-owners-associations-texas-real-estate-exam
Free Texas practice test Practice state-law scenarios after reviewing this cheat sheet. /free-texas-real-estate-practice-test

FAQ

What is the Texas-specific state-law cheat sheet for the real estate exam?

It is a condensed review of Texas-specific exam facts, including TREC licensing rules, Pearson's state-law outline, IABS, Consumer Protection Notice, intermediary, TREC forms, contracts, seller disclosures, standards of conduct, and special topics.

How many scored items are on the Texas sales agent state-law portion?

As verified on June 16, 2026, Pearson VUE's current Texas sales agent state-law outline says the state-law portion contains 40 scored items.

What does "The Act" mean on the Texas real estate exam?

Pearson's outline states that references to "The Act" mean The Real Estate License Act in Texas.

What do "TREC Rules" mean on the exam?

Pearson's outline states that references to TREC Rules mean the rules promulgated by the Texas Real Estate Commission.

How many classroom hours does TREC require for Texas sales agent qualifying education?

TREC lists 180 classroom hours: Principles of Real Estate I, Principles of Real Estate II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance, each at 30 classroom hours.

Is a Texas exam prep app the same as the required 180-hour pre-license course?

No. The Texas real estate exam prep app is for exam practice and review, not a substitute for TREC's required qualifying education. 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.

What is the current IABS form ID?

As verified on June 16, 2026, TREC lists Information About Brokerage Services as Form ID IABS 1-2, effective Jan. 1, 2026.

What is the current Consumer Protection Notice form ID?

As verified on June 16, 2026, TREC lists the Consumer Protection Notice as Form ID CN 1-5, effective Sept. 1, 2023.

What is the current Seller's Disclosure Notice form ID?

As verified on June 16, 2026, TREC lists Seller's Disclosure Notice as Form ID 55-1, effective May 28, 2026.

What is the biggest Texas agency trap?

The biggest agency trap is treating Texas intermediary like ordinary dual agency. Texas uses statutory intermediary, written consent, broker control, and appointed license holder rules.

What is the biggest Texas forms trap?

The biggest forms trap is drafting custom legal language instead of using promulgated forms properly or referring the party to an attorney.

Does TREC promulgate listing agreements or buyer representation agreements?

No. TREC states that it does not promulgate listing agreements or buyer representation agreements.

Can a sales agent receive commission directly from a buyer or seller?

No. Texas exam questions usually expect the compensation to go through the sales agent's sponsoring broker.

Can an inactive Texas sales agent negotiate a sale or lease for someone else?

No. TREC's FAQ states that an active real estate license is required to negotiate a real estate transaction between third parties.

How should I use this cheat sheet the day before the exam?

Read the one-screen tables, mark weak categories, then practice original questions in those categories. Do not spend the final day only rereading. Retrieval practice is stronger.

Primary-source verification (2026-06-16): This article was checked against Pearson VUE's Texas Real Estate exam page, Pearson VUE's 2026 Texas Real Estate Content Outlines, TREC's sales agent licensing page, TREC's Rules and Laws page, TREC's contract forms page, TREC's Information About Brokerage Services page, TREC's Consumer Protection Notice page, TREC's Seller's Disclosure Notice page, TREC's Notice to Purchaser of Special Taxing or Assessment District page, the Texas Comptroller's property tax exemption resources, and Texas statute chapter links used in the official source list. Requirements, forms, exam policies, item counts, fees, effective dates, and procedures can change. Verify current details with TREC and Pearson VUE before making licensing, scheduling, brokerage, contract, or exam decisions.

Sources And Methodology

This article uses official sources first. The exam outline and item-count references were checked against Pearson VUE's Texas Real Estate Content Outlines and Texas Real Estate exam page. Licensing, education, fingerprint, renewal, complaint, compensation, advertising, IABS, intermediary, and conduct references were checked against TREC's sales agent licensing page, TREC's Rules and Laws page, and TREC FAQ material.

Form references were checked against TREC's contract forms page and individual TREC form pages for IABS, Consumer Protection Notice, Seller's Disclosure Notice, and Notice to Purchaser of Special Taxing or Assessment District. Property tax figures were checked against Texas Comptroller guidance. Statutory concepts were cross-checked with official Texas statute chapter links.

This article intentionally avoids copied exam wording and uses original learning examples. It is designed as a condensed review tool for Texas sales agent candidates, so it prioritizes high-yield recognition, exam traps, and source-safe wording over exhaustive legal analysis.