Licensing Practice Questions
Licensing has 3 scored items on the Texas state-law portion. It covers which activities require a license and the exemptions, how a sales agent license is obtained and maintained, the need for an active sponsoring broker, and continuing education. Work the questions below, then read every explanation.
Exam prep only
These questions test who must be licensed, what activates a sales agent license, and how it is kept in good standing. The recurring theme is that a sales agent must be sponsored by an active broker to act.
Use the activate-then-maintain read. First confirm what makes a license active, then apply the maintenance rule. Education hours and renewal cycles should be checked against current TREC requirements when applying outside exam practice.
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Licensing Practice Questions
15 scenario-based questions on licensing, scored, each with a full explanation after you answer. Every question is also written out below if you would rather study at your own pace.
Every question explained
Prefer to study at your own pace? Here are all 15 questions. Read each one and pick your answer, then reveal the correct answer, the reasoning, and the trap that catches most candidates.
1. A person performs real estate brokerage activity for another for compensation. Under Texas law, that person must
- A.hold a Texas real estate license
- B.merely register with the local board
- C.be at least 25 years old, with no license
- D.hold an appraiser license
Show answer and explanation
Correct answer: A. hold a Texas real estate license
Why A is correct: A person who performs an act of real estate brokerage for another in exchange for compensation must hold a Texas real estate license. For a sales agent, that license must be held in the name of and supervised by a sponsoring broker.
Trap: Acting as a broker for compensation requires a license. Local registration or age alone is not enough.
Source: Texas Occ. Code §§1101.002(1), 1101.004, 1101.351(a)
2. Which of the following is generally exempt from the requirement to hold a real estate license?
- A.A person negotiating sales for many different owners for a fee
- B.An owner selling or leasing the owner's own property
- C.A salesperson at a brokerage with no license
- D.An unlicensed assistant who negotiates contracts
Show answer and explanation
Correct answer: B. An owner selling or leasing the owner's own property
Why B is correct: An owner dealing with the owner's own property is generally exempt from the licensing requirement, as are certain attorneys and other specified persons. Negotiating sales for others for a fee requires a license.
Trap: Selling your own property is exempt. Negotiating for others for compensation is not.
Source: Texas Occ. Code §1101.005; 22 TAC §535.5
3. To activate and use a Texas sales agent license, the candidate must
- A.simply pass the exam and wait
- B.complete the required qualifying education, pass the exam, meet fitness requirements, and be sponsored by an active broker
- C.open a brokerage immediately
- D.complete continuing education before the exam
Show answer and explanation
Correct answer: B. complete the required qualifying education, pass the exam, meet fitness requirements, and be sponsored by an active broker
Why B is correct: A sales agent license is activated by completing the required qualifying education, passing the exam, meeting honesty and fitness requirements, and being sponsored by an active broker. Holding the license without a sponsoring broker does not allow brokerage activity.
Trap: Passing the exam alone does not let a sales agent work. An active sponsoring broker is required to act.
Source: Texas Occ. Code §§1101.351(c), 1101.354, 1101.363(b); 22 TAC §§535.51, 535.55(c)
4. How many hours of qualifying education must a Texas sales agent applicant complete before being licensed?
- A.60 hours
- B.120 hours
- C.180 hours
- D.270 hours
Show answer and explanation
Correct answer: C. 180 hours
Why C is correct: A Texas sales agent applicant must complete 180 hours of qualifying real estate education, made up of six 30-hour courses, including Principles of Real Estate I and II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance.
Trap: 180 hours is the sales agent qualifying-education requirement. The 270-hour figure relates to additional broker education, not the initial sales agent license.
Source: Texas Occ. Code §1101.358; 22 TAC §535.55(a)
5. A Texas real estate license is issued for a term of
- A.one year
- B.two years
- C.four years
- D.the life of the license holder
Show answer and explanation
Correct answer: B. two years
Why B is correct: A Texas real estate sales agent or broker license is issued for a two-year term and must be renewed before it expires. Renewal requires the applicable education and fees.
Trap: The license term is two years, not one. Continuing education is tied to that two-year renewal cycle.
Source: Texas Occ. Code §1101.451(a); 22 TAC §535.91
6. At a sales agent's FIRST license renewal, the additional education required is
- A.18 hours of continuing education
- B.90 hours of Sales Agent Apprentice Education (SAE), including the 30-hour Real Estate Brokerage course
- C.nothing beyond the renewal fee
- D.another 180 hours of qualifying education
Show answer and explanation
Correct answer: B. 90 hours of Sales Agent Apprentice Education (SAE), including the 30-hour Real Estate Brokerage course
Why B is correct: Before the first renewal, a sales agent must complete 90 additional qualifying hours, bringing the total to 270, and those hours must include the 30-hour Real Estate Brokerage course. Legal Update I and II are also required. A delegated supervisor must include the Broker Responsibility Course when Rule 535.92 makes it applicable.
Trap: First renewal is not the ordinary later-renewal CE cycle. SAE cannot be deferred, even when the holder renews inactive.
Source: 22 TAC §§535.55(b), 535.91(d), 535.92(a)
7. After the first renewal, the continuing education a Texas license holder must complete each renewal period is
- A.18 hours, including Legal Update I, Legal Update II, and 3 hours of contract-related coursework
- B.30 hours of any approved courses
- C.no continuing education once licensed
- D.90 hours of apprentice education each cycle
Show answer and explanation
Correct answer: A. 18 hours, including Legal Update I, Legal Update II, and 3 hours of contract-related coursework
Why A is correct: A regular sales agent's later active renewal requires 18 hours: 4 hours of Legal Update I, 4 hours of Legal Update II, 3 hours of approved contract-related coursework, and 7 elective hours. A delegated supervisor must include the 6-hour Broker Responsibility Course within the 18 hours.
Trap: The 3 contract-related hours are required. The 2026 rule makes Broker Responsibility mandatory for every broker, but not for a sales agent who is not a delegated supervisor.
Source: Texas Occ. Code §1101.455; 22 TAC §535.92(a)
8. Before applying, an applicant worried about a past criminal issue may ask TREC to evaluate eligibility by requesting a
- A.Fitness Determination
- B.broker price opinion
- C.certificate of occupancy
- D.homestead exemption
Show answer and explanation
Correct answer: A. Fitness Determination
Why A is correct: A person concerned about criminal, disciplinary, unlicensed-activity, or unpaid-judgment history may request an optional Fitness Determination before applying. It does not replace the fingerprint-based background check required during the application process.
Trap: Fitness Determination is optional and pre-application. Fingerprints and the full background review remain separate requirements.
Source: Texas Occ. Code §§1101.3521, 1101.353; 22 TAC §§535.52, 541.2
9. A sales agent forms an LLC that will advertise and negotiate leases for property owners. For the LLC to perform that brokerage, it generally must
- A.register only as the sales agent's personal brand
- B.hold a business-entity broker license and have a qualified designated broker
- C.obtain an inspector license
- D.file an assumed-name certificate without involving TREC
Show answer and explanation
Correct answer: B. hold a business-entity broker license and have a qualified designated broker
Why B is correct: A business entity acting as a broker must hold the proper entity license and designate an individual Texas broker in active status and good standing who has managing authority. A narrow registered compensation entity may receive a holder's compensation, but it may not perform brokerage.
Trap: Entity registration and entity broker licensing are different. Negotiating leases is brokerage, not receipt-only activity.
Source: Texas Occ. Code §§1101.351(a-1), 1101.355; 22 TAC §§535.5(g), 535.53
10. Which person is generally EXEMPT from the requirement to hold a Texas real estate license?
- A.An unlicensed assistant who negotiates contracts for a broker
- B.An attorney licensed and eligible to practice law in Texas
- C.A person who lists homes for several owners for a fee
- D.A sales agent without a sponsoring broker
Show answer and explanation
Correct answer: B. An attorney licensed and eligible to practice law in Texas
Why B is correct: A Texas attorney who is licensed and eligible to practice law is exempt from TRELA's licensing requirements. The attorney cannot sponsor sales agents or act as an entity's designated broker unless also licensed as a real estate broker.
Trap: The exemption belongs to the qualifying Texas attorney. It does not extend to an unlicensed assistant or create broker sponsorship authority.
Source: Texas Occ. Code §1101.005(1); 22 TAC §535.31
11. A person holds a Texas real estate appraiser credential but no broker or sales-agent license. The person agrees to negotiate a home purchase for a buyer for a fee. Which statement is correct?
- A.The appraiser credential automatically authorizes brokerage
- B.Negotiating for another for compensation raises a separate brokerage-license requirement
- C.No license is needed because the property is residential
- D.An inspector license would supply the missing authority
Show answer and explanation
Correct answer: B. Negotiating for another for compensation raises a separate brokerage-license requirement
Why B is correct: Appraisal, inspection, and brokerage are separately regulated activities. An appraiser credential does not authorize a person to negotiate a purchase for another for compensation.
Trap: Do not swap real-estate credentials. Test the activity against the license that actually authorizes it.
Source: Texas Occ. Code §§1101.004, 1101.351, 1103.201; 22 TAC §535.208
12. When a sales agent's sponsorship by a broker ends, the sales agent's license
- A.is automatically revoked
- B.becomes inactive, and the agent may not perform brokerage until sponsored again
- C.continues to allow brokerage activity for 90 days
- D.transfers to the agent's own brokerage
Show answer and explanation
Correct answer: B. becomes inactive, and the agent may not perform brokerage until sponsored again
Why B is correct: When sponsorship ends, the sales agent's license becomes inactive. An inactive license holder may not perform any act of real estate brokerage until a new sponsoring broker is in place and TREC records are updated.
Trap: Loss of sponsorship makes the license inactive, not revoked. No brokerage activity is allowed while inactive.
Source: Texas Occ. Code §1101.367; 22 TAC §§535.120-535.122
13. Before a sales agent advertises under a team name, which step is required?
- A.The sales agent privately adopts the name without telling the broker
- B.The sponsoring broker registers the team name with TREC before use
- C.The sales agent registers it as an individual broker assumed business name
- D.The team waits until the next license renewal
Show answer and explanation
Correct answer: B. The sponsoring broker registers the team name with TREC before use
Why B is correct: Rule 535.154 requires the sponsoring broker to register a team name before it appears in advertising. The name must end in "team" or "group" and may not imply that the team offers brokerage independently from the broker.
Trap: Alternate names, team names, and broker assumed business names use different registration paths.
Source: Texas Occ. Code §1101.351(c); 22 TAC §535.154(c)
14. Which statement about who may sponsor a sales agent is correct?
- A.Another sales agent may sponsor a sales agent
- B.Only an active Texas broker may sponsor a sales agent
- C.A sales agent needs no sponsor once licensed
- D.A title company may sponsor a sales agent
Show answer and explanation
Correct answer: B. Only an active Texas broker may sponsor a sales agent
Why B is correct: Only an active Texas broker may sponsor a sales agent. A sales agent cannot sponsor another sales agent, and a sales agent cannot operate independently or as a broker.
Trap: Sales agents are sponsored by brokers, never by other sales agents. Supervision and responsibility run to the broker.
Source: Texas Occ. Code §§1101.351(c), 1101.367; 22 TAC §535.121
15. TREC sends an applicant written notice that the sales-agent license application is denied. To contest the denial, the applicant must
- A.request a hearing in writing no later than the 30th day after the notice is sent
- B.wait until the license would have expired
- C.appeal directly to Pearson VUE
- D.file a new application the next day instead of requesting a hearing
Show answer and explanation
Correct answer: A. request a hearing in writing no later than the 30th day after the notice is sent
Why A is correct: Section 1101.364 gives a denied applicant the right to a hearing. Rule 533.3 requires a written hearing request no later than the 30th day after TREC sends the denial notice. Without a timely request, the denial becomes final.
Trap: TREC, not Pearson VUE, decides the application. The 30-day written-request deadline controls the administrative appeal.
Source: Texas Occ. Code §1101.364; 22 TAC §§533.3, 535.54
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Get the full question bankFrequently asked questions
Who must hold a Texas real estate license?+
A person who performs real estate brokerage for another with the expectation of valuable consideration generally needs the appropriate Texas license unless a specific exemption applies. A sales agent also needs active broker sponsorship.
Who is exempt from holding a real estate license?+
Texas law lists fact-specific categories, including an owner acting as principal, a qualifying Texas attorney, certain owner employees, an on-site apartment manager, and persons acting under specified legal authority. Each exemption must match the facts.
What does it take to activate a Texas sales agent license?+
After the applicant meets the licensing requirements, TREC issues an inactive sales-agent license. The holder must establish sponsorship with an active Texas broker before performing brokerage.
How many education hours does a Texas sales-agent applicant need?+
The initial requirement is 180 classroom hours across Principles of Real Estate, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance.
What does a Texas sales agent need for later active renewals?+
A regular sales agent needs 18 CE hours, including Legal Update I, Legal Update II, three hours of contract-related coursework, and approved electives. A delegated supervisor must include Broker Responsibility within the 18 hours.
Can an inactive sales agent practice brokerage?+
No. Rule 535.120 prohibits brokerage while inactive. The holder must meet the reactivation requirements and establish sponsorship before acting.