Licensing accounts for 3 scored questions on the Texas State Law exam. These 15 free practice questions cover activities requiring a license, application requirements and license maintenance. Take the quiz without signing up, or read the answers with their sources. Learn to separate initial education from renewal education, and holding a license from having authority to practice.
15 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.
15 questions
~11 min
Texas State Law practice only
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Study mode · Texas rules
Work through the questions at your own pace.
Choose an answer mentally, then open its explanation. Each question has a source and a point to watch. These are original practice questions, not Pearson VUE exam items or a prediction of your result.
1
When brokerage requires a license
An individual negotiates a property purchase for another person expecting a fee. No statutory exemption applies. What authority is required before performing that brokerage?
A.Only the buyer's written authorization to negotiate the purchase.
B.Only registration with a local real estate association.
C.The appropriate Texas real estate license and, for a sales agent, active broker sponsorship.
D.An appraiser credential plus the buyer's written fee agreement.
Check answer and explanation
Correct answer: C. The appropriate Texas real estate license and, for a sales agent, active broker sponsorship.
Texas law treats negotiating a purchase for another with the expectation of valuable consideration as brokerage. The appropriate real estate license is required unless an exemption applies. A sales agent acts for a sponsoring broker, not independently. The requirement does not begin only when the fee is paid.
Watch for this: An expected fee can trigger the rule. Waiting to collect payment does not make unlicensed negotiation permissible.
Which situation falls outside the brokerage-license requirement because the person is acting as principal rather than for another?
A.A sole owner negotiates the sale of the owner's own property.
B.A neighbor negotiates the owner's sale for an expected referral payment.
C.A co-owner negotiates another owner's interest as that owner's paid agent.
D.An assistant negotiates a client's price while the broker is away.
Check answer and explanation
Correct answer: A. A sole owner negotiates the sale of the owner's own property.
An owner may sell or lease the owner's own property as principal without a broker license. That is different from acting as another owner's agent for compensation. Rule 535.5 expressly distinguishes conveying one's own co-ownership interest from acting for a co-owner.
Watch for this: Ownership is not a blanket exemption for paid representation of other owners.
An applicant has met TREC's licensing requirements and received an inactive sales agent license. What must happen before the person performs brokerage?
A.The person must wait for the first renewal date before requesting activation.
B.The person may begin after signing a private employment agreement alone.
C.The person may begin once a client signs a representation agreement.
D.Sponsorship with an active Texas broker must be established through TREC's process.
Check answer and explanation
Correct answer: D. Sponsorship with an active Texas broker must be established through TREC's process.
TREC issues an inactive sales agent license after the applicant satisfies the licensing requirements. The holder must establish sponsorship with an active Texas broker before practicing. Passing the exam or holding an inactive license does not authorize independent brokerage.
Watch for this: A signed agreement with a broker is not a substitute for completing the required sponsorship and activation process.
A first-time Texas sales agent applicant has no education waiver. How much qualifying real estate education is required for the initial license?
A.90 hours of qualifying courses, followed by the licensing examination.
B.180 hours of qualifying courses across six 30-hour courses.
C.270 hours of qualifying courses before taking either exam portion.
D.18 hours of continuing education, including both Legal Updates.
Check answer and explanation
Correct answer: B. 180 hours of qualifying courses across six 30-hour courses.
The initial requirement is 180 hours: Principles of Real Estate I and II, Law of Agency, Law of Contracts, Promulgated Contract Forms and Real Estate Finance, each worth 30 hours. The additional 90 qualifying hours associated with first renewal bring the sales agent's qualifying total to 270.
Watch for this: 270 is not a broker-only figure. Separate the sales agent's initial 180 hours from the additional qualifying education due by first renewal.
What is the ordinary renewal cycle for a Texas sales agent license?
A.Every year, measured from the latest sponsorship change.
B.Every four years, unless the holder changes brokerages.
C.Every two years, with the actual expiration shown on the license.
D.Only when the holder changes status from inactive to active.
Check answer and explanation
Correct answer: C. Every two years, with the actual expiration shown on the license.
TREC describes the normal renewal cycle as two years, and Section 1101.451 authorizes a 24-month license period. Rule 535.91 makes the expiration date shown on the license controlling. Check that date rather than calculating a deadline from a broker change or relying on a reminder.
Watch for this: Inactive status is not an indefinite extension. Missing a renewal notice does not remove the responsibility to renew.
A sales agent is approaching the first active renewal, has completed only the initial 180 qualifying hours and is not a delegated supervisor. Which education plan meets the ordinary first-renewal requirement?
A.90 more qualifying hours, including 30 in Brokerage, plus 8 hours of Legal Updates.
B.18 CE hours, including both Legal Updates and 3 hours of approved contracts.
C.90 more qualifying hours, including Brokerage, with no Legal Update coursework.
D.8 hours of Legal Updates plus 10 elective CE hours, with no additional qualifying courses.
Check answer and explanation
Correct answer: A. 90 more qualifying hours, including 30 in Brokerage, plus 8 hours of Legal Updates.
First renewal requires 90 additional qualifying hours, including the 30-hour Real Estate Brokerage course. For this active renewal, the agent also needs Legal Update I and II, 4 hours each. That is 98 additional hours in this scenario: 90 qualifying plus 8 CE. A delegated supervisor has an additional Broker Responsibility requirement.
Watch for this: Do not count the 8 Legal Update hours toward the 270 qualifying-hour total. First-renewal SAE cannot be deferred; renewing inactive does not remove the SAE requirement.
A sales agent has completed the first renewal and is now renewing active again. The agent is not a delegated supervisor and has no exemption or deferral. Which CE plan meets the ordinary requirement?
A.8 Legal Update hours plus 10 electives, with no contract-related coursework.
B.4 Legal Update I, 4 Legal Update II, 3 approved contracts and 7 elective hours.
C.3 approved contracts and 15 electives, with no Legal Update coursework.
D.90 qualifying hours including Brokerage, replacing both Legal Updates.
Check answer and explanation
Correct answer: B. 4 Legal Update I, 4 Legal Update II, 3 approved contracts and 7 elective hours.
A later active renewal ordinarily requires 18 CE hours: 4 Legal Update I, 4 Legal Update II, 3 approved contract-related hours and 7 electives. When a sales agent is a delegated supervisor, the required 6-hour Broker Responsibility course fits within the 18 hours. Inactive renewal has different CE rules.
Watch for this: First-renewal SAE is not repeated every cycle. Do not omit the 3 contract-related hours or require Broker Responsibility of every sales agent.
A prospective applicant has a criminal record and past professional-license discipline, but has not filed a real estate application. Which optional step lets the person ask TREC about fitness before applying?
A.Ask Pearson VUE to approve the applicant's background before reserving an exam.
B.Ask a sponsoring broker to issue a binding exemption from the background review.
C.Submit a license application and a Fitness Determination request at the same time.
D.Request a Fitness Determination from TREC before filing the license application.
Check answer and explanation
Correct answer: D. Request a Fitness Determination from TREC before filing the license application.
A Fitness Determination is an optional pre-application review based on the information supplied. TREC considers relevant criminal, disciplinary and other fitness issues under its rules. It is not a full background check or a substitute for the required fingerprint-based review. The request cannot be filed with or after a license application.
Watch for this: A favorable preliminary review is not an unconditional promise of a license. Incomplete information can change the outcome.
A sales agent forms an LLC that will advertise and negotiate leases for unrelated property owners for a fee. What does the LLC need to perform that brokerage?
A.Only an assumed-name filing, because the individual sales agent is licensed.
B.A business-entity broker license and a qualified individual designated broker.
C.Only compensation-entity registration, even while negotiating the owners' leases.
D.An inspector license and written permission from the owners to negotiate.
Check answer and explanation
Correct answer: B. A business-entity broker license and a qualified individual designated broker.
An entity acting as a broker needs a business-entity broker license. Its designated broker must be a licensed individual Texas broker in active status and good standing, with the required managing role. Section 1101.355(d) creates a narrow registration route for qualifying receipt-only entities; it does not authorize them to negotiate leases.
Watch for this: Receiving a license holder's earned compensation and performing brokerage are different activities. The receipt-only exception requires that the entity perform no other acts of a broker.
An attorney is licensed and eligible to practice law in Texas but does not hold a real estate broker license. Which statement correctly describes the attorney exemption?
A.It also lets the attorney sponsor sales agents without obtaining a broker license.
B.It automatically makes the attorney a licensed broker for TREC's entity records.
C.It permits exempt brokerage, but not sponsorship without a broker license.
D.It extends to every unlicensed assistant who works under the attorney's supervision.
Check answer and explanation
Correct answer: C. It permits exempt brokerage, but not sponsorship without a broker license.
A Texas attorney who is licensed and eligible to practice law is exempt from the real estate licensing requirement. Rule 535.31 does not let that attorney sponsor sales agents or serve as an entity's designated broker unless the attorney also holds the required real estate broker license.
Watch for this: An exemption from obtaining a license does not turn a person into a licensed broker or transfer to the person's staff.
A Texas appraiser has no broker or sales agent license and no applicable exemption. The appraiser agrees to negotiate a home purchase for a buyer for a fee. Which statement is correct?
A.The negotiation requires separate real estate brokerage authority.
B.The appraiser credential covers negotiation whenever value is discussed.
C.An inspector license would authorize the missing brokerage activity.
D.The buyer's consent replaces the requirement for a brokerage license.
Check answer and explanation
Correct answer: A. The negotiation requires separate real estate brokerage authority.
An appraiser credential does not authorize negotiating another person's purchase for compensation. Brokerage, appraisal and inspection are distinct regulated activities. The question expressly excludes an applicable exemption, so the individual needs the real estate license appropriate to the brokerage being performed.
Watch for this: Match the activity to its authority. A credential connected with real estate is not permission to perform every real estate service.
TREC has received a sales agent's sponsorship-termination notice and any required fee, making the termination effective. What is the agent's status?
A.The license is revoked, so the person must start the full application again.
B.The agent remains active for 90 days while looking for another sponsor.
C.The agent may finish existing brokerage work without a sponsor until renewal.
D.The license is inactive, and the agent must complete reactivation before practicing.
Check answer and explanation
Correct answer: D. The license is inactive, and the agent must complete reactivation before practicing.
Rule 535.121 makes sponsorship termination effective when TREC receives the required notice and fee. The sales agent's license becomes inactive, not revoked. Rule 535.120 prohibits brokerage while inactive. Reactivation under Rule 535.122 includes the required education documentation, certification, sponsorship and fee.
Watch for this: There is no general 90-day practice grace period after sponsorship ends. An informal agreement with a new broker is not completed reactivation.
A sponsored sales agent plans to advertise under a new team name. What must happen before that name appears in advertising?
A.The agent must file it as an individual broker's assumed business name.
B.The agent may use it now if the broker promises to register it at renewal.
C.The sponsoring broker must register the team name with TREC before use.
D.The local association must approve the name in place of TREC registration.
Check answer and explanation
Correct answer: C. The sponsoring broker must register the team name with TREC before use.
Rule 535.154 requires the sponsoring broker to register a team name before it is used in advertising. The name must end in "team" or "group" and cannot suggest that the team offers brokerage independently of the broker. Individual alternate names and a broker's assumed business names follow different registration provisions.
Watch for this: A team name is not a separate brokerage license. Registration does not remove the broker's supervision or other advertising requirements.
On the first attempt, a sales agent applicant passes National but fails Texas State Law. The passed result and application remain valid, and no exam waiver applies. What is the correct next step?
A.Retake the failed State portion; both portions must be passed for licensure.
B.Retake both portions because the first sitting must produce two passing scores.
C.Average both scores and request a license if the combined average reaches 70%.
D.Activate the license now and complete the State portion before first renewal.
Check answer and explanation
Correct answer: A. Retake the failed State portion; both portions must be passed for licensure.
A sales agent must pass each portion separately. A passed National result does not offset a failed State result or authorize a license on its own. With a valid passed result and application, the applicant retakes the failed portion. Rule 535.57 sets separate result-validity and additional-education rules that matter if time passes or failures accumulate.
Watch for this: Do not combine scores or treat a partial pass as permission to practice. Check both the result's validity and the application's deadline.
TREC sends an applicant written notice denying a sales agent license application. What must the applicant do to contest that denial under Rule 533.3?
A.Request a hearing within 30 days after receiving the notice, regardless of when it was sent.
B.Request a hearing in writing no later than the 30th day after the notice is sent.
C.Ask Pearson VUE for an appeal before taking any action with TREC.
D.Submit a written hearing request within 60 days after TREC sends the notice.
Check answer and explanation
Correct answer: B. Request a hearing in writing no later than the 30th day after the notice is sent.
Rule 533.3 requires a written hearing request no later than the 30th day after the denial notice is sent. Without a timely request, the denial becomes final. This is the process for contesting the application denial, not a request for Pearson to reconsider an exam score.
Watch for this: The triggering event is notice sent, not notice received. Read the denial and follow its instructions promptly.
180 qualifying hours across six 30-hour courses for the ordinary first-time sales agent application. Exam practice does not replace approved coursework.
90 additional qualifying hours, including 30 in Brokerage, plus 8 Legal Update hours. A delegated supervisor also needs Broker Responsibility. SAE still applies when renewing inactive.
Ordinarily 18 CE hours: 8 Legal Updates, 3 approved contracts and 7 electives. A delegated supervisor includes Broker Responsibility within the 18 hours.
No brokerage while inactive. A new broker agreement alone does not complete reactivation; follow TREC's education, certification, sponsorship and fee requirements.
A qualifying receipt-only entity cannot use registration to perform brokerage. An entity negotiating leases for others needs the appropriate broker license and designated broker.
Request a hearing in writing no later than the 30th day after TREC sends the denial notice. This is not a deadline measured from receipt.
This table covers ordinary sales agent requirements, not every waiver or special application route. Do not apply the active-renewal CE rule to an inactive renewal without checking the exception.
Know the scope
How this set fits the Texas State Law outline.
The official topic has 3 scored items. The counts below describe our 15-question sample, not a promise of which questions you will see. Pearson does not publish per-subtopic item counts or a cognitive mix for this State topic.
Licensing: official groups and our sample counts
Texas subtopic
Our questions
Activities Requiring License
5
Licensing Process
5
License Maintenance and Renewal
5
A sample is not complete coverage of every possible question. See Pearson VUE's Texas Sales Agent outline, section II. Sources beside each answer explain the underlying principle. Texas-specific rules and examples link to their own authority.
These are original, hypothetical practice scenarios, not official Pearson VUE questions. The rules and statutes behind the answers are real. This short set checks understanding; it is not a calibrated prediction of passing.
Pearson lists three groups and 13 named subtopics for Licensing without publishing per-subtopic item counts or a cognitive mix. The sample covers scope, exemptions, business entities, inspectors and appraisers, general requirements, education, examination, denial grounds, appeals, continuing education, sponsorship changes, inactive status and assumed names.
Before choosing an answer, ask two things: what activity is the person performing, and which stage of licensing applies? Initial qualification, first renewal and later active renewal use different education rules.
Choose what to study next.
Start with the lesson behind a missed question, then try another problem without notes.
How much of the Texas State Law exam is Licensing?
Pearson's Sales Agent outline assigns Licensing 3 scored items. Its three groups cover activities requiring a license, the licensing process, and maintenance and renewal. These 15 original questions provide practice across those groups, not a prediction of the questions you will receive.
What are the general requirements for a Texas sales agent license?
For the ordinary application route, TREC requires an applicant to be at least 18, be a U.S. citizen or lawfully admitted alien, and meet honesty, trustworthiness and integrity requirements. The process includes qualifying education, fingerprints, the application and passing the required exam portions. Active broker sponsorship is required before brokerage. Passing the exam alone does not complete licensing.
Is the education requirement 180, 270 or 18 hours?
They describe different stages. Initial qualifying education is 180 hours. First renewal adds 90 qualifying hours, including Brokerage, bringing that qualifying total to 270. A first active renewal also requires the two Legal Updates. Later active renewals ordinarily require 18 CE hours. A delegated supervisor must satisfy the applicable Broker Responsibility requirement.
Can I renew inactive without completing first-renewal SAE?
No. The additional qualifying education required for first renewal cannot be deferred, including when renewing inactive. Inactive renewal can be exempt from CE, but that does not waive SAE. Check TREC's renewal instructions for your record and complete the activation requirements before practicing.
Does a Fitness Determination replace the background check?
No. It is an optional review before applying, based on the information you supply. It does not include a full background check or replace required fingerprints. TREC can consider criminal history, professional discipline, unlicensed activity and other relevant fitness issues. Do not treat a preliminary determination as an unconditional license approval.
Can TREC deny an application for false information?
Yes. Rule 535.52 identifies false or misleading application information as a possible ground for denial, along with other fitness grounds. A denial can be contested through a timely written hearing request. Under Rule 533.3, the request is due no later than the 30th day after TREC sends the denial notice.
What changes when a team uses an assumed name?
The type of name matters. An individual's alternate name, a team name and a broker's assumed business name are different categories under Rule 535.154. The sponsoring broker registers the team name before advertising. The team name must end in "team" or "group" and must not imply independent brokerage.
Does this quiz count toward TREC education hours?
No. This page is independent exam practice, not a qualifying or continuing-education course. Use TREC-approved education for licensing and renewal credit. You can keep studying here for free, or explore Pass Texas in your browser or on your phone for additional practice.
Sources and review notes
Reviewed September 7, 2026 for rules effective through September 5, 2026. Each answer links to the statute or TREC guidance supporting it. Pearson supplies the syllabus, not these questions. The scenarios are hypothetical. This is independent exam practice, not TREC-approved qualifying education or CE credit. For an actual application or renewal, check your TREC record and the requirements that apply to your circumstances. This page is exam preparation, not advice for a transaction.
Use the source beside an answer to check the specific rule.
