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Texas Standards of Conduct Practice Questions

Standards of Conduct accounts for 9 scored questions on the Texas State Law exam. This free 15-question quiz covers all seven outline groups: ethics, discipline, unauthorized practice of law, trust accounts, fee splitting, rebates and advertising. Each answer explains the rule and a common trap, with a source you can check. Start the quiz or study the explanations at your own pace.

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Standards of Conduct Practice Questions

15 questions on standards of conduct, 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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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.

When convenience conflicts with a client's choice

A seller's property is not under contract. The listing agent prefers a quick cash closing and hides a higher financed offer solely to avoid extra work. Which answer best applies the fidelity canon?

The agent may screen out offers whenever financing could delay closing.
The agent put personal convenience above the client's interest.
The agent may withhold the offer if the advertised price was already met.
The agent fulfilled fidelity by choosing the easiest transaction to close.

Check answer and explanation

Correct answer: B. The agent put personal convenience above the client's interest.

Rule 531.2 makes the client's interests primary and prohibits putting personal interests first. The seller decides which offer to accept. Rule 535.156(a)'s written-instruction exception for later offers after a client enters a contract does not apply: this property is not under contract.

Why the other choices miss:

A. The agent may screen out offers whenever financing could delay closing: Financing may affect the seller's decision, but it does not authorize the agent to hide an offer for personal convenience.
C. The agent may withhold the offer if the advertised price was already met: Meeting the asking price does not remove the duty to present offers. The seller still decides which terms to accept.
D. The agent fulfilled fidelity by choosing the easiest transaction to close: An easier closing benefits the agent here. Fidelity requires putting the client's interests ahead of that preference.

Watch for this: An offer with financing is not automatically better or worse. The violation is hiding it for the agent's convenience.

Rule: TREC Rules 531.2(1)-(3), 535.156(a)-(b); TRELA 1101.557(b)

A new market and property type

An agent experienced only with urban homes takes a remote ranch listing without learning the local market or the property's specialized characteristics. Which canon most directly addresses those gaps?

Fidelity, which makes the client's interests the agent's primary duty.
Integrity, which calls for care to avoid misrepresentation by act or omission.
Fidelity, because it requires fair treatment of other parties in the transaction.
Competency, which requires local-market and property-type knowledge.

Check answer and explanation

Correct answer: D. Competency, which requires local-market and property-type knowledge.

Rule 531.4 requires knowledge of the local market, industry developments and the characteristics of the property type, together with judgment and skill. The agent is not permanently barred from ranch work, but needs the competence to perform it.

Why the other choices miss:

A. Fidelity, which makes the client's interests the agent's primary duty: Fidelity concerns loyalty to the client. The specific gap here is knowledge needed to handle this market and property.
B. Integrity, which calls for care to avoid misrepresentation by act or omission: Integrity addresses misrepresentation. The question describes missing market and property knowledge, which competency directly covers.
C. Fidelity, because it requires fair treatment of other parties in the transaction: Fair treatment matters, but it does not answer whether the agent has the knowledge and skill for this assignment.

Watch for this: Distinguish an unfamiliar assignment from a prohibited assignment. A license alone does not establish competence in every market.

Rule: TREC Rules 531.2, 531.3, 531.4(1)-(4)

A known defect is not sales talk

While marketing a house, a license holder knows of a serious latent foundation defect that would matter to a reasonable buyer. The license holder tells a prospective buyer there are no known structural problems. Which statement is correct?

The false statement is a material misrepresentation and a ground for discipline.
The statement is protected sales opinion because an inspection is available.
Only failing to provide an inspection report could support discipline here.
Only the seller can face discipline because the seller owns the defective house.

Check answer and explanation

Correct answer: A. The false statement is a material misrepresentation and a ground for discipline.

Section 1101.652(b)(3) addresses a material misrepresentation about a known significant defect, including a latent structural defect. Subsection (b)(4) separately addresses failure to disclose it. The integrity canon also requires care to avoid misrepresentation. A buyer's opportunity to inspect does not excuse the false statement.

Why the other choices miss:

B. The statement is protected sales opinion because an inspection is available: An inspection opportunity does not turn a knowingly false statement about a significant defect into protected opinion.
C. Only failing to provide an inspection report could support discipline here: Discipline can rest on the material misrepresentation itself. It does not depend solely on withholding an inspection report.
D. Only the seller can face discipline because the seller owns the defective house: The license holder made the false statement. The seller's ownership does not shield that license holder from discipline.

Watch for this: A known significant defect is a material fact, not puffing. Do not assume that a ground for discipline means an automatic, predetermined penalty.

Rule: TRELA 1101.652(b)(3)-(4); TREC Rule 531.3

Buying for your own account

A Texas sales agent is buying a home solely for the agent's own account. No license-status disclosure has been made. Which step satisfies Rule 535.144(b)?

Disclose the license orally to the seller before signing the purchase contract.
Disclose the license in writing for the first time when the transaction closes.
Include written license-status disclosure in the contract or an earlier writing.
Send written license-status disclosure only to TREC before making the offer.

Check answer and explanation

Correct answer: C. Include written license-status disclosure in the contract or an earlier writing.

The disclosure must identify the buyer as a licensed broker or sales agent acting on the buyer's own behalf. It can appear in the contract or in another writing given before the parties enter the agreement. The rule also covers the specified family, entity and trust capacities in subsection (a).

Why the other choices miss:

A. Disclose the license orally to the seller before signing the purchase contract: An oral disclosure does not satisfy this rule. The required disclosure must appear in the contract or an earlier writing.
B. Disclose the license in writing for the first time when the transaction closes: Closing is too late for the first disclosure. The rule requires written disclosure in the contract or before it.
D. Send written license-status disclosure only to TREC before making the offer: Telling TREC does not provide the required written disclosure to the other party to this transaction.

Watch for this: The transaction being personal does not remove the written-disclosure duty. Oral disclosure or a later closing disclosure is not a substitute.

Rule: TREC Rule 535.144(a)-(c)

TREC Rule 535.144: license holder acting as principal

The client asks for a custom contingency

A buyer asks a sales agent who is not an attorney to invent a contingency giving the buyer a new termination right. No applicable approved addendum addresses it. What should the agent do?

Write the clause after the buyer approves the wording in an email.
Advise the buyer to consult an attorney rather than draft the clause.
Draft the clause if the sponsoring broker agrees with its purpose.
Copy a clause from an unrelated sale and explain its legal effect.

Check answer and explanation

Correct answer: B. Advise the buyer to consult an attorney rather than draft the clause.

Rule 537.11(b)(5) prohibits drafting or recommending language that defines or affects legal rights, obligations or remedies, expressly including contingency clauses. Unusual matters call for the principal to consult an attorney under subsection (e). Client approval does not authorize the agent to invent legal wording.

Why the other choices miss:

A. Write the clause after the buyer approves the wording in an email: A buyer's approval of agent-written language does not authorize the agent to draft a new contingency affecting legal rights.
C. Draft the clause if the sponsoring broker agrees with its purpose: Broker approval does not give a nonattorney sales agent authority to draft a custom legal contingency.
D. Copy a clause from an unrelated sale and explain its legal effect: Borrowing language from another transaction does not make it an approved addendum or permit the agent to give legal advice.

Watch for this: Filling in a factual blank is different from creating a legal right. The agent should not act as the client's legal adviser.

Rule: TREC Rule 537.11(b)(2)-(5), (e)

TREC Rule 537.11: forms, legal advice and written instructions

Following exact written instructions

Before anyone signs a proposed contract, the seller gives the agent a specific written instruction identifying a sentence to delete from an authorized form. The agent strikes it through conspicuously, without choosing new wording or giving legal advice. Under Rule 537.11, this act is:

Within the narrow provision for a principal's specific written instructions.
Prohibited solely because any deletion from an authorized form is legal drafting.
Allowed only if the agent first advises the seller about its legal consequences.
Allowed only if the agent substitutes wording approved by the sponsoring broker.

Check answer and explanation

Correct answer: A. Within the narrow provision for a principal's specific written instructions.

Rule 537.11(d)(2) permits adding or striking language at a principal's specific written instruction when the change is conspicuous. This is not authority to invent the language or advise on its legal effect. The question describes an unsigned proposal, not permission to alter an executed agreement without the other party.

Why the other choices miss:

B. Prohibited solely because any deletion from an authorized form is legal drafting: The rule permits this narrow, conspicuous change at a principal's specific written instruction. Not every deletion is prohibited.
C. Allowed only if the agent first advises the seller about its legal consequences: The exception does not require legal advice from the agent. Giving that advice would create a separate problem.
D. Allowed only if the agent substitutes wording approved by the sponsoring broker: The principal supplied the specific written instruction. Substituting the broker's own legal wording falls outside that exception.

Watch for this: Read who supplied the instruction. An agent's own drafting does not become lawful just because the client later approves it.

Rule: TREC Rule 537.11(b), (d)(2)

TREC Rule 537.11: forms, legal advice and written instructions

When the sales agent receives earnest money

A buyer hands an earnest-money check to a sponsored Texas sales agent to hold for the transaction. What does Rule 535.146 require the sales agent to do with that trust money?

Keep the check until the broker's second-working-day deadline arrives.
Place it in the sales agent's own separately labeled trust account.
Deposit it in an operating account while keeping a separate client ledger.
Deliver it immediately to the sales agent's sponsoring broker.

Check answer and explanation

Correct answer: D. Deliver it immediately to the sales agent's sponsoring broker.

Rule 535.146(b)(2) says a sales agent may not maintain a trust account and must immediately deliver received trust money to the sponsoring broker. The broker has separate handling duties. A deadline that applies to the broker does not give the sales agent a holding period.

Why the other choices miss:

A. Keep the check until the broker's second-working-day deadline arrives: The broker's handling deadline does not give a sales agent a waiting period. The agent must deliver trust money immediately.
B. Place it in the sales agent's own separately labeled trust account: A sales agent may not maintain a trust account. Labeling a personal account as a trust account does not fix that problem.
C. Deposit it in an operating account while keeping a separate client ledger: A ledger does not make an operating account an appropriate place for a sales agent to hold transaction trust money.

Watch for this: Separate receipt by the sales agent from receipt by the broker. Do not start with the broker's deadline before identifying who has the money.

Rule: TREC Rule 535.146(a), (b)(1)-(3)

TREC Rule 535.146: trust-money handling and exceptions

Count from the broker's receipt

A broker receives trust money on Monday. Tuesday and Wednesday are ordinary working days, and the principals have not agreed in writing to different deposit timing. By when must the broker deposit it in the trust account or deliver it to an authorized escrow agent?

Close of business Monday, the same day the broker receives it.
Close of business Tuesday, one working day after receipt.
Close of business Wednesday, two working days after receipt.
Close of business Thursday, three working days after receipt.

Check answer and explanation

Correct answer: C. Close of business Wednesday, two working days after receipt.

Rule 535.146(b)(3) sets the outside limit at close of business on the second working day after the broker receives the money, unless the principals expressly agree to a different time in writing. Tuesday is day one and Wednesday is day two.

Why the other choices miss:

A. Close of business Monday, the same day the broker receives it: Monday is the receipt day. With no different written agreement, the rule allows through the second working day after receipt.
B. Close of business Tuesday, one working day after receipt: Tuesday is the first working day after Monday receipt. Wednesday is the second working day in this scenario.
D. Close of business Thursday, three working days after receipt: Thursday would be the third working day. That confuses this broker-handling rule with a different contractual deadline.

Watch for this: This is the broker's regulatory handling deadline. It does not replace the buyer's separate contractual earnest-money delivery deadline.

Rule: TREC Rule 535.146(b)(3)

TREC Rule 535.146: trust-money handling and exceptions

Using trust money for office rent

A broker takes a buyer's earnest money from the trust account to pay the brokerage's office rent, intending to replace it next week. Which answer best describes the conduct?

It is a permitted temporary advance if the broker repays it before closing.
It is an improper withdrawal and evidence of commingling under the rule.
It is a permitted bank-service-fee reserve if the broker records the amount.
It is permitted whenever the trust account still has enough for other clients.

Check answer and explanation

Correct answer: B. It is an improper withdrawal and evidence of commingling under the rule.

Rule 535.146(b)(4)-(5) prohibits commingling and identifies operating-expense payments or other improper withdrawals as prima facie evidence of it. Subsection (d)(1) limits disbursements to the agreement under which the money was received. Using another person's funds for the broker's own purpose is commonly described as conversion.

Why the other choices miss:

A. It is a permitted temporary advance if the broker repays it before closing: An intention to replace the money does not authorize using transaction trust funds for brokerage operating expenses.
C. It is a permitted bank-service-fee reserve if the broker records the amount: The limited bank-service-fee reserve concerns reasonable, documented broker funds. It does not allow spending the buyer's funds on rent.
D. It is permitted whenever the trust account still has enough for other clients: Other clients' balances do not authorize this withdrawal. Each transaction's trust money must be handled for its proper purpose.

Watch for this: The narrow, documented bank-service-fee reserve in subsection (c)(4) is not permission to use a buyer's money for office rent. A promise to repay does not cure the withdrawal.

Rule: TREC Rule 535.146(b)(4)-(5), (c)(4), (d)(1); TRELA 1101.652(b)(9)-(10)

A small cash referral payment

A broker promises an unlicensed neighbor $30 cash for referring a prospective buyer. The neighbor makes the referral expecting that payment. The neighbor sells no goods or services to the broker and has no applicable license exemption. Which statement is correct?

The payment is allowed because its cash value is less than $50.
The payment is allowed if the neighbor does not discuss price or terms.
The payment is allowed if described as a thank-you rather than commission.
The expected cash payment makes this referral an act requiring a license.

Check answer and explanation

Correct answer: D. The expected cash payment makes this referral an act requiring a license.

Rule 535.20(a) treats a referral made with the expectation of valuable consideration as licensed activity and expressly includes money. Its separate threshold for gifts of merchandise is not a cash allowance. The stem rules out the goods-or-services arrangement described in subsection (b).

Why the other choices miss:

A. The payment is allowed because its cash value is less than $50: The merchandise threshold is not a cash safe harbor. The scenario involves cash for a referral and excludes an applicable exemption.
B. The payment is allowed if the neighbor does not discuss price or terms: Avoiding price discussions does not remove the license issue created by accepting valuable consideration for this referral.
C. The payment is allowed if described as a thank-you rather than commission: Calling the promised payment a thank-you does not change what it pays for: an expected real estate referral.

Watch for this: Identify what is being paid for and the form of payment. Thirty dollars in cash is not treated as a small merchandise gift.

Rule: TREC Rules 535.20(a)-(b), 535.147(a)

Cooperating with an out-of-state broker

A Texas broker wants to share an earned commission with a broker licensed in another state who does not hold a Texas license. Which condition fits the exception in TRELA 1101.651(a)(2)?

The out-of-state broker conducts none of the compensated negotiations in Texas.
The out-of-state broker conducts Texas negotiations only with the Texas broker present.
The out-of-state broker conducts Texas negotiations only by obtaining the client's consent.
The out-of-state broker conducts Texas negotiations only after disclosing the other-state license.

Check answer and explanation

Correct answer: A. The out-of-state broker conducts none of the compensated negotiations in Texas.

The statute permits compensation to a real estate broker licensed in another state who does not conduct in Texas any of the negotiations for which the compensation is paid. That exception allows cooperation; it does not authorize unlicensed negotiating activity in Texas.

Why the other choices miss:

B. The out-of-state broker conducts Texas negotiations only with the Texas broker present: A Texas broker's presence does not satisfy the stated exception if the unlicensed out-of-state broker conducts compensated negotiations in Texas.
C. The out-of-state broker conducts Texas negotiations only by obtaining the client's consent: Client consent does not substitute for the statutory condition that none of the compensated negotiations occur in Texas.
D. The out-of-state broker conducts Texas negotiations only after disclosing the other-state license: Disclosing another state's license does not authorize compensated Texas negotiations under this exception.

Watch for this: The location of the compensated negotiations matters. Client permission or a Texas broker's presence does not replace the stated condition.

Rule: TRELA 1101.651(a)(2)

TRELA 1101.651: compensation restrictions and out-of-state brokers

A rebate to the buyer you represent

A sales agent proposes a lawful rebate of part of the commission to the buyer the agent represents. Which statement correctly identifies the written-consent requirement in Rule 535.147(d)?

The buyer's written consent alone satisfies the rule for a sales agent's rebate.
The sponsoring broker's written consent alone satisfies the rule for this rebate.
Written consent is required from both the sponsoring broker and the represented buyer.
Written consent is required from TREC and the seller rather than the represented buyer.

Check answer and explanation

Correct answer: C. Written consent is required from both the sponsoring broker and the represented buyer.

The rule requires the sales agent's sponsoring broker and the represented party to give written consent. The payment also must not mislead a broker, lender, title company or governmental agency about the transaction or the buyer's finances. Written consent is necessary, not a way around other applicable requirements.

Why the other choices miss:

A. The buyer's written consent alone satisfies the rule for a sales agent's rebate: The represented buyer's consent alone is insufficient. The sales agent also needs the sponsoring broker's written consent.
B. The sponsoring broker's written consent alone satisfies the rule for this rebate: The broker's consent alone is insufficient here. The represented buyer must also consent in writing.
D. Written consent is required from TREC and the seller rather than the represented buyer: This rule names the sponsoring broker and represented party. TREC and seller approval do not replace those required consents.

Watch for this: A rebate to a transaction party is different from paying an unlicensed person to perform a licensed referral. Neither a label nor a hidden payment makes the arrangement compliant.

Rule: TREC Rule 535.147(d)

TREC Rule 535.147: fee splitting and rebates

Disclosure does not cure a prohibited referral fee

An inspector pays a sales agent $100 solely for each home-inspection referral. The agent performs no separate goods-or-services work for the inspector. The buyer is told about the payment and consents. Does that disclosure make the fee permissible under Rule 535.148?

No; the payment is for an inspection referral, which the rule prohibits.
Yes; the client's consent replaces the prohibition on referral payments.
Yes; disclosure permits any payment if the inspector charges market rates.
No; but the same referral payment becomes lawful if labeled a marketing fee.

Check answer and explanation

Correct answer: A. No; the payment is for an inspection referral, which the rule prohibits.

Rule 535.148(d)(1) prohibits paying or receiving consideration for inspection referrals, and subsection (e) includes inspectors as settlement-service providers. Disclosure and consent do not cure the prohibition. Subsection (h) preserves specified exceptions, including market-rate payment for actual goods or services; the stem excludes that situation.

Why the other choices miss:

B. Yes; the client's consent replaces the prohibition on referral payments: Client consent does not cure a payment prohibited as an inspection referral fee under the stated facts.
C. Yes; disclosure permits any payment if the inspector charges market rates: Disclosure and a market-priced inspection do not make a referral-only payment lawful. There is no separate actual service here.
D. No; but the same referral payment becomes lawful if labeled a marketing fee: A marketing label does not establish actual goods or services. The scenario says the payment is solely for inspection referrals.

Watch for this: Ask whether the fee is permitted before asking whether it was disclosed. A referral cannot be turned into actual marketing work just by renaming the payment.

Rule: TREC Rule 535.148(a), (d)(1), (e)(9), (h)

TREC Rule 535.148: service-provider payments and exceptions

Calculate the minimum broker-name size

A team postcard uses 24-point type for its phone number, the largest contact information for any sales agent, associated broker or team in the ad. The broker's name is 8 points. Assuming the other ad requirements are met, what is the minimum compliant broker-name size?

8 points, because identifying the broker somewhere is sufficient.
12 points, with the broker's name in a readily noticeable location.
18 points, with the broker's name in a readily noticeable location.
24 points, because the broker must match the largest contact information.

Check answer and explanation

Correct answer: B. 12 points, with the broker's name in a readily noticeable location.

Rule 535.155(a)(2) requires the broker's name to be at least half the size of the largest relevant contact information. Half of 24 is 12, so 8 points is too small. Subsection (b)(4) includes names, phone numbers, email and website addresses, social handles and scan codes as contact information.

Why the other choices miss:

A. 8 points, because identifying the broker somewhere is sufficient: Eight points is less than half of the 24-point contact information. Merely identifying the broker does not meet the size requirement.
C. 18 points, with the broker's name in a readily noticeable location: Eighteen points would exceed the minimum. The required minimum is half of 24, which is 12 points, and readily noticeable.
D. 24 points, because the broker must match the largest contact information: Equal size would satisfy the size requirement but is not the minimum. Half of the largest contact information is required.

Watch for this: The benchmark is the largest relevant contact information, not automatically the agent's name or the smallest text in the ad.

Rule: TREC Rule 535.155(a)(1)-(2), (b)(4)

TREC Rule 535.155: advertisement content and size

A team name before its first advertisement

A sponsored sales agent plans to advertise a new team as 'Capitol Realty Associates.' It is not the broker's licensed or assumed business name. Which change addresses the team-name requirements?

Keep the proposed name and add the broker's name elsewhere in the first ad.
Add 'Team' to the proposed name but keep 'Associates' and skip registration.
Use a nonmisleading name ending in 'Team' or 'Group' and have the broker register it before use.
Have the agent register the proposed name after its first advertising use.

Check answer and explanation

Correct answer: C. Use a nonmisleading name ending in 'Team' or 'Group' and have the broker register it before use.

Rule 535.154(c) requires a team name to end in 'team' or 'group,' not imply an independent brokerage, and be registered by the broker before use. Rule 535.155(d)(5) specifically identifies 'associates' among terms implying independence. Adding 'Team' does not resolve a misleading term.

Why the other choices miss:

A. Keep the proposed name and add the broker's name elsewhere in the first ad: Displaying the broker elsewhere does not cure a team name that implies an independent brokerage.
B. Add 'Team' to the proposed name but keep 'Associates' and skip registration: Adding Team does not automatically cure the misleading Associates wording. A compliant team name also requires broker registration before use.
D. Have the agent register the proposed name after its first advertising use: The broker must register a compliant team name before it is used. The agent cannot solve this by registering it afterward.

Watch for this: A team name is not automatically a broker DBA. Both the wording and pre-use registration must comply.

Rule: TREC Rules 535.154(a)(5), (c)(1)-(3); 535.155(d)(5)

Identify the act

Eight distinctions worth keeping straight.

Use the situation to find the rule. Follow a question link, then open its answer to read the explanation and primary source.

Conduct rules that sound similar but test different duties
Situation	Distinction to apply
Professional ethics	Fidelity puts the client first. Integrity guards against misrepresentation. Competency requires the knowledge and skill for the work.
Buying for your own account	Disclose your license status and that you are acting on your own behalf in the contract or an earlier writing. An oral mention or a first disclosure at closing is insufficient.
Changing form language	A conspicuous change at a principal's specific written instruction is not permission for an agent to invent a contingency or give legal advice.
Receiving trust money	The sales agent delivers it immediately to the sponsor. The broker's separate handling limit is the second working day after receipt, unless the principals expressly agree otherwise in writing.
Money in a trust account	A reasonable, documented reserve of the broker's own funds for bank service fees is permitted. Spending the buyer's earnest money on brokerage operating costs is not.
Cash for an unlicensed referral	The merchandise threshold is not a cash allowance. A promised cash payment for a licensed referral can require a license even when the amount is small.
Rebate or referral fee	A compliant rebate to a transaction party is different from paying an unlicensed person for a licensed referral or paying for inspection referrals.
Broker name in an ad	Measure against the largest relevant contact information. The broker's name must be at least half that size and readily noticeable. A team also needs a compliant, registered name.

This is a decision aid, not every exception. For example, the social-media placement rule differs from the printed-postcard scenario. The source beside each answer controls the specific question.

Know the scope

How this set fits the Texas State Law outline.

The official topic has 9 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.

Standards of Conduct: official groups and our sample counts
Texas subtopic	Our questions
Professional Ethics and Conduct	2
Grounds for Discipline	2
Unauthorized Practice of Law	2
Trust Accounts	3
Splitting Fees	2
Rebates	2
Advertising	2

A sample is not complete coverage of every possible question. See Pearson VUE's Texas Sales Agent outline, section III. Sources beside each answer explain the underlying principle. Texas-specific rules and examples link to their own authority.

Look for the action, not just the label. Who holds the money? Who is being paid? Who supplied the contract language? A small detail can turn a permitted act into a violation.

These are original practice questions with hypothetical people, payments and transactions, not Pearson VUE questions or actual cases. They sample all seven Sales Agent outline groups, but do not test every rule or exception. A score here is not a calibrated prediction of passing.

After a missed question, identify the fact that changes the answer, then read the cited exception before trying it again.

Choose what to study next.

Start with the lesson behind a missed question, then try another problem without notes.

Before you continue

How many Standards of Conduct questions are on the Texas exam?

The Sales Agent State Law outline assigns nine scored items to this topic across seven groups, A through G. Pearson does not publish a per-group item count or cognitive mix. Our 15-question sample covers each broad group but is not a complete or calibrated replica of the exam.

What is the difference between commingling and conversion?

Commingling mixes trust money with the broker's own or other non-trust money. Conversion commonly describes using another person's funds for an unauthorized purpose. Rule 535.146(b)(5) treats paying operating expenses from the trust account as evidence of commingling. Subsection (c)(4) permits a reasonable, documented reserve for bank service fees, not the use of client funds for office expenses.

Does written client permission let an agent draft contract clauses?

No. Rule 537.11 distinguishes the agent's own legal drafting from a conspicuous addition or deletion made at a principal's specific written instruction. The narrow provision does not allow the agent to invent a contingency or advise on its legal effect. An unusual legal matter should go to the principal's attorney.

Can a Texas sales agent rebate commission to a buyer?

Yes, subject to Rule 535.147(d) and other applicable requirements. For the represented-buyer example here, both the sponsoring broker and the buyer must consent in writing. The payment cannot mislead transaction participants about the transaction or the buyer's finances. A rebate is not the same as paying someone to make an unlicensed referral.

Does a $50 threshold permit a small cash referral fee?

No. Rule 535.20 separately lists money and merchandise worth more than $50 as valuable consideration. The merchandise threshold is not a cash safe harbor. The question here concerns an expected payment to an unlicensed neighbor for a referral, with no applicable exemption.

Must the broker's name appear inside every social-media advertisement?

Rule 535.155(a) requires the broker's name and the placing license holder or team to be readily noticeable. For social media or text, subsection (c) allows the required information on a separate page or profile reached by a direct link, if it is readily noticeable there. Do not apply that placement accommodation to the printed postcard in question 14.

Will this quiz score be saved when I open the app?

This topic-quiz score stays on this page and cannot yet be saved to your account. Note the topics you want to review before leaving. You can sign in to save practice completed inside the app. Selected activities are free; full access is paid. All 15 questions and their explanations on this page remain available without signup.

Sources and review notes

Last reviewed: October 13, 2026. Each rule-based answer was checked against TRELA and TREC's current rule display. That display is provided by TREC as a courtesy; it links to the Secretary of State's official Texas Administrative Code. Pearson supplies the syllabus, not these questions. People, amounts and transactions in the scenarios are hypothetical; the cited requirements are not invented. This page is exam preparation, not advice for a transaction.

Use the source beside an answer to check the specific rule.

How Pass Texas reviews educational content