Printable cheat sheet

Texas real estate state-law cheat sheet

The Texas state-law portion on one page: the six areas (40 scored items), the agency and IABS rules, promulgated forms, TREC and TRELA, trust money, foreclosure, and the key Texas figures.

Practice the state portion
Agency / Brokerage11 items

Intermediary, IABS, appointments, fiduciary duties.

Standards of Conduct9 items

Trust money, advertising, misrepresentation, discipline.

Contracts & Forms9 items

Promulgated forms, addenda, no unauthorized practice of law.

Special Topics5 items

Deeds of trust, foreclosure, homestead, community property.

Commission Duties & Powers3 items

TREC's role, TRELA, rulemaking, enforcement.

Licensing3 items

Education, sponsorship, renewal, license status.

Agency & IABS

  1. Texas uses INTERMEDIARY, not dual agency, with the written consent of both parties.
  2. Appointments are optional; never the same license holder to both parties.
  3. IABS notice is given at the first substantive communication about a specific property.
  4. IABS exceptions: open house re: that property; party already represented; residential lease under 1 year with no sale.
  5. Fiduciary duties (OLD CAR) run to a CLIENT, not a customer.

Standards of conduct

  1. Commingling = mixing trust money with the broker's funds. Conversion = using it (more serious).
  2. Keep trust money in a separate account; disburse only as authorized.
  3. A blind ad (no broker name) violates the TREC Rules, including social media.
  4. TREC enforces TRELA and adopts the Rules (22 TAC Ch. 535); the Legislature writes the statute.
  5. Contested cases may go to SOAH for a hearing.

Contracts & promulgated forms

  1. License holders must use TREC promulgated forms (22 TAC §537).
  2. The Broker-Lawyer Committee drafts the forms; TREC adopts them.
  3. Fill in blanks and attach approved addenda only. Drafting language is unauthorized practice of law.
  4. Form 20 = One to Four Family Residential (Resale), the most common contract.

Special topics (Texas law)

  1. Texas commonly uses a DEED OF TRUST (three parties incl. a trustee with power of sale).
  2. Foreclosure is usually NON-JUDICIAL; sales on the first Tuesday of the month.
  3. Texas is a COMMUNITY-PROPERTY state; both spouses sign for the homestead.
  4. Homestead is protected from most creditors (not purchase-money, taxes, or a valid home-equity lien).

Key Texas figures

  1. 120 scored items: 80 National + 40 Texas State. Pass both separately: 56/80 National and 28/40 Texas State (about 70% each).
  2. Property tax is stated PER $100 of appraised value.
  3. School-district homestead exemption: $140,000, plus a $60,000 additional exemption for qualifying owners age 65 or older or disabled ($200,000 total).
  4. No statewide real estate transfer tax in Texas.
  5. Pre-license: 180 hours of qualifying education; a sponsoring active broker is required to practice.
  6. Fair housing protects 7 classes: race, color, religion, national origin, sex, familial status, disability.

FAQ

  1. How many questions are on the Texas state-law portion? 40 scored items. The national portion adds 80, for 120 scored questions total. You must pass each portion separately.
  2. What is on the Texas state portion? Six areas: Agency and Brokerage (11 items), Standards of Conduct (9), Contracts and Promulgated Forms (9), Special Topics (5), Commission Duties and Powers (3), and Licensing (3).
  3. What passing score do I need on the Texas state portion? 28 of 40 scored items on the state portion, and 56 of 80 on the national portion, about 70% on each. The two portions are passed separately.

Related guides

  1. Intermediary & IABS: Texas agency without dual agency.
  2. TREC promulgated forms: the six contracts and key addenda.
  3. Texas vs national: every rule the state portion tests differently.
  4. Exam format: the 80 + 40 structure and timing.
Drill the state portionPass Texas covers all 14 areas with Texas-specific questions.

Use the practice questions, Trap Library, Math Coach, and the guides above at passtexasrealestate.com.

Download free

Sources: TRELA (Texas Occupations Code Ch. 1101), the TREC Rules (22 TAC Ch. 535), the Texas Property Code and Tax Code §11.13 (homestead exemptions), the Fair Housing Act, and the Pearson VUE Texas content outline. The 2025 homestead figures reflect Texas Propositions 13 and 11 (SB 4 and SB 23), approved by voters November 4, 2025. For exam preparation, not legal advice. Confirm current law and forms before relying on it in a transaction.

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