Educational Resources: Take Texas Real Estate Sample Tests, Application Steps and Tips

Once you have submitted your licensing application and proof of completing your pre-licensing education requirements, you may register for the state exam, which is administered through Pearson Vue. The exam fee is $43 and must be paid at the time you schedule your test.

Payment will not be accepted at the exam center, nor can you do a walk-in at the testing site.

You should arrive at least 30 minutes before the test starts to check in and for the testing center to review your ID and other documents. You will also be photographed for the score report.

The testing center requires candidates to present two forms of non-expired ID with your signature.

Acceptable forms of primary ID include:

• Government-issued Driver’s License
• U.S. Department of State Driver’s License
• U.S. Learner’s Permit (plastic card only with photo and signature)
• National/State/Country Identification Card
• Passport
• Passport card
• Military ID
• Alien Registration Card (Green Card, Permanent Resident Visa)

Acceptable forms of secondary ID include:

• U.S. Social Security Card
• Debit (ATM) or Credit Card
• Any form of ID on the Primary ID list

Basic Overview of Content

The Texas real estate exam consists of 240 questions and you have 4 hours to complete it. The national portion consists of 85 questions.

You will have 150 minutes to complete it and you must get at least 56 questions correct.

The state portion has 40 questions. You will have 90 minutes to complete it and must get at least 21 questions correct.

How Questions Are Formulated

The content of the national portion of the examination is based on information obtained from a job analysis performed by Pearson VUE. Responses from real estate professionals were analyzed to determine the nature and scope of tasks they perform, and the knowledge and skills needed to perform them.

This information is the basis upon which examination questions are written and ensures that the examination reflects the actual practice of real estate. Questions on the national portion are also reviewed and approved by nationally recognized real estate professionals.

The state portion of the examination has been developed to reflect the laws, regulations, and practices of real estate in Texas, and the questions have been reviewed by real estate professionals practicing in the state.

National Portion Outline

I. Real Property Characteristics, Legal Descriptions, And Property Use (9 Questions)

A. Real property vs. personal property

1. 1. Fixtures, trade fixtures, emblements
   2. Attachment, severance, and bill of sale

B. Characteristics of real property

1. 1. Economic characteristics
   2. Physical characteristics

C. Legal descriptions

1. 1. Methods used to describe real property
   2. Survey

D. Public and private land use controls: Encumbrances

1. 1. Public controls: Governmental powers
      a. Police power, eminent domain, taxation, escheat
      b. Zoning ordinances
   2. Private controls, restrictions, and encroachments
      a. Covenants, conditions, and restrictions (CC&Rs), HOAs
      b. Easements
      c. Licenses and encroachment

II. Forms of Ownership, Transfer, and Recording of Title (8 Questions)

A. Ownership, estates, rights, and interests

1. 1. Forms of ownership
   2. Freehold estate
      a. Fee simple absolute
      b. Fee simple defeasible, determinable, and condition subsequent
      c. Life estate
      d. Bundle of rights
   3. Leasehold estates and types of leases
      a. Estate for years and from period to period (periodic estate)
      b. Estate at will and estate at sufferance
      c. Gross, net, and percentage leases
   4. Liens and lien priority
   5. Surface and subsurface rights

B. Deed, title, transfer of title, and recording of title 

1. 1. Elements of a valid deed
   2. Types of deeds
   3. Title transfer
      a. Voluntary alienation
      b. Involuntary alienation
   4. Recording the title
      a. Constructive and actual notice
      b. Title abstract and chain of title
      c. Marketable title and cloud on title
      d. Attorney title opinion, quiet title lawsuit, and title insurance

III. Property Value and Appraisal (10 Questions)

A. Concept of value

1. 1. Market value vs. market price
   2. Characteristics of value
   3. Principles of value

B. Appraisal process

1. 1. Purpose and steps to an appraisal
   2. Federal oversight of the appraisal process

C. Methods of estimating value and Broker Price Opinions (BPO)

1. 1. Sales comparison approach (market data)
   2. Cost approach
      a. Improvements and
      b. Physical deterioration, functional, and economic obsolescence
      c. Reproduction or replacement costs
   3. Income approach
   4. Gross rent and gross income multipliers
   5. Comparative Market Analysis (CMA)
   6. Broker Price Opinion (BPO)
   7. Assessed value and tax implications

IV. Real Estate Contracts and Agency (16 Questions)

A. Types of contracts

1. 1. Express vs. implied
   2. Unilateral vs. bilateral

B. Required elements of a valid contract

C. Contract performance

1. 1. Executed vs. executory
   2. Valid vs. void
   3. Voidable vs. unenforceable
   4. Breach of contract, rescission, and termination
   5. Liquidated, punitive, or compensatory damages
   6. Statute of Frauds
   7. Time is of the essence

D. Sales contract

1. 1. Offer and counteroffer
   2. Earnest money and liquidated damages
   3. Equitable title
   4. Contingencies
   5. Disputes and breach of contract
   6. Option contract and installment sales contract

E. Types of agency and licensee-client relationships

F. Creation and termination of agency

G. Licensee obligations to parties of a transaction

V. Real Estate Practice (14 Questions)

A. Responsibilities of broker 

1. 1. Practicing within the scope of expertise
   2. Unauthorized practice of law

B. Brokerage agreements between the broker and principal (seller, buyer, landlord, or tenant) 

1. 1. Seller representation: Types of listing agreements
      a. Exclusive right-to-sell and exclusive agency listing
      b. Non-exclusive or open listing
      c. Net listing (conflict of interest)
      d. Multiple listing service (MLS)
   2. Buyer representation
   3. Property management agreement
      a. Accounting for funds
      b. Property maintenance
      c. Leasing property
      d. Collecting rents and security deposits
   4. Termination of agreements
   5. Services, fees, and compensation

C. Fair Housing

1. 1. Equal opportunity in housing
   2. Protected classes
   3. Fair housing laws
   4. Illegal practices, enforcement, and penalties
   5. Prohibited advertising
   6. Housing and Urban Development (HUD)
   7. Americans with Disabilities Act (ADA)

D. Risk management

1. 1. Supervision
   2. Compliance with federal regulations; including Privacy and Do Not Contact
   3. Vicarious liability
   4. Antitrust laws
   5. Fraud and misrepresentation
   6. Types of insurance a. Errors and Omission

VI. Property Disclosures and Environmental Issues (8 Questions)

A. Property conditions and environmental issues

1. 1. Hazardous substances
      a. Lead-based paint
      b. Asbestos, radon, and mold
      c. Groundwater contamination and underground storage tanks
      d. Waste disposal sites and brownfields
      e. Flood plains, flood zones, and flood insurance
   2. Clean Air and Water Acts
   3. Environmental Protection Agency (EPA)
      a. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
      b. Superfund Amendment and Reauthorization Act (SARA)
      c. Environmental site assessments (including Phase I and II studies) and impact statements
      d. Wetlands protection

B. Disclosure obligations and liability

VII. Financing and Settlement (7 Questions)

A. Financing concepts and components

1. 1. Methods of financing
      a. Mortgage financing: Conventional and nonconventional loans
      b. Seller financing: Land contract/contract for deed
   2. Lien theory vs. title theory and deed of trust
   3. Sources of financing (primary and secondary mortgage markets, and seller financing)
   4. Types of loans and loan programs
   5. Mortgage clauses

B. Lender Requirements

1. 1. FHA requirements
   2. VA requirements
   3. Buyer qualification and Loan to Value (LTV)
   4. Hazard and flood insurance
   5. Private mortgage insurance (PMI) and mortgage insurance premium (MIP)

C. Federal Financing Regulations and Regulatory Bodies

1. 1. Truth-in-Lending and Regulation Z
   2. TILA-RESPA Integrated Disclosures (TRID)
      a. Consumer Financial Protection Bureau (CFPB)
      b. Loan Estimate (LE)
      c. Closing Disclosure (CD)
   3. Real Estate Settlement Procedures Act (RESPA)
      a. Referrals b. Rebates
   4. Equal Credit Opportunity Act (ECOA)
   5. Mortgage fraud and predatory lending

D. Settlement and closing of the transaction

VIII. Real Estate Math Calculations (7 Questions)

A. Property area calculations

1. 1. Square footage
   2. Acreage total

B. Property valuation

1. 1. Comparative Market Analysis (CMA)
   2. Net Operating Income (NOI)
   3. Capitalization rate
   4. Gross rent multiplier- Broker Only
   5. Gross income multiplier- Broker Only
   6. Equity in property
   7. Establishing a listing price
   8. Assessed value and property taxes

C. Commission/Compensation

D. Loan financing costs

1. 1. Interest
   2. Loan to Value (LTV)
   3. Fees
   4. Amortization, discount points, and prepayment penalties

E. Settlement and closing costs 

1. 1. Purchase price and down payment
   2. Monthly mortgage calculations- principal, interest, taxes, and insurance (PITI)
   3. Net to the seller
   4. Cost to the buyer
   5. Prorated items
   6. Debits and credits
   7. Transfer tax and recording fee

F. Investment

1. 1. Return on investment
   2. Appreciation
   3. Depreciation
   4. Tax implications on investment

G. Property management calculations

1. 1. Property management and budget calculations
   2. Tenancy and rental calculations

State Portion

I. Commission Duties and Powers (2 Items)

A. General Powers

1. 1. Composition, Duties, and Powers
   2. Real Estate Advisory Committees

B. Handling of Complaints

1. 1. Investigations
   2. Hearings and Appeals

C. Penalties for Violation

1. 1. Unlicensed Activity
   2. Authority for Disciplinary Actions
   3. Recovery Trust Account

II. Licensing (2 Items)

A. Activities Requiring License

1. 1. Scope of Practice
   2. Exemptions
   3. Business Entities
   4. Inspectors and Appraisers

B. Licensing Process

1. 1. General Requirements (fitness sponsor, etc.)
   2. Education
   3. Examination
   4. Grounds to Deny an Application
   5. Appeals of Denial

C. License Maintenance and Renewal

1. 1. Continuing Education
   2. Change of Sales Agent Sponsorship
   3. Inactive Status
   4. Assumed Names

III. Standards of Conduct (7 Items)

A. Professional Ethics and Conduct
B. Grounds for Discipline
C. Unauthorized Practice of Law
D. Trust Accounts
E. Splitting Fees
F. Rebates
G. Advertising

IV. Agency/Brokerage (8 Items)

A. Disclosure
B. Intermediary Practice
C. Duties to Client (including Minimum Services)
D. Broker-Sales Agent Relationships
E. Broker’s Responsibility for Acts of Sales Agent
F. Appropriate Use of Unlicensed Assistants

V. Contracts (7 Items)

A. Promulgated Contracts, Forms, and Addenda
B. Statute of Frauds
C. Seller Disclosure Requirements

VI. Special Topics (4 Items)

A. Community Property
B. Homestead Protections and Tax Exemptions
C. Deceptive Trade Practices Act
D. Wills and Estates
E. Landlord-Tenant Issues
F. Foreclosure and Short Sales
G. Recording Statutes
H. Mechanic’s and Materialman’s Liens
I. Veterans Land Board
J. Home Owners Associations
K. Equitable Interest

Texas Real Estate Commission License Application: The Five Necessary Steps

Step 1: File the application online through the online licensing services portal.¹ You can also submit this paper application by mail to the address below.²

TEXAS REAL ESTATE COMMISSION
P.O. Box 12188
Austin, Texas 78711-2188

There is a $185 application fee.

Step 2: Submit fingerprints through IdentoGO. You can schedule your appointment here.³

The fee is $38.25

Step 3: Submit proof of completing pre-licensing education.

Step 4: Schedule your exam with Pearson Vue.⁴ Once you submit proof of completing the pre-licensing education, you will receive instructions on how to do so.

You will be issued your license at the testing center upon passing the exam.

Step 5: Find a sponsoring broker. Your license will not become active until you do so.

You can submit a request for sponsorship through the above-mentioned online portal and once your broker approves it, you are officially a real estate agent!

Texas Real Estate Commission Costs and Financial Commitments

Expenses	Cost
Prelicensing Education	$500 to $1400
Testing Fee	$42
Licensing Fee	$182
Fingerprints	$38.25

Membership Application for the National Association of Realtors® (NAR) (Non-Compulsory)

Many real estate agents choose to join the industry’s largest trade group, known as the National Association of REALTORS® (NAR). This organization holds its members to a high standard of conduct and may make you a more desirable candidate to potential clients.

Membership comes with a number of perks such as discounts on various services real estate agents use and special pricing on various types of insurance. By joining a local association in your state, you automatically become a member at the national level.

You can find a list of associations here.⁵

What’s the Anticipated Duration of the Real Estate Application?

The time to complete the whole process will ultimately depend on how quickly you complete the required coursework since most people take online self-paced classes. Generally speaking, most candidates get their license in 4 to 6 months.