Texas Real Estate Rules & Regulations
The Texas licensing exam strongly evaluates your understanding of Texas-specific statutes, commission codes, and regulatory frameworks. Read clear, worked explanations alongside direct TREC rules and TRELA laws.
Prominent Exam Focus: Permitted Activities of Unlicensed Assistants
BLUF: An unlicensed assistant in Texas can perform administrative support but cannot show properties or host open houses. Unlicensed assistants are strictly limited to clerical and administrative duties. They cannot negotiate, show properties, host open houses, or interpret contracts.
Contracts & Agreements
1 Rule ExplanationEarnest Money Escrow Timelines
Earnest money and option fees must be delivered to the escrow agent by the third calendar day after contract execution.
Fair Housing, Ethics & Laws
1 Rule ExplanationDeceptive Trade Practices Act (DTPA)
The Texas DTPA protects consumers against false, misleading, or deceptive business practices.
Promulgated Contract Forms
2 Rule ExplanationsUnauthorized Practice of Law
Texas real estate agents are strictly prohibited from practicing law without a license.
Use of Promulgated Contract Forms
Texas real estate license holders are legally required to use standardized forms promulgated by TREC.
Property Ownership & Rights
1 Rule ExplanationTexas Homestead Protections
Texas homestead laws protect a primary residence from forced sale by most general creditors.
Texas Law of Agency
4 Rule ExplanationsFiduciary Duty of Fidelity
The fiduciary duty of fidelity requires an agent to place their client's interests above their own.
IABS Form Delivery Methods
The IABS form must be provided in the body of an email or as a link, not solely as an attachment.
IABS Representation Disclosure
License holders must provide the Information About Brokerage Services (IABS) form at first substantive dialogue.
Intermediary Relationship Requirements
A Texas broker may act as an intermediary to facilitate a transaction between a buyer and seller they represent.
Texas License Law & TREC
7 Rule ExplanationsActive vs. Inactive License Status
A real estate license holder may NOT perform any brokerage activities unless their license is on active status.
Broker Responsibility under TREC
A sponsoring broker is fully responsible for all professional acts of their sponsored sales agents.
Permitted Activities of Unlicensed Assistants
An unlicensed assistant in Texas can perform administrative support but cannot show properties or host open houses.
Permitted Activities of Unlicensed Assistants
An unlicensed assistant in Texas can perform administrative support but cannot show properties or host open houses.
Prohibited Acts of Unlicensed Assistants
Unlicensed assistants in Texas cannot perform any acts that require a real estate license.
Referral Fees to Unlicensed Persons
A Texas broker may NOT pay a referral fee, commission, or valuable consideration to an unlicensed person.
TREC Commission Composition
The Texas Real Estate Commission consists of nine members appointed by the Governor.
TRELA Statutory Code
1 Rule ExplanationTRELA Prohibited Broker Acts
TRELA specifies dozens of statutory offenses that result in license suspension or revocation.
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