Texas · state portion

Free Texas Commission Duties & Powers (TREC) practice questions

10 original questions with full explanations. 3 of the 40 scored state-portion questions (about 8%) come from this area.

1. 1

   The primary purpose of the Texas Real Estate Commission is to:

   • A. Maximize license holders' income
   • B. Protect the public
   • C. Set commission rates
   • D. Operate the MLS
   Show answer & explanation

   Answer: B

   TREC exists to protect consumers of real estate services; it neither sets commission rates nor runs MLS systems.

2. 2

   Members of the Texas Real Estate Commission are:

   • A. Appointed by the governor
   • B. Elected by license holders
   • C. Hired by TREC staff
   • D. Chosen by the Texas REALTORS® association
   Show answer & explanation

   Answer: A

   TREC's nine members are appointed by the governor with senate confirmation — six broker members and three public members.

3. 3

   What is the primary purpose of the Texas Real Estate Commission (TREC)?

   • A. To promote the real estate industry
   • B. To protect the interests of real estate brokers
   • C. To protect the public in transactions involving real estate
   • D. To regulate mortgage lenders
   Show answer & explanation

   Answer: C

   TREC's primary purpose is to protect the public in transactions involving real estate.

4. 4

   How many members are on the Texas Real Estate Commission?

   • A. 5 members
   • B. 7 members
   • C. 9 members
   • D. 11 members
   Show answer & explanation

   Answer: C

   The Texas Real Estate Commission consists of 9 members appointed by the governor.

5. 5

   What is the composition of the Texas Real Estate Commission?

   • A. 6 brokers and 3 industry experts
   • B. 3 brokers and 6 public members
   • C. 6 brokers and 3 public members
   • D. 9 public members
   Show answer & explanation

   Answer: C

   The Texas Real Estate Commission is composed of 6 brokers and 3 public members.

6. 6

   What is the source of TREC's rulemaking authority?

   • A. The Texas Legislature
   • B. The Texas Governor
   • C. The Real Estate License Act (TRELA)
   • D. The US Congress
   Show answer & explanation

   Answer: C

   TREC's rulemaking authority is derived from the Real Estate License Act (TRELA).

7. 7

   What is the purpose of the Real Estate Recovery Trust Account?

   • A. To fund TREC's operations
   • B. To provide education and training for real estate professionals
   • C. To reimburse consumers who have been harmed by real estate licensees
   • D. To promote the real estate industry
   Show answer & explanation

   Answer: C

   The Real Estate Recovery Trust Account is used to reimburse consumers who have been harmed by real estate licensees.

8. 8

   What is the result of a TREC investigation finding a violation of TRELA or a TREC rule?

   • A. The licensee is automatically suspended
   • B. The licensee is subject to disciplinary action
   • C. The investigation is closed
   • D. The complainant is reimbursed from the Recovery Trust Account
   Show answer & explanation

   Answer: B

   If a TREC investigation finds a violation of TRELA or a TREC rule, the licensee is subject to disciplinary action.

9. 9

   What type of powers does TREC have to enforce its rules and regulations?

   • A. Only advisory powers
   • B. Investigative and disciplinary powers
   • C. Legislative powers
   • D. Judicial powers
   Show answer & explanation

   Answer: B

   TREC has investigative and disciplinary powers to enforce its rules and regulations.

10. 10

    A real estate sales agent is found to have engaged in deceptive practices. What action can TREC take?

    • A. Revoke the agent's license and impose a fine
    • B. Suspend the agent's license and require additional education
    • C. Issue a warning letter to the agent
    • D. No action can be taken
    Show answer & explanation

    Answer: A

    TREC can take disciplinary action, including revoking the agent's license and imposing a fine, if a real estate sales agent is found to have engaged in deceptive practices.