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Real Estate Exam: How to Prepare and Pass in Texas
Real Estate 9 min read

Real Estate Exam: How to Prepare and Pass in Texas

Michael Brown
Real Estate Broker

Texas Real Estate License Overview

To become a salesperson in Texas, you need 180 hours of qualifying education, pass the state and national portions (70% on each), and affiliate with a broker. The exam is 110 questions (80 national, 30 state), 4 hours, $43 fee. Pass rate is about 60% first try.

1. Understand the Two Parts

National portion: real property, agency, contracts, finance, appraisal, investments, property management, transfer, fair housing, ethics. State portion: Texas-specific - TREC, TRELA, contracts (1-4, promulgated), agency disclosure, licensing, trust accounts,DTPA. Many fail state, not national—don't neglect Texas law.

2. Master Texas Contracts

Texas uses TREC promulgated contracts (1-4 Residential, Unimproved, etc.). Know the difference between executory contract, earnest money (1% typical, held by broker), option period (unrestricted right to terminate), and effective date. The test loves questions on paragraph 6D (title commitment) and 7A (survey).

3. Finance and Math

Expect 10-15 math questions: loan-to-value, equity, commission, cap rate (NOI / price), GRM, points (1 point = 1% of loan), PITI, and prorations. Use T-charts for prorations: seller vs buyer, debit vs credit. Practice until you can do them in 60 seconds.

4. Agency and Disclosure

Texas has intermediary (with/without appointments), disclosed dual agency is NOT allowed. Know the IABS form (Information About Brokerage Services) must be given at first substantive dialogue. Seller's Disclosure is required for 1-4 residential, not for foreclosures or new homes with warranty. These are heavily tested.

5. Study Plan (6 Weeks)

Weeks 1-2: Principles I & II (60 hours) – take notes, make flashcards. Weeks 3-4: Law of Agency + Contracts – do 50 questions daily. Week 5: Finance + Promulgated Contracts – focus on math. Week 6: Practice exams – 3 full exams, review errors, retake weak sections. Use TestGru's Texas practice tests, which mimic the Pearson Vue interface.

6. Exam Day Tips

Bring two IDs, no phones. Flag math questions and return. For 'all of the above' or 'none', check each option methodically. Texas law questions often have 'TREC' or 'TRELA' in the correct answer. Manage time: 2.2 minutes per question.

Conclusion

The Texas real estate exam is passable with structured prep. Don't just memorize—understand agency, contracts, and math. Complete your 180 hours, take 5+ full practice tests on TestGru, and review the Texas Real Estate License Act. Your license is within reach.