TX RE Broker study guide
TX RE Broker · Work through your exam, one topic at a time.
The Texas Real Estate Broker license is a state credential issued by the Texas Real Estate Commission (TREC). It authorizes a licensee to sponsor sales agents, operate a brokerage, and supervise transactions - responsibilities that go beyond those of an individual sales agent. The TX RE Broker study guide has 8 sections and about 2,456 words.
01Real Estate Brokerage
Texas brokerage is a licensed-broker business. A salesperson or broker associate may not accept compensation for a brokerage act from anyone except the sponsoring broker; commissions belong to the broker and are split by written agreement.
325 words, about 2 min02Agency and Fiduciary Duties
Texas does not label the relationship "dual agency." A license holder is either a single agent for one party or an intermediary between the parties in the same transaction. Intermediary status requires written consent before acting, clear disclosure, and written appointments.
331 words, about 2 min03Contracts and Contract Forms
Occupations Code §1101.155 requires a license holder to use TREC-promulgated forms when negotiating a transaction for which a form exists. A non-TREC form may be used only if prepared by an attorney or the parties agree in writing.
326 words, about 2 min04Real Estate Finance
Texas is a deed-of-trust state. The deed of trust carries a power of sale, allowing non-judicial foreclosure under Property Code Chapter 51: notice of default precedes notice of sale, which is posted and filed at least 21 days before the sale, and the sale occurs on the first Tuesday of the month.
314 words, about 2 min05Property Ownership, Transfer, and Title
Tenancy in common has no survivorship and is freely inheritable. Joint tenancy with right of survivorship exists in Texas only when expressly stated.
280 words, about 1 min06Appraisal, Valuation, and Market Analysis
Appraisers are licensed by TALCB and follow USPAP. A broker may prepare a comparative market analysis or a broker price opinion for a client, but it must never be labeled an appraisal, and a BPO cannot substitute for an appraisal where one is required (for example, GSE lending).
295 words, about 1 min07Land Use, Planning, and Environmental Issues
Texas has no statewide zoning; municipalities regulate under Local Government Code Chapter 211. Houston is the best-known major city without zoning, where deed restrictions do the work.
288 words, about 1 min08Leasing, Property Management, and Specialized Transactions
Managing rental property for another for compensation is brokerage and requires a license unless an exemption applies (for example, an owner managing his own property, or a salaried on-site manager paid no commission). Property managers owe the owner fiduciary duties, must hold owner funds and tenant deposits in trust or escrow, reconcile monthly, and keep records.
297 words, about 1 min