🏡 Mastering the Texas Real Estate Commission State Exam: Key Issues Every Applicant Must Know

Passing the TREC state exam isn’t just about memorizing facts—it’s about understanding the logic behind real estate law, contracts, and practice in Texas. Whether you're prepping for the Promulgated Contract Forms section or diving into Principles of Real Estate, here’s a breakdown of the essential topics and strategies to help you succeed.

📘 Exam Structure: What You’re Up Against

The TREC exam is divided into two parts:

• National Portion: Covers general real estate principles applicable across the U.S.

• Texas State Portion: Focuses on Texas-specific laws, regulations, and practices.

Each section is timed and administered by Pearson VUE. You must pass both portions to earn your license.

🔑 Key Topics to Master

1. 📝 Promulgated Contract Forms

This is a major focus area for Texas applicants. You’ll need to understand:

• The One to Four Family Residential Contract (Resale) and its clauses

• The use of Third-Party Financing Addendum, Option Fee, and Earnest Money

• How to handle amendments, termination, and default scenarios

• The difference between void, voidable, and enforceable contracts

Tip: Practice identifying which form applies to which transaction scenario. TREC wants you to apply—not just recall—this knowledge.

2. 🏠 Property Ownership and Land Use

• Types of ownership: fee simple, life estate, leasehold

• Legal descriptions and metes and bounds

• Encumbrances, easements, and zoning laws

3. 💰 Financing and Settlement

• Types of loans: FHA, VA, conventional

• Closing procedures, prorations, and settlement statements

• Understanding Texas-specific lending laws

4. 📜 Licensing and Regulation

• TREC’s role and authority

• Licensing requirements and continuing education

• Disciplinary actions and ethics

5. 🧠 Real Estate Math

• Prorations, commissions, loan calculations

• Area and volume formulas

• Net-to-seller and buyer qualification scenarios

🧩 Cognitive Skills Tested

Pearson VUE categorizes questions by:

• Knowledge: Recall definitions and facts

• Application: Apply concepts to real-world scenarios

• Analysis: Interpret contracts, resolve disputes, and make decisions

Strategy: Don’t just memorize—practice applying concepts to case studies or mock transactions.

📚 Study Resources That Work

• Pearson VUE’s Texas Content Outline: A must-read for topic breakdowns

• TREC’s Exam Topic Reports: Shows which areas candidates struggle with most

• PracticeTestGeeks Prep Guide: Offers free practice questions and exam strategies

✅ Final Tips for Success

• Use timed practice exams to simulate test conditions

• Focus on rationale-driven learning—understand why an answer is correct

• Review real-world scenarios to strengthen application and analysis skills

• Don’t neglect contract forms—they’re central to Texas real estate practice

Lone Star Real Estate School

📍 9440 Viscount Blvd, El Paso, TX 79925

📞 (915) 209-2001

📧 lonestarschoolelpaso@gmail.com

🌐 www.lonestarrealestateschool.com

🎓 Preparing Future Texas Real Estate Professionals