Before you read
Test yourself first: 5 questions
Question 1 of 5
If a property in Texas is located within a Municipal Utility District (MUD), what is required at sale?
Answer: B. Texas requires sellers of property within a Municipal Utility District to provide a statutory notice disclosing the district's tax rate, bonded indebtedness, and standby fees, generally before the buyer is obligated under the contract.
Question 2 of 5
For most residential resales in Texas, the seller is required to provide the buyer with a:
Answer: A. Texas law requires sellers of most residential property to deliver a Seller's Disclosure Notice disclosing known conditions of the property.
Question 3 of 5
Under TREC rules, when must a Texas license holder provide the statutory written statement on brokerage services (Information About Brokerage Services, IABS) to a prospective party?
Answer: B. Texas law requires a license holder to furnish the IABS notice to a party at the first substantive dialogue/communication with the party regarding a specific real property transaction, so the consumer understands representation options before relying on the agent.
Question 4 of 5
When must the Seller's Disclosure Notice generally be provided to the buyer in a Texas residential sale?
Answer: A. The seller must deliver the Seller's Disclosure Notice to the buyer on or before the effective date of the contract. If not delivered timely, the contract terms may give the buyer a right to terminate within a specified period.
Question 5 of 5
Which additional disclosure is commonly required for Texas properties in certain locations, such as near the coast or in a floodplain?
Answer: B. Texas requires several location-based notices when applicable, such as the coastal area property notice for property seaward of the Gulf Intracoastal Waterway and disclosures about whether the property is in a floodplain or flood pool, alongside the standard condition disclosure.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
License holders commonly use TREC-promulgated forms for sales contracts and related agreements to ensure required terms and notices are included. Because Texas is a community property state, marital property interests can affect who must sign to convey or list a property, and licensees should be alert to these ownership issues.
Disclosures Texas Sellers and Licensees Must Provide: FAQs
Is Disclosures Texas Sellers and Licensees Must Provide on the real estate exam?
Yes. State License Law is a scored domain on the Texas real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Texas test this differently?
Texas applies its own license law on top of the national portion. This page covers the Texas rules specifically, which is what the state section of your exam tests.
