Before you read
Test yourself first: 5 questions
Question 1 of 5
Which Texas license holder is ultimately responsible for the brokerage's advertising, supervision of sponsored agents, and proper handling of trust funds?
Answer: B. The sponsoring broker is responsible for supervising sponsored agents and for compliance with advertising, trust-account, and recordkeeping requirements within the brokerage.
Question 2 of 5
A Texas broker mixes earnest-money deposits with the brokerage's own business funds in one account. What is this prohibited practice called?
Answer: B. Commingling is mixing client or trust funds with the broker's personal or business funds. It is prohibited because it endangers client money and obscures recordkeeping.
Question 3 of 5
A sales agent advertises listings using a team name and personal cell number but omits the sponsoring broker's name entirely. This advertising is:
Answer: A. Texas advertising rules require that a license holder's advertising clearly identify the sponsoring broker's name and not be misleading. Omitting the broker's name is prohibited conduct.
Question 4 of 5
A Texas advertisement that creates a false impression about who is offering brokerage services, or omits the broker's name, is best described as:
Answer: B. TREC prohibits advertising that is misleading or likely to deceive the public, including ads that hide the broker's identity or misstate who is providing the services.
Question 5 of 5
Under TREC rules, an internet or social-media advertisement by a Texas license holder must:
Answer: B. TREC advertising rules apply across all media, including websites and social media. Online ads must identify the broker and must not be misleading.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
TREC rules require that advertisements clearly identify the responsible broker so the public can tell who they are dealing with. Brokers are responsible for supervising the advertising of their sponsored agents. Brokers must also maintain transaction and trust-account records and keep client funds separate from the broker's own operating funds to avoid commingling.
Texas Advertising & Record-Keeping Rules: FAQs
Is Texas Advertising & Record-Keeping Rules 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.
