Only the broker can be the intermediary, not an individual agent.
Before you read
Test yourself first: 5 questions
Question 1 of 5
Which agency regulates real estate license holders in Texas?
Answer: A. The Texas Real Estate Commission (TREC) licenses and regulates real estate brokers and sales agents in Texas.
Question 2 of 5
Which Texas agency is responsible for licensing and regulating real estate sales agents and brokers?
Answer: A. The Texas Real Estate Commission (TREC) administers the Real Estate License Act, licensing and regulating real estate brokers and sales agents in Texas.
Question 3 of 5
How many classroom hours of qualifying education must an applicant complete to become a licensed real estate sales agent in Texas?
Answer: C. Texas requires 180 hours of qualifying real estate education for a sales agent license, delivered across the required core courses such as Principles, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Finance.
Question 4 of 5
Which Texas agency is responsible for licensing real estate sales agents and brokers and enforcing the Real Estate License Act?
Answer: B. TREC (the Texas Real Estate Commission) administers the Real Estate License Act, issues sales agent and broker licenses, promulgates contract forms, and handles complaints and disciplinary actions.
Question 5 of 5
Which form of agency does Texas law authorize in place of traditional 'dual agency'?
Answer: B. Texas abolished dual agency by that name. When one broker represents both buyer and seller in the same transaction, the broker acts as an intermediary, which requires the prior written consent of both parties and disclosure of the conflict.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Texas does NOT use dual agency; it uses an intermediary relationship.
- Intermediary status requires the parties' written consent.
- Only the broker can be the intermediary, not an individual agent.
- The broker may appoint different associates to each party.
- Common representation options: seller's agent, buyer's agent, or intermediary.
- Disclose representation honestly to all parties in a transaction.
- Sales agents always work under and represent their sponsoring broker.
Texas Agency Model Cheat Sheet: FAQs
Is Texas Agency Model Cheat Sheet 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.
