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State License LawTexas · state portion

Texas License Discipline & EnforcementTexas real estate exam study notes

The Texas Real Estate Commission (TREC) administers and enforces the Real Estate License Act, investigating complaints and disciplining license holders who violate it.

4 key facts 5 practice questions Reviewed Oct 2026
The 1-minute sheetCinna RE

Key ideas

  • The Texas Real Estate Commission (TREC) administers and enforces the Real Estate License Act, investigating complaints and disciplining license holders who violate it.
  • Available sanctions include reprimand, administrative penalties, and suspension or revocation of a license.
  • When a consumer obtains an unsatisfied court judgment against a licensee for certain wrongful acts, the Real Estate Recovery Trust Account may pay the eligible claim.
  • A licensee whose conduct results in a payment from that account can have the license suspended until the paid amount is reimbursed.

Before you read

Test yourself first: 5 questions

Question 1 of 5

A sales agent tells a buyer the home has 'never had foundation issues' when the agent has no knowledge of the home's history. This conduct is best described as:

What you need to know

Available sanctions include reprimand, administrative penalties, and suspension or revocation of a license. When a consumer obtains an unsatisfied court judgment against a licensee for certain wrongful acts, the Real Estate Recovery Trust Account may pay the eligible claim. A licensee whose conduct results in a payment from that account can have the license suspended until the paid amount is reimbursed.

Texas License Discipline & Enforcement: FAQs

Is Texas License Discipline & Enforcement 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.

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