Texas Real Estate Exam Key Terms: 15 Texas-Only Words to Know for the State Portion

Short answer: the Texas State portion tests Texas law, and that law has its own vocabulary. Learn these 15 terms and what each one requires. Each definition below is one sentence, with the statute or rule behind it, so you can check it at the source.

Laws and regulators

• TRELA. The Texas Real Estate License Act, Texas Occupations Code Chapter 1101, the statute that requires a license and governs license holders.
• TREC. The Texas Real Estate Commission, the state agency that administers TRELA, issues licenses and writes the rules.
• TREC Rules. TREC's regulations in Texas Administrative Code, Title 22, Chapters 531 through 543, including the Standards of Conduct.
• Pre-licensing education. The 180 hours across six courses that TREC requires before a sales agent applicant may take the exam.

Agency and brokerage

• Intermediary. A broker who, with written consent from each party, works with both the buyer and the seller in one transaction and must act fairly and impartially (§1101.559).
• Appointed license holder. An associated license holder an intermediary broker appoints to work with one party, with the parties' written consent and written notice to all parties (§1101.560).
• Prohibited intermediary disclosures. The things an intermediary may not reveal without a separate written instruction, such as that the seller will accept less or the buyer will pay more (§1101.651(d)).
• IABS. Information About Brokerage Services, the TREC notice a license holder must give in writing at the first substantive communication about specific property (§1101.558); revised for 2026 to cover non-representation status and the new written buyer agreement that must be signed before showing residential property (§1101.563).

Contracts and disclosure

• Promulgated forms. Contract forms drafted by the Texas Real Estate Broker-Lawyer Committee and adopted by TREC, which license holders must use for most residential transactions instead of writing their own.
• One to Four Family Residential Contract (Resale). The best-known promulgated form, used for most resale home purchases.
• Unauthorized practice of law. Drafting legal documents without a law license, which promulgated forms let license holders avoid.
• Seller's Disclosure Notice. The form most residential sellers must complete about known defects and conditions, with specific exemptions.

Property and ownership

• Community property. Texas's rule that property acquired during a marriage is presumed to belong to both spouses, which is why a sale may need both signatures.
• Homestead. A residence protected from forced sale for most debts by the Texas Constitution, Article XVI, Section 50, up to 10 acres in a city or 200 acres rural for a family (100 for a single adult).
• Lockout (§92.0081). The narrow Property Code rule that lets a landlord change a delinquent tenant's locks without a court order only if the lease allows it and strict notice and key-access rules are followed.

How to use this list

For each term, be able to say what it requires, not just what it means. State portion questions describe a situation and ask what the license holder must do. Knowing that an intermediary needs written consent is what earns the point.

Each term above is covered in our free Texas State portion lessons. For the law behind them in more depth, see our Texas real estate law guide, and for the two terms that cause the most mistakes, the intermediary guide and IABS guide.

State RE PREP™ is an independent practice platform. It is not affiliated with, endorsed by, or operated by the Texas Real Estate Commission (TREC) or Pearson VUE, which administer the actual exam. Exam rules change; confirm current details in the Pearson VUE candidate handbook before you book.