Are flashcards effective for the Texas real estate exam?

Yes. Flashcards use active recall — retrieving an answer from memory — which research shows is one of the most effective study methods, especially in short, spaced sessions. Because the TREC exam rewards instant recall of Texas law (IABS, intermediary brokerage, promulgated forms), vocabulary, fiduciary duties, and math formulas, the cards make that knowledge automatic.

What topics do the Texas real estate flashcards cover?

The Texas state portion — TREC, TRELA, 180-hour education, sponsorship, IABS, intermediary brokerage, promulgated contract forms, the Seller's Disclosure Notice, community property, and continuing education — plus all eight national content areas: property, ownership and title, value and appraisal, contracts and agency, real estate practice (including fair housing), disclosures, financing and settlement, and real estate math.

How should I study with these Texas real estate flashcards?

Lead with the Texas state-law cards (the 40-question state portion) and the highest-weighted national area, contracts and agency. Mix the modes: flip to learn, type to test recall, match for speed, and quiz to check yourself before working full practice questions.

Are the Texas real estate flashcards free?

Yes — 100% free, all four study modes, no paywall and no sign-up.

Do these flashcards match the Texas TREC exam?

Yes. The cards are organized around the Texas sales agent exam's structure — the national (general) portion plus the Texas state-law portion regulated by TREC under TRELA. Texas-specific rules like IABS, intermediary brokerage, and promulgated forms are covered as their own cards.

The Texas Real Estate Commission — the state agency that licenses and regulates Texas brokers and sales agents under TRELA.

The Texas Real Estate License Act — Chapter 1101 of the Texas Occupations Code; it creates TREC and governs real estate licensing in Texas.

Number of TREC members

Nine, appointed by the Governor with Senate consent — six licensed brokers and three members of the public.

Texas qualifying education hours

180 hours of TREC-approved education to become a sales agent — six 30-hour courses.

The six Texas qualifying courses

Principles of Real Estate I, Principles of Real Estate II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance (30 hours each).

The licensed Texas broker who sponsors a sales agent. A sales agent's license is inactive until sponsored, and the agent may act only for and be paid by the sponsoring broker.

Can a Texas sales agent work independently?

No. A sales agent must be sponsored by and work under a licensed broker; the license is inactive until a broker sponsors it.

Who may pay a Texas sales agent a commission?

Only the agent's sponsoring broker — never a client or another broker directly.

Information About Brokerage Services (IABS)

TREC's mandatory written notice (TREC No. IABS 1-0) explaining a broker's possible roles, given at the first substantive communication with a party.

When is the IABS notice due?

At the first substantive communication with a party about a specific property or proposed transaction (TRELA Sec. 1101.558).

When is the IABS NOT required?

For a residential lease of one year or less with no sale contemplated, or when the party is already represented by another license holder.

The relationship in which a BROKER represents both buyer and seller, only with each party's written consent stating who pays the broker (TRELA Sec. 1101.559).

Does Texas allow common-law dual agency?

No. Texas abolished dual agency; when one firm represents both sides, the broker acts as a statutory intermediary instead.

Who can be the intermediary in Texas?

Only the broker — never a sales agent. The broker may appoint associated license holders to advise each party.

Appointed license holders

Associates the intermediary broker appoints, with written consent, to communicate with and advise one party each; the broker stays neutral.

What must an intermediary NOT do?

Disclose one party's price or negotiating position to the other without written permission, or favor one party over the other.

Standard contract forms TREC adopts by rule that license holders must use for the transactions they cover.

Most-used promulgated contract form

The One to Four Family Residential Contract (Resale), TREC No. 20-18.

Broker-Lawyer Committee

The six-broker, six-attorney TREC committee that drafts and revises the promulgated contract forms (TRELA Sec. 1101.155).

May an agent draft contract language?

No. Agents fill in factual blanks on promulgated forms but may not draft provisions — that is the unauthorized practice of law.

Texas continuing education (CE) requirement

18 hours every two-year renewal after the first: 4 hrs Legal Update I, 4 hrs Legal Update II, 3 hrs contract coursework, 7 hrs electives.

The two 4-hour CE courses (8 hours total) that keep Texas license holders current on TRELA, TREC rules, and contract forms.

May a Texas sales agent hold a trust/escrow account?

No. Under 22 TAC 535.146, a sales agent may not maintain a trust account and must immediately deliver any money received to the sponsoring broker.

Title 22, Part 23 of the Texas Administrative Code (22 TAC Ch. 531-543).

Minimum age for a Texas real estate license

18 years old, and the applicant must meet TREC's honesty, trustworthiness, and integrity standards.

Fitness Determination (Texas)

A request to TREC, before applying, to decide whether a past criminal or disciplinary history would bar licensure.

Texas license exam provider

Pearson VUE administers the Texas sales agent licensing exam (national + state portions).

A national (general) portion and a Texas state-law portion, taken in one session; each is graded separately and both must be passed.

Texas state portion size

40 scored state-law questions (the national portion has 85 scored questions).

Background check for a Texas license

Applicants must submit fingerprints for an FBI/DPS criminal background check.

Lists prohibited conduct that subjects a license holder to discipline — material misrepresentation, failing to disclose a known latent defect, commingling, and more.

Disclosing you are a licensee buying for yourself

A Texas license holder buying or selling for their own account must disclose in writing that they are a licensed real estate agent acting on their own behalf.

Texas listing-agreement requirement

A listing must be in writing and signed by the party to be charged for the broker to recover a commission (TRELA Sec. 1101.806).

Broker (Texas) experience requirement

To be a broker, hold an active license, gain qualifying experience (points over ~4 years), and complete 270 additional qualifying hours plus 630 total points/hours.

Texas license renewal period

Licenses are renewed every two years; CE must be completed before the license expires.

Earnest-money dispute in Texas

An escrow agent generally may not release contested earnest money without the parties' written agreement or a court order.

Texas Recovery Trust Account

A TREC-administered fund that may pay an aggrieved person who wins a judgment against a license holder for certain violations, up to statutory limits.

Advertising rule (Texas)

All advertising must include the broker's name and may not be misleading; a sales agent must advertise under the sponsoring broker's name.

A team name in advertising must include the broker's name (or be clearly tied to the sponsoring broker) and use words like 'team' or 'group,' not 'broker' or 'company.'

Mixing a client's money with the broker's own funds — a TRELA violation; brokers must keep client funds in a separate trust account.

Conversion of trust funds

Using a client's trust money for the license holder's own purposes — a serious TRELA violation, worse than commingling.

Texas Seller's Disclosure Notice authority

Texas Property Code Sec. 5.008 requires the seller of a single residential dwelling to give the buyer a written notice of the property's condition.

Tightly restricted — a broker may use one only if it does not violate the broker's fiduciary duty and the seller sets a fixed net the broker won't manipulate.

Procuring cause (commission)

The agent whose actions set in motion the unbroken chain of events leading to the sale earns the commission.

Texas Workforce Commission (real estate role)

Administers and enforces the Texas Fair Housing Act, the state counterpart to the federal Fair Housing Act.

Your FREE Texas Real Estate Flashcards 2026 – 200+ Cards

Realistic Texas real estate exam flashcards across the Texas state portion and all eight national content areas — flip, match, type, and quiz yourself.

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Texas Real Estate Exam Flashcards

TREC: The Texas Real Estate Commission — the state agency that licenses and regulates Texas brokers and sales agents under TRELA.
TRELA: The Texas Real Estate License Act — Chapter 1101 of the Texas Occupations Code; it creates TREC and governs real estate licensing in Texas.
Number of TREC members: Nine, appointed by the Governor with Senate consent — six licensed brokers and three members of the public.
Texas qualifying education hours: 180 hours of TREC-approved education to become a sales agent — six 30-hour courses.
The six Texas qualifying courses: Principles of Real Estate I, Principles of Real Estate II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance (30 hours each).
Sponsoring broker: The licensed Texas broker who sponsors a sales agent. A sales agent's license is inactive until sponsored, and the agent may act only for and be paid by the sponsoring broker.
Can a Texas sales agent work independently?: No. A sales agent must be sponsored by and work under a licensed broker; the license is inactive until a broker sponsors it.
Who may pay a Texas sales agent a commission?: Only the agent's sponsoring broker — never a client or another broker directly.
Information About Brokerage Services (IABS): TREC's mandatory written notice (TREC No. IABS 1-0) explaining a broker's possible roles, given at the first substantive communication with a party.
When is the IABS notice due?: At the first substantive communication with a party about a specific property or proposed transaction (TRELA Sec. 1101.558).
When is the IABS NOT required?: For a residential lease of one year or less with no sale contemplated, or when the party is already represented by another license holder.
Intermediary (Texas): The relationship in which a BROKER represents both buyer and seller, only with each party's written consent stating who pays the broker (TRELA Sec. 1101.559).
Does Texas allow common-law dual agency?: No. Texas abolished dual agency; when one firm represents both sides, the broker acts as a statutory intermediary instead.
Who can be the intermediary in Texas?: Only the broker — never a sales agent. The broker may appoint associated license holders to advise each party.
Appointed license holders: Associates the intermediary broker appoints, with written consent, to communicate with and advise one party each; the broker stays neutral.
What must an intermediary NOT do?: Disclose one party's price or negotiating position to the other without written permission, or favor one party over the other.
Promulgated forms: Standard contract forms TREC adopts by rule that license holders must use for the transactions they cover.
Most-used promulgated contract form: The One to Four Family Residential Contract (Resale), TREC No. 20-18.
Broker-Lawyer Committee: The six-broker, six-attorney TREC committee that drafts and revises the promulgated contract forms (TRELA Sec. 1101.155).
May an agent draft contract language?: No. Agents fill in factual blanks on promulgated forms but may not draft provisions — that is the unauthorized practice of law.
Texas continuing education (CE) requirement: 18 hours every two-year renewal after the first: 4 hrs Legal Update I, 4 hrs Legal Update II, 3 hrs contract coursework, 7 hrs electives.
Legal Update I & II: The two 4-hour CE courses (8 hours total) that keep Texas license holders current on TRELA, TREC rules, and contract forms.
May a Texas sales agent hold a trust/escrow account?: No. Under 22 TAC 535.146, a sales agent may not maintain a trust account and must immediately deliver any money received to the sponsoring broker.
TREC rules location: Title 22, Part 23 of the Texas Administrative Code (22 TAC Ch. 531-543).
Minimum age for a Texas real estate license: 18 years old, and the applicant must meet TREC's honesty, trustworthiness, and integrity standards.
Fitness Determination (Texas): A request to TREC, before applying, to decide whether a past criminal or disciplinary history would bar licensure.
Texas license exam provider: Pearson VUE administers the Texas sales agent licensing exam (national + state portions).
Texas exam portions: A national (general) portion and a Texas state-law portion, taken in one session; each is graded separately and both must be passed.
Texas state portion size: 40 scored state-law questions (the national portion has 85 scored questions).
Background check for a Texas license: Applicants must submit fingerprints for an FBI/DPS criminal background check.
TRELA Sec. 1101.652: Lists prohibited conduct that subjects a license holder to discipline — material misrepresentation, failing to disclose a known latent defect, commingling, and more.
Disclosing you are a licensee buying for yourself: A Texas license holder buying or selling for their own account must disclose in writing that they are a licensed real estate agent acting on their own behalf.
Texas listing-agreement requirement: A listing must be in writing and signed by the party to be charged for the broker to recover a commission (TRELA Sec. 1101.806).
Broker (Texas) experience requirement: To be a broker, hold an active license, gain qualifying experience (points over ~4 years), and complete 270 additional qualifying hours plus 630 total points/hours.
Texas license renewal period: Licenses are renewed every two years; CE must be completed before the license expires.
Earnest-money dispute in Texas: An escrow agent generally may not release contested earnest money without the parties' written agreement or a court order.
Texas Recovery Trust Account: A TREC-administered fund that may pay an aggrieved person who wins a judgment against a license holder for certain violations, up to statutory limits.
Advertising rule (Texas): All advertising must include the broker's name and may not be misleading; a sales agent must advertise under the sponsoring broker's name.
Texas team name rule: A team name in advertising must include the broker's name (or be clearly tied to the sponsoring broker) and use words like 'team' or 'group,' not 'broker' or 'company.'
Commingling (Texas): Mixing a client's money with the broker's own funds — a TRELA violation; brokers must keep client funds in a separate trust account.
Conversion of trust funds: Using a client's trust money for the license holder's own purposes — a serious TRELA violation, worse than commingling.
Texas Seller's Disclosure Notice authority: Texas Property Code Sec. 5.008 requires the seller of a single residential dwelling to give the buyer a written notice of the property's condition.
Net listing in Texas: Tightly restricted — a broker may use one only if it does not violate the broker's fiduciary duty and the seller sets a fixed net the broker won't manipulate.
Procuring cause (commission): The agent whose actions set in motion the unbroken chain of events leading to the sale earns the commission.
Texas Workforce Commission (real estate role): Administers and enforces the Texas Fair Housing Act, the state counterpart to the federal Fair Housing Act.
TREC complaint process: TREC investigates complaints against license holders and may discipline by reprimand, fine, probation, suspension, or revocation under TRELA.
Buyer's agent (Texas): A license holder who represents the buyer; owes the buyer the fiduciary duties and must put the buyer's interests first.
Substantive dialogue: Communication about a specific property or a party's needs (not a mere open-house greeting) that triggers the IABS-notice requirement.
Texas homestead protection: The Texas Constitution (Art. XVI) protects an owner's principal residence from forced sale for most unsecured debts.
Both-spouse signature on a Texas homestead: Both spouses generally must sign to convey or encumber homestead property, even if only one spouse is on the title.
TREC No. IABS 1-0: The official form number for the Information About Brokerage Services notice.
Reapply vs. reinstate (expired Texas license): A license expired up to six months may be renewed late with a fee; longer lapses may require reinstatement or reapplication.
Texas real estate inspector regulator: TREC also licenses and regulates Texas real estate inspectors (a separate license type).
Designated broker (entity): A business entity holding a Texas broker license must designate an individual broker to act for it.
Texas option fee: A fee a buyer pays the seller in a TREC contract for an unrestricted right to terminate during a negotiated option period.
Real property: Land plus everything permanently attached to it (improvements and fixtures) and the bundle of legal rights of ownership.
Personal property (chattel): Movable items not permanently affixed to land; they don't transfer with the real property unless agreed.
Bundle of rights: Possession, use (enjoyment), exclusion, disposition (transfer), and control — the rights of ownership.
Fixture: Personal property attached to real property so it becomes part of it and transfers with the land.
MARIA test (fixtures): Method of attachment, Adaptability, Relationship of parties, Intention, Agreement — used to decide if an item is a fixture.
Trade fixture: An item a business tenant attaches for trade; it stays personal property and may be removed before the lease ends.
Fee simple: The most complete ownership — absolute, of unlimited duration, freely transferable by deed or will.
Life estate: A freehold estate lasting for a named person's lifetime; it ends at death and cannot be willed.
Leasehold estate: A tenant's right to possess and use property for a term without owning it.
PETE (government powers): Police power, Eminent domain, Taxation, Escheat — the four powers that limit even fee-simple ownership.
Police power: Government regulation of land for public health, safety, and welfare — zoning and building codes — with no payment to the owner.
Eminent domain: Government's power to take private property for public use through condemnation, paying just compensation.
Escheat: Property reverts to the state when an owner dies with no will and no legal heirs.
Easement: A nonpossessory right to use another's land for a specific purpose, like a driveway or utility line.
Easement appurtenant vs. in gross: Appurtenant benefits an adjacent parcel and runs with the land; in gross benefits a person or company (e.g., a utility).
Encroachment: An unauthorized intrusion of an improvement onto a neighbor's land; usually found by a survey.
Metes and bounds: A legal description using distances (metes) and compass directions (bounds) traced back to a point of beginning.
Section (survey): One square mile of land — 640 acres — and one thirty-sixth of a 6-mile-square township.
Acre: A land area equal to 43,560 square feet.
Lot-and-block description: Identifies land by reference to a recorded subdivision plat (lot, block, and subdivision).
Variance: A zoning exception granted for a hardship, allowing a use that otherwise violates the ordinance.
Severalty: Sole ownership of property by one person or entity.
Joint tenancy: Co-ownership with the right of survivorship; requires the four unities (time, title, interest, possession).
Tenancy in common: Co-ownership where each owner holds an undivided, willable share; no right of survivorship.
Right of survivorship: A deceased co-owner's share passes to the surviving co-owners, not to heirs.
Community property (Texas): Property either spouse acquires during marriage is presumed owned equally by both spouses (Texas Family Code).
Separate property (Texas): Property owned before marriage, or received during marriage by gift or inheritance.
Is Texas a community-property state?: Yes — one of nine; property acquired during marriage is presumed community property owned 50/50.
Deed: The written instrument that conveys title from the grantor (seller) to the grantee (buyer).
General warranty deed: Gives the most protection; the grantor warrants clear title against all defects, even those before the grantor's ownership.
Special warranty deed: Warrants title only against defects arising during the grantor's ownership — common in Texas commercial sales.
Quitclaim deed: Conveys only whatever interest the grantor has, with no warranties; used to clear a cloud on title.
When does title transfer?: On delivery and acceptance of the deed — not on recording. The grantee does not sign the deed.
Recording: Entering a deed in the county records; it gives constructive notice to the world and establishes lien priority.
Constructive notice: Notice the law presumes everyone has because a document is recorded or possession is visible.
Title insurance: A policy protecting the insured against loss from title defects that existed before the policy date.
Chain of title: The recorded history of ownership of a parcel from the original grant to the present owner.
Cloud on title: Any claim or encumbrance that impairs clear title; often removed with a quitclaim deed or suit to quiet title.
Adverse possession: Acquiring title by open, notorious, hostile, continuous possession for the statutory period (varies in Texas by claim type).
Market value: The most probable price a property should bring in a competitive open market under fair conditions — an opinion of value.
Market value vs. market price: Value is an opinion of the most probable price; price is the actual amount a property sold for.
Appraisal: An impartial, supported opinion of value by a licensed appraiser as of a specific date, following USPAP.
Comparative market analysis (CMA): A licensee's estimate of value from recent comparable sales, used to price a listing — not a formal appraisal.
Highest and best use: The legal, physically possible, financially feasible, and most profitable use of a site — the basis of value.
Sales comparison approach: Compares the subject to recently sold similar properties, adjusting for differences; best for homes.
Cost approach: Land value plus the cost to rebuild improvements new, minus depreciation; best for new or special-use property.
Income (capitalization) approach: Value = net operating income ÷ capitalization rate; best for income-producing property.
Net operating income (NOI): Effective gross income minus operating expenses, before any mortgage payment.
Capitalization rate: The rate of return on an income property: NOI ÷ value. A higher cap rate implies more risk and lower value.
Reconciliation (appraisal): Weighing the three value indications into one final opinion — not simply averaging them.
Principle of substitution: A buyer pays no more than the cost of an equally desirable substitute property.
Principle of conformity: Value is maximized when a property fits its surroundings in use, size, and style.
Progression and regression: A modest home gains value near larger ones (progression); a fine home loses value near lesser ones (regression).
Depreciation (appraisal): Loss in value from physical deterioration, functional obsolescence, or external (economic) obsolescence.
Functional obsolescence: A loss in value from outdated or poorly designed features (e.g., a one-car garage in a market expecting two).
External obsolescence: A loss in value from forces outside the property, such as a nearby nuisance or a declining economy.
Gross rent multiplier (GRM): Sale price ÷ monthly (or annual) gross rent; a quick value screen for small rental properties.
Valid contract requirements: Mutual agreement (offer and acceptance), consideration, legal purpose, and competent parties.
Statute of frauds: Requires real estate contracts (and most leases over a year) to be in writing to be enforceable.
Void vs. voidable: Void = missing an essential element, no legal effect; voidable = valid until a party with the right (e.g., a minor) rescinds.
Bilateral contract: A promise for a promise — both parties are obligated (a typical purchase agreement).
Unilateral contract: A promise in exchange for an act; only one party is obligated until the act is performed (e.g., an open listing).
Earnest money: A buyer's good-faith deposit; in a TREC contract it is usually held by the title company and applied to the price at closing.
Contingency: A condition that must be met for a contract to become binding — financing, inspection, or appraisal.
Specific performance: A court remedy compelling a defaulting party to complete the contract because real estate is unique.
Liquidated damages: An agreed amount (often the earnest money) the parties set as the remedy for a buyer's default.
Exclusive right-to-sell listing: The listing broker earns the commission no matter who finds the buyer.
Exclusive agency listing: The broker earns the commission unless the owner finds the buyer themselves.
Open listing: Only the broker who actually finds the buyer earns a commission; the owner may list with several.
Agency: A fiduciary relationship in which an agent represents a principal in dealings with third parties.
Fiduciary duties (OLD CAR): Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care.
Which fiduciary duty survives the relationship?: Confidentiality — an agent must keep a client's information private even after the agency ends.
Texas dual agency vs. intermediary: Texas does not allow common-law dual agency; one firm representing both sides uses the broker-as-intermediary relationship instead.
General vs. special agent: A general agent (e.g., a property manager) handles ongoing affairs; a special agent (a listing broker) handles one transaction.
Express vs. implied agency: Express agency is created by a written or oral agreement; implied agency arises from the parties' conduct.
Counteroffer effect: A counteroffer rejects and terminates the original offer; the original cannot then be accepted.
Assignment of a contract: Transferring contract rights to another party; allowed unless the contract or law forbids it.
Novation: Substituting a new contract or party for the original, releasing the original party from the obligation.
Option contract: Gives a buyer the right (not the obligation) to buy within a set period for consideration (a TREC option fee).
Listing must be in writing (Texas): Under TRELA Sec. 1101.806, a broker cannot recover a commission unless the agreement is in writing and signed.
Fair Housing Act protected classes: Race, color, religion, national origin, sex, familial status, and disability — seven federal protected classes.
Familial status: Protection for households with children under 18 and for pregnant persons under the Fair Housing Act.
Steering: Illegally guiding buyers toward or away from areas based on a protected class.
Blockbusting: Inducing owners to sell by claiming a protected class is moving in, to profit from turnover — illegal.
Redlining: A lender's illegal refusal to lend or insure in certain areas based on the area's racial or ethnic makeup.
Reasonable accommodation: A rule change (e.g., allowing a service animal) a housing provider must make for a person with a disability.
Reasonable modification: A physical change (e.g., a ramp) a person with a disability may make, usually at their own expense.
Trust (escrow) account: A broker's separate account holding client funds like earnest money; mixing them with the broker's funds is commingling.
Texas sales agent and client funds: A sales agent may not hold client funds — they must be turned over immediately to the sponsoring broker.
Antitrust: price fixing: Brokers agreeing to set commission rates is illegal; commission rates are always negotiable.
Group boycott (antitrust): Competitors agreeing to exclude or refuse to deal with another broker — an illegal antitrust violation.
Gross lease: The landlord pays the property's operating expenses; the tenant pays a flat rent.
Net lease: The tenant pays rent plus some property expenses (taxes, insurance, or maintenance).
Percentage lease: Retail rent is a base amount plus a percentage of the tenant's sales.
Lessor vs. lessee: The lessor is the landlord (owner) granting the lease; the lessee is the tenant.
Property management agreement: A contract employing a broker as a general agent to manage an owner's property for a fee.
Security deposit: A tenant's deposit against damage or unpaid rent; Texas law governs its return and any deductions.
Material fact: A fact that would affect a reasonable buyer's decision to buy or the price they'd pay; it must be disclosed.
Latent defect: A hidden physical defect not discoverable by ordinary inspection; a known latent defect must be disclosed.
Texas Seller's Disclosure Notice: Required under Property Code Sec. 5.008 for a single residential dwelling; the seller discloses known condition issues.
Who completes the Texas Seller's Disclosure?: The seller of residential property of not more than one dwelling unit — based on the seller's actual knowledge.
Flooding disclosure (Texas): The Seller's Disclosure Notice asks whether the property is in a 100-year floodplain, a flood pool, or a reservoir, and about flood history.
Not a material fact in Texas (Sec. 5.008(c)): A death by natural causes, suicide, or accident unrelated to the property's condition, and a prior occupant's HIV/AIDS, need not be disclosed.
Stigmatized property: A property psychologically impacted by an event (e.g., a crime); disclosure rules vary, and Texas limits required death disclosures.
Lead-based paint disclosure: For housing built before 1978, the seller/landlord must disclose known lead paint, give the EPA pamphlet, and (for sales) allow a 10-day test window.
Title X (1992): The federal law behind the lead-based paint disclosure rule for pre-1978 housing.
Radon: An odorless, radioactive gas from soil; the second-leading cause of lung cancer, mitigated by venting.
Asbestos: A fibrous material in old insulation and flooring; hazardous when airborne — remove or encapsulate.
Mold: Grows in damp areas; may require disclosure and remediation, and can affect habitability.
Underground storage tank (UST): A buried tank that can leak and contaminate soil and groundwater, creating cleanup liability.
Caveat emptor: 'Let the buyer beware' — the old rule, now limited by statutory disclosure laws like Texas Property Code Sec. 5.008.
CERCLA / Superfund: The federal law imposing liability for cleaning up hazardous-substance contamination, even on later owners.
Wetlands: Federally protected areas where development requires permits; affects buildability and disclosure.
Promissory note: The borrower's written promise to repay the debt; the deed of trust secures it.
Deed of trust (Texas): Secures a Texas real estate loan; the borrower conveys the property to a trustee who can conduct a non-judicial foreclosure on default.
Non-judicial foreclosure (Texas): The trustee sells the property at a public sale (usually the first Tuesday of the month) under the deed of trust's power of sale, without going to court.
Amortization: Repaying a loan with regular interest-and-principal payments so the balance reaches zero by the term's end.
Loan-to-value ratio (LTV): Loan amount ÷ value (or price); a higher LTV means a smaller down payment and more lender risk.
Private mortgage insurance (PMI): Required on a conventional loan when the LTV is above 80% (down payment under 20%).
Conventional loan: A loan not insured or guaranteed by the government; PMI applies when LTV tops 80%.
FHA loan: Insured by the Federal Housing Administration; low down payments with mortgage insurance premiums.
VA loan: Guaranteed by the Department of Veterans Affairs for eligible veterans; often no down payment.
Discount points: Prepaid interest paid at closing to lower the loan's rate; one point equals 1% of the loan amount.
Acceleration clause: Lets the lender demand the full loan balance immediately on default.
Due-on-sale (alienation) clause: Requires the loan to be paid in full when the property is sold.
RESPA: The Real Estate Settlement Procedures Act — requires settlement-cost disclosures and bans kickbacks for referrals.
TILA: The Truth in Lending Act — requires lenders to disclose the cost of credit, including the APR.
Loan Estimate: A standardized loan-cost disclosure due within three business days of a borrower's application.
Closing Disclosure: The final loan-cost form that must reach the borrower at least three business days before closing.
Texas closings: Typically handled by a title company that disburses funds and records the documents.
Foreclosure: The legal process by which a lender forces the sale of property to recover an unpaid debt.
Equity: The owner's value in the property — market value minus the debt secured against it.
Acres-to-square-feet conversion: Multiply acres by 43,560 to get square feet; divide square feet by 43,560 to get acres.
Area of a rectangle: Length × width; e.g., a 150 ft × 290 ft lot = 43,500 sq ft.
Commission formula: Commission = sale price × commission rate.
Price for a target seller net: Net ÷ (1 − commission rate). A $282,000 net after a 6% commission = $282,000 ÷ 0.94 = $300,000.
Percent of profit or loss: Gain (or loss) ÷ original cost. A $20,000 gain on a $200,000 cost is a 10% profit.
LTV calculation: Loan ÷ value. An 80% LTV on a $300,000 home is a $240,000 loan.
Value (income approach) formula: Value = net operating income ÷ capitalization rate. $90,000 NOI ÷ 0.09 = $1,000,000.
Mill: One-thousandth of a dollar ($0.001) of tax per dollar of assessed value; 18 mills = 0.018 = 1.8%.
Annual property tax formula: Assessed value × tax rate (or mills × 0.001). A $320,000 assessment at 18 mills = $5,760.
Proration: Splitting taxes, rent, or interest between buyer and seller by days of ownership as of the closing date.
Banker's (statutory) year: A 360-day year (twelve 30-day months) many proration problems use unless told otherwise.
Section size in acres: A section is one square mile = 640 acres; a township is 36 sections.
Simple interest formula: Interest = principal × rate × time. $200,000 × 0.06 × 1 year = $12,000.

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The classic card. Do you know this one?

Click Study Flashcards above to open the flashcard hub — 200 Texas real estate cards you can flip, match, type, or quiz yourself on. Every card is drawn from the Texas TREC exam — the Texas state-law portion and the national content areas — so you study exactly what the test measures.^[1] Pair them with our free practice test and study guide.

Texas Real Estate Flashcard Study Modes

Most flashcard sites give you one thing: a card to flip. Ours has four modes so you can both learn the material and prove you know it — the difference between recognizing an answer and recalling it under exam pressure.

Flip (Study) — the classic card. Flip term ↔ definition, shuffle the deck, and mark each card “Got it” or “Still learning.”
Match (Game) — a timed game: pair each term to its definition as fast as you can. Great for cementing the Texas terms (TREC, IABS, intermediary), vocabulary, and math formulas.
Type (Recall) — read the definition and type the term. Typing forces true active recall instead of passive recognition.
Quiz (Test) — multiple-choice questions generated from the cards, so you self-test exactly like exam day.

Free Texas real estate exam flashcards from Career Employer — active recall for the TREC sales agent licensing exam

Why Flashcards Work for the Texas Real Estate Exam

Flashcards aren’t busywork — they’re built on active recall: pulling an answer out of memory strengthens it far more than re-reading notes. Pair that with spacing — short sessions across several days rather than one cram — and you retain more in less time.

The Texas exam rewards instant recall of TREC rules, the fiduciary duties, fair-housing rules, and math formulas.^[1] Spaced flashcards are the most efficient way to make that knowledge automatic. Used alongside our practice test and study guide, they turn review time into measurable progress.

Texas Real Estate Flashcards by Content Area

The cards are organized by the Texas exam’s structure. Drill the Texas state-law cards (the 40-question state portion) and contracts and agency first — they carry the most weight:^[1]

Texas real estate flashcards by content area
Content area	What the cards cover
Texas License Law & Practice	TREC, TRELA, 180-hr education, sponsorship, IABS, intermediary brokerage, promulgated forms, CE
Property, Legal Descriptions & Use	Estates, fixtures, easements, government powers, legal descriptions
Ownership, Transfer & Recording	Co-ownership, Texas community property, deeds, recording, title insurance
Property Value & Appraisal	Value principles, the three approaches, CMA vs. appraisal
Contracts & Agency	Contract law, listings, fiduciary duties, the intermediary relationship
Real Estate Practice	Fair housing, trust funds, leases and management
Disclosures & Environmental	Seller's Disclosure Notice, latent defects, lead paint, radon, asbestos
Financing & Settlement	Notes, deeds of trust, loan types, RESPA, TILA, closing
Real Estate Math	Commission, LTV, taxes and mills, proration, area

How to Get the Most Out of These Flashcards

Lead with Texas law. The 40-question state portion is graded separately — drill TREC, IABS, intermediary brokerage, and promulgated forms first, then contracts and agency.
Master the staples. Use Match and Type to lock in the Texas terms, the fiduciary duties (OLD CAR), the government powers (PETE), the deed types, and the core math formulas.
Use Type and Quiz, not just Flip. Recognizing the right answer is easy; recalling and choosing it under pressure is the real test.
Then prove it. When the cards feel easy, confirm with the full practice test — read every rationale before exam day.

Texas Real Estate Flashcards FAQ

Two hundred free Texas real estate flashcards, organized across the Texas state-law portion and all eight national content areas — Texas license law and agency, property and land use, ownership and title, value and appraisal, contracts and agency, real estate practice, disclosures, financing, and real estate math. They're free with no account required.

References

1.Texas Real Estate Commission. “Texas Real Estate Commission (TREC) — Home.” TREC. ↑
2.Texas Legislature. “Texas Occupations Code Chapter 1101 (TRELA).” Texas Statutes. ↑
3.U.S. Department of Housing and Urban Development. “Fair Housing Act Overview.” HUD. ↑

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