PRACTICE & FAIR HOUSING — CHEAT SHEET

Texas Real Estate Salesperson Exam

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TREC STRUCTURE & AUTHORITY

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Key Rule: TREC commissioners are appointed, not elected.

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SALESPERSON LICENSE REQUIREMENTS

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180-Hour Education Breakdown

• Principles of Real Estate I & II: 60 hrs

• Law of Agency & Contracts: 60 hrs

• Promulgated Contract Forms & Finance: 60 hrs

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BROKER LICENSE REQUIREMENTS

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Key Rule: Designated broker is legally responsible for all sponsored agents' conduct.

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CONTINUING EDUCATION (CE) — POST-SAE

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First 2 Renewals (SAE Period):

• 98 hrs SAE + 4 hrs Legal Update I + 4 hrs Legal Update II = 106 hrs

Key Rule: Legal Updates always required at every renewal (brokers & agents).

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ADVERTISING COMPLIANCE

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Critical: Agent cannot advertise independently without broker ID.

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TRUST ACCOUNT RULES

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FEDERAL FAIR HOUSING ACT — 7 PROTECTED CLASSES

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Exam Tip: Know the timeline — original 4 (1968) → +Sex (1974) → +2 in 1988.

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PROHIBITED CONDUCT

Sales & Rentals

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Steering Red Flags:

• Mentioning neighborhood racial composition

• Refusing to show in certain areas based on buyer traits

• Volunteering school quality in racially-coded language

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DISABILITY ACCOMMODATIONS

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Service Animals: Exception to no-pet policies is always required (not emotional support animals).

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COMPLAINT & DISCIPLINE PROCESS

Complaint Path

File with TREC

Jurisdiction & merit review

Investigation

Informal Settlement Conference (ISC) offer

SOAH hearing (if unresolved)

TREC commissioner vote

Appeal to district court

Possible Disciplinary Actions

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Element	Details
Governing Body	9-member commission (6 license holders, 3 public)
Appointed by	TX Governor; confirmed by Senate
Term	6-year staggered
Statute	TRELA (Tex. Occ. Code Ch. 1101)
Oversees	Brokers, salespersons, inspectors, educators
Requirement	Standard
Age	18+
Residency	TX resident (or meet non-resident requirements)
Education	180 hours qualifying courses
Exam	Pass TREC-approved state & national exam
Sponsor	Licensed TX broker (required)
Background	Moral character determination
Requirement	Standard
Experience	4 years active as salesperson (within last 5 yrs)
Deal Points	3,600 experience points documented
Education	270 hrs + 630 additional hours = 900 hrs total
Exam	TREC broker exam
Requirement	Hours
Total per 2-year renewal	18 hours
TREC Legal Update I	4 hrs (mandatory)
TREC Legal Update II	4 hrs (mandatory)
Elective courses	10 hrs
Rule	Requirement
Broker name	Must appear in ALL advertising
Prominence	Broker name ≥ agent name prominence
Social media	Applies to personal pages used for business
Signs	Must identify broker
Team names	Must include broker name
Rule	Requirement
Holder	Broker only (not agent)
Account type	Separate trust/escrow account
Commingling	PROHIBITED
Conversion	PROHIBITED (= license revocation)
Records	Accurate accounting required
Class	Added	Definition
Race	1968	Ancestry-based classification
Color	1968	Skin tone, ethnicity markers
National Origin	1968	Country of origin, accent, language
Religion	1968	Creed, faith, worship practices
Sex	1974	Gender (includes pregnancy)
Familial Status	1988	Households w/ children <18, pregnant women
Disability	1988	Physical/mental impairment affecting major life activities
Prohibited Act	Definition
Refusal to transact	Declining to sell/rent based on protected class
Different terms	Higher rent, less favorable financing for protected class
False unavailability	Claiming property unavailable when it isn't
Blockbusting	Inducing panic sales by implying protected class moving in (=federal crime)
Steering	Directing buyers toward/away from areas based on protected class makeup
Discriminatory ads	Language expressing preference/exclusion for protected class
Service denial	Refusing maintenance, amenities to protected class
Accommodation Type	Required?
Reasonable rule/policy exception (e.g., service animal pet policy)	YES
Parking/accessibility modifications	YES (if not undue hardship)
Flexible rent payment schedule	Usually YES
Physical building modifications	Only if not undue financial/admin burden
Action	Consequence
Reprimand	Written warning (permanent record)
Probation	Active license + conditions
Suspension	Temporary license revocation
Revocation	Permanent cancellation
Fine	Up to $5,000 per violation
Education	Mandatory additional courses

Most Serious Violations: Conversion of trust funds, fraud, dishonesty → REVOCATION.

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