Texas Real Estate Sales Agent Exam Glossary

National Examination Portion
The section of the Texas Sales Agent exam covering general real estate principles that apply nationwide, such as contracts, property ownership, and financing.
State Examination Portion
The section of the exam covering Texas-specific law, rules, and practices, including TREC regulations and state agency requirements.
TREC (Texas Real Estate Commission)
The state agency that regulates real estate licensing, sets rules of conduct, and enforces the license law for real estate professionals in Texas.
Sales Agent License
The credential that allows a person to perform real estate brokerage activities in Texas, but only while sponsored by and acting on behalf of a licensed broker.
Sponsoring Broker
A licensed broker who supervises a sales agent and holds legal responsibility for the agent's real estate activities.
Fiduciary Duty
The legal obligation a licensee owes a client to act with loyalty, care, disclosure, obedience, accounting, and confidentiality in the client's best interest.
Agency
The relationship created when a client authorizes a licensee to act on their behalf in a real estate transaction, giving rise to the duties owed to that client.
Escrow Account
A separate trust account used to hold funds such as earnest money on behalf of parties to a transaction, kept apart from the broker's operating funds.
Earnest Money
A good-faith deposit a buyer provides when making an offer, showing serious intent and typically applied toward the purchase price at closing.
Deed
The legal document that transfers ownership of real property from a grantor to a grantee.
Encumbrance
Any claim, lien, or restriction on a property—such as a mortgage or easement—that may affect its use or transfer of title.
Examination Fee
The cost a candidate pays to sit for the Texas real estate sales agent licensing examination.