Texas Real Estate Broker Exam Glossary

National Examination (Broker)
The portion of the Texas real estate broker licensing exam covering general, non-state-specific real estate principles and practices. A candidate must answer 60 questions correctly on the National examination to pass this section.
Scored Questions
The exam items that actually count toward your result, as opposed to unscored pretest items. The Texas broker exam includes 145 scored questions.
Examination Fee
The amount paid to the testing vendor each time you sit for the broker exam. The fee is $39.
Testing Time Limit
The total allotted seat time to complete the broker examination. Candidates are given 240 minutes.
Pearson VUE
The third-party testing vendor that administers the Texas real estate broker examination at its testing centers. Registration, scheduling, and the exam fee are handled through this vendor.
Broker vs. Sales Agent
A broker is licensed to operate independently and may sponsor and supervise sales agents, whereas a sales agent must work under a sponsoring broker. The broker exam tests the higher level of responsibility this role carries.
Fiduciary Duty
The legal obligation a broker owes a client to act in the client's best interest, including loyalty, confidentiality, disclosure, obedience, and accounting. These duties are a core tested concept on the national portion.
Agency
The relationship in which a broker (the agent) is authorized to represent a principal — such as a buyer or seller — in a real estate transaction. Understanding how agency is created, disclosed, and terminated is central to the exam.
Escrow / Trust Account
A separate account in which a broker holds money belonging to others, such as earnest money, keeping it apart from the broker's own operating funds. Commingling client funds with personal funds is prohibited.
Earnest Money
A good-faith deposit a buyer submits to show serious intent to purchase, typically held in the broker's escrow account until closing or resolution of the contract. It is a frequently tested element of contract and trust-fund topics.
Encumbrance
Any claim, lien, or restriction on a property — such as a mortgage, easement, or deed restriction — that may affect its use or transfer of title. Recognizing types of encumbrances is essential for title and ownership questions.
Passing Standard
The threshold of correct answers required to pass a section of the exam rather than a raw percentage of the whole test. For the National examination, that standard is 60 correctly answered questions.