Texas SAE Real Estate Brokerage Exam | Questions & Answers
& Rationale | 2025/2026 | Latest Update | Instant Download !!
1. Under TRELA, which party is ultimately responsible for the actions of sponsored sales agents?
A. The team leader
B. The brokerage administrator
C. The sponsoring broker (correct answer)
D. The supervising salesperson
Rationale: Texas law holds the sponsoring broker legally responsible for all sponsored agents’ conduct.
2. Scenario: A broker allows an agent to negotiate leases without supervision. The agent violates fair
housing laws. Who is liable?
A. Only the agent
B. The landlord
C. Both the agent and the sponsoring broker (correct answer)
D. No one
Rationale: Brokers share liability for their agent’s violations due to supervisory responsibility.
3. Which is a required supervisory duty of a Texas real estate broker under TREC rules?
A. Providing health insurance
B. Maintaining written policies and procedures for agents (correct answer)
C. Paying all agent marketing expenses
D. Reviewing all agent open house notes
Rationale: TRELA mandates written operational policies for supervision and compliance.
4. Scenario: A sponsoring broker delegates supervision to a qualified supervisor. What remains true?
A. Broker has no liability
B. Supervisor becomes the broker
C. Broker retains ultimate responsibility (correct answer)
D. Liability transfers to TREC
Rationale: Delegation does not remove broker responsibility.
5. What must a broker do before sponsoring an agent?
A. Provide a desk and office phone
B. Ensure the agent is actively licensed and establish supervision policies (correct answer)
C. Pay a renewal fee for the agent
,D. Assign leads immediately
Rationale: Brokers must verify licensure and provide supervision structure.
6. Texas law requires brokers to maintain transaction records for at least:
A. 1 year
B. 5 years
C. 4 years (correct answer)
D. 10 years
Rationale: TRELA mandates a minimum 4-year retention.
7. Scenario: A sales agent negotiates a buyer rebate without broker approval. This is:
A. A normal negotiation
B. Unauthorized practice — agents cannot act independently of the broker (correct answer)
C. Illegal only if written
D. A civil matter only
Rationale: All compensation agreements require broker involvement.
8. Which activity requires a broker license (not just a sales agent license)?
A. Showing homes
B. Writing contracts
C. Receiving compensation directly from clients (correct answer)
D. Hosting open houses
Rationale: Only brokers may receive compensation directly.
9. Scenario: A broker wants to operate under a new assumed business name. What must happen first?
A. Nothing — brokers may use any name
B. File name only with IRS
C. Register the name with TREC before use (correct answer)
D. Register after 90 days of use
Rationale: TREC approval is required before using assumed names.
10. Cooperative brokerage agreements typically involve:
A. Buyers and tenants
B. Listing and buyer brokers sharing commission (correct answer)
C. Inspectors and agents
D. Brokers and appraisers
Rationale: Co-brokerage agreements outline commission sharing.
11. A team name must always include which term?
, A. Group
B. Team (correct answer)
C. Realty
D. Brokerage
Rationale: TREC requires "team" or “group” for team branding.
12. Scenario: An agent advertises “Sarah Realty Group.” Why is this illegal?
A. She used her first name
B. No broker logo present
C. The name implies she is a broker (correct answer)
D. Group names are prohibited
Rationale: Agents cannot use names that imply brokerage status.
13. When must a broker provide “meaningful disclosure” of representation?
A. Only when asked
B. At the first substantive dialogue about real estate (correct answer)
C. At closing
D. After showing property
Rationale: Texas requires early disclosure to avoid misunderstanding of roles.
14. The purpose of the Information About Brokerage Services (IABS) form is to:
A. Disclose property defects
B. Explain brokerage duties and representation options (correct answer)
C. Set commission rates
D. Replace listing agreements
Rationale: IABS educates consumers about agency roles.
15. Scenario: A broker forgets to deliver the IABS form by email. The agent sent it instead. Is this
compliant?
A. No, only broker can send IABS
B. Yes, agents may deliver IABS on behalf of the brokerage (correct answer)
C. Only after showing a home
D. No, it must be mailed
Rationale: Agents may provide IABS as part of brokerage duties.
16. Intermediary relationships in Texas require:
A. Verbal consent
B. Written consent from both parties (correct answer)
C. Broker-only involvement
D. Equal commissions
Rationale: Written authorization is legally required.
& Rationale | 2025/2026 | Latest Update | Instant Download !!
1. Under TRELA, which party is ultimately responsible for the actions of sponsored sales agents?
A. The team leader
B. The brokerage administrator
C. The sponsoring broker (correct answer)
D. The supervising salesperson
Rationale: Texas law holds the sponsoring broker legally responsible for all sponsored agents’ conduct.
2. Scenario: A broker allows an agent to negotiate leases without supervision. The agent violates fair
housing laws. Who is liable?
A. Only the agent
B. The landlord
C. Both the agent and the sponsoring broker (correct answer)
D. No one
Rationale: Brokers share liability for their agent’s violations due to supervisory responsibility.
3. Which is a required supervisory duty of a Texas real estate broker under TREC rules?
A. Providing health insurance
B. Maintaining written policies and procedures for agents (correct answer)
C. Paying all agent marketing expenses
D. Reviewing all agent open house notes
Rationale: TRELA mandates written operational policies for supervision and compliance.
4. Scenario: A sponsoring broker delegates supervision to a qualified supervisor. What remains true?
A. Broker has no liability
B. Supervisor becomes the broker
C. Broker retains ultimate responsibility (correct answer)
D. Liability transfers to TREC
Rationale: Delegation does not remove broker responsibility.
5. What must a broker do before sponsoring an agent?
A. Provide a desk and office phone
B. Ensure the agent is actively licensed and establish supervision policies (correct answer)
C. Pay a renewal fee for the agent
,D. Assign leads immediately
Rationale: Brokers must verify licensure and provide supervision structure.
6. Texas law requires brokers to maintain transaction records for at least:
A. 1 year
B. 5 years
C. 4 years (correct answer)
D. 10 years
Rationale: TRELA mandates a minimum 4-year retention.
7. Scenario: A sales agent negotiates a buyer rebate without broker approval. This is:
A. A normal negotiation
B. Unauthorized practice — agents cannot act independently of the broker (correct answer)
C. Illegal only if written
D. A civil matter only
Rationale: All compensation agreements require broker involvement.
8. Which activity requires a broker license (not just a sales agent license)?
A. Showing homes
B. Writing contracts
C. Receiving compensation directly from clients (correct answer)
D. Hosting open houses
Rationale: Only brokers may receive compensation directly.
9. Scenario: A broker wants to operate under a new assumed business name. What must happen first?
A. Nothing — brokers may use any name
B. File name only with IRS
C. Register the name with TREC before use (correct answer)
D. Register after 90 days of use
Rationale: TREC approval is required before using assumed names.
10. Cooperative brokerage agreements typically involve:
A. Buyers and tenants
B. Listing and buyer brokers sharing commission (correct answer)
C. Inspectors and agents
D. Brokers and appraisers
Rationale: Co-brokerage agreements outline commission sharing.
11. A team name must always include which term?
, A. Group
B. Team (correct answer)
C. Realty
D. Brokerage
Rationale: TREC requires "team" or “group” for team branding.
12. Scenario: An agent advertises “Sarah Realty Group.” Why is this illegal?
A. She used her first name
B. No broker logo present
C. The name implies she is a broker (correct answer)
D. Group names are prohibited
Rationale: Agents cannot use names that imply brokerage status.
13. When must a broker provide “meaningful disclosure” of representation?
A. Only when asked
B. At the first substantive dialogue about real estate (correct answer)
C. At closing
D. After showing property
Rationale: Texas requires early disclosure to avoid misunderstanding of roles.
14. The purpose of the Information About Brokerage Services (IABS) form is to:
A. Disclose property defects
B. Explain brokerage duties and representation options (correct answer)
C. Set commission rates
D. Replace listing agreements
Rationale: IABS educates consumers about agency roles.
15. Scenario: A broker forgets to deliver the IABS form by email. The agent sent it instead. Is this
compliant?
A. No, only broker can send IABS
B. Yes, agents may deliver IABS on behalf of the brokerage (correct answer)
C. Only after showing a home
D. No, it must be mailed
Rationale: Agents may provide IABS as part of brokerage duties.
16. Intermediary relationships in Texas require:
A. Verbal consent
B. Written consent from both parties (correct answer)
C. Broker-only involvement
D. Equal commissions
Rationale: Written authorization is legally required.
