1|Page
TEXAS REAL ESTATE BROKERAGE SAE FINAL EXAM
AND PRACTICE EXAM NEWEST ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
In the 1970s the Texas Real Estate Commission adopted the first three
Cannons of Ethics ......ANSWER......Fidelity, Integrity and Competency
(codified in 1976)
A rule or principle or standard of conduct adopted by a professional
organization to guide the conduct of its members
......ANSWER......Cannons
Licensees must be faithful and observant to the trust placed in them, as
well as scrupulous and meticulous in performing task.
......ANSWER......Fidelity
Licensees must use prudence and caution to avoid misrepresentation by
acts of commission or omission. ......ANSWER......Integrity
Licensees must use judgement and skill when exercising their duties.
......ANSWER......Competency
pg. 1
,2|Page
Limitation or discrimination based on race, color, religion, sex, national
origin, ancestry, familial status or handicap of an owner, previous or
current occupant, potential purchaser, lessor or potential lessee of the
property. ......ANSWER......Discriminatory Practices
Includes anyone who has, had, or may have AIDS, an HIV-related illness
or HIV infection ......ANSWER......Handicap
Each active real estate broker shall provide this notice by (1) displaying
it in a readily noticeable location in each place of business the broker
maintains and (2) providing a link to it labeled "Texas Real Estate
Commission Consumer Protection Notice", in at least a 10 point font
......ANSWER......The Consumer Protection Form (CN 1-2)
A broker owes the highest ____ obligation to the principal and is
obliged to convey to the principal all information known to the agent
that may affect the principal's decision, unless prohibited by other law
......ANSWER......Fiduciary
The ____ duties a broker owes to his or her client are obedience,
loyalty, confidentiality, good faith, honesty, refraining from self-dealing,
integrity, fair and honest dealing, and disclosure of anything that may
have an effect on the client's decision. ......ANSWER......General
fiduciary
A broker owes a customer ______ along with disclosure about the
property. Brokers ......ANSWER......Honesty and fairness
pg. 2
,3|Page
_______ means client's money, earnest money, rent, unearned fees,
security deposits, or any money held on behalf of another person
......ANSWER......Trust money
_____ means an account managed by one party for the benefit of
another in a banking institution authorized to do business in Texas.
......ANSWER......Trust account
Any trust money received by the broker must be deposited in a trust
account or delivered to an authorized escrow agent within a reasonable
time, which the Commission has determined to be not later than the
close of business of the _______ WORKING day after the date the
broker receives the trust money. (Ex: Tues--> end of Wed)
......ANSWER......2nd
Usually the broker is holding money for the owner in the broker's _____
when managing the property. ......ANSWER......Trust account
The principal governing bodies that directly affect the real estate
industry are the: ......ANSWER......Texas State Legislature, the Texas
Property Code and the Texas Real Estate Commission (TREC).
Is responsible for all laws in Texas, which includes those laws that
directly affect the real estate industry.
pg. 3
, 4|Page
(State Senate and the House of Representatives) ......ANSWER......Texas
State Legislature
The state legislature created ___ and it has two main functions:
Enforce all real estate-related statues in the Texas Occupations Code,
Chapter 1101 and 1102, also referred to as The Texas Real Estate
License Act (TRELA) and To adopt and enforce new rules governing the
practice of real estate, as needed to administer the law and protect the
public ......ANSWER......The Texas Real Estate Commission (TREC)
Provides that The Commission is granted the authority to enforce all the
statutes contained in the Act as well as provide for the commission to
adopt and enforce new rules. ......ANSWER......The Real Estate License
Act (TRELA)
Licensed real estate professionals and licensed real estate inspectors
are responsible for ADHERING to the Texas Real Estate License Act
(TRELA), and ABIDE by the rules of the ______ ......ANSWER......Texas
Real Estate Commission (TREC)
A common state law, which, in Texas, requires the Sunset Commission
to evaluate all state agencies every 12 years with respect to their
efficiency and the need for their services. ......ANSWER......Sunset Act
pg. 4
TEXAS REAL ESTATE BROKERAGE SAE FINAL EXAM
AND PRACTICE EXAM NEWEST ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
In the 1970s the Texas Real Estate Commission adopted the first three
Cannons of Ethics ......ANSWER......Fidelity, Integrity and Competency
(codified in 1976)
A rule or principle or standard of conduct adopted by a professional
organization to guide the conduct of its members
......ANSWER......Cannons
Licensees must be faithful and observant to the trust placed in them, as
well as scrupulous and meticulous in performing task.
......ANSWER......Fidelity
Licensees must use prudence and caution to avoid misrepresentation by
acts of commission or omission. ......ANSWER......Integrity
Licensees must use judgement and skill when exercising their duties.
......ANSWER......Competency
pg. 1
,2|Page
Limitation or discrimination based on race, color, religion, sex, national
origin, ancestry, familial status or handicap of an owner, previous or
current occupant, potential purchaser, lessor or potential lessee of the
property. ......ANSWER......Discriminatory Practices
Includes anyone who has, had, or may have AIDS, an HIV-related illness
or HIV infection ......ANSWER......Handicap
Each active real estate broker shall provide this notice by (1) displaying
it in a readily noticeable location in each place of business the broker
maintains and (2) providing a link to it labeled "Texas Real Estate
Commission Consumer Protection Notice", in at least a 10 point font
......ANSWER......The Consumer Protection Form (CN 1-2)
A broker owes the highest ____ obligation to the principal and is
obliged to convey to the principal all information known to the agent
that may affect the principal's decision, unless prohibited by other law
......ANSWER......Fiduciary
The ____ duties a broker owes to his or her client are obedience,
loyalty, confidentiality, good faith, honesty, refraining from self-dealing,
integrity, fair and honest dealing, and disclosure of anything that may
have an effect on the client's decision. ......ANSWER......General
fiduciary
A broker owes a customer ______ along with disclosure about the
property. Brokers ......ANSWER......Honesty and fairness
pg. 2
,3|Page
_______ means client's money, earnest money, rent, unearned fees,
security deposits, or any money held on behalf of another person
......ANSWER......Trust money
_____ means an account managed by one party for the benefit of
another in a banking institution authorized to do business in Texas.
......ANSWER......Trust account
Any trust money received by the broker must be deposited in a trust
account or delivered to an authorized escrow agent within a reasonable
time, which the Commission has determined to be not later than the
close of business of the _______ WORKING day after the date the
broker receives the trust money. (Ex: Tues--> end of Wed)
......ANSWER......2nd
Usually the broker is holding money for the owner in the broker's _____
when managing the property. ......ANSWER......Trust account
The principal governing bodies that directly affect the real estate
industry are the: ......ANSWER......Texas State Legislature, the Texas
Property Code and the Texas Real Estate Commission (TREC).
Is responsible for all laws in Texas, which includes those laws that
directly affect the real estate industry.
pg. 3
, 4|Page
(State Senate and the House of Representatives) ......ANSWER......Texas
State Legislature
The state legislature created ___ and it has two main functions:
Enforce all real estate-related statues in the Texas Occupations Code,
Chapter 1101 and 1102, also referred to as The Texas Real Estate
License Act (TRELA) and To adopt and enforce new rules governing the
practice of real estate, as needed to administer the law and protect the
public ......ANSWER......The Texas Real Estate Commission (TREC)
Provides that The Commission is granted the authority to enforce all the
statutes contained in the Act as well as provide for the commission to
adopt and enforce new rules. ......ANSWER......The Real Estate License
Act (TRELA)
Licensed real estate professionals and licensed real estate inspectors
are responsible for ADHERING to the Texas Real Estate License Act
(TRELA), and ABIDE by the rules of the ______ ......ANSWER......Texas
Real Estate Commission (TREC)
A common state law, which, in Texas, requires the Sunset Commission
to evaluate all state agencies every 12 years with respect to their
efficiency and the need for their services. ......ANSWER......Sunset Act
pg. 4
