Texas Real Estate SAE Brokerage Exam
Supplemental Acknowledgment Examination
Texas Real Estate Commission (TREC) Licensing Assessment
Version 1.0 — 85 Questions — Academic Paper Format
1
,Introduction
This document presents a comprehensive practice examination for the Texas Real Estate Supplemental
Acknowledgment Examination (SAE) in Brokerage. It is designed to assess knowledge of Texas-specific
real estate law, TREC rules, brokerage operations, and professional standards required for broker
licensure.
The examination consists of 85 multiple-choice questions covering the full scope of brokerage
responsibilities under the Texas Real Estate License Act (TRELA), the Texas Occupations Code, the Texas
Property Code, and TREC administrative rules. Each question includes four answer options, the correct
answer highlighted in green, and a detailed rationale citing applicable Texas statutes, TREC rules, or
established brokerage principles.
This practice examination is intended for educational purposes only and should be used as a supplement
to formal study materials and TREC-approved courses. It does not replace the official TREC examination,
and performance on this practice exam does not guarantee results on the actual licensing examination.
Exam Structure
Total Questions: 85 multiple-choice questions
Time Allotted: 4 hours (240 minutes)
Passing Score: 560 out of 1,000 (approximately 56%)
Examination Fee: $392.00 (subject to change)
Prerequisites: 180 classroom hours of qualifying education; 4 years active experience as a licensed sales
agent within the preceding 60 months; completion of Broker Responsibility course
Question Format: Four-option (A, B, C, D) multiple choice with one best answer
Content Areas: TRELA and TREC Rules, Brokerage Operations, Contract Law and Forms, Agency
Relationships, Fair Housing, Finance, Property Management, Deed and Title, Closings, and Risk
Management
Questions
The following 85 questions cover all major content areas tested on the Texas Real Estate SAE Brokerage
Examination. Each question is followed by the correct answer and a detailed rationale.
Question 1: Under TRELA, what is the minimum experience requirement for a sales agent
to qualify for a broker license?
A. 2 years active licensure
B. 4 years active licensure within the 60 months preceding application
C. 5 years in any real estate capacity
D. No experience required if education is complete
Correct Answer: B. 4 years active licensure within the 60 months preceding
application
Rationale: Texas Occupations Code §1101.356 requires applicants for broker licensure to have
been actively licensed as a sales agent for at least 4 years during the 60-month period
immediately preceding the application.
Question 2: Which TREC rule requires a broker to maintain trust account records for at
least 3 years?
A. Rule 535.2
B. Rule 535.146
C. Rule 535.156
D. Rule 535.22
Correct Answer: C. Rule 535.156
2
, Rationale: TREC Rule 535.156 (Trust Accounts) requires brokers to maintain complete and
accurate trust account records for at least 3 years from the date of the transaction.
Question 3: In Texas, what is the primary fiduciary duty a broker owes to a client?
A. Loyalty
B. Advertising expertise
C. Market analysis
D. Social media management
Correct Answer: A. Loyalty
Rationale: Under Texas agency law, the primary fiduciary duty owed to a client is loyalty,
which includes putting the client's interests above the broker's own.
Question 4: Which TREC-promulgated contract form is used for the resale of one-to-four
family residential property?
A. TREC No. 20-14
B. TREC No. 1-4
C. TREC No. 30-1
D. TREC No. 24-14
Correct Answer: B. TREC No. 1-4
Rationale: TREC Form 1-4 (One to Four Family Residential Contract) is the standard
promulgated contract for resale residential transactions in Texas.
Question 5: What is the maximum civil penalty TREC may assess for a single violation of
TRELA?
A. $1,000
B. $5,000
C. $10,000
D. $25,000
Correct Answer: B. $5,000
Rationale: Texas Occupations Code §1101.707 authorizes TREC to assess administrative
penalties up to $5,000 for each violation.
Question 6: Which advertising practice is PROHIBITED under TREC rules?
A. Including the broker's name in all advertisements
B. Using a team name without disclosing the responsible broker
C. Stating "Licensed by TREC" in marketing materials
D. Using social media for property promotion
Correct Answer: B. Using a team name without disclosing the responsible broker
Rationale: TREC Rule 535.154 requires all advertisements using a team name to clearly and
conspicuously disclose the name of the licensed broker.
Question 7: Under Texas intermediary brokerage rules, what must a broker do when
representing both buyer and seller?
A. Act as a dual agent without disclosure
B. Obtain written consent from both parties and provide required notices
C. Refuse to represent either party
D. Charge double commission
Correct Answer: B. Obtain written consent from both parties and provide required
notices
Rationale: Texas Occupations Code §1101.559 allows intermediary only with written consent of
both parties after providing IABS and required disclosures.
Question 8: Which document must be provided to a prospective client at the first
substantive dialogue about a specific property?
3
Supplemental Acknowledgment Examination
Texas Real Estate Commission (TREC) Licensing Assessment
Version 1.0 — 85 Questions — Academic Paper Format
1
,Introduction
This document presents a comprehensive practice examination for the Texas Real Estate Supplemental
Acknowledgment Examination (SAE) in Brokerage. It is designed to assess knowledge of Texas-specific
real estate law, TREC rules, brokerage operations, and professional standards required for broker
licensure.
The examination consists of 85 multiple-choice questions covering the full scope of brokerage
responsibilities under the Texas Real Estate License Act (TRELA), the Texas Occupations Code, the Texas
Property Code, and TREC administrative rules. Each question includes four answer options, the correct
answer highlighted in green, and a detailed rationale citing applicable Texas statutes, TREC rules, or
established brokerage principles.
This practice examination is intended for educational purposes only and should be used as a supplement
to formal study materials and TREC-approved courses. It does not replace the official TREC examination,
and performance on this practice exam does not guarantee results on the actual licensing examination.
Exam Structure
Total Questions: 85 multiple-choice questions
Time Allotted: 4 hours (240 minutes)
Passing Score: 560 out of 1,000 (approximately 56%)
Examination Fee: $392.00 (subject to change)
Prerequisites: 180 classroom hours of qualifying education; 4 years active experience as a licensed sales
agent within the preceding 60 months; completion of Broker Responsibility course
Question Format: Four-option (A, B, C, D) multiple choice with one best answer
Content Areas: TRELA and TREC Rules, Brokerage Operations, Contract Law and Forms, Agency
Relationships, Fair Housing, Finance, Property Management, Deed and Title, Closings, and Risk
Management
Questions
The following 85 questions cover all major content areas tested on the Texas Real Estate SAE Brokerage
Examination. Each question is followed by the correct answer and a detailed rationale.
Question 1: Under TRELA, what is the minimum experience requirement for a sales agent
to qualify for a broker license?
A. 2 years active licensure
B. 4 years active licensure within the 60 months preceding application
C. 5 years in any real estate capacity
D. No experience required if education is complete
Correct Answer: B. 4 years active licensure within the 60 months preceding
application
Rationale: Texas Occupations Code §1101.356 requires applicants for broker licensure to have
been actively licensed as a sales agent for at least 4 years during the 60-month period
immediately preceding the application.
Question 2: Which TREC rule requires a broker to maintain trust account records for at
least 3 years?
A. Rule 535.2
B. Rule 535.146
C. Rule 535.156
D. Rule 535.22
Correct Answer: C. Rule 535.156
2
, Rationale: TREC Rule 535.156 (Trust Accounts) requires brokers to maintain complete and
accurate trust account records for at least 3 years from the date of the transaction.
Question 3: In Texas, what is the primary fiduciary duty a broker owes to a client?
A. Loyalty
B. Advertising expertise
C. Market analysis
D. Social media management
Correct Answer: A. Loyalty
Rationale: Under Texas agency law, the primary fiduciary duty owed to a client is loyalty,
which includes putting the client's interests above the broker's own.
Question 4: Which TREC-promulgated contract form is used for the resale of one-to-four
family residential property?
A. TREC No. 20-14
B. TREC No. 1-4
C. TREC No. 30-1
D. TREC No. 24-14
Correct Answer: B. TREC No. 1-4
Rationale: TREC Form 1-4 (One to Four Family Residential Contract) is the standard
promulgated contract for resale residential transactions in Texas.
Question 5: What is the maximum civil penalty TREC may assess for a single violation of
TRELA?
A. $1,000
B. $5,000
C. $10,000
D. $25,000
Correct Answer: B. $5,000
Rationale: Texas Occupations Code §1101.707 authorizes TREC to assess administrative
penalties up to $5,000 for each violation.
Question 6: Which advertising practice is PROHIBITED under TREC rules?
A. Including the broker's name in all advertisements
B. Using a team name without disclosing the responsible broker
C. Stating "Licensed by TREC" in marketing materials
D. Using social media for property promotion
Correct Answer: B. Using a team name without disclosing the responsible broker
Rationale: TREC Rule 535.154 requires all advertisements using a team name to clearly and
conspicuously disclose the name of the licensed broker.
Question 7: Under Texas intermediary brokerage rules, what must a broker do when
representing both buyer and seller?
A. Act as a dual agent without disclosure
B. Obtain written consent from both parties and provide required notices
C. Refuse to represent either party
D. Charge double commission
Correct Answer: B. Obtain written consent from both parties and provide required
notices
Rationale: Texas Occupations Code §1101.559 allows intermediary only with written consent of
both parties after providing IABS and required disclosures.
Question 8: Which document must be provided to a prospective client at the first
substantive dialogue about a specific property?
3
