SAE Real Estate Brokerage Exam, Texas Real
Estate Commission (TREC), 2026/2027 – 200+
Questions with Verified Answers
SECTION 1: BROKER RESPONSIBILITIES & SUPERVISION (Questions
1–35)
Q1. Who is ultimately responsible for ensuring a real estate transaction
complies with state laws?
A) The sales agent
B) The sponsoring broker
C) The title company
D) The buyer
Answer: B
Rationale: The sponsoring broker is ultimately responsible for all real estate
activities conducted under their license, including ensuring compliance with
state laws and regulations .
Q2. A broker who allows a sponsored sales agent to engage in
misrepresentation is:
A) Only civilly liable
B) Not responsible unless it was intentional
C) Subject to disciplinary action by the Real Estate Commission
D) Immune if unaware
Answer: C
Rationale: Brokers are held responsible for the actions of their sponsored
agents under vicarious liability, even if they are unaware of the violations.
The broker may face disciplinary action from the Real Estate Commission .
Q3. What must a broker provide to ensure agents understand company
expectations?
A) A verbal explanation
B) A written policies and procedures manual
,C) A website link
D) A notarized statement
Answer: B
Rationale: A written policies and procedures manual is required to ensure
agents understand company expectations regarding advertising,
compensation, records management, trust accounts, and authorized
activities .
Q4. The Texas Real Estate Commission (TREC) requires that a broker have
which document before hiring agents?
A) A business license
B) A policies and procedures manual
C) An employee handbook
D) A franchise agreement
Answer: B
Rationale: The Rules of the Texas Real Estate Commission require that a
broker have a policies and procedures manual in place before hiring agents .
Q5. As the supervising broker, Tanner makes sure the firm's policies manual
is updated regularly and enforced. Does this relieve Tanner of vicarious
liability if a licensee performs an unethical act?
A) Yes, completely
B) No, but it may help lessen sanctions
C) Only if the act was criminal
D) Yes, if documented
Answer: B
Rationale: Though technically Tanner is responsible, if he can prove that the
firm has policies in place and that he provides training and coaching, he may
receive less blame than he might otherwise .
Q6. Which of the following is required to be in writing to be enforceable
under the Statute of Frauds?
A) A lease agreement for one month
B) A contract to sell real estate
,C) A handshake agreement for a car
D) A verbal listing agreement
Answer: B
Rationale: The Statute of Frauds requires contracts involving the sale of real
estate to be in writing to be enforceable .
Q7. A broker must, at a minimum, maintain the following records in a format
readily available to the Commission for at least how many years?
A) 2 years
B) 3 years
C) 4 years
D) 7 years
Answer: C
Rationale: Brokers must maintain records for at least 4 years from the date
of closing, termination of the contract, or end of a real estate transaction .
Q8. The ________ course addresses the regulatory aspects of managing,
operating, and supervising a real estate brokerage firm in Texas.
A) Broker Responsibility MCE
B) Legal Update
C) Ethics
D) Finance
Answer: A
Rationale: The Broker Responsibility MCE course addresses the regulatory
aspects of management, operation, and supervision of a real estate
brokerage firm in Texas .
Q9. Who must take the Broker Responsibility MCE Course?
A) All license holders
B) A broker who sponsors salespersons, designated broker of a business
entity, or delegated supervisor of license holders
C) Only new brokers
D) Only brokers with 10+ agents
Answer: B
Rationale: A broker who sponsors salespersons, a designated broker of a
, business entity, and a license holder who is a delegated supervisor of one or
more license holders (for six months or more during the current license
period) must complete the six-hour broker responsibility course to renew a
license .
Q10. What is the minimum age to obtain a Texas real estate broker's
license?
A) 18
B) 19
C) 21
D) 25
Answer: A
Rationale: The minimum age to be licensed in Texas is 18 years old .
Q11. What legal concept relates to a broker's responsibility for licensee
misconduct?
A) Respondeat superior
B) Vicarious liability
C) Strict liability
D) Comparative negligence
Answer: B
Rationale: Vicarious liability is the legal concept that holds a broker
responsible for the actions of their sponsored agents .
Q12. If a license holder is convicted of a felony, what must they do?
A) Nothing if unrelated to real estate
B) Notify TREC within 30 days
C) Wait for renewal to report
D) Notify their broker only
Answer: B
Rationale: License holders must report felony convictions to TREC within 30
days .
Estate Commission (TREC), 2026/2027 – 200+
Questions with Verified Answers
SECTION 1: BROKER RESPONSIBILITIES & SUPERVISION (Questions
1–35)
Q1. Who is ultimately responsible for ensuring a real estate transaction
complies with state laws?
A) The sales agent
B) The sponsoring broker
C) The title company
D) The buyer
Answer: B
Rationale: The sponsoring broker is ultimately responsible for all real estate
activities conducted under their license, including ensuring compliance with
state laws and regulations .
Q2. A broker who allows a sponsored sales agent to engage in
misrepresentation is:
A) Only civilly liable
B) Not responsible unless it was intentional
C) Subject to disciplinary action by the Real Estate Commission
D) Immune if unaware
Answer: C
Rationale: Brokers are held responsible for the actions of their sponsored
agents under vicarious liability, even if they are unaware of the violations.
The broker may face disciplinary action from the Real Estate Commission .
Q3. What must a broker provide to ensure agents understand company
expectations?
A) A verbal explanation
B) A written policies and procedures manual
,C) A website link
D) A notarized statement
Answer: B
Rationale: A written policies and procedures manual is required to ensure
agents understand company expectations regarding advertising,
compensation, records management, trust accounts, and authorized
activities .
Q4. The Texas Real Estate Commission (TREC) requires that a broker have
which document before hiring agents?
A) A business license
B) A policies and procedures manual
C) An employee handbook
D) A franchise agreement
Answer: B
Rationale: The Rules of the Texas Real Estate Commission require that a
broker have a policies and procedures manual in place before hiring agents .
Q5. As the supervising broker, Tanner makes sure the firm's policies manual
is updated regularly and enforced. Does this relieve Tanner of vicarious
liability if a licensee performs an unethical act?
A) Yes, completely
B) No, but it may help lessen sanctions
C) Only if the act was criminal
D) Yes, if documented
Answer: B
Rationale: Though technically Tanner is responsible, if he can prove that the
firm has policies in place and that he provides training and coaching, he may
receive less blame than he might otherwise .
Q6. Which of the following is required to be in writing to be enforceable
under the Statute of Frauds?
A) A lease agreement for one month
B) A contract to sell real estate
,C) A handshake agreement for a car
D) A verbal listing agreement
Answer: B
Rationale: The Statute of Frauds requires contracts involving the sale of real
estate to be in writing to be enforceable .
Q7. A broker must, at a minimum, maintain the following records in a format
readily available to the Commission for at least how many years?
A) 2 years
B) 3 years
C) 4 years
D) 7 years
Answer: C
Rationale: Brokers must maintain records for at least 4 years from the date
of closing, termination of the contract, or end of a real estate transaction .
Q8. The ________ course addresses the regulatory aspects of managing,
operating, and supervising a real estate brokerage firm in Texas.
A) Broker Responsibility MCE
B) Legal Update
C) Ethics
D) Finance
Answer: A
Rationale: The Broker Responsibility MCE course addresses the regulatory
aspects of management, operation, and supervision of a real estate
brokerage firm in Texas .
Q9. Who must take the Broker Responsibility MCE Course?
A) All license holders
B) A broker who sponsors salespersons, designated broker of a business
entity, or delegated supervisor of license holders
C) Only new brokers
D) Only brokers with 10+ agents
Answer: B
Rationale: A broker who sponsors salespersons, a designated broker of a
, business entity, and a license holder who is a delegated supervisor of one or
more license holders (for six months or more during the current license
period) must complete the six-hour broker responsibility course to renew a
license .
Q10. What is the minimum age to obtain a Texas real estate broker's
license?
A) 18
B) 19
C) 21
D) 25
Answer: A
Rationale: The minimum age to be licensed in Texas is 18 years old .
Q11. What legal concept relates to a broker's responsibility for licensee
misconduct?
A) Respondeat superior
B) Vicarious liability
C) Strict liability
D) Comparative negligence
Answer: B
Rationale: Vicarious liability is the legal concept that holds a broker
responsible for the actions of their sponsored agents .
Q12. If a license holder is convicted of a felony, what must they do?
A) Nothing if unrelated to real estate
B) Notify TREC within 30 days
C) Wait for renewal to report
D) Notify their broker only
Answer: B
Rationale: License holders must report felony convictions to TREC within 30
days .
