TX-BROKERAGE (SAE) EXAM 2025
QUESTIONS AND ANSWERS
The _____ is required to ascertain that Brokers are aware of all of their responsibilities. -
ANS Texas Real Estate Commission
The _____ course is to address the regulatory aspects of the management, operation and
supervision of a real estate brokerage firm in Texas. The course provides an understanding and
working knowledge of a broker's responsibilities and obligations under 22 TAC §535.2. -
ANS Broker Responsibility MCE
Who Must Take The Broker Responsibility MCE Course? - ANS 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 supervisor's
current license period), to complete this six—hour broker responsibility course to renew a
license.
"Act of God" - ANS A natural disaster or fire
Broker must, at a minimum, maintain the following records in a format that is readily available
to the Commission for at least ____ years from the date of closing, termination of the contract,
or end of a real estate transaction - ANS 4
Recruitment of a salesperson by a broker is not regulated with the exception that instructors or
other persons associated with a ___ may NOT recruit or solicit prospective salespersons or
brokers in a classroom during class time - ANS School
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 1
,There is no provision in the Act or the TREC Rules prohibiting a broker from _____ a salesperson
or broker—associate affiliated with another broker. - ANS Recruiting
________ are exempt from any of the provisions of the Texas Real Estate License Act. They are
permitted to represent clients in real estate transactions by virtue of their license to practice
law. - ANS Attorneys
Brokers CANNOT share their fees with attorneys who perform a brokerage service, attorneys
must seek compensation for that service directly from one of the ______ in a transaction -
ANS Principals
Can a listing broker share a portion of the listing broker's commission with an attorney who
represented the buyer in a real estate transaction? - ANS No. A broker is prohibited from
sharing fees with or otherwise compensating the attorney acting as a buyer's agent unless the
attorney holds an active real estate license.
Is a link to the IABS form required on my website? - ANS Yes. Rule 531.20(b) states that each
broker and sales agent must provide a link on its homepage to the IABS Form labeled "Texas
Real Estate Commission Information About Brokerage Services".
IABS link must be in at least a ______ point font and in a readily noticeable place on the
homepage of the business website of the broker and sales agent. - ANS 10
Does a link to the IABS Form in my email signature satisfy the representation disclosure
required by TRELA §1101.558? - ANS No. Rule 531.20(d) states that providing a link to the
IABS Form in a footnote or signature block of an email is insufficient
The IABS Form can be provided by: - ANS (1) personal delivery; (2) first class mail or
overnight common carrier delivery service; (3) in the body of an email; or (4) as an attachment
to an email or as a link in the body of an email so long as there is a specific reference to the
IABS Form in the body of the email.
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 2
,Reasons people give for wanting to open their own Brokerage: - ANS Wanting to create
something from scratch, Wanting to be their own boss, Wanting to train and motivate real
estate agents to be successful, Wanting to be leader in their community or in the industry, An
entrepreneurial spirit
Two good resources for finding past statistic for the real estate industry are - ANS The
National Association of REALTORS® and the Real Estate Center at Texas A&M University.
The _______ indicates the strength of the economy. - ANS Gross domestic product or GDP
Most good economies have a GDP of about _____ - ANS 3%
A new broker will need a good real estate attorney and a good _____ on their team. -
ANS Certified public accountant (CPA)
The Rules of the Texas Real Estate Commission require that a Broker have a_______ before you
start hiring agents - ANS Policy and Procedures Manual
Policy and Procedures Manual must include - ANS Agent's Authorized Activity, Advertising,
Compensation, Records Management, Trust Accounts
The new broker will want to consider three possibilities. - ANS Purchasing an existing real
estate business, purchasing a franchise office or a start up from scratch
All business entities engaged in real estate brokerage activity, including ______, need to be
licensed. - ANS Partnerships
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 3
, If the designated broker does NOT directly own at least 10% of the entity TREC requires proof
that the business entity maintains _______ in the amount of $1 million per occurrence. -
ANS Errors and omissions insurance
Two requirements that must be met for all advertisements - ANS Must "clearly and
conspicuously contain the name of the broker, either a business entity or an individual."
and An advertisement must include a designation that serves to clearly identify the advertiser
as a real estate agent.
TREC Qualifications to obtain a Broker's license: - ANS Citizen of the United States or lawfully
admitted alien, 18 years of age or older, Resident of Texas, unless you: were licensed in Texas
as a sales agent or broker in the last two years; or you are licensed as a broker in another state,
Meet TREC's qualifications for honesty, trustworthiness, and integrity
Instructors must pass the test with a grade of ____ or higher to be able to teach the course -
ANS 80%
To become a Broker you need to complete your qualifying education- ______ classroom hours
of qualifying real estate courses - ANS 270
Principles of Real Estate I (30 classroom hours), Principles of Real Estate II (30 classroom hours),
Law of Agency (30 classroom hours), Law of Contracts (30 classroom hours), Promulgated
Contracts Forms (30 classroom hours), Real Estate Finance (30 classroom hours), Real Estate
Brokerage (30 classroom hours) - ANS Brokerage mandatory courses
The Real Estate Brokerage course must be completed not more than ____ years before the
application date. - ANS 2
The Broker will become both the Leader and the _____ - ANS Manager
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 4
QUESTIONS AND ANSWERS
The _____ is required to ascertain that Brokers are aware of all of their responsibilities. -
ANS Texas Real Estate Commission
The _____ course is to address the regulatory aspects of the management, operation and
supervision of a real estate brokerage firm in Texas. The course provides an understanding and
working knowledge of a broker's responsibilities and obligations under 22 TAC §535.2. -
ANS Broker Responsibility MCE
Who Must Take The Broker Responsibility MCE Course? - ANS 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 supervisor's
current license period), to complete this six—hour broker responsibility course to renew a
license.
"Act of God" - ANS A natural disaster or fire
Broker must, at a minimum, maintain the following records in a format that is readily available
to the Commission for at least ____ years from the date of closing, termination of the contract,
or end of a real estate transaction - ANS 4
Recruitment of a salesperson by a broker is not regulated with the exception that instructors or
other persons associated with a ___ may NOT recruit or solicit prospective salespersons or
brokers in a classroom during class time - ANS School
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 1
,There is no provision in the Act or the TREC Rules prohibiting a broker from _____ a salesperson
or broker—associate affiliated with another broker. - ANS Recruiting
________ are exempt from any of the provisions of the Texas Real Estate License Act. They are
permitted to represent clients in real estate transactions by virtue of their license to practice
law. - ANS Attorneys
Brokers CANNOT share their fees with attorneys who perform a brokerage service, attorneys
must seek compensation for that service directly from one of the ______ in a transaction -
ANS Principals
Can a listing broker share a portion of the listing broker's commission with an attorney who
represented the buyer in a real estate transaction? - ANS No. A broker is prohibited from
sharing fees with or otherwise compensating the attorney acting as a buyer's agent unless the
attorney holds an active real estate license.
Is a link to the IABS form required on my website? - ANS Yes. Rule 531.20(b) states that each
broker and sales agent must provide a link on its homepage to the IABS Form labeled "Texas
Real Estate Commission Information About Brokerage Services".
IABS link must be in at least a ______ point font and in a readily noticeable place on the
homepage of the business website of the broker and sales agent. - ANS 10
Does a link to the IABS Form in my email signature satisfy the representation disclosure
required by TRELA §1101.558? - ANS No. Rule 531.20(d) states that providing a link to the
IABS Form in a footnote or signature block of an email is insufficient
The IABS Form can be provided by: - ANS (1) personal delivery; (2) first class mail or
overnight common carrier delivery service; (3) in the body of an email; or (4) as an attachment
to an email or as a link in the body of an email so long as there is a specific reference to the
IABS Form in the body of the email.
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 2
,Reasons people give for wanting to open their own Brokerage: - ANS Wanting to create
something from scratch, Wanting to be their own boss, Wanting to train and motivate real
estate agents to be successful, Wanting to be leader in their community or in the industry, An
entrepreneurial spirit
Two good resources for finding past statistic for the real estate industry are - ANS The
National Association of REALTORS® and the Real Estate Center at Texas A&M University.
The _______ indicates the strength of the economy. - ANS Gross domestic product or GDP
Most good economies have a GDP of about _____ - ANS 3%
A new broker will need a good real estate attorney and a good _____ on their team. -
ANS Certified public accountant (CPA)
The Rules of the Texas Real Estate Commission require that a Broker have a_______ before you
start hiring agents - ANS Policy and Procedures Manual
Policy and Procedures Manual must include - ANS Agent's Authorized Activity, Advertising,
Compensation, Records Management, Trust Accounts
The new broker will want to consider three possibilities. - ANS Purchasing an existing real
estate business, purchasing a franchise office or a start up from scratch
All business entities engaged in real estate brokerage activity, including ______, need to be
licensed. - ANS Partnerships
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 3
, If the designated broker does NOT directly own at least 10% of the entity TREC requires proof
that the business entity maintains _______ in the amount of $1 million per occurrence. -
ANS Errors and omissions insurance
Two requirements that must be met for all advertisements - ANS Must "clearly and
conspicuously contain the name of the broker, either a business entity or an individual."
and An advertisement must include a designation that serves to clearly identify the advertiser
as a real estate agent.
TREC Qualifications to obtain a Broker's license: - ANS Citizen of the United States or lawfully
admitted alien, 18 years of age or older, Resident of Texas, unless you: were licensed in Texas
as a sales agent or broker in the last two years; or you are licensed as a broker in another state,
Meet TREC's qualifications for honesty, trustworthiness, and integrity
Instructors must pass the test with a grade of ____ or higher to be able to teach the course -
ANS 80%
To become a Broker you need to complete your qualifying education- ______ classroom hours
of qualifying real estate courses - ANS 270
Principles of Real Estate I (30 classroom hours), Principles of Real Estate II (30 classroom hours),
Law of Agency (30 classroom hours), Law of Contracts (30 classroom hours), Promulgated
Contracts Forms (30 classroom hours), Real Estate Finance (30 classroom hours), Real Estate
Brokerage (30 classroom hours) - ANS Brokerage mandatory courses
The Real Estate Brokerage course must be completed not more than ____ years before the
application date. - ANS 2
The Broker will become both the Leader and the _____ - ANS Manager
COPYRIGHT © 2025 THESTAR ALL RIGHTS RESERVED 4
