TEXAS REAL ESTATE BROKERAGE SAE FINAL EXAM AND
PRACTICE EXAM NEWEST ACTUAL EXAM 450 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |
ALREADY GRADED A+
Question 1
In Texas, what is the primary role of a sponsoring broker?
A) To personally attend every closing with their sponsored agents.
B) To guarantee all financial transactions of their sponsored agents.
C) To actively supervise and be responsible for the professional acts of
sponsored sales agents.
D) To provide all marketing materials for their sponsored agents at no cost.
E) To ensure sponsored agents only work within a specific geographic area.
Correct Answer: C) To actively supervise and be responsible for the
professional acts of sponsored sales agents.
Rationale: Under the Texas Real Estate License Act (TRELA), a
sponsoring broker has a fundamental responsibility to actively
supervise and bear responsibility for the professional actions of
their sponsored sales agents.
Question 2
A Texas real estate broker is typically responsible for maintaining client trust
accounts. Which of the following is not allowed with trust account funds?
A) Depositing client earnest money.
B) Depositing client security deposits for rental properties.
C) Co-mingling trust account funds with the broker's personal operating
funds.
D) Disbursing funds as instructed by the principals of a transaction.
E) Maintaining clear and detailed records of all trust account transactions.
Correct Answer: C) Co-mingling trust account funds with the
broker's personal operating funds.
Rationale: Co-mingling, the illegal practice of mixing clients' funds
with the broker's personal or business funds, is strictly prohibited
by TRELA and other state regulations to protect client money.
Question 3
What is the minimum number of years of active experience as a licensed real
estate sales agent or broker in Texas required to be eligible for a broker's
license?
A) 1 year
B) 2 years
C) 3 years
D) 4 years
,E) 5 years
Correct Answer: D) 4 years.
Rationale: To be eligible for a Texas real estate broker's license, an
applicant must have at least four years of active experience as a
licensed real estate sales agent or broker during the five-year
period immediately preceding the date the application is filed.
Question 4
A Texas broker is operating their business as a sole proprietorship. If the
broker dies, what happens to their sponsored sales agents?
A) They automatically become independent brokers.
B) Their licenses are immediately terminated.
C) They can continue to operate under the deceased broker's license for up
to 90 days if a temporary administrator is appointed.
D) They must cease all real estate activities immediately.
E) They can transfer their sponsorship to the broker's surviving spouse.
Correct Answer: C) They can continue to operate under the
deceased broker's license for up to 90 days if a temporary
administrator is appointed.
Rationale: TRELA provides for temporary authorization for a
sponsored sales agent to continue operating under a deceased or
incapacitated broker's license for a limited period (up to 90 days) if
a qualified person is appointed to temporarily administer the
brokerage.
Question 5
When a Texas real estate sales agent receives earnest money from a client,
to whom must they deliver it?
A) Directly to the title company.
B) Directly to the seller.
C) To their sponsoring broker.
D) To the buyer's attorney.
E) They can hold it in their personal bank account until closing.
Correct Answer: C) To their sponsoring broker.
Rationale: Sales agents are not permitted to hold earnest money or
other client funds. All funds received on behalf of clients must be
immediately delivered to their sponsoring broker, who is responsible
for depositing them into the appropriate trust account.
Question 6
Which of the following describes a key element of the broker's responsibility
,regarding advertising in Texas?
A) All advertising must include the sales agent's personal phone number.
B) The broker's name (or assumed business name) must be clearly and
conspicuously displayed in all advertising.
C) Only properties listed by the sponsoring broker can be advertised by their
agents.
D) Advertising only needs to include the sales agent's name.
E) All advertising must be pre-approved by TREC.
Correct Answer: B) The broker's name (or assumed business name)
must be clearly and conspicuously displayed in all advertising.
Rationale: TREC Rule 535.155 requires that all advertisements by a
sponsored sales agent or broker acting as an intermediary must
include the name of the broker (or the broker's assumed business
name) in a clear and conspicuous manner.
Question 7
A Texas real estate broker wants to open an additional office location. What is
generally required for this new office?
A) A separate broker's license for the new office.
B) Notification to TREC of the new office location.
C) A separate trust account for the new office.
D) The new office must be managed by a licensed attorney.
E) The new office must be located in a different county.
Correct Answer: B) Notification to TREC of the new office location.
Rationale: TRELA requires a broker to notify TREC of any new office
location and to register any assumed business name (DBA) used for
that office. A separate broker's license is not required for additional
offices under the same broker.
Question 8
What is "procuring cause" in the context of a real estate commission dispute
in Texas?
A) The primary reason the buyer purchased the property.
B) The action that initiated the chain of events that led to a successful
transaction.
C) The broker who listed the property for sale.
D) The agent who prepared the sales contract.
E) The total amount of commission paid to all parties.
Correct Answer: B) The action that initiated the chain of events that
led to a successful transaction.
Rationale: Procuring cause refers to the efforts of a broker or agent
, that result in the successful consummation of a real estate
transaction. It's the action that brings about the desired result
without a break in continuity, and is often a key factor in
commission disputes.
Question 9
Under what circumstances may a Texas real estate sales agent accept
compensation directly from a client for real estate services?
A) If the client insists on paying the sales agent directly.
B) If the sponsoring broker provides written permission for direct payment.
C) Never; all compensation must go through their sponsoring broker.
D) If the sales agent is an independent contractor.
E) For referral fees only.
Correct Answer: C) Never; all compensation must go through their
sponsoring broker.
Rationale: TRELA strictly prohibits a sales agent from accepting
compensation for real estate services from anyone other than their
sponsoring broker or a previous sponsoring broker.
Question 10
What is the purpose of the Texas Real Estate Recovery Trust Account?
A) To fund education for real estate licensees.
B) To reimburse consumers who have suffered monetary damages due to the
illegal acts of licensees.
C) To pay legal fees for brokers involved in disputes.
D) To support TREC's operating expenses.
E) To provide loans for first-time homebuyers.
Correct Answer: B) To reimburse consumers who have suffered
monetary damages due to the illegal acts of licensees.
Rationale: The Real Estate Recovery Trust Account is maintained by
TREC to compensate eligible members of the public who have
incurred actual damages as a result of certain illegal acts committed
by a Texas real estate licensee.
Question 11
A Texas broker acting as an Intermediary must appoint associated licensees
to work with each party (buyer and seller). What is the role of these
appointed licensees?
A) To act as dual agents for both parties.
B) To give opinions and advice to the party to whom they are appointed.
C) To represent only the broker, not the parties.
PRACTICE EXAM NEWEST ACTUAL EXAM 450 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |
ALREADY GRADED A+
Question 1
In Texas, what is the primary role of a sponsoring broker?
A) To personally attend every closing with their sponsored agents.
B) To guarantee all financial transactions of their sponsored agents.
C) To actively supervise and be responsible for the professional acts of
sponsored sales agents.
D) To provide all marketing materials for their sponsored agents at no cost.
E) To ensure sponsored agents only work within a specific geographic area.
Correct Answer: C) To actively supervise and be responsible for the
professional acts of sponsored sales agents.
Rationale: Under the Texas Real Estate License Act (TRELA), a
sponsoring broker has a fundamental responsibility to actively
supervise and bear responsibility for the professional actions of
their sponsored sales agents.
Question 2
A Texas real estate broker is typically responsible for maintaining client trust
accounts. Which of the following is not allowed with trust account funds?
A) Depositing client earnest money.
B) Depositing client security deposits for rental properties.
C) Co-mingling trust account funds with the broker's personal operating
funds.
D) Disbursing funds as instructed by the principals of a transaction.
E) Maintaining clear and detailed records of all trust account transactions.
Correct Answer: C) Co-mingling trust account funds with the
broker's personal operating funds.
Rationale: Co-mingling, the illegal practice of mixing clients' funds
with the broker's personal or business funds, is strictly prohibited
by TRELA and other state regulations to protect client money.
Question 3
What is the minimum number of years of active experience as a licensed real
estate sales agent or broker in Texas required to be eligible for a broker's
license?
A) 1 year
B) 2 years
C) 3 years
D) 4 years
,E) 5 years
Correct Answer: D) 4 years.
Rationale: To be eligible for a Texas real estate broker's license, an
applicant must have at least four years of active experience as a
licensed real estate sales agent or broker during the five-year
period immediately preceding the date the application is filed.
Question 4
A Texas broker is operating their business as a sole proprietorship. If the
broker dies, what happens to their sponsored sales agents?
A) They automatically become independent brokers.
B) Their licenses are immediately terminated.
C) They can continue to operate under the deceased broker's license for up
to 90 days if a temporary administrator is appointed.
D) They must cease all real estate activities immediately.
E) They can transfer their sponsorship to the broker's surviving spouse.
Correct Answer: C) They can continue to operate under the
deceased broker's license for up to 90 days if a temporary
administrator is appointed.
Rationale: TRELA provides for temporary authorization for a
sponsored sales agent to continue operating under a deceased or
incapacitated broker's license for a limited period (up to 90 days) if
a qualified person is appointed to temporarily administer the
brokerage.
Question 5
When a Texas real estate sales agent receives earnest money from a client,
to whom must they deliver it?
A) Directly to the title company.
B) Directly to the seller.
C) To their sponsoring broker.
D) To the buyer's attorney.
E) They can hold it in their personal bank account until closing.
Correct Answer: C) To their sponsoring broker.
Rationale: Sales agents are not permitted to hold earnest money or
other client funds. All funds received on behalf of clients must be
immediately delivered to their sponsoring broker, who is responsible
for depositing them into the appropriate trust account.
Question 6
Which of the following describes a key element of the broker's responsibility
,regarding advertising in Texas?
A) All advertising must include the sales agent's personal phone number.
B) The broker's name (or assumed business name) must be clearly and
conspicuously displayed in all advertising.
C) Only properties listed by the sponsoring broker can be advertised by their
agents.
D) Advertising only needs to include the sales agent's name.
E) All advertising must be pre-approved by TREC.
Correct Answer: B) The broker's name (or assumed business name)
must be clearly and conspicuously displayed in all advertising.
Rationale: TREC Rule 535.155 requires that all advertisements by a
sponsored sales agent or broker acting as an intermediary must
include the name of the broker (or the broker's assumed business
name) in a clear and conspicuous manner.
Question 7
A Texas real estate broker wants to open an additional office location. What is
generally required for this new office?
A) A separate broker's license for the new office.
B) Notification to TREC of the new office location.
C) A separate trust account for the new office.
D) The new office must be managed by a licensed attorney.
E) The new office must be located in a different county.
Correct Answer: B) Notification to TREC of the new office location.
Rationale: TRELA requires a broker to notify TREC of any new office
location and to register any assumed business name (DBA) used for
that office. A separate broker's license is not required for additional
offices under the same broker.
Question 8
What is "procuring cause" in the context of a real estate commission dispute
in Texas?
A) The primary reason the buyer purchased the property.
B) The action that initiated the chain of events that led to a successful
transaction.
C) The broker who listed the property for sale.
D) The agent who prepared the sales contract.
E) The total amount of commission paid to all parties.
Correct Answer: B) The action that initiated the chain of events that
led to a successful transaction.
Rationale: Procuring cause refers to the efforts of a broker or agent
, that result in the successful consummation of a real estate
transaction. It's the action that brings about the desired result
without a break in continuity, and is often a key factor in
commission disputes.
Question 9
Under what circumstances may a Texas real estate sales agent accept
compensation directly from a client for real estate services?
A) If the client insists on paying the sales agent directly.
B) If the sponsoring broker provides written permission for direct payment.
C) Never; all compensation must go through their sponsoring broker.
D) If the sales agent is an independent contractor.
E) For referral fees only.
Correct Answer: C) Never; all compensation must go through their
sponsoring broker.
Rationale: TRELA strictly prohibits a sales agent from accepting
compensation for real estate services from anyone other than their
sponsoring broker or a previous sponsoring broker.
Question 10
What is the purpose of the Texas Real Estate Recovery Trust Account?
A) To fund education for real estate licensees.
B) To reimburse consumers who have suffered monetary damages due to the
illegal acts of licensees.
C) To pay legal fees for brokers involved in disputes.
D) To support TREC's operating expenses.
E) To provide loans for first-time homebuyers.
Correct Answer: B) To reimburse consumers who have suffered
monetary damages due to the illegal acts of licensees.
Rationale: The Real Estate Recovery Trust Account is maintained by
TREC to compensate eligible members of the public who have
incurred actual damages as a result of certain illegal acts committed
by a Texas real estate licensee.
Question 11
A Texas broker acting as an Intermediary must appoint associated licensees
to work with each party (buyer and seller). What is the role of these
appointed licensees?
A) To act as dual agents for both parties.
B) To give opinions and advice to the party to whom they are appointed.
C) To represent only the broker, not the parties.
