Texas
SAE Exam
Final Assessment Review
(With Solutions)
2025
1
,1. A sponsored sales agent receives earnest money from a buyer’s
attorney on Monday. According to TREC Rule 535.146, the broker must
deposit these funds into the escrow account by:
A. Close of business Wednesday
B. Close of business Thursday
C. Next business day
D. End of the month
Correct ANS: B. Close of business Thursday
Rationale: Under the “third business day” rule, funds received on
Monday must be deposited by close of business on the third business day
(Thursday).
2. A designated broker delegates supervision of three sales agents to an
associate broker. Which of the following tasks may the associate broker
perform under Texas law?
A. Promise commission splits to new hires
B. Sign listing agreements on behalf of the brokerage
C. Conduct daily oversight and training of the delegated agents
D. Hold the main broker’s license number in advertisements
Correct ANS: C. Conduct daily oversight and training of the delegated
agents
Rationale: An associate broker may supervise sales agents’ activities
and training if the designated broker formally delegates that
responsibility in writing.
3. In a buyer‐broker agreement, the clause stating that the agreement
terminates if the property owner revokes the listing is an example of:
A. Exclusive agency termination clause
B. Executory period condition
2
, C. Mutual rescission provision
D. Contingent earnest money clause
Correct ANS: A. Exclusive agency termination clause
Rationale: Termination clauses in exclusive agency agreements allow
the broker’s authority to end if the principal revokes the listing.
4. A sales agent employed at‐will is terminated after reporting the
broker’s undisclosed dual agency practice. Under Texas law, this
termination is likely:
A. Permissible—Texas follows at‐will employment doctrine
B. Wrongful—retaliation for whistleblowing is prohibited
C. Valid if the agent signed an independent‐contractor agreement
D. Unreviewable—even state law protects whistleblowers
Correct ANS: B. Wrongful—retaliation for whistleblowing is
prohibited
Rationale: Texas law protects employees from termination as
retaliation for reporting unlawful acts (Texas Whistleblower Act), despite
general at‐will doctrine.
5. A broker asks a sales agent to withhold negative inspection reports to
expedite the sale. Which ethical duty is breached?
A. Duty of loyalty
B. Duty of confidentiality
C. Duty to disclose material facts
D. Duty of accountability
Correct ANS: C. Duty to disclose material facts
Rationale: License holders must disclose all material facts affecting
value or desirability; withholding inspection defects violates that duty.
3
SAE Exam
Final Assessment Review
(With Solutions)
2025
1
,1. A sponsored sales agent receives earnest money from a buyer’s
attorney on Monday. According to TREC Rule 535.146, the broker must
deposit these funds into the escrow account by:
A. Close of business Wednesday
B. Close of business Thursday
C. Next business day
D. End of the month
Correct ANS: B. Close of business Thursday
Rationale: Under the “third business day” rule, funds received on
Monday must be deposited by close of business on the third business day
(Thursday).
2. A designated broker delegates supervision of three sales agents to an
associate broker. Which of the following tasks may the associate broker
perform under Texas law?
A. Promise commission splits to new hires
B. Sign listing agreements on behalf of the brokerage
C. Conduct daily oversight and training of the delegated agents
D. Hold the main broker’s license number in advertisements
Correct ANS: C. Conduct daily oversight and training of the delegated
agents
Rationale: An associate broker may supervise sales agents’ activities
and training if the designated broker formally delegates that
responsibility in writing.
3. In a buyer‐broker agreement, the clause stating that the agreement
terminates if the property owner revokes the listing is an example of:
A. Exclusive agency termination clause
B. Executory period condition
2
, C. Mutual rescission provision
D. Contingent earnest money clause
Correct ANS: A. Exclusive agency termination clause
Rationale: Termination clauses in exclusive agency agreements allow
the broker’s authority to end if the principal revokes the listing.
4. A sales agent employed at‐will is terminated after reporting the
broker’s undisclosed dual agency practice. Under Texas law, this
termination is likely:
A. Permissible—Texas follows at‐will employment doctrine
B. Wrongful—retaliation for whistleblowing is prohibited
C. Valid if the agent signed an independent‐contractor agreement
D. Unreviewable—even state law protects whistleblowers
Correct ANS: B. Wrongful—retaliation for whistleblowing is
prohibited
Rationale: Texas law protects employees from termination as
retaliation for reporting unlawful acts (Texas Whistleblower Act), despite
general at‐will doctrine.
5. A broker asks a sales agent to withhold negative inspection reports to
expedite the sale. Which ethical duty is breached?
A. Duty of loyalty
B. Duty of confidentiality
C. Duty to disclose material facts
D. Duty of accountability
Correct ANS: C. Duty to disclose material facts
Rationale: License holders must disclose all material facts affecting
value or desirability; withholding inspection defects violates that duty.
3
