TX-Brokerage (SAE) questions and answers
2025-2026
The _____ is required to ascertain that Brokers are aware of all of their responsibilities.
- CORRECT ANSWER-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. - CORRECT ANSWER-Broker Responsibility MCE
Who Must Take the Broker Responsibility MCE Course? - CORRECT ANSWER-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 courses to renew a license.
"Act of God" - CORRECT ANSWER-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 - CORRECT ANSWER-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 - CORRECT
ANSWER-School
There is no provision in the Act or the TREC Rules prohibiting a broker from _____ a
salesperson or broker—associate affiliated with another broker. - CORRECT ANSWER-
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. - CORRECT ANSWER-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 - CORRECT ANSWER-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? - CORRECT ANSWER-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? - CORRECT ANSWER-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. - CORRECT
ANSWER-10
Does a link to the IABS Form in my email signature satisfy the representation disclosure
required by TRELA §1101.558? - CORRECT ANSWER-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: - CORRECT ANSWER-(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.
Reasons people give for wanting to open their own Brokerage: - CORRECT ANSWER-
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 - CORRECT
ANSWER-The National Association of REALTORS® and the Real Estate Center at
Texas A&M University.
The _______ indicates the strength of the economy. - CORRECT ANSWER-Gross
domestic product or GDP
Most good economies have a GDP of about _____ - CORRECT ANSWER-3%
A new broker will need a good real estate attorney and a good _____ on their team. -
CORRECT ANSWER-Certified public accountant (CPA)
,The Rules of the Texas Real Estate Commission require that a Broker have a_______
before you start hiring agents - CORRECT ANSWER-Policy and Procedures Manual
Policy and Procedures Manual must include - CORRECT ANSWER-Agent's Authorized
Activity, Advertising, Compensation, Records Management, Trust Accounts
The new broker will want to consider three possibilities. - CORRECT ANSWER-
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. - CORRECT ANSWER-Partnerships
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. - CORRECT ANSWER-Errors and omissions insurance
Two requirements that must be met for all advertisements - CORRECT ANSWER-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: - CORRECT ANSWER-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 - CORRECT ANSWER-80%
To become a Broker, you need to complete your qualifying education- ______
classroom hours of qualifying real estate courses - CORRECT ANSWER-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) -
CORRECT ANSWER-Brokerage mandatory courses
The Real Estate Brokerage course must be completed not more than ____ years before
the application date. - CORRECT ANSWER-2
The Broker will become both the Leader and the _____ - CORRECT ANSWER-
Manager
Broker/Owners become responsible for the______ of the entire company - CORRECT
ANSWER-Management, operation and supervision
A broker must maintain all records for _____ years. - CORRECT ANSWER-4
Purchasing or starting a new brokerage business is exciting and _____ - CORRECT
ANSWER-Risky
Builders do NOT have to be _____, in Texas - CORRECT ANSWER-Licensed
CRS— - CORRECT ANSWER-Certified Real Estate Specialist
ABR— - CORRECT ANSWER-Accredited Buyer's Representation
ALC— - CORRECT ANSWER-Accredited Land Consultant
SRS— - CORRECT ANSWER-Seller's Representation Specialist
CRB— - CORRECT ANSWER-Certified Real Estate Broker
CPM— - CORRECT ANSWER-Certified Property Manager
GRI— - CORRECT ANSWER-Graduate of the REALTOR® Institute
CRE— - CORRECT ANSWER-Certified Real Estate Counselor
SRES— - CORRECT ANSWER-Senior Real Estate Specialist
REALTOR® members agree to submit commission disputes
between Brokers to arbitration through their _____ - CORRECT ANSWER-Association
of REALTORS®.
2025-2026
The _____ is required to ascertain that Brokers are aware of all of their responsibilities.
- CORRECT ANSWER-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. - CORRECT ANSWER-Broker Responsibility MCE
Who Must Take the Broker Responsibility MCE Course? - CORRECT ANSWER-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 courses to renew a license.
"Act of God" - CORRECT ANSWER-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 - CORRECT ANSWER-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 - CORRECT
ANSWER-School
There is no provision in the Act or the TREC Rules prohibiting a broker from _____ a
salesperson or broker—associate affiliated with another broker. - CORRECT ANSWER-
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. - CORRECT ANSWER-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 - CORRECT ANSWER-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? - CORRECT ANSWER-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? - CORRECT ANSWER-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. - CORRECT
ANSWER-10
Does a link to the IABS Form in my email signature satisfy the representation disclosure
required by TRELA §1101.558? - CORRECT ANSWER-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: - CORRECT ANSWER-(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.
Reasons people give for wanting to open their own Brokerage: - CORRECT ANSWER-
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 - CORRECT
ANSWER-The National Association of REALTORS® and the Real Estate Center at
Texas A&M University.
The _______ indicates the strength of the economy. - CORRECT ANSWER-Gross
domestic product or GDP
Most good economies have a GDP of about _____ - CORRECT ANSWER-3%
A new broker will need a good real estate attorney and a good _____ on their team. -
CORRECT ANSWER-Certified public accountant (CPA)
,The Rules of the Texas Real Estate Commission require that a Broker have a_______
before you start hiring agents - CORRECT ANSWER-Policy and Procedures Manual
Policy and Procedures Manual must include - CORRECT ANSWER-Agent's Authorized
Activity, Advertising, Compensation, Records Management, Trust Accounts
The new broker will want to consider three possibilities. - CORRECT ANSWER-
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. - CORRECT ANSWER-Partnerships
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. - CORRECT ANSWER-Errors and omissions insurance
Two requirements that must be met for all advertisements - CORRECT ANSWER-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: - CORRECT ANSWER-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 - CORRECT ANSWER-80%
To become a Broker, you need to complete your qualifying education- ______
classroom hours of qualifying real estate courses - CORRECT ANSWER-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) -
CORRECT ANSWER-Brokerage mandatory courses
The Real Estate Brokerage course must be completed not more than ____ years before
the application date. - CORRECT ANSWER-2
The Broker will become both the Leader and the _____ - CORRECT ANSWER-
Manager
Broker/Owners become responsible for the______ of the entire company - CORRECT
ANSWER-Management, operation and supervision
A broker must maintain all records for _____ years. - CORRECT ANSWER-4
Purchasing or starting a new brokerage business is exciting and _____ - CORRECT
ANSWER-Risky
Builders do NOT have to be _____, in Texas - CORRECT ANSWER-Licensed
CRS— - CORRECT ANSWER-Certified Real Estate Specialist
ABR— - CORRECT ANSWER-Accredited Buyer's Representation
ALC— - CORRECT ANSWER-Accredited Land Consultant
SRS— - CORRECT ANSWER-Seller's Representation Specialist
CRB— - CORRECT ANSWER-Certified Real Estate Broker
CPM— - CORRECT ANSWER-Certified Property Manager
GRI— - CORRECT ANSWER-Graduate of the REALTOR® Institute
CRE— - CORRECT ANSWER-Certified Real Estate Counselor
SRES— - CORRECT ANSWER-Senior Real Estate Specialist
REALTOR® members agree to submit commission disputes
between Brokers to arbitration through their _____ - CORRECT ANSWER-Association
of REALTORS®.
