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Texas SAE Real Estate Brokerage Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
Who is ultimately responsible for ensuring a real estate transaction complies with Texas laws?✔✔The sponsoring broker
What must a broker provide to ensure agents understand company expectations?✔✔A written policies and procedures manual
What type of relationship does a broker have with a client who signed a listing agreement?✔✔A fiduciary relationship
When must the Information About Brokerage Services (IABS) form be provided to a prospective client?✔✔At the first substantive communication
What must a broker do if they terminate sponsorship of a sales agent?✔✔Immediately notify TREC 1 / 4
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What document should outline how commissions are split between broker and agent?✔✔The Independent Contractor Agreement
How should a broker respond if a sponsored agent is accused of misrepresentation?✔✔Investigate the issue and take corrective or disciplinary action
What form of supervision is required for agents working remotely?✔✔Ongoing communication and review of their activities and advertising
What is a broker required to do before allowing agents to advertise independently?✔✔Approve all advertising content and ensure it complies with TREC rules
What is required on every advertisement published by an agent or team?✔✔The name of the sponsoring broker
What must be included in team advertising under TREC rules?✔✔The team name must not be misleading and must include the broker’s name 2 / 4
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What must a broker do before acting as an intermediary in a transaction?✔✔Obtain written consent from both parties
What must happen when intermediary appointments are made?✔✔Each party must be assigned a different license holder to represent them
What is the purpose of a broker's transaction log?✔✔To monitor and track the status of all transactions for compliance and documentation
How long must a broker maintain records of transactions?✔✔At least four years
Who is responsible for providing agent training in a brokerage?✔✔The sponsoring broker
Can a broker share commissions with an unlicensed individual?✔✔No, it is prohibited by TREC 3 / 4
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What should a broker do if they notice an agent consistently violating advertising rules?✔✔Provide corrective training and possibly terminate sponsorship
What should a broker include in a compliance checklist for agents?✔✔Disclosure delivery, contract execution, and earnest money tracking
When must earnest money be deposited according to a sales contract?✔✔By the close of the second business day after execution
What must be disclosed in an intermediary transaction?✔✔That the broker is representing both parties and will not favor either
What should a broker do if an agent accepts a commission directly from a buyer?✔✔Report the violation and discipline the agent
How often should a broker review the work of their sponsored agents?✔✔On a regular and ongoing basis
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