Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

A salesperson may NOT pay a commission to another person without the consent of which party?

1. The client

2. The real estate association

3. The sponsoring broker

4. The state licensing board

The correct answer is: The sponsoring broker

The correct response highlights the essential role of the sponsoring broker in Texas real estate transactions. The sponsoring broker is responsible for the actions of their sales agents and has a vested interest in any commissions that are disbursed. According to Texas real estate regulations, a salesperson must operate under the auspices of their sponsoring broker, who manages the legal and financial aspects of the real estate business. In this context, if a salesperson wishes to pay a commission to another individual, it is necessary to obtain the consent of the sponsoring broker. This requirement ensures that all financial dealings align with company policies and that the sponsoring broker can maintain accountability and oversight of the transactions. The other parties mentioned in the choices, such as the client, the real estate association, and the state licensing board, do not have the same level of authority over the internal commission agreements between the salesperson and their sponsoring broker. The client generally does not directly dictate how commissions are distributed, the real estate association primarily governs ethical and professional standards, and the state licensing board regulates licensure and compliance rather than intervening in commission-related matters. Thus, the involvement of the sponsoring broker is crucial in maintaining the integrity and compliance of commission payments in a real estate transaction.