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

Can a licensee provide agency disclosure verbally according to Texas regulations?

1. Yes, always

2. No, never

3. Only under certain conditions

4. Yes, but only for commercial agreements

The correct answer is: No, never

According to Texas regulations, agency disclosure must be provided in writing, which is why the correct response is that a licensee cannot provide agency disclosure verbally under any circumstances. This written requirement ensures that all parties fully understand the nature of the relationship and the responsibilities involved. Written agency disclosure helps maintain clarity and serves as a formal record, protecting both the client and the agent. In Texas, the importance of having this disclosure in writing can be attributed to the necessity of having clear documentation in real estate transactions, which may involve substantial financial implications and legal responsibilities. The law emphasizes the protection of consumers by ensuring they are adequately informed about their representation and the duties of their agent. Given these principles, it is clear why options suggesting that verbal disclosures are acceptable—whether always, under certain conditions, or only for commercial agreements—do not align with Texas regulations.