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

Can a sales agent be the owner of a property management company?

1. No, they must work under a broker

2. Yes, but they need a special license

3. Yes, but only under certain conditions

4. No, they are not allowed to own any firm

The correct answer is: Yes, but only under certain conditions

Sales agents in Texas may indeed own a property management company, but there are specific conditions that must be met in order for them to do so legally. This typically involves ensuring that the company operates under the supervision of a licensed broker. While sales agents possess their own licenses, they cannot operate independently in managing properties; they must adhere to the rules set by the Texas Real Estate Commission. For a sales agent to own a property management company, they may need to collaborate with a broker or ensure that the proper structure is in place, allowing the broker to oversee transactions and ensure compliance with legal and ethical standards. This arrangement ensures that consumers are protected and that the company adheres to industry regulations. The other options do not accurately reflect the regulations governing real estate practices in Texas. Simply asserting that a sales agent cannot own a company (as stated in one option) does not account for the involvement of brokers. Additionally, requiring a special license (as another option suggests) is misleading, as owning a property management company does not necessitate a unique license beyond what is already required for a sales agent, as long as they are working under broker oversight. Therefore, the correct understanding embraces the potential for ownership while emphasizing the necessary conditions of broker involvement.