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

Each active real estate broker is required to display which form in a noticeable location?

1. The Consumer Protection Form CN 1-2

2. The Licensing Compliance Form

3. The Real Estate Disclosure Form

4. The Settlement Cost Outline Form

The correct answer is: The Consumer Protection Form CN 1-2

The requirement for each active real estate broker to display the Consumer Protection Form CN 1-2 in a noticeable location stems from Texas real estate laws aimed at protecting consumers. This form serves to inform clients of their rights and the services available to them within the industry. By displaying this form prominently, brokers help ensure that consumers have easy access to important information that can guide their decisions and strengthen their understanding of real estate transactions. In comparison, while the other forms mentioned may serve their respective purposes in different contexts, they do not have the same explicit requirement for visibility as the Consumer Protection Form. The Licensing Compliance Form and the Real Estate Disclosure Form pertain to compliance and disclosure matters that are critical but are not mandated to be publicly displayed. The Settlement Cost Outline Form deals with costs associated with transactions but is not primarily aimed at consumer protection or awareness in the same manner as the Consumer Protection Form. This distinction is vital in understanding the regulatory framework surrounding real estate brokerage practices in Texas.