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

For what purpose must a licensed agent inform others about their license when acting for a relative?

1. To gain credibility

2. To maintain transparency

3. To avoid legal repercussions

4. To secure future transactions

The correct answer is: To maintain transparency

When a licensed agent is acting for a relative, it is crucial to maintain transparency in all professional dealings. This transparency helps ensure that all parties involved are aware of the agent's relationship with the client, which can mitigate any potential conflicts of interest. By informing others about their license, the agent demonstrates honesty and integrity, fostering trust in the transaction process. In the context of real estate, transparency also complies with ethical standards and regulatory requirements. If an agent does not disclose their license status, it could lead to misunderstandings or perceptions of favoritism, which may undermine the professionalism expected in real estate transactions. Thus, maintaining transparency is fundamental to upholding the standards of conduct within the industry.