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

If a residential service company pays a fee for advertising, what is required from the license holder?

1. No disclosure is required

2. Partial disclosure of the fee

3. Full disclosure using a TREC form

4. Only oral communication is necessary

The correct answer is: Full disclosure using a TREC form

When a residential service company pays a fee for advertising, full disclosure using a Texas Real Estate Commission (TREC) form is necessary for the license holder. This requirement stems from the need for transparency in real estate transactions and advertising practices. Disclosing the fee ensures that all parties involved understand any financial arrangements that may influence the real estate transaction. This practice upholds the principles of honesty and integrity within the industry, allowing clients to make informed decisions without hidden agendas or conflicts of interest. TREC forms are designed to standardize this disclosure process, ensuring that all essential information is conveyed clearly and legally. The requirement for full disclosure contrasts with situations where no disclosure might lead to a lack of transparency or trust, highlighting the importance of clear communication in maintaining professional standards and ethical responsibilities in real estate.