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

If a sales agent is acting on behalf of a relative in a real estate transaction, what must they disclose?

1. Their financial interests

2. That they are a licensed broker or sales agent

3. The number of transactions completed

4. The property value involved

The correct answer is: That they are a licensed broker or sales agent

In a real estate transaction where a sales agent is acting on behalf of a relative, it is essential for the agent to disclose their status as a licensed broker or sales agent. This requirement is rooted in the principles of transparency and ethical conduct within the real estate industry. By making this disclosure, the agent ensures that all parties involved in the transaction are aware of the agent’s qualifications and the potential for conflicts of interest due to their familial relationship with the buyer or seller. This transparency helps to maintain trust in the transaction process and ensures that all parties can make informed decisions. It is vital for clients to know they are working with a professional who is licensed and regulated under Texas law. This requires the agent to adhere to specific standards and practices in flooring and safeguarding clients' interests. The other options listed do not address the specific ethical requirement regarding the agent's professional status in this situation. Financial interests may not always be relevant unless they directly impact the transaction, the number of transactions completed does not pertain to the immediate relationship or the ethical requirements involved, and the property value is standard information that is usually disclosed but does not relate specifically to the agent's obligations as a representative in this scenario.