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

What can an unlicensed owner of a real estate company collect from the company?

1. Commissions

2. Profit

3. Salaries

4. Rent

The correct answer is: Profit

An unlicensed owner of a real estate company can legally collect profits from the company's operations. This is because the ownership of a business allows individuals to receive the earnings generated by the company's activities, regardless of their licensing status. As the owner, they are entitled to share in the financial gains, which are part of the overall business success. In the context of real estate, commissions and salaries are considered forms of compensation directly related to services rendered in the capacity of a licensed real estate professional. Only licensed individuals are authorized to receive commissions for facilitating real estate transactions. Similarly, salaries are typically issued for specific job functions that require licenses, such as sales agents or brokers. Rent pertains to payments made by tenants for the use of property owned by others. An unlicensed individual who owns a real estate company might collect rent if they own the properties themselves, but this is not directly related to the operations of the real estate company in receiving profit. Therefore, profit is the correct answer as it encompasses the overall earnings from the business, not tied to the act of real estate transactions.