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

What constitutes violations of license law according to the DTPA?

1. Minor discrepancies in advertising

2. Violations of license law

3. Only advertising misrepresentation

4. Strictly personal transactions

The correct answer is: Violations of license law

The reason why violations of license law are categorized under the DTPA (Deceptive Trade Practices Act) is that the DTPA sets a framework for what constitutes deceptive acts in trade and commerce, which includes real estate practices. This means that any violation of Texas real estate licensing laws would also fall under the DTPA, as these laws are in place to protect consumers from misleading and unfair practices in the real estate market. When it comes to license law violations, this encompasses a broad range of activities—including those that may not directly relate to advertising, misrepresentation, or personal transactions. For instance, a broker's failure to maintain proper records or engage in ethical transactions is also a violation that can be addressed under the DTPA. Therefore, understanding that violations of license law can span multiple areas ensures that real estate professionals adhere to comprehensive ethical and legal standards within their practice, safeguarding the interests of consumers. Overall, recognizing violations of license law as part of the DTPA helps in holding agents accountable and ensuring that real estate transactions are conducted fairly and transparently.