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

What documentation is necessary for a broker who owns 70% of a firm to renew a Business Entity Broker License?

1. Proof of Employment

2. Proof of Ownership

3. Proof of Partnership

4. Proof of Financial Stability

The correct answer is: Proof of Ownership

To renew a Business Entity Broker License in Texas, it is essential for a broker who owns a substantial share—such as 70% of a firm—to provide proof of ownership. This requirement demonstrates that the broker has a controlling interest in the company, which is crucial for maintaining the integrity of the ownership structure as outlined by the Texas Real Estate Commission. Having documentation that verifies ownership affirms that the broker holds the necessary authority to act on behalf of the business entity and complies with the regulatory framework set for brokers in Texas. This proof could include documents such as a partnership agreement, articles of incorporation, or official ownership records that clearly show the broker's significant stake in the firm. Other concepts like proof of employment, proof of partnership, or proof of financial stability may be necessary in different contexts but are not specific requirements for the renewal of a Business Entity Broker License concerning ownership interests. Each of these other types of documentation may serve different purposes in business operations or regulatory compliance but does not fulfill the requirement tied specifically to ownership in this scenario.