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

What form is required by the State of Texas for all sellers of residential property?

1. Real estate contract

2. Seller's disclosure form

3. Property tax statement

4. Loan estimate document

The correct answer is: Seller's disclosure form

The seller's disclosure form is required by the State of Texas for all sellers of residential property because it serves to inform potential buyers about the condition and history of the property. This form requires sellers to disclose known issues or defects, including structural problems, plumbing and electrical issues, and any past flooding or other environmental concerns. The intent behind this requirement is to promote transparency in real estate transactions, ensuring that buyers are well-informed about the property they are considering before completing a sale. In Texas, the obligation to provide this disclosure is part of the legal framework that aims to protect buyers from hidden defects and encourage fair trading practices. This way, if issues arise after the sale, the seller can be held accountable if they failed to disclose material facts. The other forms mentioned, such as a real estate contract, property tax statement, and loan estimate document, may play important roles in real estate transactions but are not specifically mandated for all residential property sellers in the same way as the seller's disclosure form. The real estate contract formalizes the agreement between buyer and seller, while the property tax statement provides information on tax obligations, and loan estimate documents are relevant in the context of financing. However, they do not fulfill the specific requirement for sellers to disclose property condition information to