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

What is a licensed business entity real estate broker authorized to do?

1. Conduct only residential transactions

2. Act as a real estate broker

3. Oversee property management

4. Negotiate commercial leases

The correct answer is: Act as a real estate broker

A licensed business entity real estate broker is authorized to act as a real estate broker, which encompasses a broad range of activities within the field. This includes facilitating the buying, selling, renting, or leasing of properties on behalf of clients, regardless of the property type, whether it's residential, commercial, or industrial. Choosing to specify that the broker can perform these activities as part of a business entity underscores the importance of regulation and professionalism in real estate transactions. It also highlights that licensed real estate brokers are bound by law to adhere to ethical standards and regulations while engaging in real estate activities, ensuring that the interests of consumers are protected. While property management, negotiating commercial leases, and conducting only residential transactions may be parts of what a broker can do, these activities are not exclusive to the definition of acting as a broker. Thus, the correct understanding focuses on the broader capabilities that come with being a licensed broker, as indicated in the answer.