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

What may happen to a license holder who fails to use an adopted form?

1. They will receive a warning

2. They may be disciplined by TREC

3. Nothing will happen

4. They will be fined

The correct answer is: They may be disciplined by TREC

A license holder who fails to use an adopted form may be disciplined by the Texas Real Estate Commission (TREC) because using approved forms is essential for maintaining the legal and ethical standards in real estate transactions. TREC establishes specific forms to ensure that real estate transactions are conducted fairly, clearly, and consistently. When a license holder opts not to use these forms, it can create confusion, lead to misunderstandings among parties, and potentially result in legal issues. Disciplinary actions from TREC can include reprimands, fines, or even suspension or revocation of the license, depending on the severity of the violation. This emphasizes the importance of adherence to TREC regulations, as failure to use adopted forms not only affects transaction clarity but also undermines the regulatory framework that governs real estate practices in Texas. Thus, option B accurately reflects the potential consequences for not complying with the use of adopted forms.