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

What must a license holder provide during the first substantive dialogue with a party in a real estate transaction?

1. Verbal agreement

2. Written statement

3. Disclosure form

4. Price list

The correct answer is: Written statement

A license holder must provide a written statement during the first substantive dialogue with a party in a real estate transaction to ensure transparency and compliance with legal requirements. This written statement typically serves as a declaration of the license holder's role in the transaction and provides critical information regarding agency relationships. In Texas, this requirement relates to the importance of informed consent; parties should be aware of who they are dealing with and the nature of that relationship. This effort to establish clarity helps manage expectations and fosters trust between the parties involved. Providing a written statement also distinguishes it from a verbal agreement, which may not be as clear or enforceable, and it emphasizes the formalities associated with real estate transactions. While disclosure forms and price lists might be relevant in various contexts, they do not specifically fulfill the requirement tied to the initial substantive conversation in the same manner as a written statement does.