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

What must attorneys do to receive compensation for brokerage services?

1. Request fees from brokers

2. Seek compensation directly from the transaction principals

3. Charge a flat fee for their services

4. Receive commission through brokers

The correct answer is: Seek compensation directly from the transaction principals

To understand why seeking compensation directly from the transaction principals is correct, it's important to consider the role of attorneys in real estate transactions. Attorneys do not typically receive a commission like real estate agents do. Instead, they may charge for their services in various ways, including hourly rates or flat fees. If they have provided services related to a transaction, they can seek payment directly from the parties involved in that transaction, which allows them to negotiate terms and compensation based on the specific services rendered. On the other hand, the reasons why the other options are less applicable involve understanding the distinctions between the roles. Attorneys are not usually in a position to request fees from brokers directly, since their primary contractual obligations are with their clients involved in the transaction, not with the brokers. While charging a flat fee is a valid approach for attorneys, it does not encompass all possible arrangements for compensation; thus, it can’t be regarded as a comprehensive solution. Finally, receiving commission through brokers is generally not how attorneys are compensated for brokerage services, as this aligns more with real estate agents rather than legal professionals. This delineation in roles ensures clarity in the transaction process and maintains appropriate professional boundaries.