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

What will happen if a broker fails to provide proof of CE completion by the renewal application submission?

1. They automatically lose their license

2. They must submit a late fee only

3. They may renew in inactive status or pay a deferral fee

4. They can extend their renewal for another year without penalty

The correct answer is: They may renew in inactive status or pay a deferral fee

If a broker does not provide proof of continuing education (CE) completion by the time they submit their renewal application, they have the option to renew their license in inactive status. This allows them to maintain their license without being active in the business. Alternatively, a deferral fee may be required, offering the chance to complete the necessary CE requirements within a specified timeframe. This provision helps ensure that brokers can still hold their licenses, albeit in a limited capacity, while they fulfill educational requirements. The other options are not viable because they do not align with Texas real estate regulations. Automatic loss of the license would be an unduly harsh consequence, and simply having to pay a late fee or extending the renewal for another year without penalty does not reflect the legal framework surrounding continuing education and license renewal in Texas.