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

When is a real estate license required in relation to property management?

1. Only for lease renewals

2. For showing or leasing the property for compensation

3. For collecting rents

4. When advertising the property

The correct answer is: For showing or leasing the property for compensation

A real estate license is required for showing or leasing the property for compensation because these activities are considered aspects of brokering real estate. In Texas, any person who engages in leasing activities, such as showing properties, negotiating leases, or executing lease agreements on behalf of another for compensation must hold a valid real estate license. This regulation is in place to ensure that individuals working in these capacities possess the necessary knowledge and ethical standards to protect consumers. While collecting rents and advertising properties also fall under property management tasks, they do not intrinsically require a real estate license unless compensation is involved. For instance, a property owner managing their own property can collect rent without needing a license. Similarly, someone can advertise a property without having a real estate license if they are not doing so for compensation. However, the core function of showing or leasing property ties directly to the practice of real estate, necessitating the appropriate licensing to ensure compliance with legal and professional standards.