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

Which activity does require a real estate license?

1. Setting up open houses

2. Renovating properties

3. Negotiating listing agreements

4. Cleaning vacant units

The correct answer is: Negotiating listing agreements

Negotiating listing agreements is an activity that requires a real estate license because it involves representing clients in real estate transactions. A licensed individual has the necessary training and knowledge to navigate the legal, financial, and procedural complexities involved in listing properties for sale. Real estate agents must have a thorough understanding of industry regulations, market conditions, and client needs to effectively negotiate the terms of agreements on behalf of their clients. In contrast, setting up open houses, while generally conducted by licensed agents, can sometimes be completed by unlicensed individuals under the supervision of a licensee. Renovating properties involves working in construction or home improvement and typically does not require a real estate license. Cleaning vacant units is part of property maintenance and also does not necessitate a real estate license, as it is a service performed rather than a function that involves negotiation or representation in a real estate transaction.