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

Which bodies are the principal governing authorities affecting the real estate industry in Texas?

1. Texas State Legislature, Texas Real Estate Commission

2. Texas Property Code, Federal Government, TREC

3. Texas State Legislature, Texas Property Code, TREC

4. Texas Real Estate Commission, Department of Housing

The correct answer is: Texas State Legislature, Texas Property Code, TREC

The principal governing authorities affecting the real estate industry in Texas are the Texas State Legislature, the Texas Property Code, and the Texas Real Estate Commission (TREC). The Texas State Legislature is responsible for creating and enacting laws that govern various aspects of real estate, including licensing requirements and regulations related to property transactions. The Texas Property Code serves as the statutory framework that outlines the legal structure managing property ownership, rights, leases, and relationships between landlords and tenants within the state. TREC is the regulatory body specifically tasked with overseeing real estate licensing and ensuring compliance with Texas real estate laws, thus directly impacting how the real estate industry operates. By understanding the interaction between these three entities, real estate professionals can better navigate legal requirements and maintain compliance in their practices.