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

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Which document governs the enforceability of real estate agreements in Texas?

  1. Chapter 26 of the Business and Commerce Code

  2. The Texas Real Estate License Act

  3. The Texas Contract Law Guide

  4. The Texas Property Code

The correct answer is: Chapter 26 of the Business and Commerce Code

The document that governs the enforceability of real estate agreements in Texas is Chapter 26 of the Business and Commerce Code. This chapter outlines the Uniform Commercial Code (UCC) as it applies to contracts, including those related to the sale of goods, which can sometimes intersect with real estate transactions. While it is important to have knowledge of the Texas Real Estate License Act, which provides regulations for real estate licensees, and the Texas Property Code, which deals with property rights and landlord-tenant issues, Chapter 26 specifically addresses contract law principles that are critical to understanding the enforceability of real estate agreements. Additionally, the Texas Contract Law Guide serves as a helpful resource for deeper insights into contracts but does not hold the same legal authority as the Business and Commerce Code in terms of enforceability. Understanding the nuances of Chapter 26 helps real estate professionals ensure that contracts are compliant and legally binding in Texas.

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