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

Which forms must be utilized by all real estate licensees in Texas?

1. Custom forms prepared by agents

2. Promulgated contract forms

3. Forms from other states

4. No required forms

The correct answer is: Promulgated contract forms

In Texas, all real estate licensees are required to utilize promulgated contract forms. These forms are pre-approved by the Texas Real Estate Commission (TREC) and are designed to ensure that transactions are compliant with state laws and regulations. Using these standardized forms helps protect the interests of all parties involved in a real estate transaction, as they are specifically tailored to address the common needs and issues that arise in real estate dealings. Promulgated forms include various agreements such as the residential lease, sales contracts, and other essential documents that facilitate real estate transactions. By using these forms, licensees can ensure that they are following the legal requirements and providing adequate protections for their clients. Custom forms prepared by agents may not provide the same level of protection or compliance with Texas law, and forms from other states may not be applicable or valid in Texas. The option stating that no required forms are necessary is also inaccurate, as TREC mandates the use of specific promulgated forms for various transaction types. Thus, the requirement for licensees to use promulgated contract forms is crucial for maintaining professionalism and legal compliance in real estate transactions in Texas.