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

Which of the following entities is NOT required to be licensed for real estate brokerage?

1. General partnerships

2. Corporations

3. Sole proprietorships

4. Government agencies

The correct answer is: Government agencies

Government agencies are not required to be licensed for real estate brokerage because they operate under different regulations and authorities compared to private entities. These agencies may handle property transactions as part of their governmental duties and functions, which can include managing public properties, conducting assessments, or facilitating property transfers that are part of government operations. In contrast, general partnerships, corporations, and sole proprietorships are all private business entities that engage in real estate brokerage activities and must comply with the licensing requirements set forth by state regulations. Each of these entities, when engaging in the business of real estate transactions, must obtain the necessary licenses to operate legally in the real estate sector. This licensing ensures that individuals and entities are qualified to conduct such business in accordance with local laws and ethical standards.