Texas Crammer Practice Exam

Which action would be a violation of the Texas license law for a sales licensee?

1. Negotiating lease agreements

2. Preparing a general warranty deed for a client

3. Assisting clients with home inspections

4. Advertising properties online

The correct answer is: Preparing a general warranty deed for a client

Preparing a general warranty deed for a client would be a violation of the Texas license law for a sales licensee because it involves the practice of law, which is not permitted for real estate agents who do not have a legal license. Texas real estate agents are authorized to perform specific activities related to buying, selling, and leasing properties, but drafting legal documents such as deeds falls outside their scope of practice and requires the expertise of licensed attorneys. On the other hand, negotiating lease agreements, assisting clients with home inspections, and advertising properties online are all activities that fall within the responsibilities and authority of a sales licensee in Texas, provided they adhere to the ethical standards and regulations outlined by the Texas Real Estate Commission. Thus, these actions are permissible and do not violate the license law.