Which statement about Chapter 1101 and 1102 of the Texas Occupations Code is correct?

Which statement about Chapter 1101 and 1102 of the Texas Occupations Code is correct?

• A. They regulate mortgage lending.
• B. They are the main laws governing real estate license holders.
• C. They govern broker-employee relations exclusively.
• D. They set home appraisal standards.

Answer: (B)

Texas Occupations Code chapters 1101 and 1102 establish the Real Estate License Act, creating the framework that governs licensure, renewal, and discipline for real estate license holders. They specify who must be licensed (brokers and sales agents), the qualifications to obtain and maintain licenses, continuing education, and the enforcement powers of the Texas Real Estate Commission. Because of this broad scope, they are the primary laws governing the status and conduct of license holders. They do not regulate mortgage lending (that’s handled by separate finance statutes), they do not set home appraisal standards (those are covered by appraisal-specific statutes), and while they touch on professional relationships, they are not limited to broker-employee issues.

Texas Occupations Code chapters 1101 and 1102 establish the Real Estate License Act, creating the framework that governs licensure, renewal, and discipline for real estate license holders. They specify who must be licensed (brokers and sales agents), the qualifications to obtain and maintain licenses, continuing education, and the enforcement powers of the Texas Real Estate Commission. Because of this broad scope, they are the primary laws governing the status and conduct of license holders. They do not regulate mortgage lending (that’s handled by separate finance statutes), they do not set home appraisal standards (those are covered by appraisal-specific statutes), and while they touch on professional relationships, they are not limited to broker-employee issues.