Download Texas Real Estate Brokerage Final Exam: 250+ Questions and Answers and more Exams Real Estate Management in PDF only on Docsity!
TEXAS REAL ESTATE BROKERAGE FINAL EXAM
2025 (VERSION 1)/ ACTUAL EXAM WITH 250+
QUESTIONS AND CORRECT VERIFIED
ANSWERS/ALREADY GRADED A+ LATEST- 2025
Joe’s total current assets are $278,000, his total assets are $455,000, and the equityamount on his balance sheet is $276,000. What is the total of his liabilities? $177, $179, $2, $394,000 - ANSWER - Total assets less equity equals liabilities. Assets - liabilities = owner's equity, or $455,000 - $276,000 = $179,000. Edgar and his management staff identified their work with real estate contracts as a potential risk to the firm. If Edgar hires an attorney to review every contract written in hisoffice, which risk- handling strategy does this represent? - ANSWER-transfer If you're going to take advantage of cloud computing to store sensitive client information, you will need what security measures to protect the data? - ANSWER- Strong passwords, limited access, and virus protection Cityville administrators are trying to control urban sprawl, but they still need to plan for the growing population. They've revamped zoning laws to allow residential units to be built on smaller lots, and multi-family housing to be built in areas once zoned for single-family housing. Which real estate trend does this describe? - ANSWER-Increaseddensity Which of the following factors most directly determines the complexity of anorganization's
operating structure? - ANSWER-number of job roles Nat has a friend who's in the home construction business, and he says that in the last six months, there's been an increased demand from developers to build homes that aremore energy efficient and use sustainable, non-toxic building materials. What current market trend is this an example of? - ANSWER-Greener buyers Which of the following is one of the IRS requirements for a real estate brokerage workerto be classified as a statutory non-employee? - ANSWER-The individual and the employing broker have a written contract.
A consistent disparity in listing versus selling prices may reflect. - or loss Charli is thinking about buying only liability insurance for the office building she owns. She knows she'll have to pay for any damage to the building. What factors should Charliconsider in making this decision? - ANSWER-Her willingness and ability to withstand the risk posed by carrying only liability insurance (risk tolerance) Up the Hill Realty has purchased a contact list. New licensees at the brokerage are asked to spend three hours a week cold-calling individuals on this list. Which of theseactions is NOT one they need to take before making these calls? - ANSWER- Create a fake phone number that individuals will see on their caller ID. ANSWER-Inaccurate competitive market analyses Which of these would be an advantage for the broker of hiring licensees as salaried employees, rather than as independent contractors on a commission-based compensation plan? - ANSWER-Sales agents will probably make fewer errors asa result of more broker control and supervision. Which option best describes what an environmental impact statement is? - ANSWER-It describes and analyzes a proposed action that may have a significant effecton the environment. When Andrew schedules a sales meeting at his brokerage, he prepares well in advanceby.
The Brendon Group is evaluating a new market and wants to know the market's cultural composition. That's likely because. - ANSWER-The licensees don't do
- ANSWER-Developing an agenda, talking points, visuals, and handouts What is a flat-fee pricing strategy? - ANSWER-Clients are charged a pre-set feefor a pre- determined service. any active selling. Which of the following actions could compromise your security when meeting with acustomer for the first time in the field? - ANSWER-Ignoring a lewd comment Alison is taking steps to become the owner of her own real estate brokerage, Honesty Homes. She and the two real estate professionals who will become her first employeesare drafting the firm's vision statement. Which of the following should be included? - ANSWER-A statement of what the company's future results, achievements, and successes will be Commonly, the Federal Trade Commission will receive leads about a potential antitrustviolation through which avenue? - ANSWER-Hearing consumer complaints A leader who displays the quality of being a visionary is able to do what? - ANSWER- Look ahead at trends to meet future market demands A coaching framework is useful at a brokerage because. - ANSWER-Itgives structure to the coaching process, which helps it be most effective
Goals should be challenging and based on what experienced competitors are doing. Goals should be specific, measurable, attainable, realistic, and timely. Goals should have strict start dates and flexible end dates. Goals should be SMART: specific, measurable, attainable, realistic, and timely. - ANSWER- Goals regarding future revenue should be based on solid assumptions.X Goals should be challenging and based on what experienced competitors are doing. XGoals should be specific, measurable, attainable, realistic, and timely. Goals should have strict start dates and flexible end dates. X ans: Goals should be SMART: specific, measurable, attainable, realistic, and timely. Question 60 The number of houses sold over a period of time is reflected in. Inventory rates New building permits Price levels Sales volume - ANSWER-Sales volume is the number of houses sold. The smallerthe market, the more indicative this is of market conditions. For instance, sales volume for a city is less indicative for a home in a given neighborhood than sales volume for that neighborhood. Question 37 Which phase of the business life cycle is characterized by a small scope of work, a tightbudget, and an efficient operating structure? Birth Growth Maturity Midlife
The birth stage is characterized by a small scope of work, tight budget, and efficiency. - ANSWER-The birth stage is characterized by a small scope of work, tight budget, and efficiency. Question 38 What is the best way for a brokerage to be culturally savvy? Advertise to a diverse segment of the community. Attend community events. Employ staff who are familiar with the customs, languages, and needs of people fromdifferent backgrounds and cultures in your community. Require all employees to take cultural diversity training. - ANSWER-Employ staffwho are familiar with the customs, languages, and needs of people from different backgrounds and cultures in your community. Question 39 Which of the following is true about the security of your clients' information? Client data can be compromised if the brokerage's computer system is compromised.
Security management Transaction management - ANSWER-Networking connects people in an office to each other and to the files and folders stored on various computers located at the firm Buyer Kristin has a buyer agency agreement with Carlotta, a licensee. Kristin's brother, Dalton, is going to showings with Kristin and working to help her decide which house is the best fit. Who is/are Carlotta's client(s)? Kristin Kristin and Dalton Kristin and the seller The seller - ANSWER-kristin Question 44 A would fulfill his or her assigned role within the brokerage by supervising licensees and staff. Clerk Manager
Personal assistant Sales associate - ANSWER-Managers are responsible for directing the work ofothers to ensure that business goals are met. Question 45 Which of the following programs at a brokerage will be most effective at incentivizingmost associates to perform better? A disciplinary meeting when performance doesn't meet brokerage goalsAn annual performance review and rating Public recognition, such as at a sales meeting, of an associate's accomplishment Public reprimand, such as at a sales meeting, for inadequate performance Public recognition for accomplishments is a strong motivator for most people, while discipline and reprimands are much less effective. - ANSWER-Public recognition,such as at a sales meeting, of an associate's accomplishment Question 46 Which of the following is essential software for most brokerages? Desktop publishing Financial management software Image editing Servers - ANSWER-Financial management software Question 47 When comparing a leader to a manager, which of the following actions or traitsdemonstrates leadership? Being people-focused
No, because Ginny can't write two counteroffers. No, because Tom's agent has Ginny's first counteroffer.Yes, because she didn't write the original offer. Yes, because Tom hasn't accepted the first counteroffer. - ANSWER-Yes,because Tom hasn't accepted the first counteroffer. Question 50 Tyrone started a job in the sales department of a large firm. In an organizational chart,his department is shown alongside many others. Departments are run as teams with individuals at all levels responsible for making business decisions. What type of organizational structure is this? Centralized Decentralized Monolithic Vertical - ANSWER-decentralized Question 51 As a broker-owner, you should be most concerned with laws. Antitrust Local Local, state, and federal RESPA - ANSWER-local, state and federal Question 52 What is a benefit of affiliating with a national corporation? Increased decision-making authority
Maximum control and flexibility Name recognition Shared office space - ANSWER-name recognition Question 53 Which of the following is a preventive measure that takes very little time and can savehours of work if a computer system crashes? Backing up data Reinstalling software Rekeying data Retrieving data - ANSWER-backup data Brainstorming and focus groups are a big part of this style of management.Coercive Dictatorial Laissez-faire Participatory - ANSWER-participatory What's the purpose of a firewall? It backs up your files to an external hard drive.
Question 58 Which of the following statements is true regarding real estate licensing requirements?A person assisting a friend in selling a home must have a real estate license, even when no compensation is given. A person must have a real estate license in order to research a property that's for sale.A person selling a home as 'for sale by owner' must have a real estate license. A person who receives a $50 gift certificate for performing real estate activities on a friend's behalf must have a real estate license. - ANSWER-A person who receivesa $50 gift certificate for performing real estate activities on a friend's behalf must have a real estate license. Question 59 Charli has chosen to purchase only liability insurance on the office building she owns.Which of the following combinations of risk handling is she using? Acceptance and avoidance Avoidance and mitigation Mitigation and transfer Transfer and acceptance - ANSWER-Transfer and acceptance
Which of the following is a lagging economic indicator? Consumer confidence index Consumer inflationary index Consumer price index Gross domestic product - ANSWER-GDP Adding a mortgage lending service to a real estate brokerage operation is an exampleof what type of growth? Geographic expansion Horizontal expansion Organic growth Vertical expansion - ANSWER-Vertical expansion Adding a mortgage lending service is an example of expanding into vertical markets thattypically are performed before, after, or in conjunction with a real estate transaction. Which type of partner shares full personal liability for the partnership's debts andobligations? Close Franchisee General Limited - ANSWER-General partners share full personal liability for thepartnership's debts and obligations to the extent of their ownership. After years of dreaming of starting a real estate brokerage, Alison Jones is taking steps to make her dream a reality. Her mentor, James Jewels, a successful brokerage owner,has explained that having a business plan is both smart and necessary. He says that some companies fail because they don't plan sufficiently (or at all) for various reasons. Which of the following is one
Federal Trade Commission and Department of State United Nations and Federal Communications Commission - ANSWER-FederalTrade Commission and Department of Justice Rogelio is preparing a sales contract form for his buyers. He's leaving those areas that don't pertain to this transaction blank. Is this? No, because Rogelio didn't ask his clients for permission to leave those areas blank. No, it's best not to leave any area of a contract blank. Yes, anything written in those areas would confuse the issue.Yes, if they don't apply. Rogelio should put the words "not applicable" or the abbreviation "N/A" in any area of the contract that's not relevant to a particular transaction. - ANSWER-No, it's best not to leave any area of a contract blank. Rogelio should put the words "not applicable" or the abbreviation "N/A" in any area of the contract that's not relevant to a particular transaction. Which of the following statements about buyer representation is true? An exclusive agency relationship offers the buyer the highest level of representation, butrestricts the buyer's right to self-represent. An exclusive right-to-represent relationship offers a buyer the lowest level ofrepresentation, and affords the buyer the greatest amount of autonomy. An open agency relationship gives the buyer flexibility, but limits the amount ofrepresentation received from any one professional. Open agency, exclusive agency, and exclusive right to represent all support a buyer'sright to self-represent. - ANSWER-An open agency relationship gives the buyerflexibility, but limits the amount of representation received from any one professional. Open agency offers buyers
with the most flexibility to work with multiple agents but limits the level of representation. Alison has written the mission and vision statements for her brokerage, Honesty Homes. Armed with those and the situational analysis data, she's ready to begin forming business objectives. Starting out, her brokerage will be small, with only threelicensees and a part-time administrative assistant. How many objectives would be reasonable to start off with? Five Four Three two - ANSWER-Two: While the number of objectives varies based on the brokerage's size, its number of employees, and how complex it is, a small organizationusually has only two general objectives. Which of the following training topics would be appropriate for a brokerage to offer toboth new licensees and experienced salespeople? How to develop a sphere How to write a contract The basic process for a transaction
