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TEXAS REAL ESTATE BROKERAGE SAE
FINAL EXAM AND PRACTICE EXAM/ACTUAL
EXAMS WITH 450+ QUESTIONS AND CORRECT
VERIFIED ANSWERS GUARANTEED A+/NEWEST-
- The 3% category of entrepreneurs earns 10x as much as the other 97% of the entrepreneurs. - ANSWER : • The 3% category of entrepreneurs earn 10x as much as the other 97% of the entrepreneurs. 6 months to 2 years' worth - ANSWER : How much cash reserves do industry experts recommend new brokerages have available for operating expenses? A sales agent shall not maintain a trust account. Any trust money received by a salesagent must be immediately delivered to the sales agent's sponsoring broker. - ANSWER: A sales agent shall not maintain a trust account. Any trust money received by a sales agent must be immediately delivered to the sales agent's sponsoring broker. A state law that applies to unfair competition - ANSWER: A state law that applies to unfair competition is the Texas Free Enterprise and Antitrust Act, which is enforced by the Texas Attorney General. ABR Accredited Buyer's Representative - ANSWER: Accredited Buyer's Representative (ABR) Designation Show your buyers that you are an expert in the fieldwith the designation that is solely dedicated to the buyer's representative. According to the Harvard Business School, 3% of entrepreneurs have handwrittengoals, 13%
have goals, but do not write them down. 84% have not ventured into the realm of goals. - ANSWER: According to the Harvard Business School, 3% of entrepreneurs have handwritten goals, 13% have goals, but do not write them down. 84% have not ventured into the realm of goals. According to the U.S. Census Bureau , the largest age demographic in the country is those over years of age. This demographic, by and large, will continue to have significant influence in all industries and markets. That said, those in the Millennial Generation are poised to take over as the leaders ofindustry.
- ANSWER: 65 action plan - ANSWER : The written action plan will outline the steps,approaches and resources that will be used to fulfill the objectives. AGENCY AND REPRESENTATION - ANSWER: AGENCY AND REPRESENTATION In real estate, an agency relationship is created with a seller or landlord when the selleror landlord authorizes the broker to seek a buyer or tenant AGENCY AND REPRESENTATION - ANSWER : The most desirable method of creating an agency relationship with a buyer, seller, landlord or tenantis to do so in writing. While oral agency agreements are valid in Texas, they are generally not enforceable.
accommodations,services and privileges. Analytics - ANSWER : Collect and track digital data from websites, apps and offline repositories Artificial Intelligence - ANSWER : intelligence exhibited by machines ARTIFICIAL INTELLIGENCE - ANSWER: The concept of artificial intelligence (A.I.), at its most basic, is a way of describing intelligence exhibited bymachines. Assignability: - ANSWER : Assignability: Neither party may assign this Listing without the written consent of the other party. assumed name - ANSWER : If the business is conducted under an assumed name, the business owners must file an assumed name certificate and obtainan employer identification number from the IRS. Augmented Reality - ANSWER : Enhances the user's current perception and experience of reality AUGMENTED REALITY - ANSWER : Like virtual reality, augmented reality(AR) provides a modified view of reality for the user. BENEFITS OF BUYER-AGENCY RELATIONSHIPS - ANSWER: The benefits of buyer representation include:
- Access to market data. • Investment analysis. •Assistance in "culling" unsuitable properties
- Assistance in obtaining financing. • Assistance with negotiations. • Assistance in preparing offers and negotiating strategies • Assistance with surveys,inspections, repairs. Binding Effect: - ANSWER: Binding Effect: Seller's obligation to pay Brokerearned compensation is binding upon Seller and Seller's heirs, administrators, executors, successors, and permitted assignees. Blockbusting - ANSWER: Blockbusting is any attempt to induce panicselling in a neighborhood for financial gain board of directors - ANSWER: Board of Directors to oversee the affairs ofthe corporation Broker Associate - ANSWER: Broker Associate - a broker associated with and conducting all or part of his or her business as an agent of another broker. Broker of Record - ANSWER: Broker of Record - may be the owner of thebrokerage, or another broker who is hired for the position. brokers must maintain written policies and procedures that meet TRECminimum requirements - ANSWER: TREC Rules 535.2(i)
more formally known as the "Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003." The law took effect on January 1, 2004. CBA - ANSWER: certified business appraiser CHMS Certified Home Marketing Specialist Designation - ANSWER: Certified Home Marketing Specialist (CHMS)Designation Help your clients prepare their homes for sale with this designation dedicated to marketing dialogue and staging technique. Commissions - ANSWER: All commissions are negotiable between thebroker and his or her client, and are not set by any Board of REALTORS® or between competitors, or by TREC. COMPETENCY - ANSWER: COMPETENCY It is the obligation of a realestate agent to be knowledgeable
Conduct for real estate license holders - ANSWER: The Texas Real Estate Commission has included the Canons of Professional Ethics and Conduct for real estate license holders in the Rules of the Commission. CONSUMER INFORMATION - ANSWER: CONSUMER INFORMATION Each real estate inspector or active real estate broker licensed by the Texas Real Estate Commission shall display Consumer Protection Notice CN 1-2 in a prominentlocation in each place of business the broker maintains. CONSUMER INFORMATION - ANSWER: Consumer Protection Notice, labeled "Texas Real Estate Commission Consumer Protection Notice on your businesswebsite homepage, in a readily noticeable place in at least 10 - point font. corporate officers - ANSWER: Officers who are responsible for the overallmanagement of business operations corporation - ANSWER: The corporation is responsible for its debts and torts, not the shareholders. The individual assets of the shareholders may not be usedto satisfy the judgment of a creditor CoStar - ANSWER: Commercial real estate website similar to a residentialMLS DAMAGES - ANSWER: DAMAGES When a real estate license holder is sued, it tends to be due to an action under theDTPA. A lawsuit
- Services — means work, labor, or repair of goods. Brokerage is a service.
- Consumer — an individual, corporation, partnership, or government source who seeks to acquire or purchase the goods or services. DEFENSES - ANSWER: DEFENSES The State of Texas requires that most sellers of residential property provide a Seller's Disclosure of Condition of Property to a potential buyer. DISCLOSURE OF RELATIONSHIP WITH RESIDENTIAL SERVICE COMPANY - ANSWER: DISCLOSURE OF RELATIONSHIP WITH RESIDENTIAL SERVICE COMPANY Many brokerages have relationships with Residential Service Companies. TREC Form RSC- 2 should be used in any instance where your brokerage has a relationship with such acompany, to meet disclosure requirements and avoid creating liability. Residential Service Companies are commonly referred to as home warranty companies. Buyers DISCLOSURE OF REPRESENTATION - ANSWER: DISCLOSURE OF REPRESENTATION At the first contact with a party to a potential transaction, a license holder must discloseto that party whom he or she represents. Disruption of business, in the conventional sense, has been perceived to be a negative occurrence, often resulting in lost sales and profits. - ANSWER: "disruption". DO-NOT-CALL IMPLEMENTATION ACT OF 2003 - ANSWER: DO-NOT-CALL
IMPLEMENTATION ACT OF 2003
The United States Congress passed the Do Not Call Implementation Act (Public LawNo. 108 - 10) in 2003 to protect consumers from unwanted phone calls from telemarketers. Do-Not-Call Improvement Act of 2007 - ANSWER: Telephone numbersplaced on the National Do Not Call Registry will remain on it permanently due to the Do-Not-Call Improvement Act of 2007, which became law in February 2008. Do-Not-Call Registry - ANSWER: Do-Not-Call Registry The registry is nationwide in scope, applies to all telemarketers (with the exception of certain nonprofit organizations), and covers both interstate and intrastate telemarketingcalls. Does the fact that the Facebook group is classified as "open" protect the brokers from violations of anti-trust laws? - ANSWER: No, if they take additional steps to exclude others
payment of a commission. EXCLUSIVE AGENCY - ANSWER: Exclusive agency agreements are oftenused with builders who list their properties with a broker, primarily to expose their properties through the multiple listing service. EXCLUSIVE AGENCY - ANSWER: TAR® does not have an exclusive agency listing agreement in full, and such an agreement is not preferred by most brokers EXCLUSIVE RIGHT TO SELL - ANSWER: EXCLUSIVE RIGHT TO SELL Real estate brokers recommend this listing which grants an exclusive right to sell the property during the listing term. A commission is paid even if the property is sold by theowner EXCLUSIVE RIGHT TO SELL - ANSWER: Most brokers prefer the exclusive right to sell listing agreement, as it affords the broker the greatest degree of protection in earning a commission during the listing term.
FACTA is enforced by the Federal Trade Commission (FTC) - ANSWER:FACTA is enforced by the Federal Trade Commission (FTC) Fair Housing Act - ANSWER: Fair Housing Act - If an individual feels he orshe has been discriminated against, the individual may file a complaint with the Texas Workforce Commission Civil Rights Division, HUD, the courts, or with the U.S. AttorneyGeneral. The complaint must be filed within two years of the alleged act. Fair Housing Act - ANSWER: Fair Housing Act. No one may take any of thefollowing actions based on race, color, national origin, religion, sex, familial status or handicap in the sale or rental of housing Fair Housing Act - ANSWER: PENALTIES Penalties for violation of the act are up to $75,000 for the first violation, and up to $150,000 for subsequent violations. FAIR HOUSING LAWS - ANSWER: FAIR HOUSING LAWS It prohibits discrimination on the basis of race, religion and national origin. Gender was added as a protected class in 1974, followed by physical handicapand familial status in 1988. Familial status protection - ANSWER: Familial status protection also applies to pregnant women and anyone securing legal custody of a child under 18. Housing for older persons is exempt from the prohibition against familialstatus discrimination if:
federally-related mortgage loan - ANSWER: A mortgage loan originator thatreceives an application for a federally-related mortgage loan is required to disclose to the borrower at the time of application, or within three business days after its submission:
- Whether the servicing of the loan may be assigned, sold, or transferred.
- A written acknowledgment that the applicant has read and understood the disclosure, evidenced by the signature of the applicant. The disclosure may be sent by hand delivery, or, if the applicant agrees, by fax, e-mailor other elec FIDELITY - ANSWER: *primary duty of the real estate agent is to representthe interests of his or her client.
- real estate agent be faithful and observant to trust placed in him or her. *real estate agent place no personal interest above that of his or her client. FIDELITY - ANSWER: FIDELITY A real estate broker or sales agents, while acting as an agent for another is a fiduciary.Special obligations are imposed when such fiduciary relationships are created FIDUCIARY DUTIES AND RESPONSIBILITIES OLDCAR - ANSWER: • Obedience
- Loyalty
- Disclosure
- Confidentiality
- Accounting
- Reasonable care
can be remembered by using the acronym OLDCAR franchise - ANSWER: The most common reason real estate brokerschoose to join a franchise is name recognition FTC - ANSWER: Penalties The FTC fines telemarketing companies up to $16,000 for each call to a member of theDo- Not-CALL list general partner - ANSWER: The general partner is responsible for day-to-day operations of the business and has full liability. At least one general partner is required in a limited partnership. The general partner is most often the "promoter" whobrought the limited partners into the venture Goals should be measurable attainable, and reviewed often. - ANSWER:Goals should be measurable attainable, and reviewed often. Goods - ANSWER: tangible chattel Governing Law: - ANSWER: Governing Law: Texas law governs theinterpretation, validity, performance, and enforcement of this Listing. Identity theft - ANSWER: Identity theft - when someone steals your personal information and uses it to open accounts Illegal boycott - ANSWER:. An illegal boycott is an agreement among two or more
When an agent and potential party enter into a "substantive" discussion of a real estate transaction, the party must be provided with a TREC-prescribed agency information form INFORMATION ABOUT BROKERAGE SERVICES - ANSWER: There is no statutory requirement that they sign the statement. If you have presented the statement to an individual who declines to sign, note in the signature block "declinedto sign", initial it and date the form. Provide a copy to the prospect and keep a copy for your filesas evidence that you presented the form. INTEGRITY - ANSWER: INTEGRITY A real estate broker or sales agent has a special obligation to exercise integrity in the discharge of his or her responsibilities, including employment of prudence and cautionso as to avoid misrepresentation, in any way, by acts of commission or omission. Is the Facebook group itself an actual violation of anti-trust laws? - ANSWER: No jargon, disruption means to break free from convention and shake up routines and habits, changing the way that a business has traditionally thought and behaved inthe past in order to innovate. It is through disruption that new markets can be discovered, newproducts created, and new values established. Innovation through disruption can displace the more established firms that have long possessed the highest market share. - ANSWER:jargon, disruption Joint and Several - ANSWER: Joint and Several: All Sellers executing thisListing are jointly and severally liable for the performance of all its terms.
joint venture - ANSWER: A group of individuals who have joined togetherfor a single business venture JUNK FAX PREVENTION ACT OF 2005 The Telephone Consumer Protection Act (TCPA) - ANSWER: JUNK FAXPREVENTION ACT OF 2005 The Telephone Consumer Protection Act (TCPA), 47 USC § 227, restricts the use of the facsimile machine to deliver unsolicited advertisements. Specifically, the TCPA prohibits the useof "any telephone facsimile machine, computer, or other device to send an unsolicited advertisement to a telephone facsimile machine." less risk equals lower returns. - ANSWER: A general premise in investing - any kind of investing - is that less risk equals lower returns. limited liability company - ANSWER: limited liability company (LLC) isformed by filing articles of organization with the Texas Secretary of State and is governed by the Texas Limited Liability Company Act. LIMITED LIABILITY PARTNERSHIP A general partnership may elect to become a limited liability partnership by filing astatement providing the following information: - ANSWER: 1. The name of the partnership
- The federal tax identification of the partnership
- The street address of the principal office in Texas and outside the state4. The number of partners at the date of application
