Champions Powerhouse Training SAE
Practice Exam QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. What is the main goal of a comparative market analysis (CMA)?
A. To establish a property's insurance value
B. To estimate a property's market value
C. To determine property tax value
D. To appraise property for a mortgage
A CMA helps estimate a property's current market value by comparing it to
similar properties recently sold in the area.
2. Which of the following is considered a protected class under the
Federal Fair Housing Act?
A. Marital status
B. Sexual orientation
, C. Religion
D. Military status
Religion is one of the seven protected classes under the Federal Fair
Housing Act: race, color, religion, sex, national origin, disability, and
familial status.
3. Which marketing strategy is considered "push marketing"?
A. Blogging
B. Social media engagement
C. Direct mail campaigns
D. Search engine optimization
Push marketing involves actively sending information to prospects—direct
mail is a classic example.
4. What is the primary purpose of a listing agreement?
A. To transfer title from seller to buyer
B. To create an agency relationship between the seller and broker
C. To advertise the property to other agents
D. To finance the listing
A listing agreement legally establishes the agency relationship between a
seller and the listing broker.
5. Which of the following is considered a disadvantage of open houses?
A. They increase property exposure
B. They may attract unqualified buyers or "lookers"
, C. They offer buyer feedback
D. They allow buyers to view without pressure
Open houses may attract people who are not serious buyers, which can
waste an agent’s time.
6. What is the best definition of "lead conversion"?
A. Getting new leads through ads
B. Sending leads weekly newsletters
C. Referring leads to another agent
D. Turning a lead into a client or closed transaction
Lead conversion is the process of turning a prospect or lead into a paying
customer or client.
7. When should a buyer be given the Information About Brokerage
Services (IABS) form?
A. After contract is signed
B. At the first substantive communication
C. Only if buyer requests it
D. When showing property
Texas law requires the IABS form be provided at the first substantive
conversation about real estate.
8. Which of the following is an example of a fiduciary duty owed to a
client?
A. Loyalty to the other party
, B. Confidentiality
C. Advertising the home
D. Holding open houses
Confidentiality is a fiduciary duty that means agents must not share
sensitive client information.
9. What is the function of the MLS (Multiple Listing Service)?
A. To determine tax value
B. To provide property listings to cooperating brokers
C. To approve mortgage loans
D. To assign brokers to agents
The MLS is a tool that enables brokers to share listings and cooperate with
one another.
10. A client says they want to withdraw their listing. What must the
listing agent do?
A. Cancel the listing as requested, possibly in writing
B. Refuse until the listing expires
C. Charge them a fee immediately
D. Sell the listing to another agent
Clients have the right to withdraw their listing. The agent should comply,
but the broker may require documentation.
11. What is a benefit of using a CRM (Customer Relationship
Management) system?
Practice Exam QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. What is the main goal of a comparative market analysis (CMA)?
A. To establish a property's insurance value
B. To estimate a property's market value
C. To determine property tax value
D. To appraise property for a mortgage
A CMA helps estimate a property's current market value by comparing it to
similar properties recently sold in the area.
2. Which of the following is considered a protected class under the
Federal Fair Housing Act?
A. Marital status
B. Sexual orientation
, C. Religion
D. Military status
Religion is one of the seven protected classes under the Federal Fair
Housing Act: race, color, religion, sex, national origin, disability, and
familial status.
3. Which marketing strategy is considered "push marketing"?
A. Blogging
B. Social media engagement
C. Direct mail campaigns
D. Search engine optimization
Push marketing involves actively sending information to prospects—direct
mail is a classic example.
4. What is the primary purpose of a listing agreement?
A. To transfer title from seller to buyer
B. To create an agency relationship between the seller and broker
C. To advertise the property to other agents
D. To finance the listing
A listing agreement legally establishes the agency relationship between a
seller and the listing broker.
5. Which of the following is considered a disadvantage of open houses?
A. They increase property exposure
B. They may attract unqualified buyers or "lookers"
, C. They offer buyer feedback
D. They allow buyers to view without pressure
Open houses may attract people who are not serious buyers, which can
waste an agent’s time.
6. What is the best definition of "lead conversion"?
A. Getting new leads through ads
B. Sending leads weekly newsletters
C. Referring leads to another agent
D. Turning a lead into a client or closed transaction
Lead conversion is the process of turning a prospect or lead into a paying
customer or client.
7. When should a buyer be given the Information About Brokerage
Services (IABS) form?
A. After contract is signed
B. At the first substantive communication
C. Only if buyer requests it
D. When showing property
Texas law requires the IABS form be provided at the first substantive
conversation about real estate.
8. Which of the following is an example of a fiduciary duty owed to a
client?
A. Loyalty to the other party
, B. Confidentiality
C. Advertising the home
D. Holding open houses
Confidentiality is a fiduciary duty that means agents must not share
sensitive client information.
9. What is the function of the MLS (Multiple Listing Service)?
A. To determine tax value
B. To provide property listings to cooperating brokers
C. To approve mortgage loans
D. To assign brokers to agents
The MLS is a tool that enables brokers to share listings and cooperate with
one another.
10. A client says they want to withdraw their listing. What must the
listing agent do?
A. Cancel the listing as requested, possibly in writing
B. Refuse until the listing expires
C. Charge them a fee immediately
D. Sell the listing to another agent
Clients have the right to withdraw their listing. The agent should comply,
but the broker may require documentation.
11. What is a benefit of using a CRM (Customer Relationship
Management) system?
