Page | 1
TEXAS SAE REAL ESTATE BROKERAGE
QUESTIONS WITH DETAILED VERIFIED
ANSWERS
A consistent disparity in listing versus selling prices may reflect
___________. Ans: 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? Ans: Sales agents will probably
make fewer errors as a result of more broker control and supervision.
Which option best describes what an environmental impact statement is?
Ans: It describes and analyzes a proposed action that may have a
significant effect on the environment.
When Andrew schedules a sales meeting at his brokerage, he prepares
well in advance by ___________. Ans: Developing an agenda, talking
points, visuals, and handouts
What is a flat-fee pricing strategy? Ans: Clients are charged a pre-set
fee for a pre-determined service.
The Brendon Group is evaluating a new market and wants to know the
market's cultural composition. That's likely because _________. Ans:
The licensees don't do any active selling.
Which of the following actions could compromise your security when
meeting with a customer for the first time in the field? Ans: 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 employees are drafting the firm's vision
statement. Which of the following should be included? Ans: A statement
of what the company's future results, achievements, and successes will
be
, Page | 2
Commonly, the Federal Trade Commission will receive leads about a
potential antitrust violation through which avenue? Ans: Hearing
consumer complaints
A leader who displays the quality of being a visionary is able to do what?
Ans: Look ahead at trends to meet future market demands
A coaching framework is useful at a brokerage because ______. Ans: It
gives structure to the coaching process, which helps it be most effective
Rachel is subject to court-ordered supervision due to an antitrust
violation. This oversight may continue for as long as ______. Ans: 10
years
Reese and his staff have developed an engaging, action-oriented listing
presentation to present to potential sellers. Which component in the
marketing model does the listing presentation represent? Ans:
communicating
Personality type models should be used to ____________. Ans: inform
and understand
Sarina's firm primarily uses electronic marketing communications,
including emails, Twitter feeds, and Facebook posts. Which of the
following marketing tools might receive special attention? Ans: A hand-
written thank you note
A(n) ________________ is certain to save a brokerage money. Ans:
Culture of retention
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 his office, which risk-handling strategy
does this represent? Ans: 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? Ans: Strong passwords, limited access, and virus protection
, Page | 3
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? Ans: Increased density
Which of the following factors most directly determines the complexity of
an organization's operating structure? Ans: 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 are more energy efficient and use
sustainable, non-toxic building materials. What current market trend is
this an example of? Ans: Greener buyers
Which of the following is one of the IRS requirements for a real estate
brokerage worker to be classified as a statutory non-employee? Ans:
The individual and the employing broker have a written contract.
A broker is following a problem-solving process to handle a situation in
which one of her licensees has violated a brokerage policy. Which of
these actions must be part of the solution she pursues to resolve the
problem? Ans: Communication
Broker Sam has extended an offer to licensee Jane, who has accepted the
offer. Jane will work as an independent contractor for Sam. Based on
this, which of the following statements is true? Ans: Jane will need to fill
out a W-9 for IRS reporting purposes.
Independent contractors are required to fill out a W-9 for IRS reporting
purposes. Only actual employees are required to complete the W-4.
Population growth and decline in an area is usually the result of which
type of changes? Ans: Employment opportunities
Who in a brokerage firm should know the firm's code of ethics? Ans:
Everyone
How do government regulations impact a real estate brokerage? Ans: By
increasing liability (more to comply with)
, Page | 4
Which of the following is one of the IRS requirements for a real estate
brokerage worker to be classified as a statutory non-employee? Ans:
The individual and the employing broker have a written contract.
the written contract must describe the real estate services that the
individual will perform and must explicitly state that the individual will not
be treated as an employee for federal tax purposes.
income statement might also be called the ________. Ans: Statement of
profit 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 Charli consider in making this decision?
Ans: 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 these actions is NOT one they need to take before
making these calls? Ans: Create a fake phone number that individuals
will see on their caller ID.
Alison has written the mission and vision statements and defined
objectives for her up and coming brokerage business, Honesty Homes.
Now it's time to set some goals. She asks her mentor, brokerage owner
James, for some guidance on what goals are, and how to write them.
What advice do you think James would offer Alison?
Goals regarding future revenue should be based on solid assumptions.
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.
TEXAS SAE REAL ESTATE BROKERAGE
QUESTIONS WITH DETAILED VERIFIED
ANSWERS
A consistent disparity in listing versus selling prices may reflect
___________. Ans: 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? Ans: Sales agents will probably
make fewer errors as a result of more broker control and supervision.
Which option best describes what an environmental impact statement is?
Ans: It describes and analyzes a proposed action that may have a
significant effect on the environment.
When Andrew schedules a sales meeting at his brokerage, he prepares
well in advance by ___________. Ans: Developing an agenda, talking
points, visuals, and handouts
What is a flat-fee pricing strategy? Ans: Clients are charged a pre-set
fee for a pre-determined service.
The Brendon Group is evaluating a new market and wants to know the
market's cultural composition. That's likely because _________. Ans:
The licensees don't do any active selling.
Which of the following actions could compromise your security when
meeting with a customer for the first time in the field? Ans: 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 employees are drafting the firm's vision
statement. Which of the following should be included? Ans: A statement
of what the company's future results, achievements, and successes will
be
, Page | 2
Commonly, the Federal Trade Commission will receive leads about a
potential antitrust violation through which avenue? Ans: Hearing
consumer complaints
A leader who displays the quality of being a visionary is able to do what?
Ans: Look ahead at trends to meet future market demands
A coaching framework is useful at a brokerage because ______. Ans: It
gives structure to the coaching process, which helps it be most effective
Rachel is subject to court-ordered supervision due to an antitrust
violation. This oversight may continue for as long as ______. Ans: 10
years
Reese and his staff have developed an engaging, action-oriented listing
presentation to present to potential sellers. Which component in the
marketing model does the listing presentation represent? Ans:
communicating
Personality type models should be used to ____________. Ans: inform
and understand
Sarina's firm primarily uses electronic marketing communications,
including emails, Twitter feeds, and Facebook posts. Which of the
following marketing tools might receive special attention? Ans: A hand-
written thank you note
A(n) ________________ is certain to save a brokerage money. Ans:
Culture of retention
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 his office, which risk-handling strategy
does this represent? Ans: 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? Ans: Strong passwords, limited access, and virus protection
, Page | 3
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? Ans: Increased density
Which of the following factors most directly determines the complexity of
an organization's operating structure? Ans: 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 are more energy efficient and use
sustainable, non-toxic building materials. What current market trend is
this an example of? Ans: Greener buyers
Which of the following is one of the IRS requirements for a real estate
brokerage worker to be classified as a statutory non-employee? Ans:
The individual and the employing broker have a written contract.
A broker is following a problem-solving process to handle a situation in
which one of her licensees has violated a brokerage policy. Which of
these actions must be part of the solution she pursues to resolve the
problem? Ans: Communication
Broker Sam has extended an offer to licensee Jane, who has accepted the
offer. Jane will work as an independent contractor for Sam. Based on
this, which of the following statements is true? Ans: Jane will need to fill
out a W-9 for IRS reporting purposes.
Independent contractors are required to fill out a W-9 for IRS reporting
purposes. Only actual employees are required to complete the W-4.
Population growth and decline in an area is usually the result of which
type of changes? Ans: Employment opportunities
Who in a brokerage firm should know the firm's code of ethics? Ans:
Everyone
How do government regulations impact a real estate brokerage? Ans: By
increasing liability (more to comply with)
, Page | 4
Which of the following is one of the IRS requirements for a real estate
brokerage worker to be classified as a statutory non-employee? Ans:
The individual and the employing broker have a written contract.
the written contract must describe the real estate services that the
individual will perform and must explicitly state that the individual will not
be treated as an employee for federal tax purposes.
income statement might also be called the ________. Ans: Statement of
profit 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 Charli consider in making this decision?
Ans: 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 these actions is NOT one they need to take before
making these calls? Ans: Create a fake phone number that individuals
will see on their caller ID.
Alison has written the mission and vision statements and defined
objectives for her up and coming brokerage business, Honesty Homes.
Now it's time to set some goals. She asks her mentor, brokerage owner
James, for some guidance on what goals are, and how to write them.
What advice do you think James would offer Alison?
Goals regarding future revenue should be based on solid assumptions.
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.
