SAE BROKERAGE TEXAS EXAM 4 CORE TEXAS
REAL ESTATE LAW AND BROKERAGE
PRACTICES REVIEW 2026
◉ Personality type models should be used to ____________.
Answer: 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?
Answer: A hand-written thank you note
◉ A(n) ________________ is certain to save a brokerage money.
Answer: 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?
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: Increased density
◉ Which of the following factors most directly determines the
complexity of an organization'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 are more 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 worker to be classified as a statutory non-
employee?
Answer: 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?
Answer: 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?
Answer: 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?
Answer: Employment opportunities
◉ Who in a brokerage firm should know the firm's code of ethics?
, Answer: Everyone
◉ How do government regulations impact a real estate brokerage?
Answer: By increasing liability (more to comply with)
◉ Which of the following is one of the IRS requirements for a real
estate brokerage worker to be classified as a statutory non-
employee?
Answer: 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 ________.
Answer: 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?
Answer: Her willingness and ability to withstand the risk posed by
carrying only liability insurance (risk tolerance)
REAL ESTATE LAW AND BROKERAGE
PRACTICES REVIEW 2026
◉ Personality type models should be used to ____________.
Answer: 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?
Answer: A hand-written thank you note
◉ A(n) ________________ is certain to save a brokerage money.
Answer: 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?
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: Increased density
◉ Which of the following factors most directly determines the
complexity of an organization'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 are more 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 worker to be classified as a statutory non-
employee?
Answer: 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?
Answer: 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?
Answer: 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?
Answer: Employment opportunities
◉ Who in a brokerage firm should know the firm's code of ethics?
, Answer: Everyone
◉ How do government regulations impact a real estate brokerage?
Answer: By increasing liability (more to comply with)
◉ Which of the following is one of the IRS requirements for a real
estate brokerage worker to be classified as a statutory non-
employee?
Answer: 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 ________.
Answer: 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?
Answer: Her willingness and ability to withstand the risk posed by
carrying only liability insurance (risk tolerance)
