TX-Brokerage (SAE) Question Bank 2024

The _____ is required to ascertain that Brokers are aware of all of their responsibilities. - Correct Answer-Texas Real Estate Commission The _____ course is to address the regulatory aspects of the management, operation and supervision of a real estate brokerage firm in Texas. The course provides an understanding and working knowledge of a broker's responsibilities and obligations under 22 TAC §535.2. - Correct Answer-Broker Responsibility MCE Who Must Take The Broker Responsibility MCE Course? - Correct Answer-A broker who sponsors salespersons, a designated broker of a business entity, and a license holder who is a delegated supervisor of one or more license holders (for six months or more during the supervisor's current license period), to complete this six—hour broker responsibility course to renew a license. "Act of God" - Correct Answer-A natural disaster or fire Broker must, at a minimum, maintain the following records in a format that is readily available to the Commission for at least ____ years from the date of closing, termination of the contract, or end of a real estate transaction - Correct Answer-4 Recruitment of a salesperson by a broker is not regulated with the exception that instructors or other persons associated with a ___ may NOT recruit or solicit prospective salespersons or brokers in a classroom during class time - Correct Answer-School There is no provision in the Act or the TREC Rules prohibiting a broker from _____ a salesperson or broker—associate affiliated with another broker. - Correct Answer-Recruiting ________ are exempt from any of the provisions of the Texas Real Estate License Act. They are permitted to represent clients in real estate transactions by virtue of their license to practice law. - Correct Answer-Attorneys Brokers CANNOT share their fees with attorneys who perform a brokerage service, attorneys must seek compensation for that service directly from one of the ______ in a transaction - Correct Answer-Principals Can a listing broker share a portion of the listing broker's commission with an attorney who represented the buyer in a real estate transaction? - Correct Answer-No. A broker is prohibited from sharing fees with or otherwise compensating the attorney acting as a buyer's agent unless the attorney holds an active real estate license. Is a link to the IABS form required on my website? - Correct Answer-Yes. Rule 531.20(b) states that each broker and sales agent must provide a link on its homepage to the IABS Form labeled "Texas Real Estate Commission Information About Brokerage Services". IABS link must be in at least a ______ point font and in a readily noticeable place on the homepage of the business website of the broker and sales agent. - Correct Answer-10 Does a link to the IABS Form in my email signature satisfy the representation disclosure required by TRELA §1101.558? - Correct Answer-No. Rule 531.20(d) states that providing a link to the IABS Form in a footnote or signature block of an email is insufficient The IABS Form can be provided by: - Correct Answer-(1) personal delivery; (2) first class mail or overnight common carrier delivery service; (3) in the body of an email; or (4) as an attachment to an email or as a link in the body of an email so long as there is a specific reference to the IABS Form in the body of the email. Reasons people give for wanting to open their own Brokerage: - Correct Answer-Wanting to create something from scratch, Wanting to be their own boss, Wanting to train and motivate real estate agents to be successful, Wanting to be leader in their community or in the industry, An entrepreneurial spirit Two good resources for finding past statistic for the real estate industry are - Correct Answer-The National Association of REALTORS® and the Real Estate Center at Texas A&M University. The _______ indicates the strength of the economy. - Correct Answer-Gross domestic product or GDP Most good economies have a GDP of about _____ - Correct Answer-3% A new broker will need a good real estate attorney and a good _____ on their team. - Correct Answer-Certified public accountant (CPA) The Rules of the Texas Real Estate Commission require that a Broker have a_______ before you start hiring agents - Correct Answer-Policy and Procedures Manual Policy and Procedures Manual must include - Correct Answer-Agent's Authorized Activity, Advertising, Compensation, Records Management, Trust Accounts The new broker will want to consider three possibilities. - Correct Answer-Purchasing an existing real estate business, purchasing a franchise office or a start up from scratch All business entities engaged in real estate brokerage activity, including ______, need to be licensed. - Correct Answer-Partnerships If the designated broker does NOT directly own at least 10% of the entity TREC requires proof that the business entity maintains _______ in the amount of $1 million per occurrence. - Correct Answer-Errors and omissions insurance Two requirements that must be met for all advertisements - Correct Answer-Must "clearly and conspicuously contain the name of the broker, either a business entity or an individual." and An advertisement must include a designation that serves to clearly identify the advertiser as a real estate agent. TREC Qualifications to obtain a Broker's license: - Correct Answer-Citizen of the United States or lawfully admitted alien, 18 years of age or older, Resident of Texas, unless you: were licensed in Texas as a sales agent or broker in the last two years; or you are licensed as a broker in another state, Meet TREC's qualifications for honesty, trustworthiness, and integrity Instructors must pass the test with a grade of ____ or higher to be able to teach the course - Correct Answer-80% To become a Broker you need to complete your qualifying education- ______ classroom hours of qualifying real estate courses - Correct Answer-270 Principles of Real Estate I (30 classroom hours), Principles of Real Estate II (30 classroom hours), Law of Agency (30 classroom hours), Law of Contracts (30 classroom hours), Promulgated Contracts Forms (30 classroom hours), Real Estate Finance (30 classroom hours), Real Estate Brokerage (30 classroom hours) - Correct Answer-Brokerage mandatory courses The Real Estate Brokerage course must be completed not more than ____ years before the application date. - Correct Answer-2 The Broker will become both the Leader and the _____ - Correct Answer-Manager Broker/Owners become responsible for the______ of the entire company - Correct Answer-Management, operation and supervision A broker must maintain all records for _____ years. - Correct Answer-4 Purchasing or starting a new brokerage business is exciting and _____ - Correct Answer-Risky Builders do NOT have to be _____, in Texas - Correct Answer-Licensed CRS— - Correct Answer-Certified Real Estate Specialist ABR— - Correct Answer-Accredited Buyer's Representation ALC— - Correct Answer-Accredited Land Consultant SRS— - Correct Answer-Seller's Representation Specialist CRB— - Correct Answer-Certified Real Estate Broker CPM— - Correct Answer-Certified Property Manager GRI— - Correct Answer-Graduate of the REALTOR® Institute CRE— - Correct Answer-Certified Real Estate Counselor SRES— - Correct Answer-Senior Real Estate Specialist REALTOR® members agree to submit commission disputes between Brokers to arbitration through their _____ - Correct Answer-Association of REALTORS®.