texas sae real estate brokerage exam
with correct answers
A consistent disparity in listing versus selling prices may reflect ___________. - ANSWER: ➡ Inaccurate
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competitive market analyses
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Which of these would be an advantage for the broker of hiring licensees as salaried employees, rather
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than as independent contractors on a commission-based compensation plan? - ANSWER: ➡ Sales
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agents will probably make fewer errors as a result of more broker control and supervision.
w w w w w w w w w w w w w w w
Which option best describes what an environmental impact statement is? - ANSWER: ➡ It describes
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and analyzes a proposed action that may have a significant effect on the environment.
w w w w w w w w w w w w w w
When Andrew schedules a sales meeting at his brokerage, he prepares well in advance by ___________. -
w w w w w w w w w w w w w w w w
ANSWER: ➡ Developing an agenda, talking points, visuals, and handouts
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What is a flat-fee pricing strategy? - ANSWER: ➡ Clients are charged a pre-set fee for a pre-
w w w w w w w ww w w w w w w w w w
determined service. w
The Brendon Group is evaluating a new market and wants to know the market's cultural composition.
w w w w w w w w w w w w w w w
That's likely because _________. - ANSWER: ➡ The licensees don't do any active selling.
w w w w w w ww w w w w w w w
Which of the following actions could compromise your security when meeting with a customer for
w w w w w w w w w w w w w w
the first time in the field? - ANSWER: ➡ Ignoring a lewd comment
w w w w w w w w ww w w w w
Alison is taking steps to become the owner of her own real estate brokerage, Honesty Homes. She and
w w w w w w w w w w w w w w w w w
the two real estate professionals who will become her first employees are drafting the firm's vision
w w w w w w w w w w w w w w w w
statement. Which of the following should be included? - ANSWER: ➡ A statement of what the
w w w w w w w w w w ww w w w w w
company's future results, achievements, and successes will be
w w w w w w w w
Commonly, the Federal Trade Commission will receive leads about a potential antitrust violation
w w w w w w w w w w w w
through which avenue? - ANSWER: ➡ Hearing consumer complaints
w w w w w ww w w w
,A leader who displays the quality of being a visionary is able to do what? - ANSWER: ➡ Look ahead at
w w w w w w w w w w w w w w w w ww w w w
trends to meet future market demands
w w w w w w
A coaching framework is useful at a brokerage because ______. - ANSWER: ➡ It gives structure to the
w w w w w w w w w w w ww w w w w w
coaching process, which helps it be most effective
w w w w w w w w
Rachel is subject to court-ordered supervision due to an antitrust violation. This oversight may
w w w w w w w w w w w w w
continue for as long as ______. - ANSWER: ➡ 10 years
w w w w w w w w ww w w
Reese and his staff have developed an engaging, action-oriented listing presentation to present to
w w w w w w w w w w w w w
potential sellers. Which component in the marketing model does the listing presentation represent?
w w w w w w w w w w w w w
- ANSWER: ➡ communicating
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Personality type models should be used to ____________. - ANSWER: ➡ inform and understand
w w w w w w w w w ww w w w
Sarina's firm primarily uses electronic marketing communications, including emails, Twitter feeds,
w w w w w w w w w w
and Facebook posts. Which of the following marketing tools might receive special attention? -
w w w w w w w w w w w w w w
ANSWER: ➡ A hand-written thank you note
w ww w w w w w
A(n) ________________ is certain to save a brokerage money. - ANSWER: ➡ Culture of retention
w w w w w w w w w w ww w w w
Edgar and his management staff identified their work with real estate contracts as a potential risk to
w w w w w w w w w w w w w w w w
the firm. If Edgar hires an attorney to review every contract written in his office, which risk-handling
w w w w w w w w w w w w w w w w w
strategy does this represent? - ANSWER: ➡ transfer
w w w w w w ww w
If you're going to take advantage of cloud computing to store sensitive client information, you will
w w w w w w w w w w w w w w w
need what security measures to protect the data? - ANSWER: ➡ Strong passwords, limited access,
w w w w w w w w w w ww w w w w
and virus protection
w w w
Cityville administrators are trying to control urban sprawl, but they still need to plan for the growing
w w w w w w w w w w w w w w w w
population. They've revamped zoning laws to allow residential units to be built on smaller lots, and
w w w w w w w w w w w w w w w w
multi-family housing to be built in areas once zoned for single-family housing. Which real estate
w w w w w w w w w w w w w w w
trend does this describe? - ANSWER: ➡ Increased density
w w w w w w ww w w
,Which of the following factors most directly determines the complexity of an organization's
w w w w w w w w w w w w
operating structure? - ANSWER: ➡ number of job roles
w w w w ww w w w w
Nat has a friend who's in the home construction business, and he says that in the last six months,
w w w w w w w w w w w w w w w w w w
there's been an increased demand from developers to build homes that are more energy efficient and
w w w w w w w w w w w w w w w w
use sustainable, non-toxic building materials. What current market trend is this an example of? -
w w w w w w w w w w w w w w w
ANSWER: ➡ Greener buyers
w ww w w
Which of the following is one of the IRS requirements for a real estate brokerage worker to be
w w w w w w w w w w w w w w w w w
classified as a statutory non-employee? - ANSWER: ➡ The individual and the employing broker have
w w w w w w w ww w w w w w w w
a written contract.
w w w
A broker is following a problem-solving process to handle a situation in which one of her licensees
w w w w w w w w w w w w w w w w
has violated a brokerage policy. Which of these actions must be part of the solution she pursues to
w w w w w w w w w w w w w w w w w w
resolve the problem? - ANSWER: ➡ Communication
w w w w w ww w
Broker Sam has extended an offer to licensee Jane, who has accepted the offer. Jane will work as an
w w w w w w w w w w w w w w w w w w
independent contractor for Sam. Based on this, which of the following statements is true? - ANSWER:
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➡ Jane will need to fill out a W-9 for IRS reporting purposes.
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Independent contractors are required to fill out a W-9 for IRS reporting purposes. Only actual
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employees are required to complete the W-4.
w w w w w w w
Population growth and decline in an area is usually the result of which type of changes? - ANSWER:
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➡ Employment opportunities
w w w
Who in a brokerage firm should know the firm's code of ethics? - ANSWER: ➡ Everyone
w w w w w w w w w w w w w ww w
How do government regulations impact a real estate brokerage? - ANSWER: ➡ By increasing liability
w w w w w w w w w w ww w w w
(more to comply with)
w w w w
Which of the following is one of the IRS requirements for a real estate brokerage worker to be
w w w w w w w w w w w w w w w w w
classified as a statutory non-employee? - ANSWER: ➡ The individual and the employing broker have
w w w w w w w ww w w w w w w w
a written contract.
w w w
, the written contract must describe the real estate services that the individual will perform and must
w w w w w w w w w w w w w w w
explicitly state that the individual will not be treated as an employee for federal tax purposes.
w w w w w w w w w w w w w w w w
income statement might also be called the ________. - ANSWER: ➡ Statement of profit or loss
w w w w w w w w w ww w w w w w
Charli is thinking about buying only liability insurance for the office building she owns. She knows
w w w w w w w w w w w w w w w
she'll have to pay for any damage to the building. What factors should Charli consider in making this
w w w w w w w w w w w w w w w w w w
decision? - ANSWER: ➡ Her willingness and ability to withstand the risk posed by carrying only
w w w ww w w w w w w w w w w w w
liability insurance (risk tolerance)
w w w w
Up the Hill Realty has purchased a contact list. New licensees at the brokerage are asked to spend
w w w w w w w w w w w w w w w w w
three hours a week cold-calling individuals on this list. Which of these actions is NOT one they need
w w w w w w w w w w w w w w w w w w
to take before making these calls? - ANSWER: ➡ Create a fake phone number that individuals will
w w w w w w w w ww w w w w w w w w
see on their caller ID.
w w w w w
Alison has written the mission and vision statements and defined objectives for her up and coming
w w w w w w w w w w w w w w w
brokerage business, Honesty Homes. Now it's time to set some goals. She asks her mentor, brokerage
w w w w w w w w w w w w w w w w
owner James, for some guidance on what goals are, and how to write them. What advice do you think
w w w w w w w w w w w w w w w w w w w
James would offer Alison?
w w w w
Goals regarding future revenue should be based on solid assumptions.
w w w w w w w w w
Goals should be challenging and based on what experienced competitors are doing.
w w w w w w w w w w w
Goals should be specific, measurable, attainable, realistic, and timely.
w w w w w w w w
Goals should have strict start dates and flexible end dates.
w w w w w w w w w
Goals should be SMART: specific, measurable, attainable, realistic, and timely. - ANSWER: ➡ Goals
w w w w w w w w w w w ww w
regarding future revenue should be based on solid assumptions. X
w w w w w w w w w w
Goals should be challenging and based on what experienced competitors are doing. X
w w w w w w w w w w w w
Goals should be specific, measurable, attainable, realistic, and timely.
w w w w w w w w
Goals should have strict start dates and flexible end dates. X
w w w w w w w w w w
ans: Goals should be SMART: specific, measurable, attainable, realistic, and timely.
w w w w w w w w w w
Question 60 w
The number of houses sold over a period of time is reflected in _______.
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with correct answers
A consistent disparity in listing versus selling prices may reflect ___________. - ANSWER: ➡ Inaccurate
w w w w w w w w w w w w ww w
competitive market analyses
w w w
Which of these would be an advantage for the broker of hiring licensees as salaried employees, rather
w w w w w w w w w w w w w w w w
than as independent contractors on a commission-based compensation plan? - ANSWER: ➡ Sales
w w w w w w w w w w w ww w
agents will probably make fewer errors as a result of more broker control and supervision.
w w w w w w w w w w w w w w w
Which option best describes what an environmental impact statement is? - ANSWER: ➡ It describes
w w w w w w w w w w w ww w w
and analyzes a proposed action that may have a significant effect on the environment.
w w w w w w w w w w w w w w
When Andrew schedules a sales meeting at his brokerage, he prepares well in advance by ___________. -
w w w w w w w w w w w w w w w w
ANSWER: ➡ Developing an agenda, talking points, visuals, and handouts
w ww w w w w w w w w
What is a flat-fee pricing strategy? - ANSWER: ➡ Clients are charged a pre-set fee for a pre-
w w w w w w w ww w w w w w w w w w
determined service. w
The Brendon Group is evaluating a new market and wants to know the market's cultural composition.
w w w w w w w w w w w w w w w
That's likely because _________. - ANSWER: ➡ The licensees don't do any active selling.
w w w w w w ww w w w w w w w
Which of the following actions could compromise your security when meeting with a customer for
w w w w w w w w w w w w w w
the first time in the field? - ANSWER: ➡ Ignoring a lewd comment
w w w w w w w w ww w w w w
Alison is taking steps to become the owner of her own real estate brokerage, Honesty Homes. She and
w w w w w w w w w w w w w w w w w
the two real estate professionals who will become her first employees are drafting the firm's vision
w w w w w w w w w w w w w w w w
statement. Which of the following should be included? - ANSWER: ➡ A statement of what the
w w w w w w w w w w ww w w w w w
company's future results, achievements, and successes will be
w w w w w w w w
Commonly, the Federal Trade Commission will receive leads about a potential antitrust violation
w w w w w w w w w w w w
through which avenue? - ANSWER: ➡ Hearing consumer complaints
w w w w w ww w w w
,A leader who displays the quality of being a visionary is able to do what? - ANSWER: ➡ Look ahead at
w w w w w w w w w w w w w w w w ww w w w
trends to meet future market demands
w w w w w w
A coaching framework is useful at a brokerage because ______. - ANSWER: ➡ It gives structure to the
w w w w w w w w w w w ww w w w w w
coaching process, which helps it be most effective
w w w w w w w w
Rachel is subject to court-ordered supervision due to an antitrust violation. This oversight may
w w w w w w w w w w w w w
continue for as long as ______. - ANSWER: ➡ 10 years
w w w w w w w w ww w w
Reese and his staff have developed an engaging, action-oriented listing presentation to present to
w w w w w w w w w w w w w
potential sellers. Which component in the marketing model does the listing presentation represent?
w w w w w w w w w w w w w
- ANSWER: ➡ communicating
w w ww w
Personality type models should be used to ____________. - ANSWER: ➡ inform and understand
w w w w w w w w w ww w w w
Sarina's firm primarily uses electronic marketing communications, including emails, Twitter feeds,
w w w w w w w w w w
and Facebook posts. Which of the following marketing tools might receive special attention? -
w w w w w w w w w w w w w w
ANSWER: ➡ A hand-written thank you note
w ww w w w w w
A(n) ________________ is certain to save a brokerage money. - ANSWER: ➡ Culture of retention
w w w w w w w w w w ww w w w
Edgar and his management staff identified their work with real estate contracts as a potential risk to
w w w w w w w w w w w w w w w w
the firm. If Edgar hires an attorney to review every contract written in his office, which risk-handling
w w w w w w w w w w w w w w w w w
strategy does this represent? - ANSWER: ➡ transfer
w w w w w w ww w
If you're going to take advantage of cloud computing to store sensitive client information, you will
w w w w w w w w w w w w w w w
need what security measures to protect the data? - ANSWER: ➡ Strong passwords, limited access,
w w w w w w w w w w ww w w w w
and virus protection
w w w
Cityville administrators are trying to control urban sprawl, but they still need to plan for the growing
w w w w w w w w w w w w w w w w
population. They've revamped zoning laws to allow residential units to be built on smaller lots, and
w w w w w w w w w w w w w w w w
multi-family housing to be built in areas once zoned for single-family housing. Which real estate
w w w w w w w w w w w w w w w
trend does this describe? - ANSWER: ➡ Increased density
w w w w w w ww w w
,Which of the following factors most directly determines the complexity of an organization's
w w w w w w w w w w w w
operating structure? - ANSWER: ➡ number of job roles
w w w w ww w w w w
Nat has a friend who's in the home construction business, and he says that in the last six months,
w w w w w w w w w w w w w w w w w w
there's been an increased demand from developers to build homes that are more energy efficient and
w w w w w w w w w w w w w w w w
use sustainable, non-toxic building materials. What current market trend is this an example of? -
w w w w w w w w w w w w w w w
ANSWER: ➡ Greener buyers
w ww w w
Which of the following is one of the IRS requirements for a real estate brokerage worker to be
w w w w w w w w w w w w w w w w w
classified as a statutory non-employee? - ANSWER: ➡ The individual and the employing broker have
w w w w w w w ww w w w w w w w
a written contract.
w w w
A broker is following a problem-solving process to handle a situation in which one of her licensees
w w w w w w w w w w w w w w w w
has violated a brokerage policy. Which of these actions must be part of the solution she pursues to
w w w w w w w w w w w w w w w w w w
resolve the problem? - ANSWER: ➡ Communication
w w w w w ww w
Broker Sam has extended an offer to licensee Jane, who has accepted the offer. Jane will work as an
w w w w w w w w w w w w w w w w w w
independent contractor for Sam. Based on this, which of the following statements is true? - ANSWER:
w w w w w w w w w w w w w w w w
➡ Jane will need to fill out a W-9 for IRS reporting purposes.
ww w w w w w w w w w w w w
Independent contractors are required to fill out a W-9 for IRS reporting purposes. Only actual
w w w w w w w w w w w w w w
employees are required to complete the W-4.
w w w w w w w
Population growth and decline in an area is usually the result of which type of changes? - ANSWER:
w w w w w w w w w w w w w w w w w w
➡ Employment opportunities
w w w
Who in a brokerage firm should know the firm's code of ethics? - ANSWER: ➡ Everyone
w w w w w w w w w w w w w ww w
How do government regulations impact a real estate brokerage? - ANSWER: ➡ By increasing liability
w w w w w w w w w w ww w w w
(more to comply with)
w w w w
Which of the following is one of the IRS requirements for a real estate brokerage worker to be
w w w w w w w w w w w w w w w w w
classified as a statutory non-employee? - ANSWER: ➡ The individual and the employing broker have
w w w w w w w ww w w w w w w w
a written contract.
w w w
, the written contract must describe the real estate services that the individual will perform and must
w w w w w w w w w w w w w w w
explicitly state that the individual will not be treated as an employee for federal tax purposes.
w w w w w w w w w w w w w w w w
income statement might also be called the ________. - ANSWER: ➡ Statement of profit or loss
w w w w w w w w w ww w w w w w
Charli is thinking about buying only liability insurance for the office building she owns. She knows
w w w w w w w w w w w w w w w
she'll have to pay for any damage to the building. What factors should Charli consider in making this
w w w w w w w w w w w w w w w w w w
decision? - ANSWER: ➡ Her willingness and ability to withstand the risk posed by carrying only
w w w ww w w w w w w w w w w w w
liability insurance (risk tolerance)
w w w w
Up the Hill Realty has purchased a contact list. New licensees at the brokerage are asked to spend
w w w w w w w w w w w w w w w w w
three hours a week cold-calling individuals on this list. Which of these actions is NOT one they need
w w w w w w w w w w w w w w w w w w
to take before making these calls? - ANSWER: ➡ Create a fake phone number that individuals will
w w w w w w w w ww w w w w w w w w
see on their caller ID.
w w w w w
Alison has written the mission and vision statements and defined objectives for her up and coming
w w w w w w w w w w w w w w w
brokerage business, Honesty Homes. Now it's time to set some goals. She asks her mentor, brokerage
w w w w w w w w w w w w w w w w
owner James, for some guidance on what goals are, and how to write them. What advice do you think
w w w w w w w w w w w w w w w w w w w
James would offer Alison?
w w w w
Goals regarding future revenue should be based on solid assumptions.
w w w w w w w w w
Goals should be challenging and based on what experienced competitors are doing.
w w w w w w w w w w w
Goals should be specific, measurable, attainable, realistic, and timely.
w w w w w w w w
Goals should have strict start dates and flexible end dates.
w w w w w w w w w
Goals should be SMART: specific, measurable, attainable, realistic, and timely. - ANSWER: ➡ Goals
w w w w w w w w w w w ww w
regarding future revenue should be based on solid assumptions. X
w w w w w w w w w w
Goals should be challenging and based on what experienced competitors are doing. X
w w w w w w w w w w w w
Goals should be specific, measurable, attainable, realistic, and timely.
w w w w w w w w
Goals should have strict start dates and flexible end dates. X
w w w w w w w w w w
ans: Goals should be SMART: specific, measurable, attainable, realistic, and timely.
w w w w w w w w w w
Question 60 w
The number of houses sold over a period of time is reflected in _______.
w w w w w w w w w w w w w
