1
TX-Brokerage (SAE) Questions with Correct
Answers for Specific Exam Mail
The _____ is required to ascertain that Brokers are aware of all of their
responsibilities.
Ans: 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.
Ans: Broker Responsibility MCE
Who Must Take The Broker Responsibility MCE Course?
Ans: 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"
Ans: 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
Pretest - Stuvia US
,2
Ans: 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
Ans: 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.
Ans: 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.
Ans: 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
Ans: 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?
Ans: 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.
Pretest - Stuvia US
,3
Is a link to the IABS form required on my website?
Ans: 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.
Ans: 10
Does a link to the IABS Form in my email signature satisfy the representation
disclosure required by TRELA §1101.558?
Ans: 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:
Ans: (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:
Ans: 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
Pretest - Stuvia US
, 4
Two good resources for finding past statistic for the real estate industry are
Ans: The National Association of REALTORS® and the Real Estate Center at
Texas A&M University.
The _______ indicates the strength of the economy.
Ans: Gross domestic product or GDP
Most good economies have a GDP of about _____
Ans: 3%
A new broker will need a good real estate attorney and a good _____ on
their team.
Ans: Certified public accountant (CPA)
The Rules of the Texas Real Estate Commission require that a Broker have
a_______ before you start hiring agents
Ans: Policy and Procedures Manual
Policy and Procedures Manual must include
Ans: Agent's Authorized Activity, Advertising, Compensation, Records
Management, Trust Accounts
The new broker will want to consider three possibilities.
Ans: Purchasing an existing real estate business, purchasing a franchise office
or a start up from scratch
Pretest - Stuvia US
TX-Brokerage (SAE) Questions with Correct
Answers for Specific Exam Mail
The _____ is required to ascertain that Brokers are aware of all of their
responsibilities.
Ans: 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.
Ans: Broker Responsibility MCE
Who Must Take The Broker Responsibility MCE Course?
Ans: 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"
Ans: 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
Pretest - Stuvia US
,2
Ans: 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
Ans: 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.
Ans: 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.
Ans: 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
Ans: 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?
Ans: 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.
Pretest - Stuvia US
,3
Is a link to the IABS form required on my website?
Ans: 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.
Ans: 10
Does a link to the IABS Form in my email signature satisfy the representation
disclosure required by TRELA §1101.558?
Ans: 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:
Ans: (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:
Ans: 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
Pretest - Stuvia US
, 4
Two good resources for finding past statistic for the real estate industry are
Ans: The National Association of REALTORS® and the Real Estate Center at
Texas A&M University.
The _______ indicates the strength of the economy.
Ans: Gross domestic product or GDP
Most good economies have a GDP of about _____
Ans: 3%
A new broker will need a good real estate attorney and a good _____ on
their team.
Ans: Certified public accountant (CPA)
The Rules of the Texas Real Estate Commission require that a Broker have
a_______ before you start hiring agents
Ans: Policy and Procedures Manual
Policy and Procedures Manual must include
Ans: Agent's Authorized Activity, Advertising, Compensation, Records
Management, Trust Accounts
The new broker will want to consider three possibilities.
Ans: Purchasing an existing real estate business, purchasing a franchise office
or a start up from scratch
Pretest - Stuvia US
