Texas Real Estate Brokerage Exam: Questions and Answers, Exams of Real Estate Management

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TEXAS SAE Real Estate Brokerage exam

with answers

BROKER OWNER RESPONSIBLITIES - ** VERIFIED ANSWERS ** ✔✔ 1.

Responsible for every liscnesee holder in the brokerage (supervisory)

2. Training/education
3. License maintenance
4. Make sure they don't violate laws (legal)
5. Profitability of the company (fiscal). BROKER OWNER REWARDS - ** VERIFIED ANSWERS ** ✔✔ 1. % of commissions
6. Ownership control
7. Training of licensees
8. Equity Interest THREE TYPES OF BROKER OWNERS - ** VERIFIED ANSWERS ** ✔✔ 1. Active brokers who also manage
9. Managing brokers only
10. Hire a managing broker The projected job growth rate percentage for real estate brokers, and licensees in general, over the next several years is ____________ PERCENT - ** VERIFIED ANSWERS ** ✔✔ 7% Job growth for real estate licensees is predicted to increase by _________ percent between 2016 and 2026, which is about the average for most careers. - ** VERIFIED ANSWERS ** ✔✔ 6%

PREDICTIONS FOR 2020-2021 - ** VERIFIED ANSWERS ** ✔✔ 1. Freddie Mac: A slight (0.5%) leveling off of home prices followed by a rise in late 2021

2. Zillow: House price drop in late 2020, followed by a slow recovery by late summer 2021
3. Zillow: 50-60% decline in home sales from pre-coronavirus levels in 2020, returning to baseline by the end of 2021
4. National Association of REALTORS®: Housing prices are becoming even less affordable horizontal expansion - ** VERIFIED ANSWERS ** ✔✔ The growth of your business through existing or similar services and methods, or through adding services to an existing clientele. The three primary types of horizontal expansion are: - ** VERIFIED ANSWERS ** ✔✔ 1. Geographic: This could mean opening new offices in more locations to expand territory, or including the use of various business networks and services, such as MLSs or franchising.
5. Sector: If your firm currently focuses on the residential market, consider expanding to commercial, industrial, or agricultural sales.
6. Service: This includes generalized or specialized services, such as niche marketing or expanded agency services. Geographic expansion - ** VERIFIED ANSWERS ** ✔✔ Increasing the market area you target for business by either opening up a new office or branch in another location or widening the area you currently serve. Examples -
7. Identify potential growth or redevelopment areas.
8. Focus marketing and networking efforts on a larger selected market area.

An acquisition or merger - ** VERIFIED ANSWERS ** ✔✔ This is the purchase or agreement between two companies to operate jointly under a single corporate entity Agency - ** VERIFIED ANSWERS ** ✔✔ Delegated authority to act on a client's behalf in a real estate transaction. Consumers have many different brokerage representation options for agency relationships. EBAs, or exclusive buyer's agents - ** VERIFIED ANSWERS ** ✔✔ A broker must analyze the market, services offered by the competition, and consumer needs. The brokerage could offer open or exclusive listing or exclusive agency agreements for sellers. It could decide to work exclusively with buyers. Brokerage Representation Options - ** VERIFIED ANSWERS ** ✔✔ - Seller agency

• Buyer agency
• Dual agency (with consent)
• Non-agency (transactional brokerage)
• Designated agency Exclusive Right to Represent - ** VERIFIED ANSWERS ** ✔✔ This is the highest level of representation. The agent named on the agreement is assured of a commission if the buyer locates a property within the term of the agreement. Exclusive Agency - ** VERIFIED ANSWERS ** ✔✔ Buyers are represented by a single brokerage, but reserve the right to self-represent. If the buyer's broker or any other broker locates the property, the buyer's broker earns a commission. If the buyer finds the home, the broker receives no commission.

Open Agency - ** VERIFIED ANSWERS ** ✔✔ This allows a buyer to work with several buyer representatives (or to self-represent). Only the brokerage that completes the transaction receives a commission. This gives the buyer flexibility, but limits the amount of representation the buyer receives from any one professional. Dual and Designated Agency - ** VERIFIED ANSWERS ** ✔✔ Can help a brokerage grow by taking advantage of both sides of a single transaction; however, it's not without risk. Dual agency (with consent from both parties) is prohibited in some states. Most states do allow designated agency. Non-Agency - ** VERIFIED ANSWERS ** ✔✔ Brokerages that don't want to assume any risk associated with agency services may opt to offer non- agency. Non-agency is also known as transactional brokerage. A non-agent treats all parties as customers and represents no one. This allows a licensee to take on less risk when assisting buyers and sellers, while still maintaining an acceptable level of service for each. Sometimes these services are limited to listing properties on an MLS or acting as a neutral go-between for buyers and sellers Agency Disclosure - ** VERIFIED ANSWERS ** ✔✔ Whether dual agency, designated agency, or non-agency is offered, disclosure of agency options and the duties required for each should be provided in an agency disclosure agreement with the consumer Special Agents - ** VERIFIED ANSWERS ** ✔✔ Sub-agent: A sub-agent works under another agent with the principal's permission to perform some of the acts of agency. Agents are also sub-agents of their broker. Dual agent: Dual agents represent both the buyer and the seller in the same transaction. Dual agency with designated sales agents: In some transactions, a brokerage will represent both parties in a transaction, with one agent

What will most likely impact an investor's ability to develop a new real estate project in a particular area? - ** VERIFIED ANSWERS ** ✔✔ Presence of wetlands If the responsible parties refuse to clean up hazardous contamination, the EPA can hire its own contractors and seek damages in court for _____. - ** VERIFIED ANSWERS ** ✔✔ Up to three times the actual clean-up costs