Exam Review

Question 1

What type of agency relationship does the broker – sales agent have?

Answer 1

General agency

Question 2

Under special agency, what can the broker not do to the client?

Answer 2

Broker cannot bind Client

Question 3

What must a licensed sales agent have to engage in real estate brokerage activities such as listing and selling properties?

Answer 3

Agent must have a sponsoring broker

Question 4

Sales agents are _______ agents of their brokers?

Answer 4

General

Question 5

One of the many responsibilities sales agents owe to their brokers is that agents must _____________.

Answer 5

Comply with all contracts

Question 6

Licensed brokers often choose to work with other brokers as _____________

Answer 6

Broker associates

Question 7

Who can receive a commission?

Answer 7

Only Brokers

Question 8

Who is responsible for using TREC – promulgated forms or forms approved by TREC?

Answer 8

AGENTS

Question 9

This occurs when a real estate agent acts as both the listing agent and the buyers agent. . .

Answer 9

Dual agency

Question 10

Guiding clients to or away from neighborhoods or certain areas due to race, religion, or other protected classes is the practice of ______?

Answer 10

Steering

Question 11

Having a competency in the geographic location, where an agent may practice is called?

Answer 11

Geographic competency

Question 12

A written plan outlining the steps, approaches, and resources that will be used for fill objectives is an ________?

Answer 12

Action plan

Question 13

A venture that is owned by one individual is called a __________?

Answer 13

Sole proprietorship

Question 14

What would a business owner in a limited partnership do if his ownership assets gave rise to liability exposure?

Answer 14

He would not serve as General partner of the partnership rather form another business entity, such as a limited liability company or corporation to serve as the general partner of the partnership. Shielding him from personal liability, shielding him from personal liability.

Question 15

Texas LLC’s are formed by filing articles of organization with whom?

Answer 15

Texas Secretary of State

Question 16

A good tip for naming your brokerage would be to?

Answer 16

Research state laws

Question 17

Flat fee brokerages are often called _____?

Answer 17

Discount brokerages

Question 18

What are the four phases of the real estate cycle?

Answer 18

Growth
Equilibrium
Decline
Revitalization

Question 19

A key indicator for market analysis in real estate development is

Answer 19

Housing starts

Question 20

Factors restricting supply of real estate are

Answer 20

Land cost
Construction cost
Taxation
Economics
Local government building codes and zoning ordinance

Question 21

The demand for real estate is affected by ______?

Answer 21

Personal preference for an area is important

Question 22

Under the SWOT Analysis, what represents certain factors in the external environment, opposing threats to a competitive edge.

Answer 22

T - threats

Question 23

The CANON stating that the license holder has a special obligation to exercise integrity in the discharge of the license holders responsibilities is?

Answer 23

Integrity

Question 24

What must a broker do if he wishes to terminate a sales agent sponsorship?

Answer 24

He must do so in writing and return the license to the Texas real estate commission immediately

Question 25

How can an agent remember the fiduciary duties to clients? OLDCAR

Answer 25

Obedience Loyalty Disclosure Confidentiality Accounting Reasonable care

Question 26

How often must a broker/agent need to update any download of the do not call registry?

Answer 26

At least every 31 days

Question 27

What statue provides at the sender’s message must contain clear and conspicuous notice that the message is an advertisement or solicitation?

Answer 27

CAN-SPAM

Question 28

To whom does Familial status protection apply to?

Answer 28

Pregnant women and anyone securing legal custody of a child under 18

Question 29

Under what condition is housing for older person’s exempt from the prohibition against Familia status discrimination?

Answer 29

If HUD has determined that is specifically designed for an occupied by elderly persons under federal state or local government program or It is occupied solely by persons who are 62 or older Or It has at least one person who is 55 or older and at least 80% of the occupied units and appears to a policy that demonstrates an intent to how persons who are 55 or older

Question 30

The individual who, through a series of uninterrupted, activities or actions, brought about the completion of a contract is the _______?

Answer 30

Procuring cause of sale

Question 31

What form does the agent received from the broker that will show the sum of the payments receive from the broker during the tax year?

Answer 31

1099-NEC

Question 32

The cost of each associate is known as the ________?

Answer 32

Desk cost

Question 33

What should one look for when deciding to recruit buyers agents?

Answer 33

Accredited buyers representation (ABR) designation

Question 34

One task unlicensed agents may do is _______?

Answer 34

Schedule appointments

Question 35

If an agent decides to hire their own personal assistant, who is responsible for compensating them?

Answer 35

The agent is responsible

Question 36

The recipe for success in real estate sales is _______

Answer 36

Activity + consistency = production

Question 37

What should you know about your geographic farm?

Answer 37

Average days on market Current inventory Absorption rate Average sales price

Question 38

What are the three categories of time?

Answer 38

Income generating activities Support activities Personal time

Question 39

A type of equity financing that exchanges interest in the company for funding is called ___________

Answer 39

Venture capital

Question 40

Expenses that stay the same for month-to-month like rent or mortgage payments are called_____?

Answer 40

Fixed expenses

Question 41

Utilities, marketing, and advertising are example examples of what type of expenses?

Answer 41

Variable

Question 42

The brokerage’s total income before expenses is called __________?

Answer 42

Gross income

Question 43

What are the 4P’s of marketing?

Answer 43

Product Price Place Promotion

Question 44

In today’s marketing lingo, what is necessary to make a one brokerage stand out as unique or superior to another

Answer 44

A unique selling proposition

Question 45

The type of marketing calling for agents to be empathetic and understanding of the feelings and emotions of others is called_______?

Answer 45

Connecting with Pain points or Pain point marketing

Question 46

One of the most common marketing channels includes _______?

Answer 46

Direct marketing

Question 47

Under TREC advertising rules and alternate name is also known as _______

Answer 47

An alias

Question 48

What must be included with each advertisement in a readily noticeable location in the advertisement?

Answer 48

The name of the license holder or team placing the advertisement The broker’s name in at least half the size of the largest contact information for any sales agent, associated broker, or team name containing the advertisement

Question 49

As it relates to the information about brokerage services notice what must each license holder provide?

Answer 49

A link to the IABS notice in a readily noticeable place on the homepage of each business website “Texas real estate commission information about broker services “ in 10 point font “Trec information about brokerage services” In 12 point font The completed IBS notice at the first substantive communication as required

Question 50

Which type of communication tends to be more short-term, structured, and performance oriented?

Answer 50

Coaching

Question 51

What type of management style puts the need to the team above the needs of the company?

Answer 51

Servant

Question 52

What type management style is authoritative assuming total control?

Answer 52

Autocratic

Question 53

What type of management structure is the traditional and most common business structure?

Answer 53

Hierarchical structure

Question 54

What type of evaluation occurs at predetermined intervals such as monthly?

Answer 54

Incremental evaluation

Question 55

What are the policies and procedures adopted by the business owners and managers to track, report, and manage a company financial activities called?

Answer 55

Internal financial controls

Question 56

What encompasses records and document management and retention digital asset management, Web content management, data disposal, learning management systems, and other aspects of information?

Answer 56

Information management

Question 57

What are some ways savvy real estate professionals find to increase their income to ensure the longevity of their businesses?

Answer 57

Increase sales revenue Expand the business

Question 58

Sometimes called “true growth”, this involves expansion through the companies resources, such as energy, personnel, creativity, and reputation?

Answer 58

Organic growth

Question 59

This refers to adding new businesses from the outside to produce company growth?

Answer 59

Inorganic growth

Question 60

A form of inorganic growth that occurs when two or more companies unite and combined their assets

Answer 60

Merger

Question 61

Another form of inorganic growth that involves acquiring another brokerage by one company buying another company wholesale is

Answer 61

Acquiring for acquisitions

Question 62

When the owner decides to enlarge the company by adding branch offices, this is known as________

Answer 62

Horizontal expansion

Question 63

When the owner needs money for start up cost, this is known as_______

Answer 63

Venture capital