Real Estate Brokerage

Question 1

Remembering the acronym ______ can help you remember the fiduciary duties an agent owes to a client.

Answer 1

OLD CAR — which stands for obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care.

Question 2

Which of the following is true of a brokerage having a pricing policy for its associated licensees?

Answer 2

It’s permissible.

Question 3

The ______ is a purpose-driven organization propelled by a passionate combination of entrepreneurial spirit, cultural heritage, and the advocacy of its members.

Answer 3

National Association of Hispanic Real Estate Professionals (NAHREP).

Question 4

The ability to listen and look at the world from an employee’s or licensee’s point of view is a leadership quality known as ______.

Answer 4

Empathy.

Question 5

Ralph’s income statement for his firm showed a nice profit for the quarter. How can Ralph best use this information?

Answer 5

To compare to other quarters.

Question 6

What is the role of the Equal Employment Opportunity Commission?

Answer 6

To enforce anti-discrimination laws that cover most businesses with 15 or more employees.

Question 7

If online security is a concern, which of the following websites would be the safest?

Answer 7

https://www.google.com.

Question 8

A broker has a legal obligation to ensure that sales associates are properly trained in ______.

Answer 8

Any specialty area where the licensee is providing services to the consumer.

Question 9

Which one of the following statements is true about a sales contract that’s been signed by both parties, and both parties have been notified of its acceptance?

Answer 9

It’s a legally binding contract.

Question 10

A sales associate’s ability to work most effectively is affected by five factors. These are the physical and technical environment, communication, knowledge and skills, motivation, and ______.

Answer 10

Organizational effectiveness.

Question 11

When a website has an S in the “http” portion of the URL, such as: “https://www.google.com,” what does it mean?

Answer 11

It is a secure website.

Question 12

Sally can work from anywhere. With her username and password, she can access and update files on Google Docs, and she and her sales staff can share changes instantly. What kind of data storage is Sally using?

Answer 12

Cloud.

Question 13

A 100% commission plan is more often used with ______.

Answer 13

Experienced licensees.

Question 14

A brokerage has three employees: two part-time clerical workers and one full-time transaction coordinator. Which of these positions is covered by the minimum wage standards set by the Fair Labor Standards Act?

Answer 14

All three employees.

Question 15

Which of the following states what the organization is about and its reason for being?

Answer 15

The mission statement.

Question 16

Which generation will likely be in the home-buying market?

Answer 16

Any generation could be.

Question 17

Byron is an environmental engineer working for Smith Environmental Services, Inc. He’s currently working on a site assessment for an old hospital. Byron just sent soil and water samples to the lab that Smith uses for all of its testing. Which phase of the assessment process is Byron currently in?

Answer 17

Phase II.

Question 18

Budget, target audience, and media strategies are all elements of the ______ that licensees should learn about from their broker.

Answer 18

Personal marketing plan.

Question 19

Which generation is known as the social media generation?

Answer 19

Millennials.

Question 20

Mavis, a real estate broker who owns her own firm, would like to employ vertical expansion. She should _________.

Answer 20

Open a mortgage company.

Question 21

Most business plans include a synopsis of the plan as a whole, designed to be read by shareholders, lenders, and other third parties with an interest in learning about the organization. What is this synopsis called?

Answer 21

Executive summary.

Question 22

Julie wants to go into business and wants to make money immediately. Which of the following options would suit her best?

Answer 22

Purchase an existing business.

Question 23

Why is it important for tenants and owner/landlords to review the insurance section of a commercial lease?

Answer 23

Many times, the amount of insurance specified in the lease is higher than the amount a tenant actually carries, and higher than the amount the landlord actually requires.

Question 24

Increasing the size of one’s business ________ operations.

Answer 24

Complicates.

Question 25

Changes in the national market may have little (or significantly delayed) impact on local markets. This is because the real estate market is ______.

Answer 25

Slow to respond.

Question 26

If an individual acquires rights or liabilities automatically due to law, and not through an agreement or act of their own, this is known as ______.

Answer 26

Operation of law.

Question 27

There are three methods of dispute resolution: ______, arbitration, and litigation.

Answer 27

Mediation.

Question 28

Developing a compensation plan is a process that requires multiple steps. Which of the following steps should occur first?

Answer 28

Create a leveled structure that reflects knowledge, skills, and responsibilities for all positions in the organization.

Question 29

Which of the following scenarios is an example of a merger?

Answer 29

ABC Company and XYZ Company combined to expand operations, venture into new markets, and rival their competitors. The new company’s name is A2Z.

Question 30

This essential feature of a business computer system allows communication within a brokerage and teleconferencing to remote locations, and allows staff to share files and folders stored on their hard drives with each other.

Answer 30

Networking.

Question 31

One of the least expensive but most effective marketing techniques is to ______.

Answer 31

Provide superior service to clients and customers.

Question 32

Which of the following statements is true about regulatory oversight of antitrust cases at the state level?

Answer 32

The attorney general has the authority to act in parens patriae for the citizens and the state.

Question 33

You’re meeting with a party with whom you’re having a dispute. Someone is acting as a go-between and will make a recommendation at the conclusion of the meeting. What type of dispute resolution are you participating in?

Answer 33

Mediation.

Question 34

Which act created an agency to investigate antitrust practices?

Answer 34

Federal Trade Commission Act.

Question 35

Broker Allen just had a licensee leave work screaming obscenities and shouting about a dispute with another licensee. Allen needs to use one of his leadership qualities and act ______ to take care of the situation without undue delay.

Answer 35

Decisively.

Question 36

You’re representing a client in the purchase of a house. This client has a trust fund and can easily afford the house on which she’s made an offer. Which of the following statements is true?

Answer 36

Your duty of confidentiality to your client dictates that you not disclose her financial situation to the seller.

Question 37

The agricultural sales department has become responsible for generating enough revenue to cover 28% of overall budgeted expenses for the firm. What kind of budget will it create?

Answer 37

Profit center budget.

Question 38

Choice of advertising and marketing mediums should be based mainly on ____.

Answer 38

The target audience.

Question 39

Broker Zeke needs to schedule an exit interview with his now-former receptionist, Barb, whom he’d terminated after the office manager and licensees complained about her attitude and laziness. He’d tried additional training and coaching, but Barb’s behavior didn’t improve. Which of the following is a best practice Zeke should use?

Answer 39

Schedule her interview with Charlie, the HR manager.

Question 40

Which of the following is true about errors and omissions insurance?

Answer 40

It covers licensees sued by consumers for inadvertent mistakes.

Question 41

Economic indicators that you should evaluate to determine market health include GDP, CPI, CCI, and __________.

Answer 41

Retail and food services sales.

Question 42

The ability to assign tasks and let them go demonstrates which aspect of an effective leader?

Answer 42

Delegation.

Question 43

In which of the following situations is employment-at-will most likely operating?

Answer 43

Between Harvey Homes and its employee, marketing manager Al, who was hired six months ago.

Question 44

Shawna received loan proceeds. Why wouldn’t this appear on her income statement?

Answer 44

It’s not revenue.

Question 45

Rent and hazard insurance are examples of ______ expenses.

Answer 45

Fixed.

Question 46

Tyrone started a job in the sales department of a large firm. In an organizational chart, his department is shown alongside many others. Departments are run as teams with individuals at all levels responsible for making business decisions. What type of organizational structure is this?

Answer 46

Decentralized.

Question 47

Acme Realty and Ronco Realty are merging and need to create a transition plan. What’s the purpose of the transition plan?

Answer 47

To manage the merger more smoothly.

Question 48

Jen looks at the general operating budget and divides each line item by 12. These figures become the budgeted figures for the _____.

Answer 48

Monthly operating budget.

Question 49

Which of the following is one of the key decisions a brokerage makes when deciding how to staff the sales force?

Answer 49

The number of licensees to use.

Question 50

Which of these economic growth policies is most likely to benefit a real estate business?

Answer 50

A revitalization plan that subsidizes conversion of warehouses along the river into condominiums.

Question 51

It’s review time, and broker Holly has to suggest some improvements for her longtime friend, Pamela, who is the brokerage’s office manager. Holly would rather not have to deliver this less-than-outstanding review. What should she do?

Answer 51

Holly should tell Pamela the truth. It will make her a better employee in the long run.

Question 52

Which of the following statements best describes the purpose of a new worker orientation at a brokerage?

Answer 52

To welcome new people and help them get a good start.

Question 53

Which term means the expansion into residential, commercial, industrial, or unimproved land, among other options?

Answer 53

Sector expansion.

Question 54

What type of language should be used to write contracts?

Answer 54

Plain language.

Question 55

What is the purpose of a business contingency plan?

Answer 55

To provide alternative ideas, options, strategies, and resources in case unforeseen adverse conditions arise.

Question 56

Which of these scenarios would best be solved with short-term financing?

Answer 56

Your forecast shows that you won’t be able to fully fund operations in February and March, but the rest of the year looks great.

Question 57

Jasmine is in the market for a new property for her, her partner, and their young child. Tanner is Jasmine’s agent and has shown her several properties. Even though several properties meet the criteria his client is seeking, Tanner has intentionally weeded out properties close to the local college campus, because he doesn’t think the location would be suitable for a family with young children. What, if anything, has Tanner done wrong?

Answer 57

Tanner has discriminated against Jasmine using familial status as a reason for not showing her properties.

Question 58

Some MLS systems now allow licensees to include a building’s LEED certification level. This is an example of a response to which current trend?

Answer 58

Sustainability.

Question 59

What is market share?

Answer 59

A firm’s percentage of the overall market sales for a given market.

Question 60

Why shouldn’t managing brokers bend the rules for their licensees? Select the best answer.

Answer 60

The broker’s license is on the line.