Unit 5: Specialization

According to the National Association of REALTORS®, what percentage of real estate agents specialized in property management in 2016?

6%

Which of the following designations is NOT relevant to property management?

ABR: Accredited Buyers Representative. Certified Property Manager (CPM) Accredited Residential Manager (ARM). Real Property Administrator (RPA)

What are some basic areas of knowledge that sales agents should have in order to be involved in the farm and ranch land real estate specialty?

Basic understanding of agricultural production and farm markets

commercial broker

Brokers that specialize in business property, including offices, shopping centers, stores, theaters, hotels, industrial parks, and parking facilities.

farm and ranch or land sales broker

Brokers that specialize in farms, timberland, pastureland, ranches, and orchards.

residential broker

Brokers who deal in property used for housing, including small city lots, acreage, and single family and multifamily units in urban, suburban, and rural areas

Gloria Jones has just obtained her sales agent license. She wants to concentrate on apartment management. Which of the following designations might Gloria wish to obtain to specialize in that area?

CAM. The National Apartment Association has designations of Certified Apartment Manager (CAM) Certified Apartment Property Supervisor (CAPS) for agents who want to earn the certification. TAA stands for the Texas Apartment Association. ABR is the designation of an Accredited Buyers Representative. CRB designation is for a Certified Real Estate Brokerage Manager.

Gloria has a sales agent license. She wants to get a certification to do apartment management. What type of designation indicates competency in apartment management?

CAM. The National Apartment Association has designations of Certified Apartment Manager (CAM) and Certified Apartment Property Supervisor (CAPS). Also degrees in residential property management are available at a few Texas colleges and universities.

In what kind of business does a landman engage?

Conducting business activities related to oil exploration

Gloria Simms is a sales agent sponsored by Diamond Homes Realty, Inc., a licensed real estate broker. The designated broker for Diamond Homes is John Doe. Gloria procured a listing with the Simpsons to sell their home on the lake in Austin. Gloria also found a buyer for the house, the Williamsons, who live in Seattle. The home is not the Simpsons' homestead; it's a vacation home that they use during the summers. The listing agreement is a contract between which of the parties?

Diamond Homes and the Simpsons

Gloria is a sales agent who wishes to specialize in REOs. What should she have knowledge of in order to be considered competent to specialize in these types of real estate transactions?

Financing and investment principles Properties owned by lenders and government agencies under a process whereby they take possession of properties that fail to sell at a foreclosure auction for at least the amount owed by the borrower are called REOs. Agents who specialize in these kinds of lender-involved transactions must have a good grasp of *financing, investment, tax, and valuation principles*. In addition, they must know how to *negotiate* with lenders.

Joan is a sales agent who recently obtained her license. She is sponsored by Ace Realty. Ace should ensure that Joan has knowledge of which of the following in order to ensure that she is competent to do property management?

Landlord-tenant laws

A sales agent wants to become competent in commercial leasing. Knowledge of which of the following is important?

Local zoning laws

Jane Nieto is a relatively new sales agent sponsored by Triple A Realty. Jane is authorized to do residential and commercial sales and leasing. Jane's new client, Sonic Drive-Ins, is looking to purchase raw land to build a new restaurant. Triple A should ensure that Jane is competent in which of the following areas to properly represent her client?

Local zoning laws Real estate investment principles Real estate financing principles Commercial brokers should have knowledge of *real estate investment and financing principles* because understanding the income-producing potential of commercial properties is key to representing clients in the commercial market. In addition, agents specializing in commercial real estate should have a proper understanding of *local zoning laws and commercial property valuation principles*.

Sylvia Gomez is a licensed sales agent sponsored by West Texas Realty, a licensed brokerage firm in Midland, Texas. Sylvia is a new licensee, but she knows she want to focus solely on commercial sales and leasing. Jeannette Thomas is the designated broker for West Texas Realty. The firm advertises that its agents are experts in residential and commercial sales. Jeanette informed Sylvia in writing that she is authorized to do residential sales only for the first year. Six months later, Sylvia takes a commercial sales class and decides that she is now competent to do commercial sales. Although she asks Jeanette to revisit her authorized activity, Jeanette has not yet made a decision. Is West Texas Realty responsible for Sylvia's actions if a commercial buyer files a complaint against her with TREC?

No, Jeanette has limited Sylvia's to residential sales.

Do real estate educators need to have a broker-level real estate license to teach in Texas?

No, a real estate license is not required to be a real estate educator.

Stan Smith is a licensed broker who is associated with Capital City Realty, a licensed brokerage firm in Austin. Stan has been licensed for 35 years—33 years as a sales agent and 2 years as a broker. He has handled all kinds of real estate transactions, but for the past 3 years has only done residential sales, since having a massive stroke. Jenna Lewis is the designated broker for Capital City. Capital City sells and leases both residential and commercial properties. Is Jenna required to tell Ralph what kind of transactions he is authorized to do?

No, because Stan is a broker, the License Act does not require the firm to advise him of his authorized activities.

In Texas, what organization issues the license to become a landman?

None because no license is required.

real estate owned property

Property acquired by a mortgage lender through foreclosure.

Doug Jones is a real estate sales agent. He has been licensed for three years and has focused his work entirely in residential sales and leasing. Doug would probably be MOST competent to do which of the following?

REO sales

Justin is a new sales agent with a general knowledge of real estate principles. Gulf Properties is his sponsoring broker. Gulf has authorized Justin to do residential sales and leasing. Justin wants to do *commercial sales and leasing* as well. Gulf should ensure that Justin has knowledge of which of the following to be competent to do commercial sales?

Real estate financing principles

A sales agent wishes to practice in commercial sales. Which of the following matters should the agent have knowledge of in order to be competent in commercial sales?

Real estate investment principles

Which of the following real estate specializations matches landlords and tenants?

Rental locator

What does a sales agent who specializes in REOs need to have knowledge of?

That an REO is a lender-owned property that failed to sell at foreclosure for at least the amount owed by the borrower

Which governmental agency regulates escrow officers?

The Texas Department of Insurance

Before beginning to specialize in a specific discipline of real estate, from whom must the sales agent receive permission?

The sales agent's supervising broker

Jennifer Jones is a new sales agent sponsored by Capital City Realty, a licensed brokerage firm in Austin. Jenna Lewis is the designated broker for Capital City. Which of the following should Lewis advise Jones about when she starts working for Capital City?

The scope of Jones's authorized activities

What should sales agents understand about the resort industry?

Thorough knowledge of time-share sales rules and consumer protection

Time-share must

Time-share resellers must be licensed if such interests are sold within the state for someone else for a fee. A time-share developer must register a time-share plan with TREC if the plan is located in the state. A real estate license is not required if a time-share interest is sold directly by a developer. FALSE: Time-share sellers do not need to be licensed as a sales agent or a broker if such interests are sold within the state for someone else for a fee.

Stephanie is a new sales agent. She has taken all her core classes but still wants to become competent to do farm and ranch sales. Which of the following is NOT important for her to have knowledge of to be competent in farm and ranch sales?

Trade fixtures DO NEED TO KNOW: Agricultural exemptions Mineral rights Residential sales

A sales agent specializes in foreclosure sales. Knowledge of which of the following is NOT necessarily required to do foreclosure sales?

Trade fixtures DO NEED: Financing Valuation principles Negotiating with lenders

Devlin Davis is sponsored by Ready Realty. Devlin is a new licensee with no experience. Devlin, however, is confident in his ability to practice in all areas of real estate. He has convinced Everett Slade, Ready Realty's designated broker, to authorize him to have no limitations in his practice. Devlin, in his first month as a sales agent, fails to properly handle an option fee in his first transaction, which is a residential sale. Everett tells Devlin that he needs to take additional education and specifies what courses Devlin must take if he wants to keep his unfettered authorization. Can Everett do this?

Yes, Everett can require Devlin to get more education.

Mary just got her sales license. She has no experience in Texas, but she does have some experience managing her own properties in New York that she owns as real estate investments. Can her sponsoring broker limit her ability to do property management for third parties?

Yes, a sponsoring broker can limit Mary's authorized activities to certain areas.

Heather Galvez is a licensed sales agent sponsored by Gulf Coast Realty, a licensed brokerage firm in Houston, Texas. Heather is a new licensee, but she knows she want to focus solely on commercial sales and leasing. Justin Romer is the designated broker for Gulf Coast Realty. The firm advertises that its agents are experts in residential and commercial sales. Justin informed Heather in writing that she is authorized to do residential sales until she takes a class that focuses on commercial brokerage. Six months later, Heather takes a commercial sales class and asks Justin to authorize her to do commercial sales. Justin has not yet made a decision, but Heather signs on a new commercial listing with Greenlawn Industrial Development anyway. Justin reviews the listing contract through the normal course of business. Is Gulf Coast Realty responsible for Heather's actions if Greenlawn files a complaint against her with TREC?

Yes, because Justin is aware of the commercial listing contract with Greenlawn

Joan Jettson is a residential rental locator in Houston. Joan works for several apartment complexes in the downtown area. Does Joan need a real estate license?

Yes, because she negotiates leases for the complexes she does business with

A professional estimate of a property's market value or opinion of value, based on established methods and using trained, professional judgment, is performed by

a real estate appraiser.

property development

business that includes the work of land developers and subdividers who purchase raw land, divide it into lots, build roads, and install utilities. It also involves builders and architects who plan and construct the houses and other buildings, which are then sold.

Auctioneers

conducts the sale of property by competitive bid using any method, format, or venue; licensed by the Texas Department of Licensing and Regulation.

What is the typical employment status for a residential rental locator?

independent contractor.

When a warehousing company relocates to a new city, company executives would likely contact a real estate agent specializing in which classification of real estate to assist with finding a suitable building for the warehouse?

industrial. Warehouses, factories, and land in industrial districts are classified as industrial real estate.

A sales agent specializes in short sales. Of which of the following should the sales agent have a good grasp?

negotiating with lenders. Agents who specialize in short sale transactions must have a good grasp of financing, investment, tax, and valuation principles. In addition, they must know how to negotiate with lenders. Knowledge of commercial valuation principles is not necessarily required for short sale transactions.

Brian Belson is a licensed sales agent sponsored by Gulf Realty, a licensed brokerage firm in Galveston. Brian has been licensed for six years. He has handled all kinds of real estate transactions, but for the last 3 years has only done residential sales. Jenna Lewis is the designated broker for Gulf. Jenna has informed Brian that he can only do residential sales. Brian has decided to advertise on his website that he is available to do property management for vacation rentals, as well as residential sales and leasing. Is Gulf responsible for Brian's actions if one of his property management clients files a complaint against him with TREC?

no, Jenna has limited his authorized activities to residential sales. Although not required to directly supervise a sales agent, the sponsoring broker is responsible for the authorized acts of the sponsored sales agent, unless the broker has limited or revoked such activities in writing.

petroleum landman

person who conducts business activities related to oil, gas, and mineral exploration.

real estate counselor

person who helps clients choose among the various alternatives involved in purchasing, using, or investing in real property

residential rental locator

person, other than the owner of the property or an onsite manager, who offers, for consideration, to locate a unit in an apartment complex for lease to a prospective tenant.

Property Management

real estate agent who operates a property for its owner.