Texas SAE Real Estate Brokerage

Dominic works for Omen Brokerage. He's responsible for supervising the activities of licensees and unlicensed employees at the office. In which staffing category does his position fall?

Manager

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

Mediation

Lena's buyer client Mindy is making an offer on Joe's house. Which party decides how much earnest money to offer?

Mindy

Which option is of the most concern to licensees and advertising when it comes to the Federal Trade Commission?

Misleading ads

What feature of a computer system enables teleconferencing?

Networking

Five competing brokerage firms in the same area agreed to cooperate in setting a standard commission rate for the area. This makes them guilty of a per se antitrust violation. What is a per se antitrust violation?

No intent needs to be proven

Matt is an unlicensed personal assistant. He may ______.

Place advertising approved by the broker

Because there's likely to be some ______ when companies merge, the transition plan should address retraining and retaining over dismissal and should be established before the merger occurs.

Redundancy

Rochelle's firm is concerned about its licensees being attacked during showings. Which of the following is the mostly likely source of risk?

Safety

Which of these is an action a broker should take after a sales meeting?

Send out a recap of the key points from the meeting to all associates

Janine took a photograph of a lovely, sweeping estate and, with the approval of her broker, wants to use the photo as her logo. Which of the following would a graphic artist indicate is the primary concern?

The complexity of the image

Which of the following is considered a key factor in driving the real estate market?

The economy

Which is most closely related to the dramatic increase in the number of touches you must have in order to be remembered by your target audience?

The general bombardment of messages everyone receives daily

The Brendon Group is evaluating a new market and wants to know the market's cultural composition. That's likely because _________.

The more a brokerage knows about its market, the more easily it can serve it

Marsha is reviewing a market analysis to help her determine the location of her new brokerage office. What data should she look for?

What current tenants pay for rent and utilities

James is placing a listing ad for a soon-to-be-built expensive home in a gated community. He includes the words "exclusive" and "ultra-conservative community" in his ad. Is James in danger of violating fair housing law?

Yes, because it implies that the listing is suitable only for a particular type of buyer.

Vertical expansion

expanding your brokerage's current operations to encompass complementary services. often riskier than horizontal growth because it may require expertise that the business doesn't already possess.

opportunities

external facts or situations that you may use as a guide to achieve your goals. It takes research and experience to recognize the potential around you.

vision statement

focuses on the future (what the company's future results, achievements, and successes will be) and includes a clear picture of outcomes you expect to achieve using clear, unambiguous terms.

mission statement

focuses on the present and provides a clear picture of your brokerage's purpose (i.e., it's "why"), including what it stands for and how desired outcomes will be achieved.

contingency

future occurrence that can't be predicted with certainty. A contingency plan provides alternative ideas, options, strategies, and resources for when unanticipated events or situations occur.

Current trends in real estate

greener homes, mixed-use developments, increased density, and senior housing. new business models, reliance on technology, and niche marketing.

Horizontal expansion methods

widen the audience for services already provided, and may include geographic, sector, or service expansion.

Geographic expansion

widening exposure through networks or listing services, or physically opening a new office location.

market segments

Locations, cultures, generations, professions, alternative markets, property types, or even lifestyle choices

Rita, the owner of Advantage Realty, wants her brokerage to give clients an impression of a boutique agency where salespeople work as a smoothly functioning unit to achieve clients' goals. What is her best strategy for achieving this?

Maintain a small staff of carefully chosen licensees who can work together successfully.

Samantha is a numbers person, and she's determined that for every 100 sales contracts her licensees write, 12% will have some sort of error. Relating this to risk analysis, what does this number represent?

Likelihood of occurrence

non-agent

A non-agent is a transaction broker or facilitator. No agency relationship exists.

When a sales contract doesn't cover the terms needed by the parties, which of the following actions is a licensee allowed to take?

Add a standard addendum using standard language.

Select the risk that is more industry-specific rather than general in nature.

Violation of fiduciary duties

limited agent

An example of a limited agent is an escrow officer, who has limited agency representation with the party.

What's the best definition of a direct expense?

An expense that wouldn't exist if no sale had been made

Carmen's original one-year commercial lease has ended, and now, with her landlord's permission, she has gone into a month-to-month lease situation. What type of clause was in the original lease agreement that enabled this situation to occur?

Automatic renewal

Which of the following is an industry trend that a brokerage should track?

Average days on market

A small brokerage isn't required to comply with anti-discrimination laws enforced by the Equal Employment Opportunity Commission, but it still has strict policies in its brokerage manual regarding discriminatory behavior at the brokerage. Why?

Because other state and federal laws, beyond those enforced by the EEOC, can put the brokerage in legal trouble if discrimination occurs there

Why are managers at a brokerage usually salaried employees?

Because their activities support the work of others rather than generating revenue directly

Which of the following economic indicators most closely relates to consumer confidence?

CCI

Why do most people move?

Change in employment

Vince's job at the brokerage is to greet customers and clients who walk in, answer the phone, and direct people to an agent. In which staffing category does his position fall?

Clerical/administrative

Reese and his staff have developed an engaging, action-oriented listing presentation to present to potential sellers. Which component in the marketing model does the listing presentation represent?

Communicating

Which of the following acts protects Texas consumers against real estate licensees who use false, misleading, or deceptive actions or practices in the advertising, offering for sale, selling, or leasing of personal property or real property?

DTPA

The Occupational Safety and Health Act primarily addresses the rights of which classification of employees?

Employees

Minimum wage requirements for employees are established in the federal ______.

Fair Labor Standards Act (FLSA)

Learning how to create ______ is an essential skill for licensees as part of business planning.

Goals and benchmarks

Which of the following is a lagging economic indicator?

Gross domestic product

Rich is a sole proprietor who has no staff. If he grows his business to a four-agent firm, which of the following can he expect?

Increased revenue

A fixed expense ______.

Isn't impacted by sales

Which of these is an advantage of external recruiting for management positions?

It avoids the distraction of individuals within the firm competing for the same position.

Which option best describes what an environmental impact statement is?

It describes and analyzes a proposed action that may have a significant effect on the environment.

Which of the following describes a benefit of a long-range plan?

It provides a strategic method for accomplishing set business goals.

What's a downside for a brokerage that opts for a national affiliation?

Less decision-making authority

Sector expansion

expanding offerings to more additional areas of real estate (e.g., commercial, farming, etc.).

General Agent

One who is authorized by a principal to represent the principal in a specific range of matters. ex. property manager

Under what conditions can a licensee contact sellers who are under an exclusive listing agreement with another agent?

Only to arrange a showing to a buyer

You're a broker, and lately you've noticed that three of your licensees seem to be constantly sniping at each other. It's affecting everyone at the brokerage. What should you do?

Talk to them each individually to clarify the situation.

Which of the following is a true statement about a brokerage's building safety?

Tall hedges near the entrance pose a problem.

Sam and Monique knew that the old industrial site that they purchased needed some environmental cleanup, but they don't have the cash and put cleanup on hold. The EPA hired its own crew to deal with groundwater issues because of industrial solvents and billed Sam and Monique $164,000 when the job was complete. If Sam and Monique don't pay the bill, which one of the following could happen?

The EPA can seek damages in court for up to three times the actual cleanup costs.

Why should a business owner evaluate the competition's affiliations?

To determine what help or hindrance the association provides

What is the purpose of strategic business planning

To help reach the business goal by determining the method by which the goal can be achieved

Why should a business evaluate its competition?

To understand its strengths and weaknesses

The Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) protects consumers against real estate licensees who ______.

Use lies, misrepresentations, fraud, or other deceptive practices or acts to advertise or sell real estate

A ____ breaks a more general budget line item into details, making it easier to use in guiding business operations.

Variable expense budget

Sari, a licensee for Tynan Realty, is placing a listing ad in the Presbyterian Outlook. Is this a potential fair housing violation?

Yes, unless she also places the ad in publications that reach a broader market.

Who has the most valuable information about your firm's operations to assist in identifying potential risk?

You and your staff

When working with new licensees, what's the main advantage of having a physical office space?

You can spend more time with employees.

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

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.

Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. What kind of agent is David acting as in this scenario?

a dual agent

business objectives

align with the mission and state what the company will focus on to fulfill its mission, and to set the priorities during the plan's defined timeframe.

A limited liability company (LLC)

combines the benefits of pass-through profit and loss with a legal shield for the owners from personal liability.

organic growth

continuing growth of a business through the gradual adoption of new services and increases in market share.

CERCLA

established in 1980 as a Superfund to respond to spills that may endanger the public health or the environment, and to clean up abandoned or uncontrolled hazardous waste sites.

Market analysis

evaluating local market conditions and indicators, the competition, the regulatory environment, and the demographic market and its needs.

Business Plan Components

executive summary, market analysis, company description, mission statement, description of products and services, goals, objectives, strategies, financial plan, and appendix.

What impact do marketing efforts have on sales?

indirect

inorganic growth

is the rapid growth of a business through the acquisition of or merger with another company.

long-range plan

is there to remind you of your end goal and the strategic route to get there. Long-range plans typically range three to five years. review on a regular basis, perhaps quarterly, in order to update it according to current business settings and projections.

The responsibilities of a broker-owner

managing and training people, ensuring licensees maintain their licensure and don't violate any laws or regulations, and ensuring the company's profitability.

The rewards of being a broker-owner

ownership control of the firm, equity in the company, and sharing associated licensees' commissions.

market indicators

price levels, vacancy rates, new building permits, inventory turnover rates, and sales volume.

special agent

real estate. This means the scope of the authority is restricted to the property transaction.

Most brokerage managers are ______.

salaried

Business plan

sets the foundation for your business and is the basis for objectives, goals, strategies, and tactics. All decisions must be aligned with the business plan to ensure the company remains on course. builds credibility with people outside of the company who will use your business plan to determine whether or not they'll do business with you. starts with a mission and vision, which set the foundation for all of the other elements of the business plan.

SMART

specific, measurable, attainable, realistic, and timely.

SWOT

strengths, weaknesses, opportunities, and threats. It's a common tool businesses use to develop their strategies.

There are three levels of liability under CERCLA:

strict (owner is liable), joint and several (each responsible party is liable), and retroactive (current/prior owners are liable).

economic indicators

the housing market, GDP, CPI, CCI, and retail and food service sales (MARTS).

executive summary

the plan's synopsis, covering company history, financial information, activities, market position, distinguishing features and services, and a convincing argument for the plan to be put into action.

tactical planning

the way in which a company and its personnel will go about achieving the strategies tied into the company's goals to help it reach its objectives.

long-range plan use

used to determine your company's work plan for the year. Long-range goals can be divided into annual goals to accomplish throughout the timespan of the long-range plan. basis for the company's business plan each year. Owners and the managers can use the business plan throughout the year to monitor the company's progress.