Champions BROKERAGE SAE - CH 1

less risk equals lower returns.

A general premise in investing - any kind of investing - is that less risk equals lower returns.

joint venture

A group of individuals who have joined together for a single business venture

National Association of REALTORS

Disciplinary action could include: • A reprimand, • A fine, • Probation, • Suspension of membership, • Revocation of membership, or • Any combination of the above actions. The panel will advise the parties of any rights to appeal the decision.

DECEPTIVE TRADE PRACTICES AND CONSUMER PROTECTION DTPA

Goods — are defined as tangible chattels (real property is tangible when purchased or leased. Under DTPA, the sale of a house is considered a good). • Services — means work, labor, or repair of goods. Brokerage is a service. • Consumer — an individual, corporation, partnership, or government source who seeks to acquire or purchase the goods or services.

6 months to 2 years' worth

How much cash reserves do industry experts recommend new brokerages have available for operating expenses?

INTEGRITY

INTEGRITY A real estate broker or sales agent has a special obligation to exercise integrity in the discharge of his or her responsibilities, including employment of prudence and caution so as to avoid misrepresentation, in any way, by acts of commission or omission.

REAL ESTATE LICENSE LAW

If a broker wishes to terminate a sales agent's sponsorship, it must be done in writing, and the license must be returned to the Texas Real Estate Commission immediately

AUGMENTED REALITY

Like virtual reality, augmented reality (AR) provides a modified view of reality for the user.

limited partner

Limited Partners - The limited partner's liability is limited to the amount he or she invested in the partnership. The limited partner has no involvement in the day-to-day operation of the business. The limited partners are the investors in the venture.

Securities Act of 1933

Securities Act of 1933 - prohibits deceit in the sale of securities and provides for the complete and accurate disclosure of all information to potential investors.

Millennial Generation

are poised to take over as the leaders of industry. Millennials are tech savvy, urban focused, and extremely motivated and entrepreneurial.

Statutory defenses

arise out of law

National Association of REALTORS

associations receive complaints alleging ethics violations against their members. Such complaints can be directed to the local association to which the member belongs. Typically, a grievance panel will conduct an initial review to determine if the complaint alleges a violation of the organization's code of ethics.

board of directors

Board of Directors to oversee the affairs of the corporation

DBA

Doing Business As

Disruption of business, in the conventional sense, has been perceived to be a negative occurrence, often resulting in lost sales and profits.

"disruption".

FIDELITY

*primary duty of the real estate agent is to represent the interests of his or her client. * real estate agent be faithful and observant to trust placed in him or her. *real estate agent place no personal interest above that of his or her client.

TREC Minimum levels of service

1. Put the interest of the client above all others including the broker's own interests. 2. Inform the client of material information about the property or the transaction received by the broker. 3. Answer the client's questions and present any offer to or counteroffer from the client. 4. Treat all parties to a real estate transaction honestly and fairly

LIMITED LIABILITY PARTNERSHIP A general partnership may elect to become a limited liability partnership by filing a statement providing the following information:

1. The name of the partnership 2. The federal tax identification of the partnership 3. The street address of the principal office in Texas and outside the state 4. The number of partners at the date of application 5. A brief statement of the business in which the partnership engages

According to the U.S. Census Bureau , the largest age demographic in the country is those over_________ years of age. This demographic, by and large, will continue to have significant influence in all industries and markets. That said, those in the Millennial Generation are poised to take over as the leaders of industry.

65

limited partnership

A limited partnership in Texas is created by filing a certificate of limited partnership with the Texas Secretary of State. Limited partnerships do not pay Texas franchise tax. A limited partnership does provide limited liability to its limited partners such

partnership

A partnership is more easily created than a corporation, and can be created with a simple written or oral agreement. A partnership must have one or more general partners.

RESPONSIBILITY OF THE REAL ESTATE BROKERAGE

A sponsoring broker is required to create competency standards for supervised license holders

RESPONSIBILITY OF THE REAL ESTATE BROKERAGE

A sponsoring broker must maintain written policies and procedures to ensure that a sponsored sales agent is competent to conduct authorized activities

More slowly than

According to the Bureau of Labor Statistics, employment of real estate brokers and sales agents is projected to grow ___________ the average for all occupations.

Budget

According to the text, the three main categories that should be addressed during the planning phase are: operational planning, _____________, and time planning

REAL ESTATE LICENSE LAW

All licensed brokers must maintain a fixed place of business in the state.

REAL ESTATE LICENSE LAW

An active sales agent license may only be issued under the sponsorship of a licensed broker

Broker Associate

Broker Associate - a broker associated with and conducting all or part of his or her business as an agent of another broker.

Broker of Record

Broker of Record - may be the owner of the brokerage, or another broker who is hired for the position.

COMPETENCY

COMPETENCY It is the obligation of a real estate agent to be knowledgeable

CONSUMER INFORMATION

CONSUMER INFORMATION Each real estate inspector or active real estate broker licensed by the Texas Real Estate Commission shall display Consumer Protection Notice CN 1-2 in a prominent location in each place of business the broker maintains.

Analytics

Collect and track digital data from websites, apps and offline repositories

CoStar

Commercial real estate website similar to a residential MLS

CONSUMER INFORMATION

Consumer Protection Notice, labeled "Texas Real Estate Commission Consumer Protection Notice on your business website homepage, in a readily noticeable place in at least 10-point font.

DAMAGES

DAMAGES When a real estate license holder is sued, it tends to be due to an action under the DTPA. A lawsuit brought about under DTPA has the potential for treble damages if the trier of fact, whether judge or jury, believes that the agent knowingly or intentionally meant to deceive the consumer.

DBA

DBAs must be registered in the county in which the business is located as well as the state

DECEPTIVE TRADE PRACTICES AND CONSUMER PROTECTION

DECEPTIVE TRADE PRACTICES AND CONSUMER PROTECTION The Deceptive Trade Practices Act (DTPA) is a Texas law that was passed in 1973. It allows an aggrieved consumer to sue a seller of goods for damages.

DEFENSES

DEFENSES The State of Texas requires that most sellers of residential property provide a Seller's Disclosure of Condition of Property to a potential buyer.

due diligence

Due diligence is an absolute necessity. The more potential business owners can learn about an existing business, the more they will be positioned to make informed decisions.

Augmented Reality

Enhances the user's current perception and experience of reality

FIDELITY

FIDELITY A real estate broker or sales agents, while acting as an agent for another is a fiduciary. Special obligations are imposed when such fiduciary relationships are created

FBN

Fictitious Business Name

assumed name

If the business is conducted under an assumed name, the business owners must file an assumed name certificate and obtain an employer identification number from the IRS.

Informal Proceedings TREC

Informal Proceedings TREC is also required to adopt procedures governing informal disposition of contested cases. An informal disposition must provide the complainant and the license holder the opportunity to be heard.

REAL ESTATE LICENSE LAW

It is important to remember that the main focus of the Commission is to protect the public.

corporate officers

Officers who are responsible for the overall management of business operations

Personal Assistants

Personal Assistants - may be either licensed or unlicensed.

What is the PE

Price-to-Earnings ratio in comparison to other real estate brokerages for sale

Puffing

Puffing (puffery) is not misrepresentation. Puffing is marketing. Puffing uses adjectives and opinions rather than details or facts (The most beautiful landscaping).

REAL ESTATE LICENSE LAW

REAL ESTATE LICENSE LAW The Texas Real Estate License Act was passed in 1939. The purpose of the Act is to protect the public against unscrupulous brokers and sales agents

RESPONSIBILITY OF THE REAL ESTATE BROKERAGE

RESPONSIBILITY OF THE REAL ESTATE BROKERAGE A broker is required to advise a sponsored sales agent of the scope of the sales agent's authorized activities under the License Act.

Refund to Consumer

Refund to Consumer TREC may order a license holder to pay a refund to a consumer as provided by an agreement resulting from an informal settlement conference or an enforcement order, in addition to imposing an administrative penalty, suspension, revocation or other sanction.

Search Engine Optimization (SEO)

SEO (Search Engine Optimization) toolset that helps businesses improve their search visibility and improve their site rankings on the Internet.

STATUTORY DEFENSES

STATUTORY DEFENSES Statutory defenses are defenses that arise out of law (statute). Examples include: Anything WRITTEN

Sales Agent License Holder

Sales Agent License Holder - an agent of the sponsoring broker. They may do business only through their sponsoring broker.

Sales Associate

Sales Associate - a sales agent license holder associated with and conducting business as an agent of his or her sponsoring broker.

Sherman Anti-Trust Act

Sherman Anti-Trust Act - prevents any combination in restraint of trade. Commission rates must always be a matter of negotiation between the broker and the client. any hint that there is a "standard" or "going rate' for commissions in a given market area could be evidence of violation and restraint of trade. Any attempt to boycott a discount real estate broker is a violation.

shareholders

Stockholders who are the owners of a corporation

TREC Advisory Letter

TREC Advisory Letters When appropriate, TREC may close a complaint file by issuing an advisory letter to a license holder. This is generally appropriate in more technical matters, when the provision that was violated is new, or when evidentiary or procedural problems exist, such as the unavailability of witnesses

TREC Complaints

TREC Complaints A person may file a complaint with TREC against a real estate license holder if the person believes the license holder violated the Texas Real Estate License Act (TRELA). If TREC has jurisdiction over the complaint, it will typically investigate the allegations by interviewing the parties and witnesses and gathering relevant information. After review, TREC's enforcement division will notify the license holder if it intends to initiate disciplinary proceedings. After a hearing or other settlement procedure, it will render a decision.

brokers must maintain written policies and procedures that meet TREC minimum requirements

TREC Rules 535.2(i)

Teams

Teams - work with the broker behind the scenes. Team members could include marketing personnel, receptionists, and photographers.

Temporary Suspension TREC's

Temporary Suspension TREC's presiding officer, for a case involving a consumer, is required to appoint a disciplinary panel, consisting of three Commission members to determine whether a person's license to practice should be suspended temporarily. If the disciplinary panel determines that the license holder constitutes a threat to the public by continuing to practice, or the license holder constitutes a continuing threat to the public welfare, the panel will temporarily suspend that person's license.

Texas Free Enterprise and Anti-Trust Act

Texas Free Enterprise and Anti-Trust Act - prohibits any attempt to fix prices, limit competition by assigning market areas, or boycotting of discount brokers. An illegal boycott is an agreement among two or more competitors not to do business with another competitor for the purpose of inducing the other competitor to change its business practices. The state law is enforced by the Texas Attorney General.

National Association of REALTORS

The Code of Ethics is so highly regarded as a model for ethical conduct, that it became the basis for real estate license laws in many cases. In addition to the Code of Ethics, members may take advantage of tools such as marketing materi

REAL ESTATE LICENSE LAW

The License Act provides for two types of licenses to be issued, a broker license and a sales agent license

NAR

The National Association of REALTORS®, founded in 1908, is America's largest trade association, representing 1 million members. Membership is composed of residential and commercial REALTORS® who are brokers, sales agents, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry

Conduct for real estate license holders

The Texas Real Estate Commission has included the Canons of Professional Ethics and Conduct for real estate license holders in the Rules of the Commission.

Mission statement

The ___________ announces to the world what the company's long-term goals will be.

limited liability partnership

The company and its business assets are protected from any judgment creditors of its member.

ARTIFICIAL INTELLIGENCE

The concept of artificial intelligence (A.I.), at its most basic, is a way of describing intelligence exhibited by machines.

corporation

The corporation is responsible for its debts and torts, not the shareholders. The individual assets of the shareholders may not be used to satisfy the judgment of a creditor

general partner

The general partner is responsible for day-to-day operations of the business and has full liability. At least one general partner is required in a limited partnership. The general partner is most often the "promoter" who brought the limited partners into the venture

The general partner of a limited partnership

The general partner of a limited partnership is personally liable for the liabilities of the limited partnership.

MLS

The long-standing gold standard in data collection for real estate agents

mission statement

The mission statement describes the overall purpose of the organization. Mission statements tend to be more powerful when they not only describe the work the company does, but also the company's reasons for doing it.

franchise

The most common reason real estate brokers choose to join a franchise is name recognition

action plan

The written action plan will outline the steps, approaches and resources that will be used to fulfill the objectives.

operational planning

This aspect of planning encompasses the day-to-day operations

Transaction specialist/coordinator

Transaction specialist/coordinator - provides customer service by communicating with clients to keep them prepared for each step of the transaction. They handle the paperwork, making sure that the right documents and disclosures are used. Many clients look for brokerages that have in-house transaction specialists/coordinators.

values statement

Values statements help define how the work will be accomplished, and they articulate a set of beliefs and principles that guide the way the company conducts business.

syndicate

When two or more parties join together to create and operate a real estate investment it is called a syndicate.

Over 65

Which age demographic is the largest in the country according to the U.S. Census Bureau?

Illegal boycott

an agreement between competitors not to do business with another competitor in order to make him or her change business practices

CBA

certified business appraiser

Listing Agreement

employment contract between a seller and a broker

Real Estate Settlement Procedures Act (RESPA)

ensures that consumers throughout the nation are provided with more helpful information about the cost of the mortgage settlement and are protected from unnecessarily high settlement charges caused by certain abusive practices

Virtual Reality

following trends in real estate brokerage gives buyers the opportunity to tour properties from the comfort of their own homes?

Artificial Intelligence

intelligence exhibited by machines

sole proprietorship

is a venture that is owned by one individual

jargon, disruption means to break free from convention and shake up routines and habits, changing the way that a business has traditionally thought and behaved in the past in order to innovate. It is through disruption that new markets can be discovered, new products created, and new values established. Innovation through disruption can displace the more established firms that have long possessed the highest market share.

jargon, disruption

limited liability company

limited liability company (LLC) is formed by filing articles of organization with the Texas Secretary of State and is governed by the Texas Limited Liability Company Act.

Americans With Disabilities Act (ADA)

prohibits discrimination against those with disabilities by denying them the full and equal enjoyment of goods, facilities, accommodations, services and privileges.

Truth In Lending Act (TILA)

protects consumers by providing them with complete information regarding loans and the actual cost of borrowing, including interest and all other charges associated with the loan.

during periods of declining economic activity or rising interest rates, the amount of work for brokers and agents will

slow and employment may decline.

Goods

tangible chattel

Services

work, labor, brokerage