Texas Real Estate RE 30Hours Part 4

Which of the following statements could indicate a price fixing violation? "My contract length is non-negotiable." "My listing agreements are generally 90-day contracts." "The MLS requires us to have at least 90-day listings." "With today's market conditions, we could expect the house to take two months to sell. Let's set a term of four months for our listing contract."

"The MLS requires us to have at least 90-day listings."

Which of these economic growth policies is most likely to benefit a real estate business? A plan to construct a freeway overpass through a residential neighborhood A revitalization plan that subsidizes conversion of warehouses along the river into condominiums A tax on small businesses to cover the rising cost of health insurance for employees Zoning ordinances that prohibit new buildings in a historic downtown district

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

What does the Federal Trade Commission regulate? Advertising Commission disbursements Federal real estate transactions Listing trades

Advertising

Which statement most accurately describes a licensee's responsibility related to written offers on their listing, according to the NAR Code of Ethics and Standards of Practice? A licensee is only required to present formal written offers that are equal to or more than the listing price. A licensee is only required to present formal written offers within a certain range of the listing price of the property. All formal written offers received by the licensee must be presented to the owner, unless the owner has accepted a previous offer. All formal written offers received by the licensee must be presented to the owner until closing or execution of a lease, unless the client waives this obligation in writing.

All formal written offers received by the licensee must be presented to the owner until closing or execution of a lease, unless the client waives this obligation in writing.

Which of these is an example of agency coupled with interest? A listing agent agrees to accept a commission of 2.5% upon sale of the property. A listing agent agrees to split the commission on the sale of a property with a cooperating agent who brings the buyer to the table. An agent foregoes buyer agent commission, provided the purchasing developer gives the agent the listings on the developed lots. An agent is interested a property the agent has listed.

An agent foregoes buyer agent commission, provided the purchasing developer gives the agent the listings on the developed lots. (Agency coupled with interest means the agent holds an estate (or interest) in a property that is the subject of the agency relationship. Forgoing commission now in turn for listings down the road is an example.)

Which of the following statements is true about formal and informal organizations? A formal organization exists within the informal organization. A formal organization's rules control the informal organization. An informal organization relies on the formal organization's rules. An informal organization works alongside the formal organization.

An informal organization works alongside the formal organization (ormal and informal organizations co-exist, with the informal organization working with, for, or against the formal organization.)

Broker Saul has just signed a written agreement with his newest licensee, Jill, stating that Jill is an independent contractor. To ensure Jill is properly classified, Saul should do which of the following? Base her compensation on her sales output Pay her an hourly wage (with or without a commission split) Provide her the same benefits he provides to his employees Require her to work certain hours every week

Base her compensation on her sales output

While conducting an interview, you ask the candidate, "When was the last time you disagreed with your current broker, and how did you handle it?" This is an example of a(n) ______ interview question. Behavioral Career goal-related Illegal Legal, but unethical

Behavioral (Instead of asking directly about experience or skills, behavioral interview questions ask candidates to describe examples of past behavior or of how they would react to an example situation that may come up in the position.)

The 1950 case involving the District of Columbia's Washington Board of REALTORS® and the National Association of REALTORS® determined that "trade" involves which transactions? Both interstate and intrastate Interstate only Intrastate only Only transactions outside Washington, D.C.

Both interstate and intrastate (Trade was determined to include both interstate (between states) and intrastate (within the state) transactions.)

Ryan really enjoys managing and training people. There's something to be said about watching someone grow, learn, and become successful in a profession. Which of these is an ideal role for Ryan? Associate broker Broker-owner Real estate commission member Sole proprietor

Broker-owner

Under ______, landowners can be held responsible for the cleanup costs of hazardous waste, even if they did not cause the waste. CERCLA DECLRA SARA SEQRA

CERCLA

Kevin is a supervising broker, and his firm is handing a sales transaction for the mayor. The closing is scheduled for Monday. On Friday, Kevin discovers that the closing will be delayed for several days because his office failed to send a copy of the purchase contract to the title company. Kevin knows that this is a high-profile transaction. What should he do to protect the firm's reputation? Blame another licensee, and assure the mayor that you will fire the culprit. Blame the title company for missing the email he sent with the contract. Call the mayor, explain the issue, apologize, and reassure the mayor that no more delays will occur. Wait until Monday to call the mayor so he doesn't ruin the weekend.

Call the mayor, explain the issue, apologize, and reassure the mayor that no more delays will occur.

A supervising broker is responsible for monitoring licensees' ______. Business expenses Completion of continuing education requirements Telephone communications Work hours

Completion of continuing education requirements

A medium-sized brokerage asks anyone from its staff to participate in certain business planning activities at the company. Which of these is the most likely potential drawback of using such a strategy? Clients may discover that the executives at the brokerage are letting workers make business decisions. Confidential company information must be shared with workers outside the executive level. Workers may learn more about how the brokerage works and leave to start their own businesses. Workers may request higher compensation in return for their input on business matters.

Confidential company information must be shared with workers outside the executive level. (When a brokerage encourages workers to participate in business planning and decision-making, the sharing of confidential company information may cause a level of risk that must be managed.)

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? Centralized Decentralized Monolithic Vertical

Decentralized

Busy Brokerage maintains a large sales force. Even though new licensees take more time for managers to train and supervise, the broker likes to use them more than experienced licensees because they are _________. Consistent producers Easy to recruit Less likely to switch brokers More comfortable with technology

Easy to recruit (New licensees may not produce for a while and are as likely to switch brokers as an experienced licensee, but they are easy to recruit.)

Market analysts can determine the job market's relative strength by evaluating the _____________. Employment rate Gross domestic product Number of homes on the market Types of businesses in the area

Employment rate

Which of the following statements regarding employment-at-will is true? Employment-at-will is a doctrine that only applies in certain states. Employment-at-will is a doctrine that's used in all states, but each state may apply it differently. In the case of employment-at-will, the laws against discrimination, harassment, and retaliation against an employee who complains about the employer's illegal acts do not apply. The employment-at-will doctrine only applies to independent contractors, not to employees.

Employment-at-will is a doctrine that's used in all states, but each state may apply it differently.

Dave is considering the needs of his sales staff who work from home. Which of the following should he focus on? Ensuring that licensees are practicing within the scope of their licenses Ensuring that licensees comply with CE requirements The ergonomic conditions of staff work stations The location of the licensees' virtual offices

Ensuring that licensees are practicing within the scope of their licenses (Ensuring that licensees are practicing within the scope of their licenses is especially important when they're working remotely. Providing proper training and making yourself available to licensees can help.)

The ______ component involves trading value for your offerings. Communicating Creating Delivering Exchanging

Exchanging

Alison, an aspiring business owner, and her team have done all the upfront work and now they are ready to draft the official planning document for Honesty Homes. She knows that the document will be unique to her business, but there are certain components that are standard and must be included. Which of the following is a standard component of a business plan document? Curriculum vitae Executive summary Financial history Vision statement

Executive summary

Which of the following would be considered a buyer profile niche? An urban redevelopment area First-time homebuyers Industrial sales Residential sales

First-time homebuyers

Which of the following individuals would be a competent party to a contract? Byron, a 17-year-old MENSA member Claudia, a 37-year-old in-patient receiving treatment for schizophrenia Graciella, a 28-year-old unemployed parolee Norman, a 40-year-old heroin addict

Graciella, a 28-year-old unemployed parolee

What should you do to avoid fair housing violations? Avoid advertising to avoid the possible perception of discrimination. Have your broker review your qualification process. Right from the start, describe the ideal buyer for specific properties. Test all of your listings and agents to ensure fair housing compliance.

Have your broker review your qualification process. (Have your broker review your qualification process. Testing every property is unnecessary, and advertising should simply describe the property, not the buyer.)

What is the primary purpose of your firm's logo? Colorful presentation Ease of printing Immediate recognition To repeat the firm's name

Immediate recognition

Larry is assisting a buyer who's making an offer on his client's listing. If Larry is too helpful to the buyer, what might occur? A potential bonus from the buyer Implied agency and undisclosed dual agency Implied friendship Undisclosed single agency

Implied agency and undisclosed dual agency

What's an example of incorporating electronic marketing strategies into print-based marketing tools? Distributing electronic business cards Including a link to the firm's Facebook page on your website Including a scannable code in print materials that leads consumers to your website Using digital technology to prepare and print flyers and business cards

Including a scannable code in print materials that leads consumers to your website

Which of these is an advantage of external recruiting for management positions? External candidates aren't familiar with existing culture and operations. It avoids the distraction of individuals within the firm competing for the same position. It shortens training time. It's less expensive than promoting from within.

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

Which of the following describes a benefit of a long-range plan? It allows provisions for the company to change course when new trends in the market arise. It gives decision makers multiple incentives for accomplishing the company's goals. It provides a strategic method for accomplishing set business goals. It provides flexibility to change course if the plan doesn't materialize within a short period of time.

It provides a strategic method for accomplishing set business goals. (Developing a long-range plan is also known as strategic planning because it provides a strategic method for accomplishing your business goals.)

Which of the following is true about discussing or implying a standard commission for the industry? It's an example of a tie-in arrangement and is an antitrust violation. It's an example of market allocation and is an antitrust violation. It's an example of price fixing and is an antitrust violation. It's permissible.

It's an example of price fixing and is an antitrust violation. (Discussing or even implying that there is a standard commission in the industry amounts to price fixing, which is an antitrust violation.)

What's one benefit of affiliating with a national corporation? Increased decision-making authority Maximum control and flexibility Name recognition Shared office space

Name recognition

The owner of a real estate brokerage firm hired Eric to oversee the day-to-day operations of the business. What type of broker is Eric? Assistant Broker-owner Managing Probational

Managing

Which factor should be considered when evaluating the competition in a given market area? GDP Market share New building permits Vacancy rates

Market share

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? Arbitration Civil ceremony Litigation Mediation

Mediation

Which of the following is prohibited under federal fair housing laws? Noting that a property has an in-law apartment Offering different terms, conditions, or privileges based on protected class status Requiring income verification before offering financing Using the phrase "first-time homebuyer" in an advertisement

Offering different terms, conditions, or privileges based on protected class status

Jerrica is great at sales. She has a bit of a temper, though, and sometimes snaps at lenders, appraisers, and inspectors when things don't go quite according to plan. Is there a risk of damage to the firm's reputation? Jerrica's reputation may suffer, but the firm's won't. One or two incidents may not be damaging, but a pattern of behavior may be a concern. Probably not, as long as Jerrica apologizes. Usually, only really big incidents, like a data breach, damage a firm's reputation.

One or two incidents may not be damaging, but a pattern of behavior may be a concern.

Grant owns a property that's subject to an option contract. Grant is the ______. Optee Opter Optionee Optionor

Optionor

Trish, an experienced sales associate, has been struggling to meet her broker's sales goals. The broker reviews the situation, analyzing Trish's knowledge, skills, and motivation, as well as how the brokerage's mission and structure, methods of communication, and ______ are affecting the associate's performance. Local market Physical and technical environment Retention strategies Vendors

Physical and technical environment (The tools provided to a worker must be appropriate and up-to-date in order for that worker to perform optimally.)

One of the actions that landed the Consolidated Multiple Listing service of South Carolina in court was prohibiting members from offering home sellers the opportunity to avoid paying a broker's commission if the seller located a buyer on their own. What type of antitrust violation does this exemplify? Group boycotting Market allocation Price fixing Tie-in arrangement

Price fixing

Which one of these professional development opportunities is designed to give a licensee expertise in a particular area and to recognize the licensee's commitment to professional education? Professional designation or certification Real estate conference Real estate seminar Required continuing education

Professional designation or certification

Carlton manages the marketing team whose members are busy working on a campaign to attract sellers to a newly developed neighborhood. This is part of the company's goal to increase sales in the region. What kind of authority does Carlton have? Decentralized Functional Line Staff

Staff (Carlton has staff authority because his team's marketing efforts will help the company reach its goal of increasing sales.)

Which of the following demonstrates a scarcity mentality? Adding services to remain competitive Adding to your profits Evaluating the competition Stealing clients from the competition

Stealing clients from the competition

Samantha is a real estate licensee. She's showing her client a property. The client asks about some spots on the ceiling and wonders if they're an indication of a roof leak. What should Samantha do? Climb on the roof and perform an inspection. Hire a home inspector to physically inspect the property. Suggest that her client contact a roofing expert to make a determination. Tell her client that the spots indicate a roof leak.

Suggest that her client contact a roofing expert to make a determination. (Buying and selling homes is Samantha's area of expertise, not identifying roof leaks. She shouldn't offer an opinion about whether the roof leaks, but she should suggest contacting an expert in this field.)

Which of the following mediums is best suited for establishing name recognition? Classified ads Listing flyers QR codes Television ads

Television ads

Which of the following agencies dictates records retention requirements? Local association of REALTORS® NAR® The IRS Your local MLS

The IRS (he IRS dictates the retention of financial records, while states regulate the retention of transaction records.)

Which of the following is true regarding the likelihood of a business plan being successful? Business plans that are pushed down from top management are most likely to be successful. The business plan should be piloted by a division before being rolled out to the entire company. The company should get buy-in and commitment from everyone in the organization. Varying hypothetical plans should be "tried on" for size.

The company should get buy-in and commitment from everyone in the organization.

If a minor enters into a contract with an adult, which of the following is true? The adult may legally hold the minor to the contract, but the minor cannot legally hold the adult to the contract. The contract is valid, and both the minor and the adult may legally hold the other party to the contract. The contract is void, and neither the minor nor the adult may legally hold the other party to the contract. The minor may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract.

The minor may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract.

Which of the following is one of the key decisions a brokerage makes when deciding how to staff the sales force? How to structure the compensation package The best recruiting strategy to use The number of licensees to use Whether or not to offer a signing bonus

The number of licensees to use

Sherman is a listing agent. At what point is he no longer obligated to present offers to his seller client? He has a signed contract. He has received his commission. His client asks him to stop. The sale has closed.

The sale has closed.

What is a SWOT analysis useful for determining? The demographics of a target market The health of the economy The requirements of local and state government, water restrictions, organizations, and taxes in a given market area The strengths, weaknesses, opportunities, and threats facing a business

The strengths, weaknesses, opportunities, and threats facing a business

What's the purpose of a sales contract? To document the agreement between a buyer and seller in a real estate sales transaction To notify the public that an offer has been made on a specific property To serve as an agreement between the seller and the licensee that the seller intends to sell the house To verify that the seller has the legal right to sell the property

To document the agreement between a buyer and seller in a real estate sales transaction

What is the purpose of a business contingency plan? To build credibility with people outside the company, including potential lenders, suppliers, and business affiliates To provide alternative ideas, options, strategies, and resources in case unforeseen adverse conditions arise To state what the company will focus on to fulfill its mission and to become the priorities during the plan's defined time frame To support and help reach goals by determining the method by which the goals can be achieved

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

What is the purpose of developing a business objective? To assess staffing needs To assess the situational performance of the brokerage To establish the role of technology in the brokerage To state what the company will focus on to fulfill its mission, and to establish priorities during the plan's defined time frame

To state what the company will focus on to fulfill its mission, and to establish priorities during the plan's defined time frame

A ______ plan for a merger should include financial guidelines for how each firm will share profits in the future. Acquisition ROI Transaction Transition

Transition

Hank leases 150 acres from Sara and Jesse. He has an option contract attached to his lease, with an option to purchase that can be exercised within the next two years. What type of contract is this? Bilateral Executed Unilateral Voidable

Unilateral

Martha is completing an addendum for her client. She should make sure that it's written ______. In block type In cursive Using legalese Using standardized language

Using standardized language

What's an antitrust violation's central element? Conspiracy Fraud Greed Profit

What's an antitrust violation's central element? Conspiracy Fraud Greed Profit

The ADA was established, among other reasons, to ensure that people with disabilities have access to the same locations as those without disabilities. The ADA creates a set of standards that designers and builders must follow in which circumstance? Only for buildings deemed "residential" Only when altering buildings built after 2010 Only when building new buildings When building new or altering older facilities

When building new or altering older facilities

Ricky is working for Matt, a buyer client, who is interested in a property at which the listing agent offers compensation to cooperating agents. The listing agent has offered Ricky or any cooperating agent additional compensation if the transaction closes within 40 days. Is this ethical? No, it's never ethical for a licensee to accept compensation from more than one party. Yes, but only if all of the involved parties have full knowledge and provide consent. Yes, but only if the Matt has full knowledge of the compensation arrangement and provides consent. Yes, licensees can receive compensation from multiple parties in the transaction.

Yes, but only if all of the involved parties have full knowledge and provide consent.

How should technological advances factor into your business systems decisions? Your office and systems decisions should be made by your employees. Your office and system should be run by an outside firm. Your office and systems should be adaptable to advancements that increase efficiency. Your office and systems should constantly be modern and up to date.

Your office and systems should be adaptable to advancements that increase efficiency.