TEXAS REAL ESTATE BROKERAGE SAE
LICENSE EXAM 2023-2024 ACTUAL EXAM 300
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY
GRADED A+
A fixed expense ______. - ANSWER-Isn't impacted by sales
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? - ANSWER-DTPA
Why should a business owner evaluate the competition's affiliations? - ANSWER-To
determine what help or hindrance the association provides
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? -
ANSWER-Because other state and federal laws, beyond those enforced by the EEOC,
can put the brokerage in legal trouble if discrimination occurs there
The Occupational Safety and Health Act primarily addresses the rights of which
classification of employees? - ANSWER-Employees
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? - ANSWER-Talk to them each individually to clarify the situation.
Which of these scenarios would best be solved with short-term financing? - ANSWER-
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.
Under what conditions can a licensee contact sellers who are under an exclusive listing
agreement with another agent? - ANSWER-Only to arrange a showing to a buyer
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. - ANSWER-Redundancy
, TEXAS REAL ESTATE BROKERAGE SAE
LICENSE EXAM 2023-2024 ACTUAL EXAM 300
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY
GRADED A+
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? - ANSWER-
Automatic renewal
What's the best definition of a direct expense? - ANSWER-An expense that wouldn't
exist if no sale had been made
What feature of a computer system enables teleconferencing? - ANSWER-Networking
The Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) protects
consumers against real estate licensees who ______. - ANSWER-Use lies,
misrepresentations, fraud, or other deceptive practices or acts to advertise or sell real
estate
Who has the most valuable information about your firm's operations to assist in
identifying potential risk? - ANSWER-You and your staff
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? - ANSWER-Manager
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? - ANSWER-The complexity of the image
Which of the following is a true statement about a brokerage's building safety? -
ANSWER-Tall hedges near the entrance pose a problem.
Which of these is an action a broker should take after a sales meeting? - ANSWER-
Send out a recap of the key points from the meeting to all associates
Minimum wage requirements for employees are established in the federal ______. -
ANSWER-Fair Labor Standards Act (FLSA)
, TEXAS REAL ESTATE BROKERAGE SAE
LICENSE EXAM 2023-2024 ACTUAL EXAM 300
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY
GRADED A+
Which of the following economic indicators most closely relates to consumer
confidence? - ANSWER-CCI
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? - ANSWER-The general
bombardment of messages everyone receives daily
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? - ANSWER-The EPA can
seek damages in court for up to three times the actual cleanup costs.
When a sales contract doesn't cover the terms needed by the parties, which of the
following actions is a licensee allowed to take? - ANSWER-Add a standard addendum
using standard language.
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? - ANSWER-No intent needs to be proven
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? - ANSWER-Increased revenue
Which of the following is an industry trend that a brokerage should track? - ANSWER-
Average days on market
Marsha is reviewing a market analysis to help her determine the location of her new
brokerage office. What data should she look for? - ANSWER-What current tenants pay
for rent and utilities
What is the purpose of strategic business planning - ANSWER-To help reach the
business goal by determining the method by which the goal can be achieved
Lena's buyer client Mindy is making an offer on Joe's house. Which party decides how
much earnest money to offer? - ANSWER-Mindy
, TEXAS REAL ESTATE BROKERAGE SAE
LICENSE EXAM 2023-2024 ACTUAL EXAM 300
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY
GRADED A+
There are three methods of dispute resolution: ______, arbitration, and litigation. -
ANSWER-Mediation
Rochelle's firm is concerned about its licensees being attacked during showings. Which
of the following is the mostly likely source of risk? - ANSWER-Safety
When working with new licensees, what's the main advantage of having a physical
office space? - ANSWER-You can spend more time with employees.
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? - ANSWER-Maintain a small
staff of carefully chosen licensees who can work together successfully.
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? - ANSWER-Communicating
Sari, a licensee for Tynan Realty, is placing a listing ad in the Presbyterian Outlook. Is
this a potential fair housing violation? - ANSWER-Yes, unless she also places the ad in
publications that reach a broader market.
Which of the following describes a benefit of a long-range plan? - ANSWER-It provides
a strategic method for accomplishing set business goals.
What's a downside for a brokerage that opts for a national affiliation? - ANSWER-Less
decision-making authority
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? - ANSWER-Yes, because it implies
that the listing is suitable only for a particular type of buyer.
Why are managers at a brokerage usually salaried employees? - ANSWER-Because
their activities support the work of others rather than generating revenue directly
LICENSE EXAM 2023-2024 ACTUAL EXAM 300
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY
GRADED A+
A fixed expense ______. - ANSWER-Isn't impacted by sales
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? - ANSWER-DTPA
Why should a business owner evaluate the competition's affiliations? - ANSWER-To
determine what help or hindrance the association provides
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? -
ANSWER-Because other state and federal laws, beyond those enforced by the EEOC,
can put the brokerage in legal trouble if discrimination occurs there
The Occupational Safety and Health Act primarily addresses the rights of which
classification of employees? - ANSWER-Employees
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? - ANSWER-Talk to them each individually to clarify the situation.
Which of these scenarios would best be solved with short-term financing? - ANSWER-
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.
Under what conditions can a licensee contact sellers who are under an exclusive listing
agreement with another agent? - ANSWER-Only to arrange a showing to a buyer
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. - ANSWER-Redundancy
, TEXAS REAL ESTATE BROKERAGE SAE
LICENSE EXAM 2023-2024 ACTUAL EXAM 300
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY
GRADED A+
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? - ANSWER-
Automatic renewal
What's the best definition of a direct expense? - ANSWER-An expense that wouldn't
exist if no sale had been made
What feature of a computer system enables teleconferencing? - ANSWER-Networking
The Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) protects
consumers against real estate licensees who ______. - ANSWER-Use lies,
misrepresentations, fraud, or other deceptive practices or acts to advertise or sell real
estate
Who has the most valuable information about your firm's operations to assist in
identifying potential risk? - ANSWER-You and your staff
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? - ANSWER-Manager
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? - ANSWER-The complexity of the image
Which of the following is a true statement about a brokerage's building safety? -
ANSWER-Tall hedges near the entrance pose a problem.
Which of these is an action a broker should take after a sales meeting? - ANSWER-
Send out a recap of the key points from the meeting to all associates
Minimum wage requirements for employees are established in the federal ______. -
ANSWER-Fair Labor Standards Act (FLSA)
, TEXAS REAL ESTATE BROKERAGE SAE
LICENSE EXAM 2023-2024 ACTUAL EXAM 300
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY
GRADED A+
Which of the following economic indicators most closely relates to consumer
confidence? - ANSWER-CCI
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? - ANSWER-The general
bombardment of messages everyone receives daily
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? - ANSWER-The EPA can
seek damages in court for up to three times the actual cleanup costs.
When a sales contract doesn't cover the terms needed by the parties, which of the
following actions is a licensee allowed to take? - ANSWER-Add a standard addendum
using standard language.
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? - ANSWER-No intent needs to be proven
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? - ANSWER-Increased revenue
Which of the following is an industry trend that a brokerage should track? - ANSWER-
Average days on market
Marsha is reviewing a market analysis to help her determine the location of her new
brokerage office. What data should she look for? - ANSWER-What current tenants pay
for rent and utilities
What is the purpose of strategic business planning - ANSWER-To help reach the
business goal by determining the method by which the goal can be achieved
Lena's buyer client Mindy is making an offer on Joe's house. Which party decides how
much earnest money to offer? - ANSWER-Mindy
, TEXAS REAL ESTATE BROKERAGE SAE
LICENSE EXAM 2023-2024 ACTUAL EXAM 300
QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY
GRADED A+
There are three methods of dispute resolution: ______, arbitration, and litigation. -
ANSWER-Mediation
Rochelle's firm is concerned about its licensees being attacked during showings. Which
of the following is the mostly likely source of risk? - ANSWER-Safety
When working with new licensees, what's the main advantage of having a physical
office space? - ANSWER-You can spend more time with employees.
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? - ANSWER-Maintain a small
staff of carefully chosen licensees who can work together successfully.
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? - ANSWER-Communicating
Sari, a licensee for Tynan Realty, is placing a listing ad in the Presbyterian Outlook. Is
this a potential fair housing violation? - ANSWER-Yes, unless she also places the ad in
publications that reach a broader market.
Which of the following describes a benefit of a long-range plan? - ANSWER-It provides
a strategic method for accomplishing set business goals.
What's a downside for a brokerage that opts for a national affiliation? - ANSWER-Less
decision-making authority
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? - ANSWER-Yes, because it implies
that the listing is suitable only for a particular type of buyer.
Why are managers at a brokerage usually salaried employees? - ANSWER-Because
their activities support the work of others rather than generating revenue directly
