Primary Brokerage Activities and its Laws

Question 1

Define real estate brokerage

Answer 1

Procuring a buyer/tenant for an owner or landlord or vice versa

Question 2

What knowledge is needed in real estate

Answer 2

Local market, license law, closing procedures, etc

Question 3

What skills are needed in real estate

Answer 3

Time management, market analysis, selling, writing, etc

Question 4

Forms of specialization include:

Answer 4

Property type (residential, commercial, etc), Geographical area (defined by natural barriers, streets, subdivisions), Type of transaction (sales, leases, subleases, exchanges, and options), Type of client (many brokers restrict their business to representing either buyers and tenants or sellers and landlords), Type of relationship, Form of business organization (one type of client), Form of client relationship (advisory vs. transaction-based)

Question 5

Define real estate law

Answer 5

Federal statutes, state statutes, a body of court decisions (common law), and local agencies circumscribe how real estate can be developed, managed, and transferred

Question 6

Which association sets an even higher standard of performance for member brokers and agents?

Answer 6

The National Association of REALTORS Code of Ethics

Question 7

Which association is an international association of real estate regulators who promote consistent policies and standards for license law and its enforcement?

Answer 7

The Association of Real Estate License Law Officials (ARELLO)

Question 8

Which association is charged with administering and enforcing license laws, as well as passing regulations that further refine or clarify statutes and is responsible for administering The Real Estate License Act (TRELA)? Also has the power to create and enforce new rules to help interpret or define TRELA, but cannot amend the law/

Answer 8

Texas Real Estate Commission (TREC)