Texas Real State Broker part 2 Flashcards
According to TAC §535.2, what must a broker do when assigning someone to supervise other license holders?
A. Submit the delegation to TREC only during license renewal
B. Notify TREC within 10 days and get verbal confirmation
C. Provide the delegated supervisor’s name to TREC in writing within 30 days
D. Have the delegated supervisor complete the Broker Responsibility Course before the assignment starts
Correct Answer: ✅ C
Explanation: When a broker delegates someone to supervise license holders (a delegated supervisor), the broker must document it in writing and submit the name to TREC within 30 days.
Who is required by TRELA and TREC to complete the Broker Responsibility Course?
A. Only brokers with more than five agents
B. All license holders renewing for the first time
C. Brokers or designated brokers who sponsor sales agents and delegated supervisors
D. Sales agents renewing after their first year
Correct Answer: ✅ C
Explanation: The Broker Responsibility Course is mandatory for:
Brokers who sponsor one or more sales agents
Designated brokers of licensed entities who sponsor agents
Delegated supervisors appointed by a broker to manage others
Which of the following statements accurately reflects a broker’s fiduciary duty to a principal under TREC Rule 535.2?
A. A broker must share only the information provided by the client.
B. A broker must convey all material information known by the broker or their sales agents unless prohibited by law.
C. A broker may choose to withhold confidential information to protect their commission.
D. A broker only owes fiduciary duties if a written listing agreement is signed.
B
What must a broker provide in writing to each sponsored sales agent under TREC Rule 535.2?
A. A copy of their listing agreements
B. A list of brokerage clients and fees
C. A written notice defining the scope of authorized activities under TRELA
D. A printed copy of the Texas Property Code
C
When may a broker delegate supervisory duties to another license holder, and what is required if the delegation exceeds three consecutive months?
A. Delegation is not allowed unless approved by TREC.
B. Delegation can be verbal but must be acknowledged by the broker’s attorney.
C. Delegation must be in writing, and TREC must be notified within 30 days.
D. Delegation is permitted only if the license holder has 5+ years of experience.
C
Which of the following is true about broker associates in Texas?
A. They must be sponsored by a primary broker like sales agents.
B. They operate under the policies of a primary broker but hold their own broker license.
C. They hold a separate type of license issued specifically to broker associates.
D. They are exempt from TREC advertising rules.
B
Under TREC rules, what must a broker associate avoid when advertising?
A. Listing commission rates publicly
B. Advertising the name of their personal LLC
C. Using their broker license number on all signs
D. Creating ads that confuse the public about who the primary broker is
D
When can a broker associate act as a team lead within a brokerage?
A. Only if they receive approval directly from TREC
B. If the primary brokerage allows teams and outlines it in their written policies
C. Only after completing a mandatory team leader certification course
D. If they sponsor at least one sales agent
B
Which of the following is a typical duty of a sales agent working as a seller’s agent?
A. Represent the buyer in price negotiations
B. File the closing documents directly with the county clerk
C. Work with sellers to obtain listings and secure them using TREC forms
D. Determine the appraised value of the property
C
Which tools can a seller’s agent prepare to help a seller choose a listing price?
A. Inspection reports and loan estimates
B. Comparative Market Analyses (CMAs), Broker Price Opinions (BPOs), and net sheets
C. Appraisal waivers and promissory notes
D. Title reports and surveys
B
What must be true for a sales agent to advertise a listing in the MLS?
A. The agent must pay an annual MLS fee
B. The sponsoring broker must be an MLS member
C. The agent must hold a broker’s license
D. The seller must request the listing remain private
B
What is a seller’s agent expected to do at the closing?
A. Sign all documents on behalf of the seller
B. Attend the closing, verify possession transfer, and exchange keys
C. Issue the final settlement statement
D. Notify the lender of loan disbursement
B
After an offer is accepted, what must the buyer’s agent do?
A. Step out of the transaction until closing
B. Allow the buyer to handle all follow-ups
C. Help ensure contingencies are met, inspections completed, and title issues explained
D. Rewrite the contract with updated price terms
C
What is the nature of the relationship between a broker and a sponsored sales agent under a typical agreement?
A. Standard employer-employee relationship
B. Partnership with shared liability
C. Independent contractor relationship
D. Temporary agency employment
C
- Which combination of traits is most critical for a broker aiming to sustain long-term growth and profitability in a brokerage?
A. Strong leadership skills, networking abilities, and verbal communication
B. Extensive industry knowledge, business acumen, and adaptability
C. Entrepreneurial spirit, empathy, and recruiting ability
D. Flexibility, written communication skills, and knowledge of local trend
B : These traits directly support the broker’s ability to respond to market shifts, manage operations, and maintain profitability.
A broker facing a sudden market downturn implements a new digital marketing strategy and shifts focus to rental properties. Which core trait does this action best illustrate?
A. Communication skills
B. Industry knowledge
C. Adaptability and flexibility
D. Networking abilities
C
- Which pair of skills most directly supports both client satisfaction and internal brokerage efficiency?
A. Ethical standards and technological proficiency
B. Negotiation skills and marketing expertise
C. Customer service orientation and time management
D. CRM tools and social media marketing
C
A broker who avoids dual agency situations, protects client privacy, and discloses all terms clearly is demonstrating which core trait?
A. Customer service orientation
B. Strong ethical standards
C. Technological proficiency
D. Negotiation skills
B
- A broker develops a five-year expansion plan, builds a scalable team model, and evaluates new markets quarterly. Which key trait is this broker demonstrating?
A. Financial acumen
B. Strategic thinking and vision
C. Emotional intelligence
D. Continuous learning and development
B
. Why is relying solely on past sales experience considered a risk when starting a brokerage?
A. Because market conditions never repeat
B. Because experience doesn’t replace formal planning
C. Because it limits your ability to recruit new agents
D. Because clients expect newer strategies
B
How does a mission statement differ from a full business plan?
A. A mission statement focuses on daily operations
B. A mission statement provides vision; a business plan defines management and structure
C. A mission statement is a legal requirement for brokers
D. A mission statement replaces the need for a business plan
B
A broker emphasizes experienced agents, multiple branch offices, and strong digital presence to attract clients. This would fall under which business plan section?
A. Company’s Competitive Advantage
B. Management, Recruiting, and Retention
C. Market Analysis
D. Marketing Strategies
A
What topic in the business plan would most likely include start-up cost calculations and options for obtaining capital?
A. Operating the Business
B. Financing the Business
C. Market Analysis
D. Methods to Manage Risk
B
Which of the following best explains the purpose of including both a vision and a mission statement in a business plan?
A. To satisfy legal requirements and branding guidelines
B. To inspire marketing efforts and define employee benefits
C. To keep the company focused and avoid drifting with market changes
D. To measure the effectiveness of management styles and risk policies
C : Vision and mission statements help anchor the business’s direction and purpose, preventing aimless shifts due to market pressure.
What is the main reason goals should be reviewed and modified annually?
A. To comply with state licensing laws
B. To compare performance with competing firms
C. To evaluate progress and adjust direction as needed
D. To update agent compensation structures
C
A broker defines how many listings the office needs, sets revenue targets, and decides which market segments to pursue. This process reflects:
A. Ongoing staff performance reviews
B. Tactical marketing development
C. Annual strategic planning
D. Internal audit requirements
C
