Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

A Realtor team functions as what within a larger brokerage?

1. Subcontractor

2. Branch office

3. Mini company

4. Division

The correct answer is: Mini company

A Realtor team functions as a mini company within a larger brokerage due to its ability to operate with a degree of autonomy while still being part of the brokerage's overall structure. This concept reflects how these teams typically have their own branding, marketing strategies, and operational methods, which can resemble that of an independent business enterprise. They may manage their own listings, foster client relationships, and execute their own transactions, but they still follow the overarching policies and regulations set by the larger brokerage. In contrast, other options like subcontractor or division imply different levels of independence and oversight that do not accurately capture the relationship of a Realtor team to a brokerage. A branch office refers to a separate physical location of the brokerage itself rather than a group operating under its umbrella, which also differentiates from the concept of a mini company.