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

Which of the following must be included in the Policy and Procedures Manual for a real estate broker?

1. Marketing Strategies

2. Agent's Authorized Activity

3. Employee Benefits

4. Client Testimonials

The correct answer is: Agent's Authorized Activity

Including the agent's authorized activity in the Policy and Procedures Manual for a real estate broker is crucial because it clearly defines the scope of what agents can and cannot do while representing the broker and engaging with clients. This helps to establish consistent practices that align with legal standards and the broker's operational protocols. It ensures agents understand their responsibilities and authority, which is vital for maintaining compliance with real estate laws and regulations. This clarity can help minimize liability for the broker by making sure that all interactions with clients are regulated and that agents operate within the framework established by the brokerage. While marketing strategies, employee benefits, and client testimonials may be useful to the broker's operations, they are not as essential to a Policy and Procedures Manual focused on the governance and operational compliance of agents. Marketing strategies can change frequently and pertain more to the broker’s business development rather than the agents' specific roles. Employee benefits are important but fall under HR policies and may not be directly related to the agents' work activities. Client testimonials, while valuable for marketing purposes, do not serve as guidelines or policies for agent conduct and activities. Thus, the inclusion of agent's authorized activity is fundamental to a well-structured manual that supports the effective functioning and legal compliance of the brokerage.