Day 2: TREC Sales Agent Route and Variable-Income Math

Daily Learning Contract

• Topic: Career Preparation
• Objective: Students will sequence the current Texas Sales Agent route and use supplied fictional terms to distinguish gross revenue from take-home pay.
• TEKS: d(2)(A)
• Demonstration of Learning: Current TREC sequence, three visible fictional calculations, and one compensation limitation.

Lesson Overview

Safety and Accuracy Boundary

Students do not create a REALM account, apply, submit personal information, schedule fingerprints, or contact a broker. Commission terms are negotiable and divided among parties according to agreements. Classroom percentages and splits are fictional math conditions, not "typical" or guaranteed earnings.

Before Class

Provide one Canvas-capable device or one three-page packet per student, plus a pencil and calculator. Students work independently; pairs may compare the seven-step order before revising. Project the worked model already printed in the packet and this nonexample: The agent takes home $5,250. Students should identify that the sentence drops taxes, expenses, agreement terms, timing, and whether the transaction closes.

50-Minute Flow

1. Warm-Up: Gross Is Not Take-Home (5 min)

Ask: if a transaction creates $8,000 in gross brokerage revenue, what information is still missing before we know one worker's take-home pay? Look for split/agreements, business expenses, taxes, timing, and whether the transaction closes.

2. Current TREC Sequence (15 min)

Students put the current route in order:

1. Meet qualifications, including age 18+.
2. Complete 180 classroom hours: Principles I, Principles II, Law of Agency, Law of Contracts, Promulgated Contract Forms, and Real Estate Finance.
3. Submit the application and education documents.
4. Complete fingerprint/background requirements.
5. Pass the state and national exam portions.
6. Receive inactive status after requirements are met.
7. Obtain licensed-broker sponsorship to move to active status and practice.

Students label every cost, provider, processing time, eligibility detail, and future rule as verify when applying rather than memorizing a stale estimate.

3. Model One Fictional Agreement (10 min)

Use a $350,000 sale, a fictional 2.5% brokerage-side commission, and a fictional 60% agent split:

• $350,000 × 0.025 = $8,750 gross brokerage-side commission.
• $8,750 × 0.60 = $5,250 fictional agent gross before taxes and business expenses.

The numbers are intentionally labeled fictional. They demonstrate order of operations, not a market standard.

4. Three Scenarios and Salary Comparison (15 min)

Students calculate three supplied sale/percentage/split cases, then compare variable timing with a fixed fictional monthly salary. They identify:

• gross transaction amount;
• gross amount after the supplied split;
• one expense/tax/timing fact still missing;
• one benefit and one risk of variable income;
• one reason a person might prefer predictable pay.

5. Exit Check (5 min)

Put three TREC steps in order, calculate one fictional scenario, and explain why the result is not guaranteed take-home pay.

Monitoring Key

At minute 15, students should have steps 1, 2, 6, and 7 correctly placed. If one-third put sponsorship before inactive eligibility, contrast inactive license status with active practice. At minute 29, Scenario A should show $5,600 then $3,640. At minute 40, B should show $9,562.50 then $5,259.38 and C should show $10,500 then $7,350. By minute 46, the limitation should name a missing tax, expense, agreement, timing, or closing condition. Safe trim: solve C together, but protect all seven steps, one independent two-step scenario, and the compensation limit. Collect one route.

Support and Fallback

Provide a formula strip, calculator, read-aloud, typed response, or paper. The packet contains all required current facts and scenarios; no live TREC navigation is required.