Flashcards in CHAPTER 4 -- PRACTICE OF REAL ESTATE Deck (138)
Where are most of the laws which regulate the real estate industry found?
In the Business and Professions Code
The California Real Estate Commissioner has the authority to:
(A) assess damages against real estate licensees who engage in fraudulent activities; (B) promulgate rules and regulations to promote the enforcement of the California real estate laws; (C) issue non-resident real estate licenses to states which prohibit their residents from holding California real estate licenses; (D) all of the above.
(B) promulgate rules and regulations to promote the enforcement of the California real estate laws
Mr. Nguyen does not have a real estate license. He runs an investment firm, advertising and selling properties for his clients. Since these transactions require a real estate license, who will prosecute him for this criminal violation of the real estate law?
(A) the local police; (B) the Real Estate Commissioner; (C) the State Attorney General; (D) the District Attorney of the county in which the activity occured.
(D) the District Attorney of the county in which the activity occured
The seller in a real estate transaction decided not to pay the commission to his real estate agent. Which of the following should the real estate agent do?
(A) file a vendor's lien on the seller's property; (B) file a complaint with the real estate commissioner; (C) file an action in civil court; (D) all of the above.
(C) file an action in civil court
What real estate acts require a license?
- Assisting buyers and sellers of real estate
- Answering detailed inquiries about real estate and financing
- Property management
Who does not need a real estate license?
- Principal (unless they handle 8 or more loans in a calendar year
- Trustee (can conduct a trustee sale without a license)
- Unlicensed assistant (can't solicit, choose the pest control inspector, or advise a borrower that they wouldn't be approved for a loan)
- Resident property manager.
How many units in a residential property necessitates a resident property manager?
16 or more units
Who is authorized to manage real property for the general public?
(A) A Certified Property Manager; (B) a licensed real estate broker; (C) an affiliate member of the California Association of Realtors; (D) any responsible adult
(B) a licensed real estate broker
Someone who has been granted a "power of attorney" may NOT do the which of the following:
(A) deed a property to himself; (B) pay himself a commission; (C) deed the property to another; (D) sign the name of his principal to legal documents.
(A) deed a property to himself
When a real estate broker hires an unlicensed person for the purpose of creating advertising material, the broker must:
(A) allow the unlicensed person to create the advertising material as he/she sees fit; (B) read and approve all material before it is used; (C) approve the material in writing before it is used; (D) create the material him/herself and only use the unlicensed person to fine tune the material.
(B) read and approve all material before it is used
What are the three steps a real estate broker must take in order to operate an office using a fictitious business name?
1. File a "Fictitious Business Name Statement" at the county recorder's office.
2. Publish the fictitious business name in the newspaper as required.
3. Have a broker's license issued by the Bureau of Real Estate after the name has been approved by the Commissioner
A licensed real estate salesperson is directly responsible to the:
(A) seller; (B) buyer; (C) employing broker; (D) none of the above.
(C) employing broker
How long must a real estate salesperson keep a copy of his employment contract with a broker after quitting the office?
(A) one year; (B) two years; (C) three years; (D) four years
(C) three years
The broker of a real estate office should know that Worker's Compensation insurance is required for:
(A) only those employees paid more than minimum wage; (B) clerical personnel only; (C) employees over 21 years old only; (D) all employees of the broker.
(D) all employees of the broker
How quickly should a broker send the Real Estate Commissioner a change of address?
No later than the next business day following the change.
When must a broker return a license back to a salesperson after termination of employment?
Three business days
From what point must a broker keep all records from a transaction?
Three years from either the date of closing or, if the transaction is not consummated, from the date of the listing.
When a real estate broker fires a real estate salessperson for a violation of the real estate law, the broker must:
(A) notify the Real Estate Commissioner immediately by telephone; (B) notify the Real Estate Commissioner by certified written statement of facts within three days of the date of termination license; (C) do nothing, it is not the responsibility of the broker to inform the Real Estate Commissioner; (D) notify the Real Estate Commissioner forthwith by a certified written statement of facts.
(D) notify the Real Estate Commissioner forthwith by a certified written statement of facts.
A broker is required by law to keep a copy of a deposit receipt for a minimum of three years from:
(A) the date the deposit receipt was accepted by the seller; (B) the date of closing of the transaction; (C) the recording of the deed; (D) whichever date is earliest.
(B) the date of closing of the transaction
A real estate broker must keep records of all money received by him and/or anyone working for him in a book called:
(A) a profit and loss statement; (B) a closing record book; (C) a trust ledger; (D) a reconciliation book
(C) a trust ledger
Is a broker required to have a trust account?
No, not unless they are required to hold client's funds for more than three days.
What is the limit of how much money a broker can have of their own money in a trust account?
How long may a real estate licensee hold a deposit check from the buyer before it is placed in trust account, escrow, or returned to the buyer?
(A) one business day; (B) three business days; (C) before close of escrow; (D) a real estate licensee must immediately deposit the check in the broker's trust account.
(B) three business days
An unlicensed employee of the broker who is authorized in writing by the broker may take withdrawals from the broker's trust account provided the employee:
(A) maintains no personal funds in the trust account; (B) is covered by a fidelity bond for at least the amount of the funds to which the employee has access to at any given time; (C) has committed to get a real estate license within the next 6 months; (D) has been employed by the broker for at least 2 of the last 5 years.
(B) is covered by a fidelity bond for at least the amount of the funds to which the employee has access to at any given time
After a broker reconciles his client trust account, the broker's client liabilities should match the trust account:
(A) overages; (B) shortages; (C) balance; (D) fidelity bond.
How long after passing the real estate exam do you have to apply for the license?
The real estate law views the salesperson employed by a real estate broker as:
(A) an independent contractor; (B) a special agent; (C) a subagent; (D) an employee.
(D) an employee
The only person who can pay compensation to a real estate salesperson for real estate activities is:
(A) the seller; (B) the buyer; (C) his or her employing broker; (D) the escrow company only when escrow closes.
(C) his or her employing broker
When an applicant passes the real estate exam, how much time does he/she have to apply for the license?
(A) one year from the date of the exam; (B) one year from the date they received the results of the exam; (C) two years from the date of the exam; (D) two years from the date they received the results of the exam.
(A) one year from the date of the exam