CHAPTER 4 -- PRACTICE OF REAL ESTATE Flashcards Preview

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Flashcards in CHAPTER 4 -- PRACTICE OF REAL ESTATE Deck (138)
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30

How often must you renew your license?

Every four years.

31

How many hours of continuing education courses are required?

45 hours (with a minimum of 18 of them must be in consumer protection courses)

32

After expiration, how long is the grace period within which you do not have to re-take the real estate license exam again?

There is a two year grace period.

33

Broker Wilson cheated clients in several real estate transactions and then disappeared. As a result of a lawsuit filed on one transaction, a client was awarded a $25,000 judgement against Broker Wilson. What is the maximum amount that client will be able to recover from the Real Estate Education, Research, and Recovery Account (REERRA)?

(A) $20,000; (B) $25,000; (C) $50,000; (D) $250,000

(B) $25,000

34

What will the Bureau of Real Estate do if someone is attempting to renew a real estate license and his name appears on a list of persons (obligors) who have not complied with a court order to provide child support payments?

(A) renew as a suspended license until paid; (B) renew as a temporary license, but the debt must be paid within 150 days; (C) renew for only one year, unless the licensee submits a letter from the D.A. that the debt has been paid; (D) the license cannot be renewed until the debt is paid.

(B) renew as a temporary license, but the debt must be paid within 150 days

35

When a real estate licensee is required to take 45 hours of continuing education courses to renew his/her license, included within the 45 hours of courses must be which of the following?

(A) Agency, Ethics, Trust Fund Handling, and Fair Housing; (B) Risk Management; (C) 18 hours of consumer protection; (D) all of the above.

(D) all of the above

36

What must include the disclosure of real estate license numbers?

- all solicitation materials
- real property purchase agreements

37

Must an ad placed in the newspaper by a real estate salesperson also include the name of the broker?

Yes, it must also include the name of the broker.

38

A broker advertises the sale of a "Mega-Buck Trust Deeds" in the newspaper. In the ad, the broker offers a specific yield arrived at by looking at the yield for the past year. This ad is:

(A) not subject to regulation under law; (B) legal only if the BRE has confirmed the yield; (C) legal if the ad also gives the actual interest rate specified in the note and the discount from the outstanding principal balance; (D) illegal according to the Truth-In-Lending law.

(C) legal if the ad also gives the actual interest rate specified in the note and the discount from the outstanding principal balance

39

Upon going to work for a real estate broker, Janet, a licensed real estate salesperson, advertised in the newspaper that anyone who bought a property through her would receive a free microwave oven valued at $300. Her offer is:

(A) legal, as long as full disclosure is made to all interested parties. (B) legal, provided that only a chance to win the microwave in a drawing is actually given to the buyer; (C) illegal under all circumstances; (D) illegal, since the value of such a gift cannot exceed $200.

(A) legal, as long as full disclosure is made to all interested parties.

40

A salesperson runs an ad in a newspaper. The ad must contain:

(A) the name and address of the salesperson; (B) the name and address of the broker; (C) the name of the broker and the name of the salesperson; (D) the name of the broker.

(D) the name of the broker

41

What must the Commissioner serve the licensee with if they believe a they have violated real estate law and decided to take action against them?

An accusation

42

Which of the following is a correct statement about puffing?

(A) puffing is always illegal; (B) puffing is unethical unless it is approved by the broker; (C) puffing is only an opinion of value of a specific property as of a given date; (D) puffing is considered misrepresentation if a reasonable person would consider it a statement of fact, rather than an opinion.

(D) puffing is considered misrepresentation if a reasonable person would consider it a statement of fact, rather than an opinion

43

The word "ethics," when used in a discussion of real estate agents, most nearly means:

(A) trust and honesty; (B) the values that guide an agent's relationship with customers, other agents, and the general public; (C) knowledge of the law; (D) held in highest esteem by other agents.

(B) the values that guide an agent's relationship with customers, other agents, and the general public

44

When an agent withholds a new listing from other agents and/or the MLS in order to attempt to sell the listing herself, it is considered unethical and described as:

(A) commingling; (B) a pocket listing; (C) making a secret profit; (D) the fiduciary duty of the agent.

(B) a pocket listing

45

What are the most common types of misrepresentation?

- innocent
- negligent
- fraudulent

46

A real estate licensee misrepresented his relationship with a large real estate firm in order to impress a prospective buyer. The agent's action would be considered:

(A) appropriate business practice; (B) legal, but unethical; (C) illegal; (D) legal only if a sale results from his relationship with the buyer.

(C) illegal

47

An agent promised his buyer a 7.5% loan, but at close of escrow pressured the buyer to accept an 8% loan. The buyer gave in to the agent's pressure and accepted the 8% loan. The agent's conduct was:

(A) legal; (B) illegal; (C) usual; (D) unusual.

(B) illegal

48

Which of the following is commingling and also violates the law regulating trust funds?

(A) a broker put the tenant's security deposit in his client trust account for tenant, and the broker owns the apartment building being managed; (B) a broker put a buyer's deposit in the broker's general account; (C) a broker put the tenant's security deposit in his client trust account and the broker's client owns the apartment building being managed (D) a broker put the rent he collected in his client trust account and the broker's client owns the apartment building being managed.

(B) a broker put a buyer's deposit in the broker's general account

49

How far in advance do Advance Fee Contracts need to be approved by the Real Estate Commissioner?

10 calendar days before they are used.

50

What three things must be included on an advance fee contract in a real estate transaction or when listing a business opportunity?

- A description of the services to be performed
- The total amount of the advance fee to be charged to the client
- The date the fee is to be paid

51

What can an Advance Fee Contract NOT include?

A guarantee that the sale, lease, or exchange will be completed.

52

If the lender gives written authorization for the release of funds before the trust deed is recorded, the broker must give the lender a written recommendation to record within how many days?

Within 10 days

53

If a broker is servicing a loan for a lender, what is the maximum amount of time that they can retain the payments in their trust account?

25 days without written authorization from the lender.

54

Advance fee contracts must be submitted for approval to the real estate commissioner:

(A) at least five days before they are used; (B) at least ten days before they are used; (C) not less than five days after they are used; (D) not less than ten days after they are used.

(B) at least ten days before they are used

55

An advance fee contract used in connection with a real estate transaction or when listing a business opportunity must include all of the following, EXCEPT:

(A) a description of the services to be performed; (B) the total amount of the advance fee to be charged to the client; (C) a guarantee that the sale, lease, or exchange will be completed; (D) the date the fee is to be paid.

(C) a guarantee that the sale, lease, or exchange will be completed

56

When a real estate broker is collecting payments on a promissory note for a lender as part of a loan servicing agreement, the broker may retain the funds in his trust account for:

(A) 10 days; (B) 14 days; (C) 25 days; (D) 60 days.

(C) 25 days

57

What is the maximum age of a promotional note?

Three years

58

A promotional note will no longer be regulated as a real property security when the note is:

(A) 17 months old; (B) 25 months old; (C) 30 months old; (D) 37 months old.

(D) 37 months old

59

It is ethical for real property managers to be compensated in all of the following ways, EXCEPT:

(A) by receiving a percentage of the gross receipts, by receiving commission on new leases; (C) as payment for major repairs or alterations performed by the property manager; (D) the receipt of kickbacks or discounts on goods and supplies.

(D) the receipt of kickbacks or discounts on goods and supplies