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Principles of CA Real Estate > DRE > Flashcards

Flashcards in DRE Deck (11)
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1

Who has authority to issue/suspend and/or revoke real estate licenses?

A. District Attorney
B. The court system
C. Real Estate Commissioner
D. All of the above.

C. Real Estate Commissioner has sole authority to issue/suspend/revoke real estate licenses.

2

Which of the following would NOT be responsibilities of the real estate commissioner?

A. Discipline licensee who failed to reveal previous criminal record
B. Investigate complaints against licensees and non-licensees who engage in acts that require real estate license.
C. Prosecute against those who violates the CA Code of Regulations
D. Regulate sale of subdivision of nonexempt franchisees.

C. Only the DA prosecutes law violations in his/her own county.

3

If a broker is found to have violated DRE regulations, the real estate commissioners may:

A. Suspend/revoke the broker's license
B. Make the broker pay damages to the wronged party
C. Prosecute against the broker
D. All of the above.

A. the commissioner can issue citations that incl. administrative fine assessment (max $2500/citation), needs hearing before suspend/revoke license.

Commissioner can also issue Desist and Refrain orders.

Only the courts can make licensee pay damages, only the DA can prosecute

4

Citations from the DRE are considered the following except:

A. A form of discipline
B. Matter of public record
C. Posted to the DRE's website and attached to a licensee's public license record
D. Bad debt that can affect credit ratings if unpaid.

C. Only citations for non-licensees will be posted to DRE site. Citations for licensees can be released pursuant to request under CPRA (CA Public Records Act).

5

Which of the following is TRUE about the Real Estate Advisory Commission except:

A. Appointed by the Real Estate Commissioner
B. Appointed by the Governor
C. Includes both brokers and non-licensed public members
D. All 10 committee members are not paid.

B. Commissioner and Advisory Commission meet in public at least 4x/yr

6

Which of the following is TRUE about the DRE:

A. DRE is supported by taxpayer dollars.
B. DRE primarily serves the interest of the public.
C. DRE is supported by fees from real estate licenses and permits, plus subdivision public reports.
D. Both B and C

D. DRE $ comes from its own activities, not taxpayer $. DRE has 5 offices in state.

7

Which of the following are examples of activities that require a real estate license:

A. Buying/selling/soliciting purchase/exchange of business opportunities
B. Buying/selling a promissory note secured by real property, business opportunities/mineral properties
C. Soliciting borrowers/lenders or negotiating loans on real property, business opportunities/mineral/oil/gas properties
D. All of the above

D. Any financial interests related to real property, business opportunities or mineral/oil/gas properties such as buying/selling/renting/managing/loans/promissory notes.

Fines for unlicensed person $10K/person and $50K/corp per incident.

8

Exceptions to real estate license requirements are the following except:

A. Attorney who charges a broker's fee while performing attorney duties
B. Full time onsite property managers
C. Corp that performs such activities through a regular officer and received no special compensation
D. Trustee selling under deed of trust

A. While attorneys are exempt from real estate license requirements when performing attorney duties, he/she can't charge a broker's fee, otherwise a license is required.

9

The majority of CA laws relating to real property was created by which of the following?

A. the state Constitution
B. Legislative acts
C. The real estate commissioner
D. the business and professions code

D. Business and Professional Code was first enacted in 1917. Real estate licensing law is upheld by police power.

10

Who appoints the Real Estate Commissioner?

A. Governor
B. State Legislators
C. CA Association of Realtors
D. Both A and B

D. Governor appoints Real Estate Commissioner and legislature approves the appointment. Commissioner must be a practicing broker for min. 5 yrs or involved in real estate activity for 5 of last 10 yrs.

11

What is the fine for a corporation that receives an illegal commission?

A. $100K
B. $50K
C. $25K
D. $10K

B. Unlicensed corp receives illegal commission = $50K, unlicensed individual = $10K