Practice Of Real Estate And Disclosure Flashcards by Kevin Yang

Trust fund accounts are used to

Separate trust funds

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Most important reason for trust fund accounts

Legal action against broker

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Trust fund accounts must reconcile

Monthly

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If there is an unexplained overage in a trust fund account

Keep separate record

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Example of commingling?

Broker deposits his own renter’s check in the trust account

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Proper places for trust funds

Escrow, trust account, owner of funds

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Offeree (seller) can hold trust funds if you have a

Written agreement between offeree and offeror

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Trust funds must be deposited within

3 business days

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If sales associate receives trust funds

Deliver to broker immediately, follow instructions

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What is the civil rights act of 1968

No discrimination or bias

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When you encounter discrimination and unlawful eviction, what can you do?

Right to bring suit

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Where are complaints for violations of federal fair housing laws filed to?

Dept of housing and urban development (HUD)

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What is an example of an acceptable rental ad?

No bicycles allowed. Can’t name actual buildings

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What do you call directing a buyer to nonintegrated neighborhood of his own ethnicity?

Steering

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Agent tells homeowners an ethnic group is moving in and values will decrease

Blockbusting

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Bank will not loan in a zip code because of ethnic composition

Redlining

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Americans with disabilities act (ADA) requires which type of properties to comply?

Mall, store, business office (all commercial)

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The unruh act prohibits discrimination by

By businesses

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Who do you file complaint for discrimination and within

Dept of fair employment and housing, within 60 days

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Discrimination can result in violation of

Federal, state, commissioner’s regulation

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What is and example of misleading advertising

Misleading map

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What is a blind ad

Ad does not identify broker

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What is puffing

Exaggerating features or benefits

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License number must be in first contact materials on?

Everything

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What happens when you misuse of term realtor?

Revoke or suspend license

After close of escrow, record keeping requirements are?

Keep for 3 years, keep contracts and paperwork dating from close of escrow

What is WORM

Write once, read many

What is an example of an unlicensed assistant’s cold calling activities?

Set appointment to meet broker

What’s an example where no license is required?

Meet termite inspector and show house

For an unlicensed assistant, what should you not do when getting documents signed?

Don’t discuss relevance of documents

Commissioner has authority to

Promulgate rules and regulations

Who prosecutes for illegal activities

District attorney

What happens when you misrepresent a property to buyer

Discipline, civil, criminal charges

What is the exact moment a salesperson is terminated

Broker gives license back to salesperson

What happens when you obtain license by fraud

Revoke within 90 days without hearing

How long is the real estate license term

4 years

For a broker license, two years experience or

4 year college degree, major or minor in real estate

What exception is there to depositing to the trust fund within 3 business days?

Hold check uncashed

Continued education for real estate is

45 hours, 18 in consumer protection

What happens when licensee does not renew before expiration?

Out of business, but 2 year grace period to avoid testing again

What happens to a licensee who is a child support obligor

150 days temporary license

The rumford act prohibits discrimination in housing except

Selling businesses (only for housing)

Recovery account will cover up to a single transaction of

$50,000

Recovery account will cover a lifetime limit up to

$250,000

Suspended license from recovery account payout

Pay only recovery account, plus interest

What are the general ethics

Honesty and fairness

Property management is authorized to manage property for public

Broker

Property management company is responsible for what measures

Safety measures

What does the property management use security deposits at end of lease?

Clean, repair, unpaid rent

Property management return or account for security deposits within

21 days

Which document is used to evict

Unlawful detainer

Maximum deposit for furnished apartment

3 months rent

Maximum deposit for unfurnished apartment

2 months rent

What was the Easton vs Strassburger with the TDS about?

Diligent visual inspection, disclose all defects

What was the civil code 2079 about

Diligent visual inspection

TDS is requires

As is, FSBO, 1-4, defects known and should be known

What is not required to disclose in the TDS?

Repairs

When can licensee fill out seller’s portion

Never

What is an Amended TDS

Escrow is still open, can rescind contract but not sue

What is a Defective TDS

Escrow is closed, can sue within 2 years

What must you do for the natural hazard disclosure statement on lead based paint

Give EPA pamphlet, disclose reports, 10 days to inspect

What is the Alquist priolo act

Disclose earthquake fault lines

The alquist priolo act applies to

Specific types of structures in known earthquake fault zones

Fault zones are defined as

1/4 mile wide

If a salesperson took illegal referral fees and broker knows

Broker is also liable if guilty of knowledge

Licensee must notify DRE of any illegal activity within how many days

Within 30 days

If a buyer is related to the listing agent, what should they do

Must disclose to seller

When a broker appoints a manger for a branch office, what happens

Broker relieved of direct supervision

What does the HUD section 8 housing choice voucher program do

Assists with affordable housing in private market

Why do brokers typically work with an independent contractor salesperson

Broker does not have to pay social security and Medicare

What do brokers pay for employees and independent contractor salespersons

Broker pays workers comp

Prepaid rental listing service (PRLS) license is issued for how long

2 years

If seller paints over water spots on ceiling, the listing agent needs to

Listing agent discloses roof leaks

If a salesperson is asked to lease house but doesn’t know how

Ask broker’s assistance

What’s a reason in a busy market and house does not sell

It’s Overpriced

With a 9 month listing, the broker’s license is revoked. What happens?

Listing terminates

If a broker dies, leaves business to daughter, what do sellers do?

Sellers sign new listings

Flood hazard is considered frequent when flooding happens

2 times in 10 years

DRE does not issue licenses to

To partnership

An example where the Licensee does not have to disclose

That he lives in neighborhood of property being sold

Agent is liable for own actions even if

Whether principal is liable or not

Agent is not liable for wrongful acts of principal

Unless agent acquiesces (gives in)

Practice Of Real Estate And Disclosure Flashcards

(82 cards)