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20 Cards in this Set

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  • Back

An unlicensed person sold several properties for a commission, and engaged in false advertising while selling the properties. Who would prosecute this person?

The district attorney of the county where the illegal acts occurred is responsible for prosecuting any violation of the real estate license law

An unlicensed assistant arranges for a home inspection, at her broker's request. She provides assistance as needed to the inspector as part of the process. Which of the following duties must be performed by the broker, though, rather then the unlicensed assistance?

A real estate license is required in order to answer specific questions about a property (this is true when interacting with third parties, such as inspectors, as well as with clients). An unlicensed person, however, can perform clerical tasks, such as arranging an inspection.

A broker pays his son a weekly salary to help him sell homes in a subdivision. The son works out of a model home, greeting and answering phone calls from potential buyers. He provides price and financing information, but never creates or signs any documents. Which of the following is true?

The son is quoting prices and discussing financing. These acts of real estate agent and require a license

A real estate agent misrepresented the characteristics of a property to the buyers, who then sued the agent and won. However, the agent is insolvent, meaning that the buyers are unable to recover anything from from. The next step for the buyers would be to:

An injured party who receives a civil judgement against a licensee for certain acts of misconduct may apply to the Recovery Account for payment of the judgement. The injured party must show that the licensee does not have funds or other assets that can be seized to pay the judgement

A broker learns that one of his salesperson has committed several violations of the license law. The broker fires the salesperson and takes steps to ensure that his other salespersons do not engage in the same behavior. Which of the following is TRUE?

The salesperson has violated the license law: the broker failed to report the violations to the Real Estate Commission. They both may be subject to disciplinary action

How long do trust fund records need to be maintained?

As with most other types of real estate transaction records, trust fund records need to be kept by a broker for three years

Hoping to sell her property quickly, an owner pays her agent a fee for additional marketing and advertising in a brochure that the listing agent publishes. This "advance fee":

Advance fees may be paid by the seller in advance for unusual marketing and advertising expenses. These funds should be held in a trust account

A blind ad is an advertisement that does not:

Advertisements placed by licensees on behalf of sellers or landlords must include some indication that the advertiser is a licensee, not the property owner. An ad that fails to identify the broker or provide some other type of licensee designation is sometimes called a blind ad.

A written employment agreement between a broker and her salesperson is required by which of the following?

Whenever a real estate broker hires a salesperson, a written employment agreement is required by the Real Estate Commissioner's regulations

Which f the following is exempt from the real estate licensing requirement when acting for compensation ?

An attorney in fact, operating under a properly executed power of attorney, is exempt from real estate licensing requirements

An unlicensed real estate assistant could do all of the following tasks except:

An unlicensed real estate assistant is limited to clerical work, and other activities that do not involve discussing the price, terms, or conditions of property. For instance, an assistant should not provide advice about financing to clients.

At an open house, an unlicensed real estate assistant may:

An unlicensed real estate assistant may not discuss the price, terms, or condition of the property, which limits what an assistant may do at an open house

A person licensed as a real estate broker in California may always lawfully advertise himself as a:

A person licensed as a real estate broker in California is permitted to advertise himself as a real estate broker. He can advertise himself as a Realtor only if he is also a member of the National Association of Realtors. He can advertise himself as a real estate attorney only if he is also licensed as an attorney at law.

What recourse does a licensee have if he fails to renew his license before it expires?

I a licensee fails to renew his license, he has a two-year period in which he can renew the license by paying a penalty and all other fees. If that period ends, he must retake the license exam and re-apply for a license if he wants to work as a real estate agent

Which of the following violates the broker's duty to exercise reasonable supervision over salespersons?

A salesperson must meet certain experience requirements in order to manage a branch office

The purpose of the Recovery Account is to:

If an injured party receives a civil judgement a licensee based on intentional fraud, misrepresentation, or deceit, and the license has no funds or other assets that can be seized to pay the judgement, then the injured party may receive compensation from the Recovery Account

A broker is required to perform a trust account reconciliation:

The Commissioner's regulations require a broker to reconcile her trust account records on a monthly basis

Trust funds received by a broker must be placed in a trust account:

Trust funds must be deposited no later than three business days following receipt of the funds, unless there are written instructions to hold a check uncashed until an offer is accepted.

Broker Bill has been unable to locate a buyer for a particular house. He is aware that the house needs some major structural repairs and that is listing price is about 10% above its fair market value. He runs a newspaper ad that says "Lovely two-bedroom, two-bath. Excellent condition. Move right in. You won't believe the price. Broker Bill 555-2222." The problem with this advertisement is that:

It is misleading to advertise a house needing major structural repairs as being in "excellent" and "move-in" condition.

A broker negotiates the sale of a property. He is to receive a $500 commission from the seller at closing. A week before closing, he receives a $5000 cash deposit. He is permitted to do which of the following?

The entire deposit must be placed in escrow (or in the broker's trust account). The broker is not entitled to be paid his commission until closing, and he should not separate the amount of the commission from the rest of the deposit funds ahead of time.