Real Estate Principles Chapter 2

Front 1

The main purpose of the California Bureau of Real Estate (BRE

Back 1

a) To protect the public.
b) To ensure the qualification of applicants and issuance of real estate licenses.
c) The regulation of the sale or lease of subdivision interests.
d) To advise the California Real Estate Commissioner on real estate matters that are important to the real estate industry and the public.

Front 2

Hannah is a newly licensed California real estate salesperson. She has aspirations of one day being the California Real Estate Commissioner. How does she get there and what does she do once she's there?

Back 2

a) Hannah must become an attorney as well as a licensed real estate agent. She would need to have the appointment of the Governor of California. Her primary duty would be the qualification of applicants and issuance of real estate licenses.
b) Hannah would have to be appointed by the California Real Estate Commission. Her primary duty as Commissioner would be regulation of the sale of subdivision interests.
c) Hannah would need to be elected the California Real Estate Commissioner in a state-wide election. Her primary responsibilities as Commissioner would be to enforce the Real Estate Law and Subdivided Lands Law.
d) Hannah would need the appointment of the Governor of California. Her primary duty as Commissioner would be to enforce the laws in a manner in which maximum protection for real estate consumers is achieved.

Front 3

Susan is thinking of putting her home up for sale but doesn't want to use a real estate agent. What are her options?

Back 3

a) Susan must obtain her real estate license or use a licensed real estate agent to sell her property. She cannot be compensated for the sale of her property unless she is representing another person.
b) Susan may sell her property herself without obtaining a real estate license. Although she will be compensated for the sale of her home, she is not representing another person.
c) Susan will be negotiating the purchase price of her home and must be licensed to do so.
d) Both A and C

Front 4

Miranda helps her friend Lupe purchase a home. She researches the neighborhood, assists her with a mortgage -- she essentially acts as Lupe's real estate agent. There is only one issue, Miranda does not have a California license and Lupe has paid Miranda for her help. Is this acceptable?

Back 4

a) Yes, it is acceptable. Miranda is a lender who makes federally-insured or guaranteed loans. She has helped Lupe with her knowledge and experience and Lupe has compensated her time.
b) Miranda is simply helping her busy friend make good choices. She just wanted to put her knowledge of the real estate industry to work. Although she has never passed the licensing examination, she knows everything an agent does.
c) It is certainly not acceptable. Miranda is accepting compensation for representing another person in a real estate transaction and she does not hold a California real estate license.
d) Miranda is in the process of studying for her license. She will be taking the examination before Lupe's real estate purchase closes. Miranda WILL be a licensed real estate agent at the close of escrow; so, yes, it is acceptable

Front 5

Sam has successfully completed the Real Estate Principles course, the Real Estate Practices course, an additional college level course, and passed the salesperson licensing examination. Which license is available to Sam?

Back 5

a) The Four-Year Salesperson License
b) An Original Salesperson License
c) A Restricted Salesperson License
d) A Conditional Salesperson License

Front 6

The law judge has just issued a decision based upon the findings in a formal hearing of a real estate salesperson for various ethical violations. What is the role of the California Real Estate Commissioner at this point in the proceeding?

Back 6

a) Dismiss the findings if the charges are not sustained at the hearing.
b) Bring the charges against the licensee and present the case.
c) Reduce the proposed penalty and make an official decision.
d) Both A and C

Front 7

Bill the broker received a very high offer on a piece of property from a buyer. Bill makes a low offer through a "dummy" purchaser, or an accomplice who is not a buyer at all. Bill then sells the property to the buyer for the higher price, with the difference being profit. What's the violation?

Back 7

a) Commingling
b) Secret Profit
c) False Promise
d) Dishonest Dealing

Front 8

Jan failed to renew her license prior to its expiration. In order to renew her license now Jan must:

Back 8

a) Submit a proper application within 2 years of her license expiration.
b) Providing evidence of the completion of current required continuing education.
c) Pay the appropriate late renewal fee.
d) All of the above.

Front 9

Sam, a broker, thought the postage meter stamp was sufficient evidence of a U.S. Postal Service postmark. He was wrong and his broker's license expired. What happened next?

Back 9

a) Sam's broker's license expired; so he had to cease all of his licensed activities. However, his salespersons still possess active licenses and may continue with business while Sam is temporarily unlicensed.
b) Sam must immediately stop his licensed activity and his salespersons all lose their licenses as well. All must re-take the state license examination to re-activate their licenses.
c) Sam must immediately stop his licensed activity. His salespersons are all placed immediately in non-working status, and his branch office licenses are cancelled. He must then take all necessary steps to re-activate his license, his salespersons' licenses and the branch office licenses.
d) Sam must stop his licensed activity until he re-activates his license. The only salespersons affected are those with conditional salesperson licenses. They may not re-activate their status and must complete the required courses to obtain a four-year salesperson license.

Front 10

Katrina had her license suspended for making false promises to clients. She had a habit of telling clients what they wanted to hear and never being able to state the facts. Of course, she could never follow through with her statements and several complaints were filed. Which guidelines constitute most suspensions?

Back 10

a) Sections 10176 and 10177 of the Business and Professions Code.
b) Sections 10176 and 10177 of the Regulations of the Commissioner.
c) Section 11350.6 of the Welfare and Institutions Code.
d) Section 17910 of the California Code.