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27 Cards in this Set
- Front
- Back
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The real estate law is that law that governs -the licensing and conduct of RE licensees -leasing real property -the rights of property owners -the terms of an agreement in a RE transaction |
the licensing and conduct of RE licensees; RE Law is designed mainly for the protection of the public in RE transactions |
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A restricted license is a license given to RE assistants who do not negotiate sales transactions. True or false |
False - it is a type of probationary license issued when a license has been suspended, revoked, or denied after a hearing. |
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if an agent misappropriates his or her principal's money, he or she is guilty of: -secret profit -puffing -conversion -estoppel |
Conversion |
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a broker is assured a client that a loan could be found at 5% even though there were no such loans available. when it came time to sign the agreement, the rate offered was 7%. The buyer felt he had to accept the loan bc he had already given notice at his apartment complex. -the broker acted unethically -the broker acted illegally -the broker acted legally -the doctrine of caveat emptor applies |
the broker acted illegally; guilty of misrepresentation and fraud. code sections 10776 a, b, i |
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The federal bureau of investigations has the power to suspend a person's real estate license. True or false |
False; commissioner enforces the provisions of RE law and has the power to restrict suspend, or revoke a person's RE license |
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How long does someone have from the time of application for a RE license to complete all qualifications and take the exam? -three years -four years -two years -one year |
Two years |
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Causing someone to sell property due to the present or prospective entry of people from a specific ethnic background is known as blockbusting. True or false |
True |
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what type of license is issued when a license has been suspended, revoked, or denied after a hearing? -grace period license -restricted license -none of the choices apply -conditional license |
Restricted license |
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a RE broker holds a broker license issued by the Bureau of RE. True or false |
True |
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Broker Len held and open listing to sell a house that provided for len to receive a 6% commission. Len orally agreed to split the commission with Broker Porter if Porter found the buyer. Porter did so, but at close of escrow Len kept the entire commission. under these circumstances, porter: -does not have a legal claim for a commission bc of open listing -has recourse by means of a civil suit -has recourse under the statute of Frauds -has recourse under the RE law |
has recourse by means of a civil suit; commission disputes are generally civil, not criminal, matters |
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how many times can a person retake a real estate license examination? -twice -three times -10 times -unlimited |
unlimited |
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a RE agent might prepare or sign documents or legal instruments that may have a material effect on the rights or obligations of those entering the transaction. the supervising broker must review, initial, and date these documents or instruments within five days or before the close of escrow. however, the broker may delegate these duties to a salesperson to review items prepared by other salespeople provided that the delegated sales person has: -been employed by that same broker: at least 2 years -at least 2 years experience within past 5 yrs and has completed 18 units of college-level courses related to RE -been employed by the same broker for at least 2 years full time and has completed at least 18 units -at least two years full-time experience as a RE within past five years |
at least two years full-time experience as a RE salesperson within the past 5 years; 2724, |
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California has reciprocity with other state to waive the necessary license requirements. True or false |
False |
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a licensed salesperson gave notice of leaving the RE brokerage office to the employing broker. what, if anything, must the broker do with the salesperson's license? -leave the license unmarked and gives it to the next broker -broker returns the license to the salesperson and notifies the RE commissioner - mark the license as inactive, returns it, and notifies the commissioner - marks the license cancelled and mails it to the commissioner |
Broker returns the license to the salesperson and notifies the RE commissioner |
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if a licensee misappropriates a principal's funds, it is known as conversion. True or False |
True; conversion is misappropriating and using principal's funds. |
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Pat believes the property is 10% overpriced, and he knows that major structural repairs are required. advertisement: Charming 2 BDRM victorian. Move in right away! Wait 'til you see the price! Ready for you! Call Pat at 555-1212." what, if anything, is wrong with the advertisement. -there is no asking price: regulation z was violated - it was unlawful bc pat knew structural work was required and the ad did not state this -unethical advertisement for overpriced property -newspaper co. liable for damages if anyone purchased the property as a result of the advertisement. |
It was unlawful because pat knew structural work was required and the ad did not state this. advertisement can't be described as ready to be moved in. 10140 |
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minor disputes between consumers and licensees is handled by the advocacy program. true or false |
true: advocacy program handles this as an alternative to setting up formal investigation |
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Which of the following must have a current and valid CA RE license? -short-term rental agent (vacation) -a trustee conducting a trust deed foreclosure sale -a resident manager of an apartment building -a mortgage loan broker |
a mortgage loan broker; 10131 |
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a two-year grace period is the period of time after a license expires that renewal is allowed. True or false |
True: as long as all real estate activity has ceased during that time and a late fee is paid at the time of renewal |
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broker kim, who is not a member of any trade organization, has been trying out a new advertising slogan: "a new breed of realtor." this practice is: -violation of Fair housing laws -acceptable as long as she is not licensed in more than one state -permissible, providing the word realtor is not capitalized - grounds for revocation or suspension of her real estate license |
grounds for revocation or suspension of her real estate license. 10177. misuse of Realtor trade name. |
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after close of escrow, the actual selling price of the property must be disclosed to both buyer and seller within: -1 month -15 day -10 day -5 day |
1 month; 10141 requires that a broker notify the buyer and the seller of the selling price within one month after completion of the sale. usually done by the escrow company. |
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in a formal hearing, a licensee cannot be represented by an attorney. True or false |
False; the commissioner is the complainant and brings the charges against the licensee. licensee may appear with or without an attorney |
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which statement is correct regarding real estate license? - the ownership of the brokerage must be as a corporation -the broker may have only one office -the RE commissioner does not allow a fictitious business name to be used for a re brokerage -a re broker may open a re brokerage in his or her name |
a RE broker may open a RE brokerage in hir or her name. |
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a four-year RE license can be issued or renewed to applicants who owe child support payments. True or false |
False: if delinquent the license will not be renewed |
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The RE law is part 1 of the business and professions code. True or false |
True: is titled "licensing of persons" and is called the RE law |
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If a RE licensee is listed as an obligor by the California Department of Child Support Services, can he or she ruin his or her RE license? - yes, calibre is not concerned with the obligor list -yes, the licensee may be issued a 150-day temp license -no, license is cancelled -No, calbre revokes the license of anyone who owes |
Yes, the license may be issued a 150-day temp license; during the 150 days, a person must show CalBRE proof that the delinquency is cleared and they have been removed from the list. |
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An out of state applicant for a CA RE license must include all of the following, except: -an irrevocable consent to service of process - proof of legal presence in the US - a set of classifiable fingerprints -approval from the department of commerce |
approval from the department of commerce. You will need to include: fingerprints, proof of legal presence, and an irrevocable consent to service of process |
