Real Estate Practice and Ethics Flashcards

A broker who represents both the buyer and seller in the same transaction is known as:

Answer: A dual agent

A dual agent represents both the buyer and seller in the same transaction, requiring written consent from both parties in California.

What is 'redlining' in real estate?

Answer: Refusing to make loans or provide services in certain areas based on race or ethnicity

Redlining is the illegal practice of denying services or loans in certain areas based on the racial or ethnic composition of the neighborhood.

Under California law, all funds received by a broker on behalf of a client must be deposited into a trust account within:

Answer: 3 business days

California law requires brokers to deposit client funds into a trust account within three business days of receipt.

A seller refuses to accept an offer because the buyer is of a certain religion. This is a violation of which law?

Answer: The Federal Fair Housing Act

The Federal Fair Housing Act prohibits discrimination in the sale, rental, or financing of housing based on religion, among other protected classes.

How many continuing education hours must a California real estate salesperson complete to renew their license for the first time?

Answer: 45 hours

For first-time renewal, California salespersons must complete 45 hours of DRE-approved continuing education.

Which principle requires that a real estate licensee avoid placing their own interests above those of their client?

Answer: Duty of loyalty

The duty of loyalty requires licensees to put their client's interests ahead of their own in all matters related to the agency relationship.