Real Estate Practice and Ethics Flashcards

Under California law, how long must a real estate broker retain transaction records?

Answer: 3 years

California requires brokers to retain transaction records for a minimum of three years from the date of closing.

Which term describes the illegal practice of directing buyers toward or away from neighborhoods based on race or ethnicity?

Answer: Steering

Steering is the illegal practice of directing clients to or away from certain areas based on protected characteristics.

A licensee who has a personal interest in a transaction MUST:

Answer: Disclose the interest to all parties

California law requires licensees to disclose any personal interest they have in a transaction to all parties involved.

What is 'blockbusting' in real estate?

Answer: Inducing owners to sell by exploiting fears about changing neighborhood demographics

Blockbusting is the illegal practice of inducing homeowners to sell by creating fears about minorities moving into the area.

Under California real estate law, a listing agent owes which duties to the seller?

Answer: Loyalty, disclosure, confidentiality, diligence, and accounting

A listing agent owes the seller fiduciary duties including loyalty, disclosure, confidentiality, diligence, and accounting.

What must a California real estate licensee provide to buyers and sellers at the first substantive contact?

Answer: The Disclosure Regarding Real Estate Agency Relationships form

California law requires licensees to provide the Agency Disclosure form at the earliest practical opportunity to clarify representation.