This is a timed quiz. You will be given 60 seconds per question. Are you ready?
The certificate of clearance, issued by the State Board of Equalization (SBOE), assures the buyer of a business opportunity that any taxes due have been paid.
Please select 2 correct answers
A buyer of a condominium or property in a planned urban development (PUD) has the right to receive copies of all the association and subdivision information and documents. A homeowner warranty is an insurance policy that is purchased separately by the buyer.
Real estate brokerage is a profession. Therefore, any question about proper business practice is controlled by the Business and Profession Code.
The Rumsford Act applies to one-to-four unit residential properties as well as vacant land designated for residential use
The lack of disclosure between the broker and the buyer causes the broker to be the responsible party. Therefore, the buyer may recover from both the seller and the broker. Further, the seller may also recover from the broker since the broker was informed of the leaky roof by the seller and did not disclose it to the buyer. In actual practice, the seller would have disclosed the leaky roof in the Transfer Disclosure Statement (TDS).
No government agency or private trade organization establishes fees. A broker’s fee is set between the broker and client
A salesperson is “an agent of the agent” and always works for the broker who represents the principal. Thus, the commission is paid to the broker who then distributes the monies according to the terms of the salesperson/broker agreement.
As with Question 2, the lack of licensee identification creates the blind ad.
— The Americans with Disabilities Act (ADA) protects against discriminatory conduct against a person seeking employment.
Any restraint of trade is a federal anti-trust violation.
— Robert is the owner of the property being sold. Thus, the sale is considered a for sale by owner (FSBO) transaction which does not require a license, as the private seller is acting for their own account, not as an agent of another.
Without the disclosure of the broker’s name and license number, this type of advertisement is considered a prohibited “blind ad.”
— Such a prohibition violates the First Amendment which protects against unreasonable restrictions on free speech
An unlicensed assistant may be employed to perform nondiscretionary administrative activities, such as write up documents including contracts and comparative market analyses (CMAs), as long as they are reviewed by the broker. However, most interactions with the public are not allowed.
Disclosure is the critical point in this question. There is nothing wrong with purchasing the property, provided the broker makes full disclosure to the client and receives their consent.
— Commingling is the mixing of client’s monies with those of other clients or the agent. This is in contrast to conversion, which is the use of client funds by the agent or their office for their own use.
The broker’s commission is earned when a ready, willing, and able buyer is found. Thus, since the broker was licensed at the time he procured a buyer as contracted for, he is able to collect his fee
The Real Estate Commissioner issues a public report on all rural subdivisions containing this sought after information.
Creditors need protection from those who might attempt to walk away from their debt obligations
A licensee’s name and license number is required on all promotional materials, including business cards. Further, a broker needs to have a physical address on record with the California Bureau of Real Estate (CalBRE) to receive mailings and be subject to state audits.
A real estate license needs to be renewed every four years by completing 45 hours of continuing education.
On renewal of their license, failure to pay child support will cause a licensee to receive a temporary license allowing 150 days to resolve the arrears.
Property ownership is not a requirement for obtaining a California Bureau of Real Estate (CalBRE) license
Disclosure is key to most such questions. Provided everyone is made aware of the promotion and its terms, this is a perfectly acceptable business practice
— Blockbusting, also known as panic selling, is the prohibited practice of inducing a person to offer a dwelling for sale by creating fear over the changing demographics within the neighborhood.
