General Practice Flashcards

A real estate broker’s advertisements need to include:

Answer: the name of the broker and license number

California Real Estate Law mandates that a broker's advertisements must clearly identify the licensee responsible for the ad. This includes displaying the broker's name and license number. This requirement ensures transparency and accountability, allowing consumers to easily identify and verify the credentials of the advertising party.

An unlicensed assistant may

Answer: . prepare a comparative market analysis (CMA) for a client

Unlicensed assistants are permitted to perform administrative tasks that do not require a real estate license. Preparing a Comparative Market Analysis (CMA) involves gathering data and compiling information, which is considered an administrative function, as long as the assistant does not interpret the data or advise the client on pricing. Activities like showing property or discussing terms are considered licensed activities.

Roland, a broker, arranges a sale and opens escrow. Before escrow closes, his license is revoked by the California Bureau of Real Estate (CalBRE). What happens to Roland’s commission?

Answer: Roland gets his commission

A broker earns their commission when they produce a ready, willing, and able buyer and the transaction is initiated, typically when a purchase agreement is signed and escrow is opened. Even if the broker's license is revoked after the services that led to the sale were performed and the transaction is in progress, they are still entitled to the commission for the work completed while licensed. The revocation affects future transactions, not those already earned.

Real estate licenses are issued for:

Answer: four years.

In California, real estate salesperson and broker licenses are issued for a period of four years. Licensees must renew their licenses every four years and complete specific continuing education requirements to maintain their active status. This regular renewal process ensures licensees stay current with real estate laws and practices.

Robert, a developer who is unlicensed, hires Yvonne, a broker, to sell his properties. While Yvonne is out of town, Robert shows property, quotes prices and makes sales. Have Robert or Yvonne violated the Real Estate Law?

Answer: Neither Robert nor Yvonne has done anything wrong.

An unlicensed owner of real property is legally permitted to sell their own property without needing a real estate license. Since Robert is the developer and owner, he is selling his own properties, which does not require a license. Yvonne, the broker, is not involved in Robert's direct sales activities, so neither party has violated the Real Estate Law in this scenario.

Which of the following is true?

Answer: Both a. and b

California Real Estate Law requires every real estate broker to maintain a definite place of business within the state, ensuring a physical location for operations and record-keeping. Additionally, all advertisements must include the licensee's name and license number for transparency and accountability. Therefore, both statements are true requirements for real estate brokers.

A salesperson’s commission is paid by

Answer: the broker.

A real estate salesperson operates under the license and supervision of a real estate broker. Legally, the salesperson is an agent of the broker, and any commission earned from a transaction is paid directly to the broker. The broker then pays the salesperson their agreed-upon share of the commission, as per their employment agreement.

The __________ prohibits an employer from discriminating against a person with a disability seeking employment based on their disability.

Answer: Americans with Disabilities Act (ADA)

The Americans with Disabilities Act (ADA) is a federal law that prohibits discrimination against individuals with disabilities in all areas of public life, including employment. It requires employers to provide reasonable accommodations to qualified individuals with disabilities, ensuring equal employment opportunities and preventing discrimination based on disability.

Salesperson Sally advertised in a newspaper that anyone who bought a home through her services would receive a free home appliance valued up to $500. Such an advertisement is:

Answer: legal, provided full disclosure is made to all interested parties

Offering incentives or gifts, such as a free home appliance, to clients is generally legal in California, provided that full and complete disclosure of the offer is made to all interested parties. This transparency ensures that everyone involved in the transaction is aware of the incentive and that it does not mislead or unfairly influence the parties.

A prohibition against a “For Sale” sign in a residential neighborhood is:

Answer: violates the First Amendment.

A prohibition against 'For Sale' signs in a residential neighborhood is generally considered a violation of the First Amendment right to freedom of speech. The Supreme Court has ruled that such signs are a form of commercial speech protected by the First Amendment, and blanket prohibitions are usually unconstitutional unless they serve a compelling government interest and are narrowly tailored.

A newspaper advertisement is considered “blind” when it:

Answer: fails to state the fact the advertiser is a broker or agent and does not include their California Bureau of Real Estate (CalBRE) license number

A 'blind ad' is an advertisement that does not clearly indicate that the advertiser is a licensed real estate broker or agent, and it typically omits their license number. This practice is illegal because it misleads the public by concealing the professional nature of the advertiser, preventing consumers from verifying the legitimacy and credentials of the party placing the ad.

If a group of brokers agreed to divide a market area or set commission rates, it would:

Answer: violate Anti-Trust Law

Agreements among brokers to divide market areas or set fixed commission rates are considered anti-competitive practices. These actions violate federal and state antitrust laws, such as the Sherman Antitrust Act, which are designed to promote fair competition and prevent monopolies or price-fixing that harm consumers.

Any suggestion by a licensee that the racial makeup of a neighborhood is changing to induce panic selling is an example of:

Answer: blockbusting

Blockbusting is an illegal practice where real estate licensees induce homeowners to sell their properties by making representations that the racial or ethnic composition of the neighborhood is changing, often implying a decline in property values. This tactic aims to create panic selling, allowing the licensee to profit from rapid turnover of properties.

The Uniform Commercial Code, which pertains to a bulk sale transfer, exists primarily for the protection of:

Answer: creditors

The Uniform Commercial Code (UCC) provisions related to bulk sales transfers are primarily designed to protect the creditors of a business being sold. These provisions require the buyer to notify the seller's creditors of the impending sale, ensuring that creditors have an opportunity to make claims against the seller's assets before the business is transferred, thus preventing the seller from defrauding them.

When purchasing a business, the buyer needs to be certain a certificate of clearance has been issued by the:

Answer: State Board of Equalization (SBOE).

When purchasing a business, especially one that collects sales tax, the buyer needs to ensure that the seller has paid all sales and use taxes. A certificate of clearance from the State Board of Equalization (SBOE), now California Department of Tax and Fee Administration (CDTFA), confirms that the seller has no outstanding tax liabilities. Without this, the buyer could become liable for the seller's unpaid taxes.

The best guideline to determine whether an action is ethical can be found in:

Answer: the Business and Professions Code.

In California, the Business and Professions Code contains the Real Estate Law, which sets forth the ethical and legal standards for real estate licensees. While other sources like the NAR Preamble offer ethical guidance, the Business and Professions Code provides the legally enforceable framework and specific guidelines that licensees must adhere to, making it the primary determinant of ethical and lawful conduct.

A prospective buyer is interested in purchasing a vacant lot in a rural subdivision. The buyer wishes to know about sewer assessments, liens, utilities to the lot, blanket encumbrances and street maintenance. The source that provides all of this information is the:

Answer: Real Estate Commissioner

The Real Estate Commissioner, through the California Bureau of Real Estate (CalBRE), is responsible for regulating the sale of subdivided lands. When a developer creates a subdivision, they must obtain a Public Report from the Commissioner, which discloses crucial information about the lots, including assessments, liens, utilities, and other material facts relevant to prospective buyers.

If a licensee’s name is on a list of obligors who have not complied with a court-ordered payment of child support, the licensee’s renewal application will:

Answer: renew as a temporary license, but the debt must be paid within 150 days

In California, if a licensee is on a list of child support obligors, their real estate license renewal will be issued as a temporary license. This temporary license is valid for 150 days, during which the licensee must resolve the outstanding child support debt. Failure to do so within the 150-day period will result in the suspension of their license.

State regulations in California contain a statement that prohibits discrimination due to race, color, religion, marital status, national origin, or ancestry. Discrimination in which of the following areas would not be a direct violation of the Rumsford Act?

Answer: Unimproved land to be used for a commercial development.

The Rumsford Act (now part of the Fair Employment and Housing Act, FEHA) in California primarily prohibits discrimination in housing accommodations. This includes residential properties, vacant land intended for residential use, and apartment buildings. However, it typically does not extend to unimproved land specifically designated for commercial development, as its focus is on ensuring equal access to housing.

Commingling involves the mixing of one client’s monies with

Answer: Any of the above.

Commingling is the illegal practice of mixing a client's funds with the broker's personal funds or the brokerage firm's operating funds. It also includes mixing one client's funds with another client's funds without proper accounting and authorization. This practice is prohibited to protect client money and ensure proper fiduciary responsibility.