CA Real Estate Sales 1 Flashcards

In California, how long does a buyer typically have to conduct inspections and remove contingencies under a standard CAR residential purchase agreement?

Answer: 17 days

The standard California Association of Realtors (CAR) Residential Purchase Agreement sets a default contingency period of 17 days for inspections, loan approval, and appraisal unless the parties negotiate a different timeframe.

A California real estate broker receives an earnest money deposit from a buyer. Within how many business days must the broker deposit the funds into a trust account?

Answer: 3 business days

Under California Business and Professions Code Section 10145, a broker must deposit funds received on behalf of a client into a trust account within three business days of receipt, unless instructed otherwise in writing.

Under California's Agency Disclosure Law, at what point in a transaction must a licensee provide the mandatory agency disclosure form (AD) to a buyer?

Answer: As soon as practicable before the buyer signs an offer to purchase

California Civil Code Section 2079.14 requires that the agency disclosure form be provided to the buyer as soon as practicable before the buyer signs a purchase offer, ensuring the buyer understands agency relationships before committing.

Which California law requires sellers of one-to-four unit residential properties to disclose whether the property is located in a special flood hazard area?

Answer: The Natural Hazard Disclosure (NHD) Law

California's Natural Hazard Disclosure Law (Civil Code Section 1103) mandates that sellers disclose whether a property lies within a special flood hazard area, potential flooding zone, fire hazard severity zone, earthquake fault zone, or seismic hazard zone.

In California, a real estate salesperson's license is issued in whose name?

Answer: The employing broker's name

A California real estate salesperson license is issued under and affiliated with the employing broker. A salesperson may only perform licensed activities under the supervision of and on behalf of a licensed broker.

When a California listing agreement expires and the property sells within the protection period to a buyer the broker introduced during the listing term, what clause entitles the broker to a commission?

Answer: Safety clause (extender clause)

The safety clause, also called an extender clause or carryover clause, protects the listing broker's commission if the property sells after the listing expires to a buyer who was introduced or shown the property by the broker during the active listing period.