Ch. 1 - The Business Of Real Estate Flashcards
Alien Registration Receipt Card
Identification card, referred to as the green card, that provides proof of the legal presence in the United States of someone who is a citizen of another country.
Codes
Bound volumes of laws and regulations. (A series of books compiling California legislation, 29 volumes in total)
Associate licensee
A real estate salesperson who works as the employee of a real estate broker.
Blind advertising
An advertisement in which the name of the person placing the ad is not mentioned.
Broker-officer
A licensed broker who is an officer of a brokerage that is set up as a corporation and who is designated as the broker responsible for supervision of licensed employees of the brokerage.
Bulk transfer of goods
Any transfer of a substantial part of the materials, supplies, merchandise, equipment, or other inventory of the business that is NOT in the ordinary course of the business’s activities.
Business & Professions Code
California code that contains the Real Estate Law which includes real estate licensing, transaction requirements, and the subdivided lands law.
Conditional license
License that is issued to a salesperson who has not completed all of the required education courses, contingent on all education requirements being met.
Department of Real Estate (D.R.E.)
Headed by the Real Estate Commissioner, the DRE administers the Real Estate Law in California (this includes the licensing of real estate brokers and salespeople).
Fictitious business name statement
Document indicating the name under which a business is operating. Filed with the county where the business is located.
Franchise
A contract or agreement between the franchisor (grantor) and the franchisee (grantee).
Mobile home dealer
Agent who displays or offers for sale two or more registered mobile homes at the agent’s place of business; requires a licensure by the California Department of Housing and Community Development.
Real estate agents (nondealer) are permitted to handle transactions involving selling, purchasing, or exchanging.
Mortgage loan brokerage
Individual or company that brings borrowers and lenders together; in California, a real estate broker’s license also includes authority to act as a mortgage broker.
Personal Responsibility and Work Opportunity Act
Federal law effective August 1, 1998 requiring that certain public benefits be withheld from illegal immigrants, including professional and occupational licenses issued by state agencies.
Prepaid Rental Listing Service (P.R.L.S.)
Business that supplies prospective tenants with property listings on payment of a fee; may be performed by a licensed real estate broker or under the authority of the PRLS license.
Real Estate Advisory Commission
10 member group appointed by the Real Estate Commissioner that makes recommendations to the Commissioner on matters involving the Department of Real Estate.
10 members:
6 = licensed CA RE brokers
4 = nonlicensed members of public
serve w/o compensation, may be reimbursed for some expenses
Real estate broker
A person employed for a fee by a another to carry on any of the activities listed in the Real Estate Law definition of a broker.
Caveat emptor
Latin phrase meaning, “Let the buyer beware”.
Business opportunity
The assets of an existing business enterprise, including its goodwill.
Goodwill: An intangible but a salable asset of a business derived from the expectation of a continued public patronage.
Real estate brokerage
Business license to conduct activities under authority of real estate broker’s license.
Real Estate Education and Research Fund
Authorized by state law for any county that wishes to establish such a fund to help district attorneys and law enforcement agencies deter, investigate, and prosecute real property fraud crimes; Up to $2 maybe added to the county’s recording fees for such a fund.
Real Estate Law
Div. 4 of the California Business and Professions Code.
Real Estate Law has 2 parts:
Part 1. Covers licensing
Part 2. Covers transactions and includes the Subdivided Lands Law.
Real estate salesperson
AKA sales associate
AKA associate licensee
A person licensed under the provisions of the Real Estate Law to act under the control and supervision of a real estate broker in carrying on any of the activities listed in the license law.
Recovery Account
State fund financed by real estate license fees and intended to help compensate victims of real estate licensee fraud, misrepresentation, deceit, or conversion of trust funds, when a court-ordered judgment cannot be collected.
Regulations of the Real Estate Commissioner
Serves to clarify and interpret the Real Estate Law.
The primary purpose of both the Real Estate Law and the Regulations of the Real Estate Commissioner is to protect the members of the public with whom real estate licensees come into contact in their business activities.
Restricted license
Real estate license on which one or more conditions are imposed by the Real Estate Commissioner as the result of a disciplinary action.
Sales associate
AKA associate licensee
AKA real estate salesperson
person licensed under the provisions of the Real Estate Law to act under the control and supervision of a real estate broker in carrying on any of the activities listed in the license law.
Uniform Commercial Code
Establishes a unified and comprehensive method for regulation of security transactions in personal property.
Real Estate Commissioner
Appointed by the Governor.
Requirements:
-practiced CA RE broker for 5 years
OR
-engaged in some sort of real estate activity for 5 of the 10 past years
Responsibilities:
- Screens candidates for licensing
- Prepares subdivision public reports
- Conducts licensee disciplinary action
- Investigates nonlicensees performing activities for which a license is required
- Regulates nonexempt franchises and real property securities
Certificate of status
Document issued by California Secretary of State showing a corporation’s place of domicile, date of incorporation, corporate number, name and address of agent for service of process, and other information.
Corporation
A brokerage may be set up as a corporation, provided that at least one officer of the corporation is a licensed broker, and is designated the responsible broker-officer.
The corporation must submit the following to the DRE:
- The corporation license application and fee
- Certificate of status
- Statement of officers as filed with Secretary of State
