Ch 16 - CA Real Estate License Law

Question 1

California real estate laws are found in the:

Answer 1

Business and Professions Code.

Question 2

Irma Craft, a real estate salesperson for Luckless Realty, has an arrangement with Rid X Pest Control Services to receive a $25.00 referral fee for any customer she refers to Rid X. This arrangement is:

Answer 2

grounds for disciplinary action by the Commissioner.

Question 3

A broker may be disciplined for all of the following EXCEPT:

Answer 3

placing a definite expiration date in an exclusive listing agreement.

Can be disciplined for:
failing to supervise an associated licensee.

placing earnest money deposits into the brokerage’s business account and then transferring the funds to the trust account within three business days.

drawing commission from the trust account 30 days after it was earned.

Question 4

A licensee can advertise a listed property by means of a blind ad when:

Answer 4

The licensee can never distribute a blind advertisement.

Question 5

The first renewal of a real estate license requires completion of __________ hours of continuing education during the previous four years.

Answer 5

45

Question 6

Copies of an offer to purchase a property must be given to the offeror:

Answer 6

immediately upon obtaining the offeror’s signature on the offer.

Question 7

The Real Estate Fund and its Consumer Recovery Account is funded by:

Answer 7

real estate license fees.

Question 8

A Real Estate Commissioner candidate must have a minimum of five years real estate experience within the last __________ years to be appointed by the Governor.

Answer 8

ten

Question 9

To qualify for a broker’s license, the applicant must:

Answer 9

complete eight statutorily required college-level courses.

Question 10

In California, a real estate license must be renewed every:

Answer 10

four years.

Question 11

A licensee hired by a broker to engage in real estate activity on behalf of the broker must:

Answer 11

receive all compensation from the broker.

be employed under the terms of a written agreement that documents their employment relationship.

never infer to a customer or client that they are in business for themselves.

All of the above

Question 12

All transactional documentation for listings, purchase and sale agreements, property management activities, exchanges, and trust account records must be retained for a period of:

Answer 12

three years.

Question 13

Commingling is:

Answer 13

depositing trust funds with personal or business funds.

Question 14

Trust funds are best defined as:

Answer 14

anything of value to be held for a client or customer.

Question 15

A real estate license entitles a licensee to represent a client in:

Answer 15

property management activity.

business opportunities.

loan brokerage.

All of the above

Question 16

The commission rate to be given by a seller as set forth in the listing agreement is:

Answer 16

negotiated between the broker and seller.

Question 17

In California, real estate law is enforced by the:

Answer 17

Real Estate Commissioner.

Question 18

If a salesperson quits or is discharged by his or her broker, the broker is required to return the salesperson’s license within:

Answer 18

three business days.

Question 19

Larry is a broker representing Mark Wood in the sale of his house. Mark is in Europe for two weeks and cannot be reached. Kellie Jones, the buyer of the property, contacts Larry to advise him that the closing needs to be extended for one week. Larry, knowing that Mark will benefit from the extension because he will not be given possession of the house he has purchased until his sale closes, signs Mark’s name to an addendum extending the closing.

Answer 19

exceeded the scope of his authority and violated real estate law