CH 2 CA State Department of RE

Question 1

What is the DRE’s mission?

Answer 1

To protect the public in real estate transactions and provide related services to the real estate industry.

Question 2

Who enforces CA real estate laws and real estate licensing laws?

Answer 2

the DRE

Question 3

The revenue necessary to operate the DRE is derived from where?

Answer 3

fees charged for real estate licenses, subdivision public reports, and other permits

Question 4

District offices are located in what five cities?

Answer 4

Sacramento, Fresno, Los Angeles, Oakland, and San Diego

Question 5

What is police power?

Answer 5

the right of the sate to enact and enforce laws for the safety of the public

Question 6

The CA legislature used policy power to create what position?

Answer 6

the Commissioner

Question 7

Who appoints the CA Commissioner?

Answer 7

the governor

Question 8

Who is given power to issue regulations?

Answer 8

the Commissioner

Question 9

What is the Commissioners responsibility/ mission?

Answer 9

to enforce RE laws and Subdivided Land Laws in a way to offer max protection for the consumer

Question 10

The Commissioner’s principal office is located in what city?

Answer 10

Sacramento

Question 11

In a situation where an action is brought against the Commissioner, who will act as their attorney?

Answer 11

the Attorney General

Question 12

If a broker compensated a non licensed person for real estate acts in which need a license to be perform, what is the broker guilty of?

Answer 12

a misdemeanor and may be fined by the courts

Question 13

Salespersons’ licenses must be available for inspection where?

Answer 13

in the broker’s main office

Question 14

Who can a salesperson be compensated/ paid by?

Answer 14

only by the broker who employees them, NO one else can compensate them

Question 15

How long does the sales person license last?

Answer 15

4 years

Question 16

What is a DBA?

Answer 16

a fictional business name

Question 17

A Corporation Change Application is used when?

Answer 17

when there is a change in a corporations name

Question 18

When is a Salesperson Change Application (RE 214) used?

Answer 18

when there is a change of salesperson

Question 19

When is a Corporation Change Application used?

Answer 19

If there is a change in the location of the main office or the mailing address

Question 20

How can you obtain forms from the DRE?

Answer 20

at any DRE office or by writing the main office in Sacramento

Question 21

Where can an application for an exam or license be given to?

Answer 21

any DRE office or mailed to Sacramento

Question 22

A license application must be submitted along with?

Answer 22

license fee, completed fingerprint card, and finger print processing fee

Question 23

What form does a broker applicant use if they were a real estate salesperson in another state?

Answer 23

RE 226 Employment Verification

Question 24

What form does a broker applicant use if they were a broker in another state?

Answer 24

RE 228 Employment Certification ; two parties who can verify employment must fill out the form

Question 25

A corporation may be licensed as a real estate broker if…

Answer 25

at least one officer of the corporation is a qualified real estate broker willing to act as the corporation's responsible designated broker-officer.

Question 26

EACH broker who is to act for and on behalf of a corporation as a broker-officer must submit what?

Answer 26

a completed Corporation License Application

Question 27

If a broker or salesperson applicant changes his/her address, employer, criminal history or license history after applying, he must file what?

Answer 27

an amended supplement setting forth the current information with the Commissioner

Question 28

Who is exempt from fingerprint requirements?

Answer 28

someone who is either currently licensed by the DRE OR who has held a real estate license that expired less than two years ago

Question 29

What is the DOJ's Live Scan Program?

Answer 29

program where RE applicant submit fingerprints through

Question 30

All California real estate licenses are issued for a period of how many years?

Answer 30

four years

Question 31

Where can a person find current info on education requirement for license renewals?

Answer 31

by contacted the DRE’s Licensing Information Section OR obtain a copy of “Instructions to License Applicants” from any DRE office

Question 32

What is a Continuing Education Course Verification (RE 251) form used for? When can it be sent to the DRE?

Answer 32

to verify completion of continued education requirements for license renewal AND no earlier than 60 days before license is set to expire

Question 33

Who is exempt from continuing education requirements for license renewal?

Answer 33

individuals who have been licensed in good standing for 30 years continuously in CA AND who is also 70 years +

Question 34

The application for license renewal must be postmarked when?

Answer 34

prior to midnight of the expiration date of the current license

Question 35

How long after a license expires, does a sales person have to renew it before having to re take the exam?

Answer 35

2 years

Question 36

What does Section 11350.6 of the Welfare and Institutions Code state?

Answer 36

that the DRE may NOT issue or renew a full-term license if the applicant is not paying child support

Question 37

What is Non-Working Status?

Answer 37

when a salesperson holds a license but is not employed by a broker, they can not perform RE activities until employed

Question 38

Where can a person find the up to date fees for licenses and exams?

Answer 38

any DRE district office OR at the DREs website

Question 39

Are fees for license and exams refundable?

Answer 39

NO they are not refundable

Question 40

Prepaid Rental Listing Services can not…?

Answer 40

negotiate rent contracts or perform activities that require a RE license

Question 41

Is there an exam for individual to obtain the 2-year PRLS license?

Answer 41

no exam

Question 42

What is a Prepaid Rental Listing Service (PRLS)?

Answer 42

supplying prospective tenants with listings of residential real property for rent for a fee

Question 43

A broker engaged in activities requiring a license must maintain what?

Answer 43

an office or definite place of business

Question 44

What must be available for inspection at a brokers main office?

Answer 44

brokers license and employed salespersons licenses

Question 45

If a broker changes their main office address, they must notify the DRE no later than the next business day using what application?

Answer 45

Broker Change Application (RE 204) or Corporation Change Application (RE 204A)

Question 46

What is required for each additional business location a broker obtains?

Answer 46

a branch office license

Question 47

How can a branch office location be added or deleted?

Answer 47

using a Branch Office Application (RE 203)

Question 48

An individual or corporate broker can operate under a fictitious business name after who issues a license bearing the fictitious name?

Answer 48

the DRE

Question 49

Where do out of state applicants pay the finer printing fee?

Answer 49

to the DRE with application

Question 50

What is the fee for replacing a lost license?

Answer 50

$15

Question 51

What are the broker and salesperson late renewal fees (with in two years of application)?

Answer 51

broker - $450 | salesperson - $367

Question 52

What is the fee to obtain an updated license after a change of address or employing broker?

Answer 52

$15

Question 53

How much is a corporate license fee?

Answer 53

$300

Question 54

How much is a late renewal fee for a corporate license?

Answer 54

$450

Question 55

If a broker has multiple fictitious names, the brokers main office license must display…?

Answer 55

all the fictitious names

Question 56

When does an FBNS (which is filed with the county clerk) expire?

Answer 56

at the end of five years from Dec 31 of the year it was filed

Question 57

What are the Commissioners REGULATIONS a part of?

Answer 57

The California Administrative Code

Question 58

What is he California Real Estate LAW and where can it be found?

Answer 58

regulates licensing and subdivisions in CA AND found in the Business and Professions Code

Question 59

Who has the authority to investigate the actions of any person engaged in activity that requires a real estate license?

Answer 59

The Commissioner

Question 60

If your fingerprints reveal you have a prior conviction, what action is usually taken?

Answer 60

a formal hearing to determine if the applicant meets the requirements of honestly and good reputation

Question 61

An investigation of a licensee is based upon what?

Answer 61

a written statement from a person who believes they were wronged by a salesperson or broker

Question 62

Once a real estate broker license is revoked or suspended, the licenses of every real estate salesperson in the broker's employ are what?

Answer 62

automatically canceled, those salespersons may transfer their licenses to a new employing broker

Question 63

When a salesperson is terminated by an employing broker for a violation of Real Estate Law, the employing broker must immediately file a what?

Answer 63

a certified written statement of the facts with the DRE

Question 64

If a broker does not engage in licensed activities in California, the broker must file what?

Answer 64

an Out of State Broker Acknowledgment (RE 235)

Question 65

Brokers who engage in licensed activities in California are required to maintain what?

Answer 65

a California business address

Question 66

Those license applicants or licensees who are out of state residents and wish to act as real estate licensees in the State of California must file a signed and notarized what?

Answer 66

Consent To Service of Process (RE 234)

Question 67

How does a licensee change their address with the DRE?

Answer 67

by filling a change of address notification * broker uses RE 204 * salesperson used RE 214

Question 68

Salespersons must keep their employing broker’s what on file?

Answer 68

principal place of business address

Question 69

To receive compensation from the Recovery Fund, an application must be filled within how many years of the final judgment?

Answer 69

within one year

Question 70

What is the Recovery Fund?

Answer 70

account used as a last resort to pay consumers who suffered financial loss due to a licensee acting in the capacity of an agent who committed intentional fraud or conversion of trust funds

Question 71

20% of the RE General Fund is divided as followed…

Answer 71

a. 8% for the real estate education and research fund | b. 12% for the Recovery Fund

Question 72

What is the Real Estate General Fund?

Answer 72

an account that holds ALL the money collected from license and exam fees, and is used for the operating expenses of the DRE

Question 73

What is the quarterly Real Estate Bulletin?

Answer 73

published by the DRE, distributed to all brokers and salespersons, it is intended for the education of licensees by keeping them informed of the latest administrative provisions

Question 74

Advertising of acts that require a license must contain a designation disclosing stating what?

Answer 74

that licensee is performing such acts

Question 75

Broker must cause notice of sales price to be given to both buyers and sellers within how many month after the sale is completed?

Answer 75

1 month

Question 76

Licensee must give a copy of any contract to the party signing it when?

Answer 76

at the time of signing

Question 77

All listings, deposit receipts, cancelled checks, trust records, etc. are required to be available for inspection for how long?

Answer 77

for a three-year period

Question 78

If the Commissioner pays a claim against a licensee from the Recovery Account, what happens?

Answer 78

automatic suspension of real estate licensee AND the license may not be reinstated until they reimburse the fund fully plus interest

Question 79

Who has the authority to adopt regulations to aid in the administration and enforcement of the Real Estate Law and the Subdivided Lands Law?

Answer 79

the Commissioner

Question 80

The Real Estate Law book, published by the DRE, contains what?

Answer 80

the Real Estate Law, Subdivided Lands Law, Commissioner’s Regulations, and pertinent excerpts from the California codes

Question 81

If a person gets their license revoked, how long must they wait till they can apply for reinstatement?

Answer 81

one year

Question 82

Section 10176 of The Code is the legal guideline for individuals who?

Answer 82

are acting as an agent and who hold a license

Question 83

Section 10177 of The Code is the legal guidelines for individuals who?

Answer 83

are NOT acting as an agent and hold a license