Chapter 1

Question 1

DRE

Answer 1

The California dept. of real estate, which governs all real estate licensing and enforces the California real estate commissioners regulation

Question 2

cold calls

Answer 2

calling prospective clients who are not known to the salesperson

Question 3

commingling

Answer 3

the illegal mixing of client and broker funds

Question 4

commission split

Answer 4

what percentage goes to the salesperson and what percent goes to the broker

Question 5

conversion

Answer 5

the illegal practice of misappropriation and using the clients money

Question 6

cooperating broker

Answer 6

brokers (listing and selling) who agree to split commission

Question 7

corporation

Answer 7

a form of ownership considered a legal “artificial being” conducting business under its California chartered name

Question 8

domain name

Answer 8

the unique name that identifies a website

Question 9

dual agency

Answer 9

when a broker represents more than one party (both buyer and seller).

Question 10

employees

Answer 10

this person works under the direct control and supervision of the employer

Question 11

errors and omission insurance

Answer 11

most brokers carry this professional liability insurance to protect themselves and their agents against lawsuits

Question 12

fiduciary relationship

Answer 12

brokers owe a duty of the highest care and confidentiality to their principals (clients) whose interest they promote even at the cost of some greater benefits to themselves

Question 13

geographical farm

Answer 13

a group of households within a geographical area with whom the agent stays in touch with on a regular basis

Question 14

green office

Answer 14

the goal here is to create a healthy work environment, conserve energy, and reduce pollution

Question 15

independent contractor

Answer 15

this person sells results rather than time, and his or her physical conduct is not subject to the control of others

Question 16

office policy manual

Answer 16

guide found in most brokerage offices to help handle recurring situations and is designed to give rules and policies for the staff

Question 17

100% commission

Answer 17

a commission system where the broker pays all of the commission but charges the salesperson a desk fee of $750 to $1000 a month

Question 18

partnership

Answer 18

an association of two or more persons as co-owners of a business for profit

Question 19

reverse directory

Answer 19

a website or publication where numbers are listed by address rather than name

Question 20

sales kit

Answer 20

an inventory of items, or aids, that you may need in your daily real estate activities

Question 21

sole proprietorship

Answer 21

an office run by one owner solely responsible for all decisions

Question 22

sphere of influence

Answer 22

a list of prospects that an agent regularly contacts in the hope they will become clients

Question 23

straight commission

Answer 23

the broker usually does not charge a desk fee, but pays the agent based on a set percentage of the selling price at the close of escrow

Question 24

stock

Answer 24

owners of a corporation each own shares of this as evidence of ownership

Question 25

training

Answer 25

hands on experience to improve performance or skill

Question 26

transaction file

Answer 26

includes all property contracts documents, and disclosures signed or initialed by the principals.

Question 27

warm calls

Answer 27

calls made to people you know and are usually more productive

Question 28

zipforms

Answer 28

catalog of contract forms widely used in California and available for free to CAR members