Chapter 1 Flashcards
Real Estate Law
Part of the business and professions code; divided into two parts; part 1 covers licensing; part 2 covers transactions and include the subdivided lands law
Regulation of the Real Estate Commissioners
Real estate licensees are subject to this; serves to clarify and interpret the Real Estate Law
California Bureau of Real Estate (CalBRE)
Headed by the real estate commissioner; administers the Real Estate Law in California
Real Estate Advisory Commission
Makes recommendations to the Real Estate Commissioner on matters involving CalBRE
Real estate salesperson
Aka sales associate; can act only under the control and supervision of the real estate broken by whom the salesperson is employed
Real estate brokerage
Business in which real estate license-related activities are performed under the supervision of a real estate broken; can consist of only 1 broker and no employees; may be large enough to have specials departments with many salespeople, a support staff that includes administrative and clerical works and a number of branch offices
Corporation
A brokerage may be set up as a corporation provided that at least 1 officer is a licensed broker and is designed the responsible broker-officer
Sole proprietorship
May be owned by a licensed real estate broker, a salesperson or a nonlicensee; real estate activities can only be carried out by or under the authority of a licensed real estate broker
Certificate of status
Part of the requirements for setting up a brokerage as a corporation; issued by the Secretary of State within 30 days prior to submission of the application
Caveat emptor
Common law doctrine; “let the buyer beware”
Partnership
A brokerage can be a partnership if at least one of the partners is a licensed real estate broker; every partner who performs activities that require a real estate license must be licensed as a real estate broker but there can be only one broker partner of record; at least one broker must obtain an additional license for each branch office location
Fictitious name
Any name other than that of a real estate licensee; a brokerage can do business under a fictitious business name as long as the real estate license is in that name; a fictitious business name statement must be filed with the county clerk in the county of the broker’s principal business address broker’s
Mobile home dealer
If the real estate agent displays or offers for sale two or more registered mobile homes at the agent’s place of business, the agent must also be licensed as a mobile home dealer
Mortgage loan brokerage
A real estate brokerage can also act a mortgage loan brokerage
Mortgage loan originator
Real estate license who conducts mortgage loan origination activities and U.S. Required to register annually on the Nationwide Mortgage Licensing System & Registry
Business opportunity
A transaction involving a business opportunity include business assets that are personal property, such as inventory, trade fixtures, and the business’s goodwill
Franchise
A business opportunity may also include or take the form of a franchise agreement
Uniform Commercial Code
Governs the sale or transfer of goods ordinarily held for sale in the course of business
Bulk transfer of goods
Any transfer of a substantial part of the materials, supples, merchandise, equipment, or other inventory that is not in the ordinary course of the transferor’s business
Prepaid Rental Listing Service (PRLS)
A business that supplies prospective tenants with listings of residential real property in payment of a fee collected at the same time or in advance of when the listings are supplied
Personal Responsibility and Work Opportunity Act
Took effect August 1 1998; requires that certain public benefits be withheld from illegal immigrants; benefits include professional and occupational licenses issued by state agencies
Alien Registration Receipt Card
Green card
Restricted License
In certain circumstances, such as a violation for the Real Estate Law, the Real Estate Commissioner may decide to issue a restricted license; the reduction imposed could limit the length of the license term, require employment by a particular real estate broker or contain some other condition such as the filing of a surety bonds for the protection of persons with whom the licensee does business
Blind advertising
When advertising a property, a licensee must disclose that the property is offered through a licensed real estate agent. Failure to disclose this fact and provide the name of the licensee is called blind advertising and is illegal.
Real Estate Education and Research Fund
Through the Real Estate and Research Fund, research in land use and real estate development is made possible at both public and private universities and research entities throughout the state
Recovery Account
Available to aid victims of licensee fraud, misrepresentation, deceit, or conversion (theft) of trust fund, who are awarded money damages by a court or as the result of a CalBRE administrative proceeding that are noncollectible
Multiple listing service (MLS)
The local real estate association typically conducts what may be the real estate broker and salesperson’s most valuable marketing tool – the multiple listing service (MLS)
Partnership
A brokerage can be a partnership if at least one of the partners is a licensed real estate broker; every partner who performs activities that require a real estate license must be licensed as a real estate broker but there can be only one broker partner of record; at least one broker must obtain an additional license for each branch office location
Fictitious name
Any name other than that of a real estate licensee; a brokerage can do business under a fictitious business name as long as the real estate license is in that name; a fictitious business name statement must be filed with the county clerk in the county of the broker’s principal business address broker’s
Mobile home dealer
If the real estate agent displays or offers for sale two or more registered mobile homes at the agent’s place of business, the agent must also be licensed as a mobile home dealer
Mortgage loan brokerage
A real estate brokerage can also act a mortgage loan brokerage
Mortgage loan originator
Real estate license who conducts mortgage loan origination activities and U.S. Required to register annually on the Nationwide Mortgage Licensing System & Registry
Business opportunity
A transaction involving a business opportunity include business assets that are personal property, such as inventory, trade fixtures, and the business’s goodwill
Franchise
A business opportunity may also include or take the form of a franchise agreement
Uniform Commercial Code
Governs the sale or transfer of goods ordinarily held for sale in the course of business
Bulk transfer of goods
Any transfer of a substantial part of the materials, supples, merchandise, equipment, or other inventory that is not in the ordinary course of the transferor’s business
Prepaid Rental Listing Service (PRLS)
A business that supplies prospective tenants with listings of residential real property in payment of a fee collected at the same time or in advance of when the listings are supplied
Personal Responsibility and Work Opportunity Act
Took effect August 1 1998; requires that certain public benefits be withheld from illegal immigrants; benefits include professional and occupational licenses issued by state agencies
