Chapter 1 Business of Real Estate

Question 1

Associate License

Answer 1

A real estate sales person or broker who works as the employee of a real estate person.

Question 2

blind advertising

Answer 2

Ad in which the names of the person placing the ad is not mentioned.

Question 3

broker-officer

Answer 3

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.

Question 4

bulk transfer of goods

Answer 4

Any transfer of a substantial part of the materials, supplies, merchandise, equipment, or other inventory of a business that is not in the ordinary course of the business’ activities.

Question 5

Business and Professions Code

Answer 5

California code that contains the real estate law, which includes real estate licensing, transaction requirements, and the Subdivided Lands Law.

Question 6

business opportunity

Answer 6

The assets of an existing business enterprise, including its goodwill.

Question 7

CALBRE

Answer 7

California Agency that administers the real estate law, including the licensing of real estate brokers and sales people.

Question 8

Caveat emptor

Answer 8

A latin phase meaning that means let the buyer beware,

Question 9

certificate of status

Answer 9

A document issued by California Secretary of State showing a corporations place of domicile, date of incorporation, corporate number, name and address of agent for service of process and other information.

Question 10

codes

Answer 10

Bound volume of laws and regulations

Question 11

conditional licenses

Answer 11

A person who is working on but not has completed the process in obtaining a realtor license

Question 12

fictitious business name statement

Answer 12

Document indicating the name under which a business is operating; filed with the country where the business is located.

Question 13

franchise

Answer 13

A Contract or agreement between the franchisor (grantor)

and the franchisee (grantee).

Question 14

mobile home dealer

Answer 14

Agent who displays or offers for sale two or more mobile homes at his or her place of business ; requires license by Ca. Dept. of Housing and community Dev.

Question 15

mortgage loan brokerage

Answer 15

An individual or company that brings borrowers and lenders together.

Question 16

mortgage loan originator (MLO)

Answer 16

A real estate licensee who conducts mortgage loan origination activities and is required to register annually
on the Nationwide Mortgage licensing system and registry

Question 17

Prepaid Rental Listing Service (PRLS)

Answer 17

Business that supplies prospective tenants with property listings on payment of a fee

Question 18

Real Estate Advisory Commission

Answer 18

A ten- member group appointed by the real estate commissioner that makes recommendations to the Commissioner on matters involving the CAlBRE

Question 19

Real Estate Broker

Answer 19

A person employed for a fee by another to carry on any of the activities

Question 20

real estate brokerage

Answer 20

Business licensed to conduct activities under authority of real estate broker’s license.

Question 21

Real Estate Commissioner

Answer 21

The person designating and managing the Licensing of the state

Question 22

Real Estate Education and Research Fund

Answer 22

California fund financed by a fixed portion of real estate license fees, designated to encourage research in land use and real estate development.

Question 23

real estate law

Answer 23

Portion of the California Business and Professions code regarding licensing or real estate brokers and salespeople and activities of the CalBRE; also includes Subdivided Lands Laws

Question 24

real estate sales person

Answer 24

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

Question 25

recovery account

Answer 25

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 an court-ordered judgment cannot be collected

Question 26

Regulations of the Real Estate Commissioner

Answer 26

Rules that clarify and interpret the Real Estate Law and that are binding on real estate licensees

Question 27

restricted license

Answer 27

Real Estate license on which one or more conditions are imposed by the Real Estate Commissioner as the result of a disciplinary action.

Question 28

sales associate

Answer 28

A Real estate person or broker who works as the employee of a real estate broker

Question 29

Uniform Commercial Code

Answer 29

Building codes that are developed by national or international groups adopted by states and local jurisdictions.