Chapter 13 - Real Estate Brokerage Vocabulary

Question 1

Broker

A fee paid in advance of any services rendered. Sometimes unlawfully charged in connection with an illegal practice of obtaining a fee in advance for the advertising of property or businesses for sale, with no intent to obtain a buyer, by persons representing themselves as real estate licensees, or representatives of licensed real estate firms.

Answer 1

advance fees

Question 2

Broker

Generically speaking, a person who, for a fee, sells, lists, leases, exchanges, negotiates, or otherwise deals in the real estate of others or represents publicly that he or she does so.

Person is an individual licensed by the state of California to arrange the sale or transfer of interests in real property for compensation.

Answer 2

Real Estate Broker

Question 3

Broker

An optional clause that brokers may include in a listing agreement that obligates the seller to compensate the broker even if the property is sold after the listing agreement expires under certain circumstances.

Also called Carryover Provision or Extender Clause.

Answer 3

Broker Protection Clause

Question 4

Broker

an account set up by a broker; withdrawals from this account may be made only by the broker.

Answer 4

broker’s trust fund account

Question 5

Broker

A business that serves as an intermediary between buyers and sellers and/or lessees and lessors of real estate.

An activity involving the sale of something through an intermediary who negotiates the transaction for payment is done through this agency.

Answer 5

Brokerage

Question 6

Broker

The amount a broker has left after all commissions have been paid.

Answer 6

company dollar

Question 7

Broker

Someone who is under the control and direction of a broker.

Answer 7

Employee

Question 8

Broker

The fundamental principles of honesty and integrity that guide a person’s behavior.

Answer 8

Ethics

Question 9

Broker

(1) The law that affects the licensing and conduct of real estate licensees. (2) Another name for the Business and Professions Code, Part 1 entitled Licensing of Persons.

Answer 9

Real Estate Law

Question 10

Broker

Money or other things of value received from people by a broker to be used in real estate transactions.

Answer 10

trust funds

Question 11

Broker

An account separate and apart and physically segregated from broker’s own funds, in which broker is required by law to deposit all funds collected for clients.

Answer 11

trust account

Question 12

Messaging

Federal and state law regulating commercial e-mail messages.

Answer 12

CAN-SPAM laws

Question 13

Messaging

National registry managed by the Federal Trade Commission that limits commercial telemarketers from phoning consumers who place their telephone numbers on a list.

Answer 13

National Do Not Call Registry

Question 14

Messaging

The practice of making unsolicited calls to people you do not know in order to get new business.

Answer 14

cold calling

Question 15

Messaging

The use of any electronic messaging system to send unsolicited bulk messages indiscriminately.

Answer 15

Spam

Question 16

Messaging

Federal and state regulations regarding unsolicited telephone calls.

Answer 16

do-not-call

Question 17

Messaging

A consumer’s right to terminate future electronic communication from business and commercial entities.

Answer 17

Opt Out

Question 18

Messaging

The process of identifying potential customers.

Answer 18

Prospecting

Question 19

Messaging

A relationship that may allow a telemarketer or seller to call a consumer for up to 18 months after the consumer’s last purchase, delivery, or payment (even if the consumer’s number is on the National Do Not Call Registry).

Answer 19

Established Business Relationship (EBR)

Question 20

Law/Act

A wide-ranging federal civil rights law, signed in 1990, that prohibits, under certain circumstances, discrimination based on disability.

Answer 20

Americans with Disabilities Act (ADA)

Question 21

Law/Act

State law that prohibits discrimination in the sale, rental or financing of practically all types of housing.

Answer 21

California Fair Employment and Housing Act

Question 22

Law/Act

The rules implementing the Truth in Lending Act that require borrowers to be shown how much they are going to pay for credit in dollars and percentages; requires the use of the annual percentage rate (APR) and full disclosure of credit terms in advertising once any specific financials are mentioned.

Answer 22

Regulation Z

Question 23

Law/Act

Article 7 of Chapter 3 of the Real Estate Law under which a real estate licensee negotiating loans secured by real property within a specific range is required to give the borrower a statement disclosing the costs and terms of the loan and which also limits the amount of expenses and charges that a borrower may pay with respect to the loan.

Answer 23

real property loan law

Question 24

Law/Act

A federal law designed to protect persons in the military service from loss of property when their ability to make the payment has been affected by their entering military service.

Answer 24

Soldiers’ and Sailors’ Civil Relief Act

Question 25

Law/Act

Congress passed this act in April 1968 which prohibits discrimination in the sale of real estate because of race, color, or religion of buyers.

Its amendment in 1988 added: Those physically and mentally handicapped and those children under 18 years of age.

Answer 25

Federal Fair Housing Act

Question 26

Law/Act

State law that prohibits discrimination by businesses.

Answer 26

Unruh Civil Rights Act

Question 27

Corp

(1) A business name other than the name of the person who has registered the business. (2) Also known as assumed name. (3) A name that does not include the last name of the owner in the name of the business. (4) Also known as DBA or doing business as.

Answer 27

fictitious business name

Question 28

Corp

An organization of investors usually in the form of a limited partnership who have joined together to pool capital for the acquisition of real property interests.

Answer 28

real estate syndicate

Question 29

Corp

Under common law, a person who contracts to do a job for another, but who maintains control over how the task is carried out, rather than following detailed instructions.

Answer 29

Independent Contractor

Question 30

Corp

The statute regulating the conduct of real estate brokers and establishing the Bureau of Real Estate.

Answer 30

Business and Professions Code

Question 31

Corp

Two or more individuals or companies joining together for one project or a series of related projects, but not as an ongoing business.

Answer 31

Joint Venture

Question 32

Corp

An association organized according to strict regulations, in which individuals purchase ownership shares; regarded by the law as an artificial person, separate from the individual shareholders. – A legal entity whose rights in business are similar to that of an individual.

Answer 32

Corporation

Question 33

Corp

A type of business organization that has the limited liability protection of a corporation and the tax advantages of a partnership. – An alternative business that has characteristics of both corporations and limited partnerships.

Answer 33

Limited Liability Company (LLC)

Question 34

Corp

A form of business in which two or more persons join their money and skills in conducting the business.

Answer 34

Partnership

Question 35

Corp

A partnership of at least one general partner and one limited partner.

Answer 35

limited partnership

Question 36

Corp

A corporation that operates like a corporation but is treated like a partnership for tax purposes.

Answer 36

S corporation

Question 37

Corp

A business owned and managed by one person (or for tax purposes, legally married spouses) who is personally liable for all business debts. It could be organized under a fictitious or assumed name.

Answer 37

Sole Proprietorship

Question 38

Corp

A voluntary nonprofit organization of independent and competing business units engaged in the same industry or trade, formed to help solve industry problems, promote progress, and enhance service.

Answer 38

trade association

Question 39

Misc

Any real property where redevelopment or reuse may be complicated by the presence or potential presence of hazardous waste, petroleum, pollutant, or contaminant.

Answer 39

Brownfield

Question 40

Misc

What are the four types of government controls?

Answer 40

Police power, Eminent domain, Taxation, and Escheat (PETE)

Question 41

Misc

A legal term used in reference to a debt or a judgment for negligence, in which each debtor or each judgment defendant is responsible for the entire amount of the debt or judgment.

Answer 41

joint and several liability

Question 42

Misc

Channeling prospective buyers or tenants to particular neighborhoods based on their race or membership in another protected class. The illegal practice of only showing clients property in certain areas.

Answer 42

Steering

Question 43

Misc

The right of a debtor, before a foreclosure sale, to reclaim property that had been given up due to mortgage default.

Answer 43

equity or right of redemption

Question 44

Misc

An intangible, salable asset arising from the reputation of a business; the expectation of continued public patronage.

Answer 44

Goodwill

Question 45

police power

An establishment that is intended to be available to everyone, either as a place of business or commerce or for federal, state, or local government business. It includes hotels, restaurants, retail, gas stations, theaters, museums, etc.

Answer 45

Public Accommodation