Chapter 14: Licensing, Ethics, and Associations

Question 1

Every state government uses these staff members to regulate real estate brokerage activities.

Answer 1

Regulators

Question 2

The primary objective of this state (CA) agency is to protect the public interest in offerings of subdivided lands, and the handling of real estate transactions by licensees. A standard of knowledge is measured by an examination given to potential real estate agents.

Answer 2

California Department of Real Estate (DRE)

Question 3

The right to enact and enforce laws beneficial to the health, safety, morals, and general welfare of the public.

Answer 3

Police power

Question 4

Any person who is actively involved in a real estate transaction at the service of another, in the expectation of receiving a commission, must have one of these.

Answer 4

Real estate license

Question 5

The salesperson’s exam takes 3 hours and 15 minutes, has 150 questions and requires this percentage of correct questions to pass.

Answer 5

70%

Question 6

Any individual who wishes to operate a real estate office must have this.

Answer 6

Broker’s license

Question 7

The broker’s exam takes 5 hours to complete, has 200 questions, and requires this percentage of correct questions to pass.

Answer 7

75%

Question 8

This type of license is required when running a business that supplies prospective tenants with listings of residential real property for rent or lease while collective a fee for such service.

Answer 8

Prepaid rental listing service

Question 9

The portion of the Business and Professions Code that refers to licensing and subdivisions of real estate.

Answer 9

California real estate law

Question 10

The chief executive of the Department of Real Estate

Answer 10

Real Estate Commissioner

Question 11

To take away a real estate license.

Answer 11

Revoke

Question 12

To limit the use of a real estate license.

Answer 12

Restrict

Question 13

To take away a real estate license for a period of time.

Answer 13

Suspend

Question 14

Any licensee who appears on the “deadbeat” child support list, is given this much time by the DRE to get current on their support payment, or have their license suspended.

Answer 14

150 days

Question 15

This fund was established for the payment of damages and arbitration awards to people who have suffered financial loss due to the wrongful act of a licensee in a real estate transaction.

Answer 15

Recovery fund

Question 16

A voluntary, nonprofit organization made up of independent firms in the same industry.

Answer 16

Trade association

Question 17

The national trade association for all the state associations and local boards of REALTORS® in the United States.

Answer 17

National Association of REALTORS® (NAR)

Question 18

A member of the National Association of Real Estate Brokers is called this.

Answer 18

Realtist

Question 19

This guide spells out the company’s ethical and professional expectations and requirements, including a mission statement, personnel policies and general procedures.

Answer 19

Office policy manual

Question 20

Who appoints the Real Estate Commissioner?

Answer 20

The Governor

Question 21

Who prosecutes for the Real Estate Commissioner?

Answer 21

The District Attorney

Question 22

What is the maximum number of hours of Continuing Education required to renew a four-year license?

Answer 22

45 hours

Question 23

The broker’s license examination process consists of:

a. 200 multiple-choice question test.
b. photo id required for entry.
c. two 2.5 hour exam periods.
d. all of the above.

Answer 23

d. all of the above.

Question 24

The Real Estate Commissioner has the right to:

a. revoke licenses.
b. restrict licenses.
c. suspend licenses.
d. all of the above.

Answer 24

d. all of the above.

Question 25

The name NAHREP stands for:

Answer 25

National Association of Hispanic Real Estate Professionals

Question 26

What is the lifetime ceiling the Recovery Fund will pay out for one licensee?

Answer 26

$250,000

Question 27

To acquire a broker’s license, an applicant is required to:

a. be at least 18 years old.
b. be honest and truthful.
c. pass the broker’s exam.
d. all of the above.

Answer 27

d. all of the above.

Question 28

Every four years the National Association of REALTORS® requires members to take a course covering the:

a. Code of Ethics.
b. NAR® Commission Plan.
c. NAR® Fair Housing Guidelines.
d. none of the above.

Answer 28

a. Code of Ethics.

Question 29

To call yourself a REALTOR®, you must:

a. belong to NAIFA.
b. belong to the NAR®
c. be an independent board member.
d. be a member of ARELLO.

Answer 29

b. belong to the NAR®