Chapter 2

Question 1

What is the CA Real Estate Commissioner’s responsibility?

Answer 1

to enforce Real Estate Law and the Subdivided Lands Law in a manner in which maximum protection for real estate consumers is achieved

Question 2

Commissioner’s specific responsibilities:

Answer 2

• qualification of applicants/ issuing licenses
• investigation of complaints
• regulation of sale or lease of subdivision interests
• through RE broker and other license requirements, the regulation of dealings in mineral, oil and gas property and Prepaid Rental Listing Services

Question 3

When is a RE License required?

Answer 3

when for compensation for another person negotiates or undertakes: selling or buying, soliciting prospective sellers/ buyers, solicits/ obtains listings, negotiates real property, assists in filing an app, negotiates loans, collects payment, leases or rents

Question 4

Section 10176 of the Business Professions Code

Answer 4

legal guideline for the actions of a real estate licensee performing or attempting to perform any of the licensed acts within the scope of the Real Estate Law

Question 5

Section 10177 of the Business Professions Code

Answer 5

applies to situations in which the licensee involved was not necessarily acting in the capacity of an agent

Question 6

Violations of Section 10176

Answer 6

• Definite termination date
• Secret Profit
• Listing option
• Dishonest dealing
• Signatures of prospective purchasers

Question 7

Violations of Section 10177

Answer 7

• Obtaining a license by fraud
• Convictions
• False advertising
• Violations of other sections; Franchise Investment Law; Corporations Code; Securities Law;
• Misuse of trade name
• Conduct warranting denial
• Negligence or incompetence
• Supervision of salesperson
• Violating govt trust
• Restricted license violation
• Inducement of panic selling

Question 8

Real Estate General Fund

Answer 8

an acct that holds all the money collected from license and exam fees, and is used for the operating expenses of the DRE