Chapters 1 - 7 Prep Agent Flashcards
Ch. 1 - Real estate licensing and endorsement Ch. 2 - Agency: authority to represent others Ch. 3 - Agency: The agency law disclosure Ch. 4 - Conflict of interest Ch. 5 - Dual agency and subagency Ch. 6 - Trust funds overview
A government entity which oversees, regulates, administers and enforces California real estate law as practiced by licensees.
Department of Real Estate (DRE
The individual who is the licensed officer qualifying a corporation for a corporate broker license.
designated officer (DO)
The name under which a business or operation is conducted, also known as a d.b.a. (“doing business as…”).
fictitious business name
Property designed to be used as a dwelling, classified as either personal or real property depending on the method of attachment to a parcel of real estate. Also known as a manufactured home.
mobile home
A Department of Real Estate (DRE) licensee who receives fees to arrange a consumer mortgage other than a carryback.
mortgage loan originator (MLO)
A person, an individual or an entity, acting as a buyer or seller, represented by a broker and their agents.
principal
Funds available to individuals who have obtained a final-court judgment against a licensee and are unable to recover the judgment from the licensee. Also known as the Consumer Recovery Account.
Real Estate Recovery Fund
One who is authorized to represent another, such as a broker and client or sales agent and their broker.
agent
A person, an individual or an entity, acting as a buyer or seller, represented by a broker and their agents.
principal
Restatement of agency codes and cases which establish the conduct of real estate licensees. It is delivered to all parties in targeted sales and leasing transactions. [See RPI Form 305]
Agency Law Disclosure
A provision in all purchase agreements and counteroffers disclosing the agency of each broker in the transaction
agency confirmation provision
An agent representing the buyer. Also known as a selling agent. [See RPI Form 103]
buyer’s agent
An agent representing the seller. Also known as a listing agent.
seller’s agent
An agent who is acting exclusively on behalf of only one party in a transaction.
exclusive agent
That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over their principal by the slightest misrepresentation, concealment, duress or undue influence.
fiduciary duty
duties owed by each broker to all parties in the transaction, requiring them to be honest and avoid deceitful conduct, known as
general duties.
This needs to be presented to all parties in targeted transactions. Restatement of agency codes and cases which establish the conduct of real estate licensees. It is delivered to all parties in targeted sales and leasing transactions.
Agency Law Disclosure
The chief officer of the Department of Real Estate (DRE) is the:
Real Estate Commissioner
All real estate brokers and agents need to complete at least __________ of continuing education (CE) every four years to renew a license issued by the Department of Real Estate (DRE
45 hours
The __________ is available to individuals who have obtained a judgment against a licensee and are unable to recover the judgment from the licensee for losses caused while acting as an agent.
Real Estate Recovery Fund
A residential mortgage primarily for personal, family or household use and secured by a deed of trust on a dwelling is known as a:
consumer purpose mortgage.
Agency in real estate related transactions includes relationships between brokers and their:
principals and agents
A broker’s representation of a client, such as a buyer or seller, is best undertaken:
on a written employment agreement signed by both the client and the broker.
The Agency Law Disclosure needs to be attached to which of the following documents and signed by all parties in targeted transactions?
A purchase agreement.
A seller’s listing agreement.
A lease agreement for a term exceeding one year.
when a broker or their agent, acting on behalf of a client, has a competing professional or personal bias which hinders their ability to fulfill the fiduciary duties they have undertaken on behalf of their client.
A conflict of interest
Referral of a client to a financially controlled business whose earnings are shared with the broker which requires a written disclosure.
affiliated business arrangement (ABA)
The agency relationship that results when a broker represents both the buyer and the seller in a real estate transaction.
dual agency
An individual who has been delegated agency duties by the primary agent of the client, not the client themselves.
subagent
An association of real estate agents pooling and publishing the availability of their listing properties.
multiple listing service (MLS)
A broker who represents both parties in a real estate transaction.
dual agent
Items which have or evidence monetary value held by a broker for a client when acting in a real estate transaction.
trust funds
A broker or agent’s personal or business account, not to be commingled with trust funds.
general account
An accounting document or file identifying the owner of trust funds and the amount held for the owner.
subaccount ledger
The unlawful appropriation of another’s property, as in the conversion of trust funds.
conversion
An accounting on the status, expenditure and location of negotiable trust funds provided to the owner of those funds.
owner’s statement
An unlawful housing practice that includes words or actions by a real estate sales licensee intended to influence the choice of a prospective buyer or tenant.
Steering
The prohibited practice of a real estate licensee inducing a property owner to list their property for sale in response to a change taking place in the neighborhood demographics.
Blockbusting
A California law which prohibits discrimination by a business establishment based on sex, race, color, religion, ancestry, national origin, disability or medical condition. A real estate practice is a business establishment.
Unruh Civil Rights Act
Anyone who has a physical or mental impairment which significantly limits major life activities, has a record of disability, or is regarded as being disabled.
Disabled person
A building occupied or designed to be occupied as a residence by one or more families.
Dwelling
A status which indicates a household includes individuals under the age of 18.
Familial status
A collection of policies designed to prevent discrimination in the access to housing based on an occupant’s inclusion in a protected class.
Federal Fair Housing Act (FFHA)
A federal law which provides broad protections to numerous classes of individuals in the United States against discriminatory activities.
Civil Rights Act
Actions which are not openly discriminatory but yield discriminatory results.
implicit discrimination
