Chapters 1 - 7 Prep Agent

Question 1

A government entity which oversees, regulates, administers and enforces California real estate law as practiced by licensees.

Answer 1

Department of Real Estate (DRE

Question 2

The individual who is the licensed officer qualifying a corporation for a corporate broker license.

Answer 2

designated officer (DO)

Question 3

The name under which a business or operation is conducted, also known as a d.b.a. (“doing business as…”).

Answer 3

fictitious business name

Question 4

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.

Answer 4

mobile home

Question 5

A Department of Real Estate (DRE) licensee who receives fees to arrange a consumer mortgage other than a carryback.

Answer 5

mortgage loan originator (MLO)

Question 6

A person, an individual or an entity, acting as a buyer or seller, represented by a broker and their agents.

Answer 6

principal

Question 7

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.

Answer 7

Real Estate Recovery Fund

Question 8

One who is authorized to represent another, such as a broker and client or sales agent and their broker.

Answer 8

agent

Question 9

A person, an individual or an entity, acting as a buyer or seller, represented by a broker and their agents.

Answer 9

principal

Question 10

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]

Answer 10

Agency Law Disclosure

Question 11

A provision in all purchase agreements and counteroffers disclosing the agency of each broker in the transaction

Answer 11

agency confirmation provision

Question 12

An agent representing the buyer. Also known as a selling agent. [See RPI Form 103]

Answer 12

buyer’s agent

Question 13

An agent representing the seller. Also known as a listing agent.

Answer 13

seller’s agent

Question 14

An agent who is acting exclusively on behalf of only one party in a transaction.

Answer 14

exclusive agent

Question 15

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.

Answer 15

fiduciary duty

Question 16

duties owed by each broker to all parties in the transaction, requiring them to be honest and avoid deceitful conduct, known as

Answer 16

general duties.

Question 17

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.

Answer 17

Agency Law Disclosure

Question 18

The chief officer of the Department of Real Estate (DRE) is the:

Answer 18

Real Estate Commissioner

Question 19

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

Answer 19

45 hours

Question 20

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.

Answer 20

Real Estate Recovery Fund

Question 21

A residential mortgage primarily for personal, family or household use and secured by a deed of trust on a dwelling is known as a:

Answer 21

consumer purpose mortgage.

Question 22

Agency in real estate related transactions includes relationships between brokers and their:

Answer 22

principals and agents

Question 23

A broker’s representation of a client, such as a buyer or seller, is best undertaken:

Answer 23

on a written employment agreement signed by both the client and the broker.

Question 24

The Agency Law Disclosure needs to be attached to which of the following documents and signed by all parties in targeted transactions?

Answer 24

A purchase agreement.
A seller’s listing agreement.
A lease agreement for a term exceeding one year.

Question 25

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.

Answer 25

A conflict of interest

Question 26

Referral of a client to a financially controlled business whose earnings are shared with the broker which requires a written disclosure.

Answer 26

affiliated business arrangement (ABA)

Question 27

The agency relationship that results when a broker represents both the buyer and the seller in a real estate transaction.

Answer 27

dual agency

Question 28

An individual who has been delegated agency duties by the primary agent of the client, not the client themselves.

Answer 28

subagent

Question 29

An association of real estate agents pooling and publishing the availability of their listing properties.

Answer 29

multiple listing service (MLS)

Question 30

A broker who represents both parties in a real estate transaction.

Answer 30

dual agent

Question 31

Items which have or evidence monetary value held by a broker for a client when acting in a real estate transaction.

Answer 31

trust funds

Question 32

A broker or agent’s personal or business account, not to be commingled with trust funds.

Answer 32

general account

Question 33

An accounting document or file identifying the owner of trust funds and the amount held for the owner.

Answer 33

subaccount ledger

Question 34

The unlawful appropriation of another’s property, as in the conversion of trust funds.

Answer 34

conversion

Question 35

An accounting on the status, expenditure and location of negotiable trust funds provided to the owner of those funds.

Answer 35

owner’s statement

Question 36

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.

Answer 36

Steering

Question 37

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.

Answer 37

Blockbusting

Question 38

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.

Answer 38

Unruh Civil Rights Act

Question 39

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.

Answer 39

Disabled person

Question 40

A building occupied or designed to be occupied as a residence by one or more families.

Answer 40

Dwelling

Question 41

A status which indicates a household includes individuals under the age of 18.

Answer 41

Familial status

Question 42

A collection of policies designed to prevent discrimination in the access to housing based on an occupant’s inclusion in a protected class.

Answer 42

Federal Fair Housing Act (FFHA)

Question 43

A federal law which provides broad protections to numerous classes of individuals in the United States against discriminatory activities.

Answer 43

Civil Rights Act

Question 44

Actions which are not openly discriminatory but yield discriminatory results.

Answer 44

implicit discrimination