Entire book Flashcards
John owns a mobile home that is 7 feet by 30 feet and reaches out to Realtor Ian to help sell JUST his mobile home. Can Realtor Ian sell John’s home? Why or why not.
Realtor Ian can’t help John because salespersons can only sell mobile homes 8 feet by 40 feet or larger and licensees CANNOT sell new mobile homes without land
Realtor Cherish owns the fictitious business name “Cheeks Realty.” She has recently changed realtor companies and now plans to use her fictitious business name under this new company. Is she legally able to do that? And if so, which bill gives her the power to do so as a salesperson?
under Assembly Bill 2018 (Bocanegra) salespersons maintain ownership of fake business names if they are to transfer from one RE company to another. Yet use of the name may be subject to the control of the new broker.
Under the ADA the first discriminatory act can be penalized for how much money? How much is fined for any subsequent violations?
$75k for the first fine and $150k for each after that.
Myer LLC owns Complex Redondo. They have recently received another call from apartment 6 about a caved in ceiling. Davion, a black male, is the tenant in apt 6. He has asked Myer LLC multiple times for the ceiling to be fixed yet nothing has been done. Fed up with Myer LLCs’ neglect, Davion moves out. Upon moving out Myer LLC fixes the ceiling in apt 6 and moves in a white family - the Howells. What did Myer LLC do that was illegal and what civil rights act was broken here?
The prop manager basically forced Davion to move out which would be a arbitrary eviction. This would be breaking the Unruh Civil Rights Act which Forbids discrimination as to sex, race, color, religion, ancestry or national origin in accommodations and BUSINESS establishments.
While the Unruh Act Applies to discrimination by businesses, which Act applies specifically to housing and only housing when it comes to discrimination by indivduals? This act is also considered the California’s Fair Housing Act.
The Rumford act
If the Rumford act deals with discrimination with housing and the Unruh act deals with businesses, which act deals with discrimination of financial institutions?
The holden act
In which article of the Real Estate Commissioner’s Rules and Regulations concerns the discriminatory activities of real estate licensees?
10
What is the Sherman Antitrust Act?
Sherman act protects consumers from businesses who try to control prices and competition
Broker Snake is training his new hire, salesperson Rabbit. During their first training meeting Broker Snake tells salesperson Rabbit that at his firm Snake You For Your Paper Realty they NEVER charge anything less than a 5 percent commission. What term would describe what Broker Snake just did? Under what act does this term fall?
Broker snake was price fixing which is illegal. Brokers cannot agree on minimum fees to be charged. Price fixing falls under the Sherman Antitrust Act.
On the second day of training with Broker Snake he tells salesperson Rabbit that it has been agreed to by all the other realty companies in a 5 mile radius that the city of Compton is off limits to any salesperson that doesn’t work at SYFYP Realty. What has Broker snake just done?
Broker snake has just committed market allocation which is illegal, no realty firm can divide a marketplace geographically or by type of service because it reduces competition. Market allocation falls under the Sherman Antitrust Act.
On the third day of training with Broker Snake he explains to salesperson Rabbit that there is an unspoken rule at SYFYP Realty that no salesperson shall work with any licensee from Jamal Realty. He goes on to say that any principal that signs a listing contract must agree to buy SYFYP Realty’s coffee mug. What has Broker Snake done illegal?
Broker Snake has implied that his firm and other firms refuse to work with a specific realty company - Jamal Realty. That would be considered Group Boycotting (firms may not agree to refuse to do business with a firm or individual). Lastly Broker snake insisted that any principal must buy a coffee mug upon signing the listing agreement. This would be a tie-in agreement (agreements that require a client to buy additional goods or services as a condition of doing business or cooperating). These two acts fall under the Sherman Antitrust Act.
What is RESPA? Under Respa what is considered illegal? How can one test to determine if an action is ethical?
Respa (Real Estate Settlement Procedures Act) prohibits kickbacks from service providers to brokers. Under Respa cash, free business equip, tickets to events etc are unethical. Using the Gold Rule you can test if an action is ethical and would be considered as a violation of RESPA.
When it comes to disclosure laws, who do they primarily relate to? Commercial buyers or buyers of 1-4 residential properties?
1-4 unit buyers. Commercial buyers have been deemed to be more sophisticated than buyers of residential real estate.
Seller Wall has accepted an offer from Buyer Cle for the home located at 1234 Abrego Rd. Two days after the signing Buyer Cle confirmed that he would need an extra month to close on the house as previously discussed with Realtor Toby. To the Buyer’s knowledge, since Seller Wall accepted his offer he assumed he was aware of the possibility and was fine with it. Come to find out Realtor Toby didn’t share that information with Seller Wall. What has gone wrong here?
Realtor Toby has failed to disclose a material fact that would have and could still potentially kill the deal. To protect all parties disclosures should be in writing.
If agent Mike revealed to a prospective buyer without the principal’s permission that the principal was broke and desperate. What would agent Mike be breaking?
This would be a violation of the duty of trust between agent and principal. The agent’s duty of trust prohibits the agent from revealing confidential information about the principal to others without the consent of the principal.
What does the acronym DEC mean?
disclose, elect, confirm. These are the three step process of disclosing agency.
If an agent does not conduct a diligent visual inspection of the property (a 1-4-unit residential property) and disclose to the prospective buyer all material facts. How long can you wait to sue them?
two years
What are Mello-Roos Bonds?
These are money bonds to fund streets, sewers, and any new development. With these improvements property taxes are likely to rise. This would be like a special tax (check I think it’s called a special tax or specific tax)
What’s a CMA? Are they good for commercial properties?
Competitive Market Analysis are not effective on large props, industrial or commercial props because of the difficulty in location. It’s hard to find comparables.
If I have the address to the house can I find the owners name with just that information?
Yes and that would be called reverse directory
We know that a listing is a contract therefore what must it include to be valid?
competency of parties, lawful object, proper offer and acceptance, and consideration
I live in Arizona and am closing on a property in Cali. We’re currently in escrow and it has been agreed by both parties that an electronic transaction is acceptable. Is this legal?
Yes as long as parties agree to conduct a transaction by electronic means. This could apply to listing agreements.
I’m selling my house and I made the promise to pay the broker’s commission because the broker made the promise to use all of their assets to bring a buyer. A promise for a promise. What type of agreement is this?
bilateral agreement, exclusive right to sell listings are examples of bilateral contracts
There are three types of listing, what are they? What’s their purpose?
open listings, exclusive-authorization-and right- to-sell listings, and exclusive-agency listings. Net listings and option listings are additions to the three aforementioned listing contracts. The purpose of a listing agreement generally is to define the relationship between the seller (or buyer, in the case of a buyer’s listing) and the broker
You’re pulling up to an open house and 5 different realty companies have their companies’ name promoted in the grass. What type of listing is this? What type of contract is this?
An open listing (the first agent to bring a buyer gets the commission). This is a unilateral contract which is normally in letter format, no need for it to be in writing
If I cold call a number that is on the national do not call registry how much can I be fined?
Fines can range from 16k to 40k per call
Broker Lebron has secured a listing that allows him to be the SOLE agent. This listing allows him to be paid regardless of who sells the property whether or not he closes a deal with a buyer. What type of listing did Broker Lebron secure?
Exclusive-Authorization-and-Right-to-Sell Listing
Broker Johnny has just got a new listing that allows him to get paid regardless of which realty agency makes the sale. With this listing owners still have the right to sell their property and pay no commission. What listing is this?
Exclusive-Agency Listing, these differ from the exclusive-auth-right to sell because the seller can sell their home themselves and pay no commission
I recently hit the lotto and have been shopping for a property to buy. I reached out to Broker B to help me find my dream property. We agree to an agency that allows me (the buyer) to buy without Broker B and not have to pay him if I find a home on my own. What type of agency did we agree to?
exclusive buyer agency
Broker V’s exclusive authorization-right- to sell listing has just expired. In order for Broker V to get his commission he’s required to do what now that the listing is expired? This is a safety clause within the listing.
Broker V must submit a list of people he’s negotiated with in the last 3 days prior to expiration. He should also include any buyers who were shown and physically entered the property.
If the scope of authority of a real estate broker is limited to just producing a buyer, the broker does not have the authority to collect a deposit on behalf of the seller. When an agent does collect a deposit in this case, the agent is acting as agent for the buyer (offeror) and not the seller. In what listing agreements are these situations found?
exclusive listing agreements
Broker Harrold has just signed a listing contract with Seller Moon. The seller has told Broker Harrold that he will not allow his property to be placed on the MLS nor will Broker Harrold have the ability to work with other agents. Instead of accepting Seller Moon’s wishes, Broker Harrold refuses to cooperate. What type of listing is this? Would this be a breach of the agents fiduciary duty?
This would be a Pocket Listing (because the seller has requested to NOT have their property on the MLS) and yes this would be breaking his/her fiduciary duties
What is Institutional advertising?
This would be considered images that show the RE company, the broker and the salesperson in a favorable way. This would be like the branding for the company
What is Specific advertising?
Also called operational advertising. Specific advertising is about immediate results. This would be advertising and showcasing a particular property.
