Glossary Ch. 1-3

Question 1

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

Answer 1

Department of Real Estate (DRE)

Question 2

A person who, for compensation or in expectation of compensation, is employeed by a licensed broker to do one or more acts of a licensed broker.

Answer 2

A Real Estate Agent

Question 3

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

Answer 3

Pricipal

Question 4

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

Answer 4

Designated Officer (DO)

Question 5

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

Answer 5

Fictitious Business Name

Question 6

The assets for a business enterprise including its goodwill. The term includes the sale or lease of the business and goodwill of an existing business enterprise or opportunity.

Answer 6

Business Opportunity

Question 7

The transfer of more than one-half the inventory of a business’ materials or goods to a person other than the businesses’ customers.

Answer 7

Bulk Sale

Question 8

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 8

Mobilehome

Question 9

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 9

Real Estate Recovery Fund

Question 10

A department of Real Estate (DRE) licensee who recieves fees to arrange a cusomer mortgage other than a carryback.

Answer 10

Mortgage Loan Originator (MLO)

Question 11

Restatement of agency codes and cases which establish the coduct of real estate licensees. It is delivered to all parties in targeted sales and leasing transactions.

Answer 11

Agency Law Disclosure

Question 12

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

Answer 12

Agency Confirmation

Question 13

An agent representing the buyer. Also known as a selling agent.

Answer 13

Buyer’s Agent

Question 14

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

Answer 14

Seller’s Agent

Question 15

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

Answer 15

Exclusive Agent

Question 16

The duty owed by an agent 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 16

Fiduciary Duty