Practice Of Real Estate And Disclosure Flashcards
Trust fund accounts are used to
Separate trust funds
Most important reason for trust fund accounts
Legal action against broker
Trust fund accounts must reconcile
Monthly
If there is an unexplained overage in a trust fund account
Keep separate record
Example of commingling?
Broker deposits his own renter’s check in the trust account
Proper places for trust funds
Escrow, trust account, owner of funds
Offeree (seller) can hold trust funds if you have a
Written agreement between offeree and offeror
Trust funds must be deposited within
3 business days
If sales associate receives trust funds
Deliver to broker immediately, follow instructions
What is the civil rights act of 1968
No discrimination or bias
When you encounter discrimination and unlawful eviction, what can you do?
Right to bring suit
Where are complaints for violations of federal fair housing laws filed to?
Dept of housing and urban development (HUD)
What is an example of an acceptable rental ad?
No bicycles allowed. Can’t name actual buildings
What do you call directing a buyer to nonintegrated neighborhood of his own ethnicity?
Steering
Agent tells homeowners an ethnic group is moving in and values will decrease
Blockbusting
Bank will not loan in a zip code because of ethnic composition
Redlining
Americans with disabilities act (ADA) requires which type of properties to comply?
Mall, store, business office (all commercial)
The unruh act prohibits discrimination by
By businesses
Who do you file complaint for discrimination and within
Dept of fair employment and housing, within 60 days
Discrimination can result in violation of
Federal, state, commissioner’s regulation
What is and example of misleading advertising
Misleading map
What is a blind ad
Ad does not identify broker
What is puffing
Exaggerating features or benefits
License number must be in first contact materials on?
Everything
What happens when you misuse of term realtor?
Revoke or suspend license
After close of escrow, record keeping requirements are?
Keep for 3 years, keep contracts and paperwork dating from close of escrow
What is WORM
Write once, read many
What is an example of an unlicensed assistant’s cold calling activities?
Set appointment to meet broker
What’s an example where no license is required?
Meet termite inspector and show house
For an unlicensed assistant, what should you not do when getting documents signed?
Don’t discuss relevance of documents
Commissioner has authority to
Promulgate rules and regulations
Who prosecutes for illegal activities
District attorney
What happens when you misrepresent a property to buyer
Discipline, civil, criminal charges
What is the exact moment a salesperson is terminated
Broker gives license back to salesperson
What happens when you obtain license by fraud
Revoke within 90 days without hearing
How long is the real estate license term
4 years
For a broker license, two years experience or
4 year college degree, major or minor in real estate
What exception is there to depositing to the trust fund within 3 business days?
Hold check uncashed
Continued education for real estate is
45 hours, 18 in consumer protection
What happens when licensee does not renew before expiration?
Out of business, but 2 year grace period to avoid testing again
What happens to a licensee who is a child support obligor
150 days temporary license
The rumford act prohibits discrimination in housing except
Selling businesses (only for housing)
Recovery account will cover up to a single transaction of
$50,000
Recovery account will cover a lifetime limit up to
$250,000
Suspended license from recovery account payout
Pay only recovery account, plus interest
What are the general ethics
Honesty and fairness
Property management is authorized to manage property for public
Broker
Property management company is responsible for what measures
Safety measures
What does the property management use security deposits at end of lease?
Clean, repair, unpaid rent
Property management return or account for security deposits within
21 days
Which document is used to evict
Unlawful detainer
Maximum deposit for furnished apartment
3 months rent
Maximum deposit for unfurnished apartment
2 months rent
What was the Easton vs Strassburger with the TDS about?
Diligent visual inspection, disclose all defects
What was the civil code 2079 about
Diligent visual inspection
TDS is requires
As is, FSBO, 1-4, defects known and should be known
What is not required to disclose in the TDS?
Repairs
When can licensee fill out seller’s portion
Never
What is an Amended TDS
Escrow is still open, can rescind contract but not sue
What is a Defective TDS
Escrow is closed, can sue within 2 years
What must you do for the natural hazard disclosure statement on lead based paint
Give EPA pamphlet, disclose reports, 10 days to inspect
What is the Alquist priolo act
Disclose earthquake fault lines
The alquist priolo act applies to
Specific types of structures in known earthquake fault zones
Fault zones are defined as
1/4 mile wide
If a salesperson took illegal referral fees and broker knows
Broker is also liable if guilty of knowledge
Licensee must notify DRE of any illegal activity within how many days
Within 30 days
If a buyer is related to the listing agent, what should they do
Must disclose to seller
When a broker appoints a manger for a branch office, what happens
Broker relieved of direct supervision
What does the HUD section 8 housing choice voucher program do
Assists with affordable housing in private market
Why do brokers typically work with an independent contractor salesperson
Broker does not have to pay social security and Medicare
What do brokers pay for employees and independent contractor salespersons
Broker pays workers comp
Prepaid rental listing service (PRLS) license is issued for how long
2 years
If seller paints over water spots on ceiling, the listing agent needs to
Listing agent discloses roof leaks
If a salesperson is asked to lease house but doesn’t know how
Ask broker’s assistance
What’s a reason in a busy market and house does not sell
It’s Overpriced
With a 9 month listing, the broker’s license is revoked. What happens?
Listing terminates
If a broker dies, leaves business to daughter, what do sellers do?
Sellers sign new listings
Flood hazard is considered frequent when flooding happens
2 times in 10 years
DRE does not issue licenses to
To partnership
An example where the Licensee does not have to disclose
That he lives in neighborhood of property being sold
Agent is liable for own actions even if
Whether principal is liable or not
Agent is not liable for wrongful acts of principal
Unless agent acquiesces (gives in)
