Principles - Chapter 9 Real Estate Licensing

Question 1

Ca dept of Real Estate administer?

Answer 1

Real Estate Law

Question 2

Penalty for no license

Answer 2

person: 6 month jail, $10k penalty
corporation: up to $50k

Question 3

License Law

Answer 3

aka: Ca Real Estate law

police power of state, hearings by commissioner rather than court

Question 4

DRE

Answer 4

The California Department of Real Estate-1917
powered by Administrative Procedure Act to investigate complaints, holds hearings for denial, revocation, suspension or restriction of licenses

Question 5

Real Estate Commisioner

Answer 5

appointed by Govenor
4 year term
Presides over meetings of Real Estate Advisory Commission
Enforces supervision of Real estate law
Issues licenses

Question 6

Real estate Advisory Committee

Answer 6

appointed by commissioner
10 members (6 brokers, 4 public)
no compensation

Question 7

License Application

Answer 7

take prerequisites
fingerprint
pay fee
valid for two years
unlimited examination attempts

Question 8

Brokers License

Answer 8

18 years
proof of U.S. presence
honest and truthful
2 years as fulltime licensed salesperson

Question 9

Broker classes required

Answer 9

Real estate Practice
Legal aspects of Real Estate
RE finance
RE appraisal
RE economics or general accounting and 3 of the following:  Principles, law, property management, escrows, office admin, loan brokering, advanced legal, advanced finance, advanced appraisal, computer apps or common interest developments

Question 10

Broker exam

Answer 10

75% correct to pass

Question 11

Salesperson (agent) exam

Answer 11

70% correct to pass

Question 12

Salesperson license

Answer 12

4 years
renewal without exam by proof of 45 hours of continued education in ethics, agency relationships, trust fund accounting,fair housing, consumer protection and others

Question 13

Individual broker license

Answer 13

most common

may be individual name or dba

Question 14

Corporate broker license

Answer 14

broker doing business as corporation

broker must be designated broker officer

Question 15

Salesperson license

Answer 15

covers person employed under control and supervision of broker
permits activities as employee of broker and not as independent agent
compensation provided only by employing broker
in many instances independent contractor for legal and tax purposes

Question 16

Branch office license

Answer 16

muliple offices
branch office license at each place of business
salesperson lic must also be on file

Question 17

Mineral Oil and Gas License

Answer 17

MOG: 1/1994, no longer issued

Question 18

Prepaid Rental Listing License

Answer 18

those who supply prospective tenants for rentals and collect a fee

Question 19

Real Property Securities Dealer Endorsment

Answer 19

brokers lic only

person acting as principal or agent selling real property securities to puble

Question 20

Restricted License

Answer 20

probationary license
continue to work under limited conditions of term (months), employment by particular broker, certain types of transactions, filling of surety bonds etc as commission sees fit.

Question 21

License changes

Answer 21

address change- written notice to DRE next business day, corrects current lic by putting new address on back side with date/inital

Question 22

Salesperson change

Answer 22

Salesperson change application form
update back of lic and date/inital
send to DRE within 5 days
New lic certificate is not issued

Question 23

Discharge of Salesperson

Answer 23

if for violation of Real Estate Law, broker must file certified written statement of facts with commissioner

Question 24

Revocations and Suspensions

Answer 24

If broker license is revoked or suspended, all salesperson are cancelled. Salesperson must transfer to new employing broker.

Question 25

Disciplinary Action: Investigation

Answer 25

violations enforced by commissioner | either on own action or because of complaint

Question 26

Hearings

Answer 26

``` Commssioner is formal complainant Witness: person filing complaint Impartial hearing Commissioner accepts or rejects decsion Licensee may appeal to courts Revoked lic: person may reapply after one year ```

Question 27

Violations

Answer 27

Misrepresentation: failure to disclose facts to principal False promise: misstatement as to what person will do in the future Continued Misrepresentation: continuing/flagrant manner Divided Agency: failure to notify acting for more than one party Commingling: deposit of money into licensee account Definite Termination Date: exclusive listings must have definite term date Secret Profit: dummy offer Listing-Option: uses option and listing agent must disclose any profit Dishonest Dealing: dishonest acts Signature of perspective purchasers-needs license Obtaining license by Fraud Convictions: Moral Turpitude-crime against justice, honesty and good morals False advertising: Violations of any section of Real Estate Law Misuse of Trade Name: Realtor only by members of Real Estate Board Conduct warranting Denial: honest/truthful Negligence: Supervision of salesperson by broker Violating govt trust: obtaining confidential info (govt employee) Inducement or panic selling: ex: quality of neighborhood because of entry of race, color, religion, ancestry or national orgin

Question 28

Accounting Record retention

Answer 28

3 years

Question 29

Real Estate Education, Research and recovery Allocation

Answer 29

portion of lic fees to recovery account Max person can collect from given transaction is $20k Max against any one licensee in lifetime is $100k