Real Estate Brokerage Overview Flashcards
Learn the basic brokerage concepts you'll encounter daily as a licensed real estate professional.
What is the DRE’s main two goals?
- To regulate and monitor the real estate industry to protect the public’s interest when involved in real estate transactions (both residential and commercial)
- To effectively and efficiently provide services around licensing, subdivision, and consumer needs
What are some of the powers the DRE is capable of?
1.Approve education providers
2.Administer licenses
3.Investigate complaints
4.Take formal disciplinary action
5.Administer the Consumer Recovery Account (CRA)
6.Enforce subdivision laws
7.Manage funds for education and research
8.Monitor mortgage broker activity
Who appoints the Real Estate Commisioner in the state of California?
The governor of California.
What are the 2 real estate license types in California?
The salesperson’s license and the broker’s license.
Who is responsible for paying the associate licensees?
Only the responsible broker may pay the associate licensees affiliated with them.
Who administers real estate license law in the state of California?
the California Department of Real Estate
What are the requirements for a salesperson’s license?
- Be at least 18
- Be honest and truthful
- Complete pre-licensing courses
- Pass course exam
- Pass salesperson license exam
- Provide fingerprints
- Pay $265 licensing fee
What are the requirements for a broker’s license?
- Most of previous requirements of salesperson’s license
- Complete 8 required college level courses
- provide proof of 2 years of salesperson experience or college degree in real estate
- have an office in California
Who are the main groups of people that work at a brokerage?
- Responisble broker
- Broker-associates
- salespersons
- unlicensed employees
Why does vicarious liability affect responsible brokers?
Vicarious liability makes responsible brokers liable for any mistakes or performance issues of the associate licensees working under their authority.
Whats the difference between employer and independent contractor?
If the employer controls how the worker accomplishes their work, the worker is likely an employee.
If the worker controls how they accomplish their work, the worker is likely an independent contractor
Under California law, transaction documents and escrow records must be maintained for (blank) from the time of closing.
Bookkeeping requirements
3 years
What are the 2 basic meanings of trust money?
- Money belonging to others received by a real estate broker who is acting as an agent in a real estate transaction
- Any money held by a licensee who acts as the temporary custodian of funds belonging to others
What is a trust account?
A trust account is an account that is separate from a broker’s operational or personal accounts. The broker “holds” other people’s funds in this account until the funds are ready to be disbursed (i.e. paid out to the various recipients)
A trust account may also be called…
an escrow account or custodial trust
