The Business of Real Estate Flashcards
A broker wanted to operate a real estate office under the fictitious name MLB Realty. Before operating under a fictitious name, the broker must
(a) publish the fictitious name in a newspaper of general circulation.
(b) file under the Secretary of State.
(c) obtain a DRE license bearing the fictitious business name.
(d) file with the city as a fictitious business.
(c)obtain a DRE license bearing the fictitious business name.
A salesperson tells his broker that he is quitting and plans to go to work for another broker. His present employing broker should
(a) notify the Real Estate Commissioner and hold the license until further notice from the Commissioner.
(b) give the salesperson his license and notify the Real Estate Commissioner immediately in writing.
(c) request cancellation of the salesperson’s license.
(d) call the other broker to confirm the change.
(b)give the salesperson his license and notify the Real Estate Commissioner immediately in writing.
The Real Estate Law DOES NOT require licensing for
(a) the resident manager of an apartment building or complex.
(b) the manager of a hotel.
(c) a real estate assistant who does not perform acts that require a real estate license.
(d) all of the above.
(d)all of the above.
Any individual who, for compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan application, must be licensed as a
(a) real estate salesperson.
(b) real estate broker.
(c) bank employee.
(d) Mortgage Loan Originator (MLO).
(d)Mortgage Loan Originator (MLO).
The sale or lease of a business, including all or most of the assets or stock of the business is termed a
(a) bankruptcy.
(b) acquisition.
(c) business opportunity.
(d) discount sale.
(c) business opportunity.
In the sale of a business, bulk transfer laws pertain to
(a) fixtures.
(b) goodwill.
(c) inventory.
(d) All of the above
(c) inventory.
Which of the following is required to operate as a Prepaid Rental Listing Service (PRLS) agent?
(a) A real estate broker’s license.
(b) A written contract with prospective tenants.
(c) A real estate salesperson’s license.
(d) Access to the Multiple Listing Service.
(b) A written contract with prospective tenants.
Which of the following individuals are exempt from the real estate licensing requirements?
(a) A person selling his or her own property.
(b) An attorney-at-law rendering services in the performance of his or her duties as attorney.
(c) Anyone holding a duly executed power of attorney from the owner of property.
(d) All of the above.
(d) All of the above.
What type of background check does the Real Estate Commissioner and Appraisal Commissioner use?
(a) Late rental payments
(b) Personal habits
(c) Credit history
(d) Late child support
(d)Late child support
In addition to the prelicense education requirements to become a real estate broker, an applicant must also
(a) be an attorney and a member of the California state bar.
(b) show proof of a master’s degree in a related field.
(c) have been actively engaged as a real estate salesperson for at least two of the preceding five years, or equivalent.
(d) show proof of at least two years experience as a CEO, manager, or small business owner.
(c)have been actively engaged as a real estate salesperson for at least two of the preceding five years, or equivalent.
Before taking the licensing examination, the applicant must successfully complete
(a) a 3 hour course in Ethics.
(b) three college-level courses.
(c) a course in office administration.
(d) a course in fair housing.
(b)three college-level courses.
The most heavily weighted subject matter on the salesperson and broker examination is
(a) Property Ownership and Land Use Controls and Regulations.
(b) Practice of Real Estate and Mandated Disclosures.
(c) Valuation and Market Analysis.
(d) Contracts.
(b)Practice of Real Estate and Mandated Disclosures.
A licensee must take 45 hours of continuing education in order to renew the license. The 45 hours must include
(a) Agency and Trust Fund Handling.
(b) Ethics and Fair Housing.
(c) Risk Management and Management & Supervision.
(d) All of the above
(d)All of the above
The process through which disciplinary action is taken by the Department of Real Estate starts with an audit or an investigation of the licensee’s activities or alleged misconduct. What is the next step in the disciplinary process?
(a) A hearing is held before an Administrative Law Judge to examine evidence and hear testimony.
(b) The commissioner makes a decision to impose a penalty or dismiss the charges.
(c) The licensee can elect to appeal the findings of the investigation or audit.
(d) If warranted, an accusation is filed against the licensee.
(d)If warranted, an accusation is filed against the licensee.
Commingling is one of the greatest single causes for loss of license. Which of the following would NOT be considered commingling?
(a) Holding an uncashed deposit check after acceptance of an offer when directed to do so by the seller.
(b) Cashing a deposit check (made out to the broker) and placing the money in the broker’s safe, properly identified as being the deposit received from the buyer.
(c) Depositing either cash or a check received as a deposit in the broker’s personal account to be held until called for by the escrow officer.
(d) Depositing money received by his/her client in the broker’s personal account to pay miscellaneous expenses.
(a)Holding an uncashed deposit check after acceptance of an offer when directed to do so by the seller.
