The Business of Real Estate Flashcards
What does “Caveat Emptor” mean.
a latin phrase meaning “let the buyer beware”. A buyer should inspect the goods or realty before purchase.
police power
the inherent right of the state to regulate for the purpose of promoting health, safety, welfare and morality.
Real Estate Commissioner
the real estate commissioner is appointed by the governor and serve’s at the governor’s discretion. The commissioner determines administrative policy and enforces that policy.
Broker
a person employed for a fee by another to carry on any of the activities listed in the real estate law definition of a broker.
mortgage loan broker
an individual or company that brings borrowers and lenders together.
Commingling
placing the licensee’s own money in the same account with the money of others
Inducement of panic selling
soliciting or inducing the sale or lease of residential property on the grounds that wholly or in part of the loss of value due to another race, color, religion
Define “fictitious business name”
a business name that DOES NOT include the surname of the individual owner, and each of the partners name, or the nature of the business is not clearly evident by name. Also known as a “DBA”.
List the allowed activities of a real estate broker and salesperson.
- Selling or offering to sell
- Purchasing or offering to purchase
- Exchanging
- Soliciting or obtaining property listings for sale or exchange.
- Leasing, renting, or offering to lease or rent
- Selling, purchasing, or exchanging leases
- Filing an application for purchase or lease involving land owned by the state or federal government.
True or false - In CA, a real estate broker’s license can include the authority to act as a mortgage broker?
True
Define Mortgage Loan Originator (MLO).
An individual who, for compensation or gain takes a residential mortgage loan application or offers to negotiate the terms of a residential mortgage loan application.
Describe what may be included in a business opportunity transaction?
All business assets that are personal property such as inventory, trade fixtures, and the business’s goodwill.
Define bulk transfer of goods?
Any transfer in bulk of a substantial part of the materials, supplies, merchandise, equipment or other inventory of an applicable enterprise that is not in the ordinary course of the transferor’s business
Define Prepaid Rental Listing Service
A business that supplies prospective tenants with listings of a residential real property on payment of a fee collected at the same time or in advance of when the lists are supplied.
What are the requirements to become a real estate broker or sales person?
Must complete 8 of the following courses
1) Real Estate Practice
2) Legal Aspects of Real Estate
3) Real Estate Finance
4) Real Estate Appraisals
5) Real Estate Economics or Accounting
6) Three courses from the following:
a) Real Estate Principles
b) business law
c) property management
d) escrow
Test Breakdown on Next Card
25% - Practice of Real Estate
17% - Laws of Agency and Fiduciary Duties
15% - Property Ownership & Land Use Regulations
14% - Property Valuation and Financial Analysis
12% - Contracts
9% - Financing
8% - Transfer of Property
