The Business of Real Estate

Question 1

What does “Caveat Emptor” mean.

Answer 1

a latin phrase meaning “let the buyer beware”. A buyer should inspect the goods or realty before purchase.

Question 2

police power

Answer 2

the inherent right of the state to regulate for the purpose of promoting health, safety, welfare and morality.

Question 3

Business and professions code

Answer 3

Division 4 of the CA Business and professions code

Question 4

Real Estate Commissioner

Answer 4

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.

Question 5

Broker

Answer 5

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.

Question 6

mortgage loan broker

Answer 6

an individual or company that brings borrowers and lenders together.

Question 7

Commingling

Answer 7

placing the licensee’s own money in the same account with the money of others

Question 8

Inducement of panic selling

Answer 8

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