The Business of Real Estate - Review Questions Flashcards
The Real Estate Law is found in…
the Business and Professions code.
The Real Estate Commissioner reports to…
the governor.
A salesperson owns 25% of the outstanding shares of Rollo Realty, Inc., and the broker owns the remaining shares. The division of this ownership is…
acceptable.
A salesperson is part owner of Rollo Realty, Inc. In the brokers absence, the salesperson frequently reviews the work of sales associates. This is…
prohibited.
A real estate business that is a partnership can have more than one office location, provided…
a broker partner obtains an additional license for each location.
The sale or transfer of goods ordinarily held for sale in the course of business is governed in California by…
the Uniform Commercial Code.
An officer of Ajax Corporation, who is not a real estate licensee, successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax. The officer received a commission on the sale in addition to his normal salary. The officer of Ajax Corporation…
should have had a real estate license.
If a real estate license is NOT renewed before it expires, the licensee…
must cease all real estate activities.
A real estate licensee can offer a mobile home for sale that is…
in a location where it can legally remain for one year.
A couple desperately wants to move to Pine Bend, and they like the seller’s house, which is listed with a broker. The couple tells the broker they will “make it worth his while” if he can persuade the sellers to accept their offer, and they send an expensive food basket to the broker as a sign of their good faith. The broker neglects to mention this to the sellers. This practice is…
prohibited.
A broker routinely places earnest money deposits in his personal account for overnight safekeeping. This practice is…
prohibited
A broker has an exclusive listing agreement with a property owner. The listing will terminate “when the parties agree.” This practice is…
prohibited
When a broker exercised his option to buy Whiteacre, he presented to the owner of Whiteacre a written statement of his expected profit in the transaction. The seller agreed in writing to proceed with the sale. This conduct is…
mandated
The broker-officer of XYZ Realty, Inc., does not like the overly aggressive sales tactics of XYZ’s salespeople but has not reprimanded them because business is so good. The brokers conduct is…
discouraged
A broker wants to help out his neighbors son, who recently acquired a B.A. in history from Back East University. The broker hires the graduate to show property to prospective buyers. Because the new employee has no real estate license, the broker handles all of the negotiating. This practice is…
prohibited
