The Business of Real Estate - Vocabulary

Question 1

associate licensee

Answer 1

A real estate salesperson or broker who works as the employee of a real estate broker.

Question 2

blind advertising

Answer 2

Ad in which the name of the person placing the ad is not mentioned.

Question 3

bulk transfer of goods

Answer 3

Any transfer of a substantial part of the materials, supplies, merchandise, equipment, or other inventory of a business that is not in the ordinary course of the business’s activities.

Question 4

Business and Professions Code

Answer 4

California code that contains the Real Estate Law, which includes real estate licensing, transaction requirements, and the Subdivided Lands Law.

Question 5

business opportunity

Answer 5

The assets of an existing business enterprise, including its goodwill.

Question 6

California Bureau of Real Estate (CalBRE)

Answer 6

California agency that administers the Real Estate Law, including the licensing of real estate brokers and salespeople.

Question 7

caveat emptor

Answer 7

Latin phrase meaning “Let the buyer beware.”

Question 8

certificate of status

Answer 8

Document issued by California secretary of state showing a corporation’s place of domicile, date of incorporation, corporate number, name and address of agent for service of process, and other information.

Question 9

codes

Answer 9

Bound volumes of laws and regulations

Question 10

fictitious business name statement

Answer 10

Document indicating the name under which a business is operating; filed with the county where the business is located.

Information is available at www.sos.ca.gov/business/corp/corp_irc/htm/

Question 11

franchise

Answer 11

A contract or agreement between franchisor and the franchisee

Question 12

manufactured home

Answer 12

A structure built on or after June 15, 1976, transportable in one or more sections, designed and equipped to contain no more than two dwelling units and to comply with HUD building specifications.

Question 13

mobile home dealer

Answer 13

Agent who displays or offers for sale two or more registered mobile homes at the agent’s place of business; requires licensure by the California Department of Housing and Community Development.

Question 14

mortgage loan brokerage

Answer 14

Individual or company that brings borrowers and lenders together
- in CA, a real estate broker’s license also includes the authority to act as a mortgage broker
- a real estate licensee who conducts mortgage loan origination activities for residential property of one to four units must obtain an MLO license endorsement that is attached to the real estate license is an renewed annually.

Question 15

mortgage loan originator (MLO)

Answer 15

(MLO) real estate licensee who conducts mortgage loan origination activities and must register annually on the Nationwide Mortgage Licensing System and Registry (NMLS)

Question 16

Prepaid Rental Listing Service (PRLS)

Answer 16

Business that supplies prospective tenants with property listings on payment of a fee collected at the same time or in advance of when the listings are supplied.

Question 17

real estate broker

Answer 17

A person employed for a fee by another to carry on any of the activities listing in the Real Estate Law definition of a broker.

Question 18

real estate brokerage

Answer 18

Business licensed to conduct activities under authority of a real estate broker’s license - may consist of only one broker and no employees - may be large and have specialized departments and support staff.

Question 19

Real Estate Education and Research Fund

Answer 19

California fund financed by a fixed portion of real estate license fees, designed to encourage research in land use and real estate development

Question 20

Real Estate Law

Answer 20

Portion of the California business and professions code regarding licensing of real estate brokers and salespeople and activities of the CalBRE; also includes the Subdivided Lands Law.

Question 21

real estate salesperson

Answer 21

A person licensed under the provisions of the Real Estate Law to act under the control and supervision of a real estate broker in carrying on any of the activities listing in the license law.

Question 22

Recovery Account

Answer 22

State fund financed by real estate license fees and intended to help compensate victims of real estate licensee fraud, misrepresentation, deceit, or conversion of trust funds, when a court-ordered judgement cannot be collected.

Question 23

Regulations of the Real Estate Commissioner

Answer 23

Rules that clarify and interpret the Real Estate Law and that are binding on real estate licensees.

Question 24

restricted license

Answer 24

A real estate license on which one or more conditions are imposed by the Real Estate Commissioner as the result of disciplinary action.

Question 25

Uniform Commercial Code

Answer 25

Governs the sale or transfer of goods ordinarily held for sale in the course of business.