Unit 1

Question 1

Caveat Emptor

Answer 1

Latin phrase meaning “let the buyer beware”

Question 2

Associate Licensee

Answer 2

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

Question 3

Blind Ad

Answer 3

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

Question 4

Broker-Officer

Answer 4

A licensed broker who is an officer of a brokerage that is set up as a corporation and who is designated as the broker responsible for supervision of licensed employees of the brokerage

Question 5

Bulk Transfer of Goods

Answer 5

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 activities.

Question 6

Business & Professions Code

Answer 6

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

Question 7

Business Opportunity

Answer 7

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

Question 8

California Bureau of Real Estate (CalBRE)

Answer 8

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

Question 9

Certificate of Status

Answer 9

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 10

Codes

Answer 10

Bound volume of laws and regulations.

Question 11

Fictitious Business Name Statement

Answer 11

Document indicating the name under which a business is operating; filed with the county where the business is located. Information is available at sos.ca.gov/buiness/corp/corp_irc.htm

Question 12

Franchise

Answer 12

A contract or agreement between the franchisor (grantor) and the Franchisee (grantee)

Question 13

Manufactured Home

Answer 13

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 14

Mobilehome Dealer

Answer 14

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

Question 15

Mortgage Loan Brokerage

Answer 15

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

Question 16

Mortgage Loan Originator (MLO)

Answer 16

Real estate license who conducts mortgage loan origination activities and must register annually on the Nationwide Mortgage Licensing System & Registry (NMLS) found at mortgage.natiowidelicensingsystem.org

Question 17

Prepaid Rental Listing Service (PRLS)

Answer 17

Business that supplies prospective tenants with property listings on payment of a fee; mat be preformed by a licensed real estate broker or under the authority of a PRLS license.

Question 18

Real Estate Broker

Answer 18

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 19

Real Estate Brokerage

Answer 19

Business licensed to conduct activities under authority of real estate broker’s license.