Unit 1 Flashcards
associate licensee
A broker or salesperson who is employed by or in an independent contractor relationship with a real estate broker.
blind advertising
advertising that does not include the name and address of the person placing the ad, only a phone number or post office box address. Licensed brokers are generally prohibited by state license laws from using blind ads.
broker-officer
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.
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.
caveat emptor
A Latin phrase meaning “let the buyer beware.” A buyer should inspect the goods or realty before purchase.
certificate of status
Document issued by the 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 about the corporation.
codes
Bound volumes of laws and regulations.
conditional license
A conditional license is issued to a real estate salesperson who has not completed all of the required education courses, and is contingent on all education requirements being met.
Department of Real Estate (California)
The Department of Real Estate is the California agency that administers Real Estate Law, including licensing real estate brokers and agents; headed by the Real Estate Commissioner, who is appointed by the Governor and presides over the Real Estate Advisory Commission whose ten members are appointed by and serve at the Commissioner’s discretion.
fictitious business name
A business name that DOES NOT include the surname of the individual owner, and each of the partners or the nature of the business is not clearly evident by the name.
fictitious business name statement
A fictitious business name statement is a document indicating the name under which a business is operating; filed with the county where the business is located.
mortgage loan brokerage
A mortgage loan brokerage is an individual or company that brings borrowers and lenders together. In California, a real estate broker’s license also includes the authority to act as a mortgage broker.
police power
The inherent right of the state to regulate for the purpose of promoting health, safety, welfare, and morality. Police power gives the state the right to impose certain restraints on human conduct which are reasonably necessary in order to safeguard the public interest. This right is the basis of zoning, the official map, building codes, and subdivision regulations.
Prepaid Rental Listing Service (PRLS)
A Prepaid Rental Listing Service (PRLS) is a business that supplies prospective tenants with property listings on payment of a fee. It may be operated by a licensed real estate broker or under the authority of a PRLS license.
Real Estate Advisory Commission
The Real Estate Advisory Commission is a ten member panel appointed by the Real Estate Commissioner, who presides over its meetings. Six commission members must be licensed CA real estate brokers, and four must be non licensed members of the public. Commission members serve without compensation. The Commission makes recommendations to the Real Estate Commissioner on relevant matters.
real estate broker
A real estate broker is 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.
real estate brokerage
A Real Estate Brokerage is a business in which real estate license-related activities are performed under the authority of a real estate broker.
Real Estate Commissioner
appointed by the governor and serves at the governor’s discretion. The Real Estate Commissioner determines administrative policy and enforces that policy in the best interests of those dealing with real estate licensees. The person selected as commissioner must have been a practicing real estate broker in California for five years or otherwise engaged in real estate activity for five of the past ten years.
Real Estate Education and Research Fund
The Real Estate Education and Research Fund is a California fund financed by a fixed portion of real estate license fees, and is designed to encourage research in land use and real estate development.
real estate law
portion of the California Business and Professions Code regarding licensing of real estate brokers and salespeople and the activities of the Department of Real Estate. It also includes Subdivided Lands Law.
real estate salesperson
A real estate salesperson is a person employed directly or indirectly by a licensed real estate broker. A salesperson performs various tasks and responsibilities that may include selling and/or buying real estate; negotiating purchase, sale or exchange of real estate; or negotiating leases, rents and/or improvements.
Recovery Account
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 judgment cannot be collected.
Regulations of the Real Estate Commissioner
The Regulations of the Real Estate Commissioner are the rules that clarify and interpret the Real Estate Law and that are binding on real estate licensees.
restricted license
A real estate license with a restricted license is one on which one or more conditions are imposed by the Real Estate Commissioner as the result of a disciplinary action.
sales associate
A sales associate is a broker or salesperson who is employed by or in an independent contractor relationship with a real estate broker.
Subdivided Land Law
A disclosure law enacted to protect buyers of subdivided parcels. A public report is required for subdivisions of five or more parcels.
Uniform Commercial Code
The Uniform Commercial Code is the codification of commercial law, adopted in most states, that attempts to make uniform all laws relating to commercial transactions, including chattel mortgages and bulk transfers. Security interests in chattels are created by an instrument known as a security agreement. To give notice of the security interest, a financing statement must be recorded. Article 6 of the code regulates bulk transfers and the sale of a business as a whole, including all fixtures, chattels and merchandise.
