Unit #1 - Learning Objectives Quiz

Question 1

Describe functions of the DRE and The Real Estate Comissioner

Answer 1

To protect and promote the public interests in real estate matters through licensure, regulation, education and enforcement.

Appointed by the governor. To facilitate the administration and enforcement of the Real Estate Law and the Subdivided Lands Law, powered by law to issue regulations.

Question 2

Identify the ways in which a real estate brokerage may be owned

Answer 2

Only licensed brokers can start a brokerage.

1. Needs a corporation license application and fee.
2. A certificate of status (proof of license)
3. Statement of officers as filed with the secretary of state

Question 3

List the allowed activities of a real estate broker and salesperson

Answer 3

1. Selling or offering to sell, including soliciting prospective sellers
2. Purchasing or offering to purchase, including soliciting prospective purchasers
   Exchanging.
3. Soliciting or obtaining property listings for sale or exchange.
4. Leasing, renting, or offering to lease or rent.
5. Selling, purchasing, or exchanging leases.
6. Filing an application for purchase or lease involving land owned by the state or
   federal governments.

Question 4

Describe what may be included in a business opportunity transaction

Answer 4

Typical transactions include retail stores, automotive service businesses, restaurants, cocktail lounges, bakeries, manufacturing facilities, distribution and services businesses, etc.

Question 5

List the requirements for a prepaid rental listing service

Answer 5

1. Application form
2. Properly completed fingerprint card
3. Security in the form of a $10,000 surety bond or cash deposit for each location
4. The licensing fees

Question 6

List the requirements to become a real estate broker or real estate salesperson

Answer 6

1. 18 years or older
2. Complete 135 hours of learning
3. Pass Course Final Exam
4. Pass criminal background check
5. Pass CA salesperson license exam
6. Find broker to work under
7. Complete licensing application

Question 7

Describe how the Real Estate Law is enforced

Answer 7

Enforced by the Real Estate Commissioner. He/She implements and enforces the law.

Question 8

Identify the types of prohibited conduct that can result in disciplinary action

Answer 8

Misrepresentation
False promise
Continued misrepresentation
Undisclosed dual agency
Commingling
Not specifying listing termination date
Making a secret profit
Combining listing with option without informed consent of seller
Dishonest dealing
Obtaining signature of prospective purchaser of a business opportunity without owner’s authority
Willfully or repeatedly violating any provisions of the Civil Code regarding real property transfer disclosures.

Question 9

Explain the purpose and funding of the Real Estate Education and Research Fund

Answer 9

Research in land use and real estate development is made possible at both public and private entities throughout the state. The fund is financed by a fixed percentage of license fees.