Unit 1- The Business Of Real Estate Flashcards
Caveat Emptor
Latin phrase meaning “let the buyer beware”
Real Estate Law (division 4 of the business & professions code) has two parts:
- Part 1 covers licensing
- Part 2 covers transactions and includes the “subdivided lands law”
Regulations of the Real Estate Commissioner serves to _____ and _____ the Real Estate law .
- Clarify
- Interpret
✨They have the force and effect of law✨
DRE stands for ____ _____ _____
Department of Real Estate
The ____ _____ _____ is appointed by the governor and serves the governors discretion. Must’ve been a Real Estate broker practicing for 5 of the past 10 years
Real Estate Commissioner
Real Estate Commissioner responsibilities: (5)
• screen candidates for licensing
• conducts licensee disciplinary action
• administers consumer recovery account
• investigates non licensees performing activity where a license is required
• prepares subdivision public reports
Real Estate Brokerage
Is a business in which real estate license- related activities are performed under the supervision of a real estate broker.
A real estate salesperson is often referred to as what?
Sales associate or associate licensee. Acts only under supervision of a responsible broker
A real estate brokerage that is a Sole Proprietorship may be owned by who?
A licensed real estate broker, a salesperson, or a nonlicensee.
A brokerage may be set up as a Corporation provided that at least one officer of the corporation is a ______ _____ and is designated the responsible ____ -_____
Licensed broker
Broker- Officer
A brokerage can be a Partnership if at least one of the partners is a _____ _____ _____ _____
Licensed real estate broker
Fictitious Business name=
Is any name other than that of a real estate license. Must file a fictitious name business statement with/ county clerk of the brokers principal address.
License inspection
Brokers license must be available for inspection by the commissioner @ brokers principal place of business.
Broker- Salesperson Relationship
Purpose of Real estate law, a salesperson is always consider the employee of the broker.
Real Property Transactions
(Real state law permits real state licensee to _____ some one else in the following transactions w/ real property or business opportunity)
Represent
• Selling or offering to sell, including soliciting prospective sellers
• Purchasing or offering to purchase, including soliciting prospective purchasers
• Exchanging
• Soliciting or obtaining property listings for sale or exchange
• Leasing, renting, or offering to lease or rent
• Filing an application for purchase or lease involving land owned by the state or federal Governments.
Manufactured/ Mobilehomes: per Real estate law real estate agent can (3)
• Sell
• Purchase
• Exchange
If 2 or more for sale at agents place of business must be licensed as a Mobile home dealer.
If real estate agent displays or offers for sale 2 or more registered mobile homes @ agents place of business, the agent must be licensed as a _____ _____ _____
Mobile home dealer
Can a real estate agent act as principal in one of the following?
• buying, leasing, or taking an option on mineral, oil, or gas property for sale, exchange, lease, sublease, or assignment of lease of all or part property?
• offering mining claims for sale or assignment ?
Yes
A transaction involving a Business Opportunity includes …
- business assets that are personal property, such as inventory, trade fixtures, and the business’ goodwill (the benefit derived from the business’s favorable relationship with costumers)
-may take form as FRANCHISE AGREEMENT
Franchise definition by Californias Franchise Investment Law-
Contract or agreement either expressed or implied, whether oral or written, between 2 or more persons by which
• a franchisee is granted the right to engage in the business of offering, selling, or distributing goods or services under a marketing plan or system prescribed by franchisor
• operation of franchisee’s business pursuant to such plan or system is substantially associated with franchisors trademark, service mark, trade name, logotype, advertising, or other commercial symbol
• franchisee is required to pay franchise fee (directly or indirectly)
The ____ ____ ____ governs the sale or transfer of goods ordinarily held for sale in the course of business. ( goods held for sale probably were obtained on credit from supplier or manufacturer
Uniform Commercial Code
Bulk transfer of goods:
Any transfer of a substantial part of materials, supplies, merchandise, equipment, or other inventory that is not in the ordinary course of the transferors business. Uniform commercial code protects creditors of seller in such transfer by requiring that notice of transfer 12 business days before transfer takes place
Prepaid Rental Listing Service License is
A business that supplies prospective tenants with listings of residential real
Property on payment of a fee collected at the same time or in advance of when the listing was supplied.
Real estate Education and Research Fund is funded by
Public and private universities, and research entities through out the state. Find is financed by a fixed percent of license fees
The ____ ____ is another find financed by license fees. Available to victims of licensee fraud, misrepresentation, deceit, or conversion (theft) of a trust fund, who are awarded money damages by a court
Recovery Account
Realists is
The member designation of the Nation Association of Real Estate Brokers INC ( NAREB). Has local boards nationwide
