Unit #1: The Business of Real Estate

Question 1

Associate Licensee/ Sales Associate

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

Broker-Officer

Answer 3

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 4

Bulk Transfer of Goods

Answer 4

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 5

Business and Professions Code

Answer 5

California code that contains the real estate law, which includes realistic licensing, transaction requirements, and the Subdivided Lands Law

Question 6

Business Opportunity

Answer 6

The assets of an existing business enterprise, including its goodwill

Question 7

California Bureau of Real Estate (CalBRE)

Answer 7

California agency that administers the Real Estate State Law, including the licensing of Real Estate Brokers and sales people.

Question 8

Caveat Emptor

Answer 8

Latin phrase meaning “let the buyer beware.”

Question 9

Certificate of Status

Answer 9

Document issued by California secretary of states 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

Code

Answer 10

Bound volumes of laws and regulations

Question 11

Real Estate Education and Research Fund

Answer 11

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

Question 12

Regulations of the Real Estate Commission

Answer 12

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

Question 13

Uniform Commercial Code

Answer 13

Establishes a unified and comprehensive method for regulation of security transactions in personal property

Question 14

Fictitious Business Name Statement

Answer 14

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

Question 15

Franchise

Answer 15

A contract or agreement between the franchiser (grantor) and the franchisee (grantee)

Question 16

Manufactured Home

Answer 16

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 17

Mobilehome Dealer

Answer 17

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 18

Mortgage Loan Originator (MLO)

Answer 18

Real estate licensee who conducts mortgage loan origination activities and must register annually on the Nationwide Mortgage License System and Registry

www.nationwidelicensingsystem.org

Question 19

Prepaid Rental Listing Services (PRLS)

Answer 19

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

Question 20

Real Estate Broker

Answer 20

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 21

Real Estate Brokerage

Answer 21

Business license to conduct activities under authority of a Real Estate Brokers License.

Question 22

Real Estate Law

Answer 22

Portion of the California Business and Professions Code regarding licensing of Real Estate Brokers and salespeople and activities of the California Bureau of Real Estate; also include Subdivided Lands Law.

Question 23

Real Estate Salesperson

Answer 23

A persons licensed under the provisions of the Real Estate Law to act under the control of supervision of a Real Estate Broker and caring on any of the activities listed in the license law.

Question 24

Recovery Account

Answer 24

State funded 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 the court-ordered judgment cannot be collected.

Question 25

Restricted License

Answer 25

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