California Real Estate Law Flashcards

California Real Estate Law Flashcards They can not be kept in a Trust AccountWhat you do with Salesperson Unpaid Commissions?Calculated by dividing the operating expense of the office by the number of salespersons How do you calculate a brokers Desk cost?If buyer wins a civil judgement against a broker for fraudCommissioner can suspend or revoke the broker's license only after a hearing Unlicensed Associate -while performing clerical dutiesClerical Employee - Can result in a $10,000 fine for an individual, $50,000 for a corporation. Broker is not required to inform to commissioner how many properties he owns either.Broker - acting without a license - 45 hours of continuing education renewal and at least 18 hours must be consumer protection How many hours is broker renewal course?The manager receives a flat fee plus a % of the gross income What is a usual management agreement?Broker must reveal fact to seller - Example Brother in lawWhat if a buyer is a close relative?If a licensee, takes a listing and an option on the same property, there is a conflict of interest, and licensee must reveal his profit and obtain written permission from the owner before exercising his option Listing with an option Negotiate in California for the sale of a property in another state.California Licensee can Because the owners manual is made available Why is maintenance easier to schedule on New property?150 -day license to an appicantWhat will Cal BRE issue for Broker on delinquent child support payments for a license?Review and initial all contracts if the salesperson has at least two years full-time experience within the last five years. (working for the same broker is not necessary) Broker can designate a salesperson to Educations, research and recovery account - Portion of all licensing fees goes here. Part of funds used for educational research but most placed in a recovery account.What is a Real Estate Fund?Corporation, and syndicate buys property, broker must reveal his membership in the syndicate. If undisclosed, either party can rescind.What if a license is a member of a syndicate?Licensees do not often make malicious misrepresentations.Withholding negative information on the transfer disclosure statement is illegal (negative fraud).Misleading a potential lender is unlawful conduct Types of Misrepresentation Broker must immediately send the commissioner a certified written statement of facts.What must broker do if salesperson is Fired?Is making exaggerated claimsPuffing Issues (promulgates) rules and regulations which have the force and effort of the law and become a part of the

California Code of Regulations Real Estate Commissioner

Real Estate Broker, "California Bureau of Real Estate"What must be put on an add when advertising?The buyer does not need to reveal any profit that he will make in any future sale of the property What if a buyer and seller have a transaction and neither one is licensee?Failure of a licensee to disclose to his principal the full amount of commission or profit.Secret Profit Loss of LicenseWhat is a revoked license?Mixing his own money or property with property of othersCommingling Enforces the Real Estate LawReal Estate Commissioner Power of attorney is good for 1 year if the property is the primary residence of the principal.If principal becomes incompetent - How long is power of attorney good for?Unifies the organized real estate interests of a nationWhat is National Association Of Realtors?A Guideline for the ethical conduct of the members of N.A.R (Realtors Golden Rule) What is code of Ethics?The broker and any employees, when authorized by the broker, may make withdrawals.Trust Fund Withdrawls - A person (Natural or legal) who for compensation or in expectation of compensation, regardless of a form or time of payment, does any real estate act.Broker - Can place advertisements if specifically approved by a broker. Can not explain the significance of a document to the parties (example inspection report) What can clerical employee do and not do?Unlicensed employee who is bondedSalesperson employed by a broker +Withdrawals can be made by Must reside on the property he manages - Collects rents, fix up the property, shows vacant units, and hire contractors.Resident Property Manager - (Lawyer) while performing duties as a attorney at law.What is an Attorney of Law - They must be retainedWhat you do with Voided Checks - As an independent contractor, a salesperson pays Social Security Contributions What does a Salesperson Pay?Acting for more than one party in a transaction without the knowledge and consent of all parties Divided Agency Expiration, revocation or suspension of broker's license or death, cancels licenses of all salespeople in the brokers employ.What is a canceled license?He may be disciplined, may provide grounds for either party to rescind, and may be denied all commissions If agent does not disclose his dual agency to both parties.Licensee must disclose, when advertising that he is acting as an agent. A blind ad is an ad where an agent appears to be the owner. It doesn't identify the lender Blind Advertising Cannot give property away, sell, or mortgage it to himself, even if he pays fair market value for the property. He cannot act if his principal dies or is adjudged incompetent.Attorney in Fact Cannot $200 dollarsWhat the max a broker can have in a trust account?

Leasing, renting, collecting rents, (managing properties) or negotiating the sale, purchase, or exchange of leases on real property.What acts need a license? Leasing Period should run - Date closing of the transactions or date of listing, Uniform Electronic Transaction regulations require that a broker make available to commissioner a paper copy of any electronic records.What is period of records that should be retained?Selling under a Trust DeedWhat is a Trustee - A natural person employed by a real estate broker to do any real estate act for compensation What is a RE Salesperson - Transaction would continue and the broker's heirs would collect the commisssion from the broker's estate.What happens if broker dies before escrow closed?Broker can not advertise "no down payment" when the down payment is a second loan from a different lender.Mobile Home Lending - Charging an advance fee in a connection with the promotion, sale or lease of real property, or a loan on real property or a business opportunity.What acts need a license? Advance Fee Broker may advertise that he will give a gift to anyone buying a listed property if he reveals this to all interested parties.What must broker to to give a gift?It does not represent commingling if commissions are withdrawn within 25 days.What you do if brokers commissions are part of the rents collected?They do not collect penalties for the victims What is commissioner not authorized to do?Does not have to be approved by Commissioner Does broker/salesperson agreement need be approved?Each transaction - $50,000, Multiple transactions - $250,000 for all claims against one license.What are limits on recovery account?A misleading map is prima facie evidence that an advertisement is deceptive. Example - Move right in - when the house needs major structural repair.Deceptive Advertising They must equal the total due to all beneficiaries (the total aggregate trust fund liability) What must trust account bank balance total?Where a broker sells his own listing often rise to dual agency In House Sales Buying, selling, exchanging, collecting payments on or performing services in relation to, real property sales contracts or notes secured by real property liens.What acts need a license? Collecting payments Yes, can operate under a DBA, corporation, or a partnership can operate under a fictitious name when filed with the county and licensed by the Real Estate Commissioner. A DBA expires after 5 years.Can a broker do business under a DBA?Broker must review, oversee, inspect, and manage all contracts affecting a transaction.What must a broker Supervise?Appraiser who appraises property for a federally-related lending institution must be licensed or certified by the BREA Appraiser -