California: Real Estate Principles - Chapter 1 Flashcards

California: Real Estate Principles - Chapter 1 Flashcards

August 4, 1943 - authority of DRE was organized into the two Parts of Division 4 of the Business and Professions

Code: What numbers are the two parts and their

descriptions?Part 1, Sections 10000 to 10580 - Real Estate Law;Part 2,

Sections 11000 to 11200 - Subdivided Lands Lawnote:

These laws are NOT the same in their purpose or operation.What are the aspects apply to the Commission's Regulation 2770?They are NOT considered if the advertisement or other

information involves a service, BUT IS:-NOT directed to

any particular person or customer located within California;-LIMITED to general information about the services offered to customers or the public in general;-AND

includes the following words: "The services referred to

herein are not available to persons located within the State of California."-If the advertisement or information does not involve a service provided in connection with activity for

which a real estate license is required: OR-If the

advertisement or information is not being published, circulated, or transmitted on behalf of another person(s).An examinee or licensee may perform what transactions on the DRE website?1. Check test results2. Renew salesperson and broker license3. Obtain the current testing schedule4. All of the above

• All of the above

Who is in charge of the DRE?It is headed by the Real Estate Commissioner who administers the real estate license laws, handles advertising, funds, clients, and customers.Is it permissible to advertise real estate associated services or products in California without a California real estate license?1. No. All real estate related services or products must only be advertised by a licensed California real estate salesperson.2. Yes, the Internet is a free commerce site.Any person may advertise whatever services or products they choose, as long as they are legal.3. Yes, as long as the products or services do not include any actions for which a California real estate license is required.4. None of the above.

• Yes, as long as the products or services do not include

any actions for which a California real estate license is required.Which portion of the California Business and Professions Code consists of the Subdivided Lands Law?1. Part 1, Sections 10000 to 10580 of the Business and Professions Code2. Part 2, Sections 11000 to 11200 of the Business and Professions Code3. California Civil Code, Section 2985 of the Business and Professions Code4. None of the Above Part 2, Sections 11000 to 11200 of the Business and Professions Code

Upon completion of this course, you should understand:1.

The facts regarding disclosure of commissions earned to all parties in a transaction.2. Real estate taxes and special assessments.3. Encumbrances, liens, easements and encroachments.4. All of the above.

• All of the above.

Anyone who is not a California licensed broker may not?legally solicit California residents.Misleading advertising can result in?criminal penalties.Which regulation or section(s) apply to the use of the Internet for advertising in California?1. Commission's Regulation 27702. Commission's Regulation 0073.Business and Professions Code, Sections 10235.5 and

10140.64. Both A and B

• Commission's Regulation 2770

California licensing laws define which of the following:1.

Real Estate Brokerage2. Handling Trust Funds3. Managing Escrow Accounts4. All of the Above

• All of the Above

What is the DRE?The California Department of Real Estate Licensees who advertise on the Internet are required by law to?indicate their license status.Penny, a California licensee, has been advertising on the Internet. She specializes in the sale of upscale homes in the Hollywood Hills area. Penny has been violating the Business and Professions Code, Sections 10235.5 and

10140.6. What has she done?1. Penny should not be

soliciting her services to the residents of California2. Penny failed to indicate in the advertisement her license status3.The services she advertises do not include any actions for which a license is required4. None of the above The services she advertises do not include any actions for

which a license is required.Note: All advertising and

information that is made by a California real estate broker must state so clearly. Under the B&P Sections 10235.5 and 10140.6, licensees who advertise on the Internet are required by law to indicate their license status.Gerard, a Nevada real estate licensee, has been advertising his services online to California citizens. He sells resort property outside Las Vegas and believes the California market could be very lucrative. Is it permissible for Gerard to advertise in this manner? Why or why not?1.It is not permissible for Gerard to solicit California residents. He must hold a California real estate license in addition to his Nevada license.2. It is not permissible for Gerard to solicit California residents. State-to-state real estate transactions must be approved by the DRE.3. Yes, it is permissible for Gerard to advertise his services to California residents. He is only advertising his services, not offering any advice. Therefore a California license is not needed.4. None of the above

• It is not permissible for Gerard to solicit California

residents. He must hold a California real estate license in addition to his Nevada license.Which of the following will not be covered in this course?1.How to advertise on the Internet in other states2. The mortgage market in California3. Environmental issues and regulations in California4. Voluntary and involuntary

alienation How to advertise on the Internet in other states What is Commission's Regulation 2770?Anyone who advertises about services over the Internet is NOT to be considered a real estate broker in California if...

As an examinee, or a new licensee, where is the best, most accurate source for current California Department of Real Estate information?1. Your Educator2. Your Broker3. The DRE website4. All of the Above

• The DRE website

What circumstances make the Commissions Regulation 2770 inapplicable?

It does not apply if:-The person who is publishing or

otherwise circulating the information is exempt from license requirements as set forth in the Business and Professions Code, Sections 10133 or 10133.1;-The services do not include any actions for which a license is required; or-Before there is any direct communication with a specific customer, the business person already has implemented policies and procedures in place for such communication, keeping in mind that the person replying to the communication must not violate the law by acting in the capacity of a real estate licensee; AND-All advertising and information that is made by a California real estate broker MUST STATE SO CLEARLY. Under the B&P Sections 10235.5 and 10140.6, licensees who advertise on the Internet are required by law to indicate their license status.