has obtained a final civil judgment or criminal restitution

CH 2 - Real estate Principles Flashcards Listing-option. Section 10176(h)A licensee who has used a form that is both an option and a listing must inform the principal of the amount of profit the licensee will make, and must obtain the written consent of the principal approving the amount of such profit, before the licensee may exercise the option. This section does not apply where a licensee is using an option only.What is the Recovery Fundan account established as a last resort for a consumer who has obtained a final civil judgment or criminal restitution order against a real estate licensee based on fraud or certain other grounds. The consumer, who has suffered financial loss due to the wrongful act of a licensee in a real estate transaction, can receive payment of damages and arbitration from this fund, if the judgment hasn't been satisfied through the normal post-judgment proceedings, outlined as follows.Secret profit. Section 10176(g).Secret profit cases usually arise when the broker, who already has a higher offer from another buyer, makes a low offer, usually through a "dummy" purchaser. The broker then sells the property to the interested buyer for the higher price, with the difference being the secret profit.Effect of Revocation or Suspension:Once a real estate broker license is revoked or suspended, the licenses of every real estate salesperson in the broker's employ are automatically canceled. Such salespersons may transfer their licenses to a new employing broker.Non-Working StatusA salesperson may be issued and hold a license, but NOT perform acts requiring a license, without being in the employ of a broker. The license in such a case is given "non-working status" until the salesperson becomes employed by a broker and that broker notifies the DRE of such.How long is a RE license good for?All California real estate licenses are issued for a period of four years.The applicant for an original real estate broker license

must:

Be at least 18 years old;Be honest and truthful;Have been actively engaged as a real estate salesperson for at least two years during the five years immediately preceding the application OR prove that he/she has general real estate experience that is the equivalent of two years of full-time experience as a salesperson completed within a similar time period (We will explain this requirement in greater detail shortly.);Have completed EIGHT COURSES in addition to the experience requirements (These specific

courses are set forth on the next screen.); ANDPass the qualifying examination.What happens if a broker's license expires? the expiration will involve much more than simply the license and activities of that single broker. All licensed activities of the broker must cease, the broker's salespersons are immediately placed in a non-working status, and any branch office licenses are cancelled.

Original Broker License Fees:$300

The Commissioner's REGULATIONSThey are rules that are part of the California Administrative Code. These regulations have been established and are enforced by the Commissioner.The Commissioner's missionis to enforce the Real Estate Law and the Subdivided Lands Law in a manner that offers the maximum protection for persons dealing with real estate licensees and for purchasers of subdivided real property.Are DBA's permitted in California?Yes. Some corporations choose to do business under a "dba" or fictitious business name. this is ok provided that the corporation submits a copy of a Fictitious Business Name Statement as filed with the county clerk's office in the county where the corporation's principal place of business is located.Commingling. Section 10176(e)Commingling takes place when a broker has mixed the funds of a principal with the broker's own money. (Don't confuse commingling with conversion, which is the misappropriating and use of the principal's funds.Conversion, of course, can be a more serious offense.) All funds must be kept separate.What are the examination fees?Original ExaminationS- $60B- $95Re-Examinations- $60b- $95First Rescheduled Exams- $15b- $20Subsequent Rescheduled Exams- $30b-$30 Qualifications to be commissionermust have served for a minimum of 5 years as a real estate broker actively engaged in the real estate business in California OR must possess 5 years related experience associated with real estate activity in California during the last 10 years.A candidate for an original real estate salesperson license

must:

Be at least 18 years old to be issued a license (Surprisingly, there is no age restriction on taking the licensing exam.);To obtain a real estate salesperson license, you must first qualify for and pass a written examination. Those who pass the examination are provided a license application which must be submitted to and approved by the DRE.Provide a social security number or an individual taxpayer identification number.Honesty - Applicants must be honest and truthful. Conviction of a crime may result in the denial of a license. Failure to disclose any criminal violation or disciplinary action in an applicant's entire history may also result in denial of a license.UNLICENSED parties may solicit for the sale of real

property IF the party is:

only unlicensed person who may solicit for the sale of real property is the owner and/or his legal representatives, NOT including his real estate salesperson/broker, since obviously a salesperson or broker is already licensed.

police powerthe right of the state to enact and enforce laws for the order, safety, health, morals, and general welfare of the public.The MAIN purpose of the California Department of Real Estate The MAIN purpose of the California Department of Real Estate is to protect the public. The DRE achieves this purpose through the enactment and enforcement of laws relating to real estate and by establishing requirements for the real estate salespersons' and brokers' licenses.Section 10176 of the Business and Professions Codethe legal guideline for the actions of a real estate licensee performing or attempting to perform any of the licensed acts within the scope of the Real Estate Law.What is the Real Estate General Fund?What an account that holds ALL the money collected from license and exam fees, and is used for the operating expenses of the DRE.What is 20% of the General Fund set aside for? - 8% for the Real Estate Education and Research Fund (which we will discuss later in this course); and- 12% for the Recovery Fund.An applicant may apply for only the real estate exam or the combined exam and the four-year original license by submitting what items?An application for the real estate salesperson license (RE 400A or RE 216B);The appropriate license fee;One fully completed classifiable fingerprint card;The fingerprint processing fee; ANDTranscripts showing completion of all of the required courses.Fees if you want to file their examination and license application at the same time.Examination Fee $60License Fee$245Fingerprint Fee*Total Due to the DRE with RE 435 - $305

License Transfer:To make a transfer of the salesperson's employment, the

salesperson and both his former AND new employing

brokers must take the following steps:-The former

employing broker must immediately notify DRE Licensing in Sacramento in writing.-The former employer gives the transferring salesperson his/her license certificate and signs a Salesperson Change Application.-Within 5 days, the salesperson and the new employing broker must complete RE 214 (Salesperson Change Application) and send it to the Department of Real Estate. Note that a new license certificate will not be issued.Misrepresentation. Section 10176(a)Misrepresentation means that the licensee must disclose to his principal ALL material facts that the principal should know. If the licensee does not make such disclosures OR if he outright lies, there is a cause for disciplinary actions to be taken against him.The California Real Estate LAWThis law regulates licensing and subdivisions in California, can be found in the "Business and Professions Code."

Original Salesperson License Fees:$245

Definite termination date. Section 10176(f). A specified termination date is required IN WRITING on all exclusive listings relating to transactions for which a real