Unit 15 Quiz - Real Estate Principles Flashcards

Unit 15 Quiz - Real Estate Principles Flashcards Someone places an advertisement for real estate services without listing a real estate license number. In fact, the person does not have a real estate license. Such an

individual could be liable for prosecution by the:a.

Department of Real Estate.b. local district attorney.c. office of the Attorney General.d. local law enforcement agencies.

• local district attorney.

A broker must have a written contract with which of the following employees?a. Secretariesb. Janitorial servicec.Brokers acting as salespeople who do not havetheir own officed. All of the above

• Brokers acting as salespeople who do not have their own

office Who many times can a person retake a real estate license examination?A. TwiceB. Three timesC. 10 timesD. An unlimited amount

• An unlimited amount

When engaging in acts for which a license is required, what must a real estate licensee disclose on all solicitation materials, such as business cards?A. His or her special designationsB. His or her eight digit license identification numberC. His or her cell phone numberD. His or her identifying photo

• His or her eight digit license identification number

In the course of his or her duties, a real estate salesperson might prepare or sign documents or legal instruments that may have a material effect on the rights or obligations of those entering the transaction. The supervising broker must review, initial, and date these documents or instruments within five days or before the close of escrow. However, the broker may delegate these duties to a salesperson to review items prepared by other salespeople provided that

the delegated salesperson has:a. been employed by that

same broker for at least two years full time.b. been employed by that same broker for at least two years full time and has completed at least 18 units of college-level courses related to real estate.c. at least two years full-time experience as a real estate salesperson within the past five years.d. at least two years full-time experience as a real estate salesperson within the past five years and has completed at least 18 units of college-level courses related to real estate.

• at least two years full-time experience as a real estate

salesperson within the past five years.A complaint that involves simple disputes or minor issues

between consumers and licensees is usually handled by:a.

issuing a citation.b. involving the Advocacy Program.c.assessing a fine.d. holding a formal hearing.

• involving the Advocacy Program.

Broker Pat has a property listed for nine months without success. He believes the property is 10% overpriced, and he knows that major structural repairs are required. Pat writes and pays for the following advertisement to run in a

local newspaper: "Charming 2 BDRM Victorian. Move in

right away! Wait `til you see the price! Ready for you! Call Pat at 555-1212." What, if anything, is wrong with the

advertisement?a. There is no asking price: Regulation Z

was violated.b. It was unlawful because Pat knew structural work was required and the ad did not state this.c. It was unethical to advertise for overpriced property.d. The newspaper publisher would be liable for damages if anyone purchased the property as a result of the advertisement.

• It was unlawful because Pat knew structural work was

required and the ad did not state this.After close of escrow, the actual selling price of the property must be disclosed to both buyer and seller

within:a. 5 business days.b. 10 business days.c. 15 days.d.

• month.
• 1 month.

If an agent misappropriates his or her principal's money, he

or she is guilty of:A. puffing.B. estoppel.C. conversion.D.

secret profit.

• conversion.

What is the grace period for the renewal of a salesperson's or broker's license?A. Six monthsB. One yearC. Five yearsD. Two years

• Two years

Davis did not have a real estate license but negotiated a contract with Taylor to buy Taylor's 20-acre lot for $5,000/acre. Taylor accepted Davis' offer. During negotiations, Davis himself was offered $20,000/acre by a third party for the same 20 acres. Davis did not disclose this fact to Taylor and went ahead with the purchase. Davis later sold the 20 acres to the third party for $20,000/acre.Taylor subsequently learned that Davis resold the lot.Under these circumstances, an attorney will probably

advise that:a. Taylor may rescind the contract if Taylor

reimburses the third party for expenses incurred in the transaction.b. Taylor has no recourse against Davis.c.Taylor has a cause of action against Davis because Davis had special knowledge of the property that was not disclosed during the transaction.d. Taylor must show that the third party had knowledge of the realistic property value.

• Taylor has no recourse against Davis.

DRE regards a salesperson's relationship with a broker as

a(n):a. employee.b. independent contractor.c. general

partner.d. limited partner.

• employee.

A broker holding an unrestricted license negotiated the sale of real estate. The broker defrauded the buyer during the

sales transaction. The defrauded buyer brought a civil suit against the broker on grounds of fraud and was awarded a

final judgment. The Real Estate Commissioner:a. may

suspend the broker's license when the Commissioner receives a copy of the final judgment of the court.b. must wait to take action until the buyer files a formal complaint with the Commissioner.c. may suspend the broker's license until a formal hearing is convened.d. may hold a hearing but may not suspend or revoke the license until the hearing is concluded.

• may hold a hearing but may not suspend or revoke the

license until the hearing is concluded.

An employing broker who discharges a salesperson for

violating the Real Estate Law must provide:A. actual video

footage of the salesperson committing the wrongful act.B.at least 10 witnesses who can attest to the licensee's wrongful acts.C. an accurate and detailed phone message to theCommissioner.D. a certified written statement of the facts to the Commissioner.

• a certified written statement of the facts to the

Commissioner.

The Real Estate Law is that law that governs:A. the rights

of property owners.B. the licensing and conduct of real estate licensees.C. leasing real property.D. the terms of an agreement in a real estate transaction.

• the licensing and conduct of real estate licensees.

Which of the following is not a job of the Real Estate Commissioner?A. Settling commission disputesB.Investigating complaints against licenseesC. Regulating subdivisionsD. Screening applicants for licensing

• Settling commission disputesHint = The responsibilities

of the Real Estate Commissioner include examining complaints against licensees, screening applicants for licensing, and regulating specific aspects of the sale of subdivisions. LO = 12B15 recognize provisions of the Real Estate Law.If an employing broker discharges a salesperson for

violating a provision of the Real Estate Law, the broker:a.

must notify the Real Estate Commissioner within three days of the termination of the salesperson.b. must telephone the Commissioner immediately.c. must notify the Commissioner immediately by mailing a certified written statement of the facts.d. is under no duty to inform the Commissioner.

• must notify the Commissioner immediately by mailing a

certified written statement of the facts.Broker Kim, who is not a member of any trade organization,

has been trying out a new advertising slogan: "A new breed

of Realtor." This practice is:a. grounds for revocation or

suspension of her real estate license.b. permissible, providing the word realtor is not capitalized.c. acceptable as long as she is not licensed in more than one state.d. a violation of the Fair Housing Laws.

• grounds for revocation or suspension of her real estate

license.Complaints involving minor disputes between consumers

and licensees is handled by the:A. Advocacy Program.B.

Department of Justice.C. Supreme Court.D. Department of Housing and Urban Development.

• Advocacy Program.

An investigation of a licensee's actions is typically initiated

by:A. receipt of a verified written complaint.B. a verbal

complaint to the DRE Call Center.C. a recommendation from the Federal Bureau ofInvestigation.D. a recommendation from the local police.

• receipt of a verified written complaint.

When applying for the actual real estate license, what must a prospective licensee do after passing the examination?A.Submit one set of classifiable fingerprintsB. Take continuing education coursesC. Obtain a credit report from