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Real Estate 4
Real Estate Principals lesson 4
| Question | Answer |
|---|---|
| What happens when a Law is broken? | Jail |
| What happens when a Regulation is broken? | A Fine |
| What is the basic purpose of real estate law? | To prevent fraud |
| Where is the real estate law found? | In the Business and Professions Code |
| How much does a violation in real estate cost? | $10,000 fine and/or six months in jail |
| Who does the commissioner preside over? | Real estate Advisory Commission |
| who is the real estate commissioner appointed by? | The governor |
| What does the commissioner enforce? | The Real Estate Law |
| What does the commissioner Issue? | Rules and Regulations |
| What does the commissioner regulate in some respects? | subdivisions and business opportunities |
| Does the commission settle commission disputes? | No |
| Who settles commission disputes? | Civil court by civil action |
| What does the Commissioner investigate? | Complaints |
| how does the commissioner investigate complaints? | By holding hearings under the Administrative Procedure Act |
| What happens if a person has broken the law? | The District Attorney would Prosecute |
| What is the result of breaking real estate law? | License gets Revoked |
| How many people does the Real estate Advisory commission consist of? | 10 without commissioner and 11 with commissioner |
| Misrepresentation? | False statements of facts (fraud) |
| False Promise? | making a promise likely to influence or persuade |
| Promising unavailable interest rate in a loan is what in the eyes of the law? | illegal |
| Divided Agency? | Acting for more than one party in a transaction without the knowledge and consent of both parties |
| can an agent collect commission from both parties | Yes with both parties knowledge and consent |
| "In house" sales give rise to? | dual agency |
| what does "in house" mean? | same office |
| Commingling? | Mixing his own money or property with clients |
| In what case may a broker hold an uncashed check? | with written consent |
| Conversion? | spending someons money |
| Termination Date? | claiming a commission on an exclusive listing witch doesn't contain a definite termination date |
| Copies should be given? | Right after signatures |
| Secret Profit? | Failure to disclose the amount or your commission or profit |
| When should a licensee disclose that they have a license? | whenever involved in a real estate transaction even if personal |
| if a buyer is a close relative, does the agent have to disclose that they have a license? | yes |
| If a buyer and seller have a transaction and neither one has a license, does either have disclose future profit potential? | No, neither has to disclose |
| Misuse of "REALTOR"? | only members National Association of Realtor (NAR) may use term |
| Supervision of Salesperson? | Broker must have reasonable supervision over salespeople |
| Who must review sales persons transactions? | Broker |
| What is the fine for employing or paying an unlicensed person? | up to $10,000 |
| Blind advertising? | doesn't identify broker |
| Deceptive Advertising? | says something that isn't true, like move right in when that is impossible |
| Can a broker offer a gift to anyone buying a listed property? | Yes if offered to all parties |
| what is a requirement for an advertisement offering prizes? | advertising must reveal if attendance at a sales presentation is required |
| How long must a broker keep records? | 3 years |
| Accepting kickbacks is? | illegal |
| An attorney in fact can NOT? | cannot act if his principal is dead or judged incompetent |
| Broker? | a person natural or legal who does real estate act |
| What is the fine for acting as a broker without a license? | $10,000 for individual and $50,000 for a corporation |
| How long is a Broker license term? | 4 years with a 2 years grace period to renew |
| What is required to renew a broker license? | 45 hours of continuing education |
| What must a broker do to work as a nonresident? | file a consent to service of process |
| who is notified that a Broker is working as a nonresident? | a subpoena would be delivered to the California Secretary of State |
| Can a Corporation have a Broker license? | Yes but a qualified broker must be designated as the responsible broker |
| Salesperson? | natural person employed by a broker |
| How long is salespersons term? | 4 years |
| Can a broker work as a salesperson? | yes with contract with broker they are under |
| Even if a broker, where does a salesperson receive all compensation? | from his employing broker ONLY |
| Who must be notified of a transfer of license? | commissioner, old broker within 10 days, new broker with 5 days |
| Who must be notified if salesperson is fired for cause? | commisioner |
| how long does a former broker have to surrender license for transfer to new broker? | 3 days |
| Suspended license? | temporary loss |
| Revoked License? | Loss of license |
| Cancelled license? | Expiration,revoked,suspended,or brokers death cancels license |
| Mobile Homes? | must be registered and greater than 8x40 |
| How do you transfer a title to a mobile home? | send required documents to Department of housing and Community Developement |
| How long does a salesperson have to remove their sign? | 48 hours |
| Is a broker required to keep a trust fund? | No just a documentation of all the money that passes through his hands |
| who can withdrawal from a trust fund? | anyone who is authorized |
| How much money can a broken have in a trust fund without it being commingling? | $200 |
| what is the main purpose of a trust fund? | to separate brokers funds with clients funds |
| Reconciliation? | comparing the bank's accounting with the broker's records |
| should an agent question a seller about his motives? | yes |
| operating divided by #salespersons = | desk cost |
| gross income - commissions = | company dollar |
| what is NAR? | National Association of realtors |
| Realtor? | name used by NAR |
| Code of ethics? | guidelines issues by NAR |
| Ethics? | honesty and fairness |
| M.A.I? | Appraisal institute |
| C.P.M. | Certified property manager |
| membership is restricted to? | individuals only |
| Article 5? | trust deeds and real property sales contracts |
| how many can one person sell before required to get license? | 7 |
| Article 7? | negotiation of loans |
| hard money Loans? | the borrower receives cash using a new note secured by a trust deed |
| First trust deeds commission maximum | 5% < 3 yrs. > or equal to 10% |
| Second or Junior trust deeds commission max | 55 < 2 yrs. > or equal to 10% (less than 3yrs.) 15% > 3yrs. |
| Mortgage Loan disclosure statement? | details all costs and expenses that will be charged to the borrower |
| when should a copy be given? | when signed |
| how long should a document be kept? | 3 years |
| Balloon Payments? | any payment twice the smallest installment |
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