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Real Estate 4

Real Estate Principals lesson 4

QuestionAnswer
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
Created by: 1535448438