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Real Estate 4
Real Estate Principals lesson 4
|What happens when a Law is broken?
|What happens when a Regulation is broken?
|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?
|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?
|Who settles commission disputes?
|Civil court by civil action
|What does the Commissioner investigate?
|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
|False statements of facts (fraud)
|making a promise likely to influence or persuade
|Promising unavailable interest rate in a loan is what in the eyes of the law?
|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?
|what does "in house" mean?
|Mixing his own money or property with clients
|In what case may a broker hold an uncashed check?
|with written consent
|spending someons money
|claiming a commission on an exclusive listing witch doesn't contain a definite termination date
|Copies should be given?
|Right after signatures
|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?
|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?
|What is the fine for employing or paying an unlicensed person?
|up to $10,000
|doesn't identify broker
|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?
|Accepting kickbacks is?
|An attorney in fact can NOT?
|cannot act if his principal is dead or judged incompetent
|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
|natural person employed by a broker
|How long is salespersons term?
|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?
|how long does a former broker have to surrender license for transfer to new broker?
|Loss of license
|Expiration,revoked,suspended,or brokers death cancels license
|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?
|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?
|what is the main purpose of a trust fund?
|to separate brokers funds with clients funds
|comparing the bank's accounting with the broker's records
|should an agent question a seller about his motives?
|operating divided by #salespersons =
|gross income - commissions =
|what is NAR?
|National Association of realtors
|name used by NAR
|Code of ethics?
|guidelines issues by NAR
|honesty and fairness
|Certified property manager
|membership is restricted to?
|trust deeds and real property sales contracts
|how many can one person sell before required to get license?
|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?
|how long should a document be kept?
|any payment twice the smallest installment