California Real Estate Quiz Questions

The correct answer is "his or her employing broker." The employing broker is responsible for compensating the real estate salesperson for their real estate activities. This is because the salesperson is an employee of the broker and any compensation owed to them should come directly from the broker. The seller, buyer, or escrow company may be involved in the transaction, but they are not directly responsible for paying the salesperson's compensation.

The agent's conduct was illegal because promising a 7.5% loan and then pressuring the buyer to accept an 8% loan is a breach of contract. The agent did not fulfill their promise and coerced the buyer into accepting less favorable terms. This goes against the principles of fair dealing and honesty in business transactions.

After a broker reconciles his client trust account, the broker's client liabilities should match the trust account balance. This means that the total amount owed to clients should be equal to the total amount held in the trust account. If there are any overages (excess funds) or shortages (insufficient funds), it would indicate a discrepancy in the account and would require further investigation and corrective action. The mention of fidelity bond in the options is unrelated to the reconciliation process and does not affect the matching of client liabilities with the trust account balance.

A licensed real estate salesperson is directly responsible to the employing broker because they work under their supervision and guidance. The employing broker is responsible for overseeing the salesperson's activities, ensuring they comply with laws and regulations, and providing support and training. The salesperson acts as a representative of the employing broker and their interests, working to facilitate real estate transactions on their behalf. Therefore, the employing broker holds the ultimate responsibility for the salesperson's actions and performance.

The word "ethics" refers to a set of moral principles and values that guide a person's behavior and decision-making. In the context of real estate agents, ethics would encompass the values that govern their relationships with customers, other agents, and the general public. This includes principles such as trust, honesty, fairness, and respect. Ethics play a crucial role in maintaining professionalism and integrity within the real estate industry, ensuring that agents act in the best interests of their clients and adhere to legal and ethical standards.

A real estate salesperson is required to keep a copy of his employment contract with the broker for three years after quitting the office. This is important for legal and documentation purposes, as it ensures that both parties have access to the terms and conditions of their agreement during this period. By keeping the contract for three years, the salesperson can refer back to it if any disputes or issues arise regarding their employment with the broker. This timeframe allows for sufficient time to address any potential concerns or claims that may arise after leaving the office.

Puffing - when a real estate licensee exaggerates the feature of a property or the location in an ad by giving an opinion as part of the sales process

The correct answer is "all of the above." When a real estate licensee is required to take 45 hours of continuing education courses to renew their license, they must include Agency, Ethics, Trust Fund Handling, Fair Housing, Risk Management, and 18 hours of consumer protection within those 45 hours.

The correct answer is "read and approve all material before it is used." This is because real estate brokers have a legal responsibility to ensure that all advertising materials are accurate and comply with relevant laws and regulations. By reading and approving all material before it is used, the broker can ensure that the content is appropriate and meets the necessary standards. This helps to protect both the broker and the consumers involved in the real estate transaction.

An employment agreement between a broker and a salesperson does not require approval by the Bureau of Real Estate prior to use. This is because an employment agreement is a private contract between two parties and does not directly involve any real estate transactions or financial disclosures. The Bureau of Real Estate is primarily concerned with regulating real estate contracts and documents that have a direct impact on the buying, selling, or financing of real property.

The real estate law considers the salesperson employed by a real estate broker as an employee. This means that the salesperson works directly for the broker and is subject to their control and supervision. As an employee, the salesperson is entitled to certain benefits and protections, such as minimum wage, overtime pay, and workers' compensation. This classification also implies that the broker is responsible for the actions and conduct of the salesperson while they are performing their duties.

If someone is attempting to renew a real estate license and their name appears on a list of persons who have not complied with the court order to provide child-support payments, the Bureau of Real Estate will renew their license as a temporary license. However, the individual must pay off the debt within 150 days. This means that they will have a limited time period to resolve their child-support payment issue before their license is affected.

When an agent withholds a new listing from other agents and/or the MLS in order to attempt to sell the listing herself, it is considered unethical and described as a pocket listing. This practice involves keeping the listing "in the agent's pocket" rather than making it widely available to other agents and potential buyers. By doing so, the agent limits competition and potentially reduces the chances of getting the best offer for the seller. This behavior goes against the principles of fairness and transparency in the real estate industry.

The real estate licensee's action of misrepresenting his relationship with a large real estate firm in order to impress a prospective buyer is considered illegal. Misrepresentation is a violation of the law and can lead to legal consequences. It is important for real estate professionals to maintain honesty and integrity in their dealings to protect the interests of all parties involved.

Janet's offer is legal as long as she discloses the offer of a free microwave oven valued at $300 to all interested parties. This means that she must inform potential buyers about the offer before they make a decision to purchase a property through her. As long as she is transparent about the offer, it is allowed within the legal boundaries of real estate sales.

A broker is allowed to keep broker records electronically, but they are required to provide hardcopies to the BRE (Bureau of Real Estate) upon request. This means that while electronic records are permitted, the broker must be prepared to provide physical copies of the records if requested by the BRE. The cost of providing these hardcopies is the responsibility of the broker.

The District Attorney of the county in which the activity occurred would be responsible for prosecuting Mr. Navarro for the criminal violation of real estate law. The local police may be involved in the investigation, but it is ultimately the District Attorney's role to bring charges and prosecute the case. The Real Estate Commissioner may handle administrative actions or disciplinary measures, but they do not have the authority to prosecute criminal violations. The State Attorney General may be involved in certain cases, but the District Attorney would typically handle the prosecution at the county level.

An unlicensed employee of the broker can make withdrawals from the broker's trust account if they are covered by a fidelity bond for at least the amount of the funds they have access to. This ensures that in case of any mishandling or misappropriation of funds, there is financial protection in place to compensate for any losses. The fidelity bond serves as a safeguard and provides assurance that the employee will handle the funds responsibly and in accordance with the necessary regulations.

After passing the state exam, the applicant has a time limit of one year to apply for the license.

The ad is legal if it also provides the actual interest rate specified in the note and the discount from the outstanding principal balance. This ensures that potential buyers have all the necessary information to make an informed decision about the investment.

The California Real Estate Commissioner has the authority to promulgate rules and regulations to promote the enforcement of the California real estate laws. This means that the commissioner has the power to create and implement rules and regulations that help ensure that the laws governing real estate in California are followed and enforced. This authority allows the commissioner to establish guidelines and procedures that real estate licensees must adhere to, in order to maintain the integrity and professionalism of the industry.

An advance fee contract is a contract that requires the client to pay a fee upfront before any services are performed. In the context of a real estate transaction or listing a business opportunity, the contract must include a description of the services to be performed, the total amount of the advance fee to be charged to the client, and the date the fee is to be paid. However, it is not necessary for the contract to include a guarantee that the sale, lease, or exchange will be completed. This is because the outcome of the transaction cannot be guaranteed and may depend on various factors beyond the control of the party providing the services.

Commingling is when an agent mixes a principal's or client's money with the agent's own money

The correct answer is to file an action in civil court. This is because the seller has breached the contract by not paying the commission, and the real estate agent can seek legal recourse by filing a lawsuit in civil court to recover the unpaid commission. Filing a vendor's lien on the seller's property or filing a complaint with the Real Estate Commissioner may be options as well, but the most appropriate course of action in this scenario is to pursue legal action in civil court.

A licensed real estate broker is authorized to manage real property for the general public. This means they have met the necessary requirements and obtained a license to engage in real estate transactions, including property management. They have the knowledge and expertise to handle the legal and financial aspects of managing real property, ensuring that it is properly maintained, rented, and marketed. This authorization distinguishes them from other options like a certified property manager, an affiliate member of the California Association of Realtors, or any responsible adult who may not have the same level of expertise or legal authority.

Advance fee contracts must be submitted for approval to the real estate commissioner at least ten days before they are used. This allows the commissioner enough time to review the contract and ensure that it complies with all relevant laws and regulations. By requiring submission well in advance, it also helps to prevent any potential issues or disputes that may arise from the use of an unauthorized or non-compliant contract.

A real estate licensee may hold a deposit check from the buyer for up to three business days before it is placed in a trust account, escrow, or returned to the buyer. This allows the licensee some time to process the transaction and ensure that all necessary paperwork and arrangements are in place before the funds are transferred.

A person who has been granted a "power of attorney" is legally authorized to act on behalf of someone else. However, they are not allowed to deed a property to themselves because it would be a conflict of interest and could potentially lead to misuse of their authority. This restriction ensures that the person with power of attorney acts in the best interest of the individual they are representing and avoids any personal gain or self-dealing.

The correct answer is "the name of the broker" because the question asks for the specific information that must be included in the ad. Out of the given options, only the name of the broker is mentioned as a requirement. The other options may or may not be necessary, but the name of the broker is definitely required in the advertisement.

Recovery is limited to $50,000 per transaction, $250,000 maximum per licensee

When a real estate broker fires a real estate salesperson for a violation of the real estate law, the broker is required to notify the Real Estate Commissioner immediately by a certified written statement of facts. This is necessary to inform the regulatory authority about the violation and provide them with the relevant information regarding the termination of the licensee. It ensures transparency and accountability in the industry and allows the Real Estate Commissioner to take appropriate action if needed.

In a loan servicing agreement, the real estate broker is responsible for collecting payments on behalf of the lender. The broker holds these funds in a trust account until they are due to be returned to the lender. According to the given options, the funds may be returned to the lender after 25 days. This indicates that the broker has a specific timeframe within which they must transfer the collected payments to the lender.

A broker is required by law to keep a copy of the deposit receipt for a minimum of three years from the date of closing of the transaction. This means that the broker must retain the deposit receipt starting from the date when the transaction is officially closed. Keeping records from the date of closing ensures that the broker has access to important information regarding the transaction for a specified period as required by law.