Real Estate Principles Unit 15 multiple choice 2

Broker Larwin held an open listing to sell a house that provided for Larwin to receive a 6% commission. Larwin orally agreed to split the commission with broker Porter if Porter found the buyer. Porter did so, but at close of escrow, Larwin kept the entire commission. Under the circumstances, Porter.

• Has recourse by means of a civil suit

• Has recourse under the Real Estate Law

• Has recourse under the Statute of Frauds

• Does not have a legal claim for a commission, because Larwin had an open listing

DRE regards a sales person’s relationship with a broker as a(n)

• Employee

• Independent contractor

• General partner

• Limited partner

Someone places an advertisement for real estate services without listing a real estate license number. The person does not have a real estate license. Such an individual could be liable for prosecution by the

• Bureau of Real Estate

• Local district attorney

• Office of the Attorney General

• Local law-enforcement agencies

Which of the following must have a current and valid California real estate license?

• A mortgage loan broker

• A resident manager of an apartment building

• A trustee conducting a trust deed foreclosure sale

• A short term vacation (vacation) rental agent

A broker must have a written contract with which of the following employees?

• Secretaries

• Janitorial service

• Brokers acting as sales sales people who do not have their own office

• All of the above

If a real estate licensee is listed as an obligor by the California Department of Child Support Services. Can they renew their real estate license?

• No, DRE revokes the license of anyone who owes child support

• Yes, DRE is not concerned with the obligor list

• No, whenever every person is listed as an obligor for delinquent child support, all licenses, including the drivers license, are suspended

• Yes, the licensee may be issued a 150 day temporary license

A licensed salesperson gave notice of leaving the real estate brokerage office to the salesperson’s employing broker. What if anything must the broker do with the salesperson’s license?

• The broker leaves the license, unmarked and gives it to the next broker who employees the sales person

• The broker returns the license to the sales person and notifies the Real Estate Commissioner

• The broker marks the license inactivated, returns it to the sales person and notifies the Real Estate Commissioner

• The broker marked the license canceled and mailed it to the Real Estate Commissioner

In the course of their 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

• Been employed by that same broker for at least two years full-time

• 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

• At least two years full-time experiences a real estate sales person within the past five years

• At least two years full-time experience as a real estate sales person within the past five years and has completed at least 18 units of college level courses related to Real Estate

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

• May suspend the brokers license, when the Commissioner receives a copy of the final judgment of the court

• Must wait to take action until the buyer files, a formal complaint with the Commissioner

• May suspend the brokers license, until a formal hearing is convened

• May hold the hearing, but may not suspend or revoke the license, until the hearing is concluded

A broker assured a client that a loan could be found at 5% even though there were no such loans available. When it came time to sign the agreement, the rate offered was 7%. The buyer felt he had to accept the loan because he had already given notice at his apartment complex

• The broker acted unethically

• The broker acted illegally

• The broker acted legally

• Doctrine of caveat emptor applies