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WorksheetsReal Estate Principles Unit 15 multiple choice 2
Total questions: 20
Worksheet time: 10mins
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
By law, a broker must keep a copy of the deposit receipt for at least three years from
The first date on the deposit receipt
The closing of the transactions
The recording of the deed
Whichever of the above is earliest
Davis did not have a real estate license but negotiated a contract with Taylor to buy Taylor 20 20-acre lot for $5000 per acre. Taylor accepted Davis’s offer. During negotiations, Davis himself was offered $20,000 per acre by a third party for the same 20 acres. Davis did not disclose this fact to Taylor and went ahead with the purchase. Davis later sold the 20 acres to a third-party for $20,000 per acre. Taylor subsequently learned that Davis resold the lot. Under the circumstances, an attorney would probably advise that
Taylor may resend the contract if Davis reimburses the third-party for expenses incurred in the transaction
Taylor has no recourse against Davis
Taylor has a cause of action against Davis because Davis had special knowledge of the property that was not disclosed during the transaction
Taylor must show that the third-party had knowledge of the realistic property value
A licensed real estate salesperson regularly accepted a fee for every client they referred to a lender who signed up for a new mortgage loan. When their employing broker discovered this arrangement, the broker took two steps: (1) the broker fired the salesperson. (2) The broker explicitly warned the rest of the office not to engage in such practices, who if anyone is liable for disciplinary action?
No one. The Real Estate Law was not violated
Only the broker can be disciplined
Only person can be disciplined, because the broker had no guilty knowledge of the offense
Both the sales person and broker can be disciplined
If an employee broker, discharges, a sales person for violating a provision of the Real Estate Law, the broker
Must notify the Real Estate Commissioner within three days of the termination of the sales person
Must telephone the Commissioner immediately
Must notify the Commissioner immediately by mailing a certified written statement of the facts
Is under no duty to inform the Commissioner
Broker Kim, who is not a member of any trade organization, has been carrying out a new advertising slogan: “A New Breed of Realtor”. This practice is
Grounds for revocation or suspension of their real estate license
Permissible providing the word, realtor is not capitalized
Acceptable as long as they are not licensed in more than one state
Violation of the Fair Housing Laws
What must a newly licensed sales person include on their business cards?
Eight digit license identification number
Company website
Email address
Special designations
Broker Pat has had a property listed for nine months without success. He believed the property is 10% overpriced and he knows that major structural repairs are required. Pat writes and pays for the following advertisement to run in the local newspaper: “Charming 2-BDRM Victorian. move in right away! Wait till you see the price! Ready for you! Call Pat at 555–1212. What, if anything, is wrong with the advertisement?
There is no asking price: Regulation Z was violated
It was unlawful, because Pat new structural work was required, and the ad did not state this
It was unethical to advertised for overpriced property
The newspaper publisher would be liable for damages, if anyone purchased the property as a result of the advertisement
A complaint that involves simple disputes or minor issues between consumers and licensees is usually handled by
Issuing a citation
Involving the Advocacy Program
Assessing a fine
Holding a formal hearing
A broker who holds a valid listing on a property places, the following classified advertisement in the local newspaper: “FOR SALE: 3 BDRM, 2 BATH home, swimming pool. $129,000. Telephone 555–1234. What needs to be included in the ad?
Email address
Website
Sales associates employed by the broker
Broker or “bro”
After close of escrow, the actual selling price of the property must be disclosed to both buyer and seller within:
5 business days
10 business days
15 days
1 month
