Ethics

Under the supervision of a broker, an unlicensed employee of the broker may:

All of the above.

Under the __________, an employer may not discriminate against a person with a disability who seeks employment based on that person's disability.

Americans with Disabilities Act (ADA)

__________ cannot be a prerequisite to Multiple Listing Service (MLS) access.

Association membership in a real estate trade union

Under the Civil Rights Acts of 1866 and 1870, all citizens of the United States have the right to acquire real estate regardless o

race.

A broker employing agents is required under the California Department of Real Estate's (DRE's) supervisory scheme to _________ the activities of their employees.

reasonably supervise

Failure to provide financing in certain communities is called:

redlining.

An unlicensed person may solicit prospective buyers or sellers for referral to brokers or agents as a(n) __________________ in exchange for a fee.

unlicensed finder

A broker who wrongfully converts trust funds may be liable for:

punitive damages.

Once a brand for a real estate business has been established, it is to be infused into all forms of marketing, including:

Both a. and b.

The __________ is the California government agency which enforces anti-discrimination law.

Both a. and b.

Trust funds include rents and security deposits collected under a property management agreement and:

Both a. and b.

A broker is permitted to keep up to __________ of their own funds in a client's trust account.

$200

Real estate advertising guidelines are issued by:

. the Department of Housing and Urban Development (HUD).

Before a broker may solicit for an advance fee, the paperwork needs to be submitted to the California Department of Real Estate (DRE) for approval at least __________ prior to use.

10 days

__________ are deposits handed to the broker to cover out-of-pocket costs incurred on behalf of the depositor while performing brokerage services.

Advance costs

____________ is the prohibited attempt to influence sales or rentals of real estate by exploiting the prejudices of property owners in a neighborhood.

Blockbusting

Agency in real estate related transactions includes relationships between:

Both a. and b

__________ are authorized to deal with members of the public to offer, and contract for and render brokerage services for compensation.

Brokers

__________ is a real estate marketing campaign undertaken to convert a set of neighborhoods into a vibrant collective of owners, branded to turn to a dedicated agent for real estate services.

FARMing

Regardless of race, all citizens of the United States have the right to purchase, sell, lease, inherit or hold real estate under the federal:

Civil Rights Act.

__________ of trust funds is grounds for suspension or revocation of the broker's license.

Commingling

__________ occurs when a document is modified after it is signed by the one or both of the parties.

Defacing

A broker found guilty of engaging in discriminatory business practices may be disciplined by the:

Department of Real Estate (DRE).

A conflict of interest is disclosed by the broker:

Either a. or b.

The __________ prohibits discrimination in lending.

Equal Credit Opportunity Act

The __________ requires lenders to disclose mortgage origination information to the public when a borrower is seeking a residential mortgage.

Home Mortgage Disclosure Act (HMDA)

___________ occurs when a broker deposits trust funds into an account used to receive and disburse personal or business funds.

Improper commingling

__________ develop between the buyer and seller and result in a refusal of one or the other to act further to close escrow.

Principal disputes

If a client sues an insolvent broker for a trust account violation and receives a money judgment, the client may satisfy the judgment through the:

Real Estate Recovery Account.

Kickbacks were prohibited in 1974 under the:

Real Estate Settlement Procedures Act (RESPA)

________ involves restricting a person from seeking to buy or rent a residential property in a community and redirecting them to other housing.

Steering

By hiring a(n) __________ to assist the seller's agent prepare the Transfer Disclosure Statement (TDS) and better represent the actual condition of the property, the risk of error is reduced.

home inspector

Known conditions on one-to-four unit residential property are disclosed using a(n):

Transfer Disclosure Statement (TDS).

Prudent brokers maintain ________ to keep claims from clients and others under control.

a risk reduction program

A(n) __________ is evidence of the due diligence efforts rendered on behalf of the client.

activity sheet

Without a(n) ___________ to verify the broker's agents are conducting themselves as intended, the broker is exposed to a(n) __________.

administrative structure; risk of loss

Broker fees deposited with the broker before they are earned are called:

advance fees.

The __________ states the existence of each broker's fiduciary agency duty owed to the various parties to the transaction.

agency confirmation provision

While most supervisory responsibility may be assigned to an office manager, the _______ the broker owes to a client in a transaction may not be delegated to others.

agency duty

A seller and their agent are required to disclose to a prospective buyer __________ which adversely affect the value of a property.

all known and observable property conditions

A broker is relieved of the responsibility of verifying representations regarding property conditions received from others and passed to buyers:

as long as the source of information is disclosed to the buyer.

A(n) __________ is used to document an alternative response to an offer consisting of different terms from those of the offer being rejected.

b. counteroffer

The Unruh Civil Rights Act specifically prohibits __________ from discriminating.

business establishments

One method a broker uses to implement the requirement for supervision of employed agents is to develop a(n

business model.

__________ are authorized to deal with members of the public to offer, contract for and render brokerage services for compensation.

c. Brokers

) Fees prohibited by the Real Estate Settlement Procedures Act (RESPA):

cannot be legalized by disclosure or consent of the client.

The seller's agent owes no duty to prospective buyers to:

comment on the extent of any adverse facts disclosed.

When a dual agency situation exists, the broker may not pass on:

confidential pricing information.

A(n) __________ arises when a broker has a competing professional or personal bias which hinders their ability to fulfill the fiduciary duties they have undertaken on behalf of their client.

conflict of interest

he employing broker's responsibility to the public includes:

continuous policing of agent compliance with the duties owed to buyers and sellers.

Prior to the end of the third business day after the broker receives negotiable trust funds, the broker must __________ the funds.

deposit

Agents fulfill their agency duty owed under an exclusive listing by making a concerted and continuing effort to locate a buyer, an effort called:

due diligence.

A broker who fails to place advance cost deposits in their trust account is presumed guilty of:

embezzlement.

A(n) __________ transaction takes place when the owner occupant of a one-to-four unit residential property in foreclosure conveys the property to a buyer who acquires it for investment purposes

equity purchase (EP)

As a buffer against liability, a broker can purchase negligence insurance called:

errors and omissions (E & O) insurance.

) As a buffer against liability, a broker can purchase negligence insurance, called:

errors and omissions (E&O) insurance.

The __________ of a mortgage must be disclosed to the borrower by a broker soliciting or arranging a mortgage.

essential terms

Real estate brokers and corporations often use ________ when conducting activities requiring a real estate license.

fictitious business names

In addition to a general duty owed to the other party in a transaction, a licensee owes a(n) __________ to act with the utmost good faith and diligence for the benefit of their principal.

fiduciary duty

A seller-in-foreclosure has a statutory _________ to cancel an equity purchase (EP) agreement.

five business days

When the opinion is coupled with advice expressing no further need for the buyer or others to investigate and confirm the prediction, the opinion is elevated to the level of a:

guarantee.

On an inquiry into deaths that occurred on the property by a buyer, the buyer's agent has an affirmative duty to

investigate the deaths or recommend the buyer investigate deaths on the property.

A(n) __________ is a fee paid to an agent who renders no service in exchange for a referral fee beyond the referral itself when the agent is already providing another service for a fee.

kickback

A property defect which, if known to a buyer, would likely affect the price they are willing to pay, is classified as a(n):

material fact.

The Agency Law Disclosure must be presented to all parties when listing, selling, buying or leasing for a term greater than one year property in a targeted transaction, such as a property containing:

one-to-four residential units.

A(n) __________ is a statement made by a broker concerning a possible condition which has not yet occurred based on readily available facts.

opinion

A(n) __________ occurs when the broker cannot determine the owner of excess funds in a trust account.

overage

On entering into a listing employment, a(n) __________ is set up to house information and document all the activity which arises within the broker's office due to the existence of the employment.

physical client file

An agent is an individual who represents the __________.

principal.

Opinions voiced by agents about an income property's future performance based on the income and expenses actually incurred by the owner during the preceding 12-month period are:

projections

Existence of a dual agency needs to be disclosed to each client:

promptly at the moment the conflict arises.

To formally end the agency relationship with a client, a(n) __________ is prepared and entered into.

release and cancellation of employment agreement

A dual agent is a broker who:

represents the buyer and seller.

Discrimination against an individual is prohibited by the Federal Fair Housing Act (FFHA) in the sale or rental of a(n):

residential unit.

A __________ is an employee other than the broker who has written authorization to disburse funds from a trust account.

signer

A landlord's pet restriction policy cannot apply to:

specially trained guide dogs.

A broker who employs an office manager:

still retains the overall supervisorial responsibility

An individual who has been delegated agency duties by an agent of the client, not the client directly, is known as a(n):

subagent.

A broker cannot act for more than one party in a transaction without disclosing their dual agency and obtaining:

the consent of both clients.

An agent who fails to provide the Agency Law Disclosure risks:

the loss of their fee.

An owner can recover __________ from the Recovery Account.

their actual and direct losses on the transaction

Agents are prohibited from accepting a fee or other benefit from any person other than:

their employing broker.

Brokers are required to notify the California Department of Real Estate (DRE) when:

they fire a salesperson for violating real estate law.

) A seller's agent has no affirmative duty to voluntarily disclose information to a potential buyer regarding a prior occupant whose death occurred on the real estate more than __________ prior to the purchase offer.

three years

All records of an agent's activities on behalf of a client during the listing period are retained by the agent's broker for:

three years.

) A broker deposits client funds they receive into a:

trust account.

Funds belonging to others which a broker and their agents handle when acting as agents in a transaction are known as:

trust funds.

A trust account opened for the deposit of cash and valuable items payable to the broker will be in the name of the broker as the:

trustee.

An equity purchase (EP) investor's use of an element of oppression or surprise to exact an unreasonably low purchase price is known as a(n):

unconscionable advantage.

A(n) __________ is necessary for a broker to have an enforceable fee agreement.

written employment agreement