California: Real Estate Principles - Chapter 1

Which regulation or section(s) apply to the use of the Internet for advertising in California? 1. Commission's Regulation 2770 2. Commission's Regulation 007 3. Business and Professions Code, Sections 10235.5 and 10140.6 4. Both A and B

1. Commission's Regulation 2770

Gerard, a Nevada real estate licensee, has been advertising his services online to California citizens. He sells resort property outside Las Vegas and believes the California market could be very lucrative. Is it permissible for Gerard to advertise in this manner? Why or why not? 1. It is not permissible for Gerard to solicit California residents. He must hold a California real estate license in addition to his Nevada license. 2. It is not permissible for Gerard to solicit California residents. State-to-state real estate transactions must be approved by the DRE. 3. Yes, it is permissible for Gerard to advertise his services to California residents. He is only advertising his services, not offering any advice. Therefore a California license is not needed. 4. None of the above

1. It is not permissible for Gerard to solicit California residents. He must hold a California real estate license in addition to his Nevada license.

As an examinee, or a new licensee, where is the best, most accurate source for current California Department of Real Estate information? 1. Your Educator 2. Your Broker 3. The DRE website 4. All of the Above

3. The DRE website

Is it permissible to advertise real estate associated services or products in California without a California real estate license? 1. No. All real estate related services or products must only be advertised by a licensed California real estate salesperson. 2. Yes, the Internet is a free commerce site. Any person may advertise whatever services or products they choose, as long as they are legal. 3. Yes, as long as the products or services do not include any actions for which a California real estate license is required. 4. None of the above.

3. Yes, as long as the products or services do not include any actions for which a California real estate license is required.

California licensing laws define which of the following: 1. Real Estate Brokerage 2. Handling Trust Funds 3. Managing Escrow Accounts 4. All of the Above

4. All of the Above

An examinee or licensee may perform what transactions on the DRE website? 1. Check test results 2. Renew salesperson and broker license 3. Obtain the current testing schedule 4. All of the above

4. All of the above

Upon completion of this course, you should understand: 1. The facts regarding disclosure of commissions earned to all parties in a transaction. 2. Real estate taxes and special assessments. 3. Encumbrances, liens, easements and encroachments. 4. All of the above.

4. All of the above.

What is Commission's Regulation 2770?

Anyone who advertises about services over the Internet is NOT to be considered a real estate broker in California if...

Which of the following will not be covered in this course? 1. How to advertise on the Internet in other states 2. The mortgage market in California 3. Environmental issues and regulations in California 4. Voluntary and involuntary alienation

How to advertise on the Internet in other states

What circumstances make the Commissions Regulation 2770 inapplicable?

It does not apply if: -The person who is publishing or otherwise circulating the information is exempt from license requirements as set forth in the Business and Professions Code, Sections 10133 or 10133.1; -The services do not include any actions for which a license is required; or -Before there is any direct communication with a specific customer, the business person already has implemented policies and procedures in place for such communication, keeping in mind that the person replying to the communication must not violate the law by acting in the capacity of a real estate licensee; AND -All advertising and information that is made by a California real estate broker MUST STATE SO CLEARLY. Under the B&P Sections 10235.5 and 10140.6, licensees who advertise on the Internet are required by law to indicate their license status.

Who is in charge of the DRE?

It is headed by the Real Estate Commissioner who administers the real estate license laws, handles advertising, funds, clients, and customers.

August 4, 1943 - authority of DRE was organized into the two Parts of Division 4 of the Business and Professions Code: What numbers are the two parts and their descriptions?

Part 1, Sections 10000 to 10580 - Real Estate Law; Part 2, Sections 11000 to 11200 - Subdivided Lands Law note: These laws are NOT the same in their purpose or operation.

Which portion of the California Business and Professions Code consists of the Subdivided Lands Law? 1. Part 1, Sections 10000 to 10580 of the Business and Professions Code 2. Part 2, Sections 11000 to 11200 of the Business and Professions Code 3. California Civil Code, Section 2985 of the Business and Professions Code 4. None of the Above

Part 2, Sections 11000 to 11200 of the Business and Professions Code

What is the DRE?

The California Department of Real Estate

Penny, a California licensee, has been advertising on the Internet. She specializes in the sale of upscale homes in the Hollywood Hills area. Penny has been violating the Business and Professions Code, Sections 10235.5 and 10140.6. What has she done? 1. Penny should not be soliciting her services to the residents of California 2. Penny failed to indicate in the advertisement her license status 3. The services she advertises do not include any actions for which a license is required 4. None of the above

The services she advertises do not include any actions for which a license is required. Note: All advertising and information that is made by a California real estate broker must state so clearly. Under the B&P Sections 10235.5 and 10140.6, licensees who advertise on the Internet are required by law to indicate their license status.

What are the aspects apply to the Commission's Regulation 2770?

They are NOT considered if the advertisement or other information involves a service, BUT IS: -NOT directed to any particular person or customer located within California; -LIMITED to general information about the services offered to customers or the public in general; -AND includes the following words: "The services referred to herein are not available to persons located within the State of California." -If the advertisement or information does not involve a service provided in connection with activity for which a real estate license is required: OR -If the advertisement or information is not being published, circulated, or transmitted on behalf of another person(s).

Misleading advertising can result in?

criminal penalties.

Licensees who advertise on the Internet are required by law to?

indicate their license status.

Anyone who is not a California licensed broker may not?

legally solicit California residents.