Quiz Unit 1-The Business of Real Estate

Q6. Which of the following does NOT require a real estate license? A. Selling your own property. B. Taking a listing. C. Negotiating a lease. D. Presenting an offer.

A. Selling your own property. It is not necessary to have a real estate license to sell your own property. Pg. 12

Q10. A real estate broker's license may be obtained by any of the following except a A. limited liability company. B. corporation. C. partnership. D. sole proprietorship.

A. limited liability company. There is no provision in the Business and Professions Code to allow a limited liability company to obtain a real estate license. Pages 4-5

Q7. California's Real Estate Law is found in the A. Civil Code. B. Business and Professions Code. C. Financial Code. D. Government Code.

B. Business and Professions Code. California legislation has been compiled into a series of books called codes. The Real Estate Law is Division 4 of the Business and Professions Code. Part 1 covers licensing in Part 2 covers transactions. Pg. 2

Q8. Every real estate broker must be licensed by the Department of A. State. B. Real Estate. C. Corporations. D. Housing.

B. Real Estate. The Department of Real Estate licenses real estate brokers in California. Pg.3

Q1. Under the Real Estate Law, a real estate salesperson works for a broker as an A. agent. B. employee. C. independent contractor. D. associate broker.

B. employee. For purposes of the Real Estate Law, a salesperson is always considered the employee of the broker. page 5

Q3. A real estate salesperson is supervised by A. the buyer or seller. B. the seller. C. the employing broker only. D. any licensed broker.

C. the employing broker only. The employing broker is held accountable for the salesperson's conduct in performing business activities. Pg. 5-6

Q9. When a real estate license expires, licensed activity must cease but the license may be renewed up to A. four years later. B. one year later. C. two years later. D. three years later.

C. two years later. A license that is not renewed before it expires may be renewed at any time up to two years from the expiration date. All licensed activity must cease before the license is is renewed and a late renewal fee will be required. Pg.17

Q2. The applicant for a real estate salesperson's license must complete how many college-level courses before taking the licensing examination? A. Seven B. Five C. One D. Three

D. Three An applicant for real estate salesperson's license must complete three college-level courses before taking the licensing examination. Pg 15

Q5. The Real Estate Law allows a business opportunity to be sold A. by a financial planner. B. with a special endorsement. C. by a PRLS license. D. by a real estate licensee.

D. by a real estate licensee. A real estate licensee may represent others in the purchase or sale of a business. Business brokerage is a growing area of real estate practice. Pg. 9

Q4. Real estate licenses are renewable for a period of A. two years. B. three years. C. one year. D. four years.

D. four years. The full term on renewal of a broker's or salesperson license is four years. Pg. 16