California License Law

What are the 4 steps in the Department of Real Estate ( DRE) complaint process for?

1. Complaint filed with DRE 2. Investigation ( if DRE has jurisdiction and complaint is a real estate law violation) 3. informal hearing 4. formal hearing

What are the 3 main types of disciplinary actions for Real estate law violations

1. License revocation 2. Suspension 3. Restriction

what are the 4 most common real estate law violations?`

1. Trust fund violations ( shortages, commingling, record keeping) 2. Failure of brokers to properly supervise 3. unlicensed individuals 4. misrepresentation

How many hours of continuing education Are required to renew a California Real estate license?

45 hours Are required every four years in order to renew your California real estate license.

Beneficiary

A beneficiary or is one who benefits from a trust

What is a buyers agent

A buyers agent represents the buyer

what is a fee on condition estate?

A fee on condition estate is one in which the property is owned on the condition that something not occur such. as development.

What is a finder?

A finder in a real. estate transaction merely introduces a buyer and a seller they. do not represent. either party

What is considered a fixture?

A fixture is anything permanently attached to. the land or to permanent structures on the land and are part of real property, and are included with the sale of real property unless the parties negotiated differently.

What is a general agent?

A general agent has the responsibility to handle all dealings in a given area for client such as property manager

Homestead estate

A homestead estate is one in which long-term ownership by the same family carries with it certain ownership protection

Land trust

A land trust is formed specifically to hold real estate. Real property is the only asset within the. trust. under a land trust the. owner directs a corporate fiduciary to hold title to the real estate and provides instructions for the management, control, and disposition upon the owner's death

What is a life estate?

A life estate is property that is possessed for someone's lifetime.

A periodic estate

A periodic estate is a lease that can be removed at the end of it.

What is a qualified fee estate?

A qualified fee estate includes. a stipulation on ownership for instance, a person may be allowed to own a. property as. long as they remain unmarried.

What is a seller's. agent

A seller's agent represents the seller. also known as the listing agent

What is a. single agent?

A single agent represents only one party in the. transaction

What is. a special agent?

A special agent has limited authority to act on the clients behalf. Example real estate agent representing a buyer or seller in a transaction

What is a sub. agent?

A sub agent works for the agent representing the seller and also for the seller

Trustee

A trustee is the person carrying out the trustors wishes

Al is 70 years old and has held his real estate broker license in good standing for 30 consecutive years. His license is up for renewal soon. How many continuing education hours must he complete? A. 0 hours B. 8 hours C. 30 hours D. 45 hours

A. 0 hours Licensees who are at least 70 years old and who are licensed in good standing for at least 30 consecutive years are exempt from the continuing education requirements. They must still submit a renewal application and pay a fee, but they are exempt from CE

How old must an individual be to qualify for a real estate salesperson license in California? A. 18 B. 19 C. 20 D. 21

A. 18 Individuals must be at least 18 years old to qualify for a real estate salesperson license in California. There are also education and examination qualifications to obtain a license.

Bradley has a real estate salesperson's license. He's done some traveling recently and missed the deadline to renew his license. It's now 30 days past the expiration date. What must he do to renew his license? A. Complete the continuing education requirements and submit a renewal and late fee. B. File an appeal with the Real estate Commissioner. C. Retake the state licensing exam. D. Re-qualify for a real estate license by completing pre-licensing courses and passing the state licensing exam.

A. Complete the continuing education requirements and submit a renewal and late fee. Licenses expired less than two years follow the traditional renewal process, but Bradley will pay a late fee in addition to the renewal fee.

How many members on the Real Estate Advisory Commission are unlicensed consumers? A. Four B. Six C. Eight D. Ten

A. Four The Real Estate Advisory Commission is made up of 10 members. Six are real estate brokers licensed in California. Four are unlicensed consumers.

How long is an MLO endorsement valid? A. One year B. Two years C. Three years D. Four years

A. One year

Which federal act requires states to pass laws relating to mortgage loan originator (MLO) endorsements? A. SAFE Act B. Consumer Financial Responsibility Act C. Regulation Z D. Senate Bill 36

A. SAFE Act The federal Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) seeks to protect consumers and reduce fraud related to mortgage loans by requiring states to pass laws related to mortgage loan originators (MLO).

Which of these does a sponsoring broker owe their associate brokers and salespersons? A. Supervision of activities B. Free desk and office support C. Passing along leads D. Paying for marketing materials

A. Supervision of activities It's the sponsoring broker's duty to properly each salesperson and associate broker under their broker's license.

What is agency disclosure?

Agency disclosure is a law enacted to inform buyers and sellers about who represented who in the transaction and about their representation options

What is agency?

Agency is the fiduciary relationship between a principal and an agent.

What are air rights?

Air rights are the right to. use the area above of property.

What is an act of waste?

An act of waste is allowing the property's. value. to decrease or not paying property taxes so the property is vulnerable to foreclosure.

Entire estate

An entire estate may be nonprobate

Estate at. sufferance

An estate at sufferance is one in which the tenant illegally remains. after. the lease terminates

Estate for years

An estate for years is an estate for a period of time. An example would be 12 months

Estate at will

An estate that. will is a lease. for an unspecified period of time, with the stipulation that either party may terminate the lease by giving notice to the other

What is the California Department of Real Estate responsible for? A. Valuing real property in California B. Regulating the real estate industry C Advertising listings in California

B. Regulating the real estate industry The California Department of Real Estate regulates real estate in California.

What is the difference between real estate law and Regulations of the Real Estate Commissioner? A. Real estate licensees only need to follow the regulations, not the law. B. Regulations are used to enforce and clarify the law. Real estate licensees must abide by both. C. The law governs real estate licensees, whereas the regulations govern California DRE activities. D. Real estate licensees only need to follow the law, not the regulations.

B. Regulations are used to enforce and clarify the law. Real estate licensees must abide by both. Real estate law is clarified through Regulations of the Real Estate Commissioner. These regulations help with the understanding and enforcement of law. Licensees must follow these regulations, as they have the same force and effect as the law.

How many members on the Real Estate Advisory Commission are real estate brokers licensed in California? A. Four B. Six C. Eight D. Ten

B. Six The Real Estate Advisory Commission is made up of 10 members. Six are real estate brokers licensed in California. Four are unlicensed consumers.

Donald has a new listing for the house next door to his. He's never had problems with these neighbors and hopes to keep it this way by making sure the "right" people move in. He doesn't show the property to any prospective buyers with children. These actions soon bring complaints of a fair housing violation. What effect does this have on Robert (Donald's sponsoring broker)? A. Neither Robert nor Donald will be affected by the fair housing violation. B. Only Robert is liable for Donald's actions, and he alone will be sanctioned as a result of Donald's fair housing violation. C. Robert is liable for Donald's actions and could be sanctioned along with Donald as a result of Donald's fair housing violation D. Robert is not liable for Donald's actions and is not affected by the fair housing violation.

C. Robert is liable for Donald's actions and could be sanctioned along with Donald as a result of Donald's fair housing violation. If a licensee violates license law, commits a fair housing violation, or violates a law in connection with real estate activities, in addition to any sanctions imposed on the licensee, the sponsoring broker may be sanctioned.

community property

Community propertyFirst dates were community. property exists, anything purchased after the marriage becomes a community property of both spouses, unless otherwise agreed to in writing

Cooperatives

Cooperatives do not bestowed title to any land or building instead, members own shares of the organization. The corporation itself holds the title

Corporation

Corporations are intangible existing only in law. They are taxed or at rates. separate from individual income taxes, and can receive, hold and transfer. title to real property, and hold a mortgage to secure a debt owed to the corporation.

Years ago, Rachel held a real estate license. She took some time off to travel and start a family. Now she's ready to get back in the saddle. Her license expired three years ago. What must she do to renew her license and start practicing real estate again? A. Complete the continuing education requirements and submit a renewal and late fee. B. File an appeal with the Real Estate Commissioner. C. Retake the state licensing exam. D. Requalify for a real estate license by completing pre-licensing courses and passing the state licensing exam.

D. Requalify for a real estate license by completing pre-licensing courses and passing the state licensing exam. Individuals holding licenses expired two years or longer have to start at the beginning. Rachel must requalify for licensure by completing the education requirements and passing the state exam again.

Dower

Dower is the term for property held by a widow. curtesy is the term for the property held by a widower

What is a dual agent?

Dual agent situations occur when one agent or agents from the. same brokerage represent both the buyer and seller in the transaction

What are economic characteristics of land?

Economic characteristics of land include its scarcity, improvements, permanence of investment, and location.

Estate in severality

Estate in severality means one person. owns the property

California real estate licenses Must be Renewed Every_______ years.

Every four years

What is express agency?

Express agency as an agency relationship that is understood and agreed to by both parties.

What is fee absolute?

Fee Absolute is the most complete form of ownership and bundle of rights in real property.

What is fee simple?

Fee simple is an inheritable freehold estate.

What is a freehold estate?

Freehold estates are ownership they involve ownership for an undetermined length of time.

General partners

General partners receive their return on investment before other partners

What is implied agency?

Implied agency as an agency relationship that exists because you behave in a way that leads the consumer to believe you to be there agent.

What is considered improvements to real estate?

Improvements are artificial attachments to land that include such things as fencing, buildings, and walkways.

Joint tenancy

Joint tenancy requires four unities of ownership time, title, interest, and position joint tenancy does not have inheritance rights. When one joint tenant dies, the other joint tenants received a benefit of that share of the estate

What is the definition of land?

Land is defined as the Earth's surface extending downward to the center of the earth and upward to infinity, including permanently attached. natural objects.

Limited liability companies

Limited liability companies shield personal assets from liability, provide management flexibility and may not required to file a separate tax return.

Limited partners

Limited partners may contribute money or assets to a. partnership, but they don't participate in the management of the partnership.

pur autre vie

Means a life estate for the duration of the life of a third party. With this type of estate, the inheritance of the life tenants heirs ends upon the death of the third party

What are mineral rights?

Mineral rights imply the right. to drill or dig for minerals on one's. property.

What are mortgage rights?

Mortgage rights give the property owners the right to encumber the property with a mortgage.

What is annexation?

Occurs when personal property is attached to real property, making it a. fixture.

What is personal property?

Personal property is everything that is not real property.

What are physical characteristics of land?

Physical characteristics of land include its Immobility, Non Homogeneity( no two lands are exactly the same), and indestructibility.

Quasi-community

Quasi-community property is property acquired by either spouse while residing elsewhere if the couple later relocates. to a community property state and legally dissolves the union, that states court may treat it like community property

What is included in real estate?

Real estate includes land, plus all. things permanently attached to it naturally or. artificially.

What is. real property?

Real property includes real estate, plus the interests, benefits, and rights included with real estate ownership.

What is. included in of real property ownership?

Real property ownership includes the rights of. enjoyment, disposition, possession, control, and exclusion, along with other rights.

Reversionary interest

Reversionary interest is one that is held by an owner who gives temporary ownership to another. On the death of the tenant, the interest in the property reverts back to the owner

Sole proprietorship

Sole proprietorship is a business model often consisting of one person, such as an independent contractor

Syndicates

Syndicates are organizations with many participants with the common purpose of making a profit from a real estate investment

Tenancy by the entirety

Tenancy by. the entirety is a type of estate where a married couple owns a property equal and undivided. They each own the entire estate

Tenancy in common

Tenancy in common is coownership with inheritance rights. Owners may set their interest without the consent of co-owners. Each has an undivided interest in the entire property

Tenants-in-common

Tenants-in-common is when spouses in a tenancy by the entirety divorce. then they automatically become tenants in common

Who is the agent?

The agent is a person acts on behalf of another at that person's request.

Who is. a client?

The client is someone you. work FORMike is someone you like the agent duties. They are. owed all agency duties

Who is the client?

The client is the principal in a real estate transaction, represented by the agent.

Who is a customer?

The customer is someone you work with. A customer is someone who does not have agency representation

What are the different types of agents?

The different types of agents. are special agent, general agent, limited agent, universal agent, and finder.

Who is the fiduciary?

The fiduciary is a person placed in position of trust and owes loyalty to another.

What are the five. basic tests to determine if an item is a fixture or personal property?

The five tests are known as Maria: method of annexation, adaptability for use, relationship of the parties, intention in placing, and agreement of the parties.

What is a leasehold estate?

The leasehold estates do not involve ownership, simply possession for a specified period of time.

Who is the principal?

The principal is a represented party to a transaction.

Who is a principal?

The principle is the represented party to a transaction. A party is the generic term for anyone in the transaction that's represented. The client is the one you represent and the customer is the other guyA principal is a party to the transaction who is represented. also known as the client

Remainderman

The remaindermen is someone who receives ownership after the death of a life tenant.

What are the three. parties needed to create a trust?

The three parties are the trust maker, the trustor, and the trustee.

Trustor

The trustor is a person conveying title to a trustee

What is a universal agent?

The universal agent has broad authority to act. for the principal. An example would be a person with a broad power of attorney or who has care over a minor.

What is the universal commercial code?

The universal commercial code is a set of business laws created in the 1950s that regulate financial. contracts dealing. with personal property.

When is a real estate license required?

Whenever you are performing real estate activities for others and for compensation.

Who is a consumer?

a consumer or someone who purchases a. product or service

Living trust

a legal arrangement that can serve as an alternative to a will. Property placed in a trust can avoid. probate

What is another word for personal property?

chattel

Testamentary trust

is a trust created by a will. It only comes into effect when the person creating the trust is deceased after their passing. property placed in a testamentary trust does not avoid probate

Joint venture

joint venture is one in which two or more people come together for a temporary purpose such as buying real estate, improving it and selling it for profit.

What are some common real estate activities

selling, buying, leasing, exchanging, listing properties ( or offering to do so) Negotiating a sale, purchase or exchange of real property Soliciting buyers, sellers, tenants. landlords and property listings

What are the eight ways to terminate agency?

the eight ways to terminate agency are, if the. goals of agency agreement have been met, if specified terms in the agreement have been met, by mutual agreement, the client or agent becomes incapacitated. or dies, property is destroyed. and unmarketable, client or broker files for bankruptcy, client revokes the agreement, agent renounces. the agreement. It's

What is severance?

the process by which an item of real property becomes personal property

What happens when did. a land trust term expires?

when a land trust term expires, the trustee must either extend the term or sell the real estate and provide the proceeds to the beneficiary