Unit 1 & 2

Under the Personal Responsibility and Work Opportunity Act ("the Act"), which was passed by the United States Congress in ___, states are required to eliminate a broad array of public benefits for___.

1996, illegal immigrants.

The BRE does not accept an application for license renewal earlier than ___ days prior to the expiration of the license.

60

The Regulations of the Real Estate Commissioner have the force and effect of law and, once issued, become a part of the _______

California Administrative Code

Proof of legal presence," or a "proof of legal presence document," is evidence showing that an individual actually has a LEGAL reason to be in the United States. ◦ The requirement applies to applicants for both original and renewal licenses.

The law does NOT state that only U.S.-born individuals have the right to be licensed in the United States , but only that each person who wants to be licensed must have legal proof that he/she has the right to be here and to be licensed as a real estate licensee. ◦ This proof need only be submitted one time, and should be submitted with a Public Benefits Form, or RE205. ◦ California law requires that every applicant for licensure as a real estate salesperson, broker, officer, mineral, oil and gas broker, or prepaid rental listing service license, submit proof that the applicant has legal presence in the United States before an original or renewal license can be issued.

Those license applicants or licensees who are out of state residents and wish to act as real estate licensees in the State of California must file a...

a signed and notarized Consent To Service of Process (RE 234)

Any false or misleading advertising - on the Internet or via any other medium - can result in _______ penalties.

administrative, civil, and/or criminal

A corporation may be licensed as a ____, provided at least one officer of the corporation is a duly qualified real estate broker willing to act as the corporation's responsible designated _____.

real estate broker, broker-officer

The Subdivided Lands Act, which is administered by __.

the Commission

A person must be LICENSED if he for compensation and for another person negotiates to undertake any of the following actions:

◦ Sells or offers to sell, buys or offers to buy, and solicits prospective sellers or purchasers of real estate. ◦ Solicits or obtains listings of real estate. ◦ Negotiates the purchase, sale, or exchange of real property or a business opportunity. ◦ Assists or offers to assist in filing an application for the purchase or lease of property owned by the state or federal government. ◦ Negotiates loans, collects payments, or performs services for borrowers or lenders or note owners.

1 The California Real Estate LAW, which regulates licensing and subdivisions in California, can be found in the ___. 3 The Subdivided Lands Act, which is administered by the Commission.

"Business and Professions Code, California Administrative Code

Applicants who reside in California will pay a ___ fingerprint processing fee directly to the Live Scan fingerprint service provider. Out of state should submit the fee to the BRE with their application and license fee.

$49 same price for out of state.

fee for salesperson (re-exam same) rescheduled?

$60, $15, second time $30

The BRE will assess a ___ fee when the name of a license applicant or licensee appears on a child support obligor list or supplemental list.

$95

fee for Broker (re-exam same) rescheduled?

$95, $20, second time $30

According to the Commission's Regulation 2770, anyone who advertises or otherwise disseminates information about services over the Internet will NOT be considered to be in any manner acting in the capacity of, or advertising as, a real estate broker in California, AS LONG AS any ONE of these conditions applies...

(1) 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."

According to the Commission's Regulation 2770, anyone who advertises or otherwise disseminates information about services over the Internet will NOT be considered to be in any manner acting in the capacity of, or advertising as, a real estate broker in California, AS LONG AS any ONE of these conditions applies...

(2) If the advertisement or information does not involve a service provided in connection with activity for which a real estate license is required: OR (3) If the advertisement or information is not being published, circulated, or transmitted on behalf of another person(s).

After that service provider takes the fingerprints, the applicant must submit the following to the BRE:

1 A copy of the RE 237 with Part 4 completed; 2 The applicant's completed license application 3 A check for the appropriate fee, which is currently $51.00, made payable to the DOJ. Applicants who reside outside California may continue to submit fingerprints in ink using the California license applicant Fingerprint Card (BID 7)

Once an applicant has successfully passed the salesperson examination, he may apply for a four-year original license by submitting the following items within one year of passing the exam:

1 An application for salesperson license (RE 202) 2 The appropriate license fee; 3 One completed classifiable fingerprint card 4 The fingerprint processing fee 5 Transcripts showing completion of all of the required courses.

Salesperson License Requirements

1 Be at least 18 years old (no age to take exam.) 2 qualify for and pass a written examination. Those who pass the examination are provided a license application which must be submitted to and approved by the BRE. 3 Provide Proof of Legal Presence in the US 4 Honesty - Conviction of a crime may result in the denial of a license. Failure to disclose any criminal violation or disciplinary action may also result in denial of a license.

For a broker's license name 5 MANDATORY COURSES

1 Real Estate Practice 2 Legal Aspects of Real Estate 3 Real Estate Financing 4 Real Estate Appraisal 5 Accounting OR Real Estate Economics

The following regulations apply to ALL applications for all examinations and for all licenses issued by the Commissioner.

1 The applications must be made on forms furnished by the BRE. 2 An application for an examination or a license may be presented at any of BRE's offices or (preferably) mailed to Sacramento. 3 The license application must be submitted along with the fee & One fully completed and classifiable fingerprint card. 4. The fingerprint-processing fee.

It is NOT required for a person who advertises or disseminates information about providing a service to have a real estate license if any of the following conditions apply:

1 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; 2 The services do not include any actions for which a license is required; or

The designated broker-officer of a corporation may be replaced by another qualified broker for the balance of the license period by submitting:

1. A completed Corporation License Application (RE 201) & Corporation Background Statement (RE 212) 2. A copy of the signed resignation of the officer leaving the firm, or a copy of the Resolution of the Board of Directors with the corporate seal, or a signed statement giving the date of death of the currently licensed designated broker-officer.

These regulations apply to those licensees operating under the prepaid rental listing service license:

1. An individual may obtain the 2-year license necessary to conduct PRLS activities. no exam. 2. PRLS activities do NOT include negotiation of lease or rental contracts, NOR do they allow the licensee to perform ANY other real estate activities. 3. A real estate broker can collect a prepaid fee without holding this type of license IF his PRLS activities are conducted at the broker's regular place of business.

The update survey class must be an 8-hour course that covers the following topics:

1. Ethics, professional conduct, and legal aspects 2. Agency relationships and duties in a brokerage 3. Trust fund accounting and handling; 4. Fair housing; and 5. Risk management (again, this topic has been added, reflecting the addition of a risk management course to the mandatory CE courses).

An application for a license bearing a fictitious business name may be denied if the name:

1. Is misleading / would constitute false advertising. 2 Implies a partnership or corporation when a partnership or corporation does not exist. 3 Includes the name of a real estate salesperson. 4 Constitutes a violation of the provisions of Sections 17910, 17910.5, or 17917 of the California Code. 5 Is the name formerly used by a licensee whose license has been revoked? 6 Contains the word or designation "bank," "banker," "trust," "trustee," "trust company," "insurance," or "assurance," "escrow," or "savings."

The Commissioner has the authority to restrict licenses by any of the following factors:

1. Term (one month, three months, etc.); 2. Employment by a particular broker (for a salesperson); 3. Limitation to a certain area or type of activity; 4. Requiring detailed reports of each transaction; 5. Requiring the filing of a surety bond; or 6. Other conditions or combinations of conditions.

EXEMPT from the licensing requirements in California. These parties DO NOT need to be licensed as real estate salespersons or brokers

1. The employees of banks or other lending institutions; 2. The lenders who make federally-insured or federally-guaranteed loans; 3. Licensed personal property brokers; 4. Cemetery authorities; 5. Certain agricultural associations; 6. Certain collectors of payments for lenders or on notes for owners in connection with loans secured directly or collaterally by liens on real property; 7. Some clerical help 8, Resident managers of apartment buildings and complexes or their employees; 9. Short-term (vacation) rental agents; 10. Employees of certain lending institutions; 11. Employees of real estate brokers for specific, limited functions

the following UNLICENSED parties may solicit for the sale of real property IF the party is:

1. The property owner. 2. A person holding the power of attorney FOR the owner. 3. An attorney at law acting in the capacity of an attorney ON BEHALF OF the owner. 4. A receiver or other court appointee. 5. A trustee who is selling the property under a deed of trust.

A Corporation Background Statement (RE 212) must be submitted by the designated officer of the original corporation license applicant for himself , as well as for each director, the chief executive officer, the president, first-level vice presidents, secretary, chief financial officer, subordinate officers with responsibility for forming policy of the corporation, and for each natural person owning or controlling more than ___ of the corporation's shares

10%

The salesperson can be compensated for work as an agent only by the salesperson's employing broker - not by any other broker, other salesperson, client, or other person, according to Sections___ and____ of the Code.

10132, 10137

The important elements of these changes are as follows: 1. Applicants for broker OR salesperson examinations OR licenses may apply and pay for the real estate broker or salesperson examination and license at the same time by submitting one application form and fee.

2. For either a broker or a salesperson, the license application WILL NOT be processed until the applicant has passed the examination. 3. If a broker or salesperson applicant changes his address, employer, criminal history or license history, he must file an amendement with the Commissioner.

It is NOT required for a person who advertises or disseminates information about providing a service to have a real estate license if any of the following conditions apply:

3 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 4 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.

The applicant for an original real estate broker license must: 1 Be at least 18 years old; 2 Be honest and truthful 3 Pass the exam AND.......

3 Have been actively engaged as a real estate salesperson for at least 2 years during the 5 years immediately preceding the application OR prove that he has general real estate experience that is the equivalent of 2 years of full-time experience as a salesperson completed within a similar time period 4 Have completed 8 COURSES in addition to the experience requirements

An individual who has been a licensee in good standing for___ continuous years in this State and who is ___years of age or older is exempt from the CE requirement.

30, 70

The continuing education requirement in California is

45 HOURS every four years to renew a license.

To be appointed as Commissioner, the candidate must have served for a minimum of ___ years as a real estate ____ actively engaged in the real estate business in California, OR must possess ___ years' related experience associated with _____activity in California during the last ___ years.

5, broker, 5, real estate, 10

An FBNS expires at the end of ____ years from December 31 of the year in which it was filed in the office of the county clerk. When a new statement is required because the prior statement has expired, it does not have to be ___

5, published unless there has been a change in the information required in the expired statement.

________ is required for each additional business location if a broker maintains more than one place of business in the State.

A branch office license

To replace an existing or lost license certificate; or To obtain an updated license certificate following a change of main office or mailing address, or change of employing broker costs ____?

A fee of $15 is required for the following transactions:

In a situation in which an action or proceeding is brought by or against the Commissioner in regard to his work, the ____will act as his attorney.

Attorney General

A new designated officer may be licensed upon receipt of a completed Corporation License Application, Corporation___ Statement, the appropriate license fee and statement that the currently designated broker-officer will remain with the firm as an "__" officer.

Background, additional

The Commissioner's REGULATIONS are rules that are part of the___enforced by the___.

California Administrative Code, Commissioner

In the case of a foreign corporation, a is required, executed within the ___ days prior to the date the corporation submits its application.

Certificate of Qualification , 30

Along with the Corporation License Application and fee, the corporation must submit a ___ issued by the Secretary of State within the ___ days prior to the date the application is filed and a statement of officers as filed with the Secretary of State.

Certificate of Status, 30

The Real Estate______ governs the entire California Bureau of Real Estate.

Commissioner

EACH broker who is to act for and on behalf of a corporation as a broker-officer must submit a completed ___Application and the appropriate license____. Broker-officer applicants who currently hold an officer license for a corporation, but have never obtained an individual broker license, will be required to furnish evidence of completion of the current ____ that have been attained within the previous ___ years.

Corporation License, fee , continuing education requirements, 4

Since January 1, 1995 , an original or renewal license may not be issued to any individual who has not provided a Social Security number. applies to real estate broker and officer licenses, salesperson licenses, pre-paid rental listing licenses, and existing mineral, oil, and gas licenses. Who's exempt?

Corporations with regard to a federal tax identification number are EXEMPT from this requirement.

For fingerprints to be considered "acceptable to the State Department of Justice (DOJ)," as noted above, the fingerprints must be submitted through the ___, which involves the electronic taking and transmission of fingerprints to DOJ.

DOJ's Live Scan Program

An applicant who makes a claim of equivalent experience, in lieu of the two years of salesperson experience must make claims of equivalent real estate-related experience by submitting a completed _______ Verification, or ________.

Equivalent Experience or RE 227 form

The California Real Estate Commissioner is appointed by the_______, and serves as the chief_____ of the ______.

Governor, executive, BRE

As of January 1, 1994, the BRE no longer issues original mineral, oil, and gas (MOG) broker licenses or permits. However,

MOG activities, as defined in Sections 10507 and 10581 of the Code, can be performed by currently licensed MOG brokers, or by licensed real estate brokers. Licensed MOG brokers may apply for license renewal.

If a broker does not engage in licensed activities in California, the broker must file an____. Likewise, any non-resident salespersons that engage in business in California must be licensed with a California broker.

Out of State Broker Acknowledgment (RE 235

The Commissioner's specific duties include...through real estate broker and other license requirements, the regulation of dealings in mineral, oil and gas property and _____.

Prepaid Rental Listing Services

Branch office licenses may be added or deleted by using _____ (Branch Office Application). (Again, no fee is required.)

RE 203

An applicant who has been licensed as a real estate salesperson in another state, the form ___ must be used to verify previous salesperson experience. For a broker in another state, CA requires that TWO responsible parties submit a verification of this experience by completing form ___.

RE 226, RE 228

To implement the provisions of the Act, the BRE adopted ___ effective August 1, 1998. This regulation requires ___ in the United States from all applicants who are applying for real estate licensure.

Regulation 2718, proof of legal presence

The Commissioner's principal office is located in the City of _____, but he is allowed to establish branch offices in the City and County of San Francisco, the City of Los Angeles, and in other cities as he may deem necessary, and with the approval of the Department of ____.

Sacramento, Finance

In California, an applicant for any real estate license must submit one set of fingerprints, acceptable to the ____. The only applicant who is exempt from this requirement is one who is either currently licensed by the BRE OR ___.

State Department of Justice (DOJ), / who has held a real estate license that expired less than two years ago.

The Commissioner's annual salary is paid monthly out of the ____upon a warrant of the ____. He also allowed his actual and necessary expenses in the discharge of his duties.

State Treasury, Controller

The California Legislature enacted the nation's first real estate license law in 1917

The BRE achieves "Protection of public" through the enactment and enforcement of laws relating to real estate and by establishing requirements for the real estate salespersons' and brokers' licenses.

"Our mission: To_____ the public in real estate transactions and provide related services to the real estate industry."

The California Bureau of Real Estate (BRE) (mission= protect)

The California Bureau of Real Estate BRE is a real estate regulatory body that is headed by ....

The Real Estate Commissioner heads this

Transfer: To make a transfer of the salesperson's employment, the salesperson and both his former AND new employing brokers must take the following steps:

The former employing broker must immediately notify BRE Licensing in Sacramento in writing. ◦ The former employer gives the transferring salesperson his/her license certificate and signs a Salesperson Change Application. ◦ Within 5 days, the salesperson and the new employing broker must complete RE 214 (Salesperson Change Application) and send it to the Bureau of Real Estate. Note that a new license certificate will not be issued.

License Fee

agent $245 / broker $300

A salesperson whose employing broker is a member of a partnership formed by written agreement may perform licensed acts on behalf of the partnership from ...

any branch office maintained by any one of the partners

Broker members of a partnership formed by written agreement may operate from branch offices of the partnership without obtaining an individual branch office license, as long as

at least ONE member of the partnership is licensed at that location.

Once these verification forms are completed, they must be mailed with the application to the BRE. In certain circumstances, the applicant may not be able to obtain this proof of experience from his employing broker. In such a case, there is an alternative. That applicant's experience may be corroborated on an Employment Certification, or RE 228, by ...

at least two other individuals who were employed in a related real estate field AND were in a position to verify the applicant's duties, employment dates, and other pertinent information. The applicant must remember to include an explanation as to why the employing broker of record cannot verify the salesperson's experience.

The newest amendments to Business and Professions Code Section 10150 ( Broker Examination and License Applications) and 10151 ( Salesperson Examination and License Applications) allow for the filing of a license application ______....when?

at the same time an applicant files to take a license examination, rather than the applicant having to file two separate forms at separate times.

Non-Working Status: A salesperson may be issued and hold a license, but NOT perform acts requiring a license, without being in the employ of a_____.

broker. The license in such a case is given "non-working status" until the salesperson becomes employed by a broker and he notifies the BRE.

A 150-day temporary license may be issued to an otherwise qualified applicant who is on the list of ...

child support obligors. (the license applied for cannot be issued unless a release is obtained from the district attorney's office during the 150-day temporary license period.)

Should someone in California act in the capacity of a salesperson without being licensed under the California licensing laws, that individual cannot receive any___ for such acts. Section____ of the Code defines a real estate salesperson and the acts requiring licensure and employment by a real estate broker.

compensation, 10132

As an alternative to the experience requirements, the applicant may submit evidence of graduation from a 4 year university with a MAJOR or MINOR in real estate, as the equivalent of 2 years' general real estate experience AND ____

completion of the required real estate courses.

The Commissioner's responsibility is to_____ these laws in a manner in which maximum protection for real estate consumers is achieved. He exercises judgment impartially, with fairness to both the _____ AND the______.

enforce, consumer & the industry

The revenue necessary to operate the BRE is derived from _______, and various other permits issued by the Bureau.

fees charged for real estate licenses, subdivision public reports

Some corporations choose to do business under a "dba" or___ business name. This is permitted in California, provided that the corporation submits a copy of a ___as filed with the ___ office in the county where the corporation's principal place of business is located.

fictitious, Fictitious Business Name Statement, county clerk's

California license lasts for ___ years.

four-year license

A Prepaid Rental Listing Service License (PRLS) is

in the business of supplying prospective tenants with listings of residential real property for rent or lease while collecting a fee at the same time or in advance of the time the listings are provided. Simplified, this license allows the licensee to collect for supplying a prospective tenant with a list of prospective rentals.

The Commissioner's specific duties include...the ___ of complaints and, where appropriate, pursuit of formal action against licensees

investigation

Under Section 11350.6 of the Welfare and Institutions Code, the BRE may NOT issue or renew a full-term license if the applicant ...

is on a list of persons (obligors) who have not complied with a a court order to provide child support payments. Additionally, a license may be suspended if a licensee's name remains on the list 150 days after notice.

The California______, which gives the Commissioner his authority and power, used______ to create the position of Commissioner.

legislature, police power

Anyone who is NOT a California _____ may not legally solicit California residents , because acting in such a capacity is considered conducting activity for which a ______ is required.

licensed broker, real estate license

If the broker has compensated the non-licensed for the activities for which he is not licensed, that broker is guilty of a____ and may also be fined by the courts, under Sections 10138, 10139, 10139.5 of the Code

misdemeanor

The Commissioner's specific duties include...The investigation of ______alleged to be performing acts for which a license is required;

non-licensees

In regard to the California Bureau of Real Estate, the term "public benefit" applies to ___ and includes___.

original and renewal real estate salesperson and broker licenses, prepaid rental listing service licenses and mineral, oil and gas broker licenses... includes professional and occupational licenses issued to individuals by state agencies.

The only unlicensed person who may solicit for the sale of real property is the____ and/or his legal representatives

owner

The BRE does not issue____ licenses. A partnership may legally perform licensed acts, as long as

partnership.... EVERY partner through whom the partnership so acts is a licensed real estate broker.

The Commissioner's specific duties include...The_____ of applicants and issuance of real estate licenses

qualification

Two years after a license expires, all license rights lapse. The individual will be required to...

re-qualify through the examination process before being licensed in real estate.

The licensee may correct the address on license certificate by

striking out the old address and typing or writing the new address in ink and dating and initialing the change.

The Commissioner's specific duties include...The regulation of the sale or lease of____ interests

subdivision

Even if the BRE's records show that the applicant has been licensed for 2 or more years as a salesperson, the BRE also requires additional evidence of the salesperson's having been actively employed as a real estate salesperson. To prove this, the BRE requires .....

that the applicant's employing broker complete an Employment Verification, or RE 226, to provide additional evidence that an applicant has worked full-time as a salesperson for at least two years.

The California law says an individual or corporate broker can operate under a fictitious business name FBNS (dba) after ...

the BRE issues a license bearing the fictitious name.

A broker who changes his/her main office address must forward a written notice to the BRE in Sacramento no later than _____ day(s), using a Broker Change Application (RE 204) [or Corporation Change Application (RE 204A)]. (No fee is required.)

the next business

police power

the right of the state to enact and enforce laws for the order, safety, health, morals, and general welfare of the public.

When the holder of a license fails to renew it prior to the expiration of the period for which it was issued. This person may legally renew the license within ....

two years from such expiration by submitting a proper application, evidence of completion of the current continuing education requirements, and the appropriate late renewal fee.

Classes must be approved by the Commissioner for continuing education credit. Specifically, the 45 hours, within EACH 4-year renewable period, are broken down into the following:

◦ 3 hours of Agency; ◦ 3 hours of Ethics and Professional Conduct; ◦3 hours of Trust Fund Accounting & Handling; ◦ 3 hours of Fair Housing; ◦ 3 hours of Risk Management; AND ◦ At least 18 hours of courses under the umbrella of Consumer Protection...

There are no fees to implement the following:

◦ Address change; ◦ Salesperson employment transfer; ◦ Personal or corporate name change; ◦Adding or deleting fictitious business name; ◦ Branch office; and ◦ Duplicate license certificate.

3 COURSES of the following "ELECTIVE COURSES":

◦ Real Estate Principles ◦ Business Law ◦ Property Management ◦ Real Estate Office Administration ◦ Escrows ◦ Advanced Legal Aspects of Real Estate ◦ Advanced Real Estate Finance ◦ Advanced Real Estate Appraisal ◦ Mortgage Loan Brokering and Lending ◦ Computer Applications in Real Estate ◦ Common Interest Development (2004)

A person must be LICENSED if he for compensation and for another person negotiates to undertake any of the following actions:

◦ Sells or offers to sell, buys or offers to buy, or exchanges or offers to exchange a real property sales contract, or a promissory note secured directly or collaterally by a lien on real property or on a business opportunity, and performs services for the holders thereof. ◦ Leases or rents; offers to lease or rent; places for rent; solicits listings of places for rent; solicits for prospective tenants; negotiates the sale, purchase or exchanges of leases on real property; or collects rents from real property.* * Keep in mind that some managers and employees under the aforementioned section are exempt from the licensing requirement.