Unit 4

19: A bulk sale is a

A bulk sale is a sale not in the course of the seller's ordinary business. The sale of the seller's business or a substantial part of the materials, supplies, merchandise, or other inventory would be a bulk sale.

22: The term disability as defined by the Fair Housing act includes

A disability is a physical or mental impairment. The term includes those having a history of, or being regarded as having, an impairment that substantially limits one or more major life activities. Persons who have AIDS are protected by the fair housing laws under this classification.

10: Advertising a specific yield greater than the rate stated on the note, without the actual interest rate and purchase discount, is considered

Advertising a specific yield greater than the rate stated on the note is misleading advertising unless the ad also includes the actual interest rates and purchase discount.

12: Loan payments greater than twice the amount of the smallest payment are referred to as

Balloon payments (payments greater than twice the amount of the smallest payment) may not be imposed on a loan secured by an owner-occupied dwelling if the loan is for six years or less.

23: Persuading homeowners to sell by representing values will decline because of the entrance of minorities to the area is known as

Blockbusting, is the illegal act of representing that prices will drop because of the entrance or possible entrance of minority groups.

SAFE Act of 2008

The purpose of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) is to protect borrowers in mortgage loan transactions and to reduce fraud.

11: Loan broker costs for a regulated loan (first loans of less than $30,000 and second loans of less than $20,000) cannot exceed

actual costs and expenses Loan broker costs for a regulated loan cannot exceed actual costs and expenses, and are limited to 5% of the loan, but no more than $700.

14: California real estate licensees may engage in business as mortgage loan originators only if they obtain a

only if they obtain a real estate license endorsement issued by the DRE identifying themselves as a licensed mortgage loan originator.

27: Which of the following statements is NOT, on its face, considered discriminatory advertising?

(a)"master bathroom" (b)apartment complex with chapel" (c)"bachelor apartment"

4: All of the following activities require a real estate license EXCEPT:

(b)Selling your own property as a principal. (a)Negotiating loans for borrowers secured by real property. (b)Selling your own property as a principal. (c)Buying property for others for compensation. (d)Renting residential homes for others for compensation.

7: Which of the following is NOT grounds for disciplinary action against a real estate licensee?

(b)acting for more than one party to a transaction with the knowledge and consent of all the parties.

Statue of limitations

(b)acting for more than one party to a transaction with the knowledge and consent of all the parties.

15: A real estate broker may act as escrow as long as the broker is

(b)also a principal in the transaction.

24: The equal housing opportunity poster must be posted in

(c)the broker's place of business.

3: If performed for compensation, which of the following acts requires a real estate license?

(d) Assisting others to lease commercial office space A real estate broker is a person who, for compensation or the expectation of compensation, leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase, or exchange of leases on real property.

21: Familial status refers to

Familial status refers to those under the age of 18 living with a parent or guardian, those in the process of settling legal custody issues, persons in the adoption process, and any pregnant person.

Late Renewals

For late license renewals, there is a two-year grace period. The licensee cannot act as a real estate agent while the license is expired.

Broker license requirements

People who make loan collections on 10 or fewer loans and do not negotiate loans need not be licensed as brokers. A person who collects on more than 10 loans or collects an amount exceeding $40,000 per year must either have a broker's license or apply to the real estate commissioner for an exemption. To obtain the exemption, the person must agree to comply with the provisions of the real estate law and the commissioner's regulations and must post a bond or other security to protect client funds.

26: The case of Lonberg v. Sanborn Theatres, Inc. involved

The case of Lonberg v. Sanborn Theatres, Inc. involved a multiplex cinema that was not fully wheelchair accessible. The wheelchair-bound plaintiffs sued the theater operators, the lessor, and the architect based on the Americans with Disabilities Act.

13: The permits and licenses once necessary to handle MOG transactions are

The permits and licenses once necessary to handle MOG transactions are no longer required. A person holding a real estate broker's license can engage in MOG transactions without additional licensing or qualifications.

CALFORNIA FAIR EMPLOYMENT AND HOUSING ACT (RUMFORD ACT)

prohibits discrimination because of race, color, religion, sex, marital status, national origin, or ancestry in supplying housing accommodations. The Rumford Act has been expanded to include all housing, including single-family residences. The only exception is renting to a roomer or boarder in a single-family house with no more than one roomer or boarder.

9: A person who collects on more than ten loans or collects an amount exceeding __________ per year must either have a broker's license or apply to the real estate commissioner for an exemption.

$40,000

16: Which of the following statements is correct regarding a real estate licensee's ability to sell mobile homes?

(a)A real estate licensee can list and sell mobile homes. (b)A real estate broker who is not also licensed as a mobile home dealer may not have an office where two or more mobile homes are offered for sale. (c)A licensee may not represent that the mobile home can be transported over California highways unless it meets all physical requirements for such transport.

2: Which of the following statements is TRUE about the real estate commissioner?

(a)Chief executive of the California Department of Real Estate. (b)Appointed by the governor. (c)Controls the issuance, suspension and revocation of real estate licensees.

5: After passing the salesperson examination, an applicant must apply for the license within

After passing the state examination, an applicant must apply for a license within one year after passing the salesperson's examination.

20: Which of the following statements is TRUE about appraiser licensing?

Title XI, Real Estate Appraisal Reform Amendment of the federal Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989, requires that appraisers be licensed or certified by the state for real estate transactions involving federal financial and public policy interests. An examination is required without exception.

30: Real estate licensees must now have a separate license in California to conduct mortgage loan origination activities in compliance with the SAFE Act.

True Real estate licensees that solicit borrowers and lenders for loans secured by real estate must obtain a DRE "license endorsement" in compliance with the Federal Secure and Fair Enforcement Mortgage Licensing Act [SAFE Act].

17: Licensed real estate brokers are exempt from the requirement to obtain PRLS license.

True There is a separate license available to operate a prepaid rental listing service (PRLS). No examination is required for a two-year PRLS license. Licensed real estate brokers are exempt from this requirement.

28: The Unruh Civil Rights Act prohibits discrimination in all _________________ whatsoever.

Unruh Civil Rights Act. "All persons within the jurisdiction of this state are free and equal, and no matter what their race, color, religion, ancestry, or national origin, are entitled to the full and equal accommodations, advantages, facilities, or services in all business establishments of every kind whatsoever."

Consumer recovery account 8: What is the maximum that can be paid out of the recovery account of the Education, Research and Recovery Allocation for multiple claims against one licensee?

Up to a maximum of $50,000 will be paid to the claimants because of any one transaction, regardless of the number of persons injured or the number of licensees involved, and no more than $250,000 will be paid out for multiple claims against one licensee.

6: The California Department of Real Estate (DRE) can withhold issuance or renewal of a real estate license of a party who has been placed on a certified list of persons who are

child support payments The California Department of Real Estate can withhold issuance or renewal of a real estate license of a party who has been placed on a certified list of persons who are delinquent in child or family support payments. The DRE can issue a temporary license for a period of 150 days during which period the licensee must comply with required payments.

18: A real estate license is NOT required to engage in the business of selling or leasing an existing business enterprise.

false At one time, separate licensing was available to those engaged in the sale or lease of business opportunities. Since 1966, however, a real estate license has been required to engage in such transactions.