Unit 8: California License Law

-monetary fines. -license suspension or revocation. -civil injunctions. Licenses may be suspended, revoked, or otherwise restricted. Violators may be subject to civil injunctions, criminal penalties, or fines as the result of being found guilty of unethical conduct.

A licensee who violates the Real Estate Law can be subject to:

150-day Temporary License Hint: The California Department of Child Support Services prepares a list of people, called obligors, who owe child support payments. A child support obligor may receive a 150-day temporary license. During the 150 days, a person must show the CalBRE proof that the delinquency is cleared and that he or she has been removed from the list, so that a permanent license can be issued.

A person with a real estate salesperson license has delinquent child support payments and is an obligor on the California Department of Child Support Services list. If the child support remains unpaid when the salesperson renews his or her license, what type of license will the CalBRE issue?

be employed by an active broker. Hint: A salesperson license is required for people employed as salespeople under the supervision of a licensed broker. A salesperson without an employing broker may not perform acts requiring a license.

A person with a salesperson license who wishes to perform the acts requiring a real estate license must:

-employ other brokers. -employ salespeople. -perform acts that require a real estate license. Hint: The broker license legally permits the broker to perform any acts for which a real estate license is required. A real estate broker is also an independent businessperson who can employ someone who holds a salesperson or a broker license.

A real estate broker license allows the broker to:

-accept the penalty. -reduce the penalty. -reject the penalty. Hint: The Commissioner may accept, reject, or reduce the proposed penalty from the administrative law judge and make an official decision.

A real estate licensee is accused of violating the law. After the hearing, an administrative law judge gave recommendations to the Commissioner for discipline. The Commissioner may:

unlicensed person Hint: An unlicensed person may not receive payment for any act requiring a real estate license.

A(n) __________ cannot receive compensation for acts that require a real estate license.

Recovery Account

Account to pay otherwise uncollectible court judgments against licensees who have committed fraud or misrepresentation in a real estate transaction

DBA

Acronym for a fictitious business name

must meet the state's licensing requirements. Hint: A person does not have to live in California in order to possess a license in the state, but the applicant must take the appropriate written examination in California and meet all other requirements. California has no reciprocity with any other state to allow a waiver of any of the requirements to obtain a license.

An applicant for a real estate license who lives outside the state of California:

No, he engaged in secret profits. A secret profit is the taking of a secret or undisclosed amount of compensation.

Andy is a real estate broker. Charles listed a rundown apartment building through Andy, asking one million dollars. Andy knew that Donna, a real estate investor, would readily pay twice that amount for the land alone due to its choice location. Andy had his fiancée purchase the property for him, and then immediately resold the property to Donna. All three parties got what they sought: Charles got the one million dollars he wanted, Donna got the property she wanted, Andy got the commission plus the difference between the two sales. Did Andy act ethically?

branch office

Any business location other than the main office

Both Bob and Sally may be disciplined. A broker is subject to disciplinary action if the broker, or the officer designated by a corporate broker licensee, fails to exercise reasonable supervision over the activities of the broker's salespersons. Section 10177(h).

Bob is a broker who employs Sally, a salesperson. Sally has made several careless and significant errors on the last four transactions she has handled. The various clients in all four transactions separately filed complaints against Sally with CalBRE. What may be the outcome?

solicitation materials

Business cards, stationery, advertising fliers, and other materials designed to solicit a professional relationship between the licensee and a consumer

no one Unless someone is involved in the direct sale or purchase of property for himself, a real estate license is a prerequisite for performing real estate work.

Charles is a construction worker who owns a home that he wishes to sell. By law, he must hire ____________ to help him.

Enforcement and Audit Section. The complaint is investigated by the Enforcement and Audit Sections of CalBRE.

Complaints filed against a licensee with CalBRE are investigated by the:

moral turpitude

Conduct considered contrary to community standards of justice, honesty, or good morals

Order to Desist and Refrain

Court-ordered demand that prohibits a business or individual from carrying on a particular activity

Real Estate Commissioner

Head of the Bureau of Real Estate

payment of child support

If not paid by an obligor, his or her license will be suspended

eLicensing

Interactive online system used for license renewal and change transactions

Real Estate Law

Law that affects the licensing and conduct of real estate brokers and salespeople

commingling

Mixing of the principal's funds with the broker's own

secret profits

Money obtained by buying property from a client and reselling it quickly to someone else, rather than allowing the client to reap the benefits of the greater sale

referral fees

Money paid illegally in exchange for generation of business

negotiate a month-to-month lease for a single-family home. Hint: A real estate license is required to solicit buyers, sellers, tenants or rentals. It is also required to negotiate sales, leases, loans, promissory notes secured by real property, or exchanges.

Pat is an intern at a real estate brokerage while he studies for his license exam. Pat may perform all of the following tasks, except:

Administrative Law Judge

Person who makes recommendations to the Commissioner concerning discipline, after a formal hearing

real estate broker

Person with a real estate license who can employ someone who holds a salesperson or a broker license

Business & Professions Code

Portion of codified California law covering real estate professionals

false advertising

Promoting sales with inaccurate information

done none of the above Robert put the money into a trust fund and has not commingled his clients funds.

Robert is handling several different transactions at once. He has six different homes being sold by six different people, and six separate buyers buying them. During the course of these transactions, he receives money from all the buyers and puts all the funds into a trust account. Robert has:

agent

Role of a broker to his or her client

preside over the hearing. An Administrative Law Judge will preside over the hearing and make recommendations to the Commissioner for discipline after the hearing.

Rose is a real estate salesperson who did not disclose a dual agency relationship. If a party later complains, an Administrative Law Judge will

blockbusting

Term for inducing panic sales

Real Estate Advisory Commission Hint: The Commissioner appoints a Real Estate Advisory Commission for consultation and advice on matters pertinent to the CalBRE.

The Real Estate Commissioner appoints a __________ for consultative purposes on issues involving the Bureau of Real Estate.

uphold the good standing of ethical real estate agents from actions of unscrupulous agents. The two main purposes of the Real Estate Law is to protect consumers from loss because of dishonest or incompetent agents and to uphold the good standing of ethical agents from adverse publicity caused by unprincipled licensees.

The main purpose of the Real Estate Law is to:

Consumer Recovery Account. Hint: The Consumer Recovery Account assures the payment of otherwise non-collectable court judgments against licensees who have committed fraud, misrepresentation, deceit, or conversion of trust funds in a transaction.

The payment of non-collectable court judgments against licensees who committed fraud, misrepresentation, deceit, or conversion of trust funds in a transaction, is assured by the:

restricted license

Type of probationary license issued when a license has been suspended, revoked, or denied after a hearing

certified written statement of the facts Hint: When a salesperson is discharged for a violation of any of the provisions of the Real Estate Law, the employing broker must immediately file a certified written statement of the facts with the Commissioner.

When a salesperson is discharged for a violation of any of the provisions of the Real Estate Law, the employing broker must immediately file a __________ with the Commissioner.

a. Property Management License CalBRE issues real estate broker and salesperson licenses for a four-year period. Occasionally, CalBRE issues restricted licenses.

Which is not a type of license issued by the California Bureau of Real Estate?

-Solicitation of real estate buyers -Negotiating sales transactions -Negotiating leases A license is necessary for soliciting buyers, negotiating sales, and negotiating sales contracts or leases.

Which of the following acts requires a real estate license?