California Real Estate Notes

California Bureau of Real Estate (CalBRE)

A real estate regulatory body that is headed by the Real Estate Commissioner, administers the real estate license laws, handles advertising, funds, clients, and customers

Non-Working Status

A salesperson may hold a license, but NOT perform acts requiring a license

Which of the following elements is not necessary for a valid contract?

Accession

While waiting in the lobby of the Fair Real Estate Company's office, Samir and Rhadika overhear an agent tell clients, "You wouldn't be happy in THAT neighborhood. It's very "colorful," if you know what I mean." Which ruling by the Supreme Court dealt with this issue?

All discrimination in selling or renting residential property based on race is prohibited under the provisions of the Civil Rights Act of 1866, Jones v. Mayer.

Gary and Paul have wooden shutters installed throughout their home. A few years later, Paul is promoted by his employer and transferred to another city. Gary wants to take the wooden shutters to their new home. Paul insists they must remain with the home. Which of the five tests for real and personal property applies?

All of the above - Method of Attachment - Adaptability - Intent

All property in the United States falls under which system of land ownership?

Allodial System

Prepaid Rental Listing Service License (PRLS)

Allows the licensee to collect for supplying a prospective tenant with a list of prospective rentals

Which of the following is not a water right?

Alluvial Right

Recovery Fund

An account established as a last resort for a consumer who has obtained a final civil judgement or criminal restitution order against a real estate licensee based on fraud or certain other grounds.

Real Estate General Fund

An account that holds ALL the money collected from license and exam fees, and is used for the operating expenses of the CalBRE - 8% for the Real Estate Education and Research Fund - 12% for the Recovery Fund

John is trying to keep things straight while he studies. He's having a rough time distinguishing federal and state legislation. Help John with the primary focus of federal legislation.

Anti-discrimination laws and fair trade practices

Commission's Regulation 2270

Anyone who advertises about services over the Internet is NOT to be considered a real estate broker in California, if ONE of these apply...

Section 10177 of the Business and Professions Code

Applies to situations in which the licensee involved was not necessarily acting in the capacity of an agent

Licenses and examinations fees are/are not refundable. Fees very.

Are not

John is still studying for his California real estate license. Once again, he is having a difficult time keeping areas straight. Help John with the largest area of the NAR Code of Ethics Standards and Practices.

Article 16 - Ethics and Agency Relationships

A violent storm comes in from the ocean, hitting the beachfront properties with destructive force. When the Meyers return to their home, they find the beach has disappeared from their property. Which term describes the damage.

Avulsion

The Ritchie family has put their home on the market. The Sampsons make an offer on the Ritchies' home. Suddenly, the Ritchies decide not to sell their home. They explain to Sara, their agent, that the Sampsons "aren't quite right" for the neighborhood. What should Sara do?

Both B and C - Sara must explain to the Ritchies that she cannot ethically remove a property from the market, after an offer has been made, to sidestep a purchase by a party. - Sara must withdraw herself from the relationship with the Ritchies or from any situation where client discrimination occurs.

Melinda's mother recently passed away. She is thinking of selling her belongings in an estate sale. During her research, she came across real and personal property regulations and laws. Please help Melinda understand the legal difference(s) between real and personal property.

Both B and C - Tax laws often distinguish between real and personal property. - An agreement for a sale of real property must be in writing and signed by the party to be charged. If the amount or value is $500 or more, an agreement for the sale of personal property must be in writing.

Mikela wants to research and study the requirements for the California Real Estate Examination Test. Where can she find the exam's purpose and requirements?

California Business and Professions Code Section 10153

Which regulation or section(s) apply to the use of the Internet for advertising in California?

Commission's Regulation 2270

The Ahmed family have signed a contract to buy the Miller family's home. However, the contract states the Ahmeds must first close on the sale of their current home within thirty days. If this closing does not occur, the contract is no longer binding for either party. Which contract term applies?

Contingency

John lives in an apartment and each month pays his rental payments. He is also considered a stockholder in his building and owns property. In what type of apartment does John live in?

Cooperative

Jack is buying the Padillas' home. He makes his offer and in his terms states he wants all the window treatments, refrigerator, and microwave to be part of the sale. The Padillas accept his offer on the condition that the refridgerator is the only item that stays in the home. Which contract term applies?

Counteroffer

HEH, Inc. owns a large parcel of land which will be used for commercial development. Upon the sale of the property to HEH, Inc., the grantor in a written agreement established the lake may never be touched and the property may only be used for commercial purposes. Which type of private deed restriction is in place for HEH, Inc.'s property?

Covenant

Section 10132

Defines a real estate salesperson and the acts requiring licensure and employment by a real estate broker

Which of the following is not considered one of the five economic characteristics of land?

Each parcel of land has its own non homogeneous characteristics. No two properties are the same.

The Moltasanto family has owned a vineyard in Sonoma for over one hundred years. They have owned all rights to the property since the first day of ownership. The property is always inherited by the oldest child after the death of the previous owner. Which type of estate is the Moltasanto family vineyard?

Fee Simple Absolute

Penelope is interested in buying a 150-year-old historical home in San Francisco. If Penelope decides to purchase the home, it must be on the condition the original architecture features are never removed from the home. Additionally, if Penelope buys the home and then sells it at some point, the same condition must be in the sale contract, and so on. What type of freehold estate is this historic home?

Fee Simple Defeasible

Lydia has decided to actually spend a considerable amount of time studying for the exam this time, in hope of earning a passing score. Her application has expired in the two years of fruitless reexaminations. What does she need to do to reapply?

File the Salesperson Examination Application (RE400A) along with the appropriate fee.

All renewal applications, including salespersons, must complete a total of ____ hours of approved offerings within the four-year period immediately preceding license renewal.

Forty-five (45)

All California real estate licenses are issues for a period of ____ years.

Four (4)

Real Estate Commissioner

Governs the entire California Bureau of Real Estate, appointed by the Governor, and serves as the chief executive of the Bureau of Real Estate

Hannah is a newly licensed California real estate salesperson. She has aspirations of one day being the California Real Estate Commissioner. How does she get there and what does she do once she's there?

Hannah would need the appointment of the Governor of California. Her primary duty as Commissioner would be to enforce the laws in a manner in which maximum protection for real estate consumers is achieved.

John completes the Salesperson Examination Application and submits it to the California Bureau of Real Estate. Driving home from work, he realized he used his old address and not his new on the application. What should he do?

He does not have any options. Once a completed Salesperson Examination Application is submitted to the CalBRE, no changes of any kind may be made to the application.

Fingerprint requirements

In California, an applicant for any real estate license must submit one set of classifiable fingerprints to the State Department of Justice (DOJ).

Miranda helps her friend Lupe purchase a home. She researches the neighborhood, assists her with a mortgage -- she essentially acts as Lupe's real estate agent. There is only one issue, Miranda does not have a California license and Lupe has paid Miranda for her help. Is this acceptable?

It is certainly not acceptable. Miranda is accepting compensation for representing another person in a real estate transaction and she does not hold a California real estate license.

Jane has filed her complaint of discrimination. She also wants to seek some sort of punitive damages. What are her options, if any?

Jane may file suit within two years of the violation. She may seek a restraining order, actual damages, and punitive damages of up to $1,000.

B&P Sections 10235.5 and 10140.6

Licensees who advertise on the Internet are required by law to indicate their license status

Jonathon decides to sell his home and transfer all of his property ownership rights to the new buyer. This bundling and selling of rights is known as:

Livery of Seisin

Lydia applied for the salesperson examination in January 2014. She sat for the exam three times in 2014 and four times in 2015. Each time, Lydia did not recieve a passing score. How many times may Lydia sit through the examination in 2016.

Lydia may re-take the examination as many times as it takes to earn a passing score, but her application will expire in January and she must reapply first.

Equivalent Experience Verification (RE 227)

Major or minor in real estate graduation from a four-year university course is an alternative for experience requirements

Lydia applied for the salesperson examination in January 2014. She sat for the exam three times in 2014 and four times in 2015. Each time, Lydia did not recieve a passing score. How many times may Lydia sit through the examination in 2016.

Marc's initial exam score was 58% based on the required passing score of 70%.

Ted and Jack are selling their home to Duncan and Gary. Upon the title search, the title company discovers Ted and Jack's home is free of any liens or problems and can be easily sold. Ted and Jack's property holds which type of title?

Marketable Title

Martha and Liz have applied for a mortgage. They both have excellent credit and very successful careers and they are perfect on paper. Martha and Liz are partners and are expecting the birth of their first child together. They are denied a loan. What's the violation here?

Martha and Liz have been denied the full protection of the Equal Credit Opportunity Act (ECOA). The ECOA is a part of the Fair Financing Laws.

Jeremy opened a coffeehouse in a space leased from Maria and Renaldo. A week before his lease expired, Jeremy moved to a new location without his commercial microwave which was attached to the counter. Eighteen days following the notice of Jeremy's right to reclaim the microwave, Maria and Renaldo sold the microwave at action. Jeremy is furious and threatening legal action. Does he have a suit?

No, Jeremy does not have a case. Since the microwave was not reclaimed during the period allowed by law.

Christine and Scott have been married for fifteen years. They have three children, a home, and a vacation home. The couple purchased their home together after their marriage, but Scott owned the vacation property prior to the union. Christine and Scott are now getting divorced. Christine wants half of their residence and half of the ownership of the vacation property. At times they have rented the vacation home and the proceeds have gone to their joint bank account. Does Christine have any legal right to the ownership of the vacation home?

No, Scott came to the marriage with the vacation property, therefore it may remain a separate property. However, due to the commingling of the rental proceeds from the property in the joint account, she does have a right to half the proceeds.

Real Estate Law

Part 1, Sections 10000 to 10580 of the Business and Professions Code

Subdivided Lands Law

Part 2, Sections 11000 to 11200 of the Business and Professions Code

Patrice and Michael are in the process of refinancing their townhouse. The mortgage company calls and gives the couple the news they have a lien on their home for non-payment of the previous year's property taxes. What type of lien is on their property? What do they need to do to remedy their situation?

Patrice and Michael have an involuntary lien placed on their home for delinquent property taxes. The couple needs to pay the taxes, any interest and/or late fees, and have the lien removed.

Raj is stressed. He is getting ready to take the salesperson examination and doesn't know where to begin studying. Help Raj by telling him the examination topic(s) with the largest concentration of questions.

Practice of Real Estate and Mandated Disclosures

Sam, a broker, thought the postage meter stamp was sufficient evidence of a U.S. Postal Service postmark. He was wrong and his broker's license expired. What happened next?

Sam must immediately stop his licensed activity. His salespersons are all place immediately in non-working status, and his branch office licenses are cancelled. He must then take all necessary steps to re-activate his license, his salespersons' license and the brach office licenses.

Sara waited and waited for what she thought was a lifetime. Finally, Thursday morning the results of her California real estate examination arrived. What was the maximum length of "the lifetime" Sara waited and could she have gotten her results by another method?

Sara's lifetime wasn't too long. The results are normally mailed out in five days. She could have also received her results online through the eLicensing system and through the Interactive Voice Response system.

Bill the broker received a very high offer on a piece of property from a buyer. Bill makes a low offer through a "dummy" purchaser, or an accomplice who is not a buyer at all. Bill then sells the property to the buyer for the higher price, with the difference being profit. What's the violation?

Secret Profit

Katrina had her license suspended for making false promises to clients. She had a habit of telling clients what they wanted to hear and never being able to state the facts. Of course, she could never follow through with her statements and several complaints were filed. Which guidelines constitute most suspensions?

Sections 10176 and 10177 of the Business and Professions Code

TBH, Inc. owns land for development adjacent to their corporate headquarters. TBH, Inc. is the sole owner of the property. The land will be developed as a shopping and restaurant area. Which form of ownership does this property fall under?

Severalty

The Percy family have purchased a heavily wooded property in Northern California. They are planning to build a guest house off the main house for entertaining. In the process, many trees will need to be cleared. The family is planning to sell the wood to the neighbors as firewood. Which process applies?

Severance

Lydia feared she did not pass the California State Licensing Exam AGAIN. As she nervously opened the envelope that held the results, what was the first clue to the outcome of her reexamination?

She did NOT receive an actual score this time in the mail. This means she finally passed the licensing exam, and her license application is included in the envelope.

Agent Smith tells the Jacob family the Fernwood neighborhood is beautiful, attractive, and highly desirable. The next day, Agent Smith tells the Miller family that Fernwood is deteriorating, values are falling, and the school district is less than stellar. Name the form of illegal discrimination.

Steering

Susan is thinking of putting her home up for sale, but doesn't want to use a real estate agent. What are her options?

Susan may sell her property herself without obtaining a real estate license. Although she will be compensated for the sale of her home, she is not representing another person.

John is studying for his California real estate license. He is studying federal law, state law, and local law. Now, he is trying to get a handle on something called "Professional Code." What source has no input on the topic John is currently studying?

The Better Business Bureau

As an examinee, or a new licensee, where is the best, most accurate source for current California Bureau of Real Estate information?

The CalBRE website

Miguel and Maria have found a wonderful condo to lease. They call the owner and express their interest. The owner tells the couple it is no longer available for lease. Two weeks later, Maria sees the "FOR LEASE" sign outside the condo. Which act or law has been violated by the owner?

The Civil Rights Act of 1968 Title VIII

Commissioner qualifications

The Commissioner candidate must have served for a minimum of 5 years as a real estate broker actively engaged in the real estate business in California, OR must posses 5 years' related experience associated with real estate activity in California during the last 10 years.

Sam has successfully completed the Real Estate Principles course, the Real Estate Practices course, an additional college level course, and passed the salesperson licensing examination. Which license is available to Sam?

The Four-Year Salesperson License

Suzette is leasing a condo from the Garcias. She has been renting the condo for over three years. She renews the lease each year and, because of her loyalty and exemplarily rental history, the Garcia's allow her to make any decor changes she wishes. Which of the following statements is true about the relationship between the Garcias and Suzette?

The Garcias own the condo in freehold, but rent it to Suzette in leasehold.

Jane feels she has bee discriminated against in her search for a new home. She's a single mother of two who works full time. Where does she go with a complaint?

The Office of Fair Housing and Equal Opportunity (OFHEO)

Continuing education

The continuing education requirement in California is 45 hours for every four years to renew a license.

Section 10176 of the Business and Professions Code

The legal guideline for the actions of a real estate licensee performing or attempting to perform any of the licensed acts within the scope of the Real Estate Law

Miguel sits down, ready and prepared to take the examination. He neatly places his slide rule, programmable calculator, single piece of scratch paper, answer sheet, pencil and pocket-size electronic calculator on the desk and he is ready to begin. Although extremely prepared, which item of Miguel's is NOT permitted in the testing site?

The programmable calculator

To take private property through eminent domain, three steps must be taken by the state or local government. What are they?

The property owner must be paid compensation for the property. The property must be for public good or use. The owner must have due process in the court system.

Olive Maccones dies without a will. She has three sons and seven grandchildren. She owned a substantial amount of property. What happens to the property?

The property will be transferred according to the Statute of Descent and Distribution.

Police Power

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

Late renewal

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.

Commissioner's responsibility

To enforce laws in a manner in which maximum protection for real estate consumers is achieved

Commissioner's mission

To enforce the Real Estate Law and the Subdivided Lands Law in a manner that offers the maximum protection for persons dealing with real estate licensees and for purchasers of subdivided real property

CalBRE mission statement:

To protect the public in real estate transactions and provide related services to the real estate industry.

Employment Certification (RE 228)

To prove work as real estate broker in another state

Employment Verification (RE 226)

To prove work as salesperson for at least two (2) years

T/F: A person must be licensed to negotiate the sale, purchase or exchanges of real property; offer to lease or rent; solicit listings of real estate or prospective tenants; collect any sorts of payments regarding real property.

True

Late renewal

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.

Which of the following is not considered on of the six distinct forms of ownership in California?

Voluntary Tenancy

Which of the following is not a requirement of a will?

Written in testator's handwriting

Is it permissible to advertise real estate associated services or products in California without a California real estate license?

Yes, as long as the products or services do not include any actions for which a Califonia real estate license is required.

A ____ may be licensed as a real estate broker, if one officer is a qualified real estate broker, who much submit a Corporation License Application and its fee.

corporation

The California Real Estate Commissioner has the authority to investigate the actions of any person engaged in the business of a licensee in California, and has the power to ____, suspend or ____ the real estate license.

deny, revoke

The ____ liability of the Recovery Account in any ONE transaction is $50,000.00, and the total series of judgements against any INDIVIDUA licensee is limited to $250,000.00

maximum

The only unlicensed person who may solicit for the sale of real property is the ____ or his legal representatives.

owner

After a license is ____, the person affected may not apply for reinstatement of the license until one year has passed.

revoked

An examinee or licensee may perform what translations on the CalBRE website?

- Check test results - Renew salesperson and broker license - Obtin the current testing schedule

The law judge has just issued a decision based upon findings in a formal hearing of a real estate salesperson for various ethical violations. What is the role of the California Real Estate Commissioner at this point in the proceeding?

- Dismiss the findings if the charges are not sustained at the hearing - Reduce the proposed penalty and make an offical decision

Marta and Sean acquire notes from a previous California State Licensing Exam through a friend. This friend has previously taken the exam and managed to record the questions on his scratch piece of paper. Marta and Sean score passing grades on their exams, but are denied licenses. Why would they be denied a license?

- Marta and Sean were guilty of subversion by using improperly obtained test questions to prepare for the examination. This is considered a dishonest practice. - Marta and Sean had an unfair advantage over the other applicants taking the examination. It was basically old fashioned cheating, and was not tolerated. Answer: (BOTH A and B)

California licensing laws define:

- Real Estate Brokerage - Handling Trust Funds - Managing Escrow Accounts

Jan failed to renew her license prior to its expiration. In order to renew her license now Jan must:

- Submit a proper application within two (2) years of her license expiration - Providing evidence of the completion of current required continuing education - Pay the appropriate late renewal fee

The applicant for an original real estate broker license must be:

- at least 18 years old - actively engaged as a real estate saleperson for at least two years during the five years immediately preceding the application - have completed eight courses (five (5) mandatory and three (3) elective)

A candidate for an original real estate salesperson license must be:

- at least 18 years old - pass a written examination - provide Proof of Legal Presence in the United States - disclose any criminal violation or disciplinary action

Sections ____ and ____ of the Business Professions Code constitute the foundation for most license suspensions and revocations.

10176, 10177

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

1917

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

60

False promise

A false statement about what the promisor is going to do

Misrepresentation

A false statement of fact