Real Estate Express California Principles Exam Solved 100%

Is it permissible to advertise real estate associated services or products in California without a California real estate license? - Answer Yes, as long as the products or services do not include any actions for which a California real estate license is required. Which regulation or section(s) apply to the use of the Internet for advertising in California? - Answer Commission's Regulation 2770-- sets forth regulations regarding both advertising and doing real estate business over the Internet for individuals licensed in California and those not licensed in California. Gerard, a Nevada real estate licensee, has been advertising his services online to California citizens. He sells resort property outside Las Vegas and believes the California market could be very lucrative. Is it permissible for Gerard to advertise in this manner? Why or why not? - Answer It is not permissible for Gerard to solicit California residents. He must hold a California real estate license in addition to his Nevada license. Anyone who is NOT a California licensed broker may not legally solicit California residents, because acting in such a capacity is considered conducting activity for which a real estate license is required. Penny, a California licensee, has been advertising on the Internet. She specializes in the sale of upscale homes in the Hollywood Hills area. Penny has been violating the Business and Professions Code, Sections 10235.5 and 10140.6. What has she done? - Answer Penny failed to indicate in the advertisement her license status. Which portion of the California Business and Professions Code consists of the Subdivided Lands Law? - Answer Part 2, Sections 11000 to 11200 of the Business and Professions Code 3 types of legal descriptions: - Answer 1. Lot and Block system. 2. The Metes and Bounds system 3. The Rectangular Survey System 3 types of legal descriptions: Lot and Block system. - Answer This legal description lists the lot, block, subdivision, county, city, and state. Specifically, this method lists lot and block numbers that refer to a recorded subdivision plat map located in the public records of the county in which the land is located. If a parcel of land is described using this method, it is necessary for there to be a PLAT MAP to locate the parcel. Any question you might see here or on the real test concerning the best example of a "Legal description," based on the " Lot and Block" system, should be answered without including the address of the property. (Lot 12, Block 6, Quiet Village Subdivision, etc.) 3 types of legal descriptions: The Metes and Bounds system - Answer is sometimes used to describe irregular pieces of property or in areas where a lot and block system is not in place. A description starts at a designated place on a parcel called a Point of Beginning (POB) and proceeds around the outside of the tract by reference to linear measurements and directions. Monuments are fixed objects used to establish real estate boundaries. A property description using the metes and bounds system must BEGIN AND END at the point of beginning (the same identifiable point). If the description does not meet these guidelines, it is not a valid description. 3 types of legal descriptions: The Rectangular Survey System - Answer This system is based on sets of intersecting lines. -Principal Meridians run north and south. -Base Lines run east and west. -Township lines are lines running east and west, parallel with the base line and six miles apart. -Range Lines are lines on either side of a principal meridian and are divided into six-mile-wide strips by lines that run north and south parallel to the meridian a township - Answer is a 36-square-mile area formed by the intersection of a township and range lines. Each township square is divided into 36 Sections, each one mile square. California has 3 sets of base lines and meridians: - Answer 1. The Humboldt Base Line and Meridian in the northwestern part of the State; 2. The Mt. Diablo Base Line and Meridian in the central part of the State; and 3. The San Bernardino Base Line and Meridian in the southern part of the State. 2 California subdivision laws are: - Answer 1. Subdivision Map Act, found in the Government Code, Sections 66410 2. Subdivided Lands Act, found in the Business and Professions Code, Sections . The term "subdivision" includes all of the following: - Answer A condominium project, a community apartment project, or the conversion of five or more existing dwelling units to a stock cooperative. The Subdivision Map Act - Answer This act regulates the DIVISION of 2 or more lots for the purpose of selling, leasing, or financing said lots, either at that time or in the future. is administered by LOCAL OFFICIALS, and focuses on the PHYSICAL aspects of a subdivision, including: The streets; The design of the subdivision; The sewers; and Other details that fall into the "physical aspects" category. the subdivision map act and the subdivision land's act define a "subdivision" differently. what is the key difference? - Answer the subdivision map act defines a subdivision as having 2 or more lots the subdivision land's act defines a subdivision as a division of land into 5 or more lots for the purpose of selling, leasing, or financing, whether now or in the future. Before each lot in a new subdivision may be sold, the subdivider must deliver a copy of the __________________ to the prospective buyer, who must then sign a statement attesting that he has read the __________________. This statement must be kept on file by the subdivider for ___________ years. The _________________ is valid for _________ years It is ONLY after ALL of the preceding steps have been completed that the subdivider can sell each lot. - Answer Before each lot in a new subdivision may be sold, the subdivider must deliver a copy of the COMMISSIONER'S PUBLIC REPORT to the prospective buyer, who must then sign a statement attesting that he has read the PUBLIC REPORT. this statement must be kept on file by the subdivider for 3 YEARS. the PUBLIC REPORT is valid for 5 YEARS. A land project - Answer A "major" development, or subdivision of 50 or more vacant lots that are located in a rural area that has fewer than 1,500 registered voters within 2 miles land project: Interstate Sales Full-Disclosure Act - Answer This federal law regulates land sales between two or more states. If a developer of 50 or more lots wants to advertise his development in another state or states, he must obtain a public report from the United States Department of Housing and Urban Development (HUD), and then deliver a copy of this report to each prospective buyer. intended to reduce the fraudulent land sales that tend to take place via mail or out-of-state advertising. Under this law, out-of-state buyers have 7 days after receiving the public report to rescind the contract. 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? - Answer be appointed by the Governor of California primary duty as Commissioner would be to enforce the laws in a manner in which maximum protection for real estate consumers is achieved. Jan failed to renew her license prior to its expiration. In order to renew her license now Jan must: - Answer 1. Submit a proper application within 2 years of her license expiration. 2. Providing evidence of the completion of current required continuing education. 3. Pay the appropriate late renewal fee. The main purpose of the California Department of Real Estate (DRE) - Answer To protect the public. 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? - Answer Sections 10176 and 10177 of the Business and Professions Code. 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? - Answer secret profit: Section 10176(g) of the Business and Professions Code covers secret profit cases where the broker, who already has a higher offer from another buyer, makes a low offer, usually through a "dummy" purchaser. The broker then sells the property to the interested buyer for the higher price, with the difference being the secret profit. The law judge has just issued a decision based upon the findings in a formal hearing of a real estate salesperson for various ethical violations. What could the California Real Estate Commissioner do at this point in the proceeding? - Answer Reject the proposed decision Accept the proposed decision Reduce the proposed penalty and make an official decision. Sections ___________ and ___________ of the ______________________ constitute the foundation for most license suspensions or revocations - Answer Sections 10176 and 10177 of the BUSINESS PROFESSIONS CODE constitute the foundation for most license suspensions or revocations Business Professions Code: Violations of Code Section 10176: - Answer 1. Definite termination date. 2. Secret profit. 3. Listing-option. 4. Dishonest dealing 5. Signatures of prospective purchasers. Business Professions Code: Violations under Section 10177: - Answer 1. Obtaining a license by fraud. 2. Convictions 3. False advertising. 4. Violations of other sections; Franchise Investment Law; Corporations Code; Securities Law; 5. Misuse of trade name. 6. Conduct warranting denial. 7. Negligence or incompetence. 8. Supervision of salespersons. 9. Violating government trust. 10. Restricted license violation. 11. Inducement of panic selling. 3 main laws, regulations, and acts all licensees should be familiar with - Answer 1. The California Real Estate LAW, which regulates licensing and subdivisions in California, can be found in the "Business and Professions Code." 2. The Commissioner's REGULATIONS are rules that are part of the California Administrative Code. These regulations have been established and are enforced by the Commissioner. 3. The Subdivided Lands Act, which is administered by the Commission. TRUE OR FALSE: if a formal hearing is necessary to resolve a violation and the administrative law judge issues a decision based upon the findings, the Commissioner must accept and comply with the law judge's decision. At that point, the respondent can no longer petition for reconsideration or appeal through the courts. - Answer FALSE. Once the administrative law judge issues a proposed decision based upon the findings, the Commissioner may reject or accept the proposed decision, or reduce the proposed penalty and make an official decision. The respondent may petition for reconsideration, and has the right of appeal through the courts. listing-option? - Answer ?? how many courses do you have to take to get your real estate broker's license? - Answer eight courses before taking the licensing exam 5 mandatory 3 elective Mandatory Broker Courses - Answer 1. Real Estate Practice 2. Legal Aspects of Real Estate 3. Real Estate Financing 4. Real Estate Appraisal 5. Accounting OR Real Estate Economics how many courses do you need to take to get your 4-year salesperson license? - Answer 3: Real Estate Principles course, the Real Estate Practice course, and ONE additional required, college-level course can a corporation be licensed as a real estate broker? - Answer A corporation may be licensed as a real estate broker, provided at least one officer of the corporation is a duly qualified real estate broker willing to act as the corporation's responsible designated broker-officer. how long is the California real estate license issued for? - Answer 4 years TRUE OR FALSE: A california real estate license is renewable without examination - Answer TRUE. A license is renewable without examination, simply upon submittal of the appropriate fee AND evidence of completion of the required continuing education. what is the continuing education requirement in california? - Answer 45 HOURS every four years to renew a license The DRE does not accept an application for license renewal earlier than ________ days prior to the expiration of the license. - Answer 60 Non-Working Status - Answer 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 that broker notifies the DRE of such. does the DRE issue original Mineral, Oil, and Gas Licenses? - Answer the DRE 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 mayapply for license renewal. John wants to research and study the requirements for the California Real Estate Examination Test. Where can she find the exam's purpose and requirements? - Answer California Business and Professions Code Section 10153 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 receive a passing score. How many times may Lydia sit through the examination in 2016? - Answer 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. John completes the Salesperson Examination Application and submits it to the California Department of Real Estate. Driving home from work, he realizes he used his old address and not his new one on the application. What should he do? - Answer Once a completed Salesperson Examination Application is submitted to the DRE, no changes of any kind may be made to the application. 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? - Answer 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. 3 Enacted laws prohibiting discrimination in the national housing market: - Answer 1. Civil Rights Act of 1866; 2. Executive Order 11063; 3. Civil Rights Act of 1968 (Fair Housing Act) "Equal Access to Housing in HUD Programs - Regardless of Sexual Orientation or Gender Identity." 4 Forms of illegal discrimination - Answer 1. Discriminatory misrepresentation and advertising; 2. Providing unequal services; 3. Steering, blockbusting, redlining; 4. Restricting MLS participation. Forms of illegal discrimination: Discriminatory misrepresentation. - Answer An agent may not conceal available properties, represent that they are not for sale or rent, or change the sale terms for the purpose of discriminating. For example, an agent may not inform a minority buyer that the seller has recently decided not to carry back second mortgage financing when in fact the owner has made no such decision. Forms of illegal discrimination: Discriminatory advertising. - Answer An agent may not advertise residential properties in such a way as to restrict their availability to any prospective buyer or tenant. Forms of illegal discrimination: Providing unequal services. - Answer An agent may not alter the nature or quality of brokerage services to any party based on race, color, sex, national origin, or religion. For example, if it is customary for an agent to show a customer the latest MLS publication, the agent may not refuse to show it to any party. Similarly, if it is customary to show qualified buyers prospective properties immediately, an agent may not alter that practice for purposes of discrimination. Forms of illegal discrimination: Steering. - Answer Steering is the practice of directly or indirectly channeling customers toward or away from homes and neighborhoods. Broadly interpreted, steering occurs if an agent describes an area in a subjective way for the purpose of encouraging or discouraging a buyer about the suitability of the area.