Real Estate Principles Flashcards

Questions and Answers

The California Legislature created the __________ to oversee, regulate, administer and enforce the real estate law.

California Department of Real Estate (DRE)

The chief officer of the California Department of Real Estate (DRE) is the:

Governor of California

President of the United States

Real Estate Commissioner (correct)

Real Estate Solicitor

To be eligible for a broker or agent license, the applicant needs to be honest and truthful, complete mandatory education and:

provide proof of legal presence in the U.S

be at least 21 years of age

have previously worked as an unlicensed assistant

pass the qualifying exam (correct)

All real estate brokers and agents need to complete at least __________ of continuing education (CE) every four years to renew a license issued by the California Department of Real Estate (DRE).

45 hours Signup and view all the answers

The __________ is available to individuals who have obtained a judgment against a licensee and are unable to recover the judgment from the licensee for losses caused while acting as an agent.

Real Estate Recovery Fund Signup and view all the answers

A residential mortgage primarily for personal, family or household use and secured by a deed of trust on a dwelling is known as a:

consumer purpose mortgage Signup and view all the answers

Agency in real estate related transactions includes relationships between brokers and their:

Both a. and b. Signup and view all the answers

A broker's representation of a client, such as a buyer or seller, is best undertaken:

on a written employment agreement signed by both the client and the broker Signup and view all the answers

The Agency Law Disclosure needs to be attached to which of the following documents and signed by all parties in targeted transactions?

All of the above Signup and view all the answers

Failure of the seller's agent to provide the seller with the Agency Law Disclosure prior to entering into the listing agreement may result in:

the loss of their fee Signup and view all the answers

A(n) _________ arises when a broker or their agent, acting on behalf of a client, has a competing professional or personal bias which hinders their ability to fulfill the fiduciary duties they have undertaken on behalf of their client.

conflict of interest Signup and view all the answers

A(n) __________ is a broker who simultaneously represents the best interest of opposing parties in a transaction, e.g., both the buyer and the seller.

dual agent Signup and view all the answers

When a dual agency is established in a one-to-four unit residential sales transaction, the broker may not:

pass on confidential pricing information to the opposing parties Signup and view all the answers

Funds belonging to others which a broker and their agents handle when acting in a transaction are called:

trust funds Signup and view all the answers

Study Notes

California Real Estate Regulation

The California Department of Real Estate (DRE) oversees real estate law enforcement and regulation.
The chief officer of the DRE is known as the Real Estate Commissioner.

Licensing Requirements

To qualify for a broker or agent license, candidates must pass a qualifying exam and demonstrate honesty and truthfulness.
Applicants must complete mandatory education and be at least 21 years old.

Continuing Education

Real estate brokers and agents must complete 45 hours of continuing education every four years for license renewal.

Real Estate Recovery Fund

The Real Estate Recovery Fund assists individuals who have obtained judgments against licensees and are unable to recover losses caused by the licensee's actions.

Mortgage Terminology

A consumer purpose mortgage is a residential mortgage secured by a deed of trust mainly for personal, family, or household use.

Agency Relationships

Agency in real estate encompasses relationships between brokers and their principals as well as agents.
A broker's representation requires a written employment agreement signed by both parties.

Agency Law Disclosure

The Agency Law Disclosure must accompany purchase agreements, seller's listing agreements, and counteroffers, requiring signatures from all parties involved.

Consequences of Non-Disclosure

Failure to provide the Agency Law Disclosure to the seller may result in the loss of the seller's agent's fees.

Conflict of Interest

A conflict of interest occurs when a broker or agent has competing biases that disrupt their fiduciary responsibilities to their client.

Dual Agency

A dual agent represents both the buyer and seller in a transaction and is prohibited from sharing confidential information between the parties.

Confidential Communication

Brokers in a dual agency cannot communicate with one party without the express consent of the other.

Trust Funds

Trust funds refer to funds belonging to clients that brokers and their agents manage during transactions.
Brokers must regularly account to owners regarding the status and location of these negotiable trust funds.

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Description

Test your knowledge on key concepts from real estate principles with these flashcards. This quiz specifically covers regulations and terminology related to the California Department of Real Estate. Perfect for students preparing for their real estate licensing exams.