Questions and Answers
The _____ oversees, regulates, administers and enforces the real estate law.
Department of Real Estate (DRE)
To be eligible for an agent license, the applicant needs to complete mandatory education, pass the qualifying exam and _____.
make the application on the proper form prescribed by the DRE
Brokers and agents are required to complete a minimum of _____ of continuing education (CE) every four years to renew a license issued by the Department of Real Estate (DRE).
45-Hours
A fictitious business name license, also known as a _____, will be granted to a broker who has complied with the filing requirements.
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A _____ is the sale or lease of the operations and goodwill of an existing business enterprise or opportunity.
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The _____ compensates individuals who have obtained a judgment against a licensee and are unable to recover the judgment from the licensee.
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Agency in real estate related transactions includes relationships between brokers and their:
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The Agency Law Disclosure needs to be attached to which of the following documents and signed by all parties in targeted transactions? (Select all that apply)
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A(n) _____ exists when an agent has a positive or negative bias toward an opposing party in a transaction which might hinder their ability to fully represent the needs of their client.
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A broker who simultaneously represents the best interests of opposing parties in a transaction is known as a:
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When a dual agency is established in a one-to-four unit residential sales transaction, the broker may not:
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_____ are funds belonging to others which a broker and their agents handle when acting in a transaction.
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While the federal Civil Rights Act provides general protection against all prohibited discriminatory activity, the _____ protections are specifically limited to dwellings, including rental housing.
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The restriction of a person seeking to buy or rent housing in a manner that perpetuates segregated housing patterns is referred to as:
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_____ refers to the failure of lenders to provide financing in certain targeted communities.
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Under the _____ lenders are required to compile and submit home loan origination data to supervisory agencies.
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A broker prudently refuses to use phrases that indicate a preference in advertising, such as: (Select all that apply)
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A property defect which affects the price a buyer would be willing to pay for a property is referred to as:
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A seller's broker and their agents have a _____ owed solely to the seller who has employed the broker, to diligently market the listed property for sale.
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A seller of a one-to-four unit residential property delivers a mandatory statutory form to prospective buyers called a(n):
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_____ are noxious or annoying conditions which are man-made hazards that are injurious to health or interfere with an individual's sensitivities.
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The use of a(n) _____ to prepare a Natural Hazard Disclosure Statement (NHD) relieves the seller's agent of any liability not known to the agent to exist.
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The Natural Hazard Disclosure Statement (NHD) discloses whether the seller has knowledge the property:
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The federal lead-based paint (LBP) disclosure needs to be delivered by the seller of residential property constructed:
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Study Notes
Real Estate Principles Overview
- The Department of Real Estate (DRE) regulates and enforces real estate laws.
- Applicants for an agent license must complete mandatory education, pass the qualifying exam, and submit a proper application to the DRE.
- Brokers and agents must complete 45 hours of continuing education every four years to renew their licenses.
Business Licensing and Operations
- A fictitious business name license, or DBA (Doing Business As), is granted to eligible brokers who meet filing requirements.
- A business opportunity involves the sale or lease of operations and goodwill of an existing business.
- The Real Estate Recovery Fund compensates individuals with judgments against a licensee who cannot recover their judgment.
Agency Relationships and Disclosure
- Agency relationships in real estate transactions involve brokers and their clients.
- The Agency Law Disclosure must be attached to purchase contracts, seller's listing agreements, and lease agreements exceeding one year, requiring signatures from all parties.
- A conflict of interest occurs when an agent shows bias toward one party that could hinder client representation.
- Dual agency occurs when a broker represents opposing parties simultaneously.
Confidentiality and Obligations
- In dual agency scenarios, brokers cannot disclose confidential pricing information to opposing parties.
- Trust funds refer to funds held by brokers and agents during transactions belonging to others.
Fair Housing and Discrimination Laws
- The Federal Fair Housing Act (FFHA) provides specific protections in dwellings, including rental housing.
- Steering refers to the practice of directing individuals toward certain neighborhoods to perpetuate segregation.
- Redlining is the practice where lenders refuse to provide financing in specific communities.
- The Home Mortgage Disclosure Act (HMDA) mandates lenders to report home loan origination data.
Ethical Advertising and Material Facts
- Brokers should avoid using language in advertising that shows preference for specific populations.
- A material fact is any property defect that could affect a buyer's willingness to pay.
Duties and Disclosures in Residential Sales
- A seller's broker holds a fiduciary duty to diligently market the property exclusively for the seller.
- The Transfer Disclosure Statement (TDS) is a mandatory form provided to prospective buyers of one-to-four unit residential properties.
- Environmental hazards are defined as man-made conditions harmful to health or sensitivities.
Natural Hazard and Lead-Based Paint Disclosures
- A Natural Hazard Disclosure Statement (NHD) is prepared to inform buyers of any known hazards, exempting agents from liability for unknown issues.
- Sellers of residential properties built before 1978 must provide a lead-based paint disclosure to potential buyers.
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Test your knowledge of real estate principles with these online flashcards. Covering key terms and definitions related to licensing and regulations, this quiz aims to help you prepare effectively for your real estate exam.
