CALIFORNIA INTERACTIVE STUDY GROUP UNIT 7: BOBRA TAHAN HOWARD HARRIS PRACTICE OF REAL ESTATE

Transcription

1 CALIFORNIA INTERACTIVE STUDY GROUP 1 UNIT 7: BOBRA TAHAN HOWARD HARRIS PRACTICE OF REAL ESTATE

2 Notes for Tonight 1. Chat is the best way to communicate questions. 2. You can use the quick link at to log in and see each weeks topics. 2

3 CONTACT INFORMATION 3 Both Bobra Tahan and Howard Harris have access to this account: releadinstructorca@brightwood.edu If you would like to discuss something on the phone, please send your phone number in the and the best times to reach you.

4 Unit 7: Practice of Real Estate TOPICS TO BE DISCUSSED: Fair Housing Laws Permitted Activities of Unlicensed Sales Assistants Ethics California Real Estate Recovery Fund Licensing and Continuing Education Property management BRE Discipline 4

5 QUESTION 5 The Real Estate Commissioner is authorized to collect penalties for victims of licensees. A. Collect penalties for victims B. Fine licensees for the BRE general fund C. Collect judgments due from licensees to private parties D. Restrict licenses

6 ANSWER D. The BRE cannot fine a licensee for any purpose. 6 If a private party has a judgment against a licensee the BRE recovery fund may make a payment towards that judgment on behalf of the licensee. If it does so, the BRE may make steps to collect it s money back; however, the BRE does not attempt to collect a judgment on behalf of a private party. The BRE may restrict a license in any way it seems reasonable

7 QUESTION 7 A seller tells a broker that the seller wishes to exclude certain races from purchasing the seller s home. After explaining that racial discrimination is unlawful, the broker takes the listing. Taking this listing is A. proper. B. improper. C. recommended for all D. part of an agents fiduciary duties.

8 ANSWER 8 B. improper. If a broker knows a seller wants to engage in racial discrimination, the broker should not take the listing. Racial discrimination potentially is unlawful according to several laws: Federal Civil Rights Act of 1866; Federal Fair Housing Act; California Fair Employment and Housing Act; etc.

9 QUESTION The BRE requires which of the following between brokers and their associate licensees? 9 A. Oral employment contract B. Written employment contract C. Written independent contractor agreement D. Either C or D

10 ANSWER B. 10 The BRE considers agents to be employees of the broker and that there be a written employment agreement between a broker and associate licensees. That agreement may allow for the employee to be paid as if they are an independent contractor.

11 QUESTION A licensee that does not complete its continuing education within the 4 year time limit: 11 A. May continue to work as a licensee during their 2 year grace period B. Has their license immediately cancelled C. Has their license immediately revoked D. May continue to work for 30 days so long as they inform clients of their license status

12 ANSWER 12 B. The license is cancelled The grace period of 2 years is only to regain your license without retaking the state exam, no work can be done during this time regardless of any disclosures made to anyone. The term revoked is not used by the BRE.

13 QUESTION The Real Estate Law is found in the: 13 A. CA Business and Professions Code B. CA Civil Code C. CA Code of Civil Procedures D. CA Penal Code

14 ANSWER 14 A. The Real Estate Law is just a common term for a division of the California Business and Professions Code (codes are statutes grouped by topic). Licensees must observe ethical conduct as provided for in the California Business and Professions Code.

15 QUESTION If a person has not paid child support, the state 15 A. Will still issue a full four-year license. B. May issue a 150-day conditional license. C. Will always refuse to issue either a full or conditional license. D. The license will be revoked

16 ANSWER B. may issue a 150-day conditional license. 16 The Bureau of Real Estate will not issue or renew full fouryear licenses to persons who are in arrears on child support. However, the Bureau of Real Estate may issue a 150-day conditional license: This automatically will be suspended (not revoked) after 150 days unless evidence is provided that the child support arrearages have been paid.

17 QUESTION If a consumer receives payment from the state s real estate recovery account, the licensee s license will be: 17 A. Cancelled B. Revoked C. Suspended until the licensee reimburses the fund. D. Left intact so the agent may earn money to repay the fund

18 ANSWER C. 18 Consumers potentially can receive payments from the state s real estate recovery account for certain judgments against licensees that are uncollectible. However, a licensee s license is suspended until the licensee reimburses the fund.

19 QUESTION 19 The maximum that could be paid out from the real estate recovery account is A. $50,000 per transaction. B. $250,000 per licensee. C. There are no limits D. Both A and B.

20 ANSWER 20 C. both A and B. Recovery account payments are subject to two different caps: $50,000 per transaction; and $250,000 per licensee

21 QUESTION An unlicensed assistant is permitted to: 21 A. Solicit clients for a real estate licensee. B. Schedule home inspections C. Prepare simple disclosure forms for client signatures D. Answer telephonic calls about a property s availability

22 B. ANSWER Unlicensed assistants may only perform acts which do not require a real estate license. Examples: schedule meetings with inspectors, data entry, etc. Thus, unlicensed assistants: Must refer all questions about the property (including listing price) to a licensee. Must not solicit potential clients. If an unlicensed assistant does any act which requires a license (e.g., soliciting clients), both the unlicensed assistant and the licensee potentially are liable. 22

23 QUESTION If a property is to have a structural pest control inspection, an unlicensed assistant cannot 23 A. Arrange for and order the inspection. B. Let the inspector onto the property. C. Order repairs. D. Provide information about the property.

24 ANSWER D. Provide information about the property. 24 If a property is to have a pest control inspection, an unlicensed assistant can, arrange for and order the pest control inspections, let the inspector onto the property and order repairs. However, an unlicensed assistant cannot provide information about the property to complete the report this must be provided by a licensee.

25 QUESTION With regards to advertising, an unlicensed assistant can: 25 A. Prepare, design, and approve advertising prior to its publication B. Prepare, design and place an ad on their own C. Place an ad on their own if that ad had previously been run and the assistant knows that it is time to place another ad D. None of the above

26 D. ANSWER An unlicensed assistant can prepare and design advertising. However, a licensee must approve advertising prior to every publication. 26 An unlicensed assistant cannot approve an ad nor can they place and ad that has not been approved by a licensee.

27 QUESTION 27 Property management fees generally are: A. Charged as a percentage of the gross income B. Charged as a percentage of the net income C. Charged as a percentage of the increased income from the prior period D. Paid as a flat rate

28 ANSWER A. 28 Property management fees generally are charged as a percentage of gross income. Like commissions, they are negotiable between the property owner and property manager.

29 QUESTION Who pays the property expenses in a net lease the 29 A. Landlord. B. Tenant. C. Vendee D. Vendor

30 ANSWER B. Tenant. 30 In net leases: Tenants pay a fixed amount of rent plus some or all property expenses over the lease term. Landlords receive a guaranteed specific net income. In gross leases: Tenants pay a fixed amount of rent over the lease term. Landlords pay all property expenses (e.g., maintenance, taxes, insurance, etc.)

31 QUESTION 31 A California broker can pay a commission to:. A. Any associate licensee of theirs B. Any broker licensed in another state C. Any broker licensed in California D. All of the above

32 ANSWER D All of the above 32 Any licensee working for the broker may be paid a commission by that broker. A California real estate broker can pay an out of state real estate broker a commission. Any broker licensed by California may be pair a commission by any other California broker. A California broker may not pay a commission to an associate licensee of another broker.

33 QUESTION 33 A purchaser of a business that is required to collect sales tax discovered after the close of escrow that the previous owner collected the sales tax but did not send it to the State Board of Equalization, may end up with a tax liability called A. Primary liability. B. Successor liability. C. Secondary liability D. Buyers remorse

34 B. successor liability. ANSWER 34 A purchaser of a business that is supposed to collect sales tax may end up with a tax liability called successor liability. If the seller collected sales tax and did not pay it to the state, the state Board of Equalization potentially could enforce this obligation on the new purchaser as a successor to the seller. A seller s permit from the state Board of Equalization should show what is owed. Include a provision for the amount to be held in escrow until the state Board of Equalization provides a tax clearance.

35 QUESTION 35 Brokers must reconcile their trust accounts on a basis. A. Daily B. Weekly C. Monthly D. Quarterly

36 ANSWER 36 C. Monthly Brokers are responsible to maintain adequate trust account records. Trust account records must be reconciled monthly.

37 QUESTION 37 A broker must keep a trust account record of: A. A check that they cash for the account of their client B. A check that they hold, uncashed on behalf of their client C. A check that their client deposits with escrow on behalf of a transaction they are an agent for D. Both A and B

38 D. ANSWER 38 Brokers have to maintain records of all trust funds that pass through the brokers hands. This is true whether or not they cash the check. A broker would not have to keep a record of deposits a buyer: deposits directly into escrow; or gives directly to a seller.

39 QUESTION Inducing people to sell their homes because of entry into the neighborhood of members of protected classes is called 39 A. Blockbusting/panic selling. B. Steering. C. Redlining. D. Stigmatizing property.

40 ANSWER 40 A. blockbusting/panic selling Blockbusting (or panic selling) is the illegal practice of playing on people s fears and prejudices: To induce them to list their homes. Due to the prospective entry into neighborhoods of members of protected classes (e.g., race, color, religion, etc.) Steering is channeling people to or away from particular areas as a means of discrimination. Redlining is limiting or refusing to offer loans in certain areas. Stigmatized property has to do with something that occurred on the property.

41 CONTACT INFORMATION 41 Both Bobra Tahan and Howard Harris have access to this account: If you would like to discuss something on the phone, please send your phone number in the and the best times to reach you..