Practice

Listings

Open listing

Many Brokers

Exclusive Agency Listing

Seller reserves right to sell

Exclusive Right-to-Sell Listing

Exclusive Authorization and Right to Locate Property (Buyer Listing)

29 Codes

State Constitution

Article 4

Creating Bills

Statutes

Business and Professions Code

Department of Real Estates

Real Estate Commissioner

California Code of Regulations

investigate non-licensed persons, can discipline licensed persons

Promulgate rules for licensees

Assisting Buyer or Seller

handing out sales brochures

Property Management

Answering detailed real estate financing questions

Buying or Selling 8 or more loans in a year

Criminal Prosecution - local DA

Civil Code

Real Estate law non-licensee

Commissions

Can be shared with an unlicensed buyer

Brokerage

Agents need employment agreement

Keep 3 years

All must have Workers Compensation

Can pay finder fee to non-licensee

Termination

License must be returned

3 Business days

Trust Ledger

Trust Account

Deposit within 3 Business Day

If business takes place before 3 days no account necessary

Unless buyer

I writing direct a check not be cashed

Until accepted

Any employee authorized by may make withdrawals

unlicensed must bond

License

Every 4 years

1st time renewal

45 hours

subject: Ethics, Agency, Trust Fund Handling, Fair Housing

18 hours consumer protection

15 hours customer service

New course in Risk Management

Subsequent Renewals

45 hours

subject: Ethics, Agency, Trust Fund Handling, Fair Housing

15 hours customer service

18 hours consumer protection

New course in Risk Management

Now 3 courses

Real Estate Principles

Real Estate Practice

One other College level course

Temporary 150 days

Release Child support or Suspended

licensee has 2 years grace for expired

If after; test must be retaken

Advertisement

Trust Deeds

Must specify interest and discount from actual balance

Secured Trust Deeds

Disclose the extent to which it is secured

Gifts

to everyone

must announce attendance is necessary

Blind Advertisement

Must disclose that agent represents seller

Must disclose he is an agent

Must include Broker's name

Deceptive Ad

Move right-in

False implication

800-for-loans

Misleading map

Puffing

making a claim that reasonable person relies upon to buy

Ethics

NAR members

obey Realtor' Code of Ethics

Business and Professions Code

Any improper act

illegal

net Listings - Options - Guaranteed Sales

OK with disclosures

Violations

$10,000

six month jail

loss of license

Commissioner must serve licensee with a Accusation

Misrepresentation

Most are innocent, negligent or fraudulent

False Promise

Undisclosed Dual Agency

Commingling

Secret Profits

Kickbacks

Advanced Fees

DRE approval prior

No DRE approval needed

Credit Report

Appraisal

give full accounting to seller

Must not contain a selling guarantee

Special Rules

negotiated loans

Broker to record Trust Deed

Before escrow releases funds

if lender authorizes early funding

broker must give lender recommendation to record

10 days

Broker servicing as loan

may retain funds in Trust Account

at most 25 days without lender authorization

Mobile Homes

licensee cannot sell new mobile homes

Used OK to sell

Once registered OK to sell new

No Down is illegal

48 hours to remove ad after sale

Business Opportunities

Personal Property

Bill of Sale to transfer

Buyer to request Certificate of Clearance from State Board of Equalization

Fixtures and Furniture

Subject to Sales Tax

Good will and Inventory

Not subject to sales tax

Uniform Commercial Code

Financing Statement

Gives public notice to creditors of Trade Fixtures

Filed with Secretary of State

Release or Termination Statement

Release from Creditors

Bulk Sales

When Selling all inventory to on Buyer

Prevent fraud against Creditors

Buyer to file Notice of intent to Sell in Bulk

and advertise

13th amendment 1865

Jones vs. Mayer 1968

Anti discrimination

Federal Title VIII 1968

Anti Discrimination in housing

Federal Fair Housing Act

Complaint filed with HUD for up to one year

Ad Retireee's Dream Home violates HUD guidelines

Federal Open Housing Law

Enforced US Attorney General when conspiracy

Federal Equal Credit opportunity

California State Law

Rumford Act

Owner to complete rental of Sale

or provide next available unit

Liable for civil damages and $1000 punitive

Unruh Civil Act

prohibits discrimination in Business

Holden Act

Prohibits discrimination by lenders [redlining]

Mandated Disclosures

Easton V. Strassburger; led to the TDS

Fill out during listing

Listing and selling agent must inspect

If seller does not give buyer TDS

Agent to notify buyer of TDS right

Broker who procured the offer

must deliver TDS to buyer ASAP

Rights of buyer

If TDS is delivered after the offer

In person; Seller has 3 days to terminate offer

By mail; Seller has 5 days after delivery to terminate

Environmental Hazards

Give the seller the Environmental Hazard Pamphlet

Lead

EPA pamphlet 'Protect Your Family From Lead

for Target home pre 1978

Asbestos

Radon

Natural Hazard Disclosure Statement

Special Flood Zone

FEMA

Potential Flooding

e.g. Dam Break

Fire Hazard

Wild-land Area

e.g. forest fires

Earthquake Fault Zone

Seller and broker must disclose to buyer

Seismic Hazard Zone

Earthquake Safety Guide

Homeowner's Guide; for homes built 1960

Commercial Property Owner's Guide

Masonry floor and roof before 1975

Death Disclosure

less then three years

miscellaneous

Promotional Note

Real Property Securities

Regulates less then 3 year old subdivision

Liens on Parcels of subdivision

Quarterly Reports by Broker

When assisting with leases or sales of federal lands

Department of Forestry

Rural lands declared state responsibility

Flood Hazard Report

frequent flooding

Less then 10years