Broker fees deposited with the broker before they are earned are called:
Correct Answer
B) advance fees.
The correct answer is B, advance fees, because California law (Business and Professions Code §10026) explicitly defines an advance fee as any fee, regardless of its form or name, that is collected before the services for which it is paid are fully rendered. The California Department of Real Estate (DRE) requires that advance fee agreements be submitted to the DRE for approval before use, and funds must be deposited into a trust account, underscoring the special regulatory status of these pre-earned payments.
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Broker Chuck listed a duplex for sale from a corporate owner. After entering into the listing, the officers of the corporation die in a plane crash. What happens to the listing?
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Broker Sarah delivered an offer to purchase real property to Owner Martha. Owner Martha asked for 24 hours to consider the offer. Later that same day, Broker Sarah received two additional offers through other brokers. Broker Sarah believes the owner will reject all three offers. In order to comply with the law, Broker Sarah is to: