The Real Estate Commissioner may discipline a licensee for the conduct described in Business and Professions Code §§10176 and 10177. Which of the following would NOT be grounds for disciplinary action?
Correct Answer
C) Paying part of a commission to another California broker who referred the client
Sharing a commission with another licensed broker for a referred client is lawful. B&P §10137 bars a licensee from paying compensation for licensed activity only to persons who are not licensed, and federal law expressly excepts cooperative brokerage and referral arrangements between real estate agents and brokers from the anti-kickback rule (12 U.S.C. §2607(c)(3)). The other three are disciplinable: advertising under a false or fictitious name and making a material misstatement on a license application fall within §10177, and §10177.4 lets the Commissioner suspend or revoke the license of a licensee who takes a fee for referring customers to an escrow agent — a fee that disclosure and consent do not cure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
More Practice Of Real Estate Disclosures Questions
Under California law, a real estate agent owes a duty of honest and fair dealing to all parties in a transaction, not only to the agent's own client. Which provision most directly establishes this duty?
A landlord is required to provide a copy of the written lease to the tenant within:
A California-licensed salesperson uses the title 'Real Estate Consultant' on business cards and marketing materials without holding any special certification or designation. Under DRE regulations, this practice is:
Barnard made an offer to buy a vacant residence. The offer was accepted by the seller. Prior to the close of escrow, Barnard requested permission from the broker to enter and make minor repairs to the house. Which of the following is true?
Most common business structure for one individual:
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- → At a DRE administrative disciplinary hearing in California, what standard of proof must the Department meet to sustain a finding against a licensee?
- → The Transfer Disclosure Statement requires sellers to disclose various known property conditions under California Civil Code §1102 et seq. All of the following must be disclosed on the TDS EXCEPT:
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- → A California salesperson receives a $3,000 earnest money deposit from a buyer on Tuesday morning. The salesperson does not deliver the funds to the broker until the following Monday. Under California trust fund rules, has a violation occurred?
- → A California property owner in a Mello-Roos CFD discovers that the bond proceeds were mismanaged by the CFD administrator and the planned community park was never built, even though property owners have been paying the special tax for 10 years. What legal recourse does the property owner have?
- → Which of the following correctly describes California's mandatory fair housing continuing education requirement for real estate license renewal?
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