California Real Estate Broker License Examination

Under 10131(d) the broker negotiates loans or solicits on behalf of others for compensation, while under 10131.1(a) the broker engages in buying, selling, or making loans from their own funds directly with the public.

A salesperson may be authorized to withdraw from a trust account without special bonding, but an unlicensed employee may only do so if the broker maintains a fidelity bond or insurance equal to the maximum trust funds to which that employee has access at any time.

A standard trust fund account holds funds belonging to others in connection with real estate transactions, while an advance fee trust account specifically holds fees collected from a principal before services are rendered, and withdrawals are only permitted when actually expended for the principal's benefit or five days after verified accounts are mailed.

Authorizing a salesperson or other person to make trust fund withdrawals does not relieve the broker of legal responsibility or liability for handling those trust funds; the broker remains fully liable regardless.

For general violations the accusation must be filed within three years of the occurrence, but when fraud, misrepresentation, or false promise is involved the period may extend but in no case beyond ten years from the occurrence.

Both surrender and lapse/suspension do NOT deprive the DRE of jurisdiction to continue investigations or disciplinary proceedings, but a surrendered licensee can only be relicensed by petitioning for reinstatement under Government Code Section 11522.

Approved Fannie Mae lenders and authorized loan correspondents of savings and loan associations are exempt from Articles 5 and 7 only when making qualifying loans for those entities, while a person licensed as a finance lender acting under that license is exempt from Sections 10131(d), 10131(e), 10131.1, Article 5, and Article 7.

Unlicensed employees may show units, accept signed leases, provide preprinted applications, accept deposits, and quote rental rates from an employer-provided schedule, but they may NOT negotiate lease terms, independently set rental rates, or act without reasonable supervision and control of a broker.

A broker may charge a fee for negotiating a loan modification only after providing the required 14-point bold disclosure, but is prohibited from taking any power of attorney, any lien on real or personal property, or any wage assignment as security for that fee.

Interest earned on a trust fund deposited in an interest-bearing account at the principal's request shall NOT inure directly or indirectly to the benefit of the broker or any person licensed to the broker, even with a written agreement; the account must be held in the broker's name as trustee for the designated principal.