Under California Business & Professions Code §10130, what is prohibited for any person who has not first obtained a real estate license from the Department of Real Estate?
A. Owning investment real property in California
B. Engaging in, advertising as, or assuming to act as a real estate broker or salesperson
C. Purchasing a home for personal use
D. Serving as a witness on a real estate contract
Show answer and reasoning
Correct answer: B. Engaging in, advertising as, or assuming to act as a real estate broker or salesperson
- A: Owning property is not a licensed activity; §10130 regulates conduct performed for others, not property ownership.
- C: Buying a home for one's own use is a private transaction and does not require a real estate license.
- D: Witnessing a signature is a ministerial act, not one of the licensed activities §10130 addresses.
Source: California Business & Professions Code §10130 — makes it unlawful to act as, advertise as, or assume to act as a real estate broker or salesperson in California without first obtaining a license from the Department of Real Estate; https://law.justia.com/codes/california/code-bpc/division-4/part-1/chapter-3/article-1/section-10130/
Under Business & Professions Code §10131, a 'real estate broker' is a person who does which of the following?
A. Manages a broker's own personally owned rental units without compensation from others
B. For a compensation or in expectation of a compensation, does or negotiates specified real estate acts (such as selling, leasing, or arranging loans) for another
C. Only appraises residential property for lenders
D. Files property tax assessment appeals on behalf of the county assessor
Show answer and reasoning
Correct answer: B. For a compensation or in expectation of a compensation, does or negotiates specified real estate acts (such as selling, leasing, or arranging loans) for another
- A: Self-managing one's own property for one's own account is not an act 'for another' and falls outside §10131.
- C: Appraisal for lenders is a separate licensed profession (real estate appraiser) governed by a different part of the Business & Professions Code.
- D: County assessor functions are governmental duties, not activity performed by a licensed real estate broker for a client.
Source: California Business & Professions Code §10131 — defines a 'real estate broker' as a person who, for compensation or expectation of compensation, performs specified acts (sale, lease, exchange, loan negotiation, etc.) for another; https://california.public.law/codes/ca_bus_and_prof_code_section_10131
According to Business & Professions Code §10132, a real estate salesperson performs licensed acts under what condition?
A. Independently, without any broker affiliation, once the salesperson exam is passed
B. Only after also obtaining a broker license
C. Only when acting as an escrow officer
D. While employed by, and acting under, a licensed real estate broker
Show answer and reasoning
Correct answer: D. While employed by, and acting under, a licensed real estate broker
- A: A salesperson license in California cannot operate independently; the statute requires employment by and action on behalf of a licensed broker.
- B: A broker license is a separate, higher license tier with its own experience and education requirements; a salesperson license does not require it.
- C: Escrow is a distinct licensed function regulated separately from real estate sales activity.
Source: California Business & Professions Code §10132 — defines a 'real estate salesperson' as a natural person who, for compensation, is employed by a licensed real estate broker to perform the acts described in §10131 and related sections; https://law.justia.com/codes/california/code-bpc/division-4/part-1/chapter-3/article-1/
Under Business & Professions Code §10133, which of the following is expressly exempt from the requirement to hold a real estate license when performing the described function?
A. A property management company advertising rentals to the public for a fee
B. A mortgage loan originator negotiating loans for multiple unrelated borrowers
C. A real estate marketing company producing listing flyers for multiple brokers
D. An attorney at law rendering legal services to a client
Show answer and reasoning
Correct answer: D. An attorney at law rendering legal services to a client
- A: A property manager who leases units to the public for compensation is performing a licensed act, not an exempt one.
- B: Negotiating loans secured by real property for compensation is itself a licensed broker act; loan originators need their own license/endorsement.
- C: Producing marketing materials for multiple brokers as a business is not one of the narrow exemptions listed in §10133.
Source: California Business & Professions Code §10133 — lists exemptions from real estate licensing requirements, including attorneys at law rendering legal services to a client; https://law.onecle.com/california/business/division-4/part-1/chapter-3/article-1/index.html
Under Business & Professions Code §10139, an individual who knowingly acts as a real estate broker or salesperson without a license can face which penalty?
A. Only a written warning from the Department of Real Estate on a first offense
B. Automatic revocation of any future application, with no fine or jail exposure
C. A civil lawsuit only, since unlicensed practice is not a criminal matter
D. A fine of up to $20,000, imprisonment in county jail for up to six months, or both
Show answer and reasoning
Correct answer: D. A fine of up to $20,000, imprisonment in county jail for up to six months, or both
- A: §10139 provides for criminal fines and/or jail time, not merely a warning.
- B: §10139 does not describe a permanent application ban as the remedy; it imposes fine and/or imprisonment.
- C: Unlicensed practice under §10139 is expressly a criminal offense, not solely a civil matter.
Source: California Business & Professions Code §10139 — sets criminal penalties for acting as an unlicensed real estate broker or salesperson (up to $20,000 fine and/or up to six months in county jail for an individual; up to $60,000 fine for a corporation); https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=10139
