Contracts, 12% of the examination
Advance fee
A fee collected before services are rendered for promoting the sale or lease of property.
The advance fee agreement and all related materials must be submitted to the Commissioner at least ten calendar days before use. The funds are trust funds and must be handled as such, and the broker must give the principal a verified accounting at least quarterly. These rules exist because of historical abuse in listing-for-a-fee schemes and are distinctly Californian.
See it in a question
One question from Contracts, so the term lands in the context the exam uses it in.
A seller receives an offer and returns it signed, having changed the closing date. What has the seller legally done?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.