Shared Flashcard Set

Details

Florida Real Estate Exam
Florida Real Estate Exam (State and Practice Exam Questions)
139
Real Estate & Planning
02/09/2011

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
Developer Bob acquires a tract of land that he divides into 25 home sites. Prior to marketing the home sites, Bob must submit the subdivision plat to the
Definition

local government planning agency


The Reason: Most local governments require that developers submit a subdivision plat map of a new development to the applicable government planning agency.

Term
The term follow-up refers to
Definition

what a sales associate does for buyers and sellers after the sale.


The Reason: Follow-up is one of the best ways to ensure satisfied buyers and sellers.

Term
Even though certain exceptions apply, an active real estate licensee is legally entitled to appraise real property for compensation concerning a non federally-related transaction
Definition

long as she does not represent herself as a state-certified or licensed appraiser, and complies with USPAP


The Reason: Real estate licensees may appraise real property for compensation as long as they do not represent themselves as state-certified, registered, or licensed appraisers, and comply with the Uniform Standards of Professional Appraisal Practice (USPAP)

 

Term
The field of property management has experienced growth and specialization primarily because of
Definition

the increase in the number of absentee owners.


The Reason: The increase in absentee ownership has led to growth and specialization in the field of property management.

Term
Appraising is considered to be
Definition

an art.


The Reason: Appraising is considered to be an art, not a science, because although the appraisal process involves mathematical calculations, appraisers also use their own judgment when appraising real property.

Term
Appraisers are paid a fee because
Definition

accept compensation based on the appraised value is a conflict of interest.


The Reason: Appraisers are paid a fee, not a commission, to reduce the possibility of any conflict of interest.

Term
When a developer makes lots available for custom building in a newly developed subdivision, the overall purpose of restrictive covenants is to ensure that custom-built homes will
Definition

not decrease the value of neighboring properties.


The Reason: Developers use restrictive covenants to ensure that homes will not be built that might decrease the value of neighbor's properties

Term
The real estate activity that is devoted to leasing, managing, marketing, and overall maintenance of property for others is referred to as
Definition

property management.


The Reason: Property management is the real estate activity that is devoted to the leasing, managing, marketing, and overall maintenance of property for others.

Term
Which type of construction involves building for a specific buyer to his or her specifications?
Definition

Custom homes


The Reason: A custom builder constructs homes under contract with a buyer, often using building plans provided by architects or buyers.

Term
Sales associate Harry recently began working at All Action Realty. All Action is not a member of the local association of REALTORS. Can Harry join the association?
Definition

No, Harry cannot join the association unless All Action Realty joins the association.


The Reason: Each real estate office makes a decision regarding whether to join a local association of REALTORS. If the real estate office does not join the association, individual licensees within that office cannot join the association.

Term
The term "dedication" as it applies to development and construction refers to
Definition

a gift of land by the owner to the local government for a public use.


The Reason: Dedication is the gift of land by an owner to a government entity for a public use. For example, a developer may dedicate a portion of the subdivision to the community for use as a public playground.

Term
Residential real estate is defined in Chapter 475, F.S. as
Definition

vacant land zoned for four or fewer residential units.


The Reason: Florida statute 475 defines residential real estate as four or fewer residential units, vacant land zoned for four or fewer residential units, or agricultural property of ten or fewer acres.

Term
The real estate profession requires
Definition

skill and experience in real estate values, specialized service, and expertise.


The Reason: Real estate licensees are professionals who provide specialized service and expertise in the details of property transfer, knowledge of market conditions, and knowledge of how to market real estate or businesses.

Term
Selecting a limited geographical area in which a real estate professional develops special expertise is referred to as
Definition

farming.

 


The Reason: Farming involves maintaining data on each property, including when it was built, its sale history, typical marketing time, assessed value, the amount of property taxes, and so forth.

Term
Broker Mike charges a prospective seller $50 for a comparative market analysis (CMA). Which statement applies?
Definition

This is permissible, provided Mike does not represent the CMA as an appraisal.


The Reason: When a broker or sales associate is asked to perform a comparative market analysis (CMA) to obtain a listing or prospective sale, the CMA may not be referred to or represented as an appraisal.

Term
Sarah's license status as registered with the DRE is broker associate. All of the statements apply to Sarah EXCEPT that she
Definition

may hold more than one Florida broker associate license.


The Reason: In Florida, licensees are licensed as either brokers or sales associates. Licensees may be registered as a broker associate under another broker.

Term
Which statement does NOT describe the intent of the Florida Legislature concerning regulation of professional and licensed occupations to protect the public?
Definition

Whenever deemed appropriate by the Legislature.


The Reason: The intent of the Florida legislature is that professions and occupations be regulated only when (1) their unregulated practice can harm the public; (2) the public is not adequately protected by other state, local ordinances, or federal laws; or (3) less restrictive means of regulation are not available.

Term
A sales associate applicant is NOT required to disclose which information on the license application?
Definition

Proof of U.S. citizenship


The Reason: U.S. citizenship is not a requirement to hold a real estate license, therefore, proof of citizenship is not required on this application.

Term
Sales associate Sam sells real estate for Seasonal Sales Realty. He also works as a sales associate for Two Sides Realty.
Definition

Sam is in violation fo F.S. 475.


The Reason: A Florida-licensed sales associate or broker associate may have only one registered employer at any one time.

Term
What is the Latin term for pleas of "no contest
Definition


The Reason: The Latin term, nolo contendere means "no contest".

Term
Which event may cause the FREC to refuse to certify an individual as qualified for licensure?
Definition

Was convicted of fraud in an insurance scam


The Reason: A conviction of fraud may cause the FREC to refuse to certify an applicant for licensure.

Term
To receive a notice of satisfactory completion of FREC Course I or Course II, a student may not miss more than
Definition

8 instructional hours


The Reason: A student may not miss more than 8 classroom hours of instruction. A classroom hour is considered to be 50 minutes.

Term
Devora received her Florida sales associate's license last year. Which requirement must Devora complete to become a licensed real estate broker?
Definition

Sucessfully complete the 45-hour post-licensing course


The Reason: No one with a Florida sales license may become a Florida broker unless that person has successfully completed the 45 hour post licensing class. Of course, she also needs to be active under a broker for 2 years. However, without the 45 hour post licensing class, broker isn't possible. This is an instance where there are two possible answers, but one is considered better.

Term
Vincent Black has a North Carolina broker's license, but he is not licensed in Florida. He sells a parcel of land he owns in Florida. Assuming all else is proper, this is a legal transaction because
Definition

Florida law exempts from licensure individual owners selling their own real property.


The Reason: Individual property owners who buy, sell, exchange, or lease their own real estate are exempt from licensure.

Term
A sales associate applicant who has submitted a correctly completed application for the state license examination and who successfully passes the state exam may legally begin to operate as a licensee when the
Definition

applicant is notified of having passed the state exam and has filed the appropriate form with the DRE.


The Reason: A sales associate applicant may legally begin to operate as a licensee once the applicant has notified the DRE of his or her employer's name and address by filing the appropriate form with the DRE.

Term
If the post-licensing requirement is not fulfilled before the first renewal and a sales associate licensee wishes to continue in the real estate business, the licensee
Definition

must requalify for licensure.


The Reason: Sales associates who fail to complete the post-licensing requirement and want to continue in the real estate business are required to re qualify for licensure by repeating the prelicense course and end-of-course exam and again passing the state licensing exam.

Term
Services of real estate do NOT include
Definition

selling cemetery lots for compensation.


The Reason: Persons who buy or sell cemetary lots are specifically exempted from licensure. Florida Real Estate License Law identifies the following eight real estate-related activities as real estate services (1) advertise real estate services; (2) buy; (3) appraise; (4) rent or provide rental information or lists; (5) sell; (6) auction; (7) lease; and (8) exchange. These services can be remembered by the acronym A BAR SALE.

Term
Which individual is NOT exempt from licensure under F.S. 475?
Definition

Business broker who negotiates leases of business property only


The Reason: Leasing business property for compensation requires a real estate license in Florida.

Term
A developer purchased a tract of land and subdivided the property into individual lots. The developer hired his son, who was not licensed to sell the lots. The father agreed to pay his son a salary of $200 per week. After two weeks, the son had sold only two lots, so the father decided to add an incentive. The father promised his son that after every fifth lot was sold, he would give his son a lot free and clear. After one more week, the son had sold only one more lot. The son quit his job to go to work for another developer who paid a higher weekly salary. Which statement applies to this arrangement?
Definition

Both the father and son have violated F.S. 475.


The Reason: The son was employed by his father, the owner-developer. If the son had been paid salary only, this would have been a legal arrangement. But because the father promised to pay and the son expected to receive a lot free and clear as additional compensation, both the father and the son violated the Florida license law, Chapter 475, F.S.

Term
FBI files reveal that six months ago Mr. Croft worked as a real estate broker in Georgia, where he was charged with arson related to a large insurance claim. To avoid a long court fight without pleading guilty, Mr. Croft agreed to revocation of his real estate license and entered a plea of "nolo contendere". The FREC has just received Mr. Croft's application for licensure as a sales associate disclosing the above information. The application shows that all academic requirements have been met, and the background check reveals no incriminating information other than the facts mentioned above. The FREC will probably decide that
Definition

Mr. Croft is not qualified for licensure.


The Reason: Because Mr. Croft had his Georgia real estate broker license revoked and because he entered a plea of nolo contondere, the FREC will probably decide that Mr. Croft is not qualified for licensure.

Term
A licensed sales associate may operate
Definition

for the broker registered as the sales associate's employer.


The Reason: A licensed sales associate may perform real estate services for compensation under the direction of his or her registered employer.

Term
A sales associate applicant is NOT required to comply with which requirement?
Definition

Be a bona fide Florida resident


The Reason: Florida sales applicants must submit an application fee, be 18 years of age or older, and have a high school diploma or its equivalent. Florida residence is not a requirement for sales associate licensure

Term
Nancy helped her father sell some property he owned. Nancy is not a real estate licensee. Nancy's father was grateful for his daughter's assistance, but Nancy declined any compensation for assisting her father. Which statement is TRUE?
Definition

This was a legal arrangement because Nancy did not receive compensation for performing real estate services.


The Reason: Nancy did not receive compensation for assisting her father. Anyone who performs real estate services for compensation must be licensed.

Term
Which statement BEST describes who must be licensed to practice real estate in Florida?
Definition

Anyone who performs any of the services of real estate for another for compensation, unless specifically exempted by law.


The Reason: A license is required for anyone who performs any of the services of real estate for another for compensation, unless specifically exempted by law.

Term
A salaried individual manages a condominium building and rents units for three-month to six-month periods. The manager
Definition

is exempt from licensure under F.S. 475.


The Reason: Employees who are paid a salary as managers of condominiums or cooperative apartment complexes who rent individual units, if the rentals are for periods no longer than a year, are exempt from licensure.

Term
The statements below are true with respect to the members of the Florida Real Estate Commission EXCEPT that they
Definition

are DBPR employees.


The Reason: Members of the Commission are appointees, not employees.

Term
Members of the FREC are appointed by the
Definition

Governor and confirmed by the state Senate.


The Reason: All seven members of the Commission are appointed to four-year terms by the governor, subject to confirmation by the state Senate.

Term
The Commission's purpose is to regulate
Definition

The FREC's purpose is to protect the general public by regulating real estate brokers and brokerage firms, broker associates, sales associates, real estate schools, and instructors and to foster the education of these real estate licensees and permit holders.

Term
The term of office for each Commission member is
Definition

four years.


The Reason: Each Commissioner member is appointed to a four-year term.

Term
The members of the Commission receive
Definition

$50 per day when on offical business, plus expenses.


The Reason: Commission members do not receive a salary. Instead, they are paid $50 per day for each day they attend an official meeting and for each day they participate in other Commission business. Additionally, they are reimbursed for expenses connected with their official activities.

Term
The Commission is NOT empowered to
Definition

levy fines and imprisonment as penalties for certain crimes.


The Reason: The Commission is not empowered to levy imprisonment as a penalty. The Commission is, however empowered to do the following: adopt a seal; foster the education of applicants and licensees; make determinations of violations, that is, report any criminal vilation of Chapter 475 or any disciplinary actions to the proper authorities; regulate professional practices; create and pass rules and regulations; establish fees; grant or deny applications for licensure; and suspend or revoke licenses and impose administrative fines.

Term
Legal counsel to the Commission is provided by
Definition

independent counsel with the prior approval of the attorney general.


The Reason: With the attorney general's prior approval, the Commission may retain independent counsel to provide legal advice to the Commission on a specific matter.

Term
Fees assessed by the Commission are to be used for
Definition

the regulation of real estate practitioners.


The Reason: Money generated from fees must be used only to fund real estate regulation activities.

Term
Sales associate Jenny recently moved from Dunedin, Florida, to High Springs, Florida.
Definition

Jenny must notify the DRE of her change in current mailing address within 10 days of the change.


The Reason: The Commission requires that licensees notify the DRE in writing of any change in their mailing address within ten days after the change.

Term
Sales associate Sal is employed by Broker Barb. Barb's license is suspended. This action causes Sal's license to be
Definition

placed in involuntary inactive status.


The Reason: A sales associate's license is placed in involuntary inactive status when an employer's license is suspended or revoked. The sales associate may change his or her registration to active when a new broker is found.

Term
When an active broker changes his or her business address and the broker notifies the FREC within the required ten days, the licenses of the sale associates
Definition

remain in force.


The Reason: The licensees of sales associates working for a broker who changes his or her business address remains effective and in force.

Term
If an active licensee fails to renew her third two-year license before the expiration date on the license, the license will
Definition

revert automatically to involuntary inactive status at the end of the license period.


The Reason: An individual who did not renew his or his license before it expired is placed in involuntary inactive status.

Term
Specific responsibilities of the FREC do NOT include
Definition

providing the services necessary for the preparation and administration of licensing examinations.


The Reason: The Department of Business and Professional Regulation (DBPR) is responsible for providing the services necessary for preparation and administration of all examinations.

Term
An involuntary inactive license will automatically become void without further action by the FREC or the DBPR after
Definition

two years.


The Reason: A license that has been in inactive status for more than two years becomes null and void without further FREC or DBPR action

Term
Who may NOT reactivate a license to active status?
Definition

A sales associate who did not complete his or her post-licensing education prior to the expiration of the initial license


The Reason: Sales Associate are required to complete the post-license education requirement before the first renewal of their licenses. Failure to do so will cause the initial license to become null and void.

Term
An owner-developer owns several properties with different names, but all are business entities closely connected and controlled by the owner-developer. A sales associate working for that owner-developer may legally obtain
Definition

a group license.


The Reason: A Sales associate or broker associate who is issued a group license is considered to hold one license and have one employer

Term
Broker Vagabond moves his real estate office to a new, trendy location. He is so busy coordinating the move that he forgets to notify the DBPR. Broker Vagabond's license
Definition

will cease to be in force.


The Reason: Because Broker Vagabond did not notify the Commission of his business address change within ten days of the change, his license will cease to be in force until proper notification is received by the Commission.

Term
Assume September 10, 2010, is the date an initial real estate license is issued. On what date will the initial license expire?
Definition

March 31, 2012


The Reason: 24 months from the initial effective date is September 10, 2012. September 30, 2012 is more than 24 months so the expiration date is March 31, 2012.

Term
Sandi decides to relocate her real estate brokerage office. She notifies the Commission of the change in business address. Sandi also informs the Commission of the names of two sales associates who are no longer associated with her brokerage. The sales associates' license will be
Definition

placed on involuntary inactive status.

 

The Reason: When a broker changes his or her business address he or she must notify the Commission of the change no later than ten days after the change occurs. The broker must also inform the FREC of the names of any sales associates who are longer employed with the broker. These sales associates are placed in involuntary inactive status.

Term
A real estate licensee on active duty with the U.S. Army is required to renew his or her license
Definition

within six months after discharge.

 

The Reason: A member of the U.S. Armed Forces who at the time of entry to active duty was a Florida licensee in good standing is exempt from all renew requirements while on active duty and for six months thereafter.

Term
Which disclosure notice MUST be given before a single agent can change to a transaction broker?
Definition

Consent to transition to transaction broker

 

The Reason: The principal must sign or initial the consent to transition to transaction broker notice before a single agent can change to a transaction broker.

Term
Steven is so cautious that he refuses to sign all legal documents. Your office policy is to include a note in his file indicating the time, date, place, and circumstance under which you made the disclosure that Steven refused to sign. You may NOT work with Steven under which circumstance?
Definition

Change from a single agent to a transaction broker to show Steven's home to an in-house buyer-principal

 

The Reason: Steven must give written consent in order for the broker to transition from a single agent to a transaction broker.

Term
The brokerage relationship disclosure requirements in Chapter 475 apply to the
Definition

sale of a condominium unit.

 

The Reason: The disclosure requirements in Chapter 475 apply to residential transactions. According to Florida law, only the condominium meets the definition of a residential transaction.

Term
Which statement BEST describes the duty of loyalty in a single agent relationship?
Definition

The broker must act in the best interest of the principal.

 

 The Reason: A single agent is a fiduciary. The single agent must avoid any situation that might breach his or her fiduciary relationship. Loyalty (faithfulness) requires the broker to always put the principal's interest above those of other people with whom the broker deals.

Term
A real estate broker who works in a limited capacity for both the buyer and the seller in the same transaction is
Definition

a transaction broker.

 

The Reason: A transaction broker provides limited representation to a buyer, a seller, or both in a real estate transaction, but does not represent either the seller or the buyer in a fiduciary capacity.

Term
A license of ABC Realty must give the no brokerage relationship notice to
Definition

a for-sale-by-owner (FSBO) seller before showing the FSBO home to a buyer customer of ABC Realty.

 

The Reason: Licensees are not required to give the no brokerage relationship notice if: (1) the licensee knows that a single agent broker represents the buyer, or(2) at a bona fide "open house." The licensee must give the no brokerage relationship notice to a FSBO seller before showing the residential property to a buyer customer of the brokerage firm in order to inform the seller the real estate licensee is representing the buyer's interests in the matter and not the interests of the seller.

Term
Broker Murl is an agent of the seller. The seller has disclosed to Murl that the ceramic tile is loose in the dining room because the cement did not adhere to the tile. The loose tile is not readily visible because it is coverd with an area rug to protect the seller's toddler. Murl has satified his legal obligation if he tells the buyer
Definition

that ceramic tiles in the dining room are loose.

 

The Reason: The broker is obligated to disclose all known facts that materially affect the value of residential real property that are not readily observable to the buyer.

Term
A transaction broker has all of the duties listed below EXCEPT
Definition

obedience.

 

The Reason: There are seven listed duties of a transaction broker. Three of the duties are: (1) using skill, care, and diligence in the transaction: (2) disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer; and (3) limited confidentiality. Obedience is a duty of a single agent broker.

Term
A brokerage relationship is terminated under which circumstance?
Definition

The broker agent renounces the brokerage relationship.

 

The Reason: A brokerage relationship may be terminated when the broker renounces the brokerage relationship by giving notice to the principal or customer.

Term
A seller lists her home for $116,900. The seller tells the sales associate that she needs to get at least $112,000 for the home. Following Sunday's open house, the sales associate receives two offers on the home. The first offer for $116,900 is contingent on the seller's financing a portion of the down payment. The second offer is for $112,000, with the buyer to secure her own financing. The sales associate should You answered: present both offers, explaining the details of each to the seller.
Definition

present both offers, explaining the details of each to the seller.

 

The Reason: Unless a party has previously directed the licensee otherwise in writing, the licensee must present all offers and counteroffers in a timely manner.

Term
In the common public relationship that exists in a typical real estate transaction, buyers and sellers are said to be dealing
Definition

at arm's length with each other.

 

The Reason: Typically it is a transaction in which the parties are dealing from equal bargaining positions, each looking out for his or her best interest.

Term
If a principal gives his or her broker instructions that will result in loss or harm to the principal, the broker
Definition

should inform the principal of possible harm inherent in the instructions, and then either do as instructed or withdraw from the relationship

 

The Reason: The broker is at all times obligated to act in conformity with the principal's legal instructions as long as those instructions are legal and relevant to the contractual relationship. If a broker feels that carrying out the principal's legal directions will harm the principal, the broker must promptly inform the principal of all facts along with the broker's opinion. However, if the principal will not change the instructions, the broker must either carry them out or withdraw from the relationship.

Term
A broker's obligations to consumers with whom the brokerage firm has a no brokerage relationship include the duty of
Definition

accounting for all funds.

 

The Reason: Brokers have a duty to account for all funds entrusted to the broker. Full disclosure and loyalty are owed to clients by single agent brokers. Limited confidentiality is only owed by transaction brokers to their customers.

Term
Designated sales associates are best described as
Definition

single agents for the buyer and the seller in nonresidential transaction where the buyer and the seller meet certain asset thresholds.

 

The Reason: In a nonresidential transactions, and where the buyer and seller each have assets of $1 million or more, the broker, at the request of the customers, may designate two sales associates to act as single agents for different customers in the same transaction.

Term
A real estate licensee makes a nonfactual statement about a property and the buyer accuses the licensee of fraud. The buyer is NOT required to prove that the
Definition

information misstated could be proved to be false with due diligence.

 

The Reason: There are four elements associated with a cause of action for fraud: (1) the licensee made a misstatement or failed to disclose a material fact: (2) the licensee either knew or should have known that the statement was not accurate or that the undisclosed information should have been disclosed; (3) the buyer relied on the misstatement; and (4) the buyer was damaged as a result.

Term
A transaction broker involved in a residential sale discovered before the closing that a large recycling facility will be built approximately three-quarters of a mile from the home site. The transaction broker should
Definition

disclose the information to both the buyer and the seller.

 

The Reason: The broker has a duty to disclose all known facts that materially affect the value of residential real property, and are not readily observable, to all parties to the transaction. The broker also has a duty to use skill, care, and diligence with regard to the transaction, including information regarding development that may affect the value of the property.

Term
A real estate sales associate must disclose to a prospective buyer that
Definition

the family room addition does not comply with local building codes.

 

The Reason: The broker is obligated to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer. Personal information concerning the seller, previous occupants of the property, or the demographics of the area are not material facts according to law.

Term
Which relationship is a general agency relationship?
Definition

Relationship between the employing broker and a broker associate

 

The Reason: A general agent is authorized by the principal to perform acts associated with the continued operations of a particular job or a certain business of the principal. Sales associates and broker associates are general agents of their employing broker.

Term
John Anderson is a licensed real estate associate. Under which name may he register and be licensed?
Definition

John Anderson, LLC

 

The Reason: Sales associate must be issued licenses in their legal names only. Sales associates may form a limited liability company and in this case, the DBPR issues the license in the licensee's legal name and includes the entity designation on the face of the license after the licensee submits the required forms.

Term
A sales associate receives a binder deposit from a prospective buyer on Thursday morning. Later that same day, the associate gives the binder deposit to his broker. By the end of business on what day of the week must the broker deposit the funds into her escrow account?
Definition

Tuesday

 

The Reason: The FREC rule requires a broker to deposit escrow funds within three business days after the day the funds are received. If funds were received on Thursday, the three business days after the day of receipt are Friday, Monday, and Tuesday. The funds must be deposited before the end of Tuesday.

Term
In connection with escrow accounts, the Florida Real Estate Commission has rules and regulations that
Definition

prohibits the depositing of more than $1,000 of personal funds into a sales esrow account.

 

The Reason: A broker is allowed to place in the escrow account an amount up to $1,000 of personal or brokerage funds.

Term
Real estate sales associates who receive checks payable to them as deposits on the purchase of real property must
Definition

endorse the checks and immediately turn them over to their employers.

 

The Reason: If a check is made out to the sales associate, it should be immediately endorsed and include the words, "For Deposit Only to (the name of the escrow account)" and turned over to the broker.

Term
Broker Murl decides to use the trade name Little Mo Realty for the name of his real estate business. Murl must
Definition

register the trade name with the DPPR.

 

The Reason: A broker may use his or her name or a fictitious name as a trade name once it has been registered with the DBPR.

Term
Which statement is FALSE regarding escrow accounts?
Definition

It is illegal for the broker to keep any earned interest even if the buyer and the seller give written permission.

 

The Reason: Brokers may keep the earned interest from an interest-bearing escrow account only if all parties to the transaction give written consent.

Term
A dispute arises between the buyer and the seller as to which one is entitled to escrowed property. The broker should first
Definition

notify the FREC in writing, unless exempted from the notice requirements.

 

The Reason: If a broker receives conflicting demands on escrowed property, the broker must notify the FREC, in writing, within 15 days of the party's last demand unless specifically exempted.

Term
An individual who paid for rental information but did not obtain a rental is entitled to repayment of
Definition

75 percent of the fee if requested within 30 days of the contract/receipt date.

 

The Reason: If a prospective tenant does not obtain a rental, he or she is entitled to 75 percent of the fee paid if requested within 30 days of the contract/receipt date.

Term
Rebecca purchased a rental list one week ago from a real estate broker. Rebecca inspected an apartment described in the list. The apartment manager told Rebecca that cats were not allowed. Rebecca had specifically looked at the apartment because the rental list indicated that pets were allowed. Immediately, Rebecca orally demanded and should legally receive from the broker
Definition

100 percent of the fee paid.

 

The Reason: If the information provided to a prospective tenant is not current or is inaccurate in any material respect, the full fee must be repaid to the prospective tenant on demand.

Term
If the license issued to the only active broker of a real estate corporation becomes void for any reason, another active broker must be appointed within 14 calendar days. Failure to appoint another active broker will result in what action against the corporation's registration?
Definition

Automatic cancellation

 

The Reason: If the only active broker of a brokerage corporation dies, resigns, or is removed from office, the vacancy must be filled within 14 calendar days. Failure to meet the 14-day deadline will result in the automatic cancellation of the brokerage firm's registration.

Term
Murl decides to incorporate his new real estate business, Little Mo Realty, Inc., in order to reduce his personal liability. Murl must do each requirement EXCEPT
Definition

file the articles of incorporation with the Secretary of the DBPR.

 

The Reason: A corporation is formed by applying for a charter approved by the Department of State in Tallahassee. If a corporation is formed as a real estate brokerage firm, it must be registered with the DBPR. Officers and directors must be registered with the DBPR.

Term
A corporation sole is a(an)
Definition

ecclesiastical organization.

 

The Reason: A corporation sole is an ecclesiastical or church organization

Term
To form a general partnership, two or more persons must
Definition

agree to engage in business together and share in the profits and losses.

 

The Reason: A general partnership is an association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business, each having the power to bind the other in transactions, and each being entitled to receive a share of the profits in an amount agreed on by the parties.

Term
One difference between a general partnership and a limited partnership is that
Definition

limited partners must make a cash or property investment.

 

The Reason: The limited partners must make an investment of cash or property, but not services.

Term
Which business entity may be registered as a real estate broker?
Definition

Limited partnership

 

The Reason: Business entities that may register as a real estate broker include: corporations, partnerships; sole proprietorships, limited liability companies, and limited liability partnerships.

Term
A broker has conflicting demands from a buyer and a seller regarding an escrow deposit. The broker may employ all of the escape procedures listed below EXCEPT
Definition

request an informal hearing before the FREC to resolve the matter.

 

The Reason: There are four settlement procedures: mediation, arbitration, litigation and escrow disbursement order.

Term
Broker Murl is getting prepared to open Little Mo Realty as a sole proprietorship and is placing an order to have an entrance sign made. Which wording does NOT need to be included on the sign?
Definition

1000 Sunset Blvd.

 

The Reason: The entrance sign must contain the name of the broker, trade name, and the words "Licensed Real Estate Broker." The word "Licensed" may be abbreviated.

Term
broker receives conflicting demands for the escrow money in a dispute concerning a roof inspection report. Both the buyer and seller claim the earnest money deposit. The broker must
Definition

institute one of the statutory settlement procedures within 30 business days after the last demand.

 

The Reason: If a broker receives conflicting demands on escrowed property, the broker must notify the FREC, in writing, within 15 (not 10) business days of the party's last demand unless specifically exempted. Further, the broker must institute one of four settlement procedures within 30 business days after the last demand.

Term
The sales commission rates applicable to the various types of property sold in Florida are determined by
Definition

agreement between each broker and buyer or seller.

 

The Reason: The amount of commission to be paid is negotiable; and it is arrived at by agreement between the broker and buyer or seller.

Term
When a sales associate decides to leave the employ of her broker to work for another broker, she
Definition

must notify the FREC within ten days of her change in broker-employer.

 

The Reason: Sales associate must notify the FREC not later than ten days after a change of employer. They must wait a "reasonable length of time" before actively soliciting any buyers or sellers of a former employer. A sales associate is prohibited from doing anything that might discredit the former employer or damage the goodwill of the employer's business. Listings are the property of the broker.

Term
The seller refuses to pay the broker the commission earned. The broker may
Definition

file suit in a court of law against the seller.

 

The Reason: A broker may place a lien on real property for nonpayment of commission only if the broker is authorized to do so in a contractual agreement. Otherwise, when a buyer or seller refuses to pay a commission, the broker is required to take legal action to collect the monies due by filing a suit against the party for the amount due.

Term
Broker Murl decides to organize Little Mo Realty as a limited partnership. What must Murl accomplish?
Definition
A written instrument filed with Florida Department of State creates a limited partnership. A limited partnership that engages in any of the sevices of real estate must be registered with the FREC. The general partners must be registered.
Term
In Florida, listings obtained and any commissions paid by the buyer or seller are
Definition

legally property of the sales associate's employer.

 

The Reason: Listings belong to the broker and commissions are paid to the broker.

Term
Broker Murl of Little Mo Realty and Broker Dan of Boyds of Naples agree to work with one another to market a prestigious marina in Naples, Florida. Murl is particularly knowledgeable regarding marinas and Dan is an expert on the Naples real estate market, so they decide to combine their expertise on this particular listing. This business arrangement is referred to as a(n)
Definition

joint venture.

 

The Reason: A joint venture structure is normally used when two or more parties combine their efforts to complete a single business transaction.

Term
Which statement is FALSE concerning the payment of an unearned fee or kickback?
Definition

A real estate licensee may be paid a fee for referring buyers to a title company, provided the buyer is informed in advance of the facts concerning the fee.

 

The Reason: Kickbacks to brokers must not violate the Real Estate Settlement Procedures Act (RESPA). RESPA prohibits the payment of a kickback or unearned fee associated with a settlement(closing) service, including title insurance.

Term
A real estate sales associate decides to sell property he or she owns "by owner." Which statement is TRUE regarding this situation?
Definition

At the first point of meaningful negotiation, the licensee should disclose to prospective buyers that he or she is licensed as a real estate sales associate.

 

The Reason: The rules regarding advertising real property do not prevent a real estate licensee from selling his or her own property. It is not necessary for the licensee to indicate in the ad that the seller is a real estate licensee. However, because a licensee has superior knowledge and expertise in real estate, to reduce liability the "by owner" licensee-seller should disclose at the first point of meaningful negotiation that the seller is a real estate licensee.

Term
Real estate brokerage trust funds may NOT be deposited into a
Definition

life insurance company in Florida.

 

The Reason: Escrow accounts may be held in a Florida-based title company having trust powers, a commercial bank, a credit union, a saving association or, if designated in the sale contract, a Florida attorney.

Term
Ben is a licensed real estate broker. Jane is an attorney who specializes in contract law. Ben and Jane form a joint venture for the purpose of locating and selling to investors raw land that is suitable for commercial development. Which statement is true regarding this arrangement?
Definition

Because Ben and Jane are performing real estate services for compensation, they both must be licensed real estate brokers.

 

The Reason: If two parties form a joint venture to provide real estate services for compensation, both parties must be licensed real estate brokers.

Term
The probable-cause panel includes
Definition
The probable-cause panel is composed of two members of the FREC. One of the two panel members must be a current member. The panel must include at least one professional member. If a present or former consumer member is available and willing to serve, then one of the panelists must be a consumer member.
Term
A person is eligible to seek recovery from the Real Estate Recovery Fund if
Definition

he or she has received a final judgment against a licensee in any action wherein the cause of action was based on a real estate brokerage transaction, unless specifically precluded.

 

The Reason: A claim for recovery will not be acceptable unless a civil suit has been filed and a final judgment subsequently rendered against an individual licensee as defendant regarding a real estate brokerage transaction.

Term
The decision as to whether probable cause exists is made by a majority vote of the
Definition

probable-cause panel (or the Department if there is no panel).

 

The Reason: The probable-cause panel's sole responsibility is to determine whether probable cause exists. (If a licensing board does not have a probable-cause panel, the DBPR makes the determination as to whether probable cause exists.)

Term
Which action would cause a license to be revoked without prejudice?
Definition

A sales associate received her license as a result of an administrative error by the Division of Real Estate.

 

The Reason: A license may be revoked or canceled without prejudice if it is issued through the mistake or inadvertence of the Commission.

Term
Which offense is a misdemeanor of the first degree?
Definition

Failing to provide current and accurate rental information for a fee.

 

The Reason: There is one first-degree misdemeanor license law violation: failing to provide accurate and current rental information for a fee. The other license law violations are second degree misdemeanors.

Term
Who prepares and submits a recommended order of findings and conclusions in a complaint case?
Definition

Administrative law judge

 

The Reason: The administrative law judge is required to prepare and submit to the DBPR and to all other parties a recommendation order that includes the administration law judge's findings and conclusions and the recommended penalty.

Term
Any final order issued by the DBPR Secretary or a legally appointed designee that results from circumstances that pose an immediate danger to the public's health, safety, or welfare is called a
Definition
summary or emergency suspension.

The Reason: A summary suspension is normally required only if an immediate danger to the public health, safety, or welfare is considered to exist.
Term
The DBPR is authorized to investigate a written complaint filed against a licensee
Definition
if the alleged complaint is legally sufficient. The Reason: Any complaint that is filed in writing and is legally sufficient with be investigated.
Term
Neglecting to correct omissions or errors on a license application returned by the DBPR to the applicant for correction is considered grounds for
Definition

denial of the application.

 

The Reason: One example of grounds for denial is neglecting to correct errors or omissions on a license application that has been returned to the applicant for additional information.

Term
If a broker's license is suspended, the licenses of all sales associates working for that broker are
Definition

placed in involuntary inactive status.

 

The Reason: When a real estate broker's license is suspended or revoked, all licenses issued to sales associates who work for the penalized broker are placed in involuntary inactive status.

Term
One of the grounds for suspension or revocation of a licensee's license is the unauthorized use or retention of money or property, otherwise known as
Definition

conversion.

 

The Reason: Conversion is the unauthorized control or use of another's personal property.

Term
Less than careful attention to duties, one of the grounds for suspension or revocation of a licensee's license, is otherwise called
Definition

culpable negligence.

 

The Reason: The term culpable negligence is defined as failing to use the care a reasonable person would exercise.

Term
When payment from the Real Estate Recovery Fund is made to satisfy a claim against a licensee because the licensee did not comply with an escrow disbursement order, the Commission's action against the licensee must be
Definition

automatic suspension.

 

The Reason: Suspension of a license is mandatory on payment of any amount from the Real Estate Recovery Fund in settlement of a claim to satisfy a judgment against a licensee. The license is automatically suspended on the date of payment from the recovery fund.

Term
Which type(s) of penalties may be imposed for violation of the real estate license law?
Definition

Criminal, civil, and administrative penalties

 

The Reason: Administrative, civil, and criminal penalties may be imposed for violations of the real estate license law.

Term
The Florida Real Estate Commission may NOT impose which disciplinary penalty?
Definition

Imprisonment

 

The Reason: All imprisonment penalties or fines, except administrative fines, must be obtained in a court of law because the Commission lacks the authority to assess such penalties. The FREC must report any criminal violation of Chapter 475, F.S., to the appropriate state attorney's office.

Term
The collective amount to be paid from the Recovery Fund as a result of any one real estate transaction may not exceed
Definition

$50,000.

 

The Reason: Payment for claims arising out of the same transaction are limited to $50,000 or the unsatisfied portion of a judgment claim, whichever is less, regardless of the number of claimants or parcels of real estate involved in the transaction.

Term
A buyer gives the broker a $47,500 earnest money deposit. The broker defrauds the buyer of the $47,500. The buyer sues the broker and is awarded a judgement in the amount of $62,500 for the original $47,500 deposit plus the $15,000 for punitive damages. Because the buyer was unable to collect the judgment from the broker, the buyer requests relief from the Florida Real Estate Recovery Fund. How much can the buyer receive from the Recovery Fund?
Definition

$47,500

 

The Reason: The buyer can be reimbursed for the actual amount of lost earnest money deposit (up to a maximum of $50,000). However, punitive damages cannot be recovered from the Recovery Fund.

Term
The Florida Real Estate Commission may NOT impose which disciplinary penalty?
Definition

Imprisonment

 

The Reason: All imprisonment penalties must be obtained in a court of law because the Commission lacks the authority to assess this penalty.

Term
The law that requires that lenders disclose the annual percentage rate (APR) of interest is the
Definition

Consumer Credit Protection Act (Truth-in-Lending).

 

The Reason: The Truth-in-Lending Act requires that lenders disclose the annual percentage rate (APR) of interest and finance charges imposed on consumers.

Term
The federal 1968 Fair Housing Act prohibits discrimination based on
Definition

race, color, religion, sex, national origin, familial status, or handicap status.

 

The Reason: Under the Fair Housing Act, all discrimination is illegal in sales, leasing, advertising sales or rentals, financing, or brokerage services if such discrimination is based on race, color, religion, sex, national origin, handicap, or familial status.

Term
The Truth-in-Lending Act
Definition

requires disclosure of finance charges as well as annual percentage rates of interest.

 

The Reason: The overall purpose of the Truth-in-Lending Act is to inform consumers of exact credit costs. The law requires that lenders disclose the annual percentage rate of interest and finance charges imposed on consumers.

Term
The Real Estate Settlement Procedure Act (RESPA) was enacted to
Definition

ensure that buyers are informed regarding the amount and types of expenses to be expected at closing.

 

The Reason: RESPA requires that at the time of application for a loan or within three business days thereafter, the lender must provide the borrower with a good-faith estimate of probable closing costs.

Term
If requested by the borrower, and to the extent that information is available to the closing agent, the borrower must be provided with which item at least one day before closing?
Definition

Uniform Settlement Statement

 

The Reason: If requested by the borrower, the closing agent must allow the borrower to examine the costs included on the settlement statement, to the extent they are known, one full business day before closing

Term
As part of the preparation for a closing, a listing broker referred a property owner to an appraiser. The appraiser completed the appraisal and charged the owner $250, which was entered on the RESPA settlement statement. The appraiser gave the listing broker $50 for the referral, which the broker accepted. According to RESPA
Definition

both the broker and the appraiser have violated the law.

 

The Reason: No person or business may give or accept any fee, kickback, or thing of value in exchange for business referrals relating to a real estate transaction. Real estate licensees must be sure that any fees collected other than commissions are for specific services actually performed.

Term
Which transaction is exempt from RESPA requirements?
Definition

The sale of a house where the only financing is assumption of an existing loan

 

The Reason: The sale or transfer of property involving only an assumption of an existing loan or sale subject to an existing loan is exempt from RESPA.

Term
The intent of the Florida Landlord and Tenant Act is to
Definition

make the landlord-tenant relationship more equitable.

 

The Reason: The intent of the Residential Landlord and Tenant Act is to place the Florida landlords of residential properties and their tenants on a more equitable basis in their legal relationship.

Term
When security deposits or advance rents are required by a landlord in Florida, such funds
Definition

may be deposited in the landlord's account if he or she posts a $50,000 surety bond.

 

The Reason: The landlord is obligated to account for deposits in one of three ways. One of the ways is to post a surety bond with the clerk of the circuit court.

Term
The sales associates in a real estate office have been instructed to send all of their Spanish-speaking prospects to a new subdivision "beautifully designed with a Spanish flavor." This is an example of
Definition

steering.

 

The Reason: Steering, or channeling, is the act of directing protected-class home seekers away from areas that are not mixed with that class into areas that are.

Term
A landlord who rents a duplex to two tenants is obligated to provide
Definition

all of the above unless waived in the rental agreement.

 

The Reason: If the dwelling unit rented is a single-family home or a duplex, the obligation of a landlord to provide extermination and garbage receptacles and pickup can be altered or set aside by a written agreement between the tenant and landlord.

Term
Which disclosure requirement is required to be given to tenants in multifamily buildings of five or more units?
Definition

Notice of where deposit is held within 30 days

 

The Reason: The Florida Residential Landlord and Tenant Act requires that the landlord inform tenants in writing, within 30 days from the receipt of advance rent or security deposit, of the manner in which the tenant's funds are being held.

Term
If a tenant vacates rented premises promptly when a lease or tenancy expires, the landlord must
Definition

inform the tenant within 30 days if part of the tenant's deposit will be claimed.

 

The Reason: The landlord has 30 days to notify the tenant if the landlord intends to impose a claim on the deposit. The law requires that the notification be in writing and sent by certified mail to the tenant's last-known mailing address.

Term
The Fair Housing Act does NOT apply to which category listed below?
Definition

A property owner of a single-family home who owns two residential properties and is selling the single-family property "for sale by owner"

 

The Reason: Residential property owned by a private individual who owns three or fewer homes and who does not employ the services of a real estate licensee is not covered by the Fair Housing Act.

Term
If a tenant's rent is current and he or she notifies the landlord of an intended absence, the landlord
Definition

may not enter the tenant's rented premises without the tenant's consent except in an emergency.

 

The Reason: If the rent is current and the tenant notifies the landlord of an intended absence, the landlord cannot enter the premises during the period of absence except with the tenant's consent or in an emergency for the protection and preservation of the dwelling unit.

Term
How long does a landlord have to correct a noncompliance that is brought to his or her attention by written notice from a tenant?
Definition

7 days

 

 The Reason: The tenant first must give written notice to the landlord citing the noncompliance and stating the intent to cancel the agreement if the noncompliance is not corrected. Thereafter, the landlord has seven days to correct the noncompliance and resolve the problem.

Term
A landlord must follow designated procedures in evicting a tenant. The first step in a legal eviction is to
Definition
The tenant must be notified in writing that the landlord is demanding possession of the premises. The notice may be mailed to or served on the tenant or posted on the door of the tenant's residence.
Term
The law that requires that lenders furnish borrowers with a good-faith estimate of closing costs is the
Definition

Real Estate Settlement Procedures Act.

 

 The Reason: At the time of application for a loan or within three business days thereafter, the lender is required to provide the borrower with a good-faith estimate of probable closing costs related to those items for which information is available from past experience or from knowledge of current costs.

Term
Which phrase may legally be included in an advertisement to sell real estate?
Definition

"Cute cottage home, perfect for the first-time buyer"

 

The Reason: It is a violation of the Fair Housing Act to advertise housing is available only to people of a certain race, color, sex, religion, national origin, handicap status, or familial status.

Term
The federal statute that prohibits a private homeowner from discriminating strictly on the basis of race, if selling, renting, or leasing is the
Definition

1866 Civil Rights Act.

 

The Reason: The Civil Rights Act of 1866 prohibits discrimination on the basis of race.