Ch. 2 License Law and Qualifications For Licensure

Question 1

An individual or business entity licensed by the DBPR to perform services of real estate for others for compensation.

Answer 1

Broker

Question 2

An individual who is qualified to be issued a broker’s license but who operates as a sales associate in the employ of another.

Answer 2

Broker Associate

Question 3

Let the buyer beware!

Answer 3

Caveat Emptor

Question 4

Anything of value or a valuable consideration, directly or indirectly paid, promised, or expected to be paid or received.

Answer 4

Compensation

Question 5

A privilege granted by the state to operate as areal estate broker, broker associate, or sales associate: a type of time-share interest.

Answer 5

License

Question 6

An act of corruption, vileness, or moral depravity: a disgraceful action or deed.

Answer 6

Moral Turpitude

Question 7

A transactional agreement between Florida and another state that provides for the two state to recognize each other’s real estate license education.

Answer 7

Mutual Recognition Agreement

Question 8

A pleading of no contest by a defendant; a plea in a criminal action not admitting guilt but subjecting the defendant to punishment as if it were a guilty plea.

Answer 8

Nolo Contendere

Question 9

An unlicensed entity that sells, exchanges, or leases its own property.

Answer 9

Owner-Developer

Question 10

Requiring no further proof; acceptable on the face of.

Answer 10

Prima Facie Evidence

Question 11

Real estate activities involving compensation for performing the activities for another.

Answer 11

Real Estate Services

Question 12

The practice of mutual exchanges of privileges. Some states have reciprocal arrangements for recognizing and granting licenses to licensed real estate professionals from other states.

Answer 12

Reciprocity

Question 13

Authorization by the state to place an applicant on the register (record) of officially recognized individuals and businesses.

Answer 13

Registration

Question 14

For application and licensing purposes, a person who has resided in Florida continuously for four calendar months or more within the preceding year.

Answer 14

Resident

Question 15

A licensed individual who, for compensation, is employed by a broker or owner-developer.

Answer 15

Sales Associate

Question 16

When the court determines that a defendant is not likely to again engage in a criminal act and that the ends of justice and the welfare of society do not require the defendant suffer the penalty impose by the law, the court may withhold adjudication of quilt, stay (stop) the imposition of the sentence, and place the defendant on probation.

Answer 16

Withhold Adjudication

Question 17

A

B
A
R

S
A
L
E

Answer 17

Advertise real estate services

Buy
Appraise
Rent or provide rental information or lists

Sell
Auction
Lease
Exchange

Question 18

1. A license sales associate may operate
   a. for any registered broker.
   b. for the broker registered as the sales associate’s employer.
   c. independently if registered with the DBPR.
   d. as a broker associate.

Answer 18

B

Question 19

2. A sales associate applicant is NOT required to comply with which requirement?
   a. Submit an application fee.
   b. Be 18 years of age or older.
   c. Be a bona fide Florida resident.
   d. Possess a Social Security number.

Answer 19

C

Question 20

3. A licensee’s status as registered with the DBPR is broker associate. Which statement is FALSE regarding this licensee?
   a. The licensee holds an active license.
   b. The licensee is broker-qualified.
   c. The licensee has an employer.
   d. The licensee may hold more than one Florida broker associate license.

Answer 20

D

Question 21

4. Which statement does NOT describe the intent of the Florida Legislature concerning regulation of professional and licensed occupations to protect the public?
   a. When the potential for harm to the public is clear.
   b. When other ordinances and laws are not sufficient to protect the public.
   c. Whenever deemed appropriate by the Legislature.
   d. When less-constraining measures of regulation are not available or apparent.

Answer 21

C

Question 22

5. A sales associate applicant is NOT required to disclose which information on the license application?
   a. Convicted of a crime
   b. Proof of U.S. Citizenship
   c. Maiden name, if applicable.
   d. Found guilty of conduct that would have resulted in disciplinary action if the applicant had been licensed to practice real estate.

Answer 22

B

Question 23

6. A sales associate sells real estate for a real estate brokerage company. He also works as a sales associate for another real estate brokerage company.
   a. The sales associate is in violation of F.S. 475.
   b. The sales associate may work for both companies as long as he registers both employers with the FREC.
   c. This is legal as long as he only works part-time for each company.
   d. The sales associate must be a broker associate for this to be legal.

Answer 23

A

Question 24

7. What is the Latin term for a plea of “no contest”?
   a. Prima Facie
   b. Caveat Emptor
   c. Writ of mandamus
   d. Nolo contendere

Answer 24

D

Question 25

8. A women helped her father sell some property he owned. The daughter is not a real estate licensee. Her father was grateful for his daughter’s assistance, but the daughter declined any compensation for assisting her father. Which statement is TRUE?
   a. This was an unlicensed real estate activity, and both the daughter and her father could be prosecuted.
   b. The daughter is legally allowed to sell her father’s real estate and be compensated for it because she is a family member.
   c. This was a legal arrangement because the daughter did not receive compensation for performing real estate services.
   d. The daughter can be fined by the FREC for performing real estate services with out a license.

Answer 25

C

Question 26

9. Which event may cause the FREC to refuse to certify an individual as qualified for licensure?
   a. Dropped out of high school and later earned a GED.
   b. Was convicted of fraud in an insurance scam.
   c. Changed residency to a state other than the state of Florida.
   d. Lost a lot of one’s own money in a bad real estate investment.

Answer 26

C

Question 27

10. To receive a notice of satisfactory completion of course I or Course II, a student may NOT miss more than.
    a. 4 Instructional hours.
    b. 6 instructional hours.
    c. 8 instructional hours.
    d. 12 instructional hours.

Answer 27

C

Question 28

11. A woman received her Florida sales associate’s license last year. Which requirement must she complete to become a licensed real estate broker?
    a. Successfully complete the 45-hour post-licensing course.
    b. Complete a 14 hour of continuing education for sales associates.
    c. Document at least three closed real estate transactions.
    d. Complete at least three years of experience as a sales associate before taking the broker license exam.

Answer 28

A

Question 29

12. A man 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
    a. mutual recognition agreements allow this.
    b. Florida law exempts from licensure individual owners selling their own real property.
    c. Florida has honored his nonresident broker’s license.
    d. he has the knowledge and qualifications necessary to handle the transaction.

Answer 29

B

Question 30

13. 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
    a. application and proper fees are received by the state.
    b. applicant receives a return receipt acknowledging acceptance of application.
    c. applicant receives the canceled check as evidence of payment followed by an assigned date for the state exam.
    d. applicant is notified of having passed the state exam, has filed the appropriate form to become registered as active with the DBPR, and the DBPR Web site indicates the applicant’s license status is active.

Answer 30

D

Question 31

14. 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
    a. must retake the state exam within one year.
    b. must re-qualify for licensure.
    c. is allowed a six-month grace period to meet the requirement but must hold an inactive license during that period.
    d. must retake the pre-lincese course within on year.

Answer 31

B

Question 32

15. Services of real estate do NOT include
    a. advertising rental property lists.
    b. appraising real property.
    c. selling cemetery lots for compensation.
    d. conducting an auction of real property.

Answer 32

C

Question 33

16. Which statement BEST describes who must be licensed to practice real estate in Florida?
    a. Anyone who performs any of the services of real estate.
    b. Anyone who performs any of the services of real estate for another.
    c. Anyone who performs any of the services of real estate for another for compensation.
    d. Anyone who performs any of the services of real estate for another for compensation, unless specifically exempted by law.

Answer 33

D

Question 34

17. Which individual is NOT exempt from licensure under F.S. 475?
    a. Salaried employees of a government agency who perform real estate services for the state and do not receive commission.
    b. Individual dealing in personal property only.
    c. Individual serving as a personal representative and acting within the statutory limits of that designated role.
    d. An employee of areal estate developer who receives a salary plus bonuses based on sales quotas.

Answer 34

D

Question 35

18. A salaried individual manages a condominium building and rents units for three-month to six-month periods. The manager
    a. must be licensed under F.S. 475 because leasing is one of the real estate services.
    b. must be licensed under F.S. 475 because she rents condominium units for compensation.
    c. must be licensed by the Division of Condominiums and Time Share Sales.
    d. is exempt from licensure under F.S. 475.

Answer 35

D

Question 36

19. 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 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 ass 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 work for another developer who paid a higher weekly salary. Which statement applies to this arrangement?
    a. There’s no violation of F.S. 475.
    b. The son alone has violated F.S. 475.
    c. Only the father has violated F.S. 475.
    d. Both the father and the son have violated F.S. 475.

Answer 36

D

Question 37

FBI files reveal that six months ago a man 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, the man agreed to revocation of his real estate license and entered a plea of nolo contendere. The FREC has just received the man’s application for licensure as a sales associate disclosing the above information. The application shows that all academic requirements have been met, and a background check reveals no incriminating information other than the facts mentioned above.
The FREC will probably decide that
a. the man is not qualified for licensure.
b. the man can be licensed based on the information on the application.
c. because the man was never convicted of the charge in Georgia, he can be licensed in Florida.
d. the recommendations from the references provide adequate grounds for the licensure of the man.

Answer 37

A