Chap 6 Flashcards
A case is heard before an administrative law judge in a formal hearing. In such cases, who renders the final order?
A) Administrative law judge B) Attorney general C) DBPR secretary D) FREC (with members who served on the probable-cause panel excused)
D, FRECThe FREC (with the members who served on the probable-cause panel excused) issues the final order. In matters heard by an administrative law judge in a formal hearing, the FREC reviews and considers the administrative law judge’s findings and recommended order before issuing its final order.
Under Florida Statute 455, which penalty may be imposed on an individual for unlicensed practice of real estate?
A) Any of these B) Revocation C) Suspension D) $5,000 fine per count
The answer is $5,000 fine per count. Revocation and suspension are penalties that may be imposed against a holder of a real estate license. The FREC is authorized to issue fines of up to $5,000 per count to a person it finds guilty of unlicensed activity.
The broker followed the directions issued in an escrow disbursement order that became the subject of a lawsuit. The consumer-plaintiff obtained a judgment against the licensed real estate broker. It is determined that the consumer is eligible to seek reimbursement from the Real Estate Recovery Fund. The fund may NOT reimburse which expense?
A) Plaintiff's attorney's fees B) Broker-defendant's court costs C) Broker-defendant's attorney's fees D) Punitive damages
The answer is punitive damages. In all cases, punitive damages, treble damages, and interest may not be recovered from the Real Estate Recovery Fund.
Another term for a formal complaint is
A) a consumer complaint. B) prima facie evidence. C) an administrative complaint. D) legally sufficient.
C. Admin Complaint
A warning for an initial offense that allows a licensee to correct the minor infraction without consequence is called
A) an administrative fine. B) a citation. C) a letter of reprimand. D) a notice of noncompliance.
D. Notice of noncomplaince
The answer is a notice of noncompliance. A notice of noncompliance is a warning for a minor violation of an initial offense that allows a licensee 15 days to correct the minor infraction without consequence.
Which violation is a third-degree felony?
A)
Sales associate fails to deliver an earnest money deposit to her broker before the end of the next business day
B)
False advertising
C)
Individual performs real estate services for compensation without a real estate license
D)
Broker fails to register a trade with the Commiss
The answer is individual performs real estate services for compensation without a real estate license. It is a third-degree felony for an individual to perform real estate services for compensation without a real estate license.
Who renders a determination as to whether probable cause exists?
A) Administrative law judge B) Seven-member Commission C) DBPR investigator D) Two-FREC-member panel
D. Two-FREC member panel
The maximum amount that may be collected from the Real Estate Recovery Fund as a result of a single real estate transaction is
A) $50,000. B) $25,000. C) $150,000. D) $100,000.
A. 50K payments for claims arising out of the same transaction are limited, in total, to $50,000 or the unsatisfied portion of a judgment claim, whichever is less.
A buyer was defrauded by a real estate licensee. The buyer is awarded a judgment against the licensee in the amount of $7,000 damages plus $2,300 for attorney’s fees and court costs. The buyer has been unable to collect on the judgment, but it is determined that the buyer may seek reimbursement from the Real Estate Recovery Fund. How much can the buyer recover from the Fund?
A) $10,000 B) $9,300 C) $50,000 D) $7,000
7k
The answer is $7,000. The buyer can recover the amount of the judgment up to $50,000 or the unpaid amount of the judgment, whichever is less. The buyer cannot be reimbursed from the recovery fund for court costs or attorney’s fees.
When a consumer files a complaint against a real estate licensee that contains facts indicating that a violation of FREC rules has occurred, the complaint is said to be
A) prima facie evidence. B) evidence. C) formal. D) legally sufficient.
D. Legally sufficient
A broker who fails to pay an earnest money deposit at the title closing in accordance with the contract for sale and purchase may be charged with which offense?
A) Failure to account for and deliver B) Breach of contract C) Commingling D) Moral turpitude
A. Failure to account for and deliver
Which penalty is NOT an administrative penalty that may be imposed by the FREC?
A) Restitution to the injured party B) $5,000 fine for violation of Chapter 455 C) Revocation D) Probation
The answer is restitution to the injured party. The FREC does not have the authority to order restitution to an injured party. If the acts of a licensee harm a consumer, the injured party may seek damages in a court of law.
