Chapter 6

Question 1

What type of penalties can be imposed by FREC?

Answer 1

Administrative Penalties

Question 2

What type of penalties can be imposed by the courts?

Answer 2

Civil or Criminal Penalties

Question 3

What is a Civil Penalty?

Answer 3

Penalty imposed by the court that imposes a fine as compensation for wrongful conduct

Question 4

What is the criminal penalty imposed for violation of rental list requirements?

Answer 4

first degree misdemeanor
up to 1 year in prison
up to $1000 fine

Question 5

What is the criminal penalty imposed for acting as a broker or sales associate without a license?

Answer 5

Third degree felony
5 years in prison
up to $5000 fine

Question 6

What is the criminal penalty imposed for disseminating false or misleading information?

Answer 6

Second degree misdemeanor

Question 7

What is the criminal penalty imposed for knowingly giving false information when applying for a license?

Answer 7

Third degree felony
5 years in prison
up to $5000 fine

Question 8

What is the criminal penalty imposed for a sales associate collecting money in connection with a real estate transaction other than in the name of the employer?

Answer 8

Second degree misdemeanor

Question 9

What is the criminal penalty imposed for stealing or reproducing DBPR examination materials?

Answer 9

Third degree Felony
5 years in prison
up to $5000 fine

Question 10

What is the range of penalties imposed for a second degree misdemeanor?

Answer 10

Fine of up to $500 and or jail for up to 60 days

Question 11

What is the difference between mitigating circumstances and aggravating circumstances?

Answer 11

mitigating can make things better, reducing a penalty
aggravating makes things worse and adds on to the penalty

Question 12

What is misrepresentation?

Answer 12

Misstatement or Omission of facts that could lead to fraud

Question 13

What is concealment?

Answer 13

Agent’s failure to disclose material information to their principal

Question 14

What is breach of trust?

Answer 14

when a broker violates their fiduciary duties to their principal

Question 15

What is conversion?

Answer 15

When a broker uses escrow funds for their personal use

Question 16

What is an example of culpable negligence for a broker?

Answer 16

a broker who operated in a reckless, careless, and excessively negligent manner, costing a sale

Question 17

What is a conspiracy?

Answer 17

Actions of 2 or more licensees acting together to defraud a third party

Question 18

When may a broker use a lottery to induce a person to buy real estate?

Answer 18

When no purchase is required in order to participate

Question 19

What is the broker’s duty when asked about the title of a property?

Answer 19

The broker must advise the buyer to obtain title insurance or obtain an attorney’s title opinion

Question 20

What must a broker do if they are aware of a lien on the property?

Answer 20

Broker must disclose the existence of the lien

Question 21

What is the max amount of a fine that FREC may impose for violation of a rule?

Answer 21

$5000 per violation

Question 22

What is the minimum penalty administered by FREC

Answer 22

reprimand

Question 23

What is the maximum penalty administered by FREC?

Answer 23

Revocation of the license

Question 24

What does license revocation do?

Answer 24

permanently removes a license, preventing further practice of real estate in Florida

Question 25

What is the typical length of the probation period?

Answer 25

90 days

Question 26

What is the maximum period of license suspension?

Answer 26

10 years

Question 27

What could happen if your license is suspended a second time?

Answer 27

revocation

Question 28

What must a licensee do upon receiving a conviction of a crime?

Answer 28

report it to DBPR within 30 days

Question 29

When does FREC use notices of non-compliance?

Answer 29

To handle first time minor violations that do not result in economic or physical harm to persons

Question 30

How long does a licensee have to correct a violation after receiving a notice of noncompliance?

Answer 30

15 days

Question 31

What happens if you do not correct the violation given in the notice of noncompliance in a timely manner?

Answer 31

You are issued a citation

Question 32

How many days until an undisputed citation becomes a final order?

Answer 32

30 days

Question 33

What are the steps in the FREC disciplinary process?

Answer 33

1- Complaint 2- Investigation 3- Probably Cause panel 4- Administrative/Formal Complaint 5- Formal/informal hearing 6- Final order 7- Appeal

Question 34

What is the name given to the person filing a complaint?

Answer 34

Complainant

Question 35

What is the type of complaint that contains sufficient supporting evidence?

Answer 35

Legally Sufficient

Question 36

What happens when the complaint is found to be extremely serious in nature and poses an immediate and serious danger?

Answer 36

Secretary of DBPR issues a Summary (Emergency) Suspension

Question 37

What is the name given to the person whom a complaint is made about?

Answer 37

Respondent

Question 38

What is an election of rights form?

Answer 38

Form provided by the respondent to indicate whether they dispute the allegations made in a formal complaint

Question 39

What is the time period within which a respondent must file an election of rights form?

Answer 39

Within 21 days of the formal complaint

Question 40

What is a stipulation?

Answer 40

When the respondent agrees to a disciplinary action without agreeing or denying the complaint allegation

Question 41

When is an informal hearing held?

Answer 41

When the respondent does not dispute the facts of the allegations in the complaint

Question 42

What is a petition for review?

Answer 42

Document filed with the Florida District Court of appeals within 30 days of a final FREC order when the licensee does not agree with this order

Question 43

When is a writ of Mandamus issued?

Answer 43

When the district court of appeals restores a licensee's privileges after a final order by FREC

Question 44

What can a licensee do if the district court of appeals agrees with FREC's original decision?

Answer 44

They may appeal with the Florida Supreme Court

Question 45

What is the purpose of the Florida Real Estate Recovery Fund?

Answer 45

To reimburse members of the public who have lost money as a result of fraudulent actions of licensees

Question 46

When is reimbursement from the recovery fund made?

Answer 46

When the member of the public files a civil suit against a licensee and receives a judgement The licensees personal assets are used first but aren't enough to satisfy the judgement

Question 47

What is the maximum amount of the reimbursement from the Recovery Fund?

Answer 47

$50,000 per single judgment Up to $150,000 for multiple judgements Cannot recover court costs from the fund

Question 48

What happens to a licensee's license when their actions resulted in a disbursement from the recovery fund?

Answer 48

Their license is suspended until they repay the money with interest

Question 49

How can the FREC enforce repayment to the recovery fund?

Answer 49

They can place a lien against all property owned by the licensee

Question 50

How is the Recovery Fund funded?

Answer 50

By fees and fines paid by licensees