Core Concepts Page 1

Question 1

One judgment involving multiple licensees

Answer 1

$50,000Maximum from recovery fund

Question 2

Increasing or decreasing discount rate

Answer 2

Fed’s least effective tool to control cost of credit

Question 3

Can appeal to District Court of Appeals

Answer 3

If license has been suspended or revoked

Question 4

Sustained by fines & fees from licensee

Answer 4

Real Estate Recovery Fund

Question 5

Means corporation for profit

Answer 5

The word Company in a business name

Question 6

Temporary Incapacitation of license

Answer 6

Mandatory Suspension

Question 7

Liquidation Value Appraisal

Answer 7

Best used to determine value of a failing business

Question 8

Real Estate Cooperative

Answer 8

Does not involve fee simple ownership

Question 9

After PCP finds probable cause

Answer 9

A Formal Complaint is filed

Question 10

Unlicensed Individuals violating R.E. Law

Answer 10

Cannot be fined monetarily by the FREC

Question 11

Interest rates on Conv., FHA & VA loans

Answer 11

Determined by borrower / lender negotiations

Question 12

When licensee terminates employment

Answer 12

Must get a reissue before performing services

Question 13

Operating business risk

Answer 13

Risk income or expenses miss expectations

Question 14

Notice of Noncompliance or citations

Answer 14

Issued for minor infractions of FREC rules

Question 15

Charged by lender to increase yield (profit)

Answer 15

Discount Points charged to make a loan

Question 16

Must have active broker’s license

Answer 16

For officer or director to direct sales force

Question 17

Registered name of brokerage

Answer 17

Must appear in all advertising

Question 18

Sales Associate Compensation

Answer 18

Can only be paid by his or her employer

Question 19

Market Conditions (appreciation)

Answer 19

Consideration in Comparable Sales Approach

Question 20

Broker doubts disposition of escrow funds

Answer 20

Must notify FREC in writing

Question 21

Exempt from execution of judgment liens

Answer 21

Homestead property

Question 22

Paid a referral fee to out of state licensee

Answer 22

Not a violation of R.E. Law

Question 23

Deliver immediately to employing broker

Answer 23

Sales assoc. gets post-dated check as a deposit

Question 24

Recording deed in the public records

Answer 24

Know a constructive notice

Question 25

All funds received in connection with rental

Answer 25

Must be placed in brokers escrow account

Question 26

Reg. of Brokerage suspended or revoked

Answer 26

All sales associates are automatically inactive

Question 27

One brokerage representing both parties

Answer 27

Violation of Chapter 475

Question 28

SW1/4 of SW1/4 of NE 1/4 of SW 1/4 of Sec. 5

Answer 28

2.5 acres

Question 29

Availability of credit is directly related to

Answer 29

Demand for real estate in the market

Question 30

Fed’s strongest to to regulate our economy

Answer 30

Open Market (buying & selling high yielding T-Bills