Florida Real Estate Pre-Licensing State Exam 2022 Flashcards
A statutory deed in which the grantor makes no warranties to the grantee about the quality or extent of the title being conveyed is:
a. Special Warranty Deed
b. Bargain and Sale Deed
c. Quitclaim Deed
d. General Warranty Deed
c. Quitclaim Deed
A quitclaim deed in Florida does not offer any warranty to the grantee. It conveys whatever interest the grantor has on the property. It is usually used to make corrections or to cure clouds on title. The quitclaim deed does not contain the clause of seizin and uses the words quitclaim, remise and release. The general warranty deed is the deed that conveys title with all guarantees to the grantee.
- Although real estate investment offers many advantages to an investor, it has some negative aspects as well. Which of the following is not a characteristic advantage of real estate investment?
a. Rate of Return
b. Leverage
c. Liquidity
d. Equity Buildup
c. Liquidity
Although real estate investment offers many advantages to an investor, it has some negative aspects as well.
When a developer plans for a large project in Florida, studies need to be performed regarding the project’s impact in the community before the city approves it. These studies are summarized in a:
a. Planned Unit Development filing
b. Environmental Impact Statement
c. Special Exceptions Rider
d. Developments of Regional Impact Statement
b. Environmental Impact Statement
An Environmental Impact Statement is a summarized report that shows the long term impact of the project on waste-disposal systems, air quality, traffic, the local economy and so forth.
Mark bought a house in an old neighborhood and remodeled it with high-end materials. He even hired a home decorator to give the last touches to it. The house looked beautiful, and Mark was pleased with it. However, a year later his employer offered him a better job in a distant location, and Mark decided to sell the house before relocating. After all, he would make good money on the sale because all the improvements he did to the house, and he will be able to buy in his new location instead of renting. Mark hired realtor Trevor who came by the house and prepared a Comparative Market Analysis for Mark. The results of the report were very disappointing for him because the house has not acquired enough equity to make the profit he imagined.
This is an example of:
a. External Obsolencence
b. Overimprovement
c. Market Conditions
d. Physical Obsolescence
b. Overimprovement
An overimprovement occurs when an owner invests more money than what is reasonably expected to recapture. External obsolescence is any loss in value due to changes in the neighborhood or area where the house is located, for example, an active Railtrack, a new speedway and anything that can make the location less desirable by prospective buyers. External obsolescence is incurable because it is out of the control of the property owner. Physical obsolescence is directly related to the condition of the property such as wear and tear, structural issues, defective air conditioning, old roof.
How many acres are there in the N 1/4 of the NE ½ of the SW ¼ and the SE ½ of the NW ¼?
a. 80 acres
b. 20 acres
c. 100 acres
d. 2.5 acres
c. 100 acres
To determine the number of acres from the legal description of property, you first must remember that there are 640 acres in one section.
- Take the denominators of each fraction in the legal description and multiply them.
4 x 2 x 4 = 32
- Take 640 and divide by results of the multiplication of the denominators
640 ÷ 32 = 20 acres
You must remember that if the legal description contains the conjunction “and” this means you need to do two separate transactions and add them at the end to arrive at the correct amount of acres.
- Repeat step 1.
2 x 4 = 8
- Repeat step 2.
640 ÷ 8 = 80 acres
- Now add the results from steps 2 and 4 to find the total amount of acres.
20 acres + 80 acres = 100 acres.
All of the following are protections granted by the Florida Constitution to homestead property except:
a. Granting tax exemptions when assessing property taxes. b. Granting protection to the family in case of deceased of the titled owner. c. Granting protection of the size of homestead in case of Bankruptcy. d.Granting protection from enforcing of the vendor's liens.
d.Granting protection from enforcing of the vendor’s liens.
Florida allows property owners to homestead their principal residence. The benefits of the homestead are the protection of the family in case the owner on the title dies and the allowance of up to $50,000 in property tax exemption. The Homestead also protects the size of the property (160 acres of contiguous land and improvements outside the city and ½ acre within the city) as well as the protection of personal property (up to $1,000) in case of bankruptcy and to protect from the forced sale to pay for personal debts. Nevertheless, the homestead does not protect from foreclosure if the homestead property is the collateral to a defaulted mortgage loan, neither from unpaid property taxes, special assessments, foreclosure for unpaid condo association fees or homeowners association fees, or vendor and construction liens secured by the property.
The four essential elements of a valid contract are:
a. The contractual capacity of the parties, Earnest money, Legal purpose, Consideration. b. Legal purpose, Consideration, Offer and acceptance, Notarization. c. Offer and acceptance, Consideration, Acknowledgment, Contractual capacity of the parties. d. Consideration, Offer and acceptance, Contractual capacity of the parties, Legal purpose.
d. Consideration, Offer and acceptance, Contractual capacity of the parties, Legal purpose.
For a real estate contract to be legally sufficient in Florida, the parties must be of contractual legal capacity, meaning that they are not mentally disabled and are of legal age to contract. Also, there must be consideration, which means the benefits each party bargains for. There should also be offer and acceptance; both parties need to agree on the terms of the contract voluntarily. The contract also should have a legal purpose, avoiding any illegal provision on it like establishing payments of commissions to parties who are not licensed. There is no legal need to acknowledge or notarize a real estate contract, nor to have earnest money or acknowledgment.
Peter rents an office in a class A building in FL. He pays a monthly amount of $2,500 on an annual lease. The monthly payment includes the use of internet, electricity and cleaning. Peter has a:
a. Net lease
b. Percentage lease
c. All inclusive Lease
d. Gross Lease
d. Gross Lease
In a gross lease in Florida, the tenant (lessee) pays a fixed amount that can include the payment for utilities and other related services while the landlord (lessor) pays for insurance, taxes, maintenance, and utilities. The net lease also is known as “triple net,” on the contrary, makes the tenant responsible for expenses of maintenance, utilities, taxes, and insurance. The percentage lease stipulates that the tenant will pay rent based on the gross sales received from his business in the leased property. There is no all-inclusive lease.
A building of 1200 units has currently 348 units for rent. Calculate the building vacancy rate.
a. 33%
b. 71%
c. 29%
d. 41%
c. 29%
Calculate the vacancy rate as follows:
The number of vacant units available for rent divided by the total number of units in the building will determine the vacancy rate.
348 vacant units ÷ 1200 units = 0.29 or 29% vacancy rate.
Or you can use the following forumula:
1200 units x R/100 = 348 units
1200 x R/100 = 348
1200 x R = 34,800
R = 29% vacancy rate
In Florida, the priority of mortgage liens is determined by:
a. The date of the closing. b. The date of the application for the mortgage loan. c. The date of recording. d. The date of the loan approval.
c. The date of recording.
The priority of a mortgage lien is determined by the date in which the document is registered with Clerk of the Courts in the county in which the property is located. This is also known as the recording date of the document. The date of the application, loan commitment or closing is not relevant.
The Right to Reinstate clause provides for the mortgagor’s right to:
a.Sell or transfer the property without the lender’s prior consent.
b. To stop foreclosure proceedings provided the mortgagor pays all sums that are due.
c. To pay off the loan early without penalty.
d. To receive a deferment of payment for six months in case of a hardship.
b. To stop foreclosure proceedings provided the mortgagor pays all sums that are due.
The Right to Reinstate clause provides for the mortgagor’s right to reinstate the original repayment terms in the note after the mortgagee initiated the acceleration clause and provided all sums that are due are paid, including the expenses incurred by the mortgagee to enforce the mortgage. If the mortgagor attempts to sell or transfer the property without the lender’s prior consent, the lender can advance the due date of the debt through the Acceleration Clause. The Prepayment Penalty clause provides for the mortgagor’s ability to pay off the debt before the due date. There is no covenant in the mortgage that allows for deferments of payments on the mortgage.
The two instruments created with a mortgage loan are:
a. The purchase contract and the deed.
b. The promissory note and the mortgage.
c. The closing statement and the mortgage.
d. The general warranty deed and the promissory note.
b. The promissory note and the mortgage.
The two instruments created by the origination of a mortgage loan are the promissory note which is the legal instrument that services as evidence of the debt and the mortgage which is the instrument that pledges the property as security for the debt.
Joshua’s father is a real estate investor in Florida. He purchases vacant lots and constructs single-family homes. He has three houses finished that he needs to sell. In the summer, Joshua, who just graduated from high school, was looking for something to do that could bring him some income to save for a car he wanted to buy. The father asked Joshua to help him sell the houses and promised that he would pay him $1,000 for each house sold. Joshua accepted and spent the whole summer doing open houses and trying to find qualified buyers for the houses but without success. At the end of the summer, the houses were still on the market. Under the provisions of Florida Statute 475 this:
a. Is permissible because there’s an exception that allows relatives to sell property as long as the compensation does not exceed $1,000.
b. is a violation of the statute because only a real estate licensee can provide real estate services and receive compensation for it.
c. is a violation of the statute, although only the father violated it because he was the one offering to pay a commision.
d. is not a violation. Neither Joshua nor his father violated the statute because the houses were not sold and therefore no commission was paid.
b. is a violation of the statute because only a real estate licensee can provide real estate services and receive compensation for it.
his scenario is a violation of the Florida real estate law because only a real estate licensee can provide real estate services and receive compensation for it. It is a violation of Chapter 475 to provide real estate services to others for compensation of any type if the person providing such services does not hold a current and active real estate license at the time, unless specifically exempted by the law. It is a third-degree felony with a penalty of not more than $5,000 and/or up to five years in jail per offense. There is no exception for relatives or compensation under $1,000. Even though no commission was paid, both father and son violated the statute with their agreement.
A licensee did not disclose that one of his listings had a code violation. As a result, the buyer was affected. This situation is considered:
a. Culpable negligence
b. Material fact
c. Moral Turpitude
d. Fraud
d. Fraud
The licensee intentionally deceived the buyer with the purpose of closing the sale and earn his commission. The law prohibits deceptive practices. When a sales associate or broker intentionally omits information that is relevant and material to a transaction, the licensee is guilty of fraudulent and dishonest dealing by trick, scheme or device.
Joan is representing Richard in the sale of his home as a single agent in FL. William, another sales associate in her office, has a buyer who shows interest in visiting the property because it fits his buying criteria. Before Joan can show the property to William and his buyer, which steps does she needs to follow?
a. She needs to find out what is the best time for Richard to allow them in the property.
b. She needs to obtain the seller's signature on a Consent to Transition to Transaction Broker. Then she can show the property to William and his buyer.
c. She needs to ask William and his buyer to sign a Consent to Transition to Transaction Broker before they visit the property.
d. She needs to secure the signature of the seller and the buyer in a Consent to Transition to Transaction Broker before showing the property.
d. She needs to secure the signature of the seller and the buyer in a Consent to Transition to Transaction Broker before showing the property.
Joan needs to secure the signature of Richard, her seller, and the signature of William’s buyer in a Consent to Transition to Transaction Broker before showing the property. Florida law prohibits a dual agency. Therefore, in order for a brokerage that has a Single Agent Relationship with a buyer or a seller to assist both parties on a real estate transaction, the licensee must change to a Transaction Brokerage Relationship with the prior written consent of the parties.
Linda Mae is hired by a landlord to rent his property in Florida. She lists the property and advertises it in social media. Immediately she receives a call from a prospective tenant. They are a family of four, from Argentina and want to establish their new residence in the area. Linda Mae makes an appointment and shows the property to the family the next day in the morning. They fall in love with the property and offer to provide their deposit and all their documentation that same day to secure the rent. Linda Mae calls her landlord to give him the good news. The landlord asks about the tenants, and when he finds out that they are Hispanic, he refuses to accept them. As much as Linda Mae tries to persuade him, he refuses to accept those tenants. What should Linda Mae do now?
a. Linda Mae should tell the landlord that his position is discriminatory and violates the Florida Fair Housing Act, therefore if he is not willing to reconsider his position she is withdrawing from the listing.
b. Linda Mae should tell the tenants that the Landlord does not rent to Hispanic families and that she will look for another property for them.
c. Linda Mae should tell the tenants that the landlord withdrew the property from the market because it needs some unexpected repair.
d. Linda Mae should tell the landlord that he must rent to the applicant’s to avoid a law suit.
a. Linda Mae should tell the landlord that his position is discriminatory and violates the Florida Fair Housing Act, therefore if he is not willing to reconsider his position she is withdrawing from the listing.
The Florida Fair Housing Act prohibits discriminatory acts based on race, sex, disability, nationality, religion, color, or familial status. Real Estate licensees must ensure there is equal access to housing. Any charge of discrimination is considered valid by HUD unless there is evidence that can refute such charge. In a case of discrimination in which a licensee is involved, the burden of proof is placed on the broker to prove his/her innocence to HUD. Also, the Florida Real Estate Commission might initiate disciplinary proceedings against the licensee.
A homestead property is located outside the city limits in Pasco County, FL. The assessment value of the property is $190,000.00. The city tax rate is 7.8 mills, the county tax rate is 9.8 mills, and the school board’s rate is 5.7 mills. The owner is an army veteran with 10% disability as a result of his service in Iraq. He is also a widower and has qualified and received homestead tax exemption. How much does the owner have to pay for property taxes?
a. $1,318.10 b. $ 766.65 c. $1,088.10 d. $2,227.25
d. $2,227.25
To calculate the property taxes, you take the following steps:
- You should remember that the school board only recognizes the base exemption of $25,000.00. City and County, on the contrary, recognize the entitlement of the owner to an additional $25,000.00 exemption when the property’s assessed value is greater than $75,000.00.
- Figure out Taxable Value for School Taxes
$190,000 assessed value - $25,000 base homestead exemption - $5,000 additional exemption for service disability - $500 widower exemption = $ 159,500.00 taxable value for school taxes.
- Figure out Taxable Value for County Taxes
$190,000 assessed value - $50,000 homestead exemption - $5,000 additional exemption for service disability - $500 widower exemption = $134,500 taxable value for county taxes.
- Figure out Tax Due
$ 159, 500.00 x .0057 = $ 909.15 school taxes
$ 134, 500.00 x .0098 = $ 1,318.10 county taxes
City taxes do not apply because the property is out of city limits.
$909.15 + $1,318.10 = $2,227.25
Discount points are a loan fee charged by the lender to:
a. Originate the loan
b. Secure the interest rate
c. Lower the interest rate on the loan
d. Qualify the borrowers for the loan
c. Lower the interest rate on the loan
The discount points are a fee paid by the borrower or a third party such as the developer to obtain a lower interest rate on a loan. The fee paid to originate the loan is the Origination fee. The fee paid to the secure the interest rate is the lock fee. There is no fee charged to qualify a borrower for a loan.
Marlon is a listing agent that just took a listing that calls for a graduated sales commission structure. The commission is 4% for the first $400,000 of the sale price. 5.5% on the next $100,000 and 7% of the amount over $500,000. What is the total commission if the property sells for $575,000?
a. $21,500.00
b. $23,500.00
c. $25,750.00
d. $26,750.00
d. $26,750.00
Calculate the answer as follows:
$400,000 x 4% = $16,000
$100,000 x 5.5% = $5,500.00
$75,000 x 7% = $5,250.00
$16,000 + $5,500 + $5,250.00 = $26,750.00
Real estate licensees provide specialized services to others for compensation. They market their expert information and knowledge in three meaningful areas:
a. Property transfer, maintenance companies, and insurance companies.
b. Property transfer, market conditions, and how to market real estate and businesses.
c. Market conditions, schools in the area, and the population in the area.
d. How to market real estate and businesses, knowledge of termites and mold.
b. Property transfer, market conditions, and how to market real estate and businesses.
A competent real estate licensee must know the legal steps and requirements to transfer property and of the conditions that can invalidate a real estate contract. They also need to know the changes in market conditions for sales and leases, the changes in the zoning laws and the building moratoriums. Finally, they need to know the most effective ways to market each of the listings they procure. To be an expert, a licensee does not need to know maintenance or insurance companies, nor be knowledgable on schools and populations of the area; this information would be helpful to the clients but is not determinant to the experience of the agent. An agent should never provide information about mold or termites other than recommending the buyers to seek an inspection to avoid conflicts of interest or misrepresentations.
Falsifying a license application is a:
a. Misdemeanor of second degree
b. Misdemeanor of first degree
c. Felony of the third degree.
d. Disqualification of the candidate from applying for a term of 10 years
c. Felony of the third degree.
It is a third-degree felony to falsify information on a license application. The penalty is a fine of not more than $5,000 and/or up to five years in prison.
As part of the license application, the candidates must provide their social security number. This is a requirement of the Florida law to:
a. To determine if the applicant is a US citizen.
b. To determine if the applicant is a legal resident.
c. To determine if the applicant has good credit.
d. To determine if the applicant is in compliance with child support obligations.
d. To determine if the applicant is in compliance with child support obligations.
The social security number is required by Florida Law in all professional license applications to determine if the applicant is in compliance with child support obligations. Florida Real Estate law does not require an applicant to be a US citizen or a legal resident of the country nor does it require a credit verification of the applicants.
Stephanie is the broker of record for Happy Realty. She just received notice from one of her agents that there are conflicting demands in a failed sale. Chapter 475, F.S., provides a dispute resolution when there are conflicting demands. What is the period Stephanie has to notify the Florida Real Estate Commission (FREC) of the situation?
15 business days
The broker has 15 business days to notify FREC in writing of the conflicting demands. From the time she received the conflicting demands, she has 30 business days to implement one of the four settlement procedures.
Henry is a successful real estate agent who does not have enough time to handle his client base. He just thought of a solution that would help him improve his service, hire a personal assistant. The assistant will take over some time-consuming tasks. However, he needs to be careful because if he hires an unlicensed assistant this person could only perform those activities approved by FREC. What would the unlicensed personal assistant be allowed to do?
Assemble documents for closing
An unlicensed personal assistant is not allowed to show property, he cannot perform walkthrus neither can he answer questions regarding a listing unless he is reading this information on a written flyer or other document approved by the licensee. Other clerical tasks, such as assembling documents for closing, having keys made for company listings, ordering inspections and gathering information for comparative market analysis are allowed by FREC.
The powers and duties of the FREC include three important areas, the executive powers, the quasi-legislative and the quasi-judicial powers. What is NOT a responsibility of the quasi-judicial powers of the FREC?
Dictate sentence for criminal violations of Chapter 475.
FREC, under its quasi-judicial responsibility, makes determinations of violations, imposes administrative penalties such as fines, carrys out suspension and revocation of licenses and also grants or denies applications. But in the cases of criminal violations of the law, its responsibility is only to report such violations to the state’s attorney.
Which of the following statements is true regarding a mortgage loan originator (MLO)?
a. A mortgage loan originator makes loans.
b. A mortgage loan originator must have a real estate license.
c. A mortgage loan originator is the same as a broker.
d. A mortgage loan originator must have a seperate license.
d. A mortgage loan originator must have a seperate license.
A real estate appraiser’s fee for professional service is based on which of the following?
a. A percentage of the fair market value of the property.
b. A percentage of the property’s sales price.
c. The time and difficulty of the appraisal.
d. A percentage of the property’s gross income.
c. The time and difficulty of the appraisal.
Which of the following best describes the real estate brokerage business?
a. Construction business
b. Service business
c. Business with few opportunities available
d. Simple business
b. Service business
All of the following are resposibilities of a property manager, EXEPT:
a. Renting property for an absentee owner.
b.Overseeing maintenance.
c. Collecting rent.
d. Preparing leases.
d. Preparing leases.
What does the term ‘farming” refer to in real estate?
a. Specializing in agricultural properties
b. Specializing in the sales of orange groves or cattle farms
c. Specializing in one geographic area
d. Working in a coopertive manner
c. Specializing in one geographic area
Which insurance policies can a real estate licensee offer to the public without additional state licensing?
a. Renter’s insurance
b. None of the above
c. Fire insurance
d. Flood insurance
b. None of the above
What is the purpose of the National Association of REALTORS?
a. Organize anti govornment activities
b. Promote unethical practice of real estate professionals.
c. Promote ethical practice of real estate professionals.
d. Preserve the right of individuals to own real property
through an exchange of information.
d. Preserve the right of individuals to own real property
through an exchange of information.
What does the designation of REALTOR signify?
a. Anyone in possession of a real estate license is a
REALTOR®
b. The designation identifies the real estate professional
as a member of the NAR.
c. The designation is evidence that the licensee has an
extensive background in the real estate profession.
d. The designation is evidence that the licensee has
completed extensive real estate studies.
b. The designation identifies the real estate professional
as a member of the NAR.
A developer contracts to build a home according to the buyer’s specifications. This is an examplen of which type of building?
a. Tract
b. Custom
c. Speculative
d. Subdivision
b. custom
Which of the following best describes licensees who are involved in business brokerage?
a.They must be able to analyze financial statements and
understand balance sheets.
b. They are not required to know much about the business
they are selling.
c. They must have a separate license.
d. They never become involved in the tax aspects of the
business.
a.They must be able to analyze financial statements and
understand balance sheets.
Real estate licensees are required to be knowledgeable in all of the following areas, EXCEPT:
a. Marketing
b. Valuation
c. Property transfer
d. Accounting
d. Accounting
Which service provided by real estate licensees requires the most experience and knowledge?
a. Property management
b. Counseling
c. Appraising
d. Agricultural sales
b. Counseling
An appraiser who is registered, licensed, or certified under F.S. 475, Part II, must be utilized in which of the following?
a. All appraisals
b. The appraisal of residential property
c. The appraisal of nonresidential property
d. Federally-related transactions
d. Federally-related transactions
When a developer completes construction of a new subdivision, all streets, electric, water, and sewer installation are finished and deeded to the city or county. What is this process called?
a. A quit claim deed
b. An easement
c. Dedication
d. Annexation
c. Dedication
Which of the following assignments would be acceptable for a Florida real estate licensee who does not represent themselves as an appraiser, and follows the Uniform Standards of Professional Appraisal Practice (USPAP)?
a. An assignment to give an estimate of value for an
attorney in a divorce case.
b. An assignment to appraise a single family home for a
VA loan.
c. An assignment to value a condominium for an FHA loan.
d. An assignment to appraise a time share unit for which a
loan is being obtained from a Federally insured
institution.
a. An assignment to give an estimate of value for an
attorney in a divorce case.
. The Florida Real Estate Commission was first created in what year?
a. 1932
b. 1925
c. 1923
d. 1919
b. 1925
A sales associate failed to complete the required post-license education prior to their renewal
deadline. What is the status of the sales associate’s license?
a. Revoked
b. Suspended
c. Involuntarily inactive
d. Void
d. Void
Which statement correctly applies to an actively licensed attorney who is a member in good standing with the Florida Bar?
a. The attorney may charge commissions in connection
with real estate activities.
b. The attorney is exempt from biennial 14-hour continuing
education requirements to maintain a real estate
license.
c. The attorney is not allowed to simultaneously hold a real
estate license.
d. The attorney may be licensed as a real estate broker,
but not as a sales associate.
b. The attorney is exempt from biennial 14-hour continuing
education requirements to maintain a real estate license.
What is a broker associate?
a. A broker who employs one or more sales associates
b. A sales associate
c. A broker who is employed as a sales associate
d. A sales associate who is employed as a broker
c. A broker who is employed as a sales associate
Which statement is correct concerning an applicant whose real estate application was denied by
the Department of Business and Professional Regulation?
a. The denial is final and no appeal may be taken by the
applicant.
b. An appeal may be filed with the District Court of Appeal
within 90 days.
c. The Department is not required to inform the applicant
of the reason for the denial.
d. The applicant must be notified in writing of the reason
for the denial and advised of the right to request a
formal hearing.
d. The applicant must be notified in writing of the reason
for the denial and advised of the right to request a formal hearing.
A licensed sales associate wishes to work for Broker A during the week, and works in a different
town with Broker B on the weekend. Which statement best describes this situation?
a. This is legal if the sales associate has a group license.
b. This is legal if the brokers have multiple licenses.
c. This is a violation of FS 475.
d. This is legal, provided that the sales associate is an
independent contractor, not an employee of the brokers.
c. This is a violation of FS 475.
An active Florida licensee decides to move to North Carolina, but wishes to keep her Florida
license active and continue to practice real estate in Florida. Which of the following best
describes this situation?
a. The licensee must be located in Florida to sell real
estate in Florida.
b. The licensee must be a broker to sell real estate in
Florida if she is located outside of Florida.
c. The licensee must obtain a North Carolina real estate
license.
d. The licensee must notify the Department of her change
of address, and continue to comply with all Florida
regulations.
d. The licensee must notify the Department of her change
of address, and continue to comply with all Florida
regulations.
Which of the following statements is correct regarding a broker’s authority to act on behalf of the principal?
a. A broker can refuse offers on behalf of the principal.
b. A broker can buy the listed property without consent of
the principal.
c. A broker must follow all legal instructions of the principal
or withdraw.
d. A broker must ignore the instructions of a principal when
the instructions are not in the best
interests of the principal.
c. A broker must follow all legal instructions of the principal
or withdraw.
Broker Tom sold a property which was listed with broker Alice.
Tom was unable to attend the closing, so Alice collected the entire commission.
Alice refused to pay Tom his share of the commission.
What could Alice be charged with?
a. Failure to account
b. Collecting an overage
c. Commingling
d. Fraud
a. Failure to account
A real estate licensee who is working with a seller receives a call from another broker stating
that, “I am representing a buyer as the buyer’s broker. I’m standing in front of one of your listed
properties with my buyer. “What can the licensee infer from this conversation?
a. The licensee is rquired to collect the No Brokerage
Relationship Discosure prior to giving any information
to the broker.
b. The agent who is calling is in a single agency
relationship.
c. The buyer’s broker must first contact the listing broker
for permission to enter into this relationship.
d. Unless the licensee is a single agent for the seller, the
licensee should stay away from this
transaction.
b. The agent who is calling is in a single agency
relationship.
