Part 1 (Units 2) Getting Started In Real Estate Brokerage Business

Question 1

A general partnership must be created with a written document.

a. True
b. False

Answer 1

b. False

Ex. A general partnership is created by a contract that may be written, oral or implied from the conduct of the parties.

Question 2

A domestic corporation is incorporated in Florida and does business in Florida.

a. True
b. False

Answer 2

a. True
Ex. Domestic corporations are formed in the state in which it is doing business. A domestic corporation is incorporated in Florida and does business in Florida. Doing business outside of Florida would be considered a foreign corporation doing business in another state.

Question 3

An S corporation may have no more than 50 members.

a. True
b. False

Answer 3

b. False

Ex. S corporations may have no more than 100 stockholders.

Question 4

A sole proprietorhip must register with the DBPR but not with the Department of State.

a. True
b. False

Answer 4

a. True
Ex. A sole proprietorship can be formed without filing with the Florida Department of State. A sole proprietor who holds a current active and valid broker’s license can operate a real estate brokerage business. The brokerage must register with the DBPR.

Question 5

The only active broker of a real estate partnership dies. The vacancy must be filled within 14 calander days.

a. True
b. False

Answer 5

a. True
Ex. If the only active broker of a brokerage entity dies, resigns, or is unexpectedly unable to remain in the position as active broker, the vacancy must be filled within 14 calender days.

Question 6

A real estate corporation may appoint a temporary broker for up to 60 days without the need to register with the DBPR.

a. True
b. False

Answer 6

b. False
Ex. A temporary broker may be registered with the DBPR for up to 60 days without the need to comply with the Department of State (DOS) registration requirements. No later than 60 after the DBPR registration of the temporary broker, the brokerage must file proof that a new broker is properly registered with the DOS.

Question 7

A corporation sole is a business entity owned by one individual.

a. True
b. False

Answer 7

a. True
Ex. This is a ecclesiastical or church organization. It is normally headed by a bishop or other clerical official who has been empowered by a church to hold title to church property. The title descends to successors in office and not to heirs. A coporate sole can not be registered as a real estate brokerage entity.

Question 8

If two parties are not partners but give the public the impression that they are, and a reasonable person could assume they were partners, the parties will be considered limited partners.

a. True
b. False

Answer 8

b. False
Ex. The conduct of two or more persons create the “appearance” that a partnership exist is called Ostensible Partnership ( or quasi partnership ). It is considered fraudulent and deeitful if the public is led to believe that those with whom they are working with are partners.

Question 9

Brokers of two separate brokerage firms agree to combine efforts to market a larger shopping mall. The two brokers have formed a joint venture.

a. True
b. False

Answer 9

a. True
Ex. This is a temporary form of business arrangement often encountered in the real estate business. This structure is normally used when two or more parties combine their efforts to complete a single business transaction or a fixed number of business transactions.

Question 10

A license real estate broker is the sole broker and owner of a real estate brokerage corporation. The brokerage company handles residential transactions. The broker would like to set up a second (branch) office to run the commercial side of the business. The broker may register a trade name for the commercial office and continue to use the corporate name for the principal office.

a. True
b. False

Answer 10

b. False
Ex. If a broker has several branch offices, all the offices must use the same trade name. Branch offices are additional locations of a real estate brokerage or sole proprietorship and must have the same name as the main location (license).

Question 11

A sales associate wants to incorporate for tax purposes. The sales associate can incoporate as Florida’s Top Sales Associate, PLLC, as long as the associate registers the trade name with the DBPR.

a. True
b. False

Answer 11

b. False
Ex. Sales/Broker associates my not use a trade (fictitious) name. Sales/Broker associates must register under their legal name.

Question 12

A broker wants to do business as Complete Realty Services. The broker is not required to register the fictitious name with the DOS, however, the trade name Complete Realty Services must be registered with the DBPR.

a. True
b. False

Answer 12

a. True
Ex. Recall the previous example concerning Fast Service Realty. the broker is operating as a sole proprietorship, so there is no requirement to register Fast Service Realty as a fictitious name with the DOS. However, the broker must register the trade name, Fast Service Realty with the DBPR.

The Fictitious Name Act grants an exemption from the requirements to register a fictitious name with the DOS to a person licensed by the DBPR. Florida’s real estate license law does not require brokers and brokerage entitiie to register their trade name, d/b/a, or fictitious name with the DOS.

Question 13

A broker wants to register a recreation vehicle (RV) as a branch office. The DBPR will reject the broker’s application to register the RV as a branch office.

a. True
b. False

Answer 13

a. True
Ex. A broker’s to office must consist of at least one enclosed room in a building of stationary construction that will provide privacy to conduct negotiations and closings of real estate transactions.

Question 14

Registrations issued to a branch office are transferable to a different location if the move is within the registration period.

a. True
b. False

Answer 14

b. False

Ex. Registration issued to branch offices ar not transferable. A new location must be registered and the fee paid.

Question 15

A broker may register with the Florida DBPR a principal office located in the state of New York.

a. True
b. False

Answer 15

a. True
Ex. A broker may have the principal office or a branch office in another state. Before registering the out-of-state office with the DBPR, the broker must agree in writing to cooperate with the DBPR in the event an investigation is initiated under Chapter 475, F.S. The broker also must promply supply any documents requested by an authorized representative of the DBPR and personally appear at any designated office of the DBPR or other location in Florida or elswhere as reasonably requested by the DBPR.

Question 16

The DBPR regulates the size of the lettering on entrances signs.

a. True
b. False

Answer 16

b. False
Ex. The DBPR does not regulate the size of the lettering on the entrance sign; however, the sign must be easily observed and read by anyone entering the office.

Question 17

There must be a clear distinction between the broker’s name and the names of the company’s sales associates on the entrance sign.

a. True
b. False

Answer 17

a. True
Ex. A line or observable space must seperate the names of the real estate brokers from the names of the sales associateds or broker associates.

Little Mo Realty
Murl H. Crawford
Licensed Real Estate Broker
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Carl Stoufer, Broker Associate
Jake Williams, Sales Associate

Question 18

If a broker associate’s name is included on the office entrance sign, the word “REALTOR” may be included next to the associate’s name to indicate the license type.

a. True
b. False

Answer 18

b. False
Ex. The names of sales/broker associates are not required on the entrance sign. However, if the associates’ names appear on the sign, the appropriate license type must appear next to each associate’s name.

Question 19

The Florida Americans with Disabilities Accessibility Implementation Act adopts the federal ADA standards in Florida’s construction standards and codes.

a. True
b. False

Answer 19

a. True
Ex. All public facilities and commercial facilities must be newly constructed or renovated, if readily achievable, to meet accessibility standards.

Question 20

If a broker maintains a brokerage office in the broker’s residence, the broker is exempted from ADA accessibility requirements in all parts of the residence excepts the room where brokerage business is conducted.

a. True
b. False

Answer 20

b. False
Ex. ADA requirements also apply to private entities that own, lease, or operate commercial facilities, including real estate brokerage offices, even if the broker’s office is located in a private residence.

Question 21

A real estate sales associate is placing an advertisement for a listing property in the local newspaper. The sales associate wants to include his first name in the ad; however, he wants to omit his last name because it is very long and requires another lin of print, increasing the cost of the ad. It is sufficient for the sales associate to put only his first name in the add provided he includes the name of the brokerage firm.

a. True
b. False

Answer 21

b. False
Ex. If licensees include their personal name in an advertisement, they must use their last name as registered with the DBPR and include the name of the brokerage in the ad.

Question 22

A prospective tenant paid $100 for a rental list that was outdated. The prospect is entitled to a refund of $100; however, the request for a refund must be made in writing/oral.

a. True
b. False

Answer 22

b. False

Ex. If rental information is in error: 100% refund.

Question 23

Using the team name Best Team Realty is a violation of Commission rules.

a. True
b. False

Answer 23

a. True
Ex. Real estate team names may include the word team or group as part of the name. Real estate team name names may not include words in their name suggesting that the team or group is a seperate real estate brokerage.

Words that may not be used in team names:
Agency; Associates; Brokerage; Brokers; Company; Corporation, Corp., Inc., or LLC; LP, LLP, or Partnership; Properties or Property; Real Estate or Realty

Question 24

It is a violation of the Fair Housing Act for a landlord to refuse to rent to single college students.

a. True
b. False

Answer 24

b. False
Ex. No protection is given under the Fair Housing Act to individuals based on age, occupation, maritial status, sexual orientation, or gender identity.

Question 25

Real estate licensees should avoid using the proximity to churches and synagogues when advertising listed properties.

a. True
b. False

Answer 25

a. True

Ex. Using religious landmarks may indicate a religious preference, which would be a violation of the Fair Housing Act.

Question 26

A sales associate wants to call prospects to solicit new listings. The sales associate must first check the phone numbers against the National Do Not Call Registry.

a. True
b. False

Answer 26

a. True
Ex. The federal law covers both interstate ( between states ) and intrastate ( within state ) telemarketing calls. The do-not-call rules apply only to residential calls. Violators of the Do Not Call Registry can be fined up to $40,000 for each illegal call.

Question 27

The Junk Fax Prevention Act applies to residential fax machines only.

a. True
b. False

Answer 27

b. False
Ex. The FCC rules mandate that it is unlawful to send unsolicited advertisement to a residential or business fax machine without the recipient’s prior express invitation or permission.

Question 28

A real estate licensee may be fined $10,000 per call for violating Florida’s telemarketing law.

a. True
b. False

Answer 28

a. True
Ex. The Department of Agriculture and Consumer Services (FDACS) maintains a no sales solicitation calls geistry or consumers who do not want to receive sales calls or text on their residential and mobile telephones. The Florida statute mandate that the FDACS include in the Florida registry listings from the national registry that relate to Florida. Violators of Florida’s Telemarketing Act may be fined $10,000 per call.