Practice Exam 1

Question 1

A member of the U.S. armed forces is transferred to active duty in Jacksonville, Florida. The service member’s spouse holds a valid New York real estate license. The service member’s spouse desires a Florida real estate license. Which statement is TRUE?

Answer 1

Upon an approved application for a license, the DBPR must issue the spouse a Florida real estate license.

Question 2

Which statement is FALSE regarding mutual recognition agreements?

Answer 2

Mutual recognition applicants may be Florida residents or nonresidents.

Question 3

Eight months ago a licensed real estate sales associate who was a caregiver for their sick parent did NOT complete the post license education requirement by their initial license expiration.
Which statement applies to this situation?

Answer 3

The Commission has no legislative authority to extend the post-license requirement beyond six months.

Question 4

Which duty is NOT a duty in all three types of brokerage relationships?

Answer 4

Use skill, care, and diligence

Question 5

The property owner of a listed property has instructed the broker not to show the property when the owner is out of town. A potential buyer asks the sales associate to show the listed property; however, the owner is out of town.
How should the sales associate handle the situation?

Answer 5

Explain to the buyer that the sales associate cannot show the property until the owner returns.

Question 6

A sales associate has been directed by her real estate broker to commit an unlawful act. The sales associate should

Answer 6

refuse and withdraw from the relationship.

Question 7

The broker and the seller agree to single agency representation. The broker MUST

Answer 7

present the seller with the single agent notice and give the seller a copy of the notice.

Question 8

The brokerage relationship disclosure requirements in Chapter 475, F.S., do NOT apply to

Answer 8

an agreement to lease a residential condominium.

Question 9

A transaction broker may disclose, without exception

Answer 9

to the buyer, the listed price and physical characteristics of the home.

Question 10

Which real estate form does NOT require a signature?

Answer 10

No brokerage relationship disclosure form

Question 11

During a lunch meeting, three brokers discuss how to increase their businesses. They decide that broker A will work exclusively northeast of downtown, broker B will work exclusively northwest of downtown, and broker C will work exclusively south of downtown. This is a

Answer 11

Violation of antitrust laws called market allocation.

Question 12

A sales associate is selling her own property “by owner.” Which statement is TRUE regarding real estate licensees selling property “by owner”?

Answer 12

If she uses her personal phone number in the ad, the licensee should disclose to a buyer prospect that she is a real estate license at the first point of meaningful negotiation.

Question 13

A broker’s escrow account may NOT be in

Answer 13

an insurance company located in Florida.

Question 14

A dispute over escrowed funds arises between the buyer and seller. The broker notifies the FREC of the conflicting demands and requests that the Commission issue an escrow disbursement order.
The FREC informs the broker that it declines to issue an escrow disbursement order (EDO) and the broker must use an alternative settlement procedure. Which alternative method CANNOT be used to resolve the matter?

Answer 14

Petition for review or appeal

Question 15

In which situation is the broker NOT exempt from the notice requirements regarding conflicting demands?

Answer 15

A dispute over escrow funds related to a property inspection

Question 16

A prospective tenant was recently transferred to
- Jacksonville. He was not familiar with the city so he purchased a rental list for $100 from a local real estate company. The prospective tenant referred to the list while looking for an apartment but was unable to locate a suitable unit. He has requested a refund of his $100. Which applies?

Answer 16

He is entitled to a refund of $75 if requested either verbally or in writing within 30 days.

Question 17

The owner of an office building has signed an exclusive listing agreement with a broker. The listing agreement contains information about the broker’s lien rights in accordance with Part III of 475, F.S. If the owner sells the property without paying the broker a commission, the broker

Answer 17

may place a lien against the seller’s net proceeds from the sale.

Question 18

A sales associate has hired a licensed personal assistant to help increase the sales associates business. The licensed assistant will receive $12 an hour for administrative work and 35% of any commissions earned. The licensed assistant

Answer 18

may be paid by the sales associate for administrative work but must be paid by the broker for commissions earned.

Question 19

The legal term that applies when two real estate brokers share office space in such a manner that the public is led fraudulently to believe that a partnership exists is referred to as

Answer 19

an ostensible partnership.

Question 20

On July 1, a broker received conflicting demands from a buyer and seller regarding a good faith deposit. Twelve business days later, the broker is unable to resolve the conflict between the parties and notifies the FREC. How many days does this broker have remaining to implement a settlement procedure?

Answer 20

18 business days

Question 21

An individual does NOT intend to engage in real estate activity. However, he does plan to be an officer of a real estate brokerage corporation.
Which status is required?

Answer 21

Registered with the DBPR

Question 22

An applicant was issued a sales associates license by mistake. She has been informed that the license has been revoked. Which applies?

Answer 22

This action is referred to as “revoke withour prejudice.”

Question 23

A DBPR investigator is authorized, in cases that involve a first-time offense of a minor violation, to issue

•A. a cease and desist order.
B. a notice of noncompliance.
C. a letter of guidance.
D. an administrative fine.

Answer 23

a notice of noncompliance.

Question 24

A claimant has obtained a judgment against a licensee. The judgment includes liquidated damages of $15,000, punitive damages of $12,500, and attorney fees of $2,500. The claimant may be awarded what amount from the recovery fund?

Answer 24

$15,000

Question 25

Real property can be converted into personal property by
A. severance.
B. substitution.
C. accretion.
D. attachment.

Answer 25

Severance

Question 26

The owner of an automobile parts business rents space in a commercial shopping center. The business owner has installed shelving and display racks. The shelving is bolted to the floors and the racks are attached to the walls. The racks and shelving are

A. real property.
B. trade fixtures.
C. property of the landlord.
D. real estate.

Answer 26

trade fixtures.

Question 27

How many days’ notice is required to terminate a month-to-month tenancy at will?

А. 3
B. 7
C. 15
D. 30

Answer 27

15

Question 28

An estate or interest in real property that can be measured by the lifetime of an individual is a type of

Answer 28

freehold estate.

Question 29

An interest in real property that exists for a designated period, created by a properly executed lease agreement, is

Answer 29

An estate for years

Question 30

Salaried employees sell time-share units for a large owner-developer in Ft. Myers, Florida. Each December, the employees receive a year-end bonus based on sales production for the year. Must the employees be licensed as real estate sales associates?

Answer 30

Yes, they must be licensed as real estate sales associates because part of the compensation is based on real estate sales production.

Question 31

If I lease my lake front property to you for an indefinite period of time, your interest in real property would be

Answer 31

A tenancy at will

Question 32

The legal document that allows a purchaser of a cooperative to occupy a particular unit is referred to as

Answer 32

a proprietary lease.

Question 33

Legal tice always passes from the seller to the buyer

Answer 33

when the deed is voluntarily delivered and voluntarily accepted.

Question 34

An owner sold her home to a married couple and gave them a warranty deed. The couple moved into the home but did not record the deed. Two days later, the seller died, and her heirs in another state sold the property without any knowledge of the previous sale. The heirs conveyed title to a single man, who did record the deed. Who owns the property?

Answer 34

The couple

Question 35

Buyer and seller are discussing the type of deed that is to be conveyed. The buyers are requiring a guarantee that the seller owns the property and has a legal right to sell. This guarantee is part of which clause in the deed?

Answer 35

Seisin

Question 36

Private restrictions on ownership of real property include which restriction?

Answer 36

Deed restrictions

Question 37

The key difference between police power and eminent domain is whether

Answer 37

any compensation was paid to an affected owner.