Quiz 2 Real Estate License Law

Question 1

Which act or crime could disqualify an individual from becoming a licensee?
A) Committing a crime of moral turpitude
B) Using an illegal substance
C) Being convicted of a DUI
D) Having served jail time

Answer 1

A) Committing a crime of moral turpitude

Question 2

Jane is a college graduate with a four-year degree in real estate. She has a sales associate’s license and seeks to renew the license for the second time. What must she do?
A) She must take a sales associate’s post-license course.
B) She does not have to take 14 hours of continued education because of her degree in real estate.
C) She must fill out the form and pay the appropriate fee.
D) She must take 14 hours of continued education. She must fill out the form, pay the fee, and return it before the expiration date.

Answer 2

D) She must take 14 hours of continued education. She must fill out the form, pay the fee, and return it before the expiration date.

Question 3

When must the sales associate’s post-license be completed?
A) Every two years before every renewal time
B) Before the first license renewal
C) During the two years of the first licensing
D) After obtaining the 14-hour continuing education course

Answer 3

B) Before the first license renewal

Question 4

A $1.5 billion agency regulating one million professionals and businesses across some 200 licensee categories in Florida is
A) the Florida Department of Agriculture.
B) the Florida Department of Business and Professional Regulation.
C) the Florida Real Estate Commission.
D) the Florida Department of State.

Answer 4

B) the Florida Department of Business and Professional Regulation.

Question 5

A person owns her own company, specializing in negotiating sales of property for buyers and sellers. She does not take listings or show any property. Does she need a real estate license to do this?
A) She does not need a license because she owns the company.
B) She does not need a license because she was not selling property.
C) She needs a license because she owns her own company.
D) She needs a license because she negotiates sales between buyers and sellers.

Answer 5

D) She needs a license because she negotiates sales between buyers and sellers.

Question 6

A license applicant who has committed a crime of moral turpitude will:
A) probably not be granted a real estate license.
B) certainly wait 10 years from the time of the offense to receive a license.
C) be required to complete community service hours.
D) be allowed to perform property management duty, but not sales.

Answer 6

A) probably not be granted a real estate license.

Question 7

The three categories of real estate licenses are
A) broker, associate agent, agent.
B) sales associate, assistant broker, broker.
C) sales associate, broker associate, broker.
D) agent, sub-agent, and universal agent.

Answer 7

C) sales associate, broker associate, broker.

Question 8

Katherine loves to show and sell houses for others for compensation. She has been doing so for two years and without a license. She has been caught and she wants to obtain a license. What is likely to happen?

A) The FREC will make Katherine return all the compensation she has received before she can have a license.

B) The FREC will notify all of her buyers and sellers to see if Katherine was honest in her dealings with them.

C) The FREC will never give Katherine a license since she violated license law.

D) The FREC may deny her license since she was holding herself out to be a licensee, practicing real estate in the previous year.

Answer 8

D) The FREC may deny her license since she was holding herself out to be a licensee, practicing real estate in the previous year.

Question 9

Which activity would require a real estate license?
A) A trustee selling property for the estate of a deceased brother
B) An on-site employee/manager who takes leases of up to one-year
C) An owner selling his own property
D) An attorney who is managing a real estate brokerage office

Answer 9

D) An attorney who is managing a real estate brokerage office

Question 10

Joe is an appraisal graduate student at a state university. He is sent to appraise Farmer Tom’s property. Because it is such a good property, Joe asks Tom to list the property for sale. Does Joe need a real estate license?

A) No. Because Joe is a graduate student at a state university he is exempt from having a license.

B) No. Joe is just doing appraisal work and helping the farmer out.

C) Yes. He needs a license because all appraisal students need a license.

D) Yes. He needs a license because he wants to list the property, not just appraise it.

Answer 10

D) Yes. He needs a license because he wants to list the property, not just appraise it.

Question 11

Which is true when a broker refers a client to another broker in another state?

A) Real estate brokers cannot refer clients to other brokers in other states unless the broker has a nonresident Florida license.

B) Real Estate brokers should make a written referral agreement between brokers to be able to cooperate in a sale.

C) The selling sales associate is compensated directly by the seller; no broker is involved.

D) Brokers cannot refer clients from one state to another without the consent of the FREC.

Answer 11

B) Real Estate brokers should make a written referral agreement between brokers to be able to cooperate in a sale.

Question 12

For her first renewal, Broker Marie mistakenly took 14 hours of continuing education instead of the broker post-license course. Marie

A) must ask for an emergency thirty-day extension to complete the post-license course.

B) can no longer work as a broker because her license is null and void.

C) can ask for a waiver to use the CE courses for her renewal and complete the post-license course on her next renewal.

D) must pay a $200 fine and complete the post-license course on her next renewal.

Answer 12

B) can no longer work as a broker because her license is null and void.

Question 13

How many hours is a broker's pre-license course?
A) 45
B) 63
C) 72
D) 98

Answer 13

C) 72

Question 14

Jim is a convicted felon. He was found guilty of cheating on his income tax for four years, and he served time in jail. He has completed his sentence and wants to become a real estate sales associate. Which is most nearly correct?

A) Jim can never have a real estate license.

B) Jim must apply for his license, and it will be granted because he has served his time.

C) Jim can only be a sales associate, never a broker.

D) Jim must disclose his conviction on his real estate application.

Answer 14

D) Jim must disclose his conviction on his real estate application.

Question 15

Pearson VUE is
A) the Florida Testing Service for real estate.
B) a promise that you will pass the real estate exam.
C) a division of the DBPR.
D) a division of the FREC.

Answer 15

A) the Florida Testing Service for real estate.

Question 16

Which does NOT appear on a real estate license?
A) The name of the Governor
B) The name and address of the licensee
C) The name of the chairperson of the FREC
D) The name of the Secretary of the Department

Answer 16

C) The name of the chairperson of the FREC

Question 17

The phrase "Caveat Emptor" most nearly means what?
A) Let the buyer beware.
B) Let the seller beware.
C) Real estate is important.
D) The customer is always right.

Answer 17

A) Let the buyer beware.

Question 18

A motel desk clerk gives the names of persons looking to purchase a home to a broker in exchange for a small fee. Which BEST describes the situation?

A) The clerk would not need a license since his primary income comes from his motel salary.

B) He would not need a license since the finder’s fee was small.

C) He would need a license since he was accepting compensation from a broker.

D) He would only need a license if the amount was above $50.

Answer 18

C) He would need a license since he was accepting compensation from a broker.

Question 19

Janice did not answer truthfully on the background page of her application for licensure. When the Department found the discrepancy, she was asked about it, and she did not tell the truth again. What will likely happen to her application?

A) The application will be filed as pending.

B) Nothing will happen. The Division cannot handle this without a lawsuit.

C) The application may be denied, and she may be subject to subsequent disciplinary action.

D) None of the above.

Answer 19

C) The application may be denied, and she may be subject to subsequent disciplinary action.

Question 20

All are Florida residents EXCEPT

A) a Cuban national living in Florida since July 1, 1977.

B) a person living in Florida who has sold his properties in all other states, who lived in a mobile home for six months last year, and plans to stay in Florida.

C) a person moving to Florida who obtains a Florida driver’s license and Florida license plates and who intends to spend two years or more in Florida.

D) a person living in a condo for the winter season of two months.

Answer 20

D) a person living in a condo for the winter season of two months.

Question 21

A rural Electric Company has a paid employee who is charged with the responsibility of finding new land to put electric poles on. He buys and sells a property and negotiates for the electric company. Does he need a license?

A) He needs a license because he is negotiating for the property.

B) He needs a license because he is buying and selling property for others.

C) He does not need a license since it is not his property.

D) He does not need a license because he is an employee for an electric utility company.

Answer 21

D) He does not need a license because he is an employee for an electric utility company.

Question 22

A resort manager leases condominiums to out-of-town guests for several months at a time. The resort is licensed under 509 FS. He advertised the condos in a magazine with national exposure. Does this manager need a Florida real estate license?

A) No. A manager is an employee of a resort company licensed under 509 FS.

B) No. The manager only leases and advertises; he does not sell or list.

C) Yes. He represents others in leasing for a fee.

D) Yes. Managers are not exempt from real estate license law in Florida.

Answer 22

A) No. A manager is an employee of a resort company licensed under 509 FS.

Question 23

When is a candidate given the results of his or her licensing exam?

A) Within 10 days

B) After he or she finds a broker

C) As soon as he or she receives the license

D) Immediately

Answer 23

D) Immediately