Real Estate 101

Question 1

A real estate brokerage is a business in which real estate related activities are performed under the authority of a licensed real estate broker.

Question 2

The Real estate market is local in nature. licensees bring local knowledge and expertise in many areas to the real estate transaction. expected to have expert knowledge in property transfer, Valuation and Market Conditions and marketing.

Question 3

Many licensees will concentrate on one type of style of property or one particular neighborhood that is called FARMING: finding and specializing in a particular neighborhood or type of property, referred to as a farm area or target market

Question 4

PROPERTY TRANSFER:

• REALTOR MUST HAVE EXPERT KNOWLEDGE
• CONVEYING OWNERSHIP OR RIGHTS TO A PROPERTY

Question 5

VALUATION AND MARKET CONDITIONS:
-REAL ESTATE LICENSEES TYPICALLY PREPARE A CMA - COMPARATIVE MARKET ANALYSIS, WHICH IS A VALUE ESTIMATE BASED ON RECENT SALES OF SIMILAR PROPERTIES IN THE SAME NEIGHBORHOOD. THE COMPARATIVE MARKET ANALYSIS UTILIZES MANY CONCEPTS USED IN AN APPRAISAL

Question 6

A LENDER MAY HIRE A REAL ESTATE AGENT TO PERFORM A BROKER PRICE OPINION (BPO) IN A SHORT SALE TRANSACTION TO HELP DETERMINE THE SELLING PRICE OF THE PROPERTY. THE REPORT INCLUDES PHOTOS OF THE PROPERTY AND NEIGHBORHOOD ANALYSIS OF COMPARABLE PROPERTIES ALONG WITH LOCAL AND REGIONAL MARKET INFORMATION.

Question 7

THE MULTIPLE LISTING SERVICE SYSTEM PROVIDES AN EXTENSIVE MARKETING TOOL FOR REAL ESTATE LICENSEES.

Question 8

ACCORDING TO FLORIDA STATUTE F.S.475 A RESIDENTIAL TRANSACTION IS DEFINED AS
- THE SALE OF ANY IMPROVED RESIDENTIAL PROPERTY OF FOUR UNITS OR FEWER.
UNIMPROVED PROPERTY INTENDED FOR FOUR UNITS OR FEWER.
- AGRICULTURAL PROPERTIES OF TEN ACRES OR LESS
- LEASES WITH OPTIONS TO PURCHASE ALL OR A PORTION OF IMPROVED PROPERTY OF FOUR OR FEWER RESIDENTIAL UNITS
- DISPOSITIONS OF BUSINESS INTERESTS INVOLVING PROPERTY OF FOUR OR FEWER RESIDENTIAL UNITS

Question 9

COMMERCIAL SALES OR LEASING:
MUST HAVE BASIC KNOWLEDGE OF TAX LAWS THAT AFFECT INCOME EARNED. ANALYZING THE PAST AND FUTURE POTENTIAL INCOME DERIVED FROM INVESTMENT PROPERTY.

Question 10

BUSINESS BROKERAGE:
A REALTOR WHO SPECIALIZES IN THE LISTING OF BUSINESSES, REFERRED TO AS BUSINESS OPPORTUNITIES, MUST BE ABLE TO ESTIMATE THE VALUE OF A BUSINESS BEING OFFERED FOR SALE OR PURCHASE.

Question 11

VALUING A BUSINESS REQUIRES AN ANALYSIS OF FINANCIAL STATEMENTS AND BALANCE SHEETS

Question 12

THE VALUE OF A BUSINESS IS CALLED GOING CONCERN VALUE:

IT INCLUDES INCOME, TANGIBLE AND INTANGIBLE ASSETS AND GOODWILL. IN ADDITION TO THE VALUE OF THE REAL PROPERTY.

Question 13

ABSENTEE OWNERS: OWNERS WHO BUY INCOME PROPERTY AS INVESTMENTS AND DEPEND ON PROFESSIONALS TO MANAGE THEM.

Question 14

TYPICALLY COMPENSATION OF PROPERTY MANAGERS IS BASED ON A PERCENTAGE OF THE RENTS COLLECTED FROM THE TENANTS. PERCENTAGE COMPENSATION IS BENEFICIAL TO BOTH THE OWNER AND THE MANAGER.

Question 15

RENTAL AGENT FINDS THE TENANT FOR PROPERTIES AND COLLECTS A FEE FOR THE SERVICE BUT DOES NOT USUALLY MANAGE THE PROPERTY ONCE THE TENANT HAS BEEN LOCATED.

Question 16

A PROPERTY MANAGERS RESPONSIBILITIES INCLUDE

• LOCATING TENANTS
• COLLECTING RENTS
• HANDLING THE PAYMENT OF TAXES
• INSURANCE
• OPERATING EXPENSES AND MAINTAINING RECORDS.
• SCHEDULING MAINTENANCE.

Question 17

PROPERTY MANAGERS DO NOT WRITE OR PREPARE LEASES BUT THEY MAY ASSIST PROSPECTIVE TENANTS IN COMPLETING ATTORNEY PREPARED LEASES.

Question 18

CERTAIN PROPERTY MANAGERS WHO ARE EMPLOYED AND COMPENSATED BY COMMUNITY ASSOCIATIONS ARE REQUIRED BY FLORIDA LAW TO OBTAIN AND MAINTAIN A COMMUNITY ASSOCIATION MANAGEMENT LICENSE.

Question 19

A CAM LICENSE IS REQUIRED WHEN THE COMMUNITY ASSOCIATION EMPLOYS A PROPERTY MANAGER WHO RECEIVES COMPENSATION FOR CERTAIN MANAGEMENT SERVICES, AND THE COMMUNITY ASSOCIATION SERVED CONTAINS MORE THAN 10 UNITS OR HAS AN ANNUAL BUDGET IN EXCESS OF $100,000

Question 20

COUNSELING: IS THE SERVICE OF ANALYZING EXISTING OR POTENTIAL PROJECTS AND PROVIDING EXPERT ADVICE TO MEMBERS OF THE PUBLIC BASED ON THEIR PERSONAL JUDGEMENT

Question 21

REAL ESTATE COUNSELORS ARE USUALLY COMPENSATED ON A FLAT FEE REGARDLESS IF THE ADVICE IS USED OR NOT.

Question 22

COUNSELING IS A HIGHLY SPECIALIZED SERVICE AND REQUIRES A GREATER LEVEL OF KNOWLEDGE AND EXPERIENCE THAN ANY OTHER FACET OF THE REAL ESTATE PROFESSION. COUNSELORS MUST NOT ONLY HAVE A SUPERIOR KNOWLEDGE OF REAL ESTATE INVESTMENTS BUT ALSO HAVE DETAILED KNOWLEDGE OF ALTERNATIVE INVESTMENT AND STRATEGIES.

Question 23

APPRAISING: IS THE PROCESS OF DEVELOPING AN OPINION OF VALUE OF REAL PROPERTY.

Question 24

AN APPRAISER CONDUCTS AN INDEPENDENT, IMPARTIAL AND OBJECTIVE ANALYSIS BASED ON RESEARCH AND DATA PERTAINING TO THE VALUE OF THE SPECIFIED REAL PROPERTY.

Question 25

APPRAISAL FEE’S ARE BASED ON THE TIME, EFFORT, AND EXPENSE INVOLVED FOR COMPLETION OF THE ASSIGNMENT. NOT ON THE VALUE OF PROPERTY.

Question 26

TITLE XI OF FIRREA ( FINANCIAL INSTITUTIONS REFORM RECOVERY AND ENFORCEMENT ACT OF 1989.
WAS DIRECTED TOWARD THE APPRAISAL PROFESSION AND REQUIRED THAT APPRAISALS UTILIZED BY FEDERALLY REGULATED LENDERS IN FEDERALLY RELATED TRANSACTIONS BE DEVELOPED AND REPORTED IN CONFORMITY WITH THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE

Question 27

THE USPAP WAS DEVELOPED BY THE APPRAISAL FOUNDATION.

Question 28

APPRAISALS USED IN A FEDERALLY RELATED TRANSACTION MUST BE PREPARED IN COMPLIANCE WITH USPAP BY APPRAISERS REGISTERED, LICENSED, OR CERTIFIED UNDER PART II OF FS 475

Question 29

REAL ESTATE LICENSEES CAN PERFORM VALUATIONS UNDER THE REAL ESTATE LICENSE LAW IF THE VALUATION IS NOT USED IN A FEDERALLY RELATED TRANSACTION. REAL ESTATE LICENSEES CAN PREPARE A CMA AND OR GIVE A BPO BUT CAN NOT PERFORM APPRAISALS.

Question 30

MORTGAGE LOAN ORIGINATORS MUST HAVE SEPARATE LICENSE ISSUED BY THE FLORIDA DEPARTMENT OF FINANCIAL SERVICES

Question 31

A SEPARATE LICENSE IS REQUIRED TO SELL REAL ESTATE, REAL ESTATE LICENSEES MUST BE KNOWLEDGEABLE CONCERNING CERTAIN ASPECTS RELATED TO INSURANCE.

Question 32

THERE ARE THREE GENERAL PHASES OF DEVELOPMENT AND CONSTRUCTION:

1. LAND ACQUISITION
2. SUBDIVIDING AND DEVELOPING
3. RECORDING THE SUBDIVISION PLAT MAP.

Question 33

DEVELOPERS OFTEN ACQUIRE LAND AND SUBDIVIDE IT INTO STREETS, LOTS, AND SOMETIMES BLOCKS. EACH STREET IS NAMED, AND EACH BLOCK AND LOT IS NUMBERED.

Question 34

BUILDING PERMITS CAN NOT BE ISSUED UNTIL THE PLAT HAS BEEN MADE PART OF THE PUBLIC RECORD

Question 35

THE TRANSFER OF OWNERSHIP IS REFERRED TO AS DEDICATION AND GIVES THE PUBLIC THE RIGHT OF USE.

Question 36

CUSTOM BUILDING: WHEN A CONTRACTOR IS EMPLOYED TO BUILD A STRUCTURE ACCORDING TO THE CUSTOMER’S SPECIFICATIONS

Question 37

SPEC BUILDING IS WHEN A CONTRACTOR BUILDS A STRUCTURE BEFORE SECURING A BUYER WITH THE HOPE OF SELLING THE FINISHED STRUCTURE.

Question 38

NAR: NATIONAL ASSOCIATION OF REALTORS: IS THE LARGEST TRADE AND PROFESSIONAL ASSOCIATION WITH A GOAL OF PRESERVING THE RIGHT OF INDIVIDUALS TO OWN REAL PROPERTY THROUGH AN EXCHANGE OF INFORMATION

Question 39

THE TERM REALTOR IS A REGISTERED TRADEMARK WITH NAR

Question 40

NAR: TO ASSIST MEMBERS THROUGH VARIOUS SOCIETIES AND INSTITUTES TO INCREASE THEIR PROFESSIONAL KNOWLEDGE AND SKILLS

Question 41

TRACT BUILDING: OS WHEN A DEVELOPER ACQUIRES A LARGE TRACT OF LAND RECORDS A SUBDIVISION PLAT MAP AND USES A MODEL FROM WHICH SALES MAY BE MADE.

Question 42

THE INSITUTE OF REAL ESTATE MANAGEMENT AWARDS THE DESIGNATION OF THE CERTIFIED PROPERTY MANAGER.

Question 43

FLORIDA ASSOCIATION OF REALTORS: IS THE LARGEST TRADE ASSOCIATION IN THE STATE. FAR DOES ALL ITS BUSINESS AS FLORIDA REALTORS

Question 44

FAR: MEMBERS CAN TAKE ADVANTAGE OF A HOST MEMBERSHIP BENEFITS INCLUDING BUSINESS CONTACTS, NETWORKING OPPORTUNITIES, EDUCATIONAL OFFERINGS, RESEARCH AND LEGISLATIVE REPRESENTATION

Question 45

LOCAL ASSOCIATION OF REALTORS: LOCAL REALTOR ASSOCIATIONS PROVIDE ACCESS TO THE MULTIPLE LISTING SERVICE (MLS)

Question 46

LOCAL ASSOCIATION OF REALTORS: UNLIMITED NETWORKING POSSIBILITIES, SPECIALTY EDUCATION, LOCAL MARKET RESEARCH, TECHNOLOGY, WEBSITES, SCHOOL INFORMATION, CODE OF ETHICS ENFORCEMENT AND ARBITRATION.

Question 47

LOCAL LEVEL: PLANNING AND ZONING, PROPERTY TAXATION, HEALTH CODE REGULATIONS CONTROLLED BY LOCAL GOVERNMENT CAN ALSO IMPOSE A MORATORIUM

Question 48

FEDERAL LEVEL: LEGISLATION THAT AFFECTS THE OPERATION OF LENDING INSTITUTIONS HAS HAD AN ENORMOUS EFFECT ON THE REAL ESTATE PROFESSION. MONETARY POLICY ADOPTED BY THE FEDERAL RESERVE SYSTEM HAS A DAILY INFLUENCE ON THE CONSTRUCTION AND REAL ESTATE INDUSTRIES.

Question 49

THE THREE AREAS OF EXPERTISE REAL ESTATE LICENSEES BRING TO THE TRANSACTION RELATE TO

Answer 49

PROPERTY TRANSFERS, VALUATION, AND MARKETING

Question 50

THE COMPOSITE VALUE OF THE REAL AND PERSONAL PROPERTY, PLUS INTANGIBLE ASSETS OF A BUSINESS IS CALLED GOING CONCERN VALUE

Question 51

VALUING A BUSINESS REQUIRES AN ANALYSIS OF

Answer 51

BALANCE SHEETS, AND FINANCIAL STATEMENTS

Question 52

APPRAISING IS THE PROCESS OF DEVELOPING AN OPINION OF VALUE

Question 53

ONE TYPE OF A RESIDENTIAL SALES TRANSACTION INVOLVES THE SALE OF ANY IMPROVED RESIDENTIAL PROPERTY OF 4 UNITS OR LESS

Question 54

AFTER COMPLETION OF CONSTRUCTION OF A SUBDIVISION, THE STREETS, SIDEWALKS, AND COMMON AREAS ARE FREQUENTLY CONVEYED TO THE CITY OR COUNTY IN A PROCESS CALLED DEDICATION

Question 55

A MORTGAGE LOAN ORIGINATOR MUST HAVE A SEPERATE LICENSE

Question 56

A REAL ESTATE APPRAISER’S FEE FOR PROFESSIONAL SERVICE IS BASED ON THE TIME AND DIFFICULTY OF THE APPRAISAL

Question 57

THE FOLLOWING BEST DESCRIBES THE REAL ESTATE BROKERAGE BUSINESS: A SERVICE BUSINESS

Question 58

PROPERTY MANAGERS ARE NOT RESPONSIBLE FOR PREPARING LEASES

Question 59

WHAT DOES THE DESIGNATION OF REALTOR SIGNIFY? THE DESIGNATION IDENTIFIES THE REAL ESTATE PROFESSIONAL AS A MEMBER OF NAR

Question 60

REAL ESTATE LICENSEES ARE EXPECTED TO BE KNOWLEDGEABLE IN ALL OF THE FOLLOWING AREAS EXCEPT: ACCOUNTING

Question 61

THE FLORIDA REAL ESTATE LICENSE LAW, F.S. 475 IS TO PROTECT THE PUBLIC. THE DEPARTMENT IS ESSENTIALLY A CONSUMER PROTECTION AGENCY

Question 62

CAVEAT EMPTOR : MEANS LET THE BUYER BEWARE

Question 63

1923: FLORIDA ENACTED ITS FIRST REAL ESTATE LICENSE LAW. FLORIDA’S FIRST LAW REQUIRED VIOLATIONS TO BE PURSUED IN THE COURTS

Question 64

1925 THE FRIST REAL ESTATE COMMISSION WAS CREATED TO ADMINISTER AND ENFORCE THE LAW, THEREBY STREAMLINING THE PROCESS BY REMOVING THE NECESSITY FOR COURT ENFORCEMENT

Question 65

1991: F.S. 475 WAS REVISED FOR THE CREATION OF PART 1 AND PART 2 OF THE LAW. PART 1: IS CONCERNED WITH THE LICENSURE REGULATION OF REAL ESTATE LICENSEES. PART2: ADMINISTERED BY THE NEWLY CREATED FLORIDA REAL ESTATE APPRAISAL BOARD DEALS WITH REGISTRATION, LICENSURE, AND CERTIFICATION AND APPRAISERS

Question 66

COMMISSION: FREC: FLORIDA REAL ESTATE COMMISSION

Answer 66

DEPARTMENT: REFERS TO THE DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION: DBPR

Question 67

DIVISION: DIVSION OF REAL ESTATE: DRE

Answer 67

LICENSE MEANS ANY PERMIT, REGISTRATION, CERTIFICATE, OR LICENSE USSUED BY THE DEPARTMENT

Question 68

A FLORIDA REAL ESTATE LICENSE IS REQUIRED WHEN ANYONE PERFORMS A SERVICE THAT IS SPECIFIED UNDER F.S. 475 AND WHEN ALL OF THE FOLLOWING CONDITIONS ARE SIMULTANEOUSLY PRESENT, UNLESS THAT INDIVIDUAL IS OTHERWISE EXEMPT UNDER THE LAW.

Question 69

PERFORMING A SERVICE OF REAL ESTATE, IN THE STATE OF FLORIDA, FOR ANOTHER, FOR COMPENSATION.

Question 70

F.S. 475.01 SPECIFIES THE REAL ESTATE SERVICES THAT REQUIRE THOSE WHO PERFORM SUCH SERVICES TO POSSESS A CURRENT AND VALID ACTIVE FLORIDA REAL ESTATE LICENSE.

Answer 70

APPRAISING, AUCTIONING, BUSINESS BROKERAGE,BUYING, COUNSELING, EXCHANGING, LEASING, LISTING, PROPERTY MANAGEMENT, ADVERTISING REAL ESTATE SERVICES, RENTING,SELLING, SYNDICATING, SELLING TIMESHARE UNITS.

Question 71

AUCTIONEERS ARE LICENSED AND REGULATED BY THE DBPR UNDER PART IV OF F.S. 468. REAL ESTATE LICENSEES ARE EXEMPT UNDER F.S.468.383 FROM OBTAINING A SEPERATE AUCTIONEER’S LICENSE SINCE AUCTIONING REAL ESTATE IS A SERVICE OF REALESTATE THAT IS AUTHORIZED UNDER F.S. 475.01

Question 72

SALES ASSOCIATE: GENERALLY SPEAKING SOMEONE WHO IS NEW TO THE REAL ESTATE PROFESSION APPLIES FOR AND MUST COMPLETE ALL PRE-LICENSE REQUIREMENTS TO OBTAIN THEIR INITIAL LICENSE AS A SALES ASSOCIATE.

Answer 72

A SALES ASSOCIATE MUST BE EMPLOYED BY A REAL ESTATE BROKER OR OWNER DEVELOPER TO PRACTICE REAL ESTATE

Question 73

LICENSED SALES ASSOCIATES MUST ALSO COMPLETE ALL POST LICENSE REQUIREMENTS PRIOR TO THEIR INITIAL LICENSE EXPIRATION IN ORDER TO KEEP THEIR SALES ASSOCIATE LICENSE AND CONTINUE PRACTICING REAL ESTATE

Question 74

THE MOST COMMON SERVICES OF REAL ESTATE ARE:

1. APPRAISING
2. BUYING
3. AUCTIONING
4. RENTING
5. SELLING
6. ADVERTISING
7. LEASING
8. EXCHANGING

Question 75

BROKER: A BROKER IS A PERSON WHO PERFORMS SERVICES OF REAL ESTATE AS AN AGENT FOR ANOTHER AND RECEIVES COMPENSATION FOR THOSE SERVICES EITHER DIRECTLY OR INDIRECTLY

Answer 75

A BROKER MUST MAINTAIN AN OFFICE AND MAY HIRE SALES ASSOCIATES OR BROKER ASSOCIATES TO PERFORM SERVICES OF REAL ESTATE ON HIS OR HER BEHALF.

Question 76

A LICENSED SALES ASSOCIATE WHO WISHES TO APPLY TO BE A BROKER MUST HAVE BEEN EMPLOYED UNDER ONE OR MORE ACTIVELY LICENSED BROKERS FOR AT LEAST 24 MONTHS WITHIN THE PRECEDING 5 YEARS.

Answer 76

LICENSURE UNDER AN OWNER DEVELOPER DOES NOT SATISFY THIS REQUIREMENT.

Question 77

BROKER ASSOC: QUALIFIED TO RECEIVE A BROKER LICENSE BUT CHOOSES INSTEAD TO BE EMPLOYED UNDER THE DIRECTION, CONTROL, AND MANAGEMENT OF AN ACTIVELY LICENSED BROKER OR OWNER DEVELOPER. IN THIS CAPACITY, THE BROKER ASSOCIATE ACTS AS A SALES ASSOCIATE NOT AS A BROKER. SHOULD A BROKER ASSOC BECOME INACTIVE HIS OR HER LICENSE STATUS WILL BE CHANGED TO AN INACTIVE BROKER LICENSE.

Question 78

GENERAL QUALIFICATIONS FOR LICENSURE: 
QUALIFICATIONS INCLUDE: 
MUST HVE A SOCIAL SECURITY NUMBER
MUST BE 18 YEARS OF AGE
MUST HOLD A HIGHSCHOOL DIPLOMA 
MUST BE HONEST, TRUTHFUL, TRUSTWORTHY, AND OF GOOD CHARACTER AND HAVE A GOOD REPUTATION FOR FAIR DEALING

Question 79

AN APPLICANT FOR A FLORIDA REAL ESTATE LICENSE IS NOT REQUIRED TO BE A CITIZEN

Question 80

PRE-LICENSING: COMPLETE THE REQUIRED SALES ASSOC OR BROKER PRELICENSE EDUCATION AND PASS THE PRE- LICENSE COURSE FINAL EXAM
SUBMIT AN APPLICATION FOR THE STATE EXAM ALONG WITH PAYMENT OF A FEE FOR THE INITIAL LICENSE
SUBMIT ELECTRONIC FINGERPRINTS
PASS THE STATE EXAMINATION WITH A SCORE OF 75% OR HIGHER

Question 81

POST LICENSING: FOR THE FIRST LICENSE RENEWAL YOU MUST COMPLETE THE REQUIRED SALES ASSOC OR BROKER POST LICENSE EDUCATION AND PASS THE POST LICENSE COURSE EXAM

PAY A RENEWAL FEE.

Question 82

CONTINUING EDUCATION: FOR ALL SUBSEQUENT TWO YEAR RENEWAL PERIOD

COMPLETE THE REQUIRED CE
PAY A RENEWAL FEE

Question 83

THE STATE OF FLORIDA HAS ENTERED INTO CONTRACTUAL AGREEMENTS REFERRED TO AS MUTUAL RECOGNITION WITHIN A LIMITED NUMBER OF STATES. LICENSED THROUGH MUTUAL RECOGNITION ELIMINATES DOING 60 HOURS.

Question 84

THE DEPARTMENT HAS 30 DAYS IN WHICH TO REVIEW AN APPLICANTS APPLICATION FOR ERRORS OR OMISSIONS. THE APPLICATION WILL BE APPROVED OR DENIED WITHIN 90 DAYS AFTER RECEIPT OF THE COMPLETED APPLICATION.

Question 85

AN APPLICATION CAN BE DENIED: INCOMPLETE OR CONTAINS MINOR EROR SUCH AS FORGETTING TO INCLUDE THE APPLICATION FEE OR OMITTING A REQUIRED SECTION OR SIGNATURE. THE APPLICATION WOULD BE DENIED WITHOUT PREJUDICE. IT WILL BE RETURNED FOR CORRECTION AND RESUBMISSION.

Question 86

APPLICATION DENIAL: IF AN APPLICATION TO TAKE THE STATE EXAM IS DENIED BY THE DEPARTMENT, THE APPLICANT WILL BE NOTIFIED IN WRITING. THE NOTIFICATION WILL IDENTIFY THE REASONS FOR DENIAL AND ADVISE THE APPLICANT THAT HE OR SHE HAS 21 DAYS FROM THE DATE OF RECEIPT TO REQUEST A FORMAL HEARING BEFORE AN ADMINISTRATIVE LAW JUDGE IN ACCORDANCE WITH F.S.120

Question 87

MILITARY LICENSEES CAN KEEP THEIR LICENSE IN GOOD STANDING WITHOUT RENEWING OR PAYING DUES FOR A PERIOD OF 2 YEARS AFTER DISCHARGE FROM ACTIVE DUTY.

Question 88

ANYONE WHO FAILS THE END OF COURSE FINAL EXAMINATION MAY TAKE AN ALTERNATIVE FINAL EXAMINATION AFTER WAITING A MINIMUM OF 30 DAYS, WITHOUT HAVING TO TAKE THE ENTIRE COURSE

Question 89

A SALES ASSOC WHO WISHES TO BECOME LICENSED AS A BROKER MUST SATISFACTORILY COMPLETE THE REQUIRED PRE-LICENSE FREC II EDUCATION COURSE. CONSISTS OF 72 HOURS INCLUDING END OF COURSE FINAL EXAMINATION.

Question 90

SALES ASSOC:
63 HOUR COURSE FREC I
PASS 70 OR HIGHER

Answer 90

BROKER: 72 HOUR COURSE FREC II
PASS 70 OR HIGHER

COURSE COMPLETION CERTIFICATE
STATE EXAM
PASS 75 PERCENT OR HIGHER

Question 91

EMPLOYMENT BY A BROKER: A SALES ASSOCIATE CAN NOT RECEIVE COMPENSATION FOR PERFORMING REAL ESTATE SERVICES FROM ANYONE OTHER THAN HIS OR HER EMPLOYING BROKER. CAN ONLY WORK FOR ONE BROKER AT A TIME.

Question 92

EMPLOYMENT BY AN OWNER DEVELOPER: THE OWNER DEVELOPER MUST REGISTER WITH THE DEPARTMENT BUT DOES NOT RECEIVE A REAL ESTATE LICENSE.

Answer 92

DEVELOPER= UNLICENSED= SALARY

Question 93

WHEN EMPLOYED BY AND LICENSED UNDER AN OWNER DEVELOPER A SALES ASSOCIATE OR BROKER ASSOCIATE ACTS AS THE OWNER DEVELOPER’S AGENT IN PERFORMING SERVICES OF REAL ESTATE AND CAN PERFORM SERVICES FOR COMPENSATION.

Answer 93

OWNER DEVELOPERS CAN HIRE UNLICENSED SALES ASSOCIATE PERSONS TO SELL PROPERTY THEY OWN AS LONG AS THE SALES PERSONS ARE PAID A SALARY. IF OWNER DEVELOPER PAYS COMMISSIONS OR TRANSACTION BASED FEE’S THEY MUST HIRE LICENSED SALES ASSOCIATES OR BROKER ASSOCIATES.

Question 94

THE REAL ESTATE LICENSE INDICATES THE NAME OF THE LICENSEE. THE TYPE OF LICENSEE, THE TYPE OF LICENSE, THE LICENSEE’S ADDRESS, AN EFFECTIVE DATE, AN EXPIRATION DATE, SEAL OF THE STATE OF FLORIDA, THE NAME OF THE GOVERNOR AND THE NAME OF THE SECRETARY OF THE DBPR.

Question 95

SALES ASSOC FIRST RENEWAL: A SALES ASSOCIATE MUST COMPLETE A 45 HOUR POST LICENSE COURSE PRIOR TO THE EXPIRATION DATE OF HIS OR HER INITIAL LICENSE PERIOD.

THE LICENSE OF A SALES ASSOCIATE WHO FAILS TO COMPLETE THIS REQUIREMENT WILL BECOME VOID AND THE LICENSEE WILL BE OUT OF BUSINESS.

Question 96

1ST RENEWAL IF YOU DONT DO IT, IT’S VOID- NO GRACE PERIOD.

Question 97

BROKER FIRST RENEWAL: A BROKER MUST COMPLETE ONE OR MORE COURSES THAT TOTAL 60 HOURS OF POST LICENSE EDUCATION PRIOR TO THE EXPIRATION DATEOF HIS OR HER INITIAL LICENSE PERIOD.

Answer 97

THE LICENSENSEE MAY REVERT TO AN ACTIVE SALES ASSOCIATE BY TAKING A 14 HOUR CE COURSE DURING THE 6 MONTHS IMMEDIATELY FOLLOWING THE EXPIRATION OF THE BROKER’S LICENSE.

Question 98

FAILURE TO COMPLETE THESE REQUIREMENTS BY THE RENEWAL DEADLINE WILL CHANGE THE LICENSE TO VOID

Question 99

CONTIN EDUCATION: ALL ACTIVE OR INACTIVE LICENSEES, WHETHER A BROKER OR SALES ASSOCIATE MUST COMPLETE 14 HOURS OF COMMISSION- APPROVED CONTINUING EDUCATION.

Question 100

ACTIVELY LICENSED FLORIDA ATTORNEYS WHO ARE IN GOOD STANDING WITH THE FLORIDA BAR AND ARE OTHERWISE QUALIFIED UNDER THE REAL ESTATE LICENSE LAW ARE EXEMPT FROM THE CE REQUIREMENTS

Question 101

ATTORNEY IN FACT: PERSON WHO IS GRANTED AUTHORITY UNDER A POWER OF ATTORNEY.

Answer 101

ATTORNEY AT LAW: MAY PERFORM LEGAL SERVICES ON BEHALF OF THEIR CLIENTS. THEY MAY PREPARE DOCUMENTS, HANDLE CLOSINGS, AND GIVE LEGAL ADVICE. THEY MAY NOT PERFORM SERVICES OF REAL ESTATE FOR COMPENSATION, RECEIVE SALES COMMISSIONS, OR REFERRAL FEES WITH OUT A REAL ESTATE LICENSE.

Question 102

CERTIFIED PUBLIC ACCOUNTANTS: MAY PERFORM ACCOUNTING SERVICES ON BEHALF OF THEIR CLIENTS, THEY MAY PREPARE DOCUMENTS AND HANDLE CLOSINGS. THEY MAY NOT PERFORM SERVICES OF REAL ESTATE FOR COMPENSATION, RECEIVE SALES COMMISSIONS OR REFERRAL FEES WITHOUT A REAL ESTATE LICENSE.

Question 103

COURT APPOINTEES: ARE PERSONS WHO ARE APPOINTED BY A COURT OF LAW TO PERFORM SERVICES OF REAL ESTATE. THEY MAY DO SO FOR A FEE OR SALARY BUT NOT COMMISSION.

Answer 103

COURT APPOINTEE'S INCLUDE: 
TRUSTEES
RECEIVERS 
MASTERS IN CHANCERY 
COURT APPOINTED APPRAISERS

Question 104

SALARIED EMPLOYEES: WHO ARE EMPLOYED BY THE FOLLOWING ENTITIES MAY PERFORM REAL ESTATE SERVICES FOR THEIR EMPLOYERS:

GOVERNMENT AGENCIES
RAILROADS
RURAL ELECTRIC COOPERATIVES
PUBLIC UTILITIES

Question 105

INDIVIDUALS MAY BUY, SELL, OR PERFORM SERVICES OF REAL ESTATE FOR THEMSELVES WITHOUT HAVING A REAL ESTATE LICENSE.

Question 106

PARTNERS IN A PARTNERSHIP: WHO PERFORM REAL ESTATE SERVICES FOR THE PARTNERSHIP ARE DEALING FOR THEMSELVES AS WELL AS FOR THE OTHER PARTNER. IF EACH PARTNER RECEIVES A PRO-RATA SHARE OF PROFIT BASED ON HIS OR HER OWNERSHIP INTEREST IN THE PARTNERSHIP NO REAL ESTATE LICENSE IS REQUIRED FOR ANY OF THE PARTNERS.

Answer 106

IF A PARTNER RECEIVES A SHARE OF PROFIT IN EXCESS OF HIS OR HER OWNERSHIP INTEREST IN THE PARTNERSHIP ALL PARTNERS ARE IN VIOLATION OF THE LICENSE LAW.

Question 107

SALARIED EMPLOYEES OF INDIVIDUALS, PARTNERSHIPS, OR CORPORATIONS WHO OWN REAL ESTATE MAY PERFORM REAL ESTATE SERVICES ON BEHALF OF THEIR EMPLOYERS WITHOUT BEING LICENSED. HOWEVER ANY SUCH EMPLOYEE WHO RECEIVES A BONUS, COMMISSION, OR TRANSACTIONAL COMPENSATION IN ADDITION TO A NORMAL SALARY MUST BE LICENSED.

Question 108

CEMETERY LOT SALESPERSONS ARE EXEMPT

Question 109

SALARIED MANAGERS OF CONDO’S ARE EXEMPT WHEN RENTING INDIVIDUAL UNITS WITHIN SUCH CONDO OR COMPLEX IF RENTALS ARRANGED BY THE PERSON ARE FOR PERIODS NO GREATER THAN ONE YEAR.

Question 110

IN WHAT YEAR WAS THE FLORIDA REAL ESTATE COMMISSION CREATED?

Answer 110

1925

Question 111

WHAT IS THE PURPOSE OF THE REAL ESTATE LICENSE LAW?

Answer 111

TO PROTECT THE PUBLIC

Question 112

A SALES ASSOC FAILED TO COMPLETE THE REQUIRED POST LICENSE EDUCATION PRIOR TO RENEWAL. WHAT IS THE STATUS OF THE LICENSE?

Answer 112

VOID

Question 113

THE DBPR ( DEPARTMENT) WAS CREATED BY F.S. 455 TO REGULATE THE PROFESSIONS IN THE MOST COST EFFICIENT MANNER

Question 114

THE DIVISION: IS RESPONSIBLE FOR EXAMINATION, LICENSING, AND REGULATION OF OVER A QUARTER OF A MILLION INDIVIDUALS, CORPORATIONS, REAL ESTATE SCHOOLS.

Question 115

THE DIRECTOR OF THE DIVISION IS APPOINTED BY THE SECRETARY OF THE DEPARTMENT AND IS SUBJECT TO APPROVAL BY A MAJORITY OF THE MEMBERS OF THE COMMISSION/FREC

Question 116

F.S.475: CONTAINS THE FOLLOWING 4 PARTS

Answer 116

PART I: REAL ESTATE BROKERS, SALES ASSOCIATES, AND SCHOOLS. DEFINES THE FLORIDA REAL ESTATE COMMISSION.

Question 117

PART II: APPRAISERS

Answer 117

PART III: THE COMMERCIAL REAL ESTATE SALES COMMISSION LIEN ACT , ALLOWS A BROKER TO PLACE A LIEN ON AN OWNERS NET PROCEEDS FOR COMMISSIONS EARNED DURING A SALES TRANSACTION.

Question 118

PART IV: THE COMMERCIAL REAL ESTATE LEASING COMMISSION LIEN ACT. ALLOWS A BROKER WHO HAS EARNED A COMMISSION TO PLACE A LIEN ON AN OWNER’S REAL ESTATE INTERESTS IN COMMERCIAL REAL ESTATE THAT HAS BEEN LEASED.

Question 119

DBPR= TALLAHASSEE 
DIVISION= ORLANDO

Question 120

DUTIES OF THE DEPARTMENT: RESPONSIBLE FOR LICENSING AND REGULATION OF REAL ESTATE

Answer 120

THE COMMISSION IS AN ADMINISTRATIVE AGENCY THAT ONLY HAS SEVEN MEMBERS

Question 121

THE COMMISSION AND THE DIVISION CARRY OUT THE FOLLOWING DEPARTMENT DUTIES:

Answer 121

CONDUCT THE INVESTIGATION OF APPLICANTS, LICENSEES, AND UNLICENSED PERSONS

PROSECUTE THOSE INDIVIDUALS AND ENTITIES CHARGED WITH VIOLATIONS OF LAW OR RULES

ISSUE,RENEW, AND REISSUE LICENSES

Question 122

POWERS OF THE DEPARTMENT:
THE DEPARTMENT MAY SEEK AN INJUNCTION FOR A COUR AGAINST A LICENSEE FOR FAILURE TO FOLLOW A DEPARTMENT ORDER: CITATIONS MAY BE ISSUED BUT NOT TO EXCEED $5,000

Answer 122

THE DEPARTMENT DOES NOT HAVE THE AUTHORITY TO ISSUE INJUNCTIONS AGAINST UNLICENSED PERSONS BUT MAY SEEK AN INJUNCTION FROM THE COURTS FOR FAILURE TO FOLLOW DEPARTMENT ORDER.

Question 123

THE DEPARTMENT HAS THE POWER TO ISSUE A CEASE AND DESIST ORDER AGAINST AN UNLICENSED PARTY FOR VIOLATION OF ANY RULE OR LAW UNDER ITS ADMINISTRATION.

Answer 123

CITATIONS MAY BE ISSUED TO VIOLATORS OF SPECIFIED RULES THAT INCLUDE THE PAYMENT OF AN ADMINISTRATIVE FINE NOT TO EXCEED $5,000 PER OFFENSE

Question 124

THE DEPARTMENT IS AUTHORIZED TO ISSUE: 
CEASE AND DESISTS ORDERS
ADMINISTER OATHS
TAKE DEPOSITIONS
ISSUE SUBPEONAS
AND ADOPT RULES CONCERNING VIOLATIONS THAT MAY BE SUBMITTED FOR MEDIATION

Answer 124

MEDIATION MUST BE RESOLVED WITHIN 60 DAYS

Question 125

THE DEPARTMENT MAY ALSO ACT AS A PLAINTIFF IN CIVIL ACTION.

Answer 125

THE DEPARTMENT ISSUES AND RENEWS ALL LICENSEES F.S. 455

Question 126

GIVING FALSE INFORMATION WHEN APPLYING FOR OR RENEWING A LICENSE IS A FELONY OF THE THIRD DEGREE WHICH IS PUNISHABLE BY A CRIMINAL COURT.

Answer 126

THE COMMISSION MAY TAKE PUNITIVE ACTION AGAINST THOSE APPLYING FOR A RENEWAL UNDER SUCH CIRCUMSTANCES

Question 127

THE COMMISSION IS AN ADMINISTRATIVE AGENCY THAT HS BEEN DELEGATED CERTAIN POWERS UNDER F.S. 475 AND FAC 61J2

Question 128

EXECUTIVE POWERS: KEEP INFORMED OF NEW LAWS. INCLUDE THE PUBLICATIONS OF BOOKS AND NEWSLETTERS TO KEEP LICENSEES AND THE PUBLIC INFORMED OF NEW AND IMPORTANT CHANGES IN THE LAW AND RULES GOVERNING THE REAL ESTATE PROFESSION

Question 129

QUASILEGISLATIVE- HELP TO PASS RULES. GIVE THE COMMISSION THE POWER TO MAKE AND PASS RULES THAT REGULATE THE OPERATION OF LICENSEES AND THE REAL ESTATE PROFESSION. RULES ENACTED BY THE COMMISSION ARE NOT LAWS BUT HAVE THE SAME EFFECT.

Question 130

QUASI-JUDICIAL POWERS: TAKE ACTION ON VIOLATIONS. QUASI JUDICIAL POWERS ALLOW THE COMMISSION TO IMPOSE DISCIPLINARY ACTION FOR VIOLATIONS OF LAWS OR RULES

Question 131

MINISTERIAL POWERS: RECORD KEEPING. MINISTERIAL POWERS INCLUDE RECORD KEEPING AND CLERICAL FUNCTIONS

Question 132

DISCIPLINARY AUTHORITY OF THE COMMISSION:
REPRIMAND= LOWEST
REVOCATION= LARGE

Answer 132

THE COMMISSION MAY DENY AN APPLICATION FOR LICENSURE OR MAY DISCIPLINE LICENSEES FOR VIOLATION OF F.S. 475 OR ANY RULE ENACTED UNDER ITS AUTHORITY. A LICENSEE WHO IS FOUND TO BE GUILTY OF A VIOLATION MAY RECEIVE ONE OF THE FOLLOWING DISCIPLINARY ACTIONS: BE ISSUED A REPRIMAND OR ADMINISTRATIVE FINE UP TO $5,000 PER OFFENSE, BE PLACED ON PROBATION OR HAVE THIER LICENSE SUSPENDED FOR UP TO 10 YEARS OR PERM REVOKED

Question 133

THERE ARE SEVEN MEMBERS ON THE COMMISSION - APPOINTED BY THE GOVERNOR

Answer 133

4 MEMBERS MUST BE LICENSED BROKERS EACH OF WHOM HAS HELD AN ACTIVE LICENSE FOR THE 5 YEARS PRECEDING APPOINTMENT.

ONE MEMBER MUST BE A LICENSED BROKER OR A LICENSED SALES ASSOCIATE WHO HAS HELD AN ACTIVE LICENSE FOR THE TWO YEARS PRECEDING APPOINTMENT

TWO MEMBERS CALLED LAY MEMBERS MUST BE PERSONS WHO ARE NOT AND NEVER HAVE BEEN BROKERS OR SALES ASSOC

Question 134

THE FUNCTION OF THE LAY MEMBERS IS TO GIVE PUBLIC INPUT INTO THE REGULATION OF THE PROFESSION AT LEAST ONE MEMBER MUST BE 60 YEARS OF AGE OR OLDER

Question 135

COMMISSION MEMBERS ARE APPOINTED 4 YEAR TERMS. MEMBERS MAY NOT SERVE MORE THAN TWO CONSECUTIVE TERMS. UNLIMITED UNLESS ALREADY DONE THE 4 YEAR TERM.

Question 136

THE COMMISSION MEETS AT LEAST ONCE A MONTH, USUALLY IN THE OFFICES OF THE DIVISION LOCATED IN ORLANDO.

Question 137

REAL ESTATE LICENSEES MAY EARN THREE HOURS OF SPECIALTY CE CREDIT PER RENEWAL CYCLE FOR ATTENDING ONE LEGAL SESSION OF THE FREC MEETING.

Question 138

THE COMMISSION IS REQUIRED TRO PLACE ITS OFFICIAL SEAL ON THE RECORDS.

Question 139

ONCE SIGNED BY EITHER CHAIRPERSON OR VICE CHAIRPERSON AND IMPRESSED WITH THE OFFICIAL SEAL, DOCUMENTS AND PAPERS THAT REFLECT THE ACTIONS OF THE COMMISSION BECOME CERTIFICATES OF THOSE MEETINGS AND ACTIONS.

Answer 139

CERTIFICATES ENTERED INTO EVIDENCE IN COURT PROCEEDINGS ARE CALLED PRIMA FACIE EVIDENCE WHICH MEANS ON THE FACE OF IT

Question 140

UPON PASSING THE STATE EXAM AN APPLICANT RECEIVES AN INACTIVE LICENSE STATUS. ONCE EMPLOYED THE LICENSEE CAN REQUEST AN ACTIVE REAL ESTATE LICENSE BY FILINH EMPLOYMENT INFORMATION ON THE COMPLETED DBPR TRANSACTION FORM WITH THE DIVISION.

Question 141

THE INITIAL LICENSE IS VALID FOR A MAXIMUM OF TWO YEARS. ALL LICENSES EXPIRE ON EITHER MARCH 31 OR SEPTEMBER 30TH IN ANY GIVEN YEAR.

Question 142

THE DEPARTMENT MAILS A NOTICE OF RENEWAL TO THE LAST KNOWN ADDRESS OF THE LICENSEE APPROXIMATELY 60 DAYS PRIOR TO THE LICENSE EXPIRATION DATE.

Question 143

THE REQUEST FOR RENEWAL MUST BE MADE PRIOR TO THE EXPIRATION OF THE CURRENT LICENSE TO PREVENT THE LICENSE FROM BECOMING NULL AND VOID

Question 144

FIRST RENEWAL: FOR THE FIRST RENEWAL FOLLOWING AN INITIAL LICENSE, LICENSEES MUST RENEW BY COMPLETING THE POST LICENSING REQUIREMENTS PRIOR TO THE EXPIRATION OF THE INITIAL LICENSE. FAILURE TO DO SO WILL RESULT IN A NULL AND VOID LICENSE STATUS

Question 145

SUBSEQUENT RENEWALS: FOR ALL BIENNIAL RENEWAL PERIODS FOLLOWING THE INITIAL LICENSE, LICENSEES MUST RENEW BY COMPLETING THE 14 HOUR CE REQUIREMENTS

Question 146

FAILURE TO RENEW A LICENSE PRIOR TO THE EXPIRATION IN OTHER THAN THE INITIAL LICENSE PERIOD, WILL PUT THE LICENSE INTO INVOLUNTARY INACTIVE STATUS.

Question 147

VOLUNTARY INACTIVE: SOMEONE WHO DOESNT WANT AN ACTIVE LICENSE. HAS ATTAINED HIS OR HER LICENSE BUT DOES NOT WISH TO ENGAGE ACTIVELY IN THE REAL ESTATE BUSINESS CAN REQUEST FOR IT TO BE VOLUNTARY INACTIVE.

Question 148

INVOLUNTARY INACTIVE: AN INDIVIDUAL WHO DOES NOT REQUEST RENEWAL OF THEIR SECOND OR SUBSEQUENT LICENSE, PAY THE REQUIRED FEE’S OR MAINTAIN THEIR CE. A LICENSE MAY REMAIN IN AN INVOLUNTARY INACTIVE STATUS FOR NO MORE THAN 2 YEARS.

Answer 148

EXAMPLE: ACTIVE MILITARY GETS DRAFTED CAN PUT LICENSE UNDER INVOLUNTARY INACTIVE CAN COMEBACK WHENEVER JUST NO MORE THAN 2 YEARS.

Question 149

IF A BROKERS LICENSE IS SUSPENDED REVOKED OR OTHERWISE VOID OR INEFFECTIVE THE LICENSES OF ALL PERSONS WHO ARE EMPLOYED UNDER SUCH BROKER BECOME AUTOMATICALLY INACTIVE.

Question 150

IF A LICENSEE DECIDED TO NO LONGER PRACTICE REAL ESTATE, THEY COULD RETURN THE LICENSE TO THE DEPARTMENT. THE LICENSE WOULD BE CANCELLED. ONLY THE LICENSEE CAN CANCEL THEIR LICENSING RETURNING IT TO THE DBPR.

Question 151

CURRENT VS. INEFFECTIVE: A LICENSE IS CURRENT WHEN THE LICENSE EXPIRY DATE HAS NOT YET BEEN REACHED. THE LICENSE WILL REMAIN CURRENT IF IT IS RENEWED PRIOR TO THE EXPIRY DATE. AFTER THE EXPIRY DATE, THE LICENSE IS SOMETIMES REFERRED TO AS INEFFECTIVE OR NOT CURRENT IF IT WAS NOT RENEWED

Question 152

ACTIVE VS. INACTIVE: A SALES ASSOC LICENSE IS ACTIVE IF IT IS CURRENT AND THE LICENSEE IS EMPLOYED BY A BROKER OR OWNER DEVELOPER TO PRACTICE REAL ESTATE. THE LICENSE MAY BECOME INACTIVE BY LOSING EMPLOYMENT OR FAILING TO RENEW PRIOR TO THE LICENSE EXPIRY. A LICENSEE MAY ALSO CHOOSE TO BE VOLUNTARILY INACTIVE.

Question 153

SUSPENDED: TEMPORARY: PROHIBITED PRACTICING REAL ESTATE FOR A PERIOD OF TIME

REVOKED: THE LICENSE IS PERMANENTLY REMOVED.

Question 154

GROUP LICENSE: IS A SINGLE REAL ESTATE LICENSE THAT CAN BE OBTAINED IF THE SALES ASSOCIATE OR BROKER ASSOCIATE WORKS FOR ONE OWNER DEVELOPER WITH AFFILIATED ORGANIZATIONS, WHICH PROVIDES REAL ESTATE SERVICES IN DIFFERENT GEOGRAPHIC AREAS.

Question 155

OWNER DEVELOPER MUST SUBMIT PROOF THAT VARIOUS PROPERTIES ARE OWNED IN THE NAME OF DIFFERENT ENTITIES, BUT THAT THE REAL ESTATE OWNERSHIP IS CONNECTED AND ESSENTIALLY THE SAME.

Question 156

A BROKER CAN BE ISSUED ADDITIONAL LICENSES AS A BROKER IN TWO OR MORE CAPACITIES BY REQUESTING MULTPIPLE LICENSES. THE BROKER MUST SHOW THAT THE ADDITIONAL LICENSES ARE NECESSARY FOR LEGITIMATE BUSINESS REASONS.

Question 157

SALES ASSOC/BROKER ASSOC WORKING FOR A DEVELOPER: IF U HAVE A LICENSE W A DEVELOPER U HAVE A GROUP LICENSE

Answer 157

ONLY ACTIVE BROKER CAN HAVE MULTIPLE LICENSES

Question 158

A QUORUM TO CONDUCT CERTAIN DUTIES OF THE COMMISSION REQUIRES 4 MEMBERS.

Question 159

THE COMMISSIONS ABILITY TO IMPOSE DISCIPLINARY ACTION AGAINST LICENSSEES IS KNOWN AS?

Answer 159

QUASI-JUDICIAL

Question 160

TO BECOME EFFECTIVE, RULES ENACTED BY THE FREC MUST BE FILED WITH THE SECRETARY OF STATE.

Question 161

WHAT IS THE MAXIMUM NUMBER OF YEARS A MEMBER MAY SERVE ON THE FLORIDA REAL ESTATE COMMISSION?

Answer 161

NO MAX

Question 162

THE DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION IS CREATED BY F.S. 455

Question 163

COMMON LAW IS UNWRITTEN LAW.

Question 164

STATUTORY LAW IS BASED ON WRITTEN STATUTES THAT HAVE BEEN ENACTED BY AN APPROPRIATE UNIT OF GOVERNMENT. STATUTORY LAW IS ENFORCED BY CRIMINAL COURTS.

Question 165

F.S. 455 AND 475 ARE STATUTES ENACTED BY THE STATE LEGISLATURE AS DISCUSSED IN A LATER SECTION CRIMINAL FINES AND IMPRISONMENT ARE POTENTIAL PENALTIES FOR VIOLATION OF THESE STATUTES.

Question 166

ADMINISTRATIVE LAW: THE DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION CREATED BY F.S.455 AND THE FLORIDA REAL ESTATE COMMISSION CREATED BY F.S.475.

Question 167

AGENCY RELATIONSHIPS ARE BASED ON TRUST AND CONFIDENCE. AN AGENT IS ENTRUSTED TO WORK ON BEHALF OF HIS OR HER EMPLOYER CALLED A PRINCIPAL

Answer 167

THE PRINCIPAL DELEGATES SOME AUTHORITY TO THE AGENT THAT EMPOWERS THE AGENT TO WORK ON HIS OR HER BEHALF.

Question 168

SPECIAL AGENT: IS AUTHORIZED UNDER THE AGENCY LAW BY THE EMPLOYER TO PERFORM A SINGLE ACT.

Answer 168

EXAMPLE: A AGENT EMPLOYED UNDER A SINGLE AGNECY LISTING FOR THE SALE OF A PROPERTY IS AUTHORIZED TO LOCATE A PURCHASER ON BEHALF OF THE OWNER. THIS IS A SINGLE ACT. THE AGENT BECOMES A SPECIAL AGENT TO THE OWNER

Question 169

GENERAL AGENT: HAS THE PRINCIPALS AUTHORITY UNDER AGENCY LAW TO ACT FOR HIM OR HER ON A CONTINUING BASIS, BUT WITH AUTHORITY LIMITED TO A SPECIFIC TRADE OR BUSINESS.

Answer 169

EXAMPLE: ALEX NEGRIN DO MULTIPLE STREAMLINES OF BUSINESS BUT STILL HAVE TO GO THROUGH HIM FOR OFFERS ETC.

Question 170

UNIVERSAL AGENT: IS AUTHORIZED UNDER AGENCY LAW TO ACT FOR AND REPRESENT THE PRINCIPAL IN ALL MATTERS WITHOUT LIMITATION. THIS AGENT IS GENERALLY AUTHORIZED BY A POWER OF ATTORNEY.

Answer 170

A AGENT CAN NOT SIGN A CONTRACT THAT OBLIGATES HIS OR HER PRINCIPLE UNLESS THE PRINCIPLE HAS GIVEN THE BROKER A POWER OF ATTORNEY TO AUTHORIZE THE ACT.

Question 171

SUBAGENT: EXTENSION OF ANOTHER AGENCY. A PARTY THAT HAS BEEN GRANTED AUTHORITY TO ACT ON BEHALF OF ANOTHER AGENT.

Question 172

BROKERAGE DISCLOSURE ACT: PURPOSE IS TO INFORM AND EDUCATE THE PUBLIC. THE ACT SPECIFIES AND DEFINES THE RELATIONSHIP BETWEEN A BROKER AND THE BROKER’S EMPLOYER IN RESIDENTIAL REAL ESTATE TRANSACTIONS. THE LAW DETAILS ALTERNATIVE RELATIONSHIPS THAT ARE ALLOWED WHEN PROVIDING SERVICES. VIOLATIONS OF THE BROKERAGE RELATIONSHIP MAY RESULT IN ADMINISTRATIVE AND OR CIVIL PENALTIES.

Question 173

THE BROKERAGE DISCLOSURE ACT F.S. 475 DEFINES THE PARTIES AND VARIOUS RELATIONSHIPS A BROKER MAY HAVE

Question 174

CUSTOMER: MAY OR MAY NOT BE REPRESENTED BY A REALTOR.

Question 175

SINGLE AGENT: IS A AGENT WHO REPRESENTS AS A FIDUCIARY EITHER THE BUYER OR THE SELLER BUT NOT BOTH IN THE SAME TRANSACTION.

Question 176

PRINCIPAL: IS THE PARTY WITH WHOM THE REAL ESTATE LICENSEE HAS ENTERED INTO A SINGLE AGENT RELATIONSHIP. A CUSTOMER BECOMES THE PRINCIPAL ONCE A SINGLE AGENCY RELATIONSHIP HAS BEEN ESTABLISHED.

Question 177

TRANSACTION BROKER: JENNY: WORKS WITH BUYER AND SELLER. A AGENT WHO PROVIDES LIMITED REPRESENTATION TO A BUYER, A SELLER, OR BOTH. IN A REAL ESTATE TRANSACTION BUT DOES NOT REPRESENT EITHER IN A FIDCUCIARY CAPACITY OR AS A SINGLE AGENT.

Question 178

CONSENT TO TRANSACTION BROKER: TO AVOID AN ILLEGAL DUAL AGENCY, A BROKER CANNOT REPRESENT BOTH THE BUYER AND SELLER AS A SINGLE AGENT IN THE SAME TRANSACTION.

Question 179

NOTICE OF NONREPRESENTATION: MUST BE DISCLOSED IN WRITING BEFORE SHOWING PROPERTY.

Question 180

RESIDENTIAL SALES: A RESIDENTIAL SALES TRANSACTION:

• THE SALE OF IMPROVED RESIDENTIAL PROPERTY OF FOUR UNITS OR FEWER.
• THE SALE OF UNIMPROVED PROPERTY INTENDED FOR FOUR UNITS OR FEWER.
• THE SALE OF AGRICULTURAL PROPERTIES WITH 10 ACRES OR LESS.
• LEASES WITH OPTIONS TO PURCHASE ALL OR A PORTION OF IMPROVED PROPERTY OF FOUR OR FEWER RESIDENTIAL UNITS.
• DISPOSITIONS OF BUSINESS INTERESTS INVOLVING PROPERTY OF FOUR OR FEWER RESIDENTIAL UNITS.

Question 181

DISCLOSURE REQUIREMENTS DO NOT APPLY WHEN A LICENSEE KNOWS THAT A TRANSACTION BROKER OR A SINGLE AGENT IS REPRESENTING A POTENTIAL SELLER OR BUYER. A DISCLOSURE IS NOT RERQUIRED WHEN AN OWNER IS SELLING NEW RESIDENTIAL CONSTRUCTION UNITS BUILT BY THE DEVELOPER.

Question 182

THE FOLLOWING SITUATIONS ARE EXEMPT FROM THE DISCLOSURE REQUIREMENTS:

NONRESIDENTIAL TRANSACTION
THE RENTAL OR LEASE OF REAL PROPERTY UNLESS AN OPTION TO PURCHASE ALL OR A PORTION OF THE PROPERTY IMPROVED WITH FOUR OR FEWER UNITS IS GIVEN

A BONAFIDE OPEN HOUSE OR MODEL HOME SHOWING THAT DOES NOT INVOLVE ELICITING CONFIDENTIAL INFORMATION, THE EXECUTION OF A CONTRACTUAL OFFER OR AN AGREEMENT FOR REPRESENTATION.

Question 183

THE BROKERAGE DISCLOSURE ACT REQUIRES LICENSEES TO KEEP COPIES OF DISCLOSURE DOCUMENTS THAT ARE RELATED TO RESIDENTIAL SALES TRANSACTIONS FOR 5 YEARS FROM THE DATE OF EXECUTION. IN ALL TRANSACTIONS THAT RESULT IN A WRITTEN RESIDENTIAL SALES CONTRACT RETENTION OF THE DISCLOSURE DOCUMENTS IS REQUIRED REGARDLESS OF WHETHER THE TRANSACTION CLOSES OR FAILS TO CLOSE.

Question 184

ALL LICENSEES IN ANY TYPE OF BROKERAGE RELATIONSHIP INCLUDING NONREPRESENTATION, MUST PERFORM THE FOLLOWING DUTIES:

DEAL HONESTLY AND FAIRLY
DISCLOSE ALL KNOWN FACTS
ACCOUNT FOR ALL FUNDS

Question 185

ALL LICENSEES IN A TRANSACTION BROKER OR SINGLE AGENT RELATIONSHIP MUST PERFORM THE FOLLOWING ADDITIONAL DUTIES:
USE SKILL, CARE, AND DILIGENCE IN THE TRANSACTION.
PRESENT ALL OFFERS AND COUNTEROFFERS IN A TIMELY MANNER.

Question 186

PRESENTING OFFERS: MUST SUBMIT ALL OFFERS WRITTEN OR VERBAL IF NOT CAN BE CONSIDERED A BREACH OF TRUST.

FAILURE TO PRESENT AN OFFER COULD BE CONSIDERED CONCEALMENT OR A BREACH OF TRUST, AND COULD RESULT IN DISCIPLINARY ACTION AGAINST THE BROKER.

Question 187

A BROKER/AGENT CANNOT ACCEPT OR REJECT AN OFFER ON BEHALF OF HIS OR HER EMPLOYER. A BROKER MAY BE AUTHORIZED TO ACCEPT AN OFFER BY A POWER OF ATTORNEY OR BY TERMS SPECIFIED WITHIN LISTING CONTRACT

Question 188

THE TRANSACTION BROKER HAS NO FIDUCIARY DUTIES TO EITHER PARTY AND NEITHER THE BUYER NOR THE SELLER IS RESPONSIBLE FOR THE ACTIONS OF THE BROKER.

Question 189

SINGLE AGENT: MAY REPRESENT A SELLER OR A BUYER. ANY ATTEMPT TO REPRESENT BOTH PARTIES IN A TRANSACTION WOULD CREATE AN ILLEGAL DUAL AGENCY

Question 190

SINGLE AGENCY IS THE ONLY ONE THAT ESTABLISHES A FIDUCIARY RELATIONSHIP.

Question 191

THE FOLLOWING FIDUCIARY DUTIES ARE OWED BY A BROKER TO THE PRINCIPAL IN A SINGLE AGENCY RELATIONSHIP:

CONFIDENTIALITY
OBEDIENCE
LOYALTY
FULL DISCLOSURE

Question 192

THE FOLLOWING FIDUCIARY DUTIES ARE OWED BY A BROKER TO THE PRINCIPAL IN A SINGLE AGENCY RELATIONSHIP:

CONFIDENTIALITY
OBEDIENCE
LOYALTY
FULL DISCLOSURE

Question 193

IF AN AGENT BREACHES FIDUCIARY DUTIES OWED TO HIS OR HER PRINCIPAL, THE PRINCIPAL CAN BRING CIVIL ACTION AGAINST THE AGENT FOR DAMAGES

Question 194

THE SINGLE AGENCY RELATIONSHIP MUST BE DISCLOSED IN A WRITTEN AGREEMENT

Question 195

CONSENT TO TRANSITION TO TRANSACTION BROKER: THE TRANSITION DISCLOSURE EITHER MUST BE IN WRITING TO THE PRINCIPAL AS A SEPARATE AND DISTINCT DOCUMENT OR INCLUDED AS PART OF OTHER DOCUMENTS, SUCH AS LISTING AGREEMENTS OR OTHER AGREEMENT FOR REPRESENTATION.

Question 196

A CUSTOMER MAY CHOOSE NOT TO BE REPRESENTED IN WHICH CASE THE BROKER MUST PROVIDE THE CUSTOMER WITH A SEPARATE WRITTEN NO BROKERAGE RELATIONSHIP NOTICE.

Question 197

A LISTING IS THE BROKER’S EMPLOYMENT CONTRACT THAT STATES THE TERMS AND CONDITIONS THAT THE BROKER MUST MEET TO BECOME ELIGIBLE FOR COMPENSATION. A BROKER MAY BE EMPLOYED BY AN OWNER TO FIND A PURCHASER OR TO EFFECT A SALE OF THE PROPERTY.

Answer 197

READY, ABLE, AND WILLING.

Question 198

PROCURING CAUSE OF SALE: IF TWO OR MORE BROKERS ARE COMPETING FOR A SALE THE BROKER WHO FIRST PRODUCES A PURCHASER WHO IS READY, WILLING AND ABLE TO BUY IS THE PROCURING CAUSE.

Answer 198

THE BROKER MUST PROVE IT WAS HIS OR HER EFFORT THAT INTERESTED THE BUYER IN THE PROPERTY.

Question 199

A AGENT OR BROKER CAN NOT COLLECT A COMMISSION FROM BOTH PARTIES IN A TRANSACTION WITHOUT THE KNOWLEDGE AND CONSENT FOR BOTH PARTIES. THE COLLECTION OF AN ILLEGAL COMMISSION IS AN ACT OF FRAUD.

Question 200

THE FEDERAL REAL ESTATE SETTLEMENT PROCEDURES ACT ALLOWS BROKERS TO PAY REFERRAL FEES BETWEEN REAL ESTATE AGENTS AND BROKERS WITHOUT DISCLOSURE.

Question 201

SECTION 8 OF THE FEDERAL REAL ESTATE SETTLEMENT PROCEDURES ACT PROHIBITS A BROKER FROM GIVING OR ACCEPTING A FEE, KICKBACK,OR ANYTHING OF VALUE IN EXCHANGE FOR THE REFERRAL OF REAL ESTATE SETTLEMENT SERVICES IN CONNECTION WITH FEDERALLY RELATED MORTGAGE LOANS

Question 202

MLS IS A MARKETING TOOL COMPRISED OF MEMBER BROKERS AND THEIR ASSOCIATES WHO SHARE INFORMATION THAT PERTAINS TO CURRENTLY LISTED PROPERTIES AMONG OTHER MEMBERS OF THE SERVICE

Question 203

EACH ACTIVE BROKER IS REQUIRED TO OPEN AND MAINTAIN AN OFFICE. IT MUST CONSIST OF AT LEAST ONE ENCLOSED ROOM IN A BUILDING OF STATIONARY CONSTRUCTION. WHERE NEGOTIATIONS AND THE CLOSING OF REAL ESTATE TRANSACTIONS CAN BE CONDUCTED WITH PRIVACY. THE LAW DOES NOT REQUIRE A BROKER TO HAVE A TELEPHONE,DESK, OR CHECKING ACCOUT.

Question 204

A BROKER MUST MAINTAIN BOOKS, RECORD AND FILES THAT PERTAIN TO TRANSACTIONS OF OTHERS IN THE BROKERS OFFICE FOR A PERIOD OF AT LEAST 5 YEARS,

Question 205

A BROKER CAN HAVE A BRANCH OFFICE IN HIS OR HER HOME IF NOT IN CONFLICT WITH LOCAL ZONING ORDINANCES.

Question 206

IF A BROKER DESIRES TO CONDUCT BUSINESS FROM MORE THAN ONE OFFICE EACH ADDITIONAL OFFICE MUST BE REGISTERED INDIVIDUALLY AS A BRAMCH OFFICE WITH THE APPROPIATE FEE PAID.

Question 207

BROKERS OFFICE CAN NOT BE IN A MOTOR HOME

Question 208

IF A BRANCH OFFICE IS CLOSED AND THEN LATER REOPENED IN THE SAME LOCATION DURING THE SAME TWO YEAR LICENSE PERIOD A REISSUE OF THE LICENSE MAY BE REQUESTED WITHOUT THE NEED TO PAY AN ADDITIONAL FEE.

Question 209

A BROKER IS REQUIRED TO HAVE A SIGN ON OR ABOUT THE ENTRANCE TO THE OFFICE AND ALL BRANCH OFFICES. WHERE IT CAN BE EASILY OBSERVED AND READ BY PERSONS ENTERING THE OFFICE.

Question 210

THE SIGN OF A BROKER OPERATING AS A SOLE PROPRIETORSHIP MUST CONTAIN THE BROKERS TRADE NAME AND THE WORDS LICENSED REAL ESTATE BROKER. MUST CONTAIN THE NAME OF THE PARTNERSHIP OR CORPORATION ALONG WITH THE NAME OF AT LEAST ONE BROKER AND THE WORDS LICENSED REAL ESTATE BROKER

Question 211

ALL REAL ESTATE ADVERTISEMENTS INCLUDING YARD SIGNS, NEWSPAPER ADS, BUSINESS CARDS, AND/OR ANY OTHER ADVERTISEMENTS MUST INCLUDE REGISTERED NAME OR TRADE NAME OF THE BROKERAGE FIRM . LAST NAME MUST APPEAR EXACTLY AS REGISTERED WITH THE COMMISSION

Question 212

A SALES ASSOC OR BROKER ASSOC WHO VIOLATES THE RULES BY ADVERTISING LISTED PROPERTY IN HIS OR HER NAME INSTEAD OF THE BROKER, MAY ONLY BE CHARGED WITH ACTING AS A BROKER.

Question 213

TWO FORMS OF ADVERTISING:
INSTITUTIONAL: IS DESIGNED TO CREATE AN IMAGE IN THE MARKET FOR A BRAND OR PRODUCT. REAL ESTATE FIRMS AND FRANCHISING COMPANIES USE ADS THAT THE PUBLIC WILL RELATE TO WHENEVER IT THINKS OF REAL ESTATE. THESE ADS ARE DESIGNED TO CREATE AN IMAGE BUT NOT TO SELL A PARTICULAR PRODUCT.

Question 214

SPECIFIC: ADVERTISING IS DESIGNED TO SELL A PARTICULAR PRODUCT OR SERVICE. AN AD THAT FEATURES A PARTICULAR HOME FOR SALE IS AN EXAMPLE OF SUCH ADVERTISING.

Question 215

A BLIND AD IS ANY REAL ESTATE ADVERTISEMENT THAT DOES NOT CONTAIN THE REGISTERED OR TRADE NAME OF THE BROKER, OR FOR WHICH THERE IS DOUBT THAT THE AD IS THAT OF A REAL ESTATE BROKER. IF A LICENSEES PERSONAL NAME AS REGISTERED WITH THE COMMISSION

Question 216

NO REAL ESTATE ADVERTISEMENT PLACED OR CAUSED TO BE PLACED BY A LICENSEE CAN BE FRAUDULENT, FALSE, DECEPTIVE, OR MISLEADING. A BROKER CAN NOT UAE A NAME OR INSIGNIA OF ANY ORGANIZATION THAT RELATES TO REAL ESTATE UNLESS THE BROKER IS CURRENTLY MEMBER IN. GOOD STANDING

Question 217

PERSONAL TRANSACTIONS: THIS DISCLOSURE SHOULD TAKE PLACE PRIOR TO ENTERING INTO SERIOUS NEGOTIATIONS, BUT IS NOT REQUIRED TO TAKE PLACE IN THE PRELIMINARY STAGES OF TRANSACTION. THAT THIS DISCLOSURE IN WRITING IN THE PURCHASE AND SALE CONTRACT.

Question 218

IN ADVERTISING A PROPERTY FOR SALE WHICH THE LICENSEE OWNS, TWO OPTIONS EXIST: 1) THE LICENSEE MAY ADVERTISE THE PROPERTY STRICTLY AS AN INDIVIDUAL AND MAY MAKE NO MENTION OF REAL ESTATE LICENSURE, OR 2) THE LICENSEE MAY ADVERTISE THE PROPERTY THROUGH A REGISTERED BROKERAGE OFFICE AND FOLLOW THE NORMAL ADVERTISING REQUIREMENTS.

Question 219

ESCROW FUNDS ARE FUNDS HELD BY A THIRD PARTY ON BEHALF OF TWO PARTIES IN A TRANSACTION GENERALLY SPEAKING FUNDS ARE HELD BY THE THIRD PARTY ESCROW SERVICE UNTIL IT RECEIVES THE APPROPRIATE INSTRUCTIONS FOR DISBURSEMENT.

Question 220

FUNDS MAY BE HELD BY ANOTHER ESCROW SERVICE SUCH AS A TITLE COMPANY.

Question 221

AN EARNEST MONEY DEPOSIT THAT SHOWS GOOD FAITH ON THE PART OF THE BUYER USUALLY ACCOMPANIES AN OFFER.

Question 222

DEFAULT BY THE BUYER USUALLY REQUIRES THE DEPOSIT TO BE FORFEITED IN FAVOR OF THE SELLER TO COMPENSATE FOR HAVING REMOVED FROM THE PROPERTY FROM THE MARKET. THIS IS CALLED LIQUIDATED DAMAGES.

Question 223

A DEPOSIT MAY BE IN THE FORM OF MONEY, PERSONAL PROPERTY, REAL PROPERTY, OR ANYTHING OF VALUE THAT IS CAPABLE OF BEING CONVERTED TO CASH.

Question 224

POSTDATED CHECKS ARE CONSIDERED TO BE PROMISSORY NOTES AND CAN BE ACCEPTED AS EARNEST MONEY WITH THE SELLERS APPROVAL.

Question 225

A BROKER IS NOT RESPONSIBLE FOR THE PAYMENT OF ANY CHECK OR DRAFT ACCEPTED AS A DEPOSIT ON REAL PROPERTY. A BROKER WHO ACCEPTS A PERSONAL CHECK AS AN EARNEST MONEY DEPOSIT WOULD NOT BE HELD RESPONSIBLE IF THE CHECK IS RETURNED DUE TO INSUFFICIENT FUNDS, AS LONG AS THE BROKER DEPOSITS THE ESCROWED FUNDS IMMEDIATELY.

Question 226

POST DATED CHECK - CALL SELLER THEN GIVE CHECK TO BROKER.

Question 227

WHEN A DEPOSIT IS PLACED OR IS TO BE PLACED WITH A TITLE COMPANY OR AN ATTORNEY, THE LICENSEE WHO PREPARED OR PRESENTED THE SALES CONTRACT SHALL INDICATE ON THAT CONTRACT THE NAME, ADDRESS, AND TELEPHONE NUMBER OF THE TITLE COMPANY OR ATTORNEY WITH WHOM THE DEPOSIT WAS PLACED.

Question 228

WITHIN 10 BUSINESS DAYS AFTER EACH DEPOSIT IS DUE UNDER THE SALES CONTRACT, THE LICENSEE’S BROKER SHALL MAKE WRITTEN REQUEST TO THE TITLE COMPANY OR ATTORNEY TO PROVIDE WRITTEN VERIFICATION OF RECEIPT OF THE DEPOSIT.

Question 229

WITHIN 10 BUSINESS DAYS OF THE DATE IN WHICH THE LICENSEE’S BROKER MADE THE WRITTEN REQUEST FOR VERIFICATION OF THE DEPOSIT, THE LICENSEE’S BROKER SHALL PROVIDE THE SELLER’S BROKER WITH EITHER A COPY OF THE WRITTEN VERIFICATION OR IF NO VERIFICATION IS RECEIVED BY LICENSEE’S BROKER, WRITTEN NOTICE THAT THE LICENSEE’S BROKER DID NOT RECEIVE VERIFICATION OF THE DEPOSIT. IF THE SELLER IS NOT REPRESENTED BY THE BROKER, THEN THE LICENSEE’S BROKER SHALL NOTIFY THE SELLER DIRECTLY IN THE SAME MANNER INDICATED HEREIN.

Question 230

ESCROW ACCOUNT: IF A BROKER IS TO BE AN ESCROW AGENT HE OR SHE MUST OPEN AND MAINTAIN A SEPARATE ACCOUNT FOR SUCH PURPOSE IN AN AUTHORIZED DEPOSITORY INSTITUTION.

Question 231

A REAL ESTATE BROKER IS ALLOWED TO DEPOIT ESCROW FUNDS FROM SALES TRANSACTIONS AND RENTAL MANAGEMENT IN THE SAME TRUST ACCOUNT.

Question 232

AN ESCROW ACCOUNT OR TRUST ACCOUNT MAY BE HELD IN COMMERCIAL BANK, TITLE COMPANY WHICH HAS TRUST POWERS, CREDIT UNION, OR SAVINGS AND LOAN ASSOCIATION LOCATED IN THE STATE OF FLORIDA.

Question 233

THE ESCROW ACCOUNT CANNOT BE HELD IN A STOCK OR BOND BROKERAGE HOUSE. A BROKER IS NOT ALLOWED TO COMMINGLE OR DEPOSIT THE PERSONAL FUNDS OF ANY PERSON WITH ANY FUNDS BEING HELD IN ESCROW, TRUST, OR ON CONDITION.

Question 234

ESCROW FUNDS ENTRUSTED TO A BROKER MAY BE PLACED IN AN INTEREST BEARING ACCOUNT

Question 235

SAID ESCROW ACCOUNT MUST BE HELD IN A TITLE COMPANY, BANKING INSTITUTION, CREDIT UNION, OR SAVINGS AND LOAN ASSOC THAT IS DOING BUSINESS IN FLORIDA

Question 236

A BROKER IS AUTHORIZED TO PLACE AND MAINTAIN UP TO $1,000 OF PERSONAL OR BUSINESS FUNDS IN A SALES ESCROW ACCOUNT AND UP TO $5,000 OF PERSONAL BUSINESS FUNDS IN A PROPERTY MANAGEMENT ESCROW ACCOUNT FOR THE PURPOSES OF OPENING THE ACCOUNT.

Question 237

ESCROWED FUNDS MUST BE MAINTAINED SEPARATELY FROM THE BROKERS BUSINESS AND PERSONAL FUNDS. THE MISUSE, COMMINGLING OR INTERMINGLING OF OR FAILURE TO ACCOUNT FOR FUNDS OR PROPERTY ENTRUSTED TO ANY LICENSEE IS KNOWN AS CONVERSION. WHICH IS A FORM OF FRAUD

Question 238

DEPOSITING ESCROW FUNDS: A SALES ASSOCIATE OR BROKER ASSOCIATE WHO RECEIVES AN EARNEST MONEY DEPOSIT ON BEHALF OF HIS OR HER EMPLOYER MUST DELIVER THE DEPOSIT TO THE EMPLOYER NO LATER THAN THE END OF THE NEXT BUSINESS DAY FOLLOWING RECEIPT.

Answer 238

SATURDAY, SUNDAY, AND LEGAL HOLIDAYS ARE NOT CONSIDERED BUSINESS DAYS.

Question 239

A BROKER MUST IMMEDIATELY PLACE THE EARNEST MONEY DEPOSIT IN AN ESCROW OR TRUST ACCOUNT. “IMMEDIATELY” PLACE THE EARNEST MONEY DEPOSIT IN AN ESCROW OR TRUST ACCOUNT.

Answer 239

IMMEDIATELY IS DEFINED AS NO LATER THAN THE END OF THE THIRD BUSINESS DAY FOLLOWING RECEIPT. IF THE DEPOSIT IS IN THE FORM OF SECURITIES THAT ARE TO BE CONVERTED INTO CASH, THE CONVERSION SHOULD BE MADE AT THE EARLIEST PRACTICAL TIME WITH THE PROCEEDS IMMEDIATELY PLACED INTO THE ESCROW ACCOUNT.

Question 240

ESCROW DISPUTES: ESCROW FUNDS ARE UNDER MUTUAL CONTROL OF THE BUYER AND SELLER. A BROKER HOLDS FUNDS IN TRUST FOR BOTH THE BUYER AND THE SELLER. THE LAW ESTABLISHES HOW ESCROWED FUNDS ARE TO BE HANDLED AND THE BROKER MUST ABIDE BY THE LAW. THE BUYER AND SELLER MUST BOTH AGREE TO ANY DISBURSEMENT OF ANY FUNDS HELD BY THE BROKER.

Question 241

IF A BROKER RECEIVES CONFLICTING DEMANDS FOR ESCROWED FUNDS OR IF THE BROKER HAS GOOD FAITH DOUBT AS TO WHICH PERSON IS ENTITLED TO THE ESCROWED PROPERTY, THE BROKER MUST GIVE WRITTEN NOTIFICATION TO THE COMMISSION WITHIN 15 BUSINESS DAYS.

Question 242

BROKER IS REQUIRED TO INSTITUTE AN AUTHORIZED SETTLEMENT PROCEDURE TO RESOLVE THE DISPUTE WITHIN 30 BUSINESS DAYS FROM THE LAST PARTY’S DEMANDS

Question 243

IF A BROKER IMPLEMENTS ONE OF THE FOLLOWING SETTLEMENT PROCEDURES WITHIN 30 BUSINESS DAYS FROM THE PARTY’S LAST DEMAND, THE BROKER WILL NOT BE CHARGED WITH FAILURE TO ACCOUNT FOR, DELIVER, OR MAINTAIN ESCROWED PROPERTY.

Question 244

THE FOLLOWING AUTHORIZED PROCEDURES ARE AVAILABLE TO SETTLE AN ESCROW DISPUTE:

MEDIATION
ARBITRATION
LITIGIATION

Answer 244

MEDIATION: IF ALL PARTIES GIVE WRITTEN CONSENT, AN ESCROW DISPUTE CAN BE SUBMITTED TO MEDIATION. THE PROCESS MUST BE SUCCESSFULLY COMPLETED WITHIN 90 DAYS FOLLOWING THE DATE OF THE LAST DEMAND FOR THE ESCROWED FUNDS FROM THE PARTIES.

Question 245

ARBITRATION: ALL PARTIES GIVE WRITTEN CONSENT, AN ESCROW DISPUTE CAN BE SUBMITTED TO ARBITRATION. THE ARBITRATOR DECIDES HOW THE FUNDS SHOULD BE DISBURSED AND ISSUES AN AWARD. THE AWARD IS BINDING CAN BE ENFORCED IN A CIVIL LAW SUIT IF THE RESPONSIBLE PARTY FAILS TO ABIDE BY THE DECISION.

Question 246

ESCROW DISBURSMENT ORDER: THE BROKER REQUEST THE COMMISSION TO DETERMINE THE PARTY ENTITLED TO THE ESCROWED PROPERTY. THE COMMISSION THEN ISSUES AN ESCROW DISBURSEMENT ORDER FOR THE DISTRIBUTION OF THE FUNDS. IF THEY DISAGREE THEY MAY FILE APPEAL WITH DISTRICT COURT.

Answer 246

IF THE BROKER HAS REQUESTED AN ESCROW DISBURSEMENT ORDER AND THE DISPUTE SUBSEQUENTLY SETTLED OR GOES TO COURT BEFORE THE ORDER IS ISSUED, THE BROKER SHALL NOTIFY THE COMMISSION WITHIN 10 BUSINESS DAYS OF SUCH EVENT.

Question 247

IF THE RENTAL INFORMATION PROVIDED UNDER THIS CONTRACT IS NOT CURRENT OR ACCURATE IN ANY MATERIAL ASPECT, YOU MAY DEMAND WITHIN 30 DAYS OF THIS CONTRACT DATE A RETURN OF YOUR FULL FEE PAID. IF YOU DO NOT OBTAIN A RENTAL, YOU ARE ENTITLED TO RECEIVE A RETURN OF 75% OF THE FEE PAID, IF YOU MAKE SUCH DEMAND WITHIN 30 DAYS OF THIS CONTRACT DATE.

Question 248

IF THE TENANT APPLICANT DID NOT LIKE OR DID NOT ACCEPT WHAT WAS OFFERED, HE OR SHE MAY REQUEST A REFUND OF 75% OF ANY FEE PAID. IF THE BROKER MATERIALLY MISREPRESENTED WHAT WAS OFFERED, THE TENANT APPLICANT CAN REQUEST A 100% REFUND OF ANY FEE PAID. IN EITHER CASE, THE REQUEST MUST BE MADE WITHIN 30 DAYS OF THE CONTRACT DATE.

Question 249

RENTAL INFORMATION VIOLATIONS ARE CONSIDERED TO BE A MISDEMEANOR OF THE FIRST DEGREE PUNISHABLE UP TO 1 YEAR OF PRISON OR A FINE UP TO $1,000

Question 250

IN A CIVIL SUIT FOR DAMAGES A BROKER IS RESPONSIBLE FOR THE ACTIONS OF PARTNERS OR EMPLOYEES.

Question 251

A SALES ASSOCIATE MAY NOT ACCEPT MONEY OR PROPERTY EXCEPT IN THE NAME OF THE EMPLOYER. A SALES ASSOC MUST REGISTER UNDER THEIR LEGAL NAME.

Question 252

A SALES ASSOC OR BROKER ASSOC CAN ONLY WORK FOR ONE BROKER OR OWNER DEVELOPER AT A TIME.

Question 253

A SALES ASSOC OR BROKER ASSOC CAN NOT CONTRACT WITH OR COLLECT COMMISSIONS DIRECTLY FROM, A MEMBER OF THE PUBLIC. ALL THE COMMISSIONS DUE TO A SALES ASSOCIATE OR A BROKER ASSOCIATE MUST BE PAID TO THE EMPLOYER, WHO IN TURN COMPENSATES THE SALES ASSOCIATE OR BROKER ASSOCIATE WITHIN REASONABLE PERIOD OF TIME.

Question 254

A BROKER CAN GIVE WRITTEN PERMISSION TO A CLOSING AGENT TO DISBURSE A COMMISSION CHECK DIRECTLY TO A SALES ASSOCIATE OR BROKER ASSOCIATE

Question 255

A SALES ASSOCIATE WHO IS NOT COMPENSATED AS AGREED UPON BY HIS OR HER EMPLOYER MAY NOT FILE SUIT AGAINST ANYONE OTHER THAN THE EMPLOYER. MUST GET PAID BY EMPLOYING BROKER CAN ONLY SUE BROKER.

Question 256

A SALES ASSOC OR BROKER ASSOC MUST REPORT ANY CHANGE OF EMPLOYER TO THE COMMISSION WITHIN 10 DAYS OF THE CHANGE TO THE DEPARTMENT.

Question 257

ANY RESIDENT LICENSEE WHO BECOMES A NONRESIDENT MUST NOTIFY THE COMMISSION OF THE CHANGE IN RESIDENCY WITHIN 60 DAYS AND COMPLY WITH NON-RESIDENT REQUIREMENTS.

Question 258

BROKER AND SALES ASSOC MAY NOT TAKE COPIES OF LISTING, RECORD BOOKS WITHOUT PERMISSION IT CAN BE CONSIDERED LARCENY

Question 259

SOLE PROPRIETORSHIP: THE INDIVIDUAL IS PERSONALLY LIABLE FOR HIS OR HER ACTIONS CAN BE SUED INDIVIDUALLY. IS ALSO LIABLE FOR THE ACTS OF THEIR EMPLOYEE’S WHEN THE ACTS ARE WITHIN THE SCOPE OF THE EMPLOYEE’S EMPLOYMENT. CAN BUY AND SELL REAL ESTATE FOR USE IN HIS BUSINESS. REAL ESTATE IS HELD IN THE PERSONAL NAME OF THE SOLE PROPRIETORSHIP

Question 260

SOLE PROPRIETOR BROKER: CAN REGISTER OR OPERATE AS A REAL ESTATE BROKER IF HE OR SHE HAS A CURRENT ACTIVE AND VALID BROKERS LICENSE. A BROKER CAN OPERATE IN THIEIR NAME OR UNDER A TRADE NAME// INDIVIDUAL DOING BUSINESS MUST BE ACTIVE.

Question 261

GENERAL PARTNERSHIP: DOESNT HAVE TO BE REGISTERED WITH THE STATE. BUSINESS FORMATION IN WHICH 2 OR MORE PEOPLE AGREE TO SHARE THE PROFITS OR LOSSES OF A BUSINESS. CAN BE EXPRESSED OR IMPLIED ORALLY OR IN WRITING. NO DOCUMENTS NEED TO BE FILED WITH THE STATE FOR PARTNERSHIP. NOT ALL PARTNERS ARE REQUIRED TO WORK ACTIVELY IN BUSINESS.

Question 262

GENERAL PARTNERSHIP IS DISOLVED IN: THE DEATH, WITHDRAWAL, OR ADDITION OF A PARTNER, AGREEMENT OF THE PARTNERS, BANKRUPTCY OR BY COURT ORDER

Question 263

REAL ESTATE BROKERAGE PARTNERSHIP: MUST HAVE AT LEAST ONE PARTNER LICENSED AS AN ACTIVE BROKER. A BROKER WITH AN INACTIVE LICENSE AND AN UNLICENSED PERSON CAN BE PARTNERS BUT CANNOT PERFORM REAL ESTATE SERVICES.

Question 264

LIMITED PARTNERSHIP: CONSISTS OF AT LEAST ONE GENERAL PARTNER AND AT LEAST ONE LIMITED PARTNER. IS JOINTLY AND SEVERALLY LIABLE. HAS LIMITED LIABILITY CAN LOSE THE INVESTMENT BUT ARE NOT PERSONALLY LIABLE BEYOND THE EXTENT OF THAT INVESTMENT. MUST BE FILED WITH THE DEPARTMENT OF STATE.

Question 265

LIMITED LIABILITY PARTNERSHIP: MUST REGISTER WITH THE SECRETARY OF STATE. THE WORDS LIMITED LIABILITY OR LLP MUST BE INCLUDED. REQUIRED TO CARRY LIABILITY INSURANCE IN A MIN AMOUNT EQUAL TO $100,000 FOR EACH PARTNER.

Question 266

JOINT VENTURE: NO DOCS NEED TO BE FILED WITH THE SECRETARY OF STATE. NON BINDING. INVOLVES A SINGLE TRANSACTION ONLY. TEMPORARY.

Question 267

CORPORATION FOR PROFIT: REGISTERED WITH THE STATE. THE CORPORATE VEIL PROTECTS THE INDIVIDUALS FROM PERSONAL LIABILITY. THE OWNERS OF THE CORPORATION ARE ISSUED SHARES OF STOCK IN THE CORPORATION AND ARE KNOWN AS THE STOCK HOLDERS.

Question 268

A CORPORATION CAN BE DISSOLVED BY THE STOCK HOLDERS,COURTS, FAILURE OF THE CORPORATION TO FILE AN ANNUAL REPORT AND THE PAY THE FEES. NOT DISOLVABLE BY BANKRUPTCY

Question 269

REAL ESTATE BROKERAGE CORP: AT LEAST ONE NEEDS TO HAVE AN ACTIVE LICENSE. MUST PROVIDE PROOF OF LEGAL CORPORATE EXISTENCE. IF THE BROKER DIES POSITION MUST BE FULFILLED IN 14 DAYS. FAILURE TO DO SO WILL RESULT IN CANCELLATION OF THE CORPORATE REGISTRATION.

Question 270

A SALES ASSOC OR BROKER ASSOC MAY NOT BE AN OFFICE OR DIRECTOR IN A REAL ESTATE BROKERAGE CORPORATION. MAY BUY AND SELL REAL ESTATE FOR ITS OWM PURPOSES BUT MAY NOT PROVIDE REAL ESTATE BROKERAGE SERVICES.

Question 271

LIMITED LIABILITY COMPANY : ONLY LIABLE FOR THE ACTS OPF THEIR AGENTS OR EMPLOYEES BUT NOT FOR THE ACTS OF OTHER MEMBERS.

Question 272

COOPERATIVE ASSOC: MAY BUY,SELL, LEASE REAL ESTATE FOR ITS OWN USE IT MAY NOT REGISTER AS A REAL ESTATE BROKERAGE CORPORATION. DOCS MUST BE FILED WITH SEC OF STATE.

Question 273

CORPORATION SOLE: FORMED UNDER COMMON LAW PRINCIPLES FOR RELIGIOUS PURPOSES. NOT REQUIRED TO FILE WITH THE STATE. CAN BUY SELL, REAL ESTATE FOR ITS OWN USE. BUT THE TITLE OF THE PROPERTY IS NOT TAKEN IN THE CORPORATE NAME. MAY NOT REGISTER AS REAL ESTATE BROKERAGE CORP. FOR EXAMPLE: CHURCH

Question 274

BUSINESS TRUST: ALSO KNOWN AS A COMMON LAW TRUST OR MASSACHUSETTS TRUST, IS CREATED BY FILING A DECLARATION OF TRUST WITH THE SECRETARY OF STATE. UNITS IN THE TRUST, SIMILAR TO SHARES OF STOCK ARE SOLD TO THE PUBLIC AS SECURITIES AND MUST RECEIVE APPROVAL OF FL SECURITIES COMMISSION. MAY BUY, DEVELOP, AND SELL ITS OWN REAL ESTATE.

Question 275

OSTENSIBLE PARTNERSHIP: IS NOT A TRUE PARTNERSHIP IT IS CREATED WHEN TWO OR MORE PARTIES SUCH AS BROKERS, ACT OR OPERATE IN SUCH A MANNER THAT DECEIVES OR MISLEADS SOMEONE INTO BELIEVING THAT A PARTNERSHIP EXISTS.

Question 276

A VIOLATION OF F.S. 475 BY A REAL ESTATE LICENSEE OR AN UNLICENSED PERSON MAY RESULT IN CRIMINAL, CIVIL, AND ADMINISTRATIVE PENALTIES

Question 277

THE COURTS MAY IMPOSE CRIMINAL AND CIVIL PENALTIES AGAINST BOTH LICENSED AND UNLICENSED PERSONS. A MEMBER OF THE PUBLIC MAY FILE CIVIL ACTION AGAINST EITHER A LICENSEE OR AN UNLICENSED PARTY.

Question 278

THE CIVIL PENALTY IMPOSED FOR THE UNLICENSED PRACTICE OF REAL ESTATE IS A MINIMUM FINE OF $500 AND MAXIMUM OF $5,000. THE DEPARTMENT HAS CERTAIN HAS CIVIL AUTHORITY AS WELL.

Question 279

A VIOLATION OF F.S. 475 MAY BE A FIRST OR SECOND DEGREE MISDEMEANOR OR A THIRD DEGREE FELONY. CORPORATIONS CAN NOT BE IMPRISONED, ALTHOUGH A CRIMINAL FINE MAY BE LEVIED. IMPRISONMENT IS POSSIBLE FOR OFFICERS AND DIRECTORS OF CORPORATIONS WHO ARE GUILTY OF VIOLATIONS

Question 280

FIRST DEGREE MISDEMEANORS: THE FOLLOWING ACTION IS THE ONLY ACTIVITY THAT IS CLASSIFIED IN F.S. 475 AS A FIRST DEGREE MISDEMEANOR, WHICH IS PUNISHABLE BY A FINE UP TO $1,000 OR IMPRISONMENT NOT TO EXCEED ONE YEAR.

EXAMPLE: INACCURATE RENTAL LIST

Question 281

SECOND DEGREE MISDEMEANOR: MAY BE PUNISHABLE BY A CRIMINAL FINE UP TO $500 AND OR IMPRISONMENT FOR UP TO 60 DAYS.

EXAMPLE : FALSE ADVERTISING

Question 282

THIRD DEGREE FELONIES: SUBJECT TO CRIMINAL COURT PROCEEDINGS, AND PUNISHABLE BY A CRIMINAL FINE UP TO $5,000 AND OR IMPRISONMENT OF UP TO 5 YEARS

EXAMPLE: NO ACTIVE REAL ESTATE LICENSE

Question 283

THE COMMISSION CAN IMPOSE ADMINISTRATIVE PENALTIES.

Question 284

THE COMMISSION CAN GIVE CONSIDERATION TO EITHER MITIGATING OR AGGRAVATING CIRCUMSTANCES. MITIGATING CIRCUMSTANCES ARE CONSIDERED TO BE EXTENUATING AND REDUCE THE DEGREE OF CULPABILITY. AGGRAVATING CIRCUMSTANCES ADD TO THE INJURY CAUSED BY THE ACT.

Question 285

VIOLATIONS THAT INVOLVE MITIGATING CIRCUMSTANCES WILL GENERALLY CARRY A LESSER PENALTY THAN THOSE THAT INVOLVE AGGRAVATING CIRCUMSTANCES.

Question 286

BEING FOUND GUILTY OF FRAUD, MISREPRESENTATION, CONCEALMENT, FALSE PROMISES, FALSE PRETENSES, DISHONEST DEALING BY TRICK, SCHEME OR DEVICE, CULPABLE NEGLIGENCE, OR BREACH OF TRUST IN ANY BUSINESS TRANSACTION CAN RESULT IN AN ADMINISTRATIVE FINE OF $1,000 TO $2,500 AND A 30 DAY SUSPENSION TO REVOCATION.

Question 287

ADMINISTRATIVE COMPLAINTS MUST BE FILED WITHIN 5 YEARS OF THE TIME OF THE ACT GIVING RISE TO THE COMPLAINT, OR WITHIN 5 YEARS FROM DISCOVERY OF THE ACT WITH DUE DILIGENCE.

Question 288

BREACH OF TRUST: OCCURS WHEN A BROKER VIOLATES THEIR DUTIES TO THE PRINCIPAL IN AN AGENCY RELATIONSHIP

Answer 288

CONCEALMENT: OCCURS WHEN A BROKER FAILS TO DISCLOSE INFORMATION TO A PARTY, TO WHOM THE BROKER HAS SUCH A DUTY, AND THAT IS MATERIAL TO HIS OR HER DECISION. TYPICALLY A BROKER MUST DISCLOSE ANY FACT, REPORT, OR RUMOR CONCERNING THE TRANSACTION TO PRINCIPAL

Question 289

CONSPIRACY: OCCURS WHEN A BROKER FORMS A SCHEME OR DESIGN WITH ANOTHER PERSON WITH THE INTENT TO DEFRAUD A THIRD PARTY.

Answer 289

CONVERSION: OCCURS WHEN A BROKER USES THE FUNDS OR OTHER PROPERTY THAT BELONGS TO ANOTHER FOR HIS OR HER PERSONAL OR PERSONAL BUSINESS USE.

Question 290

CULPABLE NEGLIGENCE: OCCURS IF A BROKER OPERATES IN A RECKLESS, CARELESS, AND EXCESSIVELY NEGLIGENT MANNER. CULPABLE NEGLIGENCE IS NEGLIGENCE FOR WHICH ONE CAN BE HELD LEGALLY ACCOUNTABLE. A SALES ASSOCIATE WHO FORGETS TO COLLECT AND ESCROW DEPOSIT, AS SPECIFIED IN A SALES CONTRACT.

Answer 290

FAILURE TO ACCOUNT: IS A FORM OF CONVERSION THAT OCCURES WHEN A BROKER IS REQUIRED TO PRODUCE MONEY MONEY OR PROPERTY THAT BELONGS TO ANOTHER IN THE NORMAL COURSE OF BUSINESS AND EITHER CAN NOT OR WILL NOT PRODUCE THE MONEY OR PROPERTY.

Question 291

FALSE OR MISLEADING ADVERTISEMENT: NO ONE MAY DISSERMINATE OR CAUSE TO BE DISSEMINATED ANY FALSE OR MISLEADING INFORMATION BY ANY MEANS FOR THE PURPOSE OF OFFERING FOR SALE, LEASE, OR RENT ANY REAL ESTATE LOCATED IN THE STATE.

Answer 291

FILING FALSE DOCUMENTS: OCCURS IF A BROKER CLOUDS THE TITLE ON REAL ESTATE BY FILING FALSE, VOID OR UNAUTHORIZED DOCUMENTS IN THE PUBLIC RECORD SUCH AS LIENS, CONTRACTS, OR DEEDS. GUILTY OF FRAUD

Question 292

MISREPRESENTATION: THE MISSTATEMENT OR OMISSION OF FACTS. CAN LEAD TO FRAID IF STATEMENTS ARE INTENTIONAL AND RELIED UPON. MIGHT BE CONSIDERED BREACH OF CONTRACT OR BREACH OF TRUST. ALSO INCLUDES EXAGGERATION IN AN OPINION OF VALUE.

Answer 292

RENDERING AND OPINION OF TITLE: A BROKER CAN NOT RENDER AN ORAL OR WRITTEN OPINION THAT THE TITLE TO THE PROPERTY BEING SOLD IS GOOD OR MERCHANTABLE. RENDERING AN OPINION COULD BE CONSIDERED AS PRACTICING LAW.

Question 293

PROPERTIES WITH LIENS: THE BROKER MUST INFORM A PROSPECTIVE BUYER OF SUCH CONDITIONS PRIOR TO THE PAYMENT OF ANY PORTION OF THE SALES PRICE

Answer 293

LOTTERIES: A BROKER WHO USES LOTTERIES OR TRADING SCHEMES THAT INVOLVE THE SELLING OF CERTIFICATES OR CHANCES TO INDUCE ANY PERSON TO BUY REAL ESTATE IS GUILTY OF FRAUD. CONTESTS WHERE NO PURCHASE IS REQUIRED MAY BE PERMISSIBLE.

Question 294

THE MAXIMUM ADMINISTRATIVE FINE PER VIOLATION OF F.S. 475 IS $5,000.

Answer 294

REPRIMAND: A REPRIMAND IS THE MINIMUM PENALTY FOR ALL LISTED VIOLATIONS.

ADMINISTRATIVE: MAY BE IMPOSED BY THE COMMISSION FOR VIOLATIONS OF LAW OR RULES IN AMOUNTS UP TO $5,000 PER OFFENSE.

Question 295

THE DIVISION OF REAL ESTATE SERVES AS THE INTERMEDIARY BETWEEN THE COMMISSION AND THE DEPARTMENT. THE DIVISION HANDLES ADMINISTRATIVE FUNCTIONS, INVESTIGATIONS, AND PROSECUTION OF COMPLAINTS IN DISCIPLINARY PROCEEDINGS AGAINST LICENSEES

Question 296

ALL LICENSEES ARE REQUIRED TO REPORT TO THE DEPARTMENT WITHIN 30 DAYS OF BEING CONVICTED, FOUND GUILTY, OR HAVING PLED NOLO CONTENDERE. FAILURE TO DO SO CAN RESULT IN SUSPENSION, REVOCATION AND AN ADMINISTRATIVE FINE $500 TO $2,500 FOR FIRST OFFENSE OR $1,000 TO $5,000 FOR SUBSEQUENT OFFENSES

Question 297

NOTICE OF NON-COMPLIANCE: “WARNING” A VIOLATION ADOPTED BY THE COMMISSION THAT IS CONSIDERED TO BE MINOR IF IT DOES NOT RESULT IN ECONOMIC OR PHYSICAL HARM.

Answer 297

A NOTICE OF NONCOMPLIANCE CAN BE ISSUED BY THE DIVISION TO A LICENSEE BY CERTIFIED MAIL OR PERSONAL SERVICE. THE NOTICE MUST IDENTIFY THE RULE IN WHICH WAS VIOLATED. THE LICENSEE IS ALLOWED 15 DAYS AFTER RECEIVING THE NOTICE OF NON COMPLIANCE TO CORRECT THE VIOLATION.

Question 298

THE ADMINISTRATIVE LAW JUDGE CAN ISSUE SUBPEONAS

Question 299

THE FLORIDA REAL ESTATE RECOVERY FUND WAS ESTABLISHED FOR THE PURPOSE OF REIMBURSING THOSE PERSONS OR ENTITIES WHO HAVE SUFFERED MONETARY DAMAGES AS THE RESULT OF VIOLATIONS OF F.S.475 COMMITTED BY REAL ESTATE LICENSEES.

Answer 299

FOR A SINGLE JUDGEMENT IS LIMITED TO A MULTIPLE JUDGMENTS ARE AWARDED AGAINST A LICENSEE THE MAXIMUM REIMBURSMENT FROM THE RECOVERY FUND IS LIMITED TO $150,000

Question 300

THE CIVIL RIGHTS ACT OF 1866 PROHIBITS DISCRIMINATION ON THE BASIS OF RACE

Answer 300

TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 PROHIBITED DISCRIMINATION IN GOVERNMENT FUNDED HOUSING PROGRAMS.

Question 301

THE CIVIL RIGHTS ACT MAKES DISCRIMINATION IN THE SHOWING, NEGOTIATION, SALE, RENTAL, OR FINANCING OF A DWELLING PROHIBITED WHEN BASED ON RACE, COLOR, RELIGION, SEX, OR NATIONAL ORIGIN.

Question 302

BLOCKBUSTING: CONSISTS OF INDUCING AN OWNER TO LIST OR SELL ON THE BASIS THAT THE NEIGHBORHOOD IS DETIORATING OR BECOMING TRANSITIONAL DUE TO AN INFLUX OF MINOR PERSONS

Question 303

STEERING: AN INDIVIDUAL DIRECTLY OR INDIRECTLY INTO OR AWAT FROM A NEIGHBORHOOD OR LOCATION IN A MULTI UNIT BUILDING ON THE BASIS OF RACE, COLOR, RELIGION, SEX, OR NATIONAL ORIGIN.

Question 304

REDLINING: THE REFUSAL BY A LENDER TO APPROVE A MORTGAGE LOAN BASED ON A PROPERTY BEING LOCATED IN A CERTAIN GEOGRAPHICAL AREA, THE AGE OF THE PROPERTY, THE INCOME LEVEL OF THE RESIDENTS, OR THE RACIAL COMPOSITION OF THE AREA

Question 305

THE CIVIL RIGHTS ACT REQUIRES BROKERS TO DISPLAY HUD HOUSING POSTER IN ALL PLACES OF BUSINESS INCLUDING MODEL HOMES IN SUBDIVISIONS.

Question 306

THE AMERICAN WITH DISABILITIES ACT WAS PASSED IN 1990 .

Answer 306

THE ADA MANDATES DESIGN SPECIFICATIONS FOR MULTIFAMILY. FOR EXISITING PROPERTIES THAT DO NOT COMPLY WITH ADA REQUIREMENTS THE OWNERS ARE REQUIRED TO MAKE NECESSARY MODIFICATIONS WHENEVER SUCH CHANGES ARE READILY ACHIEVABLE AND ECONOMICALLY FEASIBLE.

Question 307

THE FLORIDA RESIDENTIAL LANDLORD AND TENANT ACT IS INTENDED TO REDUCE INEQUITIES AND CONFUSION BY DEFINING THE RIGHTS OF LANDLORDS AND TENANTS IN BOTH RESIDENTIAL AND NON RESIDENTIAL

Question 308

THE LANDLORD IS REQUIRED TO MAKE CLEAR PROVISIONS FOR THE HANDLING OF DEPOSIT MONEY. THE LANDLORD IS REQUIRED TO NOTIFY THE TENENT IN WRITING WITHIN 30 DAYS OF RECEIVING THE SECURITY DEPOSIT OR ADVANCE RENT AS TO THE MANNER IN WHICH THE LANDLORD IS HOLDING THE FUNDS AND THE INTEREST BEING ACCRUED.

Question 309

THE LANDLORDS PROCEEDINGS FOR HANDLING THE SECURITY DEPOSIT. :
HOLD THE TOTAL AMOUNT IN ESCROW ACCOUNT IN A FLORIDA BANKING INSTIT FOR THE TENANTS BENEFIT. LANDLORD CAN NOT COMMINGLE THE FUNDS

HOLD TOTAL AMOUNT IN AN INTEREST BEARING ESCROW ACCOUNT IN A FLORIDA BANKING INSTIT FOR THE TENANTS BENEFIT. THE TENANT SHALL RECEIVE 75% OF THE INTEREST EARNED AND 5% SIMPLE INTEREST AT THE ELECTION OF THE LANDLORD.

POST A SURETY BOND WITH THE CLERK OF THE CIRCUIT COURT IN THE COUNTY WHICH THE DWELLING UNIT IS LOCATED IN THR AMOUNT OF THE TOTAL SECURITY HOLDINGS OR $50,000

Question 310

UPON VACATING THE PREMISES THE LANDLORD HAS 15 DAYS TO RETURN THE SECURITY DEPOSIT INCLUDING ACCRUED INTEREST.

Answer 310

IF THE LANDLORD INTENDS TO MAKE A CLAIM FOR DAMAGES AGAINST THE DEPOSIT, THE LANDLORD HAS 30 DAYS IN WHICH TO NOTIFY THE TENANT MUST BE SERVED IN MAIL

Question 311

THE LANDLORD MAY ENTER THE DWELLING UPON REASONABLE NOTICE TO THE TENANT. AS LONG AS NOTICE OF 12 HOURS PRIOR TO THE ENTRY.

Answer 311

IF THE LANDLORD DOES NOT MAKE REPAIR TO OR MAINTAIN THE PREMISES AS REQUIRED BY THE STATUTE OR THE RENTAL AGREEMENT WITHIN 7 DAYS AFTER RECEIVING WRITTEN NOTICE FROM THE TENANT, THE TENANT MAY TERMINATE THE RENTAL AGREEMENT.

Question 312

FAILURE TO PAY RENT: IF THE TENANT FAILS TO PAY RENT WHEN DUE. THE LANDLORD CAN DELIVER A WRITTEN DEMAND FOR THE PAYMENT OF THE RENT OR POSSESSION OF THE PREMISE.

Question 313

THE COUNTY CLERK WILL ISSUE AN EVICTIONS SUMMONS TO BE SERVED BY THE SHERRIFF. THE TENANT HAS 5 BUSINESS DAYS IN WHICH TO ANSWER OR RESPOND TO THE SUMMONS.

Question 314

CALLING SOMEONE ON THE DO NOT CALL LIST CAN BE SUBJECT UP TO A FINE OF $10,000

Question 315

REAL ESTATE IS PHYSICAL, TANGIBLE, AND IMMOBILE. IT INCLUDES THE EARTHS SURFACE, SUBSURFACE AND THE AIR ABOVE THE SURFACE.

Question 316

REAL PROPERTY: INCLUDES THE PHYSICAL LAND AND IMPROVEMENTS TOGETHER WITH LEGAL RIGHTS TO OWN OR USE THE PROPERTY. AN INDIVIDUALS PROPERTY RIGHTS ARE GURANTEED AND PROTECTED BY THE GOVERNMENT

Question 317

RIPIRIAN RIGHTS: THE RIGHTS OF AN OWNER WHOSE PROPERTY BORDERS A FLOWING WATERWAY SUCH AS A RIVER STREAM

Question 318

ACCRETION: IS AN INCREASE IN THE LAND AREA AS MOVING WATER DEPOSITS SOIL IN OTHER THAN ITS ORIGINAL LOCATION

Question 319

PERSONAL PROPERTY IS MOVEABLE: IT INCLUDES ITEMS SUCH AS FURNITURE, AUTOMOBILES, STOCKS, BONDS, MONEY, AND MORTGAGES.

Question 320

TANGIBLE: PHYSICAL EXISTENCE
REAL ESTATE IS CONSIDERED TO BE TANGIBLE

STOCKS AND BONDS ARE INTANGIBLE.

Question 321

FIXTURES: IS AN ITEM THAT WAS ONCE PERSONAL PROPERTY, BUT HAS BEEN INSTALLED OR ATTACHED TO THE LAND OR BUILDING IN A PERMANENT WAY THAT HAS CAUSED IT TO BECOME PART OF THE REAL ESTATE

Question 322

TRADE FIXTURES: ARTICLES OF PERSONAL PROPERTY THAT HAVE BEEN ATTACHED TO REAL ESTATE THAT IS RENTED OR LEASED BY A TENANT AND USED IN THE CONDUCT OF BUSINESS. PERSONAL PROPERTY INSTALLED TO CONDUCT A BUSINESS OR TRADE IS NOT CONSIDERED PART OF THE REAL ESTATE AND CAN BE REMOVED DURING OR AT THE TERMINATION OF A LEASE

Question 323

THE SALE OF A PROPERTY DOES NOT INCLUDE ITEMS OF PERSONAL PROPERTY

Question 324

THE 4 TESTS USED BY COURTS TO DETERMINE REAL OR PERSONAL PROPERTY:

1. INTENT OF THE PARTIES
2. RELATIONSHIP OF THE PARTIES
3. METHOD OF ANNEXTION
4. ADAPTION OF THE ARTICLE.

Question 325

REAL PROPERTY LAWS IN THE UNITED STATES ARE BASED ON THE ALLODIAL SYSTEM WHICH ALLOWS PRIVATE CITIZENS THE RIGHT TO OWN LAND.

Question 326

THE FIVE LARGE STICKS IN THE BUNDLE OF RIGHTS: 
POSSESSION 
DISPOSITION
ENJOYMENT
EXCLUSION
CONTROL

Question 327

AN ESTATE IS THE DEGREE, QUANTITY, NATURE, AND EXTENT OF INTEREST OR OWNERSHIP RIGHTS A PERSON CAN HAVE REAL PROPERTY.

Question 328

FREEHOLD ESTATE: ESTATE INVOLVING OWNERSHIP. NO SPECIFIED TIME FOR THE RIGHTS TO EXPIRE.

Question 329

FEE SIMPLE ESTATE: THE OWNER HAS A COMPLETE BUNDLE OF RIGHTS. A FEE SIMPLE ESTATE IS THE SIMPLEST AND YET THE MOST COMPREHENSIVE ESTATE IN LAND. IT IS THE MOST DESIRABLE AND MOST COMMON TYPE OF ESTATE. HOME V. CONDO .

EXAMPLE: HOME U OWN CONDO BUILDING IS OWNED BY SOMEONE

Question 330

ESTATE IN SEVERALTY: IS SOLE OWNERSHIP OF THE ENTIRE BUNDLE OF RIGHTS. YOU ONLY OWN THE HOUSE NO CO-OWNERSHIP - ONE OWNER

Question 331

TENANCY IN COMMON: IS A FEE ESTATE HELD BY TWO OR MORE PERSONS. EACH PERSON HAS AN UNDIVIDED INTEREST IN THE WHOLE PROPERTY. A TENANCY IN COMMON OWNERSHIP CAN BE CREATED BY THE SAME OR DIFFERENT DEEDS, AT THE SAME OR DIFFERENT TIMES, WITH EQUAL OR UNEQUAL SHARES OF OWNERSHIP. ALL OWNERS HOWEVER HAVE EQUAL RIGHTS OF USE AND PERCENTAGE.

Answer 331

NO RIGHT TO SURVIVORSHIP
LEAVE INTEREST IN A WILL
BOUGHT AT DIFFERENT TIMES
SELL TO A STRANGER

Question 332

JOINT TENANCY: IS A FEE ESTATE SHARE BY TWSO OR MORE PERSONS WHO MUST HAVE EQUAL AND UNDIVIDED INTERESTS. A JOINT TENANCY CAN BE CREATED ONLY WHEN THE FOUR UNITIES OF POSSESSION, INTEREST, TIME, AND TITLE ARE PRESENT. 50/50 RIGHT OF SURVIVORSHIP. NOT BETWEEN HUSBAND AND WIFE

Question 333

TENANCY BY THE ENTIRETIES: IS AN ESTATE FOR A HUSBAND AND WIFE ONLY. THE MARRIAGE IS CONSIDERED TO BE THE OWNER OF THE PROPERTY IN WHICH EACH SPOUSE HAS A RIGHT OF SURVIVORSHIP. UPON THE DEATH OF ONE SPOUSE, THE SURVIVING SPOUSE WILL OWN PROPERTY IN FEE SIMPLEAS AN ESTATE IN SEVERALTY. BETWEEN HUSBAND AND WIFE. MARRIAGE OWNS. DIVORCE CAN MAKE IT CHANGE TO TENANCY IN COMMON.

Question 334

LIFE ESTATE: IS A FREEHOLD ESTATE CREATED WHEN AN OWNER OF A FEE SIMPLE ESTATE CONVEYS OWNERSHIP TO ANOTHER, BUT ONLY FOR THE BALANCE OF THE LIFETIME OF THE PARTY TO WHOM THE PROPERTY IS CONVEYED.

Answer 334

THE PARTY WHO CREATED THE LIFE ESTATE CALLED THE GRANTOR, MAY WISH TO HAVE THE PROPERTY OWNERSHIP RETURNED TO HIM OR HER OR TO HIS OR HER HEIRS. THE RIGHT TO REGAIN THE OWNERSHIP IS CALLED REVERSION ESTATE. THE GRANTOR MAY INSTEAD WISH TO HAVE THE PROPERTY PASS TO ANOTHER PERSON OR ENTITY NAMED IN THE ORIGINAL DEED. IF SOMEONE OTHER THAN THE ORIGINAL OWNER IS TO RECEIVE THE OWNERSHIP IS CALLED REMAINDER IN ESTATE.

Question 335

NON FREEHOLD ESTATE= OCCUPIED BETWEEN TENANT AND LANDLORD. THE TENANT DOES NOT HAVE AN OWNERSHIP INTEREST IN THE PROPERTY. THE TENANT ONLY HAS THE RIGHT OF POSSESSION AND USE.

Question 336

TENANCY AT WILL: NON FREEHOLD ESTATE WITH THE TENANT IN LAWFUL POSSESSION OF THE PROPERTY UNDER AN AGREEMENT WITH THE LANDLORD, BUT WITH NO DEFINITE TIME LIMIT FOR THE RIGHTS TO TERMINATE. REFERRED TO AS A PERIOD TO PERIOD TENANCY.

Question 337

TENANCY FOR YEARS: IS NON FREEHOLD ESTATE WITH THE TENANT IN LAWFUL POSSESSION OF THE PROPERTY UNDER AN AGREEMENT WITH LANDLORD FOR A SPECIFIED PERIOD OF TIME.

Question 338

ELECTIVE SHARE PROVIDES FOR A SURVIVING SPOUSE TO BE ENTITLED TO 30% OF THE DECEDENTS REAL AND PERSONAL PROPERTY OWNED AT THE TIME OF DEATH. ONCE THE 30% SHARE HAS BEEN TRANSFERRED TO THE SURVIVING SPOUSE, THE SURVIVING SPOUSE OWNS THE PROPERTY IN FEE SIMPLE AND CAN DISPOSE OF IT THROUGH SALE, OR USE THE PROPERTY AS DESIRED.

Question 339

THE COURT WILL APPOINT A PERSONAL REPRESENTATIVE TO ADMINISTER THE AFFAIRS OF THE DECEDENT AND DISTRIBUTE THE ASSETS ACCORDING TO THE LAW OF DESCENT AND DISTRIBUTION

Question 340

UNDER THE LAW OF DESCENT AND DISTRIBUTION, ALL PROPERTY PASSES TO A SURVIVING SPOUSE IF THERE ARE NO LINEAL DESCENDANTS OF BOTH THE HUSBAND AND SPOUSE.

Question 341

HOMESTEAD RIGHTS: EXEMPTS HOMESTEAD PROPERTY FROM THE EXECUTION AND FORCED SALE OF THE PROPERTY TO SATISFY PERSONAL JUDGMENT LIENS, SUCH AS PERSONAL LOANS OR CREDIT CARD DEBT, WHICH ARE HELD AGAINST THE HEAD OF A HOUSEHOLD. HOMESTEAD PROPERTY CAN BE FORECLOSED UPON FOR DEBTS THAT ARE RELATED TOTHE PROPERTY AND DEBTS ENTERED INTO JOINTLY BY BOTH SPOUSES.

Question 342

COOPERATIVE ASSOCIATION: REQUIRES A REAL ESTATE LICENSE TO SELL. RESIDENTIAL. CORP THAT BUYS AND OWNS MULTIPLE UNIT BUILDING. SHARES OF STOCK IN THE CORPORATION ARE SOLD TO INDIVIDUALS WHO IN TURN ARE GIVEN A PROPRIETARY LEASE BY THE CORPORATION, WHICH ALLOWS THE SHAREHOLDER TO OCCUPY SPECIFIED SPACE WITHIN THE BUILDING.

Question 343

TITLE TO REAL PROPERTY: WHEN A PARTY OWNS PROPERTY HE OR SHE HAS LEGAL TITLE TO IT. LEGAL TITLE IS AN OWNERSHIP INTEREST THATS ENFORCEABLE BY LAW. TITLE TO REAL PROPERTY IS THE OWNERSHIP OF SPECIFIED RIGHTS IN PROPERTY THAT FORMS AN ESTATE.

Question 344

NOTICE OF OWNERSHIP: ACTUAL NOTICE: IS PROVIDED BY PHYSICAL POSSESSION. ACTUAL NOTICE CAN BE EITHER EXPRESSED OR IMPLIED.

CONSTRUCTIVE NOTICE: ALSO CALLED LEGAL NOTICE IS ACHIEVED BY RECORDING DOCUMENTS IN THE PUBLIC RECORDS. DOCUMENTS ARE RECORDED IN THE OFFICE OF THE CLERK OF THE CIRCUIT COURT IN THE COUNTY WHERE THE PROPERTY IS LOCATED.

Question 345

TITLE DEFECTS ALSO REFERRED TO AS CLOUD ON TITLE. CAN BE ANY ISSUE THAT CAUSES THE CURRENT TITLE TO BE QUESTIONED INCLUDING: FAILURE TO COMPLY WITH LOCAL REAL ESTATE DOCUMENT LAWS, OR THE DISCOVERY OF OTHER CLAIMS OR LIENS ON THE PROPERTY THAT WERE NOT ACKNOWLEDGED AT THE TIME THE DEED WAS ISSUED.

Question 346

DEED: IS A DOCUMENT THAT CONVEYS TITLE FROM ONE PARTY TO ANOTHER WHEN REAL PROPERTY IS SOLD OR CONVEYED BY GIFT. DEEDS ARE THE MOST COMMON DOCUMENTS USED TO TRANSFER TITLE.

Answer 346

WILL: IS A DOCUMENT THAT PROVIDES FOR THE TRANSFER OF TITLE UPON THE DEATH OF AN INDIVIDUAL WHO DIED TESTATE. THE DECEDENT IS REFERRED TO AS THE TESTATOR OR TESTATRIX.

Question 347

THE WILLFUL DISPOSITIOM OR GIFT OF REAL PROPERTY IS CALLED DEVISE AND THE RECIPEINT OF THE REAL PROPERTY IS REFERRED TO AS THE DEVISEE. THE DISPOSITION OR GIFT OF PERSONAL PROPERTY IS CALLED BEQUEST AND THE RECIPIENT OF THE PERSONAL PROPERTY IS REFERRED TO AS THE BENEFICIARY

Question 348

DESCENT AND DISTRIBUTION: IS STATUTORY SYSTEM CREATED BY LAW. THIS SYSTEM PROVIDES FOR THE TRANSFER OF TITLE TO LEGAL DESCENDANTS UPON THE DEATH OF AN INDIVIDUAL WHO DIED INTESTATE. PROBATE LAW ESTABLISHES THE ORDER IN WHICH SUCH ASSETS MUST BE ALLOCATED AND PROVIDES

Question 349

EMINENT DOMAIN: IS THE GOVERNMENTS RIGHT TO TAKE PRIVATE PROPERTY, THROUGH A PROCESS CALLED CONDEMNATION, FOR PUBLIC BENEFIT. EMINENT DOMAIN IS FURTHER DESCRIBED LATER IN THIS CHAPTER. HAS TO BE TAKEN FOR GOVERNMENT USE NOT A SHOPPING CENTER

Question 350

ADVERSE POSSESSION: IS A LEGAL PRINCIPLE UNDER WHICH AN OWNER MAY LOSE TITLE TO ANOTHER PERSON WHO HAS TAKEN CONTROL OF THE PROPERTY. THE PERSON WHO CLAIMS OWNERSHIP MUST ENTER INTO OPEN, ADVERSE,HOSTILE, AND EXCLUSIVE POSSESSION OF THE PROPERTY FOR A PERIOD OF SEVEN CONTINUOUS YEARS. POSSESSION MUST BE HOSTILE TO THE TRUE OWNER AND MUST BE UNDER A CLAIM OF OWNERSHIP EVEN IF THE CLAIM IS IMPERFECT.

Answer 350

POSSESOR MUST PAY ALL REAL ESTATE TAXES FOR ALL YEARS

Question 351

ESCHEAT IS THE PROPERTY TO THE STATE IF SOMEONE DIES INTESTATE AND HAS NO KNOWN HEIRS.

Question 352

TRANSFERRING TITLE: TRANSFERRING OR CONVEYING OWNERSHIP FROM ONE PARTY TO ANOTHER, CALLED ALIENATION.

Question 353

REQUIREMENTS FOR A VALID DEED INCLUDE:
THE DEED MUST BE IN WRITING
THE PARTIES MUST BE NAMED
THE GRANTOR MUST HAVE THE LEGAL CAPACITY TO GRANT OWNERSHIP
A GRANTING CLAUSE OR WORDS OF CONVEYANCE MUST BE INCLUDED
A HABENDUM CLAUSE MUST DEFINE THE QUALITY OF THE OWNERSHIP INTEREST BEING CONVEYED.
A LEGAL DESCRIPTION OF THE PROPERTY MUST BE PROVIDED
THE DEED MUST BE SIGNED BY THE GRANTOR AND WITNESSED BY TWO PERSONS. THE GRANTEE IS NOT REQUIRED TO SIGN THE DEED.
THE DEED IS VOLUNTARILY DELIVERED AND ACCEPTED. TITLE DOES NOT TRANSFER UNTIL THE DEED IS VOLUNTARILY DELIVERED TO, AND VOLUNTARILY ACCEPTED BY THE GRANTEE.

Question 354

DEEDS DO NOT HAVE TO BE ACKNOWLEDGED OR RECORDED IN ORDER TO BE VALID.

A NOTARY PUBLIC IS AN OFFICER OF THE STATE, AND THEREFORE, MAY ACKNOWLEDGE THE DOCUMENT.

Question 355

CLAUSES IN DEEDS: DEEDS MAY HAVE SEVERAL CLAUSES

Question 356

PREMISES CLAUSE: IS ALSO KNOWN AS THE GRANTING CLAUSE. MOST IMPORTANT DEED. THIS CLAUSE NAMES THE PARTIES, CONTAINS WORDS OF CONVEYANCE, STATES A CONSIDERATION, INCLUDES THE DATE OF TRANSFER, AND PROVIDES THE LEGAL DESCRIPTION OF THE PROPERTY BEING CONVEYED.

Question 357

HABENDUM CLAUSE: TO HAVE AND TO HOLD CLAUSE. SPECIFIES THE LEGAL RIGHTS BEING CONVEYED. THE PORTION OF THE BUNDLE OF RIGHTS BEING CONVEYED IS DESCRIBED IN THIS CLAUSE, SUCH AS “FEE SIMPLE FORVER” OR IN A LIFE ESTATE

Question 358

QUITCLAIM DEED: BEST DEED FOR THE SELLER. WORST DEED FOR THE BUYER. TO CLEAR THE NAME ON TITLE, CONTAINS NO WARRANTS OF ANY KIND. RARELY USED IN DAY TO DAY SALES. CURE DEFECTS ON TITLE. FRQUENTLY USED IN DIVORCE. MAY ALSO BE USED TO REMOVE EASEMENTS.

Question 359

GENERAL WARRANTY DEED: A TYPE OF BARGAIN AND SALE DEED. THE GRANTOR GRANTS, BARGAINS, AND SELLS THE PROPERTY TO THE GRANTEE. THE GRANTOR PROMISES TO DEFEND THE TITLE AGAINST ANY AND ALL CLAIMS. BEST DEED FOR THE BUYER. MOST COMMON TYPE OF DEED. BEST PROTECTION TO THE GRANTEE.

Question 360

CERTIFICATE OF TITLE: USED TO SHOW OWNERSHIP IN THE EVENT OF FORECLOSURE.

Question 361

EMINENT DOMAIN: ALLOWS LOCAL, STATE, OR FEDERAL GOVERNMENT RAILROADS, PUBLIC UTILITIES, AND PUBLIC HOUSING AUTHORITIES TO OBTAIN OWNERSHIP TO PRIVATE PROPERTY. THIS IS CALLED TAKING. THE TAKING MUST ONLY BE FOR PUBLIC USE SUCH AS TO BUILD HIGHWAYS, SCHOOLS, RAILROADS,OR PUBLIC PRJECTS.

Question 362

TO EXCERCISE ITS RIGHT TO ACQUIRE THE PROPERTY THIS ACTION TO ENFORCE THE SALE IS CALLED CONDEMNATION PROCEEDING

Question 363

GROSS LEASE: RESIDENTIAL. IN WHICH THE TENANT PAY A FIXED RENTAL AMOUNT, AND THE LANDLORD PAYS ALL EXPENSES RELATED TO THE PROPERTY SUCH AS REAL ESTATE TAXES, INSURANCE, AND MAINTENANCE COSTS.

Question 364

NET LEASE: EX: STRIP MALL SHOPPING CENTER. A COMMERCIAL AND INDUSTRIAL LEASE ARE COMMONLY NET LEASES. TENANTS PAY A FIXED RENT PLUS ALL OR A PORTION OF THE OPERATING COSTS SUCH AS REAL ESTATE TAXES, INSURANCE, MAINTENANCE.

Question 365

PERCENTAGE LEASE: A LEASE IN WHICH THE TENANT PAYS A MONTHLY BASE RENT PLUS A PERCENTAGE OF THE ANNUAL OR MONTHLY GROSS SALES OF GOODS SOLD ON THE PREMISES. MUST PAY PERCENTAGE MOST COMMON IN MALLS

Question 366

SUPERIOR LIENS: TAKES PRECEDENCE OVER ALL OTHER TYPE OF LIENS. IF A FORECLOSURE SALEOCCURS. A SUPERIOR LIEN IS PAID FROM THE PROCEEDS OF THE SALE BEFORE ANY JUNIOR LIEN. A SUPERIOR LIEN IS INVOLUNTARY AND IS IMPOSED BY THE LAW WITHOUT THE OWNERS CONSENT.

Question 367

REAL ESTATE PROPERTY TAXES: ARE ASSESSED AND BECOME A LIEN ON JAN 1 OF EACH YEAR. EVEN THOUGH THE OWNER DOES NOT KNOW THE AMOUNT UNTIL TAX BILL IS RECEIVED AFTER NOV 1ST OF THE SAME YEAR.

Question 368

SPECIAL ASSESMENT LIEN: FOR IMPROVEMENTS, SUCH AS ROAD PAVING, SIDEWALKS, AND SEWERS ATTACH TO A PROPERTY UNTIL THE FULL AMOUNT OF THE LIEN HAS BEEN PAID

Question 369

MORTGAGE LIEN: VOLUNTARY PLEDGE OF PROPERTY AS SECURITY FOR REPAYMENT OF A LOAN.

Question 370

VENDORS LIEN: AN OWNER WHO SELLS A PROPERTY IS ENTITLED TO A LIEN AGAINST THE PROPERTY THAT IS BEING SOLD TO SECURE ANY UNPAID BALANCE OF THE PURCHASE PRICE. A COURT WILL IMPOSE A VENDOR’S LIEN ONLY IF NO OTHER FORM OF SECURITY HAS BEEN RECEIVED

Question 371

CONSTRUCTION/ MECHANIC LIEN: MUST HAVE CONTRACT. HAS 90 DAYS FROM DATE TO FILE LIEN. CONTRACTOR OR BUILDER WHO HAS NOT BEEN PAID MONEY THAT IS DUE TO THEM IS ENTITLED TO A LIEN AGAINST PROPERTY FOR MATERIALS OR LABOR USED TO BUILD OR IMPROVE THE PROPERTY.

Question 372

FEDERAL INCOME TAX LIEN: NON PAYMENT OF FEDERAL INCOME TAXES.

Question 373

LEGAL DESCRIPTIONS ARE USED TO IDENTIFY A PARCEL’S LOCATION ON THE FACE OF THE EARTH WITHOUT DUPLICATION AND WITHOUT CONFUSION OF ANY OTHER PARCEL.

Answer 373

RECORDED AND IS IN PUBLIC RECORDS

Question 374

3 METHODS USED TO LEGALLY DESCRIBE PROPERTY ARE AS FOLLOWS:
SURVEYOR’S METHOD: ALSO CALLED THE METES AND BOUNDS METHOD
GOVERNMENT SURVEY METHOD: CALLED THE RECTANGULAR METHOD
LOT AND BLOCK METHOD: ALSO CALLED THE PLAT METHOD OR RECORDED PLAT METHOD

Question 375

SURVEYORS METHOD: ALSO KNOWN AS THE METES AND BOUNDS METHOD IS THE OLDEST METHOD OF LAND DESCRIPTION AND PROVIDES THE MOST ACCURATE TYPE OF LEGAL DESCRIPTION.

Question 376

METES: METES ARE MEASUREMENTS OF DISTANCE SUCH AS INCHES, FEET, YARDS, AND MILES.

BOUNDS: BOUNDS REFER TO COMPASS DIRECTIONS TO PROPERTY BOUNDARIES.

Question 377

POINT OF BEGINNING: THE SURVEY BEGINS BY GIVING DIRECTIONS TO THE EDGE OF THE PROPERTY WHICH IS CALLED THE POINT OF THE BEGINNING. WHEN THE SURVEY RETURNS TO THE POB IT IS CALLED CLOSING.

Question 378

SURVEYORS USE A CIRCULAR METHOD TO IDENTIFY THE DIRECTION IN WHICH THE SURVEY MOVES AROUND THE PROPERTYS BOUNDARY

Question 379

A TOWNSHIP IS SIX MILES SQUARE AND CONTAINS 36 SQUARE MILES.

Question 380

THE PLAT METHOD ALSO KNOWN AS THE LOT AND BLOCK METHOD IS A METHOD OF LEGAL DESCRIPTION USED TO IDENTIFY SMALL PARCELS OF PROPERTY IN SUBDIVIDED AREAS AND CITIES

Question 381

ONE ACRE CONTAINS 43,560 SQUARE FEET

ONE MILE IS 5,280 FEET.

Question 382

A CONTRACT IS AN AGREEMENT BETWEEN TWO OR MORE COMPETENT PARTIES

Question 383

OFFER AND ACCEPTANCE: THERE MUST BE AN OFFER AND ACCEPTANCE, AGREEMENT OR MEETING OF THE MINDS.

CONSIDERATION: A CONTRACT MUST SPECIFY A SUFFICIENT CONSIDERATION. EITHER VALUABLE OR GOOD CONSIDERATION MAY BE SUFFICIENT. VALUABLE CONSIDERATION IS MONEY OR ANYTING OF VALUE THAT CAN BE CONVERTED TO MONEY.

Question 384

BUYER INITIATES THE CONTRACT. A CONTRACT IS CREATED WHEN THE OFFER OF ONE PARTY IS ACCEPTED AND ACCEPTANCE OF THE OFFER IS COMMUNICATED TO THE PERSON WHO MADE THE OFFER.

Question 385

THE ORIGINAL STATUTE OF FRAUDS WAS ENACTED IN ENGLAND 1677 TO PROVIDE PROTECTION AGAINST FRAUD. IT REQUIRES A CONTRACT FOR THE TRANSFER OF A RIGHT OR INTEREST IN LAND TO BE IN WRITING IN ORDER TO BE ENFORCEABLE.

Question 386

ORAL CONTRACTS: IF A CONTRACT IS COMPLETELY ORAL ACTION MUST BE BROUGHT ON WITHIN 4 YEARS

Question 387

WRITTEN CONTRACTS: A CONTRACT WHOLLY IN WRITING MAY BE ENFORCED IF ACTION IS BROUGHT WITHIN 5 YEARS.

Question 388

IMPLIED CONTRACT: AN IMPLIED CONTRACT EXISTS WHEN SOME OR ALL OF THE TERMS AND CONDITIONS CAN BE ASSUMED BY THE NATURE OF THE AGREEMENT OR THE WORDS AND ACTIONS OF THE PARTIES. AN IMPLIED CONTRACT CAN BE EITHER ORAL OR WRITTEN OR COULD BE AN IMPLIED PROVISION OF ANOTHER CONTRACT. NOTHING IS IN WRITING PERFORMED BY ACTION

Question 389

THE ELEMENTS OF A VALID CONTRACT: 
COMPETENT PARTIES
OFFER AND ACCEPTANCE
LAWFUL SUBJECT
IN WRITING
CONSIDERATION

Question 390

BILATERAL CONTRACT: BOTH OF THE PARTIES TO THE CONTRACT MUTUALLY AGREE TO BE BOUND TO PERFORMANCE OF THE TERMS AND CONDITIONS SPECIFIED

Question 391

UNILATERAL CONTRACT: ONLY ONE PARTY EXPRESSLY AGREES TO PERFORM AN ACT. A PROMISE IS GIVEN IN EXCHANGE FOR AN ACT

Question 392

EXECUTORY CONTRACT: CONSIDERED TO BE EXECUTORY IF ANY TERM OR CONDITION REMAINS TO BE PERFORMED.

EXECUTED CONTRACT: WHEN ALL PARTIES HAVE FULLY PERFORMED THE CONTRACT HAS BEEN EXECUTED

Question 393

FORMAL CONTRACT: IS WRITTEN, CONTAINS ALL THE ELEMENTS OF A VALID CONTRACT, AND MAY BE RECORDED IN PUBLIC RECORD

Question 394

ONE DEFINITION OF A FORMAL CONTRACT IS A CONTRACT THAT IS WHOLLY WRITTEN AND UNDER SEAL

Question 395

THE SEAL OF A NOTARY PUBLIC IS CALLED AN ACKNOWLEDGEMENT

Question 396

AN INFORMAL CONTRACT CAN BE VALID, LEGAL CONTRACT BUT IS NOT ENFORCEABLE.

Question 397

VOID: A CONTRACT THAT IS VOID IS INHERENTLY UNFORCEABLE. A VOID CONTRACT CAN NOT BE PERFORMED UNDER THE LAW .

A CONTRACT CAN BE VOID AS A RESULT OF MEETING ONE OF THE FOLLOWING CRITERIA.

• IT REQUIRES A PARTY TO PERFORM AN ACT THAT IS IMPOSSIBLE OR ILLEGAL
• IT BECAME ILLEGAL DUE TO CHANGES IN THE LAW OR GOV POLICY
• IT WAS LEGAL BUT WAS DECLARED NULL BY THE COURTS BECAUSE IT VIOLATED A FUNDAMENTAL PRINCIPLE SUCH AS FAIRNESS OR IS AGAINST PUBLIC POLICY

Question 398

VOIDABLE CONTRACT: IS A VALID AGREEMENT THAT CAN BE ENFORCEABLE. HOWEVER ONE OR BOTH PARTIES TO THE CONTRACT CAN CANCEL OR REVOKE THE CONTRACT AT ANY TIME. A VODIABLE CONTRACT CAN BE LEGALLY REJECTED BY ONE PARTY AND IS SAID TO HAVE A DEFECT.

Answer 398

REASONS THAT CAN MAKE A CONTRACT VOIDEABLE:

• FAILURE BY PARTY TO DISCLOSE A MATERIAL FACT
• A MISTAKE MISREPRESENTATION OR FRAUD
• COERCION UNDUE INFLUENCE OR DURRESS
• LACK OF CAPACITY A PARTY WAS UNABLE DUE TO INTOXICATION OR OTHER IMPAIRMENTTO UNDERSTAND AND FORM A CONTRACT
• A BREACH OF CONTRACT
• A MINOR ENTERS INTO A CONTRACT WITH AN ADULT

Question 399

THE PARTY WHO MAKES AN OFFER IS CALLED THE OFFEROR

THE PARTY WHO RECEIVES THE OFFER IS THE OFFEREE

Question 400

A COUNTEROFFER HAS THE EFFECT OF REJECTING THE ORIGINAL OFFER AND REPLACING IT WITH AN ENTIRELY NEW OFFER.

Question 401

TERMINATION OF OFFERS:
ACCEPTANCE: AN OFFER ACCEPTED BY THE PARTIES BECOMES A CONTRACT. NOT NOVATION NOR ASSUMABLE MORTGAGE
WITHIDRAWAL: THE OFFER CAN WITHDRAW AN OFFER AT ANY TIME UP TO TBE TIME THAT ACCEPTANCE OF THE OFFER HAS BEEN COMMUNICATED. BUYER CAN WALK AWAY

REJECTION COUNTER OFFER: OFFER WAS LOW.

LAPSE OF TIME: THE OFFER IS TERMINATED AT THE END OF THE TIME SPECIFIED FOR ACCEPTANCE IN THE OFFER.

DEATH OR INSANiTY

DESTRUCTION OF THE PROPERTY

Question 402

the six ways in which a contract can be terminated are: 
breach
renunciation
revocation
lapse of time
abandonment
performance

Question 403

breach of contract occurs when one contracting party fails or refuses to carry out the terms and conditions agreed upon in the contract

Question 404

the three basic remedies for a breach of contract:
suit for cancellation
suit for specific perfomance
suit for damages

Question 405

liquidated damages: comes from brokers escrow account. the parties have agreed to the penalty to be imposed in the event of a breach by either party.

Question 406

unliquidated damages: are those that are not specified in the contract but are determined by a court

Question 407

assignment of contracts:
the sale, transfer, or subrogation of rights in a contract is called an assignment. an assignment is a contract between the assignor and the assignee. most contracts are assignable unless prohibited in the agreement.

Question 408

the vendee customarily gives a binder deposit, also called earnest money

Question 409

the vendor is protected somewhat by the deposit and is reimbursed for the inconvenience of having removed the property from the market.

Question 410

equitable title: vendor retains title until closing: the vendee requires equitable title as a result of having entered into a binding contract to purchase the property

Question 411

licensees are not allowed to prepare contracts for mortgages, deeds, leases, assignments or other legal documents.

any lease over a year by a RE agent is illegal

Question 412

a licensee may not modify lease forms in any way
must refer any and all questions regarding the interpretation of the lease forms to an attorney
may prepare the purchase or option portion of a lease purchase or lease option
must use an approved lease form for the lease portion of a lease purchase or lease option agreement or allow an attorney to prepare it.

Question 413

as is contacts: the seller is under no obligation to make any repairs to the property that are discovered during the inspection process.

Question 414

seller disclosure of known material facts: all real estate licensees have a duty to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer. included in the purchase and sale in contract.

Question 415

types of listing contracts:
open listing: is a unilateral contract, the property owner promises to pay a commission if the broker or agent finds raw buyer( ready, able, willing) cant be on mls. seller makes promise 2 pay commission seller leaves open to many brokers

Question 416

written listing contracts: written listing agreements cannot include an automatic renewal provision. must deliver a copy of any written listing agreement to the property owner within 24 hours of execution

Question 417

exclusive agency listing: reserves right to sell without paying may be placed on the mls if a broker is on record. is a bilateral contract in which the property owner promises to list the property with only one broker. the property owner promises to pay a commission id the broker successfully performs

Question 418

exclusive right of sale listing: must be in writing, best one for the broker, owner agrees to pay commission best for the agent. property owner promises to pay a commission regardless of who sells the listed property.

Question 419

commercial listings: deliver 30 days of contract

part of the commission lien act part III, not less than one day before closing