Real Estate Exam 1,009 Q&A #1-200 Flashcards
1
Q
Number of days to Notify DBPR is a License becomes a nonresident and to file irrevocable consent to servise
A
60 Days
2
Q
Salaried managers of condominium or cooperative units who prepare rental agreements with a duration of up how many years are exempt from real estate license
A
Up to One year
3
Q
Time period after which the licence application will expire
A
Two Years
4
Q
Time Period which the pre-License will expired
A
Two Years
5
Q
Experience requirements for brokers applicant obtained within preceding five-year-period
A
Two Years
6
Q
Number of Days to Notify the FREC regarding a change of business address
A
Ten Days
7
Q
Number of days a sales associate, broker associate, or an instructor has to notify the FREC of a change of employer
A
Ten Days
8
Q
Grace period after discharge from the military duty to renew license
A
Six Months
9
Q
Time Period after which involuntary inactive license becomes null and void
A
Two Years
10
Q
Period requires to retain brokerage relationship disclosure for all transaction that results in a written contract.
A
Five Years
11
Q
Time Period for sales associate to turn funds over to broker
A
End of next business day
12
Q
Time Period for brokers to deposit funds into escrow account
A
End of the third business day
13
Q
Number of days to Notify FREC if the broker request an EDO and the escrow dispute is either settle or goes to court before the EDO is issued
A
Ten Business Day
14
Q
Number of days to replace broker of record
A
14 Days
15
Q
Number of days to notify FREC of conflicting demands or good faith doubt.
A
15 days
16
Q
Number of days to institute settlement procedure after receiving conflicting demands
A
30 business days
17
Q
Time period to preserve brokers business records
A
5 years
18
Q
Number of Days to Correct minor infraction listed in notice of noncompliance
A
15 Days
19
Q
Number of days after which a final order becomes effective
A
30 Days
20
Q
Time period to file Appeal
A
30 Days
21
Q
Number of days licensee has to accept or file a written objection to a citation
A
30 Days
22
Q
Penalty for a second degree misdemeanor
A
60 days and/or $500 fine
23
Q
Penalty for a first degree misdemeanor
A
One year and/or $1000 fine
24
Q
Penalty for a third degree misdemeanor
A
Five years and/or $5000 fine
25
Time period allowed to claim against recovery fund
Two Years
26
Maximum period of suspension
Ten Years
27
Time period after notice is posted by sheriff that eviction will take palce and landlord recovers the property
24-hours
28
Number of days to give information booklet concerning settlement cost to loan applicant
Three business days
29
Number of days borrower has the right to cancel the loan contract following signing loan documents for home equity line of credit
Three business days
30
Time period allowed to cancel contract under the Interstate Land Sales Full Disclosure Act
Seven Days
31
Number of days for landlord to return security deposit if not making a claim on deposit
15 days
32
Number of days for landlord to notify tennant if making a claim a claim on the deposit
30 days
33
Time period for tenants to file a written objection to the landlord's claim on deposit
15 Days
34
Number of days to inform tenant regarding how funds are being held
30 Days
35
Notice to cancel resale condominium contract
Three business days
36
Notice to cancel from condo for sale from a developer
15 days
37
Florida enacted its first such law, what year?
1923
38
Real Estate License Law was officially designated Chap 475 of the Florida Statutes in what year?
1941
39
Number of Days to file a construction lien
90 days
40
Number of years of hostile possession to claim adverse possession
7 Years
41
Minimum time period of uninterrupted use to create an easement by description
20 years
42
Time period sellers must allow home buyers to conduct inspection for lead paint
10 days
43
Time period to enforce oral contract under the statue of limitations
4 years
44
Time period to enforce written contract under the statue of limitations
5 years
45
A Business Broker
Specializes in the sale, purchase or lease of businesses. Is required to have a real estate license and may be licensed as a real estate broker or sales associate
46
Follow-Up is
Keeping in contact with the new owner after the closing of the sale
47
A builder constructs a house on an owner's lot according to the owner's plans and specifications. This is called
Custom Building
48
A builder purchases several vacant lots in an established residential subdivision. The builder constructs houses w/o having secured a buyer in advance of the construction of each home and advertises them for sale to prospective buyers. This is which type of residential construction?
Spec Building
49
What is exempt from Real Estate licensure under Chapter 475?
1. Straight Salary
2. A person who sells cemetery lots for a commission
3. Court jurisdiction.
4. Renting of a mobil home lot in a mobil home park
50
Other exemptions from licensure include
1. For Sale by Owner
2. Owner of a Timeshare period who offers the property for resale.
3. A leasing agent of an apt. complex if they are salaried, work in an onsite rental office and work in a leasing capacity.
4. A manager of a condo and Co-op if employed for a salary and rent is for periods no greater than 1 yr.
5. An Attorney-in-Fact (Power of Attorney)
6. An Attorney-at-Law when acting in the scope of his or her duties as an attorney. Not receiving any compensation for a sale.
7. A decedent (personal representative) when appointed by the court.
8. A person selling entities licensed by the FCC (radio, TV or cable enterprises)
9. A person selling personal property.
51
A farmer is appointed by the court to appraise the farm land of a deceased neighbor. The farmer will be paid a $3000 fee for the appraisal. Is he exempt from Chapter 475?
Yes because he was appointed by the courts.
52
A sales assoc employs an unlicensed assistant. The licensee prepares a fact sheet for all of her listings. The sales assoc instructs her assistant to drive a prospective purchaser by several listed properties. When questioned about a particular property, the assistant reads information from the fact sheet. The prospect decides to buy after the assistant showed her the interior of the last property. Have one or the other or both violated Chapter 475?
Both violated the license law when the assistant entered the property to show it.
53
Under FREC rules, a Fla resident is a person who has
resided in Fla for at least 4 mos within the preceding year.
54
Tom intends to make application to become a Fla real estate sales associate. He must have a Social Security number, a high school diploma, be over 18, and be competent to negotiate. What is not required?
To be a US Citizen
55
Mary has a 4 year degree in real estate. Mary must still attend the pre-licensing course and post-licensing education. What class is she exempt from?
Continuing Education
56
If a Florida licensee becomes a non-resident of Florida, he or she must
notify the BPR within 10 days and file an "irrevocable consent to service" within 60 days
57
If a real estate licensee moves to Florida from another state and wants to obtain a Fla Sales Assoc license based on Mutual Recognition, the licensee must
complete the 63-hour sales assoc pre-licensing course and pass the Fla license exam.
58
To obtain a broker's license, the applicant must have
1. Satisfactorily completed the 72 hr broker course.
| 2. been an Active Sales Assoc for at least 24 months.
59
What information is required to be disclosed on an application for RE licensure?
1. If you've ever been convicted of a crime.
2. Entered a plea of nolo contendere, regardless of adjudicaton.
3. Any violation of the law (except traffic violations, speeding tickets, etc)
60
What does NOT have to be disclosed on an application for RE licensure?
Personal Bankruptcy
61
If a developer owns 3 subdivisions in the names of 3 different entities. A sales assoc or broker assoc may be employed by the owner-developer on a commission basis to sell lots in the 3 subdivisions if the assoc is issued what type of license?
A Group License
62
To be a broker for several real estate brokerage companies, you must be issued what type of license?
Multiple Broker licenses (one for each company)
63
If a real estate licensee fails to renew her license at the end of the biennial renewal period, what will happen to the license?
It reverts to an involuntary inactive status
64
If Mary's initial license was issue on Feb 6, 2011, what is the expiration date on her license?
September 30, 2012. (Licenses are renewed on March 31 and September 30 every year)
65
If a RE licensee becomes a member of the US Armed Forces and is not engaged in the practice of RE in the private sector, what is the status of his license?
It is kept in good standing while he is on active duty and for a period of 6 mos after his discharge from active duty.
66
What happens if a licensee changes last name or mailing address?
Must notify BPR within 10 days of the change
67
If a real estate broker's license is suspended for 6 mos for a violation of license law, the licenses of the sales assoc registered with the broker with become what?
Involuntary Inactive
68
Which power gives the Fla Real Estate Commission (FREC) the authority to regulate and enforce real estate license law?
The Executive Power
69
What is the BPR?
Dept of Business and Professional Regulation
70
Who is the Secretary of the BPR appointed by?
Appointed by the Governor and confirmed by the Senate
71
What is the purpose of Laws?
To protect the public
72
What is the DRE?
The Division of Real Estate
73
Who is the Director of the DRE appointed by?
The DRE is a division within the BPR. The Director is appointed by the Secretary of the BPR and subject to approval by the Commission
74
What is FREC?
Florida Real Estate Commission
75
What are the primary powers and duties of FREC?
Adopt Rules and Discipline Licensees who violate chapter 475.
76
How many members does FREC consist of?
7 members:
4 must be brokers who have held a license for 5 years.
1 must be a broker assoc or sales assoc who has held a license for 2 years.
2 must be lay members who have never held a license.
At least 1 member must be 60 years old.
77
Who are the members of FREC appointed by?
Appointed by the Governor and confirmed by the Senate
78
Are FREC members salaried employees of the BPR?
No. they are compensated $50/day when on official business
79
FREC's Quasi Legislative Power does what?
Adopts Rules
80
FREC's Quasi Judicial Power does what?
DSRF - Deny, Suspend, Revoke and Fine ($5000) licensees
81
If FREC advertises a public hearing to consider a rule change, who can go?
Anyone effected by the change but NOT the general public.
82
Can FREC impose Administrative penalties?
Yes
83
Can FREC impose Criminal penalties?
No. they must be reported to the state attorney's office.
84
Can FREC impose Civil penalties?
No. they must be imposed by a Court of Equity. These include financial damages to a plaintiff, injuries or the return of a real estate commission
85
Can FREC order a licensee to make restitution when damaging the public?
No. that would be a Civil penalty and must be imposed by a Court of Equity.
86
What does the FREC handbook contain?
1. Chapter 475
2. Rules of the Commission
3. Other laws applicable to the RE profession
87
What are the 3 forms of brokerage relationships?
1. Single Agency
2. Transaction Agency
3. No Brokerage
88
What is FLOC?
F - Full Disclosure
L - Loyalty
O - Obediance
C - Confidentiality
89
When do you have to disclose to someone if your are going to be a Single Agent, No Brokerage or Transactional Agent?
Not a first contact
90
If someone wants limited representation of a real estate broker but doesn't want to be legally liable for the acts of the licensee, what type of brokerage relationship should be chosen?
Transaction Broker (Non fiduciary)
91
In a Single Agent Relationship, does the broker represent both the buyer and the seller?
No. An SA only represents either the buyer OR the seller (fiduciary)
92
Duties of "No Brokerage" are
1. Honest and Fair Dealing
2. Facts Affecting Value (material)
3. Accounting for Funds
93
Duties of "Transactional Brokerage" are
1. Honest and Fair
2. Facts Affecting Value
3. Accounting for funds
4. Skill, Care and Diligence
5. Present all offers
6. Limited Confidentiality (neutral)
7. Any additional Duties
94
Duties of "Single Agent" are
1. Honest and Fair
2. Facts Affecting Value
3. Accounting for funds
4. Skill, Care and Diligence
5. Present all offers
6. Limited Confidentiality (neutral)
7. Any additional Duties
8. FLOC (full disclosure, loyalty, obediance, confidentiality)
95
Do Transactional Brokers have Principles or Clients?
No. They have Prospects or Customers
96
What does Caveat Emptor mean?
Let the Buyer Beware. Usually applied to transactions where the parties have conflicting interests. This does NOT apply to a Single Agency relationship.
97
Is Full Disclosure required of a Transactional Broker?
No.
98
In a No Brokerage or Single Agent relationship, written disclosure applies to whom?
Single Family Residential. Includes:
1. 1-4 units
2. Vacant land zoned for 1-4 units
3. Agricultural land of 10 or less acres
4. Lease-option to purchase 1-4 residential units
99
Ace Realty is representing the seller and the buyer as transaction broker. Assoc Henry tells the prospective buyer that he believes the seller would accept $10,000 less than the $200,000 list price. Which duty has Assoc Henry violated?
Limited Confidentiality
100
An offer of $200,000 on a contract for purchase and sale has been accepted by the seller. Subsequent offers can what?
Be submitted until closing when the title is transferred.
101
A Sales Assoc shows a property which the brokerage firm has listed for sale to a prospective buyer. The sales associate is considered what to the broker?
A general agent of the broker
102
When is a single agent brokerage relationship terminated?
1. Death of Principle agent
2. Insanity of Principle agent
3. Bankruptcy of Principle agent
4. Destruction of the subject property (bldg destroyed)
5. Fulfillment of the object of the employment
103
How many years must disclosure documents be retained?
5
104
A Real Estate broker may sign a contract on behalf of a party to a transaction when he or she is an
Attorney-in-fact
105
What are the 3 types of Agents?
1. Universal Agent - Assigned by the Principle to perform all acts that the principle can
2. General Agent - Employed to handle all the affairs in a business such as a Sales Assoc or Property Manager.
3. Special Agent - Limited to finding prospects, showing the property and negotiating on behalf of the principle.
106
Who may the sales assoc accept deposits in the name of?
The Broker only (always)
107
A sales assoc is listing a property for sale. He learns there is a lien on the property. What should he do?
Advise all prospective buyers of the lien before they submit an offer.
108
A RE broker's client asks the broker to order a title insurance policy while the client is out of town. The broker orders a policy and the title company offers the broker a paid trip to the Bahamas. What should the broker do?
The broker must fully disclose the facts pertaining to the arrangement to the client. (Because this is a single agency. Hints the word "client")
109
Can a sales assoc be a general partner in a brokerage partnership?
No
110
Which ownership (business) entities can NOT register with BPR as a Real Estate broker?
1. Corporation Sole (meaning one. Like a religious organization)
2. Business Trust (REIT - Real Estate Investment Trust)
3. Co-op Assn.
4. Unincorporated Assn.
111
Which ownership entities ARE permitted to broker real estate?
1. Sole proprietorship
2. Corporations (for profit)
3. Partnerships (limited and general)
4. Limited Liability Company (LLC)
5. Limited Liability Partnership (LLP)
6. Corporations (not for profit)
112
When does a broker have to have money in escrow?
3 business days following receipt
113
A sales assoc wants to move into his own office at a location other than the broker's place of business. He is willing to pay all expenses associated with his own office and will continue to be supervised by the broker. Is this allowed?
Only if the Sales Assoc works out of an office registered in the name of the broker.
114
Can a branch office be in a temporary shelter?
Only if the business records are kept there and here are sales associates assigned to that office. Otherwise, no.
115
Release Clause
Blanket Mortgage
116
Are kickbacks and Rebates allowed to a licensee?
No. They are a violation of chapter 475 UNLESS the licensee has fully advised the principal and all affected parties. Must be upfront.
117
What are the 3 principal parts of a Corporation?
1. Stockholders - owners (a sales assoc may be a stockholder but NOT an officer or director)
2. Directors - must be registered and licensed as a broker or be an unlicensed person altogether.
3. Officers - must be registered and licensed as a broker or be an unlicensed person altogether.
118
Can a Corporation do a BARSALE?
No. Only Broker Corporation's can.
119
Is a corporation a separate legal entity from the owners of the business?
Yes. A corporation is an artificial person created by law. Owners have limited liability.
120
How is a corporation "born"?
The Secretary of State charter the corporation and issues a Certificate of Incorporation (like a birth certificate)
121
What is a foreign corporation?
Any corporation operating outside of Florida. They may petition the Sec of State for authorization to do business in Florida.
122
What happens if an active broker fails to renew his license at the end of a biennial period?
His license, and all sales assoc, will be cancelled. All sales assoc will automatically go into Involuntary Inactive status.
123
If there is only one active broker in an office and he/she dies, resigns or is removed, the vacancy must be filled within how many days?
14 calendar (not business) days.
124
What is a General Partnership?
Where there are two or more persons who agree to engage in a business and agree to share in in the profits and losses.
125
A broker-Realtor is a sole proprietor. He wants to use a trade name to identify his real estate brokerage business. what is the minimum requirement on the entrance sign?
Trade name, his name and the words "licensed real estate broker".
126
What type of partnership is it when the public is deceived into believing that a partnership exists?
Ostensible Partnership
127
Can two or more brokers, that are NOT partners, share an office?
Yes. As long as each broker makes his/her true status or capacity clear with
1. signs on the door in each brokers name/business name.
2. telephone listings
3. advertising
4. representations
128
Name the 3 types of partnerships
1. General - they run the business and are liable for everything
2. Limited - They invest dollars into the business only. They are NOT liable. They may or may not be an active sales assoc or broker assoc.
3. Ostensible - public is deceived into thinking that a partnership exists
129
Can a limited partner participate in the management decisions of the partnership?
No.
130
Mortgagee
Bank ("ee" receives)
131
Mortgagor
Borrower ("or" gives)
132
Exculpatory Clause
No fault clause. Part of the Limited Partnership.
133
What always has to be in an ad or on any type of marketing for a RE agency?
The NAME of the agency ie. Coldwell Banker The Amelia Group
134
What does a sales assoc have to put in his/her ad for one of her listings?
1. The name of the RE agency, 2. Her last name (first can be there but last HAS to be there), 3. Her phone number
135
Can a Corporation Sole broker real estate?
No. Corporation Sole is associated with church organization. The power of a corporation sole descends to the successor in office.
136
A business trust is created by filing what?
A Declaration of Trust with the Sec of State.
137
What is a business trust?
A common law trust. REIT - Real Estate Investment Trust
138
The main office of a broker has to have what 2 things?
1. at least one enclosed room, 2. a building of stationary construction (applies to branch offices also)
139
If a real estate broker uses a title company to hold an escrow deposit, how many days after the deposit is due under contract does he have to get written verification of receipt?
10 business days.
140
How does a brokerage office entrance sign have to read?
1. Trade Name first (such as Coldwell Banker the Amelia Group), 2. Name of the broker, 3. The words "Licensed Real Estate Broker"
141
If a broker relocates a branch office, does the new location have to be registered and licensed as a new branch office (as though the other location had not existed)?
Yes. A branch office license may not be transferred.
142
What is it called if the name of the brokerage firm is NOT included in an advertisement?
A Blind ad
143
What is the dollar amount that a broker must report to the IRS if a cash deposit exceeds it?
$10,000
144
If a sales assoc receives a deposit on Friday at 9pm and Monday is a legal holiday, when must he/she deliver the deposit to the broker?
Tuesday (always by the end of the next business day)
145
Is a post-dated check and promissory note the same?
Yes
146
Do you have to disclose a promissory note or post-dated check to the seller?
Yes, immediately.
147
If a sales assoc receives an offer with an earnest money deposit on Friday and delivers the deposit to the broker that afternoon, when is the latest that the broker can place the deposit in escrow?
3 business days after receipt of check
148
How long must brokerage business records be preserved or kept?
5 years
149
If a broker receives conflicting demands from the buyer and seller for the earnest money deposit and cannot resolve the issue between the parties, what 3 things must he do?
1. Notify FREC within 15 business days after the last party's demand
2. Maintain the money in escrow until all is settled.
3. Institute one of the settlement procedures within 30 business days after the last demand. example: If the broker notified FREC of the conflict 10 business days after the last party's demand, then he will have 20 business days to implement a procedure. If he notified FREC 15 days after the last party's demand, then he would have 15 days to implement a procedure
150
When are you exempt to notify FREC concerning a disputed deposit held in escrow?
If the buyer gives a written notice of cancellation of a contract within:
1. 15 calendar days if NEW
2. 10 calendar days if TIMESHARE
3. 3 business days if RESALE
151
What are the 4 settlement procedures regarding a deposit dispute?
1. Mediation - 3rd party recommends a Non-binding solution.
2. Arbitration - 3rd party makes a Binding determination
3. Litigation - file a bill of Interpleader. The broker relinquishes any claim on the deposit and gives it to a court
4. Escrow Disbursement Order (EDO) - request that FREC determine who is entitled to the escrowed property
152
Once a deposit dispute is settled by mediation or arbitration, how many days does the broker have to notify FREC of the outcome?
10 business days
153
What is conversion?
The failure to account and deliver any deposit, document, thing of value, or commission to the person entitled to receive them.
154
Can a licensee furnish someone a Rental Property list for a fee?
Yes, provided there is a written contract or receipt agreement with provisions for a refund made clear in the agreement.
155
What if rental information provided to someone by a licensee under a contract is NOT current or accurate?
They may demand within 30 days of the contract a return of their full paid fee. If they do NOT obtain a rental, then they are entitled to 75% of the fee paid. Example: the rental info was purchased on July 1st, then the demand for a refund has to happen by the 31st to receive a refund.
156
What happens if there is a violation of the rental information for a fee law?
1. 1st degree misdemeanor
2. $1000 fine
3. 1 year in jail
157
When hours can telemarketers call a residence?
between 8am and 9pm
158
How much can a telemarketing violator be fined for each illegal call?
$16,000
159
What are the two exceptions for "Do Not Call"?
1. Telemarketers (Realtors also) can call up to 3 mos after a business inquiry has been made
2. Telemarketers (Realtors also) can call up to 18 mos after a business transaction has concluded
160
Who is the Florida "Do Not Call" list administered by?
Dept of Agriculture and Consumer Services
161
Which is more severe, revocation or suspension?
Revocation
162
If an Associate makes a promise to her broker's principal in good faith and later finds that she cannot keep the promise, has the Associate violated any laws?
No
163
What are the 4 types of Administration discipline penalties of "FREC May"?
1. Deny
2. Suspend (not exceeding 10 yrs)
3. Revoke
4. Fine
164
If an Assoc is convicted of a crime of moral turpitude and the court withholds adjudication, what can FREC do to them?
1. Revoke/suspend their license up to 10 years
| 2. Fine up to $5000
165
Under chapter 475, what is a felony of the third degree?
A person operating without holding a valid and current license with an active status.
166
What are the 6 Grounds of Revocation?
1. License by fraud - 3rd degree felony. $5000 fine or 5 years in jail or both
2. License by mistake
3. Obstruct justice by bribe
4. jail, mental institution
5. sell timeshare without an license
6. sell timeshare without full disclosure
167
What are the 3 criminal penalties?
1. Violating Chapter 475 - 2nd degree misdemeanor. $500 fine or 60 days in jail or both.
2. Rental information for a fee - 1st degree misdemeanor. $1000 fine or 1 year in jail or both.
3. Operating as a broker or sales assoc without a valid and current active license - 3rd degree felony. $5000 fine or 5 years in jail or both.
168
What are the 5 administrative actions the BPR may take against licensees
1. Issue a notice of non-compliance or warning - A licensee has 15 days to take corrective action. Minor violation.
2. Issue a citation - licensee has 30 days to pay or file an objection. May also have to complete an educational course.
3. File an Informal complaint - Must be in writing, signed by the complainant, and legally sufficient (contain alleged facts)
4. Issue an emergency suspension - licensed
5. Issue a notice to cease and desist - unlicensed
169
What are the 8 steps in an Administrative Proceeding?
1. Informal Complaint - an allegation that ANYONE can file
2. Investigation - by BPR
3. Probable Cause - determined by Probable Cause Panel
4. Formal Complaint - filed by the state, BPR and FREC
5. Formal Hearing - before a judge
6. Informal Hearing - before FREC
7. Final Order - by FREC
8. Appeal - to court of appeals
170
What is stipulation?
When two attorney's come to an AGREEMENT as to the penalty to be imposed for the violation
171
If an inactive sales assoc renews her license before the expiration date but did not complete her continuing education prior to the expiration date and the BPR finds out, what can happen to her?
She will most likely have her license revoked and not be allowed to reapply for a license for 5 years.
172
If a sales associate has had his license revoked by FREC but is appealing and wants to continue practicing RE during the appeal process, can he do so?
Yes. He can continue to practice if a stay of enforcement is ordered. Supercedeas.
173
What are the 3 "FREC musts" when dealing with a Final Order of the Court
1. FREC must inform the Division of Fla Land Sales, Condominiums and Mobil Homes of any disciplinary actions against a licensee.
2. FREC must turn any criminal stuff into the State Attorney
3. If another state agency disciplines a licensee, FREC must issue a notice to that licensee to show cause why it should not take action also.
174
What is the Real Estate Recovery Fund used for?
Compensatory Damages. To reimburse a person who has suffered monetary damages as a result of an act of a real estate licensee who violated chapter 475
175
In the Real Estate Recovery Fund, how much is the payment for claims out of a Single Transaction?
$50,000
176
In the Real Estate Recovery Fund, how much is the payment for claims out of Multiple Transactions?
may not exceed $150,000
177
Racial discrimination in the sale or rental of real property is prohibited by what Act?
The Civil Rights Act of 1866
178
The federal Fair Housing Act (applies to Housing only) of 1968 prohibits discrimination based on what 7 things?
1. Religious affiliation
2. sex
3. national origin
4. color
5. race
6. familial status
7. handicap status
179
Is it true that the Civil Rights Act of 1866 supercedes all other laws relative to racial issues?
Yes
180
Who prepares the Equal Opportunity poster?
HUD
181
Is it a violation of law if the poster is not displayed by brokerage firms?
Yes. Failure to display the poster may be considered discrimination.
182
What are the exemptions under the Fair Housing Act?
1. Religious Organizations
2. Private Clubs
3. Any single-family house sold or rented by its owner (provided the owner doesn't own more than 3 houses)
4. 2-4 family housing if the owner occupies one of the dwelling units as a residence
5. Commercial Real Estate (it's not a house)
183
According the Fair Housing Act, what are the 3 unlawful practices?
1. Steering - steering people to a neighborhood based on race
2. Blockbusting - persuading existing owners to sell
3. Redline - lenders who refuse to make a loan in certain areas or subdivisions
184
Which law or regulation requires the disclosure of the annual percentage rate and finance charge?
Regulation Z
185
The Truth in Lending Act (TILA) requires lenders to give the Truth in Lending statement within how many business days after the receipt of a written loan application?
3
186
The Truth in Lending Act (TILA) gives consumers the right to rescind the loan agreement within how many business days after the receipt of the Truth in Lending Statement (disclosures)?
3
187
Under Regulation Z, what 3 things does the right to cancel a loan agreement within 3 business days apply to?
1. A home equity line of credit
2. a cash-out refinance transaction
3. a second mortgage on a primary residence ***(does NOT apply to first mortgage loans)
188
If a "trigger term" is used in an advertisement, the lender must disclose ALL of what 3 things?
1. amount or percent down payment
2. the terms of the loan
3. the Annual percentage rate
189
What is a "trigger term"?
Example: Just 3% downpayment. Interest rate only 6%. Only $1000 downpayment
190
Is APR (annual percentage rate) a "trigger term"?
No
191
Discrimination against a credit applicant on the basis of age is prohibited by what Act?
The Equal Credit Opportunity Act
192
Which Act requires that buyers be informed with a good faith estimate of their probable closing costs within 3 business days of a written loan application?
RESPA - Real Estate Settlement Procedures Act
193
Under RESPA, the borrower is entitled to see which document 1 business day before the actual closing?
HUD-1
194
The Uniform Settlement Statement is required by which law?
RESPA
195
Which Act lets a landlord commingle the deposits if he/she posts a surety bond and pays the tenant 5% interest per year and places the money in a separate interest bearing acct?
Florida Residential Landlord and Tenant Act
196
If a Landlord collects security deposits and advance rent, what 3 things MAY he do with the money?
1. Hold the money in a separate NON-interest bearing Fla bank and not commingle the funds with his own
2. Hold the money in a separate interest bearing acct and pay the tenant at least 75% of the interest rate earned or interest at the rate of 5% per year and NOT commingle funds
3. Post a Surety Bond with the clerk of courts in the total amount of deposits and advance rents and pay the tenant 5% interest and commingle the deposits with his own money.
197
If a Broker collects and holds tenants deposits for a property owner, can he/she deposit them in their own escrow acct?
Yes as long as they keep a record of tenant payments.
198
When a tenant vacates or ends a lease, the landlord has how many days to return the security deposit?
15 days to return the deposit and 30 days to notifiy the tenant if he/she intends to impose a claim on the deposit.
199
If evicted, how many days does a tenant have to vacate for non-payment of rent
3 days for nonpayment of rent. 7 days to vacate for all other breaches (parties, etc)
200
If John sells his farm land and retains the oil rights, what type of property right is he retaining?
Subsurface
