Real Estate Exam 1,009 Q&A #201-400 Flashcards
What type of rights apply to above-ground space?
Air Rights
What type of rights apply to land and water rights?
Surface rights
If Mary purchases a home on a riverfront lot. What type of ownership right does she have?
Riparian rights
What is the difference between Riparian Rights and Littoral Rights?
Riparian = River. Littoral = Lake
The gradual build-up of land along a shoreline, caused by natural forces is called what?
accretion (adds)
Jim owns a lot on a lake. There is a gradual receding of the waterline increasing the land area. The property right is called what?
Reliction
the gradual increase of land by water such as silt and sand on a riverbank is called what?
Alluvion
What is the gradual loss of land along a shoreline, riverbank or stream?
erosion (erases)
Personal property that can be moved around is called what?
chattel. ie draperies, area rugs, countertop microwaves, etc.
An item that was once personal property but is now legally considered to be real property (can’t be moved) is called what?
A Real Fixture. It has become affixed, attached, built-in or installed to the home. ie built-in appliances, plumbing fixtures
What does DUPE stand for?
D = Disposition or Owner U = Use P = Possession E = Exclusion
Estate means the same things as what?
Tenancies
What are the 6 types of Estates?
- Freehold - estate of ownership
- Leasehold - estate of non-ownership (lease)
- Fee Simple - most common. Inheritable. Largest bundle of rights.
- Life - estate for the life of the owner
- Reversion - reverts back to the grantor
- Remainder - when a life estate ends the property goes to the remainderman
Tom owned a rental property prior to his marriage to Betty. He has a son by previous marriage. Tom leaves a will stating that, upon his death, Betty is to own the property as long as she lives and that upon her death Bobby is to receive the property. Tom dies. What estate to Betty inherit?
A Life Estate
Adam owns a home in fee simple. He executes a deed conveying the title to Betty until she dies, and upon her death the ownership will be vested in Carol. Carol’s interest in the home is what type of estate?
Remainder Estate
What are the 3 types of Leasehold estates?
- Tenancy at Will
- Tenancy at Sufferance
- Estate (Tenancy) for Years
A month-to-month tenancy at will requires how many days notice to terminate?
15 days
A week-to-week tenancy at will requires how many days notice to terminate?
7 days
If a written lease expires and the tenant is unable to contact the owner prior to the expiration and remains in possession of the premises and continues to pay rent without renewing the lease agreement. What type of tenancy is the occupant establishing?
A tenancy at sufferance
2 sisters purchase an investment property. Each sister wants her interest in the property to go to her spouse in the event she dies during the ownership. To accomplish this, the sisters should own the property as what type of tenancy?
A tenancy in common
If ownership is by 2 or more persons and one of the owner dies, what type of tenancy would allow the surviving owners to receive the share of the deceased owner?
Joint tenancy. This MUST be in writing
If John and Mary own a property as tenants in common, can they have unequal shares?
Yes
If Al, Bill and Carol purchase a shopping center as joint tenants with right of survivorship. 5 years later, Carol sells her interest to Doris. One year later Doris dies. Who will receive doris’s interest in the property?
Doris’ Heirs
Regarding a homestead estate, which statement is TRUE?
A homestead estate:
A. allows the owner to avoid foreclosure of a mortgage secured by the home
B. Exempts the first $50,000 of assessed value from property taxation
C. Exempts the property from involuntary loss due to personal and business debts
D. Exempts up to 160 acres of land from forced sale for nonpayment of property taxes C. This estate protects the home from involuntary loss due to personal debts and business debts
True or False. The Homestead Estate does NOT exempt the home from forced sale for the nonpayment of real estate taxes, special assessments, mortgage liens or construction liens.
TRUE
How many acres within the city and outside of the city are exempt from judgement liens?
1/2 acre within and 160 acres outside
Under the Condominium Act, which document must be given to a prospective who is purchasing a condo from a developer of 20 or more new residential condominium units?
Prospectus
A proprietary lease is associated with what type of ownership
Cooperative
What are the 2 types of titles?
- Legal - deed
2. Equitable - ownership
What is voluntary alienation of title to real property?
Will
Dedication
Gift (dancing words)
conveyance
written deed (dancing words)
If a person dies intestate (no will) and no heirs can be found after a diligent search, the state of Fla acquires the title by what?
Escheat
What are the 2 types of Voluntary Alienation?
- Deed - an owner voluntarily signs a written document conveying his/her title
- Will - an owner voluntarily signs papers indicating who receives property upon his/her death
What are the 4 types of Involuntary Alienation?
- Descent - A person dies intestate (no will) but has heirs that the law will disperse the property to.
- Escheat - A person dies intestate (no will) with no heirs so the property goes to the state.
- Adverse Possession - when land is occupied continuously, openly, hostile, exclusively and notoriously for 7 years by another person. Squatter Rights.
- Eminent Domain - when an owners land is take for public use through a condemnation proceeding with payment to the owner
If a mortgage is recorded in the public records, what type of notice of legal interest in the property is given?
Constructive Notice
What is the usual form of Actual Notice of ownership?
Possession of the property
Encroachment
Survey (dancing words)
Which is NOT an encumbrance of title? A. a building on the site B. Deed restrictions C. Easement D. lease
A. A building on the site
What is a “Suit to Quiet” Title?
A suit to settle claims and establish a clear title
What is a “Quit Claim” Deed?
Clear Clouds
Which is NOT an essential requirement of a valid deed? A. delivery of the deed B. legal description in the deed C. signature of a competent grantee D. Signatures of 2 witnesses
C. Signature of a competent grantee
What are the 4 requirements for a valid deed?
- must be in writing
- witnessed by two people
- Signed by a competent Grantor
- Voluntarily delivered
Does a deed have to be notarized and recorded?
No
The date of execution is contained in which section of a deed?
Premises
Which clause in a warranty deed indicates the type and duration of estate being conveyed?
Habendum
What are the 4 types of deeds?
- General Warranty Deed
- Special Warranty Deed
- Bargain and Sale Deed
- Quitclaim Deed
A general warranty deed A. assures clear title B. contains a special warranty C. contains a warranty forever D. insures clear title
C. contains a warranty forever
True or False. The seizin clause in a warranty deed is a promise that the Grantor owns the property and has the right to convey the title
TRUE
If ABC Corp gives a warranty of title only against the acts of the grantor and its legal representatives, it is what kind of Deed? A. Corporate Warranty B. General Warranty C. representative D. Special Warranty
D. Special Warranty
Regarding a Quit Claim deed, which statement is false.
A. The deed contains no covenants or warranty in the title
B. The deed provides the grantor the best assurance of no future liability
C. The grantor may convey title by this type of deed if the contract does not specify a different instrument
D. The instrument is used primarily to remove clouds on a title
C. The grantor may convey title by this type of deed if the contract does not specify a different instrument
What are the 4 Government Restrictions on ownership?
PETE P = Police Power E = Eminent Domain T = Taxation E - Escheat
Which gives the government the right to restrict the use of privately owned land to protect the health, safety and welfare of the public? A. Eminent Domain B. Escheatment C. Police Power D. Restrictive Covenants
C. Police Power
If someone is considering purchasing a home in a particular subdivision and want to make sure they will be allowed to park their motorhome on the driveway, what document should they review? A. Deed Restriction B. Restrictive Covenants C. Subdivision Plat Map D. Zoning Ordinance
B. Restrictive Covenants
Sun City utility company has the right to install water mains across the rear 10 feet of a someone's property. The legal interest held by the company is a(n). A. easement B. encroachment C. Utility D. Water Right
A. easement
A tenant in an office building pays a fixed rent plus the property taxes, hazard insurance premium, and common area maintenance expenses. This is what type of lease? A. gross B. ground C. net D. percentage
C. net
A lease longer than ____ must be in writing and witnessed by 2 people?
1 year
Can a lease less than 1 year be oral or implied and not in writing?
Yes
Name the 5 types of leases?
- Gross lease - tenant pays a fixed rent and the landlord pays operating expenses.
- Net lease - the commercial tenant pays a fixed rent PLUS all or part of the operating expenses such as property taxes, hazard insurance, maintenance and utilities). Most common for office buildings.
- Percentage lease - the commercial tenant pays rent based on a percentage of the gross retail sales. Most common for shopping centers
- Variable lease - the tenant pays rent that will vary based on the Consumer Price Index (CPI)
- Ground lease - tenant leases land and pays the landlord for the use of the ground
Can a tenant be kicked out if the building is sold?
No. the security deposit and rent must be transferred to new owner.
What is a lien?
A claim against a property for a debt
What are the 2 types of liens?
- Voluntary - created with owners consent ie mortgage lien, vendor’s lien
- Involuntary - created w/o owners consent ie property tax lien, construction lien, judgment lien
Which is an example of a voluntary lien? A. construction B. special assessment C. mortgage D. tax certificate
C. mortgage
A Vendor's lien is an example of A. general lien B. involuntary lien C. lien against the purchaser D. specific lien
D. Specific lien - affects only the specific property
What is opposite of North 9 degrees East?
South 9 degrees West
Which parcel of land contains exactly 4 acres? A. 330' x 396' B. 330' x 462' C. 400 x 4.356' D. 528' x 330'
D. (528 x 330 = 174,240 divided by 43,560 = 4)
Starting at the SE corner of a section thence West 660 ft to a point, thence North 330 ft to a point, thence East 660 ft to a point and thence to the point of beginning. This tract contains how many acres? A. 2 B. 3 C. 4 D. 5
D. (208.71 + 208.71 + 208.71 + 208.71 = 834.84)
Before Tax Cash Flow is what?
net operating income minus debt service
Current market value less mortgage debt describes what term?
equity
Which is NOT a benefit of investing in real estate?
A. depreciation allowance that reduces taxable income
B. hedge against inflation
C. liquidity
D. positive leverage
C. liquidity
Which type of risk is associated with the loss of purchasing power due to an unexpected increase in inflation? A. business B. interest rate C. liquidity D. purchasing power
D. purchasing power
Positive Leverage
A. increases the return on equity from using debt financing
B. is selling an investment property at a profit
C. is the difference between a high interest rate and a lower interest rate
D. is the difference between a high rate of return on RE and a lower return on other types of investments
A. increases the return on equity from using debt financing
The use of leverage
A. has no effect on the yield on investment
B. may increase or decrease the yield on investment
C. Will decrease the yield on investment
D. will increase the yield on investment
B. MAY increase or decrease the yield on investment
Regarding the RE market, which statement is TRUE?
A. Govt regulations have little influence on the market
B. The market is influenced by the immobility of RE
C. the market is not influenced by the physical characteristics of land
D. The market is quick to respond to changes in supply and demand
B. The market is influenced by the immobility of RE
Regarding the RE market, which statement is FALSE? The market is
A. Influence by the immobility of land
B. regulated by FREC and the DBPR
C. segmented into submarkets
D. slow to adjust to changes in supply and demand
B. regulated by FREC and the DBPR
The price of RE increases. Which will likely occur? A. RE rental rates will increase B. RE sales will not be affected. C. The demand for RE will increase D. The interest rate will decrease
A. RE rental rates will increase
Which variable influences the supply of new real estate?
A. availability and cost of construction financing
B. income of consumers
C. mortgage credit
D. population
A. availability and cost of construction financing
There is an excess supply of housing in a RE market. The area can best be described as A. builder's market B. buyer's market C. broker's market D. seller's market
B. buyers market
The planning commission does NOT have delegated final authority for A. sign control B. site plan approval C. subdivision plan approval D. zoning variances
D. zoning variances
Which would be classified as a service industry? A. branch office or credit union B. coffee roasting plant C. computer manufacturing plant D. military base
A. branch office or credit union
A paper mill that is a major employer of a particular place is an example of what type of industry? Base industry (they bring people to an area while the service industry serves them once they get there)
Zoning Ordinances
A. are adopted by the state legislature
B. regulate building construction
C. regulate land development
D. segment the community into districts based on land use
D. segment the community into districts based on land use
Zoning regulations require a 15' setback for all building structures that front Captital St. There are no other setback requirements. A particular lot on Capital St. is 190' x 190'. What are the dimensions of the lot on which a building may be constructed? A. 175' x 175' B. 175' x 190' C. 190' x 175' D. 190' x 190'
C. 190’ x 175’
In residential areas, the primary aim of the different zoning districts is to regulate A. density B. developers C. height of improvements D. highest and best use of the land
A. density
A provision in a zoning ordinance creates an undue hardship on a property owner. The owner did not cause the hardship. The Zoning Board of Adjustment is authorized to A. Amend that provision of the ordinance B. classify this as a nonconforming use C. grant a special exception D. issue a variance
D. issue a variance
A lot has a 15’ setback requirement. The owner wants to add a 1000 sq ft addition to her home. To do this, the new home will need to extend 2 ft into the setvack area. Mary needs to apply for what?
A variance
A small retail store was constructed, years ago, on property zoned for agriculture use. The area has since been re-zoned to a single-family residential land use. Which statement applies to the store now? A. illegal use B. nonconforming use C. special exception D. variance
B. nonconforming use
Which is NOT used by local govt to enforce compliance w/the Fla Building code?
A. issuance of building permit
B. periodic building inspections
C. review and approval of architectural plans and engineering drawings
D. zoning ordinances
D. zoning ordinances
After completion of the construction of a subdivision, the streets, sidewalks and common areas are frequently conveyed to the city or county in a process called?
Dedication
A contractor who builds on his or her own lot in the hope of finding a purchaser upon completion is building on?
Speculative Building
A mortgage broker
a. Is the same as a mortgage banker
b. Must have a separate license
c. Originates loans
d. Must have a real estate license
b. Must have a separate license
Concentrating on one neighborhood or style of property is:
a. A waste of time
b. A practice called farming
c. Required by most brokers
d. Illegal
b. A practice called farming
An attorney in fact
a. must be a member of the Florida Bar.
b. may be paid a commission for services of real estate.
c. is authorized by a power of attorney to act for another.
d. is required to hold an active real estate license.
c. is authorized by a power of attorney to act for another.
The three areas of expertise real estate licensees bring to the transaction relate to ______________, ______________, and ______________ ______________.
Marketing, Valuation and Property Transfer
The composite value of the real property and personal property, plus the intangible assets of a business is called ______________ ______________ value.
Going Concern Value
Real estate brokers are NOT required to be knowledgeable regarding?
Accounting
The service provided by real estate brokers that is considered to require the most experience and knowledge is?
Counseling
A sales associate’s license will be __________ if he or she does not complete required postlicense education during his or her initial license period.
Void
A broker associate acts in the capacity of a ___________.
Sales Associate
Upon passage of the state examination, an applicant for a sales associate’s license will receive an ________ license.
Inactive License
Florida does not reciprocate with other states, but does have _________ _________ with some states that have educational requirements that are similar.
Mutual Recognition
The postlicense educational course for sales associates consists of _____ hours.
45 Hours
Owner-employers are _______ but do not receive a license.
Registered
__________ _________ education must be completed during the initial sales associate’s license period.
Post License
A sales associate failed to complete the required postlicense education prior to renewal. What is the status of his license?
Void
A sales associate failed to complete the required postlicense education prior to renewal. What is the status of the license?
a. revoked
b. suspended
c. involuntarily inactive
d. void
d. Void
To qualify for a Florida Real Estate license, an applicant must:
a. be a citizen of the United States.
b. be a Florida resident
c. be at least 21 years of age
d. have a high school education or equivalent
d. have a high school education or equivalent
A contractor who builds on his or her own lot in the hope of finding a purchaser upon completion is building on what?
Speculative Building
Property management has grown as a service of real estate primarily because of an increase in what?
Absentee Ownership
An estimate of the value of property developed by a real estate licensee for use in listing or selling property is known as?
Comparative Market Analysis
The category of construction that applies when a property owner employs a contractor to build on his or her own lot is called?
Custom Building
A mortgage broker
a. Is the same as a mortgage banker
b. Must have a separate license
c. Originates loans
d. Must have a real estate license
b. Must have a separate license
A real estate appraiser’s fee for professional service is based on:
The time and difficulty of the appraisal.
A real estate appraiser’s fee for professional service is based on:
a. A percentage of the property’s gross income
b. A percentage of the fair market value of the property
c. The time and difficulty of the appraisal
d. A percentage of the property’s sales price
c. The time and difficulty of the appraisal
A developer contracts to build a home on a buyer’s lot to the buyer’s specifications. This is an example of which type of building?
a. Tract
b. Custom
c. Speculative
d. Subdivision
b. Custom
The continuing education requirement consists of how many hours?
14 hours
Florida real estate sales associates that desire to become brokers must wait how many years before taking the state examination?
2 years
An appraisal is what?
An estimate of value
An attorney in fact:
a. must be a member of the Florida Bar.
b. may be paid a commission for services of real estate.
c. is authorized by a power of attorney to act for another.
d. is required to hold an active real estate license.
c. is authorized by a power of attorney to act for another.
How many hours of postlicense education are required to renew a broker's license? a 14 b 30 c 45 d 60
d 60
To qualify for a real estate broker’s license, an applicant must have been employed for a minimum of:
a. 6 months under one actively licensed broker.
b. 24 months under one actively licensed broker.
c. 24 months under one or more actively licensed brokers.
d. 6 months under one or more actively licensed brokers.
b. 24 months under one actively licensed broker.
Which choice describes an exemption from the licensing requirements of Florida
Statute 475?
a. partners in real estate partnerships that receive compensation in excess of their interest in the partnership for performance of real estate services on behalf of the partnerships
b. condominium managers paid on a commission basis for rentals of less than 1 year
c. appraisers certified under Florida Statute 475, Part II, when performing brokerage services
d. attorneys performing legal duties in connection with a real estate transaction
d. attorneys performing legal duties in connection with a real estate transaction
The agreement the state of Florida has with some other states that recognizes the
similarity in education and experience required of licensees is called:
a. reciprocity.
b. mutual recognition.
c. cooperative licensure.
d. intrastate licensing.
b. mutual recognition.
A plumber has been appointed by a court to appraise a small business. The plumber
is:
a. in violation of F.S. 475.
b. is allowed to charge a commission.
c. may do so and be paid a fee.
d. must first be licensed under F.S. 475, Part II.
c. may do so and be paid a fee.
May do so because he is APPOINTED BY A COURT
A Georgia auctioneer was asked by a local real estate broker to auction a small motel
in Jacksonville. The auction did not result in a sale. The Florida broker paid the auctioneer for out-of-pocket expenses, but did not pay a commission. It would be correct to say that the:
a. Georgia auctioneer violated the license law.
b. Florida broker did not violate the license law.
c. Florida broker is not subject to discipline by the Florida Real Estate Commission.
d. Transaction is perfectly within the license law.
a. Georgia auctioneer violated the license law.
The Commission’s ability to impose disciplinary actions against licensees is known as what power?
Quasi-Judicial
The rule making authority of the FREC is called what power?
Quasi-Legislative
The FREC is composed how many members?
7
Members of the Florida Real Estate Commission may serve no more than how many consecutive terms?
2
Licensees that are members of the armed forces have all fees, dues and other requirements waived during their military service and for how many months after returning to civilian life?
6 months
The Department of Business and Professional Regulation does NOT have the authority to issue a/an:
a. cease and desist order.
b. subpoena.
c. injunction.
d. notice of noncompliance.
c. injunction
The maximum number of years a member may serve on the Florida Real Estate Commission is:
a. 4
b. 8
c. 12
d. unlimited
d. unlimited
A licensee that fails to renew when required to do so will have his or her license placed on?
Involuntary Inactive
The Division of Real Estate is an administrative part of the Department of:
a. State.
b. Commerce.
c. Banking.
d. Business and Professional Regulation.
Business and Professional Regulation
Examination questions and answers
a. are published in the Administrative Weekly before appearing in an examination.
b. may not be challenged.
c. may be reviewed .by any member of the public upon request.
d. are confidential.
d. are confidential
Which Department issues real estate licenses?
a. State
b. Business and Professional Regulation
c. Revenue
d. Real Estate
b. Business and Professional Regulation
Which information supplied by an applicant is public record?
a. financial information
b. test scores
c. name and address
d. medical information
c. name and address
The Florida Real Estate Commission held a meeting for the purpose of passing a new rule. This is an exercise of which Commission power?
a. executive
b. quasi-legislative
c. quasi-judicial
d. ministerial
b. quasi-legislative
What action may the Department take if it determines that an unlicensed person has operated in violation of a law or rule under its administration?
a. None, since the Department has no jurisdiction over unlicensed individuals.
b. It may issue an injunction prohibiting such activity in the future.
c. It may imprison the violator for up to 5 years.
d. An administrative fine of up to $5,000 may be imposed.
d. An administrative fine of up to $5,000 may be imposed.
A real estate license expires:
a. on the date shown on the license.
b. every 2 years.
c. on the effective date.
d. at the end of 1 year.
a. on the date shown on the license.
A sales associate failed to complete required postlicense education prior to expiration of the license period. What is the status of license?
a. active
b. voluntary inactive
c. involuntary inactive
d. null and void
d. null and void
A sales associate is employed by a broker Monday through Friday and for a builder on weekends. The sales associate feels the added experience is beneficial especially
since both employers pay an attractive commission split. Which statement is correct?
a. The sales associate must obtain a group license.
b. Multiple licenses are required in this situation.
c. This arrangement violates the license law.
d. This is permissible if both employers agree to the arrangement.
c. This arrangement violates the license law.
An agent that is empowered to perform a single act on behalf of his or her principal has a _______agency.
Special
A sales associate is a ________ of the broker’s principal.
Subagent
Before showing a property, allowing a buyer to sign an offer to buy, or a seller to sign a listing agreement, a licensee must provide the party with a written brokerage relationship form when acting in the capacity of ________ _______, _______ ________ relationship.
Single Agency, No Brokerage Relationship
A member of the public may select from one of three options when working with a broker, which are _________ _________ , _________ _________ and _________ _________ _________.
Single Agency, Transaction Broker and a No Brokerage Relationship
The Consent to Transition to Transaction Broker notice is required to be _____or _______ for transition to occur.
Initialed or Signed
If the principal refuses to sign or initial the Consent to Transition to Transaction Broker notice form, the broker is required to act as a ___________ _________.
Single Agent
The only brokerage relationship that includes fiduciary duties is the ______ ______.
Single Agency
A licensee assigned by a broker to act as a single agent of a buyer or seller in a nonresidential transaction is titled a?
Designated Sales Associate
Brokers in a nonresidential sale are not required to use?
Written Disclosures
A transaction broker
a. is an agent of both parties.
b. has fiduciary duties to the seller.
c. has fiduciary duties to the buyer.
d. provides limited representation to both parties.
d. provides limited representation to both parties.
Who owes fiduciary duties in an agency relationship?
a. the broker only
b. the principal only
c. both parties
d. neither party
a. the broker only
As an agent a broker is employed by and acts on behalf of a
a. buyer.
b. seller.
c. customer.
d. principal.
d. principal
Broker Tom sold a property listed with broker Alice. Tom was unable to attend the closing and broker Alice collected the entire commission. Should broker Alice refuse to pay broker Tom his share of the commission, broker Alice could be charged with:
a. failure to account.
b. collecting an overage.
c. commingling.
d. fraud.
a. failure to account.
Mary, an Ohio broker, accompanied a customer to Florida and met with broker Stan in his office in Jacksonville. While Stan showed the customer property and obtained a binding contract for the purchase of a condominium, Mary took some time off and went to the beach. On returning to Stan’s office, Mary discovered Stan had written a contract and demanded a share of the commission. Which statement is correct?
a. Stan may share the commission with Mary.
b. Mary violated the real estate license law by accompanying the customer to Florida.
c. If Stan pays Mary a share of the commission, Stan will be in violation of the license law.
d. If Stan pays Marya share of the commission, both Stan and Mary will be in violation of the license law.
a. Stan may share the commission with Mary. (As long as Mary doesn’t help out with the sale)
Which transaction is NOT included in the definition of a residential transaction?
a. unimproved property intended for four units or less.
b. agricultural properties of 10 acres or less.
c. leases with options to purchase all or a portion of improved property of four or less residential units.
d. dispositions of business interests involving property of five or more residential units.
d. dispositions of business interests involving property of five or more residential units.
Both parties in a transaction can pay a broker a commission when:
a. the broker has performed.
b. both parties are aware of the dual commission.
c. both parties are being represented by the broker.
d. both parties agree to the dual commission.
d. both parties agree to the dual commission.
A broker has appointed two sales associate to act as agents in a nonresidential transaction, one for the seller and one for the buyer. Which is correct?
a. This is an illegal dual agency.
b. The sales associates are referred to as designated sales associates.
c. Buyer and seller must have combined assets of $1 million.
d. The FREC will revoke the licenses of the broker and both sales associates.
b. The sales associates are referred to as designated sales associates.
Which relationship is NOT adversarial?
a. arm’s length
b. buyer beware
c. caveat emptor
d. fiduciary
d. fiduciary
Fairness and honesty are required of all licensees in which relationship?
a. single agency
b. transaction brokerage
c. no brokerage relationships
d. any real estate transaction
d. any real estate transaction
The signature or initials of a party is required by the Brokerage Relationship Disclosure Act on which form?
a. Single Agency Disclosure
b. Transaction Broker Disclosure
c. Consent to Transition to Transaction Broker
d. Important Information Disclosure
c. Consent to Transition to Transaction Broker
A broker
a. can refuse offers on behalf of the principal.
b. can buy the listed property without consent of the principal.
c. must follow all legal instructions of the principal or withdraw.
d. must ignore the instructions of a principal when the instructions are not in the best interests of the principal.
c. must follow all legal instructions of the principal or withdraw.
Sales associates can be stockholders in a brokerage corporation but may not be________ or _______?
Officers or Directors
Sales associates can be stockholders in a brokerage corporation but may not be
officers or directors.
A real estate brokerage corporation must have at least ______active broker serving as an _______.
One, Officer
Anyone licensed or not can be a _______ ________ in a real estate brokerage limited partnership.
limited partner
Two or more brokers that share office space but do not maintain their separate status as independent brokers could be charged as being ________ _________ .
ostensible partners
Sales associates and broker associates must report any change of employer or address change to the DBPR within ___ days on a form prescribed for such use.
10
For a broker to legally be paid a kickback or rebate, he or she must have performed a ________ held an appropriate _______, and all parties must be _______ of the payment.
service, license, advised
When a broker has conflicting demands for funds held in escrow, he or she must report such conflict to the FREC within ___ days.
15
Operating in a careless, reckless, excessively negligent manner may result in a broker being charged with _______ _______.
Culpable Negligence
A licensee should advise a customer to obtain an ______ or an _____ ______ ____ from an attorney whenever a question of title arises.
abstract, attorney’s title opinion
Six individuals decide to form a real estate brokerage partnership. All six individuals are planning to be active in real estate sales. Which best applies?
a. The partnership must be registered with the Commission, and all six partners must be active real estate brokers.
b. At least one partner must be licensed as an active broker.
c. Only two partners must have a real estate license.
d. A partnership cannot be formed as a brokerage business.
a. The partnership must be registered with the Commission, and all six partners must be active real estate brokers.
Which of the business forms listed below CANNOT register to conduct real estate transactions? a. corporation for profit b. corporation not for profit c. corporation sole d. limited partnership
c. corporation sole
A sales associate is licensed under an owner-developer that owns several affiliated organizations. Should the employer wish to have the sales associate provide real estate services for these various organizations, what type of license should the sales associate request?
a. multiple
b. group
c. corporate
d. branch office
b. group
Sarah is an actively licensed broker for XYZ Realty, a registered real estate brokerage corporation. She has an opportunity to buy an existing real estate corporation, BBD Realty, Inc., in a town 25 miles away and wants to become the only broker for both corporations. She does not wish to change the name or combine the two corporations. How may Sarah accomplish this?
a. The corporations will have to be merged into one entity as Sarah cannot be a broker within two different corporations.
b. Sarah may be the only active broker in both corporations by requesting a group license.
c. Sarah may be the only active broker in both corporations by requesting multiple licenses.
d. BBD should be registered as a branch office of XYZ Realty, Inc.
c. Sarah may be the only active broker in both corporations by requesting multiple licenses.
An ostensible partnership:
a. is required to file documents with the Secretary of State.
b. is not a true partnership.
c. cannot be created by real estate brokers.
d. will not be treated as though the participants were partners.
b. is not a true partnership.
A location would be required to register as a brokerage branch office if
a. tables and chairs are provided for sales associates and customers.
b. the location is used as a shelter to get out of the sun or rain.
c. literature is handed out containing the broker’s office address.
d. sales associates are permanently assigned to the location.
d. sales associates are permanently assigned to the location.
Which statement best describes the sign required for a brokerage office?
a. Only one sign per firm is required regardless of the number of offices.
b. Each sales associate associated with the firm must have a separate sign.
c. Every active broker must maintain a sign at each brokerage office or branch office.
d. Office signs are permitted but not required by law.
c. Every active broker must maintain a sign at each brokerage office or branch office.
Which method is NOT an authorized alternative for a broker to use in resolving an escrow dispute?
a. seeking an escrow disbursement order from the Commission
b. submitting the escrow dispute to mediation or arbitration
c. seeking a court decision to resolve the escrow dispute
d. obtaining an attorney’s opinion
Approved depositories for earnest money include a:
a. bank within the state of Florida.
b. stock brokerage firm.
c. broker’s personal checking account.
d. safe in a real estate office.
a. bank within the state of Florida.
Also can be deposited in a savings association, title company, and a Credit Union.
A real estate sales associate that has received an earnest money deposit must:
a. deposit the funds in an insured bank account.
b. deliver the funds to his or her broker or owner-employer.
c. deposit the funds in an escrow account.
d. deposit the funds with the Florida Real Estate Commission.
b. deliver the funds to his or her broker or owner-employer.
Must be done by the next business day
If a commission dispute arises prior to closing, the broker:
a. may retain the entire amount of escrowed funds until the dispute is resolved.
b. must withdraw the amount of the commission from the escrow account.
c.may retain the exact amount of the disputed commission in the escrow account until the dispute is settled.
d. must deliver the entire amount of the escrowed funds at closing.
c. may retain the exact amount of the disputed commission in the escrow account until the dispute is settled.
What percentage of the fee paid may a prospective tenant receive as a refund when provided with inaccurate information?
a. 100%
b. 75%
c. 25%
d. none
a. 100% (first degree misdemeanor $1000/1 year)
The maximum amount paid from the Real Estate Recovery Fund based on the actions of a licensee is __________.
$150,000
The range of penalties that may be imposed on a licensee by the Commission for violation of law or rules includes:
a. denial, reprimand, fine, probation, suspension and revocation.
b. imprisonment only.
c. a fine and imprisonment only.
d. a fine, reprimand, denial, suspension, revocation and imprisonment.
a. denial, reprimand, fine, probation, suspension and revocation. (can’t imprison or deny commission)
An appeal of a Commission final order is filed with the:
a. Florida Supreme Court.
b. District Court of Appeals.
c. County Court.
d. Department of Administrative Hearings.
b. District Court of Appeals.
What Is the charge for anyone found guilty of using false or misleading adverting?
a. third-degree misdemeanor
b. second-degree misdemeanor
c. first-degree misdemeanor
d. third-degree felony
b. second-degree misdemeanor
An investigator for the Department may not express any ________ ________ concerning the investigation.
personal opinion
The criminal penalty for violation of F.S. 475 is typically a fine of up to _______ and/or imprisonment for no more than ___ ______.
$500, 60 days
The criminal penalty for a first-degree misdemeanor is a fine of up to _______ and/or imprisonment for no more than ________ ________.
$1000, one year
Citations issued by _______ assigned by the Division of Real Estate, must be paid within ____ days after becoming a final order.
investigators, 30
The violation sited in a Notice of Noncompliance must be corrected within ____ days.
15
What is the maximum amount of money that can be paid from the Real Estate Recovery Fund to three persons who suffered monetary loss as the result of a fraudulent act committed by a real estate licensee and have been awarded a single judgment?
a. $150,000
b. $50,000
c. $25,000
d. $10,000
b. $50,000
If a broker’s actions pose an immediate serious danger to the safety and welfare of
the public, what action might the Secretary of the Department of Business and
Professional Regulation take?
a. suspend the license of the licensee for 10 years
b. issue a summary suspension
c. issue a cease and desist order
d. place the licensee on probation
b. issue a summary suspension
What action may be taken if either the Florida Real Estate Commission or the
licensee disagrees with a recommended order?
a. seek adjudication
b. submit the matter to mediation
c. file exceptions
d. request novation
c. file exceptions (within 10 days)
