Statues - NEED TO KNOW

Question 1

sales associate renewal

NULL 7 VOID

Answer 1

the license of any associate who does note complete the post licensure education requirement prior to the first renewal following initial licensure shall be considered NULL & VOID

Question 2

ESCROW ACCOUNT

Answer 2

must be an account separate from the brokers own operating funds

Question 3

Escrow Amount

Answer 3

broker may maintain more than one escrow account and maintain up to $1000 of his own money in each sales escrow account or put to $5,000 in a property management account.

Must reconcile every 30 days from the last reconciliation date.

Question 4

Escrow Interest Bearing Accounts

Answer 4

broker can place escrow money in an interest bearing escrow account. He may do so ONLY if the following is stated in writing w/ all parties to the transaction
a. the name of the party who is to receive the interest and
b the date the earned interest my be disbursed

Question 5

Record Keeping of Escrow/ Trust Accounts

Answer 5

the broker must keep careful, exact records of money in trust accounts - these records must be available to the DBPR or its authorized representatives during regular business hours.
ONCE A MONTH - Reconcile
The broker must review, sign and date the monthly statement of reconciliation.

Question 6

Escrow Accounts in Dispute

Answer 6

Broker is responsible to notify FREC within 15 business days from the last party’s demand.
www.hud.com
Condominium Act 718 F.s.

Broker has good-faith doubt (meaning the broker honestly doubts he claim of a party) - the broker reports the situation to the FREC. Broker 30 days

Escrow Disbursement Order
Mediation
Arbitration,
Litigation

Question 7

Four Settlement of Escrow Dispute Procedures

Answer 7

An Escrow Disbursement Order (EDO) from the FREC
Mediation - both parties agree in writing to mediation within 90 days

Arbitration - an arbitrator makes the decision - if not it goes into litigation

Litigation - is a law suit asking courts through a price interpleader - Court issues a declaratory judgement

Once the dispute is settled, the broker must notify the FREC within 10 days that the dispute is over

Question 8

Rental Lists and Rental Companies

Answer 8

FREC requires that the broker give the tenant a contract that specifies that the tenant has the right to:

Request a refund of 75% of the fee if requested in 30 days fi the tenant does not find a rental and

Request a refund of 100% of the full fee (if requested within 30 days) if the information is inaccurate

THE PENALTY FOR ADVERTISING OBSOLETE OR OTHERWISE INACCURATE RENTAL LISTS IS A FINE UP TO $1,000 AND/OR UP TO ONE YEAR IN PRISON. THIS IS FIRST DEGREE MISDEMEANOR.

Question 9

Rental information; contract or receipt; refund; penalty.—

Answer 9

(1)  Each broker or sales associate who furnishes a rental information list to a prospective tenant, for a fee paid by the prospective tenant, shall provide such prospective tenant with a contract or receipt, which contract or receipt contains a provision for the repayment of any amount over 25 percent of the fee to the prospective tenant if the prospective tenant does not obtain a rental. If the rental information list provided by the broker or sales associate to a prospective tenant is not current or accurate in any material respect, the full fee shall be repaid to the prospective tenant upon demand. A demand from the prospective tenant for the return of the fee, or any part thereof, shall be made within 30 days following the day on which the real estate broker or sales associate has contracted to perform services to the prospective tenant. The contract or receipt shall also conform to the guidelines adopted by the commission in order to effect disclosure of material information regarding the service to be provided to the prospective tenant.
(2)  The commission may adopt a guideline for the form of the contract or receipt required to be provided by brokers or sales associates pursuant to the provisions of subsection (1).
(3) (a) Any person who violates any provision of subsection (1) is guilty of a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.
(b)  In addition to the penalty prescribed in paragraph (a), the license of any broker or sales associate who participates in any rental information transaction which is in violation of the provisions of subsection (1) shall be subject to suspension or revocation by the commission in the manner prescribed by law.

Question 10

The Role of the Broker in Property Transfer

Answer 10

Puffing is a form of exaggerating.
Is some cases misrepresentation of a property can be a result in FRAUD.

You must be aware of FRAUD. An example of misrepresentation of value by a broker cold include lack of material facts. (leaky roof, electrical problem - you know about)

Such misinformation could be considered fraud, breach of contract or a breach of trust, depending on the situation.
A broker may never give advice about contract law or explain the meaning of contract areas to anyone; nor should the broker discourage the use of an attorney in assisting the buyer or selling in the process of the sale.

Question 11

Home Equity Loan

Answer 11

borrow against the equity of their home to make major capitol repairs - roof or pay bill off - place a 2nd loan in a junior position in order to get cash.

Question 12

Package Loan

Answer 12

used in resort areas a great deal - mortgage includes the fixtures, appliance and other personal property in the same loan.

Question 13

Reverse Annuity Mortgage

Answer 13

Senior Citizen over the age of 62 can benefit from this mortgage. Lender makes payments to the owner - house RICH and CASH poor.

Question 14

Land Contract

Answer 14

an installment contract or a contract of deed - Vendor (seller) and vendee (buyer) - The buyer does not get legal title until the final payment is made.

Question 15

Purchase Money Mortgage or Part Purchase Money

Answer 15

buyer’s consideration for the purchase of real property. A purchase money mortgage is delivered at the same time that the really property is transferred as simultaneous part of transaction.

Buyer assumes a frist mortgage of $50,000 makes a $20,000 down payment in cash and receives a 2nd mortgage called a purchase money mortgage from the seller for $15,000 for a shorter term. The seller’s second mortgage is part purchase money mortgage.

Question 16

Blanket Mortgage

Answer 16

loan on several pieces of property. Blanket mortgages contain a partial release clause. - This cause is one where the mortgagee agrees to release certain parcels from the loan of the blanket mortgage upon payment by the mortgagor of a certain sum of money

A developer could use this type of mortgage so that as lots are sold, he could repay part of the mortgage without having to repay all of it.

Question 17

FHA Loans

Answer 17

Federal Housing Administration (FHA) insures loans for lenders. (made by qualified or approved lending institutions). Department of housing and urban Development (HUD) oversees the FHA.

FHA loans require a down payment as low as 3.5% Down payment may be a gift if needed by the buyer borrow is charged a one-time insurance premium at closing. UFMIP (up front mortgage insurance premium)

Lenders may charge points to increase their yield. Each point is 1% of the loan value. Discount point is prepaid interest.

No REPAYMENT PENALTIES ARE ALLOWED IN FHA LOANS

Loans are assumable w/ certain qualifying conditions. THE MORTGAGED REAL ESTATE must be appraised by an approved FHA appraiser.

FHA loans 29% (gross monthly income)
41% (housing payment)

Question 18

Common FHA LOAN PROGRAMS

Answer 18

203 (b) - fixed rate program min downpayment and closing cost

234(c) - loans on condos (must be FHA certified)

245 - Graduated payment plan mortgage

203k - allows the purchase to borrow enough money to rehabilitate a property

FHA Reverse mortgage (owners 62 years of age or older

FHA 251 - ARM

Loan Assumption - FHA loans are assumable

Question 19

VA loans

Answer 19

VA-G (guarantee that the loan made by an approved lending institution will be paid)

must serve 181 active service days

requires that veteran assumes liability for the loan (foreclosed if veteran does not pay)

property must be owner occupied for one year

A qualified veteran may borrow up to 100% of the loan with no down payment

veteran must 1st apply for a CERTIFICATE OF ELIGIBILITY

house must qualify w/ an appraisal and is issued a CERTIFICATE OF REASONABLE VALUE

the amount of loan is limited to the amount shown of the certificate of reasonable value

loans may be assumed by non-veterans, but veterans may still be liable

VA will lend money in rural areas where there is no financial institution available

points can be paid by either the seller or buyer

VA does not allow prepayment penalties to be charged

FHA AND VA will allow a buyer to pay more than appraised value if the difference is paid in CASH.

41% monthly payment of the loan
28% of the gross monthly income

Question 20

Conventional Loans

Answer 20

Conventional loans are neither guaranteed nor insured by the federal government.

A minimum down payment of 20% must be made

Assumptions of these loans are rarely allowed; almost all of the loans contain an alienation clause. Prepayment clauses in the loans will depend on what type of loan is used- adjustable, fixed etc.

Question 21

Conventional Insured Loans

Answer 21

Unlike the conventional loans listed above, these loans require less than 20% down payment but they also require mortgage insurance which protects the lender (not the home buyer!).

Question 22

PMI (private mortgage insurance)

Answer 22

PMI is to protect the lender from default of the buyer, not insure the buyer’s life. PITI - Principle, interest, taxes instances and PMI insurance. Can be part of the monthly payment.

Question 23

HUD’S MISSION

Answer 23

to create strong, sustainable communities and quality affordable home for all. strengthens housing market to boost homeownership. HUD the Department of housing and Urban development (HUD) oversees the FHA.

Question 24

PMI - private mortgage insurance

Answer 24

insurance provided by a private insurer that protects the lender against loss in the event of a foreclosure and deficiency.

Question 25

Valid

Answer 25

binding the enforceable on all parties

Question 26

void

Answer 26

has not legal effect elements is missing or corrupted

Question 27

voidable

Answer 27

is valid on the surface but may be rejected - court action on the injured party
ex. property fold by a person under duress who come back later and claims duress.
alchohol or minor

Question 28

enforceable

Answer 28

means that all of the essential of a contract are present and it’s in writing

Question 29

unenforceable

Answer 29

means the contract may be valid between the parties - contract not in writing

Question 30

Earnest money

Answer 30

deposit or escrow is NOT required to create a valid contract

Question 31

Equitable title

Answer 31

interest the buyer has - the acceptance of the contract and the actual closing - the buyer receives legal or actual title

Question 32

actual title

Answer 32

the time when the title actually changes in hands

Question 33

to be valid and enforceable

Answer 33

a contract must contain the four essentials, be in writing, and all parts required signed and initialed as required by the parties.

Question 34

expressed

Answer 34

oral or written - which contains specific terms and conditions

Question 35

implied

Answer 35

actions of the parties -

Question 36

executory

Answer 36

something is incomplete

Question 37

executed

Answer 37

met and all satisfied

Question 38

who is giving the offer is the

Answer 38

offeror

Question 39

who is receiving the offer is the

Answer 39

offeree

Question 40

DUAL AGENCY

Answer 40

the state of Florida has forbidden both disclosed and undisclosed dual agency
Disclosed dual agency: means both the seller and buyer are aware of the agency relationship and both agree to be represented equally and with all the requirements of agency all at the same time. This is illegal under Florida law.
Undisclosed dual agency: means one of the parties (either the buyer or seller) is unaware that a dual agency exists. This situation may lead to the unfair disclosure of information that one party does not want the other party to know. This is illegal under Florida law.

Question 41

Important of Disclosures

Answer 41

All parties in a residential transaction have the right to disclosure of material facts when in an agency or no relationship transaction.
Florida law describes residential sales as: the sale of improved residential property of four units or fewer, the sale of unimproved residential property intended for use of four units or fewer, or the sale of agricultural property of 10 acres of fewer .

The buyer is not required to sign the disclosure under Florida law, but if he refuses to sign, the broker should include a copy of the disclosure along with a note that the buyer refused to sign and include it in the buyer’s file.

Question 42

No brokerage relationship

Answer 42

When the Agent represents one side or the other in a transaction but not the party who is given the form.

Question 43

No brokerage relationship

Answer 43

When the Agent represents one side or the other in a transaction but not the party who is given the form.
This means that the buyer or seller have no representation in the transaction but the broker will help them both complete the transaction. There is no loyalty involved in this transaction, nor any fiduciary responsibility for the side not represented.

Question 44

Single Agency Relationship

Answer 44

A single agent is a broker who represents, as a fiduciary, either the buyer or seller but not both in the same transaction.
The buyer or seller who has hired the agent is called the Principal.

Single agent broker: an agent who represents either the buyer or the seller in the transaction but not both,

Question 45

Transaction broker

Answer 45

an agent who provides limited representation to a buyer, a seller or both, in a real estate transaction but does not represent either in a fiduciary capacity,
A transaction broker means a broker who provides limited representation to a buyer, a seller, or both, in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent. Chapter 475 defines a “customer” as a member of the public who is or may be a buyer or seller of real property and may or may not be represented by a real estate licensee. Either buyer or seller is a “customer” when he chooses a limited representation under Transaction broker status
Provide limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, or the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or any other information requested by a party to remain confidential.

Under Florida law, customers are not responsible for the acts of a transaction broker, and licensees will not work for one party to the detriment of the other.

Question 46

Designated Sales Associate:

Answer 46

a special case for non-residential transactions where two licensees under the direction of one broker act as single agents. One represents the buyer and one the seller. In this case both buyer and seller must verify assets of more than $1 million.

Question 47

Presumption of transaction brokerage.

Answer 47

Presumption of transaction brokerage.

Question 48

Discipline for lack of Disclosure

Answer 48

Because of the importance of disclosure, the Commission takes failure to perform disclosure very seriously
If a licensee fails to provide or adhere to the provisions of disclosure, the Commission may
deny an application for licensure, registration, permit or renewal
place the licensee, registrant or permitee on probation,
suspend a licensee, registration or permit,
impose an administrative fine not to exceed $1,000 for each count,
issue a reprimand,
do any or all of the above.
The Commission will prosecute a licensee for failure to give the agency disclosure form(s) before, at the time of, entering into a listing agreement or an agreement for representation or before the showing of property, whichever occurs first, when dealing in residential property. Persons who identify themselves as agents and their customers as clients may create an “implied disclosure” if the customer is led to believe that the associate is working in a fiduciary capacity. It is important for sales associates to identify themselves as either transaction brokers or sales associates and the people they work for as customers.
All brokerage relationships are determined by the broker – sales associates may not create an agency relationship without the express permission his or her employing broker.

Question 49

Record Keeping of Disclosures

Answer 49

Each broker shall preserve one legible copy of all books, accounts, and records, including disclosure documents for at least 5 years from the date of the document. Documents must be kept for two years after any legal proceedings.

Question 50

the person who is empowered to act on behalf of another is called

Answer 50

an agent

Question 51

any request for multiple license for a broker must be…

Answer 51

justified as necessary to the broker’s business.

Question 52

offer to purchase

Answer 52

is not a contract. When an offer or counter offer is mutually agreed upon and the seller and/or buyer have signed and dated the final change, the offer becomes a valid contract.

Question 53

Ways an Offer can be Terminated

Answer 53

The ways an offer can be terminated:
An offer is withdrawn by the offeror.
The time for an offer has passed and the offer is dead.
The death or insanity of either party.
A counter offer is given, making the first offer dead.
The offer is accepted and signed by both parties, creating a CONTRACT.
The offer is rejected by one party completely.
The property in question is destroyed.

Question 54

breach

Answer 54

one or the other or both of the parties have broken the promises made
Suit for Cancellation: (Rescind the contract) the court restores the parties to their original position before the contract.
Suit for Specific Performance: Because no two pieces of property are alike, the buyer wants this house, at this time and asks the court to enforce the contract.
Suit for Damages: Because a party may have expenses to the contract (such as an appraisal or moving) the injured party asks the court to make the other party pay damages. Out of pocket expenses such as appraisals and moving are called compensatory damages and punishment for wrong doing damages are called punitive damages.
The seller, if he is the wronged party, may wish to accept liquidated damages which would consist of any earnest money deposited for payment. If he accepts liquidated damages, he may not sue for Specific Performance.

Question 55

Ways a Contract can be Terminated

Answer 55

Performance: the contract is completed
Mutual rescission: both parties agree to cancel the contract.
Impossibility of performance: an earthquake hits the property and both parties agree to rescind the contract.
Operation of Law: bankruptcy of either party or eminent domain of the property

Question 56

Assignment of a contract

Answer 56

is when a third person takes the place of one of the original people in the contract. All the rights and responsibilities remain with the original party to the contract, unless both parties agree to the assignment in writing.
The giver of an assignment is the Assignor; the receiver is the Assignee.

Question 57

Novation:

Answer 57

is a change in the original terms, such as an extension of time for closing or loan commitment. All other terms of the contract remain the same.

Question 58

Contingency:

Answer 58

means conditions or terms yet to be performed. A financing contingency means the buyer will buy the house on the condition that he receives the loan applied for. All contingencies must be met before a contract can be executed.

Question 59

Mirror Image:

Answer 59

A seller agrees to an offer exactly as it was written. No changes are made to the offer; it is signed by the seller as it was written.

Question 60

HOA
Homeowner association Disclosure
Florida Statue 720

Answer 60

equires disclosure of important Homeowner’s Association, ( HOA) information prior to signing a contract for sale. If the disclosure is not given, the purchaser is not bound and may cancel the contract at any time before closing.

IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.401, FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE PURCHASER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR SELLER’S AGENT OR REPRESENTATIVE WRITTEN NOTICE OF THE BUYER’S INTENTION TO CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO EFFECT. BUYER’S RIGHT TO VOID THIS CONTRACT SHALL TERMINATE AT CLOSING.

Question 61

Which best describes a fixture?

Answer 61

it was movable at one time

Question 62

Real property can be converted into personal property by?

Answer 62

Severance

Question 63

Joint Tenancy

Answer 63

needs the four unities to be created

Question 64

the right of an owner to won to the average high water mark is

Answer 64

littoral

Question 65

The ownership presumed by law unless others stated is:

Answer 65

tenancy in common

Question 66

How many days does a buyer have to cancel a purchase contract of a cooperative when purchasing from a developer.

Answer 66

15 days

Question 67

Advertising
FREC RULE
61J2.10.25

Answer 67

No real estate advertisement by a licensee shall show only a post office box number or telephone number or other vague information so that the public does not know that it is a licensee. Such an ad is called a Blind Ad and is illegal under Florida Law.

When advertising on the Internet, the brokerage firm name shall be placed adjacent to or immediately above the POINT of CONTACT information. “Point of Contact” refers to any means by which to contact the brokerage firm or individual licensee including mailing address, physical street address, e-mail address, telephone number or FAX number.

Remember, Blind Ads are illegal! –
A blind ad is an advertisement that does not make it clear that a broker or real estate company is advertising the property for sale, rent or lease. The name of the brokerage must always appear in an advertisement, no matter what type of advertisement. Refer to FREC Rule 61J2.10.25

Question 68

Commingling

Answer 68

To mix personal and public money is called Commingling and is illegal under Florida law, with the exception of $1000 that a broker may deposit in the escrow (or trust) account to keep the account open

Question 69

Conversion

Answer 69

means taking money that should be held in escrow for the parties and using the money for the broker’s own needs (such as operating money

Question 70

sales associate

escrow delivery

Answer 70

must be given to the broker immediately. This means no later than the end of the next business day.

Question 71

broker

Escrow delivery

Answer 71

When a broker receives money to be deposited in an escrow account, he must deposit it immediately within three business days. (Holidays and weekends are excluded)

Question 72

Florida State Law Chapter 120

Answer 72

Public Officers, Employees, and Records - Administrative Procedure Act

Question 73

Florida State Law Chapter 455

Answer 73

Business and Professional Regulations: General Provisions

Question 74

Appraisal

Answer 74

first measurement of value of the home. 475.612 (2)
2) 475.612 This section does not preclude a Florida licensed real estate broker, sales associate, or broker associate who is not a Florida certified or licensed real estate appraiser from providing valuation services for compensation. Licensees may perform real property valuation services in Florida as long as they do not represent themselves as a certified appraiser. Such persons may continue to provide valuation services for compensation so long as they do not represent themselves as certified, licensed, or registered under this part.

USPAP -Uniform Standards of Professional Appraisal Practice
In other words, an appraiser must be paid on a fee per-job basis, not a percent of the value of the property.

Question 75

Comparative Market Analysis

Answer 75

After looking at all the comparables, the broker determines a price range that a buyer will probably pay for the property, rather than a specific price as an appraisal does. A CMA is exempt from USPAP standards.
Real Estate Professionals do CMAs and may not call a CMA an appraisal.
Appraisal for any federally related transaction is done by licensed appraisers who follow USPAP.

Question 76

“Spec” homes

Answer 76

mean speculation homes, built without having a specific buyer in mind. Sometimes these homes are used as displays

Question 77

Tract homes

Answer 77

are built to a certain set of guidelines used for a particular subdivision.

Question 78

custom home

Answer 78

s one that is built for a specific buyer

Question 79

Agriculture property

Answer 79

has more than 10 acres

Question 80

one example of a loan originator would be an

Answer 80

seller who finances more than one home in a two year period

Question 81

Department of Business and Professional Regulations has

Answer 81

30 days to notify an applicant

90 days to approve

Question 82

Who does NOT NEED a real estate license

Answer 82

An owner selling his/her own property
Anyone acting as an Attorney in Fact.

An employee of a public utility, rural electric cooperative, a railroad or state or local government so long as the individual acts within the scope of his or her own employment and no compensation other than salary is given. This individual may buy, sell, exchange, auction or lease any property for the use of his or her employer

A full-time graduate student enrolled in a FREC-approved degree program, appraising at a college or university. The student must act under the direct supervision of a licensed broker or certified appraiser and is engaged only in activities related to the approved degree program. Any appraisal report must be issued in the name of the supervising individual

Any person, partnership or corporation which for another for compensation rents or advertises for rent transient occupancy; or any public lodging establishment licensed under another section

A salaried employee of an owner or of a registered broker for an owner of an apartment community who works in an onsite rental office of the apartment community in a leasing capacity.

Any salaried employee who is a manager of a condominium or cooperative apartment complex whose activities or duties include renting of individual units as long as the rental period is no greater than 1 year.

Any property management firm or owner of an apartment complex providing a finder’s fee or referral fee to an unlicensed person, who is a tenant in the apartment complex, PROVIDED THE VALUE OF THE FEE DOES NOT EXCEED $50 per transaction. A finder’s fee or referral fee means a fee paid, credit toward rent, or any thing of value provided to a person for introducing or arranging the rental or lease of an apartment unit.
It is illegal to pay a finder’s fee to an unlicensed person under any other circumstance.

Question 83

Referral Fee un-licenesed

Answer 83

Any property management firm or owner of an apartment complex providing a finder’s fee or referral fee to an unlicensed person, who is a tenant in the apartment complex, PROVIDED THE VALUE OF THE FEE DOES NOT EXCEED $50 per transaction. A finder’s fee or referral fee means a fee paid, credit toward rent, or any thing of value provided to a person for introducing or arranging the rental or lease of an apartment unit.
It is illegal to pay a finder’s fee to an unlicensed person under any other circumstance
The only Finder’s fee paid is that to a tenant of a residential complex listed on Screen 25. Otherwise, it is illegal to pay a Finder’s Fee to any other unlicensed person. A broker can be fined up to $1000 and have a suspended license for 5 years if he pays an unlicensed person anything.

Question 84

Florida Real Estate Commission
FREC
7 members

Answer 84

The Commission is made of seven members. The Commission’s purpose is to protect the public. The FREC manages and enforces the real estate license law, Chapter 475, Part I, Florida Statutes. The Commission is also empowered to pass rules that enable it to implement its duties and responsibilities. These rules are contained in Chapter 61J2, Florida Administrative Code.
Quasi-legislative power to enact rules
Quasi-judicial in the power to impose disciplinary actions
The Commission is composed of seven members:
Four members must be licensed brokers, licensed for at least 5 years preceding appointment
One member may be a broker or sales associate but must have held an active real estate license for two years preceding the appointment.
Two members must be consumers who have never held a real estate license.
One of the members must be 60 years of age or older.
The commission meets monthly on the second Tuesday and Wednesday. Members are paid $50 a day as well as mileage.

Question 85

Florida Real Estate Commission

FREC

Answer 85

The Commission is made of seven members. The Commission’s purpose is to protect the public. The FREC manages and enforces the real estate license law, Chapter 475, Part I, Florida Statutes. The Commission is also empowered to pass rules that enable it to implement its duties and responsibilities. These rules are contained in Chapter 61J2, Florida Administrative Code.
Quasi-legislative power to enact rules
Quasi-legislative power to enact rules

Question 86

DBPR

455 F.S

Answer 86

has three areas for enforcement
-the division of regulation -# From FREC SECTION - The duly authorized agents and employees of the department shall have the power to inspect and audit in a lawful way any broker or brokerage office for the purpose of determining if the provisions of rules or laws of real estate have been upheld

The Division of Professions is responsible for the licensing of over 396,000 professionals.

The Bureau of Education and Testing (BET)s Organized pursuant to Section 455.217, Florida Statutes and Chapter 61-11, Florida Administrative Code. Its purpose is to protect the health, safety, and welfare of the public by offering reliable and valid professional licensure examinations for the boards. The Bureau administers numerous examinations, including DBPR developed and national. DBPR developed examinations are primarily provided in English but the Spanish translation is available for most of the Professions.

The Division of Real Estate is made up of employees of the Department of Business and Professional Regulation handling only real estate needs. The Division of Real Estate protects the public by regulating real estate and appraiser licensees within the laws laid out in Chapter 475, part I, Florida Statutes. The Division is responsible for the examination, licensing and regulation of over all individuals, corporations, real estate schools and instructors licensed with the state of Florida.
The Florida Real Estate Commission (FREC) is made up of selected volunteers, not state employees. FREC members are paid a per-day rate for reimbursement. The FREC creates the rules for taking the examination and for getting a license.

Question 87

License Renewal Period

Answer 87

March 31st and September 31st two years -

Question 88

Post licensing - sales associates

Answer 88

45 hours - first time licensee must take a post license class before their renewal

Question 89

Broker renewing first time

Answer 89

must complete a 2 30 hour post lines course or it’s null an void

Question 90

CE classes

Answer 90

14 hours and thee hours of core law - if not involuntarily inactive

Question 91

Membership of the FREC is obtained by

Answer 91

appointment by the governor, subject to confirmation by the senate

Question 92

Joe submitted his application to take the sale’s association’s examination, He passed the test, when is this license if effective

Answer 92

after he receives written notice that he passed the examination

Question 93

the REAL ESTATE EDUCATION & RESEARCH FOUNDATION pays for it’s programs

Answer 93

by interest from the transfer from the real estate trust fund

Question 94

FREC 475. F.S & 455F.S Fines

Answer 94

can fine up to $5,000

Question 95

Membership of the FREC is obtained by (GS)

Answer 95

appointment by the governor, subject to confirmation by the senate

Question 96

Rule 61J2.10.25 - blind ads

Answer 96

are illegal

Question 97

61j2.14.08 - 10 days for escrow -

Answer 97

for the broker to release the money from the escrow.

Question 98

The consumer financial protection bureau(CFPB)

Answer 98

federal government which regulates respa is the

Question 99

DRE (department of real estate) is charged with investigating real estate complaints (8)

Answer 99

1. Complaint - anyonce can fine a complaint w/ the department against a license - a complaint is filled with DBPR - when investigation is completed FREC determines the guilt or innocence. - DBPR can investigate an anonymous complaint - minor violations may be issued of notice of noncompliance for first time offense - if not responded in a timely manner - a citation is issued w/ a fine. Summary suspicion is an emergency suspension
2. Investigation - - probable cause panel is considered confidential after 10 days - a subpoena is legal order requiring a person to appear before the courts are five testimony.
3. Probable Cause - 2 members appointed by FREC must act in 30 days - letter of guidance
4. Formal Complaint - administrative complaint is against the licensee - Department has 5 years in which to file the complaint. licensee is noticed in 20 days for answer - election for right form - license may agree to stipulation or choose voluntary relinquishment for permanent revocation.
5. inFormal hearing
6. formal hearing - subpoenas may be issued and have the right to attorney admin law judge prepares a recommended order, each party is allowed 15 days to file.

Question 100

DRE (department of real estate) is charged with investigating real estate complaints (8)

Answer 100

1. Complaint - anyonce can fine a complaint w/ the department against a license - a complaint is filled with DBPR - when investigation is completed FREC determines the guilt or innocence. - DBPR can investigate an anonymous complaint - minor violations may be issued of notice of noncompliance for first time offense - if not responded in a timely manner - a citation is issued w/ a fine. Summary suspicion is an emergency suspension
2. Investigation - - probable cause panel is considered confidential after 10 days - a subpoena is legal order requiring a person to appear before the courts are five testimony.
3. Probable Cause - 2 members appointed by FREC must act in 30 days - letter of guidance
4. Formal Complaint - administrative complaint is against the licensee - Department has 5 years in which to file the complaint. licensee is noticed in 20 days for answer - election for right form - license may agree to stipulation or choose voluntary relinquishment for permanent revocation.
5. inFormal hearing
6. formal hearing - subpoenas may be issued and have the right to attorney admin law judge prepares a recommended order, each party is allowed 15 days to file.
7. Final Order Panel - receives recommended order.The FREC has the power to accept, reject, reduce, or modify the Recommended Order, with the final order being submitted within 90 days of receiving the Recommended OrderThe Final Order must be signed by the Chairperson, Vice Chairperson or Director of the Division of Real Estate. This is called the “Certificate” and is the final directive of the FREC. It can be used as prima facie evidence* in civil suits. This is placed on record by the Division.
   * Prima facie evidence - Requiring no further proof; acceptable on the face.
8. Judicial Review licensee must appeal with in 30 days to the district court of appeals - FREC may issue a writ of supersedes - stop the suspension or revocation.

Question 101

FREC CAN ISSUE NOTICE OF NONCOMPLIANCE

Answer 101

Remember: the Notice of Noncompliance can only be issued for an initial offense! The broker does not have to cease operations with a Notice, but must comply with it immediately. 15 days -The FREC has set forth the rules, and statutes that are considered minor violations and for which the DBPR can provide a licensee, registrant or permit-holder with a Notice of Noncompliance.

Question 102

suspend a license (short-term)

Answer 102

10 years
475.42No broker or sales associate shall place upon the public records any false, void or unauthorized information that affects the title or encumbers any real property.
The penalty guideline states: The usual action of the Commission shall be to impose a penalty of a five-year suspension to revocation.
No licensee can act in a real estate capacity with a suspended license until the suspension is lifted, however, the licensee MUST complete all education requirements and renewals during his or her period of suspension.

Question 103

61J2-24.003. Citation

Answer 103

issued for minor violations of the law when public welfare is not threatened Citations are issued by the Division of Real Estate. The licensee has 30 days to pay the citation (fine) or request a hearing. If the licensee does not respond in 30 days, more serious discipline may occur.
An example of a citation is:
475.22(1) and 61J2-10.024: Failed to maintain the required office entrance sign.
The penalty is: $100.00

Question 104

administrative fines

Answer 104

The FREC has the right under law to fine anyone found guilty of a violation of Chapters 455 or 475 a fine for each violation of the law.

Question 105

if joe violated a rule under the chapter 475 F.S. and this is first time offense, what is the period of time of probation he could received unless stated with the commission

Answer 105

90 days

Question 106

when a license is being served with he final order of the FREC, how many days does he have to file an appeal w/ the district court

Answer 106

30 days

Question 107

The probable cause panel

Answer 107

holds an investigation and if probable cause is found to exist, will direct the department to file a formal complaint aghast the subject of investigation.