Test Flashcards
Which of the following regarding a sales associate acting as a transaction broker is FALSE?
A. Florida statue presumes that all licensees are working as transaction brokers.
B. The licensee can change from single agent to transaction broker during the transaction.
C. The main goal is to produce a sale between the buyer and seller.
D. Transaction brokers are not entitled to commissions over 5%.
D. Transaction brokers are not entitled to commissions over 5%.
Florida statutes presume that, in the absence of a signed agreement for single agency or no brokerage relationship, all sales associates are working as transaction brokers serving to represent all parties in a limited manner and produce a sale between the buyer and the seller. Transaction brokers provide limited representation to both parties, and a sales associate originally working as a buyer’s agent or seller’s agent can, with the written consent of both parties, transition to a transaction brokerage relationship in order to assist both parties.
A broker has just secured a new listing. If he wants to erect a “For Sale” sign on the property, what must he do first?
A. The broker must secure a permit with the local municipality according to their rules of signage.
B. The broker must secure a buyer for the property.
C. The broker must petition the property’s immediate neighbors for their permission.
D. The broker must get the property owner’s permission to do so.
D. The broker must get the property owner’s permission to do so.
A broker who wishes to place a “For Sale” sign on a listed property must first obtain the owner’s permission.
A broker with a list of rental properties acting as information broker for a tenant must give the tenant a 1-page contract specifying what?
A. Specifying that the tenant has the right to request a refund of 50% of the fee if the tenant does not find a rental; and the right to request a refund of 75% of the full fee if the information is inaccurate.
B. Specifying that the tenant has the right to request a refund of 75% of the fee if the tenant does not find a rental; and the right to request a refund of 100% of the full fee if the information is inaccurate.
C. Specifying that the tenant has the right to request a refund of 25% of the fee if the tenant does not find a rental; and the right to request a refund of 50% of the full fee if the information is inaccurate.
D. Specifying that the tenant has the right to request a refund of 10% of the fee if the tenant does not find a rental; and the right to request a refund of 20% of the full fee if the information is inaccurate.
B. Specifying that the tenant has the right to request a refund of 75% of the fee if the tenant does not find a rental; and the right to request a refund of 100% of the full fee if the information is inaccurate.
When a broker maintains a list of rental property and acts as an information broker to a tenant, the FREC requires that he give the tenant a 1 page contract specifying that the tenant has the right to request a refund of 75% of the fee (if requested within 30 days) if the tenant does not find a rental; and the right to request a refund of 100% of the full fee (if requested within 30 days) if the information is inaccurate.
A licensed sales associate accepted a deposit check from a buyer late on Friday evening. So that the check would not be lost, she deposited it into her personal bank account. Is this wrong?
A. No, because the intent was to protect the funds by placing them into a bank account for safe keeping.
B. No, as long as she informed the buyer she was going to do so.
C. Yes, it is against Florida real estate statutes to do so.
D. Yes, unless the buyer asked her to keep the funds in her account until such time as the contract had been accepted by the seller.
C. Yes, it is against Florida real estate statutes to do so.
A sales associate depositing a buyer’s down payment into his or her personal bank account is in breach of the law and may face discipline form the FREC.
A sales associate discovers an error on the closing statement. Who is responsible for ensuring the accuracy of closing statements?
A. The sales associate is responsible
B. The sales associate’s broker is responsible
C. The title company is responsible
D. The attorney is responsible
B. The sales associate’s broker is responsible
Although a sales associate should double-check all documents for accuracy, it is the broker who is responsible for the accuracy of agreements, offers, contacts, closing statements and other documents.
Can a successful sales associate who is ambitious to generate new business, place a series of advertisements in the newspaper?
A. Yes, if his broker approves and the ads carry the name of the firm or brokerage in addition to the sales associate’s.
B. Yes, if the ads ONLY feature the sales associate’s name and don’t attempt to “borrow equity” by including his brokerage firm’s name.
C. No, only real estate firms can place ads.
D. No, other than classifieds, newspapers only accept ads from recognized advertising agencies.
A. Yes, if his broker approves and the ads carry the name of the firm or brokerage in addition to the sales associate’s.
Sales associates are free to advertise or promote their own services so long as the name of the firm or brokerage is also prominently featured.
Can escrow accounts be interest-bearing in Florida?
A. No, escrow accounts may never be interest-bearing in Florida.
B. Yes, escrow accounts may be interest-bearing provided the interest rate offered is over 3% per year.
C. Yes, escrow accounts may be interest-bearing provided that: the broker has the written permission of all parties to the transaction; the name of the party to receive the interest is agreed; the date the earned interest must be disbursed is agreed.
D. Yes, escrow accounts may be interest-bearing provided that prior written consent is given by the FREC.
C. Yes, escrow accounts may be interest-bearing provided that: the broker has the written permission of all parties to the transaction; the name of the party to receive the interest is agreed; the date the earned interest must be disbursed is agreed.
Escrow money MAY be placed in an interest-bearing escrow account provided that: the broker has the written permission of all parties to the transaction; the name of the party who is to receive the interest is agreed in writing; the date the earned interest must be disbursed is agreed in writing.
What is the primary purpose of the Division of Real Estate?
A. To generate revenues with which to finance real estate education through the levying of license fees on real estate licensees.
B. To promote the business of real estate and maximize the number of real estate transactions throughout the state of Florida.
C. To protect the public by regulation of real estate licensees. The Division is responsible for the examination, licensing and regulation of individuals, corporations, real estate schools and instructors.
D. To act as the disciplinary body for all real estate licensees within Florida and all out-of-state individuals holding Florida licenses.
C. To protect the public by regulation of real estate licensees. The Division is responsible for the examination, licensing and regulation of individuals, corporations, real estate schools and instructors.
The Division of Real Estate protects the public by regulation of real estate and appraisal licensees pursuant to Florida Statutes. The Division is responsible for the examination, licensing and regulation of over a quarter of a million individuals, corporations, real estate schools and instructors.
Which of the following best describes the FREC’s duties and powers?
A. The FREC administers to disputes between licensees and mediates over cases involving unpaid or disputed commissions and real estate fees.
B. The FREC administers and enforces the real estate license law. The Commission is also empowered to pass rules that enable it to implement its statutorily authorized duties and responsibilities.
C. The FREC is the driving force behind advertising and promoting the business and practice of real estate throughout Florida.
D. The FREC provides advice to the civil courts and has is empowered to hand out judgments in the event that a licensee is found guilty of a crime.
B. The FREC administers and enforces the real estate license law. The Commission is also empowered to pass rules that enable it to implement its statutorily authorized duties and responsibilities.
The FREC administers 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 statutorily authorized duties and responsibilities. These rules are contained in Chapter 61J2, Florida Administrative Code.
Who appoints the FREC and how many members are there on the Commission?
A. The FREC consists of 12 members appointed by the Governor, subject to confirmation by the Senate.
B. The FREC consists of 7 members appointed by the Association of Realtors.
C. The FREC consists of 4 members selected by public election.
D. The FREC consists of 7 members appointed by the Governor, subject to confirmation by the Senate.
D. The FREC consists of 7 members appointed by the Governor, subject to confirmation by the Senate.
The FREC consists of 7 members appointed by the Governor, subject to confirmation by the Senate. 4 members must be licensed brokers, each of whom has held an active license for 5 years preceding appointment. 1 member must be a licensed broker or a licensed sales associate who has held an active license for 2 years preceding appointment. 2 members must be persons who are not, and have never been, brokers or sales associates.
A listing agreement is a contract between 2 parties and therefore subject to termination under the same conditions as other contracts. Which of the following does NOT meet one of the conditions required for termination of the contract?
A. Lanie, a real estate licensee, successfully helps her clients sell their property as agreed and receives her commission at closing.
B. Carol, a seller, is in a fatal collision and her heirs don’t want to sell the property.
C. Tara, a seller, accepts an offer from Jacob but decides not to sell after all.
D. The listing agreement term has passed without a single offer on the property, so Gary decides to take his house off the market.
C. Tara, a seller, accepts an offer from Jacob but decides not to sell after all.
A listing agreement is a contract that defines the relationship between the real estate agency and the seller, specifying the seller’s price and terms, the services provided by the brokerage, and the amount of commission to be paid at closing. The listing is in effect until it expires or the property sells. Other reasons for termination include mutual agreement between the seller and the brokerage or the death of either party. Change of mind about a sale affects the purchase contract rather than the listing agreement and would entail a breach of contract.
David, a licensed real estate sales associate, creates an offer for the buyer he is representing. In addition to the written offer, what other document must David furnish simultaneously?
A. A Florida Consumer Energy Information Booklet
B. An estimated closing statement
C. Notice of transaction brokerage relationship
D. A disclosure of all known material defects
A. A Florida Consumer Energy Information Booklet
The Consumer Energy Information Booklet is required to be provided to any purchaser of a resale property. An agency relationship has already been established at this point, and the seller is the party that furnishes, rather than receives, the disclosure statement.
Following having a few clients who failed to come through, Adnan decided that as an exclusive buyer’s agent, he would charge a retainer fee to all of his clients for his representation, which he insisted on receiving up front. The fee is not refundable, and will apply to closing fees if a transaction is consummated. If a transaction is not compensated the retainer belongs to the broker who in turn would share it with Adnan based upon their written agreement. Which is TRUE?
A. A non-refundable retainer fee that applies towards closing fees must be placed into the broker’s regular escrow account until closing or until the buyer brokerage expires.
B. Adnan may choose to call it a retainer, but in the eyes of the Florida statutes, it is an “advance upon commission”, which is illegal.
C. A retainer fee may only be held by the broker in the form of a check from the client, un-cashed until closing.
D. The retainer fee may be placed into the broker’s operating account, because it is not a commission.
A. A non-refundable retainer fee that applies towards closing fees must be placed into the broker’s regular escrow account until closing or until the buyer brokerage expires.
Adnan does have the right to ask for a retainer, and this fee, since it is non-refundable (just like commissions) must be placed in the broker’s escrow or trust account until the time of closing or the time that the buyer brokerage agreement expires. A retainer, because it is not connected with a listing agreement, is not considered an advance fee.
May a real estate broker list a property for sale based on the net price that the seller wants to make?
A. Yes, net listings are legal in Florida.
B. No, unless the agent has the written permission of the FREC.
C. No, net listings are illegal in Florida.
D. No, unless the net gain the agent makes is less than 6% of the total property sale price.
A. Yes, net listings are legal in Florida.
It IS legal in Florida to advertise a listed property based on a “net price”, although the practice can lead to serious issues and is strongly advised against.
Which of the following types of assistance can sellers working with a real estate brokerage NOT expect to receive?
A. Assistance in proving good title
B. Assistance attracting prospective buyers
C. Assistance qualifying prospective buyers for financing
D. Assistance with prorating property taxes and insurance at closing
A. Assistance in proving good title
Florida licensees have in-depth training in many technical areas, including; using comparative market analysis to determine property value, marketing property, pre-qualifying buyers for financing, and calculating prorated property taxes, insurance, and loan interest. Sellers who work with a Florida real estate associate can count on the licensee to save them from wasting precious time on buyers who aren’t truly interested or able to buy. The process of proving good title falls to title companies and attorneys at law.
Lane, a broker, listed a small cottage near the causeway at $250,000, but the seller finally had to accept an offer of only $230,000. When Lane met with the parties, both the buyer and seller asked her to prepare a second contract in the amount of $250,000 for the buyer to get a higher loan for repairs. Is there anything wrong with Lane following an agreed upon deal between the buyer and the seller?
A. No, as long as Lane genuinely believes the house is worth the $250,000, she can submit the contract.
B. No, Florida law allows for this exception to dual-contract prohibitions; the contract reflecting the offer to purchase can stand separate from that submitted for the purposes of financing.
C. Yes, Lane cannot fiduciarily represent both parties in any transaction, including the writing of a second contract.
D. This is mortgage fraud and Lane may be charged, found guilty and punished along with the seller and the buyer.
D. This is mortgage fraud and Lane may be charged, found guilty and punished along with the seller and the buyer.
Any person who violates subsection (2), and the loan value stated on documents used in the mortgage lending process exceeds $100,000, commits a felony of the second degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084
What is the education requirement for obtaining a Florida broker’s license?
A. Complete and pass a Commission approved 50-hour broker’s pre-license course.
B. Complete and pass a Commission approved 115-hour broker’s pre-license course.
C. Complete and pass a Commission approved 16-hour broker’s pre-license course.
D. Complete and pass a Commission approved 72-hour broker’s pre-license course.
D. Complete and pass a Commission approved 72-hour broker’s pre-license course.
Applicants for a broker’s license must complete and pass a Florida Real Estate Commission approved 72-hour Florida broker’s pre-license course.
When a licensee moves from the state of Florida to another state, what must they do?
A. Notify the Department of Business and Professional Regulation of a change in residency within 3 days.
B. Notify the Department of Business and Professional Regulation of a change in residency within 60 days.
C. Notify the Department of Business and Professional Regulation of a change in residency within 30 days.
D. Notify the Department of Business and Professional Regulation of a change in residency within 10 days.
B. Notify the Department of Business and Professional Regulation of a change in residency within 60 days.
Florida law requires that any resident licensee who becomes a nonresident must notify the DBPR within 60 days of the change of state residency. A change of mailing address must be noticed in 10 days.
When applying for the Florida real estate licensure examination, what does a candidate need to submit?
A. A passport
B. An authenticated application; digital fingerprint data; the appropriate fee(s)
C. A high school or college transcript
D. A voter registration card
B. An authenticated application; digital fingerprint data; the appropriate fee(s)
The candidate must submit to the Department: the appropriate signed or electronically authenticated application; digital fingerprint data, and the appropriate fee(s). The digital fingerprints shall be forwarded to the Division of Criminal Justice Information Systems and to the FBI to determine if the applicant has a criminal history record. This information shall then be sent to the Department for the purpose of determining if the applicant is statutorily qualified for examination.
When Rex obtained his Florida sales associate license he misrepresented the facts and concealed that his insurance license in another jurisdiction had been revoked more than 20 years before. Which of the following is a mandated penalty according to Florida law?
A. There is a mandated $1,000 administrative fine, and Rex’s license will be revoked.
B. Rex’s license will be suspended and there will be a fine of $500.
C. The Commission will never allow Rex to become a broker.
D. There is no fine, but there will be an automatic 3-year suspension.
A. There is a mandated $1,000 administrative fine, and Rex’s license will be revoked.
Since there may be mitigating factors, the Commission may specify a lesser period of time for the license revocation. Typically, the salesperson’s license is revoked, and he or she would not be able to apply for a new salesperson’s license for 5 years.
Which of the following is NOT required of an applicant applying for a sales associate license?
A. Hold a high school diploma or equivalent
B. Complete the approved 30-hour sales associate pre-license course
C. Pass the appropriate state exam
D. Submit the application to the Division of Real Estate with the applicable fee
B. Complete the approved 30-hour sales associate pre-license course
The state-approved course is 63-hours and must be fully completed before applying for a sales associate license.
Which of the following MUST be licensed as a real estate sales associate to avoid criminal prosecution?
A. Ali sells his own home without real estate representation.
B. Massa, a court-appointed guardian for a mentally-incapacitated client, accepts a small fee for helping his client with the sale of her home.
C. Roland, attorney-at-law, prepares an abstract of title for his brother in exchange for a modest fee.
D. Ashley, a personal real estate assistant, negotiates a listing on behalf of her employing broker and receives a $500 bonus when the property sells.
D. Ashley, a personal real estate assistant, negotiates a listing on behalf of her employing broker and receives a $500 bonus when the property sells.
Ashley is engaging in the business of real estate and MUST be licensed in order to avoid criminal prosecution. Individuals are exempt from licensure in a number of instances, including; real estate owners, individuals with power of attorney on behalf of a property owner, attorneys performing their legal duties, executors of estates, court-appointed guardians, federal and state officers serving in official capacity, and bankruptcy trustees.
Which of the following unlicensed individuals would be guilty of a third degree felony for violating Florida statutes?
A. The daughter of a couple living abroad with written authorization to sell her parents’ home.
B. An entrepreneur negotiating, for a fee, the sale of a businesses, including equipment and buildings.
C. The licensed director of a property management firm who, as a normal course of business, shows properties around the county.
D. An individual who owns and personally manages a 6-unit apartment building including collecting rents, showing available units, and providing maintenance.
B. An entrepreneur negotiating, for a fee, the sale of a businesses, including equipment and buildings.
A person MUST have a real estate license to sell a building. No license is required to negotiate a sale for which written authorization is given, or to manage one’s own building. By engaging in unlicensed activity, the entrepreneur is in violation of the law and has committed a third degree felony as stipulated by the statutes.
Which of the following is NOT included in a property management agreement?
A. The name and address of the owner and name and address of property manager.
B. The start and end date of the agreement and method and schedule of compensation.
C. Specific services to be rendered.
D. The name and address of the current tenants.
D. The name and address of the current tenants.
A property management agreement must contain: the name and address of the owner and name and address of property manager; the start and end date of the agreement; method and schedule of compensation; specific services to be rendered; legal description of the property; extent of the property managers authority; procedures for reporting on the status of the property; signature of owner and property manager.
Which of the following is NOT one of the 3 requirements for eminent domain to be enforced?
A. The owner must be in full agreement with the reasons for the enforcement.
B. The property owner must be paid compensation for the property.
C. The property must be for the public good.
D. The owner must have due process in the courts.
A. The owner must be in full agreement with the reasons for the enforcement.
Eminent Domain is the right of the government (federal, state and local) to take private property for a necessary public good. To take property from an owner, 3 things must take place: the property owner must be paid compensation for the property.; the property must be for the public good; the owner must have due process in the courts.
If a planning board determines a proposed site does not conform with existing land use plans and zoning ordinances, what steps may the board take?
A. Authorize a variance to the land use plan and zoning ordinances to bring the proposed site into line with the existing local land use plans and zoning ordinances.
B. The board is powerless under these circumstances and has to adopt whatever policy the proposed planning and zoning criteria dictate.
C. Publicize the proposed change of zoning and planning in the hope that the public will demand a reversal from the State Legislature.
D. Either A or C
D. Either A or C
If the Planning board determines a proposed site does not conform with existing land use plans and zoning ordinances, the board may authorize a variance and/or hold a public meeting to authorize the change
Jody is purchasing an empty warehouse in downtown. She told her real estate sales associate that she intends to rehab the building and turn it into a multi-family apartment building. The real estate sales associate cautions her to consult the zoning laws first. Why?
A. Because the warehouse might be subject to regression
B. Because of “trigger terms” in the ordinances
C. Because the warehouse might be subject to rescission
D. Because the ordinances of the area might impose restrictions
D. Because the ordinances of the area might impose restrictions
Zoning ordinances regulate the use of real property by specifying allowable and prohibited uses in order to protect the interests of property owners and provide an aesthetically pleasing community. There are 4 general types of zones: residential, commercial, industrial, and agricultural. Municipal zoning laws govern use and appearance of each zone, and a buffer zone typically separates different zones. Zoning ordinances can be changed and areas can be rezoned by amendment.
A prospective parcel owner in a community must be presented with a \_\_\_\_\_\_\_\_\_\_\_ before executing the contract for sale. A. Copy of the documents B. Chain of title C. Community Budget D. Disclosure of the community
D. Disclosure of the community
A prospective parcel owner in a community must be presented with a disclosure summary before executing the contract for sale.
A purchaser of a newly developed timeshare unit has \_\_\_\_ days in which to cancel the contract A. 15 B. 10 C. 3 D. 5
B. 10
The following statement in a conspicuous font must be located immediately prior to the space in the contract reserved for the signature of the purchaser: You may cancel this contract without any penalty or obligation within 10 days after the date you sign this contract.
The Ben Johnson has homesteaded his home in Melbourne. He purchased the home for $150,000 and is legally blind and a widower. What are his taxes if the city millage is 8 mils, the county millage is 6 mils, and schoolboard taxes are 7 mils? A. $2,100 B. $1,386 C. $2,254 D. $868
C. $2,254
Taxes would be calculated as follows: $150,000 - $1,000 for widower and blind = $149,000 - $25,000 homestead for schools = $124,000 X .007 mils for school taxes = $868.00; $149,000 - $50,000 homestead = $99,000 X .014 (city and county taxes)= $1386 tax for city and county. Total Tax is $2,254.00
What would be Erin's tax savings if she is homesteaded and the millage rate is 8.5 mils for school, 6.5 mils for city, and 4.6 mils for county? A. $212.50 B. $555 C. $980 D. $767.50
D. $767.50
Savings for school tax would be $25,000 X .0085 = $212.50 savings; Savings for City and County tax = $50,000 X .0111 mils = $555.00 savings. Total tax savings are $767.50
3 separate claimants obtain civil judgments against a single licensee. Which of the following is NOT a restriction on payments from the Recovery Fund placed by the statutes?
A. Court costs and attorneys’ fees may be reimbursement from the Recovery Fund.
B. No more than $150,000 in the aggregate can be awarded for claims against a single licensee.
C. Claimants must have a judgment from the appropriate civil court in order to be eligible for a payment from the Recovery Fund.
D. Any monies recovered from other sources must be applied to the total amount awarded by the court and will reduce the payment from the Recovery Fund.
A. Court costs and attorneys’ fees may be reimbursement from the Recovery Fund.
The maximum aggregate payment from the Recovery Fund for multiple claims against a single licensee is $150,000. Claimants must have a judgment from the appropriate court in order to be eligible for payment from the Recovery Fund, and any monies already received as damages must be applied to reduce the payment from the Fund. Treble damages, court costs, attorneys’ fees, and interest cannot be recovered from the Fund.
A broker has had his license suspended for failure to properly market his listings. The Whitfields obtain a civil court judgment against him for the damages resulting from his action. Which of the following represents the maximum Recovery Fund payment authorized by the updated statutes for this situation? A. $25,000 B. $50,000 C. $75,000 D. $150,000
B. $50,000
The maximum payment from the Recovery Fund to 1 person or from 1 transaction is $50,000, or an amount equal to the judgment against the broker or sales associate, whichever is less.
A broker has had his license suspended for misrepresentation. Which of the following is TRUE?
A. All of his affiliated licensees will have their licenses suspended, too.
B. All of his affiliated licensees will become involuntarily inactive.
C. All of his affiliated licensees will be assigned to another broker.
D. All of his affiliated licensees will continue to be active with his brokerage until they move to new brokerages.
B. All of his affiliated licensees will become involuntarily inactive.
When the Commission suspends or revokes a broker’s license, all licensees under that broker become involuntarily inactive pending their affiliation with a new broker or until the broker’s license is reinstated.
After a long dispute with a bankrupt and corrupt Florida broker, the Gonzalez family was awarded a judgment for $12,500 in actual damages and $87,500 in punitive damages, for a total of $100,000. They were then surprised find that the Real Estate Recovery Fund would not cover all $100,000. Which of the following is TRUE?
A. The Real Estate Recovery Fund is expressly limited to only actual, not punitive damages. Therefore only $12,500 would be available for recovery in this case.
B. The Real Estate Recovery Fund only applies to 1 transaction, therefore the Gonzalez family has to choose which has the most value.
C. Regardless of the number of transactions, the fund is limited to a maximum of $50,000 per claimant.
D. The Fund is not available to claimants once a judgment has been reached.
A. The Real Estate Recovery Fund is expressly limited to only actual, not punitive damages. Therefore only $12,500 would be available for recovery in this case.
The Real Estate Recovery Fund only reimburses actual damages, not punitive awards. Treble damages, court costs, attorney’s fees, and interest shall not be recovered from the fund.
Beth wanted a new entrance sign to her brokerage. She took the old sign down, but following a problem with the supplier, after 2 months still hadn’t put up a new one. Beth received a citation for not having a proper entrance sign displayed. If Beth wants to dispute the citation which of the following is TRUE?
A. Beth’s citation is automatically made part of the docket on the next Commission meeting, and as a licensed broker she may attend that meeting and be recognized if she so desires.
B. Beth must pay the fine “on provision” and include a request for a hearing at the next Commission meeting.
C. Beth may dispute the citation within 60 days of being served.
D. Beth may dispute the citation within 30 days of being served.
D. Beth may dispute the citation within 30 days of being served.
Florida Real Estate law provides for a licensee to dispute a citation within 30 days of receiving the served citation. After the 30-day limit the citation becomes a final order and constitutes discipline.
What is a “No Brokerage Relationship”?
A. The broker does not represent either party in the transaction
B. The broker does not represent the one of the parties in the transaction.
C. The broker does not represent the seller in the transaction.
D. The broker only represents the lender in the transaction.
B. The broker does not represent the one of the parties in the transaction.
A “No Brokerage Relationship” is when the broker does not represent one party in the transaction. This type of relationship may occur when the seller is a FSBO, or the buyer/seller do not wish to be represented on one side of a deal where a single agency exists. There is no fiduciary responsibility, however the requirement for disclosure of material defects and accounting for all funds are still required.
When Ang, owner and principal broker for ABC Realty, helped his niece Seria purchase a property, he did not have Seria sign a disclosure form. According to Florida law, what kind of brokerage relationship will Ang have with his niece?
A. Ang will automatically be considered a single agent for his niece under implied agency.
B. Because Ang was an uncle, he will be a designated agent, representing only his niece.
C. Because nothing was signed, the only way for Ang to help his niece is to enter into what is referred to as a “no brokerage relationship.” He did nothing wrong.
D. Because no brokerage relationship was established in writing with his niece, Ang was operating as transaction broker.
D. Because no brokerage relationship was established in writing with his niece, Ang was operating as transaction broker.
Florida statutes states that “all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with the customer.”
Which best describes a subagent in Florida?
A. A broker represents a seller or buyer as an agent in any capacity - the sales associates and broker associates under the broker are automatically considered sub-agents to the principals.
B. A seller hires A1 Realty to sell his property. The broker at A1 passed the listing on to a second broker at another brokerage firm - Sun Realty.
C. A seller hires A1 Realty to sell his property. The broker at A1 lists the property and a broker at Sun Realty brings a buyer he represents.
D. A seller asks A1 Realty to list his property but doesn’t sign an agreement. The broker at A1 brings a buyer and represents the buyer.
A. A broker represents a seller or buyer as an agent in any capacity - the sales associates and broker associates under the broker are automatically considered sub-agents to the principals.
A Subagent is one works under the agent (who is always the broker) for the principal. They assume all of the fiduciary responsibilities of the agent
Which of the following duties does a transaction broker owe their customer?
A. Obedience
B. Limited Confidentiality
C. Full disclosure
D. Ensuring that the title to a property is good.
B. Limited Confidentiality
A transaction broker does not owe fiduciary to a customer and must provide limited confidentiality to both sides (if representing such) in a real estate transaction.
Which of the following regarding a sales associate acting as a transaction broker is FALSE?
A. Florida statue presumes that all licensees are working as transaction brokers.
B. The licensee can change from single agent to transaction broker during the transaction.
C. The main goal is to produce a sale between the buyer and seller.
D. Transaction brokers are not entitled to commissions over 5%.
D. Transaction brokers are not entitled to commissions over 5%.
Florida statutes presume that, in the absence of a signed agreement for single agency or no brokerage relationship, all sales associates are working as transaction brokers serving to represent all parties in a limited manner and produce a sale between the buyer and the seller. Transaction brokers provide limited representation to both parties, and a sales associate originally working as a buyer’s agent or seller’s agent can, with the written consent of both parties, transition to a transaction brokerage relationship in order to assist both parties.
A broker has just secured a new listing. If he wants to erect a “For Sale” sign on the property, what must he do first?
A. The broker must secure a permit with the local municipality according to their rules of signage.
B. The broker must secure a buyer for the property.
C. The broker must petition the property’s immediate neighbors for their permission.
D. The broker must get the property owner’s permission to do so.
D. The broker must get the property owner’s permission to do so.
A broker who wishes to place a “For Sale” sign on a listed property must first obtain the owner’s permission.
A broker with a list of rental properties acting as information broker for a tenant must give the tenant a 1 page contract specifying what?
A. Specifying that the tenant has the right to request a refund of 50% of the fee if the tenant does not find a rental; and the right to request a refund of 75% of the full fee if the information is inaccurate.
B. Specifying that the tenant has the right to request a refund of 75% of the fee if the tenant does not find a rental; and the right to request a refund of 100% of the full fee if the information is inaccurate.
C. Specifying that the tenant has the right to request a refund of 25% of the fee if the tenant does not find a rental; and the right to request a refund of 50% of the full fee if the information is inaccurate.
D. Specifying that the tenant has the right to request a refund of 10% of the fee if the tenant does not find a rental; and the right to request a refund of 20% of the full fee if the information is inaccurate.
B. Specifying that the tenant has the right to request a refund of 75% of the fee if the tenant does not find a rental; and the right to request a refund of 100% of the full fee if the information is inaccurate.
When a broker maintains a list of rental property and acts as an information broker to a tenant, the FREC requires that he give the tenant a 1 page contract specifying that the tenant has the right to request a refund of 75% of the fee (if requested within 30 days) if the tenant does not find a rental; and the right to request a refund of 100% of the full fee (if requested within 30 days) if the information is inaccurate.
A licensed sales associate accepted a deposit check from a buyer late on Friday evening. So that the check would not be lost, she deposited it into her personal bank account. Is this wrong?
A. No, because the intent was to protect the funds by placing them into a bank account for safe keeping.
B. No, as long as she informed the buyer she was going to do so.
C. Yes, it is against Florida real estate statutes to do so.
D. Yes, unless the buyer asked her to keep the funds in her account until such time as the contract had been accepted by the seller.
C. Yes, it is against Florida real estate statutes to do so.
A sales associate depositing a buyer’s down payment into his or her personal bank account is in breach of the law and may face discipline form the FREC.
Beacon Real Estate has signed agency agreements with the Platts and the Browns. The Browns like the Platts’ home and want to make an offer. Can Bacon Real Estate represent both parties?
A. Yes, because both parties have signed a written agency agreement.
B. Yes, if the Platts are represented by two separate agents.
C. Yes, if the Platts and Browns both understand and accept Providence acting in a dual agency capacity.
D. No, because no Florida real estate broker may act as a dual agent.
D. No, because no Florida real estate broker may act as a dual agent.
Disclosed dual agency (representing both buyer and seller at the same time with the consent of both) is forbidden in Florida.
Cody bought a house in the fall which was found to have a leaky roof during the following spring’s rainstorms. The sellers had discussed the roof leaks with transaction broker, but the transaction broker decided not to divulge those details to the Cody and now claims Cody did not specifically ask about the roof. Which is TRUE?
A. Since he did not specifically ask about the roof before buying the property, Cody has no legal redress in this situation.
B. The broker can be held responsible for not sharing information about the roof with Cody.
C. The sellers are liable for not disclosing the details of the leaky roof.
D. Both B and C
D. Both B and C
The broker has a duty to disclose this Material Defect, and the seller will be responsible as they did not disclose the leaky roof themselves.
Deep Lake Realty has entered written agency agreements with each of the seller and a prospective buyer. If the buyer is interested in making an offer on the sellers’ property, may the brokerage comply?
A. Yes. Deep Lake Realty may act as a dual agent for both parties.
B. Yes. However, each party MUST sign a consent to transition to transaction broker or one party sign a non-representative agreement.
C. Yes. Deep Lake Realty may represent the sellers as a single agent and the buyer as a subagent.
D. The type of agency described in this scenario is expressly prohibited.
B. Yes. However, each party MUST sign a consent to transition to transaction broker or one party sign a non-representative agreement.
The seller and buyer each MUST sign an agreement to transition to Transaction Broker or one must sign a no brokerage relationship agreement. Then, the broker may act for both sides.
Sales associate Rory, a single agent for the seller, meets Ben, a buyer, at an open house. Ben likes the open house property he inquires about making an offer on it. He isn’t working with a real estate sales associate and prefers to handle his own affairs. Rory represents the seller. What type of brokerage relationship agreement does Rory need to have Bens sign before proceeding?
A. A single (buyer’s) agency agreement
B. A dual agency agreement
C. A transaction broker agreement
D. An agreement that no brokerage relationship exists
D. An agreement that no brokerage relationship exists
As the listing agent, Rory represents the seller as principal. Although it’s possible for Rory to represent both buyer and seller as a transaction broker (with the seller’s written agreement), because Ben prefers to manage his own negotiations, Ben is therefore a customer with whom no agency relationship exists. Dual agency is not allowed in Florida. At the first substantial contact - in this case, the open house - the real estate sales associate is required to provide a written notice of disclose that they do not represent the buyer’s interests.
Sales associate Tori is representing both the buyers (the Yorks) and the sellers (the Applegates). Which of the following actions may Tori legally take?
A. Tell the Applegates that the Yorks are willing to pay more than their offer of $210,000.
B. Tell the Yorks that the house previously had a termite infestation which has been treated and corrected.
C. Tell the Yorks that the Applegates will accept $6,000 less than the asking price.
D. Tell the Applegates that the Yorks have to find a house to buy at very short notice because Mr. York is having to relocate for work.
B. Tell the Yorks that the house previously had a termite infestation which has been treated and corrected.
A salesperson working as a transaction broker provides limited representation to both parties in a transaction. The licensee owes both parties the duties of honesty and fairness, accounting for all funds, skill and care, disclosure of all known material facts, timely presentation of offers and counteroffers, limited confidentiality, and any additional duties specified in the agency agreement. Unless the buyer or seller waives their right to limited confidentiality, salespersons must keep confidential any information regarding a buyer or seller’s willingness to pay more/accept less, motivation for buying/selling, and any other information the parties would wish to remain confidential.
How would a broker change the registered name of his real estate brokerage?
A. Register the name change with the Association of Realtors
B. Register the name change with the Division of Real Estate
C. Register the name change with the Secretary of State, Division of Corporations
D. Both B and C
D. Both B and C
When changing the registered name of a real estate brokerage, it must first reflect with the Secretary of State, Division of Corporation as a name change. Upon the change of name with the Division of Corporations, the name change must be registered with the Division.
If a broker receives funds from a client, how long does he have before he must deposit those funds into an escrow or trust account? A. 3 business days B. 24 hours C. 10 business days D. 7 business days
A. 3 business days
When a broker receives money to be deposited in an escrow account, he must deposit it immediately within 3 business days.
Ralph is a sales person with Sunlight Real Estate Brokers and when he shows his client Ben a property listed by Xavier Realty, Ben decides to make an offer on the property. Ralph notices that Ben has written the earnest money deposit check to be made payable to the wrong name. Which of the following statements do not constitute an appropriate corrective action?
A. Because Ben wrote the check payable to Ralph, Ralph may ask the buyer to change the name on the check to the applicable escrow holder depicted in the contract.
B. Because Ben wrote the check payable to Ralph, Ralph may endorse the check over to the applicable escrow holder.
C. Because Ben wrote the check payable to Ralph, Ralph should return the check to Ben and request he make out a new check.
D. Because Ben wrote the check Sunlight Real Estate, Ralph should simply follow procedure and deliver the paperwork and the check to his employing broker.
D. Because Ben wrote the check Sunlight Real Estate, Ralph should simply follow procedure and deliver the paperwork and the check to his employing broker.
The purchase and sale contract indicates how the buyer’s check should be made out before it is written. Any check made out incorrectly should be remanded to the escrow company
To comply with the statutes, which of the following actions must broker Haley take when she moves her office from Winter Park to Sanford?
A. She must file a change of address notice with the local post office. The post office will then notify the Commission of the move, so Haley’s licensing renewal form will be forwarded to her new address.
B. She must notify the Commission within 10 days of her change of address by sending the required form along with a list of licensees no longer associated with the firm.
C. She must send notification of the move on brokerage letterhead to the Commission by certified mail.
D. She must notify the Commission within 1 month of the move and include a list of current affiliated associates.
B. She must notify the Commission within 10 days of her change of address by sending the required form along with a list of licensees no longer associated with the firm.
Upon change of address, a broker must send a change of address form to the Commission within 10 days of the move. The broker must also include a list of licensees no longer associated with the brokerage in order to fulfill the change of address notification requirement for licensees who remain with the brokerage. Failure to comply will cause the broker’s and all associates’ licenses to expire.
Valencia, a real estate sales associate, is developing a website to promote her services. Which of the following CAN she post on her site?
A. An old house needs a lot of refurbishment including updating fixtures, exterior and interior painting and repairs to flooring. Valencia lists this property in the bargain section of her website, calling it a “fixer upper - perfect for an owner with home repair skills.”
B. An unusual house with 2 full kitchens located in a residential zone. Valencia describes it on her website as “the perfect site for a catering business or bakery.” She’s aware that previous requests for special use permits on the property have been rejected.
C. Valencia groups her residential listings by top-rated school districts, with a tiny disclaimer at the bottom of the web page that says “all properties are within 5 blocks of the school district mentioned but some may fall within the boundaries of neighboring school districts rather than those listed.”
D. An apartment complex near a university campus ensures boisterous activity throughout the week. Targeting students not familiar with the campus area, Valencia describes the complex as a “scholar’s haven with a studious atmosphere with all the amenities of campus life.”
A. An old house needs a lot of refurbishment including updating fixtures, exterior and interior painting and repairs to flooring. Valencia lists this property in the bargain section of her website, calling it a “fixer upper - perfect for an owner with home repair skills.”
Intentionally misleading or misrepresenting properties in the course of selling or leasing real estate violates Florida statutes. Leading prospective buyers to believe incorrectly that a property falls within the boundaries of a certain school district, misrepresenting a residential property as a commercial gem, or promising a quiet student atmosphere in what is renowned as a noisy area are all intentionally misleading to facilitate a sale.
Which of the following brokers is in violation of the Florida statutes regarding brokerage signage?
A. Jimmy of Fern Park Realty has established his brokerage office in the basement of his house. The space has a separate entrance and an exterior sign which displays the business name, Jimmy’s name and licensee status. The sign is visible to anyone who parks in his driveway.
B. Florida broker Deborah has established an office in Georgia. She has agreed, in writing, to cooperate with the FREC in any investigations.
C. Broker Alana has her office in her condominium. The condo association prohibits owners from displaying any materials on their doors, so Alana has her business sign posted on the inside of her condo door, which is visible to clients as soon as they enter.
D. Luke, a licensed broker, with a year’s lease for office space in a storefront of a busy commercial strip. The sign visible above the storefront says “Pine Hills Realty, Luke Price, Lic. Real Estate Broker”.
C. Broker Alana has her office in her condominium. The condo association prohibits owners from displaying any materials on their doors, so Alana has her business sign posted on the inside of her condo door, which is visible to clients as soon as they enter.
Office signs are required by law rather than rule. Signage must be visible to anyone about to enter the broker’s office and must clearly state the name of the agency, broker’s name, and the broker’s designation as licensee (either “Licensed Real Estate Broker” or “Lic. Real Estate Broker”). Since Alana has the sign posted in the interior of her condo, clients won’t be able to view the sign before entering her office and so she is in violation of the law.
Over which of the following situations does the Florida Real Estate Commission NOT have authority?
A. Prosecuting a real estate assistant for engaging in unlicensed activity.
B. Imposing a fine of $1,000 and revoking the license of a licensee for fraudulent management of an escrow account.
C. Assessing special fees on new and renewal licenses for the Recovery Fund.
D. Providing for circumstances under which a broker may independently disburse funds from escrow accounts.
A. Prosecuting a real estate assistant for engaging in unlicensed activity.
Engaging in the practice of real estate without a license is a third-degree felony, which is a criminal case and not under the oversight of the FREC. However, the FREC can discipline licensees for license law infractions, including suspension and revocation of licenses and the imposition of fines. It also has jurisdiction over the Recovery Fund and may levy special fees, and the FREC may also specify circumstances under which a broker is allowed to disburse funds from escrow accounts.
What does DBPR stand for and what is the DBPR’s purpose?
A. The Department of Business and Public Relations. The agency is charged with promoting licensed businesses and professionals in the state of Florida.
B. The Department of Building and Professional Realty. The agency is charged with approving new construction projects in the state of Florida.
C. The Department of Building and Pollution Regulation. The agency is charged with lowering toxic pollutants within the state of Florida.
D. The Department of Business and Professional Regulation. The agency is charged with licensing and regulating businesses and professionals in the state of Florida.
D. The Department of Business and Professional Regulation. The agency is charged with licensing and regulating businesses and professionals in the state of Florida.
The Department of Business and Professional Regulation. The agency is charged with licensing and regulating businesses and professionals in the State of Florida.
Mario signed an exclusive right of sale listing with Paula to sell his apartment complex. After a few weeks Mario cancelled the listing agreement and contacted an auction house to turn the property quickly. Paula feels she is owed a commission. Is she correct?
A. Yes, Paula is entitled to a commission because Mario has entered into an agreement with another broker.
B. Yes, but only if Mario or his auction house can find a buyer for the property before the expiration date specified in the original listing agreement.
C. No, because Paula did not meet the conditions for payment of commission before the cancellation of the agreement.
D. Yes, because Paula did so much work for Mario before he decided to cancel the contract.
C. No, because Paula did not meet the conditions for payment of commission before the cancellation of the agreement.
Paula did not earn the commission for bringing a ready, willing and able buyer. As a broker, depending on the terms of the listing, Paula may be entitled to damages for out-of-pocket expenses incurred while marketing the apartment complex before Mario cancelled the agreement. Such expenses include advertising.
Rick has his property on the market FSBO and his neighbor Christin is a sales associate. Christin told Clem, an agent from another realty company, that she is the listing agent on Rick’s property. Clem shows the house, finds a buyer, and lists Christin as the listing agent for the house. All parties agree to the terms of the purchase contract, including the commission to be paid to Christin. Later Rick contests the contract saying that Christin never represented him and is not entitled to a commission. Is Christin eligible for the commission?
A. Yes, since the buyer believed she was the listing agent.
B. Yes, the house would not have sold without her assistance.
C. No, because No listing agreement existed to pay the listing side.
D. No, Clem is the sales associated entitled to a commission.
C. No, because No listing agreement existed to pay the listing side.
A listing agreement is a contract that defines the relationship between the real estate brokerage and the seller, specifying the services to be provided by the brokerage, and the amount of commission to be paid at closing. There may be a problem with paying a buyer commission as well as the listing agreement would show compensation for the buyer or cooperating broker as well - unless the buyer brokerage agreement allowed for payment.
Which of the following is an example of an illegal restrictive covenant?
A. Pete owns a house that has a restrictive covenant preventing him from erecting a fence that is taller than 6 feet.
B. Susan lives in a historical section of town and the deed to her property includes a restrictive covenant that prohibits her from making changes to the architectural style of her home.
C. A subdivision developer has included restrictive covenants in the deeds for all properties that limit ownership to persons with Latino heritage in order to advance the ethnic culture of the community.
D. Gabriella is selling her vacation home and she alerts potential buyers that the property deed contains a restrictive covenant that dictates the appearance of all outbuildings and fences.
C. A subdivision developer has included restrictive covenants in the deeds for all properties that limit ownership to persons with Latino heritage in order to advance the ethnic culture of the community.
Restrictive covenants, also known as deed restrictions, limit the use of land in certain ways. For example, legal restrictive covenants may specify the size or type of improvements that an owner is allowed to make on the property. However, restrictive covenants that violate laws are illegal, and a covenant that specifies the ethnicity of future owners violates the Fair Housing laws.
Which of the following types of advertisements is in violation of the law?
A. Verbiage that says “treed lot with ample shade from hot sun” to refer to a house with a lone oak tree shading the north side of the house.
B. Advertisement that says “low, low closing costs.”
C. Newspaper ad aimed at childless couples.
D. A ‘for sale’ flyer that mentions the price of the property and the APR without any additional mention of credit terms or financing options.
C. Newspaper ad aimed at childless couples.
Licensees may NOT discriminate against any particular race, color, religion, national origin, sex, handicap, or families with children in advertising. All advertising must be done in the name of the real estate firm and may not imply that it is the ad of a private party. Although eloquent verbiage is allowed, an ad may not misrepresent the property in any way that would not be obvious to potential buyers. Regulations requires full disclosure of loan terms if any information about credit terms, beyond APR and price of property, are given.
Salesperson Jerri helped her sister Summer get a job with Calhoun Title Company. As a way of saying thanks, Summer sends Jerri a $200 referral fee from the Title Company for every transaction that Jerri closes through Calhoun Title. Knowing Florida real estate law, Jerri had a lawyer friend add a phrase in her sale and purchase documentation stating that the buyer “agrees to use Calhoun Title Co.” Which of the following statements is accurate regarding this situation?
A. This is a RESPA violation and Jerri and Summer’s company may be fined and punished as the law allows.
B. Jerri thought ahead by having a lawyer add the phrase to her documents, so she would not be subject to discipline by the FREC.
C. Because Jerri has officially and legally “notified the buyer” of the use of Calhoun Title, Jerri can receive this form of “thank you” without a conflict of interest.
D. Because the buyer has been informed in writing as part of the contract form, Jerri has fulfilled her obligations of disclosure and is free to accept the referral fees.
A. This is a RESPA violation and Jerri and Summer’s company may be fined and punished as the law allows.
Jerri may be disciplined for putting such a clause in her standard contract as Title Services are shoppable by a buyer and cannot be mandated. In addition, the RESPA prohibits title companies from paying referral fees, so everyone is in the wrong on this.
Buena Vista School of Real Estate is eager to bolster its student body, so it designs a new advertising campaign. Which of the following practices would be a violation of the statutes?
A. Publishing the credentials of its instructors
B. Advertising the school’s affiliation with local broker Raymond Stolt
C. Guaranteeing a high pass percentage on the state exam
D. Lauding the progressive methods of instructors who have won awards for their instruction
C. Guaranteeing a high pass percentage on the state exam
A real estate school is allowed to advertise in connection with an affiliated broker and advertise a pass-fail ratio on the state exam. All advertising and publicity must be factual and supported by evidence. Misleading or exaggerated claims and guarantees of success on exams or offers of employment violate the law.
How would a broker change the registered name of his real estate brokerage?
A. Register the name change with the Association of Realtors
B. Register the name change with the Division of Real Estate
C. Register the name change with the Secretary of State, Division of Corporation
D. Register the name change with the Better Business bureau
C. Register the name change with the Secretary of State, Division of Corporation
When changing the registered name of a real estate brokerage, it must first reflect with the Secretary of State, Division of Corporation as a name change. Applying for a new registration with the Division of Corporation is a new registration with the DBPR, Division of Real Estate and NOT a name change.
Is the holder of a 4-year degree in real estate exempt from the pre-licensing courses?
A. No, all applicants must take the pre-licensing courses regardless of educational background.
B. Yes, applicants with a 4-year real estate degree are exempt from both the sales associate and broker pre-licensing courses.
C. No, applicants with a 4-year real estate degree are NOT exempt from the sales associate pre-licensing course but ARE exempt from the broker pre-licensing course.
D. No, applicants with a 4-year real estate degree ARE exempt from the sales associate pre-licensing course but are NOT exempt from the broker pre-licensing course.
B. Yes, applicants with a 4-year real estate degree are exempt from both the sales associate and broker pre-licensing courses.
Individuals with a 4-year real estate degree are exempt from the 63-hour pre-licensing sales associate course and the 72-hour pre-licensing broker course, but must make application and take the state exam. Applicants with a 4-year real estate degree must include an official transcripts with their application.
Of the following, which is NOT a proof of experience requirement for a sales associate license holder wishing to become a broker license holder?
A. Has been registered as an active sales associate for at least 24 months during the preceding 5 years.
B. Has sold at least $850,000 in real estate value during the preceding 5 years.
C. Has held a current and valid real estate sales associate’s license for at least 24 months during the preceding 5 years in the employ of a governmental agency for a salary.
D. Has held a current and valid real estate broker’s license for at least 24 months during the preceding 5 years in any other state of the United States, or in any foreign national jurisdiction.
B. Has sold at least $850,000 in real estate value during the preceding 5 years.
Applicants wishing to upgrade from sales associate to broker license must show proof of 1 of the following: has been registered as an active sales associate for at least 24 months during the preceding 5 years; has held a current and valid real estate sales associate’s license for at least 24 months during the preceding 5 years in the employ of a governmental agency for a salary; has held a current and valid real estate broker’s license for at least 24 months during the preceding 5 years in any other state, territory, or jurisdiction of the United States, or in any foreign national jurisdiction.
Under which of the following circumstance may a licensed sales associate hold a concurrent license with more than 1 Florida broker?
A. Under no circumstances
B. With the permission of his or her first broker relationship
C. With the written consent of both brokers being represented
D. under a group license
A. Under no circumstances
A sales associate may be affiliated with only 1 broker in Florida. A group license only allows a sales associate to work under a developer who operates under different corporate names.
What are the continuing education requirement to renew a both a sales associate and a broker license AFTER the initial renewal?
A. 14 hours of continuing education every 2 years for sales associate, 8 hours being specialty and 3 hours on law for each year.
B. 14 hours of continuing education every 2 years with attendance at a FREC meeting covering law
C. 14 hours of continuing education with 3 hours of ethics and 3 hours of law, where attendance at a FREC meeting may count for specialty training.
D. 28 hours of continuing education if the license has been involuntary inactive for any portion of the 2 years.
C. 14 hours of continuing education with 3 hours of ethics and 3 hours of law, where attendance at a FREC meeting may count for specialty training.
Sales associates and brokers are required to complete 14 hours of continuing education with 3 hours of that education covering real estate law, and 3 hours of that education covering ethics. Either may also attend a FREC meeting (provided they have made arrangements and receive 3 hours of specialty credit for continuing education.
What is the correct term for a Florida real estate licensee working under the direction of a broker?
A. Real estate sales associate or broker associate
B. REALTOR Associate or Associate broker
C. Real estate salesperson broker/salesperson
D. Associate REALTORS
A. Real estate sales associate or broker associate
Revisions to the Florida statutes changed the designation of “salesperson” to “sales associate” and those who are licensed as brokers but choose to work under a managing broker as “broker associates” so licensees are referred to in those terms.
A mortgage in Florida may not contain both a prepayment penalty clause and which of the following? A. An acceleration clause B. An escalation clause C. An exculpatory clause D. A due-on-sale clause
D. A due-on-sale clause
Florida law stipulates that mortgages may not contain BOTH a prepayment penalty clause and a due-on-sale clause. Including both clauses would effectively cancel each clause out.
Eve and her husband Adrian have homesteaded property. Adrian owns investment real estate in severalty and has expressed his desire that his investment property would go to his friend Rex. When Adrian dies testate, which of the following statements is TRUE regarding the situation?
A. Adrian died without a will, so Rex will not inherit the property.
B. Eve owns the principal residence in severalty and 50% of the investment property.
C. Eve automatically has 100% interest/ownership in the principal residence. She may also file for an elective share of the investment property. Rex would be entitled to the investment property by reason of the will.
D. Florida is a community property state, so Eve would be entitled to half of all the property that Adrian owned, whether or not he left a will.
C. Eve automatically has 100% interest/ownership in the principal residence. She may also file for an elective share of the investment property. Rex would be entitled to the investment property by reason of the will.
Eve, as the surviving spouse, is already entitled to a life estate in the homestead. An elective share consists of 30 percent of the decedent’s net estate. Florida is a common law state, NOT a community property state. Testate means to die WITH a will.
John signed a 1-year lease for a home from Miller in a county where the codes require properties to maintain a number of basic standards in order to be legally inhabited. After a severe storm, John noticed the tap water pressure had gone and now only gave a rusty trickle. John notified Miller but Miller said it was “county water problems.” After 6 weeks, John confronted Miller about the ongoing water problem and Miller admitted it was a problem with broken pipes within the property. Miller said he would fix the pipes, but that he would also have to raise Johnson’s rent $50/month help cover the cost. Which is TRUE?
A. Miller can legally raise the rent to cover the cost of the repairs, because the Florida Landlord and Tenant act prohibits such actions only in multi-unit properties.
B. Miller can legally raise the rent, because the implied consent law says that landlords of properties of any size may share the burden of critical repairs with tenants when those repairs are to meet code standards.
C. Unless Johnson specifically noted in the lease that she would not be responsible for critical repairs to the property, Miller can raise her rent until the cost of the water pipe repairs is amortized.
D. Once the monthly rent was established in the lease, and signed by the parties, Miller cannot raise the rent before the end of the year’s term, regardless the nature of the emergency.
D. Once the monthly rent was established in the lease, and signed by the parties, Miller cannot raise the rent before the end of the year’s term, regardless the nature of the emergency.
Miller is obligated to provide fresh running water to the property, by code. John not only could file with the county to mandate the enforcement of the code regarding running water, he could also sue Miller in civil court.
Planning and zoning is implemented for various reasons. Which of the following is NOT a goal of planning and zoning?
A. Preventing urban sprawl
B. Adding value to existing real estate in a particular area
C. Added protection against costly drainage or flooding issues
D. The adequate provision of services such as fire and police
B. Adding value to existing real estate in a particular area
The goals of planning and zoning include: savings of tax money by preventing urban sprawl; adequate provisions of services such as fire, police and libraries; providing for road right-of-ways and set backs; protection against costly drainage, flooding or environmental problems; protection for the public from harm in building; reduction in political and equity problems in landfills, prisons etc.; reduction in cost for major catastrophes such as earthquakes, tornados and fire.
Private home ownership in Florida is subject to which of the following?
A. Government interference called S.T.O.P.
B. Government interference called P.E.T.E.
C. Government interference called P.L.A.N.K.
D. Government interference called H.O.M.E.
B. Government interference called P.E.T.E.
Private home ownership in Florida is subject to government interference called P.E.T.E., an acronym for: Police Power, Eminent Domain, Taxation, Escheat.
Melinda is purchasing a condo. When she originally saw it she told her sales associate to be sure to ask the seller to leave the unattached bookcases with the property. However, this stipulation was not included in the written agreement nor was it communicated to the seller. Which of the following is TRUE?
A. The bookcases will convey with the condo.
B. The bookcases do not convey with the property.
C. The purchase agreement is voidable by the buyer.
D. The buyer is entitled to payment from the Recovery Fund.
B. The bookcases do not convey with the property.
According to the parol evidence rule( which excludes any prior verbal or written evidence not specified in the contract) the bookcases will not convey with the condo. This would be a circumstance in which neither the real estate sales associate nor the buyer was careful in constructing and approving the contract.
Which of the following is NOT one of the 5 major zoning classifications of property? A. Agricultural property B. Commercial property C. Scientific property D. Industrial property
C. Scientific property
The 5 major zoning classifications of property are: residential; commercial; industrial; agricultural; special purpose property.
With a high percentage of absentee owners, Florida places a higher premium on property management than other states. Which of the following best describes a property manager in Florida?
A. A property manager preserves the value of an investment (by an owner) while generating income as an agent for the owner.
B. A property manager preserves the value of an investment (by an owner) while maximizing vacancy.
C. A property manager ensures the functionality an condition of a property to ensure tenant satisfaction.
D. A property manager mediates between landlord and tenant to negotiate rent and settle disputes.
A. A property manager preserves the value of an investment (by an owner) while generating income as an agent for the owner.
Property managers are licensed Florida real estate brokers who, under law, have certain specific duties and services to the owner. A property manager is defined as one who preserves the value of an investment (by an owner) while generating income as an agent for the owner.
Jonie purchased her home for $380,000. What are the Stamp Taxes on the Deed A. $1,330 B. $2,660 C. $266,000 D. $1,700
B. $2,660
Stamp taxes on the deed are calculated as 70 cents per $100. 380,000 ÷ 100 X .7 = $2,660.00
The Ericsons purchased their home on November 14th for $255,000. They obtained an 60% mortgage and assumed a second from the sellers in the amount of $49,000. What did they pay in taxes on the Notes? A. $1,013 B. $1,414 C. $707 D. $892.50
A. $1,013
New Note at $255,000 at 60% = $153,000; $153,000 plus $49,000 = $202,000 ÷100 X .35 = $707.00 stamp tax on the mortgages, intangible tax on the new mortgage $153,000 X .002 = $306.00. Total Taxes = $1013.00
Following a disciplinary hearing, the Commission rules against a licensee. What, if any, action may the licensee the take?
A. The licensee may appeal within 90 days to the High Court.
B. The licensee may appeal within 30 days to the District Court of Appeals.
C. The licensee may not appeal the Commission’s decision.
D. The licensee may appeal within 30 days to the HUD.
B. The licensee may appeal within 30 days to the District Court of Appeals.
The licensee may appeal to the courts if the FREC did not rule in his favor. The licensee must appeal within 30 days to the District Court of Appeals. While the case is under appeal, the licensee may receive a stay enforcement (stop enforcement) against the FREC.
If a consumer files a complaint against a licensee with the FREC, will the FREC make the complaint public?
A. Yes, the FREC will immediately make public a complaint filed against a licensee.
B. No, the FREC will never make public a complaint filed against a licensee.
C. If probable cause is found the case will be made public after 10 days.
D. If probable cause is found the case will be made public after 60 days.
C. If probable cause is found the case will be made public after 10 days.
A complaint is not made public until 10 days after the finding of probable cause. If probable cause is not found the case will remain confidential.
If a licensee receives a criminal conviction, what must he or she do to avoid disciplinary action by the Department?
A. Report the criminal conviction within 30 days to the Department.
B. Report the criminal conviction within 60 days to the Department.
C. Report the criminal conviction within 30 days to the Association of Realtors.
D. Report the criminal conviction within 60 days to his or her broker.
A. Report the criminal conviction within 30 days to the Department.
Failure to report a criminal conviction, a plea of nolo contrendere or a misdemeanor conviction within 30 days may result in disciplinary actions against the licensee. The licensee must report to the department if convicted regardless of adjudication. This applies to action by any jurisdiction.
License law requires that brokers must keep careful, exact records of all money in trust accounts. A broker who fails to reconcile an escrow account, even though the account balances, would be subject to what?
A. A $1,000 fine
B. Completion of a 14-hour escrow management course
C. A $300 fine and completion of a 2-hour escrow management course
D. A $100 fine and completion of a 4-hour escrow management course
D. A $100 fine and completion of a 4-hour escrow management course
If a broker fails to reconcile an escrow account properly, but the account balances, the broker is subject to a $100 fine and must take a 4-hour escrow management course.
Marhall has a court order against a bankrupt broker for $75,000 in damages caused by the broker's misconduct. How much will Marshall receive from the Recovery Fund? A. 50% of $75,000 B. $50,000 C. $75,000 D. $75,000 plus 12% interest
B. $50,000
Payments from the Recovery Fund for claims arising out of the same transaction are limited, in total, to $50,000 or the unsatisfied portion of a judgment claim, whichever is less, regardless of the number of claimants or parcels of real estate involved in the transaction.
A buyer is visiting open houses and runs across a nice looking home for sale. The listing sales associate has a single agency agreement with the seller. Can the listing agent show the buyer the home?
A. No, the buyer must contact another agency to secure an appointment to see the home.
B. Yes, if the buyer agrees to sign a dual agency agreement.
C. Yes, as long as the buyer does not have an agent already representing him in the purchase process.
D. Yes, as long as the listing sales associate provides a non-representative disclosure.
D. Yes, as long as the listing sales associate provides a non-representative disclosure.
A sales associate must provide a non-representative agency disclosure which states he or she does not represent the buyer.
A real estate licensee is acting as a transaction broker facilitating the sale of a commercial building. Which of the following is correct regarding transaction brokerage in Florida?
A. Both parties must sign the a transaction broker disclosure notice.
B. Transaction brokerage is available only when the broker transitions from single agency.
C. The transaction brokerage role is NOT authorized for a commercial transaction.
D. Neither party is required to sign the broker disclosure notice if the broker is acting as a transaction broker.
D. Neither party is required to sign the broker disclosure notice if the broker is acting as a transaction broker.
Transaction brokerage is the default relationship between a broker and buyer or seller In Florida. If another agreement is entered into by written agreement, that will supersede the default. There is no requirement to sign any disclosure or form if the role is transaction brokerage.
A sales associate decides to sell his own property without using a broker. Which of the following is TRUE regarding any advertising the sales associate may wish to do?
A. The sales associate must disclose the name, address and phone number of his broker, even though he is not using a broker to sell his personal property.
B. The sales associate must disclose the fact that he is a real estate licensee.
C. The sales associate is prohibited from selling his own property without a broker.
D. The sales associate is acting as a private citizen and is therefore exempt from disclosing his licensed status.
B. The sales associate must disclose the fact that he is a real estate licensee.
Even though the sales associate chooses to sell his property without a broker, he is still a licensed agent in the real estate industry and he is required to disclose to disclose that he is a licensee.
A sales associate is selling her home and wants to promote it through her firm while acting as the sales agent. What must she include in any advertisements?
A. The broker’s phone number and the sales associate’s license number must be displayed on the ad.
B. The sales must disclose their license status at the first meaningful discussion and all advertisements must include the brokerage name.
C. Only the broker’s name needs to appear on the ad.
D. Only the sales associate’s name needs to appear on the ad.
B. The sales must disclose their license status at the first meaningful discussion and all advertisements must include the brokerage name.
The sales associate must disclose her status as a real estate agent. In addition, since she is listing the property through her broker, the broker’s name must appear as well.
A sales associate, Jose, entered representative agreements with both the Cunninghams (sellers) and Marissa (buyer). Jose helped Marissa write an offer for $5,000 less than the asking price and presented it to the Cunninghams. Jose pressured the Cunninghams to accept the lower offer since the house had been on the market for 3 months with little interest. Is this allowable?
A. Yes, as long as the Cunninghams are informed, in writing, that Jose is acting as a buyer’s agent for Marissa.
B. Yes, as long as the lower price is indicative of a fair market value for the Cunninghams’ property.
C. No, Marissa is breaking the law by asking Jose to help her gain an edge in negotiating the transaction.
D. No, Jose is violating the rules of a transaction broker.
D. No, Jose is violating the rules of a transaction broker.
Since Jose is working as a transaction broker, he cannot work for one party to the detriment of the other.
Which of the following brokers is NOT in compliance with Florida laws pertaining to brokerage offices?
A. Dave, a licensed broker, has established his registered in a commercial mobile home that is in the middle of a shopping center.
B. Charles has a brokerage sign at the entrance of his office that includes his name and designation as licensed real estate broker.
C. Marilyn has moved her brokerage to a new address and properly notified the commission 5 days after the move.
D. Leya, a licensed broker, operates an office in Valdosta, Georgia. She submitted an office request through the proper channels.
A. Dave, a licensed broker, has established his registered in a commercial mobile home that is in the middle of a shopping center.
Florida laws require licensed brokers to maintain an office of at least 1 enclosed room in a building of stationary construction and to post a sign at the entrance which contains the name of the broker, trade name (if any), and the words “licensed real estate broker”. Brokers who have registered offices outside Florida must notify of the office location either through a change of address or branch office approval. Changes of address must be supplied to the commission within 10 days of the change.
Which of the following is a non-licensed assistant NOT allowed to do as per the Florida Real Estate Commission guidelines?
A. At an open house, answer questions concerning a listing and provide subjective advice NOT obtained from the licensed employer-approved printed information
B. Receive, record and deposit earnest money, security deposits and advance rents
C. Follow-up on loan commitments after a contract has been negotiated and generally secure the status reports on the loan progress
D. Compute commission checks
A. At an open house, answer questions concerning a listing and provide subjective advice NOT obtained from the licensed employer-approved printed information
Under FREC guidelines an unlicensed assistant at an open house may NOT answer questions concerning a listing from which the answer must be obtained from the licensed employer-approved printed information and is objective in nature (not subjective comments).
Which of the following is in violation of Chapter 475 of the Florida Statutes?
A. A real estate sales associate acting as a transaction broker to facilitate a sale between a seller and buyer.
B. A salaried, unlicensed real estate assistant developing promotional materials, scheduling client appointments, and assisting with the clerical preparation of contracts supplied by her employing broker.
C. A school of real estate advertising in connection with an affiliated broker and purporting a pass-fail ratio of 7:1 on the state exam.
D. A licensee under a suspended broker continuing to list and sell houses during the broker’s suspension period, as a subcontractor of the broker’s brokerage firm.
D. A licensee under a suspended broker continuing to list and sell houses during the broker’s suspension period, as a subcontractor of the broker’s brokerage firm.
When a broker’s license is suspended or revoked, all licensees under that broker are placed on involuntary inactive status until they find a new employing broker. A real estate school may advertise in connection with an affiliated broker and advertise a pass-fail ratio on the state exam. A real estate assistant who does not engage in the act of selling, listing, purchasing, renting or leasing real estate for a fee or commission is not in violation of the law.
Which of the following is NOT a qualifying brokers’ supervisory responsibly?
A. Maintaining good employer-employee relationships with the licensees in their office.
B. Being accountable for the actions of all licensees in their office.
C. Ensuring that all licensees’ transactions are legally compliant.
D. Assuming responsibility for any damage caused by any violation of the law by any licensee.
A. Maintaining good employer-employee relationships with the licensees in their office.
Real estate sales associates and broker associates are considered subcontractors of an employing broker, not employees. Thus, employing brokers do not have employer-employee relationships with the licensees in their brokerage. However, qualifying brokers’ responsibilities entail supervising all licensees’ real estate activities, ensuring legal compliance of all transactions, and assuming accountability for the consequences of any licensee’s acts or omissions that violate the real estate law.
Which of the following is NOT a requirement to register a real estate company in Florida?
A. At least 1 active Florida broker who is an officer, director, member, manager, or partner of the company.
B. A sales associate MAY be an officer, director, member, manager, or partner of the company.
C. Broker-associates may NOT be an officer, director, member, manager, or partner unless they upgrade to active qualifying broker with the company.
D. Payment of the initial fee $95
B. A sales associate MAY be an officer, director, member, manager, or partner of the company.
A sales associate may NOT be an officer, director, member, manager, or partner of a real estate company.
Which of the following is NOT accepted practice for managing a sales escrow account?
A. A sales associate deposits $1,000 of personal funds in his broker’s sales escrow account.
B. A broker keeps a balance of $4,500 in a property management escrow account at a Daytona credit union.
C. A broker inadvertently made an error in the recordkeeping for his brokerage’s escrow account. He continues to make authorized disbursements from the escrow account and thinks he will be able to correct the error within 2 weeks.
D. A broker keeps a minimum balance of $5,000 in her sales escrow account at the local savings and loan.
A. A sales associate deposits $1,000 of personal funds in his broker’s sales escrow account.
The statutes allow brokers to maintain up to $5,000 of personal or brokerage funds in a property management escrow account or up to $1,000 in a sales escrow account. In the case of errors, brokers are provided a reasonable time to correct errors and authorized disbursements may still occur.
Generally speaking, When and where does the Florida Real Estate Commission meet?
A. Once per month, at the Division of Real Estate offices in Orlando, Florida
B. Once every 6 months, at the Division of Real Estate offices in Orlando, Florida
C. Once per quarter-year, at the Division of Real Estate offices in Tampa, Florida
D. Only when called to session or every 9 months, whichever is sooner, at the Division of Real Estate offices in Orlando, Florida
A. Once per month, at the Division of Real Estate offices in Orlando, Florida
The Florida Real Estate Commission meets once per month, usually on the 3rd Tuesday and Wednesday of each month. The Commission meetings are held at the Division of Real Estate offices in Orlando, Florida.
Marta is an unlicensed individual who manages all leasing activities for San Mateo Property Management, including handling marketing and rent collection for the myriad of clients the firm serves. She is paid a base salary for her administrative role plus a commission for each new lease. Which of the following steps must the FREC take when it learns of her actions?
A. Impose criminal sanctions on Marta for engaging in the business of real estate without licensure.
B. Report Marta promptly to the unlicensed activity section created by the DBPR.
C. Bring an administrative complaint against Marta to the Department of Business and Professional Regulation.
D. Nothing, because Marta is exempt from the need for licensure because she works for a property management firm.
B. Report Marta promptly to the unlicensed activity section created by the DBPR.
Although Martha does NOT need a license if she is paid a salary, she DOES need a license if she receives commissions. The DBPR has created an unlicensed activity reporting system whereby any unlicensed activity may be reported and the state attorney’s office notified.
Which of the following is considered a material fact that MUST be disclosed per the Florida statutes?
A. The owners believe they saw a ghost of a murder victim who died on the property.
B. The owner’s spouse committed suicide on the property last year.
C. The previous owner died at home after a long illness.
D. While the owner was restaining his deck, the staircase crumbled due to termite activity.
D. While the owner was restaining his deck, the staircase crumbled due to termite activity.
The fact that a property was, or was at any time suspected to have been, the site of a homicide, suicide, or death is not a material fact that need be disclosed in a real estate transaction. A material defect such as termite activity MUST be disclosed.
Which of the following is NOT a requirement for inclusion a listing agreement? A. A definite expiration date B. The amount the seller will accept C. The owner's signature D. A commission rate
B. The amount the seller will accept
Listing agreements in Florida must include a definite expiration date, proper identification of the property, price, terms and conditions, fee or commission to be paid and the owner’s signature. An automatic renewal clause for extension of the listing is in violation of Florida Law. The seller’s acceptance is based upon the offer, not the listing agreement.
Which of the following is TRUE regarding listing agreements in Florida?
A. Listing agreements must be in writing and specify only the referral fee.
B. Listing agreements must include a definite continuation date and include a description of the neighborhood.
C. Listing agreements cannot be in writing and must specify the fee or commission.
D. Listing agreements must include a definite expiration date, include a description of the property, and specify the fee or commission.
D. Listing agreements must include a definite expiration date, include a description of the property, and specify the fee or commission.
According to Florida real estate law, listing agreements must include a definite expiration date, a description of the property, price and terms, and fee or commission. There is nothing, however, that states listing agreements must be in writing.
A sales associate just helped the Walters find a new home. After the contract was accepted, the Walters asked her to help them find a mortgage broker. The sales associate knows a broker who pays referral fees to real estate agents. Can she refer the Walters to that broker?
A. Yes, if the fee is disclosed in an addendum to the agency agreement.
B. No, this is a violation of federal law.
C. Yes, if the mortgage broker offers fair market interest rates and terms.
D. Yes, if the mortgage broker does not work for the same company as the sales associate.
B. No, this is a violation of federal law.
RESPA (The Real Estate Settlement Procedures Act) states that a licensee participating in a sale may NOT accept any type of referral fee another participant in that sale.
Rita fell in love with a home built in 1905. She was surprised when the listing broker gave her a lead-based paint disclosure form at closing. Which of the following is TRUE?
A. The broker was not required to give Rita the form because the house was built before 1978.
B. According to the EPA, homes over 100 years old are considered “historic” and are not subject to lead based paint disclosure laws, so the form would not have been required.
C. The law says the seller may not accept an offer from the buyer unless both the Lead-based Paint Disclosure and EPA pamphlet have been given. If the seller fails to give the disclosure and pamphlet to the buyer, the broker is responsible for doing so.
D. Lead-based Paint Disclosure is only applicable to commercial property, so the broker should not have given Rita the disclosure.
C. The law says the seller may not accept an offer from the buyer unless both the Lead-based Paint Disclosure and EPA pamphlet have been given. If the seller fails to give the disclosure and pamphlet to the buyer, the broker is responsible for doing so.
The Lead-based Paint Hazard Reduction Act requires that sellers and landlords of homes built prior to 1978 give the disclosure form and pamphlet. If the buyer does NOT receive the disclosure, the buyer is not bound by the purchase agreement and both seller and agents are in violation of the law.
After failing his Florida licensing exam Doug decided to change his career path and began working as an administrator for the FHA. With FHA approval, Doug gave lists of foreclosed properties to broker Paige, under the provision that Paige would pay him a percentage of commissions earned by her company on properties from that list. Which of the following is TRUE?
A. Paige is allowed to compensate Doug as long as he does not provide any real estate services to the buyer apart from information shown on the FHA list.
B. Paige can legally pay Doug in this manner because he works for the FHA and had permission to distribute property lists.
C. Doug can legally ask for commission after the sale because FHA foreclosure properties are exempt from Florida license law.
D. Paige is violating the law because she is agreeing to pay compensation to an individual who is not licensed.
D. Paige is violating the law because she is agreeing to pay compensation to an individual who is not licensed.
Paige could have paid a flat fee for the list of FHA foreclosure properties, but because she tied the compensation to transactions that close, she is in violation of Florida law. A broker cannot pay a referral fee to anyone who is not licensed, regardless of the FHA’s permission.
Alejandro is a salesperson at Rococo Real Estate Brokerage in Pensacola. While visiting his daughter in Daytona, Alejandro sees a property offered by Daytona Diligent Realty which he proceeds to sell to a client back in Pensacola. Alejandro receives 5% commission from Daytona Diligent Realty. Is there anything wrong with this situation, and if so, what is the key legal condition?
A. No, as long as Alejandro maintained an active sales associate license in Florida and Daytona Diligent Realty was the listing Broker.
B. No, as long as Daytona Diligent Realty “cooperated” with selling agent Alejandro.
C. Yes, Alejandro and Daytona Diligent Realty are in violation of Florida’s real estate license law.
D. Yes, Alejandro is only entitled to a maximum of 3% commission.
C. Yes, Alejandro and Daytona Diligent Realty are in violation of Florida’s real estate license law.
Alejandro may only be compensated by his broker, Rococo Real Estate, so any offer of commission or fee made directly by Daytona Diligent Realty must be refused. Both parties are in violation of Florida’s real estate license law.
An applicant for the real estate licensing exam in Florida must submit which of the following along with an electronic application?
A. A letter of recommendation
B. 3 different photographs
C. A written request for letter of licensure along with a $25 fee
D. Electronic fingerprints
D. Electronic fingerprints
Electronic fingerprinting allows applicants to have their fingerprints scanned and electronically submitted to the Florida Department of Law Enforcement and Federal Bureau of Investigation. Electronic fingerprinting is the only allowable method of background checks for licensure in Florida (Unless the potential licensee is out of country and away from a digital fingerprinting source).
As far as Florida real estate licensing is concerned, which of the following constitutes a Florida resident?
A. Anyone who has continuously resided in Florida for 4 calendar months at any point in their life.
B. Anyone who has continuously resided in Florida for 6 calendar months in the preceding 2 years.
C. Anyone who has continuously resided in Florida for 4 calendar months in the preceding year.
D. Anyone who has continuously resided in Florida for 2 calendar months in the preceding year.
C. Anyone who has continuously resided in Florida for 4 calendar months in the preceding year.
A Florida resident is anyone who has resided in Florida continuously for a period of 4 calendar months or more in the preceding year or, anyone who presently resides in Florida with the intention to reside continuously in Florida for a period of 4 months or more.
At age 18, Leslie is considering what to do when she graduates from high school in 9 months. Can she begin taking prelicense coursework during her final year of high school?
A. Yes, but she cannot be licensed until she is at least 19 years old.
B. Yes, but she cannot be licensed until she receives her high school diploma.
C. No, she cannot begin prelicensure coursework until she has a high school diploma.
D. No, she cannot begin prelicensure coursework until she is at least 19 years old.
B. Yes, but she cannot be licensed until she receives her high school diploma.
To be eligible for licensure a candidate must be at least 18 years of age and hold a high school diploma or its equivalent.
Bonita, a real estate licensee in Georgia, wants to obtain her Florida license. What steps must she take?
A. Submit an application with the required fee.
B. Submit application, required fee, and current certification of license history.
C. Take and pass a 63-hour prelicense course.
D. Pass the Florida State Exam on Real Estate Law and send in a current certification of license history from Georgia with the Florida application and the required fee.
D. Pass the Florida State Exam on Real Estate Law and send in a current certification of license history from Georgia with the Florida application and the required fee.
Florida has mutual recognition with other states allowing individuals with active real estate licenses to receive a Florida Real Estate license by passing a state examination on real estate law. Applicants with experience from one of the other states need to attach a current certification of license history from the licensing agency of jurisdiction to the Florida application and submit the required fee.
Broker Marge was swamped, and asked Jilly and Kelly to help with 1 of her clients. Jilly is a non-licensed secretary and Kelly is a real estate licensee working in a non-representative role with the seller. Who could help Marge and provide the seller with a comparative market analysis (CMA)?
A. Neither. Not being licensed, Jilly could not do a CMA and although Kelly is licensed, she could only provide the seller with a CMA in a transaction broker or single agent capacity.
B. Both. Under Florida law, brokers may assign rudimentary administrative duties to unlicensed staff, so Jilly could do the CMA. Kelly could also do it because she is licensed under Marge.
C. Jilly could if the seller signs a notice that states he will not construe the CMA to create an agency relationship.
D. Kelly could. There is no restriction to prevent a licensee from preparing a CMA for a buyer or seller.
D. Kelly could. There is no restriction to prevent a licensee from preparing a CMA for a buyer or seller.
Only Kelly could. There is no restriction under Florida Real Estate law to prevent licensees from preparing a CMA for a buyer or seller. CMAs are outside the scope of office administration, so Jilly could not.
What is the mnemonic for the process of adverse posession to take place in Florida? A. L.E.A.C.H. B. T.A.K.E. C. O.P.A.T.C.H. D. E.N.C.R.O.A.C.H.
C. O.P.A.T.C.H.
Adverse possession is based on the common law which says that all owners should be aware and in possession of their property at all times. For Adverse Possession to take place (adverse to the owner’s title), certain items must be in place. The acronym is O.P.A.T.C.H. - Open, Possession, Actual, Taxes, Continuous, Hostile. 7 years is the minimum requirement for adverse possession.
When Theresa’s neighbor Joe died, his son informed Theresa that he was going to enforce the easement he and Joe had running along the back edge of Theresa’s property. Theresa said that since Joe hadn’t enforced it in 18 years, he had lost the right because the easement automatically terminated in that amount of time. Was she correct?
A. Yes, Theresa was correct. After 15 consecutive years an unenforced easement in Florida terminates automatically.
B. Yes, Theresa was correct. The easement was terminated after 7 years, by adverse possession.
C. No Theresa was wrong. It takes 360 consecutive months without interruption to terminate an easement in this way.
D. takes 20 consecutive years without interruption before the easement may be terminated.
D. takes 20 consecutive years without interruption before the easement may be terminated.
By prescription, an easement may be created or terminated after 20 consecutive years. Further, the easement may be cancelled by the new owner since the easement was not in writing. Title to adverse possession requires 7 years of hostile possession in addition to other specific requirements.
Which of the following does a property manager NOT owe to the tenant? A. Disclosure of material facts B. Honesty C. A guaranteed return of their deposit D. Accuracy
C. A guaranteed return of their deposit
Security deposits are held in trust until a tenant vacates. Upon confirmation that there was no damage other than wear and tear, the tenant’s deposit must be returned during the appropriate timeframe.
What Florida Act was initiated to limit urban sprawl and encourage a more compacted development of land use? A. The Land Use Act B. The Downsizing Act C. The Urban Planning Act D. The Growth Management Act
D. The Growth Management Act
The Florida Growth Management Act of 2011 requires local governments to create planning consistent with a statewide land-use plan to reduce urban growth.
What type of Acts were developed to make laws aimed at controlling zoning and property use? A. Empowerment Acts B. Enabling Acts C. Zone Acts D. Property Usage Acts
B. Enabling Acts
The right to make laws to control property use is called Enabling Acts.
A property located in the county has 70 acres. The property has a house, a barn, and a chicken coop. What type of property would this be considered under Florida Law?
A. This is a commercial property, since it produces farm produce.
B. This is agricultural property, since it has more than 10 acres.
C. This is a single family residential property, since it has a house located on the property.
D. This is a single family residential property, since the property has fewer than 100 acres.
B. This is agricultural property, since it has more than 10 acres.
The property in this example would be considered agricultural.
Florida zoning regulations govern which of the following issues?
A. The amount of space between the lot line and the building line
B. Qualifications for property owners
C. The price of an easement that transfers with the title to a piece of land
D. The riparian rights of a landowner whose property is adjacent to a flowing waterway
A. The amount of space between the lot line and the building line
Zoning ordinances regulate and control the use of a property in a municipality and govern such issues as land use, building heights, setbacks, and density. Zoning regulations have no effect on the price of improvements or appurtenances, restrictions on ownership, or property rights.
With regards to appraisal services, which of the following holds TRUE?
A. The law allows brokers and sales associates to provide valuation services for compensation as long as they do not represent themselves as appraisers.
B. The law prevents brokers from performing any services assessing property value, except giving price opinions.
C. The law prevents sales associates from giving any price opinion on a property, except comparative market analyses.
D. Brokers and sales associates are allowed to conduct appraisals as long as they convey to clients, in writing, that they are not licensed appraisers.
A. The law allows brokers and sales associates to provide valuation services for compensation as long as they do not represent
The law to allows brokers and sales associates to provide “valuation services” for a fee including giving price opinions, conducting comparative market analyses, and giving values of the opinion of real estate as long as they do not represent themselves as certified, licensed, or registered as an appraiser.
John has been farming his land in Florida for nearly 22 years. His principal crops are cabbage and oranges. He also raises pigs and horses for sale on his 280-acre property. He has consistently used conservation methods and fertilizing to maintain the value of the land. He has also reforested where possible on his property. He is currently seeking some tax relief. Is he likely to get relief?
A. Yes, because his property falls under the Florida’s Amendment 477.
B. No. Because his property is more than 200 acres, he must pay commercial property taxes.
C. Yes, because his property falls under the Florida Green Belt Law.
D. No, only properties without livestock are eligible.
C. Yes, because his property falls under the Florida Green Belt Law.
In order the preserve Florida’s farming community, the legislature in 1959 passed the Green Belt Law. This taxes agricultural land at a lower rate than the encroaching cities around the land, and preserves the land for future agricultural use. Without this protection, owning farm land and paying taxes would be prohibitive. John’s property would qualify
Millie and Britt have owned 2 homes for the past 7 years, 1 in Manhattan and 1 in Tampa. 6 years ago they separated, and Millie decided to stay in Manhattan, with Britt electing to live in Tampa. They now want to sell the house in Manhattan and buy Millie a condo. Can Britt and Millie exclude up to $500,000 of gain when they sell the home if they file a separately for income tax?
A. Yes, Britt and Millie may take their one-time tax exclusion on the gain from the sale of either home.
B. Yes, as long as Britt and Millie have owned the home for 2 of the last 5 years, they may exclude up to $500,000 of gain when they sell the home.
C. No, they can only claim $250,000 for taxes since they filing separately
D. No, Both Britt and Miller must have lived in and used the home to qualify for the $500,000 exclusion.
D. No, Both Britt and Miller must have lived in and used the home to qualify for the $500,000 exclusion.
Tax law states that tax deferral of gains is eliminated because the gain may no longer be rolled over into a new home. However, gain of up to $500,000 is excluded when Britt and Millie file a joint return IF they meet the residence and ownership tests. IRC section 121 allows a taxpayer to exclude $250,000 ($500,000 for joint filers) of gain on the sale or exchange of a home if it was owned and used as the taxpayer’s principal residence for 2 of the 5 years preceding the sale. To qualify for the $500,000 exclusion on joint returns, only 1 spouse must meet the ownership test, but both spouses must meet the use test. Since they lived apart, they would not meet the use test and therefore not qualify.
Of the following, which is NOT a disciplinary action open to the Commission if a licensee fails to provide disclosure or fails to adhere to the disclosure provisions set forth in the regulations?
A. Place the licensee on probation or suspend the licensee
B . Impose an administrative fine of $1,000 for each count
C. Deny an application for licensure or renewal
D. Place penalty points on the licensee’s license
D. Place penalty points on the licensee’s license
If a licensee fails to provide or adhere to the provisions of disclosure, the Commission may: deny an application for licensure or renewal; may place the licensee on probation; may suspend a licensee; may impose an administrative fine of $1,000 for each count; may issue a reprimand; or any or all of the above.
Which of the following regarding the position of FREC and disputes between licensees over unpaid commissions is TRUE?
A. All licensees are beholden to the FREC and so any dispute, commission-based or otherwise is handled by the FREC.
B. The FREC does not involve itself with licensees in any way.
C. The FREC will intervene in disputes between brokers, but not in disputes between sales associates.
D. Commission disputes are a civil matter. However, if a judgment is obtained and the licensee fails to pay the judgment, a complaint can be filed against the licensee with the FREC.
D. Commission disputes are a civil matter. However, if a judgment is obtained and the licensee fails to pay the judgment, a complaint can be filed against the licensee with the FREC.
FREC disputes are a civil matter. If a judgment is obtained and the licensee fails to pay the judgment, a complaint can be filed against the licensee for failing to pay a judgment.
Who would NOT be eligible for a payment from the Real Estate Recovery fund?
A. Myra has a final judgment from civil court against licensee Taylor.
B. Melba makes a claim against a licensee 18 months after the transaction in question.
C. A claimant, Diana, was a licensed real estate sales associate when a broker representing her failed to protect her interests in a commercial real estate transaction.
D. Warren was awarded $15,000 in damages by the civil court, against which he applied the $10,000 paid by the licensee’s insurance company.
C. A claimant, Diana, was a licensed real estate sales associate when a broker representing her failed to protect her interests in a commercial real estate transaction.
No one with an active real estate license at the time of an alleged act is be eligible for damages from the Real Estate Recovery Fund. In order to be eligible an individual must have a final judgment from a civil court against a licensee, and must make the claim within 2 years from the actual act or discovery of the act (as long as no more than 4 years have elapsed since the act). Additionally, the claimant must have notified the Commission by certified mail at the time the action against the licensee was initiated. Any monies already recovered from other sources must be applied to the court-awarded damages.
