Unit 2: License Law and Qualifications for Licensure Flashcards
Within what period of time after passing the end-of-course exam must a sales associate applicant pass the state license exam?
A) Two years
B) Three years
C) One year
D) 18 months
If an applicant does not pass the state license exam within two years after the course completion date, the course completion expires and the applicant must again complete the pre-license education course.
Nolo contendere is a term that means
A) no one witnessed the signature.
B) no compensation is paid for services.
C) no contest.
D) property was seized from the owner.
The answer is no contest. The Latin term nolo contendere means “I do not wish to contest.” In legal proceedings, it is a plea by a defendant in a criminal case declaring that the individual will not make a defense, but the individual does not admit guilt.
Attorneys who are active members in good standing of The Florida Bar are exempt from which education requirement?
A) FREC Course II for brokers
B) 45-hour post-licensing education for sales
associates
C) FREC Course I for sales associates
D) Sales associate state license exam
The answer is FREC Course I for sales associates. Attorneys who are active members of The Florida Bar are exempt from FREC Course I. Active members in good standing of The Florida Bar are also exempt from the continuing education requirements for real estate licensees. Attorneys are not exempt from the state license examinations for sales associates and brokers, the post-license requirements, or FREC Course II.
What is the percentage passing score on the Florida-specific real estate law license exam given to applicants who apply for a Florida license through mutual recognition?
A) 70
B) 80
C) 75
D) 90
The answer is 75. The passing score on the Florida-specific real estate law license exam is a grade of 75% or higher.
An applicant has been issued a broker’s license. The broker licensee does not want to own her own real estate brokerage business. The licensee went to work selling real estate under another broker. She is BEST described as a
A) sales associate.
B) broker associate.
C) staff worker.
D) broker.
The answer is broker associate. A broker associate is an individual who holds a broker’s license but who chooses to register and work in real estate under the direction of another broker.
A developer of a new residential subdivision hires a sales staff to sell homes. The sales staff receives a base salary plus 1% of the sale price of each home they sell. Are the people who sell these homes for the developer required to hold real estate licenses?
A) Yes, all individuals who sell real property for owner-
developers must hold a real estate license
regardless of the compensation structure.
B) No, owner-developers are not regulated by the real
estate license law.
C) Yes, the sales staff must hold real estate licenses
because they are partially compensated based on
actual sales.
D) No, the sales staff is paid a salary so they are not
required to hold real estate licenses.
The answer is yes, the sales staff must hold real estate licenses because they are partially compensated based on actual sales. An owner-developer’s sales staff must hold active real estate licenses in order to be paid a commission or other compensation based on actual sales (that is, on a transactional basis). The sales staff is exempt from real estate licensure if paid strictly on a salaried basis.
Which individual is NOT exempt from holding a Florida real estate license?
A) A person who sells cemetery lots
B) A salaried employee who works as a manager of a
condominium complex and rents individual units for
periods of one year or less
C) State-certified and licensed real estate appraisers
licensed under Chapter 475, Part II
D) Certified public accountant (CPA) who is employed
by a real estate corporation and receives a salary
plus bonuses based on real estate transactions
The answer is certified public accountant (CPA) who is employed by a real estate corporation and receives a salary plus bonuses based on real estate transactions. Certified public accountants, when acting within the scope of their professional duties, are exempt from licensure. However, CPAs are not entitled to collect commissions or bonuses for performing services of real estate.
The administrative rules of the Florida Real Estate Commission are found in
A) Florida Statute 475.
B) Chapter 61J2.
C) Florida Statute 120.
D) Florida Statute 455.
The answer is Chapter 61J2. The administrative rules of the Florida Real Estate Commission are in Chapter 61J2 of the Florida Administrative Code.
A sales associate applicant must comply with which requirement?
A) Complete at least two years of college
B) Possess a U.S. social security number
C) Be a U.S. citizen
D) Be a Florida resident
The answer is possess a social security number. A U.S. social security number is required to apply for a real estate license.
An individual who received a four-year degree in real estate from a state university is NOT exempt from which license requirement?
A) State license exam
B) Post-license education
C) FREC Course II for brokers
D) FREC Course I for sales associates
The answer is state license exam. Individuals who have received a four-year degree in real estate from an institution of higher education are exempt from the pre-license FREC Courses I and II. Such individuals are also exempt from post-license education requirements.
For licensing purposes, a resident of Florida is defined as a person who has resided in Florida for what period of time?
A) Six months
B) Two years
C) Four months
D) One year
The answer is four months. For application and licensing purposes, the FREC rules define a resident of Florida as a person who has resided in Florida continuously for a period of four calendar months or more within the preceding year, regardless of whether the person resided in a recreational vehicle, hotel, rental unit, or other temporary or permanent location.
Which individual must hold a Florida real estate license?
A) Individual who rents lots in a mobile home park
B) Lawyer who receives a share of the commission for
each transaction resulting from the referral of a
client to a local brokerage office
C) Salesperson who works for a real estate developer
and is paid a salary
D) Individual who sells cemetery lots
The answer is lawyer who receives a share of the commission for each transaction resulting from the referral of a client to a local brokerage office. A lawyer is exempt from a real estate license if performing work within the scope of an attorney-client relationship. However, to legally be paid a commission or other compensation for real estate services, the lawyer must also hold a real estate license.
