Violations of License Law, Penalties & Procedures Flashcards
A person making an application to the Real Estate Recovery Fund for payment must file a claim at what point:
A) Within 6 months of an appeal of the final judgment
B) Within 90 days of the filing of a civil suit
C) Within two years of the alleged violation
D) There is no statute of limitations on a claim against the recovery fund
C) Within two years of the alleged violation
A claim must be made within two years of the alleged violation or the discovery of the alleged violation. However, in no case may a claim for recovery be made more than four years after the date of the alleged violation.
Which of the following is not grounds for revocation or suspension of a license?
A) Violation of the Civil Rights Act of 1866
B) Violation of the Code of Ethics
C) Violation of the Canons of Ethics
D) Violation of the Federal Fair Housing Act
B) Violation of the Code of Ethics
The Code of Ethics is a set of voluntary rules of conduct established by the National Association of Realtors. The Federal Fair Housing Act and the Civil Rights Act of 1866 are both federal statutes, and the Canons of Ethics list the ethics laws of individual states.
The broker has a listing on a property and has accepted a $3,000 earnest money deposit from the buyer. The buyer is unable to secure financing and requests that the funds be returned according to the terms of his contract. The broker has used the money to pay his personal bills and is unable to reimburse the buyer. The broker is guilty of:
A) Dishonest dealing by trick, scheme or devise
B) Failure to account for and deliver
C) Fraud
D) Culpable negligence
B) Failure to account for and deliver
The act of failing to pay money to a person entitled to receive it is called failure to account for and deliver.
The unauthorized use or retention of another person’s money or property, which can be grounds for suspension or revocation of a licensee’s license, is known as:
A) Culpable negligence
B) Commingling
C) Conversion
D) Concealment
C) Conversion
The unauthorized control or use of another’s personal property or the taking of another person’s property is known as conversion.
A broker deposits a buyer’s $500 earnest money check into the broker’s personal checking account. The broker is guilty of:
A) Cooperation
B) Conversion
C) Commingling
D) Condemnation
B) Conversion
Conversion is stealing funds or converting funds to your own personal use. Commingling is the mixing of funds with trust funds. Condemnation is the act of the government taking private property for public use.
Real Estate Recovery Fund claims are limited to what dollar amount?
A) $50,000
B) $1,000,000
C) $25,000
D) $2.500
A) $50,000
$50,000 is the maximum amount that will be paid for claims arising out of the same transaction or the unsatisfied portion of a judgment claim, whichever is less. Payments for claims based on judgments against one broker or sales associate may not exceed, in total, $150,000.
A penalty that the Commission may not legally impose is the:
A) Suspension of a license
B) Revoking of a license
C) Denial of the payment of compensation
D) Denial of the issuance of a license
C) Denial of the payment of compensation
While the FREC cannot deny payment of compensation or direct repayment of compensation already paid, the Commission can issue an order to deny, suspend or revoke a license, and include a stipulation that the compensation already received must be repaid before the order will be vacated, thereby indirectly influencing a licensee’s decision.
The total amount that can be paid from the Real Estate Recovery Fund as a result of any one Real estate transaction may not be greater than:
A) $150,000
B) $25,000
C) $75,000
D) $50,000
D) $50,000
Payments 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. Total payments for claims based on judgments against one broker or sales associate may not exceed $150,000. — 475.484, F.S.
For a broker to act for more than one party in a real estate transaction, without the knowledge and consent of all parties, is:
A) Ethical
B) Grounds for disciplinary actions
C) OK, if no party suffers actual monetary damage
D) Contrary to Board of Realtor bylaws
B) Grounds for disciplinary actions
Most states allow a broker or sales agent to act as a “dual agent” only if both parties consent in writing.
To cause a license to be revoked without prejudice, which of the following actions must have taken place?
A) A licensee shared commission, as a referral fee, with a person not party to the transaction who did not have a real estate license.
B) A licensee accepted earnest money on property that he/she knew was encumbered by ar undisclosed lien.
C) The broker obtained his/her license by means of misrepresentation, concealment or Fraud.
D) A sales associate received his/her license as the result of an error by the Division of Real Estate.
D) A sales associate received his/her license as the result of an error by the Division of Real Estate.
A license may be revoked or canceled if it was issued through the inadvertence or mistake of the Commission. Such revocation or cancellation shall not prejudice any subsequent application.
When a payment of any amount is made from the Real Estate Recovery Fund, in settlement of a claim to satisfy a judgment against a licensee, the Commission’s action against the licensee must be:
A) Automatic suspension
B) Citation
C) Emergency suspension
D) Probation
A) Automatic suspension
Suspension of a licensee’s license is mandatory on payment of any amount from Real Estate Recovery Fund in settlement of a claim to satisfy a judgment against the licensee. The license is automatically suspended on the date of payment from the fund and not restored until repaid in full (plus interest.)
An outline of the charges against a licensee that must be answered within the statutory time limit.
Formal complaint
A person who makes an allegation or a charge against another (the respondent).
Complainant
Occurs when a licensee fails to disclose information that is material to a decision to a party to whom the licensee has such a duty.
Concealment
Inadequate attention to duties and obligations by one who knows, or should know, what is required of him or her.
Culpable negligence
