Chapter 2 - Key Concepts

Front 1

The Florida legislature granted the Commission authority to:

Back 1

1) keep records

2) conduct investigations

3) the power to grant, deny, suspend and revoke licenses

4) all of the above

Hint 1

4 is the answer

Front 2

Florida Statute 20, Chapter 20

Back 2

Organizational structure - establishes the structure of the executive branch of Florida's government. The Florida Constitution provides for the legislative, executive and judicial branches of government. The executive branch executes the programs and policies adopted by the legislature. The policies are implemented by the department of the executive branch, including the department of business and professional regulation (DBPR)

Front 3

Florida Statute Chapter 475

Back 3

created by the Florida Legislature to establish the legal rights and responsibilities of real estate licensees and real estate appraisers. Is divided into four parts.

Hint 3

often called the Real Estate Professional Practice Act

Front 4

Name the 4 parts of Chapter 475

Back 4

Part I - pertains to real estate brokerage

Part II - pertains to real estate appraisers and sets forth the requirements for licensed and certified appraisers according to federal statute

Part III - the Commercial Real Estate Sales Commission Lien - this act applies only to commercial property

Part IV - the Commercial Real Estate Leasing Commission Lien Act - gives a broker lien rights for earned commission associated with a brokerage agreement to lease commercial real estate

Front 5

Florida Statute 455

Back 5

The Regulation of Professions and Occupations defines the general legal practice and procedure for the DBPR and the licensees of all professions regulated by the DBPR including real estate. This law also mandates what actions the DBPR may take in regulating licensees.

Front 6

Florida Statute 120

Back 6

The administrative procedure act defines the procedural process by which regulatory agencies decide and implement agency action. The licensing and disciplinary process for real estate licensees is outlined in this chapter.

Front 7

Chapter 61J2

Back 7

The rules of the Florida Real Estate Commission (FREC)

Front 8

To become a broker, applicants must:

Back 8

1) complete a 72-hour pre-license course with a score of at least 70%;

2) have at least 24 months of active real estate licensure during the previous 5 years;

3) successfully pass the state broker exam

(applicants who hold a Florida sales associate license must also complete the sales associate post-licensing education before being eligible for a broker's license.

Front 9

A licensed sales associate may operate

Back 9

1) for any registered broker

2) for the broker registered as the sales associate's employer

3) independently if registered with the DBPR

4) as a broker associate

Front 10

A sales associate applicant is NOT required to comply with which requirement?

Back 10

1) submit an application fee

2) be 18 years of age or older

3( be a bona fide Florida resident

4) possess a SSN

Front 11

Which person does NOT meet the experience requirements to obtain a FLorida broker's license?

Back 11

1) an applicant who has held an active California broker's license for the preceding three years

2) an applicant who has held an active Ohio sales associate license during four of the preceding five years while employed by an Ohio broker

3) an applicant who has held an active FLorida sales associate license for the preceding two years while employed by a Florida broker

4) an applicant who has held an active Florida sales associate license during two of the preceding five years while employed by an owner-developer

Front 12

Which statement does NOT describe the intent of the Florida Legislature concerning regulation of professional and licensed occupations to protect the public?

Back 12

1) when the potential for harm to the public is clear

2) when other ordinances and laws are not sufficient to protect the public

3) whenever deemed appropriate by the legislature

4) when less-constraining measures of regulation are not available or apparent

Front 13

A sales associate applicant is NOT required to disclose which information on the license application?

Back 13

1) convicted of a crime

2) proof of U.S. citizenship

3) maiden name, if applicable

4) a finding of guilt in conduct that would have resulted in disciplinary action if the applicant had been licensed to practice real estate

Front 14

A sales associate sells real estate for a real estate brokerage company. He also works as a sales associate for another real estate brokerage company

Back 14

1) the sales associate is in violation of FS 475

2) the sales associate may work for both companies as long as he registers both employers with the FREC

3) this is legal as long as he only works part time for each company

4) the sales associate must be a broker associate for this to be legal

Front 15

What is the Latin tern for a plea of "no contest"?

Back 15

1) Prima facie

2) Caveat emptor

3) Writ of mandamus

4) Nolo contndere

Front 16

A woman helped her father sell some property he owned. The daughter is not a real estate licensee. Her father was grateful for his daughter's assistance, but the daughter declined any compensation for assisting her father. Which statement is TRUE?

Back 16

1) this was unlicensed real estate activity, and both the daughter and her father could be prosecuted

2) the daughter is legally allowed to sell her father's real estate and be compensated for it because he is a family member

3) this was a legal arrangement because the daughter did not receive compensation for performing real estate services

4) the daughter can be fined by the FREC for performing real estate services without a license

Front 17

A woman helped her father sell some property he owned. The daughter is not a real estate licensee. Her father was grateful for his daughter's assistance, but the daughter declined any compensation for assisting her father. Which statement is TRUE?

Back 17

1) this was unlicensed real estate activity, and both the daughter and her father could be prosecuted

2) the daughter is legally allowed to sell her father's real estate and be compensated for it because he is a family member

3) this was a legal arrangement because the daughter did not receive compensation for performing real estate services

4) the daughter can be fined by the FREC for performing real estate services without a license

Front 18

To receive a notice of satisfactory completion of Course I or Course II, a student may NOT miss more than

Back 18

1) 4 instructional hours

2) 6 instructional hours

3) 8 instructional hours

4) 12 instructional hours

Front 19

A woman received her Florida sales associate's license last year. Which requirement must she complete to become a licensed real estate broker?

Back 19

1) successfully complete the 45-hour post-licensing course

2) complete 14 hours of continuing education for sales associates

3) document at least 3 closed real estate transactions

4) complete at least three years of experience as a sales associate before taking the broker license exam

Front 20

A man has a North Carolina broker's license, but he is not licensed in Florida. He sells a parcel of land he owns in Florida. Assuming all else is proper, this is a legal transaction because

Back 20

1) mutual recognition agreements allow this

2) Florida law exempts from licensure individual owners selling their own real property

3) Florida has honored his nonresident broker's license

4) he has the knowledge and qualifications necessary to handle the transaction

Front 21

A man has a North Carolina broker's license, but he is not licensed in Florida. He sells a parcel of land he owns in Florida. Assuming all else is proper, this is a legal transaction because

Back 21

1) mutual recognition agreements allow this

2) Florida law exempts from licensure individual owners selling their own real property

3) Florida has honored his nonresident broker's license

4) he has the knowledge and qualifications necessary to handle the transaction

Front 22

A sales associate applicant who has submitted a correctly completed application for the state license examination and who successfully passes the state exam may legally begin to operate as a licensee when the

Back 22

1) application and proper fees are received by the state

2) applicant receives a return receipt acknowledging acceptance of the application

3) applicant receives the canceled check as evidence of payment followed by an assigned date for the state exam

4) applicant is notified of having passed the state exam, has filed the appropriate form to become registered as active with the DBPR, and the DBPR website indicates the applicant's license status is active

Front 23

A man has a North Carolina broker's license, but he is not licensed in Florida. He sells a parcel of land he owns in Florida. Assuming all else is proper, this is a legal transaction because

Back 23

1) mutual recognition agreements allow this

2) Florida law exempts from licensure individual owners selling their own real property

3) Florida has honored his nonresident broker's license

4) he has the knowledge and qualifications necessary to handle the transaction

Front 24

A sales associate applicant who has submitted a correctly completed application for the state license examination and who successfully passes the state exam may legally begin to operate as a licensee when the

Back 24

1) application and proper fees are received by the state

2) applicant receives a return receipt acknowledging acceptance of the application

3) applicant receives the canceled check as evidence of payment followed by an assigned date for the state exam

4) applicant is notified of having passed the state exam, has filed the appropriate form to become registered as active with the DBPR, and the DBPR website indicates the applicant's license status is active

Front 25

if the post-licensing requirement is not fulfilled before the first renewal and a sales associate licensee wishes to continue in the real estate business, the licensee

Back 25

1) must retake the state exam within one year

2) must requalify for licensure

3) is allowed a six-month grace period to meet the requirement but must hold an inactive license during that period

4) must retake the prelicense course within one year

Front 26

A man has a North Carolina broker's license, but he is not licensed in Florida. He sells a parcel of land he owns in Florida. Assuming all else is proper, this is a legal transaction because

Back 26

1) mutual recognition agreements allow this

2) Florida law exempts from licensure individual owners selling their own real property

3) Florida has honored his nonresident broker's license

4) he has the knowledge and qualifications necessary to handle the transaction

Front 27

A sales associate applicant who has submitted a correctly completed application for the state license examination and who successfully passes the state exam may legally begin to operate as a licensee when the

Back 27

1) application and proper fees are received by the state

2) applicant receives a return receipt acknowledging acceptance of the application

3) applicant receives the canceled check as evidence of payment followed by an assigned date for the state exam

4) applicant is notified of having passed the state exam, has filed the appropriate form to become registered as active with the DBPR, and the DBPR website indicates the applicant's license status is active

Front 28

if the post-licensing requirement is not fulfilled before the first renewal and a sales associate licensee wishes to continue in the real estate business, the licensee

Back 28

1) must retake the state exam within one year

2) must requalify for licensure

3) is allowed a six-month grace period to meet the requirement but must hold an inactive license during that period

4) must retake the prelicense course within one year

Front 29

Services of real estate do NOT include

Back 29

1) advertising rental property lists

2) appraising real property

3) selling cemetery lots for compensation

4) conducting an auction of real property

Front 30

A man has a North Carolina broker's license, but he is not licensed in Florida. He sells a parcel of land he owns in Florida. Assuming all else is proper, this is a legal transaction because

Back 30

1) mutual recognition agreements allow this

2) Florida law exempts from licensure individual owners selling their own real property

3) Florida has honored his nonresident broker's license

4) he has the knowledge and qualifications necessary to handle the transaction

Front 31

A sales associate applicant who has submitted a correctly completed application for the state license examination and who successfully passes the state exam may legally begin to operate as a licensee when the

Back 31

1) application and proper fees are received by the state

2) applicant receives a return receipt acknowledging acceptance of the application

3) applicant receives the canceled check as evidence of payment followed by an assigned date for the state exam

4) applicant is notified of having passed the state exam, has filed the appropriate form to become registered as active with the DBPR, and the DBPR website indicates the applicant's license status is active

Front 32

if the post-licensing requirement is not fulfilled before the first renewal and a sales associate licensee wishes to continue in the real estate business, the licensee

Back 32

1) must retake the state exam within one year

2) must requalify for licensure

3) is allowed a six-month grace period to meet the requirement but must hold an inactive license during that period

4) must retake the prelicense course within one year

Front 33

Services of real estate do NOT include

Back 33

1) advertising rental property lists

2) appraising real property

3) selling cemetery lots for compensation

4) conducting an auction of real property

Front 34

Which statement BEST describes who must be licensed to practice real estate in Florida?

Back 34

1) anyone who performs any of the services of real estate

2) anyone who performs any of the services of real estate for another

3) anyone who performs any of the services of real estate for another for compensation

4) anyone who performs any of the services of real estate for another for compensation, unless specifically exempted by law

Front 35

Which individual is NOT exempt from licensure under F.S. 475

Back 35

1) Salaried employees of a governmental agency who perform real estate services for the state and do not receive commission

2) individual dealing in personal property only

3) individual serving as a personal representative and acting within the statutory limits of that designated role

3) an employee of a real estate developer who receives a salary plus bonuses based on sales quotas

Front 36

Which individual is NOT exempt from licensure under F.S. 475

Back 36

1) Salaried employees of a governmental agency who perform real estate services for the state and do not receive commission

2) individual dealing in personal property only

3) individual serving as a personal representative and acting within the statutory limits of that designated role

3) an employee of a real estate developer who receives a salary plus bonuses based on sales quotas

Front 37

A salaried individual manages a condominium building and rents units for three-month to six-month periods, THe manager

Back 37

1) must be licensed under FS 475 because leasing is one of the real estate services

2) must be licensed under FS 475 because she rents condominium units for compensation

3) must be licensed by the Division of Condominiums and Time Share Sales

4) is exempt from licensure under FS 475

Front 38

Which individual is NOT exempt from licensure under F.S. 475

Back 38

1) Salaried employees of a governmental agency who perform real estate services for the state and do not receive commission

2) individual dealing in personal property only

3) individual serving as a personal representative and acting within the statutory limits of that designated role

3) an employee of a real estate developer who receives a salary plus bonuses based on sales quotas

Front 39

A salaried individual manages a condominium building and rents units for three-month to six-month periods, THe manager

Back 39

1) must be licensed under FS 475 because leasing is one of the real estate services

2) must be licensed under FS 475 because she rents condominium units for compensation

3) must be licensed by the Division of Condominiums and Time Share Sales

4) is exempt from licensure under FS 475

Front 40

A developer purchased a tract of land and subdivided the property into individual lots. The developer hired his son, who was not licensed to sell the lots. The father agreed to pay his son a salary of $200/week. After 2 weeks, the son had sold only 2 lots, so the father decided to add an incentive. The father promised his son that after every fifth lot was sold, he would give his son a lot free and clear. After one more week, the son had sold only one more lot. The son quit his job to go work for another developer who paid a higher weekly salary. Which statement applies to this arrangement?

Back 40

1) there is no violation of FS 475

2) the son alone has violated FS 475

3) only the father has violated FS 475

4) both the father and the son have violated FS 475

Front 41

FBI files reveal that 6 months ago a man worked as a real estate broker in Georgia, where he was charged with arson related to a large insurance claim. To avoid a long court fight without pleading guilty, the man agreed to revocation of his real estate license and entered a plea of nolo contendere. The FREC has just received the man's application for licensure as a sales associate disclosing the above information. The application shows that all academic requirements have been met and a background check reveals no incriminating info other than the facts mentioned above. The FREC will probably decide that

Back 41

1) the man is not qualified for licensure

2) the man can be licensed based on the information on the application

3) because the man was never convinced of the charge in Georgia, he can be licensed in Florida

4) the recommendations from the references provide adequate grounds for the licensure of the man