Chapter 5

Front 1

A sales associate licensed with a real estate

brokerage corporation can be which of the

following?

(a) An officer
(b) A stockholder
(c) A director
(d) An officer and a director

Back 1

A stockholder

Front 2

Six individuals decide to form a real estate brokerage

partnership. All six individuals are planning to be active in

real estate sales. Which statement best applies?

(a) The partnership must be registered with the Commission,

and all six partners must be active real estate brokers.
(b) At least one partner must be licensed as an active broker.
(c) Only two partners must have a real estate license.
(d) A partnership cannot be formed as a brokerage business.

Back 2

The partnership must

be registered with the

Commission, and all six

partners must be active

real estate brokers.

Front 3

Which of the following statements is correct regarding a licensed broker associate who is with a real estate brokerage partnership?

(a) The broker associate may be a member of the partnership.
(b) The broker associate may make earnest money deposits with the broker's permission.
(c) The broker associate must hold an active broker's license.
(d) The broker associate may not provide real estate brokerage services to others.

Back 3

The broker associate may

make earnest money deposits with the broker's permission.

Front 4

All of the following business formations

can register to conduct real estate

transactions, EXCEPT:

(a) Corporation for profit
(b) Not-for-profit corporation
(c) Corporation sole
(d) Limited partnership

Back 4

Corporation sole

Front 5

If a broker has conflicting demands on money held in escrow,

what is the first thing the broker should do?

(a) Consult with a real estate attorney who is experienced in

handling escrow problems.
(b) Refer the parties to FREC.
(c) Give the escrow money to the closing agent.
(d) Notify the Florida Real Estate Commission in writing.

Back 5

Notify the Florida Real

Estate Commission

in writing.

Front 6

If a sales associate receives a post-dated check, which of

the following actions is the most appropriate?

(a) The sales associate should deliver the check to her

employing broker by the end of then next business day.
(b) The sales associate should refuse to submit the offer

without a cashier's check.
(c) The sales associate should hold the check, and give the

check to her employing broker when it becomes valid.
(d) The sales associate should cash the check, and deposit the

funds into her broker's escrow account.

Back 6

The sales associate should

deliver the check to her

employing broker by the

end of then next business

day.

Front 7

Which of the following statements regarding an ostensible

partnership is correct?

(a) An ostensible partnership is required to file documents

with the Secretary of State.
(b) An ostensible partnership is not a true partnership.
(c) An ostensible partnership cannot be created by real estate

brokers.
(d) An ostensible partnership will not be treated as though the

participants were partners.

Back 7

An ostensible partnership is not a true partnership.

Front 8

Who has the right to inspect a broker's

escrow account records?

(a) The parties to a real estate transaction
(b) The Department of Business and

Professional Regulation or its authorized

representatives
(c) The state Attorney General
(d) A public defender

Back 8

The Department of Business

and Professional Regulation

or its authorized

representatives

Front 9

All of the following businesses are required

to file documents with the state, EXCEPT:

(a) Corporation for profit
(b) Not-for-profit corporation
(c) Corporation sole
(d) Cooperative association

Back 9

Corporation sole

Front 10

Which condition would require a location to be registered

as a brokerage branch office?

(a) Tables and chairs are provided for sales associates and

customers.
(b) The location is used as a shelter to get out of the sun

or rain.
(c) Literature which contains the broker's office address is

handed out.
(d) Sales associates are permanently assigned to the location.

Back 10

Sales associates are

permanently assigned

to the location.

Front 11

Which statement best describes the office sign requirements

for a brokerage office?

(a) Only one sign per firm is required regardless of the number

of offices.
(b) Each sales associate associated with the firm must have a

separate sign.
(c) Every active broker must maintain a sign at each brokerage

office or branch office.
(d) Office signs are permitted but not required by law.

Back 11

Every active broker must

maintain a sign at each

brokerage office or branch

office.

Front 12

All of the following are authorized

alternatives for a broker to use in order

to resolve an escrow dispute, EXCEPT:

(a) Seek an escrow disbursement order

from the Commission.
(b) Submit the escrow dispute to mediation

or arbitration.
(c) Seek a court decision to resolve the

escrow dispute.
(d) Obtain an attorney's opinion.

Back 12

Obtain an attorney's

opinion

Front 13

A real estate brokerage firm advertises a

listed property. Which requirement is

correct?

(a) The name of at least one sales associate must be included in the ad.
(b) The name of the brokerage must be

included in the ad.
(c) The ad may not be prepared by sales

associate.
(d) The names of sales associates may

not be included in the ad.

Back 13

The name of the brokerage

must be included in the ad.

Front 14

Which of the following is an approved

depository for earnest money?

(a) A bank within the state of Florida
(b) A stock brokerage firm
(c) A broker's personal checking account
(d) A safe located in a real estate office

Back 14

A bank within the

state of Florida

Front 15

What must a real estate sales associate do upon receiving an earnest money deposit?

(a) Deposit the funds in an insured bank

account.
(b) Deliver the funds to his or her broker

or owner-developer.
(c) Deposit the funds in an escrow

account.
(d) Deposit the funds with the Florida Real

Estate Commission.

Back 15

Deliver the funds to his

or her broker or

owner-developer.

Front 16

What action should a broker take if a commission dispute arises prior to closing?
(a) Return the deposit to the buyer or seller based on which party asks for it first.
(b) Withdraw the amount of the commission from the escrow account.
(c) Retain the exact amount of the disputed commission in the escrow account until the dispute is settled.
(d) Distribute the escrow funds according to the directions of the company attorney.

Back 16

Retain the exact amount of

the disputed commission in

the escrow account until

the dispute is settled.

Front 17

A prospective tenant pays a licensee to

find a rental. What percentage of the fee

paid may the prospective tenant receive

if the licensee provides inaccurate

information?

(a) 100%
(b) 75%
(c) 25%
(d) 0%

Back 17

100%

Front 18

Three individuals decide to open a real estate brokerage office.

Which statement best describes the legal requirements?

(a) Sales associates are not permitted to own stock in the

entity.
(b) All sales associates, broker associates, and brokers who are

registered with the firm must be either officers or directors.
(c) If a sales associate wishes to be an officer or director, his

or her license must be placed on inactive status.
(d) At least one officer must be an active broker.

Back 18

At least one officer must

be an active broker.

Front 19

A buyer drops off an escrow check on

Tuesday. To avoid any trouble with

FREC, the broker must deposit the

check by close of business on which day?

(a) The following Monday.
(b) Wednesday.
(c) Thursday.
(d) Friday.

Back 19

Friday.

Front 20

When two or more parties participate

together in one transaction where no

formal paperwork or registration is

completed, which type of business

relationship has typically been formed?

(a) Joint venture
(b) Corporation
(c) General partnership
(d) Limited partnership

Back 20

Joint venture

Front 21

Which statement regarding the registration of real estate

branch offices is true?

(a) A broker may conduct business from more than one

unregistered office as long as the principal office is registered

with the DBPR.
(b) A brokerage branch office may be closed and reopened

at the same location during the same license period by

requesting a reissue.
(c) When a registered branch office is moved, a fee must

be paid, but a new application for registration is not required.
(d) A temporary shelter must always be registered as a branch

office.

Back 21

A brokerage branch office

may be closed and reopened

at the same location during

the same license period

by requesting a reissue.

Front 22

Where may a real estate brokerage office

be located?

(a) A residential neighborhood which

prohibits commercial properties
(b) In a motorhome
(c) In at least one room in a fixed location wherein books and records may be

retained and negotiations may be

conducted
(d) In a broker's car

Back 22

In at least one room in a fixed

location wherein books and

records may be retained

and negotiations may be

conducted

Front 23

In which of the following institutions may a broker place

escrow deposits?

(a) Title companies, banks, savings and loan associations,

and credit unions
(b) Mortgage companies, savings and loan associations,

finance companies, and credit unions
(c) Insurance companies, savings and loan associations,

credit unions, and title companies
(d) Stock brokers, finance companies, banks, savings and

loan associations, and mortgage companies

Back 23

Title companies, banks,

savings and loan

associations, and credit

unions

Front 24

Four individuals wish to form a real estate brokerage

partnership. All partners will work with buyers and sellers,

showing properties and taking listings. Which statement

best describes the necessary legal requirements?

(a) All partners must be licensed as active brokers.
(b) The partners are not required to have real estate licenses,

but the profits must be distributed equally amongst all four

partners.
(c) The partnership must be registered with the Department

of Business & Professional Regulation and at least one

partner must be licensed as an active broker.
(d) At least one partner must be licensed as an active

broker and the others may be licensed as sales associates,

or brokers.

Back 24

All partners must be

licensed as active brokers.

Front 25

A business legally formed and registered

as Rich Real Estate, Inc. is considered to

be what type of organization?

(a) Joint venture
(b) Limited partnership
(c) General partnership
(d) Corporation

Back 25

Corporation

Front 26

Which business structure may be

registered to broker real estate?

(a) Trust
(b) Joint venture
(c) Limited partnership
(d) Unincorporated association

Back 26

Limited partnership

Front 27

What should a sales associate do if a purchaser wishes

to present a post dated check?

(a) Obtain approval from the seller and then turn the check

over to the broker by close of business on the next

business day.
(b) Check with the broker to make sure the broker agrees

with the payment.
(c) Turn the check over to the broker by close of business t

he next business day.
(d) Return the check to the purchaser and ask them for a

new one with the correct date.

Back 27

Obtain approval from the

seller and then turn the

check over to the broker by

close of business on the

next business day.

Front 28

What should a sales associate do if a purchaser wishes to

present a post dated check?

(a) Obtain approval from the seller and then turn the check

over to the broker by close of business on the next business

day.
(b) Check with the broker to make sure the broker agrees

with the payment.
(c) Turn the check over to the broker by close of business

the next business day.
(d) Return the check to the purchaser and ask them for a

new one with the correct date.

Back 28

Litigation

Front 29

A sales contract contains a contingency which states "this

contract is contingent upon the buyer receiving 80% financing

with an interest rate not to exceed 6% and a 30 year term."

The buyer applied for financing and was turned down by three

different lenders, resulting in his/her inability to close on the

transaction. The seller is claiming breach of contract. Which

statement is correct concerning the escrow deposit?

(a) The broker may return the escrow money without

notifying the FREC since the contract was subject to financing.
(b) The agent should check with FREC before disbursing any

money.
(c) The Broker may return the money provided there was a

rescission period also documented in the Sales Contract.
(d) Escrow money is always nonrefundable.

Back 29

The broker may return the

escrow money without

notifying the FREC since

the contract was subject

to financing.

Front 30

Which business organization can legally

register as a real estate brokerage?

(a) Corporation Sole
(b) General Partnership
(c) Ostensible Partnership
(d) Joint Venture

Back 30

General Partnership

Front 31

There is a dispute over an escrow deposit.

The parties agree to have a 3rd party hear both sides and make the final decision.

What settlement (escape) procedure is

being used to settle the dispute?

(a) Mediation
(b) Arbitration
(c) Interpleader
(d) Escrow Disbursement Order

Back 31

Arbitration

Front 32

If a real estate licensee is involved in a personal real estate

transaction, which of the following would be correct?

(a) The licensee must disclose his or her license status in

any advertising.
(b) The licensee must disclose the license status on any yard

sign using terminology such as "owner agent."
(c) The licensee is not required to disclose his or her license

status in a personal transaction.
(d) The licensee must disclose his or her license status prior

to entering into any serious negotiations.

Back 32

The licensee must disclose

his or her license status

prior to entering into

any serious negotiations

Front 33

Bob is a licensed sales associate, employed by broker Jerry.

Jerry fails to pay Bob a commission, so Bob resigns and is hired

by broker Sam. Bob decides to sue for his lost commission.

Which of the following is accurate regarding this scenario?
(a) Bob cannot bring a legal action for the claimed commission

against anyone other than broker Jerry.
(b) Broker Sam must sue broker Jerry for the commission due

to Bob, since Bob is now employed by Sam.
(c) Sam assumed responsibility for the unpaid commission

when he employed Bob.
(d) Bob may file a lis pendens against either Sam or Jerry

for the commission due him.

Back 33

Bob cannot bring a legal action for the claimed commission against anyone other than

broker Jerry.