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137 Cards in this Set
- Front
- Back
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Which of the following statements is true regarding a mortgage loan originator (MLO)? |
A mortgage loan originator must have a separate license |
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A real estate appraisers fee for professional service is based on which of the following? |
The time and difficulty of the appraisal |
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Which of the following best describes the real estate brokerage business? |
Service business |
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When a developer complete construction of a new subdivision all streets electric, water, and sewer installation are finished and deeded to the city or county. What is this process called? |
Dedication |
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All the following are responsibilities of a property manager except: |
Preparing leases |
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What does the term "farming" refer to in real estate |
Specialization in one Geographic area |
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Which insurance policies can a real estate licensee offer to the public without additional state licensing? |
None of the above |
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What is the purpose of the National Association of Realtors? |
Preserve the rights of individuals to own real property through an exchange of information |
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What does the designation of realtor signify? |
The designation identifies the real estate professional as a member of the NAR |
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A developer contracts to build a home according to the buyer specifications. This is an example of which type of building? |
Custom |
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The federal, state, and local governments all play a role in the regulations of real estate. In which of the following areas would the local government have the most impact? |
Property taxes, building moratoriums, and zoning |
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Which of the following best describes licensees who are involved in business brokerage? |
They must be able to analyze financial statements and understand balance sheets |
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Real estate licensees are required to be knowledgeable in all of the following areas, except: |
Accounting |
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Which service provided by real estate licensees requires the most experience and knowledge? |
Counseling |
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An appraiser who is registered, license or certified under f. S. 475, part I I , must be utilized in which of the following? |
Federally related transactions |
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The Florida real estate commission was first created in what year? |
1925 |
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What is the purpose of real estate license |
To protect the public |
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Why was the Florida real estate commission (FREC, or the commission) created? |
To administer and enforce the law |
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A sales associate failed to complete the required post license education prior to their renewal deadline. What is the status of the sales associates license? |
Void |
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What does the registration of an active sales associate with the department refer to? |
Placing and keeping on record the sales associates and name, home address, and business address of his or her employing broker |
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How May a licensed sales associate be paid by an owner developer? |
On a commission or salary basis |
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What are the minimum employment requirements for a licensed Sales Associate to qualify for a real estate brokers license? |
Employed for 24 months under one or more actively licensed Brokers |
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How many hours of post license education are required to renew a broker's license? |
60 |
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All of the following services require a real estate license, except: |
Mortgaging |
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All of the following information appears on a Florida real estate license, except: |
The signature of the Governor |
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What must an applicant for a real estate license do if they have been convicted of a crime? |
The applicant must disclose all convictions on the application |
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Which condition must exist for an applicant to qualify for real estate license? |
The applicant must have a high school education or equivalent |
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Which of the following statements best describes an attorney in fact? |
An attorney in fact is authorized by a power of attorney to act for another |
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Which individual is exempt from the licensing requirements of Florida statue 475? |
An attorney who performs legal duties in connection with a real estate transaction |
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Which statement correctly applies to an actively licensed attorney who is a member in good standing with the Florida Bar? |
The attorney is exempt from biennial 14 hour continuing education requirements to maintain a real estate license |
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What is a broker associate? |
A broker who is employed as a sales associate |
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What is the agreement called that the state of Florida has with some other states which recognizes the similarity in education and Experience required of licensees? |
Mutual recognition |
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Which of the following statements is true regarding a plumber who has been appointed by the court to appraise a small business? |
The plumber may do so and be paid a fee |
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All of the following individuals are exempt from the real estate license law, except: |
A funeral director |
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A Georgia broker with extensive experience in conducting auctions was asked by a local real estate broker to auction a small motel in Jacksonville. Florida. The auction did not result in a sale. The Florida broker pay the Georgia broker for out-of-pocket expenses, but did not pay a commission which of the following statements is correct? |
The Georgia broker violated the license law |
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What are the requirements regarding licensure and registration for an owner developer who employs one or more real estate sales associates to sell Property belong to the owner developer? |
The owner developer does not need a real estate license but must register with the department |
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Blake received her initial sales associates license on August 23rd 2014 with an expiration date of March 31st 2016. If Blake does not complete her 45-hour post license course by the expiration date, what will the status of her license be? |
Void |
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Which of the following individuals is considered an attorney in fact? |
Someone who has been granted power of attorney |
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Which statement is correct concerning an applicant whose real estate application was denied by the Department of Business and Professional Regulation? |
The applicant must be notified in writing of the reason for the denial and advised of the right to request a formal hearing. |
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What term is used to refer to an individual who has obtained a Florida broker license, but chooses to work under another broker in the capacity of a sales associate? |
Broker associate |
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A sales associate did not complete their post licensing requirements by the expiration of the initial license. What grace. Will the state grant for the licensee to reinstate license? |
There is no grace period. The license is void. |
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An applicant for a real estate license had his/her application denied. All of the following are valid reasons for a denial, except? |
The applicant was not a US citizen |
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An active Florida licensee decides to move to North Carolina, but wishes to keep her Florida license active and continue to practice real estate in Florida. which of the following best describes the situation? |
The licensee must notify the department of her change of address, and continue to comply with all Florida regulations. |
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A license Sales Associate wishes to work for a broker A during the week, and works in a different town with broker B on the weekend. Which statement best describes the situation? |
This is a violation of FS 475 |
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The Department of Business and Professional Regulation has the authority to issue all of the following, except: |
An injunction |
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What is the maximum number of years a member may serve on the Florida real estate commission? |
No maximum |
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Which statement is true regarding the Secretary of Department of Business and Professional Regulation? |
The Secretary is appointed by the Governor |
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The division of real estate is an administrative part of which of the following? |
The Department of Business and Professional Regulation |
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Which statement is true regarding examination questions and |
They are confidential |
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Which of the following entities issues real estate licenses? |
The Department of Business and Professional regulation |
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After being active in the real estate business for over 5 years, and licensees license expired on September 30th. What is the status of the license on October 1st? |
Involuntary inactive |
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The Florida Real Estate Commission held a meeting for the purpose of passing a new rule. This is an exercise of which Commission power? |
Quasi legislative |
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Which of the following statements is true regarding the director of the Division of Real Estate? |
The director is appointed by the Secretary of the Department of Business and professional regulation |
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The Department of Business and Professional regulations (DBPR) is created by which Florida Statute? |
F. S. 494 |
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If an applicant for real estate license provides false information on there application, they commit which of the following criminal violations? |
Third degree felony |
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Which action may the department take if it determines that an unlicensed person has operated in violation of a law or rule under its a administration. |
Administrative fine of up to $5,000 may be imposed |
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When is a request for the renewal of a license effective? |
When received by the department |
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When does a real estate license expire? |
On the date shown on the license |
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New Commission rules must be approved by which of the following entities? |
No one |
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How long me a license remain in voluntary inactive status |
Four years |
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Which of the following best describes certificates that are entered into court as evidence? |
Prima facie evidence |
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Which entity has the duty to prosecute violations of commission rules? |
Department of Business and Professional Regulation |
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A sales associate is employed by a broker Monday through Friday and for a builder on the weekends. The sales associate feels that experience is beneficial especially since both employers paying attractive commission split. Which statement is correct? |
This arrangement violates the license law |
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What specific information does an applicant for a real estate license provide that is considered to be public record? |
Name and address |
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A sales associate is licensed under owner/developer that on several affiliated organizations. If the employer wishes to have the sales associate provide real estate services for these various organizations, what type of license should the sales associate request? |
Group |
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Sarah is an actively licensed broker for XYZ Realty, a registered real estate brokerage corporation. She has an opportunity to buy an existing real estate corporation, BBD Realty, Inc., in a town which is located 25 miles away Sarah wants to become the only broker for both corporations however she does not wish to change the name or combine the two corporations. How may Sarah accomplish this? |
Sarah me request multiple Licenses |
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The DBPR received a complaint regarding unlicensed real estate activity. Which of the following would be an appropriate DBPR response? |
A cease and desist order |
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The Florida Real Estate Commission has many duties and powers. Which of the following is the category of power that can only be performed specifically by the chairperson? |
Executive powers |
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He licensee fail to renew his or her license prior to the expiration date, and reverted to involuntarily inactive status. How long may this individual's license remain in this status before the license becomes null and void? |
2 years |
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Which statement is true regarding a broker who wishes to operate two independent real estate brokerage corporation? |
The broker can do this by requesting multiple licenses |
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The FREC issued a final order revoking the license of too much fun Realty, Inc. Which of the following best describes the status of the licensee's at this company |
All licensees within the corporation are automatically inactive |
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Your license he failed to complete the required 14 hour continuing education for their second renewal and their license expired on September 30th what is the status of the license on October 1st? |
Involuntarily inactive |
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Which of the following statements accurately represent Group and or multiple licenses? |
Sales Associate and broker associates may be issued a group license |
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A licensee without any pending disciplinary issues decides she no longer wishes to practice real estate and simply gives the license back. What is the status of the license after it is returned to the department? |
Cancelled |
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Which best describes the status of an applicant who has just passed the State Examination for sales associate? |
The license is place in inactive status until the licensee notifies the state he she has an active employer |
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Who owes fiduciary duties in a single agency relationship |
The broker only |
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All of the following activities are exempt from the requirement to provide disclosures under the brokerage relationship Disclosure Act, except: |
Showing property to a party that is not being represented |
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As an agent, a broker is employed by and acts on behalf of whom? |
A principal |
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In which of the following situations does a general agency relationship exists? |
When a sales associate is employed by a broker |
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Broker Joan just received an oral offer to purchase a listed property. No earnest money accompanied the oral offer. Which of the following statements is correct? |
Joan must present the offer |
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Which of the following statements best describes a transaction broker? |
A transaction broker provides limited representation to both parties |
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An agent failed to advise a principle regarding the value of the owners property prior to accepting a listing. Which fiduciary duty did the agent breach? |
Disclosure |
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Broker Tom sold the property which was listed with broker Alice. Tom was unable to attend the closing, so Alex collected the entire commission. Alice refused to pay Tom his share of the Commission. What could Alice be charged with? |
Failure to account |
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Mary, an Ohio broker, accompany the customer to Florida and met with broker stand in his office in Miami. While Stan showed the customer property and obtained a binding contract for the purpose of a condominium, Mary took some time off and went to the beach. When Mary returned to Stan's office, she discovered that Stan had written a contract and demanded a share of the Commission. Which statement is correct? |
Stan may share the commission with Mary |
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When can an agent disclose confidential or harmful information about a principal? |
Never |
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Each of the following is contained in the definition of a residential transaction, except: |
Dispositions of business interests involving property of five or more residential units |
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When can both parties in a transaction paper broker a commission? |
When both parties agree to dual commission |
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All the following provide control of agency relationships in real estate,Except: |
The Department of Financial Services |
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Which of the following statements best describes policy and procedures manuals? |
Policies and procedures manuals are useful in maintaining good relations within a brokerage office |
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A broker has appointed to sales associates to act as agents in a non residential transaction, one for the seller and one for the buyer which statement is correct? |
The sales associates are referred to as designated sales associates. |
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Each of the relationship is adversarial, except: |
Fiduciary |
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Fairness and honesty are required of all licensees in which brokerage relationship? |
Any real estate transaction |
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According to the brokerage relationship Disclosure Act, which is the only brokerage relationship form that must be signed and initialed? |
Consent to transition to transaction broker |
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Which of the following statements is correct regarding a broker's authority to act on behalf of the principal? |
A broker must follow all legal instructions of the principal or withdraw |
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In many brokerage relationship situations, the broker gets permission for the sales associate to work directly with a principal. Which of the following is true in this situation? |
The sales associate has a fiduciary relationship with both the broker and the principal |
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In regards to agency relationships, which statement is most correct ? |
A special agent is only authorized to perform a single act on behalf of the principal |
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Sal, a properly licensed Arizona broker, forms a relationship with Betty, a properly licensed Florida broker. Sal agrees to refer potential buyers to Betty, and in return, Betty agrees to pay sal 25% of her commission as a referral fee. Jorge, a competitor Betty's, discovers the relationship and files a complaint with DBPR. What will an investigation of the complaint most likely determine? |
The Florida real estate license law was not violated |
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Which of the following best describes the practice of dual agency in Florida? |
Dual agency is a violation of Florida Statute 475 |
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A prospective purchaser made a written offer to purchase a home listed by broker Ben. Before Ben presented the offer to the seller, a second prospective purchaser made a verbal offer of a $180,000 but did not put the offer in writing, and did not provide an earnest money. Which statement correctly describes Ben's situation? |
Ben is required to present both offers to the seller |
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A real estate licensee who is working with a seller received a call from another broker stating that "I am representing a buyer as the buyer's broker. I'm standing in front of one of your listed properties with my buyer." What can the licensee infer from the conversation? |
The agent was calling is in a single agency relationship |
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A home was listed and sold within 24 hours. The buyer felt that the broker did not earn the full commission called for in the contract and requested that the broker rebate $3,000 at closing. The broker agreed. Which of the following statements is correct? |
This is legal, provided that all parties are informed and agreed |
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A seller with non representation (no brokerage relationship) informed an agent that he is selling his home due to a divorce, and for that reason would take 20,000 dollars below market value. The agent told a potential buyer " if I were you, I would offer $20,000 less than the asking price. The seller is in the middle of a nasty divorce, and you'll likely get a good deal." Which of the following statements is correct? |
The agent may disclose the above information in a no brokerage relationship |
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Regarding single agency, which of the following statements is most correct? |
A licensee is prohibited from representing the buyer and seller as a single agent in the same transaction |
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Which brokerage relationship status includes a full fiduciary relationship? |
Single agency |
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Anxious to close a deal, a sales associate agreed to kick back part of her commission to the buyer. Which of the following best describes the situation? |
This arrangement is acceptable provided all parties are notified and agreed |
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A sales associate license with a real estate brokerage corporation can be which of the following? |
A stockholder |
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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? |
The partnership must be registered with the Commission and all six partners must be active real estate brokers. |
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Which of the following statements is correct regarding a licensed broker associate who is with a real estate brokerage partnership? |
The broker associate may make earnest money deposit with the broker's permission |
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If a broker has conflicting demands on money held in escrow, what is the first thing the broker should do? |
Notify the Florida real estate commission in writing |
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Sales Associate receives a postdated check, which of the following actions is the most appropriate? |
The sales associate should deliver the check to her employing broker by the end of the next business day |
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Which of the following statements regarding an ostensible partnership is correct? |
An ostensible partnership is not a true partnership |
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Who has the right to inspect the broker's escrow account records? |
The Department of Business professional regulation or its authorized representative |
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All the following businesses are required to file documents with the state, except: |
Corporation sole |
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Which condition would require location to be registered as a brokerage branch office |
Sales associates are permanently assigned to the location |
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Which statement best describes the office on requirements for a brokerage office? |
Every active broker must maintain a sign at each brokerage office or branch office |
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All of the following are authorized alternatives for a broker to use in order to resolve an escrow dispute, except: |
Obtaining attorney's opinion |
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A real estate brokerage firm advertises a list of properties. which requirement is correct |
The name of the brokerage must be included the ad. |
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Which of the following is an approved depository for earnest money? |
A bank within the state of Florida |
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Which must a real estate sales associate do upon receiving an earnest money deposit? |
Deliver the funds to his or her broker or owner developer |
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What action should have broker take a commission dispute arises prior to closing? |
Retain the exact amount of the disputed Commission in the escrow account of the dispute is settled |
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A prospective tenant pays a licensee to find a rental. What percentage of the fee paid me the prospective tenant receive if the licensee provides inaccurate information? |
100% |
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Three individuals decide to open a real estate brokerage office. Which statement best describes the legal requirements? |
At least one officer must be an active broker |
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A buyer drops off an escrow check on Tuesday. To avoid any trouble with , the broker must deposit the check by close of business day on which day? |
Friday |
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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? |
Joint venture |
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Which statement regarding the registration of real estate branch office is true? |
A brokerage branch office may be closed and reopened at the same location during the same license period By requesting a reissue |
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Where may a real estate broker office be located? |
In at least one room in a fixed location where in books and records may be retained and negotiations may be concluded |
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In which of the following institutions may a broker place escrow deposits |
Title companies, banks, savings and loan associations, and credit unions |
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Four individuals which the former 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? |
All partners must be licensed as active brokers |
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A business legally formed and registered as rich real estate, Inc. Is considered to be what type of organization? |
Corporation |
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Which business structure may be registered to broker real estate? |
Limited Partnership |
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What should a sales associate do if a purchaser wishes to present a post dated check? |
Obtain approval from seller and then turn the check over to the broker by close of business on the next day |
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A sales contract contains a contingency which states " this contract is contingent upon the by receiving 80 percent financing with an interest rate not to exceed 6 percent and a 30 year term." The buyer applied for financing and was turned down by three different lenders, resulting in his her ability to close on the transaction. The seller is claiming breach of contract. Which statement is correct concerning the escrow deposit? |
The broker may return the escrow money without notifying the FREC since the contract was subject to financing |
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Which of the following escrow dispute settlement procedures involves the use of interpleaser? |
Litigation |
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which business organization can legally register as a real estate brokerage? |
General partnership |
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There is a dispute over an escrow deposit. The parties agree to have a third-party hear both sides and make the final decision. What settlement (escape) procedure is being used to settle this dispute? |
Arbitration |
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If a real estate licensee is involved in a personal real estate transaction, which of the following would be correct? |
The licensee must disclose his or her license status prior to entering into any serious negotiations |
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Bob is a licensed sales associate, employed by broker Jerry. Jerry fails to pay Bob a commission so blah blah signs and is hired by broker Sam. Bob decides to sue for his loss commission. Which of the following is accurate regarding this scenario? |
Bob cannot bring a legal action for the claim Commission against anyone other than broker Jerry |
