Chapter 3

26. A licensee failed 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? (a) 2 years (b) 3 years (c) 4 years (d) 5 years

(a) 2 years

24. The DBPR receives a complaint regarding unlicensed real estate activity. Which of the following would be an appropriate DBPR response? (a) A cease and desist order (b) Jail time (c) An injunction (d) Suspension or revocation

(a) A cease and desist order

25. 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? (a) Executive powers (b) Quasi-judicial powers (c) Quasi-legislative powers (d) Injunctive relief

(a) Executive powers

15. When does a real estate license expire? (a) On the date shown on the license (b) Every two years (c) On the effective date (d) At the end of one year

(a) On the date shown on the license

9. Which of the following statements is true regarding the Director of the Division of Real Estate? (a) The Director is appointed by the Secretary of the Department of Business and Professional Regulation. (b) The Director is a member of the Florida Real Estate Commission. (c) The Director is not subject to confirmation or approval by the Florida Real Estate Commission. (d) The Director answers only to the Governor in the performance of his or her duties.

(a) The Director is appointed by the Secretary of the Department of Business and Professional Regulation.

14. When is a request for the renewal of a license effective? (a) When received by the Department (b) On the day following expiration (c) On the date the application is mailed (d) On the date indicated on the license

(a) When received by the Department

28. All of the following penalties could be imposed by the FREC, EXCEPT: (a) Probation (b) Administrative fine of up to $15,000 per offense (c) Suspension for up to 10 years (d) Revocation

(b) Administrative fine of up to $15,000 per offense

19. Which entity has the duty to prosecute violations of Commission rules? (a) Florida BAR Association (b) Department of Business and Professional Regulation (c) Florida State Attorney General (d) Sheriff of the county in which the violation occurred

(b) Department of Business and Professional Regulation

13. Educational requirements of applicants for a real estate license are promulgated under what authority of the Florida Real Estate Commission? (a) Ministerial (b) Executive (c) Quasi-legislative (d) Quasi-judicial

(b) Executive

10. The Department of Business and Professional Regulation (DBPR) is created by which Florida statute? (a) F.S. 120 (b) F.S. 455 (c) F.S. 475 (d) F.S. 494

(b) F.S. 455

22. A sales associate is licensed under an owner-developer that owns 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? (a) Multiple (b) Group (c) Corporate (d) Branch office

(b) Group

30. A licensee 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? (a) Voluntarily inactive (b) Involuntarily inactive (c) Suspended (d) Revoked

(b) Involuntarily inactive

8. The Florida Real Estate Commission held a meeting for the purpose of passing a new rule. This is an exercise of which Commission power? (a) Executive (b) Quasi-legislative (c) Quasi-judicial (d) Ministerial

(b) Quasi-legislative

23. 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? (a) Sarah cannot be a broker for two different corporations; The corporations must be merged into one entity. (b) Sarah may request a group license. (c) Sarah may request multiple licenses. (d) BBD should be registered as a branch office of XYZ Realty.

(b) Sarah may request a group license.

6. Which of the following entities issues real estate licenses? (a) The state of Florida (b) The Department of Business and Professional Regulation (c) The Department of Revenue (d) The Florida Real Estate Commission

(b) The Department of Business and Professional Regulation

3. Which statement is true regarding the Secretary of the Department of Business and Professional Regulation? (a) The Secretary is a member of the Florida Real Estate Commission. (b) The Secretary is appointed by the Governor. (c) The Secretary must be an attorney. (d) The Secretary answers to the state legislature in the performance of duties.

(b) The Secretary is appointed by the Governor.

29. 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 licensees at this company? (a) Provided there is at least one actively licensed broker, the business may continue to operate. (b) Revocation of the corporation has no effect on the licenses of the active brokers or sales associates within the corporation. (c) All licensees within the corporation are automatically inactive. (d) The registration of the corporation can be reinstated after a 90 day waiting period by filing the appropriate paperwork and paying the appropriate fees.

(c) All licensees within the corporation are automatically inactive.

1. The Department of Business and Professional Regulation has the authority to issue all of the following, EXCEPT: (a) A cease-and-desist order (b) A subpoena (c) An injunction (d) A notice of noncompliance

(c) An injunction

32. 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? (a) Suspended (b) Expired (c) Cancelled (d) Surrendered

(c) Cancelled

7. After being active in the real estate business for over five years, a licensee's license expired on September 30. What is the status of the license on October 1? (a) Suspended (b) Revoked (c) Involuntary inactive (d) Voluntary inactive

(c) Involuntary inactive

21. What specific information does an applicant for a real estate license provide that is considered to be public record? (a) Financial information (b) Test scores (c) Name and address (d) Medical information

(c) Name and address

18. Which of the following best describes certificates that are entered into court as evidence? (a) Of no value (b) Disqualified (c) Prima facie evidence (d) Proof of a fact

(c) Prima facie evidence

27. Which statement is true regarding a broker who wishes to operate two independent real estate brokerage corporations? (a) The broker cannot be an officer or director of more than one brokerage corporation. (b) The broker must register as a broker associate with one company, and can retain their broker status with the other company. (c) The broker can do this by requesting multiple licenses. (d) The broker should request a group license.

(c) The broker can do this by requesting multiple licenses.

20. A sales associate is employed by a broker Monday through Friday and for a builder on weekends. The sales associate feels the added experience is beneficial especially since both employers pay an attractive commission split. Which statement is correct? (a) The sales associate must obtain a group license. (b) Multiple licenses are requried in this situation. (c) This arrangement violates the license law. (d) This is permissible if both employers agree to the arrangement.

(c) This arrangement violates the license law.

12. What action may the Department take if it determines that an unlicensed person has operated in violation of a law or rule under its administration? (a) None, since the Department has no jurisdiction over unlicensed individuals. (b) It may issue an injunction prohibiting such activity in the future. (c) It may imprison the violator for up to 5 years. (d) An administrative fine of up to $5,000 may be imposed.

(d) An administrative fine of up to $5,000 may be imposed.

17. How long may a license remain in voluntary inactive status? (a) Two years (b) Four years (c) Ten years (d) Indefinitely

(d) Indefinitely

2. What is the maximum number of years a member may serve on the Florida Real Estate Commission? (a) 4 (b) 8 (c) 12 (d) No maximum

(d) No maximum

16. New Commission rules must be approved by which of the following entities? (a) The Department of Business and Professional Regulation (b) The Secretary of State (c) The Governor (d) No one

(d) No one

31. Which of the following statements accurately represent group and/or multiple licenses? (a) Sales associates and broker associates may be issued multiple licenses. (b) Brokers who have multiple offices are issued a group license. (c) Brokers are issued concurrent group and multiple licenses. (d) Sales associates and broker associates may be issued a group license.

(d) Sales associates and broker associates may be issued a group license.

4. The Division of Real Estate is an administrative part of which of the following? (a) The state of Florida (b) The Department of Commerce (c) The Department of Banking (d) The Department of Business and Professional Regulation

(d) The Department of Business and Professional Regulation

33. Which best describes the status of an applicant who has just passed the state examination for Sales Associate? (a) A license is issued at the testing facility. (b) The licensee must wait until the license is physically received before performing any service of real estate. (c) The licensee can automatically start to offer services of real estate since he or she has passed the exam. (d) The license is placed in inactive status until the licensee notifies the state that he/she has an active employer.

(d) The license is placed in inactive status until the licensee notifies the state that he/she has an active employer.

5. Which statement is true regarding examination questions and answers? (a) They are published in the Administrative Weekly before appearing in an examination. (b) They may not be challenged. (c) They may be reviewed by any member of the public upon request. (d) They are confidential.

(d) They are confidential.

11. If an applicant for a real estate license provides false information on their application, they commit which of the following criminal violations? (a) First-degree misdemeanor (b) Second-degree misdemeanor (c) Second-degree felony (d) Third-degree felony

(d) Third-degree felony