Real estate questions
Licensees that are members of the armed forces have all renewal fees, dues, continuing education, and other requirements waived during military service for how long?
2 years
Which of the following statements is (are) true?
A Florida real estate broker can obtain multiple licenses, in certain circumstances
If an individual violates real estate licensing law, what action is the DBRP permitted to take?
An administrative fine of up to $ 5000
Which of the below provides the best description of a broker?
An agent who earns a fee, when bringing two parties together to complete a property transaction
Any Florida real estate license that is not renewed at the end of the license period:
Becomes inactive
Real estate brokers and salespersons often specialize in a particular geographic area or property type called
FARMING- "The method of target marketing often used by real estate professionals is also known as "farming". This method of marketing is used when real estate brokers and associates specialize in a particular geographical area or property type. Real estate professionals will make an effort to communicate and keep in touch with local residents in their area, on a regular basis, in order to encourage new business to a brokerage, and increase future transactions."
The seven members of the Commission must consist of;
Five licensed members and two unlicensed members
Which of the following is TRUE regarding the broker and broker associate 14-hour continuing education course?
If not completed within license renewal period, the license is classed as involuntary inactive.
Which statement is FALSE regarding mutual recognition agreements?
Mutual recognition applicants may be Florida residents or nonresidents
FREC holds a meeting to pass a new rule. Which power did the Commission exercise?
Quasi-legislative power
Which of the following is responsible for establishing application fees for broker and sales assistant licenses?
The FREC
Which of the statements is correct regarding membership on the Probable Cause Panel?
a and c but not b
Which of the following types of relationship may a real estate licensee not provide to principals and/ or customers?
dual agency relationship
A sub-agency can occur while a sales associate is representing:
either a buyer or a seller.
A principal:
empowers another to act for him/her.
The mission of the Department of Business and Professional Regulation is
license efficiently and regulate fairly
Which of the following options, best describes a broker associate
must work under the employ of a broker, and may not serve as a qualifying broker
An agent owes his principal all of the following duties except:
the duty of development
A dual agency is when the real estate agent represents:
the seller and buyer
Bob is a broker. He provides limited representation to both the buyer and the seller in the residential transactions. Bob is acting as a
transaction broker
Within how many days must a licensee inform the FREC of their change of business address?
10
For a licensee to successfully complete the continuing education requirements, and renew their real estate license, how many hours should the course take, as required by the Commission?
14
How many hours of classroom continuing education are required for Florida real estate licensees during every two years of a license period?
14
A license applicant has completed the 63-hour sales associate pre-license course. Within what period of time after being issued a course completion slip for the pre-license course must the applicant pass the state license exam?
2 years
For how long do members of the armed forces have their renewal fees and education fees waived ,when honorably discharged from military service?
2 years
If a license has been classified as involuntary inactive, what is the maximum period of time that the licensee has to take the reactivation course, before the license will be classified as null and void?
2 years
After completing their 63-hour pre-license sales associate course exam, all applicants must pass their final state exam, after
2 yrs
To become a real estate broker, a sales associate must have been actively licensed in Florida for a minimum of
2 yrs
In the event of relocation from the state of Florida, how many days does the licensee have to notify the commission?
60- "As previously explained, an applicant for licensure is not required to be a U.S. citizen, by law. However, in the event that a licensee relocates, out with Florida State, they must inform the Commission of their non-residency, within 60 days, as required by law. The licensee must meet all continuing education requirements, and post license courses, and notify the commission of any changes in address. Failure to notify the commission may result in a citation and a $300 fine."
What is the passing grade a student needs to achieve in order to pass Broker's Pre-License Course exam?
70%- "A licensed sales associate who meets the experience requirements, and who wishes to progress to a broker's license, must satisfactorily complete a FREC approved course consisting of 72 hours of education, with 3 hours of examination included. This course has been designated as Course II by the Commission. The student must pass the end of course examination with a grade of 70% or higher, and not miss a maximum of 8 hours of the prescribed 72 hours of education. Each hour, is equal to 50 minutes, as stated in the rules of the Administration. The end of course examination will be made up of 100 questions, equal to 1 point for each question."
Which of the following is the best description of a "subdivision"?
A HOUSING DEVELOPMENT CREATED BY DIVIDING A TRACT OF LAND INTO INDIVIDUAL LOTS- "A subdivision plat map will consist of a scale drawing, noting the divisions of a piece of land into lots (subdivisions). The plan will define characteristics, such as lot dimensions and numbers, bearings, tracts, street names, rights-of-way, and easements, as well as including the boundary description."
An agent must provide the relevant disclosure forms, in which of the following relationships? Relationship between seller and agent b. Relationship between seller and lender c. Relationship between buyer and agent d. both a and c
A and C
Under which of the following conditions, a real estate agent can refer to himself/herself as a Realtor?
A real estate agent who is a member of a local real estate board, affiliated with the National Association of Realtors- The majority of real estate licensees will join their local board or association of REALTORS®, and the NATIONAL ASSOCIATION OF REALTORS® upon receiving their real estate license, and only then will the licensee be able to refer to themselves as REALTORS®. In order for a licensee to refer to themselves as a REALTOR®, with the collective membership trademark, they must be a member of the NATIONAL ASSOCIATION OF REALTORS®.
Which of the following statements are correct?
A real estate broker may be issued multiple licenses under certain circumstances
In the purchase of a piece of property, which service would a buyer or a bank order to obtain the property "estimate of value"?
AN APPRAISAL- An appraisal, or opinion of value, is required in real estate, due to the fact that all property is unique. Property's uniqueness means that it is not possible to trade this particular asset in a centralized market. The reason for this is that market data collection, and the analysis of the market data is required, in order to provide an estimate of value, or in other words, a professional opinion of value. The method of appraising property is used in many instances, for example, verifying the value of a property when funding the purchase of property, by means of a loan, and also to instill confidence in the buyer when purchasing property, with the intent of making an investment. Appraisals are also a very important, and a necessary step in certain legal proceedings, such as divorce proceedings, when settling an estate.
A main duty of the real estate commission is to
Administer state licensing requirements
Which of these statements is correct? Usually, an agency relationship is created by an agreement between the principal and the subagent. b. agency relationship cannot be created by an oral or a written agreement c. Agency by implication may be created if someone reasonably believes that someone else is acting as his or her agent, and the agent fails to correct the mistake. d. Estoppel means parties involved in a property transaction are prohibited from discussing any matters regarding the sale upon closing.
Agency by implication may be created if someone reasonably believes that someone else is acting as his or her agent, and the agent fails to correct the mistake.
Which of these statements is False? An agent is not bound to inform the client of all facts that might affect the client's interests in the Transaction. b. An agent is responsible for discovering anything that might be deemed necessary to his client in making an informed decision c. An agent could be held liable for damages if he or she failed to disclose such information. d. None of these
An agent is not bound to inform the client of all facts that might affect the client's interests in the Transaction.
Which of the tasks below, do not require licensure ?
An employee tasked with performing real estate activities, for the business owner's property
Bill receives compensation for showing and selling houses. His license expired in March 2005, but he continued to sell real estate without a current license. He was caught by another broker who checked to see if he was a licensed person. He was reported to the FREC, but now he wants his license renewed. What is the most probable outcome?
Bill may receive a punishment of a fine of up to $5,000, or imprisonment.
An estimated value of a real estate property produced by a licensed real estate associate is called a
COMPARATIVE MARKET ANALYSIS- A Comparative Market Analysis (CMA), is when a licensee examines the listing prices, purchase prices of sold properties, and prices of properties that have not sold, of similar properties in the same area, and compares it to the property in which the licensee is valuing. They may make adjustments in the valuation, as no two properties are identical. This will conclude the licensees Comparative Market Analysis, in order to provide an educated estimation of value. The data is collected from the knowledge of the local market, and the multiple listing service (MLS), and looks at similarities of property in terms of appearance, features across historical data, purchase price data, and tax roll data to establish a properties fair market value.
Which service involves the analyzing of existing or potential projects, and providing advice?
COUNSELING- "Counseling is a service that is offered by professionals such as real estate professionals, industry experts, capital sources, and academics, to advise clients on investments, most frequently involving high value purchases. To provide counseling services, a licensee must be in possession of expertise and knowledge, to allow them to analyze existing, or potential projects. The ability to analyze information from sources such as feasibility studies, and fiscal and economic impact studies, as well as inheriting knowledge in areas, such as acquisitions and disposals, asset management, property development, pension fund consulting, valuations and appraisals, arbitration and mediations, will all contribute towards a successful counseling process, that provides the very best of advice to the client."
A home that is constructed to a buyer's specifications is called a:
CUSTOM HOME- Custom homes are built for specific buyers in order to satisfy individual style and taste. A builder will have to work closely with the buyer and architect, to ensure they produce the desired home for their client. It is generally more expensive to build a custom home, due to personal preferences from the client, and also for the reason that these types of homes are built, one at a time.
When a sales associate's employing broker changes his or her address, what happens to the license status?
Ceases to be in force
If Jeff's sales associate, the license has been expired (involuntary inactive) for 22 months, what must he do to reactivate his license?
Complete 28 hours of reactivation credit
Which of the following duties are not included in a no brokerage relationship between an agent and a customer?
Confidentiality
When all streets, electric, and water are finished and deeded to a city, on completion of a development, the process is known as:
DEDICATION- "Developers will often dedicate land to a governmental body for public use. It is defined by an offer of land, by the owner, with the acceptance, by or on behalf of the public, to put the land to public use. Subdivisions of land that may be dedicated for public use, can include plats designated for easements, streets, and rights-of-way. These plats, to be used as public areas, are conveyed on the plat map, to the local government."
Property designated for public streets and right-of-way is conveyed to local government through a process known as
DEDICATION- Developers will often dedicate land to a governmental body for public use, the process known as dedication. It is defined by an offer of land, by the owner, with the acceptance, by or on behalf of the public, to put the land to public use.. Subdivisions of land that may be dedicated for public use can include plats designated for easements, streets, and rights-of-way. These plats, to be used as public areas, are conveyed on the plat map, to the local government.
Which of the following duties are part of the FREC's quasi-judicial responsibilities?
Determine if licensing law violations have occurred
Which of the following duties is part of the Commissions quasi-judicial responsibilities?
Determining if a violation has occurred
The Department of State consists of which of the following divisions?
Division of Elections. Division of Historical Resources. Division of Corporations. Division of Library and Information Services. Division of Cultural Affairs. Division of Administration The correct answer is: All of these
The Department of State is permitted to implement rules under which law?
Florida Statute 20.10
If a real estate agent's license expires on September 30th, and they fail to meet continuing education requirements, what is the status of the license on October 1?
Involuntary inactive
Katy's license expired on September 30th. What is the status of her license on October 1, if she fails to meet renewal requirements?
Involuntary inactive
The licensee status that results when a license is not renewed at the end of the license period is referred to as:
Involuntary inactive.
Which of the following statements applies to mutual recognition?
Mutual recognition applicants must take a state exam on Florida real estate laws
Which of the following is a correct statement about group real estate licenses in Florida?
Only sales or broker associates, employed by a owner developer can receive a group license
Which of the following tasks a property manager is not responsible for?
PREPARING LEASES- Property Management is an important service provision to property owners, involved in leasing. A property manager will provide valuable services such as lease and service contract negotiations, rent collection services, maintenance and repairs, reporting on income and expenditure, property viewings, inspections, marketing and advertising rental properties, and liaising with home owner associations, tax officials, and insurance agents. A property manager is a valuable service provider to a rental property owner, as they will save them time and money, with the principle aim of increasing the property owners return on investment (ROI).
According to Florida Statute Chapter 475, which organization is responsible for investigating licensees, who are suspected of violating real estate license laws?
The Commission (FREC)
Which of the following statements stands for Reasonable skill and care?
The agent must provide his clients with quality, knowledgeable, and prudent service and live up to the trust they place in him/ her.
Which statement is correct as per licensing law and regulations?
The commission are not permitted to impose imprisonment as a penalty, but can refer a case to a criminal court, where the outcome can be imprisonment.
Which statement is correct, when referring to the 14-hour continuing education course, for broker and broker associate?
The course must be completed, within the second renewal period, in order to renew the license
What is the requirement of a state statute for the Commission to action a proposal?
There must be a majority vote of 4 Commission members
What is the maximum duration a Commission member is allowed to serve, as per Florida Statute?
Two consecutive four-year terms
What will the license status be, of a voluntarily inactive license, after 24 months considering that the licensee fulfilled the continuing education or post license requirements?
Voluntary inactive.
all applicants for licensure must submit
a completed application, electronic fingerprints, and appropriate fee- In order to make an application for a real estate license, applicants must complete the relevant DBPR application form in full, along with making full payment of the required fee. An individual starting out on their career in real estate, and studying the 63 Hour Sales Associate Pre-License Course, must complete the following license application form; SALES ASSOCIATE INITIAL APPLICATION (RE 1), available from the DBPR website. The form must be completed in full, and completed honesty, in regards to background history, to receive approval. An applicant must ensure that all the information required on the DBPR's checklist, provided with the application, is submitted, allowing for faster processing. Information required by the DBPR, in submitting a license application are; Electronic fingerprints for the purpose of background checks Any legal documentation, if applicable (in the case of previous convictions) The relevant fee stated for the license, on the application form. In order for an applicant to schedule their final state exam, for their initial sales associate license, the applicant must first successfully pass the 63 Hour Sales Associate Pre-License Course, to receive their final course certification, and have received the approval of their real estate license application, from the DBPR. The applicant can then schedule their final state exam and must present both their course certificate, and provide their license number (present on the license approval letter, from the DBPR) to the exam vendor, on the day of their exam.
Which of the following statement about dual agency in Florida is correct?
a dual agency is illegal
In which of the following circumstances is a real estate license required?
a person aiding others in the exchange of a property- "Florida statutes decree that any person that receives compensation, either monetary, or valuable tangible goods, for aiding in the lease, purchase, exchange, or sale of real estate, must hold a real estate license, unless one of the exemptions apply. As real estate services cover an extensive range of duties, including leasing, transfer of real property, and the advertisement of property, rules apply in order to define what services must be carried out by a licensed professional, and what services are exempt from licensure."
Under Florida law a person is a Florida resident if he/she is
a person who has resided in Florida, continuously for a period of 4 calendar months or more, within the preceding one year/ a person who presently resides in Florida, with the intention to reside continuously in Florida for a period of 4 months or more, commencing on the date that the person began the current period of residence in Florida- The definition of an individual who is recognized as a "Florida Resident" is a person who has been resident in the state of Florida, for a minimum of 4 months continuously, within a 1-year time period. Any individual that is recognized as a Florida resident is not permitted to apply for real estate licensure through the provision of mutual recognition. If a licensee is a resident of Florida, and not eligible for mutual recognition, then education exemptions do not apply to the applicant. The Florida resident will be required to fulfill all pre-license courses requisites, as set out by the Commission, and also be required to sit the full 100 questions based Florida state exam, for both sales associates and brokers.
Which of the following is a fiduciary?
agent
What type of relationship occurs between the broker and the seller, when a real estate broker takes a listing to sell someone's house?
agent-principal
Which of the following statements is correct? Auctioning of real property does not require agent disclosure. b. Agents are not required to provide disclosure when appraising real property. c. There are no disclosure requirements for renting or leasing real property as per Florida statute 475.278. d. All of these
all
Which statement is correct? The definition of a designated sales associate is one that provides fiduciary duties to a principle with a net worth of $1 million or more b. A dual agency occurs when an agent provides fiduciary duties to a buyer and seller, in the same transaction c. Special agency occurs when a principal delegates to a broker a specific task d. all of these
all
F.S. 475.278(5) (a) agency disclosure requirements do not apply to which of the following;
auctions
When purchasing a commercial property from a seller without the services of a real estate professional, a buyer would be well advised to carefully verify information conveyed regarding the property. This is sometimes referred to as:
caveat emptor
"Let the buyer beware", is an expression defined as?
caveat emptor- "As previously clarified, the Latin words "caveat emptor", means "let the buyer beware", and is a principle, meaning all the risk and responsibility rests on the consumer, in the purchase of an item, including property. For example, if a consumer were to purchase an item, without first checking that the item was of sufficient quality, and they later found a fault with their purchase, the onus, would fall on the consumer. There was no guarantee, or insurance, that the item they were purchasing was fit for purpose. Within real estate, the issue of "caveat emptor" was made clear by the fact there was no regulation, or punishment for real estate professionals, in cases of deception, or in misleading their clients, whereby the consumer would face monetary losses, or a risk to the public would be present."
Florida's real estate license laws, the eligibility requirements and the application process for obtaining a salesperson's or brokerage license are set forth in
ch 475 of the florida statutes- The State of Florida's first real estate license law was passed in 1923, by Florida Legislature, under Florida Statute Chapter 475 - REAL ESTATE BROKERS, SALES ASSOCIATES, SCHOOLS, AND APPRAISERS. Upon the creation of the Florida real estate licensing law, the Florida Legislature also created the Florida Real Estate Commission (FREC). The FREC was assigned the authority to administer and enforce the law, to conduct investigations, and to approve, reject, suspend, or revoke licenses. Prior to passing Florida's real estate law was, there was no protection for consumers, buyers, or sellers, involved in real estate transactions. All the risk and responsibility rested on the consumer, a principle also known as "caveat emptor," meaning "let the buyer beware," as there was no regulation, or punishment for real estate professionals, in cases of deception, or in misleading their clients. This new law was enacted to coincide with Florida Statute Chapter 20 ORGANIZATIONAL STRUCTURE, which stipulated the organizational structure of the Florida government's executive branches, and the establishment of the DBPR (Department of Business and Professional Regulation). The DBPR was tasked with the responsibility of overseeing the implementation of policies, and professions to be regulated, such as realtors, certified public accountants, construction, and electrical contractors, cosmetologists, and veterinarians. The Florida constitution created the DBPR in order to provide protection to consumers across a wide range of industries, including the real estate industry. Florida Statute Chapter 455, BUSINESS AND PROFESSIONAL REGULATION: GENERAL PROVISIONS was passed, in order to define the DBPR's legal procedures, practices, and to set an exemplar for each profession, the department was tasked to regulate. The passing of these laws in 1923, meant that any individual practicing real estate, and receiving compensation for their services, had to be licensed. The DBPR implements the law through policy and regulation, in which both licensed professionals, and consumers must be compliant with. In terms of the DBPR's regulation over the real estate profession, responsibilities include monitoring the activities and compliance of brokers, sales associates, and real estate schools, and conducting investigations into any activities carried out without the appropriate licensing. The Florida Real Estate Commission, also known as the "Commission" or "FREC," is supported by the DBPR (Department of Business and Professional Regulation)
The body of law that grew from customs and practices is:
common law
Unwritten law is also called:
common law
In a real estate transaction, the relationship of the potential buyer to the Broker is best described as:
customer
Which of the following fiduciary duties requires an agent to make known to his or her principal all facts necessary to make an informed and intelligent decision?
disclosure
Failure to inform all principals that a licensee is acting as an agent for more than one party in a transaction is known as:
dual agency
If an agent decides to represent a client and customer in the same transaction, what type of agency has occurred?
dual agency
The Florida Real Estate Commission (FREC) was created to protect the public through
education and regulation of real estate licensees- The Florida Real Estate Commission (FREC) was established in 1925, with the purpose of administering, and enforcing Florida real estate license law, as defined by Florida Statute Chapter 475. Chapter 475 of Florida Statutes, sets out the rules and regulations, that an individual must adhere to, to become a real estate licensee, and what services they can legally provide a consumer, under what conditions, once licensed. The law states that any individual that proposes to become a licensee must be registered with the Florida Real Estate Commission (FREC), and obtain, and renew their license for each licensing period. To enable the FREC to fulfill its executive duties, the Commission was given authority, in the form of Florida Statute Chapter 120 ADMINISTRATIVE PROCEDURE ACT, to pass and enforce a set of rules, as stated in the Florida Administrative Code, Chapter 61J2: Florida Real Estate Commission. Chapter 61J2 of the Florida Administrative Code is comprised of rules about license applications and fees, examination rules and minimum education requirements, real estate business operations, and disciplinary proceedings, etc. The FREC has also been assigned the authority to approve, reject, suspend and revoke licenses, as well as keeping records and conducting investigations on suspected unlicensed activities. The main purpose of the Florida Real Estate Commission in exercising these rules is to protect consumers by educating and regulating real estate licensees.
Any applicant for licensure who has received a 4-year degree in real estate from an accredited institution of higher education is
exempt from the Commission-prescribed prerequisite education courses for licensure exempt from the 63-hour pre-licensing course, but must make the application and take the state exam include an official transcript(s) with their application
When dealing in residential property, which of the following instances, is a violation of real estate law?
failure to give the agency disclosure form(s) before, or at the time of, entering into a listing agreement or an agreement for representation or before the showing of the property
What name is given to a type of a relationship that exists between an agent and a principal?
fiduciary
The seller of a property instructs an agent to market and sell his property. The agent is working in the form of a
general agency
Which of the following is not a requirement, to obtain a real estate license in Florida:
have a 4 year degree in real estate
A licensed real estate sales associate or broker who has real estate experience in another state may apply the experience toward a Florida broker's license if the applicant has
held an active license in that state for at least 24 months during the preceding five years
A broker wishes to be issued several broker licenses for business reasons. She may:
hold multiple licenses.
If a licensed agent is employed under a broker, whereby the broker's license has been suspended, the agent's license status will be considered:
involuntarily inactive
An agent meets with a client in their home for the first time, and the couple decides to sign the listing agreement authorizing the Broker as their listing agent. The agent loves the home and believes it would make a great starter home for Jack, her 'neighbor's son. The agent holds an open house and receives two offers along with 'Jack's offer. These offers are all very similar. Then just before she (agent) leaves to present the offer, she gets a new offer, which is much better than the current offers. Even though she wants Jack to get the home, she shows all offers to her client. Which of the six agent responsibilities did the agent demonstrate?
loyalty
If a licensee fails to renew their sales associate license in their first renewal period, 24 months after receiving their initial license, the license will be classed as
null and void
All of the following are powers and duties of the Florida Real Estate Commission except:
passing laws to regulate the transfer of property
The primary reason for regulations is the
protection for the consumer
The Division of Real Estate protects the public by
regulation of real estate and appraisal licensees
The FREC has been delegated the authority to
revoke a broker's license
A real estate broker who is authorized by a principal to perform a specific task is known as a:
special agent
A real estate agent John from the same brokerage finds a seller for a buyer representative's client. What type of agent is John?
subagent