Florida Real Estate License Exam Prep

If an applicant for licensure has not successfully passed the licensure examination,

(b) his/her license can be denied. Passing the examination is a requirement of initial licensure.

What is the maximum imprisonment time allowed for a misdemeanor of the second degree?

(a) 60 days For violations of F.S. 475, a misdemeanor in the second degree, the maximum penalty is a fine up to $500 and/or up to 60 days imprisonment.

Which of the following statements is FALSE?

(a) All advertising must include the brokerage phone number and image of the broker. While the brokerage name is required, the phone number and picture of the broker are not.

A notice of noncompliance may be issued for a minor violation. Which of the following falls within the statutory guidelines of a "minor violation"?

(a) Broker Hale failed to maintain a sign at his brokerage office. "A violation is a minor violation if it does not demonstrate a serious inability to practice the profession, result in economic or physical harm to a person, or adversely affect the public health, safety, or welfare or create a significant threat of such harm." 455.225 Failing to hang a sign is a minor violation unlike the other answer choices which are more serious.

Which Florida statute or code covers the Commission's administrative rules that include detailed principles for real estate practice?

(a) Chapter 61J2 Chapter 61J2 is the Florida Real Estate Commission's administrative rules pursuant to Chapter 120 that include detailed principles for real estate practice. It is an expansion of the Chapter 475 provisions. 61J2

If a broker receives a kickback, what must he or she do?

(a) Disclose it to all involved parties "Any real estate licensee who receives, or makes any arrangement or agreement to receive, directly or indirectly, any kickback or rebate... shall have fully advised the principal if any and all affected parties in the transaction(s), which the licensee is handling, of all facts pertaining to the arrangement of kickbacks or rebates. " 61J2- 10.028

Which of the following is not an option for the respondent to a filed complaint?

(a) Dispute the allegations and be provided an informal hearing "A formal hearing before an administrative law judge from the Division of Administrative Hearings shall be held pursuant to chapter 120 if there are any disputed issues of material fact." 455.225

Which of the following is a duty of a transaction broker but not a duty of a single agent?

(a) Limited confidentiality "TRANSACTION BROKER RELATIONSHIP... The duties of the real estate licensee in this limited form of representation include the following: ... Limited confidentiality, unless waived in writing by a party." 475.278(2)(f)

Which of the following is a duty or power of the Department of Business and Professional Regulation?

(a) Suspend the license of a broker who is not in compliance with a support order "The department shall, when directed by the court or the Department of Revenue pursuant to s. 409.2598, suspend or deny the license of any licensee found not to be in compliance with a support order, subpoena, order to show cause, or written agreement entered into by the licensee with the Department of Revenue." 455.203(9)

Which of the following statements is false when a business entity wishes to register as a brokerage?

(a) The entity must have at least one active broker or sales associate as an officer, director, member, manager, or partner. The entity must have at least one active broker, but a sales associate may not be an officer, director, member, manager, or partner.

In a brokerage relationship that involves designated sales associates, what is the role of the broker?

(a) To advise and assist the sales associates "However, Florida law allows a designated sales associate to disclose information allowed to be disclosed or required to be disclosed by law and also allows a designated sales associate to disclose to his or her broker, or persons specified by the broker, confidential information of a customer for the purpose of seeking advice or assistance for the benefit of the customer in regard to a transaction." 475.2755(1)

What is the purpose of the Brokerage Relationship Disclosure Act?

(a) To provide customers with a greater understanding of real estate transactions and broker relationships "In order to eliminate confusion and provide for a better understanding on the part of customers in real estate transactions, the Legislature finds that the intent of the Brokerage Relationship Disclosure Act is to provide that: (1) Disclosed dual agency as an authorized form of representation by a real estate licensee in this state is expressly revoked; (2) Disclosure requirements for real estate licensees relating to authorized forms of brokerage representation are established; (3) Single agents may represent either a buyer or a seller, but not both, in a real estate transaction; and (4) Transaction brokers provide a limited form of nonfiduciary representation to a buyer, a seller, or both in a real estate transaction." 475.272

Under Florida Deceptive and Unfair Trade Practices, the penalty for willful unfair or fraudulent advertising is

(a) civil penalty of not more than $10,000. "Except as provided in s. 501.2077, any person, firm, corporation, association, or entity, or any agent or employee of the foregoing, who is willfully using, or has willfully used, a method, act, or practice declared unlawful under s. 501.204, or who is willfully violating any of the rules of the department adopted under this part, is liable for a civil penalty of not more than $10,000 for each such violation." 501.2075

A broker has not violated Florida antitrust laws if he/she

(a) meets with another brokerage to compare listed properties. Comparing listed properties does not constitute any form of trade restraints, conspiracy, monopolization, etc.

A broker's post-license education requirement includes?

(a) passing end-of-course exam. "The commission may prescribe a post licensure education requirement in order for a person to maintain a valid broker's license, which shall not exceed 60 classroom hours of 50 minutes each, inclusive of examination, prior to the first renewal following initial licensure." 475.17(4)(a)

The Florida Real Estate Commission consists of

(a) seven members, all appointed by the Governor. "There is created within the department the Florida Real Estate Commission. The commission shall consist of seven members who shall be appointed by the Governor, subject to confirmation by the Senate." 475.02(1)

Violators of Florida antitrust laws can be sued for recovery of

(a) three times the amount of the damage. "Any person who shall be injured in her or his business or property by reason of any violation of s. 542.18 or s. 542.19 may sue therefor in the circuit courts of this state and shall recover threefold the damages by her or him sustained, and the cost of suit, including a reasonable attorney's fee." 542.22

The Florida Antitrust Act of 1980 was enacted

(a) to complement the federal antitrust laws. "The Legislature declares it to be the purpose of this act to complement the body of federal law prohibiting restraints of trade or commerce in order to foster effective competition." 542.16

Florida allows brokers to deposit personal funds into a sales escrow account. What is the allowed limit of personal funds?

(b) $1,000 "A broker may place and maintain up to $1,000 of personal or brokerage funds per each sales escrow account." 61J2-14

If Charlie submits an application for licensure, completes the educational requirements, but does not pass the licensing exam, when will Charlie's application expire?

(b) 2 years after it was received "The application shall expire 2 years after the date received if the applicant does not pass the appropriate examination." 475.181(2)

If an applicant omitted information on the license application, within what time frame must the applicant be notified to correct the error?

(b) 30 days "Upon receipt of a license application, an agency shall examine the application and, within 30 days after such receipt, notify the applicant of any apparent errors or omissions and request any additional information the agency is permitted by law to require." 120.60(1)

Which of the following must be licensed as a real estate broker, broker associate, or sales associate?

(b) Anyone procuring purchasers of business opportunities "... or who takes any part in the procuring of sellers, purchasers, lessors, or lessees of business enterprises or business opportunities or the real property of another..." 475.01(1)(a)

What might be the best way to conduct an ethical real estate practice?

(b) Apply the Golden Rule. Do unto others as you would have them do unto you is the ethical code that directs you to treat others as you would want to be treated. It is also known as the ethic of reciprocity. The behavior of any other agent cannot be relied upon to be ethical, and ethics are not regulated by statutes. Therefore, an act can be legal but not ethical.

Where may trust funds not be deposited?

(b) Broker's business account "'Trust' or 'escrow' account means an account in a bank or trust company, title company having trust powers, credit union, or a savings and loan association within the State of Florida." 61J2- 14.008

Which statute established general provisions for the Department of Business and Professional Regulation?

(b) Chapter 455 Florida Statute Chapter 455 establishes the general provisions for Business and Professional Regulation, including provisions for military personnel on active duty, spouses of military personnel on active duty, and immigrants practicing real estate.

Which Florida statute establishes real estate licensees' legal rights and responsibilities?

(b) Chapter 475 "Purpose.—The Legislature deems it necessary in the interest of the public welfare to regulate real estate brokers, sales associates, and schools in this state." 475.001

Which of the following business entities may not register as a brokerage?

(b) Corporate sole Only sole proprietorships, general and limited partnerships, corporations, LLCs, and limited liability partnerships can register.

Which type of agency is illegal in Florida?

(b) Dual "Disclosed dual agency as an authorized form of representation by a real estate licensee in this state is expressly revoked..." 475.272(1)

What is the best definition for "real estate"?

(b) Interest in land, business enterprises, or business opportunities with some exceptions "'Real property' or 'real estate' means any interest or estate in land and any interest in business enterprises or business opportunities, including any assignment, leasehold, subleasehold, or mineral right; however, the term does not include any cemetery lot or right of burial in any cemetery; nor does the term include the renting of a mobile home lot or recreational vehicle lot in a mobile home park or travel park." 475.01(1)(i)

If a broker's license has become void during a period of economic hardship, when can his license be reinstated?

(b) It can be reinstated within 6 months. "The commission may reinstate the license of an individual whose license has become void if the commission determines that the individual failed to comply because of illness or economic hardship, as defined by rule. The individual must apply to the commission for reinstatement within 6 months after the date that the license becomes void." 475.183(4)

If a sales associate terminates his employment with one broker and becomes employed with another broker, what happens to the associate's license?

(b) It ceases to be in force. "A license shall cease to be in force whenever a broker changes her or his business address, a real estate school operating under a permit issued pursuant to s. 475.451 changes its business address, or a sales associate working for a broker or an instructor working for a real estate school changes employer." 475.23

Harold filed his application for sales associate licensure 31 days ago. To date he has not heard if his application has been approved or not. What is the status of Harold's application?

(b) It is still pending approval until 90 days have passed. "Any application for a license which is not approved or denied within the 90-day or shorter time period, within 15 days after conclusion of a public hearing held on the application, or within 45 days after a recommended order is submitted to the agency and the parties, whichever action and timeframe is latest and applicable, is considered approved..." 120.60(1)

Sales associate Ken wants to sell Susan's property and earn a commission for doing so. How may Ken legally sell the property and earn the commission?

(b) Ken would need to act under his registered employer and collect the commission in his employer's name. "...no real estate sales associate, whether the holder of a valid and current license or not, shall commence or maintain any action for a commission or compensation in connection with a real estate brokerage transaction against any person except a person registered as her or his employer at the time the sales associate performed the act or rendered the service for which the commission or compensation is due." 475.42(1)(d)

Which of the following is not an administrative penalty for law or rules violations?

(b) License cancelation "For purposes of this rule, the order of penalties, ranging from lowest to highest, is: reprimand, fine, probation, suspension, and revocation or denial." 61J2-24

Which of the following information is not required as part of the minimum information to be included in an escrow account statement-reconciliation?

(b) Names of depositors "The minimum information to be included in the monthly statementreconciliation shall be the date the reconciliation was undertaken, the date used to reconcile the balances, the name of the bank(s), the name(s) of the account(s), the account number(s), the account balance(s) and date(s), deposits in transit, outstanding checks identified by date and check number, an itemized list of the broker's trust liability, and any other items necessary to reconcile the bank account balance(s) with the balance per the broker's checkbook(s) and other trust account books and records disclosing the date of receipt and the source of the funds." 61J2-14

Ted is a licensed real estate broker in Florida, but he is moving to North Dakota to live. What should Ted do about his Florida broker license?

(b) Notify the Commission of his change of residency and comply with nonresident requirements "Any resident licensee who becomes a nonresident shall, within 60 days, notify the commission of the change in residency and comply with nonresident requirements. Failure to notify and comply is a violation of the license law, subject to the penalties in s. 475.25." 475.180(2)(a)

Tania has just received her sales associate license. When must she complete her post-license education requirements?

(b) Prior to the first renewal of her license "The commission may prescribe a post licensure education requirement in order for a person to maintain a valid broker's license, which shall not exceed 60 classroom hours of 50 minutes each, inclusive of examination, prior to the first renewal following initial licensure." 475.17(4)(a)

If a broker conducts business at a location other than the principal brokerage office, what is the broker required to do?

(b) Register the second location as a branch office "Whenever any licensee desires to conduct business at some other location, either in the same or a different municipality or county than that in which she or he is licensed, such other place of business shall be registered as a branch office, and an annual registration fee prescribed by the commission, in an amount not exceeding $50, shall be paid for each such office." 475.24

If there is a dispute involving the amount of the broker's commission, what may the broker do regarding the trust funds in the associated escrow account?

(b) Retain the commission amount in the account until the dispute is resolved "In case of a dispute as to the amount of the commission, or the time of payment, the broker may retain only the amount of the claim in said account and in trust, until the dispute is settled by agreement, arbitration, mediation or court proceedings, as provided in Section 475.25(1)(d)1., Florida Statutes." 61J2-14.011

Florida's real estate disclosure requirements apply in which of the following situations?

(b) The 3-residential-unit property is being rented with an option to buy. "The real estate licensee disclosure requirements of this section do not apply to: nonresidential transactions; the rental or leasing of real property, unless an option to purchase all or a portion of the property improved with four or fewer residential units is given;..." 475.278(5) (b)2

If an applicant makes an error on the license application, the license may be denied if the error is not corrected. What is the exception to this rule?

(b) The applicant was not notified of the error within the designated time period. "An agency may not deny a license for failure to correct an error or omission or to supply additional information unless the agency timely notified the applicant within this 30-day period." 120.60(1)

When may escrow account funds be disbursed?

(b) When the transaction closes "A broker shall not deliver the deposit to the other party to the transaction until such transaction is closed..." 61J2-14

The Brokerage Relationship Disclosure Act

(b) establishes brokerage representation disclosure requirements. "... the Legislature finds that the intent of the Brokerage Relationship Disclosure Act is to provide that:... Disclosure requirements for real estate licensees relating to authorized forms of brokerage representation are established;..." 475.272

A sales associate may collect a commission directly from the seller only when

(b) his/her employer consents. Sales associates may only collect commissions in the name of the employer and with the consent of the employer and may only perform real estate services on behalf of employer. Sales associates may not sue the principal to obtain the commission.

To avoid denial of licensure, an applicant

(b) must not have been disbarred. "If the applicant has been denied registration or a license or has been disbarred ... the applicant shall be deemed not to be qualified..."475.17

Any broker who provides a rental information list to a prospective tenant for a fee must

(b) provide for the repayment of a percentage of the fee under certain conditions. "Each broker or sales associate who furnishes a rental information list to a prospective tenant, for a fee paid by the prospective tenant, shall provide such prospective tenant with a contract or receipt, which contract or receipt contains a provision for the repayment of any amount over 25 percent of the fee to the prospective tenant if the prospective tenant does not obtain a rental." 475.453

An unlicensed associate may not

(b) sign a listing agreement. Unlicensed individuals may not perform any real estate services.

The main difference between a single agent and a transaction agent is?

(b) the fiduciary representation to one customer. "TRANSACTION BROKER RELATIONSHIP.—A transaction broker provides a limited form of representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent." 475.278(2)

Additional brokerage offices are deemed as branch offices if

(b) the name of the broker is displayed on all the offices. "Any office shall be deemed to be a branch office if the name or advertising of a broker having a principal office located elsewhere is displayed in such a manner as to reasonably lead the public to believe that such office is owned or operated by such broker." 475.24

A licensee who has received a final order of guilty for a violation complaint may appeal the order

(b) within 30 days after the final order. "All proceedings shall be instituted by filing a notice of appeal or petition for review in accordance with the Florida Rules of Appellate Procedure within 30 days after the rendition of the order being appealed." 120.68

If Sales Associate Bob is working with a listing agreement that provides for a 7% commission, how much would Bob actually receive if the selling price of the property is $200,000 and the buyer's broker is to receive half of the overall commission and Bob is to receive half of his broker employer's cut?

(c) $3,500 7% of $200,000=$14,000. Half to the buyer's broker=$7,000. The other half goes to Bob's broker who gives Bob half to = $3,500.

Which type of property would not be classified as residential?

(c) 10 residential units in one building "As used in this subsection, the term 'residential sale' means the sale of improved residential property of four units or fewer, the sale of unimproved residential property intended for use of four units or fewer, or the sale of agricultural property of 10 acres or fewer." 475.278(5)(a)

Florida sales associate educational requirements include?

(c) 14 hours of continuing education every 2 years "The renewal application for an active license as broker, broker associate, or sales associate shall include proof satisfactory to the commission that the licensee has, since the issuance or renewal of her or his current license, satisfactorily completed at least 14 classroom hours of 50 minutes each of a continuing education course during each biennium of a license period, as prescribed by the commission." 475.182(1)(a)

To qualify for recovery funds, the complainant must file a claim within

(c) 2 years of discovery of the damaging act. "A claim for recovery is made within 2 years from the time of the act giving rise to the claim or within 2 years from the time the act is discovered or should have been discovered with the exercise of due diligence." 475.483

Property Seller Sue believes she has a valid case against Broker Bob because Sue suffered monetary damages due to Bob's action as her real estate agent. Before Sue can seek recovery payment from the Florida Real Estate Recovery Fund, who must determine whether or not she suffered the damages?

(c) A civil court "The Florida Real Estate Recovery Fund shall be disbursed as provided in s. 475.484, on order of the commission, as reimbursement to any person, partnership, or corporation adjudged by a court of competent civil jurisdiction in this state to have suffered monetary damages by reason of any act committed, as a part of any real estate brokerage transaction involving real property in this state, by any broker or sales associate..." 475.482

Which of the following is the most accurate definition of real estate broker?

(c) A person who buys or sells real estate on behalf of others for compensation "Broker means a person who, for another, and for a compensation or valuable consideration directly or indirectly paid or promised, expressly or impliedly, or with an intent to collect or receive a compensation or valuable consideration therefor, appraises, auctions, sells, exchanges, buys, rents, or offers, attempts or agrees to appraise, auction, or negotiate the sale, exchange, purchase, or rental of business enterprises or business opportunities or any real property or any interest in or concerning the same..." 475.01(1)(a)

Florida law prohibits a real estate agent from making deceptive representations related to the practice of real estate. Which of the following would be considered a deceptive representation of the practice?

(c) A sales associate claiming her license allows her to open her own real estate firm. Only licensees with broker licenses can open their own real estate brokerage. The other answers have actions that licensees can/should do.

What is the broker's monthly responsibility regarding all escrow accounts?

(c) Create a written statement of liabilities and balances "Once monthly, a broker shall cause to be made a written statement comparing the broker's total liability with the reconciled bank balance(s) of all trust accounts." 61J2-14

Which of the following is required of a brokerage office?

(c) Entrance sign "Each active broker shall maintain a sign on or about the entrance of her or his principal office and each branch office" 475.22

If Broker Bob knowingly files a second and then third false complaint against Broker Tom, what can happen to Bob?

(c) He may be barred from practicing real estate permanently. Committing the same violation more than once can result in license revocation, which is permanent.

Under what conditions may a sales associate collect a commission for a real estate transaction?

(c) If the sales associate has permission from his or her employer to collect the commission and collects it in the employer's name "A sales associate may not collect any money in connection with any real estate brokerage transaction, whether as a commission, deposit, payment, rental, or otherwise, except in the name of the employer and with the express consent of the employer..." 475.42(1)(d)

Broker John changed his business address and did not notify the Commission during the required time period. What is the status of John's license?

(c) It has ceased to be in force. "A license shall cease to be in force whenever a broker changes her or his business address... The licensee shall notify the commission of the change no later than 10 days after the change..." 475.23

In the practice of real estate, what is the common term used if a licensee brags that a property located near a large park is "in the best part of town"?

(c) Puffing Puffing is extravagant claims about the good points of real property and is based on opinion rather than fact, As long as the statement is not an outright lie (or a Fair Housing violation, etc.), puffing is not illegal.

Broker Sal sold Owner John's home and is not being paid his commission. What type of lien rights does Sal have for the unpaid commission?

(c) Sal has no lien rights for the unpaid commission. Residential brokers have no lien rights for unpaid commission.

If a broker's registered office is located outside Florida, which of the following is correct?

(c) The broker must personally appear at any office of the FREC if requested in relation to an investigation. "If the department sends, by certified mail to the broker at the broker's last known business address as registered with the department, a notice or request to produce any documents or to appear for an interview with an authorized representative of the department and the broker fails to substantially comply with that request or notice, then such failure by the broker is a violation of the license law, subject to the penalties of s. 475.25." 475.22

What happens if a complainant withdraws a complaint against a licensee?

(c) The complaint may be investigated anyway. "The department may investigate, and the department or the appropriate board may take appropriate final action on, a complaint even though the original complainant withdraws it or otherwise indicates a desire not to cause the complaint to be investigated or prosecuted to completion." 455.225

A broker is required to immediately deposit any trust funds received. Under Florida real estate law, how is "immediately" defined?

(c) Within 3 business days "'Immediately' means the placement of a deposit in an escrow account no later than the end of the third business day following receipt of the item to be deposited." 61J2-14.008

In Florida, it is presumed that all licensees are operating as transaction brokers unless?

(c) another type of relationship is established in writing. "Presumption of transaction brokerage.—It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer." 475.278(1)(b)

A broker who represents as a fiduciary both the buyer and seller in a real estate transaction is a?

(c) dual agent. "As used in this section, the term 'dual agent' means a broker who represents as a fiduciary both the prospective buyer and the prospective seller in a real estate transaction." 475.278(1)(a)

The disclosure requirements for authorized brokerage relationships apply only to?

(c) residential property. "The disclosure requirements of s. 475.278 apply only to residential sales as defined in s. 475.278(5)(a). " 475.274

The best definition of designated sales associates is?

(c) sales associates who are acting as single agents under certain conditions in the same transaction. "For purposes of this part, in any real estate transaction other than a residential sale as defined in s. 475.278(5)(a), and where the buyer and seller have assets of $1 million or more, the broker at the request of the customers may designate sales associates to act as single agents for different customers in the same transaction." 475.2755(1)

If escrow funds are held by a title company,

(c) the licensee must name the title company on the sales contract. "When a deposit is placed or to be placed with a title company or an attorney, the licensee who prepared or presented the sales contract ('Licensee'), shall indicate on that contract the name, address, and telephone number of such title company or attorney. Within ten (10) business days after each deposit is due under the sales contract, the Licensee's broker shall make written request to the title company or attorney to provide written verification of receipt of the deposit, unless the deposit is held by a title company or by an attorney nominated in writing by a seller or seller's agent. Within ten (10) business days of the date the Licensee's broker made the written request for verification of the deposit, the Licensee's broker shall provide Seller's broker with either a copy of the written verification, or, if no verification is received by Licensee's broker, written notice that Licensee's broker did not receive verification of the deposit. If Seller is not represented by a broker, then Licensee's broker shall notify the Seller directly in the same manner indicated herein." 61J2- 14

A broker-associate may be a business entity officer, director, or partner if he/she

(c) upgrades to an active broker. Broker-associates are not allowed to be an officer, director, member, manager, or partner of a business entity unless they upgrade to active licensed brokers.

Florida allows brokers to deposit personal funds into a property management escrow account. What is the allowed amount of personal funds in this type of account?

(d) $5,000 "A broker may place and maintain up to $5,000 of personal or brokerage funds per each property management escrow account." 61J2-14

What is the statute of limitation for filing any action in a claim for an antitrust law violation?

(d) 4 years "Any action brought under s. 542.21 or s. 542.22 must be commenced within 4 years after the cause of action accrues." 542.26

Florida broker pre-license requirements include?

(d) 72 hours of pre-licensing coursework. "The course or courses required for one to become initially licensed shall not exceed a total of 63 classroom hours of 50 minutes each, inclusive of examination, for a sales associate and 72 classroom hours of 50 minutes each, inclusive of examination, for a broker." 475.17(2)(a)1.

Which of the following real estate services can legally be offered by someone not licensed as a real estate broker, broker associate, or sales associate?

(d) An individual renting properly licensed public lodging "Any person, partnership, corporation, or other legal entity which, for another and for compensation or other valuable consideration, rents or advertises for rent, for transient occupancy, any public lodging establishment licensed under chapter 509." 475.011(11) Exemptions

To meet the continuing education requirements for either a sales associate or a broker, what can a licensee substitute for the 3-hour core law requirement?

(d) Any of the above Approval or denial of a specialty course must be based on the extent to which the course content focuses on real estate issues relevant to the modern practice of real estate by a real estate licensee, including technology used in the real estate industry. The commission may accept as a substitute for such continuing education course, on a classroom-hour-for-classroom-hour basis, any satisfactorily completed education course that the commission finds is adequate to educate licensees within the intent of this section, including an approved distance learning course. ... The commission may accept as a substitute for 3 classroom hours, one time per renewal cycle, attendance at one legal agenda session of the commission." 475.182(1)(a) and (b)

Broker Chad received an under-the-table payment from Tom's Home Inspection Services for recommending Tom to a home buyer.

(d) Chad must tell everyone involved in the same transaction about the payment. "Any real estate licensee who receives, or makes any arrangement or agreement to receive, directly or indirectly, any kickback or rebate, for the placement of, or favor in, any business transaction which forms a part of, or is incident to, any transaction(s) negotiated or handled by said licensee, is a violation of Section 475.25(1)(b) or (d), Florida Statutes, or both of said subsections of the Florida Statutes, unless prior to the time of the placement of, or favor in, said business transaction, the licensee shall have fully advised the principal if any and all affected parties in the transaction(s), which the licensee is handling, of all facts pertaining to the arrangement of kickbacks or rebates." 61J2-10.028

Which of the following is not required when filing a complaint against a licensee for a rule or regulation violation?

(d) Complaint must include witnesses to the action. Witnesses are not required when filing a complaint.

A customer must sign a disclosure showing his or her assets are $1 million or more when in a brokerage relationship with a

(d) Designated sales associate "... the buyer and seller as customers shall both sign disclosures stating that their assets meet the threshold described in this subsection and requesting that the broker use the designated sales associate form of representation." 475.2755(1)

If Broker Bob knowingly files a false complaint against Broker Tom, what can happen to Bob?

(d) His license may be suspended. Filing false complaints against other licensees is grounds for license suspension.

When may a sales associate be registered as a general partner in a brokerage firm?

(d) May not under Florida statutes regarding registration of general partners "This section shall not operate to permit a broker associate or sales associate to register or be licensed as a general partner, member, manager, officer, or director of a brokerage firm..." 475.161

What is a kickback?

(d) Monies paid to a broker for using a particular service provider during a real estate transaction. The definition of kickback is payment of something of value to a recipient as compensation or reward for providing favorable treatment to another party. In real estate, most kickbacks involve mortgage providers, inspectors, or home improvement providers.

In what they believed was a smart business decision, Roy's Realty and Wescott brokerages have created a monopoly for real estate services in their small town of Bakersville. Was this indeed a smart business decision? Why or why not?

(d) No because they have violated antitrust laws "It is unlawful for any person to monopolize, attempt to monopolize, or combine or conspire with any other person or persons to monopolize any part of trade or commerce in this state." 542.19

Chuck is selling a duplex he owns. He has asked Broker Terrance to simply show the property for him. What type of broker relationship do these two men have?

(d) No brokerage relationship Unless Chuck and Terrance enter into an agency agreement, there is no brokerage relationship. Terrance can help facilitate the sale of the property and even be paid commission for the sale, but without a relationship agreed upon either verbally or in writing, it does not exist. However, the broker must still disclose his duties to the seller in writing prior to showing the property. 475.278(4)

Lisa is a full-time graduate student in an appraising degree program at the University of South Florida. All of Lisa's appraisal activities are being supervised by Ken who is a licensed real estate broker. What type of license must Lisa have to perform the appraisal activities she is involved in?

(d) No license "Any full-time graduate student who is enrolled in a commissionapproved degree program in appraising at a college or university in this state, if the student is acting under the direct supervision of a licensed broker or a licensed or certified appraiser and is engaged only in appraisal activities related to the approved degree program." 475.011(7) Exemptions

If an escrow account's record shows a negative balance, what must the broker do?

(d) Note the cause and corrective action taken "... whenever an account has a negative balance, the reconciliation shall disclose the cause(s) of the returned check or negative balance and the corrective action taken." 61J2-14.012

Which of the following is a requirement of the general licensing provisions?

(d) Social Security number "Any person desiring to be licensed shall apply to the department in writing. The application for licensure shall be submitted on a form prescribed by the department and must include the applicant's social security number." 455.213(1)

Which of the following is true regarding the Florida Real Estate Commission?

(d) The Commission is responsible for fostering the education of brokers in the principles that should govern their conduct. "The commission shall foster the education of brokers, broker associates, sales associates, and instructors concerning the ethical, legal, and business principles which should govern their conduct." 475.04(1)

Which of the following statements is true regarding a sales associate's changing employers?

(d) The associate may not remove any records from the former employer's office. "A license shall cease to be in force whenever a broker changes her or his business address, a real estate school operating under a permit issued pursuant to s. 475.451 changes its business address, or a sales associate working for a broker or an instructor working for a real estate school changes employer. The licensee shall notify the commission of the change no later than 10 days after the change, on a form provided by the commission." 475.23

Regarding escrow accounts, which of the following is true?

(d) The broker has 30 days to correct any account errors. "A broker shall be provided a reasonable amount of time to correct escrow errors if there is no shortage of funds and such errors pose no significant threat to economically harm the public. For purposes of this subsection, reasonable amount of time shall be defined as 30 days from the date the last reconciliation statement was performed or should have been performed." 61J2-14.010

A licensed broker in Georgia moved to Florida 6 months ago and now wants to apply for a Florida broker's license under the mutual recognition agreement between Florida and Georgia. What must the broker do to obtain the Florida license under this agreement?

(d) The broker is not eligible for a Florida license under the mutual recognition agreement. Licensing under the mutual recognition agreement is for nonresidents only. 475.180 "For purposes of s. 475.180(1), Florida Statutes, a 'resident' of Florida is defined as: (1) a person who has resided (regardless of whether the place or base of residence is a recreational vehicle, hotel, rental unit, or any other temporary or permanent situs) in Florida, continuously for a period of 4 calendar months or more, within the preceding one year..." 61J2-26.002 The broker in question is a 6-month resident of Florida.

trade name must not

(d) be used by a sales associate. Sales associates are required to use their legal names.

Being compensated for practicing real estate without a license is a

(d) felony of the third degree. "A person may not operate as a broker or sales associate without being the holder of a valid and current active license therefor. Any person who violates this paragraph commits a felony of the third degree..." 475.42

The FREC may suspend a license

(d) for a period no longer than 10 years. "The commission may deny an application for licensure, registration, or permit, or renewal thereof; may place a licensee, registrant, or permittee on probation; may suspend a license, registration, or permit for a period not exceeding 10 years;" 475.25

An agency relationship is formed when a customer?

(d) gives a broker authority to act on his/her behalf. "Determination of agency or transactional brokerage relationship.— Without consideration of the related facts and circumstances, the mere payment or promise to pay compensation to a licensee does not determine whether an agency or transactional brokerage relationship exists between the licensee and a seller, landlord, buyer, or tenant. " 475.255

Revocation of a license

(d) is permanent. "In the event the board, or the department when there is no board, determines that revocation of a license is the appropriate penalty, the revocation shall be permanent." 455.227

The disclosure requirements covered in the Brokerage Relationship Disclosure Act only apply to?

(d) residential sales. "Scope of coverage.—The authorized brokerage relationships described in ss. 475.2755 and 475.278 apply in all brokerage activities as defined in s. 475.01(1)(a). The disclosure requirements of s. 475.278 apply only to residential sales as defined in s. 475.278(5)(a)." 475.274

If a rental information list is provided for a fee, the tenant may be fully reimbursed for the fee unless

(d) the tenant demanded the refund after 60 days of paying the fee. "A demand from the prospective tenant for the return of the fee, or any part thereof, shall be made within 30 days following the day on which the real estate broker or sales associate has contracted to perform services to the prospective tenant." 475.453