RE Questions 1

According to F.S. Chapter 475, "real property" or "real estate" does not include what?

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."

What is the Florida Real Estate Commission (FREC)responsible for?

education members of the profession, enforcing the rules they make, establishing licenseing fees, creating an offical seal, and administering the Florida Real Estate Education & Research Foundation

What are some sources of real estate financing?

financial institutions, such as commercial banks, savings and loan associations, and credit unions

What are some types of special-purpose properties?

assisted living facilities, theaters, museums, theme parks, bowling alleys, and hotels.

How do you determine if an object is a fixture?

four legal tests: intent of the parties, method/degree of attachment, agreement of the parties, and adaptation of the item

Which best describes the members of the Florida Real Estate Commission?

four licensed brokers with five years experience ; one broker or sales associate with two years experience ; and two consumers who have never been involved in the real estate profession

What is the Division of Real Estate responsible for?

the examination, licensing and regulation of individuals, corporations, real estate schools and instructors.

What happens during development?

the first stage of making improvements to real estate. The land is readied for construction with work such as removing trees and debris, grading the building site, and marking out areas for streets and sidewalks

In the real estate industry, property management has become more popular because of

the increase in absentee owners.

What do Riparian rights ensure?

the property owner has reasonable rights to use flowing water (such as a river, brook, or stream) if the use does not impair its use by others or cause pollution.

A landlord inspects his rental property after the tenant moves out. He finds damage that is beyond normal wear and tear and decides to deduct some money from the security deposit to cover the damage. How many days does the tenant have to object, in writing, to the deduction?

15

How many business days does a broker have to notify the FREC, in writing, of conflicting demands or of a good faith doubt?

15 days

When was the Flroida Real Estate Commission created?

1925

When was the Division of Real Estate established and what is its purpose?

1982, protects the public by regulation of real estate and appraisal licensees pursuant to Chapter 475, Florida Statutes.

Failure to complete the post-licensing required education prior to the renewal deadline will cause the license to become void. A sales associates may re-qualify by

retaking the pre-license course, and passing the state examination.

What are the four general phases of development and construction?

land acquisition, subdividing and development, plat map submission, and construction

What is the final legal act in an eviction procedure?

After the tenants are served a writ of possession, the landlord begins to remove their personal property from the rental unit.

The legal rights and responsibilities of real estate licensees are established by what law?

Florida Statute Chapter 475

Who can sell timeshares?

Only licensed sales associates and brokers can sell timeshares

What is separate property?

Property owned by one member of a married couple before the marriage took place

Which activity may an unlicensed personal representative at an open house legally perform?

hand out materials

What does 'tenancy in common' refers to?

multiple parties owning a fractional share of undivided land.

What are the physical components of real estate?

The physical components of real estate are surface rights, subsurface rights, and air rights.

To which situation does the Fair Housing Act apply?

A broker showing homes to prospective buyers, applies to any residential transaction involving a broker.

Attendance by a licensee at one legal agenda session for the FREC may be substituted for how many hours?

The core law course accounts for three hours of FREC-approved continuing education credit.

Savannah is working for Broker Brown, but she also wants to sign on with Broker Jones. She can only work with one of the brokers because

Chapter 475, F S mandates only one registered employer for a sales associate or broker associate.

A licensed appraiser is compensated for an appraisal with

a flat fee

What do Mortgage Loan Originators (MLOs) and Mortgage Bankers do?

accept applications for mortgage loans and negotiate the terms of loans, obtain loan approval, make sure all the conditions of the loan are met, and service the loan.

How many properties are usually used for comparison for a BPO?

At least three similar properties are

Over which type of escrow account does the FREC have jurisdiction?

Broker escrow accounts

The provision that an owner who needs assistance may have a service dog regardless of the pet regulations in a residential or rental community is included in the ____

Civil Rights Act of 1968 (Fair Housing Act)

A broker receives an earnest money deposit on a home sale. The broker must deposit the funds within how many days of receiving them?

Earnest money received by a broker must be deposited immediately, which means within three business days.

What happens during land acquisition?

Developers and builders acquire raw, unimproved land as a future construction site for homes or a commercial project. Also, the developer pays for engineering plans, attorney fees, surveys, and application fees.

The Florida Statutes that define the general legal practice and procedure for the Department of Business and Professional Regulation (DBPR) and the licensees of all professions, including real estate, are Chapter 475 and

Florida Statute Chapter 455

Which Florida Statute gives the Florida Real Estate Commission the authority to discipline Florida-licensed real estate professionals?

Florida Statutes, Chapter 455

Any contract or agreement for sale must refer to and incorporate a ___

Homeowner's Association disclosure summary, when applicable.

What is seller financing?

In this arrangement, the seller allows the buyer to make payments with interest directly to them instead of to a third-party lender

Your sales specialty involves the knowledge of regulated land use, environmental considerations, transportation, labor costs and utility charges. Your field of specialty is ____

Industrial

Raising the professional and ethical standards of real estate licensees is one goal of which organization?

National Association of Realtors

On July 1, Abrams lists his home on a 90-day exclusive contract with Broker Baker. On July 30, Abrams's Chapter 7 bankruptcy claim is approved. On August 6, the broker found a ready, willing, and able purchaser for Abrams's home. Can the broker claim a commission from Abrams?

No, because the executory contract was terminated before the buyer was procured.

An owner of a unit at a 20-unit condominium complex informs the salaried manager that he will be out of the country for six months and would like a friend to rent the apartment while he is gone. The manager agrees to the six-month rental. Does he need a real estate license?

No, because the rental period arranged was for not more than one year.

The Division of Real Estate exists primarily to

Provide administrative support to the FREC.

A broker finds a buyer for a house she has listed. The offer includes an earnest money deposit and states that the offer is valid for three days. The owner does not immediately respond to the offer, and after 24 hours the buyer decides to cancel the offer and asks for his deposit to be returned. The broker should

Return all the funds to the buyer

What happens during subdividing?

Surveyors and engineers divide the property into smaller lots and representing them on a plat map

The Florida Administrative code that expands on the provisions of F. S. Chapter 475 is the

The Florida Administrative Code 61J2

A broker listed a land for $90,000. Jim verbally offered $88,000. Another buyer who knew about Jim's offer made an offer of $93,000. The broker drew up a written contract for $93,000 but did not inform the owner about the offer for $88,000. Which is correct?

The broker should have presented both offers to owner.

What happens during plat map submission?

The developer submits a subdivision plat map for review by the county or city planning commission. Once approved, it will be recorded for future reference.

What happens during dedication?

The developer who creates the subdivision will enhance the area with streets, curbs, sidewalks, and other improvements/amenities, are usually dedicated to the local government. The government does not pay for these. The developer, however, must offer the dedication to the government body and it must be approved.

A prospective renter engaged the services of a broker on June 1 to help her find a suitable rental. The broker charged her $200. The renter was not able to find a rental property from the list. To what refund, if any, is she entitled?

The renter's refund is $150, if she requests it within 30 days

Of the following statements, which one is TRUE about kickbacks or rebates?

They are legal if all affected parties to the transaction are aware of such an arrangement prior to the time of the placement of said transaction.

If a person has been discriminated against under the terms of the Fair Housing Act, how long do they have to file a complaint?

They have one year from the date of discrimination to file a complaint with the U.S. Department of Housing and Urban Development (HUD)

Florida Statute, Chapter 20

This statute defines the organizational structure of the Florida Executive Branch of Government. The DBPR was created under this statute for regulating businesses.

Florida Statute Chapter 120

This statute is the Administrative Procedure Act. Its purpose is to ensure that agencies regulating businesses (such as FREC and the Florida Division of Real Estate) adopt and adhere to rules disclosing their methods of operation to the public, following a model established by the Administration Commission.

Which statement best describes a group license?

a right granted to a sales associate or broker associate to work various properties owned by one owner/developer.

BPO are exempt from Uniform Standards of Professional Appraisal Practice, guidelines for professionalism and ethics established by the Appraisal Standards Board.

True

Only a state-certified or licensed appraiser can prepare an appraisal that involves a federal-related transaction over $400,000.

True

Real estate sales associates may appraise property but must not represent themselves as licensed appraisers and must comport with the Appraisal Board's standards (USPAP).

True

Where must a security deposit be held?

a Florida banking institution or the surety bond in the county in which the rental property is located

Which must the developer of an unimproved subdivision provide to the prospective buyer?

a detailed property report

Once sales associates have completed their required post-licensing education, they must subsequently complete during every 2-year license period

at least 14 hours of continuing education for active and inactive licensees.

By issuance of a Final Order, a broker's license was revoked by the Florida Real Estate Commission. The licenses of the sales associates working under the broker are

automatically placed on involuntary inactive status.

If a new sales associate fails to complete the post-licensing education requirement within the allotted time frame, the initial license will

become null and void.

A broker or sales associate would be committing fraud if he or she knowingly sold a property

by using a lottery, even if the property is actually conveyed in accordance with the lottery rules.

A seller has her property listed for $85,000 but tells the broker she is desperate to sell and will take as little as $74,500. She even mentions this while the broker is showing the house to a prospective buyer. The broker

cannot legally mention the $74,500 price.

A broker has not had much luck selling a particular property, so he decides to change his advertising in such a way that is misleading in form and content. The broker

could receive an administrative fine.

Which area of real estate requires the highest degree of expertise?

counseling

Scope of Work Agreement

detailed management agreement that defines responsibilities and compensation

Jamie works as an unlicensed personal assistant for Sunshine Realty. Which task is she allowed by law to do?

gather information for a comparative market analysis

A broker listed a house and is the single agent of the seller. A prospective buyer wants to view the home and wants the broker to represent him too. The broker must

have the seller sign a Transition to Transaction Broker form before showing the house to the buyer.

When is a CAM license required?

if the property manager receives compensation for providing services to an association with ten or more units or with an annual budget of $100,000 or more

USA Bank contacted Aubrey, a sales associate with Blue Skies Realty, to do a Broker Price Opinion (BPO). The fee for the BPO was small so the bank paid Aubrey directly. This is

illegal, since sales associate violated Chapter 475, F.S.

When must the No Brokerage Relationship notice be presented?

in writing before the showing of property

What are some private sources of real estate financing?

investment management firms, and individual investors

Before Esther died, she named her friend Linda as her personal representative in her will. To participate in the sale of a real estate property owned by Esther, Linda

is not required to hold a real estate license.

What are the main fields of expertise provided by a broker or a sales associate?

knowledge of property transfer, knowledge of market conditions, and how to market real estate

The duties of the broker as a fiduciary are

loyalty, confidentiality, obedience, full disclosure, and accounting and the duty to use skill, care, and diligence

Two of the seven members of the Florida Real Estate Commission must be

never licensed as real estate sales associates or brokers.

A transaction broker is best described as the concept of

one who provides limited representation in a brokerage transaction between buyer and seller

A real estate broker is convinced that a rule or guideline that significantly affects him is not valid and should be changed. He can seek recourse by

petitioning for an administrative determination before the Florida Real Estate Commission.

Which real estate activities require apprasiing services?

property financing, selling, buying, and claims, divorces, and estates

Under the Interstate Land Sales Full Disclosure Act, what must a developer or agent do?

register the development with the Consumer Financial Protection Bureau and provide the purchaser with a detailed property report prior to the sale.

Property taxes homestead exemptions, and mortgage financing are areas of focus for which specialist?

residential

An agricultural property of 10 acres or less.

residential property

An improved residential property of four units or less.

residential property

An unimproved residential property intended for use of four units or less

residential property

Which of the following is the term for a landowner's rights to use water that flows past his or her property as long as the landowner does not divert or pollute the water or impair its use by others?

riparian rights

The Homeowners' Association Disclosure Summary required by Chapter 720 must be supplied by the

seller's broker.

John owned real property prior to his marriage to Sofia. This property is presumed to be ___

separate property

What are the two categories of housing covered by the FHA?

single-family and multifamily properties

. The best way for you to retain your license in voluntarily inactive status, is to

take the post-licensure course before her first renewal, then take the CE courses every two years, and pay her renewal fees.

Of the following, which real property interest applies to land ownership?

tenancy in common

Although the roof on a house for sale leaks, the ceilings show no water damage. A broker represents the seller as a single agent and the seller has told the broker about the leak. If a prospective buyer asks nothing about the roof, the broker's legal obligation is satisfied if she says

that there is a leak in the roof.

Who should Mortgage Loan Originators (MLOs) and Mortgage Bankers be licensed by?

the Nationwide Multistate Licensing System & Registry (NMLS)

Remuneration received for a broker price opinion (BPO) or comparative market analysis (CMA) represents a brokerage activity and must be paid

to the sales associate's broker.