Unit 6: Florida Real Estate Exam

notice of noncompliance

Issued for a first-time minor violation.

facts

Misrepresentation is an untrue statement of fact and an incorrect or false misrepresentation of the ___.

investigated

Once a case has been ___ and found valid, the probable-cause panel determines whether probable cause exists.

b

One of the grounds for the suspension or revocation of a licensee's license is the unauthorized use or retention of money or property, otherwise called a. concealment. b. conversion. c. culpable negligence. d. commingling.

former commissioner

One of the probable-cause panel members may be a ___ ___. However, if a former professional board member serves on the panel, the former Commissioner must currently hold an active real estate license.

50000

Payments for claims arising out of the same transaction are limited, in total, to $___ or the unsatisfied portion of a judgement claim, whichever is less.

a notice of noncompliance

Pursuant to Rule 61J2-24.003, the Commission sets forth a list of minor violations for which the DBPR must issue ___ ___ ___ ___ as a first response to a minor violation by a licensee.

revoked

Pursuant to Section 475.25(2), F.S., a license may be ___ or canceled if it was issued through a mistake or inadvertence of the Commission. Such revocation or cancellation will not prejudice any future application for licensure filed by the person against whom action was taken.

probable cause

Reasonable grounds (sufficient facts and evidence) to warrant prosecution.

b

A DBPR investigator is authorized, in cases that involve a first-time offense of a minor violation, to issue A) a letter of guidance. B) a notice of noncompliance. C) an administrative fine. D) a cease and desist order.

stipulation

A __ is an agreement as to the facts of the case and the penalty reached between the attorneys for the DRE and the licensee or licensee's attorney.

breach of trust

A ___ ___ ___ is defined as any violation or omission of a legal or moral duty. It is the breaking of a promise or obligation, either by an act of commission or omission, default, or nonperformance.

material fact

A ___ ___ is information that is relevant to a person making a decision and that affects the value of the real property.

d

A broker followed the instructions in an escrow disbursement order (EDO). The broker was later sued by a party to the real estate transaction. The lawsuit resulted in a civil judgment and a payment of $10,000 from the recovery fund. As a consequence, the FREC A) is required to suspend the broker's license. B) will seek reimbursement of $10,000. C) will probably suspend the broker's license. D) will take no action against the broker.

d

A broker followed the instructions of an escrow disbursement order. The seller sued the broker. Which expense associated with the EDO CANNOT be reimbursed from the recovery fund? A) Compensatory damages B) Broker's attorney fees C) Seller's attorney fees D) Punitive damages

b

A buyer gives the broker a $47,500 earnest money deposit. The broker defrauds the buyer of the $47,500. The buyer sues the broker and is awarded a judgment in the amount of $62,500 for the original $47,500 deposit plus $15,000 for punitive damages. Because the buyer was unable to collect the judgment from the broker, the buyer requests relief from the Florida Real Estate Recovery Fund. How much can the buyer receive from the recovery fund. a. $15,000 b. $47,500 c. $50,000 d. $62,500

c

A claimant has obtained a judgment against a licensee. The judgment includes liquidated damages of $15,000, punitive damages of $12,500, and attorney fees of $2,500. The claimant may be awarded what amount from the recovery fund? A) $30,000 B) $50,000 C) $15,000 D) $17,500

subpoena

A command to appear at a certain time and place to give testimony.

legally sufficient

A complaint contains facts indicating that a violation of Florida statute, DBPR rule, or FREC rule may have occurred.

30

A licensee has ___ days from receipt of a citation to accept or reject the alleged violation(s), as specified in the citation. Failure to pay the fine in a timely manner will give rise to the filing of an administrative complaint.

a

A licensee has been issued an administrative complaint. The licensee has signed the election of rights indicating that he does not dispute the allegations of fact and he requests an informal hearing. How much prior notice of a hearing MUST be given to the licensee-respondent? A) 14 days B) 45 days C) 30 days D) 15 days

a

A licensee received a citation for $500 for operating as a sales associate without a registered employer. The sales associate feels the citation was issued in error. How should the sales associate proceed? a. File a written objection within 30 days b. File a written objection within 15 days c. Request a hearing before the FREC within 30 days d. Request a civil court hearing within 15 days

conversion

A licensee's personal use or misuse of client (or customer) monies.

voluntary relinquishment for permanent revocation

A licensee-respondent may choose to avoid a disciplinary hearing and relinquish the real estate license in lieu of discipline, permanently revoking the license.

a

A person is eligible to seek recovery from the Real Estate Recovery Fund if that a. person received a final judgment against a licensee in a legal action and the case was based on a real estate brokerage transaction (assuming no specific exceptions apply). b. person is a licensed broker who acted as the agent in the transaction that is the subject of the claim. c. person's claim is based on a real estate transaction in which the broker did not hold a valid, current, and active license at the time of the transaction. d. person's claim is based on a licensee who was the seller of the property.

second

A person may not disseminate or cause to be disseminated by any means any false or misleading information for the purpose of offering for sale, or for the purpose of causing or inducing any other person to purchase; lease; or rent, real estate located in the state or for the purpose of causing or inducing any other person to acquire an interest in the title to real estate located in the state. To do so is a misdemeanor of the ___ degree.

c

A sales associate disputes the facts and allegations in a formal complaint. Which statement is TRUE regarding this situation? A) The sales associate should request the matter be heard in an informal hearing. B) The sales associate should file an objection to the formal complaint and mail it to the DBPR Secretary. C) The matter must be heard in a formal hearing before an administrative law judge. D) The sales associate should refuse to sign the election of rights in protest.

a

A sales associate put a "for sale by owner" sign on his property with no intention of selling his home. The licensee used the sign as a way to reach prospective buyers for his listed properties. The FREC may find the sales associate guilty of which violation? A) Misrepresentation B) Conversion C) Commingling D) Failure to account for and deliver

c

A sales associate was issued a citation. How many days does the licensee have to either pay the citation or file an objection to the alleged violation? A) 45 B) 60 C) 30 D) 90

c

An agreement as to the facts of the case and the penalty reached between the DRE attorneys and the licensee is called A) a summary order. B) an informal hearing agreement. C) a settlement stipulation. D) a mediation order.

stipulation

An agreement as to the penalty reached between the attorneys for the DRE and the licensee or licensee's attorney.

complaint

An alleged violation of a law or rule.

d

An applicant was issued a sales associate's license by mistake. She has been informed that the license has been revoked. Which applies? A) The applicant is not allowed to reapply for a sales associate's license for one year. B) The applicant has been disciplined for a violation of Chapter 475, F.S. C) Revocation means that the applicant may not be licensed in Florida for five years. D) This action is referred to as "revoke without prejudice."

summary suspension

An emergency suspension that must be issued by the DBPR secretary or the secretary's designee.

informal hearing

An expedited way of resolving disciplinary cases provided the licensee does not dispute the alleged facts stated in the complaint.

administrative complaint

An outline of allegations of facts and charges against the licensee. (Also called a formal complaint.

formal complaint

An outline of charges against a licensee. (Also called an administrative complaint.

c

Any order issued by the DBPR secretary or a legally appointed designee that results from circumstances posing an immediate danger to the public's health, safety, or welfare is called a a. petition for review. b. stay of enforcement. c. summary or emergency suspension. d. license revocation.

moral turpitude

Conduct contrary to honesty, good morals, justice, and accepted custom.

monies

Conversion is a licensee's personal use or misuse of client (or customer) ___.

failure to account for and deliver

Failing to pay money to a person entitled to receive it.

culpable negligence

Failing to use the care a reasonable person would exercise

d

False advertising concerning real estate information is what type of penalty? A) First-degree misdemeanor B) Third-degree felony C) Third-degree misdemeanor D) Second-degree misdemeanor

third

Falsifying a license application and unlicensed practice of real estate are ___-degree felonies. Theft or reproduction of a license exam are third-degree felonies.

citations

Fines for violations that have been specified in the citation rule for which there is no substantial threat to the public health, safety, and welfare.

30

Florida Statute requires licensees to inform the Commission, in writing, within ___ days of being convicted or found guilty of a crime.

a

If a broker's license is suspended, the licenses of all sales associates working for that broker are a. placed in involuntary inactive status. b. denied. c. suspended. d. revoked.

a

If a legally sufficient complaint has been filed, investigated, and found valid, the next step in the complaint process is A) probable cause determination. B) a formal hearing. C) final order issuance. D) an informal proceeding.

administrative law judge, formal

If a licensee disputes the alleged facts that are made in an administrative complaint (also known as a formal complaint), the case must be heard by an ___ ___ ___ in a ___ hearing.

punitive

In a claim resulting from an EDO, the fund will reimburse compensatory damages, attorney's fees, court costs, but not ___ damages, treble (triple) damages, or interest.

material fact

Information that affects the value of the real property and is relevant to a person making a decision about the property.

final order

The Commission's final decision as to innocence or guilt and the determination of the appropriate penalty.

a

The DBPR is authorized to investigate a written complaint filed against a licensee a. if the alleged complaint is legally sufficient. b. only if the claimant has been harmed by the actions of the licensee. c. only if the alleged violation was committed in the state of Florida. d. only if all of these conditions have been met.

no action

The FREC is authorized to order reimbursement to any licensee who is required by a court of law to pay money damages as a result of the licensee's compliance with an escrow disbursement order. If the licensee had previously requested an EDO and complied with it, ___ ___ will be taken against the licensee.

a

The Florida Real Estate Commission may NOT impose which disciplinary penalty? a. Imprisonment b. Probation c. Administrative fine d. Denial of a license application

recommended order

The administrative law judge's findings, conclusions, and recommended penalty.

not

The spouse of the offending licensee (judgment debtor) is ___ eligible for reimbursement from the recovery fund.

formal hearing

The type of hearing used if the licensee-respondent either requests a formal hearing or if the licensee-respondent disputes the allegations.

commingle

To ___ funds is to mix the money or other personal property of a buyer or a seller with a broker's own money or property, or to combine escrow money with personal or business funds. Commingling is sometimes called intermingling.

emergency suspension order

To cause to cease operating for a period of time; the temporary withholding of a person's license rendering it ineffective; a period of enforced inactivity.

commingle

To mix the money of a buyer or seller with a broker's own money.

c

Which statement regarding the recovery fund is FALSE? A) A final judgment must be issued against the licensee and the consumer must make an attempt to collect on the judgment. B) Licensees must hold an active license at the time of the alleged act. C) An unlicensed spouse of the offending licensee is eligible for reimbursement. D) Punitive damages and interest cannot be reimbursed from the recovery fund.

d

Which type(s) of penalties may be imposed for violations of the real estate license law? a. Civil penalties only b. Administrative penalties only c. Civil and administrative penalties only d. Criminal, civil, and administrative penalties

c

Which violation is a third-degree felony? A) Provide inaccurate and out-of-date rental information for compensation B) Failure to account for and deliver escrow funds C) Reproduction or theft of a real estate license exam D) False and misleading advertising

b

Who prepares and submits a recommended order of findings and conclusions in a complaint case? a. Court of law b. Administrative law judge c. Probable-cause panel d. The DBPR

concealment

Withholding of information.

Failure to account or deliver

___ ___ ___ ___ is the act of failing to deliver any personal property such as money, legal documents, or real estate commission to a person entitled to receive it.

moral turpitude

___ ___ involves conduct contrary to honesty, good morals, justice, or accepted custom.

culpable negligence

___ ___ involves negligent conduct that, while not intentional, involves a disregard of the consequences likely to result for one's actions.

Conversion

___ is a licensee's personal use or misuse of client (or customer) monies.

misrepresentation

___ is an untrue statement of fact or an incorrect or false representation of the facts. A licensee may be charged with misrepresentation for failing to indicate in a newspaper that a listed property is advertised by a real estate licensee.

Fraud

___ is intentional deceit and reliance on the deception for the purpose of inducing another person to rely on the deceitful information and for the injured person to part with something of value or to surrender a legal right.

concealment

___ is the withholding of information or a material fact. In a fiduciary relationship, for example, the broker has a duty to speak, unless the principal knows the information or fact.

anyone

___ may file a complaint against a licensee, an applicant, or an unlicensed person for actions believed to be in violation of Chapter 475, F.S.

14

The licensee-respondent must be given at least ___ days' notice of a hearing. The notice of hearing informs the licensee-respondent of the time, place, nature of the hearing, and includes a statement regarding the legal authority and jurisdiction under which the hearing is being held.

c

The maximum payment from the Real Estate Recovery Fund for a judgment issued in connection with a single real estate transaction is A) $150,000. B) $100,000. C) $50,000. D) $75,000.

misrepresentation

The misstatement of fact or the omission or concealment of a factual matter.

complainant

The person who makes an allegation or a charge against another person (the respondent).

15000

The recovery fund will reimburse the claimant for actual monetary damages only. The judgment was for $____ of actual monetary damages.

breach of trust

The breaking of a promise or obligation.

b

The collective amount to be paid from the Real Estate Recovery Fund as a result of any one real estate transaction may NOT exceed a. $25,000. b. $50,000. c. $75,000. d. $150,000.

d

The decision as to whether probable cause exists is made by a majority vote of the a. Commission. b. Commission or the Department, as appropriate. c. administrative law judges. d. probable-cause panel (or the Department if there is no panel).

Division of Administrative Hearings (DOAH)

The entity that employs administrative law judges (ALJs) to conduct formal hearings of administrative complaints against licensees.

fraud

The intent to misrepresent a material fact or to deceive to gain an unfair advantage or to harm another person.

c

When payment from the Real Estate Recovery Fund is made to satisfy a claim against a licensee and the claim was not the result of the broker complying with an escrow disbursement order the Commission's action against the licensee must be a. a citation. b. probation. c. mandatory suspension d. emergency suspension.

c

Which action would cause a license to be revoked without prejudice? a. A licensee accepted an earnest money deposit on a property that he knew was encumbered by an undisclosed lien. b. The broker obtained his license by means of fraud, misrepresentation, or concealment. c. A sales associate received her license as a result of an administrative error by the Division of Real Estate. d. For the referral of real estate business, a licensee shared a commission with a person (not party to the transaction) who did not have a real estate license.

a

Which action would likely result in a charge of conversion? A) A broker placed escrow funds in the operating account and used the funds to cover office expenses. B) The broker deposited the rental security deposit checks into the operating account. C) The sales associate did not indicate on the contract for sale and purchase that the earnest money check was postdated. D) The broker did not review the monthly reconciliation statements prepared by the accountant when a shortage occurred.

a

Which offense is a misdemeanor of the first degree? a. Failing to provide current and accurate rental information for a fee b. Publishing false or misleading information to induce a buyer to purchase real property c. Failing to timely deposit earnest money into the escrow account d. Failing to timely notify the FREC of core conflicting demands

a

Which statement concerning a consumer complaint is FALSE? A) The person named in a complaint must be a real estate licensee. B) The DBPR will investigate an anonymous complaint that is in writing and legally sufficient. C) A complaint is considered to be legally sufficient if it contains facts that indicate a violation of license law has occurred. D) A person may file a complaint online.

d

Which statement is FALSE regarding the probable-cause panel? A) At least one member must be a professional member. B) The FREC chairperson appoints the probable-cause panel. C) A consumer member may serve on probable-cause. D) A former Commissioner with an inactive real estate license may serve on the panel.

c

Which statement is TRUE regarding a real estate sales associate who is convicted of driving under the influence (DUI)? A) The sales associate's employer is required to notify the DBPR of the DUI conviction. B) Only real estate applicants are required to disclose criminal offenses to the DBPR. C) The sales associate must report the DUI conviction within 30 days to the Commission. D) The sales associate does not need to report the DUI conviction because only felony convictions need to be reported to the Commission.