Chapter 1: Legal Issues and Risk Management
the roof occasionally leaks.
A licensee must disclose to a homebuyer that
true
A single agent who transitions to transaction broker may not disclose to another party any information learned while serving as a single agent. T of F?
change of address
Be sure to send in a ___ ___ ___ to the DBPR using Form RE-10. You can use the site to renew and print your license.
established business relationship
Which term is found in the Junk Fax Protection Act?
agent
a person who acts or does business for another
principal
(1) The person who enters into a fiduciary relationship with a single agent licensee. (2) The amount of money remaining due on a mortgage loan.
single agent
A ___ ___ represents either the buyer or the seller, but not both, in a transaction.
material fact
A fact that is important to the subject matter of the contract.
false
A transaction broker may tell a buyer if he knows that the seller will take less than the asking price.
false
A transaction broker owes loyalty to her buyer.
False
If a listed house was the site of a homicide six months earlier, the licensee must disclose the fact to a prospective buyer. T or F?
false
Nonresidential buyers and sellers must have personal assets of $100,000 before a broker may appoint designated sales associates in a transaction.
transaction broker
Situations Exempt From Disclosure Notices The licensee is acting as a ___ ___.
90
The Department of Business and Professional Regulation (DBPR) will send a renewal notice to a licensee's last known address of the licensee at least ___ days before the license expires.
dual
___ agency is not an authorized brokerage relationship. Florida law prohibits dual agency because a licensee cannot fairly represent both parties in a transaction.
single agent
A broker who represents either the seller or the buyer in a real estate transaction, but not both.
true
A single agent for one party in a transaction may decide to work with the other party with no brokerage relationship.
limited representation
A transaction broker provides ___ ___ to a buyer, a seller, or both in a real estate transaction, but does not represent either party in a fiduciary capacity.
customer
a person who purchases goods or services from another; buyer; patron.
agency
the duty or function of an agent
transaction broker
A ___ ___ provides limited representation to a buyer, a seller, or both in a real estate transaction, but does not represent either party in a fiduciary capacity
single agent, principal
A ___ ___ represents either the buyer or the seller, but not both, in a transaction. The ___ relies on the single agent to give skilled and knowledgeable advice and to help negotiate the best terms in dealings with the customer.
residential, four, 10
A ___ sale is defined as: -property with ___ units or fewer, -unimproved residential property intended for use of four units or fewer, or -agricultural property of ___ acres or fewer.
a dual agent
A broker may NOT work with a buyer or a seller as
60
A broker must complete ___ hours of broker post-license education before the first renewal.
any of these
A broker must disclose known facts that materially affect the value of residential property when that broker is
radon gas
A colorless, odorless gas occurring from the natural breakdown of uranium in the soil. Many experts believe radon gas to be the second-leading cause of lung cancer.
18, 3
A company that has an existing business relationship with the consumer may place a call, even if that consumer is on the registry, for up to: -___ months after that consumer's last purchase, delivery, or payment, even if the consumer's number is on the registry; or -___ months after that consumer makes an inquiry or submits an application to the company.
single agent notice
A disclosure form informing the principal of the duties of his single agent.
consent to transition to transaction broker notice
A disclosure form that allows a single agent to become a transaction broker. The notice must be signed by the principal before the broker can make the change.
no brokerage relationship notice
A disclosure that must be given by a licensee who does not represent a buyer or a seller before entering into an agreement or showing a property.
property condition disclosure
A form designed for disclosure to a buyer of any property defects. The form is normally signed by the seller, and the buyer signs a receipt that the buyer has received the disclosure.
true
A licensee can call a past customer up to 18 months after the customer's last purchase, even if the customer's number is on the National Do Not Call Registry. T or F?
true
A licensee who acts as a single agent must give a single-agent disclosure notice before showing a duplex to a prospective buyer.
false
A licensee who acts as a transaction broker must give a transaction broker notice before showing a house to a prospective buyer.
need not give the customer a no brokerage relationship notice before showing property unless acting as a designated sales associate.
A licensee who sells commercial property
false
A married couple filing jointly may exclude a maximum of $250,000 of gain on the sale of their personal residence if the taxpayers owned and occupied the residence for at least two of the previous five years. T or F?
successfully complete an 8-hour training course offered by an accredited training provider.
A person who wants to be a certified lead paint renovator must
a single agent
A principal is represented by
single agent
A principal is responsible for the acts of his
transaction, single, no, nonresidential
A real estate licensee may work with potential buyers and sellers: as a ___ broker, as a ___ agent, with ___ brokerage relationship, or as a designated sales associate in a ___ transaction.
community association
A residential homeowners association in which membership is a condition of ownership of a unit in a part of a residential development that is authorized to impose a fee that may become a lien on the parcel.
false
A sales associate must complete a 60-hour post-licensing course before the first renewal. T of F?
selling residential property as a single agent
A sales associate must give a brokerage relationship disclosure to a customer when
45
A sales associate must successfully complete a ___-hour sales associate post-licensing course before the associate's first renewal.
post-licensing
A sales associate or broker who has received a four-year degree, or higher, in real estate from an accredited institution of higher education is exempt from the ___ ___ education requirements.
designated sales associate
A sales associate who is appointed by a broker as a single agent for a buyer or a seller in a nonresidential transaction when another sales associate in the firm has been appointed as the single agent for the other party in the transaction. Both buyer and seller must have assets of at least $1 million and agree to the arrangement.
She must retake the course and pass a different end-of-course exam.
A student failed her 45-hour post-licensing course for the second time. What are her options if she wishes to maintain her license?
same date
After the first renewal, the license will expire on the ___ ___ every two years.
Buyer Brokerage Agreement
An agreement between a buyer and a broker for the broker to provide services to a buyer for compensation. The broker may be acting as a single agent, a transaction broker, or a nonrepresentative.
buyer brokerage agreement
An agreement between a buyer and a broker for the broker to provide services to a buyer for compensation. The broker may be acting as a single agent, a transaction broker, or a nonrepresentative.
innocent purchaser status
An amendment to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) that exempts from liability those landowners who made reasonable inquiries about hazardous substances before purchasing the property.
true
An initial real estate license expires on the first of two dates after 18 months: March 31 or September 30. T of F?
fiduciary relationship
Because only single agency creates a ___ ___, only single agents may call their customers "principals." The principal is responsible for the acts of his single agent.
five
Brokers must keep copies for at least ___ years of the disclosure notices for all residential transactions that result in a written sales contract.
500
Ensure that the myfloridalicense.com site has your current address and license status in its records. If your mailing address is different from the one in DBPR's records, you are subject to a $___ citation.
community association, disclosure
Florida law requires that if owners must be members in a ___ ___, the developers or owners of the parcel must give to the buyer, before the buyer signs a purchase contract a homeowners association ___.
Five
For how many years must a broker retain brokerage relationship disclosures?
3
Homeowners Association Disclosure If the disclosure summary required by section 689.26, Florida Statutes, has not been provided to the prospective purchaser before executing this contract for sale, this contract is voidable by buyer by delivering to seller or seller's agent written notice of the buyer's intention to cancel within ___ days after receipt of the disclosure summary or prior to closing, whichever occurs first. Any purported waiver of this voidability right has no effect. Buyer's right to void this contract shall terminate at closing.
twice
How many times can a student take the 45-hour-course final examination?
void, again
If the licensee does not successfully complete the post-license requirement, the license becomes ___. A sales associate wanting to continue in real estate would have to take the prelicense course ___ and pass the state exam.
false or misleading statement
In real estate, a statement made by a licensee or a party in a real estate transaction that is not factual.
are legally bound to represent the seller.
Licensed sales associates working at the seller's single agent brokerage firm ___ ___ ___ ___ ___ ___ ___.
false
Licensees may act as designated sales associates in a residential transaction.
false
Licensees working with no brokerage relationship to the customer owe the customer the duty of confidentiality.
True
One of the MOST effective risk-management tools available to licensees is to suggest that the buyer order a home inspection. T of F?
true
Only single agents may call their customers "principals."
45
Persons renewing after the expiration date must pay a $ ___ late renewal fee.
dual agency
Representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in many states
nonresidential
Situations Exempt From Disclosure Notices selling ___ ___ property
radon gas
Some experts say that ___ ___ is the second-most-common source of lung cancer in the United States.
twice
Students who fail the end-of-course examination ___ must repeat the course.
one more
Students who fail the post-licensing education end-of-course examination have ___ ___ chance to pass a different end-of-course examination. The second exam may be taken immediately; there is no 30-day waiting period as is required for prelicense courses.
1978
The Residential Lead-Based Paint Hazard Reduction Act requires that disclosure be made to purchasers of residential buildings that were built before 1978. The seller, landlord, or licensee must provide the following before the contract is signed: -A lead hazard information pamphlet Information about the presence of any known lead--based paint or lead-based paint hazard -A 10-day period to conduct an inspection (does not apply to rentals)
consent to transition to transaction broker notice
The ___ ___ ___ ___ ___ ___ ___ allows single agents to change their brokerage relationship to that of a transaction broker. The principal must sign this notice before the single agent becomes a transaction broker.
principal
The ___ relies on the single agent to give skilled and knowledgeable advice and to help negotiate the best terms in dealings with the customer.
more energy-efficient buildings.
The increase in radon gas problems in houses is the result of
18, March 31, September 30
The initial real estate license expires on the first of two dates after ___ months have elapsed following issue: ___ ___ or ___ ___. For example, if a person passed her state exam on April 21 of this year, the license will expire on March 31, not quite two years later. If the expiration date falls on a weekend, the renewal date is extended to midnight of the next business day.
14
The license of a broker who does not complete the required post-license course will become void. But the broker may, after the license becomes void, take a __-hour continuing education course and apply for sales associate status. The licensee who wishes to become a broker again must successfully complete the broker prelicense course and pass the state exam.
no, single, transition
The three types of required residential brokerage notices include the following: -___ brokerage relationship notice -___ agent notice -consent to ___ to transaction broker notice
pay for and obtain an extensive environmental audit.
To claim innocent purchaser status under the hazardous substance statutes, a purchaser should
designated sales associate
Two sales associates work for a commercial broker. The broker allows one sales associate to act as a single agent for the buyer and the other sales associate to act as a single agent for the seller. Both the buyer and the seller have assets of more than $1 million, and each agrees to this form of representation. The situation describes a
transaction brokers, customer
Under Florida law, licensees are presumed to be working as ___ ___ unless they have entered into another brokerage relationship with a ___.
$1 million in assets
What monetary amount does a buyer need in order to work with a designated sales associate?
"You should be able to get information from the school board about which school your child can attend if you purchase this home."
Which statement to a prospective buyer is NOT likely to increase a licensee's liability?
misrepresenatation
While the legal definition is much broader, the common definition of __ is that is the act of a person who, either intentionally or unintentionally, fails to disclose a material fact or makes a false or misleading statement that is justifiably relied on by another, resulting in damage.
misrepresentation
While the legal definition is much broader, the common definition of ___ is that is the act of a person who, either intentionally or unintentionally, fails to disclose a material fact or makes a false or misleading statement that is justifiably relied on by another, resulting in damage.
Property Tax
___ ___ DISCLOSURE SUMMARY Buyer should not rely on the seller's current property taxes as the amount of property taxes that the buyer may be obligated to pay in the year subsequent to purchase. A change of ownership or property improvements triggers reassessments of the property that could result in higher property taxes. If you have any questions concerning valuation, contact the county property appraiser's office for information.
a single agent notice.
need not give the customer a no brokerage relationship notice before showing property unless acting as a designated sales associate.