FL REAL ESTATE CHAPTER 2
20. A Georgia broker with extensive experience in conducting auctions was asked by a local real estate broker to auction a small motel in Jacksonville, Florida. The auction did not result in a sale. The Florida broker paid the Georgia broker for out-of-pocket expenses, but did not pay a commission. Which of the following statements is correct? (a) The Georgia broker violated the license law. (b) The Florida broker did not violate the license law. (c) The Florida broker is not subject to discipline by the Florida Real Estate Commission. (d) The transaction is perfectly within the license law.
Your answer: A The Georgia broker performed a service of real estate (auctioning) in the state of Florida for another person (the Florida broker) for compensation (payment of expenses). A Florida real estate license is required when anyone performs these services (F.S. 475), unless they are otherwise exempt. Reference: Chapter 2, Activities Requiring a Real Estate License
2. What is the purpose of the real estate license law? (a) To protect the public (b) To protect licensees (c) To clarify the law (d) To grant licenses
Your answer: A The purpose of the Florida Real Estate License Law, F.S. 475, is to protect the public. The DBPR is essentially a consumer protection agency. Reference: Chapter 2, Real Estate License Law, Purpose of the Law
15. Which statement correctly applies to an actively licensed attorney who is a member in good standing with the Florida Bar? (a) The attorney may charge commissions is connection with real estate activities. (b) The attorney is exempt from biennial 14-hour continuing education requirements to maintain a real estate license. (c) The attorney is not allowed to simultaneously hold a real estate license. (d) The attorney may be licensed as a real estate broker, but not as a sales associate.
Your answer: B Actively licensed Florida attorneys who are in good standing with the Florida Bar and are otherwise qualified under the real estate license law are exempt from the 14-hour biennial continuing education license renewal requirements. Reference: Chapter 2, Renewing a Florida Real Estate License, Continuing Education (CE)
5. What does the registration of an active sales associate with the Department refer to? (a) Placing and keeping on record the sales associate's name and home address (b) Placing and keeping on record the sales associate's name, home address and business address of his or her employing broker (c) The broker's name and business address (d) Placing and keeping on record the sales associate's name, and the business address of his or her employer
Your answer: B Registration is the placing and keeping on record of the name and address of an individual or business. The Division of Real Estate (DRE, or the Division) maintains a registration list of all brokers, sales associates, and businesses that employ licensees engaged in the real estate business. Reference: Chapter 2, Licensure and Registration
3. Why was the Florida Real Estate Commission (FREC, or the Commission) created? (a) To protect the public (b) To administer and enforce the law (c) To discipline licensees (d) To award professional designations
Your answer: B The first FREC was created in 1925 to administer and enforce the law, streamlining the process by removing the necessity for court enforcement. Reference: Chapter 2, Real Estate License Law, History of the Law
1. The Florida Real Estate Commission was first created in what year? (a) 1932 (b) 1925 (c) 1923 (d) 1919
Your answer: B The first Florida Real Estate Commission was created in 1925 to administer and enforce the law, streamlining the process by removing the necessity for court enforcement. Reference: Chapter 2, Real Estate License Law, History of the Law
9. All of the following services require a real estate license, EXCEPT: (a) Leasing (b) Mortgaging (c) Buying (d) Selling
Your answer: B The most common services of real estate requiring a real estate license are appraising (in a non-federally related transaction), buying, auctioning, renting, selling, advertising real estate services, leasing, and exchanging. F.S. 475.01 specifies the services that require a valid active real estate license to perform. As discussed in Chapter 1, mortgage loan originators require a separate license issued by the FDFS. Reference: Chapter 2, Activities Requiring a Real Estate License, Statutory Services of Real Estate, Memory Device: "A BAR SALE"
17. Florida has an agreement with some other states which recognizes the similarity in education and experience requirements for licensees. What is the agreement called? (a) Reciprocity (b) Mutual recognition (c) Cooperative licensure (d) Intrastate licensing
Your answer: B The state of Florida has contractual agreements, referred to as mutual recognition, with a limited number of states recognizing the similarity in the content of their mutual educational and experience requirements for real estate licensing. Reference: Chapter 2, Obtaining a Florida Real Estate License, Obtaining a License by Mutual Recognition
16. What is a broker associate? (a) A broker who employs sales associates (b) A sales associate (c) A broker who is employed as a sales associate (d) A sales associate who is employed as a broker
Your answer: C A broker associate has passed the state broker exam and is qualified to receive a broker's license, but chooses instead to be employed under the direction, control, and management of an actively licensed broker or owner-developer. In this capacity, the broker associate acts as a sales associate, not a broker. Reference: Chapter 2, Obtaining a Florida Real Estate License, License Categories - Broker Associate
29. A licensed sales associate wishes to work for Broker A during the week, and works in a different town with Broker B on the weekend. Which statement best describes this situation? (a) This is legal if the sales associate has a group license. (b) This is legal if the brokers have multiple licenses. (c) This is a violation of FS 475. (d) This is legal, provided that the sales associate is an independent contractor, not an employee of the brokers.
Your answer: C A sales associate or broker associate can only work for one broker at a time. Reference: Chapter 2, Employment - Employment by a Broker
25. What term is used to refer to an individual who has obtained a Florida broker license, but chooses to work under another broker in the capacity of a sales associate? (a) Broker (b) Sales associate (c) Broker associate (d) Owner-developer
Your answer: C An applicant for a broker's license may choose to continue employment in a sales associate's capacity with a current employer subsequent to passing the state examination. If so, the applicant will be registered as a broker associate after passing the exam. Reference: Chapter 2, Obtaining a Florida Real Estate License, License Categories - Broker Associate
21. What are the requirements regarding licensure and registration for an owner-developer who employs one or more real estate sales associates to sell properties belonging to the owner-developer? (a) The owner-developer must hold a valid real estate license, but does not need to register with the Department (b) The owner-developer must hold a valid real estate license and must register with the Department (c) The owner-developer does not need a real estate license, but must register with the Department (d) The owner-developer does not need a real estate license and does not need to register with the Department
Your answer: C An owner-developer is an individual or entity that is in the business of buying, owning and/or developing real estate. The owner-developer who employs sales associates must be registered with the Departmentm but requires no real estate license. Reference: Chapter 2, Employment - Employment by an Owner-Developer
7. What are the minimum employment requirements for a licensed sales associate to qualify for a real estate broker's license? (a) Employed for 6 months under one actively licensed broker (b) Employed for 12 months under one actively licensed broker (c) Employed for 24 months under one or more actively licensed brokers (d) Employed for 6 months under one or more actively licensed brokers
Your answer: C Applicants for a broker's license must have been licensed under one or more actively licensed brokers for at least 24 months during the preceding 5 years to qualify for a Florida real estate broker's license. Reference: Chapter 2, Obtaining a Florida Real Estate License, License Categories - Broker
23. Which of the following individuals is considered an attorney-in-fact? (a) An individual who has successfully completed law school, and passed a state bar exam (b) A paralegal who works on closing real estate transactions (c) Someone who has been granted power of attorney (d) A real estate agent working with a buyer or seller
Your answer: C Attorneys-in-fact are persons granted authority under a power of attorney to act for others in some capacity such as signing documents. F.S. 475.011 identifies those persons or entities that are exempt under the law. An exemption allows certain unlicensed persons or entities to perform services in the state of Florida for compensation that might otherwise require a real estate license. Attorneys-in-fact are included in these exemptions. Reference: Chapter 2, Individuals Who are Exempt from Licensure
13. Which of the following statements best describes an attorney-in-fact? (a) An attorney-in-fact must be a member of the Florida Bar. (b) An attorney-in-fact may be paid a commission for services of real estate. (c) An attorney-in-fact is authorized by a power of attorney to act for another. (d) An attorney-in-fact is required to hold an active real estate license.
Your answer: C Attorneys-in-fact are persons granted authority under a power of attorney to act for others in some capacity such as signing documents. Reference: Chapter 2, Individuals Who are Exempt from Licensure
18. Which of the following statements is true regarding a plumber who has been appointed by a court to appraise a small business? (a) The plumber is in violation of F.S. 475. (b) The plumber is allowed to charge a commission. (c) The plumber may do so and be paid a fee. (d) The plumber must first be licensed under F.S. 475, Part II.
Your answer: C Persons appointed by a court of law to perform real estate services are exempt from real estate licensing requirements when employed by government agencies, railroads, rural electric cooperatives, or public utilities. Reference: Chapter 2, Individuals Who are Exempt from Licensure - Court Appointees
10. All of the following information appears on a Florida real estate license, EXCEPT: (a) The Seal of the State of Florida (b) An expiration date (c) The signature of the Governor (d) The name of the Secretary of the DBPR
Your answer: C The real estate license indicates the name of the licensee, the type of license, the licensee's address, effective date, expiration date, Seal of the State of Florida, the name of the Governor and the name of the secretary of the DBPR. Reference: Chapter 2, Licensure and Registration, Form of the License
28. An active Florida licensee decides to move to North Carolina, but wishes to keep her Florida license active and continue to practice real estate in Florida. Which of the following best describes this situation? (a) The licensee must be located in Florida to sell real estate in Florida. (b) The licensee must be a broker to sell real estate in Florida if she is located outside of Florida. (c) The licensee must obtain a North Carolina real estate license. (d) The licensee must notify the Department of her change of address, and continue to comply with all Florida regulations.
Your answer: D A nonresident of the state of Florida may practice real estate in Florida with a Florida real estate license. A licensee who becomes a nonresident must provide notification within 60 days. To continue practicing real estate in the state of Florida, the licensee must continue to comply with all Florida regulations. Nonresident licensees, whether from a mutual recognition state or otherwise, must take all post-license and continuing education courses required of Florida licensees. Reference: Chapter 2, Obtaining a Florida Real Estate License, General Qualifications for Licensure; Obtaining a License by Mutual Recognition
6. How may a licensed sales associate be paid by his or her owner-developer? (a) On a salary basis only (b) On a commission basis only (c) On a commission basis without a bonus (d) On a commission or salary basis
Your answer: D A sales associate or broker associate employed by an owner-developer can perform services for compensation only with regard to property belonging to the owner-developer. Compensation includes anything or any service of value paid, received, or expected to be paid or received. The owner-developer can pay the sales associate a commission or a salary. Reference: Chapter 2, Employment - Employment by an Owner-Developer
8. How many hours of post-license education are required to renew a broker's license? (a) 14 (b) 30 (c) 45 (d) 60
Your answer: D All brokers, whether active or inactive, must complete 60 hours of post-license education during their initial license period as a broker. The license of any broker that fails to complete this requirement will be void. Reference: Chapter 2, Renewing a Florida Real Estate License, Post-License (First Renewal) Requirements - Broker First Renewal
26. A sales associate did not complete their post-licensing requirement by the expiration of the initial license. What grace period will the state grant for the licensee to reinstate the license? (a) 30 days (b) 12 months (c) 24 months (d) There is no grace period. The license is void.
Your answer: D All sales associates, including attorneys with a sales associate license, whether actively or inactively licensed, must complete a 45-hour post-licensing course prior to the expiration date of their initial license period. Failure to complete this required course prior to expiration of the initial license will cause the license to become void, and the licensee will be out of business. There is no grace period. If the individual wishes to continue in the real estate profession, he or she would be required to take the 63-hour pre-license course over again and pass another state examination. Reference: Chapter 2, Renewing a Florida Real Estate License, Post-license (First Renewal) Requirements - Sales Associate First Renewal
4. A sales associate failed to complete the required post-license education prior to their renewal deadline. What is the status of the sales associate's license? (a) Revoked (b) Suspended (c) Involuntarily inactive (d) Void
Your answer: D All sales associates, whether actively or inactively licensed, must complete a 45-hour post-licensing course prior to the expiration date of their initial license period. Failure to complete this required course prior to expiration of the initial license will cause the license to become void, and the licensee will be out of business. To continue in the real estate profession, he or she must take the 63-hour pre-license course over again and pass another state examination. Reference: Chapter 2, Renewing a Florida Real Estate License, Post-license (First Renewal) Requirements - Sales Associate First Renewal
22. Blake received her initial sales associate's license on August 23rd, 2016 with an expiration date of March 31st, 2018. If Blake does not complete her 45-hour post-license course by the expiration date, what will the status of her license be? (a) Suspended (b) Revoked (c) Active (d) Void
Your answer: D All sales associates, whether actively or inactively licensed, must complete a 45-hour post-licensing course prior to the expiration date of their initial license period. Failure to complete this required course prior to expiration of the initial license will cause the license to become void, and the licensee will be out of business. To continue in the real estate profession, he or she must take the 63-hour pre-license course over again and pass another state examination. Reference: Chapter 2, Renewing a Florida Real Estate License, Postlicense (First Renewal) Requirements - Sales Associate First Renewal
27. An applicant for a real estate license had his/her application denied. All of the following are valid reasons for a denial, EXCEPT? (a) The applicant was previously licensed by the Department and had prior disciplinary history. (b) The applicant forgot to answer all of the questions on the application. (c) The applicant did not submit fingerprints with the application. (d) The applicant was not a US Citizen.
Your answer: D Applicants for a Florida real estate license are not required to be a resident of the state of Florida or to be a citizen of the United States. Reference: Chapter 2, Obtaining a Florida Real Estate License, General Qualifications for Licensure; Application Approval or Denial
11. What must an applicant for a real estate license do if he or she has been convicted of a crime? (a) The applicant must disclose the crime only if it was a felony or resulted in jail time. (b) The applicant need not disclose it on the application unless there was an order of restitution. (c) The applicant must disclose all arrests and convictions. (d) The applicant must disclose all convictions on the application.
Your answer: D Applicants for a Florida real estate license must disclose any criminal convictions other than minor traffic infractions on their application. Reference: Chapter 2, Obtaining a Florida Real Estate License, Initial License Application; Answering Background Questions
12. Which condition must exist for an applicant to qualify for a Florida real estate license? (a) The applicant must be a citizen of the United States. (b) The applicant must be a Florida resident. (c) The applicant must be at least 21 years of age. (d) The applicant must have a high school education or equivalent.
Your answer: D Applicants for a real estate license must have attained the age of majority, which in Florida is 18 or older, and have a high school education or equivalent. An applicant for a Florida real estate license is not required to be a resident of the state of Florida. Reference: Chapter 2, Obtaining a Florida Real Estate License, General Qualifications for Licensure
14. Which individual is exempt from the licensing requirements of Florida Statute 475? (a) A partner in a real estate partnership that receives compensation in excess of their interest in the partnership for performance of real estate services on behalf of the partnership (b) A condominium manager who is paid on a commission basis for rentals of less than 1 year (c) An appraiser who is certified under Florida Statute 475, Part II, when performing brokerage services (d) An attorney who performs legal duties in connection with a real estate transaction
Your answer: D Attorneys at law performing legal services on behalf of their clients, preparing documents, handling closings and giving legal advice are exempt under F.S. 475.011 from requiring a real estate license. They may not, however, perform services of real estate for compensation or be paid sales commissions or referral fees. Reference: Chapter 2, Individuals Who are Exempt from Licensure
19. All of the following individuals are exempt from the real estate license law, EXCEPT: (a) Employees of a corporation who are paid on a salary basis (b) Partners in a partnership who receive a pro rata share of the profits (c) Condominium managers who rent units within the complex for periods up to 1 year (d) Funeral directors performing duties of real estate for compensation
Your answer: D Cemetery lot salespersons are exempt, but not funeral directors. Salaried employees of individuals, partnerships, or corporations that own real estate may perform real estate services on behalf of their employers without being licensed. Partners in a partnership that are performing real estate services for the partnership are exempt from licensing if each partner receives a pro rata share of profit based on their ownership interest in the partnership. Salaried managers of a condominium are exempt when renting individual units for rental periods that are no greater than 1 year. Reference: Chapter 2, Individuals Who Are Exempt from Licensure
24. Which statement is correct concerning an applicant whose real estate application was denied by the Department of Business and Professional Regulation? (a) The denial is final and no appeal may be taken by the applicant. (b) An appeal may be filed with the District Court of Appeal within 90 days. (c) The Department is not required to inform the applicant of the reason for the denial. (d) The applicant must be notified in writing of the reason for the denial and advised of the right to request a formal hearing.
Your answer: D If an application to take a state examination is denied by the Department, the applicant must be notified in writing and allowed 21 days to file for a formal hearing before an administrative law judge in accordance with F.S. 120, the Florida Administrative Procedure Act. Reference: Chapter 2, Obtaining a Florida Real Estate License, Application Approval or Denial - Application Denial