FREMC4
Rebecca purchased a rental list one week ago from a real estate broker. Rebecca inspected an apartment described in the list. The apartment manager told Rebecca that cats were not allowed. Rebecca had specifically looked at the apartment because the rental list indicated that pets were allowed. Immediately, Rebecca orally demanded and should legally receive from the broker
100 percent of the fee paid. The Reason: If the information provided to a prospective tenant is not current or is inaccurate in any material respect, the full fee must be repaid to the prospective tenant on demand.
Broker Murl is getting prepared to open Little Mo Realty as a sole proprietorship and is placing an order to have an entrance sign made. Which wording does NOT need to be included on the sign?
1000 Sunset Blvd. The Reason: The entrance sign must contain the name of the broker, trade name, and the words "Licensed Real Estate Broker." The word "Licensed" may be abbreviated.
An individual who paid for rental information but did not obtain a rental is entitled to repayment of
75 percent of the fee if requested within 30 days of the contract/receipt date. The Reason: If a prospective tenant does not obtain a rental, he or she is entitled to 75 percent of the fee paid if requested within 30 days of the contract/receipt date.
Which statement is FALSE concerning the payment of an unearned fee or kickback?
A real estate licensee may be paid a fee for referring buyers to a title company, provided the buyer is informed in advance of the facts concerning the fee. The Reason: Kickbacks to brokers must not violate the Real Estate Settlement Procedures Act (RESPA). RESPA prohibits the payment of a kickback or unearned fee associated with a settlement(closing) service, including title insurance.
Broker Murl decides to organize Little Mo Realty as a limited partnership. What must Murl accomplish?
A written instrument filed with Florida Department of State creates a limited partnership. A limited partnership that engages in any of the sevices of real estate must be registered with the FREC. The general partners must be registered.
A real estate sales associate decides to sell property he or she owns "by owner." Which statement is TRUE regarding this situation?
At the first point of meaningful negotiation, the licensee should disclose to prospective buyers that he or she is licensed as a real estate sales associate. The Reason: The rules regarding advertising real property do not prevent a real estate licensee from selling his or her own property. It is not necessary for the licensee to indicate in the ad that the seller is a real estate licensee. However, because a licensee has superior knowledge and expertise in real estate, to reduce liability the "by owner" licensee-seller should disclose at the first point of meaningful negotiation that the seller is a real estate licensee.
If the license issued to the only active broker of a real estate corporation becomes void for any reason, another active broker must be appointed within 14 calendar days. Failure to appoint another active broker will result in what action against the corporation's registration?
Automatic cancellation The Reason: If the only active broker of a brokerage corporation dies, resigns, or is removed from office, the vacancy must be filled within 14 calendar days. Failure to meet the 14-day deadline will result in the automatic cancellation of the brokerage firm's registration.
Steven is so cautious that he refuses to sign all legal documents. Your office policy is to include a note in his file indicating the time, date, place, and circumstance under which you made the disclosure that Steven refused to sign. You may NOT work with Steven under which circumstance?
Change from a single agent to a transaction broker to show Steven's home to an in-house buyer-principal The Reason: Steven must give written consent in order for the broker to transition from a single agent to a transaction broker.
Which disclosure notice MUST be given before a single agent can change to a transaction broker?
Consent to transition to transaction broker The Reason: The principal must sign or initial the consent to transition to transaction broker notice before a single agent can change to a transaction broker.
Which statement is FALSE regarding escrow accounts?
It is illegal for the broker to keep any earned interest even if the buyer and the seller give written permission. The Reason: Brokers may keep the earned interest from an interest-bearing escrow account only if all parties to the transaction give written consent.
John Anderson is a licensed real estate associate. Under which name may he register and be licensed?
John Anderson, LLC Из вопроса The Reason: Sales associate must be issued licenses in their legal names only. Sales associates may form a limited liability company and in this case, the DBPR issues the license in the licensee's legal name and includes the entity designation on the face of the license after the licensee submits the required forms.
Which business entity may be registered as a real estate broker?
Limited partnership The Reason: Business entities that may register as a real estate broker include: corporations, partnerships; sole proprietorships, limited liability companies, and limited liability partnerships.
Assume September 10, 2010, is the date an initial real estate license is issued. On what date will the initial license expire?
March 31, 2012 The Reason: 24 months from the initial effective date is September 10, 2012. September 30, 2012 is more than 24 months so the expiration date is March 31, 2012.
Which relationship is a general agency relationship?
Relationship between the employing broker and a broker associate Из вопроса The Reason: A general agent is authorized by the principal to perform acts associated with the continued operations of a particular job or a certain business of the principal. Sales associates and broker associates are general agents of their employing broker.
A transaction broker has all of the duties listed below EXCEPT
The Reason: There are seven listed duties of a transaction broker. Three of the duties are: (1) using skill, care, and diligence in the transaction: (2) disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer; and (3) limited confidentiality. Obedience is a duty of a single agent broker.
A brokerage relationship is terminated under which circumstance?
The broker agent renounces the brokerage relationship. The Reason: A brokerage relationship may be terminated when the broker renounces the brokerage relationship by giving notice to the principal or customer.
Which statement BEST describes the duty of loyalty in a single agent relationship?
The broker must act in the best interest of the principal. The Reason: A single agent is a fiduciary. The single agent must avoid any situation that might breach his or her fiduciary relationship. Loyalty (faithfulness) requires the broker to always put the principal's interest above those of other people with whom the broker deals.
A sales associate receives a binder deposit from a prospective buyer on Thursday morning. Later that same day, the associate gives the binder deposit to his broker. By the end of business on what day of the week must the broker deposit the funds into her escrow account?
Tuesday The Reason: The FREC rule requires a broker to deposit escrow funds within three business days after the day the funds are received. If funds were received on Thursday, the three business days after the day of receipt are Friday, Monday, and Tuesday. The funds must be deposited before the end of Tuesday.
A license of ABC Realty must give the no brokerage relationship notice to
a for-sale-by-owner (FSBO) seller before showing the FSBO home to a buyer customer of ABC Realty. The Reason: Licensees are not required to give the no brokerage relationship notice if: (1) the licensee knows that a single agent broker represents the buyer, or(2) at a bona fide "open house." The licensee must give the no brokerage relationship notice to a FSBO seller before showing the residential property to a buyer customer of the brokerage firm in order to inform the seller the real estate licensee is representing the buyer's interests in the matter and not the interests of the seller.
A real estate broker who works in a limited capacity for both the buyer and the seller in the same transaction is
a transaction broker. The Reason: A transaction broker provides limited representation to a buyer, a seller, or both in a real estate transaction, but does not represent either the seller or the buyer in a fiduciary capacity.
A broker's obligations to consumers with whom the brokerage firm has a no brokerage relationship include the duty of
accounting for all funds. The Reason: Brokers have a duty to account for all funds entrusted to the broker. Full disclosure and loyalty are owed to clients by single agent brokers. Limited confidentiality is only owed by transaction brokers to their customers.
To form a general partnership, two or more persons must
agree to engage in business together and share in the profits and losses. The Reason: A general partnership is an association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business, each having the power to bind the other in transactions, and each being entitled to receive a share of the profits in an amount agreed on by the parties.
The sales commission rates applicable to the various types of property sold in Florida are determined by
agreement between each broker and buyer or seller. The Reason: The amount of commission to be paid is negotiable; and it is arrived at by agreement between the broker and buyer or seller.
In the common public relationship that exists in a typical real estate transaction, buyers and sellers are said to be dealing
at arm's length with each other. The Reason: Typically it is a transaction in which the parties are dealing from equal bargaining positions, each looking out for his or her best interest.
A transaction broker involved in a residential sale discovered before the closing that a large recycling facility will be built approximately three-quarters of a mile from the home site. The transaction broker should
disclose the information to both the buyer and the seller. The Reason: The broker has a duty to disclose all known facts that materially affect the value of residential real property, and are not readily observable, to all parties to the transaction. The broker also has a duty to use skill, care, and diligence with regard to the transaction, including information regarding development that may affect the value of the property.
A corporation sole is a(an)
ecclesiastical organization. религиозная организация The Reason: A corporation sole is an ecclesiastical or church organization
Real estate sales associates who receive checks payable to them as deposits on the purchase of real property must
endorse the checks and immediately turn them over to their employers. The Reason: If a check is made out to the sales associate, it should be immediately endorsed and include the words, "For Deposit Only to (the name of the escrow account)" and turned over to the broker.
The seller refuses to pay the broker the commission earned. The broker may
file suit in a court of law against the seller. The Reason: A broker may place a lien on real property for nonpayment of commission only if the broker is authorized to do so in a contractual agreement. Otherwise, when a buyer or seller refuses to pay a commission, the broker is required to take legal action to collect the monies due by filing a suit against the party for the amount due.
Murl decides to incorporate his new real estate business, Little Mo Realty, Inc., in order to reduce his personal liability. Murl must do each requirement EXCEPT
file the articles of incorporation with the Secretary of the DBPR. The Reason: A corporation is formed by applying for a charter approved by the Department of State in Tallahassee. If a corporation is formed as a real estate brokerage firm, it must be registered with the DBPR. Officers and directors must be registered with the DBPR.
A real estate licensee makes a nonfactual statement about a property and the buyer accuses the licensee of fraud. The buyer is NOT required to prove that the
information misstated could be proved to be false with due diligence. The Reason: There are four elements associated with a cause of action for fraud: (1) the licensee made a misstatement or failed to disclose a material fact: (2) the licensee either knew or should have known that the statement was not accurate or that the undisclosed information should have been disclosed; (3) the buyer relied on the misstatement; and (4) the buyer was damaged as a result.
broker receives conflicting demands for the escrow money in a dispute concerning a roof inspection report. Both the buyer and seller claim the earnest money deposit. The broker must
institute one of the statutory settlement procedures within 30 business days after the last demand. The Reason: If a broker receives conflicting demands on escrowed property, the broker must notify the FREC, in writing, within 15 (not 10) business days of the party's last demand unless specifically exempted. Further, the broker must institute one of four settlement procedures within 30 business days after the last demand.
Broker Murl of Little Mo Realty and Broker Dan of Boyds of Naples agree to work with one another to market a prestigious marina in Naples, Florida. Murl is particularly knowledgeable regarding marinas and Dan is an expert on the Naples real estate market, so they decide to combine their expertise on this particular listing. This business arrangement is referred to as a(n)
joint venture. The Reason: A joint venture structure is normally used when two or more parties combine their efforts to complete a single business transaction.
In Florida, listings obtained and any commissions paid by the buyer or seller are
legally property of the sales associate's employer. The Reason: Listings belong to the broker and commissions are paid to the broker.
One difference between a general partnership and a limited partnership is that
limited partners must make a cash or property investment. The Reason: The limited partners must make an investment of cash or property, but not services.
When a sales associate decides to leave the employ of her broker to work for another broker, she
must notify the FREC within ten days of her change in broker-employer. The Reason: Sales associate must notify the FREC not later than ten days after a change of employer. They must wait a "reasonable length of time" before actively soliciting any buyers or sellers of a former employer. A sales associate is prohibited from doing anything that might discredit the former employer or damage the goodwill of the employer's business. Listings are the property of the broker.
A dispute arises between the buyer and the seller as to which one is entitled to escrowed property. The broker should first
notify the FREC in writing, unless exempted from the notice requirements. The Reason: If a broker receives conflicting demands on escrowed property, the broker must notify the FREC, in writing, within 15 days of the party's last demand unless specifically exempted.
Sandi decides to relocate her real estate brokerage office. She notifies the Commission of the change in business address. Sandi also informs the Commission of the names of two sales associates who are no longer associated with her brokerage. The sales associates' license will be
placed on involuntary inactive status. The Reason: When a broker changes his or her business address he or she must notify the Commission of the change no later than ten days after the change occurs. The broker must also inform the FREC of the names of any sales associates who are longer employed with the broker. These sales associates are placed in involuntary inactive status.
A seller lists her home for $116,900. The seller tells the sales associate that she needs to get at least $112,000 for the home. Following Sunday's open house, the sales associate receives two offers on the home. The first offer for $116,900 is contingent on the seller's financing a portion of the down payment. The second offer is for $112,000, with the buyer to secure her own financing. The sales associate should You answered: present both offers, explaining the details of each to the seller.
present both offers, explaining the details of each to the seller. The Reason: Unless a party has previously directed the licensee otherwise in writing, the licensee must present all offers and counteroffers in a timely manner.
In connection with escrow accounts, the Florida Real Estate Commission has rules and regulations that
prohibits the depositing of more than $1,000 of personal funds into a sales esrow account. The Reason: A broker is allowed to place in the escrow account an amount up to $1,000 of personal or brokerage funds.
Broker Murl decides to use the trade name Little Mo Realty for the name of his real estate business. Murl must
register the trade name with the DPPR. The Reason: A broker may use his or her name or a fictitious name as a trade name once it has been registered with the DBPR.
A broker has conflicting demands from a buyer and a seller regarding an escrow deposit. The broker may employ all of the escape procedures listed below EXCEPT
request an informal hearing before the FREC to resolve the matter. The Reason: There are four settlement procedures: mediation, arbitration, litigation and escrow disbursement (порядок выплаты) order.
The brokerage relationship disclosure requirements in Chapter 475 apply to the
sale of a condominium unit. Это из конктетного билета. Определeние residential transection - любая транзакция (продажа, аренда), любой недвижимости, включающей до 4х юнитов, предназначенных для жилья и с/х замли размером до 10 акров The Reason: The disclosure requirements in Chapter 475 apply to residential transactions. According to Florida law, only the condominium meets the definition of a residential transaction.
If a principal gives his or her broker instructions that will result in loss or harm to the principal, the broker
should inform the principal of possible harm inherent in the instructions, and then either do as instructed or withdraw from the relationship The Reason: The broker is at all times obligated to act in conformity with the principal's legal instructions as long as those instructions are legal and relevant to the contractual relationship. If a broker feels that carrying out the principal's legal directions will harm the principal, the broker must promptly inform the principal of all facts along with the broker's opinion. However, if the principal will not change the instructions, the broker must either carry them out or withdraw from the relationship.
Designated sales associates are best described as
single agents for the buyer and the seller in nonresidential transaction where the buyer and the seller meet certain asset thresholds. The Reason: In a nonresidential transactions, and where the buyer and seller each have assets of $1 million or more, the broker, at the request of the customers, may designate two sales associates to act as single agents for different customers in the same transaction.
Broker Murl is an agent of the seller. The seller has disclosed to Murl that the ceramic tile is loose in the dining room because the cement did not adhere to the tile. The loose tile is not readily visible because it is coverd with an area rug to protect the seller's toddler. Murl has satified his legal obligation if he tells the buyer
that ceramic tiles in the dining room are loose. The Reason: The broker is obligated to disclose all known facts that materially affect the value of residential real property that are not readily observable to the buyer.
A real estate sales associate must disclose to a prospective buyer that
the family room addition does not comply with local building codes. The Reason: The broker is obligated to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer. Personal information concerning the seller, previous occupants of the property, or the demographics of the area are not material facts according to law.
Broker Vagabond moves his real estate office to a new, trendy location. He is so busy coordinating the move that he forgets to notify the DBPR. Broker Vagabond's license
will cease to be in force. The Reason: Because Broker Vagabond did not notify the Commission of his business address change within ten days of the change, his license will cease to be in force until proper notification is received by the Commission.
A real estate licensee on active duty with the U.S. Army is required to renew his or her license
within six months after discharge. The Reason: A member of the U.S. Armed Forces who at the time of entry to active duty was a Florida licensee in good standing is exempt from all renew requirements while on active duty and for six months thereafter.