Real Estate Continuing Education Practice Questions 45 hours

For how many years must a broker retain required brokerage relationship disclosures?

5 years

T/F: The major reason that listings expire is because they are overpriced

True

A sales associate needs to earn $40,000. If expenses such as Social Security, Medicare, and operating expenses average 35% of gross income, what should the sales associate's goal be for gross income?

$61,538 The $40,000 required income is equal to 65% (100%-35%) of the gross income. Divide $40,000 by .65 to find the necessary gross income.

A sales associate's goal is to make $58,000 in gross collected commissions next year. He feels that his listings should contribute about 50% of the required income. The average commission per transaction in his office is $1,200, and about two-thirds of his listings are expected to sell. He gets about three listings in five listing presentations. Approximately how many presentations must he make monthly to stay on target?

5 $58,000 x.50=$29,00/$1,200=24 listings that must sell 24/.667=36 listings that must be taken 36/.6=60 listing presentations to be made per year 60/12 months=5 listing presentations per month.

If a broker sells commercial property exclusively, he

Both need not give the customer a No Brokerage Relationship Notice before showing the property and, may be a single agent, a transaction broker, a designated sales associate, or have no brokerage relationship with the customer.

T/F: A Sales associate must complete a 60-hour post-licensing course before the first renewal.

False; 45-hour post-licensing course

T/F: A licensee who acts as a transaction broker must give a transaction broker notice before showing a house to a prospective buyer.

False; A licensee need not give a brokerage relationship notice when the licensee is acting as a transaction broker.

T/F: The Florida Fair Housing Act has more protected classes of persons than the federal statutes, including age and sexual orientation

False; Florida's act is modeled after the Federal Fair Housing Act, and carries the same prohibitions against discrimination based on race, color, religion, sex, national origin, familial status, or handicap.

T/F: A sales associate in a brokerage firm may work as a transaction broker to a buyer if another sales associate in the same firm is a single agent for the seller

False; If a single-agency relationship is established with a residential seller, all licensees in that brokerage firm have single-agent duties to that seller.

T/F: Nonverbal communication is rarely more important than what a person says.

False; In many cases, nonverbal communication is more important than what a person says. The real estate sales associate who understands body language will be better able to read the attitudes of customers.

T/F: Licensees acting as designated sales associates must give the parties to the transaction a Single Agent Notice Designated Sales Associate Notice.

False; Licensees acting as designated sales associates must give the parties to the transaction a Designated Sales Associate Notice.

T/F: Licensees working with no brokerage relationship to the customer owe the customer the duty of confidentiality.

False; Licensees working with no brokerage relationship owe only three duties to the customer: • deal honestly and fairly • disclosing all known facts that materially affect the value of the residential real property that are not readily observable to the buyer • accounting for all funds entrusted to the licensee

T/F: A transaction broker owes loyalty to her buyer.

False; Loyalty is a duty of a single agent. A transaction broker provides limited representation to a buyer, a seller, or both in a real estate transaction, but does not represent either in a fiduciary capacity.

T/F: The Fair Housing Act of 1988 added a prohibition against discrimination based on age.

False; The 1988 amendments added handicap and familial status as protected classes.

T/F: A transaction broker may tell a buyer if he knows that the seller will take less than the asking price.

False; The transaction broker may not reveal that the seller might accept a price less than the asking or list price.

T/F: 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.

False; a married couple filing jointly may exclude a maximum of $500,000 of gain on the sale of their personal residence.

T/F: It's productive for a licensee to try to get a new listing from a FSBO who does not need to sell.

False; agents should try to get listings from people who are motivated to sell. Unmotivated sellers are often uncooperative about showing the property.

T/F: A licensee is allowed to be a dual agent, so long as it is disclosed to the buyer and the seller.

False; dual agency is illegal in Florida.

T/F: The best place to locate expired listings is from classified advertising.

False; expired listings are found from reviewing the data from an MLS system.

T/F: In striving for success as a real estate sales associate, it is not essential to schedule time for family, recreation, exercise, and relaxation.

False; failing to set aside time for these activities can result in guilty feelings, discontent, poor health, or burnout.

T/F: Goal setting should begin with a short-term view: the accomplishments the sales associate aspires to achieve within the next few months.

False; goal setting should begin with a long-term view and work back towards the present.

T/F: Licensees may act as designated sales associates in a residential transaction.

False; only for nonresidential transactions

T/F: A broker who fails to disclose that the tenant of a rental house is infected with HIV may be sued by the potential new tenant.

False; persons with HIV/AIDS are entitled to every protection available to handicapped persons, including fair housing protections.

T/F: It is an easier remedy for victims of discrimination to sue in federal court rather than a state court.

False; suing in a state court is an easier remedy than a federal court

T/F: License laws are the best guides for what is honest and right in real estate practice.

False; the best guide is a strong code of ethics.

T/F: Accessibility standards for restrooms require that the bottom of the lavatory should be no lower than 21 inches, and the rim should be no higher than 42 inches.

False; the bottom of the lavatory should be no lower than 29 inches, not 21 inches. The rim should be no higher than 42 inches.

T/F: If a listed house was the site of a homicide six months earlier, the licensee must disclose the fact to a prospective buyer.

False; the fact that a property was, or was at any time suspected to have been, the site of a homicide, suicide, or death is not a material fact that must be disclosed in a real estate transaction.

A sales associate who writes a goal of "make as many sales this month as possible" has met the requirements of goal-setting.

False; the goal ahs a deadline but isn't measurable. Goals should be written, measurable, attainable, and flexible, and that establish deadlines.

T/F: A very important source of listings is buyer seminars.

False; the important sources of new listings are sphere of influence, expired listings, farm, FSBOs and FRBOs, and canvass.

T/F: The maximum fine per violation for a first offense of the Fair Housing Act is $5,000.

False; the maximum fine for a first offense is $11,000

T/F: The most successful real estate agents tend to be "hard sell."

False; the sales associate who provides honesty, service, and knowledge tends to be more successful than "hard sell" sales associates.

T/F: The best source of new listings is FRBOs.

False; the sphere of influence is the best source of new listings.

T/F: Unlicensed personal assistants may be classified as independent contractors, as long as they are paid a commission rather than a salary.

False; unlicensed personal assistants cannot be paid commissions, and, except in unusual circumstances, cannot be classified as independent contractors.

T/F: Your sphere of influence includes expired listings and owners in your farm area.

False; your sphere of influence will include family, friends, past customers, and former co-workers.

A student failed her sales associate post-licensing course for the second time. What are her options if she wishes to maintain her license?

She must retake the course and pass a different end-of-course exam

Before showing homes to a customer she has just met, a single agent broker must give the customer a

Single Agent Notice

T/F: A licensee who acts as a single agent must give a single agent disclosure notice before showing a duplex to a prospective buyer.

True

T/F: A sales associate's goals should be written, measurable, attainable, flexible, and they should be tied to deadlines.

True

T/F: A single agent who transitions to transaction broker may not disclose to another party any information learned while serving as a single agent.

True

T/F: An initial real estate license expires on the first of two dates after 18 months: March 31 or September 30

True

T/F: An unlicensed personal assistant may not negotiate or agree to any commission split or referral fee on behalf of the licensee.

True

T/F: One of the most effective risk-management tools available to licensees is to suggest that the buyer order a home inspection.

True

T/F: The Fair Housing Act requires that the parties come together to attempt to resolve every fair housing complaint in a process called 'conciliation'

True

T/F: The exclusive use of English-only advertising when there are also many non-English speaking persons or other minority persons may be discriminatory

True

T/F: The three types of knowledge that sales associates need to possess are technical, marketing, and product.

True

T/F: The use of jargon should be avoided when communicating with customers.

True

T/F: Under Florida Law, any person with or perceived as having AIDS or HIV is entitled to every protection available to handicapped persons, including fair housing protections.

True

T/F: Under the Housing for Older Persons Act, certain 55-and-older communities may ban children if at least 80% of the units have at least one occupant who is at least 55 years of age

True

T/F: 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 Do Not Call Registry.

True; A licensee can also call a past customer up to three months after that customer makes an inquiry or submits an application to the company.

T/F: Existing Structures must be made accessible when that goal is readily achievable, meaning that the goal can be carried out without much difficulty or expense

True; Full compliance with ADA is required for new construction and alteration

T/F: In the investigation of complaints, HUD will consider, as evidence of compliance, among other things, the use of Equal Housing Opportunity Logo.

True; The HUD will also consider statements or slogans stating that the property is available to all persons regardless of race, color, religion, sex handicap, familial status, or national origin

T/F: An over of five single-family houses is covered by the Fair Housing Act.

True; The law applies to persons who own four or more homes, multifamily properties (except properties with fewer than 4 units, one of which is occupied by the owner), brokers and sales associates who sell two or more homes in a year, and transactions in which a broker is involved. It does not apply to religious organizations or private clubs.

T/F: A single agent for one party in a transaction may decide to work with the other party with a no brokerage relationship.

True; a single agent for one part in a transaction may decide to work with the other party as a nonrepresentative.

T/F: Only single agents may call their customers "principals."

True; only single agency creates a fiduciary relationship.

T/F: Learning to prepare a comparative market analysis is technical knowledge.

True; technical knowledge provides the tools of the business, such as completing contracts properly, knowing sellers' and buyers' costs, and understanding the comparative market analysis process.

T/F: Under the ADA, for every inch of height, ramps should have at least one foot of length (1:12) and have a railing at least 34 inches high.

True; there must also be a 5-foot-long level landing at every 30-foot horizontal length of ramp, and at the top and bottom of the ramp and at switchbacks.

A broker manages a single-family home. Harry, a disabled person, wants to rent the property and wants to make alterations, including installing a ramp at the entrance, lowering the kitchen counters, and widening some of the doorways. He agrees to pay for the remodeling and restoring the premises at the end of the lease term. If the broker explains that the owner will not allow the alterations, would that violate the law?

Yes; Not only can housing providers not discriminate against a person with a disability, but also they must make reasonable accommodations to rules, policies, and practices to provide that person with the same enjoyment of a dwelling and to allow the person to make reasonable physical modifications of premises.

Licensed sales associates working at the sellers single agent brokerage firm

are legally bound to represent the seller

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 to act as a single agent for the seller. Both the buyer & seller have assets greater than $1 million, and each agrees to this form of representation. This situation describes a

designated sales associate

To claim innocent purchaser status under the hazardous substance statutes, a purchaser should

pay for and obtain an extensive environmental audit