Real Estate Practice Test

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

Let's try a little game without any resources. Let's say that you were in a transaction, but weren't acting as an agent to the transaction. Assuming you've met all of the other qualifications to make a claim from the fund, could you, as a licensee, make a claim against the fund if another licensee in the transaction caused you financial harm? Take a minute to think about it and then decide which action you would take by selecting the option below.

"Yes, make a claim. I wasn't acting as an agent!"

What is the maximum penalty for a first-degree misdemeanor?

$1,000 and one year in jail A first-degree misdemeanor, such as failing to provide accurate rental information for a fee, has a maximum penalty of $1,000 per violation and up to one year in jail.

What's the penalty for providing inaccurate or out-of-date rental lists to prospective tenants for a fee?

$1,000 or 1 year in prison and possible license suspension or revocation Advertising lists that are out of date or inaccurate is a first-degree misdemeanor and could result in fines up to $1,000, imprisonment for up to one year, and license suspension or revocation.

As Florida homeowners, John and Patricia can apply to homestead their principal residence, which could allow them to exempt a portion of the assessed value of their home from property taxes. If their home is valued at $300,000, how much of an exemption could they qualify for?

$50,000 Florida homeowners can exempt up to $50,000 for qualifying homesteads. This amount is deducted from the assessed value of the home when property taxes are calculated.

Owners of Florida homesteads can deduct _________of the assessed value for properties valued at more than $75,000.

$50,000 Florida homeowners can exempt up to $50,000 for qualifying homesteads. This amount is deducted from the assessed value of the home when property taxes are calculated.

Owners of Florida homesteads can deduct $50,000 of the assessed value for properties valued at more than __________.

$75,000 Florida homeowners can exempt up to $50,000 for qualifying homesteads valued at over $75,000. This amount is deducted from the assessed value of the home when property taxes are calculated.

Disclosure documents need to be retained for five years after the close of the transaction. If a transaction fails to close, records must retained for at least five years after the brokerage relationship began. The timeline for retaining documents may be extended by legal actions. Any time a record is used as evidence in a legal proceeding, the document must be retained for two years after the resolution of the legal action, even if that two years extends beyond the original requirement.

1. Five years 2. Began 3. Legal 4. Two years You've got it. When in doubt, remember than the latter date is the one to follow—either five years from payment or execution, or two years from use of the document as evidence—whichever occurs last. Also, just in case you're wondering, we don't actually think you're going to find yourself in many lawsuits. We just need to make sure you get all of the facts!

If you move, you'll need to update your mailing address and email address with the DBPR within _______ days or you may receive a citation and a $500 fine.

10 The DBPR requires notification within 10 days of any changes to your mailing or email address or your place of practice.

In certain cases, antitrust violators may be subject to court-ordered supervision. How long can this supervision last?

10 years Court-ordered supervision may last as long as 10 years if a brokerage is guilty of violating antitrust law.

You've just violated a Florida statute. What is the longest your license can be suspended?

10 years If your license is suspended, you must wait out any designated penalty period and maintain renewal requirements for a period up to 10 years. Revocation would be permanent.

The Florida real estate sales associate examination consists of which of the following?

100 multiple choice questions

You need to complete a total of ____ hours of continuing education prior to renewing your license.

In Florida, security deposits may be held by the landlord for up to______ days after a tenant vacates the property.

15 In Florida, landlords must return deposits within the 15 days unless making a claim against the deposit, in which case the landlord has 30 days to do so.

A real estate sales associate must be at least how old in Florida?

In what year was the Americans with Disabilities Act made law?

1990 Although some protection for citizens with disabilities was in place prior to this time, the ADA became law in 1990.

In Florida, how many days after a tenant delivers advance rental money must a landlord provide a written account of how it is being held?

30 Landlords have 30 days to provide written notice. This notice must state how advance rental money will be held.

Hunter Green is getting ready to move into a new apartment in a small town in Florida. The landlord has already informed Hunter that she'll require a security deposit and that she'll provide him with a notice of how it's being held within ______.

30 days In Florida, landlords must provide written notice to the tenant notifying the tenant how security deposits and advance rents are being held. Landlords have 30 days to provide this notice.

How long do prospective tenants have to request a refund after purchasing a rental list?

30 days Prospective tenants have 30 days to seek a 75% refund if they did not obtain a rental, and a full refund if the list was inaccurate or out of date.

Sales associates need to complete ___ hours of post-licensing education before the first renewal of their initial licenses.

What amount of education will you need to complete before your first sales associate license renewal?

45 hours of post-licensing education During the initial license period, sales associates are required to complete 45 hours of post-licensing education. Sales associates will need to complete 14 hours of continuing education every two-year renewal period after that.

To pass the Florida real estate sales associate examination, you'll need to score at least a ___________.

Corrine is selling an older home and decides to list the old furnace that was recently repaired as a "brand new furnace."

A Violation

Jessica put out a new advertisement for a property that has a small pond out front that claims, "Waterfront Property!" She adds a winking smiley face to the ad so people will get the humor.

A Violation

Nancy has been busy selling her listings and left a few primo listings online, even though they sold, to generate interest for her services.

A Violation

Sarah has just started her career as a solo agent and decides to try a new marketing campaign slogan: "Come let our team of hard-working agents find you the home of your dreams!"

A Violation

There is one opening on the commission. The current Commission has: 3 Brokers/1 Sales Associate/2 Consumers. Which individual is qualified to join?

A broker with at least five years of experience In this scenario, the committee needs a broker with at least five years of experience to meet the requirement.

Let's first start by defining a condop, then we'll get into the 80/20 rule. Which two of these describe a condop?

A building with both commercial and residential units A building with both condo and co-op property ownership

Check out how the Department of Justice defines price fixing in your resource, then select which of the following is a description of this antitrust violation.

A conspiracy between competitors to set prices

Jane is selling her property. She has hired Lionel as her agent. After the property is listed, Lionel brings his client, Kirk, to see the property, which Kirk is interested in purchasing. Who is Lionel in this scenario?

A dual agent Lionel initially represented Jane as a buyer's agent, but because he's now brought another client to the mix, he's working as a dual agent.

Which of these statements best represents what happens after a federal fair housing complaint is made?

A fair housing specialist will review the complaint. After an initial complaint is made, a fair housing specialist will review it to determine if a violation has occurred. If there's a potential violation, the specialist will help the consumer file an official complaint.

Four elements must exist for misrepresentation to occur. What are these elements?

A false statement about a material fact was made. The person making the false statement was aware of its falsity. The person who relied on the false information was harmed. Another person relied on the false information.

Ann, a licensee, received a complaint against her for something she doesn't believe she did. She decides to dispute the complaint. What else will she likely request?

A formal hearing Disputing the complaint and requesting a hearing would require a formal hearing.

Danny is a sales associate working for Jay, the owner/developer for both Shirley Homes and Laverne Estates. In order to sell real estate for both business entities, what must Danny have?

A group license A sales associate may have one license and register with one employing broker. If the owner/developer controls more than one business, a sales associate can sell real estate for the businesses under a group license.

Oddly enough, some actions that are now considered violations used to be quite common. An example of this is market allocation. See if you can select the correct definition of market allocation from this list.

A group of agents from a single firm agrees to not compete for business with agents from another firm.

Which of these statements about dual agency in Florida is true?

A licensee can't act as a fiduciary for both a buyer and a seller in a single transaction. That's right. As you probably noticed earlier in this lesson, Alison was able to provide limited representation to a buyer and a seller as a transaction broker. The "limited" part of her representation is that she is not acting as an agent or fiduciary.

Which of these actions is legal?

A man advertises for a roommate to share his two-bedroom apartment and specifies that he prefers female roommates. If the housing is an apartment or house with a shared common living area, a preference for sex may be advertised.

In which of these situations would a listing be most likely to terminate due to listing agreement expiration?

A market with high inventory and low demand Markets where inventory is high and buyers are few are likely to generate expired listings.

Which of these is something that is NOT requested in the initial fair housing complaint form?

A notarized copy of the complaint description The initial complaint form doesn't require a notarized copy. The online form gathers the basic information. A specialist may contact the complainant for further information.

Which of the following properties would qualify for a homestead exemption through the Florida Homestead Law?

A primary residence in the city on a quarter-acre lot. Only primary residences qualify for the exemption, and there are size restrictions. Rural homeowners can't claim a homestead exemption for properties larger than 160 acres. City dwellers are limited to a half acre or less.

The Antitrust Division of the U.S. Department of Justice prosecutes antitrust violations. What are the possible penalties it may impose on violators?

A prison sentence Restitution to victims Fines Monetary damages

The resource describes puffery and how it is different from misrepresentation. So, what is the difference?

A reasonable buyer would know puffery to be an exaggerated statement and not rely on it, whereas misrepresentation occurs when a reasonable buyer would rely on the statement, as it is coming from an expert in the field.

Florida examinees are notified of their examination results by ______?

A results report before they leave the test center

Real estate license candidates who score a 75 or better on the examination leave the test center with ______.

A results report showing that they have successfully completed the license examination

Real estate license candidates who score a 75 or better on the examination leave the test center with ____________.

A results report showing that they have successfully completed the license examination

Jerome, a real estate licensee, can only work under the supervision of a broker. This means that he is licensed as ______.

A sales associate

Jennifer is selling her property. She has hired Larry as her agent. After the property is listed, Jane brings her client, Andrew, to see the property, which Andrew is interested in purchasing. What is Larry's role in this scenario?

A seller's agent Larry represents Jennifer, the seller, making him the seller's agent.

A fair housing specialist is reviewing fair housing complaints. Which of these contains an action that is prohibited?

A transgender woman is evicted from a rental property because she makes the neighbors uncomfortable. Owner-occupied dwellings are exempt from fair housing laws. The appraiser and real estate professional aren't violating fair housing law—just good business practice.

This process has carried rock, sand, and soil and caused land build-up on Kim's land.

Accretion

Alluvion describes new deposits of land that are the result of what natural process?

Accretion Alluvion, or new deposits of land, is the result of the process of accretion.

Get any agreements with your broker regarding commissions in writing or email.

Action

What are some actions you can take to reduce the possibility of a commission conflict when changing brokerages? Read your brokerage policy manual for any rules.

Action

Once you register your employing broker with the DBPR, your license status will change to allow you to practice real estate. Select your new license status.

Active

What license status is needed to perform real estate services?

Active Florida real estate licenses are issued as voluntary inactive. When the licensee registers with the DBPR, identifying their employing broker, their status becomes active and then it's legal for the licensee to engage in real estate activities.

Is the item being used as personal property or real property - has it been adapted/customized?

Adaptation of the item

DRE imposed and include reprimands, admin. fines of up to $5,000, citations, license suspension or revocation, or additional education

Administrative

Absence policy

Administrative Policies

What does the Federal Trade Commission Act regulate?

Advertising The Federal Trade Commission Act includes rules to encourage truthful, non-deceptive, and fair advertising, and to require advertisers to have evidence to back up any claims made.

Donald owned a commercial property he wanted to sell, so he hired Marcus as his real estate agent. After the property sold, Donald was upset to learn that had he disposed of the property through a trade rather than through a sale, his tax position would have been more favorable. What two actions should Marcus have taken?

Advise Donald that the sale of the property might lead to unfavorable tax consequences. Suggest that Donald contact an attorney to discuss tax consequences of the transaction.

Does agency exist between you and Paul?

Agency Doesn't Exist

Does agency exist between you and Tom's grandmother?

Agency Doesn't Exist

You represent Tom Malley, a buyer who's purchasing a home from Paul Toole. Paul refuses to pay a buyer agent commission. Tom doesn't have the extra savings at this time to pay commission—everything is going toward his down payment. Fortunately, Tom's grandmother offers to pay your commission. In the relationships that follow, determine if agency exists. Does agency exist between you and Tom?

Agency Exists

Someone who acts on behalf of someone else

Agent

The licensee committed the act multiple times in a single transaction.

Aggravating circumstance

The licensee has committed the same violation in the past.

Aggravating circumstance

The licensee intentionally sought to commit the violation for profit, causing the client considerable harm in the process.

Aggravating circumstance

What must a broker do to open a branch office in another state?

Agree to cooperate with any investigations under Florida statute. A broker must agree to cooperate with any investigations under Florida statute before opening an out-of-state branch office.

What's involved with the antitrust violation called market allocation?

Agreeing with a competitor to divvy up a market All antitrust violations involve collusion. This one has competitors agreeing to segment the market, which can result in reduced competition (never a good thing for a consumer).

The common violations each have a factor in common. Which of the following must take place for a violation to occur?

Agreement

Farms, timberlands, ranches, orchards

Agricultural

Alison was thrilled to meet with Brent. In a matter of days, she had an agency agreement contract that Brent had signed, had searched for properties on the multiple listing service, and had several showings scheduled. Who's who in this scenario? Match the terms to the appropriate party. Agent

Alison

According to the NAR Code of Ethics, which statement most accurately describes a licensee's responsibility related to written offers on a listing?

All formal written offers the licensee receives must be presented to the owner until closing or execution of a lease unless the client waives this obligation in writing. Licensees should continue to present offers and counter-offers until the closing or execution of the lease. The owner/landlord can waive this obligation, but this should be done in writing.

What happens to the licensees under a broker if the broker has their license suspended or revoked?

All subordinate licensees would have their licenses placed on inactive status until they found a new broker employer. Because licensees must work under a licensed broker, if the broker's license is suspended or revoked, licensees can't practice real estate until their license is with a new broker.

At the conclusion of the contract after both parties have completed their obligations as agreed

Allowed

Elizabeth notices that Billy has listed a property for his seller client that's perfect for her buyer client. With permission from the buyer and seller, Billy and Elizabeth transition to transaction brokerage relationships, and facilitate the sale between the two parties.

Allowed

When a court order directs the disbursement of the funds

Allowed

Which of these actions would violate Audrey's obligations as a tenant? Select all that apply.

Allowing dirty dishes to pile up and grow mold. Tossing trash bags out the back door and letting them pile up rather than setting them out for pick up. Throwing a party that gets so wild that the bathroom sink is ripped out of the wall. Skipping a few months' rent because she's broke.

Cheryl marvels at this new deposit of land near the river, which is the result of accretion.

Alluvion

Which of the following actions is representative of an agent's due diligence and ethical behavior?

An agent notices a discrepancy between what the homeowner says and what the property shows, so he investigates. Investigating discrepancies related to material facts about a property is an act of due diligence, and shows good ethics on the agent's part.

Americo Realty and Heart of the Home Real Estate both charge the same commission rates. For this to be price fixing, what must occur?

An agreement between competing firms to standardize commission rates Agreement (or collusion) between two firms must exist for this to be an antitrust violation.

Which of the following individuals qualify for an exemption from the pre-licensing course requirement for sales associates?

An attorney who is an active member of the Florida Bar

Ensures good title to the property purchased

Angela at Security Title

Which option defines an acceptable fee according to the Real Estate Settlement Procedures Act?

Any flat fee based on actual services disclosed and performed for a client, regardless of the success of the transaction, with the settlement service provider. Any flat fee based on actual services disclosed and performed for a client, regardless of the success of the transaction with the settlement service provider, is acceptable according to RESPA.

What's considered a kickback according to the Real Estate Settlement Procedures Act?

Any item of value in return for referring business to a settlement service provider Any item of value in return for referring business to a settlement service provider is considered to be a kickback and is a violation of RESPA Section 8.

Donny is moving to another state for work and needs to sell his house. He's not sure how much it's worth.

Appraiser

A process agreed to in writing with a binding judgement by a neutral third party.

Arbitration

Roger is the owner/developer of the Seaside housing subdivision development. He employs Joan to help show and sell the units in his development. Joan receives a salary but no commission or extra compensation for these services. Which of the following is true?

As the owner/developer, Roger doesn't need a license, and his salaried employee, Joan, doesn't need a license, either, because she doesn't receive additional commission or compensation. Neither the owner/developer nor his salaried employee needs a real estate license to sell, buy, lease, or exchange the property of the owner/developer, as long as the employee doesn't receive a commission or compensation for real estate services.

You should ______ before you affiliate with a broker.

Ask lots of questions Ask lots of questions before you settle on which broker to work with

Answer and forward calls

Assistant

Place signs on property

Assistant

Milt's assistant is really cooking now and is taking a look at Milt's to-do list to see what he can tackle for him. Assign all the tasks that you legally can to the assistant and assign everything else to the licensee.

Assistant: Assemble closing documents Calculate a commission check Submit and update listings on the MLS Schedule appointments to see properties Call a mortgage broker for loan status report Milt: Negotiate a counter-offer Negotiation is something that falls squarely on your shoulders as a licensed real estate professional. Your fiduciary duties obligate you to act in your client's best interest during those negotiations.

When must an agent disclose an agency relationship to an unrepresented transaction party?

At first substantive contact Licensees must disclose agency relationships at the first substantive contact with an unrepresented party.

The 80/20 rule factors in heavily for condops. What are the three condop requirements related to the 80/20 rule?

At least 80% of gross income derived from tenant-shareholders At least 80% of total square footage is for residential facilities and use At least 90% of expenses are for the benefit of tenant-shareholders

In addition to defining the years of real estate experience the FREC members must have, Fla. St. §475.02 also specifies an age requirement for the commission. Which answer states that requirement?

At least one member of the commission must be age 60 or older.

Ken, Barbie, and Trixie owned a property as a joint tenancy. When Trixie moved out of state, she sold her interest to Skip. Two years later, Ken died. How is the interest in the property divided?

Barbie owns two-thirds and Skip owns one-third Joint tenancy includes the right of survivorship, so Ken's interest will pass to the other tenants. But because Skip bought in later than the others, he isn't considered a joint tenant. Ken's share will therefore pass entirely to Barbie.

Which of these statements about disclosing single agency is true?

Before a licensee may act as a fiduciary at a showing, the single agent notice must be fully explained and disclosed in writing. The notice must be discussed and explained in writing before the licensee acts as a fiduciary.

Administrative support

Benefit

Brand awareness and recognition

Benefit

Networking, social, and vacation coverage opportunities

Benefit

Office space and professional surroundings

Benefit

Protection for the family from being displaced from the homestead.

Benefit

Protects the property from forced sale to satisfy personal loans and credit card debt.

Benefit

Training

Benefit

Let's see if you can solve this puzzle. Billy and Elizabeth still work for the same brokerage. Billy is in a meeting with a buyer client in one room, while Elizabeth is in a meeting with the seller client in the next room. Elizabeth's client is selling the property that Billy's client is buying. For this to be legal, which of these statements must be true? Select all that apply.

Billy's client has assets of $1 million or more Elizabeth's client has assets of $1 million or more Billy and Elizabeth are acting as designated sales associates The property for sale is non-residential

Nancy encourages residents to sell now and avoid declining house values that are likely to accompany an influx of minorities.

Blockbusting

Conducts real estate brokerage activities

Both Broker and Sales Associate

Larry will be given the chance to explain his situation and bring supporting evidence/witnesses.

Both: Formal/informal hearing

Requires the licensee be given 14 days' notice.

Both: Formal/informal hearing

Marsha's business grew quickly. She set up a new location with a temporary trailer where she and her associates could conduct business out of the rain at one of their client's subdivision developments. They only used it when they had a client coming out and usually only if the weather got bad or it was too hot. The setup just had a table and some chairs for clients and a fridge with some bottled water in case anyone got thirsty. Only she or one of her associates staffed the place at any given time, but it had Internet and a few other things so they could keep work going while they were there. Did Marsha need to register her new location as a branch office or was it just a temporary shelter?

Branch office You got it! Now don't get caught up on the temporary nature of an office. If associates were regularly conducting business transactions there, the FREC might decide she needs to register the location as a branch office. However, she must have proper signage for both locations.

Brent

A person who performs real estate services for others for compensation

Broker

Can receive compensation directly from buyers or sellers

Broker

Consuela is a Florida real estate licensee, and she has three other licensees working under her supervision. What type of license does Consuela hold?

Broker

Responsible for the acts of all licensees who work under them

Broker

A licensed broker who chooses to work under the supervision of another licensed broker

Broker associate

Amy acts like a sales associate and is supervised by a broker, but she holds her broker's license. What is her title?

Broker associate

Alison, an agent with XYZ Agency, is assisting Ryan, the listing agent from RST Brokerage, with marketing a property on 7th Street.

Broker's agent

Where point of contact information appears on your website, what else must appear?

Broker's name and phone number The DBPR and FREC requires your broker's firm name and phone number be on every page of your website that contains point of contact information.

Anastasia wants to get her real estate license and bring together buyers and sellers. This means she will be involved in which of the following?

Brokerage

Which of the following specifies the forms that must be used to provide notice of single agency or non-representation?

Brokerage Relationship Disclosure Act The forms for providing disclosure are found in the Brokerage Relationship Disclosure Act, found in §475.278.

You've started creating your own advertising. Where can you look for reliable information?

Brokerage policy manual In addition to Florida Administrative code 61J2-10.025, and the NAR Code of Ethics, your brokerage's policy manual is a good place to look.

"Separate but equal" is not really equal. Segregation in public schools is unconstitutional.

Brown vs. Board of Education

Rules that ban certain races from living in certain areas are unconstitutional.

Buchanan vs. Warley

Which of the following is required to register a brokerage with the DBPR?

Business name and at least one licensed active broker A business name and at least one licensed broker is required; names and address are only required for non-licensed general partners, officers, and directors.

Sale, purchase, or lease of businesses

Businesses

How may a sales associate receive a commission check directly?

By obtaining written authorization from their broker for each transaction If a licensee obtains a written authorization from their broker, then their split of the commission may be received directly. This written authorization must be obtained for each transaction.

Which federal act protects consumers from unwanted email solicitations?

CAN-SPAM Act of 2003 The CAN-SPAM Act of 2003 protects consumers against unwanted email solicitations.

Stefan is an unlicensed assistant for the Ace Team at Acme Realty in Florida. Which of these activities can he perform?

Calculate commissions for team members. Unlicensed assistants can't perform any activities that require a real estate license. Prohibited activities include hosting open houses, showing homes, explaining listing information to a consumer, and soliciting business, among others.

Callie has sublet an apartment in Florida for the past four months this year and plans to continue to reside in Florida and apply for a Florida real estate license. Which of the following applies?

Callie is a resident of Florida and can apply for a Florida real estate license.

Researching schools, crime rates, and other statistics about several neighborhoods

Can perform

Scheduling showings for properties

Can perform

Searching the Internet and driving the streets to locate properties for sale

Can perform

Listing his friend's condo for sale

Can't perform

Negotiating the exchange of real estate

Can't perform

Which of the following contains a content overview and outline of the real estate sales associate examination?

Candidate information booklet

A seller asks that the home not be shown to any same-sex couples.

Cannot Obey

A seller going through a divorce is handling the sale of the former family home and says his soon-to-be ex-partner (whose name is on the title) doesn't need to be involved in the process.

Cannot Obey

Provides capital to finance the project

Carson, an investor

What legal doctrine allows Barney to claim that the buyer needs to beware of potential problems with a car?

Caveat Emption

The license exists but can't be used until the DBPR is notified (if a sales associate changes employers or a broker changes her address).

Cease to be in force

So how bad can violating the 'little FTC act" be? After all, it's just a little bitty act. Select the penalties that could be incurred for violating the FDUTPA.

Cease-and-desist orders Civil penalties of up to $10,000 Reimbursement of damages

An information sheet developed by the U.S. Department of Justice provides good information about antitrust violations, what to look for, and how to report violations. Speaking of which, which entity should you report the violation to if you suspect a price fixing situation?

Citizen Complaint Center of the Antitrust Division

Resolution of a dispute

Civil

Restitution of funds or required resolution of a dispute imposed by a court

Civil

Return of a paid commission

Civil

Which act was the first to prohibit any exceptions for discrimination based on race or color?

Civil Rights Act of 1866 Unique among anti-discrimination law, the Civil Rights Act of 1866 recognized all U.S.-born persons as citizens and allowed no exceptions for discrimination based on race or color.

Title VIII of which law prohibits discrimination in the sale, rental, and financing of housing?

Civil Rights Act of 1968 Title VIII of the Civil Rights Act of 1968 is also referred to as the Fair Housing Act of 1968, prohibits discrimination in the sale, rental, or financing of housing based on race, color, national origin, and religion.

Someone who has agency representation with the real estate salesperson or broker

Client

You have a listing agreement with Sam, which makes him your ______.

Client An agency agreement exists, which makes Sam the client and involves a higher level of duties than he owes to a customer.

Officers typically desire to remain a small, tight-knit group

Stockholders, directors and officers of the company are typically the same people

Transfer of stock is more complicated, given the ownership nature

Own shares of the corporation

Co-oip

Often prohibits subletting

Co-op

Personal property ownership

Co-op

Read the scenario that follows and then determine if the buyer is describing condo or co-op ownership. For DeeDee, finding the unit was actually the easy part. Who knew getting into this building would be such a process? Putting together a board package, going through an interview, providing documents, another interview ... DeeDee was certain the board would ask for her firstborn child, as well, but she decided it was all worth it when she received her proprietary lease and keys at closing.

Co-op

This one may be difficult to resell because applicants need to obtain board approval.

Co-op

This one tends to have higher monthly maintenance fees because taxes, fees, and mortgage payments are included.

Co-op

Our broker, Cara, has partnered up with Ginger and is now a co-owner of Ginger's insurance company. She cannot require her clients to use the company and must disclose the affiliation between her and the company to them. She can be compensated based on the return earned from owning the business, but not for referring her clients to use their insurance company.

Co-owner Cannot require Must disclose the affiliation Return earned Referring her clients

Property with ownership by more than one person is known as ______.

Co-ownership Property with ownership by more than one person is known as co-ownership.

She requires a $1,000 deposit from all black South African tenants, but only $500 from all white South African tenants.

Color

What protected class is involved when there is discrimination due to a person being lighter-skinned or darker-skinned?

Color Different skin colors exist, even within the same racial group, and some people may have been treated unfairly because of their skin color.

Income-producing properties, such as retail stores, office buildings, shopping centers, and residential property with more than four units

Commercial

Phoebe is a broker who specializes in high-rise apartment buildings in metro areas. What types of properties are these?

Commercial

In several states, married couples usually hold property as ______.

Community property This is community property. It's similar to joint tenancy in that it has the right of survivorship, and includes unity of time, title, interest, and possession, but with marriage added.

Members of a federally protected class who believe they've been victims of housing discrimination can file a complaint directly on HUD's website. Which four of these statements about filing a complaint are true?

Complaints must be filed within one year from the time the suspected discrimination occurred. The complaint form asks the consumer to describe the alleged discrimination. Complaints must specify the victim's protected class status, who perpetrated the discrimination, and exactly where the discrimination occurred. A fair housing specialist is the first to review a victim's claim.

The sales associate licensee is required to ______ before the initial sales associate license expires.

Complete at least 45 hours of coursework of FREC-approved post-licensing education

Cara has been working as a sales associate in Tallahassee for the last two years and has decided she wants to become a broker. To take the real estate broker examination, what must she do first?

Complete the 72-hour approved pre-licensing course for a broker license.

Financing is similar to other real property.

Condo

Mortgage recording tax applies to purchases.

Condo

Often permits subletting (with some restrictions)

Condo

Own airspace within unit and an undivided share of common areas

Condo

Ownership is very easy—you pay, you're in.

Condo

Real property ownership

Condo

Tom finally owns his slice of the American Dream. Technically, he owns the airspace in the unit and shares the common areas with other owners, but he owns it just like any other piece of real property. Sure, he paid a little more than other properties on the market, but the monthly maintenance fees are reasonable and worth every penny if it means never shoveling a sidewalk. Plus, his best friend is already asking to sublet it if Tom is able to realize another one of his dreams: spending a year in Europe.

Condo

May make excellent investment properties

Condominium

Own the individual unit

Condominium

Real property ownership

Condominium

Keira's former buyer client was a strong believer in numerology and refused to look at any houses unless the address added to 3

Confidential

Keira's seller is flexible in their price

Confidential

Keira's seller is moving because he doesn't like his neighbors

Confidential

Although an agency relationship doesn't live on forever, there are some fiduciary duties that continue beyond the relationship. Which two of these duties live on after the agency relationship is over?

Confidentiality Accounting Remember, the duty to account for all money and property ends once all money and property have been accounted for. The duty of confidentiality never ends.

Ridicule or threat of violence

Consequence for doing the right thing

Lawsuits, damages, fines, attorney fees

Consequence for violating law

License suspension or revocation

Consequence for violating law

William is a real estate licensee who's preparing a sale agreement that will include an unusual circumstance. What's the best course of action?

Consult an attorney. It's possible that William could still use an existing form, but it won't cover the unusual circumstance. William should not write an addendum that covers it. His best bet is to consult an attorney.

Someone who uses or purchases a product or service

Consumer

Let's see if we can get a step closer to that key. This scenario digs more into other sections of the Code of Ethics. Meet George, who is a real estate salesperson who is fairly new to the industry. In an attempt to build his book of business, he drove through neighborhoods looking for homes for sale. After identifying a few, doing some research, and preparing comparative market analyses (CMAs), he contacted several sellers. He told the sellers that he appraised their property at a higher value than their current listing agent. He offered the sellers a discount on the commission if they terminated their listing with their current agent and signed a contract with him. What two things did George do wrong?

Contacted sellers for the purpose of asking them to break their contracts with their agents Told sellers that he appraised their property

This individual is the first-born child of Joe and Sarah, who will receive the life estate upon their deaths

Contingent remainderman

You encourage your friend to break his existing agency agreement and sign with you.

Contractual interference

"I control the use of my property."

Control

Applicants for a Florida real estate license are required to report if they have ever been ______ a crime.

Convicted or found guilty of

Due to stringent rules about ownership and subletting, may not be an option for real estate investors

Cooperative

Own shares of the corporation

Cooperative

Personal property ownership

Cooperative

An entity where elected officers govern the affairs of the company, company assumes liability and offers a legal shield to the owners.

Corporation

Which of the following is true about corporations?

Corporations are separate entities. Corporations are considered separate entities for legal purposes.

Commercial facilities

Covered

Places of public accommodation

Covered

Private clubs

Covered

Residential buildings

Covered

State and local government facilities

Covered

Damages, fines up to $5,000, or jail time up to five years

Criminal

Fine up to $5,000

Criminal

Jail sentence of five years

Criminal

Which penalty type has imprisonment as a potential outcome?

Criminal Criminal penalties are the only type that may include imprisonment.

Robert was found guilty of violating real estate law. A prison sentence was imposed on him by ___________.

Criminal court Only criminal courts may impose prison sentences.

The National Fair Housing Alliance's recommendations reveal what it thinks is not working well in fair housing. Which of these statements would you say accurately reflect the viewpoint of the National Fair Housing Alliance? Your new resource provides a recap of its recommendations. Check all answers that apply.

Current oversight of the Fair Housing Act is lacking. Programs that are designed to address the mortgage and financial crisis are not always racially fair. Consumers need more education about how to identify and report discrimination. A regional approach to fair housing planning is better than a state-by-state approach. Corporations that support workplace diversity can be valuable partners in promoting neighborhood diversity.

Someone who is working with a real estate licensee but who's not represented by the licensee

Customer

Which of these is an example of commingling?

Cynthia deposited her client's earnest money check into the firm's operating account. Commingling occurs when funds in or intended for a trust account are intermixed with operating or personal funds.

Charged with licensing and regulating businesses and professionals in Florida

DBPR

Which one of the following can issue a cease-and-desist order to an unlicensed person performing real estate services?

DBPR

Provides all services required to administer the law, such as clerical and ministerial duties

DRE

Which one of these keeps records of all real estate licensees?

DRE

Which of these duties applies to all three relationships?

Deal honestly and fairly Account for all funds Disclose material facts

Omits material information or contains statements that are important and are likely to mislead consumers acting reasonably

Deceptive ad

Melissa is throwing a client appreciation luncheon at a local park. Out of appreciation for the business she has given them over the years, a title company offers to pay for the catering. So, is it a kickback?

Definitely a kickback

All right, this is our final scenario, so take your time. Gene charges his real estate clients a $250 upfront administrative fee (payable to and through his broker). So, is it a kickback?

Definitely a kickback Nope, not a kickback Surprise! It depends. While courts have said this does not violate RESPA, as it does not involve the splitting of fees, HUD has disagreed with court findings. HUD says if the fee is for no, nominal, or duplicative work, or is excessive, then the fee violates RESPA. To satisfy HUD, Gene would have to show that this administrative fee was for services that were actual, necessary, and distinct from other services or goods he already provided. And he would also have to demonstrate that the fee was in keeping with the value of those goods or services. HUD does not prohibit administrative fees, but be prepared to defend their purpose and the reasonableness of the fee. Click both to move forward.

Which of these is NOT one of the ways in which an agency relationship may be terminated without penalty for either the agent or the principal?

Delaney signed a buyer's representation agreement with Martha. After Delaney made an offer on a house, she changed her mind and terminated the agency agreement. Unless Martha agrees to terminate the agency agreement with Delaney, Delaney may still owe Martha the agreed-upon compensation for breaching this agreement.

Kip is the seller's agent and just finished wrapping up a sale on a rather impressive old home. He is excited to receive his commission check. The closing agent was new and inadvertently made the check out to him, and not his broker, but Kip has already paid off his desk fee and now receives 100% of his commission checks. What should he do?

Deliver the commission check to his broker.

Charlene wants to build a subdivision, but needs someone to clear the land, install utilities, and build the homes.

Developer

A buyer is the seller's agent's brother.

Disclose

Guilty verdict for a felony

Disclose

Plea of nolo contendere

Disclose

Probation for a misdemeanor

Disclose

The property has lead paint.

Disclose

The roof leaks.

Disclose

Which of the duties owed in any authorized relationship is missing from this string? Account for all funds, deal honestly and fairly, and ______.

Disclose all material facts The three duties owed by licensees to all customers and clients spell out DAD. They are: Deal honestly and fairly, Account for all funds, and Disclose material facts.

Daniel has several properties listed around town. He receives a call from a prospective buyer who is very interested in one of the properties and wants to schedule a showing. What should Daniel do?

Disclose his agency relationship with the seller to the prospective buyer. Daniel must disclose his agency relationship with the seller at the first substantive contact with a buyer. This is a substantive contact.

What does a broker have to do in order to maintain their right to place a lien on residential property?

Disclose the right in the brokerage agreement If a broker fails to disclose their right they must file a claim in court and await a judgement before they may place a lien on a property.

Informing parties of material facts related to a transaction describes the duty of ______.

Disclosure Disclosure is making sure parties (clients, customers, and others) know about facts that are material to a transaction.

If you fail to notify your client of a conflict of interest, in addition to the duty of loyalty, what other duty have you breached?

Disclosure This is a clear duty of the failure to disclose material facts.

Keira represents the sellers of a property, and her brother represents interested buyers. Her brother brings an offer from his buyers the same day that other buyers have submitted a slightly better offer. Keira encourages the sellers to accept the lesser offer because those buyers seem like a "better fit" for the home.

Disloyal

"I can sell, mortgage, or give away my property."

Disposition

Basic property rights include the rights of possession, control, exclusion, enjoyment, and ______.

Disposition Disposition is the right to sell or convey property.

John and Tara have lived in their home for 23 years and are excited to move to Florida for retirement. As homeowners, which right allows them to sell their home?

Disposition This is the right of disposition.

Which option would a licensee pick on the election of rights form if the licensee wanted a formal hearing?

Dispute the complaint and request a hearing Disputing the complaint and requesting a hearing would require a formal hearing.

A house was built in 1917. You provide a lead-based paint disclosure to all prospective buyers.

A seller discloses her house is on the public sewer line, but you know other houses in this area are septic. You investigate the seller's claim.

Crunch numbers for your clients.

Explain clauses to your clients.

Notify buyers that a sale will likely prompt an increase in property taxes.

Provide a qualified list of professionals to your clients.

Recommend buyers obtain professional home inspections.

Use existing forms that an attorney has reviewed.

Evan has his home and cell number on the Do Not Call Registry. He received an unwanted solicitation call from a new real estate licensee in the city. He told the licensee his number is on the Do Not Call Registry and that he does not wish to do business with the licensee. A few days later, he got another unwanted call from the licensee. What federal act is the licensee possibly violating?

Do Not Call Implementation Act of 2003 The Do Not Call Implementation Act of 2003 makes phone solicitation illegal to numbers on the Do Not Call Registry unless a business relationship or permission exists. Neither of these exists here, so the licensee may be committing a violation.

Choose the appropriate text for each blank to complete the story. There are several acts in place to protect consumers against unwanted solicitation. The Do Not Call Implementation Act of 2003 makes phone solicitation illegal to numbers on the Do Not Call Registry unless a prior business relationship or permission exists. The CAN-SPAM of 2003 protects consumers against unwanted email solicitations, while the Junk Fax Prevention Act of 2005 provides protection related to facsimile.

Do Not Call Implementation Act of 2003 Do Not Call Registry CAN-SPAM of 2003 Junk Fax Prevention Act of 2005

Half of the residents are older than 50, and there are no children.

Doesn't Meet Exemption Requirements

A house was built in 1917. You provide a lead-based paint disclosure form only when requested.

Don't

A house you have listed is on the market because the previous owner recently passed away. You disclose that she had HIV.

Don't

Create your own real estate forms.

Don't

Interpret legal consequences of specific actions.

Don't

Predict the amount that property taxes may increase due to a sale.

Don't

Recommend a specific professional.

Don't

Recommend specific investments or forecast profits/losses.

Don't

Serve as a home inspector.

Don't

The seller is moving due to a divorce.

Don't Disclose

The seller is willing to accept $15,000 under list price.

Don't Disclose

The seller lost her job and soon won't be able to afford house payments.

Don't Disclose

Personal bankruptcy

Don't need to disclose

Speeding tickets

Don't need to disclose

Kathryn and Donald have homesteaded their primary residence in Florida. The homestead is only titled in Kathryn's name. Under the Florida Homestead Law, if Kathryn dies, what happens to the property?

Donald receives a life estate to the property. According to the Florida Homestead Law, Donald would receive a life estate to the property and any children would receive a remainder estate. This is an important protection for families.

Splitting your commission with the broker

Drawback

Which of these actions did she do wrong?

Eileen deposited the check into her own account. Eileen waited too long to deliver the check to her broker.

A buyer client is preparing an offer on a property. He wants to make sure his offer stands out above all others and is accepted, so he discusses waiving the inspection contingency. What should the agent do?

Encourage the buyer to get an inspection, and if he still wants to waive it, put it in writing that you advised against waiving the inspection and have him sign. Always recommend buyers get an inspection. This is part of their due diligence, and advocating for it is part of yours. If a buyer wants to waive the inspection, get his waiver in writing.

When must Karen, a sales associate, deliver the escrow funds to her broker if she receives the funds on a Friday?

End of day the following Monday Because weekends and holidays aren't recognized as business days, Karen would have until the end of day Monday to deliver the check to her broker.

"I have the right to use and enjoy my property."

Enjoyment

Which of the following is included with real property rights?

Enjoyment Real property rights do not include the right to commit hazardous acts, destroy the property, or encroach on another property. It does include the right to enjoy, possess, control, exclude, and dispose of the property.

Manages the apartment complex for Alice

Enrique, property manager

As a stipulation of the ______, lenders must offer reasons when rejecting loan applications and must respond to all applications within 30 days.

Equal Credit Opportunity Act of 1974 The Equal Credit Opportunity Act of 1974 requires lenders to give businesses and consumers equal access to credit.

The water has worn away the land near Alycea's seaside cottage.

Erosion

How is the broker's commission usually paid out?

Escrow creates checks for both agents' brokerages, which in turn cut checks to the agents for their commission split. Escrow pays the brokerages based on the broker demands provided to the closing officer. Each brokerage compensates its licensees based on their commission splits.

Issued by the FREC to determine disbursement of funds.

Escrow disbursement order

Non-lawful possession after the expiration of a lease is called ______.

Estate at sufferance Estate at sufferance is non-lawful possession after the expiration of a lease. The owner "suffers" the illegal tenant's continued presence on the property.

_____ is an estate for an unknown period of time in which either party may terminate the lease by giving notice to the other.

Estate at will An estate at will is an estate for an unknown period of time in which either party may terminate the lease by giving notice to the other.

Which of the following is a leasehold estate for an unknown period of time, with either party permitted to terminate the lease by giving notice to the other?

Estate at will An estate at will is an estate for an unknown period of time, with either party permitted to terminate the lease by giving notice to the other.

You sign a lease for a period of 12 months.

Estate for years

Papa conveyed 20 acres of land to Teddy Jr. for life. Upon Teddy Jr.'s death, the land will go back to Papa and will be an _____________.

Estate in reversion

Sergei has just purchased his first house. He owns it, and no one else does! No one tells him what he can do with the house—only he decides. No one shares his house with him or holds any interest in the house (except his lender, of course). What ownership type describes Sergei's situation?

Estate in severalty

After reviewing Terry's document, Jill can identify the five condominium documents. Let's see if you can, too.

Estimated operating budget Articles of incorporation Declaration Bylaws FAQs

The licensee listing a property cooperates with buyer's agents.

Ethical

The licensee treats all parties honestly, even customers.

Ethical

You're attending a speech on the societal impact of fair housing and the speaker, who is an advocate for diversity in communities, begins the speech by asking who benefits from enforcement of fair housing law. Which of these is likely the answer the speaker is looking for?

Everyone, because diverse communities are stronger communities Diversity in communities creates stronger communities, which benefits everyone.

Content overview

Examination

"I can keep others from trespassing on my property."

Exclusion

Sarah owns her own home. As part of her basic property rights, she has the right to decide who may or may not access the property. Which right is this?

Exclusion The right of exclusion allows Sarah to decide who may or may not access her property.

Power to regulate and enforce license law

Executive

A certified real estate appraiser conducting appraisal services

Exempt

A hotel clerk renting a hotel room to a customer

Exempt

A person holding (and acting as) a duly executed power of attorney for a real property owner

Exempt

A person selling their own property

Exempt

An attorney providing legal services for a client

Exempt

Individual selling a cemetery lot

Exempt

Owners of time-shares for their own use offering their time-share periods for resale

Exempt

Salaried employees of an owner/developer, as long as they do not receive a commission

Exempt

A condominium can be a property made up of one or more units.

Co-op buyers receive the title to their unit.

Condominium ownership is ownership in personal property, not real property.

If one spouse dies, that spouse's share is passed according to the will.

If the spouses divorce, they must sell the property.

One spouse may pledge the property without permission from the other spouse.

Ownership is similar to other real property ownership.

When you close on a condo, a title search, deed transfer, and recordation are not necessary.

Which agency enforces fair housing law?

FHEO The Office of Fair Housing and Equal Opportunity provides administration and enforcement of federal fair housing laws.

Protects the general public by regulating real estate brokers, firms, sales associates, and real estate schools and instructors

FREC

Which of the following is an example of industrial real estate?

Factory

You let your neighbor divulge confidential information about her interest in your listing (she doesn't know you listed it!).

Failure to disclose

The National ______ Housing Alliance has made recommendations for promoting diverse neighborhoods.

Fair Improving diversity in neighborhoods requires fair housing laws and practices.

Individuals who experience housing discrimination are provided the opportunity to file a complaint based on the provisions of which act?

Fair Housing Act of 1968 The Office of Fair Housing and Equal Opportunity, which handles complaints, was created by the federal Fair Housing Act of 1968.

Which act provides consumers with remedies if they become victims of discrimination in the sale, rental, or financing of housing?

Fair Housing Amendments Act of 1988 In 1988, the Fair Housing Amendments Act provided consumers with certain remedies for discrimination, which added teeth to existing laws.

A Request for Remediation form in case the licensee wishes to seek damages from the complainant.

False

A broker has 90 days to initiate a settlement procedure to determine fund disbursement after receiving a conflicting demand.

False

A broker wants all sales associates and broker associates to hold titled ownership positions in the brokerage corporation.

False

A buyer may enter into a dual agency relationship with a licensee, then later change it to a single agency relationship.

False

A cease-and-desist penalty means you must file a wrongful act of deception notice in the local paper.

False

A license applicant may only have their license denied if they lack the qualifications for licensure.

False

A license may be suspended permanently.

False

A licensee's license may remain active while they are in the process of reimbursing the recovery fund.

False

A real estate professional may accept compensation of less than $150 for referring business to an SSP without the compensation being considered a kickback.

False

A request for Larry to mail back all license materials and assessed fees.

False

All deposits or other escrows accepted by a broker must be retained by the broker in a non-interest bearing account.

False

All escrow records must be retained for a minimum of seven years.

False

All panel members must be current commissioners.

False

All panel members must be real estate licensees.

False

Audrey has some great questions about her security deposit, including the kind of account where it will be held, and how and when she can expect to get it back. Read each statement about how security deposits are handled and determine if it is true or false. Ruby must place the security deposit in a non-interest-bearing account.

False

Brokers may not use a credit union or savings association to maintain an escrow account

False

Dmitri is considered a non-resident of Florida, but can follow the rules for licensees from Illinois under a mutual recognition agreement.

False

Eric could go to jail for up to a year or pay a fine of up to $1,000

False

Eric could have his license suspend or revoked

False

Eric's day just took a turn for the worse! A prospective tenant has come back to him within the 30-day deadline seeking a refund because she didn't find anything that she liked on the list. Eric felt badly, but he knew the list was good because he had just checked out those listings the day before he provided them. Select which options are true regarding Eric's responsibility in this case. Eric has to refund the entire fee he collected from the prospective tenant

False

If you receive a cease-and desist order, you must stop running the deceptive ad within 90 days.

False

In the request for designated sales associate representation, the buyer or seller writes in the name of the sales associate who is being requested.

False

It's okay for an agent to negotiate on behalf of a buyer customer who's at the seller client's open house.

False

Joe conducts brokerage activities; therefore, he is a real estate broker.

False

Kristy can apply for a Florida real estate license, but she is exempt from the pre-licensing education requirement if she applies with certification of license history.

False

Kristy needs to move to Florida in order to apply for a Florida real estate license.

False

LLCs The resource introduced the concept of an LLC as a type of middle ground between partnerships and corporations. Identify whether these statements concerning LLCs are true or false. Is a corporate entity.

False

Larry has to stop practicing real estate until a final order is issued/effective.

False

More than two FREC commissioners may attend the probable cause proceedings once they're started.

False

Must be for services actually used by the referred client

False

Only licensed brokers can specialize in commercial real estate.

False

Owners have personal liability for the business.

False

Real estate appraisal is not covered in the sales association licensing examination.

False

Regardless of the hearing type, the final order is made by the FREC members who were not on the probable cause panel. What other four items are true of a final order? It's irrevocable once issued.

False

Require everyone to get their broker license before they join the firm.

False

Revocation is only possible for a select few major violations.

False

Ruby can inspect the premises at any time to make sure they're kept clean or to leave deliveries for Audrey.

False

Ruby must make repairs as demanded by the tenant.

False

Ruby must post a surety bond of at least $50,000 for all security deposits or advance rents.

False

Sam is a sales associate who has completed 14 hours of continuing education before his first renewal is due. He is all set to renew his license.

False

Sara has completed her CE requirements and submitted her application for renewal within 30 days after her license expiration date. She is all set to renew her license.

False

She should never have referred them to her friend, Ginger.

False

The broker may arrange for licensees to receive commission checks directly by providing closing agents with a general release authorization that encompasses every transaction.

False

The case took place in the 1890s.

False

The designated sales associate method of representation may only be used when the buyer and seller's combined assets are at least $1 million.

False

There are 200 total questions on the exam.

False

True or false, the no-brokerage relationship notice states that the licensee shall not owe any duties to a buyer or seller in a non-representation agreement?

False

Usually, the seller's agent gives the commission check to their broker, who then places it in the office escrow account and disburses the commission owed to the broker of the buyer's agent.

False

When consumers wish to sell their home on their own, they must first obtain a real estate license.

False

You can perform additional duties for customers, like negotiating on their behalf or helping them decide how much to offer, as long as the other party in the transaction isn't your client.

False

Which protected class is protected against discriminatory practices, such as against placing limitations on the number or age of children in the residence?

Familial status Familial status refers to the presence of children under the age of 18 who are members of the household through birth, adoption, or legal placement.

Jericho and Cindy, an unmarried couple, have three children, ages 3, 5, and 12. A seller's broker refuses to show them a house in a neighborhood where residents tend to be older, and no one else has children. Which protected class status applies?

Familial status Familial status, included in the federally protected classes, includes discrimination when someone lives with (or is about to live with, in the case of pregnancy and pending adoption) a child under the age of 18 and is treated differently from others.

Which act created the Office of Fair Housing and Equal Opportunity under the Department of Housing and Urban Development?

Federal Fair Housing Act of 1968 The federal Fair Housing Act of 1968 created the Office of Fair Housing and Equal Opportunity under the Department of Housing and Urban Development. HUD enforces Title II related to public housing, housing assistance, and housing referrals.

Someone who is in a position of trust and loyalty

Fiduciary

Account for all funds

Fiduciary Duty

Confidentiality

Fiduciary Duty

Disclosure of material facts

Fiduciary Duty

Full disclosure

Fiduciary Duty

Loyalty

Fiduciary Duty

Obedience

Fiduciary Duty

Formal or informal hearing conducted

Fifth step

Someone who is not an agent and only introduces the buyer and seller

Finder

Delilah files a uniform complaint form

First step

Now that you know how to look up laws by number, you'll find your way through the rules in chapter 61J2 of the Florida administrative code by looking up the rules listed here. Can you find the information needed to complete these matches? (Hint: Let the section numbers [after the § or ss.] be your guide.) License fees and examination fees

Fla. Code §61J2-1.011

Fla. Code §61J2-3.008

Fla. Code §61J2-6.006

ind the statutes listed and match them up with their titles. (Hint: Start by looking up chapter 475 under title XXXII. Identify the correct title for each of the statutes listed.) Florida Real Estate Commission

Fla. St. §475.02

Find the statutes listed and match them up with their titles. (Hint: Start by looking up chapter 475 under title XXXII. Identify the correct title for each of the statutes listed.) Examinations

Fla. St. §475.175

ind the statutes listed and match them up with their titles. (Hint: Start by looking up chapter 475 under title XXXII. Identify the correct title for each of the statutes listed.) Rules; violations

Fla. St. §475.486

Which state act prohibits unfair or deceptive business acts?

Florida Deceptive and Unfair Trade Practices Act The Florida Deceptive and Unfair Trade Practices Act makes unfair or deceptive business acts or practices unlawful.

One of the benefits of the ______ is protection of the family in the event of the death of a married person.

Florida Homestead Law This is a benefit of the Florida Homestead Law, which states that the surviving spouse and any children inherit the homestead.

Which entity is responsible for regulating professional practices, such as recordkeeping and the manner in which deposits are made in escrow?

Florida Real Estate Commission The FREC regulates administrative matters for the real estate profession.

Florida administrative code codifies the rules of state agencies, such as the ______, which establishes the rules for real estate licensure.

Florida Real Estate Commission The Florida Real Estate Commission (FREC) has been granted authority by the state legislature to establish rules for real estate licensure.

Can you sort out where you would find the items listed here? Just remember that statutes establish the principles for the practice of real estate and the FREC rules detail how it is to be done. Disciplinary guidelines

Florida administrative code

Florida statutes

Bethenney is Jason's agent. Jason made an offer on a property and wrote an earnest money check, which he gave to Bethenney. What should Bethenney do with the check?

Follow brokerage procedure for handling monies entrusted to agents by clients. Licensees are accountable for any monies or property placed in their trust. Proper procedures must be followed when clients hand their agent a check.

Katy's home that was listed for sale is destroyed by fire. Under which of these methods will her listing agreement terminate?

Force of law The listing agreement in this situation will terminate based on force of law (destruction of property).

Which option is defined as the type of hearing that is held in front of an administrative law judge to oversee a disputed complaint?

Formal A formal hearing is overseen by an administrative law judge with the authority to swear in witnesses, hear testimony, and recommend penalties for a disputed claim.

"I want to dispute this ridiculous charge! All I was trying to do was help her. I've done nothing wrong."

Formal hearing

Guilt or innocence is determined, and the FREC is sent a recommended order.

Formal hearing

May dispute any of the facts of the complaint

Formal hearing

Records and witnesses may be issued subpoenas to appear.

Formal hearing

Uses a law judge employed by Department of Administrative Hearings (DOAH)

Formal hearing

Witnesses will be sworn in by an administrative law judge.

Formal hearing

Licensed for at least five years before the appointment

Four active brokers

The FREC issues formal complaint

Fourth step

Peter is a tenant in a single-family home owned by Cheyenne. What type of interest does Cheyenne have in the property?

Freehold Property owners have a freehold interest in the property.

You purchased a Colonial home eight years ago, using a traditional 30-year fixed conventional loan.

Freehold Estate

Jenner purchased his first home, to which he'll have access forever, as far as he knows. Jenner owns a(n) ______.

Freehold estate A freehold estate implies ownership for an unlimited amount of time—the "free" refers to the ownership agreement being free of an end date.

Easily transferable through stock

General

Elected officers govern the affairs of the company, while the designated licensed broker is directly responsible for the real estate transactions and both are responsible to a large number of stockholders

General

Partnerships are a common legal structure and may consist of general and limited partners. Sort these facts about general and limited partners. Share full personal liability for debts and obligations

General

System of centralized management

General

Which type of partner shares full personal liability for the partnership's debts and obligations?

General General partners share full personal liability for the partnership's debts and obligations to the extent of their ownership.

Property manager

General agent

Property managers generally serve in this role.

General agent

Some of these statements are true of general agents, and the others are true of special agents. Identify each as either a general or a special agent. Provides the responsibility of handling all dealings for a specific piece of client property.

General agent

Who is able to apply for multiple licensure?

George is a licensed broker at his own small backwoods real estate firm. Only brokers are allowed to apply for multiple licensure, so George is the only one who can apply.

Constructs the apartment complex

George, a developer

You are making a listing presentation when you learn that a competitor you've run into before will also be presenting to the sellers later that day. You tell the sellers you hope they will decide to work with you.

Good faith

You represent a seller and do not tell prospective buyers that the house is haunted and was the site of a suicide.

Good faith

You tell your client you cannot obey this order

Good faith

Issued to a sales associate or broker associate who works for an owner/developer of more than one business entity

Group license

They're guilty. What do we need to prove? It's all a matter of per se. What does per se mean? Review your resource if you need to.

Guilt is established on the face of the circumstances.

The Office of Fair Housing and Equal Opportunity is a part of which federal department?

HUD The Office of Fair Housing and Equal Opportunity is a part of the Department of Housing and Urban Development, or HUD.

"It's me again—Jay. Keep in mind that, while not every building will require every modification to be made, all new design, construction and alterations are required to meet the standards set in the ADA and in Florida laws." Based on what you know about accessibility requirements in Florida, identify which options may be required in the design or modification of a building or facility. Select all that apply.

Handicap parking spaces Addition of ramps Bathroom grab rails Door opening minimums Elevators Removal of architectural barriers

Larry applied for a real estate license, but then due to health issues he wasn't able to take the exam for just under 3 years. What does this mean for Larry?

He can be denied his license since it's been over two years. If an applicant doesn't complete the state licensing exam within two years of the application, the license can be denied.

At 64. Thomas is the only member of the FREC who is over 55 years old. What does this mean for him?

He meets the requirement of one commission member being over the age of 60. Florida law requires that at least one member of the commission be age 60 or older.

Chester is moving on up! He and his wife are ready to sell their condo and purchase a new place. Chester is a real estate licensee and will list the property himself. What must Chester disclose to prospective buyers?

He owns the property. Licensees with personal interest in a property must disclose it to prospective buyers.

If Sam, a veteran who was honorably discharged from military service six months ago, decides to apply for a real estate license, what fees can he expect to pay the DBPR?

He qualifies for a fee waiver and does not have to pay the DBPR fees for initial applicants Veterans who apply to the DBPR for any professional license qualify for a fee waiver during the five years following an honorable discharge from military service.

Charles, a real estate professional, has just finished touring a property he'd like to list for sale. When talking with the owner about the property and comparing it to other properties recently sold in the area, he tells the owner he appraises the property at a value of $350,000. What, if anything, did Charles do wrong?

He referred to his opinion on the value of the property as an appraisal. Licensees cannot refer to their opinion of value as an appraisal, nor present it as such. Licensees don't perform appraisals; appraisers do.

The FTC pays particular attention to two types of advertisements. What are they?

Health and safety claims Ads that are difficult for consumers to evaluate

Chaz represents the buyer in a transaction that has just closed. How will he typically be paid?

His brokerage will receive a commission check from closing; his broker will compensate Chaz according to the terms of their agreement. Remember that licensees may only receive compensation through their brokers.

Jacob performs administrative tasks and record keeping in a government office. What is true of Jacob's job?

His duties are ministerial. Recordkeeping and administrative tasks are ministerial duties. A ministerial duty is also a duty that is carried out by a person in a public position according to the law.

In the real estate business, which professional's primary role is to perform a visual inspection of a property's structure, systems, and site conditions?

Home inspector

Jason and Pat notice some brown spots on the ceiling of a home you have shown them. They ask if that means the roof is leaking.

Home inspector

Dolcita is an unlicensed assistant for licensee Glynnis at Gator Realty in Destin. Which of the following best describes how Dolcita can be compensated for her work?

Hourly, salaried, or per activity An unlicensed assistant can't be paid a percentage of commissions. Only licensed real estate professionals can be paid this way.

Whenever you have buyer clients with children, you avoid mentioning potential properties in Tanglewood because of the lousy school district.

Housing discrimination

Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from the familial status discrimination?

Housing for Older Persons Act of 1995 Under the Housing for Older Persons Act of 1995, housing must have one person who is 55 years of age or older residing in at least 80% of its occupied units to be exempt from charges of familial status discrimination by age preference.

You're the subject of a disciplinary complaint and, in lieu of a hearing, you decide to give up your license. How many years must you wait before applying for a new Florida license?

If enough time has passed and the individual has proven good conduct and reputation, it is possible to reapply. Individuals who have proven good conduct and reputation and enough time is passed, can get a license again as long as they complete all the prelicensing requirements and pass the licensing exam.

Which of the following is true when a Florida sales associate is issued a real estate license?

If the licensee chooses to perform real estate services for compensation, the licensee must be licensed and registered as active with the DBPR.

It's not enough to know the difference between a customer and a client. You also need to be able to explain differences to a consumer. Out of the following correct choices, which one best describes to the consumer the difference between customers and clients and the benefits of being a client?

If you're my customer, I'll work alongside you. If you're my client, I'll do that and more. I'll represent you and negotiate on your behalf. I become your fiduciary and work for you.

You have a sales associate's license and are sponsored by two licensed brokerages with their consent.

Illegal

You have a sales associate's license and choose not to be sponsored by any broker. You start your own brokerage under your own name and operate independently.

Illegal

You want to switch brokerages, but you don't want your current sponsoring broker to steal your leads. You set up sponsorship with the new broker a few weeks before you tell your old one that you plan to leave. After you've transferred all of your leads to your new broker, you tell your original sponsoring broker that you have multiple licensure, and want terminate association with them now.

Illegal

How are leads funneled inside the firm?

Important

How available is the broker if you have questions?

Important

How many licensees does the broker supervise?

Important

What is the annual commission or sales volume per affiliated licensee?

Important

What is the compensation package?

Important

What is the training program like?

Important

When is it acceptable to have non-trust funds in an escrow account?

In order to keep the account from being overdrawn due to banking fees Mixing personal or other business funds with escrow funds is commingling. The only acceptable non-trust fund monies that can be placed in an escrow account are a nominal amount to keep the account open and pay administrative or banking fees.

Rhonda and Oliver bought an old schoolhouse with hopes of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building?

In severalty When there are only two joint tenants, the death of one dissolves the joint tenancy. Rhonda is now the sole owner of an estate in severalty.

Eileen's foible is just one of many reasons why some brokers choose not to handle escrow funds. By using a title company or an attorney, brokers can avoid some liability, but licensees are still required to do a few things. What would those be?

Indicate the title company or attorney's contact information on the sales agreement. Request a verification of deposit within 10 days of when the deposit is due. Provide the seller with written verification that the deposit was received within 10 days of requesting it from the attorney or title company.

Factories, warehouses, industrial districts

Industrial

Angela did not complete the continuing education requirement in time to renew before her license expiration date, and her license status changed to involuntary inactive status two months ago. What's the current status of Angela's license?

Ineffective

The license exists, but it can't be used while inactive or suspended.

Ineffective

Gretchen has earned her broker license but has decided to not conduct business in real estate just yet. She has placed her license in voluntary inactive status. Which classification best describes why she is not allowed to perform real estate services?

Ineffective Because Gretchen's real estate license is inactive, it is considered ineffective, meaning that the license exists but Gretchen can't use it.

Which option is defined as the type of hearing that is held in front of the FREC as long as none of the facts of the complaint are disputed?

Informal An informal hearing is held in front of all of the FREC commission members who did not serve on the probable cause panel, as long as none of the facts of the complaint are disputed.

"I know I was wrong and I'll take whatever punishment they decide is right, but I at least want to tell them my side."

Informal hearing

Expedited process to settle a complaint

Informal hearing

Held at a regularly scheduled commission meeting in front of FREC

Informal hearing

Includes all remaining commissioners who did not serve on the probable cause panel

Informal hearing

The FREC determines the guilt of the licensee and the penalty.

Informal hearing

The initial application fee and unlicensed activity fee

Initial licensure applicants

You're walking through a property with a new seller client. The seller tells you that the property is serviced by the public sewer system, but when walking up the drive you noticed the access hatch for a septic system. What should you do?

Inquire about the homeowner's claim to ensure the property really is on public sewer. As an agent, it's your responsibility to investigate any discrepancies of a material nature, but that doesn't mean hiring a private investigator.

Was the item intended to be temporary or permanent?

Intention of person placing

Chris is aware of a basement leak in his listing but doesn't disclose this to prospective buyers.

Intentional

Concealment of a known defect

Intentional

Which of the following is an unauthorized practice of law?

Interpreting the legal consequences of a client's actions Interpreting legal consequences should be left to someone who practices law (an attorney). If a licensee does this, it's an unauthorized practice of law.

A property is listed as having four bedrooms and two-and-a-half bathrooms. However, when showing your buyer clients the property, you only count three bedrooms. As their agent, what should you do as part of your due diligence?

Investigate this discrepancy. Licensees have the responsibility to investigate any discrepancies of a material nature. Number of bedrooms is material to the value of a property.

Let's say you didn't renew your license before its expiration date. Which status will your license automatically revert to?

Involuntary Inactive

What if the license of your employing broker is suspended? Which status will your license automatically change to?

Involuntary Inactive Exactly! If your broker's license is suspended, your license will become involuntary inactive until you find and register with another employing broker.

Which of the following is true about a probable cause panel?

It can decide whether a complaint has merit. The probable cause panel merely determines whether a complaint should be further investigated.

What is particular about the duty of confidentiality owed by transaction brokers?

It is limited. Transaction brokers owe the duty of maintaining limited confidentiality—they may represent the buyer and seller in a single transaction, but may do no harm to either party's negotiation powers.

After Larry received his final order in the mail, he could have gone another route and used his right to appeal for a judicial review. Select the three options that are true for a judicial review.

It may be initiated by the licensee or the DBPR. It can only be done within 30 days of the date that the FREC's final order is issued. District court must uphold the FREC's ruling during judicial review unless the court finds reason to set it aside, or to modify the ruling for additional action.

What must be done for a fee to be considered acceptable under RESPA?

It must be disclosed to the client. According to RESPA, all acceptable fees must be disclosed to the client. They must be for actual services, they can't be for nominal services, and they must not be excessive.

In order for Florida homeowners to qualify to homestead their residence, which of the following must be true?

It must be their principal residence. Florida homeowners can homestead their principal residence.

Which of the following is true about the Florida Homestead Law?

It prevents families from being displaced under certain conditions. The Florida Homestead Law prevents families from being displaced. If the homestead is titled in the name of only one spouse and that spouse dies, the surviving spouse receives a life estate to the property. Any children receive a remainder estate.

Why might you not be able to accept tickets in exchange for referring business to a settlement service provider?

It would be considered a kickback. Tickets or anything else of value can't be accepted. These would be considered kickbacks under RESPA Section 8, and a violation of the law.

Derrick recently earned his real estate license, and he's eager to find new clients. He tells you that he plans to promote his services by sending an unsolicited fax to 100 potential clients. What should you advise him?

It's illegal to send commercial faxes unless he has the recipient's permission or an established relationship with the recipient.

The Sanders family is selling their home. They've signed an agreement with James from Town Agency. The sale will pay 5% commission, to be split 50/50 with the buyer's agent, if there is one. You represent the Damons as a buyer's agent with City Realty. The Damons make an offer that the Sanderses happily accept. Shortly after closing, you'll receive your commission check from your broker. Which two of the following relationships represent agency?

James and the Sanderses You and the Damons

Johnny is overwhelmed by the amount of work that goes into being a landlord in Florida and has too many requests for repairs from his tenants. He needs to choose one of these to hold off on for now. Which repair can he legally postpone completing?

Jay clogged up his toilet again, and still hasn't bought himself a plunger. Actually, Jay needs to be told to get himself a plunger. A clogged toilet that's otherwise functioning doesn't rise to the level of inhabitability. In Florida, broken heating systems, showers, and electrical systems are all higher priorities.

Betsy is buying a home from Joe. Joe's listing agent is Keri, and Betsy has no representation. Which of these statements is true about this transaction?

Joe is Keri's client, and Betsy is Keri's customer. A client is a represented party to the transaction. Betsy has no representation but will need to interact with Keri, which makes her a customer.

Girlfriends Thelma, Sidney, and Shirley meet at the Crusty Acres Retirement Center. Tired of unsalted oatmeal and 8:30 curfew, they decide to ditch the joint, pool their resources, and buy a "happenin' little condo uptown." Because they want to ensure that no one is displaced from the condo in the event of one owner's death, they decide to hold title in such a way that if any of them dies, the others own the deceased person's shares. How should they hold title?

Joint tenancy

Joe and Susie bought a house together before they were married. If Joe dies, Susie automatically inherits Joe's share of the house. What type of ownership is it?

Joint tenancy Joe and Susie must be joint tenants because they are not married when they purchased the home and the right of survivorship is involved (Susie automatically inherits Joe's share of the house upon his death). The other type of ownership that involves the right of survivorship is tenancy by entirety, but it requires that the owners be married when they purchase the property.

Siblings Julia and Gene are co-owners of a small retail building in which a tanning salon is currently operating. Gene really wants to leave his ownership interest to his son when he dies, but the way in which they own the property doesn't allow him to do so. What type of ownership do they have?

Joint tenancy Joint tenancy does not include the right of inheritance; ownership interest passes to the remaining tenants once a tenant dies.

Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights?

Joint tenancy Joint tenancy provides equal ownership shares with undivided possession rights and requires four ownership unities: time, title, interest, and possession. Joint tenancy includes the right of survivorship.

What type of ownership requires that all co-owners have the same percentage of ownership?

Joint tenancy This is joint tenancy. It also includes the right of survivorship. It might help you to remember that joint tenancy is a joining of two or more equal parts.

What is the name of a type of ownership where each person has the same percentage of ownership and the right of survivorship, but are not married?

Joint tenancy This is joint tenancy. Just remember that joint tenancy is for anyone, and tenancy by entirety is for married people. Tenancy in common does not have the right of survivorship.

Discrimination is not allowed, even when you're selling your own property.

Jones vs. Mayer

As the Escrow Turns: Tune in as we see whether Rapunzel has kept appropriate records for this transaction. Select all of the actions she should have taken.

Keep track of who the funds came from, when they were received and deposited. Keep a record of where funds are held and when they are disbursed and who received the funds and for what. Keep all the escrow records used for at least two years after the case concludes. Retain records for five years, and provide to the DBPR for spot checks or audits upon request.

In which of these situations does the licensee have a disclosable ownership interest in the the property?

Kennedy is representing his LLC in the purchase of a commercial building. Kennedy is part of the LCC that's purchasing a commercial building, so he must disclose this interest to all parties to the transaction.

Kevin listed his house with you but isn't offering a cooperating agent's commission. Ji-eun represents the buyer, Marta, and Marta's parents, Jean and Tom, are paying Ji-eun's commission. On which of these factors is your agency relationship based?

Kevin signed a listing agreement with you. Agency is created through either an express or an implied agency agreement. Neither compensation nor ownership create an agency relationship. You have a signed agency agreement with Kevin; that agreement creates the agency relationship.

The earth, the soil, the air

Land

The earth's surface extending downward to the center of the earth and upward to infinity including permanently attached natural objects is called ________.

Land This is a description of land.

We hope this will never happen to you, but if you're ever threatened by someone who's unhappy that you wouldn't violate fair housing law, to which entity should you report the threat?

Law enforcement

Ideally, what guides real estate licensees' behavior?

Laws and ethics Ideally, both laws and ethics guide real estate licensees' behavior.

Ryanne is a tenant in a single-family home owned by Dominick. What type of interest does Ryanne have in the property?

Leasehold Tenants have a leasehold interest in the property.

You signed a two-year agreement to rent an office space in a local commercial building.

Leasehold estate

You have a broker's license and you choose to work with a different firm in another part of the state while you maintain your own business.

Legal

You have a sales associate's license and are sponsored by a licensed broker.

Legal

Which of these is a recommended strategy for a real estate professional who wants to avoid being asked to violate fair housing laws?

Let consumers know up front that you adhere to fair housing laws. The best way to avoid finding yourself in a situation where a client asks you to violate fair housing law is to be clear from the beginning.

How is the Florida Real Estate Recovery Fund funded?

License fees The recovery account is funded through license fees. As amounts are paid out, licensees involved in the transaction must repay these amounts.

What are five of the possible administrative penalties the Florida Real Estate Commission and the Florida Department of Business and Professional Regulation may issue for violating real estate rules and regulations?

License suspension License revocation A reprimand Additional education

Serious violations of the real estate license laws typically result in which disciplinary action or actions?

License suspension or revocation Serious violations may also include restrictions.

Host open houses

Licensee

Interpret listing information to a client

Licensee

Show property

Licensee

Solicit business directly

Licensee

Liability is limited to the amount of money that partner has invested

Limited

Pam is a partner in CRL Brokerage. Her liability is limited to the amount of money she has invested. What type of partner is Pam?

Limited Limited partners' liability is proportionate to the amount of money that partner has invested.

A non-incorporated entity that combines the pass-through profit/loss tax benefits of a partnership with the legal shield of a corporation.

Limited liability company

Your best friend is selling his home. Anxious to prove yourself, you list the property on the MLS without his permission.

Listing without permission

A court procedure that takes the form as an interpleader or a direct judgement to resolve escrow fund disputes.

Litigation

There's no better way to spend a morning than sitting on the edge of your pier, sipping coffee and throwing a ball into the lake for your yellow lab to fetch.

Littoral

A friend of Keira's represents sellers of a two-bedroom bungalow that would be perfect for Keira's buyer client. She shows the buyer the property, but doesn't tell them she knows the seller's agent.

Loyal

Keira has a buyer looking at condos downtown, but she shows him a condo in the same price range slightly away from his desired area so he can see the difference in what his money will buy.

Loyal

Keira shows her buyer two houses. One has a cooperating agent commission of 2.5% and is priced at the low end of the client's budget. The other is at the higher end of her budget, but pays a 3% commission to cooperating agents. The client loves them both and asks which Keira would choose. Instead of answering, she tries to help her client come to a decision by comparing qualities of both.

Loyal

The clients are selling their home and moving out of state. Keira gives them the name of an agent she knows and, in return, that agent will give her a referral fee if the clients purchase a new home through him.

Loyal

Which of the following is a specific fiduciary duty that agents owe in Florida?

Loyalty Loyalty is missing from this string. Exercising honesty, using reasonable skill, and accounting for funds are duties owed to all parties.

When pitching the benefits of full representation to a potential client, you can list which of these duties as exclusive to a single agent relationship?

Loyalty Loyalty is one of the fiduciary duties owed by single agents, along with full confidentiality, obedience, and full disclosure.

When agents put their clients' interests ahead of their own, this describes the duty of ______.

Loyalty Loyalty means putting the client's interests first ... ahead of customers' interests and ahead of your own.

While hosting an open house, Liza speaks with prospective buyers. They're interested in the house, but think the listing price is a little high. They ask her what other incentives they could include in their offer to get the seller to come down on their price. If Liza helps them, what duty may she be breaching?

Loyalty Loyalty means putting the client's interests first, and sellers want to get the highest price possible for their property. Helping prospective buyers negotiate against your client's interests breaches the duty of loyalty.

You're speaking to a potential buyer client who thinks agents just drive up the price of the house in order to increase their commission. Which fiduciary duty should you mention when explaining why that wouldn't happen in an agency relationship?

Loyalty The duty of loyalty requires an agent to put the interests and needs of the client first.

Chuck and Frank have been diligently going through the investigative report in private proceedings for Larry's case, trying to determine if he committed a violation. They also requested additional information from the DBPR to help them come to a determination. What are the four options available to them at this point?

Make a determination within 30 days of receiving the final investigative report. Dismiss the complaint and send Larry a letter of guidance for how to act in the future. Find probable cause and notify the DBPR to issue a formal complaint. Notify Delilah and Larry in writing of the panel's findings.

According to the NAR Code of Ethics, what responsibility do licensees have related to material facts?

Make a reasonable effort to ascertain all material facts concerning each property for which an agency is accepted. Licensees should make reasonable efforts to ensure material facts related to the property are accurate. This may include (but is not necessarily limited to) asking the client questions about the property and its condition or inspecting the property.

What must a licensee do when preparing a CMA (or opinion of price) for a consumer?

Make a statement that the opinion isn't an appraisal. Licensees may not refer to the opinion of value as an appraisal, nor present it as such. Licensees don't perform appraisals.

A process agreed to in writing by both parties used to negotiate a non-binding agreement through a neutral third party.

Mediation

All of the residents at Shady Pines are at least 62 years old.

Meets Exemption Requirements

HUD determined the complex was specifically designed for seniors.

Meets Exemption Requirements

Of the residents, 80% are 55 years old or older, and there's a policy in place to keep it that way.

Meets Exemption Requirements

Which of these situations does the Americans with Disabilities Act address?

Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs. The Americans With Disabilities Act prohibits discrimination against those with disabilities in the delivery of programs, services, and activities, so Meridian Apartments is violating the law.

So, did you find "IRMA" helpful? What are the four tests to determine if an item is a fixture and part of the real estate?

Method or Degree of Attachment Relationship of the Parties Adaptation of the item Intention of the Person Placing the item

Can the item be removed without damaging what it is attached to?

Method/degree of attachment

Which bundle of rights is involved in the Promised Land trailer?

Mineral Rights You got it! Land owners are being asked to lease their mineral (or sub-surface) rights so the energy company can drill for natural gas on their property.

Enjoy a view that will never be obstructed!

Misrepresentation

Home values in this neighborhood are going to skyrocket in the next five years!

Misrepresentation

Broker Joseph tells his client that a property is zoned as residential, even though he knows it's zoned as commercial. This violation is an example of ______.

Misrepresenting or omitting This a direct example of a misstatement of a material fact, and is therefore an example of a misrepresentation or omission (in this case, a misrepresentation).

Licensee made an honest mistake while working in the best interest of their client with minimal harm done.

Mitigating circumstance

The licensee was still a sales associate a couple of months out from licensure.

Mitigating circumstance

Carly, the property manager for several large apartment complexes, would like to control her tenant base just like Mrs. Murphy does. Why is Mrs. Murphy allowed to discriminate, when Carly isn't?

Mrs. Murphy lives in the property, which has fewer than four rental units.

Issued to a broker who is the broker for more than one business entity

Multiple licenses

Review each scenario and identify whether it violates licensing law. Select all that apply.

Nathan and Cassie are friends. Cassie, a real estate licensee, recently provided some real estate services to Nathan's company. Now, Nathan is preparing to do some work-related travel overseas and wants to give his wife power of attorney (POA) in case anything comes up while he's gone. He asked Cassie to prepare the POA for him, and she agreed. Did Cassie violate her responsibilities as a real estate licensee? Tamron is the listing agent for Anthony's 25 acres of land. Carter would like to purchase the land and makes a full-price offer on the land. But now seller Anthony thinks he might get more for his property because the first offer has come in at full price, so he asks Tamron to counter-offer for a higher price. Carter, upset that they've countered his full price offer, mentions possibly contacting his lawyer to force the sale at the list price. Tamron persuades Carter otherwise by telling him that it would be a lengthy process, cost more money, and, in her opinion, would not go in Carter's favor. Based on what Tamron told him, Carter agrees to the counter-offer and the sale is completed. Afterward, Carter filed a complaint. What do you think? Does Carter have a valid complaint against Tamron?

She avoids renting to everyone who seems Middle Eastern because she assumes they all have ties to terrorists.

National origin

You've been studying real estate for a while, and you're a few weeks from taking the exam and getting your real estate license. Which activities are you able to do?

Negotiate and buy your own property. You're not yet licensed, so the only activity you can perform from among these options is to negotiate and buy your own property.

How many duties are owed by a designated sales associate?

Nine Designated sales associates act as single agents, and a designated sales associate disclosure must list the same nine duties as a single agent notice. These are the DAD UP COLD duties.

A local realty firm is seeking to bring on an agent who will focus only on properties priced above $1 million.

Al is a new licensee who lives in a very agricultural community and wants to specialize in the sale of farm and ranch property. Is he required to have additional education to specialize in this area?

All agents with MaxRealty charge a 4% commission split evenly with the cooperating agent.

An agent has a client who would like to purchase a home in a neighboring county. Unfamiliar with the area, the agent refers the buyer to another agent with the firm who is more knowledgeable.

Eileen's seller has accepted an offer from the buyer who provided an earnest money check on Friday as stated in the listing agreement. Because it's late in the day and her broker has already taken off for the weekend, Eileen deposits the check into her own bank account for safekeeping, and makes a record of the deposit to give to her broker. She'll take it out on Tuesday when she returns from her trip to the Keys and deliver it then. Did Eileen follow proper procedures?

Individual boycotts

Instead of competing in each other's territories, agents with one firm agree to segment the marketplace and refer clients who are outside of their assigned market area to other agents.

Is at least 80% of gross income derived from tenant-shareholders?

Larry must have committed the violation in Florida.

Let's look at some specific responsibilities to determine the extent of the FREC's powers. Which three items are a responsibility? Impose imprisonment as a penalty

Let's meet Alison, a real estate licensee. Alison just received a call from the Masons. They are interested in putting their house on the market and would like to talk more with Alison about this process. Alison meets with the Masons the next day and is excited about this new prospect. She leaves them with her business card and a promise to call back in two months when they say they'll be ready to act. In return, Alison leaves with an unsigned agency agreement and contact information for Brent, their son who is ready to buy his first home. Are the Masons Alison's clients?

Mandy is a salaried employee at Kids-Camp, Inc. She sometimes helps K-C, Inc. purchase property to make their own parks and playgrounds. She doesn't receive separate compensation for these real estate purchases. Is a license required?

Ralph is the executor of Donald's estate. After Donald's passing, Ralph sells the condominium and two homes Donald owned at the time of his death. Ralph isn't a licensed real estate professional. Did he break the law?

The complaint can't be filed anonymously or withdrawn after it is submitted.

The violation is related strictly to real estate violations.

Yankee Group and Met Realty both charge commissions of 5%.

Kerry is the Limitless Realty broker. She has a meeting with her licensees and states, "From now on, we will not charge less than a 5% listing fee." Is this an antitrust violation?

No This is not price fixing or any antitrust violation because it does not involve an agreement (collusion) with a competitor.

Arthur is the exclusive listing agent for Benjamin's commercial property that sold. Arthur used a standard purchase contract form commonly used in the area and just filled in the blanks as they applied to this transaction. While presenting the contract for Benjamin's signature, Arthur explained that the form was prepared by attorneys and suggested that Benjamin carefully read it over and consult an attorney with any questions. Benjamin said everything looked and sounded good and signed the form. However, at closing, Benjamin expressed that he misunderstood the contract, especially related to the date of possession. He subsequently filed a complaint that Arthur should have had an attorney draft the contract rather than Arthur "filling in blanks." What are your thoughts? Did Arthur commit a violation?

No You got it! Arthur was not in violation. He used a standard form (common practice), prepared by an attorney (as any contract should be) and recommended Benjamin consult an attorney. Now, if Arthur had drafted a new contract rather than using a standard form, there'd be an issue.

Uh oh! Imagine that the once-friendly feud that surfaced between Jack and Joe during football season has reached a new level. Now Jack is forbidding Joe from entering certain rooms in the family home the brothers inherited. Can Jack do this?

No Good job! Tenants in common hold an undivided interest in the entire property. This means each brother has the right to access all portions of the property. Jack cannot prevent Joe from entering areas of the property.

Landon is the listing agent for Maury's property. Maury is moving out of state for a new job, so the house will be vacant for some time, depending on how long it takes to sell. Maury is pretty adamant about not having a sign in his yard, especially after he moves. Landon follows Maury's wishes, but a month after Maury moved, there hasn't been any movement on the property. Landon places a sign in the yard, hoping it will drum up some interest. Is this okay?

No, Landon shouldn't place a sign on Maury's property without Maury's written permission. Licensees must receive written permission from property owners prior to placing any signs on the property.

Elliott is a 19-year-old Florida real estate sales associate who would like to get his broker's license so he can open his own office. Is he qualified to become a licensed real estate broker in Florida?

No, because he has not been licensed for two years.

Gracen has had his sales associate license for five years. He's completed the FREC-approved 72-hour pre-licensing course for brokers. Is he qualified to obtain a real estate broker license?

No, he needs to have had a real estate license for at least 2 years.

Robert did not complete his post-licensing education before his first license expiration date. May he continue to work as a sales associate?

No, his license will be null and void if he does not complete the education requirement and renew on time. If Robert does not complete his post-licensing education before his license expires, his license will automatically become null and void. Post-license coursework is important!

Which of the following is true about Florida homesteads?

Non-governmental creditors cannot pursue liens against these properties Non-governmental creditors cannot pursue liens against Florida homestead properties to force the sale of the home.

Alison has disclosed, in writing, that she has no brokerage relationship with Zsa Zsa, who is selling her home to her daughter.

Non-representation

Alison has disclosed, in writing, that she has no brokerage relationship with Zsa Zsa, who is selling her home to her daughter and needs assistance with the sales contract. What type of relationship has Alison established?

Non-representation This type of relationship is called non-representation and requires a "no-broker relationship" disclosure.

Jason, a new licensee, wants to advertise himself in a splashy new ad. A mortgage broker offers to help defray the cost of the ad if the mortgage broker can also advertise in the same ad. They agree and decide to split the cost and space 60/40, with the mortgage broker's portion of the ad taking up 60% of the space. So, is it a kickback?

Nope, not a kickback

Keira's listing backs up to an open space that will soon be developed into a retail site

Not Confidential

Keira's seller's house was featured in a movie in the early 1980s

Not Confidential

An individual selling another person's property for compensation

Not Exempt

Closed corporation

Not Prohibited

Limited liability partnership

Not Prohibited

Answering factual questions about a property listing over the phone

Not Required

Broker associate's license status

Not Required

Explaining how comparative market values work to friends at a dinner party

Not Required

Facilitating a lease agreement that does not include an option to purchase

Not Required

Hosting an open house

Not Required

Sales associate's names and license status

Not Required

She conducts a phone survey of all clients every six months.

Not Required

She furnishes desks and phones for all associates.

Not Required

Allows an extension for the payment of property taxes.

Not a Benefit

Protects the property from foreclosure for failure to pay property taxes.

Not a Benefit

Double agent

Not a Real estate agent

Secret agent

Not a real estate agent

Transactional broker

Not a real estate agent

Legal U.S. resident or citizen

Not a requirement

Two years of experience in real estate

Not a requirement

The licensee informs his client of additional compensation the licensee will receive from the transaction.

Not a violation

When Patrick was 18, he was convicted of home invasion. He served probation and has turned his life around, but he informs FREC of this conviction on his application anyway.

Not a violation

After disclosing non-representation, Billy shows one of Elizabeth's listings to a potential buyer. The buyer asks Billy to represent him in the sale, and he acts as a transaction broker while Elizabeth acts as a seller agent.

Not allowed

Elizabeth is acting as a listing agent for a seller. Billy shows the listing to a potential buyer without giving any disclosures.

Not allowed

Upon one party's request in writing to disburse the funds

Not allowed

A licensee is the listing agent on her parent's property, but keeps this fact confidential from prospective buyers.

Not ethical

The licensee modifies the listing price of a property above market value in an effort to win the listing.

Not ethical

The licensee offers advice on the condition of a property's roof.

Not ethical

The licensee promotes his own interests ahead of the client's.

Not ethical

You have a listing on a house being sold through an estate and disclose to a prospective buyer that the prior owner had died of AIDS.

Not in good faith

You have a new listing and learn from the seller that a train track will be built adjacent to the property, creating an easement. The seller wants to move due to the expected noise issue, but asks you not to mention it to prospective buyers, and respond dishonestly when asked. You agree and do not disclose this to buyers

Not in good faith

You purchase a client's property, intending to turn it into a duplex, without informing the owner of your plans.

Not in good faith

You represent a seller and do not tell a prospective buyer that the house was the site of a recent suicide, even though the buyer asked you if any deaths have occurred on the property. You answer, "Not to my knowledge."

Not in good faith

Your client wants to purchase a commercial building. You would earn a sizable fee. However, you have no experience negotiating commercial purchases. You take the listing.

Not in good faith

How long does the other party have to respond to each option listed?

Notice of failure to meet obligations or terms in the rental agreement Notice of failure to pay rent

What should a broker do if the broker wants to use an interest-bearing account to hold escrow funds?

Notify all parties of the type of account and how the interest will be distributed, and obtain written permission to do so The broker must notify all parties of the type of account and how the interest will be distributed and obtain written permission to do so.

Jonas is wondering what'll happen to his sales associate license if it remains involuntary inactive for more than two years. Can you tell him what's next for this license?

Null and void

The license no longer exists because it remained on voluntary inactive status for more than two years, or it was cancelled or revoked.

Null and void

A seller client would like prospective buyers to remove their shoes in the house.

Obey

Rapunzel opens an interest bearing escrow account. What three things must she do before depositing any earnest money, and how can she remain compliant with regulations without commingling funds?

Obtain written permission to use the account from all parties Disclose how interest will be distributed to all parties in the written agreement Maintain a small amount of money in the account for administrative costs

Which agency is charged with enforcing fair housing laws and holding all parties accountable for compliance with these laws and regulations?

Office of Fair Housing and Equal Opportunity Individuals who have experienced housing discrimination can file a complaint with the Office of Fair Housing and Equal Opportunity. The OFHEO is charged with enforcing fair housing laws.

In the introduction to the candidate information booklet, you'll learn that your examination will be administered _______.

On an electronic testing system

How many single agents from a single brokerage may be part of a single residential transaction?

One

How many transaction brokers from a single brokerage may be part of a single residential transaction?

One or two

Who can use the term REALTOR® to refer to themselves?

Only members of the National Association of REALTORS®

Performing appraisals to determine the value of a home

Outside Expertise Appraisals are a specialty area that is handled by licensed appraisers.

Giving advice on how to finance a home purchase

Outside Expertise Financing is outside the scope of real estate expertise. Leave this to the lenders.

Performing home inspections

Outside Expertise Home inspections need to be done by professional home inspectors.

Which type of property is exempt from the Fair Housing Act?

Owner-occupied with no more than four units An owner-occupied property that contains no more than four units is exempt from federal fair housing laws.

In this question, you'll find a series of violations of the transaction broker's duties. Match each one with the duty that should have been upheld. While preparing to present offers to her seller customer, Julia pulls out the top three offers. The rest aren't worth her seller's time. Julia failed to present all offers. Julia ignores several of the blanks on the sales contract. Her broker can't approve it and Julia misses the window to accept the highest offer. Julia failed to use skill, care, and diligence. Julia tells a buyer the seller is in a hurry to move after a divorce and will negotiate on the price. Julia failed to maintain confidentiality. In the listing agreement, Julia agreed to never show the property on Sundays, but allowed a showing on a Sunday when the seller was out of town. Julia failed to perform additional duties as mutually agreed.

P.U.M.A.

Ken, Dale, and James are brothers who own more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result is that the court gave each brother a designated set of acres to own. What was granted by the court?

Partition Partition is the term used to describe a specific, divided portion of property that's created as part of a co-ownership termination.

A non-incorporated entity that can be general or limited. Shared personal liability.

Partnership

Which type of legal structure may be either general or limited in type?

Partnership Partnerships are a common legal structure and may consist of general and limited partners.

Members of the NAR or local associations of REALTORS® must ______ to belong to the organization.

Pay an annual membership fee

Licensee Dionne pointed out to her buyer client the items in the house she was showing that would be considered real property. One of the key determinants, she explained, was whether the item were ______.

Permanently affixed to the property How the item is affixed to the property is a key factor in determining whether it's real or personal property.

Above-ground pool

Personal property

Curtains (not custom-made)

Personal property

Door knocker engraved with your last name

Personal property

Free-standing children's outdoor play set

Personal property

Which of these parties must obtain a real estate license before performing real estate activities?

Persons representing buyers or sellers who will receive compensation for their services. Owner/developers and their employees, attorneys performing legal services, and those acting as a power of attorney are exempt from obtaining a real estate license.

"Separate but equal" is sufficient. Segregation is allowable.

Plessy vs. Ferguson

Which decision stated that separate facilities for blacks and whites were constitutional as long as they were "equal"?

Plessy vs. Ferguson The U.S. Supreme Court's 1896 decision in Plessy vs. Ferguson was the first to establish the 'separate but equal' doctrine of legalized racial segregation..

"I can occupy my property in privacy."

Possession

Which of the following actions is against the NAR Code of Ethics?

Preparing a written agreement that falsely states a purchase price Written agreements should accurately state parties to the transaction and details of the transaction, such as purchase price.

Brandon is the listing agent for Jane's property. After a couple of weeks on the market, two formal written offers come through. One is for well below the listing price, and another is a bit closer, but still under the list price. What should Brandon do with the offers?

Present both offers to Jane. All formal written offers a licensee receives must be presented to the seller.

A consumer is moving to a new area and uses social media to try to line up a real estate professional to help him find a new home. He asks how much he'll need to pay his licensee. One firm he contacts tells him that all licensees in the area charge at least 2%. What antitrust violation does this imply?

Price fixing By stating that licensees won't work for less than 2%, the firm implies there's a price fixing agreement in place.

According to the U.S. Department of Justice, which type of antitrust violation is an agreement between competitors to eliminate discounts to all customers or certain types of customers?

Price fixing Price fixing may include an agreement to eliminate discounts.

Your sales associate license document serves as ______ you have a valid and current license.

Prima facie evidence that

A party to a transaction, and the person for whom the agent acts

Principal

Back when the west was yet to be won, Sandra's family was the first to find and use a pond, and they still have primary rights to it.

Prior appropriation

Hal and Sara own a 212-acre farm. Their property is landlocked, but they have permitted water rights to use the stream located six miles away for irrigation purposes. What kind of water rights do they hold?

Prior appropriation The doctrine of prior appropriation grants water rights based on need, not adjacency. Hal and Sara likely live in the western part of the U.S. where many states subscribe to this doctrine.

A homeowner makes a room available for rent in her residence and specifies in the online advertisement that only women need apply.

Prohibited

A landlord lies to a young pregnant woman and tells her there are no units available in the complex because the only one available is right next to his apartment, and he can't stand the sound of crying babies.

Prohibited

A property manager refuses to show a property to a blind person with a guide dog because the owner doesn't allow pets.

Prohibited

A selling agent doesn't respond to a request to view a listed property because the person's foreign accent in the voicemail is very thick.

Prohibited

Business trust

Prohibited

Can you help her sort out which business types are prohibited, and which she can register her business as to help her narrow it down? Corporation sole

Prohibited

Joint ventures or ostensible partnerships

Prohibited

Unincorporated association

Prohibited

While reviewing offers with the sellers, an agent mentions that one of the potential buyers looked like a man wearing women's clothing. The sellers refuse to consider the offer, because they don't think the neighbors would be happy if they sold their house to someone who might be transgender or gay.

Prohibited

Annelisa is getting up in years and needs some help managing her rental properties

Property manager

As the owner of an apartment complex near the college, Bill needs someone to act in his interests. He hired Carter as his agent.

Property manager

Which of the following accurately describes the Division of Real Estate?

Provides administrative services for real estate licensing professionals The DRE is responsible for administrative services and ministerial duties on behalf of the FREC.

Your study buddy for the licensing exam tells you that transaction brokers owe the duties of presenting all offers and counter-offers; using skill, care, and diligence; providing full disclosure; and performing any additional duties agreed to in writing. Which of these duties would you point out as incorrect?

Providing full disclosure Transaction brokers don't owe the duty of full disclosure—just disclosure of material facts. What your study buddy forgot is the duty of limited confidentiality.

What might the FTC have you do to correct the deceptive advertisements you've circulated? There are four correct answers.

Publish new ads that correct the deception in the original ad. Notify consumers who have bought the products based on deceptive claims. Include specific disclosures in future ads. Provide additional information to consumers.

Best house on the block!

Puffery

Enjoy a view that never gets old!

Puffery

Views you've only dreamed of!

Puffery

Power to grant or deny license applications, determine violations of license law, and administer penalties

Quasi-judicial

Power to enact and revise administrative rules

Quasi-legislative

A seller client asks to have at least two hours' notice before a showing.

Question

A seller doesn't want a lockbox placed outside their home.

Question

A seller works from home and would like to remain in the house during showings.

Question

Which of the following prohibits the payment of kickbacks and other fees that drive up the cost to consumers for settlement services?

RESPA Section 8 RESPA Section 8 prohibits the payment of kickbacks and other fees that drive up the cost to consumers for settlement services.

When prospects want to see a unit, she shows all of the whites the new building and shows African Americans the run-down building.

Race

Which protected class refers to a group of people who share common characteristics, typically physical characteristics, such as skin color?

Race Race refers to a group of people who share common characteristics and lineage.

The ______ Act was created by the Florida legislature to establish the legal rights and responsibilities of real estate licensees.

Real Estate Professional Practice The federal regulations apply to all states. Chapter 475 of the Florida statutes, also called the Real Estate Professional Practice Act, applies to real estate licensees in Florida.

Chapter 475 of the Florida statutes, called the ______, sets forth the law regarding real estate brokers, sales associates, and real estate schools.

Real Estate Professional Practice Act The Real Estate Professional Practice Act was created by the Florida legislature to establish the legal rights and responsibilities of real estate licensees.

The earth, the soil, the air, the trees, the house, the garage

Real estate

Broker's agent

Real estate agent

Buyer's Agent

Real estate agent

Landlord's agent

Real estate agent

Property Manager

Real estate agent

Seller's agent

Real estate agent

Single agent

Real estate agent

Sub-agent

Real estate agent

Tenant's agent

Real estate agent

Erica and Stephanie are buying a rental property together to make some extra money, and need advice on financing and the tax implications.

Real estate counselor

In the real estate business, which professional's primary role is to provide clients with the information they need to make informed decisions about their own specific real estate interests?

Real estate counselor

Your friend, Ali, is interested in getting her real estate license and wants to get started on her pre-licensing education.

Real estate educator

Bathroom towel rods

Real property

Garage remote controls

Real property

The earth, the soil, the air, the trees, the house, the garage, the right to enjoy this little chunk of paradise

Real property

Real estate, plus all of the interest, benefits, and rights included in ownership, is also known as ____________.

Real property Real property includes real estate, plus all of the interest, benefits, and rights included in ownership.

Eric has been advertising his services as a rental listing service provider; he offers prospective tenants a premium listing of rental properties in the area for a small fee. What must he provide to his clients to comply with the law?

Receipt with required FREC disclosure That's right! All clients who pay for a rental list must receive a receipt with the appropriate disclosure on it, notifying them of their right to a refund. Let's take a closer look at that refund next.

A lending company denies all loans for properties south of the river because of the demographics of the area.

Redlining

What's the term for a lender refusing to lend in a specific area, often based on the area's minority make-up?

Redlining When lenders determine where they will lend based on a neighborhood's racial or other protected class status, it's redlining, and it's illegal.

A homeowner has converted two rooms in his home to a rental unit. What does the "Mrs. Murphy" exemption permit him to do?

Refuse to rent to a female tenant. The "Mrs. Murphy" exemption applies to owner-occupied buildings with no more than four units. The owner may choose to rent only to a like-sex tenant but may not discriminate on any other basis.

When a dispute occurs, courts tend to favor tenants and buyers over landlords and sellers.

Relationship of the parties

The water has receded near Trevor's beachfront cottage, uncovering new land.

Reliction

The Millers moved to a small town and were interested in buying a house. At the first meeting with real estate sales professional Nora, she asked them where they went to church. They replied that they were atheists and didn't attend church. Nora then told them that she didn't know of any listings that met their needs, even though that wasn't true. Nora is discriminating based on ______.

Religion Fair housing laws prohibit discrimination based on a person's religious beliefs, even if a person's religious belief is that there is no God or Supreme Being.

A landlord refuses to show or rent an apartment to someone who is not Christian or Jewish. What type of discrimination is this?

Religious discrimination Showing a preference for or against a religious group, or showing intolerance for that group's observation of its religious practices or dietary habits, is religious discrimination.

A local school will receive title to 20 acres of land upon the death of the life tenant, Teddy Jr. The school is the __________.

Remainderman

Thelma lived every last minute to the fullest, but sadly died in a freak hang-gliding incident. Who receives Thelma's share of the property?

Remaining tenants

Biennial license fee, unlicensed activity fee, and, if required, a Real Estate Recovery Fund fee

Renewing licensees

What must a broker do if escrow funds are deposited in an attorney or title company's escrow account?

Request a verification of deposit within 10 days of the due date stated in the sale agreement. A broker must request verification of deposit within 10 days of the deadline stated in the sale agreement and notify the seller of the response.

How do you change supervising brokerages in Florida?

Request that your existing and new brokers complete the termination and affiliation processes respectively. When changing brokerages, your existing broker must terminate you, and then your new broker must affiliate you, using either the online or paper-based process.

Advising a buyer client on how to negotiate the best price

Required

Entering into single agency for a residential sale

Required

Licensed real estate broker

Required

Marsha put together her office signs for both of her locations. Check out this mock up and decide what information was required on the signs. Her name

Required

North Star Realty Development

Required

She displays the North Star Realty Development sign at the office prominently for the public to see.

Required

She has an office in Florida for North Star Realty Development where it conducts business and receives phone calls.

Required

She may open another brokerage office in another state if she agrees to cooperate with investigations.

Required

18 years old

Requirement

63 hours of approved pre-licensing education

Requirement

High school diploma or its equivalen

Requirement

Property with four or fewer residential units or agricultural property with 10 or fewer acres

Residential

Written disclosure of single agency or non-representation is required only when the transaction is a residential transaction. Which of these are residential transactions?

Residential property with one to four units Vacant land for residential property with one to four units 10-acre farm

A buyer provided you with an earnest money check. You account for all monies placed in your trust.

Responsibility

An MLS listing says a property is much bigger than it appears. You investigate.

Responsibility

You ensure that all parties have a signed copy of any transactional paperwork, and you retain these for the statutory period.

Responsibility

You receive a call from a buyer interested in your listing. You disclose your agency relationship with the seller to the buyer.

Responsibility

Who knew the small creek flowing along the edge or your backyard would be the prime setting for many hours of father-son bonding ... and friendly competitions to see who could catch the most fish.

Riparian

The right to access non-navigable rivers, streams, and other flowing bodies of water adjacent to a property is called ______ rights.

Riparian Remember that riparian and river (a flowing body of water) both begin with an R. Littoral and lake (a stationary body of water) both begin with an L.

The right to access rivers, streams, and other flowing bodies of water adjacent to a property is called ______.

Riparian Remember that riparian and river (a flowing body of water) both begin with an R. Littoral and lake both begin with an L.

Robert's real estate license has been on involuntary inactive status for more than two years. What automatically happens to his license?

Robert's license becomes null and void. Because Robert's license has been involuntarily inactive for more than two years, the license becomes null and void automatically. Robert will have to re-apply for a license if he wishes to conduct business in real estate again.

A UPS driver crashed into Audrey's exterior wall, endowing her with lots more natural light.

Ruby may enter

Audrey's three-year-old neighbor has set off the sprinkler system in the entire building. Audrey's about to get a floating home of her own.

Ruby may enter

Ruby has baked some delicious Snickerdoodles and wants to leave a batch on Audrey's kitchen counter for when she returns home from work.

Ruby shall not pass!

Ruby is pretty sure she heard a kitten meowing inside Audrey's townhome.

Ruby shall not pass!

Licensed for at least two years before the appointment

Sale associate

Must receive compensation through their broker

Sales Associate

Must work with a broker

Sales Associate

A person who performs real estate duties under the supervision of a licensed broker

Sales associate

Recommends street improvements to the city

Sanjay, urban planner

Select the four tasks that Milt can legally reassign to his unlicensed assistant.

Schedule an appointment to show the property on Fleet Street. Update the MLS info on the Johnsons' property. Design a new ad for next week's real estate magazine article. Drop off documents for Sharon's closing at the courthouse.

The DBPR conducts an investigation and report

Second step

The National Fair Housing Alliance has voiced concerns that programs designed to address the financial and mortgage lending crisis have increased instances of ______.

Segregation The National Fair Housing Alliance's recommendations for the future of fair housing include considering the impact of financial programs on minority groups because recent programs designed to address the crisis have resulted in increased segregation.

Chris accepts an undisclosed referral fee from a mortgage broker.

Self-dealing

Chris represents the buyer and doesn't tell the buyer that the seller is offering the buyer's agent a bonus if the offer he brings closes within 30 days.

Self-dealing

Undisclosed personal interest in a transaction

Self-dealing

The first case is Plessy vs. Ferguson from the 1890s. This case set the stage for what would commonly be known as the " " doctrine. Select the correct statement.

Separate but equal

Mark passed his license exam on February 10, 2014. What is the initial expiration date of his license?

September 30, 2015 Florida licenses expire on March 31 or September 30, 18 to 24 months after the initial effective date.

"I was wrong not to disclose, but the offer was better than the others. Maybe I can at least negotiate and get a reduced penalty."

Settlement/stipulation

If a landlord refuses to rent an apartment to two single women who live together, this is discrimination on the basis of what federally protected class?

Sex Refusing to rent an apartment to two single women living together is sex discrimination. Familial status refers to the presence of children under 18, and it's worth noting that we don't know what their relationship is—just like the landlord doesn't!

Mariana misrepresented a house to buyer B (she knew the foundation was leaning and said nothing, even suggesting her client save money by not having the house inspected). She was found guilty in the FREC's hearing process and was fined $5,000, as this wasn't her first offense. She was later taken to criminal court for violating section § 475.25(1)(b), which was also a second-degree misdemeanor offense. What penalties could she receive from the criminal court?

She could face additional fines up to $500. There may be additional monetary damages, as determined by the court.

The DBPR has issued a cease and desist order to Malika. Which of the following must be true?

She is unlicensed. The DBPR issues citations to discipline licensees. The cease and desist order applies to unlicensed individuals.

There are a handful of exemptions to the federal fair housing laws. For example, let's say Mrs. Murphy is planning to rent out a room in her home. She's very concerned about the idea of a man in her home, and she thinks a family will be too boisterous, so she wants to rent only to a single young woman. Technically, she's allowed to screen people accordingly. But even in this scenario, she can cross the line into violating fair housing laws. Which of these actions would violate fair housing laws?

She puts an ad on Craigslist that specifies "young, single woman only." She hires a real estate agent to help find a single, white tenant.

Examples of real property include which of the following?

Shelves attached to the wall with brackets Shelves attached with brackets could be considered real property, as they're permanently affixed to the wall.

Elisa and Simone signed an agreement to list Simone's house for sale. After the contract was signed, Simone lost her job, and her father, George, offered to help Simone out by paying Elisa's commission. The buyer's agent, Carl, also reduced his commission by a quarter percent to help Simone out. Who is Elisa's client?

Simone The only person that Elisa has signed an agency agreement with is Simone, so Simone is her only client.

Alison has agreed, in writing, to represent the fiduciary interests of Bruce, who is ready to buy his first home.

Single agency

If the private individual owner doesn't own more than three single-family homes at one time, which exemption from the Fair Housing Act could apply?

Single-family housing sold or rented without the use of a broker Single-family housing sold or rented without the use of a broker is exempt, provided the owner doesn't own more than three single-family homes at one time.

The FREC issues final order

Sixth step

Which of these is the most ethical reason to comply with fair housing laws?

Societal strength in diversity There are many reasons to comply with fair housing laws, and societal strength in diversity is one of the most ethical.

Sarah is the owner of her single-story ranch.

Sole ownership

A simple, yet non-sheltered business structure where the owner has full control and liability.

Sole proprietorship

While explaining the benefits of representation to a potential buyer, the buyer asks if you can help get a good rate on a mortgage. How should you respond?

Sorry, that's outside the scope of my expertise. Sales associates can't give advice on financing—it is outside the scope of their expertise.

Acts as an intermediary, but doesn't make decisions or enter into contracts on the client's behalf.

Special agent

Broker's agent

Special agent

Buyer's agent

Special agent

Most real estate transactions involving a buyer and seller deal with this type of agency.

Special agent

Provides limited authority to act on a client's behalf.

Special agent

Seller's agent

Special agent

Single agent

Special agent

Joint tenancy and tenancy by the entirety are easily confused. There's one factor that makes Madge and Steve tenants by the entirety instead of joint tenants. What is it?

Spouses

When working with an African-American client, Nancy makes an effort to show them homes in primarily African American communities.

Steering

What's the term for the illegal practice of nudging buyers away from or toward a specific area based on the presence or absence of protected class members?

Steering Using an area's demographic make-up in order to steer protected classes away from or to specific neighborhoods is steering, and it's illegal.

Jamie has received a complaint against her for something she knows she did, and she doesn't want an informal hearing. Her best option is to ____________.

Stipulate as to the facts, and waive a hearing Jamie could have requested a formal hearing, but that would cost time and money, and if the facts are indisputable and she doesn't want an informal hearing, she would be better served by admitting her wrongdoing and taking her lumps.

Someone who is working as an agent under another agent

Sub-agent

In many areas of the country, Marcellus shale has become a hot commodity. This type of rock produces gas, which can be mined, stored, and sold. Abe learned that his family farmstead sat over a rich deposit of Marcellus shale. What type of rights does Abe have relative to this shale?

Sub-surface rights Sub-surface rights are the rights to use underground resources, such as shale. These are also called mineral rights.

What is required by a broker to obtain multiple licensure?

Submit an application and fee to the DBPR with the signature of the broker they wish to work under as a broker associate. The broker must submit an application and fee to the DBPR with the signature of the broker they wish to work under as a broker associate in order to obtain a multiple license.

As you learned, if Larry disputed the charges against him, a formal hearing would take place under an administrative law judge employed by the DOAH. Select the three powers of an administrative law judge when they conduct a formal hearing.

Subpoena witness testimony and records Swear in witnesses and take testimonies under oath Submit their findings and a recommended order for penalty to FREC

Along with property ownership, rights are granted to use the land's physical components. Which right allows a property owner to use or sell the underground resources, such as natural gas and minerals?

Subsurface Subsurface rights are those that are underground and include natural gas and minerals. Property owners sometimes sell the subsurface rights, which can also be referred to as mineral rights.

A condominium unit can be owned in severalty, as joint tenants, tenants in common, or tenants by the entirety.

A developer signs a declaration to create a condominium.

Co-op buyers own shares of the corporation.

If one spouse dies, the other automatically becomes sole owner.

If the spouses divorce, the tenancy by the entirety automatically ends and the former spouses become tenants in common.

It is a not-for-profit corporation.

Owning a condominium unit brings fee simple ownership rights.

Shareholders pay a monthly maintenance fee.

The corporation owns land, building, rights and interests.

Window coverings, light fixtures, and mounted TVs are often items that confuse buyers and sellers when differentiating between real and personal property. Identify the three items that are personal property and would move with the seller.

TV and electronics Sofa Rug and table

Ken, a licensee, has published an ad claiming that he can sell homes for 25% more than any of his competitors. The Federal Trade Commission determined this to be a deceptive ad. What might the FTC require Ken to do as a penalty for his deception?

Take out new ads correcting the misinformation in his original ad The FTC may impose informational remedies designed to help consumers understand the deception that occurred. Ken will likely be required to take out new ads to correct the misinformation. He may also be required to include a disclosure in future ads.

Real estate licensees who want to uphold the Fair Housing Act should make a habit out of which of the following actions?

Tell potential clients in their initial meeting that they are committed to upholding fair housing laws. Telling potential clients up front is the best way to avoid finding yourself in a situation where someone expects you to discriminate on their behalf. Promoting diversity is another part of promoting fair housing, and while you're free to share your protected status if you have one, it's not actually relevant.

Which of these pieces of information is an example of full disclosure that is owed by a single agent, but not by a transaction broker?

Telling a buyer you saw a Facebook post in which the sellers admitted they're hoping and praying they get a deal at least $10,000 below list price When acting as a single agent, you must disclose information that is in the financial interest of your client.

Your lease has terminated, but you refuse to leave the property.

Tenancy at sufferance

You sign a lease for an unspecified period of time, which can be terminated at any time by either you or the landlord.

Tenancy at will

What type of ownership has the right of survivorship and requires that the co-owners be married when they take title?

Tenancy by entirety Tenancy by entirety usually applies to married people and involves right of survivorship.

Madge and Steve are married when they purchase a townhome. They take ownership as this type of tenancy which has the right of survivorship. That means if Steve dies, Madge becomes the sole owner of the townhome. Likewise, if Madge dies, Steve becomes sole owner. Neither may pledge his or her interest in the property to another without the other spouse joining in the deed. If Madge and Steve divorce, their tenancy would end automatically by divorce decree, and they would become tenants in common. What type of ownership do Madge and Steve have?

Tenancy by the Entirety

______ is the form of ownership used by married couples in certain states. It includes automatic survivorship rights.

Tenancy by the entirety This is tenancy by the entirety, where each has an undivided interest in the entire property. If one dies, the other owns the entire property. If they divorce, their ownership automatically becomes a tenancy in common.

Jack, Jerry, and Joe are brothers. Their parents die, leaving them the family home. Each holds an undivided interest in the entire property, and there is no right of survivorship. If one of them dies, that brother's share will go to whomever he has stipulated in his will. What ownership type describes Jack, Jerry, and Joe's situation?

Tenancy in common

Jack, Jerry, and Joe purchased a property together. Jack put up half of the money; Joe and Jerry each put up one-quarter of the money. Their ownership is 50%, 25%, and 25%. What type of ownership is this?

Tenancy in common Jack, Jerry, and Joe are tenants in common. Remember that joint tenancy requires that all owners have the same percentage of ownership, and tenancy by entirety usually applies to married people.

Deborah and her mother, Sarah, own a townhouse together. Sarah owns 70% of the house and Deborah owns 30%. What type of ownership is this?

Tenancy in common They are tenants in common. You can use the process of elimination to determine the answer here. The key things are that they are not married (required by tenancy by entirety) and they do not have equal percentages of ownership (required by joint tenancy). Tenancy at will is not a type of ownership, it is a leasehold estate.

In which form of co-ownership is a person's ownership inheritable?

Tenancy in common With tenancy in common, if one owner dies, that person's ownership is inheritable. It doesn't automatically pass to the other owners as it would with joint tenancy.

Kristy needs an agent to act on her behalf to negotiate a lease on an apartment while she finishes grad school. Andre fits the bill.

Tenant's agent

In Florida, unless they specify otherwise, a married couple that purchases property does so as ______.

Tenants by the entirety In Florida, they purchase property as tenants by entirety unless they specify otherwise. If the couple divorces, they become tenants in common.

In Florida, unless they specify otherwise, a married couple that purchases property does so as tenants by the entirety. If the couple divorces, they become ______.

Tenants in common If the couple divorces, they become tenants in common.

The agent renounces the agreement prior to the agreement's expiration date.

Terminates

The client and agent mutually agree to dissolve the relationship.

Terminates

The client revokes the agreement with cause prior to the agreement's expiration date.

Terminates

The client's goals were met during the term of the agency agreement (i.e., the sale is completed).

Terminates

The property is destroyed for any reason, making the property unmarketable.

Terminates

The specified term in the agency agreement expires.

Terminates

Which one of the following types of ownership termination allows each tenant to have a specific, divided portion (partition) of the property exclusively?

Termination of co-ownership by partition Termination of tenancy in common by partition allows each tenant to have a specific, divided portion of the property exclusively. If the property can't be divided, the court may rule that the property be sold and the proceeds divided by the tenants.

How to make a reservation

Testing Locations and Reservations

Which of these statements accurately describes finance- and housing-related legislation?

The Civil Rights Act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on race, color, religion, or national origin. Title VIII of the Civil Rights Act of 1968 made race, color, national origin, and religion protected classes and prohibits housing and housing financing discrimination. The ECOA prohibits discrimination based on any protected class.

James represented a client who believes James was guilty of misrepresentation. The client files a complaint against James. Who or which entity will investigate?

The DBPR The DBPR investigates complaints related to license law violations filed against Florida real estate licensees.

So let's review. Which two things happen when a complaint against a licensee is filed with the DBPR?

The DBPR reviews the complaint and determines if it is authorized to process it. If the situation falls under the FREC's regulations, it's legally sufficient. DBPR conducts an investigation to gather the relevant facts and prepares an investigative report to send to the FREC.

How does the Office of Fair Housing and Equal Opportunity (FHEO) support real estate consumers?

The FHEO provides support for protected classes through the fair housing complaint process. The FHEO guides consumers through the complaint process as well as conducting an investigation.

Since commission members in Florida serve a four-year term, Jan has two and a half years left on her term.

The FREC The FREC has the power to grant or deny applications for real estate licensure.

What's the name of the Florida act that specifies accessibility standards for the disabled?

The Florida Americans with Disability Accessibility Implementation Act The Florida Americans with Disability Accessibility Implementation Act implements the federal ADA standards, and specifies additional accommodation measures based on state law.

Which of these groups is responsible for receiving fair housing complaints?

The Office of Fair Housing and Equal Opportunity

Where can Florida real estate law be found?

The Real Estate Professional Practice Act in the Florida statutes While other state and federal laws do apply, the laws specific to real estate in Florida are set forth in the Florida statutes, such as chapter 475, also known as the Real Estate Professional Practice Act.

Jenson signed a seller's agency agreement with Susan. A few weeks after that, right before closing, a hurricane destroyed the property. What happens to Jenson and Susan's agreement?

The agreement terminates by force of law. Because the property was destroyed, the listing agreement terminates by force of law.

What is Megan's Law?

The broad name given to all state laws that require law enforcement personnel to make information about the location of registered sex offenders publically available

Who must be a signatory of escrow on a brokerage's escrow account?

The broker The broker must be designated as trustee of escrow funds in custodial or trust accounts.

Taking your imagination one step further, the feud between Jack and Joe has boiled over. With no reconciliation in sight, the brothers decide they can no longer be tenants together. Jerry brings his two feuding brothers together and discusses this as an option.

The brothers bring legal action to have the property partitioned.

What is the name of a term which explains the complexity of property ownership rights and how rights for a single property can be "owned" by multiple parties at the same time?

The bundle of rights This describes the bundle of rights. Envision a bundle of sticks and how one stick can be sold while the rest of the bundle remains intact.

In Florida, what's next for licensee candidates who have completed their broker pre-licensing course successfully and have had their broker license application approved?

The candidate needs to pass the real estate broker license examination.

Bart just toured his fourth patio home of the day. To help him remember what he saw in each one, he's making notes about décor, updates, and inclusions that will stay with the property. Which of the following items is NOT considered personal property and would therefore stay with a home?

The chandelier in the foyer The chimenea, area rug, and banker's lamps are all free-standing and easily removed. The chandelier, however, is not a free-standing light fixture and should be considered real property.

What will the initial effective date of your real estate license be?

The date you pass your license exam Your license becomes effective the date you pass your exam. The first expiration date of your license will be set to either March 31 or September 30 to give you 18 to 24 months of licensure.

In what way did the Supreme Court case of Brown vs. Board of Education affect the way fair housing laws are implemented today?

The decision overturned the doctrine of "separate but equal." Brown vs. Board of Education (1954) overturned a previous court decision that allowed racial segregation on the basis of the "separate but equal" doctrine.

A family of four, with children ages six and nine, is denied the opportunity to view an available unit at a community that caters to seniors. Which of the following statements is true?

The federal Fair Housing Act allows an exemption for communities that are designated for senior use. Senior communities that meet HUD's requirements are exempt from some portions of the federal Fair Housing Act.

A license of a broker changing a business address before the change is registered with the DBPR

The license ceases to be in force.

A license that is changed to voluntary inactive by someone who is qualified, but chooses not to work in real estate

The license is ineffective.

A license that has been cancelled by someone retiring from the real estate business`

The license is null and void.

Why might the DBPR issue an emergency suspension order against a licensee?

The licensee is doing something that endangers the public welfare. The DBPR may issue an emergency suspension order if a licensee's actions are found to be endangering the public welfare or are serious enough to warrant the immediate suspension of the subject's license in order to prevent him from continuing to perform any more real estate-related activities until FREC can hold a formal hearing.

What happens to a Florida real estate licensee who is involved in a case and can't pay the judgment amount, and the consumer is awarded money from the Real Estate Recovery Fund?

The licensee's license will be suspended until the amount paid to the victim, plus interest, is paid back. Licensees must pay back any amounts paid out from the account, plus interest. Their license will be suspended until the amount is repaid.

Renee listed her property on March 13. After several months, lots of marketing and effort from the agent, a price adjustment, and several showings but no offers, Renee decides to list the property with another firm. Based on this situation, under which of these conditions can Renee list the property with another firm without breaching her agreement?

The listing agreement expired. If the agreement has expired and Renee has chosen not to extend it, she may list the property with another brokerage firm.

Rex has a reputation in the community for being a bit odd. He lists his ranch for sale and insists on the low price he's placed on it, though his agent tells him it's underpriced. Rex's distant family hears of the potential sale, and they go through the courts to present evidence that Rex isn't legally competent to manage his business affairs; the judge agrees. What's the status of the listing agreement?

The listing agreement is terminated by force of law. Because Rex has been deemed incompetent by the courts, the listing agreement terminates by force of law.

Which of these situations would be exempt from most provisions of the federal Fair Housing Act?

The local Elks club owns a property that's rented only to Elks club members. Housing operated by religious organizations and private clubs that limit occupancy to members are exempt from the provisions of the Fair Housing Act.

Which of the following is a true statement about federal antitrust penalties?

The maximum fine may be increased to twice the gain or loss involved. In some cases, the maximum potential fine may be increased above the Sherman Act maximums to twice the gain or loss involved.

You're a licensee representing a client who's looking to buy a condo. She'd like to buy a unit in a small complex near her work. You discover that the complex does have an available unit, and you contact the broker. You ask if you can show your client the unit, but the broker refuses, saying he can't sell to your client. Under what circumstances would this be allowed under fair housing law? Select the two that apply.

The property is owned by a religious organization or a private club. Residency in the condo complex is restricted to members of the organization that owns the complex.

With both joint tenancy and tenancy by entirety, when one tenant dies, that person's share automatically goes to the other surviving tenant(s). This is known as ______.

The right of survivorship This is the right of survivorship, which is a feature of joint tenancy and tenancy by entirety. Tenancy in common does not include the right of survivorship.

The Commercial Real Estate Sales Lien Act allows brokers to place a lien on ______ in order to collect unpaid commission?

The seller/owner's net profits from the transaction The act allows brokers to place a lien on the net profits from commercial transactions, not the property itself.

When state and federal laws conflict, as they sometimes do with fair housing and/or human rights, which of these statements is true?

The state law may not remove rights granted to citizens under the federal law. Fair housing laws are designed to protect citizens from discrimination. States can't make laws that remove rights granted to citizens by federal law.

Why did the Civil Rights Act of 1866 fail to have an immediate impact on practice?

There was no agency put in place to enforce the laws. There was no agency put in place to enforce the Civil Rights Act of 1866. It would take another 100 years for real change to occur.

Which of the following is true about homesteaded properties in Florida?

They are protected from non-governmental creditors. Florida homesteaded properties are protected from non-governmental creditors. Most creditors cannot pursue liens on homestead properties to force the sale of the home.

What actions can licensees take related to signs?

They can place signs on an owner's property with the owner's written consent. Licensees must receive written permission from property owners prior to placing any signs on the property.

The FREC probable cause determination

Third step

A landlord with a strict "no pets" policy won't rent to a woman who uses a service animal to assist with her epilepsy. Which of the following is a true statement about this situation?

This is discrimination based on disability. Service animals assisting any disabled individual must be allowed in any housing or residential situation. They're not classified as pets, so even if there's a "no pets" policy, it wouldn't apply.

Which of these is an example of antitrust violations common to real estate?

Tie-in arrangements, market allocation agreements, and group boycotting In addition to price fixing, antitrust violations include tie-in arrangements, market allocation agreements, and group boycotting.

Whereas with tenancy in common, only the unity of possession is required, joint tenancy requires several unities. Which of these unities are required for joint tenancy?

Time title interest possession

Hopefully, you never come across a situation where the recovery fund is needed, but let's make sure you understand its purpose. What is the purpose of this fund?

To allow consumers to be paid when they have been awarded a judgment for financial damages against a licensee and exhausted all other remedies to collect the award

What is the purpose of the Florida real estate license law?

To protect the health, safety, and welfare of the public

Which of these is a legal reason for a landlord to enter a rental unit without notice?

To stop a fire or protect the premises A landlord can only enter the property in emergencies when necessary to protect or preserve the premises.

Alison is providing limited representation to Chip, a buyer, and Susie, a seller, in a single transaction.

Transaction brokerage

If Alison is representing a buyer and has not signed a disclosure of her relationship to the buyer, which type of relationship is presumed under Florida law?

Transaction brokerage That's right. Transaction brokerage is the only brokerage relationship that doesn't have to be in writing. That doesn't mean you can't get it in writing as part of a representation agreement, though, and it certainly doesn't mean you're off the hook from discussing your relationship with your customer. Always make sure the buyer or seller you are working with knows what duties you do and do not owe to them.

Alison is providing limited representation to Jeremy, a buyer, and Susie, a seller in a single residential transaction. What role has she taken on?

Transaction brokerage The only authorized brokerage relationship in Florida that allows a licensee to represent the buyer and the seller in a single sale (albeit minimally) is transaction brokerage.

Aaron doesn't fully represent either party in the transaction. He's just there to facilitate.

Transactional broker

A broker has 15 days to notify the FREC of a good-faith doubt of the completion and disbursement of escrow funds.

True

A customer could be the other party in the transaction—the person whom you don't represent.

True

A designated sales associate acts as a single agent.

True

A license may be suspended for violation of any unlawful act in Florida statute.

True

A licensee still has to maintain renewal requirements, even if their license is suspended.

True

A passing score is 75%.

True

A real estate licensee acting as a property manager for Ruby must handle rents and deposits the same way as escrow and trust funds.

True

A real estate licensee works with customers but doesn't represent them.

True

A requirement to respond to the formal complaint within 21 days

True

All deposits or other escrows accepted by a broker must be deposited by the third business day following receipt.

True

Amy doesn't hold a brokers license. Therefore, she can't receive direct compensation from buyers or seller for her transactions.

True

An Election of Rights form to fill out and return

True

An agent can only represent a client.

True

An outline of the allegations and charges against him

True

Audit any escrow accounts that are involved

True

Audrey is entitled to the return of her security deposit within 15 days of vacating the property.

True

Before a licensee may act as a fiduciary at a showing, the single agent notice must be fully explained and disclosed in writing.

True

Bill, a managing broker, gets Sven, a general partner, to register with the DBPR since he doesn't have a real estate license.

True

Brokers may, if instructed to by the parties, hold a check and not deposit it pending offer acceptance.

True

Brokers must keep records of all funds deposited into the escrow account which indicate the date and from whom the broker received the funds, the date deposited, the date any withdrawals are made, and other necessary information.

True

Can't be based on the success of a transaction

True

Can't exceed the market value of the services or goods provided

True

Consumers have two years to seek payment from the account.

True

Consumers must qualify to be paid from the fund. Use your resources to determine which of the following items would allow the consumer to qualify. Select all that apply. The consumer must apply within two years of the violation or knowledge of the violation, but no longer than four years after the violation.

True

Consumers must submit an application to receive payment from the recovery fund.

True

Determine which of these statements about the landlord's responsibility are true and which are false. Ruby needs to make sure the roof and property are structurally sound.

True

Dmitri is still considered a resident of Florida for real estate licensing purposes.

True

Dmitri needs to notify the Florida Real Estate Commission of his current mailing address within 60 days of moving.

True

Does not need a board of directors.

True

Eric has to refund 75% of the fee he collected from the prospective tenant

True

Fees paid by an SSP for actual services must be for a flat dollar amount and not based on a percentage.

True

Forward the complaint to Larry for a written response

True

If payment is made from the recovery fund, the licensee must pay back the amount, plus interest.

True

If you receive a cease-and-desist order, you may be required to provide substantiation for any claims in future ads.

True

If you've received a cease-and-desist order, you may be required to periodically report to the FTC about claims made in new ads.

True

Individuals aren't allowed to perform real estate activities for another person for any kind of payment unless they have a real estate license.

True

Investigate the complaint without notifying Larry of either the complaint or the investigation

True

It's published and effective after 30 days.

True

Janice has completed her CE requirements and signed her application to attest that she has done so. She has applied for renewal and paid the renewal fee. She is all set to renew her license.

True

Kickbacks are defined as real estate professionals receiving any item of value for referring business to SSPs.

True

Kristy can apply for a Florida real estate license as long as she complies with the same rules as resident applicants in Florida.

True

Larry may appear in person, with or without an attorney, to make any final arguments.

True

Larry's attorney may appear in place of Larry.

True

Let's say you're the boss, starting your own firm. Determine whether the requirements for a business entity to register are true or false. Register the business under its business name.

True

Let's start off with the basics. What exactly is the Florida Deceptive and Unfair Trade Practices Act? Identify the options that are true of this little FTC act. Select all that apply. Simplifies, clarifies, and modernizes Florida's consumer protection laws

True

Licensees must not commingle funds with their own funds or property or that of another person.

True

Makes state and federal consumer protection laws consistent

True

May interview and take depositions from any witnesses or involved parties in the complaint

True

Must be disclosed to the client

True

Must be for a flat dollar amount not based on a percentage

True

Owners can participate directly in the management of the company.

True

Owners participate in the brokerage's profits and losses without taxation to the company.

True

Panels are comprised of at least two individuals.

True

Payments are limited to $50,000 per transaction and a maximum of $150,000 per licensee.

True

Penalties for violating RESPA could include injunction relief, fines up to three times the amount of the original fee, or even imprisonment.

True

Protects consumers and other businesses from unfair trade practices

True

Real estate contracts include contract negotiation and mandatory disclosures.

True

Real estate professionals may receive compensation (items of value) from an SSP for performing actual services.

True

Residential transactions can't use the designated sales associate method of representation.

True

Ruby has to make sure there are no bugs and provide for rodent control.

True

Ruby may make a claim against Audrey's security deposit for up to 30 days after Audrey has vacated the property.

True

Ruby needs to fix the oven that's been acting up to match her description of a working stove oven in the rental agreement.

True

Send a notice of non-compliance to Larry

True

She received tickets to the show in exchange for referring business.

True

She violated Section 8 of RESPA.

True

Six percent of the questions on the examination will be about license law and qualifications for licensure.

True

Subpoena records or information that may be relevant

True

The account is funded through new and renewed license fees when the fund falls below $500,000, and collection stops once it reaches $1 million.

True

The consumer isn't the spouse of the licensee.

True

The consumer's complaint is against an individual licensee, and not a brokerage or company

True

The exam consists of multiple choice questions.

True

The final order notice must include information about Larry's right to appeal the order.

True

The financial penalty for a cease-and-desist order includes fines up to $41,484 per ad, per day if you violate the law in the future.

True

The licensee has filed for bankruptcy and the consumer has demonstrated an unsuccessful attempt to obtain the judgment awarded through bankruptcy court.

True

The listing broker provides the escrow agent with a Broker Compensation agreement or statement, which shows how much each broker should receive at closing.

True

The primary issue was whether public schools should be allowed to be segregated.

True

The result overturned the Plessy vs. Ferguson precedent.

True

The seller and buyer agents are paid their full commissions with separate cashier's checks, one for the seller's broker and one for the buyer's cooperating brokerage, at closing.

True

The single agent notice may be included within a listing or buyer representation agreement.

True

Would need to replace the licensed broker of the company within 14 days should the position become vacant.

True

The Federal Trade Commission Act includes rules to encourage what four kinds of advertising?

Truthful Non-deceptive Evidence-based Fair

How many years of experience must a licensed sales associate in Florida have before applying for a broker license?

Two

To begin your real estate career, you must affiliate with a broker for a certain length of time. For how many years must a sponsoring broker supervise, train, and be responsible for you?

Two

You need to renew your salesperson license every _____ years.

Two

A year and a half ago, Jan was appointed to the Florida Real Estate Commission. How much longer does she have left on her term?

Two and a half Since commission members in Florida serve a four-year term, Jan has two and a half years left on her term.

Never been licensed

Two consumer members

What's the minimum amount of real estate industry experience that Kirk, a sales associate licensee in Kissimmee, must have to qualify for a broker's license?

Two years

You interpret a title report for your clients.

Unauthorized practice of law

Causes or is likely to cause substantial consumer injury that couldn't be reasonably avoided and that isn't outweighed by the benefits

Unfair ad

So what exactly does the act prevent? Select all that apply.

Unfair methods of competition Unconscionable acts or practices Unfair or deceptive acts or practices

A seller tells Chris a crack in the wall is not an indication of foundation issues. The agent shares this with the buyer, who purchases the home. It turns out there are foundation problems.

Unintentional

Making an inadvertent misstatement

Unintentional

You submit your client's purchase offer, then go on vacation, missing the deadline to respond to a counter-offer.

Untrustworthiness

Janet and Frank are living the dream. They have purchased a home in Florida, which is now their primary residence, for $225,000. They were excited to hear that they can homestead their property in order to exempt a portion of it from property tax. If all goes well and they qualify, what is the amount they will be able to exempt from property taxes?

Up to $50,000

Which two of these are duties the transaction broker and single agent have in common?

Use skill, care, and diligence Present all overs and counter-offers

The initial application fee and the unlicensed activity fee are waived

Veterans

A broker keeps a buyer's $1,000 check at the office instead of depositing it into an escrow account.

Violation

A licensee shares a commission with or paid a fee to a person not properly licensed.

Violation

Blanca is in the process of obtaining her broker license. She has one year of experience as a salesperson, but her application says it's two years.

Violation

Tonya gives her unlicensed assistant a list of duties to perform, some of which are activities that require a license.

Violation

Let's say you decide not to engage in real estate business. You can submit a form and request which status for your license?

Voluntary Inactive

Select the status in which your first Florida real estate license will be issued.

Voluntary Inactive

Evan has an active real estate license in Florida but has decided not to practice real estate for a while. What license status may he request from the DBPR?

Voluntary inactive Since Evan is qualified to perform real estate services, but chooses not to, he may request a voluntary inactive status. He may not perform real estate services with an inactive license, but at any time, provided he's met all other qualifications, Evan can request that his license be placed on active status again.

"I'm so tired of this. That woman has caused me nothing but stress! I'm done with this career. I don't care if I ever sell a house again!"

Voluntary relinquishment

Based on the video, the land is worthless to the farmer without this specific stick in the bundle.

Water rights

The rivalry between Jack and Joe seems so petty in light of the recent passing of Joe (not at the hands of Jack). Who receives Joe's share?

Whatever is stipulated in the will

When is licensure obtained?

When an applicant passes the state license exam

A buyer client must give written consent for a licensee to transition to transaction broker _______.

When the buyer is in a single-agency relationship with the licensee. This notice is used when a client wishes to change the relationship from single agency to transaction brokerage. This is done to explain the difference in duties owed to them by the agent.

An ineffective license exists but the licensee can't use it. A license becomes ineffective in what situation?

When the license is voluntarily or involuntarily inactive A license is ineffective when a license is inactive or suspended. The licensee can't use it until the license is returned to an active status.

Under certain circumstances, Cara could receive promotional or educational materials from her friend, Ginger. When would this be acceptable? Select all that apply.

When the materials aren't given in exchange for her referring business to Ginger When the materials do not defray expenses she would normally have to pay

What conditions must be met to avoid violating RESPA when receiving promotional or educational materials from a mortgage company or other settlement service provider?

When they are not given in exchange for a referral and do not defray any cost you would normally have to pay. Promotional or educational materials can be received when they are not in exchange for a referral and do not defray any cost you would normally have to pay.

When is an administrative fee acceptable, according to RESPA?

When you are the only one receiving the fee and have actually performed some service in addition to the one provided by the SSP. Administrative fees are only acceptable if you are the only one receiving the fee and you have actually performed some service in addition to the one provided by the SSP.

Here's a sticky topic for you: administrative fees. In the course of doing business, you've decided to charge a small fee for handling clients who want you to find a settlement service provider for them. When is it okay to charge such a fee? Select all that apply.

When you have actually performed a service in addition to the one provided by the SSP When you are the only one receiving payment of the fee

Marissa, a new licensee, has some questions. Which of these questions can the Association of REALTORS® in her state help her answer?

Where can I go to find some marketing data on my area so I can advertise more effectively?

Alison was the listing agent on Sheldon's property. Brenda put in an offer on the property contingent upon a home inspection, which found that the gas furnace needed to be replaced, as it was producing carbon monoxide above the acceptable level. Brenda decided not to purchase the property. Alison told Sheldon that the furnace condition must be disclosed to future prospective buyers. Sheldon disagreed and told Alison to lie about the condition. However, Alison stated she couldn't do this, and the contract was terminated. A short time later, Alison noticed that Sheldon's property was back on the market. Curious, Alison contacted the new listing agent to find out if a new furnace was installed. It wasn't, and now Sheldon is upset that Alison is inquiring about the condition of the property and broke confidentiality. What do you think?

While it's true that Alison's duty of confidentiality to Sheldon lives on forever, a property's material defects aren't considered "confidential information." Alison behaved ethically.

You told a buyer that a property was zoned commercial when you knew it wasn't.

Willful misrepresentation

What's the difference between reversionary interest and remainder interest in a property?

With reversionary interest, the property reverts to the owner after the death of the life tenant. With remainder interest, the title to the property goes to a named third party following the death of the life tenant. With reversionary interest, the property reverts to the owner after a life tenancy, and with remainder interest, the title goes to the person remaining after the death of the life tenant. Note the similarity of words "reversionary" and "revert."

Performing a market analysis to determine a market value range for a home

Within Expertise This is within a real estate licensee's expertise.

Searching for property on the MLS

Within Expertise This is within a real estate licensee's expertise.

You decide to help negotiate the sale price of a buddy's place, even though you don't yet have a license. After the sale, he pays you $50 in appreciation for your efforts. Why would this be illegal?

Without a license, you can't accept compensation for real estate services performed for others. Any real estate activity for another for a fee, commission, or other valuable consideration of any amount requires a license.

You plan to switch to a new broker. You start taking on seller clients in your new firm's name before the switch.

Working for wrong broker

What legal document must be delivered to the sheriff before a tenant may be forcibly removed from a rental?

Writ of possession When a tenant refuses to vacate the premises after being lawfully evicted, the judge may issue a writ of possession, which the landlord must then deliver to the sheriff.

Unauthorized practice of law and acting outside the scope of your expertise are similar issues. Which of these circumstances specifically relates to unauthorized practice of law?

Writing contract addenda or additional provisions that cover unfamiliar circumstances All of these are acting outside the scope of your license. Writing contract addenda or additional provisions that cover unusual circumstances falls into the category of unauthorized practice of law, since a licensed attorney should do that.

Agreement can take several forms. Can any of these types of agreements lead to an antitrust violation? Written

Yes

Are at least 90% of expenses are for the benefit of tenant-shareholders?

Yes

Does the condop follow the 80/20 rule?

Yes

Group boycotts

Yes

Inferred

Yes

Is at least 80% of the total square footage used for residential facilities and use?

Yes

Larry is pretty nervous about what the DBPR will find, and worries that he may have his license suspended without a hearing or judgment from the FREC. Does Larry have reason to be concerned about losing his license without a hearing?

Yes

Let's look at some specific responsibilities to determine the extent of the FREC's powers. Which three items are a responsibility? Establish fees

Yes

Let's look at some specific responsibilities to determine the extent of the FREC's powers. Which three items are a responsibility? Foster the education of real estate licensees

Yes

Let's look at some specific responsibilities to determine the extent of the FREC's powers. Which three items are a responsibility? Suspend or revoke real estate licenses

Yes

LuAnn is an honest and truthful 21-year-old with her high school diploma. She's successfully completed the FREC-approved 63-hour Course 1 for her pre-licensing requirement. She's submitted her application with fingerprints and the fee, and has passed the Florida sales associate license exam. Is she qualified to obtain a real estate sale associate license?

Yes

Market allocation agreements

Yes

Met Realty and Sox Properties agreed to begin charging commissions of 6% on the first of next month.

Yes

Now imagine the "happenin' condo" is too much for Sidney. She's looking for something a bit more serene and decides to sell her share of ownership to Rita, who is also ditching the confines of Crusty Acres Retirement Center. Can she do this?

Yes

Price fixing

Yes

The complaint accuses Larry of violating a DBPR rule.

Yes

The complaint accuses Larry of violating a FREC rule.

Yes

The complaint accuses Larry of violating a Florida statute.

Yes

Tie-in arrangements

Yes

Verbal

Yes

Carla is a real estate salesperson with Elite Properties. The brokerage offered bonuses to agents who closed transactions on Elite's listings. Carla represented Dennis, who required an accessible home with a pool or with room to build a pool. Carla showed Dennis several properties in the Falcon Ranch neighborhood. All of the properties were Elite's listings, and one had an outdoor pool. Dennis decided to put in an offer on this property that was accepted. Soon after the transaction closed, however, Dennis learned there was a similar property in the same neighborhood that had an indoor pool. This property would've been a better option for the family, but it was not an Elite Properties listing. Carla knew this property was available, and that it was better suited for her client but didn't show it to Dennis since it wasn't one of Elite's listings. Did she commit a violation?

Yes She did! Carla knew a pool was essential to Dennis' decision about a property to purchase. Upon questioning from Dennis's attorney, Carla admitted that her decision to not show the property with the indoor pool was partly based on the fact that it was not Elite's listing and offered no bonus to Carla. She put her interests ahead of her client's—a big no-no and a big violation.

Your client, George, has a serious complaint against another licensee, who he believes has violated real estate law. How should you advise George?

"File a complaint with the DBPR." The buck stops with the DBPR.

This time, Thad tossed out an example that's the most difficult for new licensees. "I know you technically can't show me just the white neighborhoods, but I'm paying for your help. My time is valuable, and I don't want to waste it looking at houses in neighborhoods I wouldn't live in. If you can't screen properties for me the way I want you to, I'll find someone who can." Which response is the appropriate one?

"I'm sorry that you feel that way. If I can't change your mind, I think we should terminate our agreement."

Thad pretended to be a client. "We're looking for a three-bed, two-bath. We have two little kids, so we want to make sure we're in a good neighborhood—somewhere safe, where we'll find a lot of good families and neighbor kids that we'd want our children to play with." Nancy tried the following responses, but Thad said they were all somewhat discriminatory except ... which one?

"If you provide me with specific neighborhood names, I can certainly look for homes in those areas. You can learn about the different neighborhoods in the area at neighborhoodscout.com."

How would you respond if your seller makes the following request? "We've lived here 10 years and love our neighbors. They're really concerned about the changes happening to the blocks around us, so we want to be careful about who we sell this house to. You know what we mean. You'll help us find the 'right' kind of buyer, won't you?"

"It would be illegal to limit the search based on race or religion or anything like that, but I promise I'll find you the most qualified buyer I can, and we'll sell this house for the highest price possible." As a licensee, you need to market your listings to all potential buyers and help the seller get the best price.

Now Thad pretended to be a seller instead of a buyer. "We've lived here 10 years and love our neighbors. They're really concerned about the changes happening on the blocks around us. We want to be careful about who we sell this house to, as a consideration to the friends we're leaving behind. You know what we mean? You'll help us find the 'right' kind of buyer, won't you?" Nancy stumbled with this one, as well. Eventually, she found a suitable response. Which one is it?

"It would be illegal to limit the search based on race, religion, or anything like that, but I promise I'll find you the most qualified buyer I can, and we'll sell this house for the highest price possible."

Jones vs. Alfred H. Mayer Co. addressed a specific mindset that you'll still see today. Which one of the following statements is legally incorrect, based on the verdict of Jones vs. Mayer? Note that they are all discriminatory, but only one relates to Jones vs. Mayer.

"It's my property. I have the right to choose who I sell it to, and that means I can discriminate against whomever I want."

Which one of Gerry's statements to a client crosses the line into unauthorized practice of law?

"Most couples take ownership of property as joint tenants, so that's what I'd advise." Gerry crossed the line when he tried to interpret the impact of his clients' decision about how to take ownership.

Let's try a more difficult question. What if you were in an escrow dispute and did everything you could to ensure the funds were appropriately distributed according to an escrow disbursement order (EDO) from the FREC itself, but later, the customer came back and took you to court and required you to pay damages. Could you make a claim against the fund for recovery then? Think about it, and then decide which action you would take by selecting from the listed options.

"Yes, I could still make a claim."

Ashley is a buyer's agent representing Tom and Kate. She showed them several properties, but one really piqued their interest. They scheduled a second showing, and a third, and a fourth. Ashley called Tom and Kate after the final showing to understand where they stood on the property. Tom expressed some concern about the price. Rumor had it that Tom's company might relocate him to a new area, and he was nervous that this might mean taking a loss if he had to turn around and sell the home. Ashley provided Tom and Kate with a written guarantee to try to reassure them about the property. In the letter, she said, "Our office guarantees to get your money out of it for you any time in the next year if you should need to sell." Tom and Kate purchased the property. Before the year was up, Tom and Kate called Ashley because he was being relocated. Ashley agreed to list the property for the same amount at which Tom and Kate purchased the home, but there were no offers. When Ashley discussed lowering the list price due to current market conditions, Tom and Kate filed a complaint of misrepresentation. Do Tom and Kate have a case?

Yes They sure do. Ashley's written guarantee to Tom and Kate was the issue in this case. Ashley did engage in misrepresentation.

Let's say you own a two-story commercial building in the heart of the city. A large balloon payment is coming due, you have no money, and you're about to lose your building. Across the street from you is a brand new luxury condominium complex in an early phase of completion. You know that once that building is complete, property values will increase. But you can't hold out for long. You may have to sell out to another developer to pay off that loan. It's just not fair. If only you could find a way to raise some cash. Can you think of anything? Click on the opportunity right before your eyes! Hint: You can always go back a slide and watch the video if you need some ideas.

Yes! You could consider selling your air rights. These rights may be especially appealing to a developer who could build more floors of commercial space (if zoning ordinances and other laws permit). These rights may also be appealing to the luxury condominium builder or residents who may be interested in preserving any views from the complex.

Mary is preparing a purchase offer for her buyer client. It's a pretty standard offer: a little below list price, with the seller paying a little toward the buyer's closing costs. Mary fills in the blanks on a standard form used in her brokerage firm based on the current situation. Is this okay?

Yes, Mary can use the standard forms that her brokerage uses (assuming these forms were originally created or approved by an attorney). Licensees can use standard forms provided by their brokerage firm without involving an attorney.

Ricky is working for Matt, a buyer client, who is interested in a property at which the listing agent offers compensation to cooperating agents. The listing agent has offered Ricky or any cooperating agent additional compensation if the transaction closes within 40 days. Is this ethical?

Yes, but only if all of the involved parties have full knowledge and provide consent. Licensees can only accept compensation from more than one party with the full knowledge and consent of all involved parties. That compensation must also go through the brokerage firm.

Today, just a year later, the condo is back on the market with another listing agent. The Radcliffs are renewing their vows and have decided to celebrate their new commitment to one another with a new home. You're working exclusively with a buyer client who's also in love (with the condo, but not with the price). You reassure your buyer that there's room to negotiate. You tell him the property is paid off and the sellers are more concerned with selling fast than making a profit. Did you breach your duties to the Radcliffs?

Yes. You broke the sellers' confidentiality. Right! Confidentiality doesn't end when the relationship does, and other relationships don't supersede this one. The Radcliffs could take action against you if they believe your breach of confidentiality was detrimental to them.

What is the maximum outcome if you're convicted of having committed a serious violation and your broker is found to have knowledge of it?

You and the broker may both be fined, and you may both have your licenses suspended or revoked. For serious violations when your broker has knowledge of the violation, both you and the broker may be fined, and both of you may have your licenses suspended or revoked.

You recently listed an historic home more than 100 years old, which was the site of a suicide many years ago. A spirit is believed to roam the grounds, but the current owner doesn't want this shared with prospective buyers. Which action best demonstrates good faith?

You follow the owner's wishes because the suicide and haunting don't need to be disclosed. Good faith means properly disclosing material facts. Usually, you don't need to disclose ghosts, suicides, or homicides related to the property unless the prospective buyer asks you directly about them.

In Buchanan vs. Warley, Warley had planned to buy Buchanan's house. When Warley learned that he wouldn't be allowed to live there because of a city ordinance banning blacks from moving to a block where the majority of residents were white, he backed out of the sale. The seller sued him for backing out, but Warley said the city ordinance was a valid reason to not complete the sale. Buchanan then fought the city ordinance, claiming it violated the 14th Amendment. The Supreme Court agreed with Buchanan. The city ordinance was not constitutional.

city ordinance block sale reason 14th Supreme Court

If a civil penalty is imposed for deceptive advertising, the monetary penalty range can vary based upon the severity of the violation. It could even be in the millions of dollars. It may even include full or partial refunds to any consumer who bought the product.

civil penalty severity of the violation millions full or partial refunds

Before beginning development of a condominium building, the developer must record a declaration of condominium in the county records where the property will be located. Before there can be an association, there must be a document called the articles of incorporation. This creates the homeowners association, a non-profit organization responsible for operating the developed property. The bylaws contain the rules that condominium owners must follow. The developer must also supply an estimated operating budget, which is used to determine the monthly assessment (condo association or HOA) fees paid by unit owners.

declaration articles homewoners bylaws budget

At the beginning of any brokerage relationship, the broker should disclose their right to place a lien, citing the appropriate Florida statute. A broker may place a lien on a residential property if the broker includes the right in the brokerage relationship agreement. The Commercial Real Estate Sales Commission Lien Act gives brokers the right to place a lien on the net profits of a commercial property owner from a sale for unpaid commission but not a lien on the property itself. The Commercial Real Estate Leasing Commission Lien Act allows the broker to lien a landlord's portion of a leased property or a tenant's portion of the leasehold estate. A broker can still try to reclaim unpaid commissions without establishing this right, but the broker must file a claim in court and win a judgment before placing a lien.

disclose their right to place a lien brokerage relationship agreement Sales Commission Lien Act Leasing Commission Lien Act file a claim in court

The most complete form of ownership and bundle of rights in real property is known as a fee simple estate. A life estate is also a freehold estate, but it doesn't convey the entire bundle of rights because the owner holds the estate for only their lifetime. When the owner of a life estate dies and the property reverts to the original grantor (owner), it is known as an estate in reversion. If, instead of reverting to the original owner, the property goes to a third party, that person owns a remainderman estate.

fee simple life estate freehold lifetime reversion remainderman

It's important to comply with fair housing laws because your personal reputation and the reputation of your industry are involved. Educating your clients about fair housing laws helps them minimize their risks, as well. Fair housing affects your community and impacts society as a whole because the socio-economic significance goes beyond limiting a person's individual choice of where to live. Oh, and of course, the penalties for violating fair housing laws can be severe.

laws reputation industry risks community violating

Ruby's first step should be to give notice of eviction to her tenant and allow the tenant the appropriate amount of time to get caught up on rent. If the tenant fails to do so within the three-day time limit, Ruby would then go to the court clerk to file a complaint for eviction and the tenant would be allowed five days to respond to the notice. Depending on whether the tenant responds to the notice, the judge will issue a final order to determine who gets possession of the property. If the landlord wins, then the court clerk will issue a writ of possession and give the tenant 24 hours' notice to vacate the premises before the sheriff will remove the tenant from the property. Any unpaid rent will be owed to the landlord and becomes a lien on the tenant's personal property, except for beds, bedclothes, and clothing.

notice of eviction complaint for eviction five days final order writ of possession lien

Can you keep the laws straight? Choose the appropriate protected class for each sentence. The Civil Rights Act of 1866 was the first step in reducing discrimination based on race and color. The Fair Housing Act of 1968 prohibited discrimination based on race, color, national origin, and religion. The Housing and Community Development Act added sex to the list of protected classes. In 1988, the Fair Housing Amendments Act extended the protection to cover familial status and disability. The Housing for Older Persons Act of 1995 provided exceptions for housing designed just for seniors.

race and color race, color, national origin, and religion sex familial status and disability seniors

Refusing to rent or sell housing Refusing to negotiate for housing Making housing unavailable Setting different terms, conditions, or privileges for sale or rental of a dwelling Falsely denying that housing is available for inspection, sale, or rental For profit, persuading owners to sell or rent, known as blockbusting

sell housing unavailable terms denying blockbusting

Select the correct answer for each blank to complete the story. Let's do a quick recap of the timeline of events so far. Larry's case was investigated and sent to the FREC to determine probable cause by a panel of at least two current or former members of the FREC. The panel had 15 days to request additional information and 30 days to make a determination after receiving the investigative report or final information from the DBPR. The DBPR has 10 days to make its own determination after this point, or to override the FREC's decision. After the formal complaint is issued, the licensee has 21 days to respond by selecting one of the three options on the Election of Rights form, or by voluntarily relinquishing their license for permanent revocation.

two 15 30 10 21

It's important to remember that any violations you commit as a real estate licensee are also shared by your supervising broker and could potentially impact the licenses of other licensees who work at your brokerage.

violations supervising broker licensees

What is the impact of redlining? Choose the appropriate text for each blank to complete the story. Redlining has a number of harmful impacts. In a healthy market, lenders provide mortgages for wealthy buyers to buy new homes. Those wealthy buyers leave middle-priced homes behind. Middle-income buyers purchase them, and leave low-priced homes behind. Lower-income buyers purchase those homes. This keeps a range of housing prices available. When lenders refuse to loan on properties in middle- and lower-income areas due to redlining or refuse to lend to entire races, this blocks the process of filtering down.

wealthy new homes Middle-income housing prices

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