EXAM 1 (chapters 1-5)
Federal and state statutes, as well as large body of court decisions are generally referred to as
common law
A broker charges a homeowner $50 for a comparative market analysis (CMA). This is allowed as long as the broker does not represent the CMA as an ____
appraisal
The homestead tax exemption is deducted from the...
assessed value of a property
Who oversees a group of properties to achieve the investment objectives of the owners?
asset manager
Property type specialization includes: (3)
residential, commercial, investment
The term "commercial property" generally means
retail, office and industrial properties
A woman received her Florida sales associate's license last year. Which requirement must she complete to become a licensed real estate broker?
45-hour post-licensing course
The term "caveat emptor" means
let the buyer beware
A property seller empowers an agent to market and sell a property on his behalf. This is an example of: ___ agency
special agency
To cover banking fees, a brokers is allowed to deposit personal or business funds into a sales escrow account in the amount of
$1,000
If a licensee changes employing brokers, he or she must notify the FREC of the change within ___
10 days
After completing post-licensing requirements, how many hours of continuing education must all real estate licensees complete every 2 years?
14
An involuntary inactive license will automatically become void without further action by the FREC or the DBPR after
2 years
Records of each applicant's examination are to be kept for...
2 years
A broker receives conflicting demands concerning a roof inspection report. Both the buyer and seller claim the earnest money deposit. The broker must institute one of the statutory settlement procedures within ___ days
30
How many hours of post-license education must a broker complete?
60
How long is broker prelicense course?
72 hours
Applicants must pass the state exam with a score of __% or higher
75%
What can happen if a licensee charges a fee for a list of rental properties and the purchaser of the list does not obtain a rental?
75% refund
An applicant must be approved or denied within how many days of application receipt?
90
What is an advisory service provider?
A broker who renders real estate services for a fee.
A principal instructs an agent to market a property only to families on the north side of town. The agent refuses to comply. In this case, a. the agent has violated fiduciary duty. b. the agent has not violated fiduciary duty. c. the agent is liable for breaching the listing terms. d. the agent should obey the instruction to salvage the listing.
B
The DBPR is governed by
F.S. Chapter 120
Sarah is a sales associate who handled the sale of John's property. John paid the commission to Sarah's employing broker, Stan, but Stan never paid Sarah her share of the commission. What can Sarah do?
Sarah can sue Stan
Sally's first sales associate license was issued on March 15,2019. When will her license expire?
September 30, 2020
What type of construction involves building without the commitment of a buyer?
Spec homes
A sales associate receives a binder deposit from a buyer on Monday. By the end of business on what day of the week must the broker deposit the funds into the escrow account?
Thursday
The type of homes that displays the choices of floor plans and designs, often represented by one or more models homes.
Tract homes
Which of the following entities may register as a brokerage? Corporation sole Business trust Unincorporated association Limited partnership
Unincorporated association
Which valuation product requires the services of a licensed or certified appraiser? a. Appraisal assignment to originate a federally related loan b. Appraisal assignment to value the estate of a deceased individual. c. Broker price opinion for a relocation company. d. Comparative market analysis to assist seller with a listing price.
a
An agent owes customers several duties. These may be best described as a. proper disclosure, reasonable care, and honesty. b. obedience, confidentiality, and accounting. c. diligence, care, and loyalty. d. honesty, diligence, and skill.
a
The following statements are true with respect to the members of the Florida Real Estate Commission EXCEPT that they a. are DBPR employees. b. are accountable to the governor for proper performance. c. are a mix of real estate practitioners and consumer members. d. depend on the DRE for their administrative assistance.
a
Which of the following professionals involved in the real estate business are most concerned about procuring buyers and sellers for clients? a. brokers and agents b. property managers c. corporate real estate managers d. appraisers
a
Which type of business organization may NOT be licensed as a real estate broker? a. joint venture b. sole proprietorship c. limited liability partnership d. nonprofit corporation
a
Stan has a single agent relationship with Diane. Diane is now Stan's
client
Amy from ABC Realty locates a buyer for one of XYZ Realty's listings. In this instance, the Amy is acting as a. a single agent. b. a dual agent. c. a subagent. d. a secret agent.
a subagent
Florida provides reciprocity licensure for
active duty military personnel who are licensed in another state
Which statement is TRUE regarding the use of the term REALTOR®? a. All real estate agents are REALTOR®. b. All REALTOR® are members or the National Association of REALTOR®. c. The terms real estate licensee and REALTOR® mean the same thing. d. The state authorizes real estate agents to use the title REALTOR®.
b
Advertising that does not include the broker's licensed name is
blind advertising
Selecting a limited geographical area in which a real estate agent develops special expertise is
farming
what way of specializing is common in the real estate brokerage business? by...
by geography
A Florida licensed attorney is exempt from what education requirement? a. State license exam b. Broker pre-license course c. Sales associate pre-license course d. Sales associate post-license course
c
A real estate broker (and the sales and broker associates) are obligated to which duty in all three brokerage relationships? a. Loyalty. b. Full disclosure. c. Deal honestly and fairly. d. Perform additional duties that area mutually agreed to.
c
John Anderson is a licensed real estate sales associate. Under which name may her register and be licensed? a. Complete Real Estate Sales Services b. John Anderson Brokerage c. John Anderson, LLC d. John Anderson and Partners
c
Which of the following does NOT investigate complaints against licensees? a. Florida Real Estate Commission b. Division of Real Estate c. Divisions of Professions d. Department of Business and Professional Regulation
c
A broker's obligations to consumers with whom the brokerage firm has no brokerage relationship include the duty of a. full disclosure. b. limited confidentiality. c. loyalty. d. accounting for all funds.
d
Functions of a real estate professional: (3)
demolition creation & improvements transfer
What is a general requirement to obtain a real estate license in Florida?
disclose any criminal history
Agent Bob, who works for Broker Bill, obtains a listing as a single agent. Bill's other agent, Sue locates a buyer for Bob's listing. Broker Bill in this instance is a...
dual agent
A principal discloses that she would sell a property for $375,000. During the listing period, the house is marketed for $425,000. No offers come in, and the listing expires. Two weeks later, the agent grumbles to a customer that the seller would have sold for less than the listed price. This is an example of a violation of the ___
duty of confidentiality
What is an appraisal?
estimation of a home's current market value
The DBPR is under the ___ of the state government and located in ___
executive branch, Tallahassee
T/F: Applicants who fail the state license exam may retake it only once within a year of failing it.
false
A broker prelicense course includes the ____ of real estate appraising
fundamentals
A principal empowers an agent to conduct the ongoing activities of one of her business enterprises. This is an example of ___ agency
general
Audrey wants to take a vacation. To do so, she authorizes an agent to conduct the operations of one of her business enterprises. The kind of agency she has established is
general
What kind of relationship is an employing broker to a broker associates
general agency
Members of FREC are appointed by the ___ and confirmed by the ___
governor state senate
A Florida resident is someone who
has resided in Florida continuously for 4 or more months within the previous year
Under what circumstances may prelicense class hours be made up?
if the student misses more than 8 hours due to illness
An owner's agent is showing a buyer an apartment building. The buyer notices water stains on the ceiling, and informs the agent. The agent's best course of action is to
inform the seller
A real estate licensee may be paid a fee for referring buyers to a title company, provided the buyer is _____ of the facts concerning the fee
informed in advance
The DBPR is required by law to waive which fee(s) for qualified low-income license applicants?
initial license fee
An escrow conflict resolution procedure that places the funds into a court's depository and removes the broker from the dispute is called
interpleader action
Condemnation of property or death will make an agency relationship become ___
involuntarily terminated
A sales associate is employed by a broker. The broker's license is suspended. This action causes the sales associate's license to be place in ___
involuntary active status
Shirley is the broker of ABC Realty as well as Sunshine Realty. This is legally possible by Shirley having
multiple licenses
An agent fails to discover flood marks on the walls in the basement of a property. The agent sells the property, and the buyer later sues the agent for failing to mention the problem. This is called
negligent misrepesentation
An employee of a real estate developer receives a salary plus bonuses based on sales quotas. Is this individual exempt from licensure under F.S. 475?
no
Are sales associates permitted to use a trade name?
no
Can an unlicensed personal assistant show a rental property?
no
Sally's first sales associate license was issued on March 15, 2019. What happens if Sally does not complete her post-license education before her license expiration date?
null and void
How many members of the FREC may hold a current active sales associate license?
one
The probable cause panel must include ___ member of the FREC
one
In general, investment properties do NOT refer to a. owner-occupied residence. b. income producing properties. c. apartments. d. cooperatives.
owner-occupied residence
general agency: principal delegates to agent ____ duties within the business
particular
A type of property, whose use is for habitation is called?
residential
The three principal brokerage firms in a market agree to charge clients the same commission rate, regardless of market conditions. This is an example of
price fixing
If a principal gives the broker instructions that will result in loss or harm to the principal, the broker should inform the ___ of the possible harm, and then ____ or ____ from the relationship
principal do as instructed withdraw
The meaning and importance of the agency relationship should be disclosed to the client
prior to completing a listing agreement
A professional service used to maintain and manage property on behalf of owners
property management
If the post-licensing requirement is not fulfilled before the first renewal and sales associate licensee wishes to continue in the real estate business, the licensee must...
re-qualify for licensure
State license laws are administered in each state by a ___
real estate commission
If the fees to be collected by the FREC will be more than required for a cash balance, the FREC may...
refund the difference to who paid the fees
If a licensee criminally violates license law, the FREC is required to
report the violation to the state attorney
In Florida, listings obtained and any commissions paid by the buyer or the seller are legally the property of the ____
sale's associates employer
services of real estate include: advertising rental property lists, appraising real property, conducting an auction of real property, but NOT... selling ___ for compensation
selling cemetery lots for compensation
Sally is a member of the U.S. Navy. What must she do to renew her real estate license?
she is exempt
Effective advertising involving developing a database of prospects to direct a specific message is called
target marketing
In Florida, the unlicensed practice of law is a
third-degree felony
A real estate broker who works in a limited capacity for both the buyer and the seller in the same transaction is called a...
transaction broker
T/F An applicant's fingerprints are sent to the FBI for a criminal background check.
true
T/F The registration for a closed branch office may not be transferred to a new branch office.
true
The essence of the agency relationship between an agent and a principal can best be described as a relationship of
trust, confidence, and good faith.
Members of the FREC must not serve more than ___ consecutive terms.
two
A real estate license application received by the DBPR expires after what period of time?
two years
A broker moves his real estate office to a new, trendy location. He is so busy coordinating the move that he forgets to notify the DBPR. The broker's license
will cease to be in force
An employee of a government agency who performs real estate services for the state but does not receive commission. Is this individual exempt from licensure under F.S. 475?
yes
An individual dealing in personal property only. Is this person exempt from licensure under F.S. 475?
yes
An individual serving as a personal representative and acting within the statutory limits of that designed role. Is this person exempt from licensure under F.S. 475?
yes
