Sections 1-7

A licensed appraiser is compensated for an appraisal with

A licensed appraiser is compensated for an appraisal with

a flat fee

Which area of real estate requires the highest degree of expertise?

counseling

Your sales specialty involves the knowledge of regulated land use, environmental considerations, transportation, labor costs and utility charges. Your field of specialty is ____

Industrial

Raising the professional and ethical standards of real estate licensees is one goal of which organization?

the National Association of Realtors

Property taxes, homestead exemptions, and mortgage financing are areas of focus for which specialist?

residential

USA Bank contacted Aubrey, a sales associate with Blue Skies Realty, to do a Broker Price Opinion (BPO). The fee for the BPO was small so the bank paid Aubrey directly. This is

illegal, since sales associate violated Chapter 475, F.S.

Failure to complete the post-licensing required education prior to the renewal deadline will cause the license to become void. A sales associates may re-qualify by

retaking the pre-license course, passing the end-of-course exam, and passing the state examination.

Remuneration received for a broker price opinion (BPO) or comparative market analysis (CMA) represents a brokerage activity and must be paid

to the sales associate's broker.

Attendance by a licensee at one legal agenda session for the FREC may be substituted for how many hours?

The core law course accounts for three hours of FREC-approved continuing education credit.

Jamie works as an unlicensed personal assistant for Sunshine Realty. Which task is she allowed by law to do?

gather information for a comparative market analysis

An owner of a unit at a 20-unit condominium complex informs the salaried manager that he will be out of the country for six months and would like a friend to rent the apartment while he is gone. The manager agrees to the six-month rental. Does he need a real estate license?

No, because the rental period arranged was for not more than one year.

The Florida Administrative code that expands on the provisions of F. S. Chapter 475 is the

The Florida Administrative Code 61J2

The Florida Statutes that define the general legal practice and procedure for the Department of Business and Professional Regulation (DBPR) and the licensees of all professions, are Chapter 475 and Chapter

455

The Division of Real Estate exists primarily to

Provide administrative support to the FREC.

You just passed the exam for the real estate sales associate's license, but after working for three months under a broker, you find she is too busy with family obligations to devote enough time to the job and resigns. The best way for you to retain your license in voluntarily inactive status, is to

take the post-licensure course before her first renewal, then take the CE courses every two years, and pay her renewal fees.

Which statement best describes a group license?

a right granted to a sales associate or broker associate to work various properties owned by one owner/developer.

Which Florida Statute gives the Florida Real Estate Commission the authority to discipline Florida-licensed real estate professionals?

Florida Statutes, Chapter 455

Two of the seven members of the Florida Real Estate Commission must be

never licensed as real estate sales associates or brokers.

a real estate broker is convinced that a rule or guideline that significantly affects him is not valid and should be changed. He can seek recourse by

petitioning for an administrative determination before the Florida Real Estate Commission.

The legal rights and responsibilities of real estate licensees are established by what law?

Florida Statute Chapter 475

By issuance of a Final Order, a broker's license was revoked by the Florida Real Estate Commission. The licenses of the sales associates working under the broker are

automatically placed on involuntary inactive status.

If a new sales associate fails to complete the post-licensing education requirement within the allotted time frame, the initial license will

become null and void.

Once sales associates have completed their required post-licensing education, they must subsequently complete during every 2-year license period

at least 14 hours of continuing education for active and inactive licensees.

On July 1, Abrams lists his home on a 90-day exclusive contract with Broker Baker. On July 30, Abrams's Chapter 7 bankruptcy claim is approved. On August 6, the broker found a ready, willing, and able purchaser for Abrams's home. Can the broker claim a commission from Abrams?

No, because the executory contract was terminated before the buyer was procured.

A seller has her property listed for $85,000 but tells the broker she is desperate to sell and will take as little as $74,500. She even mentions this while the broker is showing the house to a prospective buyer. The broker

cannot legally mention the $74,500 price.

Although the roof on a house for sale leaks, the ceilings show no water damage. A broker represents the seller as a single agent and the seller has told the broker about the leak. If a prospective buyer asks nothing about the roof, the broker's legal obligation is satisfied if she says

that there is a leak in the roof.

A broker listed a land for $90,000. Jim verbally offered $88,000. Another buyer who knew about Jim's offer made an offer of $93,000. The broker drew up a written contract for $93,000 but did not inform the owner about the offer for $88,000. Which is correct?

The broker should have presented both offers to owner.

A broker lists a property that she knows would be perfect for her cousin. The property is being sold due to the death of the owner. The seller is willing to accept a much lower offer than the property's listed price. About making an offer, the broker should tell her cousin

nothing, and present to the succession any offer that her cousin wishes to make.

A transaction broker is best described as the concept of

one who provides limited representation in a brokerage transaction between buyer and seller

When must the No Brokerage Relationship notice be presented?

in writing before the showing of property

A broker listed a house and is the single agent of the seller. A prospective buyer wants to view the home and wants the broker to represent him too. The broker must

have the seller sign a Transition to Transaction Broker form before showing the house to the buyer.

1. Of the following statements, which one is TRUE about kickbacks or rebates?

They are legal if all affected parties to the transaction are aware of such an arrangement prior to the time of the placement of said transaction.

A broker finds a buyer for a house she has listed. The offer includes an earnest money deposit and states that the offer is valid for three days. The owner does not immediately respond to the offer, and after 24 hours the buyer decides to cancel the offer and asks for his deposit to be returned. The broker should

Return all the funds to the buyer

A broker receives an earnest money deposit on a home sale. The broker must deposit the funds within how many days of receiving them?

immediately, which means within three business days.

Over which type of escrow account does the FREC have jurisdiction?

Broker escrow accounts

A prospective renter engaged the services of a broker on June 1 to help her find a suitable rental. The broker charged her $200. The renter was not able to find a rental property from the list. To what refund, if any, is she entitled?

The renter's refund is $150, if she makes demand for the return of the fee before June 30

A broker has not had much luck selling a particular property, so he decides to change his advertising in such a way that is misleading in form and content. The broker

could receive an administrative fine.

The following statements appeared in real estate advertising. Which one is NOT legal and proper?

"This property is offered by Marry Brown, sales associate for a licensed broker."

Savannah is working for Broker Brown, but she also wants to sign on with Broker Jones. She can only work with one of the brokers because

Chapter 475, F S mandates only one registered employer for a sales associate or broker associate.

A broker or sales associate would be committing fraud if he or she knowingly sold a property

by using a lottery, even if the property is actually conveyed in accordance with the lottery rules.

How many business days does a broker have to notify the FREC, in writing, of conflicting demands or of a good faith doubt?

15 days

The duties of the broker as a fiduciary are

loyalty, confidentiality, obedience, full disclosure, and accounting and the duty to use skill, care, and diligence

What are some types of special-purpose properties?

assisted living facilities, theaters, museums, theme parks, bowling alleys, and hotels.

Only a state-certified or licensed appraiser can prepare an appraisal that involves a federal-related transaction over $400,000.

True

Real estate sales associates may appraise property but must not represent themselves as licensed appraisers and must comport with the Appraisal Board's standards (USPAP).

True

How many properties are usually used for comparison for a BPO?

At least three similar properties are

BPO are exempt from Uniform Standards of Professional Appraisal Practice, guidelines for professionalism and ethics established by the Appraisal Standards Board.

True

What are the seven steps in the disciplinary procedure?

Filing the Complaint, Investigation, Probable Cause, Determination, Formal Administrative Complaint, Informal or Formal Hearing, Recommended and Final Order, and lastly Judicial Review (Appeal)

How are complaints filed against real estate professionals?

either online or by mail.

A complaint may be filed against which individuals?

a license, a licensee, or an unlicensed person.

Can the Department continue with an investigation after a complaint is withdrawn?

Yes

When the Department receives an anonymous complaint in writing, an investigation will begin if:

-they determine that the complaint applies to an illegal action, -the allegation is substantial enough to be investigated, and -there is reason enough to believe that the complaint may be true.

How long can the FREC suspend a license for?

10 years

What is the most severe penalty that FREC can impose on a licensee?

Revocation, meaning the licensee may never practice real estate in Florida again.

What is the maximum $$ amount per violation?

$5000

What are the terms of probation for a licensee?

attend a pre-/post-licensure course, retake the state exam, complete continuing education courses, and be overseen by a DBPR representative.

Which disputes does the FREC find "mediation" to be an acceptable method of resolution?

-Failure to maintain office or sign at entrance of office, -Failure to register a branch office as prescribed by statute, or -Failure to deliver to a licensee a share of a real estate commission if the licensee has obtained a civil judgment and the judgment has not been satisfied.

What penalties is the FREC authorized to issue?

Deny a license application, Refuse to renew a license, Suspend, Revoke a license, Issue citations, Impose a fine, Impose probation, Issue notice of noncompliance, and Engage in Mediation

Who can the FREC issue notices of noncompliance to?

licensees who commit initial or minor violations

Larry, a real estate licensee, served a term in prison for a crime not related to his real estate brokerage. Larry's license may be

suspended or revoked

A licensed broker was found guilty of culpable negligence in a real estate sale. The broker made full restitution to the affected party. The Florida Real Estate Commission may

suspend the individual's license.

Larry has knowledge that his broker frequently commits unlawful acts as it pertains to real estate. If the broker instructs the sales associate to participate in an unlawful real estate act, Larry must

refuse to carry out the instructions, and then report the broker to the Department of Business and Professional Regulation.

What are the two categories of housing covered by the FHA?

single-family and multifamily properties

If a person has been discriminated against under the terms of the Fair Housing Act, how long do they have to file a complaint?

They have one year from the date of discrimination to file a complaint with the U.S. Department of Housing and Urban Development (HUD)

The provision that an owner who needs assistance may have a service dog regardless of the pet regulations in a residential or rental community is included in the ____

Civil Rights Act of 1968 (Fair Housing Act)

Where must a security deposit be held?

a Florida banking institution or the surety bond in the county in which the rental property is located

What is the final legal act in an eviction procedure?

After the tenants are served a writ of possession, the landlord begins to remove their personal property from the rental unit.

What document must the developer of an unimproved subdivision provide to the prospective buyer?

a detailed property report

Under the Interstate Land Sales Full Disclosure Act, what must a developer or agent do?

register the development with the Consumer Financial Protection Bureau and provide the purchaser with a detailed property report prior to the sale.

A landlord inspects his rental property after the tenant moves out. He finds damage that is beyond normal wear and tear and decides to deduct some money from the security deposit to cover the damage. How many days does the tenant have to object, in writing, to the deduction?

15

To which situation does the Fair Housing Act apply?

A broker showing homes to prospective buyers, applies to any residential transaction involving a broker.

Which real estate activities require apprasiing services?

property financing, selling, buying, and claims, divorces, and estates

What are some sources of real estate financing?

financial institutions, such as commercial banks, savings and loan associations, and credit unions

What are some private sources of real estate financing?

investment management firms, and individual investors

What is seller financing?

In this arrangement, the seller allows the buyer to make payments with interest directly to them instead of to a third-party lender

What do Mortgage Loan Originators (MLOs) and Mortgage Bankers do?

accept applications for mortgage loans and negotiate the terms of loans, obtain loan approval, make sure all the conditions of the loan are met, and service the loan.

Who should Mortgage Loan Originators (MLOs) and Mortgage Bankers be licensed by?

the Nationwide Multistate Licensing System & Registry (NMLS)

What are the four general phases of development and construction?

land acquisition, subdividing and development, plat map submission, and construction

What happens during land acquisition?

Developers and builders acquire raw, unimproved land as a future construction site for homes or a commercial project. Also, the developer pays for engineering plans, attorney fees, surveys, and application fees.

What happens during subdividing?

Surveyors and engineers divide the property into smaller lots and representing them on a plat map

An improved residential property of four units or less.

residential property

An unimproved residential property intended for use of four units or less

residential property

When is a CAM license required?

if the property manager receives compensation for providing services to an association with ten or more units or with an annual budget of $100,000 or more

Scope of Work Agreement

detailed management agreement that defines responsibilities and compensation

What happens during development?

the first stage of making improvements to real estate. The land is readied for construction with work such as removing trees and debris, grading the building site, and marking out areas for streets and sidewalks

What happens during plat map submission?

The developer submits a subdivision plat map for review by the county or city planning commission. Once approved, it will be recorded for future reference.

What happens during dedication?

The developer who creates the subdivision will enhance the area with streets, curbs, sidewalks, and other improvements/amenities, are usually dedicated to the local government. The government does not pay for these. The developer, however, must offer the dedication to the government body and it must be approved.

When was the Flroida Real Estate Commission created?

1925

When was the Division of Real Estate established and what is its purpose?

1982, protects the public by regulation of real estate and appraisal licensees pursuant to Chapter 475, Florida Statutes.

What are the main fields of expertise provided by a broker or a sales associate?

knowledge of property transfer, knowledge of market conditions, and how to market real estate

An agricultural property of 10 acres or less.

residential property

What is the Division of Real Estate responsible for?

the examination, licensing and regulation of individuals, corporations, real estate schools and instructors.

What is the Florida Real Estate Commission (FREC) responsible for?

educating members of the profession, enforcing the rules they make, establishing licensing fees, creating an official seal, and administering the Florida Real Estate Education & Research Foundation

Florida Statute, Chapter 20

This statute defines the organizational structure of the Florida Executive Branch of Government. The DBPR was created under this statute for regulating businesses.

Florida Statute Chapter 120

This statute is the Administrative Procedure Act. Its purpose is to ensure that agencies regulating businesses (such as FREC and the Florida Division of Real Estate) adopt and adhere to rules disclosing their methods of operation to the public, following a model established by the Administration Commission.

According to F.S. Chapter 475, "real property" or "real estate" does not include what?

any cemetery lot or right of burial in any cemetery; nor does the term include the renting of a mobile home lot or recreational vehicle lot in a mobile home park or travel park."

Who can sell timeshares?

Only licensed sales associates and brokers can sell timeshares

Of the following, which real property interest applies to land ownership?

tenancy in common

What does 'tenancy in common' refers to?

multiple parties owning a fractional share of undivided land.

John owned real property prior to his marriage to Sofia. This property is presumed to be ___

separate property