Real Estate Gold Coast test 2023 (solved)

Prorating Rent - Answer- paid in advance monthly rent collected by the seller for the month must be divided between seller and buyer Areas of expert knowledge required for all real estate licensees? - Answer- 1. Property Transfer 2. Valuation 3. Marketing (Not accounting or construction) Real estate licensees can perform valuations under the real estate license law if the valuation is not to be used _________. - Answer- in a federally related transation real estate licensees usually prepare... - Answer- CMAs or give a BPO. They do NOT perform appraisals Does Florida have a reciprocity with any other state with regard to real estate licensing? - Answer- No, but they do have mutual recognition what is question 1 on the background questions for the application for sales associate license - Answer- asks if you have ever been convicted or found guilty of, or entered a plea of nolo contender (no contest) or guilty to, regardless of adjudication, a crime in any jurisdiction, or are you currently under criminal investigation Application Denial - Answer- If an application to take the state exam is denied by the Department, the applicant will be notified in writing. The notification will identify the reasons for denial and advise the applicant that he or she has 21 days from the date of receipt to request a formal hearing before an administrative law judge in accordance with F.S. 120, The Administrative Procedure Act The law requires sales associates or broker associates to be .. - Answer- employed as an agent of either a broker or an owner developer sales associates and broker associates can ONLY be compensated by? - Answer- their employing broker or owner-developer Employment by an owner-developer - Answer- - individual who is in the businesses of buying, owning, or developing real estate -The owner developer must register with the department but does not receive a real estate license Who can owner-developers hire? - Answer- -They can hire unlicensed sales persons to sell property they own, as long as the sales persons are PAID A SALARY. -If they pay commissions or transaction based fees, they MUST hire licensed sales associates or broker associates CH.2 - Answer- 1919 1925 - Answer- California enacted first real estate license law FREC was created The purpose of the Florida Real Estate License Law, F.S. 475 is - Answer- to protect the public. The most common services of real estate are: - Answer- A= appraising B= buying A= auctioning R= renting S= selling A= advertising L= leasing E= exchanging Those who may also qualify to apply for a brokers license: - Answer- Actively licensed real estate sales associates rom another state or nation who have been licensed for at least 24 months during the preceding 5 years Broker Associate - Answer- Broker who is working as a sales associate A sales associate or broker associate cannot receive compensation for performing real estate services from - Answer- Anyone other than his employing broker If an owner developer pays commissions or transaction-based fees, - Answer- They must hire licensed sales associates or broker associates Post license (First Renewal) Requirements - Answer- -All licensees, must satisfactorily complete a Commission-prescribed post-licensing course prior to the first renewal expiry following initial licensure. -The renewal form includes an affirmation that the licensee must sign to indicate that he has satisfied this requirement prior to the application for renewal Sales associate first renewal - Answer- - a 45 hr post-license course must be complete prior to the expiration dat on the initial lice period, - if a sales associate fails to complete this requirement the license will become VOID Continuing Education - Answer- 14 hr of CE and pay renewal fees during each license renewal period, not including the first renewal period. If the CE requirement is not met the licensee's license status will be changed to INVOLUNTARY INACTIVE Individuals exempt from real estate licensure include: - Answer- - attorneys in fact ( persons who are granted authority under a power of attorney to act for others in some capacity, like signing documents) - salaried employees ( of an owner, or of a registered broker for an owner, of an apartment community who work in an onsite rental office of the apartment community in a leasing capacity) Powers of the Department - Answer- The Department may SEEK an injunction from a court against a licensee for failure to follow an order. They do NOT have the authority to issue injunctions against unlicensed persons. CH.3 - Answer- The commissions specific powers include: - Answer- Executive Powers- these powers include: -the publication of books and newsletters to keep licensees and the public informed of new and changing laws/ rules governing real estate, -furthering the education of potential/current licensees, -and the investigation of complaints against licensees - The executive powers can be exercised by the chairs-person acting alone or an be delegated bu quorum vote to any other Commission member First Renewal - Answer- failure to renew will result in a null and void license status. Multiple Licenses - Answer- -Brokers can be issued additional licenses in 2 or more capacities by requesting multiple licenses. They must show that the additional licenses are necessary for legitimate business reasons. - The request for issuance of multiple licenses cannot be prejudicial to the brokers business associates or the public. -NOT available to sales associates or broker associates CH.4 - Answer- 3 types of agency relationships in the law of agency? - Answer- 1. special agent 2. general agent 3. universal agent Statutory Law - Answer- Based on written statutes have been enacted by an appropriate unit government Special Agent - Answer- -authorized under agency law by the employer to perform a SINGLE ACT - the employment contract between the employer and agent establishes the limit of authority granted Subagent - Answer- -NOT a type of agency, it is an extension of another agency. - a party who has been granted authority to ACT ON BEHALF OF ANOTHER AGENT Principal - Answer- -the party with whom the real estate licensee has entered into a single agent relationship -customer becomes the principal once a single agency relationship has been established Transaction Broker - Answer- a broker who provides limited representation to a buyer, a seller, or both, in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent Dual Agency - Answer- Representing both parties to a transaction. Illegal in Florida Situations exempt from the Disclosure Requirements - Answer- - responding to general factual questions - situations in which a licensee's communications with a potential buyer or seller are limited to providing general factual information, oral or written, about the qualifications, background, and services of the licensee or the licensees brokerage firm Presenting offers - Answer- -A broker has a duty to transmit any and all offers to the employer including oral offers or offers made without a binder deposit. - a broker cannot accept or reject an offer on behalf of his employer BUT a broker may be able to accept an offer by a power of attorney or by terms specified within a listing contract Single Agent - Answer- -An agency relationship is created when a broker accepts employment under a single agency agreement -a broker may represent a seller or a buyer -any attempt to represent both parties in a transaction would create dual agency which is ILLEGAL -in this relationship the employer becomes the principal, who authorizes the broker as agent to perform certain services on his behalf When a broker is employed to find a purchaser... - Answer- he is entitled to compensation when a ready, willing, and able buyer has met all of the sellers requirements Referral Fees - Answer- An out-of-state or foreign broker can accompany the customer to Florida, but may NOT participate in the transaction in any manner. If they perform any services within the transaction, no referral fee or commission can be paid Arm's Length Relationship - Answer- Selfish/own best interest opposite of fiduciary Listing Contract - Answer- Broker's contract that states terms that broker must meet to become eligible for compensation. May be employed by an owner to find a purchaser Commission disputes between competing brokers - Answer- Brokers involved in a transaction may agree to split or divide a commission if permission of all parties agree Broker must be - Answer- licensed to earn compensation cannot compensate an unlicensed person unaffiliated with the transaction earns compensation by performance CH.5 - Answer- Principal office requirements - Answer- - each active broker is REQUIRED to open and maintain office. -the office must be registered with the DBPR. The office must consist of at least 1 enclosed room in a building of stationary construction so negotiations can be private - the broker can have an office in his home, if it is not in conflict with local zoning ordiances - they do NOT need a telephone, desk or checking account. but, they DO need to maintain books, records, and files that pertain to transaction of others in the brokers office for a period of at least 5 years. - Principal office registration is transferable to a new location for the remainder of the current registration period Office Signs - Answer- -brokers are required to have a sign on or about the entrance to the office, and all branch offices, where it an be easily observed and read by persons entering the office. -It may be placed on either the exterior or interior of the office Personal Transactions - Answer- -Brokers, sale associates and broker associates are entitled to deal in real property for personal benefit. -Licensees should make clear that they are dealing on their own account and not acting on behalf of others. Disclosure of license status must take place prior to entering into serious negotiations, but is NOT required to take place in the preliminary stages of a transaction, like newspaper ads. -The licensee should also ensure that this disclosure is in writing in the PURCHASE AND SALE CONTRACT Escrow Account - Answer- -AKA trust account -may be held in a commercial bank, title company which has trust powers credit union, or savings and loan association located in the state of Florida (NOT A INSURANCE OR FINANCE COMPANY) - CANNOT be held in a stock or bond brokerage house. - a broker is not allowed to COMMINGLE or deposit the personal funds of any person with any funds being held in escrow, trust, or on condition Depositing escrow funds - Answer- -A sales/ broker associate who receives an earnest money deposit on behalf of his employer must deliver the deposit to the employer no later than the end of the next business day following receipt. - a broker must then immediately place the earnest money deposit in an escrow or trust account. Immediately = less than 3 business days Escrow Disputes - Answer- Under mutual control of the buyer and seller broker must give written notification to the commission within 15 business days from date of last party's demand When would the broker file a bill of interpleader? - Answer- if he does not claim any rights to the deposit under dispute when a sales contract is subject to financing, and the broker is acting as an escrow agent, the broker may.... - Answer- refund the deposit to the buyer without notification to the Commission if the financing cannot be obtained Escrow disbursement order - Answer- Broker requests the Commission to determine the party entitled to the escrowed property Sales ass. or Broker must report any change of employed to the commission within - Answer- 10 days a sales associate may not... - Answer- file suit against anyone other than the employer even if they are not compensated as agreed upon by his employer any resident licensee who becomes a non resident must - Answer- notify the Commission of the change in residency within 60 days and comply with nonresident requirements Real Estate Brokerage Partnership - Answer- Must have one licensed broker - Broker with inactive/no license can be a partner, cannot perform real estate services -Must register with the Department in the name of partnership -failure of 14 day period will result in cancellation of partnership registration -May provide real estate brokerage services for others/has to be registered with the Department joint venture - Answer- - jointly and severally liable -temporary business that involves a single transaction or a predetermined number of transactions. - can be formed orally or in writing and no documents must be filed with the secretary of state corporate name MUST include - Answer- -the word corporation, company, incorporated or the abbreviations corp., inc., or co. -no business is allowed to use the word company in its name unless it is formed legally as a corporation or unless the words "not inc." are added. real estate brokerage corporation - Answer- - must provide proof of legal corporate existence prior to its initial registration with the Department - the corporation and the names of all officers and directors of the corporation must be registered -at least one corporate officer must have an active real estate brokers license In a limited partnership - Answer- A certificate of limited partnership must be filed with the Secretary of State Real Estate Brokerage Limited Partnership - Answer- Must have one general partner as an active licensed broker -general partner may be a non licensed registered person, or hold an active/inactive brokers license -Limited partner who has an active license may perform real estate brokerage services on behalf of the partnership, but may not take part in the business -Sales ass. or broker ass. cannot take part in this partnership Sales ass. or broker ass. may form Nor For Profit Corp. - Answer- Professional Association (PA) or Limited Liability Company (LLC) - Must be registered with the Secretary Of State Corporation Sole - Answer- Religious Purposes Not required to file any documents with the state Unincorporated Ass. - Answer- Poses a risk for their members because there treated like partners who are liable for all actions -Trustee holds title when a purchase in real estate is made Ostensible Partnership - Answer- a fake partnership all of the following business formations can register to conduct real estate transactions, except: - Answer- Corporation sole ( think of church) CH.6 - Answer- Examples of fraudulent activities: - Answer- 1. Culpable Negligence - occurs if a broker operates in a careless manner. ex: sales associate who forgets to collect an escrow deposit, as specified in a sales contract 2. Misrepresentation - misstatement or omission of facts. Includes exaggeration in an opinion of value 3. Rendering an opinion of title - a broker cannot render an oral or written opinion that the title of the property being sold is good or merchantable. If a question arises about title of property, a broker is required by law to advise a prospective purchaser to obtain title insurance or to insist upon or procure an abstract and obtain an attorneys title opinion First degree misdemeanor - Answer- up to $1000 fine/1 year potential max imprisonment violation of rental lists, information, and contracts Second degree misdemeanor - Answer- up to $500 fine/imprisonment up to 60 days false advertising Third degree felony - Answer- $5000 fine/imprisonment up to 5 years Acting as a broker with no active license Knowingly giving false info. in route to obtain license CH.7 - Answer- Recovery Fund - Answer- if the total amount in the fund reaches $1,000,000 collection of these fees is discontinued until the amount in the fund falls below $500,000 1968 Federal Fair Housing Act - Answer- Makes discrimination in showing, negotiation, sale, or financing prohibited when based on race, color, religion, sex, etc. blockbusting - Answer- -aka panic selling - inducing an owner to list or sell on the basis that the neighborhood is deteriorating or becoming transitional due to an influx or minority persons. ex: bad schools, falling property values Steering or channeling - Answer- directly or indirectly, steering someone into or away from a neighborhood or location on the basis of race, color, religion, sex, or national origin Redlining - Answer- Refusal by lender to approve mortgage loan based on property being located in a certain geographical area, age of property, Exemptions to 1968 Civil Rights Act - Answer- Limited exemptions for sale of one-four family housing Lodging in a private club Rental of rooms in owner occupied dwellings Property owned by churches/fraternal for existing properties that do not comply with the ADA - Answer- the owners are required to make necessary modifications whenever such changes are readily achievable and economically feasible Landlord is required to make clear provisions for the handling of DEPOSIT MONEY AND ADVANCE RENT FOR PERIODA OTHER THAN NEXT RENT PERIOD - Answer- MUST NOTIFIY THE TENANT IN WRITTING WITHIN 30 DAYS OF RECEIVING SECURITY DEPOSIT Upon tenants vacate, landlord has - Answer- 15 days to return the security deposit including accrued interest -If damages occurred, landlord has 30 days to notify tenant the landlord options and procedures for handling the security deposit money and advance rent are: - Answer- - hold the total amount in a noninterest-bearing escrow account