Exam (elaborations)
FLORIDA REALTOR SALES ASSOCIATE STATE EXAM
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FLORIDA REALTOR SALES ASSOCIATE STATE EXAM
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FLORIDA REALTOR SALES ASSOCIATE STATE EXAM1 Mile - Answers -5,280 feet
1 Acre - Answers -43,560 square feet = 208.71 feet x 208.71 feet
1 Township - Answers -Contains 36 sections = 36 miles squared
Bill, a sales associate with ABC Realty, was not paid a commission he believes he
earned. What recourse could Bill legally take?
a. Lien the property of the seller.
b. File suit against the seller for this share of the commission.
c. File a suit against ABC Realty in court.
d. Seek payment from the Real Estate Recovery Fund. - Answers -c. File a suite against
ABC Realty in court.
Under Florida law all listings and commissions are legally owed to the Broker.
Therefore, sales associates are prohibited from initiating any suit or action for
compensation in connection with a real estate transaction against any person except
the person registered as their employer.
An Illinois corporation transferred its employees to Miami, Florida and the firm retained
a Florida broker to find homes for their employees. The attorney representing the Illinois
corporation notifies the Florida broker that in the state of Illinois, an attorney is
recognized as a real estate broker. Therefore, he wants a referral fee. The Florida
broker should:
a. obtain verification that Illinois attorneys are recognized as brokers.
b. not expect a referral from the Florida broker.
c. notify FREC prior to expecting any referral fee.
d. receive a referral fee because he is recognized as a broker. - Answers -a. obtain
verification that Illinois attorneys are recognized as brokers.
A broker pays a referral fee or shares a commission with a properly licensed broker
from another state provided the out of state broker does not come to Florida and
perform any act or service in negotiation of the transaction.
A sales associate went to a closing and received a check for the total commission. The
associate deposited it in his personal account and later wrote a check to his broker for
his share. This would be:
a. legal.
b. illegal.
c. legal if Broker authorized it.
d. a first degree misdemeanor. - Answers -b. illegal.
A sales associate cannot receive a check for the total commission.
A broker is promoting a development and offers lottery tickets for $10 each with the
condition that if he can sell 20 lots in one week, the winner of the lottery will be refunded
50% of the purchase of one of the broker's lots. At the end of the week only 16 lots have
,been sold. At that point, the broker declares the lottery null and void and offers to refund
the money paid for the purchase of the lottery tickets. Which is correct?
a. This is an illegal situation under the license law because it is a lottery.
b. This is an illegal situation under the license law because the broker declared the
lottery null and void after tickets were sold.
c. This is a legal situation because there was full disclosure of all terms of the contest.
d. This is a legal situation if the broker agrees to void the sale of the lots and refund the
money paid to purchase the lottery tickets. - Answers -a. This is an illegal situation
under the license law because it is a lottery.
A broker cannot use lotteries, equity trading schemes, or other devices, such as the
selling of chances or free-lot schemes to induce any person to buy real estate.
If Sally has violated F.S. 475, and this is her first offense, what is the maximum period
of suspension she could receive?
a. 90 days
b. 120 days
c. 5 years
d. 10 years - Answers -d. 10 years
The maximum period for which FREC may suspend a license is 10 years per Chapter
475.25, F.S.
Broker A gets an offer on a parcel of real estate owned by an individual living in Ohio.
The property is listed for $30,000, but the offer is for $28,000 cash with a $1,000 binder
deposit. Broker A calls the owner, who indicates the offer is acceptable and directs the
broker to send a contract for him to sign. Shortly thereafter, Broker B gets an offer for
$30,000 - 50% in cash and the balance to be owner financed - together with a $500
deposit and explains this to Broker A. What should Broker A do?
a. Tell Broker B the property is sold.
b. Tell the first buyer about the second offer.
c. Submit both offers.
d. Submit the second offer only if the seller modifies the first offer. - Answers -c. Submit
both offers.
All offers and counteroffers must be submitted to a client.
An inactive broker who has completed the broker's educational course and passed the
broker's license state examination may perform the services of real estate when:
a. his or her license is current.
b. he or she is voluntary inactive.
c. he or she completed the post-licensing requirement.
d. the broker has activated his or her license. - Answers -d. the broker has activated his
or her license.
After passing the broker exam, a license is inactive until the licensee activates the
license.
An individual was arrested and charged with fraud in Alabama. He pled nolo
contendere. He then moved to Florida, successfully completed the sales associate pre-
,license course, passed the sales associate state examination, and became licensed in
Florida. The felony information was not given on the application. If this information is
revealed, the FREC would:
a. take no action, since the plea was nolo contendere.
b. take no action, since the fraudulent act occurred in Alabama.
c. suspend or revoke the license.
d. suspend or revoke the license but the individual will be permitted to reapply and take
the exam again at a later date. - Answers -c. suspend or revoke the license.
Applicants must disclose if they have ever been denied or had a license suspended or
revoked in another state, or been denied license or registration to practice a regulated
profession. They must also disclose if they have been guilty of any conduct or practice
that would have been grounds for suspension of revocation under F.S. 475. They must
also disclose if they were convicted of a crime or ever entered a plea of nolo contendere
(no contest).
A broker withdraws money from an escrow account and uses it for personal expenses.
However, the broker replenishes the account in time for it to be used for its intended
purpose. If it is discovered what the broker has done, the FREC could:
a. take no action if no one was harmed.
b. take no action because the funds were replaced in time.
c. discipline the broker.
d. request the Division of Administrative Hearings conduct a hearing in this matter. -
Answers -c. discipline the broker.
Withdrawing money from an escrow account, using it for the broker's own benefit and
later replenishing the account is a violation known as commingling. The FREC would
discipline the broker.
Which penalty may not be imposed by the FREC?
a. imprisonment
b. reprimand
c. suspension of license for up to 10 years
d. revocation of license (permanent) - Answers -a. imprisonment
The potential penalties that may be imposed by the FREC against licensees include
reprimand; suspension of license for up to 10 years; revocation of license;
administrative fine of up to $1,000 for each separate offense of F.S. 475; administrative
fine of up to $5,000 for each separate offense of F.S. 455; probation; citation (fines up
to $1,000); and notice of noncompliance for minor violations. The FREC cannot
imprison licensees.
A broker sold a house 4 years ago and at that time the owners disclosed to the Buyers
the home suffered water damage due to a fire in the attic. The Buyers are now selling,
but are not disclosing the water damage. Legally, the Broker must:
a. do nothing.
b. disclose the water damage to all interested buyers.
c. follow the directives of his client.
, d. report the seller to FREC. - Answers -b. disclose the water damage to all interested
buyers.
Licensees have a duty to disclose to all interested buyers all known facts that materially
affect the value of residential property. A material fact is information relevant to a person
making a decision.
Owner Ann and Citizen Bill meet on the street. Ann says, "I would like to sell my house."
Bill gets the description and price of the property. Bill takes Chuck to look at the
property and gets an offer from Chuck, which Ann accepts. This is the second time Bill
has done this for Ann without compensation. Which applies?
a. Ann could not legally sell to Chuck.
b. Chapter 475 was not violated.
c. Bill must be licensed as a broker.
d. Bill must be licensed as a sales associate. - Answers -b. Chapter 475 was not
violated.
Individuals who provide services of real estate but who are not compensated for this
service do not need to have a license. Since Bill was not paid and did not expect to be
compensated, he has not violated license law.
A real estate brokerage general partnership has only one active broker and two partners
who do not perform services of real estate. If the active broker dies, this partnership:
a. must find another broker within 14 calendar days or the registration is canceled.
b. is allowed 30 days to find another active broker.
c. may continue its brokerage business if the two other partners remain with the
partnership.
d. may continue its brokerage business without an active broker since the partnership is
already registered with the FREC. - Answers -a. must find another broker within 14
calendar days or the registration is canceled.
Another broker must be obtained for the partnership within 14 calendar days or the
registration of the partnership will be canceled.
An owner of a service station who holds an inactive sales associate license has been
appointed by the court to appraise another service state. Which is most correct? The
service station owner:
a. has registration status so she may be compensated for this service of real estate.
b. must have an active license to be compensated.
c. may be compensated by a licensed broker.
d. may be compensated directly by the court for this service. - Answers -d. may be
compensated directly by the court for this service.
Court appointees are exempt from licensing requirements.
The real estate license of a person serving in the military will be:
a. suspended for the period of military service.
b. revoked for the period of military service.
c. valid for the period of military service and 6 months after discharge from active duty.
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