FL Real Estate Exam Practice Questions

FL Real Estate Exam Practice Questions Which statement is true regarding the use of the term REALTOR? All real estate licensees are REALTORS All REALTORS are members of the National Association of REALTORS (NAR) The terms real estate licensee and REALTOR may be used interchangeably The Florida DBPR authorizes the use of the term REALTOR - ANS All REALTORS are members of the National Association of REALTORS (NAR) The term follow up refers to...? - ANS what a sales associate does for buyers and sellers after the sale Even though certain exceptions apply, an active real estate licensee is legally entitled to appraise real property for compensation concerning a nonfederally related transaction - ANS As long as she does not represent herself as a state-certified or licensed appraiser and complies with USPAP The field of property management has experienced growth and specialization primarily because of...? - ANS the increase in the number of absentee owners Real estate licensees must comply with the Uniform Standards of Professional Appraisal Practice (USPAP) when conducting which value estimates? - ANS Appraisals Appraisers are paid a fee because - ANS to accept compensation based on the appraised value is a conflict of interest The five major sales specialties do NOT include agricultural special use commercial businesses - ANS Special use The real estate activity that is devoted to leasing, managing, marketing, and overall maintenance of property for others is called - ANS Property management Which kind of construction involves building to buyer's specifications? - ANS Custom homes The term dedication as it applies to development and construction refers to...? - ANS A gift of land by the owner to the local government for public use What type of license is required to sell or lease business opportunities for another person? - ANS Real estate license Selecting a limited geographical area in which a real estate professional develops special expertise is - ANS Farming Managing which type of property of more than 10 units requires a CAM license? - ANS Condominium complex Effective advertising involving developing a database of prospects to direct a specific message is called - ANS Target marketing A broker charges a prospective seller $50 for a comparative market analysis (CMA) . Which statement applies? Brokers are not permitted to charge for CMAs This is permissible, provided the broker does not represent the CMA as an appraisal The broker must be a state-certified appraiser to do this The CMA must be signed by a state-certified appraiser - ANS This is permissible, provided the broker does not represent the CMA as an appraisal A licensed sales associate may operate - ANS For the broker registered as the sales associate's employer A sales associate applicant is NOT required to comply with which requirement? Subject to an application fee Be 18 years or older Be a bona fide Florida resident Possess a Social Security number - ANS Be a bona fide Florida resident Which person does not meet the experience requirements to obtain a Florida broker's license? An applicant who has held an active CA broker's license for the preceding 3 years An applicant who has held an active Ohio sales associate license during 4 of the preceding 5 years while employed by an Ohio broker An applicant who has held an active FL sales associate license for the preceding 2 years while employed by a FL broker An applicant who has held an active FL sales associate license during 2 of the preceding 5 years while employed by an owner-developer - ANS An applicant who has held an active FL sales associate license during 2 of the preceding 5 years while being employed by an owner-developer What information appears on the face of a real estate license? Governor's signature Secretary of the DBPR's signature License number Licensee's email address - ANS License number A sales associate applicant is NOT required to disclose which information on the license application? Convicted of a crime Proof of citizenship Maiden name, if applicable A finding of guilt in conduct that would have resulted in disciplinary action if the applicant had been licensed to practice real estate - ANS Proof of citizenship A sales associate sells real estate for a real estate brokerage company. He also works as a sales associate for another real estate brokerage company. He also works as a sales associate for another real estate brokerage company. The sales associate is in violation of F.S. 475 The sales associate may work for both companies as long as he registers both employers with the FREC This is legal as long as he only works part time for each company The sales associate must be a broker associate for this to be legal - ANS The sales associate is in violation of F.S. 475 What is the Latin term for a plea of "no contest"? - ANS nolo contendere The DBPR is required by law to waive which fee(s) for qualified low-income license applicants? - ANS initial license fee Which event may cause the FREC to refuse to certify an individual as qualified for licensure? Dropped out of high school and later earned a GED Was convicted of fraud in an insurance scam Changed residency to a state other than Florida Lost a lot of one's own money in a bad real estate investment - ANS Was convicted of fraud in an insurance scam A license applicant had held a real estate license in good standing in another state since 2005. The applicant is licensed in a state that has a mutual recognition agreement with FL. 5 months ago, the license applicant moved to Orlando, FL. Is this licensee eligible to apply for a real estate license under mutual recognition? - ANS No, the applicant is now considered a FL resident A woman received her Florida sales associate's license last year. Which requirement must she complete to become a licensed real estate broker? - ANS Complete at least 3 years' experience as a sales associate before taking the broker license exam A man has a North Carolina broker's license, but he is not licensed in FL. He sells a parcel of land he owns in Florida. Assuming all else is proper, this is a legal transaction because...? - ANS Florida law exempts from licensure individual owners selling their own real property A sales associate applicant who has submitted a correctly completed application for the state license examination and who successfully passes the state exam may legally begin to operate as a licensee when the...? - ANS applicant is notified of having passed the state exam, has filed the appropriate form to become registered as active with the DBPR, and the DBPR website indicates the applicant's license status is active If the post-licensing requirement is not fulfilled before the first renewal and a sales associate licensee wishes to continue in the real estate business, the licensee - ANS must requalify for licensure Services of real estate do NOT include - ANS Selling cemetery lots for compensation Which statement BEST describes who must be licensed to practice real estate in FL? Anyone who performs any of the services of real estae Anyone who performs any of the services of real estate for another Anyone who performs any of the services of real estate for another for compensation Anyone who performs any of the services of real estate for another for compensation, unless specifically exempted by law - ANS Anyone who performs any of the services of real estate for another for compensation, unless specifically exempted by law Which individual is NOT exempt from licensure under F.S. 475? A salaried employee of a governmental agency who performs real estate services for the state and does not receive commission Individual dealing in personal property only Individual serving as a personal representative and acting within the statutory limits of that designated role An employee of a real estate developer who receives a salary plus bonuses based on sales quotas - ANS An employee of a real estate developer who receives a salary plus bonuses based on sales quotas A salaried individual manages a condominium building and rents units for three-month to six month periods. The manager...... - ANS is exempt from licensure under F.S. 475 A developer purchased a tract of land and subdivided the property into individual lots. The developer hired his son, who was not licensed to sell the lots. The father agreed to pay his son a salary of $200 per week. After two weeks, the son had only sold two lots, so the father decided to add an incentive. The father promised his son that after every 5th lot was sold he would give his son a lot free and clear. After one more week, the son had only sold one more lot. The son quit his job to go work for another developer who paid a higher weekly salary. Which statement applies to this arrangement? The is no violation of F.S. 475 The son alone has violated F.S. 475 Only the father has violated F.S. 475 Both the father and son have violated F.S. 475 - ANS Both the father and son have violated F.S. 475 FBI files reveal that six months ago a man worked as a real estate broker in Georgia, where he was charged with arson related to a large insurance claim. To avoid a long court fight without pleading guilty, the man agreed to revocation of his real estate license and entered a plea of nolo contendere. The FREC has just received the man's application for licensure as a sales associate disclosing the previously stated information. The application shows that all academic requirements have been met. The FREC will - ANS use its discretion to determine the applicant's qualification for licensure based on the facts in the criminal background check and an interview with the applicant The following statements are true with respect to the memebers of the Florida Real Estate Commission EXCEPT that they Are a mix of real estate practitioners and consumer members Are accountable to the governor for proper performance Are DBPR employees Depend on the DRE for their administrative assistance - ANS Are DBPR employees Members of the FREC are appointed by the - ANS Governor and confirmed by the state senate Which statement does NOT describe the intent of the Florida Legislature concerning regulation of professional and licensed occupations to protect the public? When the potential for harm to the public is clear When other ordinances and laws are not sufficient to protect the public Whenever deemed appropriate by legislature When less-constraining measures of regulation are not available or apprent - ANS Whenever deemed appropriate by legislature Real estate licensees on active duty with the U.S. Army are required to renew their licenses - ANS Within two years after discharge The term of office for each Commission member - ANS Four years The members of the commission receive - ANS $50 per day when on official business, plus expenses. Which Commission responsibility is an exercise of its quasi-judicial power? - ANS Grant or deny license applications The Commission is NOT empowered to - ANS levy fines and imprisonment as penalties for certain crimes. Specific responsibilities of the FREC do NOT include - ANS providing the services necessary for the preparation and administration of licensing examinations Which power is NOT granted to the DBPR under Florida Statute 455? - ANS Appoint FREC members Which statement regarding the Department of Business and Professional Regulation (DBPR) is TRUE? - ANS The DBPR is under the executive branch of the state govvernment A sales associate is employed by a broker. The broker's license is suspended. This action causes the sales associate's license to be - ANS Placed in involuntary inactive status How many member of the FREC may hold a current active sales associate license? - ANS One If an active licensee fails to renew her third two year license before the expiration date on the license, the license will - ANS Revert automatically to involuntary inactive status at the end of the license period An involuntary inactive license will automatically become void without further action by the FREC or the DBPR after - ANS 4 years Who may NOT reactivate a license to active status? - ANS A sales associate who did not complete post-licensing education before the expiration of the initial license. An owner-developer owns several properties with different names, but all are business entities closely connected and controlled by the owner-developer . A sales associate working for that owner-developer may legally obtain.... - ANS A group license 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 - ANS will cease to be in force Which statement is TRUE regarding multiple licenses? - ANS A broker who qualifies as the broker for more than one brokerage company holds multiple licenses A broker decides to relocate her real estate brokerage office. She notifies the DBPR of the change in business address. She also informs the DBPR of the names of two sales associates who are no longer associated with her brokerage. The sales associates' licenses will be..... - ANS placed on involuntary inactive status A real estate brokerage company has entered into a single agent buyer broker relationship with the buyer. In order to show this buyer property that is listed with the same brokerage company for which it is a single agent, in what brokerage capacity may the company work with this buyer and seller? - ANS Both the seller and buyer must transition to a transaction broker relationship before the buyer can be shown the seller's property The brokerage relationship disclosure requirements in Chapter 475, apply to the - ANS sale of a condominium What is the description of the duty of a loyalty in a single agent relationship? - ANS The broker must act in the best interest of the principal A real estate broker who works in a limited capacity for both the buyer and sell in the same transaction is - ANS a transaction broker A licensee of ABC realty must give the no brokerage relationship notice to - ANS a for-sale-by-owner (FSBO) seller before showing the FSBO home to a buyer customer of ABC Realty A broker has listed a seller's property. The seller has disclsoed to the broker that the ceramic tile is loose in the dining room because the cement did not adhere to the tile. The loose tile is not readily visible because it is covered with an area rug to protect the seller's toddler. The broker has satisfied his legal obligation if he tells the buyer... - ANS that the ceramic tiles in the dining room are loose A transaction broker has all the duties EXCEPT limited confidentiality to use skill, care, and diligence to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer obedience - ANS obedience A seller lists her home for $216,900. The seller tells the sales associate that she needs to get at least $212,000 for the home. After Sunday's open house, the sales associate receives two offers on the home. The first offer for $216,900 is contingent on the seller's financing a portion of the down payment. The second offer is for $212,000, with the buyer to secure her own financing. The sales associate should... - ANS present both offers, explaining the details of each to the seller In the common public relationship that exists in a typical real estate transaction, buyers and sellers are said to be dealing... - ANS at arm's length with each other If a principal gives the broker instructions that will result in loss or harm to the principal, the broker - ANS should inform the principal of possible harm inherent in the instructions, and then either do as instructed or withdraw from the relationship A broker's obligations to consumers with whom the brokerage firm has no brokerage relationship include the duty of full disclosure accounting for all funds loyalty limited confidentiality - ANS accounting for all funds Designated sales associates are BEST described as - ANS single agents for the buyer and the seller in non residential transactions where the buyer and the seller meet certain asset thresholds. Which relationship is a general agency brokerage? - ANS Relationship between the employing broker and broker associate Which action will terminate a single agent relationship with the principal who has listed a home for sale with the brokerage? - ANS Destruction of the property by a large sinkhole A real estate broker (and the broker's associates) are obligated to which duty in all three brokerage relationships? - ANS Deal honestly and fairly John Anderson is a licensed real estate sales associate. Under which name may he register and be licensed? - ANS John Anderson, LLC 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? - ANS Thursday Real estate sales associates who receive checks payable to them as deposits on the purchase of real property must... - ANS endorse the checks and immediately turn them over to their employer It is illegal for the broker to keep any earned interest even if the buyer and the seller give written permission, true or false? - ANS False A dispute arises between the buyer and the seller as to which one is entitled to escrowed property. The broker should first - ANS notify the FREC in writing, unless exempted from the notice requirements When a deposit is placed with a title company, what information regarding the title company must be included on the purchase and sale agreement? - ANS Telephone number, name of the title company, and address of the title company A woman purchased a rental list one week ago from a real estate broker. She inspected an apartment described in the list. The apartment manager told her that cats were not allowed. She had specifically looked at the apartment because the rental list indicated that pets were allowed. Immediately, the woman orally demanded and should legally receive from the broker... - ANS 100% of the paid fee If the license issued to the only active broker of a real estate corporation becomes void for any reason, another active broker must be appointed within 14 calendar days. Failure to appoint another active broker will result in what action against the corporation's registration? - ANS Automatic cancellation A sales associate employs an unlicensed personal assistant to help with real estate property management. The unlicensed assistant may NOT - ANS show a rental property to a potential tenant The broker must disclose at the time of signing, or before the owner signs the brokerage agreement, that Chapter 475, Part III, creates lien rights for commission earned by the broker, true or false? - ANS True One difference between a general partnership an a limited partnership is that... - ANS limited partners must make a cash or property investment Which business entity may be registered as a real estate broker? - ANS Limited partnership A broker is preparing to open Sunnyside Realty as a sole proprietorship and is placing an order to have an entrance sign made. Which wording does NOT need to be included on the sign? - ANS the address A licensed real estate broker and an attorney who specializes in contract law form a joint venture for the purpose of locating and selling investors raw land that is suitable for commercial development. Because they are performing real estate services for compensation, both must be licensed real estate brokers- true or false? - ANS True A broker receives conflicting demands concerning a roof inspection report. Both the buyer and the seller claim the earnest money deposit. The broker must... - ANS institute one of the statutory settlement procedures within 30 business days from the time the broker received conflicting demands The sales commission rates applicable to the various types of property sold in Florida are determined by... - ANS agreement between each broker and buyer or seller A real estate brokerage has on active broker who resigns unexpectedly due to a cancer diagnosis. A temporary broker may be registered with the DBPR for up to 90 days without the need to comply with the Secretary of State registration requirements. True or false? - ANS False In Florida, listings obtained and any commissions paid by the buyer or the seller are... - ANS legally the property of the sales associate's employer A real estate licensee may be paid a fee for referring buyers to a title company, provided the buyer is informed in advance of the facts concerning the fee, true or false? - ANS False Two brokers from different brokerages agree to work with one another to market a prestigious marina in Naples, Florida. One broker is particularly knowledgeable regarding marinas and the other is an expert on the Naples real estate market, so they decide to combine their expertise on this particular listing. This business arrangement is called - ANS a joint venture A person is eligible to seek recovery from the Real Estate Recovery Fund if that - ANS person received a final judgment against a licensee in a legal action and the case was based on a real estate brokerage transaction (assuming no specific exemptions apply) The decision as to whether probable cause exists is made by a majority vote of the - ANS probable-cause panel Which action would cause a license to be revoked without prejudice? - ANS A sales associate received her license as a result of an administrative error by the Division of Real Estate Which offense is a misdemeanor of the first degree? - ANS Failing to provide a current and accurate rental information for a fee Who prepares and submits a recommended order of findings and conclusions in a complaint case? - ANS Administrative law judge Any order issued by the DBPR secretary or a legally appointed designee that results from circumstances that pose an immediate danger to the publics health safety, or welfare is called a... - ANS summary or emergency suspension A buyer gives the broker a $47,500 earnest money deposit. The broker defrauds the buyer of the $47,500. The buyer sues the broker and is awarded a judgment in the amount of $62,500 for the original $47,500 deposit plus $15,000 for punitive damages. Because the buyer was unable to collect the judgment from the broker. the buyer requests relief from the Florida Real Estate Recovery Fund. How much can the buyer receive from the recovery fund? - ANS $47,500 The DBPR is authorized to investigate a written complaint filed against a licensee... - ANS if the alleged complaint is legally sufficient If a broker's license is suspended, the licenses of all sales associates working for that broker are... - ANS placed in involuntary inactive status One of the grounds for the suspension or revocation of a licensee's license is the unauthorized use of retention of money or property, otherwise called... - ANS conversion A licensee received a citation for $500 for operating as a sales associate without a registered employer. The sales associate feels the citation was issued in error. How should the sales associate proceed? - ANS File a written objection within 30 days When payment from the Real Estate Recovery Fund is made to satisfy a claim against a licensee and the claim was not the result of the broker complying with an escrow disbursement order, the Commission's action against the licensee must be... - ANS Mandatory suspension Florida Statute 455 requires real estate licensees to notify the DBPR of a conviction, plea or adjudication of a crime within how many days? - ANS 30 days The Florida Real Estate Commission may NOT impose with disciplinary penalty? - ANS Imprisionment The collective amount to be paid from the Real Estate Recovery Fund as a result of any one real estate transaction may NOT exceed... - ANS $50,000 The federal statute that prohibits a private homeowner from discriminating strictly on the basis of race if selling, renting, or leasing is the... - ANS 1866 Civil Rights Act The law requiring developers with subdivisions of 100 or more lots to register with the Consumer Financial Protection Bureau is the... - ANS Interstate Land Sales Full Disclosure Act The federal 1968 Fair Housing Act as amended prohibits discrimination based on... - ANS race, color, religion, sex, national origin, familial status, or handicap status A sales associate collects the rent for on absentee owner of a multifamily building. The sales associate must... - ANS deliver the rent to the sales associate's broker no later than the end of the next business day after receipt When security deposits or advance rents are required by a landlord in Florida, such funds... - ANS may be posted in the landlord's account if a sufficient surety bond has been posted The sales associates in a real estate office have been instructed to send all their Spanish speaking prospects to a new subdivision "beautifully designed with a Spanish flavor." This is an example of... - ANS steering A landlord who rents a duplex to two tenants is obligated to provide - ANS working smoke detectors Which disclosure must be given to tenants in multifamily buildings of five or more units? - ANS Notice of where deposit is held within 30 days If a tenant vacates rented premises promptly when a lease or tenancy expires, the landlord must - ANS inform the tenant within 30 days if part of the tenant's deposit will be claimed Does the Fair Housing Act apply to a property owner of a single-family home who owns the single-family property as a for sale by owner? - ANS No the Fair Housing Act does NOT apply If a tenant's rent is current and the tenant notifies the landlord of an intended absence, the landlord may - ANS Not enter the tenant's rented premises without the tenant's consent, except in an emergency How long does a landlord have to correct a noncompliance after receiving written notice from a tenant? - ANS 7 days An owner of a rental property decides to hire a different property management company. What are the requirements concerning the tenants' security deposits and advance rent if the current management company is holding the finds in its trust account? - ANS Transfer the funds to the new property management company with a final accounting showing the amounts to be credited to each tenant's account Which law prohibits hotels from discriminating against customers because of the customer's national origin? - ANS Civil Rights Act of 1964 Which phrase may legally be included in an advertisement to sell real estate? - ANS "Cute cottage home, perfect for first-time buyer" The MOST comprehensive interest in real property that an individual may possess is - ANS a fee simple estate Physical components of real property do NOT include - ANS equitable rights Fixtures are items that? Are fixed, or attached, to real property. Were once personal property bur are now real property. Have been incorporated as a part of real property. Are all of these. - ANS Are all of these Ad valorem taxes are assessed against each cooperative unit and each condominium unit- true or false? - ANS True The bundle of legal rights associated with real property includes... - ANS Control Possession Disposition A son gives his mother a conventional life estate for her lifetime. The deed states that upon her death, the property will transfer to her granddaughter. What type of estate does the granddaughter possess during the grandmothers lifetime? - ANS Remainder estate At the expiration of the lease period and before renegotiation of the lease, a tenant continued to occupy the apartment. The tenant's position is called? - ANS a tenancy at sufference A woman received a new microwave for Christmas. The microwave was installed above her range by screwing the unit to the kitchen cabinets and venting it through the attic. The microwave is considered... - ANS a fixture The homestead tax exemption is deducted from the - ANS assessed value of a property A husband and his wife own a home with title in both names. They have one minor child and one adult son. The husband dies. The widow now owns... - ANS the entire home through right of survivorship The real estate protected by homestead rights is limited to - ANS 160 acres outside a city or town or 0.5 acres in town A constitutional homestead is owned by a man who is head of a family consisting of himself, his wife, and three children. The man dies unexpectedly. After his death... - ANS by operation of law, the widow owns a life estate in the homestead, and the children are vested remaindermen Which estate features right of survivorship? - ANS Estate by the entireties Chapter 475 FS defines real property as any interest or estate in.... - ANS land, business enterprises and business opportunities, including any assignment, leasehold, subleasehold, or mineral rights In Florida, cooperatives and time-shares are regulated by the - ANS Division of Florida Condominiums, Time-shares, and Mobile Homes A condominium unit buyer has how long to cancel the purchase contract after signing an agreement with a developer? - ANS 15 days Developers of condominium projects with 20 or more units must give buyers - ANS a copy of the prospectus Does a purchaser of a condominium unit receive a deed to the particular unit? - ANS Yes they do Does it automatically create a tenancy by entireties if the person filing for the homestead is married? - ANS No A woman paid cash for a 60 acre lemon grove in Citrus County. The state is for an indefinite period of time. The woman does NOT own which type of property? Fee simple estate Freehold estate Leasehold estate Estate in severalty - ANS Leasehold estate