State Laws License Law True/False

Question 1

A check may be used as earnest money.

Answer 1

True

Question 2

A promissory note is considered legal, tender that may be used as binder money.

Answer 2

False

Question 3

Cash or securities are acceptable, legal tender to be deposited in the broker’s escrow account.

Answer 3

True

Question 4

A potential renter signed a rental agreement with a broker. The broker shared inaccurate information & a potential tenant did NOT find a rental property. The rental agent is required to refund 100% of the rental fee.

Answer 4

True

Question 5

It sales associate can accept deposits on behalf of the broker, if the check is made payable to the sales associate.

Answer 5

False:
Payable to broker

Question 6

In order for a sales associate, to accept deposits, on behalf of the broker, the check must be payable to the broker & the broker must have given express consent.

Answer 6

True

Question 7

Broker took a listing and sold the property, but concealed some material information from seller. Even though the property was sold, broker may be guilty of culpable negligence.

Answer 7

True

Question 8

Broker New, the buyer wanted to build a commercial building, but didn’t complete due diligence and sold a parcel to buyer. Prior to closing buyer discovered that a commercial building could not be built on the property. Seller allowed cancellation and return the earnest money. Since by received his money back, broker is NOT culpable.

Answer 8

False

Question 9

Example: broker knew the buyer wanted to build a commercial building, but didn’t complete due diligence and sold a parcel to buyer. Prior to closing buyer discovered that a commercial building could not be built on the property. Seller allowed cancellation and return the earnest money. Since buyer received his money back, broker is not culpable.
Answer: false

In the above transaction, broker may be guilty of culpable negligence.

Answer 9

True

Question 10

An individual was awarded $45,000 damages and $15,000 compensatory damages. The entire $60,000 may be recovered from the recovery fund.

Answer 10

False:
$50,000 maximum

Question 11

The soul officer of a corporation licensed as a broker failed to renew his license. The corporate license is immediately canceled.

Answer 11

True:
But can be reinstated if a replacement is found within 14 days

Question 12

If FREC believes someone has criminally violated the license law, FREC may further case to the state’s attorney.

Answer 12

True

Question 13

The broker faced with conflicting demands, may return the check to the buyer.

Answer 13

False

Question 14

The broker face with conflicting demands, may arbitrate, mediate, or request an escrow disbursement order.

Answer 14

True

Question 15

Brokers residential escrow account may contain $2000, personal funds and $3000. Trust funds.

Answer 15

False:
Maximum $1000 personal funds in residential account

Question 16

Brokers property management escrow account may contain up to $7500 of personal, business, and trust funds.

Answer 16

False:
Maximum of $5000 personal or business funds

Question 17

A high-performance sales associate can’t stand the noise and chaos in the brokers office and offers to pay the expenses if he could open his own office elsewhere. The sales associate may open his own office as long as the office sign is in compliance with statutes.

Answer 17

False

Question 18

Example: A high-performance sales associate can’t stand a noise and chaos in the brokers office and offers to pay the expenses if you could open his own office elsewhere. The sales associate may open his own office as long as the office sign is in compliance with statues.
Answer: False

The sales associate above could operate out of his house if it complied with all requirements.

Answer 18

True

Question 19

It sales associate may NOT be registered to a broker and also registered under an owner-developer.

Answer 19

True

Question 20

The sales associate may hold multiple licenses.

Answer 20

False:
Sales associate may hold one license

Question 21

The term for an ad placed by a licensee without listing, the name of the broker is a blind ad.

Answer 21

True