Flashcards in Chapter 2 - License Law and Qualifications for Licensure Deck (71):
What does caveat emptor mean?
It is Latin for "let the buyer beware"
What does the Florida Real Estate Commission do and when was it created?
It keeps records, conducts investigations; and grants, denies, suspends, and revokes registrations; it was created in 1925 by the Florida Legislature
The Division of Real Estate is _______ the Department of Business and Professional Regulation.
What is the first step of a real estate career in Florida?
A licensed sales associate
Sales associates must work under the direction of an _____________.
What is an owner-developer?
An unlicensed entity that sells, exchanges, or leases its own property
What is an example of an owner-developer?
A real estate development company that owns land that it develops into subdivisions, and then builds and sells homes
What is a broker associate?
An individual who holds a broker's license but who chooses to register and work in real estate under the direction of another broker
Licensee applicants must submit their __________ as part of the license application process.
Fingerprints; the applicants fingerprints are scanned and electronically submitted to the Florida Department of Law Enforcement and to the FBI
Can a nonresident become licensed in Florida? If so, what must they do?
Yes; they must sign the irrevocable consent to service section on the application form
What are the nine states in which the FREC has entered into mutual recognition agreements with licensing authorities?
How does the FREC define a resident of Florida?
A person who has resided in Florida continuously for a period of four calendar months or more within the preceding year
What are the qualifications for a sales associate applicant?
Must be 18 years of age or older
Have a high school diploma or equivalent
Be honest, truthful, trustworthy, of good character, and have a reputation for fair dealing
Be competent and qualified to make real estate transactions and conduct negotiations with safety to investors and others
What information must an applicant disclose when completing an application for licensure?
If ever convicted or found guilty of a crime or ever entered a plea of nolo contendere (no contest)
If any name or alias other than the name signed on the application has ever been used (inc. maiden name)
If he has ever been denied registration or a license to practice any regulated profession, business, or vocation, or has had his registration or license suspended or revoked
If he has been guilty of any conduct or practice that would have been grounds for suspension or revocation had the applicant then been licensed to practice real estate
What are the education requirements for sales associate candidates?
Must successfully complete Course 1 or an equivalent FREC-approved pre license course
What does Course 1 consist of?
60 hours of instruction plus 3 hours for an end-of-course exam; the EOC exam consists of 100 questions worth 1 point each and is normally organized with 45 questions on principles and practices, 45 questions on real estate law, and 10 math questions
What are sales associates required to do before the first renewal of their license?
Successfully complete a prescribed 45-hour post-licensing education
After completing the post-licensing education requirement during the initial license period,
Active and inactive licensees must complete at least 14 hours of continuing education during every two-year license period after that
What are the education requirements for broker applicants?
Successfully complete Course 2 or an equivalent FREC-approved course (unless qualifying as a broker under the mutual recognition provision)
What does Course 2 consist of?
69 hours of instruction plus 3 hours for the end-of-course exam
What are the experience requirements for broker applicants?
Having held an active real estate license for at least 24 months during the five-year period
What happens if a broker does not complete the 60-hour post-licensing education before the first renewal of their license?
Their broker's license becomes null and void
What does the broker continuing education consist of?
The same as required for sales associates
What does the sales associate continuing education consist of?
14 hours -
3 must consist of core law that includes updates to applicable rules and statues
May be satisfied by attending a classroom course, by completing an approved distance education course, or by attending a Commission-approved education seminar or conference
What does real estate services include?
Any real estate activity involving compensation for performing the service for another
What are the 8 services of real estate?
A BAR SALE
Advertise real estate services
Rent or provide rental information or lists
What is compensation defined as?
Anything of value or a valuable consideration, directly or indirectly paid, promised, or expect ted to be paid or received
A property owner ___________ need a real estate license to buy, sell, exchange, or lease his own real estate
Who are five individuals who are exempt from holding a real estate license?
1. Salaried employees who work in an on-site rental office in a leasing capacity and who do not receive commission
2. Attorneys-at-law when acting within the scope of their professional duties in an attorney-client relationship
3. Persons who sell cemetery lots
4. Court-appointed individuals acting within the limitations of their duties
5. Hotel and motel clerks who rent lodging accommodations on behalf of the establishment
A licensed sales associate may operate:
For the broker registered as the sales associate's employer
A sales associate applicant is required to comply with what requirements?
Submit an application fee
Be 18 years of age or older
Have a high school diploma or its equivalent
Sarah's license status as registered with the DBPR is broker associate. What is true about Sarah?
She holds an active license
She is broker-qualified
She has an employer
What is the intent of the Florida Legislature concerning the 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
When less-constraining measures of regulation are not available or apparent
A sales associate applicant is not required to disclose which information on the license application?
Proof of US citizenship
Is a sales associate allowed to sell real estate for two different companies?
No, they would be in violation of F.S. 475
What is the Latin term for a plea of "no contest"?
Is a non licensed person allowed to sell real estate?
Yes, as long as they are not accepting compensation for the sale
To receive a notice of satisfactory completion of Course 1 or Course 2, a student may not miss more than ____ hours.
Devora received her Florida sales associate's license in 2008. What requirement must Devora complete to become a licensed real estate broker?
Successfully complete the 45-hour post-licensing course
Vincent Black has a North Carolina broker's license, but he is not licensed in Florida. He sells a parcel of land he owns in Florida. Assuming all else is proper, this is a legal transaction because:
Florida law exempts from licensure individual owners selling their owl 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 being to operate as a licensee when the:
Applicant is noticed of having passed the state exam and has filed the appropriate form with the DBPR
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:
Must requalify for licensure
Services of real estate do not include:
selling cemetery lots for compensation
Who must be licensed in practice real estate in Florida?
Anyone who performs any of the services of real estate for another for compensation, unless specifically exempted by law
Who is not exempt from licensure under F.S. 475?
An employee of a real estate developer who receives a salary plus bonuses based on sales quotas
Who is exempt from licensure under F.S. 475?
Salaried employees of a governmental agency who perform real estate services for the state and do 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
A salaried individual manages a condominium building and rents units for three-month to six-month periods. The manager:
Is exempt from licensure under F.S. 475
Rhoda is an on-site manager of an apartment complex. Rhoda receives a meager salary from the owner of the apartment complex. According to F.S. 475, Rhoda
Is exempt from licensure
FBI files reveal that six months ago, Mr. Croft 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, Mr. Croft agreed to revocation of his real estate license and entered a plea of nolo contedere. The FREC has just received Mr. Croft's application for licensure as a sales associate disclosing the above information. The application shows that all academic requirements have been met, and a background check reveals no incriminating information other than the facts mentioned above. The FREC will probably decide that:
Mr. Croft is not qualified for licensure
Is a broker allowed to refer a client to another broker in another state?
Yes; to do so, real estate brokers should make a written referral agreement between brokers to be able to cooperate in a sale
Joe is an appraisal graduate student at a state university. He is sent to appraise Farmer Tom's property. Because it is such a good property, Joe asks Tom to list the property for sale. Does Joe need a real estate license?
Yes, he needs a license because he wants to list the property, not just appraise it
A person owns her own company specializing in negotiating sales of property for buyers and sellers. She does not take listings or show property. Does she need a real estate license to do this?
She needs a license because she negotiates sales between buyers and sellers
Which would not require a real estate license?
A property manager who takes leases up to one year
A motel desk clerk gives the names of persons looking to purchase a home to a broker in exchange for a small fee. Which best describes the situation?
He would need a license since he was accepting compensation from a broker
A resort manager leases condominiums to out-of-town guests for several months at a time. The resort is licensed under 509 FS. He advertised the condos in a magazine with national exposure. Does this manager need a Florida real estate license?
No; a manager is an employee of a resort company licensed under 509 FS
The three categories of real estate licenses are:
Which act or crime could disqualify an individual from becoming a licensee?
Committing a crime of moral turpitude
Which does not appear on a real estate license?
The name of the chairperson of the FREC
A license applicant who has committed a crime of moral turpitude will:
Probably not be granted a real estate license
For her first renewal, Broker Marie mistakenly took 14 hours of continuing education instead of the broker post license course. Marie:
Can no longer work as a broker because her license is null and void
The phrase "Caveat Emptor" most nearly means:
Let the buyer beware
Jim is a convicted felon. He was found guilty of cheating on his income tax for four years and he served time in jail. He has completed his sentence and wants to become a real estate sales associate. Which is most nearly correct?
Jim must disclose his conviction on his real estate application
Jane is a college graduate with a four-year degree in real estate. She has a sales associate's license and seeks to renew the license for the second time. What must she do?
She must take 14 hours of continued education. She must fill out the form, pay the fee, and return it before the expiration date
Katherine loves to show and sell houses for others for compensation. She has been doing so for two years and without a license. She has been caught and she wants to obtain a license. What is likely to happen?
The FREC may deny her license since she was holding herself out to be a licensee, practicing real estate in the previous year
Janice did not answer truthfully on the background page of her application for licensure. When the Department found the discrepancy, she was asked about it and she did not tell the truth again. What will likely happen to her application?
The application will be denied and she may be subject to subsequent disciplinary action
When must the sales associate's post-license be completed?
Before the first license renewal
How many hours is a broker's pre-license course?
A $1.5 billion agency regulating one million professionals and businesses across some 200 licensee categories in Florida is:
The Florida Department of Business and Professional Regulation
Pearson Vue is:
Florida Testing Service for real estate
When is a candidate given the results of his licensing exam?