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1

Which of the following statements is true regarding a mortgage loan originator (MLO)?
A. A mortgage loan originator is the same as a mortgage broker
B A mortgage loan originator must have a separate license.
C A mortgage loan originator makes the loan
D A mortgage loan originator must have a real estate license

B A mortgage loan originator must have a separate license

2

A real estate appraiser's fee for professional service is based on which of the following?
A A percentage of the property's gross income
B A percentage of the fair market value of the property
C The time and difficulty of the apprasal
D A percentage of the property's sale price

C The time and difficulty of the appraisal

3

Which of the following best describes the real estate brokerage business?
A Service Business
B Simple Business
C Business with few opportunities available
D Construction Business

A Service business

4

All of the following are responsibilities of a property manager, EXCEPT
A Renting property for an absentee owner
B Collecting Rent
C Overseeing Maintenance
D Preparing Leases

D Preparing Leases

5

What does the term "Farming" refer to in real estate?

A Specializing in one geographic area
B Working in a cooperative manner
C Specializing i agriculture properties
D Specializing in the sales of orange groves or cattle farms

A Specializing in one geographic area

6

Which insurance policies can a real estate license offer to the public without additional state licensing.
A Flood Insurance
B Fire Insurance
C Renter's Insurance
D None of the Above

D None of the Above

7

What is the purpose of the National Association of Realtors?
A Preserve the right of individuals to own real property through an exchange of information.
B Organize antigoverment activities
C Promote unethical practice of real estate professionals
D Promote unethical practice of real estate professionals

A Preserve the right of individuals to own real property through an exchange of information.

8

What does the designation of REALTOR signify?
A Anyone in possession of a real estate license is a REALTOR
B The designation identifies the real estate professional as a member of the NAR
C The designation is evidence that the licensee has an extensive background in the real estate profession.
D The designation is evidence that the licensee has completed extensive real estate studies.

B The designation identifies the real estate professional as a member of the NAR

9

A developer contracts to build a home according to the buyers specifications. This is an example of which type of building?
A Tract
B Custom
C Speculative
D Subdivison

B Custom

10

Which of the following best describes licensees who are involved in business brokerage?
A They must be able to analyze financial statements and understand balance sheets
B The are not required to know much about the business they are selling
C The must have a separate license
D They never become involved in the tax aspects of the business

A They must be able to analyze financial statements and understand balance sheets

11

Real Estate licensees are required to be knowledgeable in all the following areas, EXCEPT:
A Marketing
B Valuation
C Property Transfer
D Accounting

D Accounting

12

Which service provided by real estate license requires the most experience and knowledge?
A Property Management
B Counseling
C Appraising
D Agricultural Sales

B Counseling

13

An appraiser who is registered, licensed, or certified under F.S 475 Part II, must be utilized in which of the following

A All appraisals
B The appraisal of residential property
C The appraisal of non residential property
D Federally-related transactions

D Federally-related transactions

14

When a developer completes construction of a new subdivision, all streets, electric water and sewer installation are finished and deeded to the city or country. What is the process called?
A A Quit claim deed
B An easement
C Dedication
D Annexation

C Dedication

15

Which of the following assignments would be acceptable for a Florida Real Estate licensee who does not represent themselves as an appraiser, and follows the uniform standards of professional appraisal practice (USPAP)?
A An assignment to give an estimate of value for an attorney in a divorce case
B An assignment to appraise a single family home for a VA Loan
C A assignment to value a condominium for a FHA loan.
D A assignment to appraise a Time Share unit for which the loan is being obtained from a Federally insured institution

A An assignment to give an estimate of value for an attorney in a divorce case

16

The Florida Real Estate Commission was first created in what year?
A 1932
B 1925
C 1923
D 1919

B 1925

17

A Sales associate failed to complete the required post license education prior to their renewal deadline. What is the status of the sales associates license?
A Revoked
B Suspended
C Involuntarily Inactive
D Void

D Void

18

Which statement correctly applies to an actively licensed attorney who is a member in good standing with the Florida Bar?
A The attorney may charge commission in connection with real estate activities
B The attorney is exempt from biennial 14 hour continuing education requirements to maintain a real estate license,
C The attorney is not allowed to simultaneously hold a real estate license
D The attorney may be licensed as a real estate broker but not as a sales associate.

B The attorney is exempt from biennial 14 hour continuing education requirements to maintain a real estate license,

19

What is a brokers associate?
A A broker who employs one or more sales associates
B sales associate
C A broker who is employed as a sales associate
D A sales associate who is employed as a broker.

C A broker who is employed as a sales associate

20

Which statement is correct concerning an applicant whose real estate application was denied by the Department of Business and Professional Regulation?
A The denial is final and no appeal may be taken by the applicant
B An appeal may be filed with the District Court of appeal within 90 days
C The department is not required to inform the applicant of the reason for the denial
D The applicant must be notified in writing of the reason for the denial and advised of the right to request a formal hearing

D The applicant must be notified in writing of the reason for the denial and advised of the right to request a formal hearing

21

A licensed sales associate wishes to work for a Broker A during the week and works in a different town with Broker B during the weekend. Which statement best describes this situation?
A This is legal if the sales associate has a group license
B This is legal if the broker has multiple licenses
C This is a violation of FS.475
D This is legal, provided that the sales associate is an independent contractor, not an employee of the brokers.

C This is a violation of FS.475

22

A active Florida Licensee decides to move to North Carolina, but wishes to keep her Florida Real Estate license active and continue to practice real estate in Florida. Which of the following best describes her situation?
A The licensee must be located in Florida to sell in Florida.
B The licensee must be a broker to sell real estate in Florida if she is located outside of Florida.
C The licensee must obtain a North Carolina real estate license.
D The licensee must notify the Department of her change of address and continue to comply with all Florida regulations

D The licensee must notify the Department of her change of address and continue to comply with all Florida regulations

23

Which of the following statements is correct regarding a brokers authority to act on behalf of the principal?
A A broker can refuse offers o behalf of the principle
B Broker can buy the listed property without consent of the principal.
C A Broker must follow all legal instructions of the principal or withdraw.
D A broker must ignore the instructions of a principle when the instructions are not in the best interest of the principle

C A Broker must follow all legal instructions of the principal or withdraw.

24

Broker Tom sold a property which was listed with Broker Alice. Tom was unable to attend the closing so Alice collected the entire commission. Alice refused to pay Tom his share of the commission. What could Alice be charged with?
A Failure to account
B Collecting an overage
C Commingiling
D Fraud

A Failure to account

25

A Real Estate license who is working with a seller receives a call from another broker stating that "I am representing a buyer as the buyers broker". "What can the licensee infer from this conversation?
A The licensee is required to collect the No Brokerage Relationship Disclosure prior to giving any information to the broker
B The agent who is calling is in a single agency relationship
C The buyers brokers must first contact the listing broker for permission to enter into this relationship.
D Unless that licensee is a single agent for the seller, the licensee should stay away from the transaction.

B The agent who is calling is in a single agency relationship

26

Which brokerage relationship status includes a full fiduciary relationship?
A Single Agency
B Transaction Broker
C Dual Agency
D Non-representation (no brokerage relationship)

A Single Agency

27

Six individuals decide to form a real estate brokerage partnership. All six individuals are planning to be active in real estate sales. Which statement best applies?
A The partnership must be registered with the commission, and all six partners must be active real estate brokers.
B At least one partner must be licensed as an active broker.
C Only two partners must have a a real estate license.
D A partnership cannot be formed as a brokerage business.

A The partnership must be registered with the commission, and all six partners must be active real estate brokers.

28

All of the following business formations can register to conduct real estate transactions, EXCEPT:
A Corporation for profit
B Not for profit Corporation
C Corporations Sole
D Limited partnership

C Corporations Sole

29

A real estate brokerage firm advertises a listed property. Which requirements is correct?
A The name of at least one sales associate must be included in this ad.
B The name of the brokerage must be included in the ad.
C The ad may not be prepared by sales associate.
D The names of sales associates may not be included in the ad.

B The name of the brokerage must be included in the ad.

30

a buyer drops off an escrow check on Tuesday. To avoid any trouble with FREC, the broker must deposit the check by close of business on which day?
A The following Monday
B Wednesday
C Thursday
D Friday

D Friday