Real Estate Course Chapter 6 Flashcards Preview

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Flashcards in Real Estate Course Chapter 6 Deck (35):
1

A licensee who receives a notice of noncompliance for a minor violation must take action to correct the violation within 15 days.

TRUE

2

Most violations of Florida Statue 475 are legally misdemeanors of the second degree?

TRUE

3

The FREC may issue a summary suspension when a licensee's actions endanger the public.

The statement is FALSE. A summary suspension (or emergency suspension) must be issued by the DBPR Secretary or a legally appointed designee of the Secretary.

4

The Florida Real Estate Commission possesses the authority to sentence a licensee to imprisonment

FALSE

5

Members of the Florida Real Estate Commission determine and issue the final order in each disciplinary case

TRUE

6

The spouse of a judgment debtor is qualified to make a claim from the Real Estate Recovery Fund.

FALSE

7

Appealing a final order stops the enforcement of any penalty stipulated in that order.

FALSE

8

Examples of moral turpitude include embezzlement and crimes of larceny.

TRUE

9

The maximum payment from the recovery fund for claims based on judgments against a licensed real estate broker may not exceed $150,000.

TRUE. Payment for claims based on judgments against one broker or sales associate may not exceed, in total, $150,000.
Note: $50,000 per claim UP TO A MAXIMUM OF $150,000.

10

Suspension of an individual's license is a permanent penalty.

FALSE

11

Which violation is a third-degree felony?

A)Individual performs real estate services for compensation without a real estate license
B)Broker fails to register a trade with the Commission
C)Sales associate fails to deliver an earnest money deposit to her broker before the end of the next business day
D)False advertising

The answer is A) INDIVIDUAL PERFORMS REAL ESTATE SERVICES FOR COMPENSATION WITHOUT A REAL ESTATE LICENSE. It is a third-degree felony for an individual to perform real estate services for compensation without a real estate license.

12

When a consumer files a complaint against a real estate licensee that contains facts indicating that a violation of FREC rules, DBPR rules or Fla statutes has occurred, the complaint is said to be

A)prima facie evidence.
B)formal.
C)legally sufficient.
D)evidence.

The answer is C) LEGALLY SUFFICIENT. A complaint is legally sufficient if it contains facts indicating that a violation of Florida statute, or DBPR or FREC rule, has occurred.

13

The broker followed the directions issued in an escrow disbursement order that became the subject of a lawsuit. The consumer-plaintiff obtained a judgment against the licensed real estate broker. It is determined that the consumer is eligible to seek reimbursement from the Recovery Fund. The Fund may NOT reimburse which expense?

A)Broker-defendant's court costs
B)Punitive damages
C)Plaintiff's attorney's fees
D)Broker-defendant's attorney's fees

The answer is B) PUNITIVE DAMAGES. In all cases, punitive damages, treble damages, and interest may not be recovered from the Real Estate Recovery Fund.

14

A sales associate fails to turn over to his broker rental income paid by a tenant. The sales associate spends the money for his own personal use. Which legal term applies to this situation?

A)Breach
B)Fraud
C)Conversion
D)Concealment

The answer is C) CONVERSION. Conversion is the unauthorized control or use of another's personal property.

15

A case is heard before an administrative law judge in a formal hearing. In such cases, who renders the final order?

A)DBPR secretary
B)Administrative law judge
C)FREC (with members who served on the probable-cause panel excused)
D)Attorney general

The answer is C) FREC (WITH MEMBERS WHO SERVED ON THE PROBABLE-CAUSE PANEL EXCUSED). The FREC (with the members who served on the probable-cause panel excused) issues the final order. In matters heard by an administrative law judge in a formal hearing, the FREC reviews and considers the administrative law judge's findings and recommended order before issuing its final order.

16

A broker places an earnest money deposit into the broker's business operating account. The broker can be disciplined for which violation?

A)Misrepresentation
B)Conversion
C)Concealment
D)Commingling

C) Commingling

17

Under Florida Statute 455, which penalty may be imposed on an individual for unlicensed practice of real estate?
A)$5,000 fine per count
B)Revocation
C)Suspension
D)Any of these penalties may be imposed

The answer is A) $5,000 FINE PER COUNT. Revocation and suspension are penalties that may be imposed against a holder of a real estate license. The DBPR is authorized to issue fines of up to $5,000 per count to a person it finds guilty of unlicensed activity.

18

Which penalty is NOT an administrative penalty that may be imposed by the FREC?

A)Revocation
B)Probation
C)$5,000 fine for violation of Chapter 455
D)Restitution to the injured party

The answer is D) RESTITUTION TO THE INJURED PARTY. The FREC does not have the authority to order restitution to an injured party. If the acts of a licensee harm a consumer, the injured party may seek damages in a court of law.

19

A licensee has how many days to file an appeal once the final order has been issued?

A)30
B)60
C)45
D)90

The answer is A) 30. The licensee-respondent may challenge the final order within 30 days by filing a petition for judicial review.

20

buyer was defrauded by a real estate licensee. The buyer is awarded a judgment against the licensee in the amount of $7,000 damages plus $2,300 for attorney's fees and court costs. The buyer has been unable to collect on the judgment, but it is determined that the buyer may seek reimbursement from the Real Estate Recovery Fund. How much can the buyer recover from the Fund?

$7,000. The buyer can recover the amount of the judgment up to $50,000 or the unpaid amount of the judgment, whichever is less. The buyer cannot be reimbursed from the Recovery Fund for court costs or attorney's fees.

21

The maximum amount that may be collected from the Real Estate Recovery Fund as a result of a single real estate transaction is

A)$150,000.
B)$50,000.
C)$25,000.
D)$100,000.

The answer is B) $50,000. Payments for claims arising out of the same transaction are limited, in total, to $50,000 or the unsatisfied portion of a judgment claim, whichever is less.

22

broker who fails to pay an earnest money deposit at the title closing in accordance with the contract for sale and purchase may be charged with which offense?

A)Failure to account for and deliver
B)Moral turpitude
C)Breach of contract
D)Commingling

The answer is A) FAILURE TO ACCOUNT FOR AND DELIVER. Failure to account for and deliver is the act of failing to pay money to a person entitled to receive it.

23

A warning for an initial offense that allows a licensee to correct the minor infraction without consequence is known as a(n)

A)administrative fine.
B)letter of reprimand.
C)citation.
D)notice of noncompliance.

The answer is D) NOTICE OF NONCOMPLIANCE. A notice of noncompliance is a warning for a minor violation of an initial offense that allows a licensee 15 days to correct the minor infraction without consequence.

24

The FREC imposes an administrative penalty on a broker for violation of license law. Within how many days after the final order is filed does the order become effective?

A)90
B)60
C)30
D)15

C) 30

25

Another term for a formal complaint is

Administrative complaint

26

What is the usual action of the Commission if a real estate licensee is found to have violated the Uniform Standards of Professional Appraisal Practice as defined in Florida license law?

FIVE-YEAR SUSPENSION UP TO REVOCATION. Rule 61J2-24.001,

27

Who renders a determination as to whether probable cause exists?

A)DBPR investigator
B)Two-FREC-member panel
C)Seven-member Commission
D)Administrative law judge

The answer is B) TWO-FREC-MEMBER PANEL. The probable-cause panel is composed of two members of the FREC. The probable-cause panel's sole responsibility is to determine whether probable cause exists

28

What is another word for emergency suspension?

Summary suspension.

29

What is the breaking of a promise or obligation, either by an acto f commission or omission, default, nonperformance?

Breech

30

A licensee's personal use or misuse of a client (or customer's) money is called

Converson

31

Guilty of failing to use the care a reasonable person would exercise

Culpable negligence

32

What is the technical term used for an agreement as to the facts of a case and the penalty reached between a licensee and the DRE

Stipulation

33

Seven steps are involved in the process of dealing with complaints of alleged violations. They are:

1) Complaint filed
2) Investigation of the complaint
3) Probable cause determination
4) Formal complaint is issued if probable cause is found
5) Informal or formal hearing is conducted
6) Final order is issued
7) Judicial review (appeal) of the final order

34

True or False. An alleged violation need not pertain to real estate transactions or have taken place in Florida

TRUE.

35

When an administrative complaint is mailed to licensee, the licensee also receives an

Election of RIghts