State Laws Miscellaneous Topics True/False Flashcards
(109 cards)
1
Q
If a broker’s license gets revoked, licensees may continue as is for 60 days.
A
False:
All licenses are involuntarily inactive
2
Q
Active Florida brokers, inactive Florida brokers, & unlicensed individuals may serve as officers & directors of a real estate brokerage corporation.
A
True
3
Q
All officers & directors of a real estate brokerage corporation must be active or inactive Florida brokers.
A
False:
Unlicensed individuals may be officers
4
Q
An officer of a brokerage corporation who strictly performs managerial functions for the brokerage, including bookkeeping & account duties, & taking minutes of corporate meetings, must be a licensed broker, activated or not activated, or registered with the DBPR.
A
True
5
Q
A real estate brokerage corporation has 2 active brokers. If one of the brokers dies or resigns, the licenses of the sales associates & broker associates under the brokerage corporation remain unaffected.
A
True
6
Q
FREC may administer fines of $10,000 per offense.
A
False:
$5,000 maximum fine per offense
7
Q
FREC may enact bylaws for its governance.
A
True
8
Q
FREC may suspend a licensee’s license for up to 10 years
A
True
9
Q
Trust account deposits & record keeping must be maintained in compliance with Florida Law & Commission rules & each broker must do what DBPR tells them to do.
A
True
10
Q
A customer tells the broker who is in possession of the abstract that the abstract belongs to him. The broker does not know who the abstract belongs to. The broker should contact FREC & ask its advice.
A
True
11
Q
According to Florida Statues, “Trust” or “Escrow” means cash or checks held by a party to the transaction.
A
False:
Money or other things of value held by a broker for others
12
Q
Broker Betty does real estate sales & property management. She receives a check for $1,000 from a tenant that secures a lease in a residential apartment. $500 is for the deposit & $500 is for the first month’s rent. She should deposit the check into a property management escrow account.
A
True
13
Q
The real estate industry is subject to State & Federal antitrust laws only.
A
False:
State, Federal, & International Antitrust laws
14
Q
Management services can be invested by a partner.
A
False
15
Q
Cash, real property, or equipment can be invested by a partner.
A
True
16
Q
Licensee was guilty of a minor violation resulting in a notice of noncompliance. Licensee has 30 days to respond without penalty.
A
False:
15 days to respond without penalty.
17
Q
Broker, when operating the sales escrow account, must prepare a written, monthly bank statement showing escrow (trust), liabilities.
A
True
18
Q
When performing appraisal services for a reasonable fee under Florida real estate, license law, USPAP can always be waived.
A
False:
May never be waived
19
Q
A broker who enters into a no brokerage agreement, represents either the buyer or the seller.
A
False:
Represents neither the buyer nor the seller
20
Q
During the course of a hearing, witnesses can always be crossed – examined by the licensee, as long as it is pertinent to the case.
A
True
21
Q
From the date of lease termination, the tenant has the right to object to the imposition of the landlords claim for a total of up to 45 days.
A
True:
Landlord, not within 30 days; tenant has 15 days to object
22
Q
The money in the recovery fund comes from the DBPR, fines, application, fees, and renewal fees for active and inactive licensees.
A
True
23
Q
The FREC may require each licensee, both inactive and active, to pay a contribution to the recovery fund if the balance drops below $1 million.
A
False:
Minimum is $500,000
24
Q
Items reviewed by the division of real estate. Inspector would include ledger books, computer records, monthly, reconciliation statements, bank statements, and canceled checks.
A
True
25
Broker Alice representative buyer as a transaction broker. Broker Alice must give the no brokerage relationship notice to all sellers before showing their property to the buyer.
False:
an FSBO before showing their property to the buyer
26
Broker Lonnie is not required to give any notice to a homebuyer to whom he intends to give limited representation.
True
27
The no brokerage relationship must be fully described and disclosed in writing to an unrepresented buyer within three days after closing.
False:
Before, or at the time of showing a property
28
Unpaid property taxes are delinquent on January 2.
False:
April 1
29
They total of $1 million is the authorized recovery fund limit.
True
30
Each active and inactive licensee is charged a recovery fund fee when a new licenses issued or an existing one is renewed.
True
31
Money from the recovery fund may be used to pay for a licensees defense and a real estate related lawsuit.
False
32
Even though certain expectations apply, an active real estate licensee is legally entitled to appraise real property for compensation concerning a non-– federally – related transaction as long as licensee complied with USPAP and does not represent. The licensee is a licensed appraiser.
True
33
First Bank of Florida hired sales associates perform a broker price opinion (BPO). The compensation must be paid directly to the sales associate.
False:
Must be paid directly to the broker
34
USPAP Stan for uniform standards of professional appraisal practice.
True
35
Sales associate performed a broker price opinion, and called it an “appraisal.” This is not a violation of chapter 475 and FREC could **_NOT_** take disciplinary action, because FREC has no authority over broker price opinions.
False:
It is a violation of chapter 475 and FREC could take disciplinary action
36
Sales associate performed a BPO. The employing broker must be paid directly.
True
37
Broker gathered information on recent sales, current, and expired listings. This is called an appraisal.
False:
This was a comparative market analysis (CA)
38
Real estate licensees must comply with USPAP when conducting CMA’s or BPO’s.
False:
As long as they are not represented as an “appraisal”
39
All appraisals, regardless of who performs the appraisal, must comply with USPAP
True
40
Considerations and determining investment value, include interior, considerations, exterior considerations, and building, operating expenses, but **_NOT_** market activity.
True
41
A broker may refer to a CMA or BPO as an “appraisal”
False
42
The Department of agriculture and consumer services maintains a no sales solicitation call registry for consumers as part of the national national. Do not call registry. A broker May, a for sale by owner (FSBO), whose name is on the registry in an attempt to solicit a listing.
False:
Only to show to a bona fide purchaser
43
Chapter 475 mandates certain duties and obligations in each type of brokerage relationship. However, the disclosures required under chapter 475 are required only when dealing in residential transactions.
True
44
Broker has a single agency with seller. Buyer wants agency representation. Broker may represent both as a dual agent.
False
45
Rumors and questionable facts must be disclosed if in a single agency relationship.
True
46
A broker who works in a capacity of limited representation for either the buyer, the seller, or both in the same transaction is a limited broker.
False:
Transaction broker
47
Broker has a single agency with seller. Buyer also wants agency representation. Broker must get written consent to transition to transaction broker status.
True
48
Broker has a “no brokerage” relationship with seller who listed at $88,000. the property is worth $98,000. Broker **_CANNOT_** discuss the value of the property when showing to a prospective buyer.
False:
Broker must tell perspective the value of the property
49
A single agent listing brokers working with a buyer interested in that listing. The transition to transaction broker form must be signed at the same time as the purchase and sale contract is signed.
False:
Before showing
50
Broker has taken a listing in a single agent relationship. Broker is also working with a buyer in a single agent relationship. If the buyer wants to see this listing, broker must have either party dropped to no brokerage or have buyer and seller both transition to transaction brokerage before showing.
True
51
Owners are going through a divorce and decided to list with Bob for $79,000, but they disclosed to Bob that in order to facilitate a quick sale they would accept $74,500. Bob is showing the property to his best friend Bill who is very interested. Bob should suggest that Bill make an offer very close to, but not exactly, $74,500.
False:
Should let Bill decide what to offer
52
Condominium owner had an inspection done prior to the sale and discovered a roof leak. Broker did not disclose. Purchase of sold one year later and buyer discovered the leak. Broker is responsible and his license could be suspended.
True
53
A universal agent has more authority than a special agent, or a general agent.
True
54
When owner contacted broker to list his property, owner indicated that she wanted a certain amount of money after the commission was paid. This would be a net listing broker received everything above that amount as his commission:
True
55
Owner listed with broker. Broker had an interested prospect but before presenting an offer, the seller declared and was granted, chapter 7 bankruptcy. The bankruptcy **_DID NOT_** have an effect on the listing contract.
False:
The bankruptcy terminated all executory contracts
56
A local real estate board or MLS that sets commission rates or splits between cooperating brokers is **_NOT_** guilty of antitrust.
False
57
Developer created a marketing plan to sell lots. Developer mailed postcards to all owners in a particular neighborhood advertising the new development. Interested parties could register to a free lot by returning the card with $100 registration fee. This type of marketing has been judged and unfair practice by FREC and a violation of Chapter 475.
True
58
Typical commissions in Madison County, Florida are 10%. When determining the amount of commission between a broker and a seller, the broker can **_ONLY_** charge 10%.
False:
Broker can charge whatever amount is agreed-upon by both parties
59
Ethical performance is in conflict with good business.
False
60
Some actions may be legal but unethical.
True
61
An agent’s trade group that requires upgrading professionalism & ethical standards of its members is the National Association of Real Estate Agents.
False:
National Association of REALTORS
62
Sales Associate is dissatisfied with her present broker & decides to register with a different broker. Prior to leaving, Sales Associate takes original listing contracts & pending transaction files from Broker’s office. Sales associate is guilty of perjury.
False:
Larceny
63
A real estate licensee may perform an appraisal of mineral rights for compensation as long as it complies with USPAP.
True
64
Auctioning farmland requires a license under Chapter 475.
True
65
An employee of ZZZ Syndicator only sells or leases property owned by ZZZ Syndicator. Her salary is based on sales & leases. Employee is **_NOT_** required to comply with all licensing requirements.
False:
MUST comply with all licensing requirements
66
If the unlicensed manager of a 20-unit condominium helps an owner rent his unit without compensation, this is **_NOT_** a violation of Chapter 475.
True
67
A sales associate applicant who successfully passes the state exam may legally begin to “operate” as a licensee when a broker agrees to hold the license & the license is registered at DBPR.
True
68
An individual who paid $375 for rental information served notice within 2 weeks that he did not rent any property. The broker must return the full $375.
False:
Return 75% ($281.25)
69
A prospective tenant paid $100 to a rental list broker. When prospective tenant notified broker 2 weeks later that a rental was not found, broker returned $50. The broker has no further obligation.
False:
Broker owes prospective tenant $25
70
Sales associate’s license was renewed. He must have completed at least 14 hours of continuing education since the last renewal of the current license.
True
71
Sales Associate did not complete the 45 hour post-license course. Sales Associate’s license is involuntarily inactive until completion of the course.
False:
License is null & void
72
A licensee who takes the 3 hour core law course in each year of the renewal period receives 6 hours of credit toward the 14 hour continuing education requirement.
True
73
If the post-licensing requirement is not fulfilled before the first renewal & there is a desire to continue in the real estate business, the licensee must requalify for the license.
True
74
A licensee may substitute attendance at one legal agenda session of the FREC for 3 classroom hours of continuing education credit.
True
75
Sales Associate Molly is licensed to All Realty LLC & her husband is a broker/builder. Her husband is developing lots in a new community. Molly shows models in the development & earns a commission. This is legal because she is the spouse of the broker/builder.
False:
It is illegal to work for 2 brokers
76
The FREC discovered that a Florida sales associate was involved in business practices involving tricks in Georgia that would be against license law in Florida. FREC can suspend the sales associate’s license.
True
77
Three brokers registered & licensed separately want to join forces & develop a 10 acre plot into a shopping mall. They also want to secure tenants & share in profits & losses. This is a legal joint venture & there is no requirement to register the partnership with the DBPR.
True
78
Owner is moving & rather than selling his house, he decides to rent it. He asks his neighbor, a licensed sales associate, to watch over the house, collect rent, & deposit it into the bank. This is illegal because a broker license is required to perform these services.
False:
It is legal because there is no compensation
79
Broker reached agreement to purchase on October 5 but hadn’t renewed broker license by September 30. Broker activated the license by the October 20 closing date. Broker’s license could be suspended & the commission may be forfeited.
True
80
An unlicensed assistant **_MAY NOT_** drive a prospective buyer or tenant to a property, open the door, & answer questions concerning a listing by making subjective comments.
True
81
An agent with 2 appointments assigns her unlicensed assistant to take 1 couple to a property. Agent writes information on a note card. Assistant opens and shows buyer around the property & then reads from the card. This is ok because the assistant is an employee.
False:
Not ok because the assistant doesn’t have a license
82
An unlicensed assistant at an open house may **_NOT_** give an opinion of value or cost to repair an item.
True
83
An unlicensed assistant at an open house may be in attendance for security purposes, may hand out printed materials, & may give objective answers obtained from approved printed information.
True
84
A broker who is incarcerated in a Federal penitentiary for illegal activities unrelated to his real estate license may be subject to revocation of license.
True
85
A citation is a first response to a minor violation by a licensee.
False:
Notice of noncompliance
86
Chapter 61J2 is the FREC rules to expand upon the statutory provisions of Statutes by addressing in greater detail the principles of practice for the real estate profession.
True
87
The Chapter of the Florida Statutes that defines the general legal practice & procedure for the DBPR & the licensees of all professions regulated by the DBPR, including real estate, is Chapter 475.
False:
Chapter 455
88
Quasi-legislative powers have been delegated to FREC to enact rules & regulations & decide questions of practice & validate records.
True
89
The maximum license suspension period is 7 years.
False:
10 years
90
The FREC suspended a broker’s license for 1 year & issued a fine of $1,000. Additional action could include civil penalties through a lawsuit & criminal penalties including imprisonment.
True
91
Broker told sales associate to perform an unlawful act. Sales associate should ignore the directive.
False:
Should refuse to follow the instructions & report it to the Division of Real Estate
92
Broker refers clients to furniture store, but doesn’t disclose that he gets a 1 day cruise for every client who purchases furniture. This is **_NOT_** a violation of Chapter 475 because furniture is exempt from mandatory disclosure requirements.
False:
Broker must disclose kickbacks to all parties
93
The broker must write all ads & they must be in the broker’s name.
False:
Any sales associate may write an ad
94
Any sales associate may write an ad but it must be in the name of the brokerage firm.
True
95
When advertising on an internet site, the name of the brokerage firm must appear adjacent to or immediately above or below the point of contact information.
True
96
Sales associate has listed her own waterfront property with her Broker. The property is listed at $75,000 but Sales Associate will take less if she sells it herself so she wants to advertise the property herself. It is ok for Sales Associate to pay for the advertising but it must include the Broker’s registered name.
True
97
Sales associate works from Broker A. She is working with a buyer but asks the buyer to hold off on making an offer until sales associate places her license with Broker B so she can get a higher commission. This is a violation of sales associate’s fiduciary duty to Broker A.
True
98
A policy & procedures manual is **_NOT_** required for brokers by Florida law, but is good practice to create & share with sales associates.
True
99
A Florida real estate broker may operate a “virtual Office” without being required to have an office with at least one enclosed room in a building of permanent structure.
False
100
A title insurance representative has a policy of giving a $25 referral fee to brokers. This practice is **_NOT_** in violation of Chapter 475 because the fee is less than $50.
False:
A broker may not accept any compensation for settlement services
101
Broker wrote an offer accompanied by $5,000 earnest money to be deposited into First Florida Title Company. The contract called for an additional deposit of $15,000 to be made 30 days after offer acceptance. After delivering the additional deposit, Broker must request that the title company provide a written verification of receipt of the deposit within 10 calendar days.
False:
10 business days
102
Buyer gave $25,000 earnest money which was deposited in Broker’s escrow account. Two days later Buyer asked Broker to place the funds into an interest-bearing account. It may only be placed into an interest-bearing account if all parties agree as to the disposition of interest.
True
103
Real estate license law governs title insurance & attorney escrow accounts as well as broker’s escrow accounts.
False:
Only broker’s escrow accounts
104
Licensee prepared a purchase & sale contract for a Purchaser. The licensee who prepares the sale contract must indicate on the contract the title company’s (or attorney’s) name, address, & telephone number.
True
105
If the earnest money will go to a title company or attorney named by Buyer, Buyer’s Broker must request a written verification of receipt of the deposit & no later than 10 business days after Broker makes written request for verification of deposit. Broker must provide the Seller’s Broker with a copy of the written verification.
True
106
Sales associate receives an earnest money check late at night on Monday. Sales associate submits offer to seller at 10am on Tuesday after stopping by the office. On Thursday, sales associate gives the earnest money check to Broker who immediately deposits into the brokerage escrow account. Nothing was illegally done.
False:
The sales associate’s license can be suspended
107
Binder money can be deposited into an interest bearing account as long as all parties are aware.
True
108
Owner sells a home for a $10,000 loss. The loss from the sale of a principal residence is not allowed as a capital loss & thus may **_NOT_** be deducted from income tax.
True
109
USA Bank takes over a property by deed in lieu of foreclosure. They find hazardous waste on the property & immediately notify the EPA. USA Bank is responsible to pay for the cleanup because the current owner is a potentially responsible party.
False:
USA Bank is an innocent land owner
