Unit 1 Review Exam Multiple Choice

Question 1

A group license would be obtained by sales associates registered under a (n):

Answer 1

Owner-Developer

Question 2

A licensee who is licensed in one state is permitted to practice in another. This is known as:

Answer 2

Reciprocity

Question 3

Each applicant for a broker or sales associate license must:

Answer 3

Be at least 18 years old

Question 4

An unlicensed entity that sells, exchanges, or leases its own property is:

Answer 4

An owner-developer

Question 5

Which is a CORRECT statement about the qualifications to be a licensed Florida real estate broker:

Answer 5

Must have a high school diploma or its equivalent

Question 6

The initial license period is:

Answer 6

Between 18 and 24 months

Question 7

When a broker’s license has been involuntary inactive for more than 12 months but less than 24 months, the broker is required to complete:

Answer 7

28 Hour reactivation education

Question 8

A sales associate or broker associate registered with an owner-developer who owns properties in the name of various entities is issued a:

Answer 8

Group License

Question 9

Three brokers, each licensed individually, have decided to operate as J-W Realty. Their action is an example of:

Answer 9

Ostensible Partnership

Question 10

Broker decided to place the license in an inactive status at the first renewal. If not later renewed or reinstated, the license may remain inactive for how long:

Answer 10

4 years

Question 11

What is the MAXIMUM amount of time one’s license may be involuntarily inactive:

Answer 11

2 years

Question 12

If broker post-licensing requirement is not fulfilled before the first renewal & there is a desire to continue as a broker, the licensee:

Answer 12

Must re qualify for the license

Question 13

Which business entity may NOT register as a real estate brokerage entity?

Answer 13

Cooperative

Question 14

A sales associate may hold which position?

Answer 14

Limited partner in a real estate brokerage limited partnership

Question 15

Which of the following is TRUE of a partnership brokerage formation including a broker & a non-licensee?

Answer 15

The broker, non-licensee, & partnership MUST be registered with the DBPR

Question 16

An Active broker can have multiple licenses if:

Answer 16

serving in a non-brokerage capacity as an officer or partner in a different corporation or partnership

Question 17

An Illinois real estate broker moved to Miami five months ago. He requests a Florida broker license based on mutual recognition. The Illinois broker:

Answer 17

Must complete the broker pre-license course & pass the Florida state license exam because he is a resident of Florida

Question 18

Which of the following is a benefit of operating as a sole proprietorship?

Answer 18

Less paperwork & fewer formalities

Question 19

Broker wants to make sure she is not responsible for a real estate brokerage business assets & liabilities should it fail. Which of the following should broker choose?

Answer 19

Corporation

Question 20

ABC Ventures, LLC, doing business as Sunshine Realty, is a member-managed limited liability company. Which of the following is TRUE?

Answer 20

Each member dealing with the public as a broker must hold an active broker’s license

Question 21

XYZ Investments, LLC, doing business as Darkstar Realty, is a manager-managed limited liability company. Which of the following is UNTRUE?

Answer 21

A manager MUST be a member of

Question 22

A licensee who takes a 3 hour core law course in each year of the renewal period receives how many classroom hours of credit toward the 14 hour continuing education requirement?

Answer 22

3 hours of Core law plus 3 hours of Specialty Topics

Question 23

Which individual is exempt from the broker post-license education requirement?

Answer 23

Individual who has attained a four-year degree in real estate from an institution of higher education

Question 24

if a Florida resident licensee becomes a nonresident, the licensee must serve notice & file an irrevocable consent to service:

Answer 24

Within 60 days of moving

Question 25

A broker’s license is revoked for fraudulent real estate activity. What will happen to the licenses of the sales associates registered under this broker?

Answer 25

They will automatically be involuntarily inactive

Question 26

Each partnership, limited liability partnership, limited liability company or corporation which acts as a broker is responsible for registering & renewing the licenses or registrations for all of the following EXCEPT:

Answer 26

It’s sales associates