Unit 2

Question 1

Before the latter part of the 19th century, the real estate business was unorganized and extremely competitive. In 1923, the FL legislature passed the Real Estate License Law. Which is what chapter of the Florida statue?

Answer 1

Chapter 475 of the Florida Statue

Question 2

In 1925, the Florida Legislature created what to administer and enforce the license law?

Answer 2

Florida Real Estate Commission

Question 3

Today, the Division of Real Estate (DRE) provides support services to the commission. The DRE is under the ___________?

Answer 3

Department of Business and Professional Registration (DBPR)

Question 4

What are the 3 categories of real estate licenses?

Answer 4

Sales associate
Broker
Broker associate

Question 5

What is a sales associate?

Answer 5

A person who performs real estate services for compensation but who does so under the direction, control, or management of a broker or an owner-developer.

Question 6

What is a broker?

Answer 6

A person who, for another and for compensation performs real estate services. Must be a real estate associate for 24 months (within a 5yr period) and take a course to become a broker.

Question 7

What is a broker associate?

Answer 7

A person who holds a brokers license but chooses to register and work in real estate under the direction of another broker.

Question 8

An individual typically begins a real estate career in Florida as a ____?

Answer 8

Licensed sales associate

Question 9

Sales associates and broker associates are employed by and work under the direction and control of a ______ or a _______ of the owner developer.

Answer 9

Broker or a broker of record

Question 10

What are examples of a broker of record?

Answer 10

New home builder
Leasing community
Timeshare

Question 11

Applicants must submit fingerprints as part of the license application process. An applicant’s fingerprints are scanned and electronically submitted to the _________ and _______.

Answer 11

Florida Department of Law Enforcement (FDLE) and to the Federal Bureau of Investigation (FBI)

Question 12

Applicants are cautioned to complete a he application carefully, particularly with respect to past history concerning _________, _________ and _________.

Answer 12

Felonies
Misdemeanors
Certain traffic offenses

Question 13

Florida resident defined as what for licensing purposes?

Answer 13

For application and licensing purposes, the FREC rules define Florida resident as a person who has resided in Florida continuously for a period of 4 calendar months or more within preceding year, regardless of whether the person resided in a recreational vehicle, hotel, rental unit or other temporary or permanent location.

Question 14

Mutual Recognition Agreement

Answer 14

(Reciprocal states)
The intent of mutual recognition agreements is to recognize the education and experience of individuals licensed in another state or nation when the other jurisdiction has education and experience requirements comparable to Florida’s requirements.

Question 15

Sales Associate Qualification for licensure
(US citizenship is not required to become licensed)
The following is required:

Answer 15

1. Be 18yrs of age or older
2. Have a high school diploma or it’s equivalent
3. Possess a US social security number
4. Be honest, truthful, trustworthy, of good character and possessing a reputation for fair dealing
5. Be competent and qualified to make real estate transactions and conduct negotiations with safety to investors and others with whom the applicant may undertake a relation of trust and confidence.

Question 16

Sales associate candidates must successfully complete the commission-prescribed prelicense course for sales associates (course 1) or an equivalent FREC-approved prelicense course. What does consist of?

Answer 16

Course 1 consists of 60 hrs of instruction plus 3 hrs for an end of course exam. The exam consists of 100 questions worth 1 pt each. Usually 45 questions on principles and practices, 45 on real estate law and 10 math questions. A passing score of at least 70 is required on the end of course exam.

Question 17

What are the post licensing post-licensing education requirements? What happens if you don’t complete them?

Answer 17

Sales associates who do not complete the 45 hr post licensing requirements and want to continue in the real estate business are required to requalify for licensing by repeating the prelicense course and end of course exam and again passing the state licensing exam.

Question 18

What are the continuing education requirements?

Answer 18

After the initial post licensing education requirement are completed, active and inactive licensees must completed at least 14hrs of continuing education during every 2 year license period after that.

Question 19

Real estate license law identifies real estate activities called real estate that require a Florida real estate license. Real estate services include any real estate activity involving compensation for performing the service for another. What is the acronym?

Answer 19

A BAR SALE

Question 20

What does the acronym A BAR SALE stand for?

Answer 20

Advertise real estate services
Buy
Appraise (non federally related transaction)
Rent or provide rental information or lists
Sell
Auction
Lease
Exchange

Question 21

What is compensation?

Answer 21

Anything of value or a valuable consideration, directly or indirectly paid, promised or expected to be paid or received.

Question 22

What are the exemptions from a real estate license?

Answer 22

• Property owners may buy, sell, exchange and lease their own property.
• Attorneys at law, when acting within the scope of their professional duties in the attorney client relationship.
  *Salaried employees
  *Court-appointed individuals acting within the limitations of their duties.
  *Persons who sell cemetery lots (cemetery lots are not considered real property)
  *Hotel and motel clerks who rent transient occupancy of public lodging establishments.