Unit 2 Flashcards Preview

Real Estate Pre-Licensure > Unit 2 > Flashcards

Flashcards in Unit 2 Deck (87):
1

When must the sales associate's post-license be completed?

Before the first license renewal (before the first license period expires)

2

How many hours is a broker's pre-licensure course?

72 hours

3

The first real estate law was passed in:

1923

4

Why was the Real Estate Commission created?

To protect the public.

5

The Florida Testing Service for real estate

Pearson Vue

6

A $1.5 billion agency regulating one million professionals and businesses across some 200 licensee categories in Florida

The Florida Department of Business and Professional Regulation

7

A person who provides real estate services for another, for compensation under the direction, control, and management of a broker

Sales Associate

8

When is a candidate given the results of his or her licensing exam?

Immediately

9

Jane is a college graduate with a four-year degree in real estate. She has a sale's associate license and seeks to renew the license for the second time. What must she do?

Take 14 hours of continued education; fill out the form; pay the fee; and return it before the expiration date.

10

Katherine loves to show and sell houses for others for compensation. She has been doing so for two years and without a license. She has been caught and she wants to obtain a license. What is likely to happen?

The FREC may deny her license since she was holding herself out to be a licensee, practicing real estate in the previous year.

11

Janice did not answer truthfully on the background page of her application for licensure. When the Department found the discrepancy, she was asked about it and she did not tell the truth again. What will likely happen to her application?

The application will be denied and she may be subject to subsequent disciplinary action.

12

What appears on the real estate license?

Name of the Governor; seal of the state of FL; name of the Secretary of the Department; license number and status; effective date and expiration date of the license; licensee's name; and the approved name that the licensee (if a broker) operates under.

13

A license applicant who has committed a crime of moral turpitude will:

Probably not be granted a real estate license

14

For her first renewal, Broke mistakenly took 14 hours of continuing education instead of the broker post license course. Marie:
a) must ask for an emergency five day extension to complete the post license course.
b) can no longer work as a broker because her license is null and void.
c) can ask for a waiver to use CE courses for her renewal and complete the post license course on her next renewal.
d) must pay a $200 fine and complete the post license course on her next renewal.

Can no longer work as a broker because her license is null and void.

15

The phrase 'Caveat Emptor' means:

"Let the buyer beware." The buyer should inspect the goods before purchase, because the buyer buys at his own risk.

16

Which does not appear on a real estate license?
a) The name of the Governor
b) The name and address ofthe licensee
c) The name of the chairperson of the FREC
d) The name of the Secretary of the Department

The name of the chairperson of the FREC

17

Jim is convicted felon. He was found guilty of cheating on his income tax for four years and he served time in jail. He has completed his sentence and wants to become a real estate sale's associate. Which is most nearly correct?
a) Jim can never have a real estate license.
b) Jim must apply for his license and it will be granted because he has served his time.
c) Jim can only be a sale's associate, never a broker.
d) Jim must disclose his conviction oh his real estate application.

Jim must disclose his conviction on his real estate application.

18

All are FL residents EXCEPT:
a) A cuban national living in FL since July 1, 1977.
b) A person living in FL who has sold his properties in all other states, who lived in a mobile home for six months last year, and plans to stay in FL.
c) A person moving to FL who obtains a FL drivers license and FL license plates, and who intends to spend two years or more in FL.
d) A person living in a condo for the winter season of two months

A person living in a condo for the winter season of two months

19

When does 'Caveat Emptor' still apply in real estate?

To those individuals buying/selling, who conduct their own real estate business without the aid of a professional.

20

A motel desk clerk gives the names of persons looking to purchase a home to a broker in exchange for a small fee. Which BEST describes the situation?
a) The clerk would not need a license since his primary income comes from his motel salary.
b) He would not need a license since the finder's fee was small.
c) He would need a license since he is accepting compensation from a broker.
d) He would only need a license if the amount was above $50.

He would need a license since he is accepting compensation from a broker

21

Why does real estate no longer operate under 'Caveat Emptor'?

The buyer does not the requisite understanding of real estate laws and processes. The FL legislators determined a need for consumer protection.

22

A rural electric company has a paid employee who is charged with the responsibility of finding newland to put electric poles on. He buys and sells property and negotiates for the electric company. Does he need a license?

He does not need a license because he is an employee for an electric utility company.

23

A resort manager leases condominiums to out-of-town guests for several months at a time. The resort is licensed under 509 FS. He advertised the condos in a magazine with national exposure. Does this manager need a FL real estate license?

No, a manager is an employee of a resort company licensed under 509 FS.

24

The three categories of real estate licenses are:

Sales Associate, Broker Associate, and Broker

25

Which act of crime could disqualify an individual from becoming a licensee?
a) committing a crime of moral turpitude
b) using an illegal substance
c) being convicted of a DUI
d) Having served jail time

Committing a crime of moral turpitude

26

A person owns her company specializing in negotiating sales of property for buyers and sellers. She does not take listings or show property. Does she need a real estate license to do this?

She needs a license because she negotiates sales between buyers and sellers.

27

Joe is an appraisal graduate student at a state university. He is sent to appraise Farmer Tom's property. Because it is such a good property, Joe asks Tom to list the property for sale. Does Joe need a real estate license?

Yes, he needs a license because he wants to list the property, not just appraise it.

28

Which is true when a broker refers a client to another broker in another state?
a) Real estate brokers cannot refer clients to other brokers in other states unless the broker has a nonresident FL license
b) Real estate brokers should make a written referral agreement between brokers to be able to cooperate in a sale.
c) The selling associate is compensated directly by the seller, no broker is involved.
d) Brokers cannot refer clients from one state to another without the consent of the FREC.

Real estate brokers should make a written referral agreement between brokers to be able to cooperate in a sale.

29

A person who provides real estate services for another, for compensation

Broker

30

What does FREC stand for?

Florida Real Estate Commission

31

A licensed broker who chooses to work as a sales associate under the direction and guidance of a broker.

Broker Associate

32

The only Finder's Fee paid is:

To a tenant of a residential complex.

33

What does the DRE stand for?

Division of Real Estate

34

What is the penalty if a broker pays an unlicensed person a finder's fee?

A broker can be fined up to $1000 and have a suspended license for 5 years if he pays an unlicensed person anything.

35

Amy, a broker, would like to pay her neighbor for her assistance referring her to a family member looking to buy a home. Would Amy be able to pay her neighbor for her assistance? Why or why not?

She could not pay her neighbor because it is illegal to pay a finder's fee to an unlicensed person under any circumstances.

36

To assist individuals for pay in real estate transactions, a person must:

Register with the Department of Business and Professional Regulation, and must secure a license.

37

How many hours is the Sales Associate Post-License course?

45 classroom hours

38

The real estate license is 'prima facie'. What does 'prima facie' mean?

Evidence good and sufficient on its face. Evidence of having the skills and abilities to perform in real estate and indicates that the license is current and valid.

39

Describe the duties of the DRE.

It's mandated to protect the public by regulating real estate and appraisal licenses as required in Ch. 475, FL statutes. Responsible for examination, licensing, and regulation of individuals, corporations, schools, and instructors; verifies integrity; investigates complaints made by consumers and other professionals.

40

Both a broker and sales associate must be _________ to perform real estate transaction services.

Licensed

41

A licensed must be renewed:

Every 2 years

42

What does the FL DBPR stand for?

Florida Department of Business and Professional Regulation

43

For the Sales Associate state exam, you need a passing score of:

A 75 or higher

44

Once licensing requirements are met, an applicant is licensed as inactive until:

Finding a broker-employer or owner-developer.

45

The DRE is within the:

DBPR

46

The Sales Associate state exam has a total of how many points?

100

47

The first license period is a period of how many months?

18 months, but not to exceed 24 months.

48

When and where is the renewal notice sent?

To the last address of license 90 days prior.

49

How many employers can a sales associate or broker associate have?

No more than one registered employer at any one time.

50

Describe the duties of the DBPR.

Regulates professionals and business license categories. Other department regulated areas include condominiums, cooperatives, and Homeowner Associations

51

When is the Sales Associate state exam scored?

Immediately

52

How much time do you have when taking the Sales Associate exam?

3 hours

53

A license renewal is renewed by whom?

DBPR

54

How long does a person have to wait to reschedule a Sales Associate state re-examination?

Retakes must wait 24 hours before rescheduling re-examination.

55

How long does a person have to review the unpassed state exam and who must they contact to review the exam?

A person can review within 2 years, and have a review period of 1 hour. He or she must contact Pearson Vue.

56

In what months is a license renewed?

March or September

57

What are applicant requirements for a real estate license?

18 years or older; high school diploma or equivalent; have a social security number; good character standing; disclosure of crime, mental health status, other licenses revoked, etc.

58

How long does a Sales Associate have to complete the required Sales Associate Post-License Course?

It must be completed before the first licensee period expires.

59

The final exam for the Post-License course must be passed with a:

75 or higher

60

What are the subjects covered in the Post-License course?

Agency law, property management, appraisals, real estate finance, and economics of real estate.

61

A student must attend ____ of the Sales Associate Post-License Course to complete the class.

90%

62

How is the Sales Associate State Exam made up?

45 questions on real estate law; 45 questions on principles and practices of real estate; and 10 questions on real estate mathematics.

63

Who can a broker pay for referrals?

A broker can only pay another broker; NEVER another broker's salesperson.

64

What are some things that could be construed as an 'unauthorized practices of law' that are punishable by fines, jail time, or even loss of real estate license?

If a seller or buyer has a question that applies to contract, title, how to make changes to a contract, or a possible breach of contract (you should refer them to an attorney); opinion of title; interpret a contract; provide advice as to the proper actions for a buyer or seller to take in the execution of items outside what is written in the contract.

65

How does a Sales Associate or Broker Associate get paid a referral fee?

The money goes through the broker and then is paid to the sale's associate for his sponsoring broker.

66

Does an out-of-state broker need a FL license to give a referral?

No, but the broker has to be licensed in their own state.

67

Can an out-of-state broker sell property in the state of FL?

No, but the broker can collect a referral fee from a FL broker when the property sells.

68

What are the requirements to get a broker license?

Must have been a sales associate licensed under a broker for at least 24 months prior to taking the broker course and have completed the sales associate's post-license course; 24 month experience requirement must be active within the past 5 years; successfully complete the pre-licensure course for brokers with a passing score of 70% or above; application and fee; fingerprints.

69

Define the term 'reciprocity'.

The authority to have a license within one state and practice real estate in another state.

70

Describe the CE requirements.

Required to renew every 2 years after the initial license period; during first renewal period, required to take a post-license course that is pertinent to that license; 14 hours of CE - all licensees must take a 3 hour core course reviewing and updating FL real estate law, commission rules, agency law, and introduction to other state laws and taxes affecting real estate;, which allows for 6 hours toward a 14 hour requirement; and another 8 hours of a specialty type course.

71

How are specialty courses approved?

Specialty courses are approved by the Commission prior to taking

72

Who is considered a FL resident?

Anyone who resides in FL continuously for a 4 calendar months or more in the preceding year -or- anyone who presently resides in FL with intentions to reside continuously for a period of 4 months or more, beginning on the date that the person began the current period of residence in FL.

73

What happens if a licensed broker fails to complete broker post-license course?

The broker reverts license to sales associate.

74

The broker state exam consists of:

45 questions on law, 40 questions on principles and practices, and 15 questions on real estate Math.

75

Would a broker or sales associate be able to reside in one state, but practice real estate in another?

No, Florida does not offer reciprocity with any other state.

76

What are the requirements of all applicants for nonresident licensure?

Applicants must be knowledgeable in FL law, statutes, and administrative rules; must take a written exam with 40 questions (each worth 1 point)and receive a grade of 30 or higher.

77

When would the state of FL provide for Registration rather than licensing?

When real estate is practiced as a business entity rather than as an individual.

78

Explain Registration.

The procedure of giving information to the DRE

79

Upon registering, each record contains:

Name and address of each licensed broker and sales associate; name and business of each sales associate's employer; the sales associate's and broker's license status; the person's involvement as an officer, director, or partner of a real estate business.

80

How would a broker or real estate school change its business address?

It must file a notice of change and the names of the licensees no longer associated with the firm. This action fulfills the change of address notification requirements of licensees who remain with the firm.

81

Failure to complete the required 14 hours of CE, re-apply online, or pay the fee prior to expiration, will result in:

A license becoming involuntarily active.

82

How can the CE courses be taken?

Classroom, online or distance education

83

What happens to a license with an involuntary inactive status?

A licensee with an involuntary inactive status for more than 12 months, but less than 24 months, is required to complete a 28 hour reactivation course.

84

Licensees with a remaining involuntary inactive status by not renewing their CE for more than 2 years will:

Cause their licenses to become null and void.

85

Real Estate Assistants who are licensed may assist with the successful closing of a property. Besides for whatever payment arrangement between the licensee and the assistant, the assistant must be paid a commission by:

The broker

86

Unlicensed real estate assistants may help with:

Follow up, marketing, computer tasks, and other errands required to move the transaction to closing.

87

Who does not need to have real estate license for selling, leasing, etc. real estate in FL?

An owner selling his own property; power of attorney; employee of a public utility, rural, electric, railroad, state or local government, radio, television, or cable employee buying, selling, leasing, auctioning, etc. for the employer with no compensation besides his normal salary; a full-time graduate student enrolled in a FREC-approved degree program; an employee or manager of an apartment complex, management firm, or lodging who works in a rental office.