Binder deposit shows up as what on closing statement? – ANSWER-Credit to buyer
Which of the following is true about leverage? – ANSWER-Leverage is the use of
borrowed funds to purchase assets.
Which of the following liens would take priority? – ANSWER-A property tax lien
In which of the following theories of mortgage lending does the borrower not retain
ownership of the property during the loan period? – ANSWER-Title theory
What is the status of a sales associate’s license if he does not complete the required
45-hour post license course before the first expiration of his license? – ANSWER-Null
and void
Which mortgage clause allows the mortgagee the right to demand the outstanding loan
balance plus accrued interest in the event that the borrower sells or transfers any
interest in the property without the lenders prior written consent? – ANSWER-Due-onsale clause
Which of the following is the type of method a surveyor would use to describe a property
that is in a subdivision? – ANSWER-The lot and block method
Which of the following is also called “legal notice” and is the act of recording documents
in the public records? – ANSWER-Constructive notice
What kind of rights are associated with water flowing through your property? –
ANSWER-Riparian rights
Which of the following expenses associated with a principal residence are deductible for
income tax purposes? – ANSWER-Mortgage interest and property taxes
In platted subdivision, the legal description most often used is? – ANSWER-Lot and
block
An option contract is a? – ANSWER-Unilateral contract
Assuming that the broker is a seller’s agent, the sales commission would appear most
commonly on the closing disclosure as a? – ANSWER-Debit to seller
Harold filed his application for sales associate licensure 31 days ago. To date he has
not heard if his application has been approved or not. What is the status of Harold’s
application? – ANSWER-It is still pending approval until 90 days have passed.
A licensed broker in Georgia moved to Florida 6 months ago and now wants to apply for
a Florida broker’s license under the mutual recognition agreement between Florida and
Georgia. What must the broker do to obtain the Florida license under this agreement? –
ANSWER-The broker is not eligible for a Florida license under the mutual recognition
agreement.
Lisa is a full-time graduate student in an appraising degree program at the University of
South Florida. All of Lisa’s appraisal activities are being supervised by Ken who is a
licensed real estate broker. What type of license must Lisa have to perform the
appraisal activities she is involved in? – ANSWER-No license
If Charlie submits an application for licensure, completes the educational requirements,
but does not pass the licensing exam, when will Charlie’s application expire? –
ANSWER-2 years after it was received
To meet the continuing education requirements for either a sales associate or a broker,
what can a licensee substitute for 3 classroom hours of coursework? – ANSWER-A
Attendance at a legal agenda session of the Commission
B An approved course on real estate issues relevant to the modern practice of real
estate by a licensee
C An approved course on technology used in the real estate industry
D Any of the above
A broker’s post-license education requirement includes – ANSWER-passing end-ofcourse exam.
Ted is a licensed real estate broker in Florida, but he is moving to North Dakota to live.
What should Ted do about his Florida broker license? – ANSWER-Notify the
Commission of his change of residency and comply with nonresident requirements
If an applicant omitted information on the license application, within what time frame
must the applicant be notified to correct the error? – ANSWER-30 days
If an applicant makes an error on the license application, the license may be denied if
the error is not corrected. What is the exception to this rule? – ANSWER-The applicant
was not notified of the error within the designated time period.
Which Florida statute or code covers the Commission’s administrative rules that include
detailed principles for real estate practice? – ANSWER-Chapter 61J2
Which statute established general provisions for the Department of Business and
Professional Regulation? – ANSWER-Chapter 455
Which of the following is the most accurate definition of real estate broker? – ANSWERA person who buys or sells real estate on behalf of others for compensation
Which Florida statute establishes real estate licensees’ legal rights and responsibilities?
- ANSWER-Chapter 475
What is the best definition for “real estate”? – ANSWER-Interest in land, business
enterprises, or business opportunities with some exceptions
Which of the following is a requirement of the general licensing provisions? – ANSWERSocial Security number
Florida sales associate educational requirements include – ANSWER-14 hours of
continuing education every 2 years
Florida broker pre-license requirements include – ANSWER-72 hours of pre-licensing
coursework.
Which of the following real estate services can legally be offered by someone not
licensed as a real estate broker, broker associate, or sales associate? – ANSWER-An
individual renting properly licensed public lodging
Which of the following must be licensed as a real estate broker, broker associate, or
sales associate? – ANSWER-Anyone procuring purchasers of business opportunities
The Florida Real Estate Commission consists of – ANSWER-seven members, all
appointed by the Governor.
Which of the following is true regarding the Florida Real Estate Commission? –
ANSWER-The Commission is responsible for fostering the education of brokers in the
principles that should govern their conduct.
If a broker’s license has become void during a period of economic hardship, when can
his license be reinstated? – ANSWER-It can be reinstated within 6 months.
Tania has just received her sales associate license. When must she complete her postlicense education requirements? – ANSWER-Prior to the first renewal of her license
Broker John changed his business address and did not notify the Commission during
the required time period. What is the status of John’s license? – ANSWER-It has ceased
to be in force.
Which of the following is a duty or power of the Department of Business and
Professional Regulation? – ANSWER-Suspend the license of a broker who is not in
compliance with a support order
An agency relationship is formed when a customer – ANSWER-gives a broker authority
to act on his/her behalf.
Which type of agency is illegal in Florida? – ANSWER-Dual
In Florida, it is presumed that all licensees are operating as transaction brokers unless –
ANSWER-another type of relationship is established in writing.
In a brokerage relationship that involves designated sales associates, what is the role of
the broker? – ANSWER-To advise and assist the sales associates
The Brokerage Relationship Disclosure Act – ANSWER-establishes brokerage
representation disclosure requirements.
The disclosure requirements covered in the Brokerage Relationship Disclosure Act only
apply to – ANSWER-residential sales.
The main difference between a single agent and a transaction agent is – ANSWER-the
fiduciary representation to one customer.
Chuck is selling a duplex he owns. He has asked Broker Terrance to simply show the
property for him. What type of broker relationship do these two men have? – ANSWERNo brokerage relationship
In the practice of real estate, what is the common term used if a licensee brags that a
property located near a large park is “in the best part of town”? – ANSWER-Puffing
Florida law prohibits a real estate agent from making deceptive representations related
to the practice of real estate. Which of the following would be considered a deceptive
representation of the practice? – ANSWER-A sales associate claiming her license
allows her to open her own real estate firm.
What might be the best way to conduct an ethical real estate practice? – ANSWERApply the Golden Rule
When may a sales associate be registered as a general partner in a brokerage firm? –
ANSWER-May not under Florida statutes regarding registration of general partners
What is the purpose of the Brokerage Relationship Disclosure Act? – ANSWER-To
provide customers with a greater understanding of real estate transactions and broker
relationships
Under what conditions may a sales associate collect a commission for a real estate
transaction? – ANSWER-If the sales associate has permission from his or her employer
to collect the commission and collects it in the employer’s name