Florida Real Estate Class Final Exam Flashcards

Florida Real Estate Class Final Exam Flashcards To be a broker for several real estate brokerage companies, you must be issued what type of license?Multiple Broker licenses (one for each company) An offer of $200,000 on a contract for purchase and sale has been accepted by the seller. Subsequent offers can what?Be submitted until closing when the title is transferred.If a real estate licensee moves to Florida from another state and wants to obtain a Fla Sales Assoc license based on Mutual Recognition, the licensee must complete the 63-hour sales assoc pre-licensing course and pass the Fla license exam.A farmer is appointed by the court to appraise the farm land of a deceased neighbor. The farmer will be paid a $3000 fee for the appraisal. Is he exempt from Chapter 475?Yes because he was appointed by the courts.A business trust is created by filing what? A Declaration of Trust with the Sec of State.If someone wants limited representation of a real estate broker but doesn't want to be legally liable for the acts of the licensee, what type of brokerage relationship should be chosen?Transaction Broker (Non fiduciary) If FREC advertises a public hearing to consider a rule change, who can go?Anyone effected by the change but NOT the general public.If a broker relocates a branch office, does the new location have to be registered and licensed as a new branch office (as though the other location had not existed)?Yes. A branch office license may not be transferred.What is the DRE?The Division of Real Estate How is a corporation "born"?The Secretary of State charter the corporation and issues a Certificate of Incorporation (like a birth certificate) MortgagorBorrower ("or" gives) What is exempt from Real Estate licensure under Chapter 475?

• Straight Salary .2. A person who sells cemetery lots for a

commission. 3. Court jurisdiction.4. Renting of a mobil home lot in a mobil home park Can a limited partner participate in the management decisions of the partnership?No.What are the primary powers and duties of FREC? Adopt Rules and Discipline Licensees who violate chapter 475.What is the BPR?Dept of Business and Professional Regulation What are the 3 forms of brokerage relationships? 1. Single Agency2. Transaction Agency3. No Brokerage MortgageeBank ("ee" receives) Exculpatory Clause"No fault" clause. Part of the Limited Partnership.What does the FREC handbook contain?1. Chapter 4752. Rules of the Commission3. Other laws applicable to the RE profession A builder purchases several vacant lots in an established residential subdivision. The builder constructs houses w/o having secured a buyer in advance of the construction of

each home and advertises them for sale to prospective buyers. This is which type of residential construction?Spec Building If a real estate licensee fails to renew her license at the end of the biennial renewal period, what will happen to the

license?It reverts to an involuntary inactive status

Duties of "Transactional Brokerage" are1. Honest and Fair2. Facts Affecting Value3. Accounting for funds4. Skill, Care and Diligence5. Present all offers6.Limited Confidentiality (neutral)7. Any additional Duties Who may the sales assoc accept deposits in the name of?The Broker only (always) What is a foreign corporation?Any corporation operating outside of Florida. They may petition the Sec of State for authorization to do business in Florida.What information is required to be disclosed on an application for RE licensure?

• If you've ever been convicted of a crime.2. Entered a

plea of nolo contendere, regardless of adjudicaton.3. Any violation of the law (except traffic violations, speeding tickets, etc) Can FREC impose Civil penalties?No. they must be imposed by a Court of Equity. These include financial damages to a plaintiff, injuries or the return of a real estate commission What does NOT have to be disclosed on an application for RE licensure?Personal Bankruptcy A sales assoc is listing a property for sale. He learns there is a lien on the property. What should he do?Advise all prospective buyers of the lien before they submit an offer.A RE broker's client asks the broker to order a title insurance policy while the client is out of town. The broker orders a policy and the title company offers the broker a paid trip to the Bahamas. What should the broker do?The broker must fully disclose the facts pertaining to the arrangement to the client. (Because this is a single agency.Hints the word "client") Do Transactional Brokers have Principles or Clients?No. They have Prospects or Customers Can FREC impose Administrative penalties? Yes A Business BrokerSpecializes in the sale, purchase or lease of businesses. Is required to have a real estate license and may be licensed as a real estate broker or sales associate A Real Estate broker may sign a contract on behalf of a party to a transaction when he or she is an Attorney-in-fact Are kickbacks and Rebates allowed to a licensee? No. They are a violation of chapter 475 UNLESS the licensee has fully advised the principal and all affected parties. Must be upfront.The main office of a broker has to have what 2 things?1. at least one enclosed room2. a building of stationary construction (applies to branch offices also) What is a business trust?A common law trust. REIT - Real Estate Investment Trust If a real estate broker's license is suspended for 6 mos for a violation of license law, the licenses of the sales assoc registered with the broker with become what?Involuntary Inactive What is FLOC?F - Full DisclosureL - LoyaltyO - ObedianceC - Confidentiality Other exemptions from licensure include1. For Sale by Owner2. Owner of a Timeshare period who offers the property for resale.3. A leasing agent of an apt.complex if they are salaried, work in an onsite rental office and work in a leasing capacity.4. A manager of a condo and Co-op if employed for a salary and rent is for periods