Florida Realtor Sales Associate State Exam Flashcards

Florida Realtor Sales Associate State Exam Flashcards

An active broker must have a/an:a. office.b. escrow

account.c. listed telephone number.d. website with contact information.

• office.Active brokers must maintain a physical office but

are not required to have escrow accounts, telephone numbers, or websites. Of course, it is common for brokers to have all 4 but it is not required by law to have anything more than a physical office.The right of ingress and egress by a property owner to another to enter upon that owner's property is know as

an:a. encumbrance.b. easement.c. encroachment.d.

escheat.

• An easement is a type of encumbrance where a property

owner gives the right of use to another. An encroachment, however, is a physical intrusion by one property owner on another's land.

• TownshipContains 36 sections = 36 miles squared
• Acre43,560 square feet = 208.71 feet x 208.71 feet

That power of government to promote the health, safety,

and welfare of society is:a. eminent domain.b. zoning.c.

police power.d. laissez-faire.

• Police power is the power of the government to promote

the public's welfare. Police power gives governmental entities the right to create zoning districts, to issue building permits, and to create occupancy limits, for example.Eminent domain, on the other hand, is the power of the government to take private property for a public use.Laissez-faire is a philosophy associated with 18th century thinking regarding government regulation.A builder building on his or her own lot for a potential

purchaser is:a. spec buildingb. custom buildingc.

commercial buildingd. residential building

• spec buildingWhen an improvement (such as a house) is

constructed by the developer, contractor, or builder according to his specifications on land he owns with the goal of selling the land and the building, this is referred to as speculative building since the developer, contractor, or builder is not certain whom the purchaser will be or even that he will be able to locate a purchaser. This type of construction is also known as building on spec, spec building, and subdivision building.

The Fictitious Names Act:a. prevents the use of an aliasb.

provides for registration of inactive brokers.c. provides for registration of trade names.d. does not apply to persons regulated by the FREC.

• A fictitious name is any name used by a person to

transact business other than the person's legal name.Normally a trade name must be registered by filing a sworn statement with the Division of Corporations of the Department of State including certification that the fictitious name has been advertised at least once in the county where business will be located. A person licensed by DBPR for the purpose of practicing their profession is exempt from the registration requirements.

A purchase contract would not be terminated by:a.

performance.b. operation of law.c. breach.d. lack of an earnest money deposit.

• Lack of a deposit would not terminate the contract.

Bill is a newly licensed broker and wishes to go into business for himself. To comply with Florida Law, Broker

Bill could open his escrow account:a. in any bank.b. with

any attorney.c. in any FDIC Bank.d. in any Florida-based commercial bank.

• in any Florida-based commercial bank.Florida law

requires escrow accounts be placed with a Florida-bases title company having trust powers, Florida commercial banks, credit unions, savings associations or if designated in the purchase contract a Florida attorney.A real estate brokerage general partnership has only one active broker and two partners who do not perform services

of real estate. If the active broker dies, this partnership:a.

must find another broker within 14 calendar days or the registration is canceled.b. is allowed 30 days to find another active broker.c. may continue its brokerage business if the two other partners remain with the partnership.d. may continue its brokerage business without an active broker since the partnership is already registered with the FREC.

• must find another broker within 14 calendar days or the

registration is canceled.Another broker must be obtained for the partnership within 14 calendar days or the registration of the partnership will be canceled.Defects in title that cannot be cured by a quitclaim deed

may be cured by:a. recording.b. title insurance.c. a suit to

quiet title.d. an abstract.

• Legal action to quiet title may be necessary if it is not

possible for potential claimants to provide quitclaim deeds.Title insurance will not cover known title defects that could create financial risk for the insurance company.Which deed covenant of clause describes the duration of the estate?a. grantingb. quiet enjoymentc. habendumd.seisin

• The habendum clause describes the duration of the

estate. The granting clause contains the words of conveyance, the covenant of quiet enjoyment assures the grantee of no disturbance by hostile claimants and the seisin clause is a claim of ownership.Sales associate Long is working with buyer Diaz and seller Jackson in the same transaction. Long's broker may allow Long to be the designated sales associate representing the buyer and appoint another licensee from the same firm to

represent the seller. This relationship is permitted it:a. the

transaction involves a residential sales.b. the buyer and seller have assets of $1 million or more.c. the buyer alone makes this request.d. the seller alone makes this request.

• The buyer and seller must have assets of $1 million or

more.A broker sold a house 4 years ago and at that time the owners disclosed to the Buyers the home suffered water damage due to a fire in the attic. The Buyers are now selling, but are not disclosing the water damage. Legally,

the Broker must:a. do nothing.b. disclose the water

damage to all interested buyers.c. follow the directives of his client.d. report the seller to FREC.

• disclose the water damage to all interested

buyers.Licensees have a duty to disclose to all interested buyers all known facts that materially affect the value of residential property. A material fact is information relevant to a person making a decision.A non-licensee is collecting commissions. What action may be taken?a. The DBPR may issue a notice to cease and desist.b. Only the state attorney may handle this matter.Only the county police where the non-licensee is operating may handle this matter.d. No action can be taken against non-licensees by the DBPR.

• The DBPR may issue a notice to cease and desist.The

DBPR is empowered to issue cease and desist notices to non-licensees who are operating in violation of real estate licensing laws.

A married resident of Florida owning property with an assessed value of $100,000 is entitled to a homestead tax

exemption from county and city taxes of:a. $25,000b.

$50,000c. 56,000d. 100%

• Individuals are entitled to a tax exemption in the amount

of $50,000 of the assessed tax value if they hold title to real property as of January 1, reside on the property as of January 1, are a permanent resident of Florida as of January 1. Filing must be done before March 1 to qualify for the homestead exemption for that year.South City has a population of 20,000 with adequate housing. The adjacent Mountain City has a population of 50,000 with negligible housing vacancies. What effect would a new factory that increases the area's population by 3,000 people have?a. increase housing need and pricesb.decrease housing need and pricesc. increase housing need and decrease pricesd. decrease housing need and increase prices

• A new factory would create new jobs; new jobs create

income and a need for nearby housing. So a new factory would increase the housing need and increase prices if the supply is low.Broker Brown has been told by seller-client Diaz that there are several clouds on the title to the listed property. Brown does not advise the buyer about the tittle problems because Brown knows the buyer will retain an attorney and purchase title insurance. Which is correct?a. Diaz is guilty of fraud for offering property for sale with title defects.b.Brown should not have taken the listing under these circumstances.c. Brown's conduct is a form of fraud and dishonest dealing.d. Brown and Diaz are both guilty of fraud and dishonest dealing.

• Brown's conduct is a form of fraud and dishonest

dealing.It is fraud and dishonest dealing for a broker to offer for sale any property where he or she has notice that the title is not merchantable (or that a mortgage or other liens exist against the property) unless he or she informs a prospective buyer of such conditions prior to payment of any portion of the sales price.Mrs. Smith lives in a religious community and hires broker Brown to sell her house. She instructs broker Brown to sell only to a fellow Presbyterian. Which is correct?a. Mrs.Smith can discriminate in this manner because she is an owner-occupant.b. Broker Brown can assist Mrs. Smith because religious discrimination is permitted by owner-occupants.c. The Civil Rights Act of 1866 prohibits this type of discrimination.d. Broker Brown cannot assist Mrs. Smith.

• Broker Brown cannot assist Mrs. Smith.Homeowners,

acting without assistance, may be permitted to discriminate on a limited basis. However, real estate brokers cannot assist homeowners in marketing the home based on race, color, religion, sex, national origin, handicap, or familial status.

A contract with promises by both parties is called:a.

unilateral.b. bilateral.c. express.d. implied.

• A bilateral agreement is one where both parties are

bound by promises they have made. A unilateral contract is an agreement where only one party is bound, such as an option contract. Implied contracts are agreements where the parties behave as though they have exchanged promises whereas expressed contracts exist where the parties have used language (oral or written) to communicate their promises.A judgment against the personal assets of a mortgagor

following foreclosure is a:a. strict foreclosure judgment.b.

right-of-redemption judgment.c. lis pendens judgment.d.deficiency judgment.

• A lender who cannot recover the entire loan at a

foreclosure auction can usually sue the borrower (mortgagor) for the deficiency. If the lender wins this proceeding, the lender will have the right to place a

deficiency judgment against all assets of the borrower.