Real Estate Continuing Education Practice Questions Flashcards

Real Estate Continuing Education Practice Questions Flashcards T/F: A transaction broker owes loyalty to her buyer.False; Loyalty is a duty of a single agent. A transaction broker provides limited representation to a buyer, a seller, or both in a real estate transaction, but does not represent either in a fiduciary capacity.A sales associate needs to earn $40,000. If expenses such as Social Security, Medicare, and operating expenses average 35% of gross income, what should the sales associate's goal be for gross income?$61,538The $40,000 required income is equal to 65% (100%-35%) of the gross income. Divide $40,000 by .65 to find the necessary gross income.A sales associate who writes a goal of "make as many sales this month as possible" has met the requirements of goal-setting.False; the goal ahs a deadline but isn't measurable.Goals should be written, measurable, attainable, and flexible, and that establish deadlines.

T/F: A licensee who acts as a single agent must give a

single agent disclosure notice before showing a duplex to a prospective buyer.True

T/F: The use of jargon should be avoided when

communicating with customers.True For how many years must a broker retain required brokerage relationship disclosures?

• years

T/F: The major reason that listings expire is because they

are overpriced True

T/F: The best place to locate expired listings is from

classified advertising.False; expired listings are found from reviewing the data from an MLS system.A student failed her sales associate post-licensing course for the second time. What are her options if she wishes to maintain her license?She must retake the course and pass a different end-of-course exam

T/F: License laws are the best guides for what is honest

and right in real estate practice.False; the best guide is a strong code of ethics.

T/F: An unlicensed personal assistant may not negotiate or

agree to any commission split or referral fee on behalf of the licensee.True

T/F: The Fair Housing Act of 1988 added a prohibition

against discrimination based on age.False; The 1988 amendments added handicap and familial status as protected classes.T/F: Goal setting should begin with a short-term view: the accomplishments the sales associate aspires to achieve within the next few months.False; goal setting should begin with a long-term view and work back towards the present.

T/F: The Florida Fair Housing Act has more protected

classes of persons than the federal statutes, including age and sexual orientation False; Florida's act is modeled after the Federal Fair Housing Act, and carries the same prohibitions against discrimination based on race, color, religion, sex, national origin, familial status, or handicap.

T/F: It is an easier remedy for victims of discrimination to

sue in federal court rather than a state court.False; suing in a state court is an easier remedy than a federal court

T/F: Only single agents may call their customers

"principals." True; only single agency creates a fiduciary relationship.

T/F: A single agent who transitions to transaction broker

may not disclose to another party any information learned while serving as a single agent.True

T/F: The Fair Housing Act requires that the parties come

together to attempt to resolve every fair housing complaint in a process called 'conciliation' True

T/F: A licensee who acts as a transaction broker must give

a transaction broker notice before showing a house to a prospective buyer.False; A licensee need not give a brokerage relationship notice when the licensee is acting as a transaction broker.

T/F: Licensees working with no brokerage relationship to

the customer owe the customer the duty of confidentiality.False; Licensees working with no brokerage relationship

owe only three duties to the customer: deal honestly and

fairly disclosing all known facts that materially affect the value of the residential real property that are not readily observable to the buyer accounting for all funds entrusted to the licensee Licensed sales associates working at the sellers single agent brokerage firm are legally bound to represent the seller

T/F: One of the most effective risk-management tools

available to licensees is to suggest that the buyer order a home inspection.True

T/F: If a listed house was the site of a homicide six months

earlier, the licensee must disclose the fact to a prospective buyer.False; the fact that a property was, or was at any time suspected to have been, the site of a homicide, suicide, or death is not a material fact that must be disclosed in a real estate transaction.

T/F: A Sales associate must complete a 60-hour

post-licensing course before the first renewal.False; 45-hour post-licensing course

T/F: The maximum fine per violation for a first offense of

the Fair Housing Act is $5,000.False; the maximum fine for a first offense is $11,000

T/F: A broker who fails to disclose that the tenant of a

rental house is infected with HIV may be sued by the potential new tenant.False; persons with HIV/AIDS are entitled to every protection available to handicapped persons, including fair housing protections.

T/F: Under Florida Law, any person with or perceived as

having AIDS or HIV is entitled to every protection available to handicapped persons, including fair housing protections.True

T/F: An initial real estate license expires on the first of two

dates after 18 months: March 31 or September 30

True

T/F: In striving for success as a real estate sales associate,

it is not essential to schedule time for family, recreation, exercise, and relaxation.False; failing to set aside time for these activities can result in guilty feelings, discontent, poor health, or burnout.

T/F: Existing Structures must be made accessible when

that goal is readily achievable, meaning that the goal can be carried out without much difficulty or expense True; Full compliance with ADA is required for new construction and alteration

T/F: The best source of new listings is FRBOs. False; the sphere of influence is the best source of new listings.If a broker sells commercial property exclusively, heBoth need not give the customer a No Brokerage Relationship Notice before showing the property and, may be a single agent, a transaction broker, a designated sales associate, or have no brokerage relationship with the customer.

T/F: The most successful real estate agents tend to be

"hard sell." False; the sales associate who provides honesty, service, and knowledge tends to be more successful than "hard sell" sales associates.

T/F: Learning to prepare a comparative market analysis is

technical knowledge.True; technical knowledge provides the tools of the business, such as completing contracts properly, knowing sellers' and buyers' costs, and understanding the comparative market analysis process.

T/F: An over of five single-family houses is covered by the

Fair Housing Act.True; The law applies to persons who own four or more homes, multifamily properties (except properties with fewer than 4 units, one of which is occupied by the owner), brokers and sales associates who sell two or more homes in a year, and transactions in which a broker is involved. It does not apply to religious organizations or private clubs.

T/F: Under the ADA, for every inch of height, ramps should

have at least one foot of length (1:12) and have a railing at

least 34 inches high.True; there must also be a 5-foot-long level landing at every 30-foot horizontal length of ramp, and at the top and bottom of the ramp and at switchbacks.

T/F: The three types of knowledge that sales associates

need to possess are technical, marketing, and product.True

T/F: Unlicensed personal assistants may be classified as

independent contractors, as long as they are paid a commission rather than a salary.False; unlicensed personal assistants cannot be paid commissions, and, except in unusual circumstances, cannot be classified as independent contractors.

T/F: It's productive for a licensee to try to get a new listing

from a FSBO who does not need to sell.False; agents should try to get listings from people who are motivated to sell. Unmotivated sellers are often uncooperative about showing the property.

T/F: Your sphere of influence includes expired listings and

owners in your farm area.False; your sphere of influence will include family, friends, past customers, and former co-workers.

T/F: Licensees may act as designated sales associates in a

residential transaction.False; only for nonresidential transactions

T/F: A single agent for one party in a transaction may

decide to work with the other party with a no brokerage relationship.True; a single agent for one part in a transaction may decide to work with the other party as a nonrepresentative.

T/F: A licensee is allowed to be a dual agent, so long as it

is disclosed to the buyer and the seller.False; dual agency is illegal in Florida.

T/F: A sales associate in a brokerage firm may work as a

transaction broker to a buyer if another sales associate in the same firm is a single agent for the seller False; If a single-agency relationship is established with a residential seller, all licensees in that brokerage firm have single-agent duties to that seller.

T/F: A transaction broker may tell a buyer if he knows that

the seller will take less than the asking price.False; The transaction broker may not reveal that the seller might accept a price less than the asking or list price.

T/F: A sales associate's goals should be written,

measurable, attainable, flexible, and they should be tied to deadlines.True T/F: A very important source of listings is buyer seminars.False; the important sources of new listings are sphere of influence, expired listings, farm, FSBOs and FRBOs, and canvass.A broker manages a single-family home. Harry, a disabled person, wants to rent the property and wants to make alterations, including installing a ramp at the entrance, lowering the kitchen counters, and widening some of the doorways. He agrees to pay for the remodeling and restoring the premises at the end of the lease term. If the broker explains that the owner will not allow the alterations, would that violate the law?Yes; Not only can housing providers not discriminate against a person with a disability, but also they must make reasonable accommodations to rules, policies, and practices to provide that person with the same enjoyment of a dwelling and to allow the person to make reasonable physical modifications of premises.

T/F: Accessibility standards for restrooms require that the

bottom of the lavatory should be no lower than 21 inches, and the rim should be no higher than 42 inches.False; the bottom of the lavatory should be no lower than 29 inches, not 21 inches. The rim should be no higher than 42 inches.Two sales associates work for a commercial broker. The broker allows one sales associate to act as a single agent for the buyer and the other to act as a single agent for the seller. Both the buyer & seller have assets greater than $1 million, and each agrees to this form of representation. This situation describes a designated sales associate To claim innocent purchaser status under the hazardous substance statutes, a purchaser should pay for and obtain an extensive environmental audit

T/F: Under the Housing for Older Persons Act, certain

55-and-older communities may ban children if at least 80% of the units have at least one occupant who is at least 55 years of age True

T/F: In the investigation of complaints, HUD will consider,

as evidence of compliance, among other things, the use of Equal Housing Opportunity Logo.True; The HUD will also consider statements or slogans stating that the property is available to all persons regardless of race, color, religion, sex handicap, familial status, or national origin

T/F: Licensees acting as designated sales associates must

give the parties to the transaction a Single Agent Notice Designated Sales Associate Notice.False; Licensees acting as designated sales associates must give the parties to the transaction a Designated Sales Associate Notice.

T/F: A married couple filing jointly may exclude a maximum

of $250,000 of gain on the sale of their personal residence if the taxpayers owned and occupied the residence for at least two of the previous five years.False; a married couple filing jointly may exclude a maximum of $500,000 of gain on the sale of their personal residence.Before showing homes to a customer she has just met, a single agent broker must give the customer a Single Agent Notice

T/F: Nonverbal communication is rarely more important

than what a person says.False; In many cases, nonverbal communication is more important than what a person says. The real estate sales associate who understands body language will be better