THE LICENSEE REPRESENTED THE BUYER IN THE

Florida Real Estate Lic Exam 1-4 Flashcards Which element is NOT a cause of action for fraud in a real estate transaction?

THE LICENSEE REPRESENTED THE BUYER IN THE

TRANSACTION. There are four elements of a cause of

action for fraud: (1) the licensee made a misstatement or

failed to disclose a material fact; (2) the licensee either knew or should have known that the statement was not accurate or that the undisclosed information should have been disclosed; (3) the buyer relied on the misstatement; and (4) the buyer was damaged as a result.An individual on active duty with the U.S. Navy has up until what period of time after discharge from active duty to renew a real estate license?

• MONTHS. A licensee in good standing who is a member

of the U.S. Armed Forces is exempt from the renewal provisions during active duty and for a period of up until six months after discharge from active duty.A sales associate moved from Lake City, Florida to Key West, Florida. What action must the licensee take?

WITHIN 10 DAYS OF MOVING, INFORM THE DBPR IN

WRITING OF THE CHANGE OF ADDRESS. Licensees must notify the DBPR in writing within 10 days of a change in current mailing address.A transaction broker is a broker who provides representation to a buyer, a seller, or both in a real estate transaction, and who represents either the buyer or seller in a fiduciary capacity or as a single agent.FALSE. A transaction broker is a broker who provides limited representation to a buyer, a seller, or both, but who does not represent either in a fiduciary capacity or as a single agent.A developer of a new residential subdivision hires a sales staff to sell homes. The sales staff receives a base salary plus 1 percent of the sale price of each home they sell. Are the people who sell these homes for the developer required to hold real estate licenses?

YES, THE SALES STAFF MUST HOLD REAL ESTATE

LICENSES BECAUSE THEY ARE PARTIALLY

COMPENSATED BASED ON ACTUAL SALES. An owner-developer's sales staff must hold active real estate licenses in order to be paid a commission or other compensation based on actual sales (that is, on a transactional basis). The sales staff is exempt from real estate licensure if paid strictly on a salaried basis.A sales associate has held an active real estate license since 2000. The licensee neglected to renew his real estate license prior to the expiration date in March of this year.Which statement does NOT apply to this situation?

THE SALES ASSOCIATE IS REQUIRED TO COMPLETE

28 HOURS OF A COMMISSION-PRESCRIBED

EDUCATION COURSE. The license reverts to involuntary inactive status when it is not renewed at the end of the license period. When a licensee has been in involuntary inactive status for 12 months or less, the licensee may satisfy the education requirement by completing 14 hours of FREC-approved continuing education. The 28-hour course is required if the license has been expired for more than 12 months but less than 24 months.In general business dealings, which type of agent is authorized by the principal to perform acts related to a certain business or to employment of a particular nature?GENERAL. A general agent is authorized by the principal to perform only acts related to a business or to employment of a particular nature.

After what period of time does an involuntary inactive license automatically expire and become null and void?TWO YEARS. When a license is in involuntary inactive status for more than two years, the license automatically expires and it becomes null and void.A developer transfers to the city privately owned streets in a subdivision with the agreement that the city will maintain the streets in the future. This process is known as DEDICATION. Dedication is the gift of land by an owner, in this case a developer, to a government body for a public use.The three general categories of residential construction include speculative, custom, and tract TRUE. The categories are speculative (purchasing one or more lots and constructing homes without first securing buyers), custom (constructing a home under contract with a buyer, using plans provided by architect or buyer), and tract (buyer selects a floor plan from a group of several model homes).If an applicant does NOT pass the state sales associate license exam within two years of completing the 63-hour sales associate prelicense course, the applicant must repeat the course.TRUE. If an applicant does not pass the state license exam within two years of the course completion date, the course completion expires and the applicant must again complete the prelicense education course.For licensing purposes, a resident of Florida is defined as a person who has resided in Florida for what period of time?

• MONTHS. For application and licensing purposes, the

FREC rules define a resident of Florida as a person who has resided in Florida continuously for a period of four calendar months or more within the preceding year, regardless of whether the person resided in a recreational vehicle, hotel, rental unit, or other temporary or permanent location.An individual who received a four-year degree in real estate from a state university is NOT exempt from which license requirement?STATE LICENSE EXAM. Individuals who have received a four-year degree in real estate from an institution of higher education are exempt from the prelicense FREC Courses I and II. Such individuals are also exempt from postlicense education requirements.Appraisers are paid a fee, NOT a commission. TRUE. Appraisers are paid a fee rather than a commission in order to reduce the likelihood of a conflict of interest.The sales associate that worked with the buyer in the transaction sets up an appointment with the buyers to visit them six weeks after the sale. The sales associate routinely makes a visit after the title closing to thank the buyers for choosing her real estate company and to extend an offer to help with the buyers' future real estate needs. What type of service is the sales associate providing?FOLLOW-UP. Follow-up is what a sales associate does for buyers and sellers after the sale and can result in future referrals and word-of-mouth advertising.The Commission's authority to regulate and enforce the license law is which type of power?EXECUTIVE. The executive powers to regulate and enforce the license law are delegated to the Commission by the Florida legislature.A real estate sales associate whose license was expired at the time of performing real estate services must renew the license prior to the title closing in order to lawfully receive compensation for the transaction.FALSE. A licensee may not practice real estate with an expired license. A broker or sales associate who does so is committing an unlawful act. The license must be active at the time the real estate services are performed.

Which document would contain information regarding the architectural design standards that must be used in a particular subdivision?RESTRICTIVE COVENANTS. Restrictive covenants affect how the land can be used and establish criteria for all parcels in that subdivision such as minimum square footage, type of construction, architectural design, and so forth.According to Chapter 475, F.S., the definition of residential real estate includes up to four residential units TRUE. Chapter 475, F.S., defines residential real estate as four or fewer residential units, vacant land zoned for four or fewer residential units, or agricultural property of ten or fewer acres.The Uniform Standards of Professional Appraisal Practice are standards of practice that must be followed by appraisers but NOT real estate licensees.FALSE. Florida law requires appraisers, real estate brokers, and sales associates to abide by the Uniform Standards of Professional Appraisal Practice when conducting appraisals of real property.The Florida Real Estate Commission's duty to create and pass real estate rules and regulations is the exercise of quasi-legislative power.TRUE. The Commission exercises its quasi-legislative power when it enacts rules and regulations that enforce the Florida statutory license law.The Florida Real Estate Commission consists of seven members, four of which must be consumer members who have never been brokers or sales associates.FALSE. Among the seven members of the Commission, only two must be consumer members who have never been brokers or sales associates.Members of the Florida Real Estate Commission are appointed by the GOVERNOR. FREC members are appointed by the Governor, subject to confirmation by the Florida Senate.A real estate license that is stamped with the official seal of the State of Florida serves as what type of evidence that the individual is a licensee?PRIMA FACIE. The seal, when affixed to official documents becomes prima facie evidence that the document is authentic. Prima facie is a legal term used to refer to evidence that is good and sufficient on its face.What is required of all nonresident license applicants?COMPLETE POST-LICENSING AND CONTINUING

EDUCATION AND COMPLY WITH F.S. 475 AND FREC

RULES. If a nonresident applicant or licensee wishes to become licensed in Florida, the applicant must comply with all education requirements, F.S. 475 requirements, and FREC rules.An agency relationship between a principal and broker may be terminated by the principal for any reason.FALSE. A principal is not free to revoke an agency relationship in all circumstances. The principal may revoke an agency if the agent breaches one or more of the fiduciary duties. Several other events could terminate an agency relationship, such as the fulfillment of the agency's purpose, mutual agreement to terminate the agency, or bankruptcy of the principal.A map that indicates the size and location of individual lots, streets, and public utilities within a new development is called a(n) SUBDIVISION PLAT MAP. A subdivision plat map indicates the size and location of individual lots, streets, and public utilities, including water and sewer lines.Attorneys who are active members in good standing with The Florida Bar are exempt from which education requirement?FREC COURSE I FOR SALES ASSOCIATES. Attorneys who are active members of The Florida Bar are exempt from FREC Course I. Active members in good standing with The Florida Bar are also exempt from the continuing

education requirements for real estate licensees. Attorneys are not exempt from the state license examinations for sales associates and brokers, the post-license requirements, or from FREC Course II.