Florida Real Estate Final Exam Prep (Latest 2023/ 2024 Update) Questions and Verified Answers| 100% Correct| Grade A

Florida Real Estate Final Exam Prep (Latest
2023/ 2024 Update) Questions and Verified
Answers| 100% Correct| Grade A
Q: Tom intends to make application to become a Fla real estate sales associate. He must have a
Social Security number, a high school diploma, be over 18, and be competent to negotiate. What
is not required?
Answer:
To be a US Citizen
Q: Mary has a 4 year degree in real estate. Mary must still attend the pre-licensing course and
post-licensing education. What class is she exempt from?
Answer:
Continuing Education
Q: If a Florida licensee becomes a non-resident of Florida, he or she must
Answer:
notify the BPR within 10 days and file an “irrevocable consent to service” within 60 days
Q: 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
Answer:
complete the 63-hour sales assoc pre-licensing course and pass the Fla license exam.

Q: To obtain a broker’s license, the applicant must have
Answer:

1. Satisfactorily completed the 72 hr broker course.
2. been an Active Sales Assoc for at least 24 months.
   Q: What information is required to be disclosed on an application for RE licensure?
   Answer:
3. If you’ve ever been convicted of a crime.
4. Entered a plea of nolo contendere, regardless of adjudicaton.
5. Any violation of the law (except traffic violations, speeding tickets, etc)
   Q: What does NOT have to be disclosed on an application for RE licensure?
   Answer:
   Personal Bankruptcy
   Q: If a developer owns 3 subdivisions in the names of 3 different entities. A sales assoc or
   broker assoc may be employed by the owner-developer on a commission basis to sell lots in the
   3 subdivisions if the assoc is issued what type of license?
   Answer:
   A Group License
   Q: To be a broker for several real estate brokerage companies, you must be issued what type of
   license?
   Answer:
   Multiple Broker licenses (one for each company)

Q: If a real estate licensee fails to renew her license at the end of the biennial renewal period,
what will happen to the license?
Answer:
It reverts to an involuntary inactive status
Q: If Mary’s initial license was issue on Feb 6, 2011, what is the expiration date on her license?
Answer:
September 30, 2012. (Licenses are renewed on March 31 and September 30 every year)
Q: If a RE licensee becomes a member of the US Armed Forces and is not engaged in the
practice of RE in the private sector, what is the status of his license?
Answer:
It is kept in good standing while he is on active duty and for a period of 6 mos after his discharge
from active duty.
Q: What happens if a licensee changes last name or mailing address?
Answer:
Must notify BPR within 10 days of the change
Q: 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?
Answer:
Involuntary Inactive

Q: Which power gives the Fla Real Estate Commission (FREC) the authority to regulate and
enforce real estate license law?
Answer:
The Executive Power
Q: What is the BPR?
Answer:
Dept of Business and Professional Regulation
Q: Who is the Secretary of the BPR appointed by?
Answer:
Appointed by the Governor and confirmed by the Senate
Q: What is the purpose of Laws?
Answer:
To protect the public
Q: What is the DRE?
Answer:
The Division of Real Estate
Q: Who is the Director of the DRE appointed by?
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Number of days to Notify DBPR is a License becomes a nonresident and to file irrevocable consent to servise
60 Days

Salaried managers of condominium or cooperative units who prepare rental agreements with a duration of up how many years are exempt from real estate license
Up to One year

Time period after which the licence application will expire
Two Years

Time Period which the pre-License will expired
Two Years

Experience requirements for brokers applicant obtained within preceding five-year-period
Two Years

Number of Days to Notify the FREC regarding a change of business address
Ten Days

Number of days a sales associate, broker associate, or an instructor has to notify the FREC of a change of employer
Ten Days

Grace period after discharge from the military duty to renew license
Six Months

Time Period after which involuntary inactive license becomes null and void
Two Years

Period requires to retain brokerage relationship disclosure for all transaction that results in a written contract.
Five Years

Time Period for sales associate to turn funds over to broker
End of next business day

Time Period for brokers to deposit funds into escrow account
End of the third business day

Number of days to Notify FREC if the broker request an EDO and the escrow dispute is either settle or goes to court before the EDO is issued
Ten Business Day

Number of days to replace broker of record
14 Days

Number of days to notify FREC of conflicting demands or good faith doubt.
15 days

Number of days to institute settlement procedure after receiving conflicting demands
30 business days

Time period to preserve brokers business records
5 years

Number of Days to Correct minor infraction listed in notice of noncompliance
15 Days

Number of days after which a final order becomes effective
30 Days

Time period to file Appeal
30 Days

Number of days licensee has to accept or file a written objection to a citation
30 Days

Penalty for a second degree misdemeanor
60 days and/or $500 fine

Penalty for a first degree misdemeanor
One year and/or $1000 fine

Penalty for a third degree misdemeanor
Five years and/or $5000 fine

Time period allowed to claim against recovery fund
Two Years

Maximum period of suspension
Ten Years

Time period after notice is posted by sheriff that eviction will take palce and landlord recovers the property
24-hours

Number of days to give information booklet concerning settlement cost to loan applicant
Three business days

Number of days borrower has the right to cancel the loan contract following signing loan documents for home equity line of credit
Three business days

Time period allowed to cancel contract under the Interstate Land Sales Full Disclosure Act
Seven Days

Number of days for landlord to return security deposit if not making a claim on deposit
15 days

Number of days for landlord to notify tennant if making a claim a claim on the deposit
30 days

Time period for tenants to file a written objection to the landlord’s claim on deposit
15 Days

Number of days to inform tenant regarding how funds are being held
30 Days

Notice to cancel resale condominium contract
Three business days

Notice to cancel from condo for sale from a developer
15 days

Florida enacted its first such law, what year?
1923

Real Estate License Law was officially designated Chap 475 of the Florida Statutes in what year?
1941

Number of Days to file a construction lien
90 days

Number of years of hostile possession to claim adverse possession
7 Years

Minimum time period of uninterrupted use to create an easement by description
20 years

Time period sellers must allow home buyers to conduct inspection for lead paint
10 days

Time period to enforce oral contract under the statue of limitations
4 years

Time period to enforce written contract under the statue of limitations
5 years

A Business Broker
Specializes 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

Follow-Up is
Keeping in contact with the new owner after the closing of the sale

A builder constructs a house on an owner’s lot according to the owner’s plans and specifications. This is called
Custom Building

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

What is exempt from Real Estate licensure under Chapter 475?

1. Straight Salary .
2. A person who sells cemetery lots for a commission. 3. Court jurisdiction.
3. Renting of a mobil home lot in a mobil home park

Other exemptions from licensure include

1. For Sale by Owner
2. 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 no greater than 1 yr.
5. An Attorney-in-Fact (Power of Attorney)
6. An Attorney-at-Law when acting in the scope of his or her duties as an attorney. Not receiving any compensation for a sale.
7. A decedent (personal representative) when appointed by the court.
8. A person selling entities licensed by the FCC (radio, TV or cable enterprises)
9. A person selling personal property.

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 sales assoc employs an unlicensed assistant. The licensee prepares a fact sheet for all of her listings. The sales assoc instructs her assistant to drive a prospective purchaser by several listed properties. When questioned about a particular property, the assistant reads information from the fact sheet. The prospect decides to buy after the assistant showed her the interior of the last property. Have one or the other or both violated Chapter 475?
Both violated the license law when the assistant entered the property to show it.

Under FREC rules, a Fla resident is a person who has
resided in Fla for at least 4 mos within the preceding year.

Tom intends to make application to become a Fla real estate sales associate. He must have a Social Security number, a high school diploma, be over 18, and be competent to negotiate. What is not required?
To be a US Citizen

Mary has a 4 year degree in real estate. Mary must still attend the pre-licensing course and post-licensing education. What class is she exempt from?
Continuing Education

If a Florida licensee becomes a non-resident of Florida, he or she must
notify the BPR within 10 days and file an “irrevocable consent to service” within 60 days

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.

To obtain a broker’s license, the applicant must have

1. Satisfactorily completed the 72 hr broker course.
2. been an Active Sales Assoc for at least 24 months.

What information is required to be disclosed on an application for RE licensure?

1. 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)

What does NOT have to be disclosed on an application for RE licensure?
Personal Bankruptcy

If a developer owns 3 subdivisions in the names of 3 different entities. A sales assoc or broker assoc may be employed by the owner-developer on a commission basis to sell lots in the 3 subdivisions if the assoc is issued what type of license?
A Group License

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)

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

If Mary’s initial license was issue on Feb 6, 2011, what is the expiration date on her license?
September 30, 2012. (Licenses are renewed on March 31 and September 30 every year)

If a RE licensee becomes a member of the US Armed Forces and is not engaged in the practice of RE in the private sector, what is the status of his license?
It is kept in good standing while he is on active duty and for a period of 6 mos after his discharge from active duty.

What happens if a licensee changes last name or mailing address?
Must notify BPR within 10 days of the change

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

Which power gives the Fla Real Estate Commission (FREC) the authority to regulate and enforce real estate license law?
The Executive Power

What is the BPR?
Dept of Business and Professional Regulation

Who is the Secretary of the BPR appointed by?
Appointed by the Governor and confirmed by the Senate

What is the purpose of Laws?
To protect the public

What is the DRE?
The Division of Real Estate

Who is the Director of the DRE appointed by?
The DRE is a division within the BPR. The Director is appointed by the Secretary of the BPR and subject to approval by the Commission

What is FREC?
Florida Real Estate Commission

What are the primary powers and duties of FREC?
Adopt Rules and Discipline Licensees who violate chapter 475.

How many members does FREC consist of?
7 members:
4 must be brokers who have held a license for 5 years. 1 must be a broker assoc or sales assoc who has held a license for 2 years. 2 must be lay members who have never held a license. At least 1 member must be 60 years old.

Who are the members of FREC appointed by?
Appointed by the Governor and confirmed by the Senate

Are FREC members salaried employees of the BPR?
No. they are compensated $50/day when on official business

FREC’s Quasi Legislative Power does what?
Adopts Rules

FREC’s Quasi Judicial Power does what?
DSRF – Deny, Suspend, Revoke and Fine ($5000) licensees

If FREC advertises a public hearing to consider a rule change, who can go?
Anyone effected by the change but NOT the general public.

Can FREC impose Administrative penalties?
Yes

Can FREC impose Criminal penalties?
No. they must be reported to the state attorney’s office.

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

Can FREC order a licensee to make restitution when damaging the public?
No. that would be a Civil penalty and must be imposed by a Court of Equity.

What does the FREC handbook contain?

1. Chapter 475
2. Rules of the Commission
3. Other laws applicable to the RE profession

What are the 3 forms of brokerage relationships?

1. Single Agency
2. Transaction Agency
3. No Brokerage

What is FLOC?
F – Full Disclosure
L – Loyalty
O – Obediance
C – Confidentiality

When do you have to disclose to someone if your are going to be a Single Agent, No Brokerage or Transactional Agent?
Not a first contact

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)

In a Single Agent Relationship, does the broker represent both the buyer and the seller?
No. An SA only represents either the buyer OR the seller (fiduciary)

Duties of “No Brokerage” are

1. Honest and Fair Dealing
2. Facts Affecting Value (material)
3. Accounting for Funds

Duties of “Transactional Brokerage” are

1. Honest and Fair
2. Facts Affecting Value
3. Accounting for funds
4. Skill, Care and Diligence
5. Present all offers
6. Limited Confidentiality (neutral)
7. Any additional Duties

Duties of “Single Agent” are

1. Honest and Fair
2. Facts Affecting Value
3. Accounting for funds
4. Skill, Care and Diligence
5. Present all offers
6. Limited Confidentiality (neutral)
7. Any additional Duties
8. FLOC (full disclosure, loyalty, obediance, confidentiality)

Do Transactional Brokers have Principles or Clients?
No. They have Prospects or Customers

What does Caveat Emptor mean?
Let the Buyer Beware. Usually applied to transactions where the parties have conflicting interests. This does NOT apply to a Single Agency relationship.

Is Full Disclosure required of a Transactional Broker?
No.

In a No Brokerage or Single Agent relationship, written disclosure applies to whom?
Single Family Residential. Includes:

1. 1-4 units
2. Vacant land zoned for 1-4 units
3. Agricultural land of 10 or less acres
4. Lease-option to purchase 1-4 residential units

Ace Realty is representing the seller and the buyer as transaction broker. Assoc Henry tells the prospective buyer that he believes the seller would accept $10,000 less than the $200,000 list price. Which duty has Assoc Henry violated?
Limited Confidentiality

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.

A Sales Assoc shows a property which the brokerage firm has listed for sale to a prospective buyer. The sales associate is considered what to the broker?
A general agent of the broker

When is a single agent brokerage relationship terminated?

1. Death of Principle agent
2. Insanity of Principle agent
3. Bankruptcy of Principle agent
4. Destruction of the subject property (bldg destroyed)
5. Fulfillment of the object of the employment

How many years must disclosure documents be retained?
5

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

What are the 3 types of Agents?

1. Universal Agent – Assigned by the Principle to perform all acts that the principle can
2. General Agent – Employed to handle all the affairs in a business such as a Sales Assoc or Property Manager.
3. Special Agent – Limited to finding prospects, showing the property and negotiating on behalf of the principle.

Who may the sales assoc accept deposits in the name of?
The Broker only (always)

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”)

Can a sales assoc be a general partner in a brokerage partnership?
No

Which ownership (business) entities can NOT register with BPR as a Real Estate broker?

1. Corporation Sole (meaning one. Like a religious organization)
2. Business Trust (REIT – Real Estate Investment Trust)
3. Co-op Assn.
4. Unincorporated Assn.

Which ownership entities ARE permitted to broker real estate?

1. Sole proprietorship
2. Corporations (for profit)
3. Partnerships (limited and general)
4. Limited Liability Company (LLC)
5. Limited Liability Partnership (LLP)
6. Corporations (not for profit)

When does a broker have to have money in escrow?
3 business days following receipt

A sales assoc wants to move into his own office at a location other than the broker’s place of business. He is willing to pay all expenses associated with his own office and will continue to be supervised by the broker. Is this allowed?
Only if the Sales Assoc works out of an office registered in the name of the broker.

Can a branch office be in a temporary shelter?
Only if the business records are kept there and here are sales associates assigned to that office. Otherwise, no.

Release Clause
Blanket Mortgage

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.

What are the 3 principal parts of a Corporation?

1. Stockholders – owners (a sales assoc may be a stockholder but NOT an officer or director)
2. Directors – must be registered and licensed as a broker or be an unlicensed person altogether.
3. Officers – must be registered and licensed as a broker or be an unlicensed person altogether.

Can a Corporation do a BARSALE?
No. Only Broker Corporation’s can.

Is a corporation a separate legal entity from the owners of the business?
Yes. A corporation is an artificial person created by law. Owners have limited liability.

How is a corporation “born”?
The Secretary of State charter the corporation and issues a Certificate of Incorporation (like a birth certificate)

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 happens if an active broker fails to renew his license at the end of a biennial period?
His license, and all sales assoc, will be cancelled. All sales assoc will automatically go into Involuntary Inactive status.

If there is only one active broker in an office and he/she dies, resigns or is removed, the vacancy must be filled within how many days?
14 calendar (not business) days.

What is a General Partnership?
Where there are two or more persons who agree to engage in a business and agree to share in in the profits and losses.

A broker-Realtor is a sole proprietor. He wants to use a trade name to identify his real estate brokerage business. what is the minimum requirement on the entrance sign?
Trade name, his name and the words “licensed real estate broker”.

What type of partnership is it when the public is deceived into believing that a partnership exists?
Ostensible Partnership

Can two or more brokers, that are NOT partners, share an office?
Yes. As long as each broker makes his/her true status or capacity clear with

1. signs on the door in each brokers name/business name.
2. telephone listings
3. advertising
4. representations

Name the 3 types of partnerships

1. General – they run the business and are liable for everything
2. Limited – They invest dollars into the business only. They are NOT liable. They may or may not be an active sales assoc or broker assoc.
3. Ostensible – public is deceived into thinking that a partnership exists

Can a limited partner participate in the management decisions of the partnership?
No.

Mortgagee
Bank (“ee” receives)

Mortgagor
Borrower (“or” gives)

Exculpatory Clause
“No fault” clause. Part of the Limited Partnership.

What always has to be in an ad or on any type of marketing for a RE agency?
The NAME of the agency ie. Coldwell Banker The Amelia Group

What does a sales assoc have to put in his/her ad for one of her listings?

1. The name of the RE agency
2. Her last name (first can be there but last HAS to be there)
3. Her phone number

Can a Corporation Sole broker real estate?
No. Corporation Sole is associated with church organization. The power of a corporation sole descends to the successor in office.

A business trust is created by filing what?
A Declaration of Trust with the Sec of State.

What is a business trust?
A common law trust. REIT – Real Estate Investment Trust

The main office of a broker has to have what 2 things?

1. at least one enclosed room
2. a building of stationary construction (applies to branch offices also)

If a real estate broker uses a title company to hold an escrow deposit, how many days after the deposit is due under contract does he have to get written verification of receipt?
10 business days.

How does a brokerage office entrance sign have to read?

1. Trade Name first (such as Coldwell Banker the Amelia Group)
2. Name of the broker
3. The words “Licensed Real Estate Broker”

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 it called if the name of the brokerage firm is NOT included in an advertisement?
A Blind ad

What is the dollar amount that a broker must report to the IRS if a cash deposit exceeds it?
$10,000

If a sales assoc receives a deposit on Friday at 9pm and Monday is a legal holiday, when must he/she deliver the deposit to the broker?
Tuesday (always by the end of the next business day)

Is a post-dated check and promissory note the same?
Yes

Do you have to disclose a promissory note or post-dated check to the seller?
Yes, immediately.

If a sales assoc receives an offer with an earnest money deposit on Friday and delivers the deposit to the broker that afternoon, when is the latest that the broker can place the deposit in escrow?
3 business days after receipt of check

How long must brokerage business records be preserved or kept?
5 years

If a broker receives conflicting demands from the buyer and seller for the earnest money deposit and cannot resolve the issue between the parties, what 3 things must he do?

1. Notify FREC within 15 business days after the last party’s demand
2. Maintain the money in escrow until all is settled.
3. Institute one of the settlement procedures within 30 business days after the last demand. example: If the broker notified FREC of the conflict 10 business days after the last party’s demand, then he will have 20 business days to implement a procedure. If he notified FREC 15 days after the last party’s demand, then he would have 15 days to implement a procedure

When are you exempt to notify FREC concerning a disputed deposit held in escrow?
If the buyer gives a written notice of cancellation of a contract within:

1. 15 calendar days if NEW
2. 10 calendar days if TIMESHARE
3. 3 business days if RESALE

What are the 4 settlement procedures regarding a deposit dispute?

1. Mediation – 3rd party recommends a Non-binding solution.
2. Arbitration – 3rd party makes a Binding determination
3. Litigation – file a bill of Interpleader. The broker relinquishes any claim on the deposit and gives it to a court
4. Escrow Disbursement Order (EDO) – request that FREC determine who is entitled to the escrowed property

Once a deposit dispute is settled by mediation or arbitration, how many days does the broker have to notify FREC of the outcome?
10 business days

What is conversion?
The failure to account and deliver any deposit, document, thing of value, or commission to the person entitled to receive them.

Can a licensee furnish someone a Rental Property list for a fee?
Yes, provided there is a written contract or receipt agreement with provisions for a refund made clear in the agreement.

What if rental information provided to someone by a licensee under a contract is NOT current or accurate?
They may demand within 30 days of the contract a return of their full paid fee. If they do NOT obtain a rental, then they are entitled to 75% of the fee paid. Example: the rental info was purchased on July 1st, then the demand for a refund has to happen by the 31st to receive a refund.

What happens if there is a violation of the rental information for a fee law?

1. 1st degree misdemeanor
2. $1000 fine
3. 1 year in jail

When hours can telemarketers call a residence?
between 8am and 9pm

How much can a telemarketing violator be fined for each illegal call?
$16,000

What are the two exceptions for “Do Not Call”?

1. Telemarketers (Realtors also) can call up to 3 mos after a business inquiry has been made
2. Telemarketers (Realtors also) can call up to 18 mos after a business transaction has concluded

Who is the Florida “Do Not Call” list administered by?
Dept of Agriculture and Consumer Services

Which is more severe, revocation or suspension?
Revocation

If an Associate makes a promise to her broker’s principal in good faith and later finds that she cannot keep the promise, has the Associate violated any laws?
No

What are the 4 types of Administration discipline penalties of “FREC May”?

1. Deny
2. Suspend (not exceeding 10 yrs)
3. Revoke
4. Fine

If an Assoc is convicted of a crime of moral turpitude and the court withholds adjudication, what can FREC do to them?

1. Revoke/suspend their license up to 10 years
2. Fine up to $5000

Under chapter 475, what is a felony of the third degree?
A person operating without holding a valid and current license with an active status.

What are the 6 Grounds of Revocation?

1. License by fraud – 3rd degree felony. $5000 fine or 5 years in jail or both
2. License by mistake
3. Obstruct justice by bribe
4. jail, mental institution
5. sell timeshare without an license
6. sell timeshare without full disclosure

What are the 3 criminal penalties?

1. Violating Chapter 475 – 2nd degree misdemeanor. $500 fine or 60 days in jail or both.
2. Rental information for a fee – 1st degree misdemeanor. $1000 fine or 1 year in jail or both.
3. Operating as a broker or sales assoc without a valid and current active license – 3rd degree felony. $5000 fine or 5 years in jail or both.

What are the 5 administrative actions the BPR may take against licensees

1. Issue a notice of non-compliance or warning – A licensee has 15 days to take corrective action. Minor violation.
2. Issue a citation – licensee has 30 days to pay or file an objection. May also have to complete an educational course.
3. File an Informal complaint – Must be in writing, signed by the complainant, and legally sufficient (contain alleged facts)
4. Issue an emergency suspension – licensed
5. Issue a notice to cease and desist – unlicensed

What are the 8 steps in an Administrative Proceeding?

1. Informal Complaint – an allegation that ANYONE can file
2. Investigation – by BPR
3. Probable Cause – determined by Probable Cause Panel
4. Formal Complaint – filed by the state, BPR and FREC
5. Formal Hearing – before a judge
6. Informal Hearing – before FREC
7. Final Order – by FREC
8. Appeal – to court of appeals

What is stipulation?
When two attorney’s come to an AGREEMENT as to the penalty to be imposed for the violation

If an inactive sales assoc renews her license before the expiration date but did not complete her continuing education prior to the expiration date and the BPR finds out, what can happen to her?
She will most likely have her license revoked and not be allowed to reapply for a license for 5 years.

If a sales associate has had his license revoked by FREC but is appealing and wants to continue practicing RE during the appeal process, can he do so?
Yes. He can continue to practice if a stay of enforcement is ordered. Supercedeas.

What are the 3 “FREC musts” when dealing with a Final Order of the Court

1. FREC must inform the Division of Fla Land Sales, Condominiums and Mobil Homes of any disciplinary actions against a licensee.
2. FREC must turn any criminal stuff into the State Attorney
3. If another state agency disciplines a licensee, FREC must issue a notice to that licensee to show cause why it should not take action also.

What is the Real Estate Recovery Fund used for?
Compensatory Damages. To reimburse a person who has suffered monetary damages as a result of an act of a real estate licensee who violated chapter 475

In the Real Estate Recovery Fund, how much is the payment for claims out of a Single Transaction?
$50,000

In the Real Estate Recovery Fund, how much is the payment for claims out of Multiple Transactions?
may not exceed $150,000

Racial discrimination in the sale or rental of real property is prohibited by what Act?
The Civil Rights Act of 1866

The federal Fair Housing Act (applies to Housing only) of 1968 prohibits discrimination based on what 7 things?

1. Religious affiliation
2. sex
3. national origin
4. color
5. race
6. familial status
7. handicap status

Is it true that the Civil Rights Act of 1866 supercedes all other laws relative to racial issues?
Yes

Who prepares the Equal Opportunity poster?
HUD

Is it a violation of law if the poster is not displayed by brokerage firms?
Yes. Failure to display the poster may be considered discrimination.

What are the exemptions under the Fair Housing Act?

1. Religious Organizations
2. Private Clubs
3. Any single-family house sold or rented by its owner (provided the owner doesn’t own more than 3 houses)
4. 2-4 family housing if the owner occupies one of the dwelling units as a residence
5. Commercial Real Estate (it’s not a house)

According the Fair Housing Act, what are the 3 unlawful practices?

1. Steering – steering people to a neighborhood based on race
2. Blockbusting – persuading existing owners to sell
3. Redline – lenders who refuse to make a loan in certain areas or subdivisions

Which law or regulation requires the disclosure of the annual percentage rate and finance charge?
Regulation Z

The Truth in Lending Act (TILA) requires lenders to give the Truth in Lending statement within how many business days after the receipt of a written loan application?
3

The Truth in Lending Act (TILA) gives consumers the right to rescind the loan agreement within how many business days after the receipt of the Truth in Lending Statement (disclosures)?
3

Under Regulation Z, what 3 things does the right to cancel a loan agreement within 3 business days apply to?

1. A home equity line of credit
2. a cash-out refinance transaction
3. a second mortgage on a primary residence ***(does NOT apply to first mortgage loans)

If a “trigger term” is used in an advertisement, the lender must disclose ALL of what 3 things?

1. amount or percent down payment
2. the terms of the loan
3. the Annual percentage rate

What is a “trigger term”?
Example: Just 3% downpayment. Interest rate only 6%. Only $1000 downpayment

Is APR (annual percentage rate) a “trigger term”?
No

Discrimination against a credit applicant on the basis of age is prohibited by what Act?
The Equal Credit Opportunity Act

Which Act requires that buyers be informed with a good faith estimate of their probable closing costs within 3 business days of a written loan application?
RESPA – Real Estate Settlement Procedures Act

Under RESPA, the borrower is entitled to see which document 1 business day before the actual closing?
HUD-1

The Uniform Settlement Statement is required by which law?
RESPA

Which Act lets a landlord commingle the deposits if he/she posts a surety bond and pays the tenant 5% interest per year and places the money in a separate interest bearing acct?
Florida Residential Landlord and Tenant Act

If a Landlord collects security deposits and advance rent, what 3 things MAY he do with the money?

1. Hold the money in a separate NON-interest bearing Fla bank and not commingle the funds with his own
2. Hold the money in a separate interest bearing acct and pay the tenant at least 75% of the interest rate earned or interest at the rate of 5% per year and NOT commingle funds
3. Post a Surety Bond with the clerk of courts in the total amount of deposits and advance rents and pay the tenant 5% interest and commingle the deposits with his own money.

If a Broker collects and holds tenants deposits for a property owner, can he/she deposit them in their own escrow acct?
Yes as long as they keep a record of tenant payments.

When a tenant vacates or ends a lease, the landlord has how many days to return the security deposit?
15 days to return the deposit and 30 days to notifiy the tenant if he/she intends to impose a claim on the deposit.

If evicted, how many days does a tenant have to vacate for non-payment of rent
3 days for nonpayment of rent. 7 days to vacate for all other breaches (parties, etc)

If John sells his farm land and retains the oil rights, what type of property right is he retaining?
Subsurface

What type of rights apply to above-ground space?
Air Rights

What type of rights apply to land and water rights?
Surface rights

If Mary purchases a home on a riverfront lot. What type of ownership right does she have?
Riparian rights

What is the difference between Riparian Rights and Littoral Rights?
Riparian = River. Littoral = Lake

The gradual build-up of land along a shoreline, caused by natural forces is called what?
accretion (adds)

Jim owns a lot on a lake. There is a gradual receding of the waterline increasing the land area. The property right is called what?
Reliction

the gradual increase of land by water such as silt and sand on a riverbank is called what?
Alluvion

What is the gradual loss of land along a shoreline, riverbank or stream?
erosion (erases)

Personal property that can be moved around is called what?
chattel. ie draperies, area rugs, countertop microwaves, etc.

An item that was once personal property but is now legally considered to be real property (can’t be moved) is called what?
A Real Fixture. It has become affixed, attached, built-in or installed to the home. ie built-in appliances, plumbing fixtures

What does DUPE stand for?
D = Disposition or Owner
U = Use
P = Possession
E = Exclusion

Estate means the same things as what?
Tenancies

What are the 6 types of Estates?

1. Freehold – estate of ownership
2. Leasehold – estate of non-ownership (lease)
3. Fee Simple – most common. Inheritable. Largest bundle of rights.
4. Life – estate for the life of the owner
5. Reversion – reverts back to the grantor
6. Remainder – when a life estate ends the property goes to the remainderman

Tom owned a rental property prior to his marriage to Betty. He has a son by previous marriage. Tom leaves a will stating that, upon his death, Betty is to own the property as long as she lives and that upon her death Bobby is to receive the property. Tom dies. What estate to Betty inherit?
A Life Estate

Adam owns a home in fee simple. He executes a deed conveying the title to Betty until she dies, and upon her death the ownership will be vested in Carol. Carol’s interest in the home is what type of estate?
Remainder Estate

What are the 3 types of Leasehold estates?

1. Tenancy at Will
2. Tenancy at Sufferance
3. Estate (Tenancy) for Years

A month-to-month tenancy at will requires how many days notice to terminate?
15 days

A week-to-week tenancy at will requires how many days notice to terminate?
7 days

If a written lease expires and the tenant is unable to contact the owner prior to the expiration and remains in possession of the premises and continues to pay rent without renewing the lease agreement. What type of tenancy is the occupant establishing?
A tenancy at sufferance

2 sisters purchase an investment property. Each sister wants her interest in the property to go to her spouse in the event she dies during the ownership. To accomplish this, the sisters should own the property as what type of tenancy?
A tenancy in common

If ownership is by 2 or more persons and one of the owner dies, what type of tenancy would allow the surviving owners to receive the share of the deceased owner?
Joint tenancy. This MUST be in writing

If John and Mary own a property as tenants in common, can they have unequal shares?
Yes

If Al, Bill and Carol purchase a shopping center as joint tenants with right of survivorship. 5 years later, Carol sells her interest to Doris. One year later Doris dies. Who will receive doris’s interest in the property?
Doris’ Heirs

Regarding a homestead estate, which statement is TRUE? A homestead estate:
A. allows the owner to avoid foreclosure of a mortgage secured by the home
B. Exempts the first $50,000 of assessed value from property taxation
C. Exempts the property from involuntary loss due to personal and business debts
D. Exempts up to 160 acres of land from forced sale for nonpayment of property taxes
C. This estate protects the home from involuntary loss due to personal debts and business debts

True or False. The Homestead Estate does NOT exempt the home from forced sale for the nonpayment of real estate taxes, special assessments, mortgage liens or construction liens.
True

How many acres within the city and outside of the city are exempt from judgement liens?
1/2 acre within and 160 acres outside

Under the Condominium Act, which document must be given to a prospective who is purchasing a condo from a developer of 20 or more new residential condominium units?
Prospectus

A proprietary lease is associated with what type of ownership
Cooperative

What are the 2 types of titles?

1. Legal – deed
2. Equitable – ownership

What is voluntary alienation of title to real property?
Will

Dedication
Gift (dancing words)

conveyance
written deed (dancing words)

If a person dies intestate (no will) and no heirs can be found after a diligent search, the state of Fla acquires the title by what?
Escheat

What are the 2 types of Voluntary Alienation?

1. Deed – an owner voluntarily signs a written document conveying his/her title
2. Will – an owner voluntarily signs papers indicating who receives property upon his/her death

What are the 4 types of Involuntary Alienation?

1. Descent – A person dies intestate (no will) but has heirs that the law will disperse the property to.
2. Escheat – A person dies intestate (no will) with no heirs so the property goes to the state.
3. Adverse Possession – when land is occupied continuously, openly, hostile, exclusively and notoriously for 7 years by another person. Squatter Rights.
4. Eminent Domain – when an owners land is take for public use through a condemnation proceeding with payment to the owner

If a mortgage is recorded in the public records, what type of notice of legal interest in the property is given?
Constructive Notice

What is the usual form of Actual Notice of ownership?
Possession of the property

Encroachment
Survey (dancing words)

Which is NOT an encumbrance of title?
A. a building on the site
B. Deed restrictions
C. Easement
D. lease
A. A building on the site

What is a “Suit to Quiet” Title?
A suit to settle claims and establish a clear title

What is a “Quit Claim” Deed?
Clear Clouds

Which is NOT an essential requirement of a valid deed?
A. delivery of the deed
B. legal description in the deed
C. signature of a competent grantee
D. Signatures of 2 witnesses
C. Signature of a competent grantee

What are the 4 requirements for a valid deed?

1. must be in writing
2. witnessed by two people
3. Signed by a competent Grantor
4. Voluntarily delivered

Does a deed have to be notarized and recorded?
No

The date of execution is contained in which section of a deed?
Premises

Which clause in a warranty deed indicates the type and duration of estate being conveyed?
Habendum

What are the 4 types of deeds?

1. General Warranty Deed
2. Special Warranty Deed
3. Bargain and Sale Deed
4. Quitclaim Deed

A general warranty deed
A. assures clear title
B. contains a special warranty
C. contains a warranty forever
D. insures clear title
C.

True or False. The seizin clause in a warranty deed is a promise that the Grantor owns the property and has the right to convey the title
True

If ABC Corp gives a warranty of title only against the acts of the grantor and its legal representatives, it is what kind of Deed?
A. Corporate Warranty
B. General Warranty
C. representative
D. Special Warranty
D.

Regarding a Quit Claim deed, which statement is false.
A. The deed contains no covenants or warranty in the title
B. The deed provides the grantor the best assurance of no future liability
C. The grantor may convey title by this type of deed if the contract does not specify a different instrument
D. The instrument is used primarily to remove clouds on a title
C.

What are the 4 Government Restrictions on ownership?
PETE
P = Police Power
E = Eminent Domain
T = Taxation
E – Escheat

Which gives the government the right to restrict the use of privately owned land to protect the health, safety and welfare of the public?
A. Eminent Domain
B. Escheatment
C. Police Power
D. Restrictive Covenants
C.

If someone is considering purchasing a home in a particular subdivision and want to make sure they will be allowed to park their motorhome on the driveway, what document should they review?
A. Deed Restriction
B. Restrictive Covenants
C. Subdivision Plat Map
D. Zoning Ordinance
B.

Sun City utility company has the right to install water mains across the rear 10 feet of a someone’s property. The legal interest held by the company is a(n).
A. easement
B. encroachment
C. Utility
D. Water Right
A.

A tenant in an office building pays a fixed rent plus the property taxes, hazard insurance premium, and common area maintenance expenses. This is what type of lease?
A. gross
B. ground
C. net
D. percentage
C.

A lease longer than __ must be in writing and witnessed by 2 people?
1 year

Can a lease less than 1 year be oral or implied and not in writing?
Yes

Name the 5 types of leases?

1. Gross lease – tenant pays a fixed rent and the landlord pays operating expenses.
2. Net lease – the commercial tenant pays a fixed rent PLUS all or part of the operating expenses such as property taxes, hazard insurance, maintenance and utilities). Most common for office buildings.
3. Percentage lease – the commercial tenant pays rent based on a percentage of the gross retail sales. Most common for shopping centers
4. Variable lease – the tenant pays rent that will vary based on the Consumer Price Index (CPI)
5. Ground lease – tenant leases land and pays the landlord for the use of the ground

Can a tenant be kicked out if the building is sold?
No. the security deposit and rent must be transferred to new owner.

What is a lien?
A claim against a property for a debt

What are the 2 types of liens?

1. Voluntary – created with owners consent ie mortgage lien, vendor’s lien
2. Involuntary – created w/o owners consent ie property tax lien, construction lien, judgment lien

Which is an example of a voluntary lien?
A. construction
B. special assessment
C. mortgage
D. tax certificate
C.

A Vendor’s lien is an example of
A. general lien
B. involuntary lien
C. lien against the purchaser
D. specific lien
D. Specific lien – affects only the specific property

What is opposite of North 9 degrees East?
South 9 degrees West

Which parcel of land contains exactly 4 acres?
A. 330′ x 396′
B. 330′ x 462′
C. 400 x 4.356′
D. 528′ x 330′
D. (528 x 330 = 174,240 divided by 43,560 = 4)

Starting at the SE corner of a section thence West 660 ft to a point, thence North 330 ft to a point, thence East 660 ft to a point and thence to the point of beginning. This tract contains how many acres?
A. 2
B. 3
C. 4
D. 5
…

which tract of land has a perimeter of 834.84 linear feet?
A. 100.00′ x 834.84′
B. 100.00′ x 417.42′
C. 200.84′ x 215.84′
D. 208.71′ x 208.71′
D. (208.71 + 208.71 + 208.71 + 208.71 = 834.84)

Before Tax Cash Flow is what?
net operating income minus debt service

“Current market value less mortgage debt” describes what term?
equity

Which is NOT a benefit of investing in real estate?
A. depreciation allowance that reduces taxable income
B. hedge against inflation
C. liquidity
D. positive leverage
liquidity

Which type of risk is associated with the loss of purchasing power due to an unexpected increase in inflation?
A. business
B. interest rate
C. liquidity
D. purchasing power
Purchasing Power

Positive Leverage
A. increases the return on equity from using debt financing
B. is selling an investment property at a profit
C. is the difference between a high interest rate and a lower interest rate
D. is the difference between a high rate of return on RE and a lower return on other types of investments
increases the return on equity from using debt financing

The use of leverage
A. has no effect on the yield on investment
B. may increase or decrease the yield on investment
C. Will decrease the yield on investment
D. will increase the yield on investment
MAY increase or decrease the yield on investment

Regarding the RE market, which statement is TRUE?
A. Govt regulations have little influence on the market
B. The market is influenced by the immobility of RE
C. the market is not influenced by the physical characteristics of land
D. The market is quick to respond to changes in supply and demand
The market is influenced by the immobility of RE

Regarding the RE market, which statement is FALSE? The market is
A. Influence by the immobility of land
B. regulated by FREC and the DBPR
C. segmented into submarkets
D. slow to adjust to changes in supply and demand
B. regulated by FREC and the DBPR

The price of RE increases. Which will likely occur?
A. RE rental rates will increase
B. RE sales will not be affected.
C. The demand for RE will increase
D. The interest rate will decrease
A. RE rental rates will increase

Which variable influences the supply of new real estate?
A. availability and cost of construction financing
B. income of consumers
C. mortgage credit
D. population
A. availability and cost of construction financing

There is an excess supply of housing in a RE market. The area can best be described as
A. builder’s market
B. buyer’s market
C. broker’s market
D. seller’s market
B. buyers market

The planning commission does NOT have delegated final authority for
A. sign control
B. site plan approval
C. subdivision plan approval
D. zoning variances
D. zoning variances

Which would be classified as a service industry?
A. branch office or credit union
B. coffee roasting plant
C. computer manufacturing plant
D. military base
A. branch office or credit union

A paper mill that is a major employer of a particular place is an example of what type of industry?
Base industry (they bring people to an area while the service industry serves them once they get there)

Zoning Ordinances
A. are adopted by the state legislature
B. regulate building construction
C. regulate land development
D. segment the community into districts based on land use
D. segment the community into districts based on land use

Zoning regulations require a 15′ setback for all building structures that front Captital St. There are no other setback requirements. A particular lot on Capital St. is 190′ x 190′. What are the dimensions of the lot on which a building may be constructed?
A. 175′ x 175′
B. 175′ x 190′
C. 190′ x 175′
D. 190′ x 190′
C. 190′ x 175′

In residential areas, the primary aim of the different zoning districts is to regulate
A. density
B. developers
C. height of improvements
D. highest and best use of the land
A. density

A provision in a zoning ordinance creates an undue hardship on a property owner. The owner did not cause the hardship. The Zoning Board of Adjustment is authorized to
A. Amend that provision of the ordinance
B. classify this as a nonconforming use
C. grant a special exception
D. issue a variance
D. issue a variance

A lot has a 15′ setback requirement. The owner wants to add a 1000 sq ft addition to her home. To do this, the new home will need to extend 2 ft into the setvack area. Mary needs to apply for what?
A variance

A small retail store was constructed, years ago, on property zoned for agriculture use. The area has since been re-zoned to a single-family residential land use. Which statement applies to the store now?
A. illegal use
B. nonconforming use
C. special exception
D. variance
B. nonconforming use

Which is NOT used by local govt to enforce compliance w/the Fla Building code?
A. issuance of building permit
B. periodic building inspections
C. review and approval of architectural plans and engineering drawings
D. zoning ordinances
D. zoning ordinances

After completion of the construction of a subdivision, the streets, sidewalks and common areas are frequently conveyed to the city or county in a process called?
Dedication

A contractor who builds on his or her own lot in the hope of finding a purchaser upon completion is building on?
Speculative Building

A mortgage broker
a. Is the same as a mortgage banker
b. Must have a separate license
c. Originates loans
d. Must have a real estate license
b. Must have a separate license

Concentrating on one neighborhood or style of property is:
a. A waste of time
b. A practice called farming
c. Required by most brokers
d. Illegal
A practice called farming

An attorney in fact
a. must be a member of the Florida Bar.
b. may be paid a commission for services of real estate.
c. is authorized by a power of attorney to act for another.
d. is required to hold an active real estate license.
c. is authorized by a power of attorney to act for another.

The three areas of expertise real estate licensees bring to the transaction relate to __, __, and __ __.
Marketing, Valuation and Property Transfer

The composite value of the real property and personal property, plus the intangible assets of a business is called __ __ value.
Going Concern Value

Real estate brokers are NOT required to be knowledgeable regarding?
Accounting

The service provided by real estate brokers that is considered to require the most experience and knowledge is?
Counseling

A sales associate’s license will be __ if he or she does not complete required postlicense education during his or her initial license period.
Void

A broker associate acts in the capacity of a _.
Sales Associate

Upon passage of the state examination, an applicant for a sales associate’s license will receive an __ license.
Inactive License

Florida does not reciprocate with other states, but does have with some states that have educational requirements that are similar.
Mutual Recognition

The postlicense educational course for sales associates consists of _ hours.
45 Hours

Owner-employers are _ but do not receive a license.
Registered

_ education must be completed during the initial sales associate’s license period.
Post License

A sales associate failed to complete the required postlicense education prior to renewal. What is the status of his license?
Void

A sales associate failed to complete the required postlicense education prior to renewal. What is the status of the license?
a. revoked
b. suspended
c. involuntarily inactive
d. void
d. Void

To qualify for a Florida Real Estate license, an applicant must:
a. be a citizen of the United States.
b. be a Florida resident
c. be at least 21 years of age
d. have a high school education or equivalent
d. have a high school education or equivalent

A contractor who builds on his or her own lot in the hope of finding a purchaser upon completion is building on what?
Speculative Building

Property management has grown as a service of real estate primarily because of an increase in what?
Absentee Ownership

An estimate of the value of property developed by a real estate licensee for use in listing or selling property is known as?
Comparative Market Analysis

The category of construction that applies when a property owner employs a contractor to build on his or her own lot is called?
Custom Building

A mortgage broker
a. Is the same as a mortgage banker
b. Must have a separate license
c. Originates loans
d. Must have a real estate license
b. Must have a separate license

A real estate appraiser’s fee for professional service is based on:
The time and difficulty of the appraisal.

A real estate appraiser’s fee for professional service is based on:
a. A percentage of the property’s gross income
b. A percentage of the fair market value of the property
c. The time and difficulty of the appraisal
d. A percentage of the property’s sales price
c. The time and difficulty of the appraisal

A developer contracts to build a home on a buyer’s lot to the buyer’s specifications. This is an example of which type of building?
a. Tract
b. Custom
c. Speculative
d.Subdivision
b. Custom

The continuing education requirement consists of how many hours?
14 hours

Florida real estate sales associates that desire to become brokers must wait how many years before taking the state examination?
2 years

An appraisal is what?
An estimate of value

An attorney in fact:
a. must be a member of the Florida Bar.
b. may be paid a commission for services of real estate.
c. is authorized by a power of attorney to act for another.
d. is required to hold an active real estate license.
c. is authorized by a power of attorney to act for another.

How many hours of postlicense education are required to renew a broker’s license?
a 14
b 30
c 45
d 60
d 60

To qualify for a real estate broker’s license, an applicant must have been employed for a minimum of:
a. 6 months under one actively licensed broker.
b. 24 months under one actively licensed broker.
c. 24 months under one or more actively licensed brokers.
d. 6 months under one or more actively licensed brokers.
b. 24 months under one actively licensed broker.

Which choice describes an exemption from the licensing requirements of Florida
Statute 475?
a. partners in real estate partnerships that receive compensation in excess of their interest in the partnership for performance of real estate services on behalf of the partnerships
b. condominium managers paid on a commission basis for rentals of less than 1 year
c. appraisers certified under Florida Statute 475, Part II, when performing brokerage services
d. attorneys performing legal duties in connection with a real estate transaction
d. attorneys performing legal duties in connection with a real estate transaction

The agreement the state of Florida has with some other states that recognizes the
similarity in education and experience required of licensees is called:
a. reciprocity.
b. mutual recognition.
c. cooperative licensure.
d. intrastate licensing.
b. mutual recognition.

A plumber has been appointed by a court to appraise a small business. The plumber
is:
a. in violation of F.S. 475.
b. is allowed to charge a commission.
c. may do so and be paid a fee.
d. must first be licensed under F.S. 475, Part II.
c. may do so and be paid a fee.
(May do so because he is APPOINTED BY A COURT)

A Georgia auctioneer was asked by a local real estate broker to auction a small motel
in Jacksonville. The auction did not result in a sale. The Florida broker paid the auctioneer for out-of-pocket expenses, but did not pay a commission. It would be correct to say that the:
a. Georgia auctioneer violated the license law.
b. Florida broker did not violate the license law.
c. Florida broker is not subject to discipline by the Florida Real Estate Commission.
d. Transaction is perfectly within the license law.
a. Georgia auctioneer violated the license law.

The Commission’s ability to impose disciplinary actions against licensees is known as what power?
Quasi-Judicial

The rule making authority of the FREC is called what power?
Quasi-Legislative

The FREC is composed how many members?
7

Members of the Florida Real Estate Commission may serve no more than how many consecutive terms?
2

Licensees that are members of the armed forces have all fees, dues and other requirements waived during their military service and for how many months after returning to civilian life?
6 months

The Department of Business and Professional Regulation does NOT have the authority to issue a/an:
a. cease and desist order.
b. subpoena.
c. injunction.
d. notice of noncompliance.
c. injunction

The maximum number of years a member may serve on the Florida Real Estate Commission is:
a. 4
b. 8
c. 12
d. unlimited
d. unlimited

A licensee that fails to renew when required to do so will have his or her license placed on?
Involuntary Inactive

The Division of Real Estate is an administrative part of the Department of:
a. State.
b. Commerce.
c. Banking.
d. Business and Professional Regulation.
Business and Professional Regulation

Examination questions and answers
a. are published in the Administrative Weekly before appearing in an examination.
b. may not be challenged.
c. may be reviewed .by any member of the public upon request.
d. are confidential.
d. are confidential

Which Department issues real estate licenses?
a. State
b. Business and Professional Regulation
c. Revenue
d. Real Estate
b. Business and Professional Regulation

Which information supplied by an applicant is public record?
a. financial information
b. test scores
c. name and address
d. medical information
c. name and address

The Florida Real Estate Commission held a meeting for the purpose of passing a new rule. This is an exercise of which Commission power?
a. executive
b. quasi-legislative
c. quasi-judicial
d. ministerial
b. quasi-legislative

What action may the Department take if it determines that an unlicensed person has operated in violation of a law or rule under its administration?
a. None, since the Department has no jurisdiction over unlicensed individuals.
b. It may issue an injunction prohibiting such activity in the future.
c. It may imprison the violator for up to 5 years.
d. An administrative fine of up to $5,000 may be imposed.
d. An administrative fine of up to $5,000 may be imposed.

A real estate license expires:
a. on the date shown on the license.
b. every 2 years.
c. on the effective date.
d. at the end of 1 year.
a. on the date shown on the license.

A sales associate failed to complete required postlicense education prior to expiration of the license period. What is the status of license?
a. active
b. voluntary inactive
c. involuntary inactive
d. null and void
d. null and void

A sales associate is employed by a broker Monday through Friday and for a builder on weekends. The sales associate feels the added experience is beneficial especially
since both employers pay an attractive commission split. Which statement is correct?
a. The sales associate must obtain a group license.
b. Multiple licenses are required in this situation.
c. This arrangement violates the license law.
d. This is permissible if both employers agree to the arrangement.
c. This arrangement violates the license law.

An agent that is empowered to perform a single act on behalf of his or her principal has a _______agency.
Special

A sales associate is a __ of the broker’s principal.
Subagent

Before showing a property, allowing a buyer to sign an offer to buy, or a seller to sign a listing agreement, a licensee must provide the party with a written brokerage relationship form when acting in the capacity of , relationship.
Single Agency, No Brokerage Relationship

A member of the public may select from one of three options when working with a broker, which are , and _.
Single Agency, Transaction Broker and a No Brokerage Relationship

The Consent to Transition to Transaction Broker notice is required to be or __ for transition to occur.
Initialed or Signed

If the principal refuses to sign or initial the Consent to Transition to Transaction Broker notice form, the broker is required to act as a __.
Single Agent

The only brokerage relationship that includes fiduciary duties is the _ _.
Single Agency

A licensee assigned by a broker to act as a single agent of a buyer or seller in a nonresidential transaction is titled a?
Designated Sales Associate

Brokers in a nonresidential sale are not required to use?
Written Disclosures

A transaction broker
a. is an agent of both parties.
b. has fiduciary duties to the seller.
c. has fiduciary duties to the buyer.
d. provides limited representation to both parties.
d. provides limited representation to both parties.

Who owes fiduciary duties in an agency relationship?
a. the broker only
b. the principal only
c. both parties
d. neither party
a. the broker only

As an agent a broker is employed by and acts on behalf of a
a. buyer.
b. seller.
c. customer.
d. principal.
d. principal

Broker Tom sold a property listed with broker Alice. Tom was unable to attend the closing and broker Alice collected the entire commission. Should broker Alice refuse to pay broker Tom his share of the commission, broker Alice could be charged with:
a. failure to account.
b. collecting an overage.
c. commingling.
d. fraud.
a. failure to account.

Mary, an Ohio broker, accompanied a customer to Florida and met with broker Stan in his office in Jacksonville. While Stan showed the customer property and obtained a binding contract for the purchase of a condominium, Mary took some time off and went to the beach. On returning to Stan’s office, Mary discovered Stan had written a contract and demanded a share of the commission. Which statement is correct?
a. Stan may share the commission with Mary.
b. Mary violated the real estate license law by accompanying the customer to Florida.
c. If Stan pays Mary a share of the commission, Stan will be in violation of the license law.
d. If Stan pays Marya share of the commission, both Stan and Mary will be in violation of the license law.
a. Stan may share the commission with Mary.
(As long as Mary doesn’t help out with the sale)

Which transaction is NOT included in the definition of a residential transaction?
a. unimproved property intended for four units or less.
b. agricultural properties of 10 acres or less.
c. leases with options to purchase all or a portion of improved property of four or less residential units.
d. dispositions of business interests involving property of five or more residential units.
d. dispositions of business interests involving property of five or more residential units.

Both parties in a transaction can pay a broker a commission when:
a. the broker has performed.
b. both parties are aware of the dual commission.
c. both parties are being represented by the broker.
d. both parties agree to the dual commission.
d. both parties agree to the dual commission.

A broker has appointed two sales associate to act as agents in a nonresidential transaction, one for the seller and one for the buyer. Which is correct?
a. This is an illegal dual agency.
b. The sales associates are referred to as designated sales associates.
c. Buyer and seller must have combined assets of $1 million.
d. The FREC will revoke the licenses of the broker and both sales associates.
b. The sales associates are referred to as designated sales associates.

Which relationship is NOT adversarial?
a. arm’s length
b. buyer beware
c. caveat emptor
d. fiduciary
d. fiduciary

Fairness and honesty are required of all licensees in which relationship?
a. single agency
b. transaction brokerage
c. no brokerage relationships
d. any real estate transaction
d. any real estate transaction

The signature or initials of a party is required by the Brokerage Relationship Disclosure Act on which form?
a. Single Agency Disclosure
b. Transaction Broker Disclosure
c. Consent to Transition to Transaction Broker
d. Important Information Disclosure
c. Consent to Transition to Transaction Broker

A broker
a. can refuse offers on behalf of the principal.
b. can buy the listed property without consent of the principal.
c. must follow all legal instructions of the principal or withdraw.
d. must ignore the instructions of a principal when the instructions are not in the best interests of the principal.
c. must follow all legal instructions of the principal or withdraw.

Sales associates can be stockholders in a brokerage corporation but may not be________ or _?
Officers or Directors
Sales associates can be stockholders in a brokerage corporation but may not be officers or directors.

A real estate brokerage corporation must have at least active broker serving as an _.
One, Officer
(A real estate brokerage corporation must have at least one active broker serving as an officer.)

Anyone licensed or not can be a _ in a real estate brokerage limited partnership.
limited partner

Two or more brokers that share office space but do not maintain their separate status as independent brokers could be charged as being _ .
ostensible partners

Sales associates and broker associates must report any change of employer or address change to the DBPR within _ days on a form prescribed for such use.
10

For a broker to legally be paid a kickback or rebate, he or she must have performed a _ held an appropriate , and all parties must be _ of the payment.
service, license, advised
For a broker to legally be paid a kickback or rebate, he or she must have performed a service held an appropriate license, and all parties must be advised of the payment.

When a broker has conflicting demands for funds held in escrow, he or she must report such conflict to the FREC within _ days.
15

Operating in a careless, reckless, excessively negligent manner may result in a broker being charged with .
Culpable Negligence

A licensee should advise a customer to obtain an _ or an _ _ from an attorney whenever a question of title arises.
abstract, attorney’s title opinion
(A licensee should advise a customer to obtain an abstract or an attorney’s title opinion from an attorney whenever a question of title arises.)

Six individuals decide to form a real estate brokerage partnership. All six individuals are planning to be active in real estate sales. Which best applies?
a. The partnership must be registered with the Commission, and all six partners must be active real estate brokers.
b. At least one partner must be licensed as an active broker.
c. Only two partners must have a real estate license.
d. A partnership cannot be formed as a brokerage business.
a. The partnership must be registered with the Commission, and all six partners must be active real estate brokers.

Which of the business forms listed below CANNOT register to conduct real estate
transactions?
a. corporation for profit
b. corporation not for profit
c. corporation sole
d. limited partnership
c. corporation sole

A sales associate is licensed under an owner-developer that owns several affiliated organizations. Should the employer wish to have the sales associate provide real estate services for these various organizations, what type of license should the sales associate request?
a. multiple
b. group
c. corporate
d. branch office
b. group

Sarah is an actively licensed broker for XYZ Realty, a registered real estate brokerage corporation. She has an opportunity to buy an existing real estate corporation, BBD Realty, Inc., in a town 25 miles away and wants to become the only broker for both corporations. She does not wish to change the name or combine the two corporations. How may Sarah accomplish this?
a. The corporations will have to be merged into one entity as Sarah cannot be a broker within two different corporations.
b. Sarah may be the only active broker in both corporations by requesting a group license.
c. Sarah may be the only active broker in both corporations by requesting multiple licenses.
d. BBD should be registered as a branch office of XYZ Realty, Inc.
c. Sarah may be the only active broker in both corporations by requesting multiple licenses.

An ostensible partnership:
a. is required to file documents with the Secretary of State.
b. is not a true partnership.
c. cannot be created by real estate brokers.
d. will not be treated as though the participants were partners.
b. is not a true partnership.

A location would be required to register as a brokerage branch office if
a. tables and chairs are provided for sales associates and customers.
b. the location is used as a shelter to get out of the sun or rain.
c. literature is handed out containing the broker’s office address.
d. sales associates are permanently assigned to the location.
d. sales associates are permanently assigned to the location.

Which statement best describes the sign required for a brokerage office?
a. Only one sign per firm is required regardless of the number of offices.
b. Each sales associate associated with the firm must have a separate sign.
c. Every active broker must maintain a sign at each brokerage office or branch office.
d. Office signs are permitted but not required by law.
c. Every active broker must maintain a sign at each brokerage office or branch office.

Which method is NOT an authorized alternative for a broker to use in resolving an escrow dispute?
a. seeking an escrow disbursement order from the Commission
b. submitting the escrow dispute to mediation or arbitration
c. seeking a court decision to resolve the escrow dispute
d. obtaining an attorney’s opinion

Approved depositories for earnest money include a:
a. bank within the state of Florida.
b. stock brokerage firm.
c. broker’s personal checking account.
d. safe in a real estate office.
a. bank within the state of Florida.
Also can be deposited in a savings association, title company, and a Credit Union.

A real estate sales associate that has received an earnest money deposit must:
a. deposit the funds in an insured bank account.
b. deliver the funds to his or her broker or owner-employer.
c. deposit the funds in an escrow account.
d. deposit the funds with the Florida Real Estate Commission.
b. deliver the funds to his or her broker or owner-employer.
Must be done by the next business day

If a commission dispute arises prior to closing, the broker:
a. may retain the entire amount of escrowed funds until the dispute is resolved.
b. must withdraw the amount of the commission from the escrow account.
c.may retain the exact amount of the disputed commission in the escrow account until the dispute is settled.
d. must deliver the entire amount of the escrowed funds at closing.
c. may retain the exact amount of the disputed commission in the escrow account until the dispute is settled.

What percentage of the fee paid may a prospective tenant receive as a refund when provided with inaccurate information?
a. 100%
b. 75%
c. 25%
d. none
a. 100%
(first degree misdemeanor $1000/1 year)

The maximum amount paid from the Real Estate Recovery Fund based on the actions of a licensee is __.
$150,000

The range of penalties that may be imposed on a licensee by the Commission for violation of law or rules includes:
a. denial, reprimand, fine, probation, suspension and revocation.
b. imprisonment only.
c. a fine and imprisonment only.
d. a fine, reprimand, denial, suspension, revocation and imprisonment.
a. denial, reprimand, fine, probation, suspension and revocation. (can’t imprison or deny commission)

An appeal of a Commission final order is filed with the:
a. Florida Supreme Court.
b. District Court of Appeals.
c. County Court.
d. Department of Administrative Hearings.
b. District Court of Appeals.

What Is the charge for anyone found guilty of using false or misleading adverting?
a. third-degree misdemeanor
b. second-degree misdemeanor
c. first-degree misdemeanor
d. third-degree felony
b. second-degree misdemeanor

An investigator for the Department may not express any concerning the investigation.
personal opinion

The criminal penalty for violation of F.S. 475 is typically a fine of up to
and/or imprisonment for no more than __.
$500, 60 days

The criminal penalty for a first-degree misdemeanor is a fine of up to _ and/or imprisonment for no more than .
$1000, one year

Citations issued by assigned by the Division of Real Estate, must be paid within ___ days after becoming a final order.
investigators, 30

The violation sited in a Notice of Noncompliance must be corrected within __ days.
15

What is the maximum amount of money that can be paid from the Real Estate Recovery Fund to three persons who suffered monetary loss as the result of a fraudulent act committed by a real estate licensee and have been awarded a single judgment?
a. $150,000
b. $50,000
c. $25,000
d. $10,000
b. $50,000

If a broker’s actions pose an immediate serious danger to the safety and welfare of
the public, what action might the Secretary of the Department of Business and
Professional Regulation take?
a. suspend the license of the licensee for 10 years
b. issue a summary suspension
c. issue a cease and desist order
d. place the licensee on probation
b. issue a summary suspension

What action may be taken if either the Florida Real Estate Commission or the
licensee disagrees with a recommended order?
a. seek adjudication
b. submit the matter to mediation
c. file exceptions
d. request novation
c. file exceptions (within 10 days)

Which activity would be classified as a first-degree misdemeanor under Chapter 475, Florida statutes?
a. placing false or misleading advertising
b. violation of rental information rules
c. having submitted false information in an application
d. an unlicensed person operating as a broker
b. violation of rental information rules
($1000 / 1 year)

The 1866 Civil Rights Act prohibits discrimination on the basis of __.
race

An owner that does not use the service of a broker and does not discriminant in advertising is _ from the Civil Rights Act of 1968.
exempt
An owner that does not use the service of a broker and does not discriminant in advertising is EXEMPT from the Civil Rights Act of 1968.

Lenders that refuse to make loans in certain geographic areas based on social or economic considerations are practicing _.
Redlining

According to the Americans with Disabilities Act, owners are required to make modifications to properties to comply with the Act whenever the modifications are .
Economically Feasible

A lease payment that increases based on a portion of the income received by a tenant is called a _ lease.
Percentage

When all rights under lease have been transferred for the entire lease period, the process is called a/an __.
assignment

Federal law governing telephone solicitations prohibits calls to residences after _.
9 pm

If a landlord requires a security deposit, the landlord must:
a. deposit the funds in compliance with Chapter 475, Florida statutes.
b. notify the tenant of the location of the funds within 20 days of receiving the funds.
c. pay interest at the rate of 5% per year, with disbursements at least once each year.
d. return the funds within 15 days after the tenant vacates the premise or give notice of the intention to impose a claim against the security deposit by certified mail.
d. return the funds within 15 days after the tenant vacates the premise or give notice of the intention to impose a claim against the security deposit by certified mail.

What term is used to describe a situation in which a real estate licensee tells a customer an advertised property is available for sale when it is?
a. steering
b. channeling
c. conspiring
d. blockbusting
a. steering

A broker that induces owners to list or sell on the basis the neighborhood is deterioration due to minority influences is guilty of:
a. steering
b. channeling
c. conspiring
d. blockbusting
d. blockbusting

A property owner is registered on both the state and federal “do not call” lists. Solicitation calls to this owner by a licensee:
a. may only be made between 9 AM and 8 PM.
b. may not be made when representing a buyer.
c. could result in a fine of up to $15,000.
d. are not permitted when attempting to obtain a listing.
d. are not permitted when attempting to obtain a listing.

Mary and Louise open a beauty shop in a regional mall. Their lease requires a portion of business income to be paid in addition to the periodic rent. What type of lease to they have?
a. flat
b. step-up
c. percentage
d. graduated
c. percentage

A five-year lease of a 10,000-square-foot warehouse prohibits assignment. After two years the tenant is unable to continue with the full rent payments and arranges with another tenant to take over one half of the space and pay one half of the rent for the remaining term. This arrangement is:
a. a violation of the terms of the lease.
b. a sublease
c. in violation statute 83
d. illegal
b. a sublease

Discrimination based on religion is prohibited by the:
a. civil rights act of 1866
b. Civil rights act of 1968
c. Civil rights at 1964
d. Fair Housing Amendments of 1988
b. Civil rights act of 1968

What may a real estate licensee do with respect to model residential lease forms approved for use by the Florida Supreme Court?
a. Fill in the blanks.
b. Prepare an addendum.
c. Modify language to conform to the agreement of the landlord and tenant.
d. Interpret the clause in the document in answer to a question.
a. Fill in the blanks

Three legal rights contained in the bundle of rights include , and .
possession, disposition, and quiet enjoyment

_ rights allow a property owner whose property borders on a river or stream the use of the water.
Riparian

A and may hold a tenancy by the entireties.
husband and wife

A joint tenancy and a tenancy by the entireties both include a right of _ .
survivorship

The estate that may be created by the same or different deeds is the tenancy _.
in common. (no right of survivorship)

If title passes upon the death of a life tenant to a party other than the original grantor, the party receiving the ownership rights is called a _.
remainderman

The right to occupy specific space granted by a Cooperative Association is known as a .
proprietary lease

Ownership of _______to distinguishes ownership in a cooperative association.
shares of stock

Property that is exempt from execution of foreclosure to satisfy a personal debt of the head of household can be up to 1/2 acre within the city or up to _ acres outside the city.
160

Able, who holds the title in fee simple, deeds land to Baker to enjoy until his death. At that time Charlie is to receive title to the land. Baker’s interest in the land is known as
a. a fee simple estate
b. life estate
c. remainder estate
d. estate for years
b. life estate

Based on the information in the previous question Charlie’s interest in the land is a
a. Reversion estate.
b. Remainder estate.
c. Estate for years.
d. Joint estate.
b. Remainder estate

The full bundle of rights and real property includes
a. Destruction, use and extinction.
b. Destruction, use and enjoyment.
c. Use, expatriation, and enjoyment.
d. Disposition, use, and exclusion.
e. Disposition, possession, and quiet enjoyment
e. Disposition, possession, and quiet enjoyment

Tests used by courts to determine whether an item is real or personal property include:
a. intent, relationship of the parties, method of annexation and adaptation.
b. Intent, abandonment, redemption and accretion.
c. Size, annexation, avulsion and adaptation.
d. Intent, size, annexation and redemption.
a. intent, relationship of the parties, method of annexation and adaptation.

The four unities required to create a joint tenancy are
a. Interest, survivorship, possession and time.
b. Possession, deed, title and time.
c. Possession, interest, time and title.
d. Person, use, and interest and purpose.
c. Possession, interest, time and title.

Paul and Paula are husband-and-wife. They own property as tenants by that entireties. They divorce without a property settlement. Unless otherwise decreed by court, they now hold title as
a. Joint tenants.
b. Tenants in common.
c. Tenants by the entireties.
d. Joint tenants with the right of survivorship.
b. Tenants in common.

What rights does a property owner have to the use of water flowing over or through his or her land?
a. Riparian
b. Littoral
c. Flowage
d. Aquifer
a. Riparian

A potential purchaser of the new timeshare can cancel the track at contract without penalty within how many days?
a. 10
b. 20
c. 30
d. 40
a. 10

Which statement best describes a tenancy at sufferance?
a. the tenant suffers from the landlords failure to maintain the property.
b. The landlord suffers from the tenants failure to pay rent.
c. The lease instrument is valid.
d.The tenant remained in possession after expiration of the lease.
d.The tenant remained in possession after expiration of the lease.

Legal rights being conveyed are expressed in the ________clause.
Habendum

The quitclaim contains _______warrants
No

Title to real property passes to the grantee when the deed is and .
Delivered, Accepted
(takes place at closing)

Title by adverse possession may be obtained after _ years
Seven

Recording a document in the public records provides _ notice.
Constructive

To be valid, a deed must be signed by the_______ and _______witnesses.
Grantor, two
(grantee doesnt have to sign)

Legal rights being conveyed are expressed in the _ clause.
Habendum

Actual notice is provided by .
Physical possession

The title policy is transferable; the is not.
Lenders (mortgagee), mortgagor

, , and _ are classified as superior liens.
Real estate taxes, special assessments, and federal estate taxes

Which clause and the deed states the interest being conveyed?
a. Habendum
b. Reddendum
c. Release
d. Seisin
Habendum

Which statement is correct concerning a quitclaim deed? A. The only warrant contained in the deed is a warrant of seisin
B. The grantor cannot transfer ownership under a quitclaim deed
C. A quitclaim deed transfers temporary title
D. it may be used to cure defects in title
D. it may be used to cure defects in title (best for the grantor)

Zoning is an example of which government limitation over private property rights?
A. Police power
B. Eminent domain
C. Escheat
D. Taxation
A. Police power

To obtain title by adverse possession requires
A. Possession of the property for one month.
B. Paying taxes on the property for two years.
C. Notorious, open, hostile, adverse and exclusive possession of the property for seven or more consecutive years.
D open and continuous use for 20 or more years.
C. Notorious, open, hostile, adverse and exclusive possession of the property for seven or more consecutive years.
(involuntary alienation)

What type of notice is considered to be the best proof of ownership?
A. Actual
B. Constructive
C. Implied
D. Expressed
B. Constructive
(Recording in public record)

The most accurate method of legally describing property is the _ __ method.
metes and bounds

The initial reference point in a metes and bounds legal description is the , then the _ _.
Monument, point of beginning

A township is _ miles square and contains _ square miles.
6, 36

There are _ square feet in an acre.
43,560

There are _ feet in a mile.
5280

There are _ acres in a section
640

Properties located in subdivided areas are usually described using the _ method
Lot and block

Damages specified in a contract are _ damages
Liquidated

A contract wholly in writing may be enforced for years specified by the .
Five years, statute of limitations

The parties to an option are the , who is the owner of the property, and the , who is the potential purchaser.
Optionor, optionee

When all terms and conditions are NOT fully expressed, a contract is referred to as being:
A. Implied
B. Bilateral
C. Parole
D. Executory
A. Implied

Which statute requires a purchase and sale contract to be in writing to be enforceable?
A. Chapter 475
B. Chapter 120
C. Statue of limitations
D. Statute of frauds
D. Statute of frauds

The time. For enforcement of the contract is established by the
A. Statute of frauds
B. Statute of limitations
C. Real estate license law
D. State courts
B. Statute of limitations

The estimate that contains the amount of the loan, interest-rate, payment provisions and other terms of the loan is the _ _.
Promissary Notes

The right of a borrower to cure a default prior to foreclosure is called the _ __.
Equity of redemption

The legal instrument which evidences the debt and states that interest rate, term, payment requirement and other information related to the loan is the
A. Promissory note
B. Contract
C. Lien
D. mortgage
A. Promissory Note

When financing the purchase of real estate, the mortgagor
A. Gives a mortgage to a mortgagee
B. Takes a mortgage from a mortgagee
C. Gives a mortgage to a borrower
D. Takes a mortgage from a lender
A. Gives a mortgage to a mortgagee

In order to qualified for a FHA 203b insured mortgage loan, an applicants housing expense ratio cannot exceed
A. 25%
B. 28%
C. 31%
D. 43%
C. 31%

The party that holds title to real property and a lien theory state is the
A. Trustee
B. Mortgagor
C. mortgagee
D. Beneficiary
B. Mortgagor

The right of a mortgagor in default to pay all money owned and prevent the sale of property at foreclosure is called the equity of
A. Redemption
B. Estoppel
C. Defeasance
D. Release
A. Equity of redemption

To discount points on a 7% loan increase the effective rate of interest on the loan to approximately
A. 7 1/8%
B. 7 1/4%
C. 7 1/2%
D. 7 3/4%
B. 7 1/4%

Funds remaining after all liens had been paid following a foreclosure sale belong to the
A. Sheriff of the county in which the property is located
B. Clerk of the Circuit Court
C. Mortgagor
D. Mortgagee
C. Mortgagor

The real estate settlement procedures act (RESPA) does NOT require
A. Disclosure of a good faith estimate of closing costs
B. Use of the HUD -1 settlement statement form at closing
C. Receipt by a borrower of a booklet entitled “settlement costs and you.”
D. Disclosure of the annual percentage rate (APR)
D. Disclosure of the annual percentage rate (APR)

The process of qualifying a borrower and a property in connection with the loan application is known as mortgage _.
Underwriting

Life insurance companies are the largest source of funds for _ loans.
Shopping center (nonresidential)

The least effective tool the Federal Reserve system has to affect the money supply is changes in the _ _.
Discount rate

The primary mortgage market is where loans are _.
Originated

A loan applicant’s past credit history indicates his or her _ to honor debt obligations, and his or her income is a measure of the _ to repay the loan.
Willingness, ability

The major source of funds for large shopping center real estate developments are
A. Savings and loan associations
B. Commercial banks
C. Life Insurance companies
D. Mutual savings banks
C. Life Insurance companies

It’s the Federal Reserve Board decides to purchase government securities in the open market, the effect will be to
A. Decrease the money supply and cause interest rates to increase
B. Increase the money supply and cause interest rates to decrease
C. Limited amount of money member banks may use for loan purposes, causing interest rates to increase
D. Create a “tight money” market
B. Increase the money supply and cause interest rates to decrease

Which group of financial institutions traditionally preferred to make short-term loans for construction?
a. mutual savings banks
b. savings and loan associations
c. life insurance companies using a mortgage banker
d. commercial banks
d. commercial banks

The secondary mortgage market is
a. the market where second mortgages are sold.
b. where loans originated in the primary market are sold.
c. where loans made only by private parties are sold.
d. the market where second mortgages are originated.
b. where loans originated in the primary market are sold.

Disintermediation occurs when
a. deposits exceed the demand for loans.
b. depositors withdraw their savings from depository institutions.
c. the Internal Revenue Service taxes earnings of investments.
d. the Federal Reserve Board reduces the discount rate.
b. depositors withdraw their savings from depository institutions.

A blanket mortgage that allows for the release of a single parcel upon payment of a specified sum contains which clause?
a. defeasance
b. acceleration
c. satisfaction
d. release
d. release

The Federal housing administration
Letter
a. Originates loans.
b. Insures loans.
c. Guarantees loans.
d. Certifies loans.
b. Insures loans

Is there a max loan amount the FHA can insure?
Yes

Is there a penalty for FHA prepayment?
No

Construction loans are paid out in
a. full at the beginning of construction.
b. equal installments during the construction process.
c. full upon completion of construction.
d. draws after specific stages of construction have been completed.
d. draws after specific stages of construction have been completed.

If a mortgage loan payment consists of interest only, the final payment which includes the full amount borrowed is called a
a. monthly payment.
b. balloon payment.
c. amortized payment.
d. term payment.
b. balloon payment.

Counselors provide professional advice to members of the public based on their _ judgment.
personal

Real estate licensees can perform an appraisal under the real estate license law, if the appraisal is not to be used in a , the transaction value is and the report is prepared in accordance with _.
Federally regulated transaction, $250,000 or less, USPAP

Building Moratoriums happen at which level of government?
Local Level

What year was FREC created?
1925

Why was FREC created?
to administer and enforce the law

The most common services of real estate are:
A = Appraising

B = Buying
A = Auctioning
R = Renting

S = Selling
A = Advertising Real Estate Services
L = Leasing
E = Exchanging
B = Business Brokering

What is chapter 475?
The real estate license law

The three types of employment for a sales associate are:
Broker, owner-employer or government agency

Exemptions from having a real estate license are:
Owners, salaried employees(not receiving commissions or bonuses), cemetery lot sales, renting mobile home lots, mortgage brokers

Three ways a license can be void
Expired, Revoked or Cancelled

Where is the data material kept for an appraisal?
In the plant

metes
refers to distance and direction in a legal description

bounds; monuments
refers to fixed reference points or _ in a legal description

metes and bounds
a method of legal description that identifies a property by specifying the shape and boundary dimensions of the parcel; stats at the point of beginning and follows the boundaries of the land by compass direction and linear measurements and returns to the point of beginning.

rectangular survey system
a type of land description, developed by the federal government for subdividing lands utilizing surveying lines.

meridian
north-south, longitudinal line on the survey grid used in a rectangular survey system (or gvmt. survey sys.) – six miles apart

principal meridian
the single designated meridian for identifying townships in the principal meridian’s geographical “jurisdiction; there are 36 of them in the gvmt survey syst.

parallels
east-west latitudinal lines used in a rectangular survey system (or gvmt. survey sys.) – six miles apart

base line (base parallel)
the designated line for identifying townships. There is one of these types of lines for each principal meridian

range lines
run north-south area between consecutive meridians

tier (or a township strip)
run east-west area between two parallel

township
the area enclosed by the intersection of two consecutive meridians and two consecutive parallels with an area of 36 square miles.

section
one of the primary units of measurement in the government survey system of land description; it is one mile square and contains 640 acres.

lot and block system
a type of legal description of land; under this system, tracts of land are subdivided into lots.

subdivision plat map (plat of survey)
a plan of a tract of land subdivided into lots and showing required or planned amenities. it is recorded in the county
where the subdivision is located.

datums
the level plain which is used by the bench mark to determine elevation and from which surveyors measuring begins;
standard elevation reference points that have been established throughtout the country.

benchmarks
a permanent brass plate, placed in the ground and it notates the feet above sea level at that location. local elevation markers that provide reference elevations for nearby properties. once these are registered they provide a valid reference point for surveying other elevations in the immediate area.

Thence
a word use to indicate a change in direction.

point of beginning (POB)
the starting (and ending) place in a land survey usingthe metes-and-bounds method of property description.

check
a square measuring 24 miles on each side and representing the largest unit of measure in the government survey system.

Tallahassee
Florida’s measurement begins in __

North; South
the Tallahassee Principal Meridian runs _ and __.

East; West
Tallahassee baseline runs _ and _.

36
A township is then divided into _ sections.

north; south; larger
Each township is numbered sequentially _ or _ with the numbers getting _ the further from Tallahassee.

right; left
Sections are numbered from front upper _ to _ and across a township in a back and forth movement.

1; 640; 43,560
Each section is _ mile square and contains acres. Each acre contains __ square feet.

section
the basis for a legal description.

Parcel Number
To aid in the assessment of property for tax collection, each piece (parcel) of land is given a _ _. The tax maps indicating these __ are based on the recorded plat maps as well as other land recorded in the county.

Area = length x width
Area of a rectangle is

Area = 1/2base x height
Area of a triangle is

area
is always expressed in square feet or square yards.

volume
is always expressed in cubic feet or cubic yards.

Volume = length x width x depth
Volume of a rectangle

Volume = 1/2 base x height x depth
Volume of a triangle

1 mile
5,280 feet

1 Square yard
9 Square feet

1 cubic yard
27 cubic feet

1 square mile
640 acres

1 acre
43,560 square feet

co-brokerage
a transaction involving a cooperating subagent. Commission is typically split on a 50-50 basis.

multiple listing service
an organization of brokers who have agreed to cooperate with member brokers in marketing listings.

obtaining, marketing, facilitating, managing
critical brokerage skills:

1. o_______ a client listing
2. m_______ a listing
3. f_________ the closing of a transaction
4. m________ market information

organizing & managing
a fundamental part of maintaining market expertise is o_______ & m_______ an information system.

advisory
Examples of a______ services:

1. providing an estimate of value
2. prfroming market analysis
3. managing property

sole proprietorship
business owned by a single individual.

corporation for profit
a legal entity owned by stockholders.

domestic; foreign
a corporation is if it is headquartered in the state where the articles of incorporation were filed. Otherwise, the corporation is a _ corporation.

non-profit corporation
a corporate entity which is not legally entitled to generate profit. This type of corporation may not broker real estate.

general partnership
a for-profit business consisting of two or more co-owners who have agreed to share business profits.

limited partnership
consists of general partners and limited partners.

joint venture
a partnership formed to complete a specific business endeavor, such as real estate development.

business trust
a group of investors who invest in a pooled trust fund managed by their elected trustee. this type of trust may not broker real estate, but it may buy and sell its own real estate assets.

cooperative association
a non-profit, tax-exempt alliance of individuals or compaines formed to promote common goods or services. this type of association may not broker real estate.

Independent brokerage
a brokerage that is not affiliated with a franchise.

franchised brokerage
an idependently-owned company that enters into a licensing arrangement with a franchisor to participate in various benefits offered in exchange for compensation.

commingling
the act of mixing the broker’s personal or business funds with escrow funds.

conversion
the act of misappropriating escrow funds for the broker’s business or personal use. considered an act of theft.

Sherman Antitrust Act
This act was enacted in 1890 and it prohibits resraint of interstate and foreign trady by consiracy, monopolistic pratice, and certai forms of business combinatins or mergers; it empowers the federal government to proceed against antitrus violators.

Clayton Antitrust Act
This act was enacted in 1914, and it reinforces and broadens the provisions of the Sherman Act. Among its prohibitions are certain exclusive contracts, predatory price cutting to eliminate competitors, and inter-related boards of directors and stock holdings between same-industry corporations

collusion
the illegal practice of two or more businesses joining forces or makng joint decisions which have the effect of putting another business at a competitive disadvantage.

price fixing
the pratice of two or more brokers agreeing to charge certain commission rates or fees for their services, regardless of market conditions or competitors.

market allocation
the practice of colluding to restrict competitive activity in portions of a market in exchange for a reciprocal restriction from a competitor. example “we won’t compete against you here if you won’t compete against us there.”

metes
refers to distance and direction in a legal description

bounds; monuments
refers to fixed reference points or _ in a legal description

metes and bounds
a method of legal description that identifies a property by specifying the shape and boundary dimensions of the parcel; stats at the point of beginning and follows the boundaries of the land by compass direction and linear measurements and returns to the point of beginning.

rectangular survey system
a type of land description, developed by the federal government for subdividing lands utilizing surveying lines.

meridian
north-south, longitudinal line on the survey grid used in a rectangular survey system (or gvmt. survey sys.) – six miles apart

principal meridian
the single designated meridian for identifying townships in the principal meridian’s geographical “jurisdiction; there are 36 of them in the gvmt survey syst.

parallels
east-west latitudinal lines used in a rectangular survey system (or gvmt. survey sys.) – six miles apart

base line (base parallel)
the designated line for identifying townships. There is one of these types of lines for each principal meridian

range lines
run north-south area between consecutive meridians

tier (or a township strip)
run east-west area between two parallel

township
the area enclosed by the intersection of two consecutive meridians and two consecutive parallels with an area of 36 square miles.

section
one of the primary units of measurement in the government survey system of land description; it is one mile square and contains 640 acres.

lot and block system
a type of legal description of land; under this system, tracts of land are subdivided into lots.

subdivision plat map (plat of survey)
a plan of a tract of land subdivided into lots and showing required or planned amenities. it is recorded in the county
where the subdivision is located.

datums
the level plain which is used by the bench mark to determine elevation and from which surveyors measuring begins;
standard elevation reference points that have been established throughtout the country.

benchmarks
a permanent brass plate, placed in the ground and it notates the feet above sea level at that location. local elevation markers that provide reference elevations for nearby properties. once these are registered they provide a valid reference point for surveying other elevations in the immediate area.

Thence
a word use to indicate a change in direction.

point of beginning (POB)
the starting (and ending) place in a land survey usingthe metes-and-bounds method of property description.

check
a square measuring 24 miles on each side and representing the largest unit of measure in the government survey system.

Tallahassee
Florida’s measurement begins in __

North; South
the Tallahassee Principal Meridian runs _ and __.

East; West
Tallahassee baseline runs _ and _.

36
A township is then divided into _ sections.

north; south; larger
Each township is numbered sequentially _ or _ with the numbers getting _ the further from Tallahassee.

right; left
Sections are numbered from front upper _ to _ and across a township in a back and forth movement.

1; 640; 43,560
Each section is _ mile square and contains acres. Each acre contains __ square feet.

section
the basis for a legal description.

Parcel Number
To aid in the assessment of property for tax collection, each piece (parcel) of land is given a _ _. The tax maps indicating these __ are based on the recorded plat maps as well as other land recorded in the county.

Area = length x width
Area of a rectangle is

Area = 1/2base x height
Area of a triangle is

area
is always expressed in square feet or square yards.

volume
is always expressed in cubic feet or cubic yards.

Volume = length x width x depth
Volume of a rectangle

Volume = 1/2 base x height x depth
Volume of a triangle

1 mile
5,280 feet

1 Square yard
9 Square feet

1 cubic yard
27 cubic feet

1 square mile
640 acres

1 acre
43,560 square feet

contract
an agreement between two or more parties who, in a “meeting of the minds,” have pledged to perform or refrain from performing some act.

valid contract
one that is legally enforceable by virtue of meeting certain requirements of contract law. If a contract does not meet the requirements, it is not valid and the parties to it cannot resort to a court of law to enforce its provisions.

legal status
a court may construe the _ _ of a contract in one of four ways:
valid
valid but unenforceable
void
voidable

valid contract
A _ _ that is in writing is enforceable within a statutory time period. A that is made orally is also generally enforceable within a statutory period.

Valid but unenforceable
An oral long-term lease and an oral real estate sales
contract are examples of contracts that may be _ _.

Void
an agreement that does not meet the tests for validity, and
therefore is no contract at all. If a contract is , neither party can enforce it. Example: a contract that does not include consideration is & a contract to extort money from a business is _.

null & void
Void contracts and instruments are also described as “_ & __.”

Voidable
a contract that initially appears to be valid, but is subject to rescission by a party to the contract who is deemed to have acted under some kind of disability. Only the party who claims the disability may rescind the legal effect of the contract. Ex: a party who was the victim of duress, coercion, or fraud in creation of a contract, and can prove it, may disaffirm the contract. (within a time frame.)

disaffirmation
A voidable contract differs from a void contract in that the lvoid contract does not require an act of _ to make it unenforceable.

disaffirmation
get out of

legal age, mental competency, legitimate authority
Capacity to contract is determined by three factors:
l____ a___
m______ c________
l_______ a________

Mutual consent. (aka meeting of the minds or offer & acceptance)
requires that a contract involve a clear and definite offer and an
intentional, unqualified acceptance of the offerr; the parties must agree to the terms without equivocation. A court may nullify a contract where the acceptance of terms by either party was partial, accidental, or vague.

Valuable consideration
A contract must contain a two-way exchange of _ as compensation for performance by the other party. The exchange of considerations must be two-way. The contract is not valid or enforceable if just one party provides ; can be money or something a party promises to do or not do.

Good consideration
“love and affection,”; can serve as a nominal consideration in transferring a real property interest as a gift.

void
The content, promise, or intent of a contract must be lawful. A
contract that proposes an illegal act is _.

good faith; voluntary; voidable
The parties must create the contract in _ as a free and act. A contract is thus if one party acted under duress, coercion, fraud, or misrepresentation.

rescind
If a property seller induces a buyer to purchase a house based on assurances that the roof is new, the buyer may _ the agreement if the roof turns out to be twenty years old and leaky

writing; legal; signed
a contract that conveys an interest in real estate must:
1 be in
2 contain a description of the property
3 be _ by one or more of the parties

Statute of limitations
restricts the time period for which an injured party in a contract has the right to rescind or disaffirm the contract. A party to a voidable contract must act within the statutory period.

Statute of frauds
States that all contracts to buy, sell, exchange, or lease interests in real property must be in writing to be enforceable. With exception of leases that are less than one year.

statute of frauds
The _ concerns the enforceability of a contract, not its validity. Once the parties to a valid oral contract have executed and performed it, even if the contract was unenforceable, a party cannot use the _ to rescind the contract. Example, a broker and a seller have an oral agreement. Following the terms of the agreement, the broker finds a buyer, and the seller pays the commission. They
have now executed the contract, and the seller can not later force the broker to return the commission based on the_____ _ _.

acceptance
The exact point at which the offer becomes a contract is when the offeree gives the offeror notice of the __.

essence; reasonable
If an offer contains an expiration date and the phrase “time is of the ,” the offer expires at exactly the time specified. In the absence of a stated time period, the offeree has “_” time to accept an offer.

it is placed in the mail
If the communication of acceptance is by mail, the offer is considered to be communicated as soon as _ _ __.

communicated acceptance; revocation
An offer may be revoked, or withdrawn, at any time before the offeree has . The _ extinguishes the offer and the offeree’s right to accept it.

acceptance, rejection, revocation, lapse of time, counteroffer, death or insanity
Situaions that terminate an offer:
a_________
r_________
r_________
l_____ of t_____
c_________
d_____ or i______

acceptance
the offeree accepts the offer, converting it to a contract.

rejection
the offeree rejects the offer

revocation
the offeror withdraws the offer before acceptance

lapse of time
the offer expires

counteroffer
the offeree changes the offer

assignable
Listing agreements are not _, since they are personal service agreements between agent and principal. Sales contracts, however, are , because they involve the purchase of real property rather than a personal service.

parol
oral

express contract
contract in which all the terms and covenants of the agreement
have been manifestly stated and agreed to by all parties, whether verbally or in writing.

implied contract
an unstated or unintentional agreement that may be deemed
to exist when the actions of any of the parties suggest the existence of an agreement.

bilateral contract
contract in which both parties promise to perform their respective parts of an agreement in exchange for performance by the other party. Example: an exclusive listing: the broker promises to exercise due diligence in the efforts to sell a property, and the seller promises to compensate the broker when and if the property sells.

unilateral contract
a contract in which only one party promises to do something, provided the other party does something. The latter party is not obligated to perform any act, but the promising party must fulfill the promise if the other party chooses to perform. Ex. contract with option period

executed contract
contract that has been fully performed and fulfilled: neither party bears any further obligation. A completed and expired lease contract is an executed contract: the landlord may re-possess the premises and the tenant has no further obligation to pay rent.

executory contract
a contract in which performance is yet to be completed. A sales contract prior to closing is executory: while the parties have agreed to buy and sell, the buyer has yet to pay the seller and the seller has yet to deed the property to the buyer.

novation
the substitution of a new contract for an existing one; the new contract must reference the first and indicate that the first is being replaced and no longer has any force and effect.

rescission
the act of nullifying a contract.

revocation
cancellation of the contract by one party without the consent of the other. For example, a seller may revoke a listing to take the property off the market.

Abandonment
occurs when parties fail to perform contract obligations. This situation may allow the parties to cancel the contract.

breach of contract (aka default)
failure to perform according to the terms of the agreement; gives the damaged party the right to take legal action

rescission, forfeiture, suit for damages, suit for specific performance
legal remedies for breach of contract:
r________
f________
s____ for d_______
s_____ for s______ p________

rescission
This cancels the contract and returns the parties to their pre-contract condition, including the refunding of any monies already transferred.

forfeiture
this requires the breaching party to give up something, according to the terms of the contract. For example, a buyer who defaults on a sales contract may have to forfeit the earnest money deposit.

liquidated damages
the total amount stated in a contract that is due to a damaged party in the even of a breach of contract.

unliquidated damages.
the unspecified amount of money a damaged part may sue for in the event of a breach of contract.

suit for specific performance
an attempt to force the defaulting party to comply with the terms of the contract; occurs when it is difficult to identify damages because of the unique circumstances of the real property in question.

A Mortgage broker must have a
Seperate License

A Real estate appraiser’s fee for professional service is based on?
Time and difficulty

The real estate brokerage business can be best described as a __
Service business

The princicple in an agency relationship is the __?
Customer

The responsibility of a property manager does NOT include:
A. Renting Property
B. Collecting rent
C. Overseeing maintenance
D. preparing Leases
D. Preparing leases.

Concentrating on one neighborhood or style of property is _.
Farming

Which insurance policies can a real estate licensee offer to the public with out additional state licensing?
A. Flood
B. Fire
C. Renters Insurance
D. None
D. None

What is the purpose of the “National Association of REALTORS”?
To preserve the right of individuals to own real property through an exchange of information.

What does the word “REALTOR” signify?
Indentifies a real estate professional as a member of “NAR”

A Developer contracts to build a home on a buyers lot to the buyers needs and taste. What type of contruction is this?
Custom Building

In their relationships with customers, brokers,
A. Work for them
B. Work with them
C. Represent them
D. Are always their agent
B. Work with them.

Licensees involved in business brokerage must have a seperate license, TRUE or FALSE?
FALSE.

Real Estate brokers are NOT required to be Knowledgeable regarding _.
A. Marketing
B. Valuation
C. Property transfer
D. Accounting
D. Accounting

The Service provided by real estate brokers that is considered to require the most experience and knowledge is?
Counseling

Can appraisers registed, licensed or certified under F.S 475 part 2 be used on ALL appraisals?
No. The appraisal of residential property

A Contractor who builds on his or her own lot in the hope of finding a purchaser upon completion is building on __.
Speculative

A broker who is working for an employer is said to be the _.
A. Agent
B. Broker Associate
C. Principle
D. Customer
A. Agent

When working with a member of the public, the party the broker hopes to be successful with is refered to as the _?
A. Client
B. Employer
C. Customer or Principle
D. Employer or Customer
C. Customer or Principle

Most Real Estate Licensees are involved in Commercial Real Estate. TRUE or FALSE
FALSE.

What does CMA stand for? and what does it mean?
Comparative Market Analysis.
An estimate of the value of property by a real estate licensee based on the sale of similar propertys in the area.

Who are Mortgage Brokers Licensed by?
Department of Financial Services

What is an Appraisal?
Estimate of Value.

Valuing a business requires an analysis of and _.
Ballance Sheets, and Financial Statements.

The THREE areas of expertise real estate licensees bring to the transaction are , and _.
Valuation, Marketing, and Property Transfer.

The composite value of real and personal property, plus the intangible assets of a business, is called _ value.
Going Concern.

What part of F.S 475 covers regulation and licensing of real estate practitioners?
Part One

What part covers the registration, licensing and certification of appraisers in Florida?
Part Two

A Sales Associates license will be _ if he or she does not complete required post license education during his or her initial license period.
Void.

A Broker that did not complete required postlicense education prior to expiration of his or her initial license period may request a license by completing a continuing education course within _ _.
Sales Associate, 6 Months

A Broker Associates Responsibilities are Similar to a __.
Sale Associates.

Residency in Florida may be claimed by anyone that is or has resided in the state for not less then _ with in the previous 12 months.
4 Months

The first real estate license law in Florida was enacted in __.
1923

The First real estate license law in FLORIDA was enacted in 1918. TRUE or FALSE.
False, 1923.

Upon passage of the state examination, an applicant for a sales associates license will receive an _ license when employed by a broker.
Active

Upon passage of the state examination, an applicant for a sales associates license will receive an _ license when employed by a Owner Employer.
Active

Upon passage of the state examination, an applicant for a sales associates license will receive an _ license.
Inactive.

What is Mutual Recognition?
Other States that have similar educational requirements as Florida.

How long is the Post License Educational Requirements for Sales Associates?
45 Hours

How long is the Continuing Educational Requirements for Sales Associates?
14 Hours

The Notice of Satisfactory Completion of a pre license course is valid for _ years.
2

Owner employers are __ but do not receive a .
Registered, License.

A Tenant in an apartment complex may receive up to _ for referral of a new tenant for the same complex.
50.00

_ Education must be completed during the initial sales associates license period.
Post License

Legal Authority to sign a document on behalf of another requires a .
Power of Attourney

The Florida Real Estate commission was first created in what year?
A. 1932
B. 1925
C. 1923
D. 1919
B. 1925

The real estate license law serves what purpose?
A. To protect the public
B. To protect the licensees
C. To clarify the law
D. To grant licenses
A. To protect the public

What does F.R.E.C stand for?
Florida Real State Commission

Where is F.R.E.C Located?
Orlando

F.R.E.C is located in Tallahassee. TRUE or FALSE
False.

What Does the Florida Real Estate Commission do?
Administer and Enforce the Law

Frank, a sales associate failed to complete the required postlicense education prior to renewal. What is the Status of Franks License?
A. Revoked?
B. Suspended for 6 months
C. Involuntarily Inactive for 2 Years
D. Void
D. Void

Registration of an Active Sales Associate with the Department refers to:
A. Placing and Keeping on record the sales associates name and home address.
B. Placing the keeping on record the sales associates name, home address and business address of his or her employing broker.
C. The Brokers name and Business address.
D. Placing and keeping on record the sales associates name, and business address of his or her employer.
B. Placing and keeping on record the sales associates name, home address and business address of his or her employing broker.

Owner-Employers of licensed real estate sales associates are allowed to pay them:
A. on a salary basis only
B. on a commission basis only.
C. on a commission, but not a bonus
D. a commission or salary.
D. A commission or salary

To Qualify for a real estate brokers license, an applicant must have been employed for a minimum of __ years under one or more actively licensed brokers.
2 Years.

How many hours of post license education are required to renew a brokers license?
60 Hours

Which service does NOT require a real estate license?
Mortgaging

What Service does NOT require a real estate license?
A. Leaseing
B. Mortgaging
C. Buying
D. Selling
B. Mortgaging

Information that appears on a Florida real estate license does not include:
A.The Seal of the State of Florida
B. An expiration date
C. The Signature of the Governor
D. The Name of the Secretary of Business and Professional Regulation.
C. The Signature of the Governor.

How long can a voluntary inactive licensee remain in that license status?
Indefinitely

To qualify for a Florida real estate license, an aplicant must be a citizen of the United States. TRUE or FALSE
FALSE

To qualify for a Florida real estate license, an aplicant must be at least 21 years of age. TRUE or FALSE
FALSE

To qualify for a Florida real estate license, an aplicant must have what?
High school education or equivalent.

What is “Attorney in fact”?
An attorney in fact is authorized by a power of attorney to act for another.

What choice describes an exemption from the licensing requirements of F.S 475?
A. Partners in real estate partnerships that receive compensation in excess of their interest in the partnership for performance of real estate services on behalf of the partnerships.
B. condminium managers paid on a commission basis for rentals for less then 1 year
C. appraisers certified under F.S 475, Part II when performing brokerage services.
D. attorneys performing legal duties in connection with a real estate transaction.
D. attorneys performing legal duties in connection with a real estate transaction

An actively licensed attorney that is a member in good standing with the Florida bar:
A. may charge commissions in connection with real estate activites.
B. is exempt from continuing education requirements to maintain a real estate license.
C. is not allowed to simultaneously hold a real este license.
D. May be licensed as a broker but not as a sales associate.
B.is exempt from continuing education requirements to maintain a real estate license.

A Broker associate is a Sales associate, TRUE or FALSE
False, A broker associate is a Broker employed as a sales associate.

The Agreement the State of Florida has with some other states that recognizes the similarity in education and experience required of licensees is called _ ____.
Mutual recognition.

A plumber has been appointed by a court to appraise a small business, the plumber may do so and be paid a fee. True or False.
True.

Exemptions from the real este license law do NOT include:
A. Employees of a corporation being paid on a salary basis.
B. Partners in a partnership that receive their pro rate share of the profits.
C. Managers of condominiums renting units with the complex for periods up to 1 year.
D. Funeral directors.
D. Funeral Directors.

A Georgia Auctioneer was asked by a local real estate broker to auction a small motel in Miami. The auction did not result in a sale. The Florida broker paid the auctioneer anyway for out-of-pocket expenses, but did not pay a commission. It would be correct to say:
A. The Georgia auctioneer violated the License Law.
B. Florida Broker did not Violate the License Law.
C. Florida Broker is not subject to discipline by the F.R.E.C
D. Transaction is perfectly within the license law.
A. The Georgia auctioneer violated the License Law.

Define Quorum.
Majority.

A quorum to conduct certain duties of the commission requires _ Members.
4

The Commissions ability to impose disciplinary actions against licensees is known as _ power.
Quasi Judicial.

The rule making authority of the F.R.E.C is which power?
Quasi Legislative

The F.R.E.C is composed of how many member?
7

The F.R.E.C is composed of 8 Members. TRUE or FALSE
False

To become effective, Rules enacted by the F.R.E.C must be filed with the .
Secretary of State

Members of the F.R.E.C may serve no more then __ consecutive terms.
2

Establising education requirements for licensees is an example of the exercise of the __ Powers of the commission.
Executive

The Real Estate Education and Research Foundation was established by a transfer of __ from the real estate trust fun.
3 Million

To become a broker member of the F.R.E.C, a Broker must have been actively licensed in Florida for a minimum of _ _.
5 Years.

The offices of the Division of Real estate are located in _.
Orlando

The principle office of the D.B.P.R is located in __.
Tallahassee

The Director of the Division of Real Estate is Appointed by the _ of the subject to approval by a majority of the member of the __.
Commissioner, F.R.E.C, and D.B.P.R

A License that fails to renew when required to do so will have his or her license placed on _.
Involuntary inactive.

When a Licensee changed employers, he or she should request a _ with a new employer before performing services of real estate for compensation.
Renewal

Licensees that are member of the armed forces have all fees, dues and other requirements waived during their military service and for _ months after returning to civilian life.
6

The D.P.B.R does NOT have the authority to issue a:
A. Cease and desist Order.
B. Subpoena
C. Injunction
D. Notice of Noncompliance.
C. Injunction

What is a “Subpoena”?
a written legal order summoning a witness or requiring evidence to be submitted to a court.

What is a “Injunction”?
a court order that requires somebody involved in a legal action to do something or refrain from doing something

What is a “Cease and Desist order”?
an order or request to to stop an activity and to not take it up again in the future.

The maximum number of years a member may serve on the Florida Real Estate Commision?
D. Unlimited

The Secretary of D.B.P.R is:
A. is a member of the F.R.E.C
B. is appointed by the governor
C. must be an attorney
D. answers to the state legislature in the performace of duties.
B. is appointed by the governor.

The Division of Real Estate is an administrative part of the department of:
A. State
B. Commerce
C. Banking
D. Business and profession Regulation.
D. Business and Professional Regulation

Examination Questions and Answers are Confidential. True or False
True

Which Department issues Real Estate Licenses.?
D.B.P.R
(Department of Business and Professional Regulation)

Which Information supplied by an applicant is public record?
A. Financial Info
B. Test Scores
C. Name and Address
D. Medical Info
C. Name and Address

The F.R.E.C held a meeting for the purpose of passing a new rule. This is an exercise of which commission power?
A. Executive
B. Quasi- Legislative
C. Quasi- Judicial
D. Ministerial
B. Quasi- Legislative

The Director of the Division of Real Estate
A. is appointed by the secretary of Department of Business and Professional Regulation.
B. Is a member of the F.R.E.C
C. is not subject to confirmation or approval by the F.R.E.C
D. Answers only to the governor in the performance of his or her duties.
A. Is apppinted by the secretary of D.B.P.R

F.S 455 was created by who?
D.B.P.R
(Department of Business and Professional Regulation)

An applicant for a real estate license that provides false information has committed criminal violation of law classifed as a _ __.
Third Degree felony

What action may the Department take if it determines that an unlicensed person has operated in violation of a law or rule under its administration?
A. None, since the Department has no juisdiction over unlicensed induviduals.
B. It may issue an injunction prohibiting such activity in the future.
C. It may imprison the violator for up to 5 years.
D. An administrative fine up to 5,000 may be imposed.
D. An adminstrative fine up to 5,000 may be imposed.

Educational requirements of applicants for a real estate license are promulgated under what authority of the F.R.E.C?
A. Ministerial
B. Executive
C. Quasi-Legislative
D. Quasi-Judicial
B. Executive

When is a request for the renewal of a license effective?
When received by the Department.

When is a request for the renewal of a license effective?
A. When received by the Department
B. The day following expiration
C. On the date the application is mailed.
D. On the date indicated on the license.
A. When received by the Department.

When does a real estate license expire?
On the date shown on the license.

Approval of new commission rules are required by who?
No one.

Frank, a sales associate failed to complete required postlicense education prior to expiration of the license period. What is the the status of Franks license?
A. Active
B. Voluntary Inactive
C. Involuntary Inactive
D. Null and Void
D. Null and Void

Certificates entered into court evidence are
A. of no value
B. disqualified
C. prima facie evidence
D. proof of a fact
C. Prima Facie Evidence

Violation of rules of the commission are prosecuted by which agency?
A. F.R.E.C
B. D.B.P.R
C. Florida State Attorney General
D. Sheriff of the county in which the violation occurred.
B. Department of Business and Professional Regulation

A sales associate is emplyed by a broker Monday through Friday and for a builder on weekend. The sales associate feels the added experience is beneficial especially since both employers pay an attractive commission split. Which statement is correct?
A. The sales associate must obtain a group license
B. Multiple licenses are required in this situation
C. This arrangement violates the license law.
D. This is permissible if both employers aree to the arrangement.
C. This arrangement violates the license law.

An agent that is empowered to perform a single act on behalf of his or her principal has a __ agency.
Special

An agent whose continuing authority is limited to a single trade or business has a __ agency.
General

A sales associate is a __ of a brokers Principle.
Sub Agent

A Licensee can create an agency relationship or _.
Accidently or Inadvertently

Before showing a property, allowing a buyer to sign an offer to buy, or a seller to sign a listing agreement, a licensee must provide the party with a written brokerage relationship form when acting in the capcity of a _ relationship.
Single Agency or No Brokerage

A member of the public may select from one of the three options when working with a broker which are?

1. Single Agency
2. Transaction Broker
3. No Brokerage Relationship

In a nonresidential transaction, a broker may assign one or more sales associates to represent a buy and one or more sales associates to represent a seller in the same transaction as single agents if both parties have assets of _ or more.
1 Million

The consent to Transitionto Transaction Broker notice is require to be or for transition to occur.
Signed or Initialed

If the principle refuses to sign or initial the consent to transition to transaction broker notice form, the broker is required to act as a __ _.
Single Agent

Brokers are required to retain copies of all disclosure documents for transactions that have resulted in a contract being entered into for a period of at least __ years.
5 Years

The only brokerage relationship that includes fiduciary duties is the __.
Single agent

A licensee assigned by a broker to act as a single agent of a buyer or seller in a nonresidential transaction is title a _.
Designated Sales associate.

Brokers in a non residential sale are no required to use _ _.
Disclosure Forms.

Licensees using words or actions that mislead a member of the publiccan result in the creation of an _.
Implied Agency

Agency relationships are legally based on and __.
Trust and Confidence

Who owes fiduciary duties in an agency relationship?
A. The broker only
B. The Principal Only
C. Both Parties
D. Neither Parties
A. The broker only

Which activity is NOT exempt from the requirement to provide disclosures under Brokeragerage Relationship Disclosure Act?
A. Sales Staff at a new development center
B. Showing Property to a party that is not being represented
C. A bona fide “open house” or model home showing that does not involve elicting confidential information, the execution of a contracual offer or an agreement for representation, or negotiations concerning price terms, or conditions of a potential sale.
D. Responding to general factual questions froma potential buyer or seller concerning properties that have been advertised for sale.
B. Showing Property to a party that is not being represented

As an agent a broker is employed by and acts on behalf of a
A. Buyer
B. Seller
C. Customer
D. Principal
D. Principal

A general agency relationship exists when a
A. broker is employed to market a property
B. sales associate is working with a customer
C. sales associate is employed by a broker
D. broker is employed by a buyer
C. Sales associate is employed by a broker.

Broker Frank just received an oral offer to purchase listed property. No earnest money accompanied the oral offer. Frank ..
A. Must present the offer
B. Should not present the offer since no earnest money deposit was received.
C. Must advise the customer an earnest money deposit is required to make an offer valid
D. should reject the offer on behalf of the seller.
A. Must present the offer.

Define: “Transaction Broker”
A transaction broker is a broker that provides limited representation to both parties.

Which fiduciary duty would a broker breach by failure to advise a principal regarding the value of the owners property prior to accepting a listing?
A. Loyalty
B. Disclosure
C. Accounting
D. Obedience
B. Disclosure

Broker Frank sold a property listed with a Broker Alice. Frank was unable to attend the closing and Broker Alice collected the entire commission. Should Broker Alice refuse to pay Broker Frank his share of the commission, broker Alice could be charged with.
A. Failure to account
B. Collecting an overage
C. Commingling
D. Fraud
A. Failure to account

Frank, an New Jersey broker accompanied a customer to Florida and met with broker Stan in his office in Miami. While Stan showed the customer property and obtained a binding contract for the purchase of a condominium, Frank took some time off and went to the gym. On returning to Stans office, Frank discovered stan had written a contract and demanded a share of the commision.

Can Stan share the commission with Frank with out violating the Real Estate License Law?
Yes, Stan may share the commision with Frank.

In an agency relationship an agent must
A. obtain the highest price possible
B. attempt to obtain the most favorable price and terms on behalf of the principal.
C. obtain the lowest price possible
D. negotiate the transaction to receive the highest possible commission.
B. attempt to obtain the most favorable price and terms on behalf of the principal

When can an agent disclose confidential or harmful information about a principal?
Never.

Which transaction is NOT included in the definition of a residential transaction?
A. Unimproved property intended for four united or less
B. agricultural properties of 10 acres or less
C. leases with options to purchase all portion of improved property of four or less residential units
D. dispositions of business interests involving property of five or more residential units.
D. dispositions of business interests involving property of five or more residential units.

Both parties in a transaction can pay a broker a commission when
A. the broker has performed
B. both parties are aware of the dual commission
C. both parties are being represented by the broker
D. both parties agree to the dual commission
D. both parties agree to the dual commission

Agency relationships in real estate are NOT controlled by
A. Chapter 475 F.S
B. Common Law
C. The Brokerage Relationshops Discolure Act.
D. The department of Financial Services.
D.The department of Financial Services.

Policy and Procedures manuals are required by law in all Real Estate Offices. True or False
False, but useful in maintaining good relations.

A broker has appointed two sales associate to act as agents ni a nonresidential transaction, or for the seller and one for the buyer. Which is correct?
A. This is an illegal dual agency
B. The sales associates are referred to as designated sales associates.
C. Buyer and Seller must have combined assets of $1million.
D. The F.R.E.C will revoke the license of the broker and both sales associates.
B. The sales associates are referred to as designated sales associates

Which relationship is NOT adversarial?
A. arms length
B. buyer beware
C. caveat emptor
D. fiduciary
D. fiduciary

Fairness and honesty are required of all licensees in wich relationship?
Any real estate transaction

The signature or initials of a party is required by the Brokerage Relationshop Disclosure Act on which form?
Consent to Transition to Transaction Broker

A Broker
A. Can refuse offers on behalf of the principal
B. Can buy the listed property with out consent of the principal
C. must follow all legal instruction of the principal or withdraw.
D. must ignore the instruction of a principal when the instruction are not in the best interest of the principal.
C. must follow all legal instruction of the principal or withdraw.

A trade name must be registed with the ___ at the department of state.
Division of corporation

Sales associates can be stockholder in a brokerage corporation but may not be or .
Officers or directors.

A real estate brokerage corporation must have atleast _ active broker serving as an _.
1, Officer

Anyone licensed or not can be a _ in a real estate brokerage limited partnership.
Limited Partner

Two or more brokers that share office space but not not maintain their sperate status as independent brokers could be charged as being a _ __.
Ostensible Partnership

The party who holds title to corpation sole property is colled the ___.
Sole Titleholder

Sales associates and brokers associates must report any change of employer or address change to the DBPR with in _ day on a form prescibed for such use.
10

For a broker to legally be paid a kick back or rebate, he or she must have performed a , held an appropriate , and all parties must be __ of the payement.
Service, License, Advised

When a broker has conflicting demand for fund held in escrow, he or she must repost such conflict to the FREC within __ days.
15

A Broker who feels he or she is entitled to some or all of the escrowed funds that are the subject of a dispute may submit the dispute to the court by fiuling an action for __.
Declaration Decree.

A broker who intermingles or commingles business or personal fun with escrowed funds has committed a form of fraud called _.
commingling

Licensees that fail to reveal something material to a buyers decision may be charged with __.
concealment

Brokerage firms that operate under a dictitious name are required to register the name with the _ _ _.
Department of business and profession regulation.

Fraud can occur or __.
Accidently or Inadvertantly

If rental information is sold to a prospective tenant, and the informaiton is found to be materially incorrect, the applicant may request a refund of , provided the request is made with _ days of the date of the contract.
100%, 30 days

Operating in a careless, reckless, excessively negligent manner may result in a broker being charged with _.
Culpable negligence

A Licensee should advise a customer to obtain an _, or an _ from an attorney when ever a question of title arises.
Abstract, Attorneys Tititle Opinion

A sales associate licensd with a real estate brokerage corporation can be
A. an officer
B. A stockholder
C. a Director.
D. An office and a director
B. A stockholder

Six individuals decide to form a real estate brokerage partnership. all six individuals are planning to be active in real estate sales. Which best applies?
A. The partnership must be registerd with the commission, and all six partners must be active real estate brokers.
B. At least one partner must be licensed as an active broker.
C. Only two partners must have a real estate license.
D. A partnership cannot be formed as a brokerage business.
A. The partnership must be registerd with the commission, and all six partners must be active real estate brokers.

A broker associate licensed with a realm estate broker partnership
A. can be a member of the partnership
B. can make earnest money deposits
C. cannot manage the office
D. cannot supervise licensed sales associates.
B. Can make earnest money deposits.

Which of the business forms listed below CANNOT register to conduct real estate transactions?
A. corporation for profit
B. corporation not for profit
C. corporation sole
D. limited partnership
C. corporation sole

A sales associate is licensed under an owner-developer thagt owns several affiliated organizations. should the employer wish to have the sales associate provide real estate services for these various organizations, which type of license should the sales associate request?
A. Multiple
B. Group
C. Corporate
D. Branch Office
B. Group

conservation of capital
The idea that the original investment should grow without losing it.

liquid
if other people want to buy and sell it for themselves– your investment is _.

negative leverage
lower rate of return

money, equity, debt, and real estate
Four of the most important types of investment are investments in m_____, e______, d____, and r___ e____.

money
Examples of __ investments are: deposit accounts, certificates of deposit, money funds, and annuities.

debt
Examples of _ investments are bonds, notes, mortgages, and bond mutual funds.

equity
Examples of _ investments are stocks and stock mutual
funds.

real estate
Examples of _ _ investments are non income & income properties

conservation of capital
The idea that the original investment should grow without losing it.

liquid
if other people want to buy and sell it for themselves– your investment is _.

negative leverage
lower rate of return

money, equity, debt, and real estate
Four of the most important types of investment are investments in m_____, e______, d____, and r___ e____.

money
Examples of __ investments are: deposit accounts, certificates of deposit, money funds, and annuities.

debt
Examples of _ investments are bonds, notes, mortgages, and bond mutual funds.

equity
Examples of _ investments are stocks and stock mutual
funds.

real estate
Examples of _ _ investments are non income & income properties

contract
an agreement between two or more parties who, in a “meeting of the minds,” have pledged to perform or refrain from performing some act.

valid contract
one that is legally enforceable by virtue of meeting certain requirements of contract law. If a contract does not meet the requirements, it is not valid and the parties to it cannot resort to a court of law to enforce its provisions.

legal status
a court may construe the _ _ of a contract in one of four ways:
valid
valid but unenforceable
void
voidable

valid contract
A _ _ that is in writing is enforceable within a statutory time period. A that is made orally is also generally enforceable within a statutory period.

Valid but unenforceable
An oral long-term lease and an oral real estate sales
contract are examples of contracts that may be _ _.

Void
an agreement that does not meet the tests for validity, and
therefore is no contract at all. If a contract is , neither party can enforce it. Example: a contract that does not include consideration is & a contract to extort money from a business is _.

null & void
Void contracts and instruments are also described as “_ & __.”

Voidable
a contract that initially appears to be valid, but is subject to rescission by a party to the contract who is deemed to have acted under some kind of disability. Only the party who claims the disability may rescind the legal effect of the contract. Ex: a party who was the victim of duress, coercion, or fraud in creation of a contract, and can prove it, may disaffirm the contract. (within a time frame.)

disaffirmation
A voidable contract differs from a void contract in that the lvoid contract does not require an act of _ to make it unenforceable.

disaffirmation
get out of

legal age, mental competency, legitimate authority
Capacity to contract is determined by three factors:
l____ a___
m______ c________
l_______ a________

Mutual consent. (aka meeting of the minds or offer & acceptance)
requires that a contract involve a clear and definite offer and an
intentional, unqualified acceptance of the offerr; the parties must agree to the terms without equivocation. A court may nullify a contract where the acceptance of terms by either party was partial, accidental, or vague.

Valuable consideration
A contract must contain a two-way exchange of _ as compensation for performance by the other party. The exchange of considerations must be two-way. The contract is not valid or enforceable if just one party provides ; can be money or something a party promises to do or not do.

Good consideration
“love and affection,”; can serve as a nominal consideration in transferring a real property interest as a gift.

void
The content, promise, or intent of a contract must be lawful. A
contract that proposes an illegal act is _.

good faith; voluntary; voidable
The parties must create the contract in _ as a free and act. A contract is thus if one party acted under duress, coercion, fraud, or misrepresentation.

rescind
If a property seller induces a buyer to purchase a house based on assurances that the roof is new, the buyer may _ the agreement if the roof turns out to be twenty years old and leaky

writing; legal; signed
a contract that conveys an interest in real estate must:
1 be in
2 contain a description of the property
3 be _ by one or more of the parties

Statute of limitations
restricts the time period for which an injured party in a contract has the right to rescind or disaffirm the contract. A party to a voidable contract must act within the statutory period.

Statute of frauds
States that all contracts to buy, sell, exchange, or lease interests in real property must be in writing to be enforceable. With exception of leases that are less than one year.

statute of frauds
The _ concerns the enforceability of a contract, not its validity. Once the parties to a valid oral contract have executed and performed it, even if the contract was unenforceable, a party cannot use the _ to rescind the contract. Example, a broker and a seller have an oral agreement. Following the terms of the agreement, the broker finds a buyer, and the seller pays the commission. They
have now executed the contract, and the seller can not later force the broker to return the commission based on the_____ _ _.

acceptance
The exact point at which the offer becomes a contract is when the offeree gives the offeror notice of the __.

essence; reasonable
If an offer contains an expiration date and the phrase “time is of the ,” the offer expires at exactly the time specified. In the absence of a stated time period, the offeree has “_” time to accept an offer.

it is placed in the mail
If the communication of acceptance is by mail, the offer is considered to be communicated as soon as _ _ __.

communicated acceptance; revocation
An offer may be revoked, or withdrawn, at any time before the offeree has . The _ extinguishes the offer and the offeree’s right to accept it.

acceptance, rejection, revocation, lapse of time, counteroffer, death or insanity
Situaions that terminate an offer:
a_________
r_________
r_________
l_____ of t_____
c_________
d_____ or i______

acceptance
the offeree accepts the offer, converting it to a contract.

rejection
the offeree rejects the offer

revocation
the offeror withdraws the offer before acceptance

lapse of time
the offer expires

counteroffer
the offeree changes the offer

assignable
Listing agreements are not _, since they are personal service agreements between agent and principal. Sales contracts, however, are , because they involve the purchase of real property rather than a personal service.

parol
oral

express contract
contract in which all the terms and covenants of the agreement
have been manifestly stated and agreed to by all parties, whether verbally or in writing.

implied contract
an unstated or unintentional agreement that may be deemed
to exist when the actions of any of the parties suggest the existence of an agreement.

bilateral contract
contract in which both parties promise to perform their respective parts of an agreement in exchange for performance by the other party. Example: an exclusive listing: the broker promises to exercise due diligence in the efforts to sell a property, and the seller promises to compensate the broker when and if the property sells.

unilateral contract
a contract in which only one party promises to do something, provided the other party does something. The latter party is not obligated to perform any act, but the promising party must fulfill the promise if the other party chooses to perform. Ex. contract with option period

executed contract
contract that has been fully performed and fulfilled: neither party bears any further obligation. A completed and expired lease contract is an executed contract: the landlord may re-possess the premises and the tenant has no further obligation to pay rent.

executory contract
a contract in which performance is yet to be completed. A sales contract prior to closing is executory: while the parties have agreed to buy and sell, the buyer has yet to pay the seller and the seller has yet to deed the property to the buyer.

novation
the substitution of a new contract for an existing one; the new contract must reference the first and indicate that the first is being replaced and no longer has any force and effect.

rescission
the act of nullifying a contract.

revocation
cancellation of the contract by one party without the consent of the other. For example, a seller may revoke a listing to take the property off the market.

Abandonment
occurs when parties fail to perform contract obligations. This situation may allow the parties to cancel the contract.

breach of contract (aka default)
failure to perform according to the terms of the agreement; gives the damaged party the right to take legal action

rescission, forfeiture, suit for damages, suit for specific performance
legal remedies for breach of contract:
r________
f________
s____ for d_______
s_____ for s______ p________

rescission
This cancels the contract and returns the parties to their pre-contract condition, including the refunding of any monies already transferred.

forfeiture
this requires the breaching party to give up something, according to the terms of the contract. For example, a buyer who defaults on a sales contract may have to forfeit the earnest money deposit.

liquidated damages
the total amount stated in a contract that is due to a damaged party in the even of a breach of contract.

unliquidated damages.
the unspecified amount of money a damaged part may sue for in the event of a breach of contract.

suit for specific performance
an attempt to force the defaulting party to comply with the terms of the contract; occurs when it is difficult to identify damages because of the unique circumstances of the real property in question.

legal title (aka title)
someone who possesses all ownership interests owns _ __ to the property.

equitable title
the interest or right to obtain legal title to a property in accordance with a sale or mortgage contract between the legal owner and a buyer or creditor.

equitable
During the contractual period of time when ownership of legal title is contingent upon the contract, the buyer or lender owns _ title to the property.

alienation
Transfer of title to real estate

conveyance
transfer of real estate using a written instrument

delivered; accepted
Execution of a valid deed in itself does not convey title. It is necessary for the deed to be to and by the grantee for title to pass.

not; constructive
Recording is _ necessary to make a deed valid. However, it is in the grantee’s best interests to do so. Recording the deed gives the public notice of the grantee’s ownership.

Granting clause (or premises clause)
conveyance clause – the only required clause; contains the conveyance intentions; names the parties; describes the property; indicates nominal consideration.

Habendum clause
conveyance clause – describes the type of estate being conveyed (fee simple, life, etc.)

Reddendum clause (or reserving clause)
conveyance clause – recites restrictions and limitations to the estate being conveyed, e.g., deed restrictions, liens, easements, encroachments, etc.

Tenendum clause
conveyance clause – identifies property being conveyed in addition to land

Covenant (or warrant) clauses.
clauses present the grantor’s assurances to the grantee. A deed of conveyance usually contains one or more of these
covenants, depending on the type of deed.

seizen
warrant clause that assures that the grantor owns the estate to be conveyed, and has the right to do so

quiet enjoyment
assures that the grantee will not be disturbed by third party title
disputes

further assurance
assures that the grantor will assist in clearing any title problems
discovered later

forever (warranty of title)
assures that the grantee will receive good title, and that grantor will assist in defending any claims to the contrary

encumbrances
assures that there are no encumbrances on the property except those expressly named

against grantor’s acts
states the assurance of a trustee, acting as grantor on behalf of thestates the assurance of a trustee,

Personal representative’s deed
special purpose deed used by an executor to convey a decedent’s estate; also called an executor’s deed

Guardian’s deed
special purpose deed used by a court-appointed guardian to transfer property of minors or mentally incompetent persons

sheriff’s deed
special purpose deed used to convey foreclosed property sold at public auction

Deed of trust
special purpose deed used to convey property to a third party trustee as collateral for a loan

reconveyance deed
special purpose deed used on satisfaction of the loan terms, the trustee uses this type of deed to convey the property back to the borrower

Deed in trust
special purpose deed used to convey property to the trustee of a land trust.

master deed
special purpose deed used to convey land to a condominium developer; accompanied by the condominium declaration when recorded

partition deed
special purpose deed used to convey co-owned property in compliance with a court order resulting from a partition suit

patent deed
special purpose deed used to transfer government property to private parties

tax deed
special purpose deed used to convey property sold at a tax sale

documentary stamp tax
tax required on all deeds or other documents ussed as conveyances. The charge is based on the face value of the note.

amendatory
A will takes effect only after the testator’s death. It is an __ instrument, meaning that it can be changed at any time during the maker’s lifetime.

Holographic
will in the testator’s handwriting, dated and signed

approved
will on pre-printed forms meeting the requirements of state law

nuncupative
will made orally, and written down by a witness; generally not valid for the transfer of real property

descent and distribution (or succession)
state laws that stipulate who inherits and what share they receive, without regard to the desires of the heirs or the intentions of the deceased.

marketable title
title free of undesirable encumbrances.

freehold estate
an ownership interest for an indefinite period of time

leasehold estate (or nonfreehold)
an interest in real property that is measured in calendar time

tenancies
Both leasehold and freehold estates are referred to as _

freehold tenant
freehold tenant

leasehold tenant
renter or lessee

fee simple freehold
the highest form of ownership interest one can acquire in real estate. It includes the complete bundle of rights, and the tenancy is unlimited, with certain exceptions indicated below.

fee tenant
owner of the fee simple interest

Fee Simple Absolute Estate
a perpetual estate that is not conditioned by stipulated or restricted uses. It may also be freely passed on to heirs.

Fee Simple Defeasible Estate
perpetual, provided the usageconforms to stated conditions. Essential characteristics are :•the property must be used for a certain purpose or under certain conditions •if the use changes or if prohibited conditions are present,the estate reverts to the previous grantor of the estate

Determinable
a type of fee simple defeasible estate that states usage limitations. If the restrictions are violated, the estate automatically reverts to the grantor or heirs.

Condition subsequent
a type of fee simple deafeasible estate in which If any condition is violated, the previous owner may repossess the property. reversion of the estate is not automatic: the rantor must re-take physical possession within a certain time frame

life estate
a freehold estate that is limited in duration to the life of the owner or other named person. Upon the death of the owner or other named individual, the estate passes to the original owner or another named party

life tenant
the holder of a life estate

Remainderman
third party to receive title to the property upon termination of the life estate, the party enjoys a future interest called a remainder interest or a remainder estate.

reversion
the portion of the net proceeds from the sale of the property that represents the return of the investor’s capital.

conventional life estate
by grant from a fee simple property owner to the grantee, the life tenant. Following the termination of the estate, rights pass to a remainderman or revert to the previous owner.

Ordinary life estate
an ordinary life estate ends with the death of the life estate owner and may pass back to the original owners or their heirs (reversion) or to a named third party (remainder).For example, John King grants a life estate in a property to Mary Brown, to endureover Mary’s lifetime. John establishes that when Mary dies, the property will revert to himself.

Pur autre vie
life estate endures over the lifetime of a thirdperson, after which the property passes from the tenant holder to the original grantor (reversion) or a third party (remainderman) For example, Yvonne grants a life estate to Ryan, to endure over the lifetime of Yvonne’s husband Steve. Upon Steve’s death, Yvonne establishes that her mother, Rose, will receive the property

legal life estate
created by state law as opposed to being created by a property owner’s agreement. Provisions vary from state to state. The focus of this type of estate is defining and protecting the property rights of surviving family membersupon the death of the husband or wife

homestead
one’s principal residence. The laws protect family members against losing their homes to general creditors attempting to collect on debts.

Dower
wife’s life estate interest in the husband’s property.

curtesy
husband’s life estate interest in the wife’s property.

dower
To transfer property within dower and curtesy states, the husband (or wife) must obtain a release of the __ interest from the other spouse in order to convey

Elective share
a state-level statute enabling a surviving spouse to make a minimum claim to the deceased spouse’s real and personal property in place of the provisions for such property in the decedent’s will. For example, if a husband’s will excludes the wife from any property inheritance, the wife may, upon the husband’s death make the _ __ claim.

estate for years
a leasehold estate for a definite period of time, with a beginning date and an ending date

periodic tenancy
estate from period-to-period; this period automatically renews for an indefinite period of time, subject to timely payment of rent.

tenancy at will (aka estate at will)
has no definite expiration date and hence no “renewal” cycle. The landlord and tenant agree that the tenancy will have no specified termination date, provided rent is paid on time and other lease conditions are met. For example, a son leases a house to his father and mother “forever,” or until they want to move. terminated by proper notice, or by the death of either party.

estate at sufferance
a tenant occupies the premises without consent of the landlord or other legal agreement with the landlord. Usually such an estate involves a tenant who fails to vacate at the expiration of the lease, continuing occupancy without any right to do so. For example, a tenant violates the provisions of a lease and is evicted. The tenant protests and refuses to leave despite the eviction order.

co-brokerage
a transaction involving a cooperating subagent. Commission is typically split on a 50-50 basis.

multiple listing service
an organization of brokers who have agreed to cooperate with member brokers in marketing listings.

obtaining, marketing, facilitating, managing
critical brokerage skills:

1. o_______ a client listing
2. m_______ a listing
3. f_________ the closing of a transaction
4. m________ market information

organizing & managing
a fundamental part of maintaining market expertise is o_______ & m_______ an information system.

advisory
Examples of a______ services:

1. providing an estimate of value
2. prfroming market analysis
3. managing property

sole proprietorship
business owned by a single individual.

corporation for profit
a legal entity owned by stockholders.

domestic; foreign
a corporation is if it is headquartered in the state where the articles of incorporation were filed. Otherwise, the corporation is a _ corporation.

non-profit corporation
a corporate entity which is not legally entitled to generate profit. This type of corporation may not broker real estate.

general partnership
a for-profit business consisting of two or more co-owners who have agreed to share business profits.

limited partnership
consists of general partners and limited partners.

joint venture
a partnership formed to complete a specific business endeavor, such as real estate development.

business trust
a group of investors who invest in a pooled trust fund managed by their elected trustee. this type of trust may not broker real estate, but it may buy and sell its own real estate assets.

cooperative association
a non-profit, tax-exempt alliance of individuals or compaines formed to promote common goods or services. this type of association may not broker real estate.

Independent brokerage
a brokerage that is not affiliated with a franchise.

franchised brokerage
an idependently-owned company that enters into a licensing arrangement with a franchisor to participate in various benefits offered in exchange for compensation.

commingling
the act of mixing the broker’s personal or business funds with escrow funds.

conversion
the act of misappropriating escrow funds for the broker’s business or personal use. considered an act of theft.

Sherman Antitrust Act
This act was enacted in 1890 and it prohibits resraint of interstate and foreign trady by consiracy, monopolistic pratice, and certai forms of business combinatins or mergers; it empowers the federal government to proceed against antitrus violators.

Clayton Antitrust Act
This act was enacted in 1914, and it reinforces and broadens the provisions of the Sherman Act. Among its prohibitions are certain exclusive contracts, predatory price cutting to eliminate competitors, and inter-related boards of directors and stock holdings between same-industry corporations

collusion
the illegal practice of two or more businesses joining forces or makng joint decisions which have the effect of putting another business at a competitive disadvantage.

price fixing
the pratice of two or more brokers agreeing to charge certain commission rates or fees for their services, regardless of market conditions or competitors.

market allocation
the practice of colluding to restrict competitive activity in portions of a market in exchange for a reciprocal restriction from a competitor. example “we won’t compete against you here if you won’t compete against us there.”

fee simple estate
The most comprehensive interest in real property that an individual may possess is a(n) _ _

surface; subsurface; air rights
Physical components of real property include , , & _.

fixtures
__ are items that are fixed, or attached to real property; were once personal property but are now real property; have been incorporated as a part of real property.

marital asset; equitably
Frank & Lucille decide to get a divorce. In addition to their Florida homesteaded property, they own a vacant lot in the same subdivision acquired in both of their names during the marriage. How will the lot be distributed? The lot is a _ & will be distributed .

Disposition; use; possession; exclusion
The bundle of right of real property include (DUPE) , , , & __.

separate property
Mary & John were recently wed. Mary owns a residential lot that was purchased before the marriage. The lot is considered to be _.

tenancy at sufferance
At the expiration of the lease period & before negotiation of the lease, a tenant continued to occupy the apartment. The tenant’s position is called _ _.

a fixture
Lucy received a new microwave for Christmas. The microwave was installed above her range by screwing the unit to the kitchen cabinets & venting it through the attic. The microwave would be considered _.

assessed value of a property
The homestead tax exemption is deducted from the_______ _ __.

widow; thirty
A husband & wife own a home with title in both names. The husband owns two small farms in his name only, acquired before the marriage. They have one minor child & one adult son. The husband dies. What happens: The owns all of the home & may claim _ percent of the two farms.

160; 1/2
The real estate protected by homestead rights is limited to _ acres outside of a city or town & _ acre in town

life estate; vested remaindermen
A constitutional homestead is owned by Ralph, who is head of the family consisting of himself, his wife, & their three children. Ralph dies unexpectedly. After his death, the widow owns a _ in the homestead, & the children are __.

estate by the entireties
Which estate features right of survivorship?

real property
In Chapter 475 F.S., _ ________is defined any interest or estate in land, busness enterprises & business opportunities, including any assignment, leasehold, subleasehold, or mineral rights.

land sales; condominiums; mobile homes
In Florida, cooperatives & time-share are regulated by the Division of Florida _ , & __. (LS, C, MH)

3 business days
A condo unit buyer has how long to cancel the purchase contract following the signing of an agreement with a developer?

prospectus
Developers of condominium projects must give buyers a copy of the _.

Easement in gross
Which type of easement gives an electric company the authority to install and maintain electric power lines?

delivered; accepted.
Title to real property legally transfers from grantor to grantee when the deed is voluntarily _ and _.

equal
Courts at various levels have ruled that constructive notice & actual notice have __ legal priority

condemnation proceeding; compensation
A 92-year old man is being forced from his home because of a governmental taking. The home has been in his family for four generations. What recourse, if any, does he have? He may request a to protest the amount of being offered by the governmental body.

grantor; two
For a deed to be valid, a competent & _ witnesses must sign the instrument.

quitclaim deed
The type or form of deed most commonly used to clear clouds in the title of real property is the

general warranty deed
If the sales contract does not specify the type of deed to be delivered, the seller is required to provide a

condemnation
The process of taking property under the power of eminent domain is called

special warranty deed
The type of deed in which the grantor does not warrant the title in any manner except against his or her acts or the acts of his or her representatives is called a

grantor; except
The covenant against encumbrances in a deed is designed to guarantee that the __ has not encumbered the property in any manner _ as noted in the deed.

constructive notice
The purpose of recording a deed is to give _ of ownership

grantor
A valid instrument of conveyance of real property must be signed by a competent

seizin clause
The __ in a deed specifies that the grantor actually owns the property and has the right to sell it.

general warranty deed
The deed that contains the covenant in which the grantor guarantees that he or she will forever be responsible for warranting title and will defend the title and possession is a _

premises
The provision in a deed that names the parties and contains the granting clause is the _.

deed restriction
An owner placed a condition in the deed that stipulated that a commercial building could not be erected on the property until at least the year 2010. This is an example of a _.

easement; deed restriction; lien
Three examples of an encumbrance on title to real property an , a_____ _, & a

constructive notice
When a lis pendens is filed properly with the county clerk, it becomes a type of _.

property tax lien
A lien that takes top priority over all other liens is a __

special assessment lien
A lien that would be second in priority (behind a property tax lien) is a ___

chain of title
The complete successive history of a parcel, from the time it was conveyed from a government to a private owner to today, is referred to as a _ _ __

encroachment
Mr. & Mrs. Lee signed a contract to purchase a home in a residential subdivision. When the Lees had the lot surveyed before closing, they discovered that the contractor had built the neighbor’s garage three inches inside the west boundary of their lot. The garage in its present location is an example of an _

easement by prescription
When a pathway to a property has been used continuously and without interruption for more than 20 yrs, it creates an

legal heir; delivered; accepted
Soon after Michael’s death a deed was discovered behind a brick in the basement wall of his home. The deed is for Michael’s home and it deeded the property to a charitable organization. Michael is survived by his son Andrew, who discovered the deed. Michael died intestate. Based on this info, the house belongs to the _ _ because the deed was never and _.

owner’s policy; transferable
The _ insurance policy is issued for an amount no greater than the purchase price of the proprty and is not __.

easement
An __ is a right to use an owner’s property for a specific use, a nonpossessory interest, & a type of an encumbrance.