BOB HOGUE SALES ASSOCIATE EXAM REVIEW QUESTIONS AND ANSWERS, Exams of Real Estate Management

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REVIEW QUESTIONS AND ANSWERS

the product that real estate licensees market is - correct answer information knowledge of property transfer, knowledge of market conditions, knowledge of how to market real estate or business a competent licensed real estate professional must know the economic and legal intricacies associated with transfers of - correct answer title, property taxes, financing, and local zoning ordinances to be successful, licenses must know how to - correct answer market real estate and businesses real estate brokerage - correct answer the business of bringing together buyers and sellers, owners and renters, and of completing real estate transactions 5 sales specialties of real estate - correct answer residential, commercial, industrial, agricultural, business real estate professionals have found that advertising money is more efficiently spent and produces better

REVIEW QUESTIONS AND ANSWERS

outcomes if efforts are focused on a target market - correct answer target marketing involves expertise in locating prospects many brokers and sales associates prefer to select one specific portion of a city and become an expert in that particular portion, called - correct answer farm area property management - correct answer professional service conducted by a person or company hired to maintain and manage property on behalf of the property owners property manager - correct answer the property owners local representative rental agents - correct answer typically find a tenant for property and collect a fee absentee owner - correct answer a property owner who does not reside on the property and who often relies on a professional property manager to manage the investment

REVIEW QUESTIONS AND ANSWERS

a property manager who is paid by commission or on a transactional basis must be - correct answer licensed as an active real estate broker CAM (community association manager) - correct answer association consists of 10+ units, or has budget higher than $100, appraisal - correct answer process of developing and communicating an opinion about a property's value FREAB (florida real estate appraisal board) - correct answer regulates state certified and licensed appraisers. federally related transaction USPAP - correct answer uniform standards of professional appraisal practice florida law requires appraisers, real estate brokers, and sales associates to abide by - correct answer USPAP when conducting appraisals of real property.

REVIEW QUESTIONS AND ANSWERS

CMA - correct answer comparative market analysis. sellers often ask real estate brokers and sales associates what buyers are likely to pay for their property's BPO - correct answer brokers price opinion. a written opinion of the value of real property the money you earn is - correct answer your brokers financing - correct answer life blood of real estate. business of providing funds that make real estate transactions possible. counseling - correct answer service of analyzing existing or potential projects and providing advice to individuals and firms regarding the purchase and use of real estate investments 3 phases of development and construction - correct answer land acquisition, subdividing and development, recording the subdivision plat map subdividing - correct answer process of converting parcels of land into smaller units or lots.

REVIEW QUESTIONS AND ANSWERS

development - correct answer improving raw land subdivision plat map - correct answer developers submit for new development for review by the gov dedication - correct answer gift of land by an owner. involves streets, sidewalks, park areas, and other improvements. streets and public areas obligates the local government to maintain them. 3 categories of residential construction - correct answer speculative, custom homes, tract homes the local government impacts the real estate business through - correct answer property taxation and regulatory activities the state government impacts the real estate business - correct answer when ownership to real property is transferred or pledged as collateral for a mortgage

REVIEW QUESTIONS AND ANSWERS

the federal government impacts the real estate business through - correct answer fiscal and monetary policies NAR - correct answer national association of realtors. largest trade organization in the world. promotes ethics and education in the industry. NAR realtors must complete 3 hours of training every 4 years florida statute 20 - correct answer executive branch of floridas government florida statute chapter 475 part 1 - correct answer pertains to real estate brokerage, sales associates, schools florida statute chapter 475 part 2 - correct answer pertains to real estate appraisers and sets forth requirements for licensed and certified appraisers according to federal statute. FREAB (florida real estate appraisal board) regulates state certified, licensed and registered trainee appraisers florida statute chapter 475 part 3 - correct answer commercial real estate sales commision lien act gives broker lien rights for earned commission. applies to

REVIEW QUESTIONS AND ANSWERS

commercial property, NOT residential. Lien is only against the onwers new proceeds from the sale and does not attach to the commercial real property. florida statute chapter 475 part 4 - correct answer the commercial real estate leasing commission lien act, gives broker lien rights for earned commission associated with brokerage agreement to lease commercial real estate chapter 455 - correct answer professions regulated by DBPR (dept business and professional regulation). discipline a real estate licensee who failed to notify DBPR within 30 days of conviction, finding of guilt, plea, or adjudication of a crime florida statute 120 - correct answer procedural process for all governmental entities authorized under the florida constitution. chapter 61J2 - correct answer FREC (florida real estate commission) rules sales associate - correct answer person who performs real estate services for compensation but who does so

REVIEW QUESTIONS AND ANSWERS

under the direction, control, or management of a broker/owner developer broker - correct answer a person who for another, and for compensation or other consideration (or anticipation of compensation or other consideration) performs real estate services broker associate - correct answer a person who holds a brokers license but chooses to register and work in real estate under the direction of another broker. an individual typically begins a real estate career in Florida as - correct answer a licensed sales associate. starts with license as voluntary inactive sales associate owner developer - correct answer an unlicensed entity that sells, exchanges, or leases its own property becoming a broker requires - correct answer additional education, experience, and passing the broker license exam

REVIEW QUESTIONS AND ANSWERS

license application expires: - correct answer 2 years after the date the DBPR receives the application military veteran and spouse waiver - correct answer DBPR has the authority to waive the initial application, license, and unlicensed activity fees for military vets and their spouses who apply for a real estate license within 60 months after honorable discharge background check of criminal history - correct answer a withhold of adjudication must be disclosed on the application background check and expungement - correct answer process by which the record of criminal conviction is destroyed or sealed after expiration of time. when in doubt, always - correct answer disclose a florida real estate licensee who moves out of state and becomes a non florida resident must notify the commission within - correct answer 60 days

REVIEW QUESTIONS AND ANSWERS

licensees must notify FREC with a change of mailing address within - correct answer 10 days florida resident - correct answer person who has resided in FL continuously for a period of 4 calendar months or more within the preceding year regardless of whether the person resided in a recreational vehicle, hotel, rental unit, or other temporary/permanent location sales associate applicant must be (age) - correct answer 18 applicant who has been disbarred or guilty of offenses is not qualified for a real estate license unless - correct answer passage of time, good conduct and reputation, or other sufficient reasons cause the commission to believe granting the license will not endanger the interests and welfare of the general public. a student failing the end of course exam must wait - correct answer 30 days before retaking 2 exemptions of prelicensing - correct answer 4 year or higher real estate degree, licensed attorney

REVIEW QUESTIONS AND ANSWERS

if you hold a 4 year real estate degree, you are exempt from - correct answer prelicense course 1, 2, and post license. NOT CONTINUING EDUCATION if you are a florida licensed attorney you are exempt from

• correct answer prelicensing course 1 passing score of license exam - correct answer 75 new sales associates must change their license to - correct answer active status before operating as a sales associate. submitting DBPR from RE: new licensees must not begin working until - correct answer the DBPR indicates the license has been changed to active status under the proper broker/brokerage entity post licensing education - correct answer effect of placing all initial licensees in a conditional (probationary) status because failure to complete post licensing edu requirement will cause license to become null and void.

REVIEW QUESTIONS AND ANSWERS

continuing education - correct answer active and inactive licensees must complete 14 hours of cont. edu. every 2 year period after. 3 hours of core law are required in 2 year 14 hour renewal cycle. applicants who possess a Florida sales associate license must fulfill their sales associates post licensing edu - correct answer before the expiration of the initial sales associate license or before applying for a brokers license (whichever comes first) broker applicant must have held an active real estate license for - correct answer at least 2 years during the 5 year period preceding application to become a broker. the broker experience cannot be earned by working for an owner/developer unless - correct answer the owner developer is a licensed broker who holds a current, valid, active real estate license registration - correct answer process of submitting information to the DBPR that is entered into the dept records

REVIEW QUESTIONS AND ANSWERS

sales associates and broker associates licensed in florida must be - correct answer registered under their employing broker. sales associates and broker associates may only have - correct answer 1 registered employer at any given time individual who wishes to actively engage in real estate industry must - correct answer be registered and licensed with DBPR real estate services - correct answer any real estate activity involving compensation for performing the service for another A BAR SALE (real estate services) - correct answer Advertise real estate services Buy Appraise (non-federally related transactions) Rent or provide rental info or lists Sell

REVIEW QUESTIONS AND ANSWERS

Auction Lease Exchange compensation - correct answer anything of value or valuable consideration, directly or indirectly paid, promised, or expected to be paid or received it is a violation of license law to share a commission with or to pay a fee or other compensation to an unlicensed person for the referral of real estate business clients, prospects, or customers, however - correct answer a florida broker may pay a referral fee to a broker licensed in another state so long as the foreign broker does not violate florida law. property owners do not need a real estate license to buy, sell, exchange, or lease their own real estate - correct answer corporations, partnerships, trusts, and joint ventures may buy, sell, exchange or lease their own property. Salaried employees of these business entities may buy, sell, exchange, or lease real property for their employer, provided the activity is incidental to their employment

REVIEW QUESTIONS AND ANSWERS

and they are not paid a commission or compensated on a transactional basis. - correct answer exempt from real estate licensure are salaried employees who - correct answer who work in an onsite rental leasing office in a leasing capacity who does not receive commission managers of condos or coop apartments who rent individual units for periods no longer than one year and who are not paid a commission owner-developer who do not receive commission of a gov agency who perform real estate services for the state or local gov and do not receive commission business entities who negotiate the sale/purchase of radio, television, or cable enterprises (does not involve real property) chapter 475 of florida statute exempts the following individuals from holding a real estate license - correct answer cemetery lots

REVIEW QUESTIONS AND ANSWERS

rent lots in mobile home park attorneys at law CPAs (certified public accountants) power of attorney (attorney in-fact) owners of time shares appraisers court appointed individuals hotel/motel clerks SEC (securities and exchange commission) apartment property owners license application expires after - correct answer 2 years the DBPR is under the executive branch of the - correct answer governor the chief administrator is the DBPR is also the - correct answer secretary of the DBPR, appointed by the governor, subjected to confirmation from the state senate division of florida condominiums, timeshares, and mobile homes - correct answer regulates condominiums,

REVIEW QUESTIONS AND ANSWERS

cooperatives, timeshares, and mobile home parks. also provides arbitration program to handle recall and election disputes for HOAs who does the DBPR employ - correct answer all DRE personnel to support FREC activities FREC and what composes it - correct answer florida real estate commission. consists of 7 members. 4 active brokers-licensed for at least 5 years 1 active sales associate or broker- licensed for at least 2 years 2 consumer (unlicensed or lay) members-never been licensed governor appoints commission members to 4 year staggered terms paid 50$ per day

REVIEW QUESTIONS AND ANSWERS

FREC powers and duties (3 areas) - correct answer executive powers, quasi legislative, quasi judicial. limited to administrative matters, nothing criminal makes decisions and sets policies carried out by DRE FREC executive powers - correct answer regulate and enforce license law, establish fees FREC quasi legislative powers - correct answer create and pass rules/regulations and regulate professional practices FREC quasi judicial powers - correct answer grant or deny applications for licensure suspend or revoke licenses and impose administrative fees make determinations of violations

REVIEW QUESTIONS AND ANSWERS

the initial effective date of a real estate licensee is - correct answer the date the applicant passed the license exam sales associates and broker associates must complete their post license education before - correct answer the 1st renewal of their initial licenses armed forces renewal exemption - correct answer 6 months after discharge from active duty active license - correct answer required to engage in real estate brokerage services. active status is achieved by finding an employer and registering with DBPR under your employing broker or owner/developer temporary license - correct answer DBPR may issue a temporary real estate license to the spouse of an active duty member of the armed forces who is assigned to duty in florida. the spouse must hold a valid real estate license in another state or foreign jurisdiction. a temporary license expires 6 months after the date of issue and is not renewable

REVIEW QUESTIONS AND ANSWERS

voluntary inactive license status - correct answer licensee who has been qualified for a real estate license but who voluntarily chooses not to engage in the real estate business involuntary inactive license status - correct answer if a licensee fails to renew an active or voluntary inactive license before the expiration date when a licensee has been involuntary inactive for:

1. 12 months of less, they must satisfy the eduction requirement by completing 14 hrs of FREC approved continuing edu
2. more than 12 months, but less than 24 months, they are required to complete 28 hours of a commission- prescribed education course broker license suspension or revocation - correct answer no disciplinary action is taken under against the sales associates and broker associates registered under that broker.

REVIEW QUESTIONS AND ANSWERS

they can no longer work for that broker, and DBPR places licenses under involuntary inactive status. sales associates and broker associates can seek new employment, and licenses will go back to active as soon as their new broker registers with DBPR null and void - correct answer license no longer exists when a license has been involuntary inactive for more than 2 years, the license becomes null and void without any further action by the DBPR or FREC a license that has been revoked after a disciplinary proceeding becomes null and void. revocation of a license is a permanent penalty failure to complete post license education requirement within the expiration of the initial license will cause license to become null and void

REVIEW QUESTIONS AND ANSWERS

cease to be in force (ceases to be in effect) - correct answer DBPR must be notified within 10 days when:

1. a broker or registered school changes business addresses
2. a sales associate or a real estate instructor changes employer multiple licenses - correct answer issued to a broker who qualifies for more than 1 business entity group license - correct answer registered to sales associates who are registered under 1 owner/developer common law - correct answer unwritten law or case law. law based on usage, general acceptance, and custom statutory law - correct answer refers to statutes administrative law - correct answer body of law created by governing administrative agencies in form of regulations, rules, orders, and decisions

REVIEW QUESTIONS AND ANSWERS

principal - correct answer person who delegates authority (client) agent - correct answer person entrusted with another's business authorized to represent and act for the principal fiduciary relataionships - correct answer acts in a position of trust and confidence for another caveat emptor - correct answer let the buyer beware 3 types of agents - correct answer universal agent general agent special agent general agent - correct answer authorized by the principal to perform acts associated with the continued

REVIEW QUESTIONS AND ANSWERS

operations of a particular job or a certain business of the principal universal agent - correct answer authorized by the principal to perform all acts that the principal can personally perform and that may be lawfully delegated to another special agent - correct answer authorzed by the principal to handle only a specific business transaction or only to perform a specific act broker agrees to represent the buyer OR the seller brokerage options relationships - correct answer transaction broker, single agent, no brokerage relationship FSBOs may lect no brokerage relationship with the brokerage firm. the appropriate type of brokerage relationship is determined by the broker - correct answer broker relationship disclosure act and residential transactions - correct answer written disclosures are

REVIEW QUESTIONS AND ANSWERS

required only when dealing in residential real estate sale transactions residential sale improved residential property of 4 or fewer units, the sale of unimproved residential property intended for use as 4 or fewer units, or the sale of agricultural property of 10 or fewer units broker relationship disclose act does not apply to - correct answer non residential transactions rental or leasing of real property auctions appraisals dispositions, except for a property with 4 or fewer residential units transaction broker - correct answer a broker who provides limited representation to a buyer, seller or both in a real estate transaction