Real Estate Licensing and Regulations, Exams of Advanced Education

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FLORIDA Sales Associate Exam Prep

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1 Mile - - 5,280 feet 1 Acre - - 43,560 square feet = 208.71 feet x 208.71 feet 1 Township - - Contains 36 sections = 36 miles squared Bill, a sales associate with ABC Realty, was not paid a commission he believes he earned. What recourse could Bill legally take? a. Lien the property of the seller. b. File suit against the seller for this share of the commission. c. File a suit against ABC Realty in court. d. Seek payment from the Real Estate Recovery Fund. - - c. File a suite against ABC Realty in court. Under Florida law all listings and commissions are legally owed to the Broker. Therefore, sales associates are prohibited from initiating any suit or action for compensation in connection with a real estate transaction against any person except the person registered as their employer. An Illinois corporation transferred its employees to Miami, Florida and the firm retained a Florida broker to find homes for their employees. The attorney representing the Illinois corporation notifies the Florida broker that in the state of Illinois, an attorney is recognized as a real estate broker. Therefore, he wants a referral fee. The Florida broker should: a. obtain verification that Illinois attorneys are recognized as brokers. b. not expect a referral from the Florida broker. c. notify FREC prior to expecting any referral fee.

d. receive a referral fee because he is recognized as a broker. - - a. obtain verification that Illinois attorneys are recognized as brokers. A broker pays a referral fee or shares a commission with a properly licensed broker from another state provided the out of state broker does not come to Florida and perform any act or service in negotiation of the transaction. A sales associate went to a closing and received a check for the total commission. The associate deposited it in his personal account and later wrote a check to his broker for his share. This would be: a. legal. b. illegal. c. legal if Broker authorized it. d. a first degree misdemeanor. - - b. illegal. A sales associate cannot receive a check for the total commission. A broker is promoting a development and offers lottery tickets for $10 each with the condition that if he can sell 20 lots in one week, the winner of the lottery will be refunded 50% of the purchase of one of the broker's lots. At the end of the week only 16 lots have been sold. At that point, the broker declares the lottery null and void and offers to refund the money paid for the purchase of the lottery tickets. Which is correct? a. This is an illegal situation under the license law because it is a lottery. b. This is an illegal situation under the license law because the broker declared the lottery null and void after tickets were sold. c. This is a legal situation because there was full disclosure of all terms of the contest. d. This is a legal situation if the broker agrees to void the sale of the lots and refund the money paid to purchase the lottery tickets. - - a. This is an illegal situation under the license law because it is a lottery. A broker cannot use lotteries, equity trading schemes, or other devices, such as the selling of chances or free-lot schemes to induce any person to buy real estate. If Sally has violated F.S. 475, and this is her first offense, what is the maximum period of suspension she could receive?

a. 90 days b. 120 days c. 5 years d. 10 years - - d. 10 years The maximum period for which FREC may suspend a license is 10 years per Chapter 475.25, F.S. Broker A gets an offer on a parcel of real estate owned by an individual living in Ohio. The property is listed for $30,000, but the offer is for $28,000 cash with a $1,000 binder deposit. Broker A calls the owner, who indicates the offer is acceptable and directs the broker to send a contract for him to sign. Shortly thereafter, Broker B gets an offer for $30,000 - 50% in cash and the balance to be owner financed - together with a $500 deposit and explains this to Broker A. What should Broker A do? a. Tell Broker B the property is sold. b. Tell the first buyer about the second offer. c. Submit both offers. d. Submit the second offer only if the seller modifies the first offer. - - c. Submit both offers. All offers and counteroffers must be submitted to a client. Broker Brown has been told by seller-client Diaz that there are several clouds on the title to the listed property. Brown does not advise the buyer about the tittle problems because Brown knows the buyer will retain an attorney and purchase title insurance. Which is correct? a. Diaz is guilty of fraud for offering property for sale with title defects. b. Brown should not have taken the listing under these circumstances. c. Brown's conduct is a form of fraud and dishonest dealing. d. Brown and Diaz are both guilty of fraud and dishonest dealing. - - c. Brown's conduct is a form of fraud and dishonest dealing. It is fraud and dishonest dealing for a broker to offer for sale any property where he or she has notice that the title is not merchantable (or that a mortgage or other liens exist against the property) unless he or she informs a prospective buyer of such conditions prior to payment of any portion of the sales price.

Broker Paul is selling rental lists that are outdated. What would be true? a. This is illegal. b. This is a form of fraud. c. This is a first degree misdemeanor. d. His license is now null and void. - - c. This is a first degree misdemeanor. The only violation of Chapter 475 that is a first degree misdemeanor, punishable by a fine up to $1, and/or imprisonment for up to one year is advertising rental property information or lists that are not current or are materially inaccurate. A developer hires broker Smith to sell property that is encumbered by a blanket mortgage. Each lot may be released from the mortgage by payment of its $12,000 share of the principal balance. Broker Smith sells a lot for $10,500 without mentioning the existence of this mortgage to the buyer. Which is correct? a. Broker Smith has committed a fraudulent act. b. The developer must pay the difference. c. The buyer must pay the difference. d. No fraudulent conduct has occurred. - - a. Broker Smith has committed a fraudulent act. It is fraud and dishonest dealing for a broker to knowingly sell or offer for sale any property which is covered by a blanket mortgage (a mortgage which also covers other property), unless the particular property sold or offered for sale may be released from the blanket mortgage at any time before a foreclosure sale. A non-licensee is collecting commissions. What action may be taken? a. The DBPR may issue a notice to cease and desist. b. Only the state attorney may handle this matter. Only the county police where the non-licensee is operating may handle this matter. d. No action can be taken against non-licensees by the DBPR. - - a. The DBPR may issue a notice to cease and desist.

The DBPR is empowered to issue cease and desist notices to non-licensees who are operating in violation of real estate licensing laws. An active broker must have a/an: a. office. b. escrow account. c. listed telephone number. d. website with contact information. - - a. office. Active brokers must maintain a physical office but are not required to have escrow accounts, telephone numbers, or websites. Of course, it is common for brokers to have all 4 but it is not required by law to have anything more than a physical office. Who cannot perform real estate services without a license? a. an unlicensed employee of a corporation for profit. b. a real estate sales associate who is a partner in a real estate partnership. c. owners renting their own apartments. d. an unlicensed condominium manager leasing units for 2 years. - - d. an unlicensed condominium manager leasing units for 2 years. An unlicensed condominium manager can only handle leases for only up to one year and remain exempt from licensing. A broker has 2 apartments listed. Due to an appointment conflict, she asks her secretary to drive the prospect by one property. The secretary is given a 3 x 5 card with printed information to read to the prospect. The secretary then brings the prospect back to the office and the broker writes the contract. Which is correct? a. Ch. 475 exempts secretaries. b. This is a violation of Ch. 475. c. If the secretary read printed information and did not give objective opinions, there is no violation. d. Provided that it is Secretary's Day, there is no violation. - - b. This is a violation of Ch. 475.

Although printed information could be given to a prospect, driving a prospect by a property is showing property and that requires a real estate license. Which statement concerning a real estate brokerage corporation is false? a. Sales associates may not be officers or directors. b. The corporation must have at least one active broker. c. All corporate officers must be active brokers. d. Stockholders are not required to be active brokers. - - c. All corporate officers must be active brokers. Only one (but at least one) officer must hold an active broker's license. All other officers and directors must be licensed as active brokers or registered. Stockholders do not have to be licensed at all. Sales associated may be stockholders, although they cannot be officers or directors. An inactive broker who has completed the broker's educational course and passed the broker's license state examination may perform the services of real estate when: a. his or her license is current. b. he or she is voluntary inactive. c. he or she completed the post-licensing requirement. d. the broker has activated his or her license. - - d. the broker has activated his or her license. After passing the broker exam, a license is inactive until the licensee activates the license. An individual was arrested and charged with fraud in Alabama. He pled nolo contendere. He then moved to Florida, successfully completed the sales associate pre-license course, passed the sales associate state examination, and became licensed in Florida. The felony information was not given on the application. If this information is revealed, the FREC would: a. take no action, since the plea was nolo contendere. b. take no action, since the fraudulent act occurred in Alabama. c. suspend or revoke the license.

d. suspend or revoke the license but the individual will be permitted to reapply and take the exam again at a later date. - - c. suspend or revoke the license. Applicants must disclose if they have ever been denied or had a license suspended or revoked in another state, or been denied license or registration to practice a regulated profession. They must also disclose if they have been guilty of any conduct or practice that would have been grounds for suspension of revocation under F.S. 475. They must also disclose if they were convicted of a crime or ever entered a plea of nolo contendere (no contest). A broker withdraws money from an escrow account and uses it for personal expenses. However, the broker replenishes the account in time for it to be used for its intended purpose. If it is discovered what the broker has done, the FREC could: a. take no action if no one was harmed. b. take no action because the funds were replaced in time. c. discipline the broker. d. request the Division of Administrative Hearings conduct a hearing in this matter. - - c. discipline the broker. Withdrawing money from an escrow account, using it for the broker's own benefit and later replenishing the account is a violation known as commingling. The FREC would discipline the broker. Which penalty may not be imposed by the FREC? a. imprisonment b. reprimand c. suspension of license for up to 10 years d. revocation of license (permanent) - - a. imprisonment The potential penalties that may be imposed by the FREC against licensees include reprimand; suspension of license for up to 10 years; revocation of license; administrative fine of up to $1,000 for each separate offense of F.S. 475; administrative fine of up to $5,000 for each separate offense of F.S. 455; probation; citation (fines up to $1,000); and notice of noncompliance for minor violations. The FREC cannot imprison licensees.

A broker sold a house 4 years ago and at that time the owners disclosed to the Buyers the home suffered water damage due to a fire in the attic. The Buyers are now selling, but are not disclosing the water damage. Legally, the Broker must: a. do nothing. b. disclose the water damage to all interested buyers. c. follow the directives of his client. d. report the seller to FREC. - - b. disclose the water damage to all interested buyers. Licensees have a duty to disclose to all interested buyers all known facts that materially affect the value of residential property. A material fact is information relevant to a person making a decision. Owner Ann and Citizen Bill meet on the street. Ann says, "I would like to sell my house." Bill gets the description and price of the property. Bill takes Chuck to look at the property and gets an offer from Chuck, which Ann accepts. This is the second time Bill has done this for Ann without compensation. Which applies? a. Ann could not legally sell to Chuck. b. Chapter 475 was not violated. c. Bill must be licensed as a broker. d. Bill must be licensed as a sales associate. - - b. Chapter 475 was not violated. Individuals who provide services of real estate but who are not compensated for this service do not need to have a license. Since Bill was not paid and did not expect to be compensated, he has not violated license law. A real estate brokerage general partnership has only one active broker and two partners who do not perform services of real estate. If the active broker dies, this partnership: a. must find another broker within 14 calendar days or the registration is canceled. b. is allowed 30 days to find another active broker. c. may continue its brokerage business if the two other partners remain with the partnership. d. may continue its brokerage business without an active broker since the partnership is already registered with the FREC. - - a. must find another broker within 14 calendar days or the registration is canceled.

Another broker must be obtained for the partnership within 14 calendar days or the registration of the partnership will be canceled. An owner of a service station who holds an inactive sales associate license has been appointed by the court to appraise another service state. Which is most correct? The service station owner: a. has registration status so she may be compensated for this service of real estate. b. must have an active license to be compensated. c. may be compensated by a licensed broker. d. may be compensated directly by the court for this service. - - d. may be compensated directly by the court for this service. Court appointees are exempt from licensing requirements. The real estate license of a person serving in the military will be: a. suspended for the period of military service. b. revoked for the period of military service. c. valid for the period of military service and 6 months after discharge from active duty. d. valid for the period of military service and 12 months after discharge from active duty. - - c. valid for the period of military service and 6 months after discharge from active duty. There is an exception regarding the renewal procedure for members of the armed services providing them with an extension. Broker A and Broker B form a brokerage partnership and open an office in compliance with the law. Broker C later arranges to share office space with them. While waiting for his sign to be put up, C defrauds a customer. Which best applies? a. Brokers A and B are partners; C is not. b. Brokers A, B, and C have a limited partnership. c. Brokers A, B, and C have an ostensible partnership. d. Brokers A and B have an ostensible partnership. - - c. Brokers A, B, and C have an ostensible partnership.

Since it appeared to the customer that A, B, and C were in a partnership, for all practical purposes, A and B have taken on the liability of C's actions. The FREC considers ostensible partnerships an unlawful business entity for purposes of brokering real estate. An individual received a judgment against a broker as a result of a fraudulent act in a real estate transaction. The judgment consisted of an award of $10,000 in compensatory damages and $10,000 in punitive damages. The broker has been found to have no means of satisfying any portion of the judgment. What is the nature and amount that may be recovered from the Real Estate Recovery Fund as a result of this claim? a. $10,000 to satisfy the punitive damages. b. $10,000 to satisfy the compensatory damages. c. $20,000 to satisfy all awarded damages. d. $20,000 to satisfy the judgment damages. - - b. $10,000 to satisfy the compensatory damages. The Florida Real Estate Recovery Fund was created to provide financial reimbursement to persons who have suffered a loss as the result of actions of real estate licensees. The claimant must sue the licensee in a civil action and be awarded a judgment. The assets of the licensee must be used first to satisfy the judgment. If the assets of the licensee are insufficient to satisfy the claim, the party may be reimbursed from the fund up to certain limits. To be eligible to claim reimbursement, notice of intent must be served by certified mail to the FREC to commence such action. Recovery is limited to the unsatisfied portion of a judgment or $25,000 for a single judgment. Compensatory awards may be reimbursed from the Fund. A Kentucky broker and a Florida broker worked jointly on a specific transaction. The Kentucky broker traveled to Florida to assist the Florida broker with some details of the transaction. What form of compensation is the Kentucky broker entitled? a. a kickback b. a referral fee c. a share of the commission d. nothing - - d. nothing The Kentucky broker must be properly licensed in Florida to provide any real estate service in Florida and to be paid.

A Florida broker and a California broker have an agreement that the Florida broker pays the California broker a fee for referrals that do not involve the California broker's traveling to Florida. Is this agreement legal by Florida law? a. This is a violation of 475, F.S. b. This is a perfectly legal arrangement. c. The referral fee may be paid only if the California broker travels to Florida to assist the Florida broker. d. The referral fee may be paid only if the California broker has a valid Florida broker's license in addition to a valid California broker's license. - - b. This is a perfectly legal arrangement. If the California broker stays in California where he is properly licensed, then the California broker may be compensated by the Florida broker in any manner mutually agreed upon. An unlicensed secretary refers leads to her broker for $25 per lead. Who is in violation of the law? a. the broker b. the secretary c. both the broker and the secretary d. neither the broker nor the secretary - - c. both the broker and the secretary Individuals who are compensated transactionally (per transaction) must have a current, valid, active Florida license. The secretary is in violation of F.S. 475. Brokers are not permitted to pay unlicensed individuals for the service of real estate, so this broker is also in violation of license law. A sales associate accepted an earnest money deposit in the form of a check postdated 2 weeks. At the time, her broker was out of town for the day. The seller was aware of the postdated check and authorized the sales associate to hold it for the 2-week period. Subsequently, the seller took a 2-week vacation in Alaska. Two weeks later the sales associate gave the postdated check to her broker, and it cleared the bank. Which is correct? There is: a. no violation because all parties were in agreement. b. no violation because there was no intention to defraud. c. a violation of 475, F.S. The sales associate should have immediately delivered the check to her broker.

d. no violation because no harm was done. - - c. a violation of 475, F.S. The sales associate should have immediately delivered the check to her broker. Sales associated are required to immediately deliver all escrow funds to their brokers. A homeowner selling his home "for sale by owner", received an offer made by a minority member equal to his price, terms, and conditions of sale. The homeowner rejects that offer and later accepts a lower price offer made by a non-minority individual. Should the minority member desire to file a complaint, the burden of proof lies with the: a. FREC b. homeowner c. complainant. d. U.S. Department of Housing and Urban Development (HUD) - - c. complainant. It is the complainant's obligation to prove a violation of federal Fair Housing Laws. The injured party may file a complaint with HUD or sue for damages in a civil action. Mrs. Smith lives in a religious community and hires broker Brown to sell her house. She instructs broker Brown to sell only to a fellow Presbyterian. Which is correct? a. Mrs. Smith can discriminate in this manner because she is an owner-occupant. b. Broker Brown can assist Mrs. Smith because religious discrimination is permitted by owner- occupants. c. The Civil Rights Act of 1866 prohibits this type of discrimination. d. Broker Brown cannot assist Mrs. Smith. - - d. Broker Brown cannot assist Mrs. Smith. Homeowners, acting without assistance, may be permitted to discriminate on a limited basis. However, real estate brokers cannot assist homeowners in marketing the home based on race, color, religion, sex, national origin, handicap, or familial status. A Buyer and Seller are both making claims to earnest money. The Broker is unsure which party is correct. The Broker must: a. notify the FREC within 15 days.

b. submit the matter to arbitration within 30 days. c. hire an attorney and sue both parties. d. return the money to the buyer. - - a. notify the FREC within 15 days. If a broker has a good-faith doubt as to what party should receive the escrowed property (earnest money), the broker must notify FREC, in writing, within 15 days after having such doubt. Which is not a service of real estate? a. appraising b. mortgaging c. exchanging d. leasing - - b. mortgaging A good memory device for this questions is "A BAR SALE", which stands for the services of real estate: Advertise, Buy, Appraise, Rent, Sell, Auction, Lease, and Exchange. A builder building on his or her own lot for a potential purchaser is: a. spec building b. custom building c. commercial building d. residential building - - a. spec building When an improvement (such as a house) is constructed by the developer, contractor, or builder according to his specifications on land he owns with the goal of selling the land and the building, this is referred to as speculative building since the developer, contractor, or builder is not certain whom the purchaser will be or even that he will be able to locate a purchaser. This type of construction is also known as building on spec, spec building, and subdivision building. The FREC is composed of: a. 4 licensees and 3 lay members. b. 5 licensees and 2 lay members.

c. 6 licensees and 1 lay member. d. 7 licensed members. - - b. 5 licensees and 2 lay members. The FREC is composed of 7 members; 4 FREC members must have been licensed brokers for the preceding 5 years preceding appointment. One FREC member must have been a broker, broker associate or sales associate who has been licensed for the preceding 2 years. The remaining 2 members of the FREC must be lay members, that is, persons who are not and have never been licensed. The purpose served by the lay members is to give public input into the regulation of the profession. Bill is a newly licensed broker and wishes to go into business for himself. To comply with Florida Law, Broker Bill could open his escrow account: a. in any bank. b. with any attorney. c. in any FDIC Bank. d. in any Florida-based commercial bank. - - d. in any Florida-based commercial bank. Florida law requires escrow accounts be placed with a Florida-bases title company having trust powers, Florida commercial banks, credit unions, savings associations or if designated in the purchase contract a Florida attorney. Lucy is an office administrator with XYZ Realty. Lucy is unlicensed. A buyer enters the office and hands an earnest money check to Lucy on Monday at 3:00 PM (no holiday involved). What would be the legal requirement for the above? a. Lucy would be unable to accept the earnest money. b. Lucy would have to turn over the earnest money before the end of Tuesday. c. Lucy should deposit the money into her own account and then write a check to the broker at the first opportunity. d. The broker must deposit the check into an escrow account by the end of the business day on Thursday. - - d. The broker must deposit the check into an escrow account by the end of the business day on Thursday. Brokers must place the deposit into an escrow account no later than the end of the third business day following receipt of the item to be deposited, excluding Saturdays, Sundays, and legal holidays. Rule

61J2 stipulates that receipt of funds by a sales associate or an employee (such as the office administrator) constitutes receipt by the broker. To be effective, the rules and regulations of the FREC must be filed with: a. all licensees. b. the Attorney General. c. the Secretary of State. d. the DBPR. - - c. The FREC has legal authority to make rules governing its own operation and the regulation of real estate licensees. These rules are for the purpose of specifying and implementing the law and must not be in conflict with other state or federal statutes. Rules enacted by the FREC are similar to laws in their effect. The quasi-legislative powers cannot be delegated. Rules and other quasi-legislative matters may be conducted only by a quorum vote of the FREC. Approval of the FREC rules is not required. However, they do not become effective until they are filed with the Secretary of State. The relationship between a broker and principal can best be described as a/an: a. agency relationship b. arm's length transaction. c. a caveat emptor relationship. d. limited reliance relationship. - - a. Arm's length transaction and caveat emptor indicate a non- trusting relationship between parties. A broker and principal have an agency relationship with fiduciary obligations, such as honesty, loyalty, and confidentiality. The Telephone Consumer Protection Act of 1991 was amended to establish a national Do-Not-Call registry. For a real estate licensee to be in compliance with this law, what would be correct? a. A real estate licensee must fully identify his license status within 10 seconds. b. Real estate licensees may contact people even if their name is on the list, if they have an established business relationship with that person. c. All FSBO's can be called.

d. Real estate licensees may call any expired listing if you are a member of the MLS. - - b. The Telephone Consumer Protection Act of 1991 (TCPA) allows real estate licensees and other telemarketers to contact individuals with whom they have an established business relationship. The customer may be contacted for 18 months after a business transaction has been concluded. For a sales associate to become a successful broker applicant, he or she must: a. work for only one active broker for one year as an active sales associate. b. have been active for 2 years and complete the required educational course for broker. c. work for one active broker or owner-employer for one year as an active sales associate. d. first deactivate his or her sales associate license. - - b. Qualifications to take the broker state exam include successfully completing the state-required broker's 72 hour pre-license course and maintain and active sales associate license for 2 years in the past 5 years. Which is not included in the definition of real estate? a. oil lease b. timber c. cemetery lots d. vacant land - - c. Cemetery lot salespersons are considered to be in the business of selling personal property and do not need a real estate license. The Fictitious Names Act: a. prevents the use of an alias b. provides for registration of inactive brokers. c. provides for registration of trade names. d. does not apply to persons regulated by the FREC. - - c. A fictitious name is any name used by a person to transact business other than the person's legal name. Normally a trade name must be registered by filing a sworn statement with the Division of Corporations of the Department of State including certification that the fictitious name has been advertised at least once in the county where business will be located. A person licensed by DBPR for the purpose of practicing their profession is exempt from the registration requirements.

Which business entity can broker real estate? a. cooperative association b. business trust c. limited partnership d. syndicate - - c. A brokerage office may not be operated as a business trust, cooperative association, unincorporated association, or corporation sole. Broker Bill has the listing on a property. Broker Bill also produced the buyer. The buyers have asked Broker Bill to arrange for title insurance. Broker Bill calls ABC Title and ABC promises him a speedy closing and two airline tickets to the Bahamas. This is: a. no one's business but Broker Bill. b. illegal. c. legal if the buyers and sellers know and agree to it. d. legal - - b. RESPA mandates that no person or business may give or accept any fee of kickback or anything of value in exchange for referrals relating to a real estate loan transaction. Broker A sells lots in a subdivision and built a shack to be used as a shelter for the public to get out of the sun and rain. The sales associates invite prospects to the shelter to receive literature that contains the broker's name and main office address, which is another location. Transactions are not concluded there. Which applies? a. This is not a branch office and need not be registered. b. The distribution of literature makes licensing necessary. c. This constitutes a branch office and must be licensed. d. Because it is at a sub-division it must be licensed. - - a. A location that is a temporary shelter to get out of the sun or rain would not be required to be licensed as a branch office. Sally submitted an application to take the state exam. Sally passed the state exam for sales associate. Sally may begin operating when:

a. she secures a Broker-Employer. b. she secures a position with an Owner-Employer. c. the Department receives a properly completed form. d. she receives her license in the mail. - - c. Upon passing the state exam, an inactive license is mailed directly to the student. The sales associate's license is activated when his or her employing broker submits a form to the DBPR. Mary Lou, a licensed sales associate, agreed to represent buyers Bill and Betty Smith. The Smith's are going to make an offer on a beachfront condo. Both the buyers and sellers have asked Mary to represent them as an agent in this transaction. What statement is legally correct? a. This would violate Chapter 475, F.S. b. Mary Lou could represent all parties if everyone know and agrees to it. c. A sales associate could not legally represent the buyer. d. Mary Lou would have to be appointed by her Broker as the designated sales associate for the buyer and seller. - - a. Under Chapter 475.01, F.S. a real estate licensee may not operate as a dual agent. The term dual agent means a broker who represents as a single agent both the buyer and the seller in the same transaction. A broker has a listing for $10,000. An offer of $12,000 is obtained. The broker buys the property for $10,000 and resells it for $12,000. This is: a. conspiracy. b. an overage. c. an illegal commission. d. lawful practice. - - b. A broker is not entitled to an overage or secret profit, a form of fraud caused by the broker making more than the agreed or customary commission. Sales associate Long is working with buyer Diaz and seller Jackson in the same transaction. Long's broker may allow Long to be the designated sales associate representing the buyer and appoint another licensee from the same firm to represent the seller. This relationship is permitted it: a. the transaction involves a residential sales.

b. the buyer and seller have assets of $1 million or more. c. the buyer alone makes this request. d. the seller alone makes this request. - - b. The buyer and seller must have assets of $1 million or more. Two people owned a property together before one of them died. The interest of the deceased passed automatically to the surviving owner and not to the heirs named in the deceased owner's will. How did the two hold title to the property? a. tenancy in common b. tenancy for years c. joint tenancy d. severalty - - c. The unique characteristic of this estate is that upon the death of an owner their interest descends and is divided equally among the survivors in ownership, not to an heir. Since the ownership form dictates descent, the interest cannot be left in a will. This is referred to as the right of survivorship. When the owner of a property dies intestate, the property is transferred by a : a. widow's deed b. referee's deed. c. committee's deed. d. personal representative's deed. - - d. The state appoints a personal representative to handle the estate of someone who dies without a will. Real estate taxes are usually paid: a. monthly b. in arrears c. in advance d. to the county property appraiser. - - b. Taxes are paid to the county tax collector at the end of the year (in arrears) for the full year.

A township is: a. 1 square mile. b. 6 square miles. c. 6 miles squared. d. 36 miles squared. - - c. A township is made by the intersection of imaginary lines running north and south called meridians and imaginary lines running east and west called parallels. Townships are 6 miles by 6 miles and contain 36 square miles. How long must a singer taxpayer occupy a personal residence to qualify for the $250,000 exclusion under current tax law? a. 6 months b. 1 year c. 2 years d. 5 years - - c. To be eligible, a property owner must have owned and occupied his personal residence for at least 2 out of the last 5 years. If the parties to a contract desire that provisions concerning time be strictly enforced, the contract should provide: a. a reasonable time will be allowed. b. time shall not lapse. c. time is of the essence. d. the rule caveat emptor applies. - - c. If a time is of the essence clause is inserted into a contract provision, then the parties must adhere to deadlines strictly or be in default. What kind of notice does recording documents affect? a. actual b. constructive

c. implied d. adverse - - b. Constructive notice refers to the recording of documents whereas actual notice refers to parties taking possession. John and Stan buy a parcel of land together to subdivide into building lots. They hire Sally to sell the lots and agree to pay her a salary of $100 per week, plus a 3% commission on each lot sold. Which applies? a. John or Stan must register as a broker. b. Sally must hold an active real estate license. c. John and Stan must register as brokers. d. This is a proper arrangement under the law. - - b. Florida real estate license law mandates anyone who performs any service for another for compensation of any type must be licensed. While an employee paid only a salary may be exempt, payment of a commission on a transaction basis would require a real estate license. The most effective economic use of real estate is referred to as: a. market use. b. market value. c. just use. d. highest and best use. - - d. The highest and best use of a parcel of real estate is the legal and possible use that generates the most return on the land and improvements, if any, when compared to alternatives. The State took a 45 acre farm to use as a State Park. What process did the State utilize? a. condemnation b. adverse possession c. foreclosure d. escheat - - a. Eminent domain gives government the power to take land from an owner through a legal process referred to as condemnation, if the taking is for a public purpose.

Which is not a factor of production? a. product b. land c. labor d. capital - - a. Capital, entrepreneurial ability, land, and labor (CELL) are the 4 factors of production. The right of ingress and egress by a property owner to another to enter upon that owner's property is know as an: a. encumbrance. b. easement. c. encroachment. d. escheat. - - b. An easement is a type of encumbrance where a property owner gives the right of use to another. An encroachment, however, is a physical intrusion by one property owner on another's land. Individual ownership within a multiple-unit dwelling is characteristic of a: a. cooperative. b. vacation lease. c. condominium. d. timeshare. - - c. A condominium owner owns his individual unit. A cooperative owner has shares of stock in the corporation which owns the building. Vacation leases are a type of timeshare ownership. Henry enters into a written agreement to lease an apartment for a 60 day period, creating: a. tenancy at will. b. invalid lease. c. freehold estate.

d. tenancy for years. - - d. A tenancy for years is characterized by duration of a definite period. A tenancy at will has no definite ending date. Freehold estate refers to ownership of indefinite duration. Which is limited to a husband and wife only? a. tenancy in common b. tenancy by the entireties c. joint tenancy d. tenancy for years - - b. Tenancy by the entireties is a form of ownership that can only be held by husbands and wives. The person signing a deed is referred to as the: a. assignor. b. vendor. c. mortgagor. d. grantor. - - d. The term grant is used in reference to deeds. An abstract is a: a. chain of title. b. guarantee of title. c. summary of documents pertaining to property. d. measure used by surveyors. - - c. An abstract is a compilation of documents regarding property history. Chain of title refers to the review of documents to see if the history of ownership is complete. After holding a tax certificate for 2 years, the holder may: a. apply for a tax deed. b. apply for foreclosure. c. foreclose personally.

d. redeem the property. - - a. After 2 years the tax certificate holder may apply for a tax deed. This triggers a tax foreclosure sale with the property being sold to the highest bidder at a public sale. The sale proceeds are used to pay any unpaid taxes from the current year and the amounts owned any holders of tax certificates. Tax assessments must be made on the basis of: a. market value. b. market cost. c. just value. d. fair value. - - c. The Florida Supreme Court has ordered that all real property tax assessments be made by the County Property Appraiser on the basis of just value, which is the fair, honest and reasonable value of property, and is synonymous with fair market value. A married resident of Florida owning property with an assessed value of $100,000 is entitled to a homestead tax exemption from county and city taxes of: a. $25,000 b. $50,000 c. 56,000 d. 100% - - b. Individuals are entitled to a tax exemption in the amount of $50,000 of the assessed tax value if they hold title to real property as of January 1, reside on the property as of January 1, are a permanent resident of Florida as of January 1. Filing must be done before March 1 to qualify for the homestead exemption for that year. The best type of deed for a buyer to receive at closing is a: a. bargain-and-sale deed. b. special warranty deed. c. general warranty deed. d. quitclaim deed. - - c. The general warranty deed is also the best type of deed the seller can provide to a buyer.

How many acres are contained in the NW 1/4 of NE 1/4 and W 1/2 of NE 1/4 of NE 1/4, Section 12? a. 160 b. 140 c. 60 d. 40 - - c. Watch for the word "and" in this legal description and calculate as 2 separate parcels. 640 / 16 = 40 Acres; 640 / 32 = 20 Acres; 40 Acres + 20 Acres = 60 Acres. In a real estate sales contract and a contract for deed, the buyer has: a. legal title. b. equitable title. c. no title. d. ostensible title. - - b. Under a contract for deed, the buyer usually has the rights of possession, occupancy, use, enjoyment, and possible profit from the use of the property. The contract also creates an equitable title interest for the buyer. Bill and Betty are married and wish to buy a home, but when one dies, they want that share of the home to pass to their children rather than each other. Bill and Betty want to hold title as: a. tenants by the entireties. b. joint tenants. c. tenants in severalty. d. tenants in common. - - d. A tenant in common's interest in a property will descend to his or her legal heirs or be conveyed in accordance with their will. In the question above the married couple wishes to transfer their interest to their children rather than each other. Defects in title that cannot be cured by a quitclaim deed may be cured by: a. recording. b. title insurance.