Flash cards

An individual who has fulfilled all of the academic and experience requirements for a real estate broker's license, but who operates as a sales associate in the employ of a supervising broker is an

active broker associate

A member of the U.S. armed forces is transferred to active duty in Jacksonville, Florida.  The service member's spouse holds a valid New York real estate license.  The service member's spouse desires a Florida real estate license.  Which statement is true?

Upon an approved application for a license, the DBPR must issue the spoise a Florida real estate license.

Which statement is TRUE regarding owner-developers?

The owner-developer's sales staff must hold real estate licenses to be paid a commission

An individual who has earned a four-year degree or higher in real estate is NOT exempt from which education requirement?

Continuing education

Which activity is NOT a real estate service that requires a real estate license?

Mortgaging real property

Which statement is FALSE regarding mutual recognition agreements?

Mutual recognition applicants may be Florida residents or non residents

Which information MUST be disclosed on the license application?

A misdemeanor offise that occurred when the applicant was enrolled in college 10 years ago

Which of the criteria listed below is NOT required to hold a Florida real estate license?

Proof of U.S. citizenship

A man who dies without leaving a will (intestate) owned two farms and a house.  The court appointed a personal representative to dispose of the real property in the decedent's estate. The personal representative

is exempt from a real estate license

Eight months ago a licensed real estate sales associate who was a caregiver for their sick parent did NOT complete the post-license education requirement by their initial license expiration.  Which state applies to this situation?

The Commission has no legislative authority to extend the post-license requirement beyond six-months.

A license applicant has completed the 63-hour sales associate pre-license course.  Within what period of time after being issued a course completion slip for the pre-license course MUST the applicant pass the state license exam?

Two years

What type of evidence unless refuted by evidence to the contrary will be accepted by the court as a fact?

Prima facie

Which Florida statute governs the DBPR and the professions regulated by the DBPR?

Chapter 455, F.S.

The spouse of a retired Naval Officer holds a valid Connecticut real estate license.  The spouse submits an application for a Florida real estate license. Which statement is TRUE?

The spouse qualifies for a reciprocal real estate license pending a satisfactory background check

A license applicant is NOT required to disclose which offense on the application?

Issued two speeding tickets within the last 12 months

Florida Statutes prohibit members from serving on the Commission for more than

two consecutive four-year terms

The Commission's authority to promulgate administrative rules is part of its

quasi-legislative powers

Which statement regarding the Division of Real Estate (DRE) is FALSE?

The director of the DRE is appointed by the FREC chairperson.

The Commission is obligated to report any criminal violation of Chapter 475, F.S., when knowledgeable of such violations, to the

state's attorney having jurisdiction.

The Commission is NOT empowered to impose which disciplinary action against a licensee?

Sentence a licensee to six months' imprisonment

the licensee status that results when a license is NOT renewed at the end of the license period is referred to as

involuntary inactive

A Florida broker accompanies her spouse when he goes on active duty in Ohio for five years.  The broker is not active in real estate during this time.  To renew her Florida broker's license within two years of her spouse discharge, she

need not have to complete any continuing education or reactivation education for those five years

A sales associate's non-initial license expired 20 months ago. What MUST this sales associates do to again work as a real estate sales associate?

Complete a 28-hour Commission prescribed education course

The FREC may reinstate a null and void license when the licensee

provides proof of physical hardship or economic hardship that prevented the licensee from renewing

A broker wishes to be issued several broker licenses for business reasons. She may

request multiple licenses

Which FREC power is part of the FREC's quasi-judicial responsibilities?

Make determination of violations

An owner-developer employs five licensed sales associates and pays each sales associate a commission for sales of the owner-developer's lots.  Which is TRUE of the owner-developer.

The owner-developer must register with the DBPR but does not have to be licensed

The Florida Real Estate Commission consists of

four real estate licensed brokers, one additional real estate licensee, and two consumer members

A nonresident who holds a Florida real estate license MUST

become a Florida resident within the initial license period

Which duty is NOT a duty in all three types of brokerage relationships?

Use skill, care, and diligence

A real estate broker, when working in a single agent relationship, is typically authorized by a principal to act as a

special agent

A broker is a single agent for a buyer who has entered into a written contract to purchase a new house from a builder. The builder is unable to complete construction by the required date.  The builder and the buyer agree to rescind the contract.  What MUST the broker do with the canceled contract?

The broker must retain the contract and brokerage disclosures for five years

The property owner of a listed property has instructed the broker not to show the property when the owner is out of town.  A potential buyer asks the sales associate to show the listed property; however, the owner is out of town.   How should the sales associate handle the situation?

Explain to the buyer that the sales associate can not show the property until the owner returns.

A sales associate has been directed by her real estate broker to commit an unlawful act. The sales associate should

refuse and withdraw from the relationship

The Broker and the seller agree to single agency representation.  The broker MUST

present the seller with the single agent notice and give the sell a copy of the notice

A sales associate or broker associate owes fiduciary duties

to the principal as does the broker, with whom the associate is registered, including those situations where the sales associate, for tax purposes, is an independent contractor

Which statement is FALSE concerning a transaction broker relationship?

A transaction broker representing both parties in the transaction must negotiate as a facilitator, showing no favoritism to either the buyer or the seller in the negotiation.

The brokerage relationship disclosure requirements in Chapter 475, F.S., do NOT apply to

improved residential property of no more than four units

In Florida, which brokerage relationship is NOT legal?

Dual agent for the buyer and seller in the same transaction

A transaction broker may disclose, without exception

to the buyer, the listed price and physical characteristics of the home

A transaction broker of residential property has which duty(ies) and responsibility(ies)?

to disclose any latent defects to the buyer

Which statement applies to designated sales asssociates?

Designated sales associates have the duties of a single agent

Duties owed in a no brokerage relationship include

accounting for all funds

Court decisions (case law) build on the body of

common law

When purchasing a commercial property from a seller without the services of a real estate professional, a buyer would be well advised to carefully verify information conveyed regarding the property.  This is sometimes referred to as

caveat empror

Which real estate form does NOT require a signature

No Brokerage Relationship disclosure form

Real property ads and yard signs of a licensed broker MUST include the name of the

broker or brokerage firm

During a lunch meeting, three brokers discuss how to increase their business.  They decide that broker A will work exclusively northeast of downtown, broker B will work exclusively northwest of downtown and broker C will work exclusively south of downtown.  This is a

violation of antitrust laws called market allocation

A broker associate is ordering business cards.  May she put "broker" on the card instead of "broker associate"

No, she must use the title "broker associate"

A sales associate is selling her own property "by owner".  Which statement is TRUE regarding real estate licensees selling property "by owner"?

If she uses her own phone number in the ad, the licensee should disclose to a buyer prospect that she is a real estate licensee at eh first point of meaningful negotiation.

Commingling occurs when a broker

deposits earnest money in a business operating account

Rebecca K Smmis, broker of Executive Homes, Inc., is ordering the sign for her new office.  She is NOT required to have what information on her sign?

1000 N Gulf to Bay Blvd

A sales associate receives a good-faith deposit on Monday morning. The broker is in the office days, so he gives the deposit to his broker that same day.  By the end of business on what day must the broker deposit the funds into the escrow account?


If both buyer and seller claim the earnest money deposit in a broker's account, how much time does the broker have to notify the FREC in writing?

15 business days

A broker's escrow account may NOT be in

an insurance company located in Florida

Which statement is FALSE regarding unearned fees?

Real estate licensees are prohibited from sharing part of their commission with the buyer or seller in a real estate contract unless the buyer or seller is a real estate licensee

State and Federal telemarketing law restricts telephone solicitation calls to what hours?

8:00 am to 9:00 pm

A dispute over escrowed funds arises between the buyer and seller.  The broker notifies the FREC of the conflicting demands and requests that the Commission issue an escrow disbursement order. The FREC informs the broker that it declines to issue an escrow disbursement order (EDO) and the broker must use an alternative settlement procedure. Which alternative method CANNOT be used to resolve the matter?

Petition for review or appeal

The broker of a large office hired a certified public accountant (CPA) and a full-time bookkeeper to manage the escrow account.  Which statement is TRUE regarding this situation?

The broker must be a signatory on the escrow account

A broker has an agreement with a local rental car agency.  The agreement stipulates that the broker will pay a $25 referral fee to the rental car agency for each prospective buyer referred to the broker. Which applies?

The broker is in violation of Chapter 475, F.S., because he has promised to compensate an unlicensed person for the referral of real estate business.

In which situation is the broker NOT exempt from the notice requirements regarding conflicting demands?

A dispute over escrow funds related to a property inspection

What did a new home cost if the state documentary stamp tax on the deed was $546


The country property appraiser has assigned an assessed value of $117,500.  The property is homesteaded. The county charges the following millage reates: city 10 mills, county 10 mills, and the school district 6 mills. Calculate the property taxes.


A prospective tenant was recently transferred to Jacksonville.  He was not familiar with the city so he purchased a rental list for $100 from a local real estate company. The prospective tenant referred to the list while looking for an apartment but was unable to locate a suitable unit.  He has requested a refund of his $100. Which applies

He is entitled to a refund of $75 if requested either verbally or in writing within 30 days

The owner of an office building has signed an exclusive listing agreement with a broker. The listing agreement contains information about the  broker's lien rights in accordance with Part III of 475, F.S. If the owner sells the property without paying the broker a commission, the broker

may place a lien against the seller's net proceeds from the sale

A sales associate has hired a licensed personal assistant to help increase the sales associate's business.  The licensed assistant will receive $12 an hour for administrative work and 35% of any commission earned.  The licensed assistant

may be paid by the sales associate for any administrative work but must be paid by the broker for commissions earned

May escrow funds be moved from a non-interest-bearing account to an interest-bearing account?

Yes, provided the broker secures the written permission of all interested parties to the contract before moving the funds.

A real estate sales associate might lawfully accept an extra commission fro the difficult sale from

the broker-employer

If a licensee accepts a postdated check as an earnest money deposit on real property, which applies?

The seller's approval must first be obtained

Which statement is true regarding a sales associate forming a professional association?

Forming a professional association allows the sales associae to work independently of the broker

A sales associate has helped a buyer locate a home for which the buyer has made an offer to purchase. The buyer gives the sales associate an earnest money check of $2500 payable to a title company. Which applies?

The sales associate must indicate the name, address, and telephone number of the title company on the purchase and sale agreement

Florida law requires brokers to have which item in the broker's office?

Real estate transaction files

Which business entity would obligate all principals as personally liable for organizational-incurred debts?

General partnerships

The legal term that applies when two real estate brokers share office space in such a manner that the public is led fraudulently to believe that a partnership exists if referred to as

an ostensible partnership

A licensed real estae sales associate and broker desire to open a new real estate brokerage firm as general partners.  Which statement applies to this situation?

A sales associate may not be a general partner in a real estate brokerage partnership

Which entity or individual may NOT be licensed under a trade name?

Real estate broker associate

A joint venture usually is created to

carry out a single project

On July 1, a broker received conflicting demands from a buyer and seller regarding a  good faith deposit. Twelve business days later, the broker is unable to  resolve the conflict between the parties and notifies the FREC. How many days does this broker have remaining to implement a settlement procedure?

18 business days

Which statement is FALSE regarding the Junk Fax Prevention Act concerning unsolicited advertisements to fax machines?

The Junk Fax Act regulates unsolicited advertisements to residential fax machines only

What action would likely result in a charge of conversion?

A broker place escrow funds in the operating account and used the funds to cover office expenses.

An individual does NOT intend to engage in real estate activity. However, he does plan to be an officer of a real estate brokerage corporation. Which status is required?

Registered with the DBPR

An applicant was issued a sales associate's license by mistake. She has been informed that the license has been revoked. Which applies?

The action is referred to as "revoked without prejudice"

Which statement concerning a consumer complaint is FALSE?

The person named in a complaint must be a real estate licensee

If a legally sufficient complaint has been filed, investigated, and found valid, the next step in the complaint process is

probable cause determination

Salse advertising concerning real estate information is what type of penalty?

Second-degree misdemeanor

A sales associate put a "for sale by owner" sign on his property with no intention of selling his home. The licensee used the sign as a way to reach prospective buyers for his listed properties. The FREC may find the sales associate guilty of which violation?


A sales associate was issued a citation. How many days does the licensee have to either pay the citation or file an objection to the alleged violation?


Which statement is TRUE regarding a real estate sales associate who is convicted of driving under the influence (DUI)?

The sales associate must report the DUI conviction within 30 days to the Commission

A sales associate disputes the material facts and allegations in a formal complaint. Which statement if TRUE regarding this situation?

The matter must be heard in a formal hearing before an administrative law judge

A DBPR investigator is authorized, in cases that involve a first-time offense of a minor violation, to issue

a notice on noncompliance

What is the result of failing to respond timely to the Election of Right form?

The case will proceed as an informal waiver hearing before the FREC

A broker followed the instructions in an escrow disbursement order (EDO).  The broker was later sued by a party to the real estate transaction. The lawsuit resulted in a civil judgment and a payment of $10,000 from the recovery fund. As a consequence, the FREC

will take not action against the broker

Which statement regarding the recovery fund is FALSE?

An unlicensed spouse of the offending licensee is eligible for reimbursement

A claimant has obtained a judgment against a licensee.  The judgment includes liquidated damages of $15,000, punitive damages of $12,500, and attorney fees of $2,500. The claimant may be awarded what amount from the recovery fund.


Which statement is FALSE regarding the probable-cause panel?

A former Commissioner with an inactive real estate license may serve on the panel

Which statement concerning the requirement for a licensee to self-report is FALSE?

Licensees must report only felony convictions

An agreement as to the facts of the case and the penalty reached between the DRE attorneys and the licensee is called

a settlement stipulation

Which violation is a third-degree felony?

Reproduction or theft of a DBPR real estate license exam

The maximum payment from the Real Estate Recovery Fund for a judgment issued in connection with a single real estate transaction is


A broker followed the instructions of an escrow disbursement order (EDO). The seller sued the broker. Which expense associated with the EDO CANNOT be reimbursed from the recovery fund?

Punitive damages

An independent special district authorized by statute to issue bonds to raise funds to construct infrastructure for a residential development is referred to as a

Community development district

A real estate licensee who is respecting a tenant in a commercial rental wants to share part of her commission with the tenant.  Which statement is TRUE regarding this situation?

Real estate licensees may share their commission with a party to a lease agreement, provided it is disclosed to all interested parties

When the value of a business’s tangible assets is subtracted from its purchase price, the amount remaining represents the

price paid for intangible assets, such as goodwill

Which type of estate in real property is held for a definite number of years?

Estate for years

In the government survey system of legal descriptions, a township measures

6 miles square

An apartment building consists of 430 units. The complex is 90% occupied. How many units are vacant?


In Miami-Dade County, Florida, a tenant leased ad two-bedroom, single-family home from the landlord in June for a one-year period. In November, the tenant told the landlord that she had no source of hear and requested he installl a heater. The landlord said he would install the heater, but it would result in a rental incread of $50 per month. Which statement if correct?

The landlord is required to provide heat, and the rent was established by lease

Which remedy for breach of contract asks the courts to force the other party to proceed as the contract states?

Specific performance

The “highest and best use as though vacant” is considered to be the use that will result in the highest return to the



A seller has listed his property with a real estate company. The seller has informed the sales associate that he will not sell his condominium to college students. Which statement if TRUE regarding this situation?

Although this may be a poor business decision is it not a violation of the Fair Housing Act.

A buyer comes into the office and hands the receptionist an earnest money deposit on

Wednesday (no legal holiday involved). Which statement applies to this situation?

The broker must deposit the check into the broker’s escrow account no later than the end of business on Monday of the following week

A broker’s principal is away on vacation. The broker receives an offer of $267,000 for the principal’s property. Before the principal returns, the broker receives a second offer of $264,000. The broker should

Submit both offers to the principal

Which statement is FALSE regarding the renewal exemption for members of the U.S. armed forces?

The renewal exemption applies to a licensed spouse provided the service member was stationed on active duty in Florida

A licensed real estate broker and his wife jointly owned a two-person corporation for profit registered with DBPR as an active real estate brokerage firm. The wife was registered as an officer of the corporation buy had never qualified to be licensed. The broker and his wife mutually agreed to a divorce, and the court awarded the wife the profitable real estate brokerage corporation as part of the property settlement. The wife retained her married name, and the husband organized a new brokerage firm.  Which is correct?

The wife cannot continue the operation of the brokerage firm because she is not a licensed broker

The broker defrauds the buyer of $53,500 good-faith deposit. The buyer sues the broker and is awarded a judgement in the amount of $78,500 for the orginal $53,500 deposit plus $25,000 in punitive damages. The buyer was unable to collect the judgment from the broker, who he request relief from the Florida Real Estate Recovery Fund. What is the maximum amount the FREC can reimburse the buyer?


A sales associate has earned a commission of $2,400. The broker for whom she works pays her $2,000 and uses the reminder of her commission to pay office expenses with a promise to pay the remaining $400 when he can afford to do so. The broker is guilty of


Which task is typicallly the responsibility of a rental agent?

Find a tenant for the property for a fee

The Federal law that prohibits a seller from requiring the homebuyer to use a particular title insurance company as a condition of sale is the

real Estate Settlement Procedures Act

A tenant continued to occupy the premises following expiration of the lease. The tenant continued to pay monthly rent to the landlord. The tenant is a

Tenant at sufferance

A broker receives conflicting demands from he buyer and seller. The broker properly notifies the FREC and request an escrow disbursement order (EDO). However, before the order is issued, the buyer and seller sue one another. What must the broker do in this situation?

The broker must notify the FREC of the situation within 10 business days

The purpose of the Save Our Home amendment is to

Limited the increase in the assessed value of homestead property

A real estate broker’s neighbor referred a friend to the broker. The neighbor’s friend purchased a home through the broker. To show his appreciation, the broker may

Express his thanks to the neighbor

A broker listed a commercial lot for $98,000. Later, the broker learned that a firm that owned the building adjoining the seller’s lot was going to need the lot for expansion and would be willing to pay up to $130,000 for the lot. The broker told the seller that she wanted to terminate her brokerage relationship and buy the lot herself for $96,000. The seller agreed to the offer and sold the lot to the broker, who then sold the lot t the neighboring firm. This is an example of


What is the maximum allowable homestead exemption for a widow who is veteran with a 25% disability due to service-connected injuries?


The appropriate type of brokerage relationship is determined by the


A contract fails to close. Both the buyer and the seller make demands for the earnest money deposit. The matter is to be resolved in a court of law. The broker is not making a claim to receive any of the funds. Which court procedure is appropriate in this situation?


Which statement is FALSE regarding brokerage relationship disclosure requirements?

A licensee who does an open house at a listed property must give each prospective buyer who attends the open house a no brokerage relationship notice

The clause in a mortgage that ensure that the mortgage cannot be foreclosed so long as all payments are current and other conditions are fulfilled is the

Defeasance clause

When the probable-cause panel decides that a real estate licensee’s activities may have been grounds for suspension or revocation, the DBPR files a

Formal complaint

An unlicensed out-of-state resident referred a prospective buyer to a Florida broker. The Florida broker reimbursed the out-of-state resident for the out-of-pocket expenses associated with making the referral. Which statement applies to this situation?

Both the out-of-state resident and the Florida broker have violated Chapter 475 because it is illegal to pay an unlicensed person for performing real estate services

Which brokerage relationship duty applies only to single agents?

Full disclosure

A real estate company is the exclusive representative of the developer of a new subdivision. The real estate company’s sales staff will temporarily work out of a mobile home that the developer has placed in the subdivision until the model home is completed. Transactions will be closed at the main office. Does the real estate company need to register the mobile home as a branch office?

The mobile home is a temporary shelter and is not considered to be a branch office

Which term is associated with additional land resulting from the gradual receding of water that now belongs to the property owner?


A sales associate is employed by a developer to sell homes in a new subdivision. The developer is also building in two other subdivisions, which are organized as affiliated companies. The developer wants to have the sales associate sell homes in the other subdivisions. Which statement applies?

The sales associate may request and be issued a group license so that the associate can work any of the developer’s subdivision

A broker received an offer and an earnest money deposit on Thursday, July 10, at 9:30 am. The owner of the property will not be in town until Wednesday, July 16, to consider the officer. The broker’s next normal banking day will be Monday, July 14; however, he has a large safe built into the wall of his office. FREC rules require the broker to

Deposit the earnest money in his escrow account by the close of business on Tuesday, July 15

A buyer entered into a purchase and sale agreement to buy a seller’s condominium. Two days later, the buyer canceled the contract and requested that the broker return the earnest money deposit. Which statement applies to this situation?

The broker may return the earnest money deposit because it is within the buyer’s three-day rescission period

A Georgia broker has a prospective buyer who wants to buy some land in Florida for the purpose of building between 100 and 150 luxury condominiums. The Georgia broker contacts a Florida broker to help locate some suitable tracts for the buyer and show her five separate tracts. Their cooperation pays off when the buyer purchases a 60-acre tract for $558,000, and they evenly divide a 10% commission. Which is MOST correct?

Both brokers have violated Chapter 475, F.S.

A brokerage organized as a limited partnership plans to register as a real estate broker with the DBPR. The limited partnership MUST

Have all general partners who will deal with the public licensed as active brokers

A broker who receives conflicting demands regarding the disbursement of escrowed property must notify the FREC within what period of time?

15 business days

Which type of deed provides the greatest protection to the grantee?

General warranty deed

In an effort to obtain more listings and subsequent commissions, licensee urges people in an older neighborhood to sell because “a group belonging to a religious cult has recently moved in to the neighborhood and property values will fall.” This is an example of the illegal and unethical practice called



The mandatory distance between lot lines and building improvements is known as


If the interest paid for borrowed funds is greater than the overall rate of return to an investor, this is an example of

Negative leverage

Two owner-developers are both active real estate broker licensees. Together they hire a certified accountant (CPA) who is not a licensee to supervise the overall development of a large tract of land they are jointly developing into a high-quality, recreation-oriented subdivision. The accountant is not experienced in selling real estate; however, he is an astute businessman and manages to exceed the first 18 months’ sales projections in just 9 months. As a reward for achievement, the owner-developers agree to pay the accountant a bonus of 15% of the amount in excess of the first 12 months’ sales projections. Which is MOST correct?

All three individuals have violated Chapter 475, F.S.

Which item would be MOST likely classified as a fixture once incorporated into real property?

Ceramic tile

Developers of 25 or more units must provide buyers with which document prior to signing the sale

Property report

An investor decides to bid on a bungalow home at a foreclosure sale. The investor believes that the fair market value of the home is approximately $184,000. There is a first mortgage lien of $168,000 held by the lender who has initiated the foreclosure action. The property is homesteaded by the current owner. Property taxes are two years in arrears. Which statement applies?

The investor will be responsible for the prior property tax lien

Which statement does NOT describe a puchase money mortgage

The seller retains legal title until the buyer has made all of the mortgage payments

A real estate licensee evaluates a property for the purpose of helping a potential seller determine an asking price. The licensee MUST refer to the value as

A comparative market analysis (CMA)

A woman works in an onsite apartment rental office. Her employer pays her an annual salary of $80,000 and an end-of-year bonus, which is based on the number of new tenants the woman finds for the apartments. The woman

Must be licensed broker or sales associate to perform these duties

To be enforceable in a court, a contract for the sale of real property must

be in writing and signed by both parties

When a buyer agrees to make monthly mortgage payments on the house he is buying but takes no responsibility for the note, he is

purchasing the house subject to the mortgage

Which estate is an example of a nonfreehold estate?

Estate for years

A married man purchased an investment property in his name only. If he later divorces, how will the investment property be treated?

as a marital asset

A son, who is not licensed, helped his father by finding buyers for his father's lots. The son did not receive any money, but his father agreed to give the son a choice lot, free and clear, after the son found buyers for five lots. The son was offered a well-paying job some distance from home after he found buyers for only three lots. The son took the job and did not earn his lot. Which statement is correct?

The son and father both violated Chapter 475, F.S., due to intent

An 83-year-old widow owned a popular restaurant business. Her business assets consisted of goodwill, regular customers, all the restaurant equipment, and the building housing the restaurant. The land was leased and had 54 years remaining on a 99-year lease. The widow told her headwaiter that she would like his help in selling the business for $200,000. The widow agreed to five the headwaiter $7,000 if he found a buyer for the business. The headwaiter approached one of the regular customers who agreed to buy the business if the headwaiter would contract to manage the business. An agreement was reached, and the widow sold the business. When the widow learned that the headwaiter was going to take over as manager, the widow refused to pay the promised $7,000. Which is MOST correct?

The headwaiter violated Chapter 475, F.S. and Chapter 455, F.S.

Curable functional obsolescence results in a change in value that is

greater than the cost to cure the defect

When a broker is unable to convince a property owner that the listing price should be reasonably close to the property's current market value, the broker should

diplomatically decline to accept the listing

Which action will terminate a brokerage relationship?

the listing agreement expires

Which offense is a misdemeanor of the first degree?

Collecting a fee for inaccurate and out-of-date rental information

Streets, parks, and school sites are transferred from developers to counties or communities by an act or process called


A mortgage note provides legal evidence of a personal debt and also

pledges all the assets of the mortgagor

A negotiated agreement between the attorneys for the Division of Real Estate and the attorney for the subject of administrative complaint is referred to as

a stipulation

In determining market value, the principle of substitution is BEST described as basis for

all three approaches to value

Which statement is FALSE regarding a new condominium complex?

Unit ownership requires the purchase of shares of stock in the association

When a new lending agreement releases the seller and substitutes the buyer as the party liable for the mortgage debt, this act is called


How is mortgage interest on an assumed mortgage entered on the closing document?

debit seller and credit buyer

The risk associated with defaulting on borrowed funds to finance an investment is referred to as

financial risk

The Florida Vacation Plan and Timesharing Act requires that purchaser of resale time-share periods be give how many days to cancel the purchase contract?

10 calendar days

A buyer offered $350,000 for a home. The seller countered at $360,000. The buyer did not accept the seller's counteroffer. The buyer told her broker that she was revoking the counteroffer and accepting the buyer's original offer. Which statement is TRUE regarding this situation?

The seller cannot accept the original offer because is was nullified by the counteroffer

Which Florida statue governs the executive branch of Florida government?

Chapter 20, F.S.

The purpose of recording documents relating to real property is to


give constructive notice to future purchasers and creditors

The interest that a buyer receives upon executing a contract for purchase and prior to the closing is

equitable title

The real taxable value of a Florida resident's home will NOT be known until the

total existing exemptions are subtracted from the current assess value

A Florida broker purchased some raw acreage and developed it into several hundred building lots. The Florida broker contacted a broker in Alabama and offered the Alabama broker $150 for every prospect he sent to Florida who bought a lot from the Florida broker. Which statement is correct?


The Florida broker may pay a referral fee to the Alabama broker.

A sales associate obtained an offer from an inventory to buy an undeveloped apartment site. The investor refused to sign any sales agreement until she returned from a vacation in Alaska. While the investor was on vacation. the sales associate took a two-week vacation but still returned several days ahead of the investor. Within a few days after returning, the investor contacted the sales associate and purchased the apartment site. Neither the sales associate nor the investor was aware that, during their vacations, the zoning for the property had been changed from multifamily to single-family zoning, thereby prohibiting the use of the property the investor had intended. The investor brought suit against the sales associate and his broker, which resulted in collection of damages. What legal basis did the investor have for her suit?

Culpable neligence

To determine the correct amount of property tax for property tax, multiply the tax rate by the

taxable value of the property

Which description fulfills the experience requirement to become licensed as a real estate broker?

Registered for the last 24 months as an active New York sales associate

On Tuesday morning, a sales associate receives an offer on a listed property. The offer is accompanied by an earnest money deposit. By the end of business on what day MUST the broker deposit the funds in escrow?


Persons purchasing real property located in the United States from foreign sellers are required to withhold up to what percentage of the amount realized on the sale?


A real estate broker followed the instructions of an escrow disbursement order and returned the $15,000 deposit to the buyer. The seller sued the broker and obtained a judgment against the broker for $15,000 in liquated damages plus $10,000 in attorney's fees and court cost. The broker incurred $3,000 in attorney's fees. The Commission is authorized to pay.


A broker manages a residential rental property. The owner wants another real estate office to manage the property and asks the broker to transfer the security deposits to the new rental agent. Which statement applies to this situation?

The broker must transfer the funds to the new agent along with final accounting

In the cost approach to estimating value, land value is commonly estimated by

comparable sales analysis

The VA total monthly obligations ratio is determined by dividing the total monthly

obligations by the gross monthly income

Where the government survey system is used to describe real property, the primary north-south line and the primary eat-west line that form the basic reference point for the system are correctly called the

principal meridian and base-line

An up-front fee paid to the lender in exchange for a reduced interest rate is referred to as

discount points

For income tax purposes, the term adjusted sale price means the sale price of a home

less allowable fix-up and selling expenses

The real estate term situs refers to

value derived from preferred property locations

The master plan developed by planning commissions to manage local growth and preserve living conditions is called the

comprehensive plan

An investor purchased two adjoining lots, each measuring 150' across the front and 180' in depth. He paid $7,500 for each lot. The investor divided the property into three equal lots and sold each one for $125 per front foot. What percentage of profit did the investor make on the original investment?


A homebuyer has arranged a conventional mortgage of $135,000 at 5% interest for 30 years. By agreement, the first three monthly payments are to consist of interest only with payment on principal to begin with payment number four. How much total interest will the homebuyer pay during the first three months?


The closing date is September 10. Day of closing belongs to the seller. Property taxes for the year are $1,700. Calculate the rotation using the 365-day method.

$1,178.36 debit seller, credit buyer

The sale price of a home is $165,000. A savings association has agreed to lend 80% of the sale price. the prospective buyer has made a binder deposit of $12,200. How much much more cash must the buyer produce at closing?


A developer purchased a tract measuring 1,452 feet by 1,200 feet for $3,000 per acre. The sale contract provided for the developer to pay the seller 29% of the purchase price in cash, the developer to assume a $50,000 existing first mortgage, and the seller to take back a new second mortgage for the remainder of the purchase price. How much must the seller pay for doc stamps on the deed?


A buyer bought a new home for $230,000. The lender agreed to loan the buyer $200,000 at 3 1/2% interest with 6 points discount. What approximate yield will this provide the lender?


Which parcel contains 2 1/2 acres of land?

SW 1/4 of the NE 1/4 of the NW 1/4 of the NE 1/4

A residence is homesteaded. the city tax rate is 8.2 mills, the county tax rate is 7.3 mills. The homeowner has qualified for homestead exemption. The home has an assessed value of $230,000. What does the homeowner owe for property taxes?


A property owner asks a licensee to estimate the value of his office building prior to listing it for sale. The building is seven years old, and it would cost $90,000 to reproduce the structure new. The economic life of the structure is estimated at 40 years. The land is valued at $20,000. The owner paid $70,000 for the building and land five years ago. What is the estimated value of the property?


Sales Associate A listed a parcel of undeveloped commercial property for $215,000. The agreed sale commission is 10% on the first $50,000, 5% on the next $100,000, and 3% on any balance. Sales Associate B sold the property for $210,000, and the owner paid the sales commission per the listing agreement. The broker paid the listing sales associate 10% of the total commission and split the remaining commission 65% to Sales Associate B and 35% to himself. What was Sales Associate B's commission?


On March 1, an investor bought a 10-unit apartment building for $360,000. The investor paid $72,000 in cash and obtained a 30-year mortgage in the amount of $288,000. A review of the accounts over the preceding two years revealed that vacancy and collection losses were stable at 4%. Potential gross income for the property is $70,400 and the operating expenses are $12,770, including reserve for replacements of $2,812. Mortgage payments are $2,742.71. Calculate the net operating income.


The United States Supreme Court ruling in Jones v. Mayer, as it pertains to real property, focus on


The Civil Rights Acts of 1968 mad discrimination illegal if based on any of these criteria EXCEPT


Which statement is TRUE regarding a real estate broker who provides property management services?

Brokers are allowed to keep up to $5,000 of personal funds in a property management escrow account

Which property is NOT covered under the Fair Housing Act?

Commercial real estate

A protected class under the Fair Housing Act is

national origin

The act of inducing homeowners to sell by stating that minority persons might move into a neighborhood is called


The act of refusing to make mortgage loans or stating different mortgage terms or conditions based on racial groups is called


The act of channeling buyers to a particular area either to maintain or to change the character of a neighborhood is called


Developers selling lots in a subdivision of 25 or more lots that is nationally promoted through advertising must provide potential buys, prior to their signing a purchase contract, with a

Property Report

Under which circumstance may a real estate licensee lawfully refuse to show a listed property to a member of a protected class who has specifically requested to see the property?

When the owner is out-of-town and has instructed the broker not to show the listed property when the owner is away on business

When a security deposit or advance rent is required by a landlord, the landlord may

post a surety bond in the total amount of security deposit/advance rent or $50,000, whichever is less, and pay the tenant 5% per year in simple interest

A tenant in a 50-unit apartment complex paid a $1,200 security deposit. The tenant received a receipt for the $1,200. Three weeks later, the landlord informed the tenant by phone the name of the bank where the tenant's security deposit was held. Why has the landlord violated F.S. 83?

The landlord failed to notify the tenant in writing of the bank name, address, and other information concerning the $1,200 security deposit

If a tenant vacates rented premises at the end of a lease, how many days does the landlord have by law to notify the tenant if the landlord intends to claim a part of the tenant's security deposit?


With which government agency do developers of subdivisions with 100 or more lots have to register?

Consumer Financial Protection Bureau

Any legal remedy sought by a tenant or a landlord under the Florida Residential Landlord and Tenant Act must be through the

civil courts

If a brokerage office provides property management services to property owners, and collects and holds rental funds on behalf of the owner how must the broker account for the advance rent and security deposits?

The broker must deposit the advance rent and secuirty deposits into an escrow account and prepare reconciliation statements for the account each month

The Florida Residential Landlord and Tenant Act requires landlords to approve or deny the rental application of an active duty member with how many days?


The rights of an owner of land that abuts flowing water are referred to as

riparian rights

A tree growing near the corner of a lot is ordinarily considered to be

real property

Real property can be converted into personal property by


The owner of an automobile parts business rents space in a commercial shopping center. The business owner has installed shelving and display racks. The shelving is bolted to the floors and the racks are attached to the walls. The racks and shelving are

trade fixtures

How many days' notice is required to terminate a month-to-month tenancy at will?


An estate or interest in real property that can measure by the lifetime of an individual is a type of

freehold estate

A father and daughter brought a commercially zoned tract for cash. The property was deeded to them "with full and legal rights of survivorship." The father and daughter are

joint tenants

What is the term for water rights associated with oceanfront property?

Littoral rights

A type of concurrent ownership that provides an undivided interest in the property with no rights of survivorship is

a tenancy in common

Three persons were co-owners of a parcel of real property. One owner died, and his ownership passed to the two remaining co-owners. The deceased owner was

a joint tenant

A woman and her sister, who are both married, want to go into business together and are purchasing a parcel on which to build a restaurant. To protect each of their families, how should they take title?

tenancy in common

The owenership right that permits an owner of real property to sell, mortgage, dedicate, or otherwise dispose of all or any portion or the property is referred to as the right of


Besides ownership between spouses, the MOST frequently used form of co-ownership of property is

tenancy in common

One criterion used to determine if an item in real property is a fixture is whether the real property would be damaged by removing the item in question. What "test" for fixtures does this describe

method or degree of attachment

Developers of new cooperative units must give buyers a disclosure with informs buyers that they may cancel within how many days of signing the contract

15 business days

Two buyers purchased a three-story building and took title as legal joint tenants. One died estate. The surviving owner now owns the building

in severalty

Which disclosure document is required for the sale of condominiums from a developer of more than 20 residential unets

estimated operating budget

An interest in real property that  exists for a  designated period, created by a property executed leas agreement, is

an estate for years

The type of time-share ownership that the usage rights revert back to the developer-seller is

right to use

A mother deeded a beachfront villa to her son who suffered from a terminal illness. The deed specified that the property was to return to the mother or her heirs when the son died. The estate owned by the mother, or her heirs, is

an estate in reversion

Salaried employees sell time-share units for a large owner-developer in Ft Myers, Florida. Each December, the employees receive a year-end bonus based on sales production for the year. Must the employees be licensed as real estate associates?

Yes, the must be licensed as real estate sales associates because part the compensation is based on real estate sale production

In which document will a condominium owner find the rules and regulations?

Bylaws of the association

What is the cancellation period for the purchase of a three-year-old residential condominium unit from a private party?

3 business days

the estate in real property with the fewest rights is

the tenancy at sufferance

Homeowners are protected from forced sale of their homestead property for nonpayment of which type of debt?

Credit card bills

Which right is not included in the bundle of rights?


Lucy lives in Tall Towers Condominiums. She enjoys swimming in the condominium's pool each morning before going to work. The pool is referred to as

common elements

If I lease my lake front property to you for an indefinite period of time, your interest in real property would be

a tenancy at will

A condominium is created by

recording a declaration in the public records

The legal document that allows a purchaser of a cooperative to occupy a particular unit is referred to as

a proprietary lease

Which condominium document MUST be given to buyers or residential units sold by a developer of more than 20 new residential units and by a seller of a resale unit?

Frequently asked questions and answers (FAQ) sheet

The process of land buildup from water-borne rock, sand, and soil is


Which condominium document is required to be given to prospective buyers only for new residential construction of more than 20 units?


Which type of alienation is voluntary?


Tile by adverse possession must continue for  LEAST how many consecutive years without the owner's consent?


A nephew inherits his uncle's 1,150 -acre cattle ranch. The legal term for the nephew in this situation is


When a real property owner fails to occupy a property and the land is occupied by someone else for seven years the basis for a title claim may be created by use of the legal principle of

adverse possession

The purpose of recording a deed is to

give the world constructive notice of ownership

Legal title always passes from the seller to the buyer

when the deed is voluntarily delivered and voluntarily accepted

The term acknowledgment refers to

a signer's formal declaration before an authorized official the the signer if executing the instrument as a free act and deed

Each of these is a method of acquiring legal title to real property EXCEPT

when both the buyer and seller have signed the sale contract

Which pair of terms do NOY go together?

gross lease -- fixed rent plus building expenses

Which statement does NOT describe an owner's title insurance policy?

The policy is issed for an amount equal to the unpaid balance of the mortgage loan.

An. owner sold her home to a married couple and give them a warranty deed. The couple moved into the home but did not record the deed. Two days dater, the seller die, and her heirs in another state sold the property without any knowledge of the previous sale. The heirs conveyed title to a single man, who did record the deed. Who owns the property?

The couple

The requirements for a valid deed include

in writing, a competent grantor, signed by two witnesses

The clause in a deed that contains the words "bargains and sells" or similar words is the

encumbrances clause

Can a property owner give a sales associate power of attorney to draft a lease?

no, only attorneys may draft leases for others

Buyer and seller are discussing the type of deed that is to be conveyed. The buyers are requiring a guarantee that the seller owns the property and has legal right to sell. This guarantee is part of which clause in the deed?


The type of deed that contains the words "remise and release" or similar words is the

quitclaim deed

Private restrictions on ownership of real property include which restrictions?

deed restrictions

The covenant in a general warranty deed that promises that the grantor will obtain and deliver any legal instrument that might be required to make the title good in the future is the convenant of

further assurance

a buyer is purchasing a property that is part of a decedent's estate. Which type of deed will the buyer receive

personal representative's deed

Eminent domain may be exercised by

the railroad over a private property owner when the railroad wants to expand its depot

the key difference between police power and eminent domain is whether

any compensation was paid to an affected owner

Against her will, an owner's farm was taken in order that a municipal water supply could be built. The legal principle justifying this action is called

eminent domain

a specific garage parking space conveys with the title transfer of a condominium. The parking space is what type of property?


a person dies intestate without heirs. the principle of law applying to disposition of the person's real property is


an easement created by court order to allow the right of ingress and egress over another person's property to landlocked property is which type of easement?

easement by necessity

Necessary parts of a lease do NOT include

an option to purchase

a lease agreement


conveys an interest in the landlord's property for a limited period of time.

if a tenant legally subrogates or subordinates the rental space, it means that the tenant has

subleased the lease

Which type of statutory deed is typically used to clear clouds on the title?


quitclaim deed

A property owner build a bridge across a stream he owns, but the footing on the other side extends onto his neighbor's property. The legal term for this action is


A neighbor succeeds in gaining legal use of an owner's property by open and continuous use of the land for over 20 years. The legal term for this result is

easement by prescription

An instrument that transfers possession of real property but does not transfer ownership is

a mortgage

What is the legal term used to describe the deceased female creator of a will?


A type of contractual agreement having all essential elements of a contract plus a property description and a definite term of tenancy specified creates which type of interest in real property?



All these terms apply to leasing EXCEPT


Which government restriction on ownership represents the broadest power of government to limit the rights of property owners?

police power

Which statement is TRUE?

all liens are encumbrances

Lenders will often use what type of deed to convey property to a new buyer that has been taken back through a forclosure proceeding?

special warranty deed

in Florida, to make a claim of adverse possession, the adverse possessor

must have paid the property taxes for the period of possession

Which statement is TRUE with respect to the assignment of a lease?

the entire leasehold is transferred

a sublease will result in a lease of

a portion of the leased rights and interest

which lien is NOT a specific lien?

income tax lien

a railroad company may use which method to acquire land?

eminent domain

which encumbrance constitutes a lien on real property?


normally, the priority of a mortgage lien is determined by

the order in which other liens are filed or recorded

unless a written agreement exists to change the usual order of priority, the mortgage with the highest priority is the

mortgage that was recorded first

a real property tax is an example of a

specific involuntary lien

a type of lien that results when a seller accepts a mortgage as part of the purchase price for a home is

a vendor's lien

which term describes the beneficial interest in real estate that implies that an individual will receive legal title at a future date/

equitable title

the clause in a deed that specifies the type of estate being transferred is

the habendum clause

a buyer and seller make an oral agreement regarding the sale of the seller's property. this contract normally would be unenforceable in a court of law based on the

statute of frauds

Essential elements of a real estate contract include all EXCEPT


To be valid, a real estate sale contract MUST contain

an offer and acceptance

A properly executed contract that has as it purpose an illegal objective is

void and unenforceable

Which contract is NOT covered under the statute of frauds?

6-month lease agreement

A real estate sale contract becomes valid when it has been signed by the

buyer and seller

A broker promises to give a $20,000 bonus to the first sales associate who sells 20 homes. Which type of contact is this?

unilateral contract

A real estate licensee is interested in obtaining an option on property as the true optionee. Which statement is FALSE regarding a real estate licensee's obligations?

in the option contract, the licensee must pledge a nominal consideration

Which statement is TRUE regarding an "as is" provision in a sale contract?

The "as is" provisions does not eliminate the duty to disclose all known material defects

A parol contract is also called

an informal contract

A 15-year old entered into a contract with a man who is of legal age to contract. Which statement is TRUE?

the teenager man choose to divest herself of her obligations under the contract

A buyer signs a contract to purchase a seller's home for $370,000. The listing broker submits the contract to the seller, but the seller insists on the listed price of $380,000. The broker prepares a counteroffer for $380,000 that the buyer refuses to sign. The seller then instructs the broker to take the buyer's original offer of $370,000 back to the buyer because the seller has decided to accept the offer. The buyer has changed his mind and refuses to accept the contract. The result is

no valid contract exist

A buyer signs a contract to purchase a property that is subject to a mandatory homeowners association. The buyer did not receive a disclosure concerning the association before signing the sale and purchase contract. Which statement is TRUE?

the buyer may cancel the sale contract within three days after receiving the disclosure

When an offeror withdraws an offer before acceptance, the offeror has

revoked the offer

A property owner and a broker decide to sell $20 lottery tickets to prospective customers for a chance to win the owner's property. They announce that if 1,000 tickets are sold, the winning ticket will get the property free and clear. However, if less than 1,000 tickets are sold the winning ticket will get the property for a price of $200,000 minus the value of the tickets sold. Which statement is TRUE?

The broker may be charge with fraudulent and dishonest dealing by traick scheme, or device

The phrase "time is of the essence" means

action are required to be completed by dates set forth in the agreement

A seller and a buyer enter into a real estate contract. The seller defaults. The buyer sues the seller to go through with the contract. This action is known as a suit for

specific performance

Which statement is TRUE regarding listing agreements?

If required to effect a sale, the commission is earned only if they buyers closes on the property

The statute that requires an injured party to bring an action within a specific period of time after the injury is the statute of


Which written instrument authorizes a person to act for and on behalf of another person?

power of attorney

If a broker is given the right to sign a real estate sale contract that will be binding on the seller, the broker is

an attorney-in-fact

A real estate licensee is NOT authorized to draw which contract?


A listing to sell property and obtain a specified amount for the owner-principal is called

a net listing

The term procuring cause is most significant in which type of listing?


If a property has been cited as being in violation of a building code, the seller must provide a disclosure to the buyer. Which statement is TRUE regarding the disclosure?

If the seller does not clear the violation before closing, it becomes the buyer's responsibility to clear the violation

In a valid option contract to purchase real estate, the optionee

has no obligation to purchase the property

Any contract that obligates both parties to perform in accordance with the terms of the contract is

a bilateral contract

A broker mailed a signed purchase offer to a property owner. Instead of signing the purchase offer contract, the owner sent the broker a fax accepting the offer. Which is correct?

There is a valid contract between the buyer and seller

A real estate sales associate MUST disclose to a prospective buyer that

the family room ceiling leaks during prolonged rain spells

A seller and a buyer negotiated the sale and purchase of the seller's condominium over a two-week period. Finally, they reached a meeting of the minds regarding the purchase price and terms of the sale. What type of contact exists at this point?

Express contract

a broker MUST give a copy of the written listing agreement to the seller

within 24 hours of execution

In an assignment of a real estate contract, the person assigned the legal rights is

the assignee

In case of breach by the buyer, most real estate sale contracts include a provision that the earnest money be regarded as

liquidated damages to the seller

A seller who wishes to recover monetary damages equal to the extent of loss suffered in excess of the earnest money deposit may

sue for compensatory damages

Which reason would NOT make a valid contract to purchase and sell real estate unenforceable?

no earnest money was pledged

The requirement that the infrastructure for sanitary sewers, potable water, and waste treatment facilities be in place before new development is allowed is the

concurrency provision

a strip of land that separates one type of land use from another is

a buffer zone

City planning commissions are usually NOT delegated which authority?

zoning change approval

Residential zoning usually controls single family home density through

lot size

government regulations that establish construction requirements ar termed

building codes

an example of a granted variance could be a

shopping center that has fewer than the number of parking spaces required per square foot of rentable space

the zoning board of adjustment will only grant a variance if the property owner demonstrates that

a hardship exists with the zoning code required to comply with the zoning code

A grandfather clause in a zoning ordinance probably would allow an owner to

reshingle the roof of a structure that is a nonconforming use

Which procedure is NOT used by a local municipality to enforce building codes?

conduct condemnation proceedings

When a new home is constructed, the structure is inspected to make sure it is built in compliance with building codes for wind-load strength, ventilation, and so forth. If the inspection is successful, the building inspector will issue

a certificate of ocupancy

which statement describes a planned unit development?

clustering homes together on smaller lots to allow for open green spaces

industrial zoning is used to control

emissions and effluents

the DBPR licenses

mold assessors

a special flood hazard area is

a 100-year flood plain

flood insurance is NOT required in which type of financing for a structure located in a special flood hazard area?

Private seller financing

A grandmother decided she wanted to leave her summer cottage to her granddaughter, so she executed a general warranty deed to the property and give it to her granddaughter. The grandmother died a few weeks later, prior to the recording of the deed. Which statement applies to this situation?

title to the property was conveyed to the granddaughter when the grandmother executed and delivered the deed to her granddaughter

an unlicensed personal assistant may perform which activity?

write social media advertisements

a sales associate has not completed his continuing education prior to the expiration of his license. In a previous renewal cycle, the sales associate completed his post-licensing requirement. What should the sales associate do?

complete his education requirement and send in the renewal fee, renewal application, late fee, and the appropriate DBPR form to reactivate his license

a buyer is considering making an offer to purchase a 50-unit beachfront time-share development from the seller. The buyer and seller lave requested that a licensed real estate sales associate act as a single agent representative for each of them. Which statement applies to this situation?

this arrangement is a violation of Chapter 475, F.S.

which task is NOT required when implementing designated sales associates?

the broker must retain the brokerage relationship disclosure document for 10 years for all nonresidential transactions that close

A sales associate regularly does cold calling for potential listings. The sales associates called a party who informed the associate that he was on the national do-not-call list and did not want to be disturbed. Which statement applies to this situation?

The sales associate can be fined for calling a person who is listed on the do-not-call list

A sales associate decides to mail personalized notepads to the residents of a neighborhood. The notepads include the associate's photo, name, phone number, and email address. The sales associates paid the cost of printing and mailing the notepads. Which statement applies to this situation?

The notepads are a form of real estate advertisement and, therefore, must include the name of the brokerage firm

The seller accepted an offer on a home. The contract was contingent on several inspections. Several weeks prior to the closing, the sale fell through due to one of the inspections. Which statement is true regarding the retention of documents?

The broker is required to keep acopy of the property file for five years

A sales associate has become frustrated with buyers who use his time and expertise and then make an offer to purchase through another real estate company. To help"tie" prospective buyers to the sales associate, he requires prospective buyers to deposit $500 with the real estate company to show intent to deal through the sales associate's broker. If the buyer makes a purchase, the $500 is applied to the earnest money deposit. However, if the prospective buyer does not make a purchase, the deposit is forfeited. Which statement is true regarding this arrangement?

The $500 is a trust fund and must be paid to his broker

A licensed real estate sales associate conducted an appraisal for a fee. The FREC found the licensee to be in violation of the Uniform Standards of Professional Practice. Which statement is true?

The licensee is subject to FREC discipline

A sales associate and his former broker have a dispute over a commission. What recourse does the sales associate have to resolve the commission dispute?

The sales associate can sue his former broker and request the civil courts to resolve the matter

A broker purchased a list of FHA foreclosure properties from an employee of the FHA. The broker has promised to pay the FHA employee a percentage of all commissions earned by the brokerage company resulting from FHA forclosure sales on the list

The brokeer has violated Chapter 475, F.S., by compensating an unlicensed person for performing services that require a real estate license

Which requirement does NOT apply regarding dwellings built prior to 1978?

Buyers must have the property inspected for lead-based paint

A transaction to market which property would be defined as residential real estate under Chapter 475, F.S.?

10 acres of land zoned agricultural

Broker Ellen Sammis of Newcomer Realty, Inc., is opening a real estate office. What information is NOT required on the exterior entrance sign?


Which remedy involves a lawsuit to award damages for the extent of the loss suffered as a result of the breach contract?

Compensatory damages

A licensed real estate sales associate recently changed their email address used for real estate business. Is the sales associate required to notify the DBPR?

The sales associate must notify the DBPR of a change in current mailing or email address within 10 days after the change

Two close friends own a plant nursery as joint tenants with right of survivorship. One owner died unexpectedly. Who now owns the nursery?

The surviving owner becomes sole owner of the nursery by operation of law

A broker wants to relocate a branch office's location. What is required?

The broker must register the new location and pay the appropriate fee

A landlord owns a duplex that she rents to college students. The landlord has an inactive real estate license and collects the rent on her own behalf. Which statement is TRUE regarding this situation?

The landlord is required to maintain deposit money and advance rents in compliance with the Florida Residential Landlord and Tenant Act.

A broker may NOT establish an escrow account in a Florida

securities firm

A broker chooses not to maintain an escrow account. Which statement is TRUE regarding this situation?

If the title company is handling the closing, the title company may hold the earnest money deposit in escrow.

Discount Points are

a charge by a lender to increase the interest yield on a mortgage

A prospective tenant wants to install a ramp to the front door and handrails in the bathroom of the bungalow cottage. Which statement is TRUE?

The tenant may make the modifications at the tenant's expense.

The township located due East of T1N, R1E is

T1N, R2E

An applicant responded "NO" to the question on the real estate application regarding whether the applicant had ever been found guilty of a crime.  four years ago, the applicant was divorced and became unemployed. He found another job a short time later but went ahead and cashed two unemployment checks totaling $700. The applicant went to court for illegally cashing the unemployment checks. The applicant repaid the $700 and adjudication of guilt was withheld. What action, if any, will the FREC likely take?

The Commission will likely consider this to be a case of obtaining a license by fraud, misrepresentation, or concealment and discipline the license, or deny a license if not yet issued.

The subject property is a three-bedroom, two-bath home. A comparable property is a three-bedroom, two and one-half-bath home. An appraiser has determined that the extra half bath is worth about $2,200. What adjustment should the appraiser make?

Subtract $2,200 from the comparable's transaction price

At age 19, an applicant was charged with one count of petty theft. The 19-year old paid a fine during a 10-minute court proceeding and was not sentenced to probation or any other penalty. Nine years later, the applicant is completing the sales associate application. How should the applicant respond to the question on the application concerning whether the applicant has ever been convicted of a crime, found guilty, or entered a plea of guilty or no contest even if adjudication was withheld?

The applicant must disclose the petty theft incident on the application

What is the maximum allowable homestead exemption for a 65-year-old widower who legally bind?


A landlord has become frustrated that one of her tenants has not paid his rent, so while the tenant is away, the landlord has a locksmith change the locks on the apartment.

The landlord's actions are a violation of Florida's Landlord and Tenant Act

If a real estate sales associate fails to complete the 45-hour post-licensing course prior to the expiration of the initial license, what happens to the license.

The license becomes null and void by operation of law.

Under the Truth in Lending Act, certain words trigger disclosures of the amount or percentage of down payments, the terms of repayment, and the annual percentage rate. Which statement is NOT a "triggering term"?

The name of the lender

A commercial tenant pays base rent plus a pro rata share of the landlord's property taxes, hazard insurance, and common area maintenance. The tenant has what type of lease?

Net lease

A prospective tenant was previously evicted for failure to pay rent. The prospective tenant has inspected another rental property and wishes to enter into a lease agreement with the landlord. May the landlord refuse to rent to this tenant?

Yes, based on the tenant's poor credit history

Which statement is TRUE regard townships?

A township is a parcel containing 36 square miles

A customer obtained a judgment against a real estate licensee for negligent conduct involving a real estate brokerage transaction. The licensee had an inactive license at the time that the negligence occurred. If the customer is unable to collect on the judgment, can the customer be reimbursed from the Real Estate Recovery Fund?

No, the license must have been active when the incident occurred.

The Commission's authority to adopt administrative rules is an exercise of which power?


A broker obtained a judgment from a Florida court against the seller for an unpaid commission. May the broker record the judgment?

The broker may record the judgment in the county where the debtor owns property

the market value of a site is determined by its

highest and best use

The income approach to value requires collection of data pertaining to

expected future expenses

Which survey method is used when developed subdivisions have been recorded?

Lot and block method

If probable cause is found to exist, the probable-cause panel will direct the DBPR to file a formal complaint against the subject of the investigation. Which statement is TRUE?

The licensee is entitle to either a formal or informal hearing, or the licensee may agree to a stipulation

The court awarded a judgment against a broker for $30,000 actual damages and for $45,000 punitive damages regarding a real estate brokerage transaction.  The FREC is authorized to reimburse the injured consumer what amount from the Real Estate Recovery Fund?


A sales associate finds a buyer for another brokerage firm's listing. The buyer gives the sales associate an earnest money deposit check made payable to the sales associate personally. What should the sales associate do?

Return the check to the buyer and request that the buyer make out a new check payable to the broker's escrow account

Which parties constitute an arm's length transaction?

Mr Perez to Miss Root (not related)

A property owner purchased a weather vane. The owner bolted the weather vane to the roof ridge. The weather vane is

a fixture

A sales associate works for ABC Realty Company in Naples, Florida. While the sales associate is visiting a friend in St. Petersburg, she sees a waterfront lot listed by XYZ Realty. The sales associate sells the lot to her friend, and XYZ Realty pay the sales associate a 10% commission.

Both the sales associate and the broker of XYZ have violated Florida's Real Estate License Law

The process by which private property is acquired through judicial process to build a police station is called


A property owner falls behind in paying his debts. He owns homesteaded property. The homesteaded property is protected from which debt?

An overdue installment load to purchase furniture for his principal residence

A real estate licensee indicates on his business cards that he is a REALTOR*. However, the sales associate has not paid dues to the Florida Realtors* for two years and has allowed his membership to lapse. Can the FREC discipline this licensee for using the REALTOR* logo on his business cars?

Yes, the FREC can fine the licensee $300 for misrepresenting that he is REALTOR*

A company pays the property owner rent in the amount of $500 per month plus 3% of gross sales revenue. The company has entered into what type of lease agreement?

Gross lease

A buyer makes a written offer on a seller's property. The seller makes a counteroffer, which the buyer accepts. The listing broker conveys the buyer's written acceptance to the seller. At this point, the offer becomes

an express contract

Which expense associated with principal residence is deductible for income tax purposes?

Property taxes

a broker had an exclusive listing to sell a small apartment complex. The owner canceled the listing agreement before an offer was presented and then entered into a lease-management agreement with a third party. Is the broker entitled to a commission?

No, because the broker did not meet the conditions for payment of commission prior to the cancellation of the agreement

Which business structure is designated to protect personal assets?


A broker was served a citation. The broker wants to dispute the citation. Which statement applies to this situation?

The broker may dispute the citation within 30 days of it being served.

A sales associate applicant failed the state license exam. If the applicant desires to review the exam, the request must be received within what period of time?

21 days

A buyer made an offer to purchase and paid a $500 earnest money deposit. The seller accepted the offer. A few weeks later, the transaction fell through. Neither the buyer nor the seller has made a claim on the escrowed deposit. Attempts to contact the buyer and seller have been unsuccessful. What should the broker do with the earnest money deposit?

The broker myst notify the FREC within 15 business days that the broker has a good-faith doubt.

A Florida-licensed broker wants to register an office located in New York City as her principal real estate office. May she do so?

Yes, a broker's principal office amy be located outside the State of Florida as long as the broker's escrow account is maintained in a Florida institution.

A property owner has two mortgage liens on his property. One lien was recorded on January 15, and the second lien was recorded on February 1 of the same year. What document you'd give the February 1 lien a higher priority?

A subordination agreement

The purpose of the Real Estate Settlement Procedures Act is to ensure

that buyers are informed regarding the amount and type of charges they can expect at closing

Florida law requires a disclosure at the time of or before entering into a contract for sale for which environmental hazard?


A married couple own homesteaded property in both their names. One spouse owns investments real estate in severalty. That spouse dies estate. Which statement is TRUE?

The surviving spouse owns the principal residence through the right of survivorship, and the investment property will be devised according to the will

A railrod track easement is which type of easement?

In gross

an acknowledgment is a

declaration by the signer that the signing is of her own free will

A couple have been married for 40 years. One spouse is planning on retiring at age 60, and so the couple has decided to sell their spacious family home and buy a smaller condo. How does the current tax law affect their capital gains on the sale of their family home?

As long as the couple meets the two-year principal-residence test, they may exclude up to $500,000 of gain when they sell the home, if filing jointly.

A mortgage must include

a legal description

A broker receives a $100 referral fee from a title company for every transaction that closes through the title company. Because of this, the broker has inserted a sentence into his standard contract for sale and purchase requiring the buyer to that particular title company. Which statement(s) applies to this situation?

Both the broker and the title company have violated the Real Estate Settlement Procedures Act

The statement that there must be at least a two-hour fire wall rating between attached common walls would most likely appear in the

building code

Which statement is FALSE regarding Florida Real Estate Commissioners?

At least three Commissioners must consumer members who have never held a Florida real estate license

Variables that influence demand do NOT include

availability of skilled labor

Which valuation product MUST be prepared by a licensed or certified appraiser?

Appraisal to originate a federally related loan

Which individual is required to have a real estate license?

A broker who exclusively markets business opportunities

A written disclosure form is NOT required regarding which brokerage relationship?

Transaction broker relationship

A transaction broker does NOT have which duty?


If a broker receives conflicting demands on escrowed property, the broker must notify the FREC, in writing, within 15 business days of the last demand and institute one of four settlement procedures unless the transaction

concerns a residential sale contract on HUD-owned property

The broker of record for a real estate company is working with a buyer as a buyer's single agent. The buyer has become interested in a property listed by the brokerage as a transaction broker. Which statement applies to this situation?

The real estate company cannot be a transaction broker for one party and a single agent for the other party

Which action will NOT terminate a real estate contact?


A Presbyterian church owns a nursing home for its members. The church admits only church members to the nursing facility. Is this legal?

Yes, the church is exempt under the Fair Housing Act and may restrict the use of the facility to its members

An individual is eligible to seek recovery from the Real Estate Recovery Fund is

the claim is based on a final judgment against the active licensee involved in a real estate brokerage transaction

A tenant rents a college apartment and pays rent on the tenth of every month. The tenant has a written agreement with the property owner; however, there is no specified termination date. Which statement is TRUE?

The tenant must be given at least 15 days' notice to vacate prior to the end of the monthly period

A previous owner has stipulated that future owners of a tract of land may not operate any type of business on the property that produces a toxic substance of any kind and might potentially harm a natural spring on the property. Where would a real licensee interested in listing this property find this information?

Deed restrictions

When using the metes-and-bounds method of legal description, the fixed objects used to identify the corners of a parcel are called


The following are paired relationships EXCEPT


Two friends discuss the purchase and sale of a tract of land over a beer one Friday night. They jot down the sale price and other terms and conditions on a bar napkin and they put their signatures on the napkin. This is

an enforceable contract

a buyer makes an offer to purchase a home built in the early 1970s that is listed by a real estate company. Prior to signing the contract for purchase and sale, what MUST occur?

the seller must disclose any known presence of lead-based paint in the home

If a prospective buyer suspects that there is an encroachment on a property the buyer is considering purchasing, to which document should the buyer refer?

a recent suvey

Which entity may NOT register as a real estate broker?

corporation sole

Which transaction is exempt under the TILA-RESPA Integrated Disclosure (TRID) rule?

Home equity lines of credit (HELOCs)

Three individuals purchase a property with no right of survivorship. Their estate is referred to as a

tenancy in common

Annual property taxes are $1,460. Closing is June 1. Use the 365-day method of proration. Charge day of closing to the buyer. How is the proration entered on the closing disclosure?

debit the seller $604, credit the buyer $604

a property sold two years for $120,000. An appraiser estimates that properties in the market area where the parcel is located have appreciated 5% annually. How much is the property worth today, assuming no other factors?


The adjusted sales prices of three comparables are $87,900, $88,500, and $82,750. The appraiser applies weights of 30%, 50%, and 20%, respectively. Calculate the indicated value of the subject property.


An investor owns a 30-unit apartment complex that produces a net monthly rental income of $9,200. This monthly income represents a 9.5% annual return for the owner during the first year of ownership. What did the investor pay for the building? (Round to the nearest dollar.)


The N1/2 of the NE1/4 of the SW1/4 and the S1/2 of the SE1/4 of a section contains

100 acres

A 130-unit apartment complex contains 80 one-bedroom apartments that rent for $750 per month and 50 two-bedroom apartments that rent for $950 per month. The one-bedroom units are 10% vacant, and the two-bedroom units are 5% vacant. Calculate the projected annual effective gross income for this investment property.


A sales associate sells a property for  $98,500. The listing broker has agreed to pay the sales associate's broker 40% of the total sale commission of 8%. The sales associate receives 55% of all commissions the sales associate earns. how much commission did the sales associate receive?


the city is proposing to pave the streets in your neighborhood at a cost of $47 per foot. The city will absorb 30% of the cost. Your lot has a front footage of 110 feet. Assuming there are homes on both sides of the street, calculate the amount of your paving assessment.


The loan-to-value ratio offered by a local financial institution is 75%. If a buyer wishes to acquire a property selling for $129,500, the buyer will need to make a down payment of


A commercial office center is purchased for $2.5 million. The land value is 25% of the total acquisition cost. What is the annual IRS depreciation deduction? (Round the answer to the nearest dollar.)


Business Brokers

must be licensed as real estate licensees.

The term dedication refers to

the transfer of certain subdivision areas from private to public ownership

The practice of using five or six model homes to sell houses with predetermined floor plans in a subdivision is associated with

tract building

A property manager

is responsible for leasing, managing, marketing, and overall maintenance of property

follow-up refers to which activity?

keeping in touch with buyers and sellers after closing

a licensed real estate broker may

not appraise property that involves a federally relate transaction unless the broker is also a licensed or state-certified appraiser

A subdivision plat map

indicates the size and location of individual lots, streets, and utilities

a property owners who does NOT reside on the property and who often relies on a professional property management company to manage the investment is

an absentee owner

The creation of a database of prospective customers for the purpose of directed advertising is called

target marketing

a valuation product used by lenders involved in short sales of distressed property is called a

broker's price opinion

The legal description method that uses direction, distance, and POB is the

metes-and-bounds method

The section number located due west of Section 6 is


Which description is MOST nearly due north?

N 0^0 30' W

The compass direction that is the straight line opposite of S 45^0 E is

N 45^0 W

In Florida, the principal meridian and base line intersect in Tallahassee because

it is the basic reference point selected by the federal government

Which statement is FALSE concerning townships?

the are 640 acres is a township

The SW1/4 of the SE1/4 of the NW1/4, of Section 10, Township 3 south, Range 5 East describes a tract of

10 acres

In Florida, Range 2 East is closet to


Which description describes a check?

a square 24 miles on each side created by intersecting guide meridians and correction lines, containing 16 townships

A range is numbered to

the east or west of a principal meridian

Which statement is TRUE about the sections in a township?

Section 13 lies to the north of Section 24

Which type of legal description is used only development subdivisions?

lot and block

How many acres are contained in a parcel described as the SE1/4 of the NW1/4 and the S1/2 of NE1/4 of a certain section


Which method of settling a default involves a conveyance of the title to the lender?

deed in lieu of foreclosure

When a promissory note is executed, it becomes

evidence of the debit

A mortgage clause (in title theory states) that provides for the transfer of title to real property to the borrower once the mortgage debt has been repaid is the

defeasance clasue

Which legal instrument would contain the interest rate, loan amount, maturity date, and payment schedule?


The mortgagor is the person who

signs the note

A first mortgage holder can agree to take a lower lien priority using which instrument?

subordination agreement

A buyer purchases a home worth $450,000. She finances the purchase with a mortgage loan of $360,000. What is loan-to-value ratio?


Which mortgage clause legally allows the lender to declare the entire unpaid sum due when the debtor defaults?

Acceleration clause

A property owner defaulted on the mortgage. Prior to foreclosure, the owner paid the lender the missed mortgage payments, plus the expenses incurred by the lender as a result of the default. Which mortgage provision allows the borrower to make mortgage payments as specified in the promissory note.

right to reinstate

Which clause is typically found in a mortgage loan used to finance income-producing property?

receivership clause

A lender promises to make a loan to an owner of a new apartment building once construction of the building is complete. This is called

a takeout commitment

Which statement regarding a due-on-sale clause is NOT true?

the clause releases the mortgagor from personal liability on the sale of the property

When a loan is paid off in a lien theory state such as Florida, the lender is required to give the borrower

a satisfaction of mortgage

A closing agent, who is preparing for a closing, wants to verify the balance of an existing mortgage before cutting a check to pay the lender in full at closing. Which document verifies this information?

Estoppel certificate

The amount of a loan expressed as a percentage of the value of real property offered as security is the

loan-to-value ratio

The borrower's monthly mortgage payment consist of

principal, interest, taxes, and insurance

The seller has an existing first mortgage. In order to limit exposure to further liability, the seller should find a buyer ready to

obtain new financing

A buyer assumed an existing recorded $82,000 mortgage as part of a real estate purchase. This action will necessitate

a new promissory note

A financing arrangement that grants a buyer 'equitable title' without a deed conveying at closing from grantor to grantee is called

a land contract

A borrower pledges real property as collateral for repayment of a loan without surrendering possession of the property. This process is call


A buyer is assuming the seller's existing mortgage. Which agreement relieves the seller of liability for the assumed mortgage?


A buyer decides to purchase a property for $255,000. Which down payment will create the lowest risk for the mortgagee?


Mortgage ownership is transferred from one individual to another by executing

an assignment of mortgage

A recorded legal document that gives constructive notice that an action affects title to a parcel of real property is called

a lis pendens

To compute the dollar value of a loan discount, each discount point is equal to

1% of the amount loaned

A buyer obtains a mortgage of $200,000. The lender makes the loan at 4% interest plus 2 discount points. What is the approximate yield on the mortgage loan?


Which fee does a lender charge for processing a mortgage application?

Loan origination fee

Which parties are most involved in the secondary market?

Fannie Mae and Ginnie Mar

Which statement BEST describes Fannie Mae's function?

it acts as a secondary market in purchases of FHA, VA, and conventional loans

Fannie Mae dos NOT

originate federal loans

A short loan term results is

less total interest paid during the loan term

An economic indicator that is used to adjust the interest rate on an adjustable-rate mortgage is

the index

Freddie Mac is

a secondary market

The total amount the interest rate may increase over the life of an adjustable-rate mortgage loan is the

lifetime cap

Which statement is TRUE regarding private mortgage insurance (PMI)?

PMI is required on conventional mortgage loans with a 90% loan-to-value ratio

Who is required to obtain a Florida mortgage loan originator's (MLO) license?

an agent of a state-regulated mortgage lender who takes loan applications from consumers

Which type of mortgage loan is a nonconventional mortgage loan?


The law that makes it illegal to deny credit on the basis of age is the

Equal Credit Opportunity Act

The Truth in Lending Act is implemented by

Regulation Z

The MOST important objectives of the federal Truth in Lending Act are to ensure disclosure of finance charges and

the annual percentage rare (APR)

The TILA-RESPA rule dos NOT require that

a closing disclosure be used for a loan to purchase a mobile home

Which real estate loan transaction is exempt from the provisions of TILA-RESPA?

Reverse mortgage loan

One mortgage clause NOT normally found in a VA or FHA mortgage is the

prepayment penalty clause

Which information is the BEST indicator of a loan applicant's willingness to repay debt?

credit score

Which statement is TRUE concerning VA loans?

The VA has the authority to partially guarantee mortgage loans made to veterans by private lenders

The VA loan guarantee is referred to as the

maximum entitlement

the minimum cash investment on an FHA mortgage loan is

3.5% of the lesser of the purchase price or the appraised value

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