What is it called when a licensee tries to induce sales by predicting a decline in market value?
Assertive bargaining
False advertising
Harassment
Panic selling
A consumer whose number is on the Do Not Call Registry received a call from a licensee and said the number was on the registry. The licensee called again a few days later. What federal act is the licensee violating?
Anti-Telemarketer Act of 2000
CAN-SPAM Act of 2003
Do Not Call Implementation Act of 2003
Junk Fax Prevention Act of 2005
Rental companies and brokerages that charge a fee for providing rental listing information must give prospective tenants ______.
A guarantee that they will find a property
A list containing at least 10 rental properties
A new list if they don’t find a property they like within the first 10 days
A receipt with a disclosure about refunds with the approved language
What’s it called when you contact the public with unsolicited offers via a multitude of communication vehicles, and in high frequency, even with your buyer’s permission?
Fraud
Harassment
Misrepresentation
Panic selling
Which federal act protects consumers from unwanted email solicitations?
Anti-Spam Act of 2000
CAN-SPAM Act of 2003
Do Not Email Implementation Act of 2003
Junk Email Prevention Act of 2005
Samuel is excited to launch his new website! However, when his sponsoring broker viewed it the first time, she told him that he is violating Florida real estate advertising laws. What do you think Samuel did wrong?
He used his own logo rather than his team logo.
His website had a white background instead of the company’s green and blue.
His website used too many typefaces instead of the company’s standard typeface.
The brokerage firm name isn’t next to the contact information.
Which federal act makes it illegal to send unsolicited commercial solicitations via fax without the recipient’s permission or an established relationship?
Anti-Telemarketer Act of 2000
CAN-SPAM Act of 2003
Do Not Call Implementation Act of 2003
Junk Fax Prevention Act of 2005
Which of the following must a licensee include when advertising?
A property for sale without the seller’s consent
Brokerage name
Gift giveaway
Sales volume
Nicholas is a new licensee in an area where there are a lot of condominiums and dwellings geared toward tourism and seasonal residents. He tries to drum up business by sending faxes to dozens of condo complexes. Which federal act might he be violating?
Anti-Telemarketer Act of 2000
CAN-SPAM Act of 2003
Do Not Call Implementation Act of 2003
Junk Fax Prevention Act of 2005
Which of the following scenarios is considered a violation of FTC advertising rules?
A broker listed a property with the following description: “2,000 square feet of living space for a total of 2,800, including two outbuildings and an unfinished garage.”
A broker who practices alone decided to try a new marketing campaign slogan: “Come let our team of hardworking agents find you the home of your dreams!”
A property sale closed yesterday. Today, the agent took down all of the signs and online listings for the property.
A salesperson just posted an MLS listing for a property without her designated broker’s approval.
A prospective tenant who fails to obtain a rental from a purchased rental list is entitled to what, if requested within 30 days?
50% of the fee paid
A full or partial refund
A letter of explanation
The equivalent of one month of rent
Which federal act makes phone solicitation to numbers on the Do Not Call Registry illegal unless a prior relationship or permission exists?
Anti-Telemarketer Act of 2000
CAN-SPAM Act of 2003
Do Not Call Implementation Act of 2003
Junk Fax Prevention Act of 2005
The Perfect Home brokerage firm was found guilty of running deceptive ads. The Federal Trade Commission might require all of the following EXCEPT ______.
Letters of apology to all affected consumers
New ads to correct previous misinformation
Notification to consumers about deceptive ad claims
Specific disclosures to consumers
Which of these is a TRUE statement regarding truth in advertising violation penalties?
A cease-and-desist order from the Federal Trade Commission related to deceptive advertising becomes effective 30 days after issuance.
The Federal Trade Commission determines the severity of the penalty based on the severity of the violation.
The Federal Trade Commission typically imposes jail time for truth in advertising violations.
The severity of the civil penalty for violating truth in advertising laws is based on the number of consumers affected by the deceptive ad.
Which types of advertising fall under the DBPR and FREC’s rules and regulations? Select the best answer.
Advertising by any means
Print advertising
Radio advertising
TV advertising
What does the Federal Trade Commission regulate?
Advertising
Commission disbursements
Federal real estate transactions
Listing trades
What’s the penalty for providing inaccurate or out-of-date rental lists to prospective tenants for a fee?
$1,000 or one year in prison and possible license suspension or revocation
As long as the list was provided in good faith, there is no penalty
Citation
One month’s free rent
Gregory has been bombarded with emails from a local real estate licensee. He keeps opting out of these emails, but they just keep coming. What federal law is the licensee possibly violating?
Anti-Spam Act of 2000
CAN-SPAM Act of 2003
Do Not Spam Act of 2003
Junk Email Prevention Act of 2005
You’ve started creating your own advertising. Where can you look for reliable information?
Brokerage policy manual
Google
Other people’s advertisements
Your broker friend’s website
What does the FTC consider to be a deceptive ad?
Any ad likely to mislead consumers acting reasonably under the circumstances
Any ad or business practice that causes or is likely to cause injury
Any ad that makes a health claim
Any ad with a claim that’s clearly not true
Which of the following items would be considered a truth in advertising violation according to FTC guidelines?
An advertisement lists the square footage of the living area as 3,145 feet, which doesn’t include storage outbuildings.
An advertisement states “HVAC unit like new!” when in fact the unit is used but has had most of the parts replaced recently.
An MLS listing shows a property as available even though the parties closed on the transaction three weeks ago.
The licensee’s name in an ad is followed by the designation REALTOR®. The licensee is a member of NAR.
What does the Federal Trade Commission consider to be an unfair ad?
Any ad or business practice that causes or is likely to cause injury
Any ad that is likely to mislead consumers acting reasonably under the circumstances
Any ad that makes a health claim
Any ad with a claim that’s difficult to evaluate
Krening Realty has been found guilty of running deceptive ads. Which of these statements about the potential penalty is NOT true?
If Krening violates the cease-and-desist order, the firm may face penalties of more than $50,000 per violation.
Krening may be required to run corrective advertising.
Krening’s broker may face jail time.
The firm may face civil penalties ranging from the thousands to millions of dollars, depending on the infraction.
Lot and Block Realty received a cease-and-desist order from the FTC due to misleading ads the firm was running. When does the order become effective?
30 days after issuance
90 days after issuance and for 120 days total
Immediately upon issuance
Retroactive from the first date of the prohibited activity
How long do prospective tenants have to request a refund after purchasing a rental list?
10 days
15 days
30 days
360 days
Ken, a licensee, has published an ad claiming that he can sell homes for 25% more than any of his competitors. The Federal Trade Commission determined this to be a deceptive ad. What might the FTC require Ken to do as a penalty for his deception?
Discontinue publishing any ads for one full year.
Live up to the claims in his ad within the next six months or go to prison.
Pay each client 25% of the sale price for every house he sells.
Take out new ads correcting the misinformation in his original ad.
Which of the following is an example of deceptive advertising?
Including the broker’s name in an advertisement
Including the listing price in an advertisement
Intentionally misidentifying a property’s square footage
Promptly removing an ad after a transaction closes
If point-of-contact information appears on your website, what else must appear nearby?
Broker’s name
City and state where the brokerage is located and jurisdiction
Personal contact number
Personal photo
Which option is of the most concern to licensees and advertising when it comes to the Federal Trade Commission?
Excessive advertising costs
Location of ads
Misleading ads
Paper waste
Even though the Federal Trade Commission is concerned with all ad claims, what sort of ads would most likely concern the commission?
Ads for products that don’t offer any specific value to consumers
Ads making exaggerated claims most reasonable consumers wouldn’t believe
Any ad that is demonstrably false
Any ad that makes a health or safety claim or any claim that’s difficult for the consumer to evaluate
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Within how many days must escrow funds must be deposited?
Within one business day of receipt and ratification of the contract.
Within three business days of receipt by the broker
Within two business days of receipt and ratification of contract.
Within two business weeks of receipt and ratification of contract.
In Florida, how long must brokers retain deposits and other escrow funds?
At least 30 days
At least 90 days
Until either the transaction closes or terminates prior to the closing
Until the broker releases them
What should a broker do if the broker wants to use an interest-bearing account to hold escrow funds?
Commingle funds with their own to ensure there is no distinguishing personal funds from escrowed funds
Nothing, the broker may use any type of account they wish to store escrowed funds
Notify all parties of the type of account and how the interest will be distributed, and obtain written permission to do so
Register the account with the DBPR, FREC, and the Florida Banker’s Association as an IBEF account
It’s the end of the day and you’re running late for dinner at the Melting Pot, so you decide to go to the ATM and deposit your client’s earnest money check into your own account, and then transfer it to an escrow account the next morning. Why is this wrong?
You can’t commingle escrow funds with your own funds.
You failed to make a record of the deposit.
You failed to notify the client and the broker that you would be placing the funds temporarily in your own account.
You should wait till the end of the week before transferring in to the separate account.
Charlene signed a lease and is required to pay advance rent. Which of the following statements is true about advance rental money in Florida?
If she pays advanced rental money, she won’t have to pay a security deposit.
The FRLTA sets a limit on how much she can be charged.
The rules governing this money are the same as the ones that govern security deposits.
This money protects the landlord in case she damages the property.
What must a broker do if escrow funds are deposited into an attorney or title company’s escrow account?
Nothing; the responsibility now lies with the attorney or title company to handle the funds appropriately.
Request a notice of default within 90 days of the time the deposit is made.
Request a verification of deposit within 10 days of the due date stated in the sale agreement.
Request that the attorney or escrow company provide a bond of 25% of the escrowed funds to the broker.
By when must sales associates and broker associates deliver escrow funds to their broker/employer?
Within the business day of receipt
Within the next business day of receipt
Within three business days of receipt
Within two business weeks of receipt
Which of the following is an example of commingling?
Mixing earnest money with personal funds
Mixing two earnest money deposits
Paying licensee bonuses from forfeited escrow deposits
Using escrow funds to pay business expenses
It’s Friday afternoon, and Lori can’t make it to the bank in time to deposit an earnest money check in the brokerage’s escrow account, so she uses her mobile app to deposit it into her personal checking account for safekeeping. What violation did Lori just commit?
Capping
Commingling
Conforming
Conversion
By when must a broker deposit escrow funds if the sales associate receives them on a Tuesday?
Friday
The following Monday
The next day
Thursday
When is it acceptable to have non-trust funds in an escrow account?
If it’s placed there by the broker
In order to keep the account from being overdrawn due to banking fees
Never
Temporarily, for no longer than 10 days
Which of the following is illegal commingling?
Failing to keep appropriate records
Having more in an escrow account than could be accounted for by escrow funds
Placing client funds in the firm’s general business account
Stealing a client’s trust funds
What should a broker do when receiving a post-dated check as earnest money?
Deposit the check immediately
Hold the check in the office safe and immediately deposit it when it comes due.
Immediately reject it
Request an affidavit of intent from the issuer
What is an action landlords and property managers can take to avoid commingling funds?
Ask another real estate professional to hold onto the funds.
Deposit all funds received into a business account.
Deposit all funds received into their own, separate accounts.
Hold the funds in a safety deposit box.
One of the following licensees’ actions would constitute commingling. Which is it?
Cynthia deposited her client’s earnest money check into her personal checking account until she had a chance to transfer it to the brokerage’s trust account.
Jenson deposited his client’s earnest money check into the firm’s trust account.
Jessica deposited her commission check into her brokerage firm’s operating account.
Sean withdrew funds from the firm’s operating funds to pay the firm’s office rent.
Commingling is defined as ______.
Fraud
Mixing funds
Spending money frivolously
Theft
When must Karen, a sales associate, deliver the escrow funds to her broker if she receives the funds on a Friday?
By the end of the following week
End of day Saturday
End of day the following Monday
The end of the day Friday
Who must be a signatory of escrow on a brokerage’s escrow account?
A federally or state-insured bank or depository
An attorney
The broker
The title company
In Florida, who or what entity must keep records of all funds deposited into the custodial or trust account that indicate the date and from whom the broker received the funds, the date deposited, the date any withdrawals are made, and other necessary information?
The bank of deposit
The broker
The buyer
The seller
Which of the following individuals is guilty of commingling?
Broker Bob accepts an earnest money check, signs it, and uses the funds to pay for his anniversary dinner.
License holder Terri forgets to turn an earnest money deposit over to her broker.
Maurice places advance rent from his client’s tenant into a trust fund account.
Sandy doesn’t want to leave her client’s earnest money check lying about, so she places it into her own checking account until the banks open Monday.
Which of the following is a true statement about commingling?
It involves placing client funds in your personal account, but not personal funds in your escrow account.
It involves placing escrow funds into a business account.
It involves placing escrow funds into your personal account and using them for personal expenses.
It’s not illegal if it’s replaced immediately.
Gail gave her new landlord a check for $1,250 as advance rent on the apartment she’s renting. Until Gail moves out, to whom do these funds belong?
A third-party trustee
Gail
The landlord
The property manager
If you’re found guilty of commingling, what have you done?
Fraternized with the competition
Mixed escrow funds with personal funds
Stolen escrow funds
Stolen trust funds
As the property manager, Galena places advance rental funds in an interest-bearing account for her landlord. Which of these must she also do?
She must deposit the advance rental money in an account with at least $15 of the landlord’s own money.
She must notify the tenants about the interest rates and interest payment schedule.
She must, on a monthly basis, turn over all interest earned on the advance rental money to the tenants.
She must use the interest money only on repairs or upgrades to the units, and on nothing else.