The real estate licenses of individuals who do not complete the 14-hour CE requirement will automatically revert to involuntarily inactive status. Once that occurs, how long can the license remain in involuntary inactive status before becoming null and void? **
Indefinitely
One year
Two years
Four years
Malik is in the process of obtaining a mortgage loan and finding insurance for a new home purchase. When purchasing a home, who would generally NOT be permitted to view Malik’s credit report? **
Malik’s broker
the lender
the insurer
Malik
To ensure that the value of a property is sufficient collateral for a loan, an appraisal will be ordered by the lender and paid for by the:
broker.
seller.
borrower.
title company.
The Florida Real Estate Commission (FREC) was created in 1925 for what purpose?
To create new real estate license laws
To administer and enforce the real estate license law, removing the necessity of court enforcement
To administer and enforce the appraisal license law
To protect real estate licensees from customers
Which statement is TRUE regarding a “whistleblower”?
A whistleblower is not protected from retaliation by any laws.
A whistleblower may only bring allegations to the surface externally.
A whistleblower may only bring allegations to the surface internally.
A whistleblower may expose any kind of information or activity deemed illegal or unethical.
A real estate licensee has listed a house for sale and has learned that there are proposals to build a new shopping center along the property line. The owner of the house, not aware of the plans, has already completed the Seller’s Disclosure document. When considering the Articles of the NAR Code of Ethics, the licensee’s response to potential buyers should be to:
say nothing about the proposals.
tell the buyers that all pertinent facts are in the Seller’s Disclosure.
inform the buyers of the proposals.
advise the buyers to contact the township about any future building plans.
Jon received money from an insurance claim he filed several years ago when a sinkhole caused some damage to his home. Jon recently listed his home for sale and a buyer made him an offer. According to Florida Statutes, Jon:
is not required to disclose the claim as long as he repaired the damage from the sinkhole.
is only required to disclose that a sinkhole had occurred on the property.
must disclose the claim and pay for an inspection of the property to confirm the ground is stable.
must disclose the claim and whether the amount paid was used to repair the sinkhole.
Amar recently received his real estate license and was talking with a seller client about listing the property when the client remarked about not wanting to sell the home to anyone who is associated with a certain religion. What should Amar do?
Agree and work with the seller on the listing of the property
Consult with his broker as this would violate fair housing laws
Report the seller to the U.S. Department of Housing and Urban Development
Tell the seller that his remark is racist and refuse the listing
Maggie’s lender provided her with a statement that says she is prequalified for a mortgage loan. Being prequalified is a(n):
written commitment issued by a lender following a comprehensive analysis of the borrower.
estimate of the person’s borrowing power.
verification of income and employment.
verification of available financial resources.
The eight real estate services that require a real estate license are advertising, buying, appraising, renting, selling, auctioning, leasing, and:
exchanging property.
financing property.
inspecting property.
investing in property.
A broker from G&S Realty opened an office in Ft. Lauderdale. Later, he opened a small office space in Boca Raton in which to meet customers and hold closings because he had procured several listings in that area. He also assigned two sales associates to the Boca Raton location. According to FREC rules, the office space:
is not considered a branch office and does not need to be registered.
is a temporary shelter and does not need to be registered.
must be registered with the DBPR as a branch office.
does not require a registration fee.
To avoid having their Florida real estate licenses reverted to an involuntary inactive status, sales associates and brokers must complete certain requirements. This requires all of the following, EXCEPT:
completing a 14-hour FREC-approved continuing education course.
passing a state exam with a score of 80% or higher
paying a renewal fee to the DBPR.
submitting the required renewal form to the DBPR.
Which action by a landlord is permitted under the Florida Residential Landlord and Tenant Act?
Increase a tenant’s rent discriminatorily
Prevent the tenant from gaining access by changing the locks
Terminate utilities furnished to the tenant
Access the property in case of emergency
Which legislation was enacted in response to a number of major corporate and accounting scandals in an attempt to curtail false accounting and “cooking the books”?
Chapter 475, Florida Statutes
The CAN-SPAM Act
The Equal Credit Opportunity Act
The Sarbanes-Oxley Act
An ethics complaint was filed against a licensee for a code violation. What methods are used to resolve the complaint?
mediation and litigation
ombudsman program and arbitration
grievance committee and ethics hearing panel
hearing panel and arbitration
Sunshine Realty is rolling out a program to develop an ethical business culture. Establishing such a program is based on a number of targeted strategies. Which is NOT one?
Modeling desired behavior to employees
Requiring all employees to attend corrective counseling sessions
Treating all ethics complaints seriously
Providing corrective feedback and action when behavior is unacceptable
Licensee Pat has the “REALTOR” designation on her business cards. This means she:
has taken mandatory ethics training.
has successfully completed more than 1,000 property transactions.
must be a member of the National Association of REALTORS.
is not required to follow the NAR Code of Ethics.
Brokerage relationship disclosure forms must be given in single agent and no brokerage relationships when:
selling a triplex.
leasing a house.
selling new homes for a developer.
conducting an open house.
What does the term “Pathways to Professionalism” refer to in relation to the practice of real estate?
FREC monitoring of complaints against real estate professionals
A section in F.S. 475 specifying the relationship between real estate licensees and customers
A list of professional courtesies that REALTORS should voluntarily follow
A list of mandatory duties that REALTORS must follow or face litigation
Many states require licensees to follow a professional code of ethics. Reasonable sources of information for developing a professional code of ethics in real estate include all of the following, EXCEPT:
self-regulation by real estate associations that set standards for professional conduct.
federal and state laws that focus on anti-discrimination laws and fair-trade practices.
regulations on attempting to gain an unfair advantage over competitors.
real estate licensing regulations on the state level.
An investor is interested in purchasing a commercial site with an abandoned factory that was used to produced fertilizer. The investor plans to remove the factory and build a housing development. The real estate licensee involved in the sale of the property should alert the investor that the property may be a:
landfill contaminant site.
dump site.
toxic waste area.
brownfield site.
Yolanda is representing her seller client as a single agent. Single agency is a fiduciary relationship in which the agent owes the client certain duties. Which of the following is NOT considered a fiduciary duty?
Accounting for all funds
Confidentiality
Full disclosure
Obedience
A sales associate advertises a townhome that is listed with her broker. The ad contains a description and ends with “Call Sally at 999-444-5555.” Which statement regarding this ad is TRUE?
The ad is appropriate if it contains the brokerage firm’s phone number.
Only Sally’s first name is required to appear in the ad.
Sally’s last name and the licensed name of the brokerage firm must appear in the ad.
The ad must have the name of the brokerage firm but does not need to include Sally’s last name.
Real estate licensee Fiona published an ad of her listings that included her full name and her cell phone number but did not include the name of her broker firm. This ad is:
appropriate since she included her cell phone number.
appropriate since she included her full name.
an illegal blind ad since the brokerage firm’s name is not included.
an illegal blind ad since it does not include the brokerage firm’s phone number.
Christopher sold his house for a profit and found another house for sale that is just what he’s looking for. His real estate agent told him to make an offer quickly as there are multiple offers on the table. Of the following, which is the best strategy for Christopher to get his offer accepted in a multiple offer situation?
Include a $500 earnest money deposit
Offer a price slightly over the asking price
Present an all-cash offer
Provide a letter of prequalification from the lender
Which action by a real estate licensee might be considered unethical?
Explaining all defects in a property to a prospective buyer
Inviting a prospective buyer to engage the services of a licensed property inspector
Hosting a party in a vacant home to show the property that the licensee has listed for sale
Representing a seller as a single agent
Florida resident Ken rents a small cottage behind his house to vacationers. The city where Ken lives imposes a tax on the rental or lease of living, sleeping, or housekeeping accommodations of six months or less. What type of tax is this?
local option rental income tax
local option transient rental tax
local progressive rental tax
local rental sales tax
Real estate licensee Laila recently became a member of the National Association of REALTORS. The NAR Code of Ethics that members must follow contains four sections. Which is NOT one?
Duties to the Public
Duties to REALTORS
Duties to Disclose
Preamble
Landlord Pauline owns a property that contains four apartment units. One of the tenants moved out leaving the unit in a damaged state. Pauline is imposing a claim on the tenant’s security deposit to cover the damages. By law, she must give the tenant notice of the claim by certified mail within:
45 days.
30 days.
15 days.
10 days.
The Coastal Construction Control Line (CCCL) program:
requires the planting of wild sea oat plants seaward of the control line.
prohibits construction within a specified number of feet of the shoreline.
requires the use of particular building materials for shoreline properties.
requires that any construction seaward of the control line needs a CCCL permit, unless exempt.