Which one of the following individuals is exempt from the requirement for real estate licensure?
An employee of a corporation who receives a commission for leasing company property
An entrepreneur who helps match buyers from overseas with real estate brokers for a fee
A person selling his or her own property
A property manager leasing apartments for an absentee owner
What is the purpose of licensing?
To allow real estate professionals to make money
To protect the public by requiring certain education, training, and standards of licensees
To provide a source of income for the state
To standardize the requirements of real estate professionals across the U.S.
A Florida broker associate owns a brokerage in Destin. He is registered as the brokerage’s director, and maintains an office in his home. His one broker and one sales associate work out of his home office. Which one of the following is true of the minimum office requirements for Florida real estate brokerages?
Broker associates may not be registered as director of a brokerage.
Broker associates may not own brokerages in Florida.
Each brokerage office in Florida must have at least three associates (either broker associates or sales associates).
Home offices are not permitted in Florida
Which area of real estate law covers how an agency relationship is created and the duties of an agent to the principal?
Contract law
General property law
State-specific license laws
The law of agency
Regarding their employment classification, unlicensed assistants in Florida are most often ______.
Dependent contractors
Employees
Independent contractors
Unpaid interns
A person who’s performing real estate activities under the judgment or order of a court, such as a trustee in a bankruptcy, is ______.
Not required to have a real estate license
Required to have a broker license
Required to have at least an associate broker license
Required to have at least a salesperson license
Regarding documentation, which of the following actions can help a licensee avoid being accused of unauthorized practice of law?
Disclosing in writing to all parties in a transaction that the licensee isn’t a licensed attorney, so there’s no licensee liability
Having a designated broker review and notarize all completed contracts
Having a designated broker write all contracts from scratch to make them specific to each transaction
Using approved fill-in-the-blank forms
How does the requirement that real estate professionals be licensed protect the public?
By establishing a nationwide standard that all licensees must adhere to
By requiring all licensees to obtain a broker’s license
By requiring licensees to have certain education, training, and standards
By requiring that real estate professionals have a degree in business
Which one of the following statements about real estate licenses is true?
All real estate professionals have the same type of license.
Before you can legally perform any activities that licensed real estate professionals perform, you must have your real estate license.
Having a real estate license means you can legally draft a contract.
Real estate licenses do not expire; consequently, there is no requirement to renew them.
Carmen’s broker just had his license revoked. What does this mean for Carmen?
Her license becomes involuntarily inactive.
Her license is revoked, too.
Nothing changes for Carmen.
She’ll be automatically transferred to another broker.
Dolcita is an unlicensed assistant for licensee Glynnis at Gator Realty in Destin. Which of the following best describes how Dolcita can be compensated for her work?
As a percentage of Glynnis’s earned commission
Hourly, salaried, or as a percentage of Glynnis’s earned commission
Hourly, salaried, or per activity
Hourly, salaried, per activity, per transaction closed, or as a percentage of Glynnis’s earned commission
A licensee and their buyer client are reviewing the client’s offer before they submit it to the seller. Which one of these actions may the licensee take without potentially crossing into the unauthorized practice of law?
Draft their own offer form.
Strike through any paragraphs the buyer client doesn’t like, even the ones required by federal or state law.
Tell the buyer client that hiring an attorney to review the contract would be a waste of money since the licensee is perfectly qualified to explain the legal ramifications of the contract terms.
Use standard, approved language in contingencies, addenda, and additional provision areas.
Which area of real estate law covers the rights of ownership and tenancy, and the government’s rights and authority under eminent domain?
Contract law
General property law
Law of agency
State-specific license laws
Which one of the following individuals must have a real estate license to perform the real estate services described?
A motel clerk renting overnight rooms at the motel
An agent advertising estate services
A person renting lots in a mobile home park
The owner of a timeshare who resells the timeshare
While working with a buyer client, the licensee filled in the blanks on the purchase agreement, drafted an early occupancy addendum, and assured his buyer that she was “fully protected” and would get her earnest money back if the sale didn’t close. He encouraged her to hire an attorney to review the contract and addendum, and then invoiced her for a nominal $15 fee to prepare transaction documents. Which of the following tasks was the licensee legally permitted to do?
Charge a fee for preparing legal documents
Draft the early occupancy addendum
Fill in the contract blanks
Interpret the contract provisions regarding the buyer’s full protection and getting her earnest money returned
Unauthorized practice of law and acting outside the scope of one’s expertise are similar issues. Which of the following circumstances specifically relates to the unauthorized practice of law?
Predicting a specific tax increase or decrease
Predicting the return on investment for a rental property
Recommending specific investments
Writing contract addenda or additional provisions that cover unfamiliar circumstances
Stefan is an unlicensed assistant for the Ace Team at Acme Realty in Florida. Which of these activities can he perform?
Calculate commissions for team members.
Explain listing information to a client.
Host an open house.
Solicit business for the team.
Which one of these statements by a licensee to a client is the unauthorized practice of law?
“I’d encourage you to have an expert look at the exceptions on your title insurance commitment.”
“Most couples take ownership of property as joint tenants, so that’s what I’d advise.”
“The contingency clauses in your contract give you options to terminate the contract if, for example, your financing falls through.”
“We can add the brokerage firm’s standard language into the ‘additional provisions’ section to cover what you’re suggesting.”
Which of the following is considered unauthorized practice of law?
Explaining a clause in a contract to a client
Interpreting the legal consequences of a client’s actions
Using existing forms an attorney has reviewed
Using standard language for addenda
Which one of the following options describes a party who must possess a real estate license before performing real estate activities?
Attorneys performing legal services for a client
Owner/developers and their salaried employees (as long as they don’t receive a commission)
Persons holding a duly executed power of attorney from the real property’s owner
Persons representing buyers or sellers who will receive compensation for their services.
Which area of real estate law covers the requirements of a licensee when performing real estate activities within the state, including continuing education requirements, supervisory requirements, and prohibited conduct?
Contract law
General property law
Law of agency
Real estate license law
Eliza is an unlicensed assistant for the In It to Win It Team at Everglades Realty in Miami. Tom is an associate broker on the team. Which of these activities must be performed by Tom and not Eliza?
Assembling documents for closing
Following up on a loan’s processing status with a mortgage broker
Negotiating a commission with a client
Writing advertisements for broker approval
Broker Amanda hires Jake to be an assistant at her firm in Sarasota. She would like to compensate Jake on a completed-transaction basis. For this to be permissible, Jake must ______.
Be licensed
Be paid in cash
Receive no more than $4,000 in a single month
Report the income on his taxes
Which of the following actions concerning tenant rights should real estate licensees take?
Advise landlords on their legal rights and responsibilities to tenants under the law.
Advise tenants on their legal rights and responsibilities under the law.
Ignore tenants’ legal rights.
Learn and understand tenants’ legal rights.
A licensee filled in the blanks on a standard form used in their brokerage firm. Is this okay?
No, because they are not an attorney, he shouldn’t prepare contracts.
No, they should have his client complete any forms.
Yes, licensees can use standard forms provided by the brokerage or approved by an attorney.
Yes, real estate licensees may draft contracts and fill in blanks on existing contracts.
A real estate licensee is preparing a sale agreement that will include an unusual circumstance. What’s their best course of action?
Consult an attorney.
Create his own forms.
Use an existing form and write an addendum that covers the unusual circumstance.
Use existing forms but modify the language to address the unusual circumstance.
A licensee is working with a buyer client who wants a special clause added to his purchase contract. How should the licensee handle this?
Ask the client to draft the clause, then insert it into the contract.
Draft the clause and have the client run it by his attorney.
Instruct the client to hire an attorney to draft the clause.
Tell the client that he doesn’t need that particular contract clause.
Which of these actions is allowed and helps the licensee to avoid illegally practicing law?
Advising a landlord client of his legal rights and responsibilities
Charging a $10 scrivener’s fee for preparing transaction documents
Filling in blanks on an association-approved purchase contract
Striking provisions in a contract that don’t apply to a transaction
Loretta is an unlicensed assistant in Ft. Lauderdale. Which of the following tasks is she permitted to perform for her broker?
Assemble closing documents.
Call prospective clients to solicit business.
Host an open house.
Interpret contract information for a client.
Which of the following tasks would require a real estate license in Florida?
Assemble closing documents
Calculate a commission check
Host an open house
Place a for-sale sign in a front yard
Which area of real estate law governs the use of contracts, explains the elements required to make a contract valid, and describes what happens if a breach of contract should occur?
Contract law
General property law
Law of agency
State-specific license laws