Bob Hogue Final Test Questions with
Complete Solutions
What is the purpose of an escrow account in real estate transactions?
✔✔To hold money in trust for parties involved in a transaction
Who is responsible for maintaining a sales associate's license status?
✔✔The sales associate
What must a sales associate do when they receive escrow funds?
✔✔Deliver them to their broker immediately
What is the definition of "dual agency"?
✔✔Representing both the buyer and seller in the same transaction
When must a real estate licensee renew their license after the initial license period?
✔✔Every two years
1
,What happens if a broker mixes personal funds with escrow funds?
✔✔This is called commingling and is a violation of license law
What is the term for a legal document transferring ownership of real property?
✔✔A deed
How long does a buyer have to cancel a contract for a new condominium after receiving the
documents?
✔✔15 days
What is the primary purpose of a home inspection?
✔✔To identify any potential issues with the property
What happens if a buyer cancels a contract within the inspection period?
✔✔The buyer is entitled to a refund of their deposit
What is a comparative market analysis (CMA)?
✔✔An evaluation of a property's value based on recent sales of similar properties
2
, What is required to create a valid real estate contract?
✔✔Offer, acceptance, consideration, and legal purpose
What is the maximum fine the Florida Real Estate Commission (FREC) can impose per
violation?
✔✔$5,000
What is the primary duty of a real estate agent in a fiduciary relationship?
✔✔To act in the best interest of their client
How long must a broker retain real estate transaction records?
✔✔At least five years
What happens if a licensee fails to complete their required continuing education?
✔✔Their license will become inactive
Who holds the title during a real estate transaction until the sale is completed?
3
Complete Solutions
What is the purpose of an escrow account in real estate transactions?
✔✔To hold money in trust for parties involved in a transaction
Who is responsible for maintaining a sales associate's license status?
✔✔The sales associate
What must a sales associate do when they receive escrow funds?
✔✔Deliver them to their broker immediately
What is the definition of "dual agency"?
✔✔Representing both the buyer and seller in the same transaction
When must a real estate licensee renew their license after the initial license period?
✔✔Every two years
1
,What happens if a broker mixes personal funds with escrow funds?
✔✔This is called commingling and is a violation of license law
What is the term for a legal document transferring ownership of real property?
✔✔A deed
How long does a buyer have to cancel a contract for a new condominium after receiving the
documents?
✔✔15 days
What is the primary purpose of a home inspection?
✔✔To identify any potential issues with the property
What happens if a buyer cancels a contract within the inspection period?
✔✔The buyer is entitled to a refund of their deposit
What is a comparative market analysis (CMA)?
✔✔An evaluation of a property's value based on recent sales of similar properties
2
, What is required to create a valid real estate contract?
✔✔Offer, acceptance, consideration, and legal purpose
What is the maximum fine the Florida Real Estate Commission (FREC) can impose per
violation?
✔✔$5,000
What is the primary duty of a real estate agent in a fiduciary relationship?
✔✔To act in the best interest of their client
How long must a broker retain real estate transaction records?
✔✔At least five years
What happens if a licensee fails to complete their required continuing education?
✔✔Their license will become inactive
Who holds the title during a real estate transaction until the sale is completed?
3
