BOB HOGUE UNIT 5 EXAM
QUESTIONS AND ANSWERS
1. John Anderson is a licensed real estate sales associate. Under which name may he
register and be licensed?
a. Complete Real Estate Sales Services
b. John Anderson Brokerage
c. John Anderson, LLC
d. John Anderson and Partners - Correct Answers -c. John Anderson, LLC
2. A sales associate receives a binder deposit from a buyer on Monday. By the end of
business on what day of the week must the broker deposit the funds into the escrow
account?
a. Tuesday
b. Wednesday
c. Thursday
d. Friday - Correct Answers -c. Thursday
3. Real estate sales associates who receive checks payable to them as deposits on the
purchase of real property must
a. endorse the checks, deposit them in their employers' accounts, and maintain good
records.
b. endorse the checks and immediately turn them over to their employers.
c. deposit the checks immediately in their own accounts and notify their employers of
the transactions.
d. deposit the checks immediately and give their employers the equivalent amounts in
the form of checks or cash - Correct Answers -b. endorse the checks and immediately
turn them over to their employers.
12. Which business entity may be registered as a real estate broker?
a. Corporation sole
b. Cooperative association
c. Limited partnership
d. Business trust - Correct Answers -c. Limited partnership
, 13. A broker is preparing to open Sunnyside Realty as a sole proprietorship and is
placing an order to have an entrance sign made. Which wording does NOT need to be
included on the sign?
a. Sunnyside Realty
b. The broker's legal name
c. Licensed real estate broker
d. 1000 Sunset Blvd. - Correct Answers -d. 1000 Sunset Blvd.
14. A licensed real estate broker and an attorney who specializes in contract law form a
joint venture for the purpose of locating and selling to investors raw land that is suitable
for commercial development. Which statement is TRUE regarding this arrangement?
a. The attorney is exempt from the requirement to hold a broker's license because she
is an attorney.
b. They have formed an illegal ostensible partnership.
c. Because they are performing real estate services for compensation, both must be
licensed real estate brokers.
d. A joint venture is not required to register with the DBPR; therefore, there is no need
for both parties to hold real estate licenses. - Correct Answers -c. Because they are
performing real estate services for compensation, both must be licensed real estate
brokers.
4. Which statement is FALSE regarding escrow accounts?
a. The escrow account may be either interest bearing or non-interest-bearing.
b. A broker may choose to have an attorney or a Florida title company maintain the
escrow account.
c. It is illegal for the broker to keep any earned interest even if the buyer and the seller
give written permission.
d. A broker must get written authorization from the buyer and the seller before placing
escrow funds in an interest-bearing escrow account. - Correct Answers -c. It is illegal for
the broker to keep any earned interest even if the buyer and the seller give written
permission.
5. A dispute arises between the buyer and the seller as to which one is entitled to
escrowed property. The broker should first
a. mediate the matter.
b. arbitrate the matter with the consent of both parties.
c. notify the FREC in writing, unless exempted from the notice requirements.
d. submit the matter to a court of law for adjudication. - Correct Answers -c. notify the
FREC in writing, unless exempted from the notice requirements.
QUESTIONS AND ANSWERS
1. John Anderson is a licensed real estate sales associate. Under which name may he
register and be licensed?
a. Complete Real Estate Sales Services
b. John Anderson Brokerage
c. John Anderson, LLC
d. John Anderson and Partners - Correct Answers -c. John Anderson, LLC
2. A sales associate receives a binder deposit from a buyer on Monday. By the end of
business on what day of the week must the broker deposit the funds into the escrow
account?
a. Tuesday
b. Wednesday
c. Thursday
d. Friday - Correct Answers -c. Thursday
3. Real estate sales associates who receive checks payable to them as deposits on the
purchase of real property must
a. endorse the checks, deposit them in their employers' accounts, and maintain good
records.
b. endorse the checks and immediately turn them over to their employers.
c. deposit the checks immediately in their own accounts and notify their employers of
the transactions.
d. deposit the checks immediately and give their employers the equivalent amounts in
the form of checks or cash - Correct Answers -b. endorse the checks and immediately
turn them over to their employers.
12. Which business entity may be registered as a real estate broker?
a. Corporation sole
b. Cooperative association
c. Limited partnership
d. Business trust - Correct Answers -c. Limited partnership
, 13. A broker is preparing to open Sunnyside Realty as a sole proprietorship and is
placing an order to have an entrance sign made. Which wording does NOT need to be
included on the sign?
a. Sunnyside Realty
b. The broker's legal name
c. Licensed real estate broker
d. 1000 Sunset Blvd. - Correct Answers -d. 1000 Sunset Blvd.
14. A licensed real estate broker and an attorney who specializes in contract law form a
joint venture for the purpose of locating and selling to investors raw land that is suitable
for commercial development. Which statement is TRUE regarding this arrangement?
a. The attorney is exempt from the requirement to hold a broker's license because she
is an attorney.
b. They have formed an illegal ostensible partnership.
c. Because they are performing real estate services for compensation, both must be
licensed real estate brokers.
d. A joint venture is not required to register with the DBPR; therefore, there is no need
for both parties to hold real estate licenses. - Correct Answers -c. Because they are
performing real estate services for compensation, both must be licensed real estate
brokers.
4. Which statement is FALSE regarding escrow accounts?
a. The escrow account may be either interest bearing or non-interest-bearing.
b. A broker may choose to have an attorney or a Florida title company maintain the
escrow account.
c. It is illegal for the broker to keep any earned interest even if the buyer and the seller
give written permission.
d. A broker must get written authorization from the buyer and the seller before placing
escrow funds in an interest-bearing escrow account. - Correct Answers -c. It is illegal for
the broker to keep any earned interest even if the buyer and the seller give written
permission.
5. A dispute arises between the buyer and the seller as to which one is entitled to
escrowed property. The broker should first
a. mediate the matter.
b. arbitrate the matter with the consent of both parties.
c. notify the FREC in writing, unless exempted from the notice requirements.
d. submit the matter to a court of law for adjudication. - Correct Answers -c. notify the
FREC in writing, unless exempted from the notice requirements.
