MAGNOLIA SCHOOL OF REAL ESTATE UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

MAGNOLIA SCHOOL OF REAL ESTATE UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS

Question:
1. What is the difference between a rental agent and property manager? (cha 1)
Answer:
A rental agent works with potential rentals and finds them a rental. A property manager does the same, but
also manages the property after finding the renter.

Question:
2. Why has the field of property management experienced such rapid growth (ch 1)
Answer:
The increase of absentee owners

Question:
3. Is a property manager that is paid a salary plus on a transactional basis, required to be an actively
licensed broker? (chap 1)
Answer:
Yes

Question:
4. Our sales associates permitted to perform appraisals (chap 1) (ON EXAM)
Answer:
Yes. legally allowed to perform appraisals. because appraisal is a service of real-estate.

Question:
5. Is a property manager that is paid strictly salary required to be an active broker? (chap
1)
Answer:
No, only pay a salary.
if paid a commission then he needs a real state license.
word like bonus/ a transactional basis also needs a license

Question:
6. The subject property is a three-bedroom, two-bath home. A comparable property is a three-bedroom,
two and one-half-bath home. An appraiser has determined that the extra half bath is worth about $2,200.
What adjustment should the appraiser make? (ON EXAM) (chap 1)
Answer:
Subtract $2,200 from the comparable's transaction price.
IF YOU SEE THIS QUESTION DISCARD ADD OR SUBTRACT FROM SUB- JECT!!! IT MUST BE
ADD OR SUBTRACT FROM COMPARABLE!!! CBS= IF COMPARABLE IS BETTER SUBTRACT!

,Question:
7. What kind of residential construction involves a builder purchasing one or more lots and constructing a
home or homes without a buyer in advance of construction? (chap
1)
Answer:
Speculative home

Question:
8. What kind of residential construction involves a builder in contract with a buyer, and the buyer decides
what kind of design the house will have? (chap
1)
Answer:
Custom home

Question:
9. What kind of residential construction is similar to speculative building and is done in a new subdivision
with several model homes? (cha 1)
Answer:
Tract home

Question:
10. When is a new sales associate legally allowed to refer to themselves as a REALTOR? (chap 1)
Answer:
When they have joined the National Association of REALTORS

Question:
11. What do you call a person who performs real estate services for compensation, but who does so under
the direction and control of a broker or an owner-developer (builder)? (chap 1)
Answer:
Sales associate

Question:
12. What is Florida statute 475? (CHAP 2)
Answer:
Law that establishes the legal rights and responsibilities of real estate licensees and real estate appraisers.

Question:
13. How many parts does Florida statute 475 have? (CHAP 2)
Answer:
4.
F.S 475 PART I- LAWS PERTAINING TO BROKERS/BROKER ASSOCI- ATE/SALES ASSOCIATE.
F.S 475 PART II- LAWS PERTAINING TO APPRAISERS.
F.S 475 PART III- COMMERCIAL REAL ESTATE SALES COMMISSION LIEN ACT.
F.S 475 PART IV- COMMERCIAL REAL ESTATE LEASING COMMISSION LIEN ACT.

Question:
14. What is Florida statute chapter 455? (CHAP 2)

,Answer:
Law that defines the general legal practices of the DBPR (department of business and professional
regulation).

Question:
15. What is Florida statute 120? (chap 2)
Answer:
The Administrative procedures act

Question:
16. What is chapter 61j2(chap 2)
Answer:
The rules of the Florida Real Estate Commission (FREC)

Question:
17. Reciprocity (CHAP 2)
Answer:
PRACTICE OF MUTUAL EXCHANGE OF PRIVILEGES FOR MILITARY.

Question:
18. mutual recognition (CHAP 2)
Answer:
NON- FL RESIDENTS THAT HAVE A LICENSE IN ANOTHER STATE CAN BE GIVEN A 40
QUESTION TEST THEN A LICENSE.

Question:
19. sales associate (chap 2)
Answer:
A person who performs real estate activities while employed by a licensed real estate broker.

Question:
20. Broker Associate (chap
2)
Answer:
A person who holds a broker's license but chooses to register and work in real estate under the direction of
another broker.

Question:
21. broker (chap 2)
Answer:
A person who, for another and for compensation or other consideration, performs real estate services but
not under the direction of another.

Question:
22. What do you call a person who, for compensation performs real estate services, but not under the
direction or control of another? (cha 1)

, Answer:
Broker

Question:
23. What do you call a person who holds a brokers license but chooses to register and work in real estate
under the direction of another broker? (chap 1)
Answer:
Broker associate

Question:
24. If an owner developers sales staff receives commission, what must they have? (chap 1)
Answer:
An active real estate license

Question:
25. If an owner developers sales staff does not receive commission or compensation based on transactions
or bonuses, is the sales staff required to hold an active real estate license? (chap 1)
Answer:
No

Question:
26. What is the status of a sales associates license if he does not complete the required 45-hr post licensing
course before the first expiration of his license? (CHAPTER
2) (on exam)
Answer:
Null and void (ONLY TIME IT WOULD BE THIS ANSWER) (ANYTHING REGARDING STATUS
OF YOUR LICENSE AND POST LICENSE IN THE QUES- TION)

Question:
27. Which of the following statements is true concerning continuing education? (cha 2-3) (on exam)
Answer:
Actively licensed and inactively licensed sales associates must complete the 14 hours of continuing
education.
(wether you decided to sale real-estate now or later you can stay inactive without a brokerage as long you
keep up with your 14 hours CME every 2 years)

Question:
28. After the post license course has been completed, how long does a sales associate have to complete the
required 14 hour continuing education course? (chap 2)
Answer:
2 years

Question:
29. Who is required to complete the continuing education? Is it actively licensed sales associate or actively
and inactively licensed sales associates? (chap
2)