Gold Coast End of chapter Questions 1-19 with correct Answers

Which of the following statements is true regarding a mortgage loan originator? - Answer- A mortgage loan originator must have a separate license. A real estate appraiser's fee for professional service is based on which of the following? - Answer- The time and difficulty of the appraisal Which of the following best describes the real estate brokerage business? - Answer- Service Business When a developer completes construction of a new subdivision, all streets, electric, water, and sewer installation are finished and deeded to the city or county. What is this process called? - Answer- Dedication All of the following are responsibilities of a property manager, EXCEPT: - Answer- Preparing Leases What does the term "farming" refer to in real estate? - Answer- Specializing in one geographic area Which insurance policies can a real estate licensee offer to the public without additional state licensing? - Answer- None of the Above What is the purpose of the National Association of REALTORS®? - Answer- Preserve the right of individuals to own real property through of an exchange of information What does the designation of REALTOR® signify? - Answer- The designation identifies the real estate professional as a member of NAR developer contracts to build a home according to the buyer's This is an example of which specifications. type of building? - Answer- Custom The federal, state, and local governments all play a role in the regulation of real estate. In which of the following areas would the local government have the most impact? - Answer- Property taxes, building moratoriums, and zoning Which of the following best describes licensees who are involved in business opprtunity brokerage? - Answer- They must be able to analyze financial statements and understand balance sheets Real estate licensees are expected to be knowledgeable in all of the following areas, EXCEPT: - Answer- Accounting Which service provided by real estate licensees requires the most experience and knowledge? - Answer- Counceling An appraiser, who is registered, licensed, or certified under F.S. 475, Part II, must be utilized in which of the following? - Answer- All appraisals In what year was the Florida Real Estate Commission created? - Answer- 1925 What is the purpose of the real estate license law? - Answer- To protect the public Why was the Florida Real Estate Commission created? - Answer- To administer and enforce the law A sales associate failed to complete the required post-license education prior to renewal. What is the status of the license? - Answer- Placing and keeping on record the sales associates name, home address and business address of his or her employing broker How may a licensed sales associate be paid by his or her owner-developer? - Answer- On a commission or salary basis What are the minimum employment requirements for a licensed sales associate to qualify for a real estate broker's license? - Answer- Employed for 24 months under one or more actively licensed brokers How many hours of post-license education are required to renew a broker license? - Answer- 60 All of the following services require a real estate license, EXCEPT: - Answer- Mortgaging All of the following information appears on a Florida real estate license, EXCEPT: - Answer- The signature of the Governer What must an applicant for a real estate license do if he or she has been convicted of a crime? - Answer- The applicant must disclose all convictions on the application Which condition must exist for an applicant to qualify for a florida real estate license? - Answer- The applicant must have a high school education or equivalent Which of the following statements best describes an attorney-in-fact? - Answer- An attorney in fact is authorized by a power of attorney to act for another Which individual is exempt from the licensing requirements of Florida Statute 475? - Answer- An attorney who performs legal duties in connection with a real estate transaction Complete this statement. An actively licensed attorney who is a member in good standing with the Florida Bar - Answer- Is excempt from continuing education requirements to maintain a real estate license What is a broker associate - Answer- A broker who is employed as a sales associate Florida has an agreement with some other states that for licensees. What is the agreement education and experience requirements recognizes the similarity in called? - Answer- Mutual recognition Which of the following statements is true regarding a plumber who has been appointed by a court to appraise a small business? - Answer- The plumber may do so, and be paid a fee All of the following individuals are exempt from the real estate license law, EXCEPT: - Answer- Funeral directors performing duties of real estate for commission A georgia broker with extensive experience in conducting auctions was asked by a local real estate broker to auction did not result in a sale. The florida broker paid the georgia broker for out if pocket expenses, but did not pay a commission. Which of the following statements is correct? - Answer- The georgia broker violated license law. The Department of Business and to issue Professional Regulation has the authority all of the following, EXCEPT: - Answer- An injuction What is the maximum number of years a member may serve on the Florida Real Estate Commission? - Answer- No maximum Which statement is true regarding the secretary of the Department of Business and Professional Regulation? - Answer- The secretary is appointed by the governer Which statement is true regarding examination questions and answers? - Answer- They are confidential Which of the following entities issues real estate licenses? - Answer- The department of business and professional regulations After being active in the real estate business for over five years, a licensee's license expired on September 30th. What is the status of the license on October 1st? - Answer- Involuntary inactive The Florida Real Estate Commission held a meeting for the purpose of passing a new rule. This is an exercise of which Commission power? - Answer- Quasi-legislative Which of the following statements is true regarding the director of the Division of Real Estate? - Answer- The director is appointed by the secretary of the department of business and professional regulation The Department of Business and Professional Regulation is created by which statute? - Answer- F.S 455 If an applicant for a real estate license provides false information, they commit which of the following criminal violations? - Answer- Third degree felony What action may the Department take if it determines that an unlicensed person has operated in violation of a law or rule under its administration? - Answer- An administrative fine up to $5,000 may be imposed Educational requirements of applicants for a real estate license are promulgated under what authority of the Florida Real Estate Commission? - Answer- Excecutive When is a request for the renewal of a license effective? a. when recieved by the department b. the day following the experation c. on the date the application is mailed d. on the date indicated on the license - Answer- When recieved by the department When does a real estate license expire? - Answer- On the date shown on the license New Commission rules must be approved by which of the following? - Answer- No one How long may a license remain in voluntary inactive status? - Answer- Indefinitely Which of the following best describes certificates that are entered into court as evidence? - Answer- Prima Facie Evidence Violations of the Commission rules are prosecuted by which agency? - Answer- Department of business and professional regulation A sales associate is employed by a broke Monday through Friday and for a builder on the weekends. The sales associate feels the added experience is beneficial especially since both employers pay an attractive commission split. Which statement is correct? - Answer- This arrangement violated the license law Who owes fiduciary duties in a single agency relationship? - Answer- The broker only All of the following activities are exempt from the requirement to provide disclosures under the Brokerage Relationship Disclosure Act, EXCEPT: - Answer- Showing properties to a party that is not being represented As an agent, a broker is employed by and acts on behalf of whom? - Answer- A principal In which of the following situations does a general agency relationship exist? - Answer- When a sales associate is employed by a broker Broker Joan just received an oral offer to purchase a listed property. No earnest money accompanied the oral offer. Which of the following statements is correct? - Answer- Joan must present the offer Which of the following statements best describes a transaction broker? - Answer- A transaction broker may provide limited representation to both parties An agent failed to advise a principal regarding the value of the owner's property prior to accepting a listing. Which fiduciary duty did the agent breach? - Answer- Disclosure Broker Tom sold a property, which was listed with broker Alice. Tom was unable to attend the closing, so Alice collected the entire commission. Alice refused to pay Tom his share of the commission. What could Alice be charged with? - Answer- Failure to account Mary, an Ohio broker, accompanied a customer to florida and met with broker Stan in his office in Miami. While stan showed the customer property and obtained a binding contract for the purchase of a condominium, mary took some time off and went to the beach. When Mary returned to Stan's office, she discovered that Stan had written a contract and demanded a share of the commission. Which statement is correct? - Answer- Stan may share the commission with Mary What is an agent required to do in an agency relationship? - Answer- Attempt to obtain the most favorable price and terms on behalf of the principle When can an agent disclose confidential or harmful information about a principal? - Answer- Never Each of the following is contained in the definition of a residential transaction, EXCEPT: - Answer- Dispositions of business interests involving property of five or more residential units When can both parties in a transaction pay a broker a commission? - Answer- When both parties agree to the dual commission All of the following provide control of agency relationships, EXCEPT: - Answer- The department of financial services Which of the following statements best describes policy and procedures manuals? - Answer- Policy and procedures manuals are useful in maintaining good relations within a brokerage office A broker has appointed two sales associates to act as agents in a nonresidential transaction, one for the seller and one for the buyer. Which statement is correct? - Answer- The sales associated are referred to as designated sales associates Each of the following relationships is adversarial, EXCEPT: - Answer- Fiduciary In which circumstance are licensees expected to act with fairness and honesty? - Answer- Any real estate transaction According to the Brokerage Relationship Disclosure Act, which is the only brokerage relationship form that must be signed or initialed? - Answer- Consent to transition to transaction broker Which of the following statements is correct regarding a broker's authority to act on behalf of the principal? - Answer- A broker must follow all legal instructions of the principle or withdraw A sales associate licensed with a real estate brokerage corporation can be which of the following? - Answer- A stockholder Six individuals decide to form a real estate brokerage partnership. All six individuals are planning to be active in real estate sales. Which of the following statements best applies? - Answer- The partnership must be registered with the department, and all six partners must be active real estate brokers. Which of the following statements is correct regarding a licensed broker associate who is with a real estate brokerage partnership? - Answer- The broker associate must hold an active brokers license All of the following business formations can register to conduct real estate transactions, EXCEPT: - Answer- Corporation Sole If a broker has conflicting demands on money held in escrow, what is the first thing the broker should do? - Answer- Notify the florida real estate commission in writing If a sales associate receives a postdated check, which of the following is the most appropriate action? - Answer- The sales associate should immediately give the check to her employing broker Which of the following statements re