Florida Realtor Sales Associate State Exam Study Guide Solutions

Florida Realtor Sales Associate State Exam Study Guide Solutions 1 Mile - ANSWER-5,280 feet 1 Acre - ANSWER-43,560 square feet = 208.71 feet x 208.71 feet 1 Township - ANSWER-Contains 36 sections = 36 miles squared Bill, a sales associate with ABC Realty, was not paid a commission he believes he earned. What recourse could Bill legally take? a. Lien the property of the seller. b. File suit against the seller for this share of the commission. c. File a suit against ABC Realty in court. d. Seek payment from the Real Estate Recovery Fund. - ANSWER-c. File a suite against ABC Realty in court. Under Florida law all listings and commissions are legally owed to the Broker. Therefore, sales associates are prohibited from initiating any suit or action for compensation in connection with a real estate transaction against any person except the person registered as their employer. An Illinois corporation transferred its employees to Miami, Florida and the firm retained a Florida broker to find homes for their employees. The attorney representing the Illinois corporation notifies the Florida Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 2/72 broker that in the state of Illinois, an attorney is recognized as a real estate broker. Therefore, he wants a referral fee. The Florida broker should: a. obtain verification that Illinois attorneys are recognized as brokers. b. not expect a referral from the Florida broker. c. notify FREC prior to expecting any referral fee. d. receive a referral fee because he is recognized as a broker. - ANSWER-a. obtain verification that Illinois attorneys are recognized as brokers. A broker pays a referral fee or shares a commission with a properly licensed broker from another state provided the out of state broker does not come to Florida and perform any act or service in negotiation of the transaction. A sales associate went to a closing and received a check for the total commission. The associate deposited it in his personal account and later wrote a check to his broker for his share. This would be: a. legal. b. illegal. c. legal if Broker authorized it. d. a first degree misdemeanor. - ANSWER-b. illegal. A sales associate cannot receive a check for the total commission. A broker is promoting a development and offers lottery tickets for $10 each with the condition that if he can sell 20 lots in one week, the winner of the lottery will be refunded 50% of the purchase of one of the broker's lots. At the end of the week only 16 lots have been sold. At that point, the broker declares the Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 3/72 lottery null and void and offers to refund the money paid for the purchase of the lottery tickets. Which is correct? a. This is an illegal situation under the license law because it is a lottery. b. This is an illegal situation under the license law because the broker declared the lottery null and void after tickets were sold. c. This is a legal situation because there was full disclosure of all terms of the contest. d. This is a legal situation if the broker agrees to void the sale of the lots and refund the money paid to purchase the lottery tickets. - ANSWER-a. This is an illegal situation under the license law because it is a lottery. A broker cannot use lotteries, equity trading schemes, or other devices, such as the selling of chances or free-lot schemes to induce any person to buy real estate. If Sally has violated F.S. 475, and this is her first offense, what is the maximum period of suspension she could receive? a. 90 days b. 120 days c. 5 years d. 10 years - ANSWER-d. 10 years The maximum period for which FREC may suspend a license is 10 years per Chapter 475.25, F.S. Broker A gets an offer on a parcel of real estate owned by an individual living in Ohio. The property is listed for $30,000, but the offer is for $28,000 cash with a $1,000 binder deposit. Broker A calls the Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 4/72 owner, who indicates the offer is acceptable and directs the broker to send a contract for him to sign. Shortly thereafter, Broker B gets an offer for $30,000 - 50% in cash and the balance to be owner financed - together with a $500 deposit and explains this to Broker A. What should Broker A do? a. Tell Broker B the property is sold. b. Tell the first buyer about the second offer. c. Submit both offers. d. Submit the second offer only if the seller modifies the first offer. - ANSWER-c. Submit both offers. All offers and counteroffers must be submitted to a client. Broker Brown has been told by seller-client Diaz that there are several clouds on the title to the listed property. Brown does not advise the buyer about the tittle problems because Brown knows the buyer will retain an attorney and purchase title insurance. Which is correct? a. Diaz is guilty of fraud for offering property for sale with title defects. b. Brown should not have taken the listing under these circumstances. c. Brown's conduct is a form of fraud and dishonest dealing. d. Brown and Diaz are both guilty of fraud and dishonest dealing. - ANSWER-c. Brown's conduct is a form of fraud and dishonest dealing. It is fraud and dishonest dealing for a broker to offer for sale any property where he or she has notice that the title is not merchantable (or that a mortgage or other liens exist against the property) unless he or she informs a prospective buyer of such conditions prior to payment of any portion of the sales price. Broker Paul is selling rental lists that are outdated. What would be true? Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 5/72 a. This is illegal. b. This is a form of fraud. c. This is a first degree misdemeanor. d. His license is now null and void. - ANSWER-c. This is a first degree misdemeanor. The only violation of Chapter 475 that is a first degree misdemeanor, punishable by a fine up to $1,000 and/or imprisonment for up to one year is advertising rental property information or lists that are not current or are materially inaccurate. A developer hires broker Smith to sell property that is encumbered by a blanket mortgage. Each lot may be released from the mortgage by payment of its $12,000 share of the principal balance. Broker Smith sells a lot for $10,500 without mentioning the existence of this mortgage to the buyer. Which is correct? a. Broker Smith has committed a fraudulent act. b. The developer must pay the difference. c. The buyer must pay the difference. d. No fraudulent conduct has occurred. - ANSWER-a. Broker Smith has committed a fraudulent act. It is fraud and dishonest dealing for a broker to knowingly sell or offer for sale any property which is covered by a blanket mortgage (a mortgage which also covers other property), unless the particular property sold or offered for sale may be released from the blanket mortgage at any time before a foreclosure sale. A non-licensee is collecting commissions. What action may be taken? a. The DBPR may issue a notice to cease and desist. Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 6/72 b. Only the state attorney may handle this matter. Only the county police where the non-licensee is operating may handle this matter. d. No action can be taken against non-licensees by the DBPR. - ANSWER-a. The DBPR may issue a notice to cease and desist. The DBPR is empowered to issue cease and desist notices to non-licensees who are operating in violation of real estate licensing laws. An active broker must have a/an: a. office. b. escrow account. c. listed telephone number. d. website with contact information. - ANSWER-a. office. Active brokers must maintain a physical office but are not required to have escrow accounts, telephone numbers, or websites. Of course, it is common for brokers to h