FLORIDA 2-20 STATE PRACTICE EXAM NEWEST WELL STRUCTURED 200 QUESTIONS AND WELL GRADED ANSWERS

FLORIDA 2-20 STATE PRACTICE EXAM NEWEST WELL STRUCTURED 200 QUESTIONS AND WELL GRADED ANSWERS State and federal telemarketing laws restrict telephone solicitation calls to what hours? a. 8:00 am to 5:00 pm b. 8:00 am to 6:00 pm c. 8:00 am to 9:00 pm d. 9:00 am to 8:00 pm c. 8:00 am to 9:00 pm A dispute over escrowed funds arises between the buyer and seller. The broker notifies the FREC of the conflicting demands and requests that the Commission issue an escrow disbursement order; however, the FREC declines. Which alternative method CANNOT be used to resolve the matter? a. Petition for review of appeal b. Mediation c. Arbitration d. Litigation a. Petition for review of appeal A broker of a large office hired a certified public accountant (CPA) and a full time bookkeeper to manage the escrow account. Which statement is TRUE regarding this situation? a. The broker is relieved of liability in the event there is an escrow violation because a certified CPA has been hired to manage the escrow account. b. Both the CPA and the bookkeeper must also hold a real estate license if they are going to write checks on the escrow account. c. The broker is required to personally prepare the monthly escrow account reconciliation statement. d. The broker must be a signatory on the escrow account. d. The broker must be a signatory on the escrow account. A broker has an agreement with a local rental car agency. The agreement stipulates that the broker will pay a $25 referral fee to the rental car agency for each prospective buyer referred to the broker. Which applies? a. This is a legal kickback or rebate. b. This is legal, provided the broker informs each prospect of the agreement. c. Florida Real Estate Law prohibits all kickbacks and rabates. d. The broker is in violation of Chapter 475, F.S., because he has promised to compensate an unlicensed person for the referral of real estate business. d. The broker is in violation of Chapter 475, F.S., because he has promised to compensate an unlicensed person for the referral of real estate business. In which situation is the broker NOT exempt from the notice requirements regarding conflicting demands? a. A sale of HUD owned property that uses a HUD sale contract. b. A dispute over escrow funds related to a property inspection c. A buyer's cancellation of a residential condominium purchase agreement within the allowable time period for review d. A buyer's inability to secure financing for the purchase according to the terms of the contract b. A dispute over escrow funds related to a property inspection Which type of statutory deed is typically used to clear clouds on the title? a. Quitclaim b. Bargain and sale c. General warranty d. Special warranty a. Quitclaim A property owner builds a bridge across a stream he owns, but the footing on the other side extends onto this neighbor's property. The legal term for this action is a. easement. b. implied easement c. encroachment d. subrogation of space. c. encroachment A buyer signs a contract to purchase a property that is subject to a mandatory homeowners association. The buyer did not receive a disclosure concerning the association before signing the sale and purchase contract. Which statement is TRUE? a. The buyer may cancel the sale contract within three days of signing the contract. b. The buyer may cancel the sale contract wit in three days unless the buyer waives this right in the contract. c. The buyer may cancel the sale contract within three days after receiving the disclosure. d. The buyer may cancel the sale contract within three days after closing. c. The buyer may cancel the sale contract within three days after receiving the disclosure. When an offeror withdraws an offer before acceptance, the offeror has a. abandoned the offer. b. revoked the offer. c. counteroffered d. breached the contract. b. revoked the offer. A property owner and a broker decide to sell $20 lottery tickets to prospective customers for a chance to win the owner's property. They announce that if 1,000 tickets are sold, the winning ticket will get the property free and clear. However, if less than 1,000 tickets are sold, the winning ticket will get the property for a price of $200,000 minus the value of the tickets sold. Which statement is TRUE? a. The owner and broker have devised an innovative marketing plan. b. The broker may be charged with fraudulent and dishonest dealing by trick, scheme, or device. c. The broker must file the lottery plan with the Florida state lottery. d. The broker may be charged with a violation of the statute of frauds. b. The broker may be charged with fraudulent and dishonest dealing by trick, scheme, or device. The phrase "time is of the essence" means a. the buyer wants to take possession quickly. b. the seller wants to close quickly. c. actions are required by dates set forth in the agreement d. a specified period of time must lapse before the contract can legally be concluded. c. actions are required by dates set forth in the agreement A seller and buyer enter into a real estate contract. The seller defaults. The buyer sues the seller to go through with the contract. This action is known as a suit for a. specific performance b. damages. c. unliquidated damages d. declaratory judgment a. specific performance Which statement is TRUE regarding listing agreements? a. The sales associate earns the commission. b. An exclusive-agency listing provides for the broker to earn a commission no matter who is the procuring cause. c. Procuring cause disputes between licensees are typically settled in small claims court. d. If required to effect a sale, the commission is earned only if the buyer closes on the property. d. If required to effect a sale, the commission is earned only if the buyer closes on the property. The statute that requires an injured party to bring an action within a specific period of time after the injury is the statute of a. obligations b. limitations c. frauds d. specific enforcement b. limitations Which written instrument authorizes a person to act for and on behalf of another person? a. Attorney in fact b. Lis pendens c. Option d. Power of attorney d. Power of attorney If a broker is given the right to sign a real estate sale contract that will be binding on the seller, the broker is a. an attorney in fact b. given general power of attorney. c. a special agent trustee d. the attorney of record. a. an attorney in fact A real estate licensee is NOT authorized to draw which contract? a. Option b. Buyer-brokerage c. Lease d. Sale and purchase c. Lease A listing to sell property and obtain a specified amount for the owner-principal is called a. an open listing. b. an exclusive right to sell listing. c. an implied listing d. a net listing. d. a net listing. The term procuring cause is most significant in which type of listing? a. Open b. Exclusive-agency c. Exclusive right to sell d. Net a. Open If a property has been cited as being in violation of building code, the seller must provide a disclosure to the buyer. Which statement is TRUE regarding the disclosure? a. The seller must correct the violation before closing or credit the buyer with the cost to correct b. The seller must deposit with the closing agent an amount equal to the cost to clear the violation. c. If the seller does not clear the violation before closing, it becomes the buyer's responsibility to clear the violation. d. The seller must notify the code enforcement agency of the new owner's name and address within 30 days after closing. c. If the seller does not clear the violation before closing, it becomes the buyer's responsibility to clear the violation. In a valid option contract to purchase real estate, the optionee a. is the prospective seller of the property. b. must purchase the property within the option period. c. has no obligation to purchase the property. d. is limited to a refund of the option consideration if the option is exercised. c. has no obligation to purchase the property. Any contract that obligates both parties to perform in accordance with the terms of the contract is a. an unenforceable contract b. a unilateral contract c. a bilateral contract d. a voidable contract. c. a bilateral contract A broker mailed a signed purchase offer to a property owner. Instead of singing the purchase offer contract, the owner sent the broker a telegram accepting the offer. Which is correct? a. There has been a valid offer but not a legal acceptance. b. There is a valid contract between the buyer and seller. c. There has been a valid offer and a telegraphic acceptance but not an enforceable contract. d. To be enforceable, a contract must contain the offer and acceptance within the same instrument. b. There is a valid contract between the buyer and seller. A 17 year old high school student has entered into a contract to purchase an adult's car. This is a. a void contract b. an illegal contract c. an option contract d. a voidable contract d. a voidable contract A seller and a buyer negotiated the sale and purchase of the seller's condominium over a two week period. Finally, they reached a meeting of the minds regarding the purchase price and terms of the sale. What type of contract exists at this point? a. Implied contract b. Express contract c. Executed contract d. Option contract b. Express contract A broker must give a copy of the written listing agreement to the seller a. at the time of acceptance b. by the end of the next business day c. within 24 hours of execution d. by the end of the third business day c. within 24 hours of execution