BOB HOGUE SCHOOL OF REAL ESTATE
EXAM
Chapter 1 - Correct Answers -...
Appraisers charge a fee based on: - Correct Answers -the time and difficulty of the work
Are appraisers paid a commission? - Correct Answers -No - to reduce the possibility of
a conflict of interest
→ if an appraiser were to be paid a % of the appraised value, the temptation to
exaggerate the value might prove irresistible
USPAP's ethics rule states: - Correct Answers -That it is unethical for an appraiser to
accept compensation that is contingent on the value of property
Speculative (Spec) Homes - Correct Answers -Building "on speculation" involves
purchasing 1 or more lots and constructing a home (or homes) without a buyer in
advance of construction
Custom Homes - Correct Answers -A custom builder constructs homes under contract
with a buyer, often using building plans provided by architects or buyers
Tract Homes - Correct Answers -A type of speculative building; A new subdivision will
typically feature several model homes. Buyers select a floor plan from the models and a
lot on which to build in the new subdivision
The Commercial Real Estate Sales Commission Lien Act (Part III Chapter 475) -
Correct Answers -• gives a broker lien rights for earned commission
• only applies to commercial property (not real property)
• the lien is only against the owner's net proceeds from sale and DOES NOT attach to
the commercial real property
Net Proceeds - Correct Answers -personal property
Mutual Recognition Agreements - Correct Answers -where a state (Florida) and another
state enter into a contract to recognize each other's real estate license education
→ Individuals who receive a Florida real estate license under mutual recognition must
fulfill the same post-license & continuing education requirements as all other Florida real
estate licensees
,Are real estate applicants approved for licensure under mutual recognition exempt from
the pre-license education course? - Correct Answers -Yes - but they must demonstrate
mastery of Florida's real estate license law by passing a written Florida-specific real
estate law license exam
→ exam consists of 40 questions worth 1 point each
→ must get a 75% or higher
A broker applicant can fulfill the experience requirement in 1 of 3 ways: - Correct
Answers -1) The applicant has held an active sales license under 1 or more real estate
brokers for at least 24 months during the 5 year period before you apply for a Florida
brokerage license. The employment can be under a Florida real estate broker, a
licensed broker in another state, or in any foreign jurisdiction
2) The applicant has held an active sales associate license while working as a salaried
employee of a governmental agency & performing the duties authorized in Chapter 475,
F.S., for at least 24 months during the 5 year period before you apply for a Florida
brokerage license
3) The applicant held an active broker license in another state or in any foreign
jurisdiction for at least 24 months during the 5 year period before applying to become a
Florida real estate broker
Prima Facie Evidence - Correct Answers -Evidence that is good & sufficient on its face
(at first view) to establish a given fact or prove a case
→ unless it is refuted by evidence to the contrary, prima facie evidence will prove a
case (presumptive evidence
A real estate license serves as prima facie evidence because: - Correct Answers -it
indicates the licensee's name, issue date, & expiration date, showing that the licensee
holds a current & valid license
→ furthermore, official documents become prima facie evidence once they are signed
by the FREC chairperson or the chairpersons designee & affixed with the Commission's
seal
What Florida Statute exempts court-appointed individuals acting within the limitations of
their duties? - Correct Answers -Chapter 475
→ you can only sell a property that the judge SPECIFICALLY tells you if you are not
licensed under the state of Florida
Do FREC members receive a salary? - Correct Answers -No - in lieu of a salary, they
are paid $50 per day for each day they attend an official meeting & for each day they
participate in other commission business
→ they also receive reimbursement for expenses connected with their official activities
→ any travel outside the state as members of the commission requires the prior
approval of the DBPR secretary
, Fee Waiver of Military Veterans - Correct Answers -The initial application fee, biennial
license fee, & unlicensed activity fee are waived for military veterans who apply for a
real estate license within 24 months after honorable discharge from the Armed Forces.
The fee waiver applies to all licenses issued by by the DBPR
If the result of a disciplinary proceeding is to suspend a license, then - Correct Answers
-the license is prevented from working for a period of time; the license is ineffective
during the period of suspension
Group License - Correct Answers -A license sometimes issued to sales associates or
broker associates who are registered under an owner-developer, where an owner-
developer may own properties in the names of various entities
→ If the entities are all connected so that ownership & control is with the same
individual(s), sales associates employed by the owner-developer may be issued a group
license
Residential Sale - Correct Answers -• the sale of improved residential property of 4 of
fewer units
• the sale of unimproved residential property intended for use as 4 or fewer units
• the sale of agricultural of 10 or fewer acres
** 4/4/10 **
Disclosure requirements of Residential Transaction DO NOT apply to: - Correct
Answers -• nonresidential transactions
• the rental or leasing of real property, unless an option to purchase all or a portion of
the property improved with 4 or fewer residential units is given
• auctions
• appraisals
• dispositions of any interest in business enterprises or business opportunities, except
for property with 4 or fewer residential units
** when in doubt, disclose **
Are licensees required to give customers a written disclosure when a transaction broker
relationship is chosen - Correct Answers -No
The 7 Duties of the Transaction Broker in a Limited form of Representation - Correct
Answers -1) Deal honestly & fairly
2) Account for all funds
3) Use skill, care & diligence in the transaction
4) Disclose all known facts that materially affect the value of residential real property &
are not really observable to the buyer
5) Present all offers & counteroffers in a timely manner
6) Exercise limited confidentiality, unless writing by a party
7) Perform any addition duties that are mutually agreed to with a party
EXAM
Chapter 1 - Correct Answers -...
Appraisers charge a fee based on: - Correct Answers -the time and difficulty of the work
Are appraisers paid a commission? - Correct Answers -No - to reduce the possibility of
a conflict of interest
→ if an appraiser were to be paid a % of the appraised value, the temptation to
exaggerate the value might prove irresistible
USPAP's ethics rule states: - Correct Answers -That it is unethical for an appraiser to
accept compensation that is contingent on the value of property
Speculative (Spec) Homes - Correct Answers -Building "on speculation" involves
purchasing 1 or more lots and constructing a home (or homes) without a buyer in
advance of construction
Custom Homes - Correct Answers -A custom builder constructs homes under contract
with a buyer, often using building plans provided by architects or buyers
Tract Homes - Correct Answers -A type of speculative building; A new subdivision will
typically feature several model homes. Buyers select a floor plan from the models and a
lot on which to build in the new subdivision
The Commercial Real Estate Sales Commission Lien Act (Part III Chapter 475) -
Correct Answers -• gives a broker lien rights for earned commission
• only applies to commercial property (not real property)
• the lien is only against the owner's net proceeds from sale and DOES NOT attach to
the commercial real property
Net Proceeds - Correct Answers -personal property
Mutual Recognition Agreements - Correct Answers -where a state (Florida) and another
state enter into a contract to recognize each other's real estate license education
→ Individuals who receive a Florida real estate license under mutual recognition must
fulfill the same post-license & continuing education requirements as all other Florida real
estate licensees
,Are real estate applicants approved for licensure under mutual recognition exempt from
the pre-license education course? - Correct Answers -Yes - but they must demonstrate
mastery of Florida's real estate license law by passing a written Florida-specific real
estate law license exam
→ exam consists of 40 questions worth 1 point each
→ must get a 75% or higher
A broker applicant can fulfill the experience requirement in 1 of 3 ways: - Correct
Answers -1) The applicant has held an active sales license under 1 or more real estate
brokers for at least 24 months during the 5 year period before you apply for a Florida
brokerage license. The employment can be under a Florida real estate broker, a
licensed broker in another state, or in any foreign jurisdiction
2) The applicant has held an active sales associate license while working as a salaried
employee of a governmental agency & performing the duties authorized in Chapter 475,
F.S., for at least 24 months during the 5 year period before you apply for a Florida
brokerage license
3) The applicant held an active broker license in another state or in any foreign
jurisdiction for at least 24 months during the 5 year period before applying to become a
Florida real estate broker
Prima Facie Evidence - Correct Answers -Evidence that is good & sufficient on its face
(at first view) to establish a given fact or prove a case
→ unless it is refuted by evidence to the contrary, prima facie evidence will prove a
case (presumptive evidence
A real estate license serves as prima facie evidence because: - Correct Answers -it
indicates the licensee's name, issue date, & expiration date, showing that the licensee
holds a current & valid license
→ furthermore, official documents become prima facie evidence once they are signed
by the FREC chairperson or the chairpersons designee & affixed with the Commission's
seal
What Florida Statute exempts court-appointed individuals acting within the limitations of
their duties? - Correct Answers -Chapter 475
→ you can only sell a property that the judge SPECIFICALLY tells you if you are not
licensed under the state of Florida
Do FREC members receive a salary? - Correct Answers -No - in lieu of a salary, they
are paid $50 per day for each day they attend an official meeting & for each day they
participate in other commission business
→ they also receive reimbursement for expenses connected with their official activities
→ any travel outside the state as members of the commission requires the prior
approval of the DBPR secretary
, Fee Waiver of Military Veterans - Correct Answers -The initial application fee, biennial
license fee, & unlicensed activity fee are waived for military veterans who apply for a
real estate license within 24 months after honorable discharge from the Armed Forces.
The fee waiver applies to all licenses issued by by the DBPR
If the result of a disciplinary proceeding is to suspend a license, then - Correct Answers
-the license is prevented from working for a period of time; the license is ineffective
during the period of suspension
Group License - Correct Answers -A license sometimes issued to sales associates or
broker associates who are registered under an owner-developer, where an owner-
developer may own properties in the names of various entities
→ If the entities are all connected so that ownership & control is with the same
individual(s), sales associates employed by the owner-developer may be issued a group
license
Residential Sale - Correct Answers -• the sale of improved residential property of 4 of
fewer units
• the sale of unimproved residential property intended for use as 4 or fewer units
• the sale of agricultural of 10 or fewer acres
** 4/4/10 **
Disclosure requirements of Residential Transaction DO NOT apply to: - Correct
Answers -• nonresidential transactions
• the rental or leasing of real property, unless an option to purchase all or a portion of
the property improved with 4 or fewer residential units is given
• auctions
• appraisals
• dispositions of any interest in business enterprises or business opportunities, except
for property with 4 or fewer residential units
** when in doubt, disclose **
Are licensees required to give customers a written disclosure when a transaction broker
relationship is chosen - Correct Answers -No
The 7 Duties of the Transaction Broker in a Limited form of Representation - Correct
Answers -1) Deal honestly & fairly
2) Account for all funds
3) Use skill, care & diligence in the transaction
4) Disclose all known facts that materially affect the value of residential real property &
are not really observable to the buyer
5) Present all offers & counteroffers in a timely manner
6) Exercise limited confidentiality, unless writing by a party
7) Perform any addition duties that are mutually agreed to with a party
