Which of the following is the LEAST reliable in projecting value of a business? 1. Sharing a portion of the commission with a party to the transaction is an example of a legal kickback or rebate, Explain the FSBO exception related to the Do not call registry related to Florida and Federal law. A)Lori Sammis, PA B)Lori Sammis and Company C)Lori Sammis and Excel Realty D)Excellent Service Realty. Driving under the influence (DUI) conviction that occurred 15 years ago B. The purpose is to establish educational and experience qualification criteria for the licensing, certification and recertification of appraisers. Hal is disappointed when the appraiser does not give Hal the value of his home that he expected. The term of office for each Commission member is: B) cause for requiring a business to cease operations. Carla meets the experience requirement; however, she must complete the broker pre-license course successfully. Which information is NOT required to appear on the official entrance sign to a real estate office? A resident licensee who becomes a nonresident must notify the Commission of the change in residency within 15 days. The broker wants to close her Bradenton office and open a new branch office in Sarasota, Florida. Which requirement must be accomplished to register a real estate brokerage as a general partnership? The statement is false. State law fine = $10,000FEDERAL law fine = $11,000. He has been described as having a conservative judicial philosophy though is primarily an institutionalist. Which duty may an unlicensed personal assistant NOT perform? D) all the occupants of the residences within the community are at least 55 years old. T or F. The statement is false. There are eight real estate services that when performed for compensation require a real estate license: advertising real estate services, buying, appraising, providing rental lists for a fee, selling, auctioning, leasing, and exchanging real property. The statement is TRUE. Brokers must institute one of the four settlement procedures with _____ business days of receiving conflicting demands or of having a good-faith doubt. An investor wants to purchase a 20-unit apartment complex. B) variable cost. T or F. The statement is true. The brokerage company handles residential transactions. After one more week, the son had sold only one more lot. b. B) Brokers may not abbreviate the firm name in an advertisement. The broker deposited the money into the trust account, but when the broker's electric bill was due, he deposited the buyer's money into the broker's business account to pay the bill. The answer is fixed cost. If the son had been paid salary only, this would have been a legal arrangement. a ANNUAL REPORT OF THE RECEIPTS AND EXPENDITURES OF THE TOWN OF WENHAM INCLUDING THE REPORTS OF THE SCHOOL COMMITTEE AND THE TRUSTEES OF THE PUBLIC LIBRARY FOR THE YEAR (b) All sales associates, broker associates, and brokers who are . Answers: A real estate sales associate may be registered under a trade name. D) It is a court decision to place a defendant on probation. Would this be legal? A) Inactive real estate licensee B) Active member of The Florida Bar C) Individual who has received a four-year degree in real estate D) Nonresident licenseeTerm. B) the residences do not have any occupants who are younger than 18. No one else in his subdivision has a pool. Real estate licensees on active duty with the U.S. Army are required to renew their licenses: within six months after discharge. A)First degree misdemeanor B)Third degree misdemeanor C)Third degree felony D)Second degree misdemeanor, The answer is A) FIRST DEGREE MISDEMEANOR. What is the square footage of gross living space? The ability to sue the FREC if necessary. The applicant has not fulfilled the experience requirement. In order to qualify for statutory independent contractor status, the sales associate need only have a real estate license. A) $52,000 B) $178,000 C) $106,000 D) $70,000. Greets customers and makes them feel comfortable. The broker must notify the DBPR of the change in business address before business can be conducted. If the bird house was negotiable, the seller should have said so in the contract. Mississippi Fuel Company is a publicly traded company that purchased land and oil rights and drills for oil and gas. However, for tax purposes, a sales associate is allowed by law to form a professional corporation (PA), and in this case, the DBPR will issue the license in the licensees actual (legal) name and include the entity designation (PA) after the licensees legal name. Carla had an inactive GA real estate license since 1980. The applicant earned a score of 76 on the end-of-course exam and has submitted the license application to the Department of Business and Professional Regulation (DBPR). The Internal Revenue Service (IRS) is NOT likely to disqualify an independent contractor status if a broker A) pays a higher commission to a sales associate than is customary. Eight months following expiration of the broker's initial license, the licensee requested a post-license hardship extension. A property management firm or an owner of an apartment complex may pay a finders fee (or referral fee) of up to $50 to an unlicensed person who is a tenant of the apartment complex. Institutional advertising is designed to make the public aware of the firm and its services, management, and staff. Persons to have power of attorney for the purpose of executing a contract. T or F, A broker wants to register a recreation vehicle (RV) as a branch office. The broker should have a minimum of six months' operating expenses plus her start-up costs. A Florida real estate licensee who moves out of state and becomes a nonresident of Florida is required by law to notify the Commission within, A broker relocates her brokerage office across town. The Department has the authority to investigate complaints from others and investigate its own complaints. The broker cannot receive money from the Recovery Fund because he gave the earnest money to the wrong person. The fee paid to the FHA employee is a referral fee, which is legal under FL RE law. C)The only compensation that the sales associate may receive is part of the commission, regardless of circumstance. The broker pays the business tax; licensees who work for the broker are exempt from paying the tax. She finds comparables in the same subdivision that include a two-story with a three-car garage, 4 bedrooms, 3 baths, a pool, but no screened-in porch. The new location must be registered and the fee paid. A)Attorneys trust account B)The broker must report conflicting demands regardless of where the funds are escrowed C)Florida savings association D)Florida credit union. The answer is STIPULATION. True or false,With real estate brokerage general partnerships: the partnership must be registered with the DBPR; there must be at least one partner as an active broker; partners who deal with public and perform real estate services must be active brokers; and sales associates may not be general partners. What was Bob doing that would warrant such a suspension? What were Piaget's four stages of cognitive development? A developer advertises homes for $2000 down a qualified buyer offered to put down $2000 but is told all of these homes are sold is this a violation of the truth in lending act? Estimates are necessary in financial statements. A resident of Florida who is licensed in a mutual recognition state cannot apply for a Florida real estate license under mutual recognition. A)Limited partnershipB)Limited liability companyC)Sole proprietorshipD)Cooperative association A The answer is COOPERATIVE ASSOCIATION. Accounting for all funds entrusted to the broker. Ten units are rented monthly for $300, five for $325, and five for $350. The broker may register a trade name for the commercial office and continue to use the corporate name for the principal office. T or F, The statement is false. The correct amount of rent in an open, free market the broker should have charged is called: Susan is comparing properties in the area. His wife Susan Meyers works with Mike and is a licensed broker associate. A broker purchased a list of FHA foreclosure properties from an FHA employee. All the assets and liabilities are noted that belong to the business. The Alabama licensee must satisfactorily complete the Florida prelicense course and pass the state license exam. The vacancy rate is 5%. $27,000 monthly requirement $980.00 = 27.55 sales required. A) Type of relationship B) Behavorial C) Financial D) Motivation. Failure to pay the tax is a misdemeanor. A) The employee is not required to hold a real estate license because he receives a salary. The answer is must complete the real estate prelicense course and pass the Florida state license exam. The only problem was that Sue and George did not have a cat. The answer is January 31. A) It is the process of expunging the criminal record. Data includes general appearance of properties. What are the 3 exceptions related to the notice and settlement procedures for sales escrow accounts: 1) If a HUD sale, the broker would follow their guidelines2) If a buyer of a condo unit timely delivers to a licensee written notice of their intent to cancel the contract as authorized by the Condominium Act, the licensee may return the funds3) Buyer cant get financed. Lori Sammis is a licensed real estate sales associate. The ratio which is determined by dividing the company's liabilities by its value and the higher the ratio, the greater the risk is? Susan should add the cost of a screened-in porch to the sold price of the comparable to make it similar to the subject house. C) The employee must hold a real estate license because he receives compensation based on sales. which statement is true regarding a sales associate's registered name? A hurricane damaged a large number of homes along the beach. What is the first step of the appraisal process? 4. Which settlement procedure involves a negotiated settlement between the disputing parties? When a broker opens a new brokerage office, no new brokerage business may be conducted (the license ceases to be in force) until the DBPR is notified of the new business location and it is properly registered. Yes because it's an example of bait and switch. An apartment building contains twenty units. D. disclose any denials of a real estate license in another state. The landlord gave them written notice within 30 days that he intended to keep $300 of the $600 security deposit because of damage caused by their cat. c. Sales associates, broker associates, brokers, and owner-employers are all registered and licensed. Accounts receivable C. Cash in checking account D. Plant and equipment. A salaried individual manages a condominium building and rents units 3month to 6month periods. Which of the following statements is true regarding the expiration date of a written sales contract in Arkansas? The plan includes the mission statement as well as the budget. 3. A) Name of the sales associates B) Trade name, if one is used C) Licensed Real Estate Broker D) Name of the broker, Which statement can be included in a classified advertisement? C) at least 90% of the households have at least one occupant who is 55 years old. T or F, Before the first renewal of a broker license, brokers must complete 60 hours of a Florida Real Estate Commission (FREC)-approved broker post-license course. t- ' . The applicant recently moved to Florida and has completed the Florida broker prelicense course. A person applying for a real estate broker license must: A. disclose personal financial information. C) must complete the real estate prelicense course and pass the Florida state license exam. The statement is true. Mediation, Arbitration, Litigation, Escrow disbursement order (EDO). Is exempt from licensure under F.S. The broker's trust liability is $2,300,000.00. The sales associate must first check the phone numbers against the National Do Not Call Registry. Active real estate brokers are required to have an office. Which item on the balance sheet BEST indicates a firm uses accrual basis accounting? A broker applicant who received a master's degree in real estate from an accredited institution is exempt from the broker pre-license education course. Once the owner-developer information is registered into the DBPR database, sales associates and broker associates are registered under the owner-developer. Of the following pieces of information that appear on the brokers entrance sign, which is optional under Florida license law? She was so excited that she could not type the numbers fast enough. TRUE OR FALSE: The office sign at the entrance of the brokerage business must display the brokerage street address. The statement is true. Blind advertising is advertising that fails to disclose the license name of the brokerage firm. Which of the following statements is true? Because the father promised to pay, and the son expected to receive a lot free and clear as additional compensation, both the father and son have violated FS 475. D) reserve for replacements. C) religion. The broker will automatically lose his license since the FREC did not agree with the broker. In this situation, the Department of Business and Professional Regulation (DBPR) will issue the broker A) one broker license and register the various companies as affiliated businesses. It is important because it shows how quickly the buyer found the property and wanted it. An individual who specializes in the sale of business opportunities is exempt from a real estate license. As discussed in Chapter 1, mortgage loan originators require . A broker who has a good faith doubt regarding who is entitled to escrow funds should take which action? The sales associate received an earnest money check from the buyer on Friday, January 3. He adds an inground pool, complete with a cement deck and outside lighting. A broker is not required to notify FREC in what situation ; two days after signing condominium contract the buyers decide to cancel? A broker has been licensed for 10 years. The landlord was returning the security deposit to Sue and George for the apartment they had vacated. All of the following are examples of the need for valuation of business EXCEPT: All of the following are steps in the sale of a business EXCEPT: The appraiser lists the property for sale. A corporation sole is an ecclesiastical or church organization, usually headed by a bishop or other clerical official who has been empowered by a church to hold title to church property. If a broker maintains a brokerage office in the broker's residence, the broker is exempted from ADA accessibility requirements in all parts of the residence except the room where brokerage business is conducted. The agent must disclose to the buyer all personal and financial facts regarding the seller's reasons for selling the property. Carla has fulfilled the experience requirement because she has been licensed in GA since 1980. A) 1.94 B) 3.89 C) 7 D) 5. (b) The Secretary is appointed by the Governor. (c) The Secretary must be an attorney. It paid the sales associates and average of 60% commission split. Brokers are not required to place the names of the sales associates on the entrance sign. 4. 475. A prospective tenant purchased rental information from a real estate brokerage company for $75. The bird house was affixed with a permanent method of annexation; so it should stay. C) Florida residents who hold a real estate license in another state may apply for a Florida real estate license through mutual recognition. FREC rules require the broker to be a signatory on all brokerage escrow accounts. D) Real estate applicants who apply for a Florida real estate license through mutual recognition are exempt from the post-license education requirement. The broker maintains $1000 in the account of his own money. THE TENANT SHOULD DEMAND WITHIN 30 DAYS A REFUND OF $75. Meloni's new friend from another state just gave her his phone number. Because the definition of real property includes any interest in business enterprises or business opportunities, individuals who specialize in the sale of businesses, known as business brokers, must hold Florida real estate licenses. T or F. The statement is true. Your answer: B The most common services of real estate requiring a real estate license are appraising (in a non-federally related transaction), buying, auctioning, renting, selling, advertising real estate services, leasing, and exchanging. What is the fine per telephone call for a violation of Floridas Telemarketing Act? Capri sales staff will temporarily work out of a model home in the subdivision. Which BEST illustrates institutional advertising? What amount is he keeps a combined account? FCC rules under the Junk Fax Prevention Act mandate that it is unlawful to send unsolicited advertisements to a residential or business fax machine without the recipient's prior express invitation or permission. The value of a property which is used by local taxing authorities for real estate taxes is. (a) Sales associates are not permitted to own stock in the entity. What is the Department empowered to do? 475.01 specifies the services that require a valid active real estate license to perform. A PSA cannot enter into contractual agreements with a customer or client in his or her own name; therefore, all agreements must be for and in the name of their sponsoring broker. A sales associate may hold which position? For what period of time must a broker maintain business records, including escrow account records, and make them available to audit by the DBPR? What information need not be disclosed when submitting applications? A)15 business days B)30 calendar days C)24 hours D)10 business days, The answer is D) 10 BUSINESS DAYS. A cooperative association IS ALLOWED to conduct commercial business and to convey, sell, or buy its own property, but it cannot be registered as a real estate broker. The sales associate for the firm lists and sells the property and is to receive 55 percent of the total sale commission. Hal thought that he would add value to his home by adding a swimming pool. Within how many days must the landlord notify the tenant of their intentions to claim the deposit? A)Limited partnership B)Limited liability company C)Sole proprietorship D)Cooperative association. The father agreed to pay his son a salary of $200 per week. Violators of the federal Telephone Consumer Protection Act may be fined up to $11,000 for each illegal call. The probable Cause Panel will act as a grand jury to determine if there has been a license law violation. A) Yes, provided the words "Licensed Real Estate Broker" appear in the ad. B) January 31. The agent must promptly tender to the seller any offers that have been written. What should Susan do with this information? D. disclose any denials of a real estate license in another state. The penalty for a first-time offense of a broker employing a sales associate who is not the holder of a valid and current license is an administrative fine of $250 to $1,000 and license suspension to revocation. This is known as what type of advertising? If two parties are not partners but give the public the impression that they are, and a reasonable person could assume they were partners, the parties will be considered limited partners. The number of days on the market is a major issue with sold comparables. Real Estate Broker.. Bob was spending all of the money in his trust accounts to finance his new boat. the basement, garage and house added together, the finished basement and the main floor of the house. Violators of Floridas Telemarketing Act may be fined $10,000 per call. D) Both the employee and his employer must be licensed real estate brokers. If an escrow account is an interest-bearing account, the broker must get written permission from all parties before placing the funds into the account. The Junk Fax Prevention Act applies to residential fax machines only. There is no requirement to include the brokerage office street address on the entrance sign. Only the father has violated FS 475. Protection is provided under the Fair Housing Act based on A) age. Yes, the broker can accept the sailboat so long as the seller is aware of the terms and conditions and the lack of liquidity of the boat. The answer is "For the best customer service, list with Jones Realty." Monthly expenses of $12,000 6 months = $72,000. Divide the cash requirement by the company dollar for each associate: $175,000 $35,000 = 5. The answer is may request to receive a sales associate license, provided the licensee completes 14 hours of continuing education within six months following expiration of the broker license. If the broker's escrow account is an interest-bearing account, the broker, If the escrow deposit is to be held by a title company, the sale contract must indicate the name of the title company, address, and telephone number. FHA foreclosure properties are not covered under FS 475. A real estate application expires after what period of time? Which is NOT one of the three areas that are reviewed by the IRS to indicate that the broker is controlling sales associates? Failure to pay for the annual business tax is a A) felony. The Manager. C) Any structure that is a place used to sell real property must be registered. The broker may designate another person, such as a bookkeeper, to sign checks on the account in the ordinary course of business. TRUE OR FALSE: After discussion with the broker, a real estate licensee offers to share part of the commission with the buyer. Brokers must place trust funds into their escrow account no later than the end of business of the third business day following receipt of the funds. Because the FREC issued the Earnest Money Disbursement order, the broker is entitled to repayment up to $50,000. A broker is qualifying for several different real estate companies in this situation a broker should request a? The answer is pays a higher commission to a sales associate than is customary. An involuntary inactive license will expire and become null and void after one year. B) Real estate licensees are exempt from the telemarketing laws. Which type of business brokerage entity is NOT required to file with the Florida Department of State? A salesperson employed by a real estate developer who receives a salary plus commission for each lot the salesperson sells is exempt from real estate licensure. The corporate must be registered with the DBPR on behalf of FREC because it is involved in real estate sale and lease negotiations. B) The designated sales associate must give the customer a transaction broker notice. A) Excel Real Estate Services B) Janet Stoufer, Independent Consultant C) Robert Lynn Real Estate Services D) Robert Smith, PA. To help prospect for listings, a licensed broker associate decides to have personalized refrigerator magnets made. The statement is true. Which business entity may NOT register as a real estate brokerage entity? Which statement is TRUE regarding this situation? The three business-day time period for the broker to deposit the funds begins on the day the sales associate is required to deliver the funds to the broker. Brokers must notify the FREC in writing of conflicting demands or of a good-faith doubt within ___ days. The Commission is authorized to grant the broker an extension to complete the post-licensing education. a) The name on the real estate brokerage firm for which the associate works must be printed on the key rings; b) As long as the sales associate is paying the entire cost of the rings, he can put any wording on them he chooses. and this is his first offense, what is the recommended period of time of probation he could receive under the Standards of Practice? Which statement applies to this situation? After two years, the license automatically expires (becomes null and void) by operation of law without further FREC or DBPR action. The answer is it is a plea of no contest. Ignore the complaint since it is unsigned. Zoe's ad shows a different brokerage name than the one on her broker's registered business license. Bob was placing his for sale signs on individual's properties without their written consent. D)Brokers may make an office policy that all escrow funds must be placed in an interest-bearing account to help cover the costs of maintaining the account, and are not required to disclose this in each sale contract because it applies to all transactions. 1. An ostensible (or quasi partnership) is not a real partnership, furthermore, it is considered to be fraudulent and deceitful if the public is deceived into believing that a partnership exists. C) March 15. C) must retake the broker prelicense course within one year. If she has six sales associates who are likely to contribute company dollars of $50,000 each, the broker is likely to reach her goal. A person who is empowered to act on behalf of another is called: The obligations of a transaction broker include all EXCEPT: Disclosing that the buyer will pay a higher price than offered.
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