“REAL ESTATE LAW” Class Chapter 1 quiz question with no answers.
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1. Joe owns a condominium unit in Flower Hill development. He has not been living in the unit and has been renting it out. The Flower Hill condo board passes a rule prohibiting the owners to rent their unit for more than two consecutive years. Joe’s unit has been previously rented for 2 years and he just signed a 1-year lease with a new tenant. Is the lease valid?
A. No, Joe has rented the unit for the maximum time before this lease was signed and the lease is void
B. No, the new board ruling nullifies any pending leases and they would require a special exemption and approval of the board
C. Yes, Joe has not consented to the board’s new ruling and amendment restricting his rights and is therefore exempt
D. All documents would be first required to be reviewed by a licensed attorney
2. Tom and Jen are first time homebuyers and are very nervous about purchasing their first home. They keep asking their agent Chris a lot of questions about the neighborhood, it’s residents and any previous crime statistics. When viewing a home, they keep asking for information on any deaths in the properties. What does Chris have to disclose?
A. Chris should research the neighborhood demographic and offer his opinion whether the neighborhood is “good” for the buyers
B. Chris is prohibited by Fair Housing laws to discuss the inhabitants of the neighborhood, but has to inform the buyers of any deaths in the properties, since it does not fall under FH laws
C. Chris is only required to disclose material facts to the buyer and deaths fall under Stigmatized properties and are therefore exempt from mandatory disclosure.
D. Chris should explain to buyers that they need to do all research on material facts and stigmatized properties since they are the buyers and should be aware under the Caveat Emptor law.
3. Betty is a sales associate for Great Big Homes Realty. She shows a house to newlyweds Annie and Ed. The couple decides to put an offer in writing that same day, since they love the house. When he gives Betty the earnest deposit check, Ed, who is a real estate attorney, asks: “What will the property tax be on the house we are buying?” What is appropriate conduct for Betty?
A. Look at the previous owner’s tax bill and base her answer on that
B. Bring Ed’s attention to the TAX DISCLOSURE notice on the real estate contract and refer Ed to the office of the county tax assessor
C. Explain that property taxes are usually 2% of the sale and purchase price
D. Say that she is not entitled to give any legal advice and tell him to call his lawyer
4. The following item is considered a finance charge and can delay the lender’s ability to send out the new Closing Disclosure and lead to delays in settlement
A. Changes in the real estate commission paid to the buyer’s agent
B. buyer’s late application for homeowner’s insurance
C. Discovery of a broken dishwasher during walk through
D. Any miscellaneous changes not affecting the APR
5. Which of the following protected categories is not included under the FL Civil Rights Act?
A. Age
B. Marital Status
C. Pregnancy
D. Gender Identification
6. When should agents deliver to the settlement company all fees and invoices for work completed, termite inspections, home warranties and other documents to be applied in the transaction?
A. Immediately or as soon as possible as late delivery of such information can delay settlement due to the new settlement disclosure requirement
B. Agent can hold on to such documents till the settlement day and bring them with them to the table
C. These documents are handled outside of the transaction and are not necessary for settlement
D. Only actual checks or money received by the agent has to be delivered to the settlement company
7. In a tenancy without a specific duration, the maximum period of time that a landlord can require a tenant to give notice before he vacates the premises is:
A. 30 days
B. 60 days
C. 90 days
D. Not mandated by law
8. The closing disclosure statement that is required to be signed by borrower under TRID is prepared by:
A. Settlement company or attorney
B. The Real Estate Broker
C. The Lender
D. Consumer Financial Protection Bureau (CFPB)
9. Is it mandatory for condo associations to maintain an insurance policy?
A. Yes, but only for new construction until all units are sold, and the individual owners obtain their policies
B. No, insurance is always optional for owners and associations alike
C. No, insurance is only needed if the units will be mortgaged with a conforming loan
D. Yes, FS718 makes it mandatory for condominium associations to maintain an insurance policy
10. Joe is a serviceman who is called for duty while residing in Port Charlotte, FL. Joe notifies his landlord. Unfortunately, the landlord makes it clear that he will not return the deposit to Joe because he only gave five days’ notice.
A. This situation is in compliance with the Florida Statutes
B. The landlord violated FS 83.67; Joe is entitled to his deposit
C. Joe is in violation of FS 83.67 and the landlord can keep the deposit in his separate non-interest-bearing escrow account
D. Both the landlord and Joe are in violation of their rental agreement and may be deferred to FREC under the provisions of FS 83
11. The borrower must be provided an accurate Closing Disclosure from the mortgage lender (—-) day(s) in advance of settlement
A. 4
B. 1
C. 5
D. 3
12. Florida landlords can require up to 60 days’ notice of lease termination from all tenants in residential properties except
A. Police officers
B. Members of armed forces
C. Politicians
D. Teachers
13. How many disclosure forms are required by the new TILA RESPA guideline?
A. One
B. Two
C. Three
D. None
14. Real estate licensees do not need to worry about Do Not Call rules
A. True – real estate brokers are exempt, since they do not sell goods
B. False – do not call lists apply to all phone solicitation including real estate calls
C. True – the lists are often absolute and no longer relevant
D. False – real estate associates should never contact prospects by phone even if such contact was requested by the consumer
15. Al bought a condominium last year and he rented the unit to Karen. The new condominium board has passed numerous restrictions, one being that units in that condominium cannot be rented. How do these restrictions affect Al?
A. Al has lost his right to rent the unit to Karen and must start an eviction procedure to vacate the premises
B. Al has lost his right to rent the unit to Karen, and the condominium association can start an eviction procedure to vacate the premises
C. The rental restrictions do not affect Al directly, but when he puts the unit up for sale the new owner will not be able to rent
D. Condominium associations have no power to pass and enforce rental restrictions
“REAL ESTATE LAW” Class Chapter 2 quiz question with no answers.
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1. Broker Ed wins a lawsuit against property owner Angela on a dispute regarding an unpaid real estate commission related to a commercial transaction consummated in Florida. Angela is now responsible for the payment of:
A. The disputed real estate sales commission only
B. The disputed real estate sales commission and Ed’s attorney fees
C. The disputed real estate sales commission and reasonable attorney fees for both parties if attorneys are involved
D. The disputed real estate sales commission, recording and court costs, and reasonable attorney fees for both parties if attorneys are involved
2. The limit for personal funds that a broker can keep in the property management escrow account is:
A. $200
B. $500
C. $1,000
D. $5,000
3. Claudia is a perfectly healthy sales associate. She wants to complete her sales associate post-licensing education without sitting in a classroom environment. Which of the following is not an option for her?
A. A post-licensing course delivered by CD-ROM
B. A post-licensing course delivered by the Internet
C. A post-licensing course delivered by mail
D. A distance learning post-licensing course, as defined in FS 475.
4. Ronny, a real estate sales associate licensed in Florida, closed a transaction four and a half years ago when he was newly licensed. During this transaction, he forgot to deliver some escrow checks in a timely fashion, and to hand out the proper brokerage relationship disclosure. The heirs of the seller decide to file a lawsuit against him because of his poor professionalism and some alleged violations of FS 475. In this situation:
A. Ronny does not have to worry because sufficient time has passed, and he can no longer be sued for these violations
B. Ronny should watch out because the five-year statute of limitations for violations of Florida Real Estate License Law is not expired yet
C. Ronny is not responsible for anything; since he was a young sales associate, his broker had all the liability
D. Ronny is OK since the transaction closed
5. Sales associate Carol decides to operate her real estate business as a PA. She buys a new car, expensive office furniture, and a brand-new color printer using the credit of the PA. After some time, her business goes bad and she cannot commit to the monthly obligations of all the bills. Which statement applies to Carol’s situation?
A. She can file for bankruptcy, but her credit will permanently bear the effects of the bankruptcy
B. She needs to go to work and repay her obligations in some way
C. She can declare the PA bankrupt, while trying to save her personal credit
D. She is in a situation where the PA status does not help
6. Lara was contacted by a Hispanic couple searching for a home. She decides that they would be more comfortable in a predominantly Hispanic neighborhood and only shows them properties in those neighborhoods. The couple file a Fair Housing complaint. What is the impact on Lara?
A. She does not need to worry about the complaint because she has E&O insurance policy
B. Lara did a really good job and exhibited care for her client by selecting the neighborhoods
C. Lara will be reprimanded by her broker and will have to take a Fair Housing course
D. Lara has violated Fair Housing Law and her law suit will not be protected by E&O insurance
7. If the parties of a transaction do not agree on the disbursement of funds when the transaction falls through, the broker must:
A. Do nothing and let the money stay in the escrow account indefinitely
B. Disburse the amount according to their personal preference of the parties
C. Initiate one of four allowed procedures for disbursement which are – Mediation, Arbitration, Request an Escrow Disbursement Order or Litigation
D. If there is no agreement between the parties, the broker can transfer the money to his/her personal account as compensation for the failed transaction In lieu of receiving the commission
8. The limit for personal funds that a broker can keep in the sales escrow account is:
A. $200
B. $500
C. $1,000
D. $5,000
9. Ana is buying a large commercial property. Her real estate broker does not give her a brokerage disclosure notice. Which statement best applies to this situation?
A. The broker is in violation of the statute
B. In a commercial transaction, there is no need for a brokerage relationship disclosure
C. In the State of Florida, there is the presumption of transactional brokerage relationship whenever there is no specified relationship
D. Since this is a commercial transaction, Ana’s broker will probably act as designated sales associate
10. Marla wants to add the PA designation after her name in her real estate sales associate license. How can she do that?
A. It is not possible under the current law to have a real estate sales associate license issued to an entity other than an individual
B. She needs to file a written request with the Florida Department of State
C. She needs to file a written request on an appropriate form to the Florida Real Estate Commission (DBPR) and pay a $35 fee
D. She needs to file a written request on an appropriate form to the Florida Real Estate Commission (DBPR) office of the ombudsman and pay a $25 fee
11. Which of the following is the only brokerage relationship disclosure statement that must be signed by the client before implementation?
A. Transaction broker notice
B. Transition to transaction broker notice
C. Single agent notice
D. No brokerage relationship disclosure statement is necessary
12. Amilcare is a transaction broker for seller Amanda. At an open house, Amilcare hears Helen, the buyer, telling her agent that she could pay up to $67,000 for the house, but that she would rather try to place an offer for $66,000. When presenting the offer to Amanda, Amilcare is:
A. Allowed by the statute to disclose that the buyer would pay up to $67,000 for Amanda’s house
B. Bound by the duty of loyalty to his principal and must disclose to Amanda that the buyer would pay up to $67,000 for the house
C. Not allowed by statute to disclose that the buyer would pay up to $67,000 for Amanda’s house
D. Not required to disclose that the buyer would pay up to $67,000 for Amanda’s house, but he could do it if he wants to increase his client’s profit
13. Edith is a potential buyer negotiating the purchase of a single-family residential home. Omar, her real estate broker, does not give her a brokerage disclosure notice. Which statement best applies to this situation?
A. The broker is in violation of the statute
B. In a residential transaction, there is no need for a brokerage relationship disclosure
C. In the state of Florida, there is the presumption of a transactional brokerage relationship whenever there is no specified relationship
D. Since this is not a commercial transaction, Edith’s broker will probably act as a designated sales associate
14. Which of the following is a misdemeanor of the first degree?
A. Publishing false and misleading information
B. Violation of rental lists and rental companies
C. Practicing real estate without a license
D. Wrong letter size for the office sign
“REAL ESTATE LAW” Class Chapter 3 quiz question with no answers.
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1. Property owner Todd decides to satisfy a lien placed on his commercial property for the nonpayment of a leasing commission to broker Kim. What is Kim supposed to do after he gets the money?
A. Take the money, thank everyone, and leave
B. File a satisfaction of lien notice within seven days
C. File a satisfaction of lien notice within 30 days
D. Initiate a foreclosure proceeding
2. What is the safest way for a buyer broker in a commercial lease transaction to make sure he can get paid or can act under the provisions of FS 475 Part III?
A. He can work as a dual agent
B. He can work as a designated sales associate
C. He can secure a separate commission agreement, specifying his rights to recover under FS 475, Part III
D. He can have an attorney check his paperwork
3. The recorded lien notice claiming the real estate commission for a commercial sale transaction is valid how many years from the date of recording?
A. 1
B. 3
C. 5
D. 4
4. Broker Marcus holds a lien he placed against the net seller’s proceeds for the nonpayment of the commission of a commercial real estate transaction. Marcus needs the money now because of a family emergency. How can he collect on his lien in compliance with the current statute?
A. He can sell his lien to a note investor and cash in his dollars
B. He can assign his lien to a note investor and cash in his dollars
C. He can compel the seller to pay by initiating a foreclosure action
D. He is stuck with the lien and he cannot cash it until the seller decides to make a move
5. What is true about the lien for nonpayment of a real estate commission in a nonresidential transaction?
A. It can be placed by a sales associate
B. It can be recorded against the property
C. It can be recorded against the net proceeds of the seller
D. It must be recorded within 90 days from the closing date
6. Broker Yvonne rented a commercial facility about five years ago. The lease she negotiated had a provision for renewal after five years. Now the lease is about to expire, and the owner wishes to renew the lease without paying the real estate commission. What options are available to Yvonne to get paid?
A. She can file and record a lien claim with the Florida Real Estate Commission
B. She can file and record a lien claim in the public record of the county where the property is located, if her listing agreement allows her to do so
C. Her only option is to sue in civil court
D. Her best option is to bring the case to small claims court (if the commercial real estate leasing commission is less than $10,000)
7. The recorded lien notice claiming the real estate commission for a commercial lease transaction is valid for how many years from the date of recording?
A. One
B. Five
C. Seven
D. Ten
8. Broker Anna had a brokerage agreement with prospective tenant Paula. Paula was to pay Anna a commission if they successfully negotiated a lease agreement for Paula’s shop. Paula gets a tremendous deal renting one of Anna’s listings, but refuses to pay commission to her broker. Which is applicable to this situation?
A. Anna can place a lien on the commercial real estate property under the provisions of FS 475 Part IV
B. Anna can place a lien on leasehold interest in the commercial real estate property under the provisions of FS 475 Part IV
C. Anna can place a lien on the net proceeds of the owner under the provisions of FS 475 Part IV
D. Anna cannot act under the provisions of FS 475 Part IV because she was representing a tenant
9. Which is NOT one of the essential elements required in the claim notice for a commercial real estate lease commission?
A. The name, address, telephone number, and license number of the sales associate who handled the transaction
B. The name of the owner of the commercial property
C. The legal description of the commercial real estate
D. The effective date of the brokerage agreement
10. Teresa is a property manager for owner Tom. She leased an office about 120 days ago, while Tom was on vacation. Now that he is back in town, he does not want to pay her leasing commission. Teresa had an exclusive right of lease agreement that included the wording of disclosure required under FS475, Part II to place a lien on the commercial property. What are the options available to Teresa to recover her commission money?
A. She can place a lien on the commercial real estate property under the provisions of FS 475 Part IV
B. She can place a lien on leasehold interest in the commercial real estate property under the provisions of FS 475 Part IV
C. She can place a lien on the net proceeds of the owner under the provisions of FS 475 Part IV
D. She cannot act under the provisions of FS 475 Part IV because the 90-day period for making a claim has expired
11. A commercial transaction closes with zero cash for the seller at closing. The buyer obtained a $20,000 purchase money mortgage from a third party institutional lender, and no commission was paid to the real estate broker. How much can the broker recover for the commission lien from the seller net proceeds?
A. The broker cannot recover anything because the commission lien claim attaches on the net proceeds of the sale and, in this case, the owner got zero cash out
B. The broker cannot recover anything because the commission lien claim attaches only on the subject property, which has been sold to a new owner
C. The broker can recover his full commission because the commission lien claim attaches only on the subject property and the property is still there
D. The broker can recover his full commission because the commission lien claim can attach on the purchase money mortgage
12. Lou Ann is a buyer broker. The seller of a commercial property refuses to pay commission. By the time the closing takes place, Louann is ready to place a lien claim on the seller’s proceeds. Which of the following statements is true?
A. Lou Ann is entitled by FS475 Part III to place a lien on the net proceeds of the seller
B. Lou Ann is entitled by FS475 Part IV to place a lien on the net proceeds of the seller
C. Lou Ann, being a buyer broker, has no title to claim commission without a commission agreement with the seller.
D. Lou Ann can place a lien on the net proceeds of the seller only after the transaction closes
13. Which of the following is NOT one of the allowable methods of delivery for the notice to impose a claim?
A. Personal delivery
B. Telegraphic transmission
C. Registered or certified mail return receipt requested
D. Electronic delivery, if proof of receipt by the other party can be shown
14. Broker Tina realizes that her client, seller Burt, is closing next week on a commercial property that is listed with her and he has no intention of paying commission. Her listing agreement with Burt has a legally sufficient disclosure that spells out Tina’s right to impose a claim. How should she best proceed?
A. She needs to file a commission lien claim in the court where the property is located, and this will be sufficient to give notice to all parties interested
B. She needs to file a commission lien claim in the court where the property is located, and she needs to deliver the notice of intent of placing a lien to both the owner and the closing agent
C. She needs to notify the owner and the closing agent, in writing, of her intention to place a lien on the net sellers proceeds and wait 60 days to give Burt the opportunity to answer
D. She needs to have the cooperating agent deliver a copy of the lien that she will place on the property to all parties before closing
15. Bill the broker is planning to forward his commission claim to the closing agent for a commercial property. The owner currently refuses to pay commission. The pending purchase agreement is for $1,000,000 and Bill’s commission is 7%. The owner has a balance of $1,125,000 in mortgages on the property. How much can Bill recover?
A. $70,000
B. 100% of his commission
C. $35,000
D. Zero
16. The FCRELCLA makes it clear that the only way to receive payment is if a broker has a written brokerage agreement with ________, specifying what the acts are that trigger the earning of a real estate commission?
A. The seller
B. The landlord
C. The selling agent
D. The Commission
17. A broker can record a lien for the nonpayment of a commercial real estate lease commission on:
A. The subject property, as long as it is a commercial facility under the provisions of FS475
B. The subject property
C. The net proceeds for the seller
D. The appraised value of the property
“REAL ESTATE LAW” Class SAMPLE of Final Exam question with no answers.
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1. In a 1031 Exchange Like Transaction, who is in charge of holding the money generated by the sale?
A. Property owner
B. Qualified third party intermediary
C. Closing agent
D. Broker
2. The FCRELCLA makes it clear that the only way to receive payment is if a broker has a written brokerage agreement with _____, specifying the acts that trigger the earning of a real estate commission.
A. The seller
B. The landlord
C. The selling agent
D. The Commission
3. Peter, the buyer’s agent, is planning to forward his commission claim to the closing agent for a commercial property. The seller has repeatedly refused to pay commission. The property has a value of $1,000,000 and Peter’s commission is 7% of it. The owner has taken out $975,000 in mortgages on the property. How much can Peter recover under the procedure explained in FS 475?
A. $70,000 (his whole commission)
B. $25,000
C. An amount determined by FREC
D. Nothing, because he is a buyer’s agent, and only the listing broker can recover under the provisions of FS 475
4. Herbert leases units he owns for a living. He put up for sale a unit that was rented to Tim. During the period of ownership of the unit, the new condominium board has passed rental restrictions, including one that prevents units from being rented before three years of ownership have passed. How do these restrictions affect Herbert?
A. Herbert is not affected since he bought the unit before the condominium association passed the rental restriction and has no duty to disclose
B. Herbert can sell the unit with Tim as a tenant because Tim’s situation is grandfathered
C. The rental restrictions do not affect Herbert directly, but when he puts up the unit for sale the new owner will not be able to rent for the first three years
D. Condominium associations have no power to pass and enforce rental restrictions
5. A seller refuses to pay the real estate commission in a commercial transaction. Contract price is $750,000 and the real estate commission is 7%, but the property is encumbered by a first mortgage for 80% and by a second lien in the amount of $50,000. In this specific case, the listing broker can record a lien for the nonpayment of the commission on:
A. The subject property, as long as it is a commercial facility under the provisions of FS475
B. The subject property
C. The net proceeds for the seller, which in this case cover the full amount of the real estate commission
D. The complete net proceeds of the seller
6. Larry lives in the brand-new condominium complex, Knight Park Condominiums. Larry is also in charge of the newly formed condominium association. Which of the following must Larry’s condominium association maintain according to FS 718?
A. A community pool of at least 100 square feet
B. An insurance policy for the condominium association
C. A life insurance policy for each condominium owner
D. A petty cash fund of at least $10,000
7. The recorded lien notice claiming the real estate commission for a commercial transaction is valid how many years from the date of recording?
A. 1
B. 3
C. 5
D. 7
8. Camille is a sales associate licensee. She does not belong to the Board of REALTORS. What is the proper wording for her business cards?
A. Camille (Last Name), Licensed REALTOR
B. Camille (Last Name), Licensed Salesperson
C. Camille (Last Name), Licensed Sales Associate
D. Camille (Last Name), Broker
9. Barbara the broker needs to file a notice to impose a claim for the nonpayment of a commercial real estate sales commission. Which is NOT one of the allowable methods of delivery for this notice?
A. Personal delivery
B. Telegraphic transmission
C. Registered or certified mail return receipt requested
D. Electronic delivery, if proof of receipt by the other party can be shown
10. Sales associate Judith decides to operate her real estate business as an LLC. She buys a new car, expensive office furniture, and a brand-new color printer using the credit of the LLC. After some time, business goes bad and she cannot pay all the bills. Which statement applies to Judith’s situation?
A. The LLC can file for bankruptcy, but her personal credit record will be permanently damaged
B. She needs to create a repayment plan to the LLC since it is a separate entity
C. She can declare the LLC bankrupt while trying to save her personal credit
D. She is in a difficult situation where the LLC status does not help
11. Linda, the listing broker, is planning to forward her commission claim to the closing agent for a commercial property. The owner refuses to pay commission. The property has a value of $1,000,000 and Linda’s commission is 7% of it. The owner had taken out $1,125,000 in mortgages on the property. Can Linda recover her commission?
A. Yes, because she can attach the commission claim to the mortgage lien on the property
B. Yes, because her notice has higher priority than any other lien
C. No, because 7% is not a usual charge for a real estate commission
D. , because there are no net seller’s proceeds
12. A few years ago, Paul bought into a condo conversion. He purchased a unit that was already rented to Tina. Recently, the new condominium board passed numerous restrictions, including one that states that units in the condominium cannot be rented. How do these restrictions affect Paul?
A. Paul has lost his right to rent the unit to Tina and must start an eviction procedure to vacate the premises
B. Paul has lost his right to rent the unit to Tina, and the condominium association can start an eviction procedure to vacate the premises
C. The rental restrictions do not affect Paul directly, but when he puts the unit up for sale, the new owner will not be able to rent it out
D. Condominium associations have no power to pass and enforce rental restrictions
13. Sales associate Nathan has a hardship condition. His license will expire in a few months. What is his best course of action?
A. Nathan can take correspondence courses approved by the commission to meet his continuing education requirement.
B. Nathan has no recourse and his license will be lost forever
C. Online education is the only option, so Nathan just needs to enroll with one of them
D. Nathan can renew the license without taking classes, betting on the odds that his office has never been audited by DBPR officials
14. The new TILA-RESPA Integrated Disclosure (TRID):
A. Is required to be given to all clients by their broker, before showing any homes
B. Has to do with stigmatized properties
C. Is only required in case of a foreclosure
D. Is required with all residential purchases where the buyer is applying for financing
15. Sales associate Sandra just received training regarding the Federal DO NOT CALL list. She goes back to her office and starts calling people from a reference directory organized by zip code, listing people who are NOT on the Federal DO NOT CALL list. When she begins calling, she should:
A. Push those calls as much as she can so she can get a lot of listings
B. Avoid those listings that are on the state’s independently enforced DO NOT CALL LIST, maintained by the Florida Department of Agriculture
C. Not worry about the old state DO NOT CALL LIST because it is now merged with the federal list
D. Call early in the morning to catch her prospects while they are sleeping and their defense level is low
16. If there is any change to the APR of the borrower’s loan, which increases it by more than 1/8 of a percent for fixed-rate loan or ¼ or a percent for adjustable loan, the borrower will receive a New Disclosure statement and is given a review period of:
A. 3 Days
B. 1 Day
C. 1 Week
D. No such review period is required
17. Vincent committed suicide in his house. When the police found the body, the case made headlines in all the local newspapers. The legal representatives of the deceased contacted Gladys, a sales associate, to sell the property a few months after Vincent’s death. Gladys was made aware of the situation. When showing the property, it would be best for Gladys to:
A. Discourage potential buyers from seeing that listing
B. Secure written permission from Vincent’s heirs to divulge the information to potential buyers
C. Show the house and give a special tour of the room where Vincent’s body was discovered
D. Show the house and explain the techniques that were used to sanitize it after the death of the previous owner
18. Joe is a serviceman who is called to duty overseas while residing in a home in Port Charlotte, FL. When he notifies his landlord, the landlord makes it clear that he will not return Joe’s deposit because he only gave a five-day notice. Which is true?
A. The situation is not in compliance with Florida Statutes
B. The landlord violated FS 83.67, and Joe is entitled to his deposit
C. Joe is in violation of FS 83.67, and the landlord can keep the deposit in a separate, non-interest-bearing escrow account
D. Both the landlord and Joe are in violation of their rental agreement and may be deferred to FREC under the provisions of FS 83
19. If there is no brokerage agreement extension what period of time is a lien effective for?
A. 1 year
B. 3 years
C. 5 years
D. A brokerage agreement must be recorded
====== Real Estate Law 2nd class ===
1. The Dunlap family is buying their first home and getting ready to go to settlement. On their final walk-through they discover that the dishwasher is broken. Will this discovery mean a delay in their settlement due to the new Integrated Closing Disclosure?
A. Possibly, depending if the amount of credit that the seller will give the Dunlaps will affect the APR more than ¼%
B. No, walk-through items are exempt from the 3-day review rule
C. Yes, because if any changes happen at the last minute before closing, it always delays settlement
D. Yes, since the seller will now contribute funds towards settlement, the lender is required to submit a new Closing Disclosure to the Dunlaps and wait 3 days for their approval before the closing can take place
2. Enrollment in FL do not call list
A. Is available for all phone numbers
B. is good for 5 years for free for residential and cell lines
C. Is only available for business phone numbers
D. Requires the consumer to pay enrollment fee
3. Regulation Z, under the Consumer Protection Act, regulates:
A. The amount of days a buyer can take to complete a home inspection
B. The requirements for agents to disclose stigmatized properties
C. Access to federal flood insurance programs
D. The ability to make loans without the consumer’s ability to repay
4. The main purpose of the Real Estate Recovery Fund is
A. Provide continuing education to licensees
B. Reimburse brokers for failed real estate transactions
C. Fund recovery efforts for real estate properties damaged by hurricanes
D. Reimburse members of public for significant losses due to illegal actions of a licensee
5. The state of FL issues the following Real Estate licenses:
A. Broker and Sales Associate
B. Broker, Broker Associate and Salesperson
C. Broker and Salesperson
D. Broker, Sales Associate and Property manager
6. Gary has a contract to purchase a townhome. Unfortunately, his financial situation changes due to a job lay off and he is not able to secure financing within the contract time. Can Gary get his earnest money deposit (EMD) back?
A. Yes, he can request and receive the deposit from the broker without having to go through the four settlement process, as long as his lender provides him with a denial letter
B. Gary has failed to perform on settlement and his EMD will be released to the seller
C. The broker has to initiate the four settlement process to determine which party receives the deposit
D. The broker can keep the EMD as commission for the failed transaction
7. Real estate broker Fred listed a highly desirable high-end property owned by his brother without any listing agreement or any consent of the brother. The price he listed the property at was highly attractive to buyers and Fred took 3 buyers to see the property without the owner’s knowledge. All 3 buyers made offers on the property with a size-able deposit. Once the deposits cleared Fred’s account, he withdrew all the cash and fled the country. What recourse do these buyers have?
A. They should call the FBI and have them initiate an international man hunt for Fred
B. They have no recourse and their money can never be recovered
C. They can recover the money from Fred’s brother even though Fred acted without his knowledge or consent. Being related to Fred makes the brother responsible for the fraud
D. They should file for reimbursement from The Real Estate Recovery Fund upon obtaining a court order
8. A person’s license can be placed under involuntary inactive status for any of these reasons except
A. The educational requirements were not fulfilled
B. The licensee has decided to change brokerage for the second time in one year
C. The employing broker died
D. The license of the employing broker was revoked or suspended
9. Transactional brokerage means:
A. The licensee owes fiduciary to both parties of the transaction
B. The licensee is representing him or herself in the transaction
C. The licensee is the facilitator of the transaction and does not owe fiduciary to any one party in the transaction
D. The licensee only assists one party of the transaction
10. Owner Kenny is concerned with the intention of his commercial real estate broker to place a lien on one of his investment properties. The broker has filed a notice of intent to file a lien, and has followed the notice with the actual recording of the lien itself, for the nonpayment of a commercial real estate lease commission. What is the proper course of action for Kenny, under the provisions of FS 475?
A. Kenny can have his attorney call the broker and tell him that the attorney will sue the broker if the broker does not remove the lien
B. Kenny can dispute the lien by notifying his broker in writing that his claims are in error and that nothing is due from him
C. Kenny has lost, and he should pay the commission
D. Kenny can file a written notice of dispute in the public record where the property is located requesting the lien be expunged
11. If a commission dispute arises:
A. The closing agent can keep the money in escrow until the dispute is over
B. The closing agent needs to file a bill of interpleader if the dispute is not settled within five days after closing
C. The closing agent can issue a certified check to the broker in the amount of his commission, if the seller is not able to prove his point
D. The closing agent does not play any role in a commercial transaction
3rd class – 9/22
1) The buyer has (—–) days after the effective date of the contract or after the delivery of condo documents, whichever is later, to cancel the contract for any reason
A. 3
B. 5
C. 15
D. 7
2) Broker Ed discovers when balancing his trust account check book with his monthly bank statement that he has $914 of his own fund left in the account. Which of the following is true?
A. Broker Ed must must immediately withdraw $414 to bring the balance down to $500.
B. Broker Ed must report this balance to the real estate commission immediately
C. Broker Ed is subject do 1 year suspension for violating the rules regarding trust accounts.
D. Broker Ed is fine as the personal funds is less than $1,000.
3) A broker can record a lien for the nonpayment of a commercial real estate sales commission on:
A. The subject property as long as it is a commercial facility under the provisions of FS475
B. The subject property
C. The net proceeds for the seller
D. The appraised value of the property
4) Sales associate Nathan has a hardship condition. His license will expire in a few months. What is his best course of action?
A. He can present a written request to the commission to allow him to fulfill the continuing education course by correspondence because of his hardship.
B. Nathan has no recourse and his license will be lost forever.
C. Continuing education courses can be taken through distance learning course providers, so Nathan just needs to enroll with one of them.
D. Nathan can renew the license without taking classes, betting on the odds that his office has never been audited by DBPR officials.
5) What did the VA raise the guarantee amount to in 2006?
A. $40,000
B. $60,000
C. $104,250
D. $240,000
6) What is the new maximum for FHA loans?
A. There is no new maximum, since FHA maximum insurable amounts never change.
B. The new maximum is adjusted at $235,000.
C. There is no such a thing as a new maximum, because FHA maximum insurable amounts change from region to region and are adjusted periodically to the cost of living in each area.
D. The new maximum is $320,000 and adjusted 3% every year.
7) How long is the Statute of Limitations?
A. Four Years
B. Five Years
C. Six Years
D. Seven years
8) If no brokerage agreement extension or a brokerage agreement at all, what period of time is a lien effective for?
A. 1 year
B. 3 years
C. 5 years
D. A brokerage agreement must be recorded
9) If a 1031 Exchange Like Transaction, who is in charge of holding the money generated by the sale?
A. Property owner
B. Qualified third party intermediary
C. Closing agent
D. Broker
10) Peter, the buyer’s broker, is planning to forward his commission claim to the closing agent for a commercial property. The seller has repeatedly refused to pay commission. The property has a value of $1,000,000 and Peter’s commission is 7% of it. The owner has taken out $975,000 in mortgages on the property. How much can Peter recover under the procedure explained in FS 475?
A. $70,000 (his whole commission.)
B. $25,000
C. An amount determined by FREC
D. Nothing, because he is a buyer’s agent, and only the listing broker can recover under the provisions of FS 475.
11) What date did the commission lien legislation become effective?
A. November 1st, 2005
B. October 1st, 2005
C. September 1st, 2005
D. August 1st, 2005
12) Sales associate Ned has a hardship condition. His license will expire in a few months. Which of the following options is his best choice?
A. He can present a written request to the commission to allow him to fulfill the continuing education course requirement by correspondence because of his hardship.
B. He can do nothing; he has no recourse and his license will be lost forever.
C. Continuing education courses can be routinely taken through continuing education providers, so Ned simply needs to enroll in one of them.
D. Ned can just renew his license without taking the class, betting on the odds that his office has never been audited by DBPR officials.
13) The FCRELCLA makes it clear that the only way to receive payment is if a broker has a written brokerage agreement with whom, specifying what the acts are that trigger the earning of a real estate commission?
A. The seller
B. The landlord
C. The selling agent
D. The commission
14) Sales associate Sandra just got her training on the State DO NOT CALL list. She goes back to her office and starts calling people from a reference directory organized by zip code, which also lists people who are NOT on the Federal DO NOT CALL list. When she begins calling she should:
A. Push those calls as much as she can so she can get a lot of listings.
B. Avoid those listings that are on the federal DO NOT CALL LIST, maintained by the Federal Trade Commission.
C. Not worry about the old state DO NOT CALL LIST because it is now merged with the federal list.
D. Call early in the morning to catch her prospects while they are sleeping and their defense level is low.
15) Sarah is ready to prepare an e-mail marketing campaign. When doing so, she needs to remember that:
A. There are very serious penalties for violators of the DO NOT SPAM list.
B. There is no such thing as a DO NOT SPAM list.
C. Unsolicited e-mails can be fined up to $11,000 for each offense.
D. Unsolicited e-mails can be fined up to $10,000 for each offense.
16) Newly licensed sales associate Henry just got a listing on a timeshare, but he is not sure how to handle it. What is the chapter of the statute where he can find important information regarding timeshares?
A. FS 120
B. FS 475
C. FS 718
D. FS 721
17) Which is a misdemeanor of the first degree?
A. Publishing false and misleading information.
B. Violation of rental lists and rental companies.
C. Practicing real estate without a license.
D. Wrong letter size for the office sign.
18) Lou Ann is a buyer’s broker. The seller of a commercial property refuses to pay her commission. By the time the closing takes place, Luann is ready to place a lien claim on the seller’s proceeds. Which is true?
A. Lou Ann is entitled by FS475 part III to place a lien on the net proceeds of the seller.
B. Lou Ann is entitled by FS475 part IV to place a lien on the net proceeds of the seller.
C. Lou Ann, being a buyer’s broker, has no title to claim commission.
D. Lou Ann can place a lien on the net proceeds of the seller only after the transaction closes.
19) Broker Barbara needs to file a notice to impose a claim for nonpayment of a commercial real estate sales commission. Which is not one of the allowable methods of delivery of this notice?
A. Personal delivery
B. Telegraphic transmission
C. Registered or certified mail return receipt requested
D. Electronic delivery, if proof of receipt by the other party can be shown.
What is the maximum guaranteed amount for a loan guaranteed by VA?
A. $40,000
B. $60,000
C. $104,250
D. $240,000
20) Which information cannot be disclosed to the buyer in a real estate transaction?
A. The tiles under the carpet are loose.
B. The house has lots of termites.
C. Someone committed suicide in the house.
D. The roof of the house has a minor leak.
21) Betty is a sales associate for Great Big Homes Realty. She shows a big house to Annie and Ed, a recently wed couple. Annie and Ed decide to put an offer in writing that same day. When he writes the earnest deposit check, Ed, a real estate attorney, asks Betty: “What will the property tax bill be for this house?’” What is appropriate conduct for Betty?
A. To look at the previous owner’s tax bill and base her answer on that
B. To bring Ed’s attention to the TAX DISCLOSURE notice on the real estate contract and refer him to the office of the county tax assessor
C. To explain that property taxes are usually 2% of the sale and purchase price
D. To say that she is not entitled to give any legal advice and tell him to call his lawyer
22) Broker David does not maintain error and omission insurance. He discovers a major mistake made by one of his sales associates, Sandra, on a commercial contract. Sandra is licensed as an LLC. Which is true in this situation regarding her liability?
A. In the state of Florida, a licensee cannot be licensed as an LLC.
B. Since she is an independent contractor, her broker is fully responsible for her mistakes.
C. Since she is licensed as an LLC, she can bankrupt the LLC and keep working under her name.
D. The fact that she is licensed as an LLC does not limit her professional liability.
23) Broker Jon is making a claim to the owner and closing agent to a piece of property. There was no closing required in the brokerage agreement. How many days after the commission is earned does broker Jon have to claim for his commission?
A. 10 days
B. 20 days
C. 30 days
D. 40 days
24) If an owner disputes the commission notice, what is the duty of the closing agent?
A. Take the issue to the county circuit court
B. Confirm with the broker that’s the statements being claimed are accurate
C. Pay the commission amount back to the owner
D. The closing agent has no duties, the broker does
25) By recording a commission notice in public record of the county where the property is located, what does the broker ensure of the lien?
A. cannot be assigned to a third party
B. cannot be enforced by a third party
C. cannot be transferred by a third party
D. all of the above
26) When looking at a property, Mary Anne asks sales associate Trudy to see the tax bill of the previous year to evaluate the return on her investment the next year. An appropriate answer from Trudy would be:
A. “I do not have it now, but I will ask the owner to fax it to me.”
B. “I’m sorry, but the statute expressly warns buyers of real estate property NOT to base their estimate of future taxes on the taxes paid by the previous owner.”
C. “I don’t know where to find that information.”
D. “The taxes you will pay are about two per cent of the sales and purchase price of the house and do not depend on the taxes paid by the previous owner.”
27) Laurie is a buyer’s broker. The seller of a commercial property refuses to pay her commission. By the time the closing take place, Laurie is ready to place a lien claim on the seller’s proceeds. Which of the following is true?
A. Laurie is entitled by FS475 part III to place a lien on the net proceeds of the seller.
B. Laurie is entitled by FS475 part IV to place a lien on the net proceeds of the seller.
C. Laurie, being a buyer’s broker, has no title to claim commission.
D. Laurie can place a lien on the net proceeds of the seller only after the transaction closes.
28) A commercial transaction closes with zero cash for the seller, a $20,000 purchase money mortgage, and no commission paid to the real estate broker. How can the broker recover?
A. The broker cannot recover, because a commission lien claim attaches on the net proceeds of the sale and in this case the owner got zero cash out.
B. The broker cannot recover, because a commission lien claim attaches only on the subject property and the property now has been sold to a new owner.
C. The broker can attach a commission lien claim on the subject property.
D. The broker can attach a commission lien claim on the purchase money mortgage.
29) Which method cannot be used to take a continuing education course without proving hardship?
A. A continuing education course delivered by CD ROM
B. A continuing education course delivered over the internet
C. A continuing education delivered by mail
D. A continuing education course delivered by distance learning as defined in FS 485
30) In the creation of a lien, the lien attaches to which of the following
A. The net proceeds
B. The real property
C. Neither the net proceeds nor the real property
D. May be attached to either, it’s a matter of preference
31) Sales associate Tim is involved in negotiating a commercial lease and does so under the supervision of broker Mary Ann. If the commission is not paid and the real estate brokerage firm has to place a commission lien notice, this commission lien notice belongs to whom?
A. Tim
B. Mary Ann
C. Tim and Mary Ann split the commission
D. Neither
32) David committed suicide in his house, and the story made headlines in all the local newspapers. Sales associate Gladys was contacted by the legal representatives of the deceased to sell the property a few months after David’s death. When showing the property, the best conduct for Gladys would be to:
A. Prevent potential buyers from seeing that listing
B. The fact that a property was the site of a death is not a material fact that must be disclosed in a real estate transaction
C. Show the house, except for the room where David died
D. Show the house and explain the techniques that were used to sanitize it after the death of the previous owner
33) Betty is a sales associate for “Great Big Homes Realty”. She shows a big house to Annie and Ed, who decide to put an offer in writing that same day. At the time of giving the earnest deposit check, Ed, a prominent real estate attorney, asks Betty: “What will the property tax bill be after we buy this house?” What is appropriate conduct for Betty?
A. She should look at the previous owner tax bill and base her answer on that.
B. She must direct Ed’s attention to the TAX DISCLOSURE notice on the real estate contract and refer Ed to the office of the county tax assessor.
C. She can explain that property taxes are usually 2% of the purchase price.
D. She should say that she is not entitled to give any legal advice and tell him to call his lawyer.
34) Marva wants to add the PA designation after her name in her real estate sales associate license. How can she do that?
A. It is not possible under the current law to have real estate sales associate license issued to an entity other than an individual.
B. She must file a written request with the Florida Department of State.
C. She must file a written request on an appropriate form with the Florida Department of Business and Professional Regulation and pay a $35 fee.
D. She must file a written request on an appropriate form with the Florida Real Estate Commission Ombudsman’s office and pay a $25 fee.
35) Broker Sandra realizes that her client, seller Barb, is closing next week on a commercial property that is listed with her, and Barb has no intention of paying the commission. Sandra’s listing agreement with Barb has a legally sufficient disclosure that spells out Sandra’s right to impose a claim. How would Sandra proceed?
A. She needs to file a commission lien claim in the court where the property is located.
B. She needs to file a commission lien claim in the court where the property is located and deliver the notice of intent of placing a lien both to the owner and to the closing agent.
C. She needs to notify the owner and the closing agent, in writing, of her intention to impose her claim.
D. She needs to have the cooperating agent deliver a copy of the lien that she will place on the property to all parties before closing.
36) Owner Kenny is concerned about his commercial real estate broker’s intention to place a lien on one of Kenny’s investment properties. The broker has already filed a notice of intent to file a lien for nonpayment of a commercial real estate lease commission. What is the proper course of action for Kenny, under the provisions of FS 475?
A. Kenny can dispute the charge by having his attorney call the broker and inform him that he (the attorney) will sue the broker if the broker does not remove the lien.
B. Kenny can dispute the lien by notifying his broker in writing that his claims are wrong and that nothing is due from him.
C. Kenny has lost, and he should pay the commission.
D. Kenny can file a written notice of dispute in the public record where the property is located, requesting to expunge the lien unless the broker provides further evidence in 60 days.
37) Linda, the listing broker, is planning to forward her commission claim to the closing agent for a commercial property. The owner refuses to pay commission. The property has a value of $1,000,000 and Linda’s commission is 7% of it. The owner had taken out $1,125,000 in mortgages on the property. Can Linda recover her commission?
A. Yes, because she can attach the commission claim to the mortgage lien on the property.
B. Yes, because her notice has higher priority than any other lien.
C. No, because 7% is not a usual charge for a real estate commission.
D. No, because there are no net seller’s proceeds.
38) Sales associate Sandra just received training regarding the Federal DO NOT CALL list. She goes back to her office and starts calling people from a reference directory organized by zip code listing people who are NOT on the federal DO NOT CALL list. When she begins calling, she should:
A. Push those calls as much as she can so she can get a lot of listings.
B. Avoid those listings that are on the state’s independently enforced DO NOT CALL LIST, maintained by the Florida Department of Agriculture.
C. Not worry about the old state DO NOT CALL LIST because it is now merged with the federal list.
D. Call early in the morning to catch her prospects while they are sleeping and their defense level