PRACTICE EXAM G

(The answers to the following questions are that the bottom of the page.)

1. When a salesperson receives deposit money

a. The salesperson can deposit it into a special account.
b. The salesperson should turn it over to the broker.
c. The salesperson should give it to the seller.
d. The salesperson should put it into this checking account.

2. The position of trust assumed by the broker as an agent for the principal is described most accurately as:

a. Trustee relationship
b. Trustor relationship
c. Confidential relationship
d. Fiduciary relationship

3. If a buyer presents a broker with an offer at the listed price contingent on financing:

a. The broker has earned a commission
b. The broker provided authorized in writing by the seller, could accept the offer and bind the principal.
c. The buyer is obligated to buy even if the contingency is not satisfied.
d. Contingencies have no effect on the potential of the broker earning a fee.

4. FREC is empowered to revoke the license of any licensee found guilty of:

a. A violation of motor vehicles laws.
b. Drunkenness in a public place.
c. Representation of facts
d. Conversion of escrowed funds.

5.The presiding member of the FREC Probable Cause Panel:

a. Must be a licensed member.
b. Must be a consumer member.
c. Must be a broker member.
d. May be licensed member or a consumer member.

6. Upon completion of the entire complaint process, Broker C. Cellar was convicted of three violations of F.S. 475. FREC has the power and authority to:

a. Revoke or suspend Cellar's license
b. Reprimand Broker Cellar.
c. Fine Cellar $3,000
d. All of the above.

7. An owner gives an exclusive right of sales listing to a broker for 12 months. The owner wishes to back out of the
agreement. The owner:

a. Can revoke the listing at any time during the listing period, up until the time the broker finds a ready, willing & able buyer. but may owe the commission.
b. Can not revoke the listing during the listing period.
c. Must get the broker's permission to end the listing.
d. Owes the broker the agreed commission.

8. If a legally sufficient complaint has been filed, investigated and found valid, the next step in the complaint process is:

a. An informal proceeding
b. A formal hearing
c. Probable cause determination
d. Final order issuance

9. Which of the following activities is (are) considered to be fraudulent?
I. A licensee accepts an earnest money deposit on a property without first disclosing that a mortgage lien exists.
II. A transaction broker fails to disclose a latent defect to a potential buyer to entice the buyer to make an offer.
III. A broker refuses to abide by a principal instructions to avoid showing a listed property to a certain minority group.
IV. To promote the opening of a new real estate office the broker invites the public to register for the drawing of a free lot.

a. I and IV only
b. I I and III only
c. I, II and IV only
d. I, II, III and IV

10. The best description of a special agent would be a person who:

a. Is an attorney
b. Is a broker
c. Has limited authority
d. Has a power of attorney

11. A broker who is the agent for a seller-principal has the duty of:

a.Limited confidentiality
b.Full confidentiality
c.Rejecting unreasonably low offers
d.Limited disclosure

12. Type of representation (single agent, transaction broker, no representation) between a broker and a client pertains to:

a. Nonresidential transactions
b. Residential transactions
c. Renting or leasing transactions
d. All of the above

13. A broker owes certain duties to a customer. All of the following are included in these duties except:

a. Loyalty
b. Skill, care and diligence
c. Full disclosure
d. Accounting for all funds

14. The commission rate for the sale of real estate is determined by one of the following:

a. Negotiation between the seller and the broker
b. Fixed schedules approved by the FREC
c. Scarcity of real estate for sale
d. Silent agreement among brokers in a local area.

15. Dispute arises between the seller and the buyer on the disposition of escrowed funds. Both agree to resolve the dispute by turning it over to a third party for a recommended solution. This is an example of:

a.Representation
b.Mediation
c.Arbitration
d.Litigation

16. A broker sold a rental list to a prospective tenant who rented one of the apartments on the list. After sixty days the tenant discovered that the rent did not include the gas, so she
called the broker for a refund on the rental list. The percentage of the cost of the rental list the broker is required to refund is:

a. 0%
b. 25%
c. 75%
d. 100%

17. A licensed salesperson is selling property he owns without going through his office and places an ad in the newspaper. The salesperson must include in the ad.

a. His trade name
b. His broker's firm name
c. Some indication he has a real estate license
d. All of the above

18. Salesperson Sally works for Broker Bob; Bob instructs Sally to show property to anyone except members of a minority race.
Sally should:
a. Avoid members of the minority race in question in order to prevent any conflict with Broker Bob
b. Require the instructions to be given in writing
c. Move her license to another employer
d. Follow her broker's instruction because Bob is Sally's principal

19. Broker Bob receives escrow money from a prospective buyer at noon on Friday. Monday is Labor Day. Bob must deposit the money before:

a. The end of Friday
b. The end of Tuesday
c. The end of Wednesday
d. The end of Thursday

20. Unless the seller consents, is unlawful for a licensee to place a "sold" sign on a property prior to the:

a. Acceptance by the seller of a bona fide offer.
b. Closing of the transaction where a deed is executed.
c. Closing of the sale where both parties sign the contract
d. Delivery of a signed offer at price and terms of the listing contract.

21. A broker may release a purchaser's deposit money from an escrow account under the following circumstances except when:

a. The transaction is consummated by the buyer and seller.
b. The deposit is forfeited by the buyer.
c. FREC issues an escrow disbursement order.
d. The buyer changes his mind after acceptance of the contract by the seller.

22. Some kickbacks and rebates are legal as long as the affected parties are informed and agree, but one type of rebate that is expressly forbidden by law involves:

a. Appraising fee rebates
b. Insurance rebates
c. Closing agent rebates
d. Commission fee rebates

23. A salesperson leaves one real estate office for employment by another broker. The salesperson informs all persons who have listed through the salesperson that he is leaving, and takes copies of the listings in order to call on these clients at a late date. Under these circumstance the salesperson:

a. Has done nothing illegal because the clients won't be contacted until a reasonable time has elapsed.
b. Is guilty of breach of trust.
c. Is guilty of larceny.
d. Has committed a first degree misdemeanor.

24. Broker Bob's friend asks Bob to appraise a property for a fee. Bob estimates the value, gives his friend his opinion of value, and collects $75.00. In this situation Broker Bob:

a. Has violated F.S. 475.
b. Has done nothing illegal
c. Has committed a misdemeanor of the first degree.
d. Must be licensed appraiser to collect a fee.

25. A field of real estate that has experienced rapid growth and specialization in recent years due to absentee owners is the field of:

a. Business enterprise brokerage
b. Business opportunity brokerage
c. Property management
d. All of the above

26. Compensation for persons who appraise property is based on:

a. Time and difficulty of the work.
b. A percentage of the property's value.
c. Whether an appraiser or a Realtor is estimating the value.
d.Whether the client is a bank or an individual.

27. In order to receive permits to begin a new development, a developer must submit to the local planning commission:

a. An architect's drawing of the homes to be built
b. An aerial photograph of the property
c. Deed restrictions to be recorded in public records.
d. A subdivision plat map of the new development.

28. A couple visits a development and they look at four model homes that could be placed on a variety of lots. This is an example of:

a. Speculation building
b. Custom home building
c. Tract home building
d. None of the above

29. Members of the Florida Real Estate Commission are:

a. Charged with regulating the practice of the real estate profession.
b. Appointed by the Governor and confirmed by the Senate.
c. Placed within the DBPR
d. All of the above.

30. In order to qualify for a salesperson license, an applicant must:

a. Not miss more than ten percent of the course.
b. Pass the state exam with a grade of 75% or better.
c. Be a resident of the State of Florida.
d. Have a high school diploma.

ANSWERS