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Florida Real Estate Exam Ch.5-8

Terms in this set (157)

Brokerage Offices
-Active brokers are required to have an office and to register the office with the DBPR
-Office must consist of at least on enclosed room in a building of stationary construction
-broker's books, records, and files pertaining to real estate must be kept in the office
-Office may be in his or her residence, provided the required sign is displayed properly
-may have office in another state, provided broker agrees in writing to cooperate with any investigation
Principal Office
broker's primary office
Can sales associates open offices of their own?
No, they must be registered from and work out of an office maintained and registered in the name of their employer
Branch offices
-if a broker wants to conduct business from additional locations, the broker must register each additional location as a branch office and pay the appropriate registration fees
Temporary shelter
-Temporary shelter in a subdivision being sold by a broker is not a branch office if the shelter is intended only for the protection of customers and sales associates
-if sales associates are assigned there, necessary supplies are on hand, and sale transactions are concluded there, then it must be registered as a branch office
Are registrations issued to branch offices transferable?
No. If a broker decides to close one branch and open another at a different location, the registration of the closed office may not be transferred to another office. The new location must be registered and the fee paid just as though the old branch office had not been closed. The broker may open the old office at any time during license period on application to the DBPR without paying an additional fee.
Office signs
-Each broker must display a sign on or about either the exterior or interior of the entrance to his or her principal office and all branch offices.
-signs must be easily observed and read by anyone about to enter the offices.
-each sign must contain the name of the broker, trade name, and words "licensed real estate broker" or "lic. real estate broker"
-If a partnership, sign must contain the name of the firm or corporation, name of at least one of the active brokers, and words "licensed real estate broker" or "lic. real estate broker"
-broker may place names of sales associates or broker associates on signs, below the names of brokers, and their licensed status as such
-line or observable space must separate names of brokers and names of sales associates
Blind Advertisement
Advertising that fails to disclose the licensed name of the brokerage firm. Ex would be an advertisement that provides only a post office box number, telephone number, or street address and is prohibited
point of contact information
refers to any means by which to contact the brokerage firm or individual licensee including mailing address, physical street address, email, telephone number, or fax. When advertising on an internet site, the name of the brokerage firm must appear adjacent to or immediately above or below the point of contact info
Earnest Money Deposit
money pledged by a buyer to show good faith when making an offer to buy a home
Escrow Account
an account where money is held in trust until it can be delivered to a designated party
What happens to earnest money deposits when they are received?
Sales associates must immediately deliver earnest money deposits to their broker employer no later than the end of the next business day. If escrow check is made out to the sales associate personally, they should immediately endorse the check and include the words "For deposit only to the (name of escrow account) " and turn it over to the broker
What is immediately for brokers?
Means no later than the end of the third business day. No saturdays, sundays, or holidays. first day of the three business day period begins the day that the sales associate or employee must actually turn over the earnest money to the broker
Florida law requires
that the broker be the signatory on the account. Such funds may be placed in an interest bearing or noninterest bearing escrow account with a Florida based title company having trust powers, Florida commercial banks, credit unions, savings associations, or attorney
What happens to the interest earned in an interest bearing account?
The broker must get written authorization as to who is entitled to the interest. Broker may receive the interest earned, but only if it specifically agreed to by all parties. A broker can be disciplined by the FREC for failure to secure the written permission of all interested parties prior to placing trust funds in an interest bearing account. Records must be preserved for 5 years and then for 2 years following any court proceedings
Commingle
the illegal practice of mixing a buyer's, seller's, tenant's, or landlord's funds with the broker's own money or of mixing escrow money with the broker's personal funds or brokerage funds. Broker is allowed to play up to $1000 of personal or brokerage funds in escrow account. May keep up to $5000 of their own monies in a property management escrow account
Conversion
Unauthorized control or use of another person's personal property. Thats why escrow account must be properly reconciled each month
Conflicting demands
occurs when buyer and seller make demands regarding the disbursing of escrowed property that are inconsistent and cannot be resolved. If broker receives conflicting demands on escrowed property, the broker must notify the FREC, in writing, within 15 business days of the party's last demand unless specifically exempted. Broker must institute one of the four settlement procedures within 30 business days after the last demand
Three exemptions to the notice requirements involving conflicting demands
1. brokers who are entrusted with an earnest money deposit concerning HUD
2. if a buyer of a residential condo unit timely delivers to a licensee a written notice of the buyer's intent to cancel the contract as authorized by Condo ACt
3. if a buyer of real property in good faith fails to satisfy the terms specified in the financing clause of a contract for sale and purchase
Good faith doubt
A broker's uncertainty as to which party should receive the escrowed property. if a broker has good faith doubt, must notify FREC in writing within 15 business days
What are the four settlement procedures?
1. Mediation - informal, nonadversial process intended to reach a negotiated settlement. If not sucessfully completed in 90 days, licensee must use other procedures
2. Arbitration -matter is submitted to a disinterested third party, who makes a judgement
3. Litigation - matter is submitted to a court of law for resolution by interpleader
4. Escrow disbursement order - broker may choose for commission to issue an EDO, a determination of who is entitled to the disputed funds.
Interpleader
A course of action when two contesting parties cannot reach an arbitrated agreement; A legal proceeding whereby the broker, having no financial interest in the disputed funds, deposits with the court the disputed escrow deposit so that the court can determine who is the rightful claimant.
Failure to account for and deliver
The act of failing to pay money to a person entitled to receive it.
Advance fees
fees collected by a broker in advance for the listing of real property. When collected broker must deposit at least 75% of the advance fees into an advance fee trust account. This account may not be commingled with any other escrow accounts or personal accounts. Violation of advance fee requirements is a misdemeanor of the first degree and is punishable by a fine of up to $1000 and or imprisonment for up to one year and possible revocation of license. Allows a seller treble (triple damages)
Kickback
Payment of money from someone other than the buyer or seller associated with real estate business. prohibited from receiving a kickback or rebate involving title insurance or property insurance
Finder's fee exemption
A property management firm or an owner of an apartment complex may pay up to $50 to an unlicensed person who is a tenant of the apartment complex
Change of employer
-Notify FREC of change within 10 days on prescribed form (request of change status)
-License ceases to be in force until change reported
-Confidentiality still in force after termination
-No duplication or removal of records
Who may and may not register as brokers?
MAY:
-corporations
-partnerships
-sole proprietorships
-limited liability company
-limited liability partnership
MAY NOT:
-corporations sole
-joint ventures
-business trusts
-cooperative associations
-unincorporated associations
Sole Proprietorship
A business owned by one person. Personally liable not only for his actions but also for any employees acting within the scope of their employment
General Partnership
partnership in which partners (2 or more) share equally in both responsibility and liability. Broker must be replaced within 14 days if the registered one dies or resigns
Ostensible partnership
parties do not form a real partnership but act, or do business, in such a manner that the public would be deceived into believing one exists
Limited partnerships
partnerships with one or more general partners and one or more limited partners. The partners must make an investment of cash or of property, but not services. a limited partner is not liable to creditors of the partnership unless the limited partner's name appears in the partnership name. Only liable for any unpaid part of his or her pledged contribution
Limited Liability Partnership
a type of partnership in which all partners are limited partners. Not liable for obligations or liabilities of the partnership arising from contract, errors or omissions, negligence
Corporation
artificial person or legal entity created by law and consisting of one or more persons.
Corporation for profit
managed by a board of directors, acting through the officers, such as a president, etc
Corporation Sole
church organization, but not a non-profit
Joint venture
an agreement between two or more companies to share a business project, temporary agreement
Business trust
form of business entity that may be created to engage in transactions involving its own real property
Cooperative Association
permitted to conduct commercial business and to convey, sell, or buy its own property but it cannot be registered as a real estate broker
Unincorporated Associations
An group of people associated together for some common, noncommercial purpose
1.) John Anderson is a licensed real estate sales associate. Under which name may he register and be licensed?
A.) Complete Real Estate Sales Services
B.) John Anderson Brokerage
C.) John Anderson, LLC
D.) John Anderson and Partners
C.
2. Which statement is FALSE concerning brokerage signs?
A.the sign must include the broker's trade name, if applicable
B.the broker must maintain a sign at the entrance to each branch office
C. A sign is not required if the broker's office is located in his or her residence
D.the words "licensed real estate broker" must be included on the sign
C.
3. A broker may maintain an escrow account in all of the following EXCEPT
A. a title company in Florida that has trust powers
B. credit union in Florida
C. commercial bank in florida
D.life insurance company in Florida
D.
4. In connection with escrow accounts, the FREC has rules and regulations that
A. permit the depositing of personal funds into an escrow account as long as adequate records are kept
B.prohibit the depositing of more than $1000 of personal funds into a sales escrow account
C. require deposits to be placed in an escrow account by the sales associate
D.require escrow disbursement orders to be prepared when making all deposits
B.
5. Real estate associates who receive checks payable to them as deposits on the purchase of real property must
A.endorse the checks, deposit them in their employers' accounts, and maintain good records
B. endorse the checks and immediately turn them over to their employers
C. deposit the checks immediately in their own accounts and notify their employers of the transactions
D. deposit the checks immediately and give their employers the equivalent amounts in the form of checks or cash
A.
6. Broker Murl decides to use the trade name Little Mo Realty for the name of his real estate business. Murl must
A. register the trade name with the Fl Department of State
B. obtain a charter from the State of Florida
C. register the trade name with the FREC so that it can be entered into the Commission's records
D. all of the above
D.
7. Which statement is false regarding escrow accounts?
A. the escrow account may be either interest bearing or noninterest bearing
B. a broker may choose to have an attorney or a Florida title company maintain the escrow account
C. it is illegal for the broker to keep any earnest money interest even if the buyer and seller give written permission
D. a broker must get written authorization from the buyer and seller prior to placing escrow funds in an interest bearing account
C.
8. A dispute arises between the buyer and seller as to which one is entitled to escrowed property. The broker should first
A. mediate the matter
B. arbitrate the matter with the consent of both parties
C. notify the FREC, unless exempted from notice requirements
D. submit the matter to a court of law for adjudication
C.
9. Regarding advance fee trust accounts
A. 100 percent of all such advance fees collected must be deposited
B. at least 75 percent of all such advance fees collected must be deposited, with the exception of advance fees for auctioning real property
C. such accounts may be combined with other escrow or trust accounts but not with personal accounts
D. a broker may use such funds if the expenditures are limited to general business expenses and accurate records are kept
B.
10. An individual who paid for rental info but did not obtain a rental is entitled to repayment of
A. the fee
B. the fee is requested within 10 days of the contract/receipt date
C. 75 percent of the fee if requested within 10 days of contract/receipt date
D. 75 percent of the fee is requested within 30 days of the contract/receipt date
D.
11. Rebecca purchased a rental list one week ago from a real estate broker. Rebecca inspected an apartment described in the list. The apartment manager told Rebecca the cats were not allowed. Rebecca had specifically looked at the apartment because of the rental indicated that pets are allowed. immediately, Rebecca orally demanded and should legally receive from the broker
A. nothing, because the demand is not in writing
B. 75 percent of the fee paid
C. 100 percent of the fee paid
D. nothing, because the broker may not be held accountable for the actions of the property manager
C.
12.If the license issued to the only active broker of a real estate corporation becomes void for any reason, another active broker must be appointed within 14 calendar days. Failure to appoint another active broker will result in what action against the corporation's registration?
A. automatic cancellation
B.denial
C.automatic suspension
D. revocation
C.
13. Murl decides to incorporate his new real estate business, Little Mo Realty, Inc, in order to reduce his personal liability. Murl must do each requirement EXCEPT
A. register the brokerage entity with the commission
B. obtain a charter from the FL department of State
C. register all officers and directors of the company with the Commission
D. obtain a charter from the Secretary of the DBPR
D.
14. A corporation sole is a
A. commercial enterprise organization and managed by one individual
B. unincorporated association organized for a single common purpose other than to operate as a church
C. church organization registered as a real estate broker
D. ecclesiastical organization
D.
15. To form a general partnership, two or more persons must
A. agree to share equally in the profits and sales
B. agree to engage in business together and share in the profits and losses
C. be personally qualified and licensed as real estate brokers
D. invest equal amounts of money in the business and each be entitled to a share of the profits
B.
16. One difference between a general partnership and a limited partnership is that
A. only a general partnership may be registered as a real estate broker
B. limited partners must make a cash or property investment
C. while both have general partners, there must be two or more general partners in a limited partnership
D. limited partners must be licensed as either active or inactive sales associates
B.
17. which business entity may be registered as a real estate broker?
A. corporation sole
B. cooperative association
C. limited partnership
D. business trust
C.
18.A broker has conflicting demands from a buyer and a seller regarding an escrow deposit. The broker may employ all of the escape procedures listed below EXCEPT
A. request an escrow disbursement order
B. provided all of the parties consent, submit the matter to arbitrate
C. request an informal before the FREC to resolve the matter
D.through an interpleader, submit the matter to a court proceeding for determination of the rightful claimant
C.
19. Broker Murl is getting prepared to open Little Mo Realty as a sole proprietorship and is placing an order to have an entrance sign made. Which wording does NOT need to be included on the sign?
A. Little Mo Realty
B. Murl's legal name
C. licensed real estate broker
D. 1000 sunset blvd
D.
20. In answering questions pertaining to a quality of title, real estate brokers are
A. required to give opinions because of their role as experts
B. required to advise prospective buyers to have a lawyer render an opinion or obtain title insurance
C. allowed to give their opinion because of their role as experts
D. allowed to give their opinions only when specifically asked by the buyer
B.
21. A broker receives conflicting demands concerning a roof inspection report. Both the buyer and the seller claim the earnest money deposit. The broker must
A. provide written notification to the FREC within 10 business days
B. follow the written instructions of the broker's buyer or seller
C. institute one of the statutory settlement procedures within 30 business days after the last demand
D. request an escrow disbursement order from the DBPR
A.
22. The sales commission rates applicable to the various types of property sold in Florida are determined by
A. Frec roles and regulations
B. agreement between each broker and buyer or seller
C. the local board of REALTORS
D. agreement between each seller and buyer
B.
23. when a sales associate decides to leave the employ of her broker to work for another broker, she
A. may take copies of all listings she personally obtained while employed by her former broker
B. must notify the FREC within 10 days of her change in broker-employer
C. may telephone sellers of her former employer to encourage them to cancel their listing agreements with the former employer and then list with her new broker
D. must apply for a new real estate license under the name of the new broker
B.
24. a real estate transaction has been closed, but the seller refuses to pay the broker the commission earned as a result of the sale. The broker may
A. collect triple damages per F.S. 475
B. file suit in a court of law against the seller
C. file an interpleader action in a court of law against the seller
D. request that the FREC issue an escrow disbursement order
B.
25. Broker Murl decides to organize Little Mo Realty as a limited partnership. What must Murl accomplish?
A. file the limited partnership agreement with the FL Department of State
B. Register the limited partnership with the Commission
C. register the general partners with the commission
D. all of the above
D.
26. In FLorida, listings obtained and any commission paid by the buyer or seller are,
A. legally the sales associate's property
B. jointly owned by the sales associate and the sales associate's employer
C. legally classified as the property of the employing property owner
D. legally the property of the sales associate's employer
D.
27. An active real estate sales associate signed an employment agreement with Broker Denton two days ago. Broker Denton is out of town today, and the sales associate needs to know the office rules pertaining to the advertising of listings. That info should be available in the
A. office policy manual
B. office administration manual
C. FREC handbook
D.FREC letter of guidance
A.
28. Broker Murl of Little Mo Realty an Broker Dan of Boyds of Naples agree to work with one another to market a prestigious marina in Naples, Florida. Murl is particularly knowledgable regarding marinas and Dan is an expert on the Naples real estate market., so they decide to combine their expertise on this particular listing. This business arrangement is referred to as
A. ostensible partnership
B. general partnership
C. joint venture
D. limited partnership
C.
What are the 8 steps of the complaint process?
1. filing the complain
2. investigation
3. probable cause
4. formal complaint
5. informal hearing
6. formal hearing
7. final order
8. judicial review (appeal)
Step 1: filing the complaint
-complaint if filed with with DBPR
-must be legally sufficient
-alleged violations do not have to do with real estate and do not have to take place in Florida
-first time offense of minor violation DBPR may issue a notice of noncompliance
Step 2: Investigation
-DBPR conducts investigation and notifies licensee-respondent
Step 3: probable cause
-means reasonable grounds for prosecution
-probable cause panel consists of 2 members of the FREC who are appointed by the chairperson of the Commission
-a former commissioner may serve on the panel, but needs to hold an active valid license
-one of the two must be a current member
-if a consumer member is available then one of the panelists must be a consumer member
-panel must make a decision within 30 days after receipt of the final investigative report
-if panel decides probable cause does not exist, DBPR is allowed 10 days to override that decision and file charges
Step 4: formal complaint
-is an outline of charges against the licensee.
-no response, then license is revoked
-statute of limitations for filing an administrative complaint against a licensee is 5 years
Step 5: informal hearing
-licensee is given the opportunity to present his or her case with supporting evidence and witnesses at an informal hearing
Step 6: formal hearing
-if licensee requests a formal hearing, DBPR requests that the case be prosecuted under chapter 120, F.S. before a Florida administrative law judge assigned by DOAH
-administrative law judge is required to prepare and submit a recommended order that includes their findings and conclusions and the recommended penalty
Step 7: Final Order
-any consent order or agreed on settlement between the FREC and the licensee is subject to the approval of the DBPR
-final order legal proceeding must be in writing
Step 8: judicial review
-supersedeas (stay suspension or revocation)
DOAH
Division of Administrative Hearings - if FREC denies a license the applicant can appeal to DOAH. a court of law cannot force the FREC to issue a license because Florida statutes reserved the power to grant or deny a real estate license to the FREC
What are the grounds for suspension?
-It is temporary, and FREC may suspend a license for up to 10 years
-second suspension for the same or different violation will result in revocation
three types of penalties
-administrative, civil, criminal
Administrative penalties
-for violations of the law or rules and regulations
-ex.
-denial of an application
-refusal to recertify a license for renewal
-suspension of a license for not more than 10 years
-revocation of a license
-a fine not to exceed $5000 for each F.S. 455 violation or $1000 for each F.S. 475 violation or separate offense
-probation, reprimand, citation
Civil Penalties
-if a person has performed any real estate services without a license
Criminal penalties
-A violation of F.S. 475 is legally a misdeanor of the second degree
-punishable by fine of not more than $500 and imprisonment for not more than 60 days
-a corporation may only be fined, because it cannot be imprisoned
First degree criminal penalties
1. unlawfully collecting an advance fee for listing real property
2. failing to provide accurate and current rental info for a fee
-fine of not more than $1000 and up to one year in jail
What happens if a person practices real estate without a license?
-felony of the third degree
-fines of up to $5000 per count to a person it finds guilty
Writ of mandamus
court ordering the unlicensed activity to stop
mitigating and aggravating
mitigating - less sever
aggravating - more severe
Florida Real Estate Recovery Fund
-purpose is to reimburse any person, partnership, or corporation judged by a Florida court to have suffered monetary damages as a result of an act committed by a broker or sales associate who:
1. was at the time the act was committed, the holder of a valid real estate licnese
2.was not the seller,buyer, landlord, tenant, officer or director of a corporation, member of partnerships
3. was acting solely in the capacity of a real estate licensee in the transaction
-payments in claims arising out of the same transaction are limited to $50,000
-payments for claims based on judgments against one broker or associate may not exceed $150,000
-licensee's license is suspended and not restored until licensee repays amount in full
Concealment
withholding of info or a material fact
Culpable Negligence
Guilty of failing to use the care a reasonable person would exercise
Misrepresentation
an untrue statement of fact
moral turpitude
conduct contrary to honesty, good morals, justice, or accepted custom
could be embezzlement, crimes of larceny, bad checks
1. The probable cause panel includes
A. a total of two members
B. at least one professional member
C. at least one current member
D. all of the above
D.
2. a person is eligible to seek recovery from the Real Estate Recovery Fund if
A. he or she has received a final judgment against a licensee in any action wherein the cause of action was based on real estate brokerage transaction, unless specifically precluded
B. he or she is a licensed real estate broker who acted as the agent in the transaction that is subject in the claim
C.his or her claim is based on a real estate transaction in which the broker did not hold a current, valid, and active license at the time of the transaction
D. all of the above
A.
3. The decision as to whether probable cause exists is made by a majority vote of the
A. commission
B. commission of the department, as appropriate
C. administrative law judges
D. probable cause panel (or department if there is no panel)
D.
4. which action would cause a license to be revoked without prejudice?
A. a licensee accepted an earnest money deposit on a property that he knew was encumbered by an undisclosed lien
B. the broker obtained his license by means of fraud, misrepresentation, or concealment
C. a sales associate received her license as a result of an administrative error by the DRE
D. for the referral of real estate business a licensee shared a commission with a person (not party to the transaction) who did not have a real estate license
C.
5. which offense is a misdemeanor of the second degree?
A. failing to provide current and accurate rental info for a fee
B. publishing false or misleading information to induce a buyer to buy real property
C.unlawfully collecting an advance fee for listing real property
D.all of the violations are misdemeanors of the second degree
D.
6. who prepares and submits a recommended order of findings and conclusions in a complaint case?
A.court of law
B. administrative law judge
C.probable cause panel
D. the DBPR
B.
7. Any final order issued by the DBPR Secretary or a legally appointed designee that results from circumstances that pose an immediate danger to the public's health , safety, or welfare is called a
A.petition for review
B.stay of enforcement
C.summary suspension
D. license revocation
C.
8. Broker Jack of Farm Acres Realty listed a 15 acre farm. Jack accepted a $5000 earnest money deposit from the buyer. However, the buyer was unable to secure financing and requested the funds be returned according to the terms of the contract. Jack was unable to reimburse the buyer because he used the money to pay his office rent and overhead. Jack is guilty of
A. dishonest dealing by trick, scheme, or devise
B. failure to account for and deliver
C. fraud
D. culpable negligence
B.
9. The DBPR is authorized to investigate a written complaint filed against a licensee
A. if the alleged complaint is legally sufficient
B. only if the claimant has been harmed by the actions of the licensee
C. only if the alleged violation was committed in the state of florida
D. only if all of the above conditions have been met
A.
10. Neglecting to correct omissions or errors on a license application returned by the DBPR to the applicant for correction is considered grounds for
A. suspension of the applicant's rights
B. denial of the application
C. revocation of the application
D. administrative revocation
B
11. If a broker's license is suspended, the licenses of all sales associates working for that broker are
A. placed in involuntarily inactive status
B. denied
C.suspended
D.revoked
A.
12. One of the grounds for the suspension or revocation of a licensee's license is the unauthorized use or retention of money or property, otherwise known as
A. concealment
B.conversion
C.culpable negligence
D. commingling
B
13. Less than careful attention to duties, one of the grounds for suspension or revocation of a licensee's license, is otherwise called
A. concealment
B. conversion
C.culpable negligence
D.commingling
C
14. When a payment from the Real Estate Recovery Fund is made to satisfy a claim against a licensee because the licensee did not comply with an escrow disbursement order, the Commission's action against the licensee must be
A. citation
B. probation
C. automatic suspension
D. emergency suspension
C
15. Which type of penalties may be imposed for violations of the real estate license law?
A. civil penalties only
B.administrative penalties only
C. civil and administrative penalties only
D. criminal, civil, and administrative penalties
D.
16. When a licensee is found guilty of violation of 475, F.S., the FREC may impose any of the following disciplinary penalties EXCEPT
A. imprisonment
B. probation
C. an administrative fine
D. denial of a license application
A
17. One penalty that the Commission may not legally levy is to
A. deny the issuance of a license
B. deny the payment of compensation
C. suspend a license
D. revoke a license
B
18. The collective amount to be paid from the Real Estate Recovery Fund as a result of any one real estate transaction may not exceed
A. $25,000
B.$50,000
C. $75,000
D. $150,000
B.
Civil Rights Act of 1866
prohibits any type of discrimination based on race in any real estate transaction without exception
Fair Housing Act
created protected classes of people and prohibits discrimination when selling or renting certain residential property when based on the following:
-race, color, religion, sex, national origin, familial status, handicap status

Covers two categories of housing:
1. single family houses
-residential property that is not privately owned
-privately owned residential property if a real estate licensee is employed to sell or rent the property
-residential property owned by a person who owns four or more residential units in total
-residential property when the owner, during the immediate past 2 year period, sells two or more houses in which the owner was not a resident
2.multifamily housing
-dwellings of five or more units
-dwellings of four or fewer units if the owner does not reside in any of the units
Exemptions to the Fair Housing Act
-religious organizations may restrict dwelling units they own or operate to members of their religion if the organization does not otherwise discriminate in accepting its membership
-private clubs may restrict rental or occupancy of its units to its members
Steering
channel protected class homeseekers away from areas that are not mixed with that class into areas that are
Blockbusting
To use entry, or rumor of entry, of a protected class into a neighborhood to persuade owners to sell.
Redlining
deny loans or insurance coverage by a lender or insurer that present different terms or conditions for a home in certain neighborhoods
Fair Housing Poster
Provided by Department of Housing and Urban Development (HUD). Must be displayed in all real estate offices. Failure to display the poster may be considered evidence of discrimination in the event a discrimination complaint is made against the broker
Americans with Disabilities Act of 1990
A law passed in 1990 that requires employers and public facilities to make "reasonable accommodations" for people with disabilities. requires that multifamily dwellings be designed and constructed so that portions of the dwelling are readily accessible to and usable by persons with disabilities
Interstate Land Sales Full Disclosure Act
developers are not permitted to sell or lease lots in subdivisions of 100 or more lots unless they have filed a Statement of Record and registered the subdivision with the HUD. info concerning the land, physical characteristics, condition of title, and identification of owners must be provided. Each purchaser must be furnished a property report containing items from the Statement of Record before signing a purchase contract or lease
Truth in Lending Act
informs consumers of exact credit costs before they make a purchase so they may compare various credit terms and costs
-advertising of credit associated with real estate purchase under supervision of the Federal Trade Commission
-implemented by Federal Reserve Regulation Z
-Regulation Z applies to credit associated with residential mortgage homes
What are triggering terms?
if creditors include in advertisements triggering terms, additional info must be included. Trigger terms include the
-amount or percentage of any down payment
-number of payments
-period of repayment
-amount of any payment
-amount of any finance charge
If there are trigger terms, ads must also disclose the following:
-amount or percentage of any down payment
-terms of repayment
-annual percentage rate, and if the rate may be increased in the future
Equal Credit Opportunity Act
ensures that the financial institutions and firms engaged in extending credit will make credit available with fairness and without discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or receipt of income from public assistance programs
Real Estate Settlement Procedures Act (RESPA)
was enacted to ensure that buyers are informed regarding the amount and type of charges that they will pay at closing
Uniform Settlement Statement
lists all of the costs and fees to be paid at the closing. must be delivered to the borrower at or before closing. If requested by the borrower, the closing agent must allow the borrower to examine the costs included on the settlement statement, to the extent that they are known, one full business day before the closing
borrower's special information booklet
lenders are required to give this to borrowers at the time of loan application or within 3 business days. It explains costs related to real estate settlements
Kickbacks or referral fees
no person may give or accept
-any fee, kickback, or thing of value in exchange for business referrals relating to a real estate transaction
-any portion, split, or percentage of charges made for rendering a service, unless the service was actually performed and all affected parties were fully informed
Florida Uniform Land Sales Practices Act
Created the Division of Land Sales, Condomininiums, and Mobile Homes to investigate and regulate the sale of subdivided lands. Subdivided refers to land divided into 50 or more lots, parcels, units, or interests. The purchaser has the right to cancel the agreement within 7 business days after signing it
Florida's Little FTC Act
RESPA and HUD require that licensees disclose in writing to buyers before the buyer signs the purchase agreement that, on closing the sale, additional costs may be required of the buyer. firms dont have to list brokerage commission, advance hazard insurance costs, or escrow items such as taxes and insurance
Florida Residential Landlord and Tenant Act
Provide equal protection under the law for both landlords and tenants. Deals with non-residential tenancies, residential tenancies, and self storage.
-18 year old is entitled to enter into a rental agreement
Deposits and advance rents
landlord is obligated to:
-hold the money in a separate noninterest bearing fl bank and not commingle, hypothecate (pledge as security for a debt), or use any such funds until due to the tenant
-hold the money in a separate interest bearing fl bank and pay the tenant at least 75 percent of any annualized average interest rate or 5 percent per year simple interest, and not commingle, hypothecate, or use any such funds until due to the tenant
-post a surety bond with the clerk of the circuit court in the county in which the rental property is located in the total amount of the security deposits and advance rents or $50,000, whichever is less, and pay the tenant 5 percent per year simple interest
-must inform tenants in writing, within 30 days from the receipt of advance rent or security deposit, the manner in which the tenant's funds are being held
Landlord's Obligation to maintain Premises
-maintain the rented dwelling unit in a condition that meets all building, housing, and health codes in a community
-provide exterminating services
-provide garbage receptacles and pickup
-provide working equipment for heat plus running hot water
Tenant's obligations
-maintain the rented premises by complying with existing building, housing, and health codes
-maintain the interior plumbing fixtures in a clean and sanitary condition
-use reasonable care in the operation of all plumbing, electrical, heating, and ac equipment
-conduct self and make sure guests behave so as not to disturb the peace of other tenants
Landlord's access to premises
landlord may
-inspect the premises
-make necessary and agreed on repairs, decorations, alterations, or improvements
-supply agreed on services
-exhibit or show premises

-in case of emergency or when necessary to protect or preserve the premises, landlord is entitled to enter a dwelling at any time
vacating premises
-landlord has 15 days to return the security deposit
-landlord has 30 days to notify the tenant of intentions to impose a claim on the deposit

-notification must be in writing and be sent by certified mail to the tenants mailing address
-if a tenant is properly notified of the landlord's claim on the security deposit, the tenant is allowed 15 days after receipt of notice to file an objection
Termination of Rental Agreements by the Tenant
-tenant must first give written notice to the landlord citing the noncompliance and stating the intent to cancel the agreement if the noncompliance is not corrected
-thereafter, the landlord has 7 days to correct the noncompliance and resolve the problem
-if noncompliance is not corrected within 7 days after the delivery of the tenants compliant to the landlord, the tenant is entitled to terminate the agreement

rent may be reduced by a court

if the dwelling is rendered uninhabitable, owing to the landlords failure, the tenant may not be liable for the rent during the period the premises remain untenable, if the court agrees with the tenants assertions
Termination of the Rental Agreement by the landlord:
-the landlord must give the tenant written notice demanding either the payment of rent within 3 business days or possession of the premises. written notice can be mailed, personally delivered, or attached to door or dwelling
-tenant has 3 days to either pay rent or surrender the premises
-if tenant vacates the rented premises, landlord then is required to give tenant written notice by mail of any claim on security deposit or advance rent
Eviction requirements
1. Notification must be given to tenant in writing demanding possession of premises.
2. If tenant does not surrender possession three days after notification, landlord must file a complaint for eviction.
3. Tenant is allowed five days to file a reply.
4. If tenant stays without answering, the landlord must obtain a final judgment from the court.
5. After obtaining the judgment in favor of the landlord, the sheriff is given a writ to obtain the premises for the landlord 24 hours after posting.
6. After the execution of the writ of possession, landlord may remove personal property from the premises
1. The federal statute that prohibits a private homeowner from discriminating strictly on the basis of race if selling, renting, or leasing is the
A. 1968 Fair Housing Act.
B. 1866 Civil Rights Act.
C. 1934 National Housing Act.
D. 1968 Interstate Land Sales Full Disclosure Act.
A.
2. The law that requires lenders disclose the APR of interest is the
A. RESPA
B. Federal Housing Act
C. Florida Deceptive and Unfair Trade Practices Act (Little FTC)
D. Consumer Credit Protection Act (Truth in Lending)
D.
3. The federal 1968 Fair Housing Act as amended prohibits discrimination based on
A. race, color, religion, sex, national origin, familial status, or handicap status.
B. race or age.
C. religion, age, race, familial status, or handicap status.
D. race, color, religion, age, or national origin.
A.
4. The Truth in Lending Act
A. does not affect real estate financing credit
B. attempts to regulate maximum interest rates charged consumers
C.requires disclosure of finance charges as well as APR of interest
D. accomplishes all of the above
C
5. the real estate settlement procedures act (RESPA) was enacted to
A. establish a max cost for all closing terms
B.ensure that sellers are informed regarding the amount and type of expenses expected at closing
C. ensure that buyers are informed regarding the amount and types of expenses to be expected at closing
D. establish a minimum cost for all closing items
C
6. If requested by the borrower, and to the extent that info is available to the closing agent, the borrower must be provided with which of the following at least one day before closing?
A. uniform settlement statement
B. borrower's special information booklet
C.guaranteed amount of settlement costs
D. notice of title closing agent selection
A
7. As part of the preparation for closing, a listing broker referred a property owner to an appraiser. The appraiser completed the appraisal and charged the owner $250, which was entered on the RESPA settlement statement. The appraiser gave the listing broker $50 for the referral, which the broker accepted. According to RESPA
A. the listing broker also must be licensed as an appraiser
B. the appraiser has not violated the law as long as he or she is state certified
C. both the broker and appraiser have violated the law
D. the arrangement is entirely legal
C.
8. Which transaction is exempt from RESPA requirements?
A. the sale of a house where the only financing is assumption of an existing loan
B. a construction loan that will become a permanent loan only after the building is completed
C. a loan to purchase a new house in a new subdivision
D. an adjustable rate mortgage loan to purchase a five year old residence
A.
9. the intent of the Florida Landlord and Tenant Act
A. give the tenant a legal advantage in his or her relationship with the landlord
B. make the landlord tenant relationship more equitable
C. provide landlords the legal assistance needed to create an advantageous relationship
D. regulate residential and commercial rental property
B.
10. when security deposits or advance rents are required by a landlord in Florida, such funds
A. must always be kept in a separate account
B. may be deposited in the landlord's account if he or she posts a $50,000 surety bond
C. must always be placed in an interest bearing account
A.
11. The sales associates in a real estate office have been instructed to send all of their spanish speaking prospects to a new subdivision "beautifully designed with a Spanish flavor" this is an example of
A. steering
B.subordination
C.alienation
D.blockusting
A.
12.A landlord who rents a duplex to two tenants is obligated to provide
A. pest extermination service
B. garbage pickup service
C. garbage receptacles
D. all of the above unless waived in the rental agreement
D
13. which disclosure requirement is required to be given to tenants in multifamily buildings of five or more units?
A. no brokerage relationship
B. notice of where deposits is held within 30 days
C. 15 day cancellation priviledge
D. transaction broker notice
B
14. If a tenant vacates rented premises promptly when a lease or tenancy expires, the landlord must
A. inform the tenant within 45 days if the landlord claims part of the security deposit
B. return the tenant's security deposit within 30 days or explain any exception
C. inform the tenant within 25 days if part of the tenant's deposit will not be claimed
D. inform the tenant within 30 days if part of the tenant's deposit will be claimed
D.
15. A tenant is obligated to
A. ensure that his or her guests do not disturb the peace
B. be reasonable in operating AC equipment
C.maintain interior plumbing in a clean and sanitary way
D.do all of the above
D.
16. If a tenant's rent is current and he or she notifies the landlord of an intended absence, the landlord
A. may not enter the tenant's rented premises without the tenant's consent except in an emergency
B. may enter only if accompanied by a second party
C. may enter without any restriction
D. may not enter the tenant's rented premises without first obtaining a sheriff's affidavit
A
17. how long does a landlord have to correct a noncompliance that is brought to his or her attention by written notice from a tenant?
A. 7 days
B. 10 days
C. 2 weeks
D. 30 days
A.
18. a landlord must follow designated procedures for evicting a tenant. The first step in a legal eviction is to
A. personally deliver written notice demanding posession
B. notify the tenant by mail of the landlord's demand for posession
C. attach a notice to the door of the premises that posession of the premises is demanded
D. do any of the above
D
19.the law that requires that lenders furnish borrowers with a good faith estimate of closing costs is the
A.truth in lending act
B. real estate settlement procedures act
C.consumer credit protection act
D.fair housing and lending act
B
20. which phrase may legally be included in an advertisement to sell real estate?
A. cute cottage home, perfect for first time buyers
B. beautiful neighborhood rich with ethnic heritage
C. spanish speaking community
D.quiet neighborhood, no young children please
A.
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