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Q&A cram exam 3

Terms in this set (95)

Sales associate, Tim, recieved a signed contract from a buyer and mailed it to the seller. The seller agreed to the terms and the escrow deposits was deposited safely in the brokers escrow account. Tim has a disagreement with his broker and quits. The broker refuses to pay a commission since Tim was not in their employ when the contract was actually received and signed. What should tim do?
Sue the broker
Who is the principal, or the employer?
The one who engages the broker in a single agency relationship
Homeowner Owen signed an exclusive right of sale listing with Bob, a registered broker. The listing states that bob is employed to find a purchaser and that Owen agrees to pay a 10% commission to Bob or any person, or partnership, corporation, or firm that sells the property. The remainder of the listing deals with the terms and conditions of the sale and duration of the listing. While Owen was away on vacation. Percy made a written offer to purchase the property at the listed price, terms, and conditions. Bob, on behalf of owner Owen, accepted Percy's offer and signed it for Owen. Which statement is correct?
The listing did not give Bob the right to obligate Owen to Percy's offer
Sales associate John attends a cocktail party with his friend Bill, where he introduces Bill to another friend, Jack. It turns out that Jack has a house for sale, and Bill agrees to purchase it. Sales associate John makes it clear that he wants no commission, but Johns broker demands a commission. Which statement is correct?
The broker is not entitled to a commission
A broker, while looking for a deal for his best friend, gets a listing. The seller must sell because of a family emergency. What should the broker say to his best friend?
Say nothing about the seller, and ask the buyer to make an offer
If an oral offer is made to a broker on a property the broker has listed, what should be the brokers response?
Submit the offer to the seller
If a broker is aware of a construction lien on a piece of property, what should they do?
Tell the buyer before going to contract
A broker lists a property for $30,000. The broker learns of a new development that will be built beside the listed property. The broker purchases the property from the seller for the full listed price and discloses the fact that he is a licensed broker. The broker then sells the property to the developer for $50,000. Which statement is correct?
The broker is guilty of concealment
Which township is immediately west of T1N, R1E?
T1N, R1W
John Smith is the broker of ABC Realty. He is preparing to open a branch office. All of the following items are required on the branch office sign, EXCEPT;
Branch office
Broker Jones takes a listing on a condominium from Mr. Charles. Mr. Charles notifies Jones that the roof leaks. Jones negotiates the sale of the condominium to Smith without disclosing the leak. Smith a year later, sells the condominium for a profit. Which statement applies?
The broker could be disciplined for concealment
Which of the following limits the actions of brokers?
Law of agency
To help his customers sell their property a mortgage broker agrees to hold an open house and prepares to offer to purchase on a standard contract for a fee of $250. Which statement is correct?
He is guilty of a third degree felony
A brokers principal is away on vacation. The broker receives an offer of $75,000 for his principals property. Before the principal returns, the broker receives a second offer of $72,000. What should the broker do?
Submit both offers to the principal
Broker brown lists smiths property for $20,000. Broker brown hears from a friend on the planning commission that they are intending to put a highway right next to Mr. Smiths property, making his lot a corner lot. He tells another friend about what he has hears, and the friend buys the property for $20,000. Which statement is correct?
Broker browns license may be suspended for not telling smith
A seller lists a property at $75,000 but tells the broker he will go as low as $72,000. Which statement is correct?
The broker cannot tell the buyer of the lower price
Complete the sentence. A fiduciary relationship is one of;
Trust and confidence when accepted
Can a broker be entitled to two commissions when consummating an exchange?
Yes, providing both parties are advised and approve
A seller listed their property at a price that the broker knew was below market value. The broker had his wife buy the property in her maiden name and subsequently resold the property at a profit. What could the broker be charged with?
Concealment and fraud
In a real estate transaction, what type of relationship can a buyer and seller expect to have?
An arms length relationship
What is a licensee with full representation to both parties in the same transaction referred to as?
Dual agent
Which of the following documents not only recommends that the principal sign it, but requires it?
Transaction broker
Which term refers to the misstatement, omission, or concealment of a factual matter?
Misrepresentation
An Illinois corporation is transferring its employees to Florida. The firm retained a Florida broker to find homes for its employees. The attorney representing the Illinois corporation, notifies the Florida broker that in the state of Illinois, an attorney is recognized as a real estate broker. Therefore, the attorney wants a referral fee. What should the illinois attorney do?
Expect to receive a referral fee because he is recognized as a broker in Illinois
A licensed broker and one of their employed sales associates purchase a parcel of real estate together. What relationship have they formed?
A joint venture
When moving from one branch office to another, what must a broker do?
Apply for and obtain a new registration for the new branch and pay the proper fee
Broker A and Broker B are working exclusively for one developer on adjoining projects. They agree to hire a sales associate between them for half a week each. The sales associate:
Cannot have two registered employees
Unless exempt, performing a service of real estate for someone else for compensation in Florida without an active license is considered to be which of the following criminal violations?
Felony of the third degree
Broker Davis, Broker Ben, and Broker Boone form a partnership. The partnership buys, develops, and sells land. Sales associate Jerry becomes an equal partner in the firm. A sale is made, resulting in a $40,000 profit. Which statement is correct?
The profits may be divided equally
Six brothers wish to become partners in a real estate agency and each be active in real estate sales. What is required?
That they all be licensed as active brokers
Broker Rick sold Janey a rental list on March 8 for $100.00. Janey inspected all the properties and found them to be occupied. On April 6, Janey demands a refund. What action should broker Rick take?
Refund $100 immediately
A discount broker has opened an office in town. Two sales associates from full price, full service offices agree to not show the discount broker listings. This practice is:
Illegal because it constitutes price fixing among the sales associates
All of the following are required to be displayed at a brokers office, EXCEPT;
Copies of each sales associates license
Which is the best definition for "escrow"?
Holding something for someone else in trust
Unless there is a reasonable benefit for the borrower, the Florida Fair Lending Act prohibits a lender from refinancing the same borrower within how many months?
18
Buyer Smith gave a postdated check to sales associate Brown that the seller accepted. Smith told Brown to hold the check for two weeks until he (the buyer) could fly to New York and transfer the funds from a savings account. On the date Brown recieved the postdated check, the broker was out of town, but returned the following day. Following the buyers instructions. Brown deposited the postdated check into the brokers escrow account two weeks later. Sales associate brown:
Should have turned over the postdated check to the broker the next business day
What should a new sales associate expect his broker to provide?
Training
In the complaint process, if there is no dispute over material facts, how may the case be resolved?
An informal proceeding
A broker from Tampa sells a property listed by a Miami broker. At closing the Miami broker refuses to pay the Tampa broker's share of the commission. Charges are filed by FREC against the Miami broker for failure to account. The Commission has the Miami broker subpeonaed, but the broker fails to appear. The Miami broker:
May be fined for contempt of court, could have license revoked by FREC
A broker has shown by their actions that they are an immediate danger to the public. What can be done?
The Secretary of the DBPR can issue a summary suspension
A broker has been found guilty of mail fraud by a court and sent to jail. The brokers license will:
Probably be revoked because of this conviction
What is the maximum allowable payment from the recovery fund for any financial losses suffered due to a licensees acts?
$50,000 per transaction, with a maximum of $150,000 for multiple transactions
Which court is the final court in the appeal process?
Florida Supreme Court
A violation of FS 485 can result in any of the following actions, EXCEPT;
A fine of $10,000 per offense?
If a licensee violates F.S. 475, the commission is allowed to impose any of the following penalties EXCEPT;
Fine the licensee $10,000
If FREC imposed a fine and issued a final order, how much longer does the licensee have to pay the fine?
30 days
A sales associate has a fight with a seller and hits the seller on the head with a canoe paddle. What penalty with the Commission administer on the sales associate?
None, since assault and battery is not a violation of F.S. 475
A broker who has been charged with a minor violation where no threat to the safety of the public exists, will probably have taken which action?
License suspension
What is the maximum administrative fine for a violation of F.S. 475?
5,000
A licensee becomes a convicted felon serving a prison term. The Commission.
Could revoke the license
A broker is sued for misrepresentation. The court awards the buyer $100,000 in damages. What kind of penalty is this?
Civil
What is the maximum time the licensee can be suspended on the first offense?
10 years
A licensee files a false affidavit to make a claim against a property. How is this criminal action classified?
Second degree misdemeanor
A person being investigated by the Department of Business and Professional Regulation must be notified in all of the following situations EXCEPT;
The act that is under investigation is a criminal offense
Broker Smith, in selling building lots, offers each buyer the opportunity to purchase, for $5.00, a chance in a lottery in which (if 20 lots are sold by the end of the week) the winner would be entitled to one - half off the price of his lot. At the end of the week, only 16 lots were sold, so Smith decided to return the entrants $5.000. Which statement is true?
Smith is in violation because he conducted a device, lottery, scheme, or trick
In pursuit of an unpaid commission, a broker hires an attorney to attempt to obtain a judgement lien against the seller. In the course of the action, and on the advice of the attorney, the broker filed a lis pendens against the sellers property. What action may be taken against the broker?
The brokers license may be suspended or revoked
A broker has a Texas securities license as well as a Florida real estate license. The broker commits fraud on securities transaction in Texas and agrees to make full restitution. Most likely the broker will:
Have the Florida brokers license revoked or suspended
Broker smith owns a Real Estate Brokerage Corporation. When filing his tax return, he forgets to include a referral fee, received from a Georgia broker. What will the Commission most likely do?
Take no action if Smith files an amended return with the IRS and pays any penalties involved
A buyer enters a brokers office and requests to be shown only houses in black neighborhoods. The broker advises the buyer that he will show him houses without regard to the racial characteristics of the neighborhood. The broker shows the buyer houses in both predominantly black and predominately white neighborhoods. The buyer is interested in two of the houses in the predominately black neighborhoods. If the broker had followed the buyers initial instructions, he would;
Have violated the civil rights act and florida law could have his license suspended or revoked
A seller refuses to accept an offer submitted by a broker on behalf of a buyer. The offer meets the terms of the listing contract. To what is the listing broker entitled?
100% of the full commission
What is the purpose of the Real Estate Settlement Procedures Act RESPA?
To ensure that buyers are informed about the amount and type of charges they will expect to pay at closing
Which phrase would be legal to use in advertising property?
None of the above
A methodist church owns a nursing home for its members. They refuse to admit anyone to their home who is not a member of their church. This is;
Not a violation of the Fair Housing Act
Mrs. Murphy is a struggling small investor who owns a boarding house and rents rooms to tenants. Which statement is correct?
She may refuse to rent to any tenant that she feels would be incompatible with existing boarders.
A private club has a lodge in the mountains. The club refuses to rent rooms in the lodge to certain minority groups. Which statement applies?
Under the Fair Housing Act, they may restrict rentals to members of their own club
All of the following are exempt from RESPA requirements, EXCEPT
A loan to purchase a new home in a subdivision
Who is exempt from provision of the Fair Housing Act of 1968?
Homeowners who are selling their only single family home as a FSBO
Which entity published regulation Z?
Board of Governors of the Federal Reserve
A tenant is two months delinquent on the rent. What is the first step available to the landlord to remedy the situation?
Post a three day notice to pay the rent or vacate
A broker can legally show homes based upon which requests?
Retirement community
A hispanic buyer asks to see a home in a certain price range. What should a licensee show him?
Available homes in his price range, regardless of area
Widow McFee found that her deceased husband left his entire estate, except for homestead, to his secretary. What can Widow McFee do?
File for an elective share of 30% of all real and personal property
Mr. Reynolds inspects a piece of property. He notes a pile of fencing in the yard but has not gotten around to doing it yet. When Mr. Reynolds buys the house and takes occupancy, he finds that the fencing has not been installed and has been removed. Mr. Reynolds consults his lawyer who advises him that:
Since it was not yet installed, it is personal property and the seller had the right to remove it
Which tenancy exists when a tenant remains in possession of a property after the termination of the lease without the landlord's agreement?
Tenancy at sufferance
What does personal property that is permanently attached to the land become?
A fixture
Which type of estate is the most comprehensive
Fee simple estate
What would a developer do to help a development holds its value?
File subdivision restrictive covenants
Which type of estate refers to the lessors interest in leased property?
Protection from a prior judgement
What is the name of the gradual buildup of sand on the riparian or littoral owners shoreline by natural causes?
Accretion
If two or more persons have an undivided interest in real property, which estate cannot be created unless specific wording in the deed provides for the right of survivorship?
Joint tenancy
Which type of interest in real property is created by a type of contractual agreement having all essential elements of a contract, plus a property description and a definite term of tenancy?
Leasehold
Jim, Matt, and Jack were co-owners of a parcel of real property. Matt died, and his co-ownership passed according to his will to become part of his estate. What type of tenancy did Matt have?
Tenancy in common
Which estate would NOT convey legal title?
Estate for years
Which estate or tenancy shows an ownership interest in land?
Tenancy in common
Which statement accurately describes an owners title insurance policy?
It guarantees against all defects an encumbrances to which no exception has been taken
Which type of deed warrants title only against claims made by the grantor, their heirs, assignees, executors, administrators, or others who represent them?
Special warranty deed
What type of easement must be obtained when a utility company wants to put power line poles through a property?
In gross
The neighbors have used Farmer Jones "ruts" (easement by necessity) for over 20 consecutive years. It may now be considered an:
Easement by prescription
Complete the statement. A deed must be acknowledged (notarized):
To make it recordable
If an unrecorded deed is accidentally destroyed, who owns the property?
Grantee
Under the laws of eminent domain, for what does an individual have the right for reimbursement?
Fair market value
Complete the statement to make it correct. An easement in the legal right of use:
Of another persons property for a specific purpose
Which of the following clauses in a deed names the parties, describes the property,
Granting clause
Where do special assessment liens on a property rank in priority of payment?
Ahed of private liens
Which of the following is essential for a deed to be valid?
Signed by the grantor and/ or grantors
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