Which of the statements listed below regarding the earnest money deposit (emd) is correct?

A city acquires a 10-foot strip of a property owner's land for a public walking trail. The owner's home is not affected and she is able to use the land. Is the homeowner eligible for compensation?

Yes, because the city is using its power of eminent domain for public good.

Broker Bill takes his Broker course and passes it. He applies and gets his license on time. He pays all his fees and begins to work. ( He does not have a 4 year degree in real estate ). He does not know what course to take to renew his license for the 1st time. What must Broker Bill do?

60 hour post license course

Government group charged with the record keeping services of real estate?

The Florida Real Estate Commission (FREC) was organized in 1926. It has 7 members who are appointed by the Governor and approved by the Senate. It's primary purpose is:

protect the general public, (provide licensing requirements for broker and sales)

A broker price opinion is often requested

The city is replacing all the streets, curbs, and gutters in Middleville. The homeowners on both sides of the street are charged special assessment taxes to cover the cost. Mr. Kyle has a 120-front-foot lot. The cost of the construction is $90 per front foot for each affected homeowner, and the city will pay 25% of the cost. How much will the cost be to Mr. Kyle in special assessment taxation?

Repairing the roof, recoating the driveways, replacing lighting, and cleaning out the gutters on an apartment building are considered by the property manager and the owner to be part of the job. This is considered:

Proper Maintenance and is required

A broker from Nebraska wants a license in Florida. He takes a written exam of 40 questions and passes 35 of them. The broker has taken advantage of the written agreements between the states for real estate licensing. This is an example of:

A mutual recognition agreement between the states of Florida and Nebraska, created for real estate licensing.

non federal or charted banks who broker or lend for mortgages must be registered with

The Florida Department of Agriculture

The Florida Real Estate Commission (FREC) was first organized in 1926. It is composed of 7 members who are appointed by the Governor and approved by the Senate. Its primary purpose for being in existence is to:Term

A legal description of a piece of real property should be complete enough so that a reasonably competent:

Steve is interested in learning how to be a single agent business broker. He needs to know the steps in selling a business. All are steps in a business sale EXCEPTTerm

Represent the buyer and obtain a purchase agreement.

john is considering purchasing a commercial building. His accountant is working with him to determine the property’s value to John. The initial cost of an investment property plus the cost of any additional improvements less qualified deductions represents the:

Jim Jones, the landlord, rents a property to Tom Smith, a physically disabled person. Mr. Smith, with Mr. Jones' permission, modifies the house to suit his needs. When the lease expires, Mr. Smith will NOT be required to:

Restore the wide doorways that were installed for his wheelchair to their original size.

In what section of a Closing Disclosure would you find information regarding the loan term, purpose of the loan, product type, loan type and loan ID number?

A very important person bought a home at Lake Geneva, WI. He purchased a home and in the mortgage he also included the boat, boat dock, and boat house. What type of mortgage did this important person have?

Justin is an unlicensed person and he has been appointed a trustee of a special needs trust for his nephew. The trust will be funded by the sale of the property of his brother. Justin lists, sells, and puts the money into the trust as he is required to do. What best describes this situation?

Justin cannot take any money for selling the property since this would be compensation and he would need a license to do this.

The Federal Housing Administration (FHA) insures loans for lenders of real property. Which statement about FHA loans is FALSE?

The buyer does not have to make a down payment.

A notice of noncompliance may be issued for a first-time minor offense or a minor violation. Who can issue this notice?

A developer is considering building a community for senior citizens. He sets up a building that is occupied only by tenants 62 years or older. He designs community areas with barrier-free access and he advertises to older people in retirement magazines. A niece of one of the owners requests permission to move in with her two children and live with her aunt in the building. The homeowners and the developers refuse to let her move in. Are they justified in doing this?

The developer may discriminate against the children and their mother because senior housing is exempt under Federal Fair Housing when certain conditions have been met.

Local governments promote health, safety and general welfare by establishing:

Hypothecation most nearly means the:

property is pledged as collateral for the loan if the buyer defaults. pg 270

The buyer of an industrial complex wants the broker to place the earnest money in an interest bearing account. The broker does this, clearly identifying all parties who are to receive the interest and the date the earned interest is to be disbursed. With only the verbal consent of the buyer, he places the money in an insured account in a depository in Florida. When the time comes to disburse the account, the broker will write a check to the buyer for the interest as the buyer agreed. Which statement describing this situation applies?

The broker is able to follow the buyer's instruction and has complied with Florida law.

The federal government allows a homeowner certain deductions when filing the long form for income tax. Which is not an allowable deduction?

Hazard insurance premiums

Neighbors have gotten into a quarrel over a big black walnut tree that sits on Mr. Jones' property. The tree's limbs extend over to Mr. Simpson's property, and the fruit from the tree falls everywhere, leaving a big mess. Mr. Simpson wants the limbs removed from his property. Does he have a legal reason to want this done?

Yes. The tree is legally invading Mr. Simpson’s air space and is an encumbrance on the property.

A prospective buyer submits an offer to purchase a home for $256,000. The seller changes the price to $260,000, initials the change, signs the offer and sends it back to the purchaser. What has occurred here?

The seller has rejected the initial offer and has become the offeror of a counter offer.

A listing contract that spells out terms and conditions for the seller and broker is what type of agency agreement?

Written or expressed agency agreement

A fully amortized loan has a 360 month payment schedule with principal and interest payments of $2588 each month. The amortization of this loan will pay off the loan in:
Term

At a listing appointment, the seller of a large, expensive home on the water gives specific instruction to the sales associate not to show the home to anyone from a certain protected class. The sales associate tells the seller this is a clear act of discrimination, but the property owner insists. The sales associate shouldTerm

What is the major difference between acquiring title by voluntary alienation compared to involuntary alienation?

Voluntary alienation means that the grantor is involved in the transfer; in involuntary alienation the grantor is either not involved or it is against his wishes.

Richard and Katherine are man and wife. They own a house in tenancy by the entirety in the Florida Keys and live there all year. One day Katherine comes home to find that Richard has sold the house without her knowledge or consent. Richard says he is entitled to do this since this is the way they own the property. Which statement about tenancy by the entirety is not true?

Tenancy by the entireties allows for each person to be able to sell his/her interest independent of the other.

Which side of the Tallahassee Principal Meridian is Range 1E? Term

Peter held a sales associate's license. He renewed his license by completing the post-licensure class on time, but he filled out the renewal form fraudulently. He was discovered by the FREC and his license was revoked. Can Peter ever apply for a real estate license again?

Peter can apply for the license after this renewal period, but he is not likely to receive it.

The FREC’s authority to impose disciplinary actions on licensees is part of its

A 150-year-old 3-story mansion in the center of town was up for sale. The home has one bathroom on the first floor and wide columns that cannot be removed in the living and dining rooms. The appraiser depreciated the value of the home based on:

The appraiser was looking at three different homes to compare to the subject house. House A had one more bedroom and a screened-in porch compared to the subject house; House B had two fireplaces where the subject house had one; and House C had a three-car garage when the subject house only had a two-car garage. In order to reconcile these properties to the subject house, what must the appraiser do?

The appraiser will subtract from Houses A, B, and C to get the subject value.

Emma, a 70-year-old widow living alone, has a fixed income of $11,000 per year from social security. If the local option homestead relief exemption exists in Emma's county of residence, Emma may be entitled to:

A Homestead exemption of $25,000, which is a standard deduction.

The Equal Credit Opportunity Act requires lenders to make consumer loans without regard to all except:

A large piece of ground is developed with lights, streets, and sewers. The subdivider wants to get it ready for building. He does an environmental impact statement and makes a large map which shows where each lot and block is located. Streets, parks, and utility easement are also shown. This is visual representation is called:

A nonresident licensee retires from his job in St. Louis and moves to Florida to begin work as a real estate broker. He has had his nonresident license for several years and has completed all the requirements to maintain his license. He has renewed his license appropriately. What must he do first to begin work in Florida?

He must begin by notifying the FREC that he has moved to Florida within 60 days of the change.

A grantor may use any number of deeds to convey (transfer) property from one person to another. The importance of each type of deed is the type of promises made from the grantor to the grantee. The highest and best deed for the grantee is:

Ted, Will, Mike, and Tom own a 20-room home as tenants in common. Mike and Tom, two of the owners, decide to sell to two new owners, Larry and Joe. Can this be legally done?

Yes, because each co-owner has a separate title to the undivided interest.

Berry, the seller, wants Paul, the broker, to change from a single agency relationship to a transaction broker. Paul agrees to do this as long as the transition disclosure is made in writing so that all parties understand what is happening. Paul needs to transition to a transaction broker:

Before the listing agreement is signed.

To be a fixed-rate, fully amortized loan, certain terms must exist. Which is not a term or condition of an amortized loan?

An amortized loan will have the same monthly payment for P & I over the lifetime of the loan.

Mortgage fraud may be prosecuted in the United States asTerm

The real Estate brokerage sign says: XYZ REALTORS®, Tom L. Smith Broker Office Hours are 8:00 a.m. until 10:00 p.m. daily Shirley Jones and Karen Smith, Sales Associates The sign has been placed where it can be easily seen on an exterior wall of the office. The sign has letters no less than one inch in height. The sign is placed in front of the primary office of XYZ. Is this an acceptable sign?

Yes. The sign is placed correctly on an outside wall where it is clearly visible.

A buyer bought a property without telling the seller or broker of his intended purpose for the property. The contract contained no contingency clauses and was properly signed and executed. The buyer is now unable to obtain the zoning he planned for the commercial project he needs for this property and he is unable to use the property. What is the status of the contract at this time?

This is a valid, enforceable, executed contract.

A broker advertised in his local newspaper that a home was for sale for $50,000 when it was really for sale for $500,000. A buyer called in and was told that this was simply a typing error and that the correct price was $500,000. The buyer was angry that the associate was so arrogant on the phone and the buyer filed a written complaint with the FREC. The most serious determination by the FREC would be to:

Punish the broker with an administrative fine of $1000 up to a one-year suspension.

Goodwill is a measurement of pg 391

Mrs. Smith owns a piece of Florida real estate. Her millage rate is 45 and the home has been assessed at $225,000. She has a Homestead exemption. How much money does the Homestead Exemption save Mrs. Smith?

Which is not a source of financing in the primary mortgage market? pg 301

The Probable Cause Panel of FREC acts as a grand jury. They determine if there is a law violation or not and they recommend whether to take further action or dismiss the case to the FREC. How long does the Probable Cause Panel have to determine whether the case should go forward? pg 126

An appraiser is working on an appraisal. He gathers information about highest and best use, identification of key features, and identification of possible legal or physical problems. This is called:

Certain disclosures under CERCLA are required when Federal property is transferred by the

Department of Environmental Protection

An undivided share in "common elements" describes

A product found in homes built before 1978 is harmful to children. It can lead to birth defects and is generally hazardous. It should only be cleaned up by specialists, and is a required disclosure for sales of real property. What environmental hazard is this?

Greater Florida Builders wants to build a 450-acre housing development. They submit the plans to the local zoning commission who agrees with the plans, providing that Greater Florida Builders agree to give land for a new school to be located within the subdivision. Greater Florida Builders has been required to:

Dedicate property for a school.

When a property is sold "subject to mortgage" how does it affect the original borrower?

The original buyer is still liable because no new note was signed.

Fred leases a taco store in the shopping center. In order to prepare his tacos, Fred installs a large, old stove to cook the meat. The lease runs out and Fred does not want to renew the lease. He leaves town and leaves the stove in the landlord's property. The lease contract did not mention the stove and the landlord is very unhappy. What is the legal situation now?

The stove is a trade fixture, but Fred did not take it with him upon the expiration of the lease. Now it is the property of the landlord.

A mortgage prepayment penalty

is charged to a seller who is paying a loan off prior to the maturity date.

A military spouse has relocated with his wife who is assigned to a duty station in Jacksonville. He has an active real estate license in New York. The spouse

may be issued a temporary license for 6 months

Jimmy has used his neighbor's property to run his cattle across for several years. He never spoke to the neighbor about it, nor did the neighbor speak to him about it. His cattle were in the open for all to see and Jimmy continued to do this for 20 years. Jimmy determined that his neighbor might sell the property some day so he decided to get the right to use the property himself without buying it. Is there a way he can legally do this?

Jimmy appears to have met the claims of easement by prescription.

Bill Broker prints an office policy that says he requires a security deposit of “$350 for whites and $500 for blacks” in his area, since he has records to prove that “blacks have weaker financial qualifications.” Is this an acceptable policy?

No. It is discriminatory to set different deposits because of race.

The fact that all real estate rules must be written or printed under the seal of the commission provides for what point of law?

This provides Prima Facie evidence of their existence.

The subdivision has a deed restriction that states all homeowners must build their homes with shaker shingle or Spanish style roofs. One home was not built to the restriction and the other homeowners are upset. What can the neighbors do?

Apply for a court injunction against the property owner.

A charge of unauthorized practice of law could ensue if a sales associate

discusses a chain of title as presented by the title company

James, a real estate broker, decides he wants to open a property management company. He contacts a number of his friends and they agree that he will be responsible for their properties. They all sign a property management agreement that lists all the names and addresses of the owners, the legal description of the property, and the method and schedule of compensation. Is this a sufficient property management agreement?

No. The agreement does not specify a beginning and end date, the extent of the property manager's authority, or the specific services to be rendered.

If house A had a sale price of $70,000, monthly rent of $500, and a GRM of 140; House B had a sale price of $68,500, monthly rent of $490, and GRM of 139.8 and House C had a sale price of $70,500, a monthly rent of $485, and a GRM of 139.6, what would be the value of a property which rented for $495 in the same neighborhood, assuming that house A is the best comparable?

The sale price should be $69,300.

Johnson has his property listed with ABC Realty. On November 1, a fire causes considerable damage to the property. On November 15, Johnson rescinds the listing. On November 30, the broker was deemed by a judge to be incompetent. December 30 was the listing contract expiration date. On which date was the listing terminated?

Population of household composition, price of real estate in the area, availability of mortgage credit, consumer tastes, and income of consumers are all indicators of:

Which is not a method of solving a good-faith doubt in the resolution of an escrow account dispute?

Jennifer, the owner, and Jacob, a licensed Florida salesperson, make a handshake deal allowing Jacob the right to sell Jennifer's condo for a six-month period. They are both of sound mind and legal age and they agree on the terms and conditions for the sale. Under the Statute of Frauds, this type of contract is considered:

Ginger had purchased the property for $48,000. Six months later she sold it for $54,000. What was her percentage of gain?

Jim and Joan owned a farm which produced fruits and vegetables for sale. The farm was located in a heavily populated area. Every year, hundreds of customers came to buy produce from them at the farm. One day, customers were surprised to see that the farm stand was gone and that Jim and Joan had sold the property for a much higher price than farm land would normally cost. Which principle of value did the appraiser use in determining the value of the property?

A division of territory used in the government rectangular survey system of land description that is six miles square and contains 36 sections is a:

The FREC is investigating a claim by a buyer that the broker had not given the proper disclosure to the buyer before the buyer purchased a home. The broker has paperwork dating back three years from the date of the signing of the document in question, and one year after the legal action of the case. Is the broker protected?

No. The broker needs to keep the records five years from the date of the document and two years after any legal action.

Estimating the value of a property uses

As a result of a major hurricane, James' property experienced heavy flooding. His home was in a specialized flood hazard area. What insurance will allow James to recoup part of his losses?

As a result of a major hurricane, James' property experienced heavy flooding. His home was in a specialized flood hazard area. What insurance will allow James to recoup part of his losses?

A Buyer’s Agency Agreement is an employment contract between the buyer and a broker. The agreement should contain all elements except:

Type of broker-seller relationship.

manages all common areas for owners.

To determine the effective gross income on a property, the sales associate should:

Subtract vacancy and collection losses from potential gross income.

The practice by some lenders to refuse to lend in certain areas because of race, color, national origin, or religion, regardless of the ability of an individual person's ability to pay, is best described as:

A property owner moved from a farm he owned in fee simple to another county. He continued to pay taxes on the property and keep the title clear. Did he violate his rights of private ownership?

No, because as long as he paid the taxes, the property is not considered abandoned.

Yield, as it is referred to in financing, is:

The effective annual amount of income that is being accrued on an investment.

Along his beachfront property, a homeowner put a large "Keep Off" sign on the high tide mark. He was tired of all the noise and trash that the general population had deposited on the property and he felt he owned it. His lawyer told him he had to take the sign down. Why did the lawyer do this?

The lawyer was concerned about littoral rights.

A broker moves his office without telling the FREC where he is moving. Two weeks later, a seller comes in and lists his property. The property sells, but the seller is most unhappy with the way the broker performed. The seller refuses to pay a commission to the broker. Can the seller do this?

Yes, because the broker's license ceases to be in force when the broker changes his address without notifying the FREC within 10 days

Ad valorem taxation in Florida is based on which of the following types of value?

The owner and a property manager sign a property management agreement. The property manager advertises the property, shows the rental units, collects the rent and deposits the money in the proper account. He fails to maintain the units in proper working order and the property declines in value. The owner is an absentee owner who arrives to find his property in disrepair. The property manager:

Has failed in his fiduciary duties and is responsible for any losses in value the owner has suffered.

As used in the government survey method, a section of land with a land area of one square mile contains:

An appraiser is trying to find the value of a piece of property. He looks at the land first and figures its value, and then he determines the value of the building by subtracting depreciation factors. After he has determined these facts, he adds the cost of land to the cost of the building to determine the value of the piece of property. Why does he do this?

In appraising, land is never depreciated, as are buildings.

June is looking into buying her first home. She is shown a number of houses on the market, but the market appears to be sluggish because there are so few buyers. Interest rates are steady and June has several good prospect homes to choose from at reasonable prices. This would be called a:

A broker is charged with discrimination. The Federal fair housing investigator notices that the Fair Housing Poster is not displayed in the broker's office. The investigator may

charge the broker with discrimination with no further evidence

When Paul decided to become a real estate sales associate, he applied for his license. He was 23 years old at the time, had a college degree, and had previously owned a business--a lawn service company known as Green Acres Land Service, and he called himself John. He had been found guilty of several parking violations which had resulted in an outstanding warrant for his arrest. He paid the parking tickets and settled the arrest warrant. Does Paul have any other disclosures he needs to make?

Yes. He used another name for himself when he had the business.

A property has a subdivision restriction forbidding use of properties for commercial purposes. The zoning ordinance for the area would permit a commercial use. Can the property be used for a commercial purpose?

No. The subdivision restriction takes precedence over the zoning ordinance since it is more restrictive. 

A buyer of an installment contract buys the property on a five- year contract. At the end of the second year, the buyer of the installment decides to sell the property to someone else because he is too busy to manage it. Can the buyer legally do this?

The buyer cannot sell the property because he does not have equitable title.

Ken represented John in the sale of a home. Sale went well and closed on time. Later, John discovered that Ken told the buyer that John was willing to take a lower price to speed up the sale of the home and that Ken told the buyer a specific price. Which describes the situation?

Ken, the agent, violated the law of agency 

The buyer of an industrial complex wants the broker to place the earnest money in an interest bearing account. The broker does this, clearly identifying all parties who are to receive the interest and the date the earned interest is to be dispersed. With only the verbal consent of the buyer, he places the money in an insured account in a depository in Florida. When the time comes to disburse the account, the broker will write a check to the buyer for the interest as the buyer agreed. How would you describe this situation?

The broker is able to follow the buyers instructions and has complied with Florida Law

First Federal has a loan on a property for $40,000. The homeowner gets a second deed of trust from Home Savings in the amount of $100,000 and the home is valued at $300,000. Home Savings wants to be in the higher priority than First Federal since they have a larger loan. First Federal agrees. How can they do this?

First Federal signs a subordination agreement with Home Savings

What must be on a Real Estate Brokerage sign?

Trade Name Brokers Name Licensed RE Broker

A buyer bought a property without telling the seller or broker of his intended purpose for the property. The contract contained no contingency clause and was properly signed and executed. The buyer is now unable to obtain the zoning he planned for the commercial project he needs for this property and he is unable to use the property. What is the status of the contract at this time?

This is a valid, enforceable, executed contract

A really modern looking home is being built on the corner of 5th and Main. It has huge windows, an open floor plan, and a slanted roof with a single steep plane. This type of roof is called

True or false: Liquidity is how fast property can be sold?

False. Liquidity is the ease with which an asset can be converted into cashDefinition

A developer is considering building a community for Senior Citizens. He sets up a building that is occupied only by tenants 62 yrs or older. HE designs his community with barrier free access and advertises to older people in retirement magazines. A niece of one of the owners requests to move in with her 2 kids and live with her aunt in the building. Can the homeowners and developers refuse to let her move in?

The Developer may discriminate against the children and mother because senior housing is exempt under Federal Fair Housing when certain conditions have been met.Definition

Jacob got a new home loan to purchase his home. He went to a local savings and loan and signed a deed of trust as part of his closing. What is the lender called in the deed of trust?Term

Jack, a dairy farmer in Florida, stores a banned chemical, DDT, on his property. He got it several years ago and uses it to keep flies off his milking cows. He thinks nothing of it until he gets a letter from his lender stating that if he doesn't get rid of it in a safe and proper manner, his entire loan on his property will be called. How can the lender do this?

Florida law inserts a Hazardous Waste Clause in the standard mortgage instrument.

Nathan made out his last will and testament with his attorney. He was of legal age, the will had the proper wording, and had the correct number of witnesses. The next day, Nathan was committed to a state mental health hospital. Can Nathan's will serve the purpose for which it was intended?

The courts will determine at probate if Nathan was of sound mind at the time of signing before the will is certified as valid.

Mike wanted to make lots of money in real estate. He agreed to represent Kevin is the sale of his property and Mike also represented Sharon, the buyer, in the same transaction. Neither parties were aware they were both represented by Mike. The transaction went badly for both parties. Sharon wants to file a complaint. What grounds can she file?

It is illegal to represent both parties simultaneously without the consent of both parties. No Duel agency in FL but can be transactional.

Under the Statute of Frauds in Florida is a handshake a legal contract?

No, it is unenforceableefinition

A good source of heating in a home that has cables run throughout the floors or in the walls, and provides clean, even heat throughout a home is?

A Buyers Agency Agreement is an employment contract between the buyer and the broker. The agreement should contain all elements except?

Type of Broker - Seller relationship

The homeowner has just purchased his new home and is meeting his new neighbors. They are discussing the annual taxes and the assessed value of the property. The new home owner feels he is paying too much in taxes compared to his neighbors. To whom can the homeowner appeal to in Florida to have some reduction in his taxes?

The county's tax collector

After working with a buyer for 2 months, Sally finally has accepted contract between her buyer and seller. The contract calls for earnest money deposit (EMD) to be delivered to the seller upon acceptance. Sally's out of state buyer did not bring his checkbook for the deposit. Which of the following statement correctly describes the best course of action regarding the earnest money?

Sally should suggest an amendment to the contract with a mutually agreeable time frame for completing the EMD deposit

The government control real estate market by?

A prospective buyer submits an offer to purchase a home for $256,000. The seller changes the price to $260,000, initials the changes, signs the offer and sends it back to the purchaser. What has occurred here?

The seller rejected the initial offer and has become the offeror of the counter offer.

sale price =$250,000 comm 7%, com split 50/50  each office sale assoc split 60/40 selling broker
250000x.07=17500 17500 x.50=8750 each office broker 87500 x.60=5250 sales assoc comm

Index lease old=1.3 rate new=1.6 rate sq ft $= 21.00

1.6 / 1.3 =1.23 increase 1.23 + 21.00=22.23

both the seller and buyer are aware of the agency relationship and both agree to be represented equally and with all the requirements of agency all at the same time.

means one of the parties (either the buyer or seller) is unaware that a dual agency exists. This situation may lead to the unfair disclosure of information that one party does not want the other party to know. This is illegal under Florida law.

No Brokerage Relationship: When the Agent represents one side or the other in a transaction but not the party who is given the form.

•Single agent broker: an agent who represents either the buyer or the seller in the transaction but not both,

•Transaction broker: an agent who provides limited representation to a buyer, a seller or both, in a real estate transaction but does not represent either in a fiduciary capacity,

•Designated Sales Associate: a special case for non-residential transactions where two licensees under the direction of one broker act as single agents. One represents the buyer and one the seller. In this case both buyer and seller must verify assets of more than $1 million.

Single Agency Relationship Obligations

Duties include: •Deal honestly and fairly, •Be loyal, •Maintain confidentiality, •Maintain obedience to the Principal's instruction unless in violation of law, •Provide full disclosure to all parties, •Account for all funds entrusted to the broker, •Provide skill, due care and diligence in the transaction, •Present all offers in a timely manner, •Disclose all known facts that materially affect the value of residential real property that are not readily observable, •Provide the single agent disclosure before or at the time of entering a listing agreement or an agreement for representation, at the time of or before showing a property, whichever occurs first, •Provide the required information on the required format. There will be a sample disclosure on the next screen.

Transaction Broker Relationship Obligations

Duties include: •Deal honestly and fairly •Account for all funds entrusted to the broker •Use skill, due care and diligence in the transaction •Disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer •Present all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing •Provide limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, or the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or any other information requested by a party to remain confidential. •Provide any additional information that is mutually agreed to.

Discipline for lack of Disclosure

If a licensee fails to provide or adhere to the provisions of disclosure, the Commission may •deny an application for licensure, registration, permit or renewal •place the licensee, registrant or permitee on probation, •suspend a licensee, registration or permit, •impose an administrative fine not to exceed $1,000 for each count, •issue a reprimand, •do any or all of the above Definition

Record keeping of Disclosures

A broker is required to keep and make available to the department such books and records as will enable the department to determine if such a broker is in compliance with Florida real estate Statutes. Each broker shall preserve one legible copy of all books, accounts, and records, including disclosure documents for at least 5 years from the date of the document. Documents must be kept for two years after any legal proceedings.Definition

•The fulfillment of the purpose of agency is completed (the transaction is completed). •The time limit has expired as stated in the agreement (the listing agreement expires or a buyer's agreement expires). •Breach or cancellation by one of the parties is given: renunciation by the broker ("I quit") or revocation by the principal ("You're fired"). •Mutual consent is given (both agree that it is mutually acceptable that it is in the best interest of all the parties to terminate the agreement). •Death or incapacitation of either party occurs (seller or broker dies). •Destruction of the property or a change in the property is caused by outside forces (a change in zoning or condemnation etc.). •Bankruptcy of either party or foreclosure of the property occurs.

Universal agent: handles all delegated business of the Principal. The Universal agent has the Power of Attorney and is called an Attorney-in-Fact.

2.General Agent: handles multiple transactions of a principal/client.

3.Agency coupled with an Interest: when the real estate licensee is a partner in the ownership of the property as well as represents the partners in an agency relationship.

4.Special Agent: handles one transaction for one seller of one property. This is the most common type of real estate representation. The broker can represent several sellers on one house each at one time but never the seller and buyer for a transaction

A subagency relationship would mostly likely occur in which of these situations?

A salesperson is working for a broker who is a single agent of the seller or buyer

A listing sales associate who shows a property to a ready, willing, and able buyer has certain obligations to the buyer. Which is NOT true?

The sales associate MUST disclose to the buyer that he is a Transaction Broker

Every office entry must have a sign located on the front entry door or directly adjacent to the door. The sign must contain the NAME of the BROKER who is registered as the broker of record for that office. If the office has a trade name, the Trade name must be located on the sign, followed by the broker of record’s name. A partnership or corporation shall contain the name of the firm or corporation or trade name along with at least one of the brokers. At a minimum the words "Licensed Real Estate Broker" (or "Lic. Real Estate Broker") must appear immediately below the broker/s name/s

When advertising on the Internet, the brokerage firm name shall be placed adjacent to or immediately above the POINT of CONTACT information. "Point of Contact" refers to any means by which to contact the brokerage firm or individual licensee including mailing address, physical street address, e-mail address, telephone number or FAX number

A blind ad is an advertisement that does not make it clear that a broker or real estate company is advertising the property for sale, rent or lease. The name of the brokerage must always appear in an advertisement, no matter what type of advertisement. Refer to FREC Rule 61J2.10.25

Mixing business and personal money

Three brokers get together and decide to form a corporation to sell real estate. They want to call their company "House of Brokers." Each broker wishes to maintain contact with the public. What is necessary to do this?

All three brokers must be active brokers, the corporation must be registered, and the trade name must be registered 

A broker desires to keep an escrow account in an interest bearing account. Would this be legal?

Yes, if all parties to the transaction agree, in writing that the funds will go into an interest bearing account and who is to receive the interest

The federal government department which regulates RESPA is the

Consumer Financial Protection Bureau (CFPB).

A broker took earnest money from a buyer. He deposited the money in the trust account, but when his electric bill was due, the broker deposited the buyer's money into the broker's business account. What is this action called 

Escrow Accounts Deposited

The broker must be a signatory on all escrow accounts.

A broker may maintain more than one escrow account and maintain up to $1000 of his own money in each sales escrow account or up to $5,000 in a property management account

A broker is NOT required to have an escrow account. When earnest money or deposit funds are entrusted to a title company or attorney, the licensee who prepares the contract must indicate on that purchase agreement the contact information for the depository where the funds will be held.

Within 3 BUSINESS DAYS of the date of receipt, the broker shall make a written request to the title company or attorney to provide a written verification of receipt of the deposit. •Within 10 days of verification of deposit, the broker shall provide the seller (if unrepresented) or seller's broker a copy of written verification

Record Keeping of Escrow/Trust Accounts

Brokers who fail to reconcile their escrow accounts monthly (or more frequently) are subject to a citation. Failure to properly maintain escrow accounts is the one of the most common problems found during a DBPR Audit

Escrow Accounts in Dispute

it is the responsibility of the broker to then notify the FREC within 15 business days from the last party's demand. 

if the broker has a good-faith doubt (meaning the broker honestly doubts the claim of a party), the broker reports the situation to the FREC. The broker has 30 days from the last party's demand to implement one of the procedures set up for escrow disputes.

These are •Escrow Disbursement Order, •Mediation, •Arbitration, •Litigation

Mediation: Both parties agree in writing to mediation by a mediator. If the issue is not solved within 90 days, the licensee must use the other types of dispute procedures. Arbitration: If the buyer and seller cannot agree, the issue is submitted to arbitration and a third party (arbitrator) makes a decision for one party or the other. If this fails, the parties go to Litigation. Litigation: is simply a law suit, asking the courts through a process called Interpleader to determine the rightful owner of the disputed escrow. The court issues a declaratory judgment which is a binding determination of the rights and status of the parties.

Puffing is making such statements as "The transportation, shopping and schools in this area are terrific." or "Isn't this the most beautiful yard you have ever seen."

This is a misrepresentation of the property and could result in a loss of perceived value on the part of the buyer. If the broker or salesperson causes a material loss to a party as a result of misrepresentation, a resulting charge of FRAUD could follow.

•Must be a licensed real estate broker or sales associate working under the supervision of an employing broker. A broker can only pay a sales associate licensed and registered under him. A sales associate can never collect a payment from other than the employing broker. •Must have been employed by the principal under a valid contract such as a listing agreement, buyer's agency agreement etc. •Must have been the procuring cause of the sale. Procuring cause is a series of events leading to the sale/purchase or renting of real property. •Must have a ready, willing and able buyer, seller or tenant, depending who the contract calls for. Definition

The Sherman Anti-Trust Act

Price fixing- Collusion between brokers and sales associate with competing companies in setting commission rates is illegal. "Everyone charges the same so you might as well list with me" would be considered an illegal statement and a violation of the Act, since brokers cannot get together and set rates. Making a statement that a broker charges more commission than another or that a broker offers a discount commission could also violate this rule as brokers charge the commission that they need to meet their own business plan. There is NO standard commission in real estate! •Group Boycotts - Licensees of different companies should not agree to boycott a company because of the company's business practices. For example, a group of brokers boycott a discount broker because the discount broker has lower rates. This is illegal. •Division of markets by location or price - Dividing up the town either geographically or by price range is a violation of law. Giving ABC all of the north side while XYZ takes the south side is a violation of law as is ABC taking all the listings of below $200,000 and XYZ all the listings above. Violations of the Sherman Anti-Trust Act can include prison terms and fines of up to $10 million for corporations and a fine of up to $1 million or ten years imprisonment (or both) for individuals. All business must be allowed to flow freely in an open market.

Brokers can, under some circumstances, receive kickbacks from providers outside the transaction as long as the buyer and seller are informed of the kickback. A referral fee from a carpet company would be an example of a legal kickback. 

a broker seeking a kickback from a title company, or mortgage provider for referring and closing a property with their particular company is a violation of the federal Real Estate Settlement Procedures Act (RESPA). As a result of the Dodd Frank Wall Street Mortgage and Consumer Protection Act, signed into law 2010, RESPA oversight was transferred from the U.S. Department of Housing and Urban Development to the Consumer Financial Protection Bureau (CFPB). Kickbacks are legal only under limited conditions: •All parties to the transaction must be fully informed of the kickback. •The kickback must not be prohibited by other law (such as the Real Estate Settlement Procedures Act). •The commission may be shared with an unlicensed seller or buyer of the property sold with lender approval.

is a business owned by one person. It may have a trade name rather than the name of the owner. The advantages are that it is easy to manage - and decisions are made by the owner. The disadvantage is that when the owner dies, the company ceases to exist. Liability is completely held by the one owner. All actions of associates to this broker are his responsibility and his alone. A sole proprietor does not need to register with the Secretary of State unless a trade name is used

is a business owned by more than one broker. Each partner in a general partnership is liable for any debt; each partner helps to make the decisions and receives a share of the profits. At least one of the brokers must be specified as the active broker. All partners dealing with the public must be an active broker. A sales associate or a broker associate cannot be partners in a general partnership. Any change in the makeup of the partnership must be reported to the FREC. The partnership is registered with the FREC but does not have to be filed with the Secretary of State.

is a business owned by at least one general partner and at least one limited partner. All the management is done by the general partner. Limited partners contribute investment cash but are limited in the amount of liability to the amount of money they have already given. Limited partners (sometimes called silent partners) do not have a voice in the managing of the company. The limited partnership is registered with the FREC, and at least one of the general partners must be an active broker

The partnership is created by filing with the Secretary of State. The partnership must also be registered with the FREC. General partners who work with the public must be active brokers and licensed with the FREC.

Types of Business Entities

Corporation: is a company that is an entity, rather than a single person

  Limited Liability Partnership (LLP): is a form of ownership that provides liability protection similar to protection offered to limited partners in a limited partnership

  Limited Liability Company (LLC): is also called a "professional company" and its purpose is to provide professional real estate services without the liability of an unprotected broker's or sales associate license.

Organizations that Cannot Be Registered as a Real Estate Brokerage

The following cannot be registered as a real estate brokerage: •A Corporation Sole- church organization, but not a non-profit •A joint venture-temporary relationship •A Business Trust-investment group for its own purposes •A Cooperative/Condominium/Homeowners’ Association- These associations are formed to manage common ownership and do not deal in real estate •An Unincorporated Association- local property owners, not partners •An Ostensible (Quasi) Partnership - hidden relationship •An ostensible partnership may be formed without the knowledge of a real estate broker

The Real Estate Settlement Procedures Act (RESPA)

is regulated by the Consumer Financial Protection Bureau. It was enacted to protect consumers from abusive practices and high settlement charges. A broker seeking a kickback from a title company or mortgage provider for referring and closing a property with their particular company is a violation.Definition

What happens to the earnest money at funding quizlet?

Which items listed below determine if the payment will go up or down on an adjustable rate mortgage?

Which Florida statute created the Department of Business and Professional Regulation The department?

Who inspects brokers records in Florida?