How well do you know Florida’s real estate laws and rules?
Here’s a 25-question test with the answers below. Get 20 and you’re a studious type, 15 or better is pretty good and anything less ... well, better get out the books.
It’s multiple choice and we’ve made it easy. Instead of the four choices you faced when you took the licensing exam and the four you’ll have when you renew, we’re only giving you three choices. So, a pure guess has a 33 percent chance of being right instead of 3-to-1.
1. An internet ad must have the following:
a. The firm name adjacent to or immediately above or below the point of contact information.
b. The office’s street address.
c. The fax number.
2. Radon gas is produced by:
a. Coal deposits underground.
b. Uranium in the soil.
c. Faulty plumbing.
3. Florida has “kickback” laws that prohibit fees being paid by vendors, other Realtors or associated businesses such as title insurance companies or law firms. Which one of these is legal?
a. Referral fees from one broker to another.
b. Paying for cell phones.
c. Hosting open houses.
4. A real estate school sends a flyer stating that it guarantees that the student will pass the licensure examination.
a. This is okay.
b. The school can be reprimanded.
c. The school gets an automatic $500 fine.
5. What’s the maximum fine that can be levied by the Florida Real Estate Commission for an administrative complaint that is judged to be a violation?
a. $1,000.
b. $5,000.
c. No limit.
6. The closing agent is required to review numerous items on every form prior to closing. Two of the below are requirements; which one isn’t?
a. Loan information.
b. Broker license numbers.
c. Closing costs.
7. What brokerage relationship is presumed under Florida law?
a. Transaction broker.
b. Single agent.
c. Neither.
8. An “air loan” is:
a. A fraud perpetrated on a bank to get a loan by claiming non-existent property.
b. A loan for the air rights to a commercial building.
c. Borrowing by using another person’s name.
9. An applicant who is turned down for a loan has the right to get which two of these:
a. The address of the agency that provided the credit report.
b. A refund of his application fee.
c. A list of everyone who has asked for the report in the past year.
10. The Florida Department of Business and Professional Regulation is headquartered in:
a. Tallahassee.
b. Orlando.
c. Jacksonville.
11. A home has been the scene of a murder. When showing the home to a prospective buyer, the agent must:
a. Divulge the information.
b. Divulge the information only if asked.
c. Neither is required.
12. To start a sales escrow account, a broker may deposit up to how much of his own money?
a. $100.
b. $1,000.
c. $5,000.
13. If a licensee places an ad, his name must appear:
a. At least once in the same way that the name is registered with the state.
b. Anyway that you can be identified, such as “Joe Smith” instead of “Joseph P. Smith.”
c. Anyway he wishes, including by a nickname.
14. An unlicensed personal assistant may not:
a. Submit listings to MLS.
b. Show property.
c. Hand out information at an open house.
15. A transaction fee may be paid if:
a. It is for actual services rendered.
b. The fee is fully disclosed to the consumer.
c. An agent provides a good service.
16. A person who is inactive in real estate sales may choose to have a “voluntary inactive” status. How long can this person keep this status?
a. Until the next renewal time.
b. As long as he wishes.
c. 10 years.
17. How many members of the seven-member Florida Real Estate Commission must be licensed real estate brokers or sales associates?
a. Five.
b. All.
c. Doesn’t matter.
18. The title closer can represent:
a. The buyer.
b. The seller.
c. Neither.
19. How much can a broker accept in cash without having to report the transaction to the Internal Revenue Service?
a. $5,000.
b. $10,000.
c. $25,000.
20. Mold is:
a. A plant.
b. An animal.
c. A fungus.
21. A broker’s relationship with escrowed funds is:
a. He is the custodian but does not legally control the funds.
b. He legally controls the funds but is not the custodian.
c. Both.
22. A broker or sales associate working from a home office may deduct up to:
a. $10,000.
b. $18,000.
c. $24,000.
23. A licensee who has been disciplined for a minor offense can get his file cleared if he:
a. Doesn’t commit another violation for two years.
b. Makes an official appeal to the DBPR.
c. Both.
24. Escrow records must be retained for:
a. Five years.
b. Five months.
c. As long as the broker is in business.
25. Chinese drywall is made from:
a. Recycled wood products.
b. Waste from coal-fired plants.
c. Deposits in Asian rivers.
Answers:
1. a. The address and fax numbers are optional as long as there’s “point of contact information.”
2. b. Did you know there might be uranium under your house?
3. a. Almost anything you get from an outside agency is a no-no.
4. c. Yes, it does happen, but not often.
5. b. It used to be $1,000.
6. b. The list is long; better make sure you have a checklist going in.
7. a. Agents must deal fairly with all concerned.
8. a. If you guessed “c,” that’s called a “nominee loan.”
9. a and c. The person doesn’t have to pay for a report, either.
10. a. The Florida Real Estate Commission, a division of DBPR, is in Orlando.
11. c. The law also includes the house having once been occupied by a person with an infectious disease.
12. b. He can put up to $5,000 for a property management escrow account.
13. a. The other two are permissible as long as the registered name is there.
14. b. That takes a licensee.
15. c. No tipping allowed.
16. b. But, the person must complete the CE and renew every two years.
17. a. The other two are called “Consumer” members and must never have held a real estate license.
18. c. The closer must stay at arm’s length from both in order to complete and impartial closing.
19. c. And the broker has 15 days to do it.
20. c. Leave cheese out of the refrigerator long enough and you’ll see what we mean.
21. a. He can’t disburse the money without the approval of both the buyer and seller.
22. c. Better check IRS Publication 587 for all the rules before you send in your taxes.
23. c. If successful, the violation will go on an “inactive” list and the licensee can deny ever having been disciplined.
24. a. That also applies to any listing agreement, property management agreement, lease agreement or purchase offer.
25. b. No wonder it smells bad.