Real Estate Practice Exam 3

Question 1

Which of the following situations requires disclosure of brokerage relationship to a customer? I. sale of improved property with four units or fewer II. leasing of property with four units or fewer unless the owner occupies one of the units III. sale of agricultural property with 10 acres or less

Accepted Answer

I and III

Answer

In Florida, disclosure of brokerage relationships is mandated for residential real estate transactions, which include the sale of improved property with four units or fewer, and the sale of un-improved residential property intended for four units or fewer. Additionally, the sale of agricultural property with 10 acres or less is typically considered residential for disclosure purposes. However, leasing property with four units or fewer does not require disclosure if the owner occupies one of the units, making statement II incorrect. Therefore, disclosure is required for situations I and III.

Question 2

. Which brokerage relationship status requires that a broker disclose known facts that materially affect the value of residential property?

Accepted Answer

any status requires the disclosure.

Answer

In Florida, all real estate licensees, regardless of their specific brokerage relationship status (single agent, transaction broker, or no official brokerage relationship), have a fundamental statutory duty to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer. This duty is a core consumer protection measure designed to ensure transparency and fairness in real estate transactions, preventing licensees from withholding crucial information from potential purchasers.

Question 3

A licensed sales associate of a brokerage corporation may

Accepted Answer

own stock in that corporation.

Answer

In a real estate brokerage corporation, a licensed sales associate may own stock in that corporation as an investment. However, sales associates are generally prohibited from serving as officers or directors of the corporation. These management and leadership roles typically carry fiduciary duties and liabilities that are reserved for licensed brokers, who are responsible for the overall operation and compliance of the brokerage firm.

Question 4

Dexter Bonham is purchasing property through Lawrence Hafner, licensed real estate broker. Hafner sold the same piece of property last year. Because Bonham is experiencing financial difficulties, Hafner tells him that the title was insured last year, and that he will go to the courthouse to determine if there have been any liens filed since then. This would save the buyer nearly $500. Which is correct?

Accepted Answer

Bonham should write a letter of commendation to the local Board.

Answer

A real estate broker is strictly prohibited from giving legal advice or rendering opinions on the status of title, even with good intentions to save a client money. This action constitutes the unauthorized practice of law, which is a serious violation of real estate license law. Only a qualified attorney or title company should provide such services, as they possess the necessary expertise and legal authority to interpret title records and provide legal opinions.

Question 5

A single agent broker who wishes to remain loyal to the principal yet be involved in both sides of a transaction

Accepted Answer

must work with the other party in a "no official brokerage relationship" role.

Answer

In Florida, dual agency is prohibited. A single agent broker owes undivided loyalty to their principal. If a single agent wishes to work with the other party in the same transaction while maintaining loyalty to their principal, they cannot represent the other party as a single agent or transition to a transaction broker without both parties' written consent. The only way to interact with the other party without violating their single agency duty or creating an illegal dual agency is to work with that other party in a 'no official brokerage relationship' capacity, providing limited services without representation.

Real Estate License Practice Test

Real Estate License Practice Test

Real Estate Practice Exam 3