Real Estate Practice Exam 2 - Practice Test Geeks

A sales associate's license has expired. The sales associate is called by a buyer who wants to see property. The sales associate shows the property, but does not write a contract until he has renewed his license. The sales associate

is able to do this since the contract was not written during the time of inactivity

is entitled to receive a commission

has violated Chapter 475

is able to discuss real estate with prospective buyers, but may not show or sell it

Correct! Wrong!

An example of institutional advertising would be

an ad about a private hospital for sale

an ad about the outstanding service offered by a real estate firm

an ad describing a duplex for sale in the northern part of the county

an ad describing a private academy for sale

Correct! Wrong!

A Kentucky lawyer and a Florida broker joint venture to sell property in Florida for a friend of the Kentucky lawyer. What can the Kentucky lawyer receive?

a commission provided he doesn't come to Florida

a referral fee if he doesn't come to Florida

a commission if he actually performs services in the transaction

no part of the real estate commission

Correct! Wrong!

During the week, Janet works for Wonder Works Realty, Inc. as a sales associate. On weekends, she holds open houses for Schultz Homes, and is paid a 2% commission directly by Sam Schultz on any sales she helps procure. Which is correct?

This is a violation of FTC rule 21V-1.46 stating a sales associate may have only one real estate employer.

She can work for both companies provided full disclosure is made and both parties agree in writing.

She may do this provided the companies obtain a group license.

This is an illegal arrangement.

Correct! Wrong!

John Harrison, a sales associate, leaves the employ of Gilbert Miller, a licensed real estate broker. John wrote a sales contract prior to his termination, and the transaction closed after he left Miller. The amount of the gross commission was $3,700, and John was on a 50/50 commission split. There is no office policy which covers this situation. John demands his portion of the commission. What should Mr. Miller do?

Refer the matter to arbitration at the Board of Realtors.

Pay $1,850 to John.

Explain that the law allows him to pay only sales associates licensed with the firm at the time of closing.

. Deduct 25% of John's portion as administrative expense and pay John the balance.

Correct! Wrong!

Which of the following best describes the relationship of a broker and his principal?

caveat emptor

limited duties

fiduciary duties

confidentiality until the listing expires

Correct! Wrong!

John and Edward were brokers with their own firms. An economic downturn made them decide to share office space. They did not put up signs which described that the public was actually dealing with two separate firms. A BPR investigator made a routine office inspection visit. The investigator would probably issue a citation stating that this I. is an ostensible partnership. II. is a general partnership. III. is a violation.

I only

I and II

I, II, and III

I and III

Correct! Wrong!

Which of the notices shown below MUST be signed by a buyer or a seller

Transaction Broker Notice.

Single Agent Notice.

Consent to Transition to Transaction Broker Notice.

Notice of Nonrepresentation.

Correct! Wrong!

Which of the following is most correct?

All sales associates work for brokers.

All brokers have sales associates.

All brokers are Realtors.

All Realtors must be members of NAR.

Correct! Wrong!

Who can receive compensation directly from an owner?

a broker

a sales associate, if licensed with a broker

a broker associate, if licensed with a broker

all of the above

Correct! Wrong!

A Fort Walton Beach real estate broker is the property manager for several condos on the beach which rent for $1,000 per month. He also manages several (which are rented) that rent for $850 per month. The broker advertises beach front condos (which are unavailable) at a price of $850, and has a good response rate. He is usually able to explain the better quality of the $1,000 per month rentals and rents them quite fast. The broker

has no problem. He actually manage units which rent for $850 per month

has acted with bad faith, but is not guilty of a violation of Florida law

has no problem if he can show all customers were satisfied

is guilty of fraudulent and misleading advertising

Correct! Wrong!

Required brokerage relationship disclosures must be retained by the broker for:

five years

three years

two years

one year

Correct! Wrong!

Hinson forms a limited partnership to develop and sell real property. Hinson will be the general partner will do all the work. Bailey buys units as a limited partner and invests $100,000. Hinson defrauds several purchasers who bring suit against the partnership and get judgments for amounts in excess of $300,000. The partnership funds are wiped out. Which is correct?

Hinson is liable for the same amount as Bailey.

Hinson is not liable because of the limited partnership status.

Hinson is liable for the unpaid judgments, Bailey is not.

Bailey is jointly and severally liable as a partner.

Correct! Wrong!

Jill sells commercial property exclusively. Which is correct about her brokerage relationships?

She may have "no official brokerage relationship" status, may be a single agent or may be a transaction broker

Her broker may appoint her to be a “designated salesperson” for one party, and another person in the firm to be a “designated salesperson” for the other party in the transaction

She must provide the Notice of Nonrepresentation at first contact with potential buyers and sellers

a and b

Correct! Wrong!

Which of the following is a legal brokerage office? I. permanent building with at least one office II. sign at or about entrance with "Licensed Real Estate Broker" or REALTOR III. names (but not license status) of all licensees of the firm.

I only

I and II

I, II and III

I and III

Correct! Wrong!

Joyce owns property in Tallahassee which is 100 feet on the road and 125 feet deep. The city paves the street and agrees to pay 25% of the cost. The cost per running foot is determined to be $54. How much is Joyce’s special assessment?

$2,025

$2,700

$3,456

$4,050

Correct! Wrong!

A broker decides to go to work for an owner-developer, and will be compensated on a salary plus commission basis. Which is correct?

She must be licensed as a sales associate.

She must be licensed as a broker.

She need not be licensed if she confines her sales activity to the one employer.

She must be registered as a broker-sales associate.

Correct! Wrong!

A licensee fails to renew his license at renewal time, and desires to become active again 16 months later. What must he do?

Reinstate by filing a renewal request with a late fee

Reinstate by taking 14 hours of continuing education and paying a late fee

Reactivate by taking a 28-hour reactivation education course and paying a late fee

Take the sales associate course and the state exam all over again

Correct! Wrong!

Which is correct about a group license?

It is issued to sales associates who work for several employers.

A broker may have as many as she has offices.

It is issued to sales associates who work for several entities with a comm ownership.

It is issued to brokers for each branch office.

Correct! Wrong!

A sales associate properly licensed with a broker may

open his own branch office with permission from his broker.

manage a branch office.

not manage a branch office.

open his own office.

Correct! Wrong!