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Florida Real Estate Principles - Chapter 5 - Review Questions

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John Anderson is a licensed real estate associate. Under which name may he register and be licensed?
A. Complete Real Estate Sales Services

B. John Anderson Brokerage
C. John Anderson, LLC
D. John Anderson and Partners
C. John Anderson, LLC
Which statement is FALSE concerning brokerage signs?

A. The sign must include the broker's trade name, if applicable.
B. The broker must maintain a sign at the entrance to each branch office.
C. A sign is not required if the broker's
C. A sign is not required if the broker's office is located in his or her residence.
A broker may maintain an escrow account in all of the following EXCEPT in a

A. title company in Florida that has trust powers.
B. credit union in Florida.
C. commercial bank in Florida.
D. life insurance company in Florida.
D. life insurance company in Florida.
In connection with escrow accounts, the Florida Real Estate Commission has rules and regulations that

A. permit the depositing of personal funds into an escrow account as long as adequate records are kept.
B. prohibit the depositing of mo
B. prohibit the depositing of more than $1,000 of personal funds into a sales escrow account.
Real estate sales associates who receive checks payable to them as deposits on the purchase of real property must

A. endorse the checks, deposit them in their employers' accounts, and maintain good records.
B. endorse the checks and immed
B. endorse the checks and immediately turn them over to their employers.
Broker Murl decides to use the trade name Little Mo Realty for the name of his real estate business. Murl must

A. register the trade name with the Florida Department of State.
B. obtain a charter from the State of Florida.
C. registe
C. register the trade name with the FREC so that it can be entered into the Commission's records.
Which statement is FALSE regarding escrow accounts?

A. The escrow account may be either interest-bearing or noninterest-bearing.
B. A broker may choose to have an attorney or a Florida title company maintain the escrow account.
C. It
C. It is illegal for the broker to keep any earned interest even if the buyer and the seller give written permission.
A dispute arises between the buyer and seller as to which one is entitled to escrowed property. The broker should first

A. mediate the matter.
B. arbitrate the matter with the consent of both parties.
C. notify the FREC, unless exemp
C. notify the FREC, unless exempted from the notice requirements.
Regarding advance fee trust accounts

A. 100 percent of all such advance fees collected must be deposited.
B. at least 75 percent of all such advance fees collected must be deposited, with the exception of advance fees for auctioning real
B. at least 75 percent of all such advance fees collected must be deposited, with the exception of advance fees for auctioning real property.
An individual who paid for rental information but did not obtain a rental is entitled to repayment of

A. the fee.
B. the fee if requested within 10 days of the contract/receipt date.
C. 75 percent of the fee if requested within 10 da
D. 75 percent of the fee if requested within 30 days of the contract/receipt date.
Rebecca purchased a rental list one week ago from a real estate broker. Rebecca inspected an apartment described in the list. The apartment manager told Rebecca that cats were not allowed. Rebecca had specifically looked at the apartment because the rent
C. 100 percent of the fee paid.
If the license issued to the only active broker of a real estate corporation becomes void for any reason, another active broker must be appointed within 14 calendar days. Failure to appoint another active broker will result in what action against the cor
A. Automatic cancellation
Murl decides to incorporate his new real estate business, Little Mo Realty, Inc., in order to reduce his personal liability. Murl must do each requirement EXCEPT

A. register the brokerage entity with the Commission.
B. obtain a charter fr
D. obtain a charter from the Secretary of the DBPR.
A corporation sole is a(n)

A. commercial enterprise organized and managed by one individual.
B. unincorporated association organized for a single common purpose other than to operate as a church.
C. church organization registered as
D. ecclesiastical organization.
To form a general partnership, two or more persons must

A. agree to share equally in the profits and losses.
B. agree to engage in business together and share in the profits and losses.
C. be personally qualified and licensed as real
B. agree to engage in business together and share in the profits and losses.
One difference between a general partnership and a limited partnership is that

A. only a general partnership may be registered as a real estate broker.
B. limited partners must make a cash or property investment.
C. while both have g
B. limited partners must make a cash or property investment.
Which business entity may be registered as a real estate broker?

A. Corporation sole
B. Cooperative association
C. Limited partnership
D. Business trust
C. Limited partnership
A broker has conflicting demands from a buyer and a seller regarding an escrow deposit. The broker may employ all of the escape procedures listed below EXCEPT

A. request an escrow disbursement order.
B. provided all of the parties consent
C. request an informal hearing before the FREC to resolve the matter.
Broker Murl is getting prepared to open Little Mo Realty as a sole proprietorship and is placing an order to have an entrance sign made. Which wording does NOT need to be included on the sign?

A. Little Mo Realty
B. Murl's legal name
D. 1000 Sunset Blvd.
In answering questions pertaining to quality of title, real estate brokers are

A. required to give opinions because of their role as experts.
B. required to advise prospective buyers to have a lawyer render an opinion or obtain title insu
B. required to advise prospective buyers to have a lawyer render an opinion or obtain title insurance.
A broker receives conflicting demands concerning a roof inspection report. Both the buyer and seller claim the earnest money deposit. The broker must

A. provide written notification to the FREC within 10 business days.
B. follow the writt
C. institute one of the statutory settlement procedures within
30 business days after the last demand.
The sales commission rates applicable to the various types of property sold in Florida are determined by

A. FREC rules and regulations.
B. agreement between each broker and buyer or seller.
C. the local board of REALTORS®.
D. a
B. agreement between each broker and buyer or seller.
When a sales associate decides to leave the employ of her broker to work for another broker, she

A. may take copies of all listings she personally obtained while employed by her former broker.
B. must notify the FREC within ten days of he
B. must notify the FREC within ten days of her change in broker-employer.
A real estate transaction has been closed, but the seller refuses to pay the broker the commission earned as a result of the sale. The broker may

A. collect triple damages per F.S. 475.
B. file suit in a court of law against the seller.
B. file suit in a court of law against the seller.
Broker Murl decides to organize Little Mo Realty as a limited partnership. What must Murl accomplish?

A. File the limited partnership agreement with the Florida Department of State
B. Register the limited partnership with the Commission
D. All of the above
In Florida, listings obtained and any commissions paid by the buyer or seller are

A. legally the sales associate's property.
B. jointly owned by the sales associate and the sales associate's employer.
C. legally classified as the pro
D. legally the property of the sales associate's employer.
An active real estate sales associate signed an employment agreement with Broker Denton two days ago. Broker Denton is out of town today, and the sales associate needs to know the office rules pertaining to the advertising of listings. That information s
A. office policy manual.
Broker Murl of Little Mo Realty and Broker Dan of Boyds of Naples agree to work with one another to market a prestigious marina in Naples, Florida. Murl is particularly knowledgeable regarding marinas and Dan is an expert on the Naples real estate market
C. joint venture.

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