$450,000 -$350,000 equals $100,000 multiplied by 0.03 equals $14,500 +3000 equals $17,500. This. (c) If a sales associate wishes to be an officer or director, his . A corporation sole cannot be registered as a real estate broker. Estimates are necessary in financial statements. Assume a broker's annual expenses, including her salary, are $245,000 and she wants to make $50,000 profit. 1. In order to qualify for statutory independent contractor status, the sales associate need only have a real estate license. Driving under the influence (DUI) conviction that occurred 15 years ago B. An appraisal is different from a CMA in all of these ways EXCEPT: A CMA uses three approaches to value, where an appraisal uses only one approach to value. The broker needs to make $295,000 in company dollars ($245,000 + $50,000). Sales Associate Duties & Responsibilities. B) marital status. B) the residences do not have any occupants who are younger than 18. A corporation sole is an ecclesiastical or church organization, usually headed by a bishop or other clerical official who has been empowered by a church to hold title to church property. If the conduct of two or more persons creates the "appearance" that a partnership exists, the courts may determine that the partners are, A licensed real estate broker is the sole broker and owner of a real estate brokerage corporation. A sales associate wants to call prospects for the purpose of soliciting new listings. Which statement BEST describes the legal term nolo contendere? It paid the sales associates and average of 60% commission split. A broker's listing agreement specifies that 5 percent commission is to be paid on the sale price. Is Capri Realty required to register the model home as a branch office? 4. Limited partners are not liable to creditors of the partnership. 4. The broker deposited the money into the trust account, but when the broker's electric bill was due, he deposited the buyer's money into the broker's business account to pay the bill. When a broker opens a new brokerage office, no new brokerage business may be conducted (the license ceases to be in force) until the DBPR is notified of the new business location and it is properly registered. Violators of Floridas Telemarketing Act may be fined $10,000 per call. There is a limited exception in Florida that DOES NOT apply on the Federal level. The Internal Revenue Service (IRS) is NOT likely to disqualify an independent contractor status if a broker A) pays a higher commission to a sales associate than is customary. The applicant earned a score of 76 on the end-of-course exam and has submitted the license application to the Department of Business and Professional Regulation (DBPR). Registration and licensure are synonymous. Vacancy and collection losses are estimated to be 5% of the potential gross income. It is when the buyer and seller make demands regarding the dispersement of escrowed property that are inconsistant and cannot be resolved. An ostensible (or quasi partnership) is not a real partnership, furthermore, it is considered to be fraudulent and deceitful if the public is deceived into believing that a partnership exists. Yes, if all parties agree in writing that the funds will go into an interest-bearing account and specify who is to receive the interest. For what period of time must a broker maintain business records, including escrow account records, and make them available to audit by the DBPR? Other assets B. T or F, A broker can be fined or the license suspended or revoked for hiring a sales associate who is not the holder of a valid active license. C)Susan is in violation of Florida license law. What action will be taken against a broker when a payment is paid from the recovery fund? A parcel of real estate has been left to Betty through a will for her use and enjoyment through her lifetime what type of estate does Betty have? The statement is TRUE. The value of a property which is used by local taxing authorities for real estate taxes is. The agent must disclose to the buyer at the time of showing the property whom he represents in the transaction. State law fine = $10,000FEDERAL law fine = $11,000. An appraiser faces occasional problems with using business financial statements. Which individual is exempt from real estate licensure? A. No. The father promised his son that after every fifth lot was sold, he would give his son a lot free and clear. How long does the broker have to notify the FREC that the matter has been resolved? The Probable Cause Panel will be made up of all of the FREC. Making statements to neighbors about minority groups moving into the neighborhood in order to get listings is? There are three requirements: The sales associate must hold a real estate license, have a gross income based on production rather than on the number of hours worked, and work based on a written contract that states, among other things, that the sales associate is not considered an employee for federal tax purposes. What is the fine per telephone call for a violation of Floridas Telemarketing Act? A) Any location that is used to meet and greet prospective buyers must be registered as a branch office. 2. The other expenses in the question are fixed expenses. A sales associate or broker associate may not be an officer or director of a real estate brokerage corporation. B. Some brokers instead choose to have a Florida-based title company that has trust powers maintain the escrow funds, or alternatively, if designated in the sale contract, a Florida attorney may escrow the funds. Three brokers decide to lower their commission rates to 3% in hopes of driving a discount broker out of business this is defined to as? A) The buyer and the seller must each have assets of at least $1 million. An individual who specializes in the sale of business opportunities is exempt from a real estate license. Hal thought that he would add value to his home by adding a swimming pool. Investigate the complaint if the Department wishes. A cooperative association IS ALLOWED to conduct commercial business and to convey, sell, or buy its own property, but it cannot be registered as a real estate broker. The answer is 5. She also has had an active NY real estate broker since 1996. T or F. The statement is true. Capri sales staff will temporarily work out of a model home in the subdivision. Financing services requires a mortgage broker license. Because an RV is not a building of stationary construction, it does not meet the minimum office requirements and may not be registered as a real estate branch office. Two men enter into a business arrangement. If the post-licensing requirement is NOT fulfilled before the first renewal and a broker associate licensee wishes to continue in the real estate business, the licensee A) may request to receive a sales associate license, provided the licensee completes 14 hours of continuing education within six months following expiration of the broker license. The answer is 3, revert to involuntary inactive status. The landlord was reviewing his property management agreement with the broker. The answer is the employee must hold a real estate license because he receives compensation based on sales. A) Name of the sales associates B) Trade name, if one is used C) Licensed Real Estate Broker D) Name of the broker, Which statement can be included in a classified advertisement? Which item would most likely be classified as a fixture? C) Real estate brokers may advertise residential listings by faxing promotional flyers to a list of local businesses. True False. 1. Carla does not qualify for mutual recognition because she is a FL resident. No one else in his subdivision has a pool. Does the buyer have cause to be upset? Is a broker allowed to abbreviate the brokerage company's name in newspaper advertisements of homes for sale? Brokers must deposit escrow funds no later than the _____ business day. a) The name on the real estate brokerage firm for which the associate works must be printed on the key rings; b) As long as the sales associate is paying the entire cost of the rings, he can put any wording on them he chooses. B) Applicants applying for a Florida real estate license through mutual recognition must pass a Florida-specific real estate law license exam with a grade of at least 75%. The answer is false. (b) All sales associates, broker associates, and brokers who are . The cost approach is used most effectively on which type of properties? The reasons for selling businesses are varied and the appraiser must establish the value of the business before it can be sold. Which statement is TRUE? Which statement is TRUE regarding designated sales associates? T or F, A broker wants to register a recreation vehicle (RV) as a branch office. All the assets and liabilities are noted that belong to the business. 7) A license sales associate decides to have personalized key rings made. A)15 business days B)30 calendar days C)24 hours D)10 business days, The answer is D) 10 BUSINESS DAYS. A) No pets allowed B) Walking distance to Catholic high school C) Nice Hispanic neighborhood D) No children. The insurance expense can be considered a A) fixed cost. Accounting for all funds entrusted to the broker. The son quit his job to go to work for another developer, who paid a higher weekly salary. What information need not be disclosed when submitting applications? Bob was recruiting licensed sales associates from other firms and the Board of Realtors did not like this. T or F, A real estate broker who legally operates as the broker for more than one real estate brokerage holds multiple licenses. True or false,With real estate brokerage general partnerships: the partnership must be registered with the DBPR; there must be at least one partner as an active broker; partners who deal with public and perform real estate services must be active brokers; and sales associates may not be general partners. A) Limited partnership B) Joint adventure C) Quasi business dealing D) Ostensible partnership. The broker had received an Earnest Money Disbursement Order from the FREC. Ticket for failing to stop at a red light six months ago. Within 10 days, the broker must request written verification that the earnest money deposit was placed in Attorney White's trust account. The applicant has met the requirements to become a licensed broker and is qualified to take the state license exam. There is no requirement to include the brokerage office street address on the entrance sign. Disclosure rules do not apply to auctions. A Broker has been hired to manage an apartment complex how much the broker handle the security deposit? THE TENANT SHOULD DEMAND WITHIN 30 DAYS A REFUND OF $75. Which Statement is TRUE regarding the Save Our Home amendment? FIVE YEARS REGARDLESS OF WHETHER TRUST (ESCROW) FUNDS WERE COLLECTED. Sales associates may be limited partners in a limited partnership. B) variable cost. B) requires each sales associate to take floor time at least twice monthly. B) The location is being staffed by licensees; therefore, it must be registered as a branch office. The broker pays the business tax; licensees who work for the broker are exempt from paying the tax. Susan should find other comps that are more like the subject house. A broker was sued in a civil action following an earnest money dispute that the broker had reported to the FREC. This is an example of a legal kickback or rebate. All of the following are examples of the principle of change EXCEPT: The federal law which requires the use of certified appraisers to obtain a loan is called: What is the principle of value which states that the more the properties are alike, the more they will hold their value? All of the following are examples of the need for valuation of business EXCEPT: All of the following are steps in the sale of a business EXCEPT: The appraiser lists the property for sale. The purposes of the Appraisal Foundation are all EXCEPT: The purpose is to create, lobby, and promote federal legislation for appraisers. A hurricane damaged a large number of homes along the beach. What type of rights are associated with moving water? C)The only compensation that the sales associate may receive is part of the commission, regardless of circumstance. T or F, Real estate licensees should avoid using the proximity to churches and synagogues when advertising listed properties. Which type of business brokerage entity is NOT required to file with the Florida Department of State? The statement is true. Of the following pieces of information that appear on the brokers entrance sign, which is optional under Florida license law? Because the definition of real property includes any interest in business enterprises or business opportunities, individuals who specialize in the sale of businesses, known as business brokers, must hold Florida real estate licenses. A broker who has a good faith doubt regarding who is entitled to escrow funds should take which action? Which statement best describes the legal requirements? Which statement applies to this arrangement? C) The name of the brokerage company for which he works must be printed on the magnets. Last year, a brokerage office had 250 sales. There is a multitude of factors brokers must consider when opening an office. The answer is A) ATTORNEYS TRUST ACCOUNT. FCC rules under the Junk Fax Prevention Act mandate that it is unlawful to send unsolicited advertisements to a residential or business fax machine without the recipient's prior express invitation or permission. What are the four settlment options in cases of conflicting demand/escrow dispute? B) His license status must be printed on the magnets. A) The employee is not required to hold a real estate license because he receives a salary. A)#1Service Realty B)Mike Meyers C)Susan Meyers, Broker Associate D)Licensed real estate broker, The answer is SUSAN MEYERS, BROKER ASSOCIATE. ($840,000 *.6 = $336,000 / 52 = $6,462), Which is the BEST example of a variable expense? An apartment building contains twenty units. What was the investor's rate of return for the property if she paid $195,000 for the property? What is the term for this loss? A resident licensee who becomes a nonresident must notify the Commission of the change in residency within 15 days. Which statement is TRUE regarding this situation? A Florida broker applicant has been licensed as a salesperson in Texas from 1970 through 1995. If an escrow account is an interest-bearing account, the broker must get written permission from all parties before placing the funds into the account. e. Her iconic memory disrupted her encoding of the number. The fee paid to the FHA employee is a referral fee, which is legal under FL RE law. Add $34,000 start-up costs to get the minimum cash required of $106,000. The Department must investigate all complaints, signed or unsigned. If the comparable is worse than the subject house, add to the sale price of the subject house. Ticket for failing to stop at a red light six months ago C. Denied licensure as an appraiser in MA D. A plea of nolo contendere for domestic violence. And owner at an apartment complex pays $100 to each tenant that refers a renter this arrangement is illegal because? 3. The broker maintains $1000 in the account of his own money. A)Wednesday B)Monday C)Thursday D)Friday. The 2012A Sales Tax Bonds are fully-registered bonds in book-entry only form, registered in the name of Cede & Co., as nominee for DTC and DTC is acting as securities depository for the 2012A Sales Tax Bonds. $6,462 B. The arrangement is disclosed to all interested parties. The probable Cause Panel will act as a grand jury to determine if there has been a license law violation. A developer purchased a tract of land and subdivided the property into Individual lots. Sharing a portion of the commission with a party to the transaction is an example of a legal kickback or rebate, Explain the FSBO exception related to the Do not call registry related to Florida and Federal law. 4. She projects that her start-up costs will be about $34,000. A) 30.7 B) 27.55 C) 41.2 D) 19.38. The amount of commission to be paid is negotiable. He notes that the broker had not changed enough rent to tenants to make the type of profit that the owner wanted. What recourse is available to the prospective tenant who purchased the information and found that much of the rental information was out-of-date? The Alabama licensee has requested a Florida real estate license based on mutual recognition. 3. Color brochures, floor plans, and blank sale contracts are stored at the model. The answer is A) LORI SAMMIS, PA. The statement is TRUE. A buyer requests in the sale contract that the earnest money deposit be held by Bob White, attorney, trust account. What are the call times restricted to on the Do not call list, Advertisements that fail to disclose the license name of the brokerage firm. F.S. Can a Sales Associate be a director or an officer of a Real Estate Brokers firm? Or the sales escrow account? The answer is active member of The Florida Bar. Certain age-55-and-older communities are exempt from the familial status provisions of the Fair Housing Act if the communities offer amenities, specific programs, and activities designed for the mature adult and A) at least 80% of the households have at least one occupant who is 55 years old. T or F, The statement is false. TRUE OR FALSE: A licensee who violates the federal telephone solicitation law may be fined up to $10,000 per call. A) General partner B) Director of a corporation C) Officer of a corporation D) Shareholder of a corporation. The answer is it is a plea of no contest. The appraiser would probably reduce the value of the property because of: External obsolescence in a property is generally: Caused by outside forces that are beyond the seller's control. Subtract the liabilities short and long term from the value of the business. The son alone has violated FS 475. The broker may register a trade name for the commercial office and continue to use the corporate name for the principal office.