Chapter 6

Front 1

What is the purpose of the FREC disciplinary guidelines?

(a) To extend the meaning of thelaw
(b) To specify and implement thelaw
(c) To give new meaning to the law
(d) To give licensees notice ofthe range of penalties that

normally will be imposed for violation of a law orrule

Back 1

To give licensees notice of the range of

penalties that normally will be imposed

for violation of a law or rule

Front 2

Who reports findings of fact to the Commission at the conclusion

of an administrative hearing?

(a) An attorney
(b) The Division of Real Estateinvestigator
(c) The Division of Real Estateprosecutors
(d) The administrative law judge

Back 2

The administrative law judge

Front 3

What happens if a respondent fails to answer an administrativecomplaint?

(a) The defendant will be issued asubpoena.
(b) The Commission will dismisscharges against the

licensee.
(c) The Commission will proceedwith the hearing.
(d) The Department of Business andProfessional

Regulation will send investigators to arrest the licensee.

Back 3

The Commission will proceed with the hearing.

Front 4

The range of penalties that may be imposed on a licensee by theCommission for violation of law or rules includes which of

the following?

(a) Denial, reprimand, fine,probation, suspension and

revocation
(b) Imprisonment only
(c) A fine and imprisonment only
(d) A fine, reprimand, denial,suspension, revocation

and imprisonment

Back 4

Denial, reprimand, fine, probation,

suspension and revocation

Front 5

An appeal of a Commission final order may be filed with

which ofthe following?

(a) Florida Supreme Court
(b) District Court of Appeals
(c) County court
(d) Department of AdministrativeHearings

Back 5

District Court of Appeals

Front 6

Which of the following statements best describes the

ProbableCause Panel?

(a) The Probable Cause Panel iscomposed of three

Florida Real Estate Commission members, no more than

one ofwhich may be a lay member.
(b) The Probable Cause Panel is anexercise of the

quasi-judicial powers of the Florida Real Estate Commission.
(c) The Probable Cause Paneldetermines guilt or

innocence and submits a recommended order to the

FloridaReal Estate Commission.
(d) The Probable Cause Panel has30 days from

receipt of a complete report to recommend dismissal or

issuance ofa formal complaint.

Back 6

The Probable Cause Panel has

30 days from receipt of a complete

report to recommend dismissal or

issuance of a formal complaint.

Front 7

What is the charge for anyone found guilty of using

false ormisleading advertising?

(a) Third-degree misdemeanor
(b) Second-degree misdemeanor
(c) First-degree misdemeanor
(d) Third-degree felony

Back 7

Second-degree misdemeanor

Front 8

What is the maximum amount of money that can

be paid from theReal Estate Recovery Fund to three

persons who suffered monetary loss as theresult of a

fraudulent act committed by a real estate licensee and

have beenawarded a single judgment?

(a) $150,000
(b) $50,000
(c) $25,000
(d) $10,000

Back 8

$50,000

Front 9

In which of the following circumstances may a citation

be issuedto a licensee?

(a) When no substantial threat tothe public

health, safety and welfare exists.
(b) The hearing officer recommendsone.
(c) A final order was served onthe licensee.
(d) A formal complaint has beenreceived by the

Department.

Back 9

When no substantial threat to the public

health, safety and welfare exists.

Front 10

What is the maximum fine FREC can impose

against a licensee whowas found guilty of two

violations of F.S. 475?

(a) $1,000
(b) $5,000
(c) $7,500
(d) $10,000

Back 10

$10,000

Front 11

What action might the Secretary of the Department

of Businessand Professional Regulation take against a

broker whose actions pose an immediateserious

danger to the safety and welfare of the public?

(a) Suspend the licensee'slicense for ten years
(b) Issue a summary suspension
(c) Issue a cease-and-desistorder
(d) Place the licensee onprobation

Back 11

Issue a summary suspension

Front 12

What action may be taken if either the Florida Real

EstateCommission or the licensee disagrees with a

recommended order submitted by theadministrative

law judge?

(a) Seek adjudication
(b) Submit the matter tomediation
(c) File exceptions
(d) Request novation

Back 12

File exceptions

Front 13

How is the Real Estate Recovery Fund funded?

(a) Property tax dollars
(b) The Florida State Treasury
(c) State intangible taxes
(d) Fees and fines paid by realestate licensees

Back 13

Fees and fines paid by real estate licensees

Front 14

What must an unlicensed individual do when ordered

to appearbefore the DBPR?

(a) Nothing; the DBPR has nojurisdiction over

unlicensed persons
(b) Appear
(c) File an appeal
(d) Bring an attorney

Back 14

Appear

Front 15

Which activity would be classified as a first-degree

misdemeanorunder F.S. 475?

(a) Placing false or misleadingadvertising
(b) Violation of rentalinformation rules
(c) Submitting false informationin an application
(d) An unlicensed personoperating as a broker

Back 15

Violation of rental information rules

Front 16

What is the maximum penalty that may be imposed

upon anindividual who is found guilty of unlicensed real

estate activity?

(a) $500 fine and imprisonmentfor up to 90 days
(b) $1,000 fine and imprisonmentfor up to 1 year.
(c) $5,000 fine and imprisonmentfor up to 5 years.
(d) $10,000 fine and imprisonmentfor up to 10 years.

Back 16

$5,000 fine and imprisonment

for up to 5 years.

Front 17

George received a final order from the Florida Real EstateCommission, ordering his license revoked. If George wishes to appeal thisorder, what would be his next step?

(a) Seek an injunction from theFlorida Real Estate

Commission.
(b) Seek a writ of mandamus fromthe Circuit Court.
(c) Request an injunction fromthe Department of Business and Professional Regulation.
(d) File an appeal with theDistrict Court of Appeal.

Back 17

File an appeal with the District

Court of Appeal.

Front 18

A licensee defrauded two customers in a single real

estatetransaction. The court rendered a single judgment

against the licensee in theamount of $65,000. The licensee

could not satisfy any portion of the judgmentfrom

personal assets. What amount will the former customers

be able to recoverfrom the Real Estate Recovery Fund?

(a) $50,000
(b) $65,000
(c) $85,000
(d) $150,000

Back 18

$50,000

Front 19

According to disciplinary guidelines of the Florida Real

EstateCommission, what is the license status of a licensee

who receives the maximumpenalty as a result of their

confinement in a mental institution?

(a) Suspended
(b) Inactive
(c) Voluntarily inactive
(d) Revoked

Back 19

Revoked

Front 20

Which of the following best describes a DBPR investigator's

roles and responsibilities?

(a) The investigator can issuesubpoenas and final

orders.
(b) The investigator will make arecommendation

as to the penalty that should be imposed against a

licensee.
(c) Upon conclusion of theinvestigation,

the investigator files an investigative report.
(d) The investigator offers hisor her opinions

based upon information obtained during the course

of theinvestigation.

Back 20

Upon conclusion of the investigation,

the investigator files an investigative

report.

Front 21

What term is used to refer to the individual who

files acomplaint?

(a) Accused
(b) Defendant
(c) Complainant
(d) Respondent

Back 21

Complainant

Front 22

How would a licensee attempt to compel testimony

from a witnessin a formal hearing?

(a) Ask the Administrative LawJudge to subpoena

the witness to testify.
(b) Provide proof to the courtthat the witness has

some valid information.
(c) Send the witness a validnotice of appearance.
(d) Have his or her lawyer issuea writ of mandamus.

Back 22

Ask the Administrative Law Judge

to subpoena the witness to testify.

Front 23

If an investigator from the DBPR found a minor

infraction ofF.S. 475 or F.A.C. 61J2, what would be

the likely result?

(a) The investigator wouldattempt to obtain a

summary suspension.
(b) The investigator would notifythe Chairperson of

the FREC.
(c) The investigator would issuea cease and desist

order.
(d) The investigator would issuea Notice of

Noncompliance or citation.

Back 23

The investigator would issue a

Notice of Noncompliance or citation.

Front 24

A sales contract specifies that the buyer will pay a

secondarydeposit by March 15th. The sales associate

neglected to collect thedeposit on time. Which of the

following statements is correct?

(a) The sales associate is notresponsible for collecting

the deposit, this is the broker's responsibility.
(b) The broker should notify theFREC of an escrow

dispute.
(c) By forgetting to collect thedeposit, the sales associate

may cause harm to the seller, and could be chargedwith

culpable negligence.
(d) The sales associate may becharged with conversion.

Back 24

By forgetting to collect the deposit,

the sales associate may cause harm

to the seller, and could be charged

with culpable negligence.

Front 25

Occasionally FREC may receive a complaint from a member

of thepublic that is not considered a "legally sufficient"

complaint. Whichof the following scenarios would be

considered legally sufficient?

(a) An assistant forgets to givea message to the broker,

so the broker did not call the seller in a timelymanner.
(b) A sales agent in single agentrelationship

representing the seller discloses to the purchaser that the

housethe buyer is considering is located near a waste

treatment facility.
(c) A sales associate charges afee to write a lease

for a prospective tenant.
(d) A sales associate in a NoBrokerage Relationship

does not present a verbal offer.

Back 25

A sales associate charges a fee to

write a lease for a prospective tenant

Front 26

Which penalty would apply to a licensee who is guilty

of falseadvertising?

(a) Minor offense requiringreprimand
(b) First-degree misdemeanor
(c) Second-degree misdemeanor
(d) Third-degree felony

Back 26

Second-degree misdemeanor

Front 27

What may a real estate sales associate or broker who

does notpay attention to detail and causes harm to

another be charged with?

(a) Misrepresentation
(b) Conspiracy
(c) Intentional deception
(d) Culpable negligence

Back 27

Culpable negligence

Front 28

A licensee from Miami decided to purchase a home in

Orlando.Because the licensee was unfamiliar with the

Orlando market, while acting as abuyer the Miami

licensee engaged the services of an Orlando broker. The

Orlandobroker neglected his duties, resulting in a financial

loss to the Miamilicensee. Which statement is correct

regarding this situation?

(a) The Miami licensee shouldhave been more

careful, and cannot collect from the Florida Real Estate

Recovery Fund.
(b) The Miami licensee may file aclaim against the

Florida Real Estate Recovery Fund since he/she was

acting asa buyer, not as a licensee when the damage

was incurred.
(c) The Orlando broker is immunefrom FREC

disciplinary action because he was working with a

Florida real estatelicensee.
(d) The Real Estate Recovery Fundonly protects

individuals that are not licensed.

Back 28

The Miami licensee may file a claim

against the Florida Real Estate Recovery

Fund since he/she was acting as a buyer,

not as a licensee when the damage

was incurred.

Front 29

When asked about the size of a home, the sales associate

quotedthe home as containing 5,300 square feet of living

area. In reality the homewas only 4,300 square feet.

This is an example of which fraudulent activity?

(a) Exaggeration
(b) Misrepresentation
(c) Failure to account
(d) Concealment

Back 29

Misrepresentation

Front 30

A residential developer offers a contest whereby

each individualwho tours a model home receives a

treasure box key. If the key opens the doorto a model,

the individual wins the home. Which of the following

statements iscorrect?

(a) This practice is a violationof F.S. 475.
(b) This promotional program ispermissible since no purchase was required.
(c) By using a lottery to promotesales, the developer is guilty of fraud.
(d) The developer must escrow thevalue of the most expensive model prior to offering the contest to the public.

Back 30

This promotional program is

permissible since no purchase was required.

Front 31

A buyer has agreed to purchase the seller's home.

The contractcalls for a deposit of $10,000, to be

placed in the broker's escrow account.The sales

associate forgets to collect the deposit. The sale falls

through andthe seller is claiming the uncollected

deposit as liquidated damages. What willthe sales

associate likely be charged with?

(a) Nothing. It is the broker'sresponsibility to

maintain the escrow account
(b) Misrepresentation
(c) Culpable negligence
(d) Failure to account anddeliver

Back 31

Culpable negligence