Real Estate Broker Examination Your examination(s) will be administered on an electronic testing system. Policy and Procedures Manual.
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Table of Contents 1I. INTRODUCTION.. .2II.TESTING LOCATIONS AND RESERVATIONS..3 III.THE EXAMINATION4 CONTENT OVERVIEW4 CONTENT OUTLINE4SAMPLE QUESTIONS.6PILOT TESTING..7 TEST TAKING ADVICE..7 SUPPLIES.8REFERENCES9IV. ADMINISTRATIVE POLICIES.11 CHANGE AND CANCELLATION POLICIES11 ABSENCE POLICY.11 ADMISSION TO THE EXAMINATION.11 ADMISSION PROCEDURES11LATE ARRIVALS.12 RULES FOR THE EXAMINATION..12 APPAREL..12CHANGE OF ADDRESS..13CHANGE OR CORRECTION OF NAME..13SPECIAL TESTING ACCOMMODATIONS.13 V. SCORING INFORMATION AND GRADE NOTIFICATION.13 SCORING PROCEDURES..13NOTIFICATION OF RESULTS.13 EXAMINATION REVIEW & CHALLENGE PROCESS14 VI.APPENDIX..15 POINTS OF CONTACT.15 ADDRESS CHANGE FORM..16COMMON ABBREVIATIONS & DEFINITIONS..17 STATEMENT OF NONDISCRIMINATORY POLICY The Department of Business and Professional Regulation does not discriminate among candidates on the basis of age, sex, race, religion, national origin, handicap, or marital status.PLEASE SAVE THIS DOCUMENT FOR FUTURE REFERENCE Visit our website at:
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This Candidate Information Booklet (CIB) is designed to introduce Computer Based Testing and provide candi -date information for this examination.The Department of Business and Professional Regulation has retained the services of Pearson VUE to schedule, administer, score and report the results for computer based testing. Pearson VUE is a leading provider of as -sessment services to regulatory agencies and national associations and offers licensing and credentialing support services to associations, state agencies, and private industry. Your examination(s) will be administered on an electronic testing system. The testing system eliminates the use of paper, pencil and answer sheets. Candidates input their responses by entering the answer of their choice (A, B, C or D). Before you begin the examination, you will have an opportunity to go through a tutorial on the computer. The computer is very simple to operate; it should only take you a few minutes to learn to use it. The screen features a variety of function buttons to help candidates navigate through the examination. The func -tion buttons are located in the same position throughout the test.Candidates can mark a question for review, move forward or backward one question at a time, or move to a The summary screen, which can be accessed at any time during the examination, shows candidates the following: Number of questions answered Number of questions unanswered and/or skipped Time remaining for the examination 2I. INTRODUCTION
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To locate a Pearson VUE Test Center near you, as well as to check that site™s availability, use this link to view the vendor web site for more details. MAKING YOUR TEST RESERVATIONS TELEPHONE OR INTERNET RESERVATIONS Call: 1-888-204-6289 and a Pearson VUE Customer Care Associate will help you to select a convenient exam -ination date and location and answer any question you may have. The best times to call for a reservation are: Monday Œ Friday (8am Œ 11pm), Saturday (8am Œ 5pm), and Sunday (10am Œ 4pm). You may register as far in advance as you would like to test based on seat availability. However, it is strongly recommended you call Candidates may register via the Internet. You may submit a request via the Internet to Pearson VUE website at http://www.PearsonVUE.com twenty-four (24) hours a day, seven (7) days a week, provided you include a cred – to you via email. Examination reservations may be canceled or changed via the Internet. Please have the following information when you call to make an examination reservation: 3II. TESTING LOCATIONS AND RESERVATIONS
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III. THE EXAMINATION CONTENT OVERVIEW The Broker content overview shall be based upon a knowledge, understanding and application of real estate law, real estate mathematics.This is a closed book examination. Reference materials will not be allowed in the test room at the time of the examination. No written material other than that issued at the time of testing will be permitted.CONTENT OUTLINE The Broker™s licensure examination consists of one hundred multiple choice questions. Candidates are given a total of three and half hours to complete the examination. The examination consists of questions covering twelve content areas. In addition, candidates must be familiar with the Closing Disclosure Documents (HUD-1), in order to answer closing related questions. The content areas, descriptions of each content area, and the percentage of the examination that covers each of these content areas are as follows.4I. Real Estate Brokerage Business (43%) A. Licensure Requirements 1. Application Process 2. Mutual Recognition 3. Experience Requirements 4. Education Requirements 5. Examination 6. Continuing Education Requirements 7. Sales Person License Requirements 8. Renewal 9. Brokerage Entities Registration vs. Licensure 10. Multiple Licenses vs. Group License 11. Change of Address 12. Exemptions B. Brokerage Entities 1. Registered a. Sole Proprietorship b. General Partnership c. Limited Partnership d. Limited Liability Partnership e. Corporations 2. Non-Registered 3. Trade Names c. Entrance Signs d. ADA 5. Advertising a. Requirements 1. Broker/Agent 2. False/Misleading b. Blind Ads c. Fair Housing d. Telephone Solicitation e. Rental Lists C. Brokerage Ownership, Management, and Super- vision 1. Capital and Start-up Costs 2. Projecting Income and Expenses a. Projections b. Income Sources c. Projecting Operating Expenses 3. Tax Considerations a. Cash vs. Accrual Method b. IRS Concerns Regarding Employees vs. Independent Contractors 4. Personnel Issues a. Unlicensed Activities b. Licensed Activities 5. Recruitment 6. Application Process a. Forms 7. Employment Arrangements and Agreements 8. Compensation of Sales Associates 9. Policy and Procedures Manual 10. Broker/Sales Manager Responsibilities a. Training and Supervision of Sales Associate b. Sales Meetings D. Escrow Management 1. Establishing 2. Overall Rules 3. Conversion of Funds
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5 4. Commingling 5. Earnest Money 6. Broker Held 7. Record Keeping Requirements 8. Disputes (EDO, Arbitration, Mediation, Litigation) 9. Title Company and Attorney Held 10. Brokers Commission a. Antitrust Laws b. Liens 11. Property Management Deposits and Advance Rent 12. Condominiums E. Florida Law and FREC Rules 1. Inspections a. Records, Documentation, and Compliance b. Escrow 3. Investigator Authorities 4. Compliance Process a. Filing Complaint b. Investigation c. Probable Cause Panel d. Formal Compliant e. Final Order 5. Violations and Penalties a. Grounds for Denial b. Grounds for Suspension c. Grounds for Revocation d. Types of Penalties 1. Administrative 2. Civil 3. Criminal 4. Unlicensed Activity 6. Disciplinary Guidelines 7. Recovery FundII. Valuing Real Property (9%) A. Appraisal a. USPAP b. Basic Appraisal Concepts 2. Approaches a. Sales Comparison b. Cost-Depreciation 3. Comparative Market Analysis a. Broker Price Opinion 4. Business Valuation III. Listing and Selling Real Property (6%) A. Concept of Agency 1. Broker Duties B. Disclosure Requirements at First Contact 1. Residential Sales 2. Exemptions C. Transaction Broker Relationship D. Single Agent to Transaction Broker Transition E. No Brokerage Relationship F. Single Agent Relationship G. Designated Salesperson H. Terminating Broker Relationship I. Legal Œ Titles, Deeds, etc. IV. Contracts (11%) A. Listing Agreements B. Entitlement to Commission 1. Referral Fees 2. Commercial Lien Law C. Purchase and Sale Contract 2. Statute of Frauds D. Documents for Listing Contract E. Real Estate Contracts F. Disclosures G. Other ContractsV. Financing (4%) A. Mortgage Concepts and Practices B. Mortgage Loans 1. Conventional 2. Governmental, Insured, or Guaranteed 3. Other Mortgage Types C. Other Techniques D. Federal Consumer Protection Legislation E. Broker™s Role 1. Mortgage Fraud F. Finance Math VI. Closing Transactions (12%) A. Broker™s Role B. Closing Steps 1. Deeds 2. Titles C. Understanding Closing Disclosures D. Prorating ProceduresVII. Federal Income Tax Laws (5%) A. Principal Residence B. Sale of Principal Residence C. Investment Operations
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72. How much is the Buyer™s new mortgage and where is this information placed on the Closing Disclosure (HUD-1)? A. $136,000 Credit to the Buyer; Page Three B. $136,000 Debit to the Buyer; Page Two C. $158,100 Credit to the Buyer; Page Two D. $158,100 Credit to the Seller; Page Three ANSWER: A 3. The binder deposit on the Closing Disclosure (HUD-1) is A. $11,900 Debit to the Seller; Page Three. B. $11,900 Credit to the Buyer; Page Two. C. $3,000 Debit to the Buyer; Page Two. D. $3,000 Credit to the Buyer; Page Three. ANSWER: D 4. Where is the sales price placed on the Closing Disclosure (HUD-1)? A. Page Three, Debit to the Seller only B. Page Three, Credit to the Seller, Debit to Buyer C. Page Three, Debit to the Seller, Credit to Buyer D. Page Two, Credit to the Seller only ANSWER: BPILOT TESTING The Examination may contain a small number of experimental or fipilot testfl questions. The purpose of in -cluding pilot test questions within the examination is to expand and improve the bank of questions from which future examinations will be drawn. This is a common practice used by many national and state examination programs and is a critical step in ensuring the continued reliability and validity of these examinations.In the event that pilot test questions are included within the examination, these questions will NOT be counted when computing scores. Additional time will be given for answering the pilot test questions. The time allowed for testing has been evaluated to ensure there is adequate time for completing test questions and pilot questions. them, and the results would not be valid. The development of a good examination requires accurate candidate response information for the pilot questions.TEST TAKING ADVICE of passing the examination. necessary adjustments.
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8 You can note the questions you wish to reconsider on the computer testing system and return to them later. wait until the examination is over to inform someone about a problem.SUPPLIES It is expressly understood by each candidate that the State of Florida, and/or the Department of Business and Professional Regulation, and the Department™s staff hereby assume absolutely no liability of any nature whatso -ever for any items of the candidate™s personal property which may have been brought to, left at, or left outside the examination site. It is further understood that the candidate™s admission to the examination shall hereby constitute the candidate™s full, knowing, and complete waiver of any and all such claims against the State of Florida, and/or the Depart-ment of Business and Professional Regulation, and the Department™s staff. What to bring:All candidates will be required to bring the following items to the testing center on the day of the examination: vendor. Student or employment I.D. cards and photo bearing credit cards are not Candidates will not be admitted -tion. Pre-licensing Education Completion. If the original was mailed to the Division of Real Estate with the authori-keypad. Standard (nonprinting) four-function electronic calculators are recommended for the Instructor exam – – cannot be an information storage device, such as a PDA, Palm Pilot, or word processing device. -ting the use of foreign language translation dictionaries during the examination. Translation dictionaries shall -tions of words, or handwritten notes may NOT be used. phrase translations, an alphabetic keypad, have mathematical formulas and stored memory capabilities. Should these electronic translation devices have these capabilities; these devices WILL be rejected by the Proctor or
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Test Center Manager in NOT being suitable for the test site environment. order to maintain security and to ensure fairness to all candidates, candidates are limited to the use of a single dictionary. -ucation and Testing, Examination Administration Unit at 850.488.5952, or you may Fax your question to 850.922.1228.What not to bring:Department™s representative at the examination site. The following items are NOT allowed in the examination room: that they will NOT sound or go off during the examination administration) REFERENCESThe following list of Florida Law and Rules and Federal Regulations, may be of use candidates preparing for the examination. PRINTABLE LAW BOOKLET This booklet is not a study guide and is in no way intended to replace your study material which is provided by your approved Real Estate Instructor and School. This booklet is intended to provide a direct access to Chapter 475, Florida Statutes, Part I and 61J2, Florida Administrative Code. This booklet is updated continually, but please reference the Florida Statutes and Administrative Code website before reviewing this booklet. FLORIDA STATUTES andFLORIDA ADMINISTRATIVE CODE FLORIDA STATUTES: FLORIDA ADMINISTRATIVE CODE: 9
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1. Chapter 475, Part I, Florida Statutes, Real Estate Brokers, Sales Associates, and Schools 2. Chapter 455, Florida Statutes: Business and Professional Regulation: General Provisions3. Chapter 61J2, F.A.C., Division of Real Estate, Florida Real Estate Commission (FREC) 5. Chapter 83, Florida Statutes: Landlord and Tenant Œ Nonresidential Tenancies, Residential Tenancies, and Self-Service Storage Space6. Chapter 95, Florida Statutes: Limitations: Limitations of Actions; Adverse Possession 7. Chapter 120, Florida Statutes: Administrative Procedure Act 8. Chapter 163, Florida Statutes: Intergovernmental Programs 9. Chapter 173, Florida Statutes: Foreclosure of Municipal Tax and Special Assessment Liens 10. Chapter 193, Florida Statutes: Assessments (Florida Green Belt Law of 1959) 11. Chapter 196, Florida Statutes: Exemptions (Homestead Exemptions, etc.)12. Chapter 197, Florida Statutes: Tax Collections, Sales and Liens 13. Chapter 201, Florida Statutes: Excise Tax on Documents 14. Chapter 215, Florida Statutes: Financial Matters: General Provisions15. Chapter 553, Florida Statutes: Building Construction Standards16. Chapter 542, Florida Statutes: Combinations Restricting Trade or Commerce 17. Chapter 605, Florida Statutes: Limited Liability Companies18. Chapter 607, Florida Statutes: Corporations19. Chapter 609, Florida Statutes: Common Law Declarations of Trust 22. Chapter 620, Florida Statutes: Partnership Laws23. Chapter 621, Florida Statutes: Professional Service Corporations and Limited Liability Companies24. Chapter 673, Florida Statutes: Uniform Commercial Code: Negotiable Instruments25. Chapter 689, Florida Statutes: Real and Personal Property: Conveyances of Land and Declarations of Trust 26. Chapter 695, Florida Statutes: Record of Conveyances of Real Estate27. Chapter 701, Florida Statutes: Assignment and Cancellation of Mortgages 28. Chapter 712, Florida Statutes: Marketable Record of Titles to Real Property 29. Chapter 718, Florida Statutes: Condominiums30. Chapter 719, Florida Statutes: Cooperatives31. Chapter 720, Florida Statutes: Homeowners™ Associations 32. Chapter 721, Florida Statutes: Vacation and Timeshare Plans 33. Chapter 725, Florida Statutes: Unenforceable Contracts34. Chapter 726, Florida Statutes: Fraudulent Transfers 35. Chapter 727, Florida Statutes: General Assignments 36. Chapter 732, Florida Statutes: Probate Code: Intestate Succession and Wills 37. Chapter 733, Florida Statutes: Probate Code: Administration of Estates 38. Chapter 760, Florida Statutes: Florida Civil Rights39. Chapter 865, Section 865.09: Florida™s Fictitious Name Act 10
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