Florida State Exam Practice Question – Fiduciary Duties

One of my YouTube fans recently called to say that she had passed.  She wanted clarification on this question:

Which statement best describes the fiduciary obligations of a sales associate who works for a broker?

  1. The sales associate has fiduciary obligations only to her broker.
  2. The sales associate has fiduciary obligations only to her own clients.
  3. The sales associate has fiduciary obligations to all clients of the brokerage firm.
  4. The sales associate has fiduciary obligations to the broker and all clients of the brokerage firm.

The best answer is D.  The sales associate works for the broker, so the sales associate has a fiduciary responsibility to the broker.  The clients belong to the broker, not the sales associate.  The sales associate is merely a subagent of the broker.  Therefore, the sales associate has a fiduciary obligation to all clients of the brokerage firm, not just the sales associate’s clients.

If you want some more questions that are similar to what is on the state exam (obviously, I don’t have a copy of the exam), feel free to join me in my state exam review class.

By |2023-10-19T10:30:19-04:00July 6th, 2020|

Real Estate Advertising As It Relates To The Florida Real Estate Exam

One of my relatives texted me the other day to ask if he had to put his broker’s license number on his business cards.  The short answer to this question is “no,” but I thought this would be a good time to remind everyone what you need to include in advertising and on signs.  There are a few questions about advertising on the state exam.

For the sign at the office entrance, you need the broker’s name, the trade name of the company (if there is one), and the words, “Licensed Real Estate Broker.”  This is the only time you have to use the name of the broker (the actual person’s name).  It’s also the only time where you need the exact phrase, “Licensed Real Estate Broker.”  There are no specific requirements related to the exact size or placement of the sign, but it must be visible as you are walking in the door.

Now let’s talk about advertising, which is what my relative was asking me about.   Advertising includes business signs, yard signs, newspaper ads, internet ads, t-shirts, pencils, TV ads, billboards, and so much more.  Basically, advertising is anything you are using to promote your business.  There are specific rules for team advertising that I am not going to get into.  Team advertising is not in the FREC Course 1 syllabus, which means it’s not on the sales associate state exam.  However, if you are on a team and are looking for real life information, it can be found in Chapter 61J2-10.026 F.A.C.

Back to individual (not team) advertising … all advertising must include the name of the real estate brokerage (the company name, not the person’s name).  That’s the only thing that has to be there.  Now, I would assume you want to put your own name in the ad.  (It’s not required by FREC, but highly recommended if you want to be successful.)  If you do put your name, you have to put your full name as registered with the DBPR.  I remember someone who was disciplined by FREC because her ads said to “Call Shavonne ‘Rental Queen’.”  Well, obviously that is not her real name.  She could have said, “Call Shavonne ‘Rental Queen’ Edgecomb.”  Or she could have said, “Call Shavonne Edgecomb the Rental Queen.”  In either case, it’s clear what her legal name is.  Don’t forget, though, she also has to have the name of the brokerage firm on there as well.  By the way, this mistake cost the rental queen a $250 fine, six month probation, three hours of class, and the investigative costs of $108.90.

A few other things about advertising … there are no requirements to put a specific phone number, address, email or anything else on the advertisement.  In fact, I’d recommend that you put your personal cell phone and personal email, not the office phone.  There are no requirements to label anything.  For example, you do not need to indicate that the only number I listed is my cell phone number.

For website, everywhere there is a point of contact, you have to include the name of the brokerage firm.  A point of contact is any way you can contact the person.  For example, a phone number, an address, an email address, etc.  Anywhere you have one of those, you have to have the name of the individual agent or the name of the brokerage firm.

Lastly, all of the above information applies no matter who is paying for the advertising.  So if you are paying for your own business cards, you still have to put the name of the company.

If you have any questions about advertising, especially as it relates to the state exam, feel free to call me at 407-493-3974.

By |2020-02-20T17:28:50-05:00February 20th, 2020|

Florida Does Not Have A National Real Estate Test

Florida does not have a national test.  In many states, there are two portions of their real estate exam – state and national.  If you fail one portion, you only have to retake that portion.  That’s not the case in Florida.

In Florida, there is one test that covers both state and federal laws (plus principles, practices, and math!).  If you fail the test, you fail the test.  Why do I bring this up?

There are many online exam prep websites that sell a national practice test.  Don’t waste your money.  If you want to spend money on a practice test, I recommend this practice test bank or Linda Crawford’s Florida Real Estate Exam Manual.  If you don’t want that, be sure that the practice test you are using is from a school located in Florida.

I frequently get calls from people who spent money on a national exam prep program because the website said it would help you with the Florida test.  It will help you with a handful of questions, but that’s it.  Save your money and attend a FLORIDA-based review course, buy Linda Crawford’s FLORIDA real estate exam manual, or hire a FLORIDA instructor for tutoring.  That way, you can pass the FLORIDA test the first time you take it.

Please note that neither I, nor anyone in the Climer family, have any affiliation with Climer School of Real Estate.  My father, Ron Climer, sold Climer School of Real Estate in 2014.  You can find me at Demetree School of Real Estate.

By |2023-10-19T11:22:52-04:00March 18th, 2019|

Who Makes The Florida Real Estate Laws?

If you didn’t like a real estate law and wanted it changed, how would you go about that?  This isn’t just a theoretical question.  It’s something you need to know for the Florida real estate sales associate exam.

First, let’s talk about laws vs. rules.  We have to follow laws or statutes.  These include state laws like Chapter 475 F.S., Chapter 455 F.S., and federal laws such as the Fair Housing Act or Real Estate Settlement Procedures Act.  If it’s a state law, it has to be passed by the Florida Legislature.

We also have to follow rules such as Chapter 61J2, FAC.  For our purposes, we will say that a rule is easier to pass than laws, but the consequences are violating it aren’t as severe.  That’s not 100% true in every case, but I think it’s true enough for our purposes.  Rules are passed by the Florida Real Estate Commission (FREC).

So, if you want a law changed, you need to talk to the Florida Legislature.  If you want a rule changed, you talk to the FREC.  You can remember that “law” and “legislature” both start with L.  FREC has a “R” in it, so it goes with “rule”.

Please note that neither I, nor anyone in the Climer family, have any affiliation with Climer School of Real Estate.  My father, Ron Climer, sold Climer School of Real Estate in 2014.  You can find me at Demetree School of Real Estate

By |2021-08-25T14:30:14-04:00April 23rd, 2018|

Three Answers To Three Questions That You Might See On The Florida Real Estate Exam

There are three number laws that my students tell me are on the Florida real estate sales associate exam. I call them number laws because they are referred to by the chapter number in the statute, such as Chapter 475.  Some laws are referred to by their name like Fair Housing Act or Sherman-Clayton Anti-Trust Act.  There is probably a better way to describe them then number laws, but it works for me.

The ones we need to know are:

  • Chapter 475, F.S. – Florida Real Estate License Law
  • Chapter 455, F. S. – Rules of the Department of Business and Professional Regulation (DBPR).  These are the laws that apply to all professional licenses, not just real estate licenses.
  • Chapter 61J2, F.A.C. – Rules of the Florida Real Estate Commission (FREC)

You might just be inclined to make three flash cards right now – one card for each of these laws. You need to know the number and what the law is.

These will not be brain-buster questions.  They will be questions like:

The rules of the FREC are described in:

a. Chapter 455, F.S.
b. Chapter 475, F.S.
c. Chapter 61J2, F.A.C
d. Chapter 61Q2, F.A.C

Of course, the answer is C.  That is one easy point on the state exam.

If I can help you pass the Florida real estate exam, or if you are looking for a great career in real estate, please give me a call.  I’m at Demetree School of Real Estate.

Please note that neither I, nor anyone in the Climer family, have any affiliation with Climer School of Real Estate.  My father, Ron Climer, sold Climer School of Real Estate in 2014.  You can find me at Demetree School of Real Estate

 

By |2021-08-25T14:35:14-04:00March 15th, 2018|
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