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|

Purchase Money Mortgage on the Florida Real Estate State Exam

Who takes back mortgage in a purchase money mortgage (PMM)?

  1. Seller
  2. Buyer
  3. FHA
  4. Fannie Mae

 

A few weeks ago, a student told me this was on the Florida real estate sales associate state exam.  A purchase money mortgage is when the seller holds the mortgage, or when the seller takes back the mortgage, so the answer is A.

This concept is pretty foreign to a lot of people.  Back in the good old days, this was how people always bought property.  It still happens today, but it’s not as common.

Let’s say you own a house free and clear.  I come along and want to buy it for $100,000.  I don’t have that much money, but I do have $30,000.  I ask you to hold the mortgage.  You deed the property to me, so I now own the property.  But you are holding the mortgage.  You are acting as the bank.  I send you a payment every month.  If I don’t make the payments, you can have the house foreclosed on.  You do everything the bank would do.  That’s called a purchase money mortgage – when the vendor is the lender.

Real life application: Let’s say your buyer finds the home of her dreams for $150,000.  The bank is going to give her $100,000.  She has $30,000 cash.  So she’s $20,000 short.  Ask the seller to hold a $20,000 purchase money mortgage.

By |2019-09-06T14:25:07-04:00September 6th, 2019|

Florida State Exam Practice Question – What’s the Difference Between Joint Property and Separate Property?

This is a question that is something you might see on the Florida real estate state sales associate exam.  Not this exact question, of course – I made this one up.  But be sure you know this concept.  Here we go…

Ethel’s uncle dies and leaves all of his property to Ethel.  Ethel is married to Wilbur.  This property is considered:

  1. chattel
  2. joint property
  3. separate property
  4. homestead property

Read the question and pick an answer before you read my answer.

Chattel is personal property, so that is definitely not it.  There is also nothing that indicates it is homestead property.  For all we know, this is a $10 million shopping mall.  So, D is out.  That leaves B and C.

Separate property is property that is acquired before the marriage or property that is acquired during the marriage through inheritance or gift.  So, if one of them owned this property before the marriage, it would be separate.  If they bought it during the marriage, it would be joint because it was acquired during the marriage.  Since they didn’t buy this property, Ethel inherited the property, it is separate even though they are married.  So the correct answer is C.

If you didn’t know the answer to this, you might want to take a weekend state exam review class at Demetree School of Real Estate.  If that’s you, check out the calendar and give me a call.

 

Please note that I, Karen Climer, have no affiliation with Climer School of Real Estate.  My father, Ron Climer, sold that school in 2014.  Since that time, I have had no affiliation with that school.  If you are looking for me, you will find me at Demetree School of Real Estate.

By |2021-08-24T15:12:16-04:00July 13th, 2019|

A Practice Exam Question About Terminating The Listing Contract

Here’s a practice question that is similar to something you might see on the Florida Real Estate Sales Associate Exam…

Jones lists his property with Broker Bob on July 1. On July 15, Jones filed bankruptcy. On July 25, Broker Bob found a buyer who was ready, willing, and able to purchase the property at full price. Is Broker Bob owed a commission?

a. Yes, if the bankruptcy court requires it.

b. Yes, because the listing was an exclusive agency listing.

c. No, because it was not a single agency relationship.

d. No, because the listing contract has been terminated.

Bankruptcy of either the seller or the broker terminates the listing contract, so the correct answer is D.

If you need any help with the state exam, or are looking for a real estate class (I have one coming up!), give me a call at 407-456-3448. Also, check out my YouTube videos.

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 |2023-04-07T18:21:32-04:00February 15th, 2019|

Possibly The Oldest Question On The Florida Real Estate State Exam

I just posted a video about a question that is referred to in the real estate school business as the “bin question” or the “four-story building” question.  I don’t know how long this question has been on the exam, but I figure it’s been forever.  It was on the exam when I took it in 2002.  I talk to students all the time who say, “I had the bin question.  I nailed that one.”

They nailed it because we went over it in class.  Like anything else in life, it’s easy once you know how to do it.  Please don’t show up to the Florida real estate state exam without knowing how to do it.  This question could be the difference between a score of 74 and  75.  In other words, this question could be the difference between leaving the test with a license or leaving without a license.  Take a minute to check out the video.

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 |2021-08-25T14:31:16-04:00April 3rd, 2018|
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