1- Neil recently obtained his Florida sales associates license. He then decides to open his own office and hire four sales associates to work under him. Neil and his four sales associates agree to split any commissions earned by the four associates 50/50. Has Neil violated any licensing laws?

A - Yes. As a sales associate himself, Neil is only permitted to take up to 25% of the commissions earned from other sales associates.

B - No. If a sales associate runs their own office, they are permitted by law to hire up to four sales associates to work under them.

C - Yes. Only licensed real estate brokers can open their own office and hire sales associates to work under them.

D - No. All of Neil's actions are permitted under state law.

2 - The real estate tax bill in Florida is a combination of ad valorem taxes and non-ad valorem assessments. A non-ad valorem assessment is a special assessment or service charge which is not based on the value of the property. Which of the following best describes the basis for ad valorem taxes?

A - Income value

B - Just value

C - Cost value

D - Replacement value

3 - Anthony is interested in becoming a licensed real estate professional in Florida. He knows that he must obtain his Florida real estate sales associate's license; however, in order to complete his license application, he must do which of the following?

A - Become a member of the National Association of Realtors.

B - He must first work as an assistant to a licensed Florida real estate broker.

C - Have a licensed Florida real estate broker employ him.

D - Have a licensed Florida real estate broker associate employ him.

4 - After an audit, the broker was charged with a violation of the Federal Fair Housing Act. What was the likely cause for the charge?

A - Failure to display an Equal Housing Opportunity Poster.

B - No records showing minorities buying homes through the brokerage.

C - Only one male sales associate on the company roster.

D - Inadequately signed handicapped parking places.

5 - If unauthorized practice of law is considered to be the practice of law by someone who has not been licensed to practice law, which of the following could present legal problems for a sales associate?

A - Offering an opinion on the title on a property.

B - Discussing a home value based upon comparables in the area.

C - Suggesting that the buyer contact an attorney to add clauses to the contract.

D - Offering to be with the buyer at the closing.

6 - Arthur recently selected a broker to sell his house. Arthur and the broker are now in the process of finalizing the listing agreement. How should Arthur determine how much he should pay the broker as a commission?

A - A listing broker is not entitled to a commission.

B - The commission must be between 3-6% of the sales price as per NAR guidelines.

C - Arthur must negotiate with the broker until both parties agree to a commission.

D - The commission must be set to 6% of the sales price as dictated by FREC.