Candidate Information Booklet For The Real Estate Sales .

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Division of ProfessionsBureau of Education and TestingCandidate Services Examination2601 Blair Stone RoadTallahassee, FL 32399-0791Phone:850.488.5952 Fax 850.487.9757Ken Lawson, SecretaryRick Scott, GovernorCandidate Information Bookletfor theReal Estate Sales Associate ExaminationEffective July 1, 2016License Efficiently. Regulate Fairly.


I. INTRODUCTIONThis Candidate Information Booklet (CIB) is designed to introduce Computer Based Testing and provide candidate 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 assessment services to regulatory agencies and national associations and offers licensing and credentialing supportservices to associations, state agencies, and private industry.Your examination(s) will be administered on an electronic testing system. The testing system eliminates theuse 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 thecomputer. 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 function 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 aspecific question.The summary screen, which can be accessed at any time during the examination, shows candidates thefollowing: Number of questions answered Number of questions unanswered and/or skipped Time remaining for the examination2

II. TESTING LOCATIONS AND RESERVATIONSTo locate a Pearson VUE Test Center near you, as well as to check that site’s availability, use this link to viewthe vendor web site for more details.MAKING YOUR TEST RESERVATIONSCandidates that already know their candidate identification number are reminded that they do not have to waitfor a “Confirmation”/”Authorization” letter to make their reservation.TELEPHONE OR INTERNET RESERVATIONSCall: 1-888-204-6289 and a Pearson VUE Customer Care Associate will help you to select a convenient examination date and location and answer any question you may have. The best times to call for a reservation are:Monday – Friday (8am – 11pm), Saturday (8am – 5pm), and Sunday (10am – 4pm). You may register as farin advance as you would like to test based on seat availability. However, it is strongly recommended you callat least five (5) business days before the examination date desired since reservations are made on a first-come,first-served basis.Candidates may register via the Internet. You may submit a request via the Internet to Pearson VUE website at twenty-four (24) hours a day, seven (7) days a week, provided you include a credit card number, electronic check or voucher, and valid email address. A reservation confirmation will be returnedto 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: Your Authorization Notice Candidate Identification number listed on your authorization notice Your full name, address and a daytime telephone number The location of the test center you desire The name of the examination you will be taking Credit card number, check, or voucher3

III. THE EXAMINATIONCONTENT OVERVIEW AND OUTLINEThis is a closed book examination. Reference materials will not be allowed in the test room at the time of theexamination. No written material other than that issued at the time of testing will be permitted.The Sales Associate examination shall be based upon a knowledge, understanding and application of real estateprinciples and practices, real estate law, and real estate mathematics as provided in Chapter 475, Part I, FloridaStatutes, and Chapter 61J2, Florida Administrative Code. The examination consists of one hundred multiplechoice questions. Candidates are given a total of three and a half hours to complete the examination. The examination consists of questions covering nineteen content areas. The content areas, descriptions of each contentarea, and the percentage of the examination that covers each of these content areas are as follows:I. The Real Estate Business (1%)A. An Introduction to the Real Estate BusinessB. Real Estate BrokerageC. Development and ConstructionD. The Role of GovernmentE. Professional OrganizationsC. Misrepresentation and FraudD. Professional EthicsE. Sales Associate to BrokerV. Real Estate Brokerage Activities andProcedures (12%)A. Brokerage OfficesB. AdvertisingC. Escrow or Trust Accounts- General Rules1. Broker Held2. Attorney/Title Company HeldD. Rental Information and ListsE. Broker’s Commission1. Anti-Trust Laws2. Lien Law on Real Property3. Sales Associate Commissiona. Math-Commission4. Kickbacks5. Change of EmployerF. Types of Business Entities That May or May NotRegister1. Sole Proprietorship2. Partnerships3. Corporation4. LLC- Limited Liability CompanyG. Trade NamesH. Unlicensed AssistantsII. License Law and Qualifications forLicensure (6%)A. Historical Perspective of Florida Real EstateLicense LawB. Statutes and Rules Important to Real EstateC. General Licensing ProvisionsD. Sales Associate Qualifications for LicensureE. Post-Licensing EducationF. Continuing EducationG. Broker RequirementsH. Registration and LicensureI. Real Estate ServicesJ. Individuals Who Are Exempt from a RealEstate LicenseIII. Real Estate License Law andCommission Rules (2%)A. Florida Real Estate CommissionB. Department of Business and ProfessionalRegulation (DBPR)1. Real Estate RegulationVI. Violations of License Law, Penalties andProcedures (2%)A. Complaint Process- Seven StepsB. Violations and Penalties1. Grounds for Denial2. Grounds for Suspension3. Grounds for RevocationC. Types of PenaltiesD. Real Estate Recovery FundIV. Authorized Relationships, Duties andDisclosures (7%)A. Law of AgencyB. Brokerage Relationships in Florida1. Transaction Broker2. Single Agent3. No Brokerage Relationship4. Transition to Transaction Broker4

E. Legal Terms to KnowF. Disciplinary Guidelines3. General and Specific Liens4. Public/Government Restrictions5. Deed RestrictionsVII. Federal and State Laws Pertaining to Real Estate(4%)A. Federal and State Fair Housing LawB. Federal Laws Regarding Land and theEnvironmentC. Federal Laws Regarding Mortgage LendingD. Florida Residential Landlord and Tenant Act1. Security Deposit2. Advance Rentals3. ComminglingX. Legal Descriptions (5%)A. Purposes of Legal DescriptionsB. Types of Legal Descriptions1. Metes and Bounds2. Lot and Block3. Government Survey System4. Math- Legal DescriptionVIII. Property Rights: Estates, Tenancies;Condominiums, Cooperatives, CommunityDevelopment Districts, HomeownerAssociations, and Time-Sharing (8%)A. The Nature of Property1. Physical Components2. Personal PropertyB. General Property RightsC. Estate and Tenancies1. Fee Simple2. Life Estate3. Tenancy at Will4. Tenancy at Sufferance5. Tenancy in Common6. Joint Tenancy7. Tenancy by the EntiretiesD. Homestead1. Protection of Homestead2. Tax ExemptionE. Cooperatives, Condominiums, and TimeSharingXI. Real Estate Contracts (12%)A. Preparation of ContractsB. Essentials of a ContractC. Statute of FraudsD. Statute of LimitationsE. Transfer of Real PropertyF. Contract CategoriesG. Contract NegotiationH. Termination of ContractsI. Contracts Important to Real Estate1. Listing Contractsa. Brokers Compensation2. Buyer-Broker Agreement3. Option Contracts4. Sale and Purchase Contracts5. Mandatory Disclosuresa. Material Defectsb. Radon Gasc. Lead-based Paintd. Energy Efficiency Brochuree. Home Owners Associationf. Property Taxg. Building CodeIX. Titles, Deeds, and Ownership Restrictions (7%)A. Title to Real PropertyB. Acquiring Legal Title1. Voluntary Alienation2. Involuntary Alienation3. Types of Notice4. Condition of TitleC. Deeds1. Clauses- Deed2. Statutory Deeds3. Special Purpose DeedsD. Ownership Limitations and Restrictions1. Easements2. LeasesXII. Residential Mortgages (9%)A. Legal Theories of MortgagesB. Loan InstrumentsC. Mortgage ClausesD. Types of Mortgage Loans1. FHA2. VA3. ConventionalE. Methods of Purchasing Mortgaged PropertyF. Other Types of FinancingG. Qualifying the BuyerH. Math- FinanceXIII. Types of Mortgages and Sources ofFinancing (4%)5

A. The Mortgage Market and Money SupplyB. Federal Regulatory BodiesC. Primary Mortgage MarketD. Secondary Mortgage MarketE. Mortgage FeesD. Comparative Market Analysis (CMA)E. Broker Price Opinion (BPO)XVII. Real Estate Investments and BusinessOpportunity Brokerage (2%)A. Real Estate as an InvestmentB. Analyzing Investment PropertiesC. Assessment of RisksD. LeverageE. Business BrokerageXIV. Real Estate Related Computations and Closing ofTransactions (6%)A. Math- ComputationsB. Closing StatementsXV. Real Estate Markets and Analysis (1%)A. Characteristics of the Real Estate MarketXVIII. Taxes Affecting Real Estate (3%)A. City and County Property Taxes1. Math- TaxesB. Federal Income TaxesXVI. Real Estate Appraisal (8%)A. Appraisal Regulation/USPAPB. Market ValueXIX. Planning and Zoning (1%)C. Approaches to Estimating Real PropertyA. Local Planning AgencyValueB. The Planning Process1. Sales Comparison ApproachC. Zoning Laws and Code Enforcement2. Cost-Depreciation Approach3. Income Capitalization ApproachPILOT TESTINGThe Examination may contain a small number of experimental or “pilot test” questions. The purpose of including pilot test questions within the examination is to expand and improve the bank of questions from whichfuture examinations will be drawn. This is a common practice used by many national and state examinationprograms 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 countedwhen computing scores. Additional time will be given for answering the pilot test questions. The time allowedfor testing has been evaluated to ensure there is adequate time for completing test questions and pilot questions.Pilot questions are NOT identified. If the pilot questions were identified, many of the candidates would skipthem, and the results would not be valid. The development of a good examination requires accurate candidateresponse information for the pilot questions.TEST TAKING ADVICEThe advice offered here is presented primarily to help you demonstrate knowledge and maximize your chancesof passing the examination. Read all instructions carefully. For best results, pace yourself by periodically checking your progress. This will allow you to make anynecessary adjustments. Be sure to record an answer for each question, even the items about which you are not completely sure.You can note the questions you wish to reconsider on the computer testing system and return to themlater.6

Alert a Proctor or Test Center Manager to any problems that may occur during the examination. Do notwait until the examination is over to inform someone about a problem.SUPPLIESIt is expressly understood by each candidate that the State of Florida, and/or the Department of Business andProfessional Regulation, and the Department’s staff hereby assume absolutely no liability of any nature whatsoever for any items of the candidate’s personal property which may have been brought to, left at, or left outsidethe examination site.It is further understood that the candidate’s admission to the examination shall hereby constitute the candidate’sfull, knowing, and complete waiver of any and all such claims against the State of Florida, and/or the Department 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: Personal items are not permitted in the examination room. Any personal items such as toiletries, snacks, etcmust be encased in a clear plastic bag, no larger than 8” X 11” in size and kept in the locker provided by thevendor. Two forms of valid signature identification, one of which is government issued: driver’s license, stateidentification card, passport or military identification card. Student or employment I.D. cards and photobearing credit cards are not acceptable as picture bearing identification. Candidates will not be admittedwithout showing proper identification. Your name and address must match what was submitted on your application. Florida Division of Real Estate Authorization Notice (if received prior to testing), a copy of your Certificateof Pre-licensing Education Completion, Florida Bar Card and or Letter of Equivalency from Division of RealEstate. If the original was mailed to the Division of Real Estate or the Department of Business and ProfessionalRegulation with the authorization application, a photocopy of the certificate must be brought to the testing center each time you test. If the Certificate of Pre-licensure Education Completion is not presented at the testingcenter you will not gain access to the examination. Calculators are permitted if they are silent, hand-held, battery-operated, nonprinting, and without an alphabetickeypad. Standard (nonprinting) four-function electronic calculators are recommended for the Instructor examination; however, financial calculators with an alpha button are allowed. This includes but is not limited to financial calculators like HP 12,17,18,19; TX Inst. BA Series and Calculated Industries Qualifier Plus. The devicecannot be an information storage device, such as a PDA, Palm Pilot, or word processing device. To better serve our “English as a second language” candidates, the Bureau of Education and Testing is permitting the use of foreign language translation dictionaries during the examination. Translation dictionaries shallcontain word-for-word or phrase translations ONLY. Dictionaries that contain definitions of words, explanations of words, or handwritten notes may NOT be used. Electronic translation dictionaries are NOT recommended as most will have more than word-for-word orphrase translations, an alphabetic keypad, have mathematical formulas and stored memory capabilities. Shouldthese electronic translation devices have these capabilities; these devices WILL be rejected by the Proctor orTest Center Manager in NOT being suitable for the test site environment.7

Testing Center staff will inspect and approve each dictionary before it can be used during the examination. Inorder to maintain security and to ensure fairness to all candidates, candidates are limited to the use of a singledictionary. If you have any questions concerning acceptable translation dictionaries, please contact the Bureau of Education and Testing, Examination Administration Unit at 850.488.5952, or you may Fax your question to850.922.1228.What not to bring:Unauthorized supplies, those not listed in this Candidate Information Booklet, will be subject to removal by theDepartment’s representative at the examination site.The following items are NOT allowed in the examination room: Cameras, tape recorders, or computers Pagers, electronic transmitting devices, or telephones (watches with alarms or beepers should be set sothat they will NOT sound or go off during the examination administration) Any bound or loose leaf reference materials and notes Dictionary, thesaurus, or other spelling aids Canisters of mace, pepper spray, or other personal defense items Purses, briefcases, portfolios, fanny packs, or backpacksREFERENCESThe following list of Florida Law and Rules and Federal Regulations, may be of use candidates preparing forthe examination.PRINTABLE LAW /testing/booklets.htmlThis booklet is not a study guide and is in no way intended to replace your study material which is provided byyour approved Real Estate Instructor and School. This booklet is intended to provide a direct access to Chapter475, Florida Statutes, Part I and 61J2, Florida Administrative Code. This

J. Individuals Who Are Exempt from a Real Estate License III. Real Estate License Law and Commission Rules (2%) A. Florida Real Estate Commission B. Department of Business and Professional Regulation (DBPR) 1. Real Estate Regulation IV. Authorized Relationships, Duties and Disclosures (7%) A. Law of Agency

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