Florida License Law
A Florida real estate licensee who also holds a mortgage broker license refers a real estate client to their own mortgage company without disclosing this relationship. This failure to disclose violates:
ARESPA only
BFlorida real estate license law only
CBoth RESPA and Florida license law✓ Correct
DNeither, since referring to a related business is common practice
Explanation
RESPA requires disclosure of affiliated business arrangements (AfBA) when referring clients to related businesses. Florida license law also requires disclosure of any financial interest the licensee has in businesses they recommend to clients.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
State-Specific Concepts
Broker SupervisionLicense Law
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