FL RE Practice Test
Joey's agency agreement ended when the home he was going to purchase washed away in a flood. Peter terminated his agency agreement because he didn't trust his broker any longer. What can be said of Joey's and Peter's causes for agency termination? Neither Joey nor Peter experienced a form of agency termination that would be classified as "operation of law" or "acts of the parties." Both Joey and Peter experienced a form of agency termination that would be classified as "operation of law." Joey experienced an "operation of law" agency termination while Peter initiated an "acts of the parties" agency termination. Both Joey and Peter experienced a form of agency termination that would be classified as "acts of the parties."
Joey experienced an "operation of law" agency termination while Peter initiated an "acts of the parties" agency termination.
Which of these best describes a scenario that would lead to a construction lien? a mortgage created for the purpose of financing a home purchase a seller paid for work to be done a property prior to sale a worker has not been paid for work done on a property an owner refuses government work within property lines
a worker has not been paid for work done on a property
Two members of FREC are deliberating about whether or not there is enough evidence for a formal complaint to be filed against a license holder. These two members of FREC are: complaint analysts criminal court judges a probable-cause panel administrative law judges
a probable-cause panel
Raul is buying a home that is part of an HOA. His lender wants to verify that there are no liens from the HOA on the property. What would they most likely request from the HOA? an assumption clause an estoppel certificate a security instrument a promissory note
an estoppel certificate (add)
A married couple bought their primary residence three years ago for $150,000. Their closing costs when they bought the house were only $1,200. When they owned the house, they spent $9,600 on capital improvements. They sell the house for $322,000. The cost of the sale is $15,000. How much is their capital gain? Will they have to pay a capital gains tax on it? $146,200; no $307,000; no $160,800; yes $689,300; yes
$146,200; no
A building has a NOI of $250,000 and a cap rate of 4%. Using the income approach, what is the value of the building? $6,250,000 $5,000,000 $4,200,000 $2,450,000
$6,250,000
What is 0.546 in percentage form? 54.6% 5.46% 546% 0.546%
54.6%
Explain how goodwill affects the valuation of a business. Goodwill decreases a business's liquidation valuation. Goodwill increases a business's going concern valuation. A business's goodwill is immaterial to its value and would never be considered when putting a price on a business. The value of a business's goodwill is subtracted from the value of its tangible assets when creating a going concern valuation.
Goodwill increases a business's going concern valuation.
Kat's sales associate license ceases to be in force. What is the most likely cause for this license status? Kat voluntarily relinquished her license. Kat failed to renew her license before its expiration date. Kat's license was revoked by the FREC as a disciplinary measure. Kat changed her employing broker without notifying the FREC within 10 days.
Kat changed her employing broker without notifying the FREC within 10 days.
Determine which of the following scenarios involves a use variance. Developers leave room for a small park to separate office buildings from an apartment complex. Rudy has a legal nonconforming use to run his upholstery shop in a residential neighborhood. He sells the property to a pizza chain owner. Lucinda gets permission to open her coffee shop in a residential zone. Bryan's residential neighborhood is re-zoned to be a commercial zone, and he is forced to move out. Submit answer
Lucinda gets permission to open her coffee shop in a residential zone. (add)
Roy has a piece of land that Tom wants to develop into a mixed-use retail and residential building. Roy offers Tom a ground lease for 70 years. At the end of that 70 years, if the lease is not renewed, what happens to Tom's buildings? Roy has the option to purchase them at a fair price from Tom. They revert to Roy, along with the land. They will be rented out by Roy. They will be renovated according to Roy's wishes.
They revert to Roy, along with the land. (add)
A VA borrower used $60,000 of her entitlement on the purchase of a home. How would you calculate her remaining entitlement? by adding $60,000 to the $36,000 entitlement amount by subtracting $60,000 from the current maximum amount of entitlement by subtracting the secondary entitlement amount from primary entitlement amount by subtracting her down payment from $60,000
by subtracting $60,000 from the current maximum amount of entitlement
The law of agency that exists today in Florida is a blend of:
common, statutory, and administrative
A sales associate specializes in commercial sales. They should have expert knowledge of: schools in the area increasing cash flow governmental regulations affecting farms industrial subdivisions
increasing cash flow
Henrietta sells a property, reinvest the proceeds in a brand new property, and defers all capital gain taxes. This is called a(n): installment sale homestead exemption capital gain like-kind exchange
like-kind exchange
Aurora has no formal training in urban planning, but she volunteers her time to represent her community and make decisions about its future growth. Aurora is most likely a member of the: local planning board Florida Real Estate Commission Department of Economic Opportunity support staff
local planning board
A landlord of a large apartment complex is changing how they hold their tenants' advance rents and security deposits. By law, what is the landlord required to do? notify the tenants within seven days after the change The landlord is not required to do anything. notify the tenants within 15 days after the change notify the tenants within 30 days after the change
notify the tenants within 30 days after the change
Which of the following would NOT typically be prorated at closing? prepaid taxes interest on an assumed loan appraisal fees rents collected in advance
appraisal fees
A package mortgage is MOST likely to be utilized in the purchase of a(n): new home furnished condominium cooperative industrial property
furnished condominium
All of these are sources of funds in the primary mortgage market, except: commercial banks mortgage brokers loan originators savings and loan associations
mortgage brokers
You're doing a CMA on a five-bedroom, three-bath, 2,700-square-foot property. In your area, bedrooms are worth $20,000, baths $10,000, and square footage $200 per square foot. Your comp is a five-bedroom, four-bath, 2,900-square-foot home that recently sold for $540,000. What is the adjusted value of your comp? $590,000 $490,000 $510,000 $570,000
$490,000
Williams Family Farms purchased 4 sections of land in a township. How many acres did they buy? 4,000 1,920 2,560 400
2,560
Addie is buying a condo from a former owner. How long after receiving her condo documents and signing the contract does she have to cancel the contract? 3 days 25 days 10 days 15 days
3 days
Hank buys a home for $350,000. He took out a $280,000 mortgage to pay for the home. What is his LTV ratio? 87% 80% 90% 85%
80%
John and Barry have an agreement regarding their illegal drug trade. John obtains the drugs, Barry sells them, and they split the money. Is this an enforceable agreement? No, because it was an oral agreement. No, because it does not meet the essential element of a lawful objective. No, the time exceeds the Statute of Limitations. Yes, as long as John and Barry are both of legal age.
No, because it does not meet the essential element of a lawful objective.
Evaluate which of these properties is the LEAST liquid. a small vacation property in a popular location a four-million-square foot mixed-use upscale retail/residential center a 2,500-square-foot home with a rentable studio in the back a single-family home
a four-million-square foot mixed-use upscale retail/residential center
A homebuyer is taking out a loan to purchase a home in Florida. The lender has them sign a promissory note and what other document? a mortgage a trust deed a listing contact an estoppel letter
a mortgage (add)
Which of these liens is most likely to be junior lien? property tax lien mechanic's lien IRS tax lien mortgage lien
mechanic's lien
Josh owns an apartment complex downtown but lives in a smaller city three hours away. As an absentee owner, to maintain his property Josh likely utilizes a(n): orginator property manager appraiser attorney
property manager
Rashid grants a life estate to Lily. Upon Lily's death, Rashid regains ownership of the estate. What type of interest did Rashid hold in this estate? conditional interest determinable interest reversionary interest remainder interest
reversionary interest
When a lender forecloses on a property and the sale of the property is not enough to satisfy the loan balance, what can the lender do to recoup the rest of their money? seek a deficiency judgement seek an acceleration clause seek an equitable redemption seek an estoppel letter
seek a deficiency judgement (add)
Hila wants to remove her kitchen cabinets so she can take them with her when she moves. If Hila does this, she will be performing the act of: severance adoption annexation affixation
severance (add)
Maribel owns a condo that has exclusive use of a storage area in the basement. If a pipe breaks and the storage area floods, who is responsible for paying for repairs to the floor? Maribel and the HOA will split the cost Maribel the condo association or HOA the condo developer
the condo association or HOA
When would a lis pendens note be used? when a buyer is using a contract for deed when a lender wants to ensure there are no outstanding liens on a property when a seller is trying to sell quickly when a lender is beginning the process of a judicial foreclosure
when a lender is beginning the process of a judicial foreclosure (add)
Karl's house has assessed for $200,000. The millage rate for the school district is 9 mills; the millage rate for the city is 8.5 mills; and the millage rate for the county is 7.4 mills. How much does Karl, who is blind, owe for city and county property taxes? Round to the nearest dollar. $4,767 $2,377 $1,571 $1,4950
$2,377
A property cost $500,000 to build. It was built 20 years ago, and has 30 years of useful life remaining. The land on which it was built is valued at $100,000. What is the value of this property using the cost approach? $150,000 $600,000 $550,000 $400,000
$400,000 Calculate depreciation percentage: 20 divided by (20+30) which is 0.4. Calculate the property value: from the property cost ($500,000) subtract the depreciation amount (500,000 x 0.4) and add land value ($100,000). The math looks like 500,000 - 200,000 + 100,000. The property value is $400,000.
Bella took out an amortized loan of $240,000 with a 5% interest rate. Her monthly payment is $1,288.37. How much will she pay in interest on her second monthly payment? $998.80 $1,004.12 $1,000 $965.52
$998.80 The first month's interest payment was $1,000. So, only $288.37 went towards the principal. So, you just need to do a monthly interest calculation for the new principal of $239,711.63. That equals $998.80.
Laura is has submitted her application to be a sales associate. She is worried she omitted something important in her application. She wants to check and see how long the FREC has to contact her about errors and omissions. Where in the Florida statutes should she look for that information? Chapter 475 Chapter 20 Chapter 120 Chapter 455
Chapter 120
Ta-Nehisi is building a new home. National Flood Insurance Program regulations require him to build the house on an open foundation and at a certain elevation. Infer which zone the house is located in. A zone F zone S zone V zone
V zone
Yolanda is a homeowner with a mortgage. She paid it off, and good for her. What is the clause that requires the lender to remove the lien from her property, now that she's repaid her debt? acceleration clause escalation clause alienation clause satisfaction of mortgage clause
satisfaction of mortgage clause
Kaitlyn is applying for her Florida sales associate license. She qualifies as a low-income applicant. What fees will she be required to pay? the application fee and the initial license fee the application fee, the fingerprinting fee, and the exam fee the exam fee and the fingerprinting fee the initial license fee, the application fee, and the fingerprinting fee
the application fee, the fingerprinting fee, and the exam fee
Ivory, a seller, is nervous about her valuation product being accurate. She wants it to be highly regulated. As her agent, you tell her that in Florida: "BPOs must conform to USPAP standards." "CMAs must conform to USPAP standards." "All valuation products must conform to USPAP standards." "Appraisals must conform to USPAP standards."
"Appraisals must conform to USPAP standards."
Virginia leases a property through a percentage lease. Her base rent is $1,200. In June her property earns $5,000. Last month her rent was $3,000. 3% of her monthly sales go towards rent. Her operating expenses are $450. How much did Virginia pay for rent in June? $1,350 $6,500 $1,186.50 $1,290
$1,350
Johan has a monthly income of $5,000. He also has a monthly student loan payment of $500. The mortgage he wants to take out limits the borrower's debt-to-income ratio to 43%. What is the highest monthly payment Johan will be allowed? $1,430 $1,725 $1,650 $1,500
$1,650
Monty took out a mortgage loan for $266,800. He paid two points. What was the total cost of his points? $2,668 $26,680 $8004 $5,336
$5,336
A tax bill cost $10,092. For proration purposes, what is the monthly tax expense? $798 $841 $950 $876
$841
A property is sold for $350,000. The buyer has paid $12,000 as earnest money and is obtaining a 70% loan. Based on the information provided, how much additional cash will the buyer have to bring to the closing day? $105,000 $93,000 $140,000 $120,000
$93,000
Marianne, a sales associates, receives a license suspension for the maximum amount of time. For how long is her license suspended? 5 years 15 years 10 years 1 year
10 years (add) A license can be suspended for up to 10 years by FREC.
How many hours of CE are Florida licensees required to complete per renewal cycle, excluding the first renewal? 60 45 14 3
14
Assume that the following people are members of the Florida Real Estate Commission: 2 licensed brokers, ages 35 and 41 1 licensed sales associate, age 54 2 members of the public who have never been licensed, ages 26 and 47 Who should join the Commission in order to fulfill the membership requirements? 2 associate brokers of any age 1 additional sales associate of any age 1 additional broker or sales associate who is at least 55 years old 2 additional licensed brokers, one of whom must be at least 60 years old
2 additional licensed brokers, one of whom must be at least 60 years old (add) In order to fulfill the membership requirements, the FREC would need to add 2 additional licensed brokers. One of them must be at least 60 years old.
An agent made $15,000 on a $400,000 sale of a home. What was their commission rate? 4.25% 5.35% 2.67% 3.75%
3.75%
Bradley and Alejandra are sales associates. They are making paper brochures to advertise their brokerage. Bradley says they must include the brokerage's phone number, by law. Alejandra states they don't need to include it and can just provide the email address. Evaluate who is correct. Bradley is correct. It depends on the municipality's regulations. Alejandra is correct. Neither is correct.
Alejandra is correct. (add) In Florida, advertisements that are not internet advertisements do not need to include phone numbers.
Elisa is a real estate broker. She owns a duplex, rents out part of it, and lives in the other part. She routinely selects only couples without children, although she never advertises this bias. What is the BEST evaluation of Elisa's actions? As long as Elisa is not discriminating on the basis of race (which is NEVER allowed), she can select whichever tenants she wants. Because Elisa does not use discriminatory advertising, she has not violated the Fair Housing Act. Elisa is exempt from the Fair Housing Act. Elisa is a real estate license holder, so exemptions from the Fair Housing Act do not apply to her.
Elisa is a real estate license holder, so exemptions from the Fair Housing Act do not apply to her.
Evaluate which of these scenarios best illustrates positive leverage. Leander needs cash for unexpected expenses, but to get his investment out of his property quickly, he would have to sell the property for much less than it's worth. Louise pays a property manager to manager her investment property. Larry got a mortgage to purchase an investment property, but the cost of the loan is more than the profit from the investment. Leslie borrowed money to extend her investing power, increasing her profits.
Leslie borrowed money to extend her investing power, increasing her profits.
What is the main difference between how real and personal property are conveyed? Real property can be conveyed by oral contract; personal property requires a written contract. Real property is conveyed by deed; personal property is conveyed with a bill of sale. Real property is conveyed by lawyers; personal property can be conveyed by a broker or salesperson. Real property is conveyed as a fee simple estate; personal property is conveyed by a determinable estate.
Real property is conveyed by deed; personal property is conveyed with a bill of sale.
There has been a lot of new construction in Ace City. New apartment complexes have been opening all over town. Assuming that demand remains stable, infer the effect that this will have on rent prices. Rent rates won't change. Supply does not effect price; only demand affects price. Rent rates should go up in response to the increase in supply. Rent rates should go down now that there is more supply in relation to demand. Rent rates will be raised to make up for the for the renters who have switched to homeownership.
Rent rates should go down now that there is more supply in relation to demand.
Which of these describes a property held in severalty? Roy owns a condo that he rents to a tenant. Sarah co-owns a restaurant with her business partners. Louise is a general partner in a partnership that owns an office building. Egon and his brother have a lake house they both use.
Roy owns a condo that he rents to a tenant. (add) Ownership in severalty means sole ownership, so Roy is the owner in severalty.
When the price of real estate is high in a given market, what can you predict about supply and demand in that market? Supply and demand will both increase as the high price indicates a balanced market. Supply and demand will both decrease as the high prices stagnate economic activity. Supply will decrease as fewer developers will want to take on investment risks. Demand will increase as more buyer will want to buy before prices get any higher. Supply will increase as more sellers are motivated to fetch higher prices. Demand will decrease as fewer buyers are willing to pay high prices.
Supply will increase as more sellers are motivated to fetch higher prices. Demand will decrease as fewer buyers are willing to pay high prices. (add)
Which of the following BEST describes in what way the typical relationship between a real estate broker and their client is one of special agency? The broker fulfills their duties to the client, using their specialized education and skills. The duties of a broker require special consideration of the client's objectives. The broker takes special care to put the client's interests ahead of the other party. The authority given by the client is narrowly defined towards a single goal — the sale or purchase of property.
The authority given by the client is narrowly defined towards a single goal — the sale or purchase of property.
Carmela is part of an investment group that wants to purchase a property. She's debating between a large residential development and an office space. When you're laying out the pros and cons of each kind of property, what is one advantage of residential property you would share with her? Most large residential properties require very little hands-on management or upkeep, making their management costs very low. Residential property usually functions on ten-year leases (or longer), so there's very little vacancy risk. The residential property market is less volatile and more recession-proof, since people always have to have to have a place to live. Landlords don't have to pay property taxes on residential buildings.
The residential property market is less volatile and more recession-proof, since people always have to have to have a place to live.
A property that is being sold is exclusively identified on the sales contract as 24029 Wisteria St., Naples, FL 34101. Evaluate the validity of this as a legal description. This legal description is invalid because it does not cite latitude and longitude lines. This is an acceptable legal description for the property in the contract. This street address is not precise enough; a legal land description is needed. Abbreviations such as "St." and "FL" are permissible on real estate contracts.
This street address is not precise enough; a legal land description is needed.
Which of these accurately differentiates between zoning ordinances and building codes? Zoning regulates residential structures, whereas building codes only apply to commercial property. Zoning is legally enforceable, whereas building codes are recommendations that cannot be enforced. Zoning deals with the use of land, whereas building codes deal with building design and safety. Zoning is controlled by state agencies, whereas building codes are created exclusively at the national level.
Zoning deals with the use of land, whereas building codes deal with building design and safety.
Marco manages a mobile home park three miles from the beach. There are 15 homes in the park. Marco needs to make sure he has: a CAM license a broker's license hazard insurance worker's compensation insurance
a CAM license (add) If a license holder is managing a property with eleven or more units and an annual budget over $100,000, they need a CAM license. Apartment buildings may be an exception.
Baruch states in the deed that he will pay $350,000 for a property. The $350,000 is the: habendum clause consideration grantor acknowledgment
consideration
Buyer Pete insists that, in multiple conversations, the seller agreed to leave all kitchen appliances in the house. The seller doesn't recall it that way, and the contract makes no mention of this. Which of the following legal concepts will likely come into play here if this dispute becomes a lawsuit? ex post facto four corners caveat emptor caveat venditor
four corners (add)
Stevie receives an offer for his house. He takes part of that offer and adds new language. He sends it to the buyer. This revised offer: is a revoked offer and is considered a termination of the first offer is a counteroffer and is considered a new offer is a multiple offer and is considered a new offer is a contingent offer and is considered an extension of the first offer
is a counteroffer and is considered a new offer
Candi offers rental information for a fee. She does so casually and usually does not provide people with a receipt. Candi: only needs to provide a receipt if the fee exceeds $100 is legally obligated to provide a receipt has the right to not provide a receipt does not need to provide a receipt but should do so if a person asks
is legally obligated to provide a receipt (add)
John has an easement appurtenant that allows him to cross Sally's land. Sally is selling her property. When Sally's property sells, John will: hopefully be able to reason with the new owner have to go to court to keep his easement not have a problem as easements run with the land lose his right to use Sally's property
not have a problem as easements run with the land (add)
Harold and Naomi are both brokers who run separate offices. Their offices are in the same building and their signage does not make it clear they are separate businesses. Which of the following terms describes Harold and Naomi's relationship? ostensible partnership limited partnership liability partnership general partnership
ostensible partnership (add) An ostensible partnership is the appearance that a partnership exists between two parties even though no partnership was intentionally created.
Ella's house assessed for $91,000. The tax rate for city, county, and school taxes was 9.1 mills each. How much did she save in property taxes this year? $910 $2,047.50 $1,137.50 $227.50
$1,137.50 (add) Total exemptions x Tax rate = Property tax savings. Let's do school taxes first: $25,000 x 0.0091 = $227.50. For city and county, add the mills first to get 18.2 mills. $50,000 x 0.0182 = $910. $227.50 + $910 = $1,137.50
Marcel is a homeowner. His monthly principal and interest payment is $1,250. His annual insurance payment is $2,220. His annual property taxes are $4,200. Calculate his monthly PITI/mortgage payment. $1,785 $1,085 $1,600 $2,350
$1,785
A town has a total assessed value of $60,000,000 and total exemptions of $9,000,000. If the town's budget is $225,000, what is its tax rate? 2.5 mills 7.1 mills 4.4 mills 5.1 mills
4.4 mills (add)
Sarah's living room is 28' x 15'. About how many square feet of carpet will it take to cover the living room floor? 86 43 350 420
420
Which of the following is the BEST example of agency by ratification? A sales associate brings a buyer to an in-house transaction and receives a share of the commission on the sale. A licensee tells a buyer that his seller-client will accept the buyer's offer even though the licensee has yet to communicate the offer to the seller. A store manager honors a refund the assistant manager made the night before, even though the assistant manager did not have the authority to offer the refund. A client decides not to allow a licensee to show her home while her in-laws are visiting.
A store manager honors a refund the assistant manager made the night before, even though the assistant manager did not have the authority to offer the refund. (add)
Catherine, a broker, receives a notice of noncompliance from the DBPR. What does this mean? Catherine's violation was a first-time, minor offense. Catherine's violation was a second or subsequent minor offense. Catherine's violation was a criminal offense. Catherine's violation will earn her a fine of $100 to $500.
Catherine's violation was a first-time, minor offense.
A buyer offers in writing to purchase a house for $150,000, including the washer and dryer. The offer is set to expire on Monday at 9 a.m. The seller replies in writing on Thursday and accepts the $150,000 offer, but excludes the washer and dryer. On Friday, while the buyer is thinking this counteroffer over, the seller changes their mind and decides to accept the original offer, washer and dryer included. They state this in writing. What is the buyer obligated to do? The buyer is obligated to reject the seller's acceptance of their original offer. The buyer is not obligated to do anything. The buyer is obligated to buy the house, but not to the washer and dryer. The buyer can now go through with the sale, since their original offer has been accepted.
The buyer is not obligated to do anything. (add)
A landlord has not repaired a broken window in a tenant's unit, even though the lease states that all repairs must be made within a week. What should the tenant do? The tenant should deliver written or oral notice to the landlord, stating that if the landlord doesn't fix the window in two days, they will move out. The tenant should immediately move out. The tenant should deliver written notice to the landlord, stating that if the landlord doesn't fix the window in five days, they will move out. The tenant should deliver written notice to the landlord, stating that if the landlord doesn't fix the window in seven days, they will move out.
The tenant should deliver written notice to the landlord, stating that if the landlord doesn't fix the window in seven days, they will move out. (add)
Alana is 28, a Canadian citizen with the legal right to work in the U.S., a Florida resident, and has a G.E.D. Evaluate whether she meets the qualifications for a Florida sales associate license. No, she doesn't meet the qualifications because she has a G.E.D. instead of a high school diploma. No, she doesn't meet the qualifications because she is not a U.S. citizen. Yes, she meets the qualifications: she is at least 18, can work in the U.S., and has a high school diploma or the equivalent. Yes, she meets the qualifications: she is a Florida resident and at least 21.
Yes, she meets the qualifications: she is at least 18, can work in the U.S., and has a high school diploma or the equivalent.
Michael is a listing agent in an agency agreement where the seller has agreed to give him any money he receives in the sale of the house that is over $200,000. Which of the following BEST describes which agency agreement this is an example of? net listing open listing exclusive right-of-sale listing exclusive agency listing
net listing
Oliver is a member of the Florida Bar Association. He has lived in Florida for three years. Assuming he passes the background check and has his application accepted, what ELSE must he do to become a licensed sales associate in Florida? complete Course I and pass the state licensing exam pass only the state-specific portion of the licensing exam complete Course II and pass the state licensing exam pass the state licensing exam
pass the state licensing exam (add)
A ceiling fan, still in its original packaging and NOT attached to the ceiling, is an example of: real property an emblement an improvement personal property
personal property
A tenant moves out of her apartment. She has left the apartment in great shape, so the landlord intends to return her entire security deposit. The landlord needs to: return the security deposit within 45 days return the security deposit within 10 days return the security deposit within 15 days return the security deposit within 30 days
return the security deposit within 15 days (add)
Jim has bad credit. He is having trouble finding a lender to lend him a mortgage. He finally finds one that charges him a 10% interest rate. He takes it out. What kind of loan has Jim taken out? prime negatively amortized construction loan subprime
subprime
How do you find the value of a business's goodwill? add the value of the tangible and intangible assets add the value of the assets to the going concern value assess how much the goodwill could be sold for if it was separated from the rest of the business subtract the value of the tangible assets from the going concern value
subtract the value of the tangible assets from the going concern value (add to challenge questions)
A broker complied with an EDO. However, the seller sued the broker, and won. In the judgement, the broker was ordered to pay $7,000 (actual damages), $4,000 (punitive damages), and court costs ($3,000). The seller's attorney fees were $2,000. The broker's attorney fees were also $2,000. The broker made a claim to the Recovery Fund, which agreed to reimburse. What is the maximum amount the Fund will reimburse? $14,000 $12,000 $4,000 $18,000
$14,000 (add) The Recovery Fund would reimburse up to $14,000: $7,000 (actual damages) + courts costs ($3,000) + seller's attorney fees (because he won; $2,000) + broker's attorney fees ($2,000). Remember that the fund never covers punitive damages.
Darla is suing Arlo for specific performance. If she is successful, what will happen? Darla will be released from the contract without penalty. Arlo will have to refund Darla's earnest money. Arlo will have to pay punitive damages to Darla. Arlo will be required to perform according to the terms of the contract.
Arlo will be required to perform according to the terms of the contract.
If a licensee working with a party has the duty to account for all funds entrusted to the licensee, what do you know about the relationship the licensee has with the party? Based on the duty owed, you know that the licensee and the party are in a transaction broker relationship. Based on the duty owed, you know that the licensee and the party are in a single agent relationship. Based on the duty owed, you know that the licensee and the party are in a no brokerage relationship. Based on the duty owed, the licensee and the party could be in any one of the three authorized relationships in Florida.
Based on the duty owed, the licensee and the party could be in any one of the three authorized relationships in Florida.
Cammy takes out a fully-amortized, fixed-rate loan for her new vacation home on Lake Placid. When Cammy's mother asks her to fly to Singapore for their family vacation, Cammy tells her mother she doesn't know if she can afford it, as her loan payments could fluctuate. Analyze if Cammy is correct. Cammy IS correct; her loan payments could change at any time. Cammy IS correct; her loan payments will increase every month. Cammy is NOT correct; her loan payments may fluctuate, but they will not exceed a specified amount. Cammy is NOT correct; she has a fully-amortized, fixed-rate loan, so she knows exactly how much her monthly payments will be.
Cammy is NOT correct; she has a fully-amortized, fixed-rate loan, so she knows exactly how much her monthly payments will be.
Tim takes out a partially amortized loan. Fifteen years later, at the end of the loan's term, Tim is hit with a bill for upwards of $250,000. Where have Tim's monthly payments been going? Towards paying down the lender's fees. The balloon payment is what Tim owes in unpaid interest and principal. To the seller. Partially amortized loans pay a seller back in installments, with the last payment being higher. Mainly towards interest, with some amount going towards the principal. Towards principal. The balloon payment is made up of the unpaid interest.
Mainly towards interest, with some amount going towards the principal.
A complaint needs to meet two criteria for the DBPR to investigate it. These criteria are: The complaint is under judicial review and is not anonymous. The complaint concerns real estate and is not confidential. The complaint concerns a violation that happened in Florida and meets probable cause. The complaint is in writing and legally sufficient.
The complaint is in writing and legally sufficient. (add)
Jim and Bob are lifelong friends. They still live in the same town. Jim works for a print company and Bob is a real estate broker. A year ago, Jim told Bob that he'd sure love to move into a bigger house, but he'd need to either get a job with a new company that paid better or a promotion with his current company first. Today, during their weekly pickleball match, Jim excitedly informed Bob that he got his long-sought after promotion. Evaluate the details of this account and choose the statement that BEST explains all of the known reasons, if any, that implied agency could arise from this scenario. Because the parties know each other so well, there is no reason to think that implied agency might arise out of this scenario. The only reason why implied agency might arise out of this scenario is that the parties are lifelong friends. The two reasons why implied agency might come into play is that Jim and Bob have an ongoing friendship AND Jim's previously stated condition under which he would want to buy a new home has come to pass. The only reason why implied agency might arise out of this situation is that Jim's previously stated condition under which he would want to buy a new home has come to pass. Submit answer
The two reasons why implied agency might come into play is that Jim and Bob have an ongoing friendship AND Jim's previously stated condition under which he would want to buy a new home has come to pass.
The FREC has executive, quasi-judicial, and quasi-legislative powers. Select the FREC duty that would be categorized as an executive power. administering the Florida Real Estate Commission Education and Research Foundation enforcing a regulation that all licensees must follow imposing a penalty for a license law violation granting a sales associate license to an applicant
administering the Florida Real Estate Commission Education and Research Foundation (add)
Robert is a Florida broker operating as a fiduciary for Mia in a real estate transaction. When introducing Mia to others, Robert should refer to her as his: client or customer principal or customer customer or third party client or principal
client or principal
You're the listing agent meeting with the seller of a renovated 1969 home. The seller asks if they will need to give a lead-based disclosure to buyers, considering its recent renovation and great condition. You should tell the seller that a lead-based paint disclosure: is required for all residences built prior to 1978, regardless of renovations may or may not be required, based on the results of lead testing by the seller won't be required, since the home was renovated well after the lead paint ban went into effect won't be required, since the home was build after 1968
is required for all residences built prior to 1978, regardless of renovations
Graciela is a sales associate. She is quitting her job at Atlas Realty and moving to another brokerage. She can't wait to tell her new brokerage all the details about her most recent transaction. Graciela should remember: she must keep confidential information confidential even after her employment terminates depending on the stipulations of her employment contract, she may have to keep the information confidential though she can legally share any information after her employment terminates, it is unethical she can legally share any information after her employment terminates
she must keep confidential information confidential even after her employment terminates
Odonis' client is concerned about the marketability of their title. Odonis advises that if they want their title to be marketable, they need to focus on clearing up all: significant encumbrances and liens mortgages title plant limitations chains of title
significant encumbrances and liens
Buyer Martha enlisted Sales Associate Rachel to help her buy a home on the gulf coast of Florida. They spent some time on Friday discussing Martha's wish list as well as her ability to get financing. They have not signed any formal relationship agreement as of yet, but they did set a time to look at some properties over the weekend. Analyze what you now know about this scenario and select that answer that reflects what you believe to be the agency relationship that presently exists between Martha and Rachel. dual agency transaction broker single agent no brokerage
transaction broker
A building receives $100,000 in rental income in a year. The unoccupied units would bring in an additional $40,000 if they were occupied. What is the potential gross income of the building? $400,000 $60,000 $160,000 $140,000
$140,000
A former tenant receives written notification 15 days after their move-out that the landlord intends to use part of their security deposit to pay for damages caused by the tenant. How long does the tenant have to file an objection to the landlord's claim on the security deposit? 15 days after receipt of the landlord's notice 30 days after receipt of the landlord's notice 10 days after receipt of the landlord's notice 7 days after receipt of the landlord's notice
15 days after receipt of the landlord's notice (add)
How many monthly payments will be made in a 30-year mortgage? 90 540 180 360
360
Which of these people is a remainderman? Karen was granted a life estate. Her life is the measuring life. Soledad granted a life estate to her aunt, Sylvia. When Sylvia passes, the estate will revert to Soledad. Olivia is the measuring life of a life estate granted to her son, Eduardo. Alice will inherit a life estate once the measuring life has ended.
Alice will inherit a life estate once the measuring life has ended. (add)
Sera is an agent. She is helping a Muslim couple find a house. Sera keeps patting the woman's hijab and calling it "so cute!" The woman is not impressed, and upon return from the property tour, asks to speak to the managing broker. What should the broker do? The broker should have Sera apologize, but should also tell the Muslim woman that this was not actually a discriminatory act, since Sera meant well. The broker should reprimand Sera for discrimination. It doesn't matter if Sera meant it as a compliment. The broker should stand up for Sera, and tell the Muslim woman that Sera meant it as a compliment. The broker should reprimand Sera for discrimination, and reassign the couple to a Muslim agent.
The broker should reprimand Sera for discrimination. It doesn't matter if Sera meant it as a compliment. (add)
Choose the survey method that would result in this legal description: "Beginning at the intersection of the north boundary of Jolie Dr. and the east boundary of Midnight Rd.; then proceed due north along the east line of Midnight Rd. 120 ft. to its intersection with the center line of Deep River; then proceeding northeasterly 70 degrees along the center line of Deep Rive 400 ft. to the oak tree; then due south 300 ft. to the benchmark; then proceeding due west along the northern boundary of Jolie Dr. 300 feet, returning to the point of beginning." government survey system lot and block platted map system metes and bounds
metes and bounds
Train tracks for a new route were built right behind Joe's home. The train is noisy, and Joe has seen a decrease in the value of his property. What economic characteristic of land does this exemplify? modification scarcity illiquidity immobility
modification
Maria has entered into one of the three authorized relationships available in Florida residential real estate transactions. She received the required written disclosure that explains the duties owed to her. And the licensee working with her refers to her as a customer. Evaluate everything you know about Maria, the licensee, and how they relate to each other in order to deduce the authorized relationship they have entered into. designated agent single agent transaction broker no brokerage
no brokerage
Jaselle took out an amortized loan of $440,000 with a 6% interest rate. Her monthly payment is $2,638.02. How much will she pay in interest on her first monthly payment? $2,050 $2,200 $2,400 $1,200
$2,200
The sales associate Robin was working with to sell her condo died of a heart attack just two days after Robin signed a listing agreement and had her property publicized on the local multiple listings service. Is Robin now free to list her property with whomever she pleases? Please evaluate Robin's circumstances and choose the answer that BEST explains what her current status is and why. Upon the death of Robin's sales associate, Robin was free to list her property with whomever she wishes. Even though the listing agreement was between Robin and the deceased sales associate, Robin is still obligated to keep her listing with the sales associate's broker. Because agency relationships are created at the broker level, the death of Robin's sales associate does NOT release her from the listing agreement. Because the broker had originally assigned the deceased sales associate to work with Robin to begin with, the sales associate's death rendered the listing agreement void.
Because agency relationships are created at the broker level, the death of Robin's sales associate does NOT release her from the listing agreement. (add)
Florida is a lien-theory state, which means that, with traditional mortgage lending, a buyer (borrower) will hold deed to the property during the life of the loan while the lender places a lien on the property until the loan is paid in full. Carmen, however, has 20 years to go on the loan for her Del Ray Beach condo and she has equitable title only. Evaluate this scenario and choose the answer that BEST explains how this could be. Carmen's equity in the home is less than 5%, which allows the traditional lender to retain legal title to the property. Carmen has a seller-financed, installment sales contract loan. Carmen obtained financing from a lender out-of-state that is not subject to lien theory lending rules. Carmen signed an "equitable title" amendment to her traditional mortgage loan contract with the Florida lender.
Carmen has a seller-financed, installment sales contract loan.
Broker Casey entered into a single agent relationship with Jane to sell her 13 acre ranch. He did not provide her with a written brokerage relationship disclosure. Was that an error on his part? Evaluate what you know about the authorized brokerage relationship entered into, as well as the type of property being sold, to identify the correct response. Casey should have used a disclosure form because the sale of Jane's ranch would be considered a residential transaction. Casey was correct in not using a disclosure form because Jane's ranch qualified as nonresidential. Casey should have used a disclosure form because the sale of Jane's ranch would be considered a nonresidential transaction. Casey was correct because there are no circumstances involving single agent relationships that require a written disclosure.
Casey was correct in not using a disclosure form because Jane's ranch qualified as nonresidential.
Chapter 61J2 of the Florida Administrative Code contains FREC's regulations for license holders in Florida. These regulations are based on which portion of Florida's statutes? Chapter 455 Chapter 120 Chapter 20 Chapter 475
Chapter 475 (add) Chapter 475 is the law on which Chapter 61J2 of the F.A.C. is based. The statute is the law passed by the legislature, the administrative code is the set of regulations created by the FREC.
Jack's broker received three offers on Jack's cottage. The first was a full-price offer without any conditions or contingencies. The second offer was insulting, really... just a handful of beans. The third and last offer was a full-price offer, contingent on Jack not removing the beanstalk from the property when he moved out. Analyze the situation and choose the response that best describes the obligations of Jack's broker. Jack's broker is obligated to present all offers, regardless of how the broker feels about them. Jack's broker is obligated to present the two serious offers, but not the frivolous cottage-for-beans offer. Jack's broker is obligated to present the best offers only, as part of his duty to get Jack as much as possible for the cottage. Jack's broker is obligated to present all offers, in the exact order as they were received. Submit answer
Jack's broker is obligated to present all offers, regardless of how the broker feels about them.
A property owner decides to use a new property management company to manage the apartment complex she owns. What needs to happen? The new property management company needs to give a mandatory fair housing course to make sure all employees are knowledgeable before working with the tenants. The current property management company needs to write a check to the property owner that covers all of the security deposits and rents. The property owner will then transfer that money to the new property management company. The current property management company needs to transfer the tenants' security deposits and advance funds to the new property management company, along with an accounting of how much should be credited to each tenant. The new property management company needs to perform an audit of the tenants and decide if they will ask any of them to move at the end of the lease.
The current property management company needs to transfer the tenants' security deposits and advance funds to the new property management company, along with an accounting of how much should be credited to each tenant. (add)
When Toni signed an option to buy some undeveloped land outside of the city she lived in, she fully expected to be in a position build on it before the option window closed. Now, with six months remaining on her option, Toni sees that is no longer a possibility for her. Unfortunately, the seller has made it clear that they are not willing to return the option fee to Toni. So, short of purchasing the property (exercising the option), is there anything that Toni can do to keep from losing part or all of the option fee she paid? Toni can demand return of the option fee as unilateral contracts are not enforceable. Toni could assign the option to another individual in exchange for part or all of the fee she originally paid. There is nothing that Toni could do to keep from losing her option fee. In spite of what the seller said, Toni has the right, as the optionee, to demand return of the fee in full anytime before the option window closes.
Toni could assign the option to another individual in exchange for part or all of the fee she originally paid.
Todd buys an office building for $700,000 and puts $100,000 worth of work into it. His closing costs when he buys it are $9,000. Todd rents it out to tenants for six years, claiming $16,500 per year in depreciation. Six years on, Todd sells it for $2,200,000. It costs him $75,000 to sell it. What is his capital gain? $726,500 $82,500 $1,398,500 $2,125,000
$1,398,500 That is, $700,000 + $100,000 + $9,000 - ($16,500 x 6) = $726,500. Sales price - Selling costs = Realized gain, so $2,200,000 - $75,000 = $2,125,000. Back to the Capital gain formula: $2,125,000 - $726,500 = $1,398,500.
Jeremy has a monthly income of $4,000. His payment-to-income ratio is 20%. How much is his monthly payment? $550 $8,000 $800 $1,000
$800
A bank makes a loan at 2.31% interest with four points. What is their approximate yield? 2.81% 6.31% 1.81% 3.81%
2.81%
Analyze the following scenarios. Which does NOT violate the federal Fair Housing Act? An agent refuses to show an apartment to a transgender woman because she is uncomfortable with the woman's gender identity. An agent refuses to rent a house to a family with eight children. An agent backs out of a deal once he learns that his white customer has a Black wife. An agent suggests that a group of female roommates "would be more comfortable" in a certain part of town, and doesn't show them other properties.
An agent refuses to show an apartment to a transgender woman because she is uncomfortable with the woman's gender identity.
Seth has filed a certioari proceeding. This means that: Seth has been found delinquent in his taxes and is protesting the tax certificate. Seth has filed a lawsuit against the county property appraiser and tax collector in order to protest the assessment amount of his property. Seth has filed an appeal with the Value Adjustment Board, which the board accepted. Seth has not received a Truth in Millage notice.
Seth has filed a lawsuit against the county property appraiser and tax collector in order to protest the assessment amount of his property.
Fiona has been delinquent on her property taxes. What is the BEST description of what results? If Fiona doesn't pay back the taxes plus interest within seven years from the date the tax certificate was issued, the tax certificate's owner can apply for a tax deed. If the tax certificate's owner does not apply for a tax deed within two years from the date of certificate issuance, the certificate becomes null and void. There is a tax certificate auction in which investors bid by lowest interest rate. The maximum interest rate is 18%. A list of all delinquent properties gets published in a newspaper that circulates in the relevant county. This list comes out once a month in the newspaper, and must be printed twice before the tax certificate gets sold.
There is a tax certificate auction in which investors bid by lowest interest rate. The maximum interest rate is 18%.
Fred wants to live in the guest room of Barney's flagstone townhouse, so Barney verbally agrees to let Fred move in. Evaluate this scenario and choose the response that best explains whether or not a valid contract has been entered into. Without evidence of the exchange of consideration, this arrangement is not a valid contract. Because this agreement had a lawful objective, this is a valid contract. Because this arrangement was not put in writing, it is not a valid contract. Because agreements can be entered into orally, this is a valid contract.
Without evidence of the exchange of consideration, this arrangement is not a valid contract.
Farrah, a real estate agent, bought a condo. She did not act as a licensee during the transaction, but hired another licensee to represent her. During the course of the transaction, the agent representing her converted her funds. Farrah sued the agent and received a final judgement against him in civil court. He was unable to pay. Can Farrah make a claim to the Recovery Fund? Yes, Farrah can make a claim to the fund, because anyone can make a claim to the fund - licensees acting in that capacity as well as licensees not acting in that capacity. No, a real estate licensee can never make a claim to the fund. Yes, Farrah can make a claim to the fund, because she was not acting in her capacity as a licensee. No, buyers can never make a claim to the fund (only tenants or landlords can). Submit answer
Yes, Farrah can make a claim to the fund, because she was not acting in her capacity as a licensee.
An over-anxious license holder named Jenny knew her neighbor Tom was considering selling his house. Although Tom hadn't signed a representation agreement with Jenny, he also didn't object when Jenny brought clients by to see his place. Things got ugly when some buyers made an offer on Tom's house only to hear it really wasn't for sale. The buyers, who missed out on the opportunity to make an offer on another home because of their interest in Tom's place, sued both Tom and Jenny. Evaluate this scenario and choose the form of agency that might used as the legal basis for the buyers' lawsuit? gratuitous agency express agency agency by estoppel agency by ratification
agency by estoppel
What is a public record that contains the parcel number, owner's name, and assessed value of every parcel in the county? plat map appraisal record assessment roll government survey
assessment roll
A sales associate is working with a buyer and a seller who are arguing about how their escrowed money should be disbursed. The sales associate is unsure of what to do so they go to their broker and tell them about the buyer's and seller's opposing, unresolvable: escrow disbursement orders interpleader arguements litigation concerns conflicting demands
conflicting demands
Alana rents a condo from her landlord. She doesn't have an official lease, but she pays her landlord rent every month. Which of these terms best describes her estate in the condo? timeshare estate for years conventional life estate estate at will
estate at will
Olga has missed some mortgage payments and her home has gone into default. If she were to exercise her equity of redemption, what would she have to do? get permission from her lender to sell the property for less than the outstanding loan amount pay the missed payments, fees, and interest before the property is sold at auction deed the property over to the lender pay the loan in full before the property is sold at auction
pay the loan in full before the property is sold at auction
The statute of frauds, the statute of limitations, and the doctrine of laches all have the potential to: render unenforceable an otherwise valid contract extend the actionable deadlines of valid contracts enforce an otherwise invalid contract render invalid an otherwise valid contract
render unenforceable an otherwise valid contract
After a public hearing, an assisted living facility for the elderly is allowed to open in a residential zone. What type of variance is this an example of? spot zoning special exception area variance public variance
special exception
Which of these is a document that provides a detailed list of each party's expenses at closing? the Closing Disclosure agency agreement the credits and debits form Fannie Mae form 14-A
the Closing Disclosure
A tenant does not pay rent on the required day. The landlord sends them a written notice stating that they must pay the rent within a certain number of business days, or the landlord will start eviction proceedings. What is this number of days? seven one five three
three
When Dave's lease starts, he pays $2,100 in rent per month. Two years into his lease, he pays $3,000 per month. Dave's monthly payments have increased over time in specific increments. What kind of lease does Dave have? gross lease percentage lease variable lease net lease
variable lease
The Brokerage Relationship Disclosure Act does not specify a need for a written disclosure for a transaction broker. Why is that? because transaction brokers are used in nonresidential transactions because none of the authorized brokerage relationships require disclosures because the Act declares a presumption of transaction brokerage because the disclosure will automatically appear in a listing or buyer representation agreement
because the Act declares a presumption of transaction brokerage
