FL Real Estate Missed Questions

What is the term multiple licenses?

A broker can be issued additional licenses in two or more capacities by requesting multiple. The broker must show it's for legitimate reasons.

Karl's license expired on Sept. 30, 2010. On Feb. 10, 2014 he wants to activate it again. Which is correct?

His license is null and void.

What is the housing expense ratio?

Housing expense ratio = Monthly PITI ÷ Monthly gross income $825 ÷ $4,100 = .201 or 20% housing expense ratio

What is the Fair Housing Act of 1968?

The fair housing act of 1968 prohibits discrimination based upon race, color, religion, sex, national origin, family status, or handicap

What is a group license?

A group license is a single real estate license that can be obtained if the sales associate or broker associate works for one owner-developer with affiliated organizations.

2. What is the function of a mortgage? (a) It conveys title to real property. (b) It secures the repayment of the debt. (c) It creates a personal pledge to repay a loan.(d) It creates a lien on the mortgagee's property.

A mortgage accompanies a note and is security for its repayment. A mortgage is the borrower's pledge of the mortgaged property to secure the repayment of the note. Reference: Chapter 12, Mortgage Theories and Documents Related to Loans, Mortgage

What is the approximate effective rate of interest (APR) if a mortgage loan is based on an interest rate of 5% per annum, and the lender charges 8 discount points? (a) 4% (b) 5.13% (c) 6% (d) 13%

A simple rule of thumb calculation is sometimes used to approximate the change in interest payment over the life of a loan as a result of the upfront payment of points. The rule of thumb is that for each point charged by the lender, the rate of interest increases approximately 1/8 percent.

Which of the following is an approved depository for the earnest money? A. A bank within the state of Florida' B. A stock brokerage firm C. A broker's personal checking account D. A safe in a real estate office

A. A bank within the state of Florida

Without specific authorization it is a violation for a sales associates except which of the following as a deposit? A. A post dated check B. Cash C. Specie (coin) D. Valuable consideration

A. A postdated check

All of the following are required to be displayed at a broker's office, EXCEPT: A. copies of each sales associates license B. A fair housing poster C. The proper sign on or about the entrance D. The license status of any broker's listed on the office sign.

A. Copies of each sales associates license

Broker Dan and broker Fred both have an open listing on Gail's home. Broker Dan showed Gail's home to customer Paula. Six months later broker Fred shows Gail's home to Paula and Paula buys it. Which is correct? A. Gail owes Fred. B. Gail owes Dan. C. Dan and Fred must both be compensated.

A. Gail owes Fred.

Which business structure holds title to land in its own name? A. Partnership B. Corporation Sole C. Syndicate D. Corporation for Profit

A. Partnership

What is the main purpose of regulation Z? A. Requires lenders to disclose the true cost of credit to consumers. B. Require lenders to disclose closing costs to buyer. C. Require brokers to disclose closing costs to buyers.

A. Required lenders to disclose the true cost of credit to consumers.

Which clause in a deed states that the grantor was in possession and has the right to sell the property? A. Seisin B. Granting C. Premises D. Habendum

A. Seisin

When moving from one branch office to another, what must a broker do? A. Send in the old branch office registration with a request for transfer B. Apply for and obtain a new registration for the new branch and pay the proper fee C. Change the address on his branch office registration certificate D. Be at least 5 miles from the main office.

A. Send in old branch office registration with a request for transfer.

Sandy works as a sales associate for a broker and has been asked to work weekends for a developer to sell new homes on commission. What must Sandy do to work for the developer? A. Transfer her license from the broker to the owner-developer B. Notify the broker where she can be found on weekends C. Contact the State and be issues a group license. D. Contact the state and be issued multiple licenses.

A. Transfer her license from broker to the owner-developer

What is the best definition for "escrow"? A. Holding something for someone else in trust B. Uncollected funds held as earnest money C. The brokers claim on earnest money D. Something of value held by an "interest" third party

A. holding something for someone else in trust

A sales associate licensed with a real estate brokerage corporation can be which of the following? A. An officer B. A stockholder C. A director D. An officer and a director

B. A stockholder A sales associate or broker associate may not be an officer or director in a real estate brokerage association. Anyone can be a stockholder.

A valid real estate sales contract requires all of the following except: A. An offer and acceptance B. A substantial earnest money deposit C. A written form D. A signature of all parties

B. A substantial earnest money deposit

60. A broker receives a kickback or referral fee from a title insurance company. This practice is: A. Legal B. A violation of RESPA C. Legal; however, not recommended D. Illegal; however, FREC will allow it to continue as long as the broker is active

B. A violation of RESPA

A broker sells a rental list to a prospective tenant for $200.in a written agreement, The broker states that the fee is nonrefundable this is: A. Legal because it was disclosed in advance B. Illegal under F.S. 475 C. Legal but not ethical D. Legal because the fee was less than $500

B. Illegal under F.S. 475 Can be fined up to 1,000 and one year imprisonment.

What is an actual notice? A. Recording the deed B. Possession of the property that can be seen and heard. C. Less valid than constructive notice D. Notarizing documents

B. Possession of the property that can be seen heard and seen.

Mrs. Murphy is a struggling small investor who owns a boarding house and rents rooms to tenants.which statement is correct? A. She may advertise to attract tenants of a particular race or religion B. She may refuse to rent to any tenant that she feels would be incompatible with existing borders. C. She cannot refuse to rent to a border that she feels may be incompatible D. Private owners are exempt from fair housing act

B. She may refuse to rent to any tenant that she feels would be incompatible with existing borders.

All of the following activities are exempt from the requirement to provide disclosures under the Brokerage Relationship Disclosure Act, EXCEPT: A. Sales staff at a new development center B. Showing property to a party that is not being represented C. An open house that does not involve eliciting confidential information, the execution of a contractual offer or an agreement for representation, or negotiations concerning price terms D. Responding to factual questions from a potential buyer

B. Showing property to a party that is not being represented

What type of advertising would a broker most likely use to sell a duplex? A. National B. Specific C. Institutional D. General

B. Specific

Which of the following statements is correct regarding a licensed broker associate who is with a real estate brokerage partnership? A. The broker associate may be a member of the partnership B. The broker associate may make earnest money deposits with the broker's permission C. The broker associate must hold an active broker's license. D. The broker associate may not provide real estate brokerage services to others.

B. The broker associate may make earnest money deposits with the broker's permission.

Complete the sentence. A deed must be: A. Notarized B. Witnessed C. Recorded D. Signed by the grantee

B. Witnessed

Once an offer is accepted and the escrow deposit is in the broker's account, the broker holds the deposit on behalf of which party or parties?

Both the buyer and the seller

Which of the following individuals must have a real estate license to perform the action specified? A. An attorney at law when performing his or her normal duties B. An attorney-in-fact when executing conveyances and contracts C. A salaried apartment manager who leases units for more than 1 year. D. A mobile home park manager leasing lots in the mobile home park

C. A salaried employee who leases units for more than 1 year. They are only exempt if the leases are less than one year.

All of the following businesses are required to file documents with the state, EXCEPT:' A. Corporation for profit B. Not-for-profit corporation C. Corporation sole D. Cooperative Association

C. Corporation Sole

Where are the rules of the Florida Real Estate Commission Found? A. F.S. 455 B. F.S. 475 C. F.A.C. 61J2 D. F.A.C. 62Q1 (chapter 3, DBPR)

C. F.A.C 61J2

Which statement is correct regarding a corporation sole? A. It can broker real estate deals. B. It allows title to go to heir of the clergy in place. C. It allows title to go to successor to the clergy in place. D. It acts like a corporation for profit.

C. It allows title to go to successor to the clergy in place.

Bill's license expired on Sept. 30, 2013. On Feb. 14, 2014, he wants to renew it. If it is not his first renewal, what must Bill do? A. Start over with a pre-license course B. Pay a late fee and complete two 14-hour continuing education classes C. Pay a late fee and complete 14 hours of continuing education D. Pay a late fee and complete 45 hours of post-license education

C. Pay a late fee and complete 14 hours of continuing education Licensee can remain in involuntary inactive for up to two years.

In which instance must the agency disclosure forms developed by the state be used? A. Commercial leasing B. Residential leasing C. Residential sales D. Residential auctions

C. Residential Sales

Ron and his wife each have have real estate license before he enters the military Ron is stationed in Washington D.C., and his wife accompanies him there. If they make their inactive: A. Only Ron is exempt from renewal requirements until 6 months after he is discharged. B. Only Ron is exempt from renewal requirements until 12 months after he is discharged. C. Ron and his wife are exempt renewal requirements until 6 months after Ron's discharge. D. Ron and his wife are exempt from renewal requirements until 12 month's after Ron's discharge.

C. Ron and his wife are exempt from renewal requirements until 6 months after Ron's discharge.

Real estate brokers usually represent customers as what type of agent? A. Universal B. General agent C. Special agent

C. Special agent

Who is the principal? A. The buyer B. The seller C. The one who engages the broker in a single agency relationship D. The one who pays the broker

C. The one who engages the broker in a single agency relationship

A sales associate wants to use a trade or fictitious name. Which statement applies: A. The name must be registered with the county clerk B. The name must be registered with FREC. C. This would violate F.S. 475 D. The name must be registered with the Secretary of State.

C. This would violate F.S. 475 No trade or fictitious name may be used by a sales associate. Sales associates must register under their true names. A broker can use a name but must register with the DBPR.

Title insurance is designed to protect against which of the following? A. All defects in title B. Missing documents C. Forged documents D. Known defects

C. forged documents Title defects can be failure to comply with local real estate document laws, discovery of claims or liens against the property that weren't acknowledged,

Broker Bill has been hired to rent Mrs. Brown's apartment building located in a large college town. Broker Bill quotes lower rents and deposits to females because he has found through experience that they will cause less trouble than males, and females will maintain their apartments in much better condition. This is: A. True and therefore not a problem B. A violation of the Civil Rights act of 1866 C. A violation of the Equal Rental Opportunity Act of 1972 D. A violation of the fair housing act of 1968.

D. A violation of the fair housing act of 1968.

A listing contract may be terminated in all of the following ways, EXCEPT: A. Cancellation of the contract B. Fulfillment of the contract C. Mutual abandonment of the contract D. Acceptance of an offer on the property

D. Acceptance of an offer on a property.

Three individuals decide to open a real estate brokerage office. Which statement best describes the legal requirements? A. Sales associates are not permitted to own stock in the entity. B. All sales associates, broker associates, and brokers who are registered with the firm must be either officers or directors. C. If a SA wishes to be an officer or director, their license must be placed on inactive status. D. At least one officer must be an active broker.

D. At least one officer must be an active broker.

An owner of land offers to open a listing to three Florida brokers. The brokers decide to cooperate on the sale and hold and auction as a means of selling. They retain a tobacco auctioneer from NC and pay $1,000 plus expenses to auction off the property. The auction is held, but the owner rejects all offers. Which statement best applies? A. The auctioneer has violated real estate license law. B. The brokers may have their licenses suspended. C. The owner is compelled to sell. D. Both a and b are correct.

D. Both a and b are correct. Appraising Buying Auctioning Renting Selling Advertising Leasing Exchanging

All of the following are exempt from F.S. 475, EXCEPT: A. Trustee for an estate B. Personal representatives for an estate C. Mortgage brokers engaged in financing D. Business brokers

D. Business brokers

Real estate brokerage commissions are based on which of the following? A. MLS rule B. Custom C. The seller's equity D. The actual sales price

D. The actual sales price

All of the following statements are true regarding brokers registered with a real estate brokerage corporation, EXCEPT: A. The broker may be a stockholder B. The broker has to be an officer or director. C. The broker does not have to be a resident of Florida or a citizen of the United States. D. The broker can be an active broker and officer in one corporation. and an inactive broker in another corporation.

D. The broker can be an active broker and officer in one corporation and an inactive broker in another corp.

Which of the following statements best describes the policy and procedures manual? A. They are maintained by all offices. B. They are a cause of arguments. D. They are useful in maintains good relations within a brokerage office.

D. They are useful in maintains good relations within a brokerage office. It provides guidance for sales associates and broker associates. Not all offices have them.

In the course of listing the seller's house, the sales associate noticed that minor repairs were necessary the sales associate suggested that the centers use ABC contractors, Inc. to handle repairs.ABC forwarded the sales associate a 10% referral fee.which statement applies? A. This is common in the industry and therefor legal B. This is illegal, as the referral fee should have been paid to the broker. C. This is unethical but legal. D. This is a violation of real estate license law.

D. This is a violation of real estate license law. Referral fees can only be paid to individuals who are licensed either by another state or foreign country but only if they are unlicensed. Section 8 of RESPA also prohibits brokers from giving or accepting a fee, kickback, or anything of value in exchange for a referral.

A broker sold an $85,000 house, charging the seller a 6% commission. Due to circumstances, the buyer defaulted and forfeited his deposit. Based on custom, how much should broker receive? A. $2,550 B. $3,400 C. $4,250 D. $5,100

IT IS TYPICAL TO DO A 50/50 split of DEPOSIT.

13. How was title taken if a seller remained solely liable for the balance of a mortgage loan subsequent to transfer of ownership? (a) Novation (b) Assumption (c) Subject to (d) Agreement for deed

If a mortgaged property is sold "subject to the mortgage", the new owner acquires ownership without assuming personal responsibility for the balance of the promissory note. The existing mortgage continues to use the property as security for the debt. When a property is sold subject to the mortgage, only the original borrower remains liable for the balance of the promissory note. The buyer acknowledges the existence of the mortgage. If the buyer should default on the mortgage, the lender would foreclose and the property would be sold to satisfy the balance due on the note.

If a property owner is foreclosed upon, and the foreclosure results in a sale price greater than the amount of the outstanding liens, the excess will likely be paid to which of the following? (a) The court (b) The mortgagee (c) The mortgagor (d) The Florida Real Estate Recovery Fund

If all lien holders have been paid from the proceeds of the foreclosure sale, any surplus funds remaining are paid to the mortgagor (borrower). Reference: Chapter 12, Default, Foreclosure Process

If a broker closes down his brokerage, can he give his listings away?

No, listings are not assignable.

How many employers may a sales associate or broker associate have at a time?

One registered employer at a time.

What are the bundle of rights?

The right of possession meaning righ to live The right to use property for any lawful purpose The right to encumber property, using it as security to borrow funds The right to enjoy property without interference The right to transfer property by sale or gift

10. What are the two ratios under which a borrower must qualify in order to receive a FHA insured mortgage loan? (a) Housing expense and monthly gross income ratios (b) Housing expense and total monthly obligations ratios (c) Gross income and total obligations ratios (d) Housing expense net ratio and total monthly obligations net ratio

To qualify for an FHA loan, a borrower must not exceed a housing expense ratio of 31% and a total obligations ratio of 43%. Reference: Chapter 12, Lender Risk, Income Ratios, FHA

What is the total obligation ratio?

Total obligations ratio = (Monthly PITI + Other monthly obligations) ÷ Monthly gross income

What is the premises clause?

also known as the granting clause, is the only legally necessary clause required in a deed. This clause names the parties, contains words of conveyance, states a consideration, includes the date of transfer, and provides legal description

What is the habendum clause?

to-have-and-to-hold clause. specifies the legal rights to be conveyed. The portion of the bundle of legal rights being conveyed is described in this clause, such as "fee simple forever"