Missed Questions real estate exam
It's impossible to generalize the impact events in other areas have on local real estate values. Which characteristic of the real estate market does this refer to? A Immobility B Indestructibility C Slow to respond D Uniqueness
C Slow to respond
Which of the following features is most likely to be the cause of an adjustment to a comparable when preparing a CMA? A Busy street B Color C Demographics D Interest rates
A Busy street A busy street is less desirable for a residential property and more desirable for a commercial property. Other factors that could impact value are foreclosures, short sales, and cash-only sales.
If a seller asks a buyer to waive the inspection contingency, how could the transaction process transpire and still protect the buyer? A Buyer has inspection, buyer makes offer, seller accepts offer B Buyer makes offer, inspection performed, seller accepts offer C Buyer makes offer, seller accepts offer, closing occurs, inspection performed D Buyer makes offer, seller accepts offer, inspection performed
A Buyer has inspection, buyer makes offer, seller accepts offer If the seller won't accept an offer with an inspection contingency, a buyer could have a professional inspection done before submitting the offer and waive the inspection contingency if the buyer still wanted to make an offer.
What's the penalty for providing inaccurate or out-of-date rental lists to prospective tenants for a fee? A $1,000 or one year in prison and possible license suspension or revocation B As long as the list was provided in good faith, there is no penalty C Citation D One month's free rent
A $1,000 or one year in prison and possible license suspension or revocation
A buyer with a 20-year, $419,000 loan at a 4.25% interest rate has a monthly principal and interest payment totaling $2,594.59. If $1,483.95 is interest, how much is applied toward principal for that payment? A $1,110.64 B $1,246.10 C $1,578.57 D $1,780.75
A $1,110.64
A seller received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. The property is 400' deep. What was the price per front foot of the property? A $1,335.67 B $2000 C $363.64 D $598.95
A $1,335.67
Another closing appointment is approaching. These clients are purchasing a $160,000 home. If they have a down payment of 25% and the bank charges two points at closing, how much are they paying in points? A $2,400 B $2,450 C $2,475 D $3,200
A $2,400 First find the loan amount: $160,000 × .75 = $120,000. From there, multiply the loan amount by two points, or 2%: $120,000 × 0.02 = $2,400
The cost of a parcel of land is 50 cents per square foot. Candace wants to purchase one acre. How much will this cost? A $21,780 B $43,560 C $500 D $5,000
A $21,780
How many additional days are brokers given to provide the seller notice from the attorney holding the escrow funds that the deposit was either received or not received? A 10 days B 15 days C 20 days D 5 days
A 10 days
Borrowers obtaining a VA loan aren't required to have a down payment. However, they are required to pay _______. A A funding fee B Guarantee Insurance C Mortgage Insurance D VA tax
A A funding fee First-time homebuyers pay a funding fee of 2.15% (2.4% for those in the reserves or National Guard) if they don't have a down payment. This funding fee increases to 3.3% for second-time buyers.
Which of the following defines the term 'lis pendens'? A A legal notice that a lawsuit is pending that affects the title of a property. B A legal term that means "it depends" and requires a certain minimum sales price of the property. C A notice that notifies potential buyers of a pending lease. D A public listing and notice of foreclosure of a property.
A A legal notice that a lawsuit is pending that affects the title of a property.
Kenneth entered into a contract to sell his home to Valerie, who put down a $5,000 earnest money deposit. At the last minute, Valerie backed out of the deal and Kenneth kept the earnest deposit. This is an example of ______. A Accepting liquidated damages B Accepting partial performance C Suing for damages D Suing for specific performance
A Accepting liquidated damages
What do you get when you add the purchase price to closing expenses and the cost of any improvements during the time of ownership, then subtract any depreciation taken? A Adjusted basis B Basis C Capital gain D ROI
A Adjusted basis
What must a broker do to open a branch office in another state? A Agree to cooperate with any investigations under Florida statute. B Appear before a judge to plead the intent to operate outside the state C Franchise the brokerage. D Sign and date the registration application form for out-of-state branch offices.
A Agree to cooperate with any investigations under Florida statute.
Which condominium document creates the homeowners association? A Articles of incorporation B Bylaws C Declaration of condominium D FAQs
A Articles of incorporation
Roger is the owner/developer of the Seaside housing subdivision development. He employs Joan to help show and sell the units in his development. Joan receives a salary but no commission or extra compensation for these services. Which one of the following is a true statement about this situation? A As the owner/developer, Roger doesn't need a license, and his salaried employee, Joan, doesn't need a license, either, because she doesn't receive additional commission or compensation. B As the owner/developer, Roger doesn't need a license, but as his employee, Joan does need a license. C As the owner/developer, Roger needs a license, but as his salaried employee, Joan does not. D Both the owner/developer, Roger, and his salaried employee, Joan, are required to have a real estate license.
A As the owner/developer, Roger doesn't need a license, and his salaried employee, Joan, doesn't need a license, either, because she doesn't receive additional commission or compensation. Neither the owner/developer nor his salaried employee needs a real estate license to sell, buy, lease, or exchange the property of the owner/developer, as long as the employee doesn't receive a commission or compensation for real estate services.
Which document is used to fix an error in the title history? A Correction deed B Limited search C Title examination D Title report
A Correction deed
Which of the following is a leasehold estate for an unknown period of time, with either party permitted to terminate the lease by giving notice to the other? A Estate at will B Estate for years C Freehold estate D Life estate
A Estate at will
By when must a broker deposit escrow funds if the sales associate receives them on a Tuesday? Topic: Real Estate Brokerage Activities and Procedures Subtopic: Escrow or Trust Accounts - General Rules A Friday B The following Monday C The next day D Thursday
A Friday The sales associate would deliver the funds by the end of Wednesday and the broker would have three days to deposit the funds, with the first day being the day the funds are received by the broker from the sales associate.
Which of the following is true regarding the purchase of a condominium? A If the prospective buyer has the financial means to buy the condominium, neither the association nor the residents can block the purchase. B The condominium association can reject the prospective buyer's application for any reason. C The condominium residents can reject the prospective buyer's application for any reason. D The Uniform Condominium Act requires state approval of all purchases.
A If the prospective buyer has the financial means to buy the condominium, neither the association nor the residents can block the purchase.
Which of the following is NOT true regarding a cooperative board of directors? A It always consists of outside management companies. B It has to follow rules established in the bylaws. C It manages all financial and policy decisions of the corporation. D It receives all of the shareholders' maintenance fees.
A It always consists of outside management companies.
What is the total dollar amount that a borrower can borrow with an FHA-insured loan? A It depends on where the property is located B There is no limit C Up to 80% of the sales price D Up to the purchase price of the property
A It depends on where the property is located The FHA sets a limit on the amount that can be borrowed based on the average housing cost in the area as well as the property type (one, two, three, or four units, owner occupied).
Darrel loves working in the mortgage lending industry. On a daily basis, he works with multiple lenders to find and negotiate the best deals for his customers. What is Darrel's profession? A Mortgage banker B Mortgage broker C Mortgage servicer D Real estate investor
A Mortgage banker Darrel is a mortgage broker. Brokers work with multiple lenders and aren't tied to a specific suite of loan products, as mortgage bankers may be.
Which of these properties are exempt from the FIRREA federal appraisal guidelines? A Properties valued at $400,000 or less B Properties valued at $450,000 or less C Properties valued at $500,000 or less D Refinanced properties
A Properties valued at $400,000 or less
When is it acceptable to have non-trust funds in an escrow account? A If it's placed there by the broker B In order to keep the account from being overdrawn due to banking fees C Never D Temporarily, for no longer than 10 days
B In order to keep the account from being overdrawn due to banking fees Mixing personal or other business funds with escrow funds is commingling. The only acceptable non-trust fund monies that can be placed in an escrow account are a nominal amount to keep the account open and pay administrative or banking fees.
Phoebe's gross monthly income is $4,200, and she has $360 in monthly non-housing debt payments. The lender's qualifying ratios are 28% for the housing ratio and 36% for the total DTI ratio. What's the maximum housing payment she can afford? A $1,075 B $1,152 C $1,176 D $1,512
B $1,152
An appraiser used the cost approach to estimate a property's value at $220,000. The site value was $50,000, and the total depreciation estimate was $4,000. What was the estimated cost of improvements? A $166,000 B $174,000 C $266,000 D $274,000
B $174,000 To estimate value, an appraiser adds the site value to the estimated cost to replace improvements then subtracts the estimated depreciation. So to solve the equation, you need to solve for cost of improvements. In order to do this, you have to move the given values to the other side of the equation - $50,000 + $4,000 . Here's the equation used to find the cost of improvements = $220,000 ‒ $50,000 + $4,000.
The capital gains exclusion for couples filing jointly who have lived in their primary residence at least two of the five years immediately preceding the sale of the home is up to $500,000. What is the capital gains exclusion for single taxpayers? A $150,000 B $250,000 C $300,000 D $75,000
B $250,000
Which one of the following statements about disclosing single agency is true? A Before a licensee may act as a fiduciary at a showing, the single agent notice must be fully explained and disclosed in writing. B Before a licensee may discuss the duties of a single agent, the single agent notice must be fully explained and disclosed in writing. C The single agency notice may not be included as part of another agency agreement. It must be provided as a separate document. D Written disclosure of single agency is required for all types of real estate transactions.
B Before a licensee may discuss the duties of a single agent, the single agent notice must be fully explained and disclosed in writing.
In which of these ways could the Fed make it harder for people to obtain mortgages in the local economy? A By increasing regulation in the secondary mortgage market B By increasing reserve requirements C By purchasing more securities D By purchasing more stock from the stock market
B By increasing reserve requirements
How does a lender in the primary mortgage market earn money when acting as a loan servicer? A By collecting tax payments B By preparing tax records C By purchasing loans D By setting interest rates
B By preparing tax records
Sally has just purchased a condominium. She is curious about whether she can plant hydrangeas next to her porch. Which condominium document could she consult for the answer? A Articles of incorporation B Bylaws C Declaration of condominium D FAQs
B Bylaws
On the Florida closing statement, what's the term for an amount that will show up in the party's favor? A Balance B Credit C Debit D Mortgage
B Credit A credit is an amount that shows up on the Closing Disclosure form in a party's favor.
Luke recently moved from a condominium to a cooperative. With a cooperative, his share of mortgage interest and real estate taxes will be ______. A Considered as capital gains B Deductible on his personal income tax returns C Fully refundable to him D Not deductible on his personal income tax returns
B Deductible on his personal income tax returns
Which duty is missing from the following string of duties owed by Florida licensees in a "no-brokerage" relationship with a real estate customer? Deal honestly and fairly, account for all funds, and ______. A Be loyal B Disclose material facts C Keep confidential information confidential D Provide full disclosure
B Disclose material facts
The secondary mortgage market buys loans from the primary market. How does this aid the lending market? A Avoid foreclosure of borrower properties B Ensure funds are available to borrowers C Prevent bank runs by consumers D Streamline lenders' bankruptcy processes
B Ensure funds are available to borrowers
Harry, a real estate licensee, tells a seller, "I'll be surprised if you get $100,000 for this place. I won't charge you anything to list it, but anything you get above $100,000 goes to me. Deal?" This is an example of ______. A Contractual interference B Entering into a net listing agreement C Failure to disclose an agency relationship D Performing services that would qualify as practice of law
B Entering into a net listing agreement
To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which element is applied first? A Conditions of sale B Financing terms and cash equivalency C Market conditions D Physical characteristics
B Financing terms and cash equivalency When using the sales comparison approach, appraisers consider elements in a specific order: financing terms and cash equivalency, conditions of sale, market conditions at the time of contract and closing, location, and physical characteristics.
Under which type of ownership arrangement can buyers purchase condominiums? A In joint tenancy or tenants in common, but not in severalty B In severalty, in joint tenancy, in tenants in common, or tenants by the entirety C In severalty, in joint tenancy, or tenants in common, but not tenants by the entirety D In severalty or tenants by the entirety, but not in joint tenancy
B In severalty, in joint tenancy, in tenants in common, or tenants by the entirety Condos may be owned in all of the ways that other residential property may be owned
In Florida, which of the following defines an income tax lien? A Involuntary lien placed against a property owner's property due to a court decree resulting from a lawsuit. B Involuntary lien placed against a property owner's property for due and unpaid taxes C Involuntary lien placed on all property inherited by a deceased person's heirs. D Voluntary lien against a single property that uses the property as collateral for repayment of a loan.
B Involuntary lien placed against a property owner's property for due and unpaid taxes
What could be a consequence if there were no secondary mortgage market? A Interest rates would fall. B Lenders might not have funds available to make new loans to the public. C There wouldn't be any institutions available to service loans. D Unemployment would rise.
B Lenders might not have funds available to make new loans to the public.
Which one of the following is a true statement about a Florida real estate licensee's duty to disclose? A It's situational. If the licensee doesn't represent a party to the transaction, no duty to disclose exists. B Licensees owe all parties and customers the duty to disclose material facts relating to the value of the property. C Licensees owe the duty to disclose material defects, not material facts. D Licensees owe the duty to disclose material facts, not material defects.
B Licensees owe all parties and customers the duty to disclose material facts relating to the value of the property.
Which type of legal description do courts prefer? A Benchmark B Lot and block C Metes and bounds D Rectangular government survey
B Lot and block
Several actions take place on the secondary mortgage market. Which of these is a common activity? A Issuing loans to consumers B Packaging loans into mortgage-backed securities C Regulating primary lenders D Setting loan origination fees
B Packaging loans into mortgage-backed securities Loans are commonly packaged into MBSs and sold to investors.
What describes both the type of the development and the regulatory process that allows the developer to meet the community's goals for land use and density without being restricted by existing zoning requirements? A Cumulative zoning B Planned unit development C Spot zoning D Subdivision
B Planned unit development
Which of the following statements related to the power of taxation is true? A f the property is foreclosed upon, property taxes are paid after all other creditors. B Property tax liens take priority over any and all other liens on the property in most states. C Property tax liens take the lowest priority after all other liens on the property. D Taxation is an unstable source of income.
B Property tax liens take priority over any and all other liens on the property in most states.
Besides exempting a portion of property value from taxation, what else does the Florida homestead exemption program offer? A Income tax relief B Protection from creditors in the event of a forced sale C Subsidized utility bills for qualified homeowners D Tax credit for working mothers
B Protection from creditors in the event of a forced sale
Teena has fee simple ownership of her timeshare unit. Which of these is NOT an example of the type of ownership she may have? A Interval ownership B Right-to-use C Tenancy in common D Timeshare estate
B Right-to-use Fee simple ownership of a timeshare (aka timeshare estate) unit means that the owner may share tenancy in common with other timeshare owners or may have an interval ownership. A right-to- use time share is a lease agreement, not an ownership interest
Marcy's offer on a home was accepted! Which party will be contacting her about arranging an appraisal? A The closing attorney B The lender C The seller's agent D The title insurance representative
B The lender
What conditions must be met to avoid violating RESPA when receiving promotional or educational materials from a mortgage company or other settlement service provider? A The materials are given as compensation for organizing an event the SSP is not publicly sponsoring. B The materials are not given in exchange for a referral and do not defray any cost you would normally have to pay. C The materials cannot be received at all, according to RESPA. D The materials must exceed the value of any service the SSP offers.
B The materials are not given in exchange for a referral and do not defray any cost you would normally have to pay.
Which of the following statements regarding "kickbacks" is true? A The receiving party absolutely must have an active real estate license. B They can be paid to another party in a transaction, but only with the broker's approval and with the full knowledge of all other parties. C They can be paid to anyone who refers a client to a licensed agent. D They're always illegal.
B They can be paid to another party in a transaction, but only with the broker's approval and with the full knowledge of all other parties.
When does the listing agreement between you and a seller client need to be in writing to be enforceable? A Always B When the term of the listing agreement exceeds one year C When you are acting as a transaction broker D When you are to be paid a commission
B When the term of the listing agreement exceeds one year A listing agreement with a term that exceeds one year falls into the category of contract types that are covered by the statute of frauds and must be in writing to be enforceable.
You've just purchased a rural property, and the attorney at the closing tells you, "You have a dominant estate." What does that mean to you? A The property comes with an easement in gross granted to the utility company. B You'll be using an easement across your neighbor Jim's property. C Your property has an easement granted to your neighbor Jim, allowing him to cross your property to access his land. D Your property has direct access to a road and doesn't require an easement.
B You'll be using an easement across your neighbor Jim's property.
A buyer has a 30-year, $750,000 loan with a 5.75% interest rate. How much of the first monthly payment is interest? A $10,869.57 B $3,500.93 C $3,593.75 D $3,750.27
C $3,593.75
How much would a lot that is 400 feet wide by 500 feet long cost at $900 per acre? Topic: Legal Descriptions Subtopic: Types of Legal Descriptions A $2,200 B $3,060 C $4,132 D $4,500
C $4,132
You practiced real estate without a license in Florida. What is the maximum penalty you could face? A $1,000 fine and one year in prison B $5,000 C $5,000 fine and five years in prison D Five years in prison
C $5,000 fine and five years in prison
In Florida, what percentage of profit would the seller make if he paid $18,000 for a vacant lot, built a home on the lot that cost $145,000, and then sold the property for $200,599? Round your answer to the nearest percent. A 138% B 16% C 23% D 293%
C 23%
In Florida, how many days after a tenant delivers advance rental money must a landlord provide a written account of how it is being held? A 15 B 20 C 30 D 45
C 30
Who is the owner of the property in a committee's deed? A A deceased person B A divorcee C A legally incompetent person D A veteran
C A legally incompetent person
What's a datum? A An iron pin or other permanent marker used in metes and bounds descriptions B A point indicating a location is at sea level C A point, surface, or line used as a reference for measuring elevations C The center of a township
C A point, surface, or line used as a reference for measuring elevations
Which economic principle pertains to how a change in a property affects its value as a whole? A Anticipation B Conformity C Contribution D Substitution
C Contribution
The Druid Hills neighborhood sits firmly within a single-family residential zoning area. Most of the lots are one-third of an acre or larger. A 20-acre parcel on the edge of the neighborhood sold recently. The buyer wants to build condominium flats since multi-family housing is in short supply in the area. The town is considering rezoning that parcel to allow this development because the developer plans to also include a public park and a walking trail. What kind of zoning is this? A Aesthetic zoning B Downzoning C Incentive zoning D Spot zoning
C Incentive zoning Incentive zoning occurs when a municipality allows a property owner to proceed with an otherwise-prohibited type of construction in return for improvements that will benefit the community.
What is borrowing money to finance an investment known as? A Brokerage B Equity C Leverage D Liquidity
C Leverage
Morty, a land surveyor, was called out to survey a property. After doing some research, he located the legal description for the property in question. Now, if he could just find the point of beginning located at the iron pin on the southerly line of state route 117, 30 feet east of the oak tree next to Bear Creek. What type of legal description is Morty working with? A Benchmark B Datum C Metes and bounds D Rectangular government survey
C Metes and bounds
Brokers may assign the designated sales associate method of representation when the transaction is ______ and the buyer and seller each have assets of $1 million or more. A Agricultural B Industrial C Non-residential D Residential
C Non-residential
What should a broker do if the broker wants to use an interest-bearing account to hold escrow funds? A Commingle funds with their own to ensure there is no distinguishing personal funds from escrowed funds B Nothing, the broker may use any type of account they wish to store escrowed funds C Notify all parties of the type of account and how the interest will be distributed, and obtain written permission to do so D Register the account with the DBPR, FREC, and the Florida Banker's Association as an IBEF account
C Notify all parties of the type of account and how the interest will be distributed, and obtain written permission to do so
What type of arrangement allows the buyer to retain title to the property, but places a security interest in the property on behalf of the seller? A A straight-term loan B Land contract C Purchase money mortgage D Wrap-around mortgage Purchase money mortgages allow the buyer to retain title to the property, but the seller has security interest in the property.
C Purchase money mortgage Purchase money mortgages allow the buyer to retain title to the property, but the seller has security interest in the property.
What must a broker do if escrow funds are deposited into an attorney or title company's escrow account? A Nothing; the responsibility now lies with the attorney or title company to handle the funds appropriately. B Request a notice of default within 90 days of the time the deposit is made. C Request a verification of deposit within 10 days of the due date stated in the sale agreement. D Request that the attorney or escrow company provide a bond of 25% of the escrowed funds to the broker.
C Request a verification of deposit within 10 days of the due date stated in the sale agreement.
Deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision under development are often called _______. A Developer standards B New build standards C Restrictive Covenants D Restrictive standards
C Restrictive Covenants
Which statement best describes traditional planning? A Developers identify how land will be used. B Residents determine how land will be used. C Specialists with different areas of expertise work separately and focus on designing "their" areas. D Specialists with different areas of expertise work together, focusing on overall use.
C Specialists with different areas of expertise work separately and focus on designing "their" areas.
In Florida, which option describes a real property tax lien? Topic: Titles, Deeds, and Ownership Restrictions Subtopic: Ownership Limitations and Restrictions A General and involuntary B General and voluntary C Specific and involuntary D Specific and voluntary
C Specific and involuntary
Who must be a signatory of escrow on a brokerage's escrow account? A A federally or state-insured bank or depository B An attorney C The broker D The title company
C The broker
When does the buyer's agent, attorney, or lender contact the buyer to tell them the exact amount to bring to closing? A After receiving title B At the closing C The day of signing, or just prior to it D The week prior to closing The buyer will be told a very close amount in the Closing Disclosure, provided three days prior. The exact amount isn't known until just prior to closing, and usually must be paid by wire transfer.
C The day of signing, or just prior to it The buyer will be told a very close amount in the Closing Disclosure, provided three days prior. The exact amount isn't known until just prior to closing, and usually must be paid by wire transfer.
If a buyer assumes the seller's mortgage, which of the following is a true statement? A The buyer is solely responsible for the mortgage. B The mortgagee and mortgagor are both responsible for the note. C The mortgagee assumes personal liability for the note. C Unless the lender releases the seller, the seller remains responsible for the mortgage and note.
C Unless the lender releases the seller, the seller remains responsible for the mortgage and note.
Bernie represented Oscar in the sale of Oscar's home. They signed an exclusive right-to sell-listing agreement. If Oscar were able to find his own buyer, would he owe Bernie a commission? A No, because he found his own buyer. B No, because Oscar retained his exclusive right to sell. C Yes, because "exclusive right to sell" means Bernie gets paid no matter who finds the buyer. D Yes, because Oscar is not a real estate licensee.
C Yes, because "exclusive right to sell" means Bernie gets paid no matter who finds the buyer.
If Carol and Mike Brady died intestate, their children would all be _________ to the family home. A. Beneficiaries B. Devisees C. Heirs D. Testators
C. Heirs
Owners of Florida homesteads can deduct _________of the assessed value for properties valued at more than $75,000. A $10,000 B $25,000 C $5,000 D $50,000
D $50,000
Owners of Florida homesteads can deduct $50,000 of the assessed value for properties valued at more than __________. A $25,000 B $5,000 C $50,000 D $75,000
D $75,000
Which of the following options describes a subordination agreement? A An agreement between a contractor and any subcontractors B An agreement between a landowner and a contractor C An agreement between the court and landowner to decrease property taxes D An agreement between two lien holders to modify the order of lien priority
D An agreement between two lien holders to modify the order of lien priority
Which agency enforces Title II under the Americans with Disabilities Act of 1990, when it relates to state and local public housing, housing assistance, and housing referrals? A Department of Civil Rights B Department of Equal Opportunity C Department of Housing and Community Development D Department of Housing and Urban Development
D Department of Housing and Urban Development
In Florida, which of these statements about equitable title is true? A Buyers obtain equitable title to a property when any mortgage loan is paid in full. B Equitable title equates to ownership. C Equitable title is the same as legal title. D Equitable title refers to the borrowers future rights.
D Equitable title refers to the borrowers future rights.
Rob and Jill obtained a mortgage from Taylor Bank & Trust in 1998. In 2014, they obtained a second mortgage from Quail Loans. What is the loan with Quail Loans considered? A First mortgage B Graduated mortgage C Home equity line of credit D Junior mortgage
D Junior mortgage
How is the documentary stamp tax rate usually calculated? A It's a flat fee of $50 for all sales prices under $100,000 and doubles every $50,000 after that, up to a maximum of $250. B It's a flat fee of $50, regardless of sales price. C Multiply $100 for every $10,000 in the sales price. D Multiply the tax rate by the number of $100s in the sales price.
D Multiply the tax rate by the number of $100s in the sales price.
Property taxes generate approximately ______ of local government revenue. A Half B One quarter C One tenth D One third
D One third
Which of the following accurately describes the Division of Real Estate? A Oversees the DBPR, DRE, and real estate commission. B Provides administrative services for Florida Real Estate Commission. C Regulates Florida businesses D Regulates the activities of real estate professionals and schools.
D Regulates the activities of real estate professionals and schools. The DRE is responsible for administrative services and ministerial duties for the FREC
With a cooperative, the transfer of ownership ______. A Involves a transfer of real property B Is regulated by the federal government C Must be made public D Requires board approval
D Requires board approval
Cassandra is a business opportunity broker. Which of the following must be true? A She does not deal with the sale and purchase of personal property. B She is not required to have a real estate license. C She primarily deals with the sale and purchase of larger businesses. D She primarily deals with the sale and purchase of smaller businesses.
D She primarily deals with the sale and purchase of smaller businesses. As a business opportunity broker, Cassandra primarily deals with smaller businesses, like sole-proprietors or partnerships, with limited amounts of fixed assets.
The Loanly Officers Bank of Florida wants to determine the approximate selling price of a property in Gainseville. Where would they go to achieve their goal? A I-Drive By Appraisal Services B Ima D. Tective Inspectors C Ivanna Clue Mortgage Brokers D Sherlock Homes Real Estate Brokerage
D Sherlock Homes Real Estate Brokerage A broker price opinion is usually performed by a hired real estate sales associate or broker when a financial institution believes the expense of ordering an appraisal would be unnecessary and time-consuming.
Janiece bought a home in the suburbs. Although the cost of living in the U.S. has risen sharply, her home value has appreciated only modestly. This is because the real estate market is ______. A A contrarian investment B Highly influenced by government policy C Indestructible D Slow to respond to market conditions
D Slow to respond to market conditions
On which principle of value is the sales comparison approach based? A Anticipation B Competition C Conformity D Substitution
D Substitution
Homeowners may transfer the SOH benefit to a subsequent home. In order to do this, their homestead exemption must have been in place on their current home for _________________ preceding years. A One of the previous two B The last 10 C The last five D The last two The homestead exemption must have been in place for one of the two preceding years, and the benefit transferred is limited to $500,000.
D The last two The homestead exemption must have been in place for one of the two preceding years, and the benefit transferred is limited to $500,000.
If a minor enters into a contract with an adult, which of the following is true? A The adult may legally hold the minor to the contract, but the minor cannot legally hold the adult to the contract. B The contract is valid, and both the minor and the adult may legally hold the other party to the contract. C The contract is void, and neither the minor nor the adult may legally hold the other party to the contract. D The minor may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract
D The minor may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract
How is the grid that's used in the rectangular government survey A The numbers are read left to right. B The numbers are read right to left. C The numbers start in the center and spiral out clockwise. D The numbers start in the northeastern corner and follow a zigzag pattern.
D The numbers start in the northeastern corner and follow a zigzag pattern.
With both joint tenancy and tenancy by entirety, when one tenant dies, that person's share automatically goes to the other surviving tenant(s). This is known as ______. A Estate in severalty B Termination of joint tenancy C The right of inheritance D The right of survivorship
D The right of survivorship
What is the correct calculation to figure out a commission rate? A List price ÷ total commission B List price × total commission C Sales price ÷ total commission D Total commission ÷ sales price
D Total commission ÷ sales price To calculate a commission percentage rate, you must divide the total commission amount by the sales price.
The Janssens qualify for an FHA-insured loan. Which of the following can they expect to be added to their closing costs? A HER B PITI C PMI D UFMIP
D UFMIP The up-front mortgage insurance premium will be due at closing. PITI and MIP will be part of their monthly mortgage payment. HER is a qualifying ratio and not an expense.
You receive an offer in the mail that says you're eligible to win a cash prize if you place some stickers on a form and return it to the sender. What type of contract is this? A Implied contract B Invalid contract C Unenforceable contract D Unilateral contract
D Unilateral contract A sweepstakes entry is a unilateral contract because only the sweepstakes administrator is obligated to perform any action; the recipient of the offer is not contractually bound to enter the contest.
Sylvia, who's 15 years old, and her neighbor Marge, who's 24, agree that Sylvia will babysit Marge's toddler for the summer for $10 an hour. What type of contract is this? A Enforceable B Unilateral C Valid D Voidable
D Voidable A voidable contract appears to be valid, but one or both parties have the right to rescind the contract. In this case Sylvia can enforce the contract against Marge but Marge cannot enforce against Sylvia.
When must a branch office must be registered with the DBPR? A If the structure is a permanent building only. B Never C Only trailers used out in subdivisions to conduct business while a client is visiting must be registered as branch offices. D When the use of the office and the activities performed there are for more than just emergency shelter from inclement weather.
D When the use of the office and the activities performed there are for more than just emergency shelter from inclement weather. Whenever an office is used as a regular location in which to conduct brokerage activities, it must be registered.
Angie and Terrell have just found out that there is a lien on their property for real estate taxes. What does this mean? A. A public auction will be held. B. A tax certificate will be issued to collect the taxes due. C. The state can file a tax deed application. D. They haven't paid their property taxes yet.
D. They haven't paid their property taxes yet.