practice test #2

Closing is April 13. Buyer owns the day of closing. Property is rented for $600 paid in advance on the first of the month. How does the rent show up on the Closing Disclosure? $360 debit to seller $240 debit to buyer $360 debit to buyer $240 credit to seller

$360 debit to seller rent= closing month -day -1 buyer owns day of closing and rented for 600, so the debt is to the seller

Broker wrote an offer accompanied by $5,000 earnest money to be deposited into First Florida Title Company. The contract called for an additional deposit of $15,000 to be made 30 days after offer acceptance. After delivering the additional deposit, Broker must request that the title company provide a written verification of receipt of the deposit within: 18 business days 10 calendar days 10 business days 3 calendar days

10 business days

How many acres in the NW 1/4 of the SW 1/4 of the SE 1/4 of the SE 1/4 2.5 acres 5 acres 1 acre 7.5 acres

640 / 4 =160; 160 / 4 = 40; 40 / 4 = 10; 10 / 4 = 2.5 acres

Which is true of the landlord's treatment of advance rent and security deposits? a.May be deposited into the landlord's business operating account if accurate records are kept b.If a tenant is properly notified of the landlord's claim on the security deposit, the tenant is allowed to file an objection 15 days after the lease is terminated c.They may be placed in the landlord's personal account d.Advance rent and security deposits must be placed into a separate account

Advance rent and security deposits must be placed into a separate account advance rent and security deposits= non-intrentet beading (separate accounts)

Who may write advertisements? Any sales associate but it must be in the name of the brokerage firm Only the sales associate who procured the listing and it must include the sales associate's name and the name of the brokerage firm The broker must write all ads and they must be in the broker's name Only the sales associate who procured the listing and it must be in the registered name of the broker

Any sales associate but it must be in the name of the brokerage firm

Real estate licensees must comply with USPAP when conducting which value estimate? BPO CMA Real estate licensees can never perform an appraisal Appraisal

Appraisal must comply with USPAP-Apprasial

Which of the following requires a real estate license? Offering one's own property for sale Sale of property by a receiver Appraisal of mineral rights for compensation Sale of property by an attorney-in-fact

Appraisal of mineral rights for compensation not: Offering one's own property for sale Sale of property by a receiver Sale of property by an attorney-in-fact

Broker has taken a listing in a single agent relationship. Broker is also working with a buyer in a single agent relationship. Which is true if Buyer wants to see this listing? There is no circumstance in which Broker can show Buyer this property Broker can assign one of her sales associates to represent the Buyer Broker can legally show Buyer this listing if both parties sign the Transition to Transaction Broker form before showing the property Broker can legally represent both parties if properly disclosed

Broker can legally show Buyer this listing if both parties sign the Transition to Transaction Broker form before showing the property buyer and broker BOTH MUST sign before!!

Seller listed their house with Broker in a single agency relationship. Prospective Buyer wants agency representation before viewing the property. Which is true? Broker can be a single agent for both Seller and Buyer Broker can represent both parties with consent in a disclosed dual agency Broker cannot represent buyer because that would be illegal dual agency Broker can represent Buyer as a single agent if Seller will transition to transaction brokerage

Broker cannot represent buyer because that would be illegal dual agency the seller already listed the broker! CANT DO SELLER AND BUYER

Developer used a development loan to finance a subdivision and listed the lots for resale with Broker. Broker sold a lot for $10,000 but learned that the release cost is $12,000. Which is true? This was an illegal package mortgage and Developer may be fined Broker is subject to administrative penalties for selling a property for less than the cost of partial release Broker did nothing wrong and is exempt from punishment FREC could take administrative action against the purchaser for failure to exercise due diligence

Broker is subject to administrative penalties for selling a property for less than the cost of partial release

Seller told listing Broker that a contractor had told him there was a leak in the roof but it was not visible. Which is true of the listing Broker? Chapter 475 does not apply to hidden leaks Broker must not disclose the presence of the leak because it will reduce the Seller's net sale price Broker can only disclose the leak with Seller's permission Broker must disclose the contractor's report and Broker's license could be suspended for failure to do so

Broker must disclose the contractor's report and Broker's license could be suspended for failure to do so

Broker has single agency with Seller. Which is UNTRUE? Rumors and questionable facts must be disclosed to the principal If Broker has a transaction brokerage relationship with a prospective buyer, Broker may show Seller's property after Seller signs the Transition to Transaction Broker document Broker cannot also represent a prospective buyer Broker owes Seller limited confidentiality related to price, terms and motivation only

Broker owes Seller limited confidentiality related to price, terms and motivation only single agency = fulll

A prospective tenant paid $100 to a rental list broker. When prospective tenant notified broker 2 weeks later that a rental was not found, broker returned $50. Which is true? Broker owes prospective tenant $25 prospective tenant owes broker $25 Broker owes prospective tenant $50 prospective tenant owes broker $50

Broker owes prospective tenant $25 no occupied so 75%

Broker has a 'no brokerage' relationship with seller who listed at $98,000. The property is worth $108,000. Which is true of the Broker? Broker should tell the buyer the value of the property When Broker shows the property to a prospective buyer, Broker should quote the price as $108,000 Broker cannot legally have a 'no brokerage' relationship with a seller Broker should refer the prospective buyer to a different Broker

Broker should tell the buyer the value of the property

What are the FREC rules to expand upon the statutory provisions of Statutes by addressing in greater detail the principles of practice for the real estate profession? Chapter 61J2 Chapter 83 Chapter 475 Chapter 455

Chapter 61J2=frec

0 Which Florida law requires sellers of property subject to a mandatory homeowners' association to provide buyers with a disclosure summary regarding the association? Chapter 720 Chapter 455 Chapter 465 Chapter 475

Chapter 720 - Homeowner's Associations

Which property is exempt from property taxes? County courthouse Public library Church Military base

Church Government properties are immune; churches and nonprofits are exempt

The FREC suspended a broker's license for 1 year and issued a fine of $1,000. What other penalties may be faced by the broker? There cannot be any other penalties as the FREC is the only agency that can issue penalties against a real estate licensee Civil penalties through a lawsuit and criminal penalties including imprisonment FREC may arrest and incarcerate the broker Only criminal penalties enforced by FREC

Civil penalties through a lawsuit and criminal penalties including imprisonment

Subject is 4 bedroom and comparable is 3 bedroom. Bedrooms are valued at $5,000. What is the adjustment? Subject minus $5,000 Subject plus $5,000 Comparable minus $5,000 Comparable plus $5,000

Comparable plus $5,000 get to subject

A buyer signed a purchase and sale contract but died prior to the closing date. Which is true? Death of either party has no impact on the enforceability of an executory contract The buyer's heirs are required to perform according to the terms of the contract Performance of the contract can be assigned or transferred to a different buyer Death of either buyer or seller terminates the contract

Death of either buyer or seller terminates the contract

An unlicensed assistant may NOT do which of the following? Write ads for approval of the licensee and the supervising broker, and place advertising prepare flyers and promotional information for approval by licensee and the supervising broker , receive, record and deposit earnest money, security deposits and Answer the phone and forward calls, fill out and submit listings and changes to any multiple listing service and follow-up on loan commitments after a contract has been negotiated and generally secure the status reports on the loan progress. Drive a prospective buyer or tenant to a property, open the door and answer questions concerning a listing by making subjective comments, and answer questions about property condition or need for repairs. Monitor licenses and personnel files, have keys made for company listings, order surveys, termite inspections, home inspections and home warranties with the licensed employer's approval.

Drive a prospective buyer or tenant to a property, open the door and answer questions concerning a listing by making subjective comments, and answer questions about property condition or need for repairs.

Which is UNTRUE of tenancy-by-the-entireties? A married individual could have sole ownership, but the spouse needs to sign a contract for sale Either spouse may sign the contract for sale and deed Tenancy-by-the-entireties is available exclusively to married couples Property held by a husband or wife prior to marriage is separate property

Either spouse may sign the contract for sale and (deed)

An employee of ZZZ Syndicator only sells or leases property owned by ZZZ Syndicator. Her salary is based on sales and leases. Which is true according to Chapter 475? Employee must comply with all licensing requirements Employee needs a license to sell but does not need a license to lease Employee is not required to hold a real estate license because she is not an independent contractor ZZZ Syndicator is required to obtain a multiple license to sell or lease its own property

Employee must comply with all licensing requirements

Time and time again, ethical performance has proved to be good business. Which it UNTRUE of ethics? Licensees have a moral duty to behave ethically and to take action against the practices of any licensees who act unethically Some actions may be legal but unethical Ethical practices are in conflict with enterprise and profit Licensees must strive for individual ethical conduct and strive to maintain a high standard of ethical professionalism

Ethical practices are in conflict with enterprise and profit

The city is planning to pave a subdivision that contains 667 lots. The estimated cost will be $1,927.42 per lot. If the city will pay 35% of the expense, how much will the city pay: $436,765.96 $449,956.18 $439,998.67 $454,321.21

Explanation: 1,927.42 x 667 = 1,285,589.10 total x 35% = $449,956.18

Cap rate is 15%. The effective gross income is $100,000. Operating expenses are $34,500. What is the value? $425,000 $436,667 $454,542 $440,333

Explanation: 100,000 - 34,500 = 65,500 (I); 65,500 (I)/ 15% (R) = $436,667 (V)

365-day year closing on June 25 and Buyer owns day of closing. Buyer is assuming the existing mortgage with a loan balance at closing of $122,440 and interest is 8%. How does the interest proration appear on Buyer's and Seller's closing statements $644.16 Credit seller and Debit buyer $644.16 Debit seller and Credit buyer $623.67 Credit seller and Debit buyer $623.67 Debit seller and Credit buyer

Explanation: 122,440 x 8% = 9795.20 annual interest / 365 = 26.84 (rounded) x (closing-keep-1) 24 seller days = $644.16 Debit seller and Credit buyer ALWAYS Debit seller and Credit buyer WITH THESE and if Buyer owns day of closing, the seller is in debt

360 day year. Term loan $1,300 at 8% interest paid in full 1 year, 3 months and 8 days later. What was the total interest? $111.21 $458.00 $104.00 $132.31

Explanation: 1300 x 8% = 104 per year; 104 / 360 days = .2888 per day; Total days 360 + 90 (3 months) + 8 = 458 days; 458 days x .2888 per day = $132.31 interest

A developer is planning to develop 20 acres. Developer expects that 20% of the property will not be available for development. If average lot size is 8,000 square feet, what is the maximum number of lots that developer will have? 76 lots 87 lots 64 lots 80 lots

Explanation: 20 x 43560 = 871,200 square feet; 871,200 sq ft x 80% available for development) = 696,960 sq ft available; 696,960 / 8,000 sq ft per lot = 87.12 (rounded to 87) lots

Broker A is offering lots for $60,000 each. Broker A charges 7% and agrees to give Broker B 3.5% for each sale made by Broker B. Broker A sells 8 lots and Broker B sells 8 lots. What is the net commission income to Broker A? $45,400 $50,400 $58,010 $33,600

Explanation: 60,000 x 7% = $4,200 x 8 = $33,600; 60,000 x (3.5%) .035 = $2,100 x 8 = 16,800; 33,600 + 16,800 = 50,400

Total real property values in the community are $64,000,000. The value of government-owned property is $550,000. The value of property owned by churches and nonprofits is $350,000. There are property exemptions totaling $950,000. If the tax rate is 9 mills, what is the amount of tax that will be collected? $576,530 $559,350 $550,000 $567,544

Explanation: 64,000,000 - 550,000 - 350,000 - 950,000= 62,150,000 taxable value x .009 = $559,350 subtract all exemptions!

Broker's commission is 4% of the first $500,000; 3% of the next $100,000; and 1% of the balance. How much does broker earn if she sells the S ½ of the SE ¼ of Section 30, Township 3S Range 4E for $12,000 per acre? $26,600 total commission $23,000 total commission $29,600 total commission $23,600 total commission

Explanation: 640/2/4 = 80 acres x 12,000 = $960,000 sale price. 500,000 x 4% = 20,000 100,000 x 3% = + 3,000 360,000 x 1% = + 3,600 = $26,600 total commission

There is a rule of thumb that an individual should borrow no more than 2.5 times their annual income to buy real estate. Based on this premise, what weekly salary would be required to qualify for a $98,000 mortgage loan? $825.35 $725.44 $753.85 $798.78

Explanation: 98000 / 2.5 = 39,200 per year / 52 weeks = $753.85 mortgage loan?= divide income and then divide weeks

When money is given to a landlord as a security deposit or advance rent, the landlord may NOT do which of the following? Hold the total amount of such money in any bank, savings and loan or credit union and not commingle, hypothecate or use any such funds until due to the tenant. Post a surety bond with the clerk of the circuit court in the county in which the dwelling unit is located in the total amount of the security deposits and advance rent held on behalf of the tenants or $50,000, whichever is less. Hold the total amount of such money in a separate non-interest-bearing account in a Florida banking institution and not commingle any of the funds. Hold the total amount in a separate interest-bearing account in a Florida banking institution for the tenant who shall receive interest in an amount of at least 75 percent of the annualized average interest rate payable on such account or interest at

Hold the total amount of such money in any bank, savings and loan or credit union and not commingle, hypothecate or use any such funds until due to the tenant.

Which is true when a deposit is placed with a title company or an attorney? If named by the buyer, the selling agent must request a written verification of the deposit within 10 days and pass that on to the seller's broker It is a violation of Chapter 475 to place deposits with a title company or attorney The title company or attorney is not required to be located in Florida If named by the buyer, deposit verification is waived

If named by the buyer, the selling agent must request a written verification of the deposit within 10 days and pass that on to the seller's broker

Advance rents and security deposits may NOT be held: through a surety bond posted with the clerk of the circuit court In any bank in any state or jurisdiction in a noninterest-bearing Florida bank account in an interest-bearing Florida bank account

In any bank in any state or jurisdiction

Which is UNTRUE of the chapter of the Florida Statutes that defines the general legal practice and procedure for the DBPR and the licensees of all professions regulated by the DBPR, including real estate? It specifies that the maximum license suspension period is 10 years It is Chapter 455, Florida Statutes It grants legislative and judicial powers to the Division of Real Estate and FREC It states that regulatory power over the real estate industry is vested in the Florida Real Estate Commission

It grants legislative and judicial powers to the Division of Real Estate and FREC frec doesn't have judicial powers!

Sales Associate has listed her own waterfront property with her Broker. The property is listed at $75,000 but Sales Associate will take less if she sells it herself so she wants to advertise the property herself. Which is true? a.Sales Associate may place her own classified advertisement without Broker's registered name b.Since the property is listed, all advertising must be written by her Broker c.It is okay for Sales Associate to pay for the advertising but it must include the registered name of the broker d.Sales Associate may advertise through any medium as long as Sales Associate's home phone number is included

It is okay for Sales Associate to pay for the advertising but it must include the registered name of the broker

Bob and Bill are friends who are buying a property. They have decided that if one of them should die, the other will become the sole owner of the property. Which form of ownership should they choose? Tenancy in common Joint tenancy with the right of survivorship Tenancy-by-the-entireties Tenancy at sufferance

Joint tenancy with the right of survivorship

A broker took a listing in a no brokerage relationship. Which is NOT a duty of the broker? Disclose all known facts Maintain confidentiality Deal honestly and fairly Account for all funds

Maintain confidentiality no brokerage relationship=Disclose all known facts, let them know the value!

Which of the following developer's deed restrictions would be the hardest to enforce? Minimum $500 each year of new improvements Minimum lot size 8,000 square feet Building height limitation of 25 feet Minimum house size 1,165 square feet

Minimum $500 each year of new improvements

What items are deductible from income tax for owners of residential properties? Property taxes, depreciation and debt service Mortgage interest, property taxes and depreciation Mortgage interest and property taxes Mortgage interest only

Mortgage interest and property taxes

Which is true of landlord's treatment of advance rent and security deposits? Must be placed in a personal savings account May be placed in a personal account May be deposited into the landlord's business operating account if accurate records are kept Must be placed into a separate account

Must be placed into a separate account

An agent's trade group that requires upgrading professionalism and ethical standards of its members is: National Association of Realtors Association of Agents National Association of Regulators Florida Agents Association

National Association of Realtors

A small neighborhood gasoline station is located in an area that was later zoned for residential use. The gasoline station is allowed to continue the use but not allowed to undergo structural changes. This is an example of: zoning variance hypothecation special use nonconforming use

Nonconforming use is a term used in reference to property that does not comply with current zoning requirements

Sales Associate did not complete the 45-hour post-license course. What is the status of their license? Voluntarily inactive Null and void Involuntarily inactive Suspended indefinitely

Null and void

Which is true of a kickback or rebate? A broker cannot legally accept compensation from a remodeling contractor There is no condition under which a real estate licensee can legally receive a rebate or kickback A real estate licensee may receive a kickback or rebate not to exceed $50 from a settlement service provider Prior to the payment of a legal kickback, the parties must be fully informed

Prior to the payment of a legal kickback, the parties must be fully informed kickback=fully imformed

Which investment offers the maximum leverage? Purchasing 3 $5,000 lots by giving a $12,000 purchase money mortgage Purchasing a single-family rental property for $38,000 with an 80% loan to value ratio and 5% interest Purchasing a $600,000 apartment building by obtaining a $450,000 loan and using $150,000 equity A 5-year option to buy a farm for $150,000 with $30,000 consideration

Purchasing a single-family rental property for $38,000 with an 80% loan to value ratio and 5% interest

If an owner is unable to sign a deed, which of the following types would NOT be used? Quitclaim deed Personal representative's deed Committee's deed Guardian's deed

Quitclaim deed Explanation: Personal representative's deed (named in a Will) Guardian's deed (acting on behalf of a minor) Committee's deed (committee appointed to represent an institutionalized party)

Which is true of FREC's jurisdiction over escrow accounts? Real estate license law governs title insurance and attorney escrow accounts as well as broker's escrow accounts FREC has jurisdiction over the title company and an attorney that was used as an escrow agent FREC has jurisdiction over the title company that was used as an escrow agent, but not an attorney Real estate license law governs only broker's escrow accounts

Real estate license law governs only broker's escrow accounts only brokers!

Broker told sales associate to perform an unlawful act. What should the agent do? Follow the instructions but report it the Association of Realtors Follow the instructions and say nothing Refuse to follow the instructions and report it to the Division of Real Estate Ignore the instructions

Refuse to follow the instructions and report it to the Division of Real Estate

The lead-based paint disclosure requirements do NOT apply to which of the following: Rental or sale of commercial real estate built before 1978 Sale of residential real estate built before 1978 Rental of residential real estate built before 1978 Required disclosure of the known location of lead-based paint in residential property

Rental or sale of commercial real estate built before 1978 ONLY RESIDENTAL the lead-based paint disclosure does not apply to commerical real estate

Which of the following is NOT included in the responsibilities of a property manager? Represent owner Represent tenants Maintain the property Manage expenses

Represent tenants

What are NOT responsibilities of a property manager? Represent the owner at all times Maintain the property Manage expenses Represent tenants in negotiations

Represent tenants in negotiations

Buyer made an offer 'open for 3 days.' Buyer contacts broker next day and asks to withdraw the offer. What does broker do? Return the earnest money Keep the earnest money Explain that Buyer has signed an offer that is still open for 2 more days and it cannot be withdrawn Give the earnest money to Seller

Return the earnest money

The Department of Agriculture and Consumer Services maintains a no sale solicitation calls registry for consumers as part of the National Do Not Call Registry. Which is UNTRUE of contacting someone whose name is on the registry? Sales associate may contact a prospective buyer who registered at an open house Sales associate may contact an individual if they had a previous business relationship Sales associate representing a potential buyer may call someone who advertised their property in a newspaper Sales associate may call a for sale by owner (FSBO) in an attempt to solicit a listing

Sales associate may call a for sale by owner (FSBO) in an attempt to solicit a listing

Which is true of the seller's responsibilities to convey marketable title? Seller is required to deliver an updated abstract of title Seller is not required to deliver marketable title, only reasonable title Seller is required to furnish a mortgagee's title insurance policy Seller should get an attorney's opinion regarding transferability of title

Seller is required to deliver an updated abstract of title

Which is not true of a contract for the purchase of property? a.Signatures must be witnessed by 2 competent witnesses b.The name, address and phone number of the attorney or title company holding the earnest money must be included c.It must include a property tax summary d.If owned as tenants-by-the-entireties both spouses must sign

Signatures must be witnessed by 2 competent witnesses contract must be signed by 1 person

What is the economic characteristic of real property that causes land to be affected by actions in the surrounding areas? Scarcity Improvements Uniqueness Situs

Situs

Which is true in a lien theory state? The mortgagee holds title to the property The seller holds title to the property The borrower retains title to the property The lender retains title to the property

The borrower retains title to the property borrower-lien theory state

Which is true of a buyer-broker agreement? The broker is a transaction broker, single agent, or nonrepresentative Buyer brokerage is a violation of Chapter 475 It does not need to be in writing because it is a unilateral contract The parties are the sales associate, the broker, and a buyer

The broker is a transaction broker, single agent, or nonrepresentative

First Bank of Florida hired Sales Associate to perform a broker price opinion (BPO). Because the fee was small, First Bank paid Sales Associate directly. Which is true? A BPO or CMA can only legally be performed by a state licensed or certified appraiser Sales associates may perform BPOs on their own without supervision of the employing broker The compensation must be paid to the broker and not directly to the sales associate The USPAP applies to licensees who perform BPOs

The compensation must be paid to the broker and not directly to the sales associate

Which is NOT true of a reverse mortgage? It could be used by a 65 year-old homeowner to release equity from the home The homeowner may receive payments in a lump sum or on a monthly basis The homeowner makes monthly payments to the bank Borrower must be a homeowner age 62 or older

The homeowner makes monthly payments to the bank

Which of the following is UNTRUE of the purpose and requirements of homestead exemption? The homestead is protected from forced sale for unpaid property taxes, special assessments, mortgage liens and vendor's liens Homestead purpose is protect the family and prevent from being displaced A family must own and occupy the property The homestead is protected from forced sale for debts owing to personal loans, credit card debt etc.

The homestead is protected from forced sale for unpaid property taxes, special assessments, mortgage liens and vendor's liens

Broker obtained an option to purchase Seller's property for $800,000. Which is true? If Broker sells to a different buyer, Broker can only keep the commission and the additional profit must go to Seller Broker is not required to notify Seller that Broker is not functioning as a Broker but as a prospective buyer The option requires consideration in order to be valid Broker cannot sell the property to a different buyer

The option requires consideration in order to be valid option-broker keep proft -must have consideration

Husband and wife have purchased a home and filed for homestead protection between January 1 and March 1. Which is NOT true? They will be protected from the forced sale of their property by a mortgage or construction lien holder their homestead is protected from judgment creditors they hold title in tenancy-by-the-entireties Property owned by either spouse prior to marriage is separate property

They will be protected from the forced sale of their property by a mortgage or construction lien holder

Sales Associate performed a broker price opinion for Bank of USA and called it an 'appraisal.' Which is true? This is a violation of Chapter 475 and FREC could take disciplinary action This is not a violation as long as Bank of USA pays Sales Associate's Broker A BPO is never an appraisal so Sales Associate is not in violation of USPAP or Chapter 475 This is not a violation as long as Sales Associate discloses that she is not a licensed appraiser

This is a violation of Chapter 475 and FREC could take disciplinary action

Which of the following is NOT a physical component of land? Surface rights Sub-surface rights Timber rights Air rights

Timber rights

USPAP stands for: Uniform Standards of Professional Appraisal Practice Uniform Standards of Professional Assessor Performance United States Performance of Appraisal Principles Uniform Standards of Performance of Appraisal Participation

Uniform Standards of Professional Appraisal Practice

A Hispanic couple informed Broker that they wanted to look at houses between $80,000 and $90,000 in predominantly Hispanic neighborhoods. The agent selects 2 properties to show them, each in a Hispanic neighborhood. Which is true? This is okay Violation of Florida law but not Federal law Violation of Civil Rights Act and Florida License Law Violation of Federal law but not State law

Violation of Civil Rights Act and Florida License Law it is a violation because the agent selected the properties to look at. It is NOT a violation if the buyer asked to see a particular home

Riparian and littoral refer to: Sub-surface rights to minerals Water rights to a lake or river The law of fixtures Air rights

Water rights to a lake or river

The minimum lot size in the city is one - half acre. Owner wants permission to construct a house on a one-quarter-acre lot. What does Owner apply for? Deed restriction Special exception Nonconforming use Zoning variance

Zoning variance

A buyer-brokerage agreement is: illegal in Florida a contract with a purchaser another term for a listing contract does not need to be in writing

a contract with a purchaser contract with a buyer

Even though certain exceptions apply, an active real estate licensee is legally entitled to appraise real property for compensation concerning a non-federally-related transaction: only if the appraisal is referred to as a CMA or BPO as long as licensee represents the appraisal as being completed by a state licensed or certified appraiser as long as a licensed or certified appraiser signs the appraisal report as 'review appraiser' as long as licensee complies with USPAP and does not represent that licensee is a licensed appraiser

as long as licensee complies with USPAP and does not represent that licensee is a licensed appraiser

Adjustable Rate Mortgage (ARM) disclosures must be made: in the sale contract on the Closing Disclosure within 3 days after closing before the loan is closed, but not at the closing table

before the loan is closed, but not at the closing table disclose-before

Which are traditionally considered to be buyer expenses? deed preparation and mortgage recording owner's title insurance and documentary tax on the deed prorated taxes in arrears and prepaid rent deed recording and buyer attorney fees

deed recording and buyer attorney fees

Individual Seller grants a deed that includes limitations that restrict the use of the property for Owner and all subsequent owners. This was a: write of execution deed restriction restrictive covenant zoning ordinance

deed restriction=ndividual Seller write of execution=valid deed restriction-one restrictive covenant-developer zoning ordinance-wants

A process when depositors withdraw money from savings for direct investment in stocks, money market funds, and other securities is called: disintermediation hypothecation securitization intermediation

disintermediation withdraw

In the cost-depreciation method, Appraiser has attributed depreciation to items that are inferior due to operational inadequacies, poor design, or changing tastes and architectural preferences. This is known as: age-life depreciation functional obsolescence physical deterioration external obsolescence

functional obsolescence- desgin external-locatuin physical-wear and tear

The legally permissible, physically possible and financially feasible use of property is its: maximal use highest and best use optimal use zoning use

highest and best use

A local real estate board or MLS that sets commission rates or splits between cooperating brokers: a.is not regulated under Chapter 475 b.is exempt from antitrust provisions but the state board of Realtors is not c.is not guilty of any violation of Chapter 475 because it is a private trade group d.is guilty of antitrust

is guilty of antitrust guilty for set trust funds

Hayes conveys ownership to Johnson 'for the life of smith' and then to Komar. Johnson holds a: remainder estate joint-tenancy with right of survivorship tenancy-in-common life estate

life estate

What is NOT a consideration in determining investment value? exterior considerations interior considerations building operating expenses market activity

market activity

The mutual assent of parties to a contract, considered to be the primary element of a valid contract, is also known as: competent parties meeting of the minds legal purpose voidable

meeting of the minds

If homeowners-taxpayers itemize deductions rather than claiming the standard deduction on their annual federal income tax returns, they may deduct: mortgage default insurance and utilities operating expenses and property taxes mortgage interest and property taxes mortgage payments and insurance premiums

mortgage interest and property taxes mortgage and taxes =itemized

If the post-licensing requirement is not fulfilled before the first renewal and there is a desire to continue in the real estate business, the licensee must requalify for the license must change the status from involuntarily inactive to voluntarily active has a 6-month grace period to complete the education must retake the state exam within one year

must requalify for the license

When Owner contacted Broker to list his property, Owner indicated that she wanted $62,000 after the commission was paid. What type of listing would this be if Broker received everything above $62,000 as his commission? net listing multiple listing exclusive-open listing group listing

net listing

Which claim has the highest priority? mortgage lien recorded August 1, 1992 property tax lien recorded January 1, 1993 vendor's lien recorded September 1, 1991 judgment lien recorded July 15, 1993

property tax lien recorded January 1, 1993 Explanation: Property taxes are the highest priority lien.

Chapter 475 mandates certain duties and obligations in each type of brokerage relationship. However, the disclosures required under Chapter 475 are required only when dealing in: dispositions of any interest in business enterprises or business opportunities nonresidential transactions residential transactions auctions

residential transactions=475

A broker is incarcerated in a Federal penitentiary for illegal activities unrelated to his real estate license. The broker may be subject to which penalty from FREC? probation notice of noncompliance temporary suspension of license revocation of license

revocation of license

The chance of losing invested capital is: leverage risk capitalization investment

risk

Which is a form of ownership: tenancy-in-common tenancy-for-years tenancy-from-period-to-period tenancy-at-will

tenancy-in-common

Which action of the Federal Reserve would have the impact of reducing interest rates? the Federal Reserve increases the reserve requirement the Federal Reserve decreases the reserve requirement the Federal Reserve increases the discount rate the Federal Reserve sells bonds to decrease the money supply

the Federal Reserve decreases the reserve requirement

The field of property management has experienced growth and specialization primarily because of: the deregulation of real estate the increase in the number of absentee owners the increase in sales prices that have caused an increase in the number of renters the increase in property management specialists

the increase in the number of absentee owners

The purpose of Freddie Mac, formerly known as the Federal home Loan Mortgage Corporation, is: to regulate primary lenders to insure mortgages to provide a secondary mortgage market to provide loans to 1st time buyers

to provide a secondary mortgage market freddiemac=secondary market

A broker who works in a capacity of limited representation for the buyer, the seller, or both in the same residential transaction is a: a no broker single agent of both buyer and seller transaction broker dual agent

transaction broker

Buyer gave Broker $5,000 related to a contract that was unsigned by Seller. Seller gave Buyer the right to buy the property for the next 90 days for a price of $75,000. The contract is: illegal bilateral unilateral unenforceable

unilateral

Which is UNTRUE of deed restrictions and restrictive covenants? a.A deed restriction affects a particular property while restrictive covenants affect an entire subdivision b.A restrictive covenant or deed restriction is a limitation that restricts the use of a particular property until the property is sold or otherwise transferred c.A deed restriction is a limitation that restricts the use of the property for Owner and all subsequent owners. d.Deed restrictions and restrictive covenants apply to all present and future Owners

untrue: A restrictive covenant or deed restriction is a limitation that restricts the use of a particular property until the property is sold or otherwise transferred (cant transfer a deed!) truea. A deed restriction affects a particular property while restrictive covenants affect an entire subdivision c.A deed restriction is a limitation that restricts the use of the property for Owner and all subsequent owners. d.Deed restrictions and restrictive covenants apply to all present and future Owners

Qualifying a buyer means: determining the potential buyer's economic capability only qualifying is the unethical act of gaining confidential information from a prospective buyer using two separate but important processes: determining the buyer's housing needs and determining the buyer's financial abilities determining the potential buyer's real property needs only

using two separate but important processes: determining the buyer's housing needs and determining the buyer's financial abilities need and finiacalcal abilities

A sales associate applicant who successfully passes the state exam may legally begin to "operate" as a licensee: when a properly completed application and fees are received by the DBPR immediately upon passing the state exam upon receipt of a complete application and appropriate fees by the DBPR when a broker agrees to hold the license and the license is registered at the DBPR

when a broker agrees to hold the license and the license is registered at the DBPR