Real Estate License Exam Review 13

Jane found a house she loved that was listed at $345,000. Her offer of $330,000 was accepted, but the appraisal came in at $300,000. Jane plans to finance $275,000. What's the loan-to-value ratio?

92%, Lenders use the lower of the sales price or appraised value. This results in an LTVR of 92% = (275,000 ÷ 300,000) x 100.

The Simpsons are buying a five-acre tract that has always been part of a larger parcel. When the owners of the large acreage decided to subdivide it, they needed to have a legal description created for the five-acre lot. What was used as the starting point for creating that legal description?

A survey

You're the subject of a disciplinary complaint and, in lieu of a hearing, you decide to give up your license. How many years must you wait before applying for a new Florida license?

An individual who has had a license revocation can never reapply.

What is a reverse exchange?

An investor finds and closes on an investment property and then decides to immediately sell another investment property.

What does the FTC consider to be a deceptive ad?

Any ad likely to mislead consumers acting reasonably under the circumstances

When must an agent disclose an agency relationship to an unrepresented transaction party?

At first substantive contact

In several states, married couples usually hold property as ___________.

Community property

______________ can allow radon to enter a home's interior.

Floor joists

Joe and Susie bought a house together before they were married. If Joe dies, Susie automatically inherits Joe's share of the house. What type of ownership is it?

Joint tenancy

Which fair housing case tested discrimination in a private sale?

Jones vs. Mayer

What is the license classification for a license that is voluntarily relinquished or cancelled by the licensee who no longer wants to do business in real estate?

Null and void

When can specific performance be enforced under a sales contract?

One party didn't meet the terms of the contract in the specified time frame, and is now being required to do exactly what was agreed to in the contract.

Gerry is submitting an application for a sales associate license for the first time. She will need to pay the initial application fees and ___________ fee to the DBPR.

Unlicensed activity

Actual gross potential income is offset by ___________.

Vacancy and credit loss

Loans for _______________ don't require TILA disclosure. Loans for personal purposes do, even when the collateral used is a business.

commercial purposes

Only primary residences qualify for the homestead exemption, and there are size restrictions. Rural homeowners can't claim a homestead exemption for properties ______________. City dwellers are limited to a ______________.

larger than 160 acres, half acre or less

According to the EPA, at what level does radon become a health concern requiring mitigation?

4.0 picocuries per liter of air

What is the maximum amount of SOH protections which can be transferred to a new home?

$500,000

In what year was the Americans with Disabilities Act made law?

1990

A buyer client is preparing an offer on a property. He wants to make sure his offer stands out above all others and is accepted, so he discusses waiving the inspection contingency. What should the agent do?

Encourage the buyer to get an inspection, and if he still wants to waive it, put it in writing that you advised against waiving the inspection and have him sign.

The purchaser of a mortgage will receive a/n ____________________, which establishes the facts of the borrower's financial obligations (unpaid balance, interest rate, and date to which interest has been paid).

Estoppel certificate

What is true regarding the purchase of a condominium?

If the prospective buyer has the financial means to buy the condominium, neither the association nor the residents can block the purchase.

Juan secures a fixed rate amortized 30-year loan for $295,000 at 4.25%. If his monthly P&I payment is $1,750, how much interest does he pay in the second month of the loan?

Juan pays $1,042.29 in interest for the second month

What is the sunshine law based on?

The Freedom of Information Act

What's one of the required elements of a valid option contract?

The amount of consideration the optionee is paying the optionor

What could be a potential drawback to not getting a home inspection done before closing on the home if the buyer has an FHA loan?

The buyer would be unable to sell the home back to the FHA if there are problems found after closing.

What is a risk that the seller assumes when agreeing to a sale subject to a mortgage?

The lender can get a deficiency judgment against the seller.