Real Estate License Exam Review 22

Charles is selling his property to Seth. Charles is financing part of the transaction for Seth, who will make payments to Charles while Charles retains the property title. What is this an example of?

A land contract

Sondra, a buyer, signs all the required mortgage documentation, promising to make all payments to her lender. Unfortunately, Sondra falls on hard times and misses multiple payments, and the bank indicates that it's going to foreclose on her. The foreclosure proceedings are more difficult for the lender because Sondra holds the title to the land. What kind of state does Sondra live in?

A lien theory state

When Mark and Chrissy discovered that the seller of their recently purchased home had committed title fraud, they were told their title insurance policy wouldn't cover the legal costs to clear the title to their property. What's the most likely reason for this?

They didn't purchase owner's title insurance.

Which type of partner shares full personal liability for the partnership's debts and obligations?

General

Giant Industries has a $674,232 gross operating income, operating expenses of $329,129, and other expenses totaling $38,719. What is the net operating income?

$345,103, The formula for finding net operating income is: gross income - operating expenses = net operating income. So, $674,232 - $329,129 = $345,103. Other expenses like loan interest and debt repayment aren't included in this calculation.

What is the maximum criminal penalty for a violation of a Florida statute, a second-degree misdemeanor?

$500 and 60 days in jail

The Florida Timeshare Act requires that a written disclosure be provided to consumers informing them that they have _________ calendar days to cancel their purchase.

10

What type property is exempt from the FIRREA federal appraisal guidelines?

A refinance of a property valued at $375,000

Teresa, a new occupant, took possession of a leased property with the permission of the landlord and Cheri, the vacating tenant. However, Cheri remains bound by the terms of the contract until it expires. This is an example of _______.

A sublease

Meg is considering a move to a foreign country and wants to deed her property to her son, Christian, who's 16. What must occur to make this transfer legal?

Meg must sign the deed and have her signature acknowledged.

A Florida licensee stating that property is "guaranteed to increase in value over the next five years" is an example of ______.

Misrepresentation

Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine's transaction covered by the Real Estate Settlement Procedures Act?

No; commercial and business loans are exempt from RESPA requirements.

When does substantial performance of a contract occur?

One party has met most but not all of the terms specified in the contract, and may be required to pay damages for the terms not met.

Which title insurance policy will cover an owner's legal expenses when problems with title occur?

Owner's policy

Which type of legal structure may be either general or limited in type?

Partnership

What is true regarding the tax protest procedure in Florida?

Property owners may petition the VAB without first meeting with the county property appraiser.

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.

A family of four, with children ages six and nine, is denied the opportunity to view an available unit at a community that caters to seniors. Which of the following statements is true?

The federal Fair Housing Act allows an exemption for communities that are designed and operated for senior use.

What happens to a Florida real estate licensee who is involved in a case and can't pay the judgment amount, and the consumer is awarded money from the Real Estate Recovery Fund?

The licensee's license will be suspended until the amount paid to the victim, plus interest, is paid back.

In a lien theory state, the mortgage becomes a lien on the property, but title remains with the ________. Foreclosure proceedings in a lien theory state may be more difficult for the __________.

buyer, lender