Attempt 1 - Exam 5

Broker Dave is representing the seller as a single agent. If he wishes to continue working in this capacity while working with buyers that are interested in purchasing the same listing property, which of the following statements would be correct?

Dave can remain a single agent to the seller and work with the buyer in a No Brokerage Relationship capacity

Broker Sally discovers that her principal may have to declare bankruptcy. At what point can Sally legally disclose this information?

It cannot be disclosed without permission from the principal due to the single agency duty of confidentiality

Broker Bryan is involved in a dispute over an earnest money deposit between a buyer and a seller. He has notified the FREC of this situation and the parties have decided the take the issue to court. This is known as:

Litigation

If a loan is made on a parcel of land in a lien theory state, title to that parcel would be held by the:

Mortgagor

A real estate commission paid by the buyer is a:

Debit to the buyer - nothing to do with broker

Can a sales associate work out of their own office located in the sales associate's home?

No, sales associates must work out of a broker's office

Which of the following is considered an encumbrance but not a lien?

Deed restriction

Which of the following properties would be considered immune from taxation?

Escambia county courthouse

Tom listed his home for sale with Broker Sue for a six-month period in an exclusive right of sale listing contract. Two months into the listing Tom becomes dissatisfied with Sue's performance and lists the home with Broker Beth also. Broker Beth is able to sell the property within 30 days. Which of the following statements is most accurate?

Tom owes a commission to both Sue and Beth because both have a listing contract on the property

A real estate broker, who represented the seller as a single agent, failed to point out a leaky roof to a prospective buyer who later bought the property. The buyer then discovered the leak when it rained and filed charges against the broker. The broker might be guilty of:

concealment

A broker moves his branch office to a new location because of business reasons. What must the broker do to meet the legal requirements of the license law?

Request a new registration for the new location

The United States declared a national policy of fair housing in Title VIII of the Civil Rights Act of 1968. This legislation is known as the Fair Housing Act and applies to which of the following:

Residential real estate brokerage transactions

Sales associate Allen, working for Broker Bryan, wrote an ad for the local newspaper that is later found to be false and misleading. Who is legally responsible for this situation?

Sales associate Allen and Broker Bryan

A rental property is scheduled to close on August 5th of the current year. Total rent for each month is $1,200 and the seller collected a damage deposit of $500 when the lease was signed. How will this issue appear on the closing statement if the day of closing belongs to the seller?

$1,506.45 debit to the seller and a credit to the buyer Reason: Don't forget to add the deposit to the rent proration.

The county has decided to install new sewer lines throughout your subdivision. The cost is estimated to be $100 a linear foot. Your home sets on a lot that is 120 feet by 200 feet. If the county is prepared to pay 70% of the total cost, how much is your special assessment?

$1,800

Mr. Wilson purchased a home from Mr. Smith on June 5th. The sales price was $179,500 and the buyer obtained an 85% loan in order to make the purchase. What are the total state taxes due on this transaction?

$2,095.75

Becky recently purchased a duplex for $75,000. The property has monthly mortgage payments of $650; monthly rent of $625; and expenses of $60 each month. What is the property's gross rent multiplier?

120

Developer Fran wishes to develop a new subdivision in Orlando. Which of the following will be required for this to happen?

A subdivision plat map approval

If the seller defaults in a real estate sales contract, what legal action can the buyer to take to force the seller to close?

Specific performance

The seller is considered to be which of the following?

The vendor

The property appraiser is evaluating all the properties in the county for next year's tax base. The local high school would be considered:

immune

Broker White is working with a buyer in an attempt to sell one of White's listing. White tells the buyer that he honestly feels the property will appreciate substantially over the next five years and, for that reason, the buyer should purchase the property right away. If the property does not increase in value, White could be found guilty of:

Misrepresentation

Shifty Bank is evaluating an applicant's willingness to repay debt. Shifty will be reviewing which of the following as part of the underwriting process?

Credit report that includes credit scores

When an appraiser adjusts the estimate of value on a property because of an outdated kitchen, it is known as:

Functional obsolescence

What is the maximum interest rate that can be bid in a tax certificate auction?

18%

If a licensee renews their license on September 30th, and they never complete a continuing education after then, and don't apply for renewal, how many years will it take for their license to be declared null and void?

4 years Reason:Two years to become involuntary inactive. 2 more years after that to become null and void.

If a government survey system legal description has the word "and" in it 4 times, how many parcels are contained in the legal description?

5

Broker Al has a listing contract that allows him to put a sign in the seller's yard and hold open houses on the weekends. Also, the seller has directed broker Al to make the listing available to other brokers in town and has promised that he will not list with anyone else during the term of broker Al's listing. The seller, however, has reserved the right to sell the property directly without owing a commission to Al. This agreement would best be described as:

An exclusive agency contract

A broker receives an offer with a $3,000 earnest money deposit. What should the broker do with the money?

Deposit the money into a non-interest bearing account immediately, even if there has been no communications with the seller

A broker is preparing a CMA for a client. The broker should do all of the following except:

Determine the reproduction cost of the subject property

Which of the following has loan limits?

FHA insured mortgages

The Federal National Mortgage Association was originally created to purchase

FHA mortgages

What will likely happen if the Federal Reserve System raises the reserve requirement?

Interest rates will rise

Sales associate Joe is employed by Oak Harbor Developers, to sell condominium units and receive a commission of 3%. If Joe wishes to work at another development that Oak Harbor is developing, he should:

Obtain a group license

Developer Dan purchased twenty acres of land to develop and pledged the entire parcel in one mortgage. In order for Dan to sell individual lots to separate buyers, his mortgage should contain a(n):

Release clause

Dave recently deeded a property to his father in a life estate. Upon his father's death, the property will transfer to the Naples Yacht Club in fee simple. What estate does the Naples Yacht Club have?

Remainder estate

The unique location and immobility associated with a parcel of real estate is known as:

Situs

The real estate market is different from other types of markets because it is:

Slow to respond to changes in supply and demand

A complaint was filed against Broker Ann alleging that she had been committing fraud over the internet. For criminal prosecution, it will be likely reported to the:

State Attorney's Office

A seller sells an option to a broker to buy the seller's property for $80,000. Before the option expires, the broker finds a buyer will to pay $92,000. The broker exercises the option and buys the property for $80,000. The next day, the broker sells the same property for $92,000. Which statement best applies

The broker did nothing illegal

A real estate agent was involved in a difficult closing. Which of the following can pay this sales associate a bonus in this situation?

The employing broker

A broker opens a branch office in compliance with the law. The official sign by the front door must include:

The name of the firm, the name of the broker, and the words "Licensed Real Estate Broker"

A sales associate wishes to open up his own office in a separate location from the broker. Which of the following best applies?

This cannot be done under any circumstances because sales associates cannot have their own office