Exam questions 45 HOURS
Business brokerage.
Type of brokerage business specializing in helping small business owner in buying or selling their business?
Commercial brokerage
Type of brokerage specializes in income producing assets like malls, office, restaurants?
VOW Virtual Office Website.
Type of business model that offer the least support like offices, computer space, receptionist?
Option contract
Type of contract is a unilateral that allows a buyer the right to purchase a property within a specified period of time and at a specified price?
life Insurance companies. (Page 116)
Type of lender organized as either a mutual or stock company largest source of funds for financing apartment complexes or commercial properties?
Franchise
Type of structure that offer advantages such as name, proven model, mentoring, advertising?
DPR/ Duties to the department of business and professional responsibilities.
Under the NAR Code of Ethics standard of conduct all of the following duties are included, except?
Mortgage loan originators
What is the term for someone who arranges loans by taking mortgage applications and searching for lenders, but who does not make the loan itself?
Redlining (Page 217)
What is the term use of the illegal practice of denying mortgage on basis of racial composition of the area?
BUYER does not accept any responsibility for the repayment of the debt
What is unique about a Subject To arrangement?
Farming
What term is used for the specializing of one particular neighborhood or property?
Timeshare
What type of property provides the owner with a deed, and a fractional share of ownership for a specified interval of use?
Flat roof
What type of roof is particularly susceptible to damage from standing water?
Investment value
What type of value is the value of a particular property for an investor?
CMA
Which part of listing presentation is most useful to help the seller get to a realistic listing price?
duplex, where the owner occupies one unit and rents the other. Page 2
Which property is considered to be a residential property under Florida Statutes?
MLS / Multiple Listings System. (Page 155)
Which source will most likely produce greatest number of potential buyers for a listing?
Courthouse Auction
Auctions related to enforcement of tax liens, mortgage, property taxes, HOA fees, ?
What type of buyer are you looking for
Important to qualify seller by asking question to understand their motivation and expectations. You must make different questions except?
VA loan with little to no down payment. (Page 138)
In an effort to make it possible for war veterans to buy homes, which is the option?
Condominium
In which type of property does the owner own a fraction of common areas in addition to their unit?
NAR
Largest RE organization in the US
Forbearance
Lender allows a delinquent borrower to suspend monthly payment for a period of time, adding unpaid amount to the principal balance. How is this called?
Selling broker acts as a role model for the employed associates.
2 types of broker, managing and selling if SELLING, what is not a negative consequence?
Doc stamp tax on the deed
A buyer purchases with title taken subject to the mortgage. Which state transfer tax applies?
personal profile.
A good listing presentation explains to seller on why you are a good option as listing agent. Under what section of presentation would you include experience, education, background, personal experience?
BPO, Broker Price Opinion.
A lender requests an estimate of value on an REO , which method would be used?
Property Manager
A particular kind of licensee that handles daily management of property on behalf of the absentee owner is
Principle of Contribution
A pool costs 25K to build but adds 15 K to the appraised value?
Tax depreciation.
Accounting principle allows an investor to write off the cost of an investment in income producing property over a period of time?
Depositing escrow funds.
After buyer signs contracts, your closing responsibilities includes all, except?
Micromanaging
All are considered important to maintaining good brokerage business, and fostering employee loyalty except?
Life insurance.
All are types of insurance associated with the closing of a real estate transaction, except?
Negative leverage.
All are typical goals for a property investor, except?
Typo or grammatical error
All of the following RE ads subject to penalties except?
If the owner finds the buyer, the owner owes no commission to the listing broker
All of the following are characteristics of an Exclusive Right of Sale Listing Contract, except?
Temperature and pressure relief valve. (Page 203)
All of the following are components of a typical AC unit, except?
Experience as a top seller broker
All these skills are essential for a good brokerage office manager, except?
contracted sales price.
Amount actually paid by a buyer is?
USPAP
Appraisals used in federally related transaction must comply with?
Bankruptcy has been filed
Before lender approves a short sales, borrower must demonstrate all of the following except?
Seller must pay the buyer share of the rent for the amount already collected for the month of closing.
Buyer purchases a rental property. Why does the closing statement include a debit for seller and credit for buyer for rent proration?
Bylaws.
Document that describes the basic rules under which a condominium operate?
Racial. (Page 218)
Fair housing law allows certain exemption, except when based on?
An appraisal, done under USPAP.
For federally regulated Real Estate transaction a particular valuation method is used. What is it
Unimproved land.
From the types listed which, when purchased, is the most illiquid and negative cash flow?
Brighten room, cleaning window & turning on lights
Home staging and preparation tip is suggested to make a home more appealing?.
You can assume that approx value of the pool is 20K
Home with pool sold for 250K, another without a pool, but similar otherwise, sold for 230K. What can you assume?
maximum loan amount, and requirement of private mortgage insurance.
How is the loan to value ratio used?
Condo owner owns the units, while Co-op owner owns shares of the Co-Op corporation
Main difference between owning a Co-Op and a Condo?
License revocation
Penalties that may be imposed for a first time minor violation all except?
A CAM license. (
Property manager who are employed and paid by Community Association are obliged to have and maintain which license?
Focus your prospecting on new people, focusing on the same people over and over is waste of time
Prospecting is important for getting new business, the following actions will likely promote that successfully, except?
Social media
Pull marketing is a method of attracting new customer. Which ad is an example of pull marketing?
is to protect borrower by regulating advertising, and require lender's disclosure of true loans costs. (Page 143)
Purpose of the Truth in Lending Act (Regulation Z)?
Lender that have discriminatory lending practices
Real Estate Settlement Procedure Act is a federal law passed in 1974 to provide consumer protection. This includes all, except?
Industrial sales
Real estate professional that deals with warehouses and manufacturing facilities
deliver to broker or employer no later than next business day
Sales assoc gets a check what is he required to do?
He must notify FREC about employer change no later than 10 days after.
Sales associate is unhappy with Broker, and changes employer. What is required by Florida real estate law?
insulating material to resist heat flow
The R value is measurement of what aspect of building?
Property flipping.
Term used to investor purchase of property with the intention of repair, improve, repaint and resale of the property as soon as possible?
Mandate small business owner serving the public to remove physical barriers that prevent the use by persons with disabilities regardless of the cost of impact of the change. (Page 219/220)
The ADA provides all of the following protections, except?
CMA Comparable Sales Approach
The approach to valuation that uses value of similar property recently sold in the same market?
Mission Statement.
The document that describes your overall goal as a professional is
Offer and acceptance of all terms and conditions. (Page 172)
There are 2 elements that must be present to achieve complete agreement or meeting of the minds?
Null and void
What is the status of a sales assoc if they fail to complete with the 45 hr post license?
Provide protection from discrimination in the lease and purchase of real estate. (Page 213)
What are Fair Housing Laws designed to do?
The AS is Where is condition
What auction term means that what the buyer sees is what he gets?
A debit and corresponding credit of expenses between 2 parties to the transaction, with no third party involved
What does a double entry refer to on a HUD closing statement?
Leverage
What investment term refers to the use of borrowed funds to increase potential return of an investment?
When a lender decides to take the title to the property back to the lender, as a voluntary conveyance to avoid foreclosure.
What is a deed in lieu of foreclosure?
Capital Loss.
What is it called when a person sells an investment asset for less than the purchase price?
must be in writing in order to be enforceable. (Page 171)
What is stated by the Statutes of Frauds?
Provide a written Seller's Real Property Disclosure Statement to the buyer. (Page 168)
What is the best strategy when showing a property that has 1 or more material defects
It provides a stronger structure
What is the main advantage of masonry exterior walls in place of wood?
To avoid foreclosure
What is the most likely reason for a lender to temporary reduce the interest rate on a mortgage?
Protect the public health, safety and general welfare
What is the primary purpose of Building Code regulations?
When the foreclosure sale does not give enough money to pay the loan in full
When can lender obtain a deficiency judgement against a borrower?
When lender records a lis pendens and files a lawsuit against the borrower before the court.
When does the foreclosure process officially begin?
Debt service.
When performing a financial analysis on investment property. There is a projection on the potential net income after expenses? Which is not an operating expense?
The employing Broker
When you close a sales transaction. Who pays the sales associate the commission?
Civil Rights Act of 1866
Which Fair housing law prohibited discrimination based on race in the purchase, sale or lease of Real Property?
Highest and best use.
Which appraisal analysis is based on the assumption that every property has a single use, that creates the highest income and return?
Single agency relationship.
Which broker relationships requires duties of confidentiality obedience, loyalty, full disclosure?
Exclusive Buyer Brokerage Agreement. (Page 166)
Which buyer agreement document provides the better protection for the Licensee/Broker?
F.S. 475
Which chapter regulates schools and appraisers?
Foundation. (Page 193)
Which component of a residential building is considered part of the substructure that supports the building's weight?
Illiquid
Which investment term refers to an asset or active that cannot be sold quickly?
Amortized over a specific period of time
Which is a characteristic of a typical conventional loan?
Fannie Mae. (Page 115/119)
Which is an example of a secondary mortgage market lender?
1988 amendment of the Fair Housing Act 1968. (Page 215)
Which law added the condition of being handicapped to the fair housing protective classes?
Directing home buyers towards or away homes from a certain neighborhood to maintain or change the existing makeup of it. (Page 217)
Which statement best describes the practice of steering?
principal loan balance is reduced.
Which statement describes a fully amortized fixed rate loan, where borrower monthly payments are the same?
Inspection is limited to what can be readily observed. Significant problems may go undetected if they are not visible.
Which statement is accurate regarding home inspections?
No unemployed. (Page 226)
Which term or phrase in real estate advertising would be generally considered discriminatory?
Open listing
Which types of listing allows an owner to list the property with more than one broker?
Board of Directors
Who is responsible for governing the Condominium?
For fire protection.
Why is it important for garage to living area door to be solid core?
To provide pre qualification information to the lender
Why is it important to begin qualifying a potential buyer upon first contact?
it is important the understand the ongoing financial health of the company.
Why is it particularly important for a Co-Op owner to review the annual financial statement of the Co-Op?