50 Most Asked Questions On Florida Real Estate State Exam

23. If the assessed value of a homesteaded residence was $89,000, and the homeowner was blind, what is the amount of the Constitutional Homestead tax exemption? a. $50,500 for city and county taxing districts, and $25,500 for the school board taxing district. b. $50,000 for city and county taxing districts, and $25,000 for the school board taxing district. c. $25,000 for the city, county, and school board taxing districts. d. $25,500 for the city, county, and school board taxing districts.

a

38. Which of the following clauses or covenants in a deed states that the grantor owns the property and has the right to convey it? a. Covenant of seisin b. Covenant against encumbrances c. Habendum clause d. Covenant of further assurances

a

43. From the point of beginning if you run north 90 degrees east, which direction are you headed? a. East b. North c. Northeast d. West

a

6. Which mortgage clause allows the mortgagee the right to demand the outstanding loan balance plus accrued interest in the event that the borrower sells or transfer any interest in the property without the lenders prior written consent? a. Due-on-sale Clause b. Escape clause c. Acceleration clause d. Estoppel clause

a

7. Which of the following statements concerning market value is true? a. Market value is the most probable price a property should bring in a competitive and open market under all conditions, requisite to a fair sale under certain guidelines published by Fannie Mae and Freddie Mac. b. Market value is the same as price. c. Market value is the value an investor would typically pay. d. Market value is the same as the cost of the property.

a

50. The total property values in the city total $5,495,000. The government building value totals $450,000. The church value totals $125,000. The total tax exemptions total $950,000. What is the tax revenue of the city if the overall tax rate is 9.2 mills? a. $36,524 b. $402,000 c. $59,568 d. $450,200

a, $5,495,000 - $450,000 - $125,000 - $950,000 = $3,970,000 $3,970,000 x .0092 = $36,524

12. What are the documentary stamp taxes on the deed on a property that sold for $468,310 and has an assumed mortgage of $125,000 and a new mortgage of $205,000 with a list price of $500,000? a. $3,278.80 b. $4,158.20 c. $2,450.00 d. $3,194.10

a, This is a transfer tax question from chapter 14 and very popular. When you are asked for the documentary stamp taxes on the deed you only need the sales price. No other figure. $468,310 Once you have the sale price you are going to divide it by 100 because you need to find the tax units. 468,310 / 100 = 4,683.10 Because you are finding tax units, if there is ANY remainder, you must round up. Think of these tax units as individual stamps and if you need any portion of another stamp, then you need a whole new stamp. 4,683.10 becomes 4,684 (this is the only time you will round) Then you must memorize that every tax unit costs .70 cents. (every time) 4,684 x .70 = $3,278.80

1. Which of the following describes leverage? a. Leverage is the same as cash flow. b. Leverage is the use of borrowed funds to purchase assets or to finance an investment. c. Leverage can only be positive. d. Leverage is when an investor uses his equity to finance an investment.

b

2. How is the binder deposit shown on the Closing Disclosure Form? a. Credit to the buyer, debit to the seller b. Credit to the seller c. Credit to the buyer d. Debit to the buyer, credit to the seller

c

22. Which of the following liens would take priority? a. A vendor's lien filed on December 12th 2017 b. A mechanic's lien filed on January 1st 2018 c. Property tax lien filed on January 14th 2018 d. Construction lien filed on January 15th 2018

c

26. How many sections are in a township? a. 640 b. 43,560 c. 36 d. 30

c

28. How is the intangible tax typically noted on the Closing Disclosure Statement? a. Debit to the seller, credit to the buyer b. Seller debit only c. Buyer debit only d. Credit to the seller, debit to the buyer

c

29. Which applies if a licensee calls a broker's price opinion an appraisal? a. The licensee could be charged a third-degree felony. b. The licensee could be charged with breach of trust. c. The licensee could be punished by The Florida Real Estate Commission. d. The licensee could be charged with a notice of non-compliance.

c

34. When must the no brokerage or the non-representation disclosure form be shown? a. Before entering into a listing agreement b. Before or at the time of becoming a single agent c. Before showing property d. At the open house

c

36. In the event that a broker chooses not to have an escrow account, the funds are typically held at a title company or in an attorney's escrow account. If the funds are held at a title company or in an attorney's escrow account, what must be included on the purchase and sale contract regarding the title company or attorney? a. Name, address, email and phone number of the title company or attorney. b. Name and phone number of the title company or attorney. c. Name address, and phone number of the title company or attorney. d. Name, address, email, phone number and account number of the escrow account.

c

40. When must a broker deposit funds into the escrow account? a. 10 days b. 5 days c. Immediately d. 1 day

c

42. What type of rights are associated with water flowing through your property? a. Littoral rights b. Erosion rights c. Riparian rights d. Air rights

c

44. What is the effective yield to the lender if the borrower has 5% interest on a loan and purchases 4 points? a. 5% b. 6% c. 5.5% d. 5.25%

c

48. Which of the following is deductible on a homeowner's federal income taxes? a. Mortgage payments and mortgage interest b. Mortgage payments only c. Mortgage interest and property taxes d. Property taxes only

c

49. A broker sold three houses in Florida to a customer that now lives in New York. This same customer uncovered an opportunity with someone who might want to buy property from the Florida broker. The customer asked the broker if he would reimburse her for the expenses incurred in convincing the person to buy property from the Florida broker. Which applies? a. The broker can reimburse the customer for the expenses provided it is for a referral. b. The broker can reimburse the customer for the expenses, but the total of the reimbursement cannot exceed $50.00. c. The broker cannot reimburse the customer because the customer does not have an active real estate license in Florida. d. The broker can reimburse the customer because this is out of state.

c

5. When a lender declares all the unpaid balance due and payable as a result of default, the lender is exercising which clause in a mortgage? a. Due-on-sale clause b. Escape clause c. Acceleration clause d. Estoppel clause

c

8. William, who holds title in fee simple of a 35-acre property, deeds the land to Robert until Robert dies. At that time, Tonya is to receive title to the land. Which statement is true concerning this situation? a. William has a life estate and Robert has a remainder estate b. William and Robert have life estates c. Robert has a life estate and Tonya has a remainder estate d. William has a life estate

c

15. A broker listed his neighbor's house and at the listing appointment the neighbor disclosed that the floor was ripped up in one part of the kitchen. It is a small tear in the linoleum that the homeowner has covered by a rug to prevent someone from tripping. Which applies? a. The broker has no legal obligation to disclose to a potential buyer the tear, but he should disclose the tear for ethical reasons. b. To be legal, the broker must tell potential buyers about the tear in the kitchen. c. If the broker has a transactional brokerage relationship with the seller, then the broker is under no obligation to disclose the tear in the kitchen floor. d. The broker can use his judgment concerning the disclosure of the kitchen floor tear.

b

16. Which of the following disclosures must be signed? a. The no brokerage relationship disclosure form b. The consent to transition to transaction broker disclosure form c. The single agent disclosure form d. The transaction broker disclosure form

b

17. Which of the following statements is true concerning advertising? a. Advertising is not a service of real estate. b. Blind advertisements are advertisements that fail to disclose the name of the brokerage firm. c. If you are on a team, there are no restrictions on the size of the lettering of your team's name. d. Sales associates can advertise in their name only, not including the name of the brokerage firm.

b

30. In which theory in mortgage lending does the borrower not retain ownership during the loan period? a. Lien theory b. Title theory c. Mortgage theory d. Law theory

b

31. Which of the following describes an option contract? a. A bilateral contract to keep open for a specified period of time an offer to sell or lease real property. b. A unilateral contract to keep open for a specified period of time an offer to sell or lease real property. c. A unilateral contract that is not required to be in writing to be enforceable. d. A bilateral contract that is not required to be in writing to be enforceable.

b

33. What are the set of guidelines called that must be followed by appraisers? a. USPAP (Uniform Standards of Private Appraisal Practice) b. USPAP (Uniform Standards of Professional Appraisal Practice) c. USPAB (Uniform Standards of Professional Appraisal Basics) d. USPAC (Uniform Standards of Professional Appraisal Contracts)

b

39. What kind of listing is used when the seller requires a specific amount of money from the transaction in order to list with a brokerage? a. Exclusive listing with right of sale listing b. Net listing c. Exclusive agency listing d. Open listing

b

45. When individual parcels are released on a blanket mortgage loan, what type of clause is used? a. Escape clause b. Partial release clause c. Estoppel clause d. Mortgage clause

b

47. When there are more houses on the market than prospective buyers, what type of market is created? a. Seller's market b. Buyer's market c. Even market d. Buyer's and seller's market

b

9. If the subject property has three bedrooms and the comparable property has two bedrooms, and a bedroom is worth $10,000, the correct adjustment is to a. add $10,000 to the subject value. b. add $10,000 to the comparable value. c. subtract $10,000 from the subject value. d. subtract $10,000 from the comparable value

b

25. A property sold for $450,000. The sales associate that listed the house is entitled to 70% of all commissions earned. If the sales associate's check was $22,050, what was the property listed at? a. 6% b. 7% c. 8% d. 7.5%

b, This is a commission question. Everyone gets a commission question. There are many ways to do this problem, I am going to show you the substitution method. All commission questions follow the same formula: Step one: Sales price times whatever the listed commission is = total commission paid by the seller Step two: Whatever the total commission is then you times that by what the sales associate is entitled to keep For example: 450,000 x .07 = 31,500 (this is the total commission paid by the seller) 31,500 x .70 = 22,050 Our question did not give us the listed commission, but we substituted it in and was able to match the sales associates check. You can do this many different ways, but I like to use each answer and follow the very specific formula to arrive at the answer.

10. How many acres and square feet are there in the legal description N1/2 of the SE1/4 of the NW1/4 and the N1/2 of the S1/2 of the SE1/4 of the N1/4 of section 11? a. 20 acres and 3,450,000 square feet b. 30 acres and 1,306,800 square feet c. 30 acres and 2,613,600 square feet d. 80 acres and 3,484,800 square feet

b, This is an extremely popular math question from chapter 10. Every section has 640 acres so every time you see a question that asks you to determine how many acres or how many square feet are in any one section, you are always going to start with 640. Then you will divide 640 by the denominators, (bottom number of the fraction) to arrive at the number of acres. With these problems you are looking for the word AND because if you see the word AND, you will need to start at 640 again because they are asking you about two separate pieces of property. You will need to add the two pieces together. 640/2/4/4= 20 acres 640/2/2/4/4= 10 acres 20 + 10 = 30 acres Once you know this piece of property has 30 acres you can multiply that by 43,560 which is the number of square feet in one acre. 1 acre = 43,560 square feet 43,560 x 30 = 1,306,800 square feet The answer is 30 acres and 1,306,800 square feet

13. Broker Kenny has decided to send out flyers to increase his revenue. Kenny had his licensed assistant send out 500 flyers to business owners in the city. On the flyers it was explained that for every buyer or seller that they send Kenny, he will give them a referral fee of $50. Which applies? a. Brokers can give referral fees to anyone, sales associates cannot. b. No violation has occurred because the referral fee was not over $50. c. Kenny is in violation of F.S. 475 and could be punished by the Commission. d. Kenny can give referral fees to anyone he chooses, but only if they provide an actual referral to him.

c

14. Which of the following is a set of administrative rules developed by The Florida Real Estate Commission? a. Chapter 621j b. F.S. 120 c. Chapter 61j2 d. F.S. 475

c

18. Which of the following is a written opinion of value? a. An appraisal b. A comparative market analysis c. A broker's price opinion d. USPAP

c

19. Which of the following is the type of method a surveyor would use to describe a property that is in a subdivision? a. Surveyor's method, also called the metes and bounds b. Surveyor's method, also called the lot and block method c. Plat method, also called the lot and block method d. Plat method, also called the government survey method

c

24. A building is 4 stories high and each floor is 100x50. I want to put bins in all the space I can. I can't use 20% of each floor. The bins are 5x5. How many bins can I put in the building? a. 320 b. 610 c. 640 d. 590

c, This is called the bins question. Very popular A four-story building where each floor contains 100x50 feet. 100 x 50 = 5,000 100 x 50 = 5,000 100 x 50 = 5,000 100 x 50 = 5,000 5,000 + 5,000 + 5,000 + 5,000 = 20,000 (this represents how many square feet the building has) But you can't use the whole building for bins. You cannot use 20% of that 20,000. 20,000 x .20 = 4,000 (this represents how many square feet you CANNOT use to put bins in) 20,000 - 4,000 = 16,000 (this represents how many square feet you CAN put bins in) If each bin is 5 x 5 then each bin is 25 square feet. 16,000 / 25 = 640 bins If you do not get this question, you will likely have a similar question, but it won't be about bins, it will be about trying to put lots into a development. It is the same concept.

11. Which of these describes of a non-freehold estate that includes a definite specified amount of time? a. Tenancy at will b. Estate by the entireties c. Life estate d. Estate for years

d

21. Which of the following is incorrect concerning FHA and VA mortgages? a. FHA and VA mortgages are government loans and therefore assumable. b. FHA is a government-insured loan. c. VA is a government guaranteed loan and could be accompanied by a funding fee. d. VA is a government insured loan and could be accompanied by an origination fee.

d

27. If a newly licensed sales associate enters into a single agency relationship with a seller and that principal asks the sales associate to discriminate in the showing of the property, which applies? a. The sales associate should report the principal to the Department of Housing and Urban Development. b. The sales associate should contact their lawyer. c. The sales associate should report the principal to The Florida Real Estate Commission. d. The sales associate should inform the principal that discriminatory behavior is a violation and if the principal persists, the sales associate should withdraw from the transaction.

d

3. What is the status of a sales associates' license if he/she does not complete the required post licensing education prior to his/her first renewal cycle? a. Involuntary inactive b. Void and inactive c. Suspended d. Null and void

d

32. What is the maximum amount of time that The Florida Real Estate Commission can suspend a licensee's license? a. 6 months b. 30 days c. 2 years d. 10 years

d

35. Which of the following is true concerning taking listing contracts when a licensee leaves a brokerage? a. If a sales associate takes original listing contracts, he could be charged with breach of trust. If a sales associate takes copies of listing contracts, he could be charged with larceny. b. If a sales associate takes originals or copies, he could be charged with a first-degree misdemeanor. c. If a sales associate takes original listing contracts, he could be charged with a third-degree felony. d. If a sales associate takes original listing contracts, he could be charged with larceny. If a sales associate takes copies of listing contracts, he could be charged with breach of trust.

d

37. A broker provided an up to date and accurate rental list for a $350.00 fee. The potential tenant was unable to obtain a rental and requested a refund. Which applies? a. If the potential tenant makes the request within 30 days, the licensee would be required to provide a full refund of the $350.00. b. Because the potential tenant did not locate and obtain a rental, the licensee is not required to refund any portion of the fee paid. c. The request must be in writing and within 30 days in order for the potential tenant to obtain a refund. d. If the potential tenant makes the request within 30 days, the licensee would be required to provide a refund of $262.50.

d

4. Which of the following is not true concerning kickbacks. a. Not all kickbacks are illegal. b. A real estate licensee may not be paid a fee for referring buyers to a title company. c. Kickbacks cannot violate RESPA (Real Estate Settlement Procedures Act). d. All kickbacks are illegal.

d

41. What is the penalty for a first-time minor violation? a. 3rd degree felony b. 1st degree misdemeanor c. 2nd degree misdemeanor d. Notice of non-compliance

d

46. Which of the components of an adjustable rate mortgage adjusts the interest rate? a. The margin b. The spread c. The rate d. The index

d