Georgia AMP test questions

When the broker is unable to convince the property owner that the current market value is the price at which the property should be listed, the broker should:

diplomatically decline to accept the offer as an unrealistic price will attract few prospects in relation to the carry costs (MLS fees, advertising, etc)

Who do mutual recognition agreements apply to?

exclusively to nonresidents licensed in other jurisdictions

The income capitalization approach to value requires collection of data pertaining to:

expected future expenses (the income approach is based on present value of income - info regarding expenses is nesc to calculate projected net operating income)

For income tax purposes, the term "adjusted sales price" means the sale price of a home:

less allowable fix-up and selling expenses (sale price minus selling expenses)

With respect to appraisals; a licensed real estate broker may:

not appraise property that involves a federally related transaction unless the broker is also a licensed or state certified appraiser

The VA total monthly obligations ratio is determined by dividing the total monthly

obligations by the gross monthly income

A mortgage note or bond provides legal evidence of a personal debt and also:

pledges all the assets of the debtor (a Note is a Promise to repay and makes the borrower personally liable for the obligation. The mortgage note serves as evidence of the debt for which the mortgage on the property is security. If security is insufficient to cover the indebtedness, the holder of the note can obtain a deficiency judgement against the debtor

Any broker who places money or other valuables into an escrow account MUST:

review, sign, and date the monthly reconciliation statements

A Sales Assoc helped a buyer locate a home and the buyer made an offer to purchase. The buyer gave the RE Assoc a binder deposit payable to a title co. What must the Sales Assoc do?

the Sales Assoc who prepares the contract shall indicate the name, address and tel# of the title co

What is the maximum allowable homestead exemption for a 65 year old widower who is legally blind?

$51,000 ($25k base + $500 widow + $500 legally blind + $25k for assessed value of $75k or more

What is the maximum allowable homestead exemption for a widow who is a veteran with a 25% disability due to a service connected injury?

$55,500 = 25k base exemption + $500 surviving spouse + $5k for disable vets + 25k additional exemption for homesteads with an assessed value of $75k or more Read the question what is the "maximum" allowable...

The DBPR auditors conducted a routine check of a broker's escrow accounts. Office records reveal that the broker had made 22 sales during the time period checked and that only two of the sales had closed with appropriate disbursements totaling $9000. Binder deposit receipts showed the broker had collected an overall total of $88,000. in binder deposits. Total compensation earned by all 22 sales amounted to $58,500. The brokers account balance at the time of the audit was $20,400. What can be said about the findings of the audit?

$88,000 collected - $9000 disbursements = $79,000 trust liability (but he only has $20,400 in the account). Violations of 475.25 FS pertaining to proper handling of escrow funds is punishable by suspension or revocation

A n example of a previously granted variance would be what?

(example: shopping center that has fewer than the # of parking spaces required per sq ft of rent able space) - allows the owner of a property to vary from strict compliance with all or part of zoning code, because to comply would force undue hardship on the property owner

In the government survey system of legal description, a "check" is subdivided into "townships" that measure:

6 Miles Square

A broker lists a tract that has three mortgages amounting to approximately 90% of total market value. In order to convey title properly to a buyer, which statement is most correct? A. All subordinate mortgages must be either PIF or merged with the first B. The property must be refinanced C. A deed must be voluntarily delivered D. All mortgages must be PIF

A Deed must be voluntarily delivered

Which of the following is an example of a non-freehold estate? A Estate for years B Life Estate C. Fee Estate D. Estate by the entireties

A Estate for years - is a leasehold or non-freehold estate

after a licensee is issued an administrative complaint, has signed the election of rights indicating no dispute and requests an informal hearing; how much prior notice MUST be given the licensee/respondent for that hearing?

A licensee/respondent MUST be given at least 14 Days notice of a hearing

If a property is leased for an indefinite period of time; the tenants interest in the property is said to be:

a tenancy at will

Who may order a final order of summary suspension of a brokerage license?

Any final order listed as a result of a hearing for final summary suspension must be issued by the DBPR Secretary or appointed designee

Which activity is not a real estate service? A. Mortgaging property B. Advertising Property C. Renting Real Property D. Auctioning Real Property

A. Mortgaging property

Which statement is true with respect to a closing statement? A. The balance due the seller is paid by the closing agent B. The balance due the seller is paid directly by the buyer

A. The balance due the seller is paid by the closing agent (the Closing Agent prepares and distributes the appropriate checks)

A real estate co employs a secretary. A buyer walks into the office and hands her an earnest money deposit on Weds (no legal holiday involved). Which Statement applies? A. The broker must deposit the check into the escrow account no later than the end of the business day on Monday B. The receptionist could be fined and jailed for practicing real estate without a license C. The broker must deposit the check no later than the EOD on Friday D. Only a licensed real estate associate is allowed to accept an earnest money deposit on behalf of the broker

A. The broker must deposit the check into the escrow account no later than the end of the business day on Monday

which requirement is not a requirement to hold a FL RE License? A. US Citizenship B. 18 years of age or older C. High School Diploma or GED D. Social Security Number

A. US Citizenship

Two Owner-Developers both have active RE Broker licenses. Together they hire a CPA who is not licensed to supervise the overall development of a large tract of land they are jointly developing into a sub-division. Although the CPA is not experienced in selling RE, he is n excellent business man and as a result manages to exceed the first 18 mo's sales projections. As a reward for his achievement the owner-developers agree to pay the CPA a bonus of 15% of the amount in excess of the first 12 mo's sales projections. This transaction can best be described as:

All 3 have violated 475 FS: Salaried employees of business entities who sell, exchange, or lease real property for their employer are exempt from licensure, providing they are not paid a commission or compensated on a transactional basis.

Each of these is a method of acquiring legal title to real property except: A. Descent B. Quitclaim Deed C. Eminent Domain D. Novation

D. Novation (is the term used for substitution of a new party and/or new terms to an existing obligation

A broker is exempt from all but one of the following notice requirements regarding conflicting demands. Which one? A. A sale of HUD owned property using a HUD contract B. A dispute over escrow funds related to a property inspection C. A buyers cancellation of a residential condominium within the allowable time D. A buyers inability to secure financing for the purchase according to the terms of the contract

B. A dispute over escrow funds related to a property inspection - all the others are exempt

The mortgage must include which of the following? A. Due on Sale Clause B. a Legal Description C. a Granting Clause D. the Mortgagee's signature

B. a Legal Description

A RE Assoc of ABC Realty finds a piece of property while on vacation listed by XYZ Realty. He sells the property to his friend and XYZ pays the Sales Assoc a 10% commission. What can be said about this transaction?

Both the Assoc and the XYZ Broker have violated FL RE Licence Law (The sales assoc can only be compensated by his employer broker - XYZ must pay the selling commission to ABC brokerage who will then distribute according to its arrangement with the sales assoc)

An unlicensed out of state resident referred a prospective buyer to a Tampa Florida broker. The Tampa broker reimbursed the out of state resident for his out of pocket expenses associated with the referral. What can be said about this transaction?

Both the out of state resident and the Tampa Fl broker have violated CH 475 because it is illegal to pay an unlicensed person for performing real estate services.

Real Property Ads and Yard Signs MUST include the name of the:

Brokerage Firm

An up front fee paid to the lender in exchange for a reduced interest rate, generally for the first one to three years, is referred to as:

Buydown - is a financing technique in which points are paid to the lender by the seller or builder that buys down the effective interest rate paid by the buyer-borrower - thus reducing the amount by the monthly for a set period of time.

Which entity is a HUD entity? A DIF B OTS C Ginnie Mae D Fannie Mae

C Ginnie Mae Created by congress in 1968 and is a part of the Dept of Housing and urban Development (HUD)

Which statement does NOT describe an owner's title insurance policy? A. The premium is paid once only - at time of issue B. The policy may not be transferred C. Damages are paid from any defect in title not listed as an exception D. The policy is issued for an amount equal to the unpaid balance of the mortgage loan

D. The policy is issued for an amount equal to the unpaid balance of the mortgage loan (this describes a LENDERS title insurance policy)

The statutory creation of a condominium requires certain basic items of legal documentation, one of which is not: A. Declaration B. Articles of incorporation C. Common elements agreement D. Bylaws

C. Common elements agreement

The best way for a RE Broker to terminate a contract is by: A. Assignment B. Renunciation C. Performance D. Lapse of time

C. Performance (read the question - what is the BEST way...)

In the cost depreciation approach to estimating value, land value is commonly estimated by:

Comparable Sales Analysis is typically used for vacant lots or for valuing a site as though vacant

The master plan developed by planning commissions to manage local growth and preserve living conditions is called the:

Comprehensive Plan

What can be said about construction loans with respect to the RESPA?

Construction loans, except those intended for conversion into permanent loans, are exempt from RESPA

The clause in a mortgage that ensures that the mortgage cannot be foreclosed so long as all payments are current and other conditions are fulfilled is the:

Defeasance Clause

The FREC is obligated to notify which agency when it takes disciplinary action against any licensee of that agency?

Div of FL Condominiums, Timeshares and Mobile Homes

The risk associated with an investment's ability to provide sufficient funds to pay operating costs is referred to:

Financial Risk - AKA Operating Financial Risk

The seller informs the broker that he wants single agency representation. The broker must:

Give the seller the single agent notice (before or at the time of entering into a listing agreement)

Curable functional Obsolescence results in a change in value that is:

Greater than the cost to cure the defect (if correction results in greater added value than the cost to correct, the defect is curable)

For a Ltd Partnership to register as a RE Broker with the DBPR, the LTD Partnership must:

Have all General Partners who will deal with the Public Licensed as Active Brokers

A member of the board of directors of RE Corp "A" is also the owner and broker of RE Corp "B". What can be said about this relationship?

He may serve in a non-brokerage capacity for RE Corp A and be an active broker with RE Corp B

A licensed real estate broker and his wife jointly owned a two-person corporation for profit registered with the DBPR as an active real estate brokerage firm. The wife was registered as an officer of the corporation but had never qualified to be licensed. The broker and his wife mutually agreed to a divorce, and the court awarded the wife the profitable real estate corporation as part of the property settlement. The wife retained her married name, and her husband organized a new brokerage firm. Can the wife continue to operate the brokerage firm?

It illegal for the wife to continue to operate the firm; Rule 61J2-5.015 states: "No registration shall be issued to the corporation or licenses to any officer or director, unless the corporation shall cause to register, and biennially renew the license of at least one active officer

A GA broker has a prospective buyer who wants to buy land in FL in order to build 200 luxury condos. The GA broker contacts a FL broker to help find suitable land. Together they work with the buyer who ends up buying a 60 acre tract for $550,000 and they evenly divide a 10% commission. What can be said about this transaction?

It is a violation of sec 475.25 FS for a licensee to share a commission or pay a fee to a person not properly licensed under 475FS and to practice without a valid and current FL license.

A developer wishes to sell several parcels of vacant land that are encumbered by a blanket mortgage. A broker lists the parcels for $25,000 per lot. A buyer enters into a contract to purchase one of the lots for $24,000. After contacting the lender, the broker learns that in order to release the lot from the blanket mortgage, the lender requires payment of $30,000. What can be said about the brokers part in this transaction?

It is fraudulent and dishonest dealing by trick, scheme, or device for a licensee to knowingly sell or offer for sale any property covered by a mortgage that also covers other property sold, unless the particular property offered for sale may be released from the mortgage any time before foreclosure sale on payment of an amount less than the remaining amount due from the purchase after the sale.

If two or more persons have undivided interest in real property, which estate may NOT be created unless specific wording in the deed provides for right of survivorship? A. Joint Tenancy B. Tenancy in common C. Tenancy by the entireties D. Tenancy at will

Joint Tenancy - A true joint tenancy cannot be created unless specific wording in the deed conveying the property provides for survivorship

A sales assoc's license expired 20 months ago. What must she do to again work as a RE Sales Assoc?

Licensees who have been involuntary inactive for more than 12 but less than 24 mo's are required to complete a 28 hours of a Commission prescribed education course

A recorded legal document that gives constructive notice that an action affects title to a parcel of real property is called:

Lis Pedens

The RESPA does NOT require that:

a uniform settlements statement be used for closing construction loan unless it is intended for conversion into a permanent loan

The FL Time Share Act applies to time share plans consisting of: (7P3)

More than 7 time share periods over at least a 3 year period

Can a property owner give a sales associate or broker a power of attorney to draft a lease?

NO - only attorneys may draft leases for others

A broker sold a home for $150,000. The broker then, at the request of the buyer and seller, prepared a second contract at $180,000 to present to a mortgage company. Can the broker legally do this?

No - it is illegal to enter into a dual contract for the purpose of securing a larger loan

A real estate co is the exclusive representative of the developer of a new subdivision. The RE Co's sales staff will temporarily work out of a mobile home that the developer placed on the property until the model home is completed. Transactions will be closed at the main office. Doe the RE Co need to register the the mobile home as a branch office?

No - the mobile home is a temporary shelter and therefore not considered to be a branch office (as long as transactions are not being closed there).

How long do FL Statutes allow a member to serve on the FREC?

No more than 2 consecutive 4 Year terms

The term "procuring cause" is most significant in which type of listing?

Open (in an open listing the broker who is the procuring cause is the only broker entitled to compensation)

The intent of the Legislature with respect to FL's laws regulating professionals and occupations is to:

Permit any Qualified person to engage in any profession regulated by the State of Florida

Which government restriction on ownership represents the broadest power of government to limit the rights of property ownership?

Police Powers gives the right to impose laws, statutes, and ordinances to protect the public health, safety and welfare and represents the broadest power of the government to limit rights of ownership

A mortgage clause NOT usually found in a VA or FHA mortgage is the:

Prepayment Penalty Clause

Which type of deed will prevent the grantor the BEST assurance of no future liability?

Quitclaim Deed Read the question - here it deals with the GRANTOR

Zone R-1A probably refers to:

R usually designates "residential property"

A real estate licensee who is representing a tenant in a commercial rental wants to share part of her commission with the tenant. Can she do this legally?

Real estate licensees may share their commission with a party to a lease agreement, provided it is disclosed to all interested parties

A sales Assoc receives a binder check made payable to him. What should the sales assoc do?

Return the check and request the buyer make a new check payable to the RE Assoc's broker

During its regular monthly meeting, the Commission modified several license fees and broker advertising requirements. These actions will be reflected in changes to:

Rule 61J2

The owner of an apartment complex plans to be away for a full year. He arranges for a tenant to take care of the complex and to act as his representative during the absence. The tenant is to be given a free apartment and $150 per week for his services. Is this legal?

Salaried employees of an owner of an apartment community who work in a leasing capacity are exempt from licensure - but the tenant can use only legally approved lease forms during the owner's absence

An active broker accompanies her husband, who is an active duty member of the military, when he is stationed in San Diego, CA for 5 years. She is not active in RE during those 5 years. What must she do to obtain a current FL Broker's license within 6 mo's of her husbands discharge?

She need not complete anything - a member or members spouse of the US Armed forces who at the time of entry into those armed forces has an active FL license in good standing is exempt from all renewal requirements while on active duty and for six-months thereafter when the military duty is out of state.

The process of land build up from water-born rock, sand and soil is called:

accretion

Lenders will often use what type of deed to convey property to a new buyer that has been taken through foreclosure?

Special Warranty Deed (because the lender only assumes title responsibility for the period the title was in the lenders name)

if a tenant legally subrogates or subordinates the rental space, it means the tenant has:

Subleased the lease

To determine the correct amount of property tax for a property, multiply the tax rate by the:

Taxable Value of the Property

A tenant's lease expired Nov 30. He continued to occupy the premises and to mail his monthly rent payment to the landlord on the date due prior to the expiration of the lease agreement. The tenant is a:

Tenant in Sufferance

A buyer gave an earnest money deposit of $5,000 together with an offer with the provision of finding suitable financing. The seller accepted the offer. Two weeks later the buyer advised he was unable to obtain financing and asked for a return of his earnest money deposit. The broker made the surprised Buyer and seller aware of fine print in the contract for sale that entitled the broker to the earnest money deposit in the event the transaction did not close. What could be said about this transaction?

The $5,000 deposit should be returned to the buyer (A provision providing for the broker to retain the deposit would have had to been disclosed and agreed to by both the buyer and seller

The clause in a mortgage in which the lender waives the right to a deficiency judgement against the borrower and the borrower is relieved of personal liability is:

The Exculpatory Clause

If a legally sufficient complaint has been filed, investigated and found valid, the next step in the complaint process is:

The Probable Cause Panel will determine if Probable Cause exists

The broker of record for a real estate co is working with a buyer as a buyer's single agent. The buyer becomes interested in a property listed by the brokerage as a transaction broker. What can be said about this arrangement?

The RE Co cannot be a transaction broker for one party and a single agent for the other party - the buyer would have to agree to transition to a transaction broker relationship

Authority to physically evict a delinquent tenant from rented property is vested in:

The Sheriff - at the time the sheriff executes the writ of possession or any time thereafter, the landlord or the landlord's agent may remove any personal property found on the premises to or near the property line

The most important objectives of the federal TIL Act are to ensure disclosure of finance charges and:

The annual percentage rate

A buyer is considering making an offer to purchase a 50-unit beachfront time-share development from the seller. The buyer and seller have requested that a licensed RE assoc act as single agent representative for both of them. What can be said about this request?

The arrangement is in violation of 475 FS because for an individual to represent both the buyer and seller as a single agent is a dual agent relationship and illegal in the St of FL (in a nonresidential transaction where both the buyer and seller have assets of at least 1mm, the buyer and seller may request that the broker designate One licensee in the firm to be single agent for the seller and ANOTHER licensee a single agent for the buyer

A broker received an offer and earnest money deposit on Thurs 7/10 at 930AM. The owner of the property will not be in town until Weds 7/16, to consider the offer. The broker's next normal banking day will be Mon 7/14, however he has a large safe built into the wall of his office. FREC requires the broker to:

The broker must deposit the earnest money deposit in escrow by the end of the 3rd business day following receipt of funds - therefore, the broker must deposit these funds by the close of business on Tues 7/15

A broker receives conflicting demands from the buyer and the seller, The broker properly notifies the FREC and requests an EDO. However, before the order is issued the buyer and seller sue one another. What must the broker do in this situation?

The broker must notify the FREC within 10 business days

A prospective tenant wants to install a ramp at the front door and handrails in the bathroom of a bungalow cottage. What can be said about this?

The tenant may make the modification at her own expense (sec 760.23 FS prohits landlords from refusing to allow a tenant with a disability to make reasonable modifications to a res dwelling at the tenants own expense

A buyer makes a written offer on a seller's property. The seller makes a counteroffer. which seller accepts. The listing broker conveys the buyers written acceptance to the seller. At this point, the offer becomes what?

an express contract (written = express, verbal = parol)

A lic RE assoc conducted an appraisal for a fee. The FREC found the licensee to be in violation of the Uniform Standards of Professional Practice. What penalty may the FREC impose?

The licensee is subject to suspension or revocation of her RE license

A son who was not a licensed RE agent assisted his father in finding buyers for his father's lots. The son received no money but the father agreed to give the son a lot, free and clear, after he provided buyers for 5 lots. The son found full time employment before finding the 5th buyer and so did not earn his free lot. What could be said about this arrangement?

The son and the father both violated 475FS for intent - an unlicensed individual may not perform RE Services for compensation (anything of value)

A buyer orally agrees to purchase a sellers home, gives the seller a down payment and the buyer moves into the home. Why is this an enforceable contract?

The statute of frauds mandates real estate contracts be in writing with the following 2 exceptions: (1 )buyer has paid part of the purchase price AND takes possession or makes improvements (2) if both parties have fully performed all of the terms of the oral agreement.

A husband and wife owned a homesteaded property. The husband also owned investment property in severalty. The husband died testate and left his investment property to his sister. What claim(s) does the wife have on these two properties?

The wife may file for an elective share (30%) of the investment property in addition to having 100% interest in the principal residence

A FL broker has multiple licenses. She is an active broker with two different companies. A sales assoc for CO 1 procures a listing and a sales assoc for CO 2 procures a buyer who has entered into a contract to purchase a condo. What can be said about this relationship?

This is a legal arrangement because two separate RE Co's are involved.

A Florida broker purchased some raw acreage and developed it into several hundred building lots. The FL broker contacted an AL broker and offered him $150 for every prospect he sent to FL who bought a lot. What can be said about this arrangement?

This is a perfectly legal arrangement; it is legal to pay an out of state broker a referral fee - providing the out of state broker does not come to FL and practice RE

Buyer and seller have entered into a RE contract. The broker neglected to enter a closing date on the contract. What can be said about this contract?

This is a valid and enforceable contract (although a closing date is desirable, it is not a required element to make a RE contract enforceable - if nesc the courts may interpret the closing to be accomplished in "a reasonable period of time")

A sales assoc is frustrated with a buyer who uses him to drive the buyer around and then makes an offer on property through another broker. To help "tie" the buyer to the sales associate, he requires the buyer to deposit $500 with the real estate co to show intent of purchase through the re co. If the buyer buys then the $500 will be paid towards the earnest $ deposit. If the buyer does not purchase through the re co then the buyer forfeits the $500. What can be said about this arrangement?

This is perfectly legal but the $500 is a trust fund and buyer paid fees must be placed in the brokers escrow (trust) account

A RE Assoc indicates on his business cards he is a "Realtor" however, his membership dues have not been paid to his local board in 2 years and his membership has lapsed. Can the FREC discipline him for using the "Realtor" logo on his business cards?

Yes, the FREC can fine him a $300 citation for misrepresenting he is a Realtor and current member of FAR

A landlord owns a duplex and collects rent on her own behalf. Is she required to maintain deposits and advance rents in compliance with the FL Residential Landlord and Tenant Act?

Yes, the landlord must account for rental deposits regardless of the number of rental units and regardless if the landlord is the owner.

Listing agreements do not have which requirement?

Written Form - Listing Agreements MUST Have: Definite Expiration Date Description of the Property Fee Commission Charged

A FL Broker wants to register an office located in NYC as his principal RE Office. May he do so?

Yes, the Broker's principal office may be located outside the state as long as the broker's escrow account is maintained in a FL institution

A broker has appointed two sales associates to be designated sales associates in a real estate transaction. CH 475 FS does not require:

the transaction to be a residential sale (designated sales agents may be used on nonresidential transactions only) buyer and seller must each have $1mm min in assets and designated sales assoc have the duties of single agent, including disclosure requirements

The real taxable value of a Florida resident's home will NOT be known until the:

total existing exemptions are subtracted from the current assessed value

What is the difference with regard to title between a purchase money mortgage and a contract for deed?

with a Contract for Deed the seller retains title until the buyer has made all the mortgage payments

The broker MUST give a copy of the written listing agreement to the seller:

within 24 hours after the seller signs the agreement