Real Estate Licensing Test Questions Pt 5
A sales associate has a 20-acre parcel of land for sale and is aware there is a cloud on the title. When a purchaser is found, he fails to mention the cloud, hoping it will be cleared before closing. Which statement about the sales associate's action is CORRECT? a.) It is deemed fraudulent and dishonest dealing by trick or scheme. b.) It is legal, only if the sales associate can clear title before closing. c.) Advising the purchaser of the title problems is not required because this is the seller's concern. d.) The contract allows for clearing of titles and, thus, will be taken care of by attorneys for the principal.
It is deemed fraudulent and dishonest dealing by trick or scheme.
Raising the professional and ethical standards of real estate licensees is one goal of the a.) Florida Bar Association. b.) National Association of Realtors. c.) Florida Real Estate Commission. d.) National Association of Agents.
National Association of Realtors.
Williams, Johnson, and Ortez are the only licensed brokers in Bay Lake. They meet and agree to set their commission rates at 7.5% or more. Do they have a legal agreement? a.) Yes, because it is an example of free enterprise. b.) Yes, as long as the agreement is disclosed in writing. c.) No, because any commission-setting agreement must first be approved by the Secretary of State. d.) No, because it violates the Anti-Trust Laws of the United States.
No, because it violates the Anti-Trust Laws of the United States. (This is price fixing, which is illegal due to antitrust regulations.)
Julie is employed by Sand Dollar Syndicators. She sells and leases only properties owned by Sand Dollar. Her earnings are based on her sale and lease activity. According to Florida Law, is Julie exempt from licensing requirements? a.) Yes, she is exempt from all licensing requirements. b.) No, she must comply with all licensing requirements. c.) Yes, as long as 50% or more of her income is from commissions. d.) No, unless she shows less than 25% of her income is from commissions.
No, she must comply with all licensing requirements.
A developer has a 75-acre subdivision with lots ready to sell, but the land is encumbered by a blanket mortgage. He employs a broker to sell the lots. A buyer purchases a lot for $20,000. The broker does not inform the buyer that the lot can only be released from the blanket mortgage if he pays the lender $24,000 in cash. Which of these is a CORRECT statement? a.) The broker has done nothing illegal. b.) Only the broker is in violation of Chapter 475, Florida Statutes. c.) Neither the broker nor the developer have violated Chapter 475, Florida Statutes. d.) The transaction would be legal, if the buyer could release the lot from the blanket mortgage upon a $12,000 cash payment.
Only the broker is in violation of Chapter 475, Florida Statutes.
Each discount point paid on a monthly amortized 25-year mortgage held to maturity raises the effective interest rate on a loan by approximately a.) 1/16% b.) 1/8% c.) 1/4% d.) 1/2%
1/8%
How many business days does a broker have to notify the FREC, in writing, of conflicting demands or of a good faith doubt? a.) 3 days b.) 7 days c.) 15 days d.) 30 days
15 days
John owned the N 1/2 of a section. He sold the W 1/4 of his N 1/2. How many acres does John still own? a.) 160 acres b.) 240 acres c.) 320 acres d.) 300 acres
240 acres (One section is 640 acres. To calculate the size of John's original section: 640 x 1/2 = 320 acres. John sold: 320 acres x 1/4 = 80 acres. So he still owns 240 acres (320 - 80))
There are _____ sections in a township. a.) 12 b.) 18 c.) 30 d.) 36
36
The Florida Statutes that define the general legal practice and procedure for the Department of Business and Professional Regulation (DBPR) and the licensees of all professions, including real estate, are Chapter 475 and Chapter a.) 20. b.) 120. c.) 455. d.) 718.
455.
An owner owns a vacant mercantile building that measures 200 feet X 400 feet per floor and is four floors high. The owner wants to divide the space into bins and rent the bins to persons desiring storage for household goods. On each floor 15% of the available floor space will be needed for corridors and elevators and is unusable. Each storage bin measures 20 feet X 20 feet. The owner can construct in the building how many bins? a.) 400 b.) 480 c.) 680 d.) 800
680 (Total square feet = (200 feet x 400 feet) x 4 floors = 320,000 total square feet Useable square feet = 320,000 x 85% = 272,000 square feet Bin square feet = 20 feet x 20 feet = 400 square feet Total number of bins = 272,000 / 400 = 680)
George is looking for rental space and pays a fee to a broker for a list providing rental information. George never finds a suitable rental. As long as he makes a timely demand, George is entitled to a refund of how much of the fee? a.) 100% b.) 75% c.) 50% d.) 0%
75%
Which of these is an INCORRECT statement about the ethical and legal constraints on the activities of Florida real estate brokers? a.) Information that a broker learns about a principal -client should be kept confidential. b.) A broker should withhold facts that materially affect the value of the property and are not readily observable to the buyer. c.) If employed by his client-principal to sell, the broker should try to get the highest possible price. d.) A broker should submit any and all offers received on a listing.
A broker should withhold facts that materially affect the value of the property and are not readily observable to the buyer.
An owner is selling a small vacant lot he owns free and clear for $15,000. He gives a broker an option to buy the lot at that price or find a purchaser. The broker pays $1000 for the option. Before the option expires, the broker sells the property to a third person for $21,000. The broker advised the buyer during the negotiations that she was the optionee. Which of these is a TRUE statement? a.) The broker is guilty of fraud. b.) After paying the appropriate closing costs, the broker may keep the amount of money above and beyond the option purchase price. c.) The broker is guilty of violating her fiduciary relationship with the owner. d.) The broker has violated Chapter 475, Florida Statutes.
After paying the appropriate closing costs, the broker may keep the amount of money above and beyond the option purchase price.
Which is NOT an acceptable place for a broker to deposit escrow funds? a.) Broker's interest-bearing escrow account in a Florida commercial bank. b.) Broker's non-interest-bearing escrow account in a Florida commercial bank. c.) Any licensed real estate attorney in any state. d.) Florida-based title company that has trust powers to maintain the escrow funds.
Any licensed real estate attorney in any state. (Escrows funds can be deposited into an escrow account managed by the broker, Florida-based title company, or Florida licensed attorney.)
Choose the INCORRECT statement regarding a broker's escrow account. a.) The escrow account may be placed in a commercial bank, a credit union, a title company having trust powers, or a savings association in Florida. b.) When a broker receives a deposit, he must make the deposit into the escrow account no later than the end of the third business day following the receipt of the item to be deposited. c.) The broker may receive interest only if provided for by a written agreement of all parties. d.) Binder deposit and personal or brokerage funds up to $6,000 may be kept in the escrow account.
Binder deposit and personal or brokerage funds up to $6,000 may be kept in the escrow account. (Funds from the escrow account may not be commingled with funds in broker's other accounts.)
Which Florida Statute gives the Florida Real Estate Commission the authority to discipline Florida-licensed real estate professionals? a.) Chapter 20 b.) Chapter 83 c.) Chapter 120 d.) Chapter 455
Chapter 455 (Florida Statutes, Chapter 455 states that licensed professions "shall be regulated only for the preservation of the health, safety, and welfare of the public under the police powers of the state".)
Choose the statement that is TRUE regarding kickbacks and rebates. a.) A real estate sales associate is permitted, under certain conditions, to receive kickbacks or rebates. b.) Florida Real Estate Licensure Law forbids licensees to accept kickbacks or rebates under any circumstances. c.) A sales associate, with the consent of his or her broker, may receive a kickback or rebate, irrespective of other parties to the transaction. d.) If a broker is to receive a kickback or rebate, all parties involved must have been advised prior to the time of the placement of the kickback or rebate.
If a broker is to receive a kickback or rebate, all parties involved must have been advised prior to the time of the placement of the kickback or rebate. (Kickbacks may be legal under limited conditions, including that all parties to the transaction are informed.)
In a metes and bounds legal description, the direction "N 10 degrees E." would be exactly opposite from the direction a.) N 10 degrees W b.) S10 degrees W c.) N 80 degrees W d.) S 80 degrees W
S10 degrees W
Choose the statement that is INCORRECT regarding the placement of an escrow deposit with a title company or with an attorney. a.) The purchase agreement must show the title company's name (or attorney's name, if applicable), address, and telephone number. b.) Written verification of the deposit must be requested no later than 10 business days after each deposit is due under the contract terms. c.) The licensee's broker must provide the seller's broker with a copy of the written verification no later than 10 business days of the verification. d.) The seller's broker must give notification no later than 15 business days of the verification.
The seller's broker must give notification no later than 15 business days of the verification. (The buyer's broker is responsible for providing written verification of the deposit to the seller's broker.)
A buyer purchases a home through a broker, and the buyer's $20,000 binder deposit is in the broker's escrow account. The buyer tells the broker that she wants her escrow money to be placed in an interest-bearing account. What can the broker do? a.) Transfer the funds immediately to a special interest-bearing account and credit the buyer with all interest received. b.) Transfer the funds immediately, and divide all interest received at the time of the closing. c.) Transfer the funds after all parties have agreed, in writing, as to who will receive the interest in the event of either a closing or default. d.) Nothing, because it is unlawful to transfer funds once they have been deposited into an escrow account.
Transfer the funds after all parties have agreed, in writing, as to who will receive the interest in the event of either a closing or default. (If escrow funds are held in an interest-bearing account, the broker must get written authorization regarding the distribution of interest.)
The term "title," regarding real property, is best defined as a.) having a contract on a property. b.) having a conveyance of the property. c.) conveying an estate for years. d.) a concept signifying ownership of the collection of rights.
a concept signifying ownership of the collection of rights.
If this clause is present in a mortgage, the lender has the power to declare the entire unpaid mortgage amount due and payable. The lender may foreclose if the mortgagor does not pay. This clause is known as the a.) acceleration clause. b.) defeasance clause. c.) due-on-sale clause d.) escalation clause.
acceleration clause.
A mortgage whose interest rate increases or decreases periodically according to an economic index agreed upon in advance is a(n) a.) reverse amortization mortgage. b.) balloon mortgage. c.) term mortgage. d.) adjustable-rate mortgage.
adjustable-rate mortgage.
When legal contracts use the term "consideration," they refer to a.) an act, promise, or monetary compensation given in exchange for something. b.) a careful review of all contract provisions. c.) an appraisal of real property. d.) just monetary compensation in the form of cash, goods, or services.
an act, promise, or monetary compensation given in exchange for something.
A buyer signs an agreement with a broker to find a home for his family. This buyer-broker agreement is a.) an option contract. b.) an employment contract where the broker can only be a single agent. c.) an employment contract with the buyer. d.) where the buyer pays the sales associate directly.
an employment contract with the buyer.
A post-licensing education course must be successfully completed by sales associates a.) before placing their license with the broker. b.) before the first renewal of their license. c.) after the first renewal of their license. d.) after the second year of holding an active license.
before the first renewal of their license.
In Florida, if a homestead is in only one spouse's name, or if it is co-owned by a married couple, then a.) only one of the spouses needs to sign the real estate sales contract. b.) only the spouse whose name is on the deed must sign the real estate sales contract. c.) either one of the spouses may sign the real estate sales contract. d.) both spouses must sign the real estate sales contract.
both spouses must sign the real estate sales contract. (Married couples own a homestead property together as tenants-by-the-entireties and both must sign the contract to sell the property.)
When a homestead is owned by a husband and wife as tenants-by-the entireties, a contract for sale can only be enforced if a.) both the husband and the wife signed the contract. b.) the contract has been acknowledged. c.) the contract has been recorded. d.) no tax liens exist.
both the husband and the wife signed the contract.
When a sales associate is in the process of changing from one employer to another, his or her license a.) ceases to be in force. b.) is revoked. c.) is suspended. d.) is terminated.
ceases to be in force. (If there is a gap between leaving one brokerage and filing a change of employer notice, the license will cease to be in force until the change is official.)
Even after conveying title to a buyer, the seller may control the use of the property by means of a.) deed restrictions. b.) covenants-of-title. c.) zoning ordinances. d.) a promissory note.
deed restrictions.
Jim has a commercial, income-producing property. Which expense is NOT deductible on Jim's Federal Income Tax return? a.) depreciation on the land b.) mortgage interest payments c.) local and county taxes d.) depreciation on improvements
depreciation on the land
Buyers in a HOA receive a disclosure summary. Two of the items included are a.) existence of restrictive covenants and if there are any assessments imposed by the association. b.) existence of restrictive covenants and who maintains the road and the drainage for the association. c.) existence of assessments and that the buyer must receive a copy of the plat of the subdivision. d.) existence of assessments and the association's Board of Directors names and addresses.
existence of restrictive covenants and if there are any assessments imposed by the association.
The best description of a tenancy in common is a.) the right of occupancy. b.) the right of survivorship. c.) fee ownership by two or more people concurrently. d.) a lease that has restrictive covenants to tenants.
fee ownership by two or more people concurrently.
When a property loses value because of poor architectural designs and standards or outdated amenities, the loss is best known as a.) accrued depreciation. b.) physical deterioration. c.) functional obsolescence. d.) external obsolescence.
functional obsolescence.
Of the following, which is not a statutory deed? a.) bargain and sale deed b.) general warranty deed c.) guardian's deed d.) quitclaim deed
guardian's deed
What type of deed legally conveys a minor's property after authorization by the court? a.) committee's deed b.) guardian's deed c.) personal representative's deed d.) quitclaim deed
guardian's deed
Competent parties Williams and Moore signed a contract for the sale of Moore's lakeside home. Williams paid $5,000 in earnest money, closing costs were determined, and the closing was set for July 1. On June 15, Moore declared the contract invalid and refused to sell. Moore cannot do this without being subject to legal action because a.) a contract must have reasonable performance in order to be valid. b.) in refusing to sell, he voided the acceptance, which voids the contract. c.) he had entered into a valid contract and asserted no basis for declaring it invalid. d.) a contract can only be made invalid one month before the agreed upon closing date.
he had entered into a valid contract and asserted no basis for declaring it invalid. (The contract meets the four criteria to be valid: capacity, offer and acceptance, legality of object, and consideration.)
Aaron has remodeled an older home and decides to rent it out. He receives the first month's rent and a security deposit. There are three ways he can handle the security deposit. Which is NOT one of them? a.) hold the money in a separate interest-bearing Florida Bank, and pay the tenant at 75% of any annualized average interest rate or 5% per year simple interest b.) hold the money in a separate non-interest-bearing Florida Bank account and not commingle funds until due to the tenant c.) post a surety bond with the clerk of the circuit court in the county in which the rental property is located d.) hold the money in any bank, credit union or savings and loans institution located in any of the 50 states and may not commingle
hold the money in any bank, credit union or savings and loans institution located in any of the 50 states and may not commingle
Will is a licensed sales associate with Islands Realty. His broker is the only licensed broker in the firm. A month ago, the Florida Real Estate Commission suspended the broker's license for a period of six months due to dishonest dealings. Will's best course of action is to a.) ask the broker if he can take charge of the firm for the five months, with the broker serving only in an advisory capacity. b.) immediately identify a new employer and request that the FREC register his license to that new employer. c.) apply for a broker's license so that he can legally take charge of the firm during the broker's absence. d.) suggest to the broker to have the Final Order of the FREC set aside by filing an Appeal to the District Court of Appeal.
immediately identify a new employer and request that the FREC register his license to that new employer.
Choose from the following list the one that is a characteristic of real estate. a.) transient nature of improvements b.) rapid response to market changes c.) homogeneity d.) immobility
immobility
Tom, a sales associate, works for both ABC Realty and XYZ Realty. This arrangement is a.) in violation of the Florida Real Estate Licensure Law. b.) not in violation of the Florida Real Estate Licensure Law. c.) in violation of Florida Real Estate Licensure Law, only if one of the brokers objects. d.) in violation of Florida Real Estate Licensure Law, only if the potential buyer objects.
in violation of the Florida Real Estate Licensure Law.
In estimating the market value of commercial properties, which type of appraisal is primarily utilized? a.) income approach b.) income capitalization c.) income comparable d.) income yield
income approach
Karen's sales specialty involves the knowledge of regulated land use, environmental considerations, transportation, labor costs and utility charges. Her field of specialty is a.) agriculture. b.) commercial. c.) industrial. d.) residential.
industrial.
If a homeowner has a rectangular parcel of land measuring 620 feet x 900 feet, he will have: a.) more than 12 acres. b.) less than 12 acres. c.) exactly 14 acres. d.) more than 14 acres.
more than 12 acres.
Romano agrees to list his home with Jones, a broker, for $90,000. Romano agrees that Jones can keep any money in excess of the $90,000 listing price. This agreement is a a.) net listing. b.) open listing. c.) exclusive listing. d.) exclusive right-of-sale listing.
net listing. (A net listing pays the agent a commission based upon the portion of the sale price that exceeds the seller's agreed-upon listing price. This is illegal in Florida)
A broker can advertise listed property for sale without disclosing the name of the brokerage firm in the advertisement when which of the following applies? a.) only when the uses his home address and/or phone number b.) only when he uses his office address and/or phone number c.) any occasion, as a broker does not need to disclose the name of the brokerage firm d.) never, as all real estate advertisements must include the licensed name of the brokerage firm
never, as all real estate advertisements must include the licensed name of the brokerage firm
A sales associate lists a home he knows would be ideal for a friend. The home is for sale because one of the owners died recently, and the sales associate knows the other owner will accept a significantly lower bid than the listed price. The licensee should tell his friend a.) that the owners will accept a substantially lower bid then the listed price. b.) that the owners are divorcing and are very anxious to sell. c.) nothing, but make suggestions about a lower price when his friend expresses an offer. d.) nothing, but present to owner any offer that his friend wishes to make.
nothing, but present to owner any offer that his friend wishes to make.
If a balloon payment is due on the date your loan matures, what kind of loan do you have? a.) adjustable-rate mortgage b.) partially amortized mortgage c.) purchase-money mortgage d.) wraparound mortgage
partially amortized mortgage (A partially amortized mortgage requires smaller payments in the beginning with a large lump sum at the end, known as a balloon payment.)
Doug, a real estate broker, is convinced that a rule or guideline that significantly affects him is not valid and should be changed. He can seek recourse by a.) contacting his state legislative delegation, only. b.) writing his local Board of County Commissioners to speak at a meeting of his concerns. c.) petitioning for an administrative determination before the Florida Real Estate Commission. d.) informing the National Realtor's Association and hoping someone changes the rule soon.
petitioning for an administrative determination before the Florida Real Estate Commission. (The FREC has the power to make and change administrative rules and meetings are open to public comment, with advance notice.)
For the past 25 years, the Hills have been accessing their property by crossing a neighbor's land. Technically, the Hills may have obtained an easement on their neighbor's property by a.) grant. b.) prescription. c.) necessity. d.) condemnation.
prescription. (An easement by prescription is created when a portion of someone's property has been used to gain access to another property continuously and without interruption for the statutory period of at least 20 years.)
Sales associates normally formulate a Comparative Market Analysis (CMA) to help buyers and sellers make informed decisions on a.) what repairs/updates will cost. b.) pricing a property. c.) pricing all the closing costs. d.) what fee they should pay the licensees.
pricing a property.
When using the Government Survey System, the initial primary north-south reference line is called the a.) base line. b.) central meridian. c.) check line. d.) principal meridian.
principal meridian.
The purpose of the FHA insurance fund is to reimburse a.) private lenders when an FHA-insured mortgage loan is determined to be uncollectable. b.) the mortgagor in the event the home is destroyed. c.) the mortgagee in the event the home is destroyed. d.) the borrower for optional insurance for an FHA loan.
private lenders when an FHA-insured mortgage loan is determined to be uncollectable. (FHA insurances pays the lender in the event of a borrower default.)
The secondary mortgage market's purpose is to a.) provide a market for buying and selling existing mortgages. b.) provide a market for second mortgage funds to needy borrowers. c.) provide a market for municipal investments. d.) pool investments.
provide a market for buying and selling existing mortgages.
When a lender analyzes a mortgagor's ability to repay a loan, it is called a.) qualifying the buyer. b.) pro-rating between the parties. c.) straight principal reduction plan. d.) mortgage equity.
qualifying the buyer.
Which items on a Closing Disclosure are typically paid by the buyer? a.) abstract, recording expenses, and commission. b.) documentary stamps on the deed and the lien payoff. c.) recording of the deed and the buyer's attorney fee. d.) rental deposits and the buyer's attorney fee.
recording of the deed and the buyer's attorney fee. (Items debited to the BUYER commonly include the purchase price, title insurance, state intangible tax on new mortgage, state doc stamps on new and assumed notes, recording of the deed, recording of the mortgage, buyer's attorney fees and prep of mortgage / note.)
If a sales associate does not successfully complete the post-licensing course requirement but wants to remain in the real estate business, he or she is required to requalify for licensure by a.) repeating the pre-licensure class and passing the end-of-course examination as well as the state licensure examination again. b.) paying a $50 fine and retaking the post-licensure course. c.) paying a $50 fine and retaking and passing the state licensure examination. d.) retaking and passing the state licensure examination, only.
repeating the pre-licensure class and passing the end-of-course examination as well as the state licensure examination again.
A property manager generally does all of these except a.) renting the property. b.) collecting rents. c.) supervising its maintenance. d.) representation of the tenant.
representation of the tenant.
When determining whether an object is a fixture, the legal tests do NOT include a.) adaptation of the item. b.) intent of the parties. c.) method of attachment. d.) size of the item.
size of the item.
A licensed broker was found guilty of culpable negligence in a real estate sale. The broker made full restitution to the affected party. The Florida Real Estate Commission may a.) require the return of any paid commission. b.) impose a fine not to exceed $10,000. c.) suspend the individual's license. d.) take no disciplinary action against the licensee.
suspend the individual's license. (FREC may suspend the license up to 10 years)
Properties in Florida with an assessed value of $50,000 or less that qualify for a homestead exemption are entitled to a.) the full $50,000 exemption. b.) the base $25,000 exemption. c.) only a $10,000 exemption. d.) only a $5,000 exemption.
the base $25,000 exemption.
The statement that BEST describes the lien theory of mortgage is that a.) the borrower holds title and remains in possession unless the lender exercises the right to foreclose. b.) legally the lender remains in possession. c.) title of real estate, subject to the mortgage, remains with the lenders. d.) the lender's interest is superior to the rights of the borrower.
the borrower holds title and remains in possession unless the lender exercises the right to foreclose.
A notification contained in property tax disclosures is that a.) property tax for the buyer will be more than the seller is currently paying. b.) the seller's property tax amount might not be the amount the buyer may be obligated to pay next year. c.) some counties and cities charge more than others. d.) this year's taxes will be prorated at closing.
the seller's property tax amount might not be the amount the buyer may be obligated to pay next year.
A homeowner wants to construct a lanai with a small swimming pool on the back of his home. The present distance between the owner's home and the rear property line is 25 feet. If the owner builds the lanai, the distance to the property line will be reduced to 5 feet. Local requirements specify at least a 10- foot setback. To legally construct his porch, the owner needs a.) to obtain a special-use permit. b.) to obtain a zoning variance. c.) to apply for a non-conforming-use status. d.) no special authorization.
to obtain a zoning variance. (A variance can be provided for a property owner with a land hardship, which occurs when the physicality of the property does not allow for adherence to a zoning requirement.)
Susan pays a broker $100 for a list of available rental properties. She is unable to find anything suitable and requests a full refund within 30 days of purchasing the list. The broker sends her $50. Is the broker subject to disciplinary action? a.) No, as long as Broker refers Prospect to another agent who may know of additional housing that is available. b.) No, if broker tried to find a place for Prospect, no disciplinary action could be taken. c.) Yes, because Broker should have refunded at least $75. d.) Yes, because prospect is entitled to a full refund.
Yes, because Broker should have refunded at least $75. (If the broker fails to find a suitable rental property, the potential renter is entitled to a 75% refund of the fee paid, if requested within 30 days.)
A broker has an exclusive-right-to-sell contract on a large home. The seller informed the broker that the skylight over the dining room sometimes leaks if there is heavy rain. The broker sells the unit to a buyer during a dry season and fails to mention the leaky skylight. The buyer resells the unit in one year and makes a profit. Could the broker face possible disciplinary action for failing to tell the buyer about the leaky skylight? a.) no, because the buyer resold the unit for a profit. b.) No, because it is the buyer's responsibility to inquire about the leak. c.) Yes, but only if the buyer has resold the unit at a loss. d.) Yes, because the broker had the responsibility to inform the buyer of material defects in the property.
Yes, because the broker had the responsibility to inform the buyer of material defects in the property. (In any brokerage relationship, the licensee must disclose all known facts that materially affect the value of residential property which are not readily observable to the buyer.)
The city is going to pave the street on which a homeowner's property is located. The paving cost is $64 per foot. If the city will pay 35% of this cost and the owner's lot frontage is 89 feet, what will the owner's special assessment be for his side of the street? a.) $5,696.00 b.) $1,851.20 c.). $3,702.40 d.) $2,776.80
$1,851.20 Frontage cost = 89 x $64 = $5,696 Owner's share of frontage cost: $5,696 x 65%(100% minus 35%) X 50% = $1,851.20, The additional 50% is applied since the street is shared 50/50 with the other side (owner, park, empty land, etc.)
A homeowner has owned and lived in his Florida home for 10 years. His community has a property tax rate of 14 mills. In addition to his homestead exemption of $50,000, the owner receives a $500 tax exemption, due to his disability. If the owner's final tax bill is $1,547, what is the assessed value of his home? a.) $111,000 b.) $123,500 c.) $136,000 d.) $161,000
$161,000 (The taxable value of the property is the tax payment divided by the tax rate (14 mills or 0.014) and the assessed value of the home is the taxable value plus all exemptions. Taxable value = $1,547 / 0.014 = $110,500 Assessed value = $110,500 + $50,000 + $500 = $161,000)
A buyer has purchased a seller's house and is assuming the outstanding mortgage balance of $75,000. The interest rate is 4.75% per year and is due in arrears on the first of every month. The closing occurs on June 20. If the buyer is responsible for expenses for the day of closing, how much will the seller owe the buyer for accrued interest? a.) $188.02 b.) $185.45 c.) $195.21 d.) $197.92
$185.45 (Daily interest payment = $75,000 x (4.75% /365 days) = $9.76 Seller share of interest payment = 19 days owned in June x $9.76 = $185.45)
Carter is the holder of a straight-term note secured by a real property mortgage. The annual interest rate is 3.75%. The term is 12 years. The total interest is $94,500. What is the principal amount of the loan? a.) $180,500 b.) $178,750 c.) $210,000 d.) $205,000
$210,000 Principal amount = interest amount / interest rate = $94,500 / (3.75% x 12 years) = $210,000
When computing the state documentary stamp tax on a warranty deed for a property in Leon County selling at $65,940, what is the amount to be entered? a.) $540.70 b.) $560.49 c.) $461.58 d.) $462.00
$462.00 (Documentary Stamp Tax at $.70 per $100, rounded up, based on the total purchase price. $65,940 rounds to $66,000 divided by 100 and multiplied by 0.007, equals $462.)
A property sells for $230,000. As the listing sales associate, you will receive 45% of the total 6% commission collected on the sale. What amount will you receive? a.) $6,900 b.) $6,210 c.) $7,590 d.) $13,800
$6,210 (Total Commission = $230,000 x 6% = $13,800; Sales Associate Commission = $13,800 x 45% = $6,210)
A buyer was told that he could approximate the maximum amount he could afford to pay for a home by multiplying his annual income by 2.5. What must the buyer's minimum weekly salary be to buy a $159,700 home? a.) $1,535.58 b.) $1,023.72 c.) $1,228.46 d.) $1,279.65
$1,228.46 Annual income for $159,700 home = $159,700 / 2.5 = $63,880.00 Weekly income = $63,880 salary / 52 weeks = $1,228.46
When listing a seller's home, the broker tells the seller that Florida law requires her to charge a 7% commission. Which statement is CORRECT? a.) The broker has done no wrong since most brokers charge 7%. b.) The broker has correctly followed Florida Law. c.) The broker has committed an illegal act, because commissions are not set by law. d.) The broker has committed an illegal act, because commissions are limited by law at a maximum of 6%.
The broker has committed an illegal act, because commissions are not set by law. (The broker may always negotiate the commission fee, however Florida laws do NOT require a specific commission rate)
Regarding the appraisal of real property, which statement is incorrect? a.) An appraisal is a supportable and defensible estimate of value. b.) When the market comparison approach is utilized, all adjustments are made to the comparable properties and not to the subject property c.) Under the income capitalization approach, value is most commonly defined as the present value of future income d.) When reconciling the indicated values obtained from the three approaches to value, the appraiser multiplies all three values.
When reconciling the indicated values obtained from the three approaches to value, the appraiser multiplies all three values.
