Florida Real estate exams

In writing the legal description of a section, which is the standard sequence?

Section number, township number, range number

Members of the FREC are appointed by the

governor and confirmed by the state Senate.

The clause in a deed that contains the words "bargains and sells" or similar words is the

granting clause.

The clause in a deed that specifies the type of estate (duration of ownership) being transferred is the

habendum clause

A custom two-story home has flagstone veneer installed along the lower portion of the exterior walls. The type of wood framing MOST suited to this situation is

balloon.

A widow who owns a condominium unit holds a

freehold estate.

Which parties are most involved in the secondary market?

Fannie Mae and Ginnie Mae

Duties owed by a transaction broker include

accounting for all funds.

Elements that affect real estate value do NOT include

cost.

Physiographic studies reveal the

surface and subsurface structure of land .

If two brokers split the 7 % commission 50/50 on a property that sold for $98,400, what dicd each receive?

$3,444

If a $5,600 sale commission is split 60/40 between the listing broker and the selling broker, and each broker splits his share of the commission 50/50 with respective listing and selling sales associates, how much more will the listing broker earn from the sale than the selling broker?

$1,120

A home has been assessed by the county property appraiser at $116,000. The property is homesteaded. The city, county, and school board district each charge 10 mills for a total millage rate of 30 mills. How much is saved by the homestead exemption?

$1,250

The loan-to-value ratio is 80 percent. A buyer wants to acquire a property with a purchase price of $125,000. Calculate the required down payment.

$25,000

A nonresidential property has a purchase price of $195,000, with land is valued at $70,000. For IRS purposes, calculate the annual depreciation for this property

$3,205.13

The Civil Rights Act of 1968 made discrimination illegal if based on any of these criteria EXCEPT

)age.

A rental house produces $875 per month in gross income. The house costs $113,750. What is the monthly gross rent multiplier?

130

The real estate protected by homestead rights is limited to

160 acres outside a city or town or one-half acre in town.

A legal description that reads, in part, "the North one-half of the Northeast one-quarter of the Northwest one-quarter Section 12, Township 42 South, Range 12 East" describes a tract of

20 acres .

A business has a five-year variable lease for a suite in an office park. The first year of the lease calls for rent of $17.50 a square foot based on a beginning index of 2.9. The index increases to 3.4 at the beginning of the second year. What is the new rental rate?

20.52

What is the FHA housing expense ratio for a borrower with monthly housing expenses of $696, total monthly gross income of $2,400, and total monthly obligations of $960?

29 %

A building is valued at $185,000 when NOIl is capitalized at a rate of 8 % . NOI is 40 % of effective gross income. Calculate the effective gross income.

37,000

The landlord leases the 12 apartments in Crow Hollow for a total net monthly rental of $4,800. If this figure represents a 12 % annual return on her investment, what was the original cost of this property?

480,000

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

6 miles square .

How long does a landlord have to correct a noncompliance after receiving written notice from a tenant?

7 days

What did a new home cost if the state documentary stamp tax on the deed was $546?

78,000

The federal telemarketing law restricts telephone solicitation calls to what hours?

8:00 am to 9:00 pm

A broker paced off a tract by beginning at the extreme northeast corner of a section. He proceeded South zero degrees East 891 feet to a cement monument, thence North 90 degrees West 440 feet to a second marker, thence North zero degrees East 891 feet, thence to the point of beginning. How many acres are contained in the parcel?

9

Which statement describes a planned unit development?

A mix of land uses along with a high density of residential units

A developer purchased a tract of land and subdivided the property into individual lots. The developer hired his son, who was not licensed to sell the lots. The father agreed to pay his son a salary of $200 per week. After two weeks, the son had sold only two lots, so the father decided to add an incentive. The father promised his son that after every fifth lot was sold, he would give his son a lot free and clear. After one more week, the son had sold only one more lot. The son quit his job to go work for another developer who paid a higher weekly salary. Which statement applies to this arrangement?

Both the father and the son have violated F.S. 475

A buyer is looking at potential lots to purchase. The buyer would like to construct a home and have enough backyard space to install an in-ground pool for his children. Which type of lot would MOST suit the buyer's desires?

Cul-de-sac

When monthly rent paid in advance is prorated, how is the calculated figure entered on the closing statement?

Debit to the seller, credit to the buyer

The Florida Real Estate Commission is obligated to notify which agency when it takes disciplinary action against any licensees of that agency?

Division of Florida Condominiums, Timeshares, and Mobile Homes

You are walking through a seller's contemporary-design home. There are windows set high into a loft area, that are not designed to be opened. They function simply to bring light into the loft. What window type does this describe?

Fixed

Which entity originates loans and typically services the loans but is NOT a financial intermediary?

Mortgage company

Which legal instrument would contain the interest rate, loan amount, maturity date, and payment schedule?

Note

A developer selling lots in a 100- lot subdivision that is nationally promoted through advertising must provide potential buyers, prior to their signing a purchase contract, with a

Property Report

The statement that land is heterogeneous refers to whiclh characteristic of the real estate market?

Real estate is unique.

Which deduction from gross income is NOT allowed when calculating the taxable income?

Reserve for replacements

Which statement concerning characteristics of the real estate market is FALSE?

The real estate market is organized and controlled centrally.

A buyer signs a contract to purchase a property that is subject to a mandatory homeowners association. The buyer did not receive a disclosure concerning the association before signing the sale and purchase contract. Which statement is TRUE?

The buyer may cancel the sale contract within three days after receiving the disclosure.

A transaction broker of residential property has which duty(ies) and responsibility (ies)?

To disclose any latent defects to the buyer

Which pair of terms does NOT belong together?

VA - minimum cash investment

A written instrument authorizing a person to act for and on behalf of another person is called

a power of attorney.

At the expiration of the lease period and before renegotiation of the lease, a tenant continued to occupy the apartment. The tenant's position is called

a tenancy at sufferance.

Factors affecting the supply side of the real estate market are related to

all of the above.

Variables that influence demand include

all of the above.

An escrow account may NOT be in

an insurance company located in Florida.

To be valid, a real estate sale contract MUST contain

an offer and acceptance.

A planning commission is normally composed of

appointed unpaid members.

The statements below are true with respect to the members of the Florida Real Estate Commission EXCEPT that they

are DBPR employees.

Real property ads and yard signs of a licensed broker MUST include the name of the

brokerage firm.

A closing date of April 30 is set, with prorations (using the 365- day method) effective at midnight on the day of closing. The property taxes are estimated to be $1,095. On the seller's closing statement would appear a

debit for $360.

Income tax benefits to homeowners are available only if

deductions are itemized annually

The most commonly used method of controlling the national money supply is for the Fed to

engage in open-market activities.

What is it called when an investor uses their own money or borrowed funds to invest?

equity

A fast-growing church has just purchased an adjacent apartment building and plans to convert it to a retirement home. Disregarding other factors, property owners in that area probably would be affected bv

higher taxes .

A type of roof style that slopes from the ridge to four opposite sides and allows continuous eave venting around the entire house perimeter is the

hip.

A broker wishes to be issued several broker licenses for business reasons. He may

hold multiple licenses.

The most important cause of population increase in Florida has been the

in - migration of new residents .

A real estate licensee makes a nonfactual statement about a property and the buyer accuses the licensee of fraud. The buyer is NOT required to prove that the

information misstated could be proved to be false with due diligence.

The going concern value of a business

is the worth of an established business property

Three persons were co-owners of a parcel of real property. One owner died, and his ownership passed to the two remaining co- owners. He was a

joint tenant.

A measure of the financial risk associated with lending and borrowing money is the

loan-to-value ratio.

A sales associate has hired a licensed personal assistant to help increase the sales associate's business. The icensed assistant will receive $12 an hour for administrative work and 35 % of any commissions earned. The licensed assistant

may be paid by the sales associate for administrative work but must be paid by the broker for commissions earned

If the interest paid for borrowed funds is greater than the overall rate of return to an investor, this is an example of

negative leverage.

When incorporating a business, the two basic types of stock offered are

preferred and common.

The purpose of a U-shaped trap under a kitchen sink is to

prevent combustible gases from entering the home

The market where mortgage loans are created, supplying funds to finance real estate purchases directly to borrowers, is referred to as the

primary market

Where the government survey system is used to describe real property, the primary north-south line and the primary east-west line that form the basic reference point for the system are correctly called the

principal meridian and base line.

By paying the debt prior to a foreclosure sale, a borrower has the right to regain the property through

redemption.

A commercial bank sold a group of 2,000 mortgages directly to Fannie Mae. This is an example of

secondary market activity.

Zone R-1A probably refers to

single-family dwellings.

A license becomes ineffective when it is

suspended.

A broker has listed a seller's property. The seller has disclosed to the broker that the ceramic tile is loose in the dining room because the cement did not adhere to the tile. The loose tile is not readily visible because it is covered with an area rug to protect the seller's toddler. The broker has satisfied his legal obligation if he tells the buyer

that ceramic tiles in the dining room are loose.

The broker is a single agent df the seller. The principal has disclosed to the broker that the roof leaks, although there is no visible evidence of a water problem. The broker has satisfied her legal obligation to both the principal and all prospective buyers if she discloses

that the roof leaks.

Plottage can BEST be described as the

the increase in value that results from combining contiguous lots so that the value of the combined properties is greater than the sum of the individual lot values.

Zoning ordinances regulate

the setback requirements of a building from the property lines.

When a real estate sale contract has been signed by the purchaser and given to the seller's broker along with an earnest money check

this transaction is considered an offer.

During a lunch meeting, three brokers discuss how to increase their businesses. They decide that broker A will work exclusively northeast of downtown, broker B will work exclusively northwest of downtown, and broker C will work exclusively south of downtown. This is a

violation of antitrust laws called market allocation

A real estate contract that is signed by a minor is

voidable.