Real Estate Practice Test: National Exam With State Law Questions
Mike Smith, a New York resident, recently purchased a vacation rental condominium located in Panama City Beach, Florida on Oct. 12, 20XX. The recent taxes as of Jan. 1, 20XX (current year) had no changes from last year and were assessed at $4,500. For what amount of homestead exemption does Mike qualify?
$0
Broker Johnson is listing an apartment complex for sale utilizing the income approach. The property's cap rate is 8%. The apartment complex has ten units with a total monthly rent of $1200 for each apartment, with a 5% vacancy rate. The properties expenses are as follows: Insurance $1500 per year Property Taxes $1800 per year Repair & Maintenance $1800 per year Management Fees $13,680 What is the value of the property?
$1,475,250 Rental Income: $1200 x 10 = $12,000 - 5% vacancy rate = $11,400 x 12 (yearly) = $136,800 Expenses: $1500 + $1800 + $1800 + $13,680 = $18,780 NOI: $136,800 - $18,780 = $118,020 Cap rate = NOI/Market Value or Sales Price $118,020 / 8% = (C) $1,475,250
Bill is closing on a single-family home in Broward County, Florida. The cost of the home is $430,000 and Bill has agreed to split the cost of the transfer tax (documentary tax) with the seller. What is Bill's share (cost) of the transfer tax?
$1,505 The tax rate for documents that transfer an interest in real property is $.70 per $100 (or portion thereof) of the total consideration paid, or to be paid, for the transfer. $430,000/100 = 4300, 4300 x $.70 = $3010, $3010/2 = $1505 (B), since the buyer and seller decided to split the cost.
A buyer purchased a $100,000 home with an 80% loan. There was a real estate commission of 8% and a loan origination fee of $100. The buyer's attorney charged $75 and the credit report was $35. If the loan discount points were 2% of the loan, what was the total of the buyer's closing costs?
$1,810 $100,000 X 80% = $80,000 (loan). The buyer owes the loan origination fee ($100) PLUS attorney`s fees ($75) PLUS credit report ($35) PLUS discount points ($80,000 X 2% = $1,600) = $1,810. Note: the seller pays the commission and the down payment is not a closing cost.
Joslin is representing a client in search of an income property that has potential for increased property value. Joslin's client is currently interested in one particular property that has a cap rate of 4%. The property has a NOI of $20,800 and is currently listed for sale at $520,000. How much would Joslin's client need to increase the NOI for the cap rate to increase to 6%?
$10,400 Cap Rate = NOI/Market Vale or Sales Price 6% x $520,000 = $31,200, $31,200 - $20,800 = (A) $10,400
A licensee lists a 30 acre property for $10,000,000. The seller originally paid $5.50 per square foot for the property. How much per square foot has the property increased in value?
$2.15 30 acres X 43,560 sq. ft. per acre = 1,306,800 sq. ft. of land. 1,306,800 sq. ft. X $5.50 = $7,187,400 (original price of land). $10,000,000 (today`s price) - $7,187,400 (original price) = $2,812,600. $2,812,600 / 1,306,800 sq. ft. = $2.15 increase.
A property in Bushnell, Florida was assessed at $243,000. Based off of the following information, what is the home's taxable value? Mileage Rates: County 6.1500, School 5.1460, Water Board 0.2535, City 3.5692 Homestead Exemption: $25,000
$3,295.87 Exemption of homesteads: $243,000 - $25,000 = $218,000, Millage 6.1500 + 5.1460 + 0.2535 + 3.5692 = 15.1187 mills/1000 x $218,000 = (B) $3,295.87
Samuel is selling his single-family home in Miami-Dade County for $550,000 and has agreed to pay the transfer tax (documentary tax) at closing. How much is Samuel responsible for paying at closing?
$3,300 The tax rate for documents that transfer an interest in real property is $.70 per $100 (or portion thereof) of the total consideration paid, or to be paid, for the transfer. An exception is Miami-Dade County, where the rate is $.60 per $100 (or portion thereof) when the property is a single-family residence. $550,000/100 = 5500, 5500 x $.60 = (C) $3300
Joe is purchasing a single-family home in Taylor County, Florida for $220,000. Joe placed a down payment of 30% on the property and financed the property at 70% loan to value. What is the intangible tax due on the property?
$308 $220,000 - 30% = $154,000; $154,000 x .002 = (B) $308
A property was assessed at 25% of value with a tax rate of 8.42%. If the taxes totaled $800, what was the total value?
$38,004 (1) $800 (taxes) / 8.42% (tax rate) = $9,501.19 (assessed value). (2) $9,501.19 / 25% (assessment rate) = $38,004.75 (market value).
A seller sold a home for $50,000 with the buyer putting $5,000 down. If the seller agreed to pay 3 discount points, a 1% loan origination fee and a 6% commission, what would be the seller's total closing costs?
$4,800 $50,000 less $5,000 = $45,000 loan. $45,000 x 3% = $1,350. $45,000 x 1% = $450. $50,000 x 6% = $3,000. $1,350 + $450 + $3,000 = $4,800.
A seller sold a property for $50,000. The buyer put 5% down in purchasing the property. The commission rate was 6% and the lender charged 3 discount points and 1% for the loan origination fee. The seller agreed to pay all of the closing costs on the sale. What were the seller's closing costs?
$4,900 Commission is based on SALE PRICE. Loan origination fee and discount points are based on LOAN. $50,000 X 5% (down) = 2,500 (down). $50,000 - 2,500 (down) = $47,500 (loan). $50,000 (sale price) X 6% = 3,000 (commission) $47,500 (loan) X 3% (discount) = 1,425 (points) $47,500 (loan) X 1% (orig. fee) = 475 (loan origination fee) $3,000 (commission) + $1,425 (discount points) + $475 (orig. fee) = $4,900
A real estate broker is selling an office property for $1,000,000. The property's cap rate is 6%. What is the net operating Income?
$60,000 Cap Rate = Net Operating Income/Market Value or Sales Price 6% x $1,000,000 = (A) $60,000
Joslin is purchasing a single-family residence in Duval County, Florida valued at $350,000. Joslin financed the property at 110% loan to value for a total of $385,000. What is the intangible tax due on the property?
$700 Joslin financed $385,000. However, taxes placed on the mortgage are not to exceed the market value. $350,000 x .002 = (A) $700
The Federal Housing Administration (FHA) insures mortgage loans provided by private lending institutions, such as banks, for which of the following properties?
1-4 Unit owner occupied properties Condominiums
Greg rents a two-bedroom apartment from Lanlord John and pays him $825 per month. Greg and John do not have a lease agreement in writing. Based off of their unwritten agreement, Greg must give Landlord John _______ notice to terminate the tenancy at will agreement.
15 days
Landlord Mike's tenant Bill vacates the premises and Mike has no intention to impose a claim on Bill's security deposit. How long does Mike have to return Bill's security deposit?
15 days
A law passed to enable the EPA (Environmental Protection Agency) to clean up the environment is the:
1986 Superfund Amendments and Reauthorization Act (SARA)
4.5 acres were subdivided with 71,020 sq. ft. taken out for streets. How many 50' X 100' lots could be made?
25 4.5 acres X 43,560 sq. ft. per acre = 196,020 sq. ft. - 71,020 sq. ft. = 125,000 sq. ft. for lots. / 5,000 sq. ft. per lot = 25 lots.
Tracy recently acquired a condominium through a foreclosure sale. After closing she discovered that the unit had several unpaid fees and assessments. Tracy must pay any unpaid assessments, late fees, interest, or reasonable attorney's fees and costs within how many days following transfer of title?
30 days
Mike recently paid his mortgage in full. Under Florida law, how long does the mortgagee have to cancel the mortgage?
45 days from the satisfaction of the mortgage
A Florida sales associate must complete how many hours of post-license course work before their first licensee renewal?
45 hours of post-license courses
Real estate broker Chris, in the course of his business, must maintain several records to include the receipt of money, sales contracts, and property management agreements. Under normal circumstances, how long must Chris maintain these records?
5 years
Real estate broker Sarah was recently involved in a civil suit between two of her former clients. The transaction closed 4 years ago, and the civil suit was completed as of the current date. How long must Sarah maintain her records of the transaction in total?
6 years total, two additional years
The Florida Real Estate Commission (FREC) consists of seven board members. Six of the board members range in age from 32 to 55 years of age. At least how old does the seventh board member need to be?
60 years of age or older
Joseph rents a one-bedroom apartment from Landlord Gary and pays Landlord Gary $225 per week. Joseph and Gary do not have a lease agreement in writing. Based off of their unwritten agreement, Joseph must give Gary _____ notice to terminate the tenancy at will agreement:
7 days
Tonya was instructed by her client to find income producing properties with a cap rate of 6% or higher. Tonya is currently viewing an office property that has some promising potential. The net operating income (NOI) is $87,500, with the listing price at $1,250,000. What is the cap rate on the property and does this property meet the investment criteria that Tonya's client asked for?
7%, yes Cap Rate = NOI/Market Value or Sale Price $87,500 / $1,250,000 = (C) 7%, which exceeds the client's goals
Which of the following elements must be in a contract to have a valid contract?
A clear description of the land
Sales Associate Marty has an established business relationship with ABC Mortgage Loan Savings Company and routinely sends them faxes marketing himself and his homes for sale. What must Marty also include in his fax advertisements?
A cost-free way to submit the opt-out request to the sender Allow recipients to opt out of future faxes within 30 days
Under which of the following circumstances would a lawsuit be filed involving the usury law?
A lender charges excessive rates of interest
Which of the following would be an example of a lender violating the usury laws?
A lender charging more than the maximum legal amount
Johnathan is selling his beautiful single-family residence located in Miami-Dade County. The neighborhood is well kept and maintained by the neighborhood Homeowners Association. Because the home is located in a neighborhood with a Homeowners Association (HOA) what is Johnathan required to disclose?
A written disclosure obligating the purchaser to become a member of the HOA
XYZ listed a property for sale and put the listing in the multiple listing service (MLS). ABC, working with a prospective buyer, cooperated through the MLS and showed the property. What is true?
ABC is a subagent of XYZ
Which of the following liens would be characterized as a specific lien?
Ad valorem tax lien
Fred closed on his home in Tampa, Florida on August 1, 20XX. Following closing, the mortgagee, ABC National Mortgage Company, transferred the mortgage to XYZ Lender LLC. XYZ Lender LLC acquired the same rights to the mortgage initially granted to ABC National Mortgage Company. Which of the following terms best describes this situation?
Assigned
Sales associate Chris represents seller Mary as a single agent. Mary informs Chris that her pool has a crack growing in the foundation but instructs Chris not to mention this to potential buyers. What are Chris's obligations in this transaction?
Chris must disclose the pool foundation crack to potential buyers
Sales associate Christopher completed his 45-hour Sales Associate Post License course in his first renewal and is now in his second renewal cycle. What education requirement must Christopher complete in order to renew his license?
Complete the 14-hour continuing education course
Florida sales associate Mike recently completed his 72-hour Broker Prelicense course, in addition to holding an active sales associate license for the past 20 of the last 24 months. Which of the following requirements must Mike complete to apply for his associate brokers license?
Complete the 45-hour Florida Sales Associate Post License course if not already previously completed. Hold an active license for an additional 4 months to meet the minimum requirement of 24 months active licensure in the proceeding 5 years
The ________ is the federal agency that implements and enforces federal consumer financial law related to mortgages, credit cards, and other financial products. This agency also ensures that markets for consumer financial products are fair, transparent, and competitive.
Consumer Financial Protection Bureau
A property's value is estimated by taking the current replacement cost less depreciation plus land value. This describes which of the following approaches to value?
Cost
Which valuation approach is most accurate to use on a church?
Cost
Which of the following would nullify a listing agreement?
Death of the seller
Donald is selling his recently renovated three-bedroom home to Fredrick. During recent inspections from the county inspector, Donald was informed that several home codes were in violation of county ordinances as a result of the renovation. In order to sell this home in as is condition, Donald must do which of the following?
Disclose in writing to Fredrick the nature of the proceedings Provide the county with notification of the transfer along with the new owner's information and copies of the disclosures made to the new owner within 5 days after the transfer of the sale
A licensee discovers that a number of improvements on a property were built too close to the property line. The property is currently under contract to be sold. Which statements BEST describes what the agent should do?
Disclose to the buyer immediately
"_______" means any deed, other than a quitclaim deed, which contains a scrivener's error.
Erroneous deed
Paul was recently denied a mortgage loan by ABC Mortgage LLC based upon his credit worthiness. Under what federal regulation must Paul be given the name, address, and where available, the telephone number of the credit reporting agency?
Fair Credit Reporting Act
In Florida, unless words of limitation, such as heirs or successors, or similar words appear, such conveyance or grant is considered to be which of the following?
Fee simple
What is the greatest type of interest an owner can receive in a condominium?
Fee simple
Which of the following duties BEST describes the duty of a property manager to the owner?
Fiduciary
Real estate Broker Sandra received $15,000 cash from Frank as earnest money for a condominium that he is purchasing. In addition to maintaining her escrow account in accordance with Florida regulations, what else is Sandra required to complete?
File an IRS Form 8300 Provide a written statement to each party included in the transaction by January 31 of the year following the reportable transaction
A purchaser entered into a contract to purchase a home. The purchaser wanted a clause in the contract to protect against the loss of earnest money in the event a loan could not be obtained. Which of the following items would BEST protect the purchaser?
Financing contingency
In Florida, a program that is used for assisting low-income and moderate-income individuals in purchasing a home as their primary residence by reducing the cost of the home with below-market construction financing, a reduced down payment and closing costs is known as the:
Florida Homeownership Assistance Program
Which of the following laws require certain purchasers' agents and settlement officers to withhold 15% of the amount realized in the disposition of a U.S. real property interest by a foreign person?
Foreign Investment in Real Property Tax Act of 1980
A seller of a property could NOT transfer marketable unencumbered title. What should the broker do with any earnest money involved in the transaction?
Give it to the buyer
Sales associate Lacy works for John D Homes Development, a real estate developer in the state of Florida. John D Homes Development is the parent company of multiple development businesses in the state of Florida. Under what circumstances can Lacy be issued multiple licenses or a group license?
Group License: When employed by an owner-developer who owns multiple business that are connected, subsidiary, interlocking or affiliated
Beth wishes to apply for a Florida associate brokers license. In addition to completing a 72-hour state-approved Broker Prelicense course, Beth would also need to meet which of the following requirements?
Have been registered as an active sales associate for at least 24 months during the preceding 5 years under one or more real estate brokers licensed in Florida or any other state
Landlord Tom has discovered an infestation of roaches in the 10-unit apartment complex he manages. Under what conditions can Tom ask for the tenants to vacate the property?
He can provide 7 days written notice and ask for the tenants to temporarily vacate the property for a period not to exceed 4 days
What kind of loan requires a homeowner to be at least 62 years of age or older, have equity in their home, and have no delinquency on any federal debt?
Home equity conversion mortgage Reverse mortgage
ABC Realty's office is located in the residential subdivision of Greenwood Hills. Under what circumstance may ABC Realty locate their office within a residential area?
If not contrary to local ordinance, and the company's agents work from the location.
Real estate broker Everett recently completed an appraisal on a single-family home. Under what circumstances can he complete a real estate appraisal in the state of Florida?
If the work is supervised and approved, and the report is signed by a certified or licensed appraiser who has full responsibility for all requirements of the report and valuation service
Home owners selling their primary residence in most cases qualify for an exclusion of gain ($250,000 or $500,000 if married filing jointly) under what circumstances?
If they owned the home for at least 24 months out of the last five years leading up to the date of sale (at closing) If they owned the home and used it as their residence for at least 24 months of the previous five years
Which of the following indicates functional obsolescence?
Inherent inadequacies of the property
Why is the annual percentage rate usually higher than the interest rate quoted on the promissory note?
It includes all the costs of obtaining the loan
Linear feet, markers and degrees are used in which of the following legal descriptions?
Metes and Bounds
Which of the following are acceptable methods for a legal description in the state of Florida?
Metes and bounds Recorded plat Government survey system
Broker associate Mike has no brokerage relationship with buyer Tom and currently represents Fred the seller. Under what circumstances may broker associate Mike now represent Tom and Fred in a real estate transaction?
Mike can change from a single agent relationship to a transaction brokerage by providing a limited form of representation to both the buyer and the seller with prior written consent from both parties.
Mike recently graduated from Florida State University with a 4-year degree, majoring in real estate and now wishes to obtain his Florida sales associate license. What course does Mike need to complete before applying to take his state licensing exam?
Mike is exempt from prelicense course work
Mike, who is the broker of a property management company, maintains an escrow account as part of his firm's business. Under what circumstances may Mike maintain personal funds or funds from his brokerage in his property management escrow account?
Mike may place and maintain up to $5,000 of personal or brokerage funds in the broker's property management escrow account.
Broker associate Mike Collins recently placed an advertisement for a home he listed under Mike Collins, Broker Associate ABC Realty LLC, FL# 819246. Before listing the home for sale, Mike's real estate license was suspended for unpaid child support. However, Mike is now current on his child support and no commission was paid in relation to the house Mike listed. Under the given circumstances, was Mike's action lawful under Florida Real Estate Law?
Mike was fraudulent in his actions because his license was suspended at the time he advertised the property
A loan that is insured by the Veterans Administration (VA) and is eligible for veterans who have been deemed to qualify under the provisions set forth by the VA can be made by which of the following institutions?
National bank State bank
Under what circumstances is a seller or real estate licensee required to disclose the homeowners HIV status?
Never
Which of the following are authorized brokerage relationships in Florida?
No brokerage relationship Transaction broker Single agent
Sales associate Johnny Schneider advertises himself under his real estate license number and his real estate firm's license number with the name "Johnny S, Florida Real Estate Sales Associate at your service". Can Johnny continue to use this advertisement?
No, Johnny must include his last name at a minimum as registered with the commission
A buyer phoned a seller to inquire about a piece of real estate the seller had for sale. The buyer and seller agreed to the price and terms over the phone. Which of the following is the MOST LIKELY legal effect of this agreement?
Non-enforceable
Which of the following acts would be permitted under the 1968 Federal Fair Housing Act?
Not renting a house to someone because they have a poor credit history
Bob, Chris, Fred, and Sarah own ABC Realty Limited Liability Partnership (LLP). ABC Realty LLP is currently under contract for a 10,000 square foot office property. Under a limited partnership, how many of the partners must execute and record the deed?
One partner with an affidavit stating the names of the remaining partners and the authority of any general partner to execute a conveyance, encumbrance, or other instrument affecting such partnership's real property.
Jessica is a FREC (Florida Real Estate Commission) board member and has been in that position for the last three years. How many more years is she allowed to hold the postion unless removed by cause?
One year
A prospective buyer wanted to have the right to purchase a home at a set price within the next 90 days but did not want to be obligated to purchase it. Which of the following documents would allow the buyer to do this?
Option
Broker Bob as a transaction broker may disclose which of the following facts?
Ownership of the home, home features, and material facts not readily observable to the buyer.
A new tenant was negotiating a lease in a retail shopping center. The tenant was new and did not have a lot of prior business experience. The landlord thought that over the next few years the tenant's sales would increase quite a bit. What would be the BEST type of lease for the landlord and tenant to enter into which would provide a fair overall return for both parties?
Percentage
The Blueridge subdivision is located between the Florida counties of Pasco and Polk with the majority of the subdivision in Polk County. Before the plat can be approved, which of the following must occur?
Polk County must approve the plat within its boundaries unless the governing bodies having said jurisdiction agree that one plat is mutually acceptable Pasco County must approve the plat within its boundaries unless the governing bodies having said jurisdiction agree that one plat is mutually acceptable
In the state of Florida in order to acquire property by adverse possession one must do which of the following?
Possess the property for 7 years Pay the property taxes within one year of entering possession
Paul is selling his commercial office building to Jake for $762,000, who is paying cash for the building. Which of the following disclosures are required by Florida law?
Property condition disclosure Energy-efficiency information brochure
Real estate investor Christina recently acquired a 20-unit apartment complex in Jacksonville, Florida. Upon acquiring the property, Christina discovered that several tenants were past due on their rent. Before she can proceed with evictions, Christina is required to do which of the following?
Provide 3 days notice in writing requiring the payment or surrender possession of the premises
Broker Carr is selling a home as a single agent for a property located on the gulf coast of Florida. Prior to the executing of a contract for sale, what must Carr's client provide the prospective buyer?
Provide to the buyer an affidavit or a survey delineating the location of the coastal construction control line Provide a written disclosure that the property being purchased may be subject to coastal erosion and to federal, state, or local regulations that govern coastal property
Which type of mortgage is MOST commonly used by a seller who wants to help a buyer by assisting in the financing?
Purchase money mortgage
What is the final step an appraiser would go through in doing an appraisal?
Reconcile the data
Sergeant First Class (SFC) Baker, United States Army deposited $2000 in earnest money for the purchase of condominium in Fort Walton, Florida. Ten days before closing, SFC Baker was placed on military orders for a new assignment at Fort Hood, Texas. The seller agreed to let SFC Baker out of his purchase contract and to give him half of his earnest money back. Under these conditions, the seller is required to do which of the following?
Refund SFC Baker the remaining $1,000 Refund SFC Baker within 7 days of cancelling the contract
Which of the following regulations implemented by the Federal Reserve Board prevent creditors from collecting specific personal information on applicants that have no bearing on their credit worthiness?
Regulation B
The Fair Credit Reporting Act is a federal act that was enacted to promote fairness, accuracy, and privacy in consumer information reported to credit agencies to include identify theft. The Fair Credit Reporting Act is implemented through what federal regulation?
Regulation V
The Truth in Lending Act (TILA) is a federal law that was enacted to help protect consumers from unfair lending practices by mortgage companies and other lenders. TILA is implemented under what regulation?
Regulation Z
Radon disclosures must accompany all sales and rental lease contracts with the exception of which of the following?
Residential transient occupancy of 45 days or less
Sales associate Chris represents seller Tom in the sale of his single-family residence as a single agent. After Chris conducts his initial listing presentation, Tom agrees in writing that Chris may decline any offers below $400,000 on Tom's behalf without notifying Tom. Under what circumstances is sales associate Chris authorized to NOT present an offer to seller Tom?
Sales associate Chris is to present offers and counteroffers in a timely manner, unless Tom has previously directed Chris otherwise in writing
Which of the following statements BEST describes a net listing?
Sales price less seller's required proceeds
Which of the following is described as a single error or omission in a legal description?
Scrivener's error
A rental property sold with a closing date of September 18th. The rent of $500 had been paid on September 1st. The buyer is credited with the day of closing. Which of the following statements is correct?
Seller pays the buyer $216.67 The seller collected the September rent (30 days) but was only due 17 days (the buyer in this case gets the day of closing). Therefore, the seller owes the buyer for 13 days. $500 / 30 (days) X 13 = $216.67 the seller owes the buyer.
Mike is a transaction broker on a single-family home transaction. Unfortunately, the transaction did not close. Mike attempted to contact the buyer and seller concerning placement of the trust funds held in Mike's trust account. After a few tries Mike was unable to reach the buyer in the transaction. Given the circumstances what is Mike required to do?
Send a certified notice letter to the buyer with information concerning the deposit along with notification that a response must be received by a certain date.
Broker associate Helen failed to complete her Broker Post License course before her first renewal date, and she does not have a hardship. Under what circumstances can Helen retain a valid Florida real estate license?
She can complete the 14-hour continuing education course within 6 months and receive a Florida sales associate license
Carolyn, who is a limited partner under a limited partnership at ABC Realty LLP, is not currently licensed as a real estate sales associate or associate broker. Under Florida law is Carolyn required to hold an active real estate license?
She is not required to hold a real estate license
Sales associate Chris decides to represent buyer Mike as a client under a single agent relationship. Before showing buyer Mike properties, what disclosure must Chris provide?
Single agency disclosure
What Florida statutes regulate the Department of Business and Professional Regulation (DBPR), real estate brokers, sales associates, real estate schools, and real estate appraisers in the state of Florida?
TITLE XXXII, Chapters 455 & 475
A broker took an open listing with a seller. Which of the following statements is correct concerning the open listing?
The broker will only get paid if the broker sells the property
Which of the following statements BEST describes the effect on mineral rights when the land is sold?
They pass to the grantee unless specifically noted
Broker Sarah was initially unable to reach a decision on the distribution of escrow funds following a real estate transaction that failed to close. Sarah then elected to use another form of settlement in place of an escrow disbursement order. How long does Sarah have to notify the Florida Real Estate Commission?
Thirty business days of the receipt of the last demand
Sales Associate Brian was recently convicted of a misdemeanor of the second degree. How long does Brian have to notify the Florida Real Estate Commission (FREC)?
Thirty days from the plea of nolo contendere or thirty days from the conviction of a crime
Broker Sarah failed to maintain the proper signage at her office brokerage and was issued a citation concerning the violation. How long does Sarah have to pay the fine?
Thirty days of the filing of the final order unless directed otherwise by the Commission.
Which of the following items would NOT place a limitation on your rights in property?
Title insurance
What is the primary purpose of the Federal National Mortgage Association (FNMA)?
To buy notes from primary lenders
Under what circumstances may sales associate Jonathan represent the buyer and seller (dual agency) in a real estate transaction in the state of Florida?
Under no circumstances
Under what conditions may Broker Tom pay a licensed residential contractor a fee for referring real estate clients to Tom's Brokerage?
Under no circumstances
What interest does a condominium owner have in common with other condominium owners?
Undivided interest in the common areas
Which of the following is NOT a requirement for a Florida sales associate license?
United States citizenship
When can a seller legally cancel a listing agreement?
When the broker fails to perform
In a contract for deed, when does the buyer obtain legal title?
When the contract terms are satisfied
Real estate broker Fredrick is the qualifying broker of ABC Real Estate. Fredrick now wishes to start a separate and distinct property management firm called ABC Property Management, LLC. Under what circumstance may a broker in the state of Florida be issued multiple Florida brokers licenses?
When the request for multiple licenses is necessary to conduct business
Bob rents a one-bedroom apartment from Landlord Sarah and pays Landlord Sarah $125 per week. Bob and Sarah do not have a lease agreement in writing. Based off of Bob and Sarah's unwritten agreement, they have a:
tenancy from week to week
In a real estate transaction that involves lead based paint, real estate licensees must keep all documentation on that transaction for a period of:
three years
Julie is a prospective purchaser of a regulated short-sale property. To be entitled to any of the funds or proceeds she made prior to cancellation, Julie must give a/an ______ notice of cancellation.
valid
A brownfield in real estate terms would be where a commercial or industrial property:
was suspected of containing toxic waste
Real estate broker Chris recently provided a broker price opinion (BPO) of value for ABC Mortgage Wholesalers for a flat fee of $320. Under what circumstances can Chris provide a BPO to clients for a fee?
As long as Chris does not represent himself as an appraiser
A person occupies a property in a hostile, visible, actual, and direct manner. This is BEST described by which of the following terms?
Adverse possession
Which of the following activities would be a violation of the Sherman Anti-Trust Laws?
All the brokers in an area agreeing to charge a 6% commission
A seller sold a property to a buyer with both signing the contract. The buyer, however, could not come up with the funds to purchase the property until five days after the closing date. Which of the following documents should both parties sign in order to accomplish the five day extension?
Amendment
All forms of contract or purchase and sale agreement utilized by a broker or salesperson in connection with the resale of a time-share period shall contain a complete and accurate disclosure of the terms and conditions of the purchase. Additionally, the contract will include closing, including the obligations of the seller and/or the purchaser for closing costs, title insurance, and which of the following?
An explanation of the form of time-share ownership being purchased and a legally sufficient description of the time-share period being purchased. A statement disclosing the existence of any mandatory exchange program membership included in the time-share plan The name and address of the managing entity of the time-share plan
Which of the following would be exempt under the Federal Fair Housing Law of 1968?
An individual selling a personal residence who does NOT discriminate in advertising
Real estate branch offices shall be registered ________ and pay a fee not to exceed _______.
Annually, $50
An "agreement for sale" contract has been signed but the terms have NOT been fully performed. Which of the following terms BEST describes the type and status of this contract?
Bi-lateral executory
ABC Realty is a real estate limited liability company (LLC). How often is an LLC required to renew their company real estate license in the state of Florida?
Biennial
Which of the following terms BEST describes the practice of encouraging owners to move from an area due to minorities moving in making the neighborhood more integrated?
Blockbusting
Who does a salesperson owe loyalty to?
Broker
Greg recently signed a contract for sale for the purchase of a regulated short-sale property and has decided that he would like to cancel his agreement to purchase. Within what timeframe would Greg be allowed to do so?
By the 10th calendar day following the execution date of agreement
In the state of Florida who is authorized to conduct an appraisal report?
Certified real estate appraiser Licensed real estate appraiser Registered trainee real estate appraiser
Jake who is employed by the Housing and Urban Development (HUD) currently performs real estate appraisals on low-income properties on behalf of HUD. Jake can perform appraisals under what circumstances?
Jake is exempt as long as the appraisals are within the scope of his employment
Nick is selling his recently renovated home. The home was built in 1975 and is well maintained by the homeowners' association. In addition to a property condition disclosure what other disclosure(s) is Nick required to make?
Lead based paint disclosure Homeowners association disclosure
Florida brokers are required to have what minimum standards on office signage?
Licensed real estate broker Lic. real estate broker
Every plat for recording in the state Florida must be prepared by which of the following?
Licensed surveyor and mapper
An owner listed a property with a broker. However, the broker failed to do anything to market the property. If the owner wanted to sell the property personally without paying a commission, what should the owner do?
Terminate the listing before the expiration date
Mike is purchasing a single-family home from real estate investor Chris. During Mike's due diligence period, he discovered that the warranty deed was missing the appraiser's parcel identification number. Given the situation which of the following is correct?
The missing number does not affect the validity of the deed
From which of the following persons may a salesperson lawfully receive a commission?
The salesperson's broker
Under a listing agreement, who would be the client?
The seller
A seller called a salesperson asking the salesperson to list the seller's home for sale. The salesperson did so and submitted the listing to the MLS after the salesperson's broker approved the listing. Another Broker within the MLS cooperated with the listing broker and found a buyer for the house. Which of the following best describes the relationship of the parties involved?
The selling broker is an agent of the listing broker
A commercial tenant installed a lighted sign on a property the tenant was leasing. Which of the following statements best describes what happens to the sign when the lease expires?
The sign would be considered a trade fixture allowing the tenant to take the sign
Sales Associate Jessica decided to switch brokerages because of her husband's military permanent change of station (PCS). ABC Realty invited Jessica to apply for a sales associate job position. After arriving at the job interview, the hiring manager noticed that Jessica was pregnant and had to disqualify her from the job. Jessica wishes to file a complaint based on discrimination with respect to her pregnancy. How long does Jessica have to file a complaint with the Florida Commission on Human Relations?
Within 365 days of the alleged violation
Clara is selling her home. The current yearly property taxes are $3,401. Property taxes in Florida are subject to change based on individual owners. Due to the possibility of such changes Florida requires _______.
a property tax disclosure summary
A mortgage provision that gives the lender the right to call the balance due upon cause (such as non-payment) is called:
acceleration
An easement giving a person the right of ingress and egress would be BEST classified as an:
appurtenance
A buyer and a seller entered into an agreement to purchase and sell a property. Prior to the closing the buyer wished to transfer the purchase rights to a 3rd party. In order for the transfer to take place, the buyer must initiate an:
assignment
Mrs. J signed a listing contract on August 15. When she signed the listing, she told the broker that some major repairs had just been completed on termite damage. The broker should:
be sure to inform all buyers of this fact
When an option to buy is exercised, the contract becomes:
bilateral
A seller sold a property to a buyer with the seller also transferring the refrigerator to the buyer as a personal property item. The document needed for the transfer of the refrigerator would be a:
bill of sale
A salesperson in trying to list a property, tells the seller that minorities are moving into the area and property values might devalue. This would be:
blockbusting
Whenever a licensee conducts business at a location other than the location he or she is licensed, the location will be registered as a/an ______.
branch office
Within the state of Florida, the ________ and the ________ have the jurisdiction, power, and authority to rescind, vacate, and set aside a decree of foreclosure of a mortgage of property prior to the sale of that property.
circuit courts, judges
The purpose of capitalization of income is to:
convert net income into a value indication
All are methods of involuntary alienation EXCEPT:
dedication
Title is transferred when a deed is:
delivered and accepted
When an owner takes the original cost of real property and takes tax deductions over the life of the property, this is referred to as:
depreciation
A neighbor had encroached on a property but the owner did not complain within the legally specified time period. The neighbor would obtain rights to the land by:
easement by prescription
A property that contains asbestos insulation wrapped around pipes would be best remedied by:
encapsulation
Discolored soil near an underground storage tank might be an indication of:
environmental contamination
The Metes and Bounds method of giving a legal description uses:
exact distances going in definite directions
It is illegal for any bank, insurance company, building and loan association, or other corporation, association, firm, or enterprise which takes part in the making of commercial real estate loans to deny a loan or other financial assistance to individuals based on their race, national origin, disability, or ___________.
family status
The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury, may issue _________ in certain counties or metropolitan areas of the United States that require title companies to report residential real estate data collection for all cash purchases.
geographic targeting orders
John is purchasing a residential home as his primary residence using an FHA loan. The current FHA loan limits are set to $XXX, XXX. Under the National Housing Act, mortgage loan limits may increase up to 150% in __________.
high-cost living areas
A decision to replace a 2-family structure with a commercial building would be an example of:
highest and best use
Mold issues would most likely be associated with a property:
in a low-lying area with high humidity
An original poor floor plan indicates:
incurable functional obsolescence
Two brothers own a property 50/50. When one dies, the other brother gains full ownership. The term best used to describe this type of ownership is:
joint tenancy
Each owner of a timeshare estate is _______ and severally liable for payments on all assessments and other charges associated with that unit.
jointly
A material used in construction prior to 1978 that could be hazardous to a person's health if crumbling or fragmentation occurred would be:
lead based paint
An appraiser, when appraising an apartment building, would use all the following facts EXCEPT:
list price
A mobility impaired person was renting a unit in an apartment complex. Half of the units have assigned parking spaces near the door. The other half do not. The owner:
must give a parking space near the door to the handicapped person if one is available and a need is demonstrated
Physical characteristics of land would include:
non-homogenous, indestructible, and immovable
Brandon and his wife Lexie have been married for two years. Prior to getting married Lexie purchased a home for $250,000. Since then, Lexie has gotten behind on her mortgage payments and owes approximately $7500. Brandon is:
not liable for the debt
S owns a property and lists the property for sale with a broker. The broker finds a buyer who makes an offer on the property. S is considered to be the:
offeree
A Phase 1 Environmental Report would be most helpful when analyzing a:
property which previously was the site of an old gas station
A broker found a ready, willing and able minority who offered full price for a house. The seller refused to sell because the buyer was a minority. The broker could legally do all of the following EXCEPT:
show the property only to non-minorities
The direct sales or market data approach is based upon the principle of:
substitution
A tenant illegally stayed past the expiration date on a lease agreement. This would be called a:
tenancy at sufferance
Jerry has a lease agreement with Mike and did not leave the property following the expiration of the lease agreement on December 31, 20XX. Under the expired lease agreement, Jerry paid $930 a month in rent. On January 1, 20XX Mike accepted a payment of $930 but did not renew the lease agreement with Jerry. Given the circumstances Mike and Jerry now have a:
tenancy at sufferance