realtor

Calculate nine months' interest on a $6,500 loan at 6.5%. Round to the nearest dollar.

$317

Your client Frank is interested in selling a 54,450-square-foot lot. A comparable property in the vicinity sold for $3,500 per acre. What would be reasonable list price for Frank's property?

$4,375

What is the maximum amount that will be paid out of the Florida Real Estate Recovery Fund for a transaction?

$50,000

If you sell a home for $143,000, and your commission rate is 5%, what is your commission on the sale of this home?

$7,150

Convert the following fraction to a decimal: 1/5.

0.2

What is 1/4 x 2/3?

1/6

Convert 0.19 to a percentage.

19%

To pass the Florida real estate sales associate examination, you'll need to score at least a ___________.

75

Jane is purchasing a property for $310,000 and plans to finance $250,000. What is the loan-to-value ratio? (Round to the nearest percentage.)

81%

David is an active duty member of the U.S. Air Force. Assuming he and the property meet the qualifications, which type of mortgage may be the best option for him?

A VA-guaranteed loan

Which of the following best describes a bilateral contract?

A contract that involves an exchange of consideration between two parties

What does a land surveyor produce?

A survey that includes a legal description and a survey sketch

What must a broker do to open a branch office in another state?

Agree to cooperate with any investigations under Florida statute.

You've received a formal complaint against you. What else might you find in the envelope?

An Election of Rights form

Which of the following is a true statement about FHA financing?

An FHA loan is usually more attractive to borrowers who have lower credit scores and down payments.

Which of the following would likely require a variance?

An addition which alters the setback

The value principle of ______ is the basis of the income approach to appraisal.

Anticipation

Which product's fibers are dangerous when inhaled because they can lodge in the lungs and intestines, causing cancer?

Asbestos

When is the seller paid the full amount of the purchase price for the property?

At the closing

Can receive compensation directly from buyers or sellers

Broker

A buyer representation agreement establishes an agency relationship between which parties?

Buyer and broker

What would an investor get after subtracting the adjusted basis from an investment property's sales price?

Capital gain or capital loss

The property of ________________ is exempt from taxation.

Churches and non-profit organizations

What type of loan is neither guaranteed nor insured by government agencies?

Conventional

Robert was found guilty of violating real estate law. A prison sentence was imposed on him by ___________.

Criminal court

The _____________________ is the agency which licenses and regulates businesses and professionals in Florida.

DBPR

Only an engineer or architect can ______ a septic system.

Design

Informing parties of material facts related to a transaction describes the duty of ______.

Disclosure

Which of the following could an investor who sells an apartment house buy using a 1031 exchange?

Duplex, office building, or warehouse

The Florida Real Estate Recovery Fund has a maximum payout limited to $150,000 for what?

Each licensee

How is the broker's commission usually paid out?

Escrow creates checks for both agents' brokerages, which in turn cut checks to the agents for their commission split.

James Sawyer evicted his tenant, Kate Abbot, for nonpayment. However, she didn't vacate the apartment after the required 72 hours and has yet to move out. This is an example of a(n) ______.

Estate at sufferance

Non-lawful possession after the expiration of a lease is called ______.

Estate at sufferance

Lydia put the minimum 3.5% down on her $210,000 home. She'll have to pay a mortgage insurance premium (MIP). What type of loan does Lydia have?

FHA

How many of the seven members of the FREC must hold active real estate licenses?

Five

According to the NAR Code of Ethics, the following characteristics must not be used to discriminate: race, national origin, religion, color, familial status, disability, sex, sexual orientation, color and _________.

Gender identity

You need to perform a sales comparison for your clients. Comparable A's adjusted sales price is $277,000. Comparable B's adjusted sales price is $255,000. How might you use this data to determine a list price range for the clients' home?

Give more weight to the list price on the comparable that's most similar to the property.

An investor is analyzing a property by looking at its ability to produce future income. The property is a 10-unit apartment building. Which of the following would be used to determine this value?

Gross income multiplier

What can help an investor ride out a holding period?

Having adequate reserves

You're walking through a property with a new seller client. The seller tells you that the property is serviced by the public sewer system, but when walking up the drive you noticed the access hatch for a septic system. What should you do?

Inquire about the homeowner's claim to ensure the property really is on public sewer.

What is the name for a type of asset which cannot be touched?

Intangible

The following market indicator is expressed as the number of months it takes to sell homes at the current rate of sales: ______.

Inventory rates

The Johnsons have owned a small restaurant for more than 20 years. It's open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____.

Inverse condemnation

Which fair housing case tested discrimination in a private sale?

Jones vs. Mayer

Ideally, what guides real estate licensees' behavior?

Laws and ethics

Which type of value is found on the MLS?

List price

A discount point equals 1% of the ______.

Loan amount

Which type of lien is filed by a supplier of products that were used in construction or improvement of a property?

Materialmen's lien

Which legal description method uses compass headings and directions?

Metes and bounds

Commingling is ______.

Mixing funds

A duplex is what type of property?

Multi-family residential

What does MLS stand for?

Multiple listing service

Which element of a valid contract is established by getting the signatures of all parties?

Offer and acceptance

The buying and selling of government securities as a way to influence the money supply and balance economic growth describes _________.

Open market operations

The terms of a person's will are subject to ______.

Operation of law

What might the government do if property owners fail to pay taxes on their property?

Place a lien on the property.

Which of the following about radon disclosure in Florida is true?

Real estate professionals must provide, to their buyer clients, a written statement that describes what radon is.

What must a broker do if escrow funds are deposited in an attorney or title company's escrow account?

Request a verification of deposit within 10 days of the due date stated in the sale agreement.

Must receive compensation through their broker

Sales Associate

Ensures good title to the property purchased

Security title

A like-kind exchange, or 1031 exchange, is also referred to as a ______________.

Tax-deferred exchange

What will the initial effective date of your real estate license be?

The date you pass your license exam

Which option is true if a deed is not recorded after closing?

The property's legal ownership can be challenged.

______ delivers the evidence of a clear title at the closing.

The title insurance representative

What special concern do foreclosed properties often present?

There could be hidden title issues.

The idea that money gains or loses value over time describes which concept?

Time value of money

A year and a half ago, Jan was appointed to the Florida Real Estate Commission. How much longer does she have left on her term?

Two and a half

What's the point from which elevation is measured?

Datum

You've entered into a no-broker relationship with an unrepresented buyer who wants to see one of your listings. What duties do you owe to that customer?

Deal honestly and fairly, account for all funds and disclose material facts.

What's the term for a charge that either party has to pay at closing?

Debit

Seller Martin is looking at his closing disclosure. Which of the following items is he likely to see?

Debits

Which of these has a negative impact on the property owner's cash flow?

Debt service

Luke recently moved from a condominium to a cooperative. With a cooperative, his share of mortgage interest and real estate taxes will be ________.

Deductible on his personal income tax returns

When a property owner wishes to convey her property to a new owner, she will generally use a ______.

Deed

Which of the following is an instrument of conveyance?

Deed

Joe Bob is the grantor of a deed, and is in the final stages of transferring a deed to the new owner, Frank. What must Joe Bob do in order to satisfy delivery and acceptance of the deed to Frank?

Deliver the deed to Frank, his agent or attorney, or the title company issuing the title

When there are more buyers in area than there are homes available to purchase, it means what?

Demand exceeds supply.

Darrell lives in a very rural area where price levels have remained low for several years. What does this indicate about demand for housing in the area?

Demand is low.

Which of the duties owed in any authorized relationship is missing from this string? Account for all funds, deal honestly and fairly, and ______.

Disclose all material facts

Daniel has several properties listed around town. He receives a call from a prospective buyer who is very interested in one of the properties and wants to schedule a showing. What should Daniel do?

Disclose his agency relationship with the seller to the prospective buyer.

What must a licensee do regarding property the licensee holds directly or indirectly if it becomes the subject of a real estate transaction?

Disclose the interest to all parties to the transaction.

The Truth in Lending Act requires lenders to make certain ______ to consumers.

Disclosures

What happens when two fiduciary duties conflict? For instance, your clients ask you not to show their property on evenings and weekends, when most showings occur. To obey (a fiduciary duty) means to fail in reasonable skill and care (another fiduciary duty). What should you do?

Discuss the issue with your clients and let them decide.

Which option would a licensee pick on the election of rights form if the licensee wanted a formal hearing?

Dispute the complaint and request a hearing

What are the first symptoms of carbon monoxide poisoning?

Dizziness and nausea

Evan has his home and cell number on the Do Not Call Registry. He received an unwanted solicitation call from a new real estate licensee in the city. He told the licensee his number is on the Do Not Call Registry and that he does not wish to do business with the licensee. A few days later, he got another unwanted call from the licensee. What federal act is the licensee possibly violating?

Do Not Call Implementation Act of 2003

When selecting a broker to affiliate with you should ______.

Do your homework and pick one who is located in the area where you would like to work and is a good fit

Amanda helps her neighbor sell his home by assisting with negotiations. She receives no compensation for her assistance. Based on this one transaction, Amanda ______.

Doesn't need a real estate license

John sells his single-family home and purchases a new home for his family to reside in. Marcus owns a single-family home, but rents it out to a co-worker while he is on an extended two-year military tour overseas. Donald sells an apartment complex and purchases a new complex in a different part of the city. Which of these consumers is most likely to take advantage of a 1031 tax-deferred exchange?

Donald

Kathryn and Donald have homesteaded their primary residence in Florida. The homestead is only titled in Kathryn's name. Under the Florida Homestead Law, if Kathryn dies, what happens to the property?

Donald receives a life estate to the property.

Charlene wants to build a subdivision, but needs someone to clear the land, install utilities, and build the homes.

developer

Without this easement—usually involving access to a road—the owner requiring the right of passage would be landlocked.

Easement by necessity

Which of these brokerage relationship scenarios is allowed in Florida? You can assume Billy and Elizabeth work for the same brokerage and that each of the scenarios involve residential transactions.

Elizabeth sees that Billy has listed a property for his seller client that is perfect for her buyer client. With permission from the buyer and seller, Billy and Elizabeth both transition to transaction brokerage relationships.

The Kelo vs. City of New London U.S. Supreme Court ruling was controversial because the U.S. Constitution prohibits the government from taking private property except for "public use". What governmental power was central to this case?

Eminent domain

_________ is the power of the government to take private land for public use.

Eminent domain

A buyer client is preparing an offer on a property. He wants to make sure his offer stands out above all others and is accepted, so he discusses waiving the inspection contingency. What should the agent do?

Encourage the buyer to get an inspection, and if he still wants to waive it, put it in writing that you advised against waiving the inspection and have him sign.

A fence that's placed two feet onto a neighbor's property line meets the legal definition of a(n) ______.

Encroachment

Which of the following is part of the Consumer Financial Protection Bureau's mission of consumer protection?

Enforce consumer financial protection laws.

The secondary mortgage market buys loans from the primary market. In other words, it helps ______.

Ensure funds are available to borrowers

Which of the following prohibits lenders from discriminating based on protected class status?

Equal Credit Opportunity Act

Which right allows the borrower to prevent foreclosure by paying monies owed before the property is sold at foreclosure sale?

Equity of redemption

Ted is in foreclosure but has some equity in his property. An investor suggests that Ted enter into a sales contract with him for a substantially higher price than the investor would actually be paying. The investor pockets the cash and allow the house to be foreclosed on. What sort of scheme is this?

Equity skimming

When someone dies intestate with no heirs, the real property owned by that person may be taken by the state through ______.

Escheat

The purchaser of a mortgage will receive a/n ____________________, which establishes the facts of the borrower's financial obligations (unpaid balance, interest rate, and date to which interest has been paid).

Estoppel certificate

You're attending a speech on the societal impact of fair housing and the speaker, who is an advocate for diversity in communities, begins the speech by asking who benefits from enforcement of fair housing law. Which of these is likely the answer the speaker is looking for?

Everyone, because diverse communities are stronger communities

Your client, George, has a serious complaint against another licensee, who he believes has violated real estate law. How should you advise George?

"File a complaint with the DBPR."

Which one of Gerry's statements to a client crosses the line into unauthorized practice of law?

"Most couples take ownership of property as joint tenants, so that's what I'd advise."

Hernando, a real estate attorney, is preparing an option contract for his client, Wilma. Hernando asks Wilma what she and the seller have agreed upon for the option period. Wilma said the seller was leaving that up to her, and she wanted to get Hernando's opinion. What should Hernando put into the contract for the option period?

"Six months"

What's the penalty for providing inaccurate or out-of-date rental lists to prospective tenants for a fee?

$1,000 or 1 year in prison and possible license suspension or revocation

You get a loan from the Loan Star Bank to help pay for your home. Find the interest on the loan if you borrowed $12,000 at 10% for one year.

$1,200

What's the annual interest on a $20,000 loan on which the interest rate is 6.5%?

$1,300

What is the maximum civil penalty that can be assessed under the Florida Deceptive and Unfair Trade Practices Act?

$10,000

Using the income approach, determine the value of a property that has a net operating income of $15,000 and a cap rate of 15%.

$100,000

If Hal sold his client's listing for $230,000, but it appraised at $200,000 and the buyers agreed to put the extra $30,000 down, what will Hal's commission be if he charged 5%?

$11,500

The GRM for Sunny Hills is 147. If a three-bedroom, one-bath house in Sunny Hills rents for $820 monthly and sold for $125,000, what is the suggested value of a house that leases for $1,000 monthly based on the GRM?

$147,000

The current value of a property is $105,000. What was the original cost of the property if there has been a 30% loss in value?

$150,000

A vacant lot that was purchased for $18,000 three years ago has appreciated 15%. What would its value be today?

$20,700

Your buyer client Heather just signed a purchase agreement for a $520,000 home. The LTVR is 60%. How much is Heather putting down on the purchase?

$208,000

The cost of a parcel of land is 50 cents per square foot. Candace wants to purchase one acre. How much will this cost?

$21,780

What did the sellers originally pay for their property if they sold it for $268,550 and realized a 13% profit? Round to the nearest cent.

$237,654.87

Office space in a downtown high rise rents annually at $33.40 per square foot. Max's tenant client is interested in renting two adjacent suites: one is 7,152 s.f., and the second is 3,560 s.f. What's the monthly rental rate?

$29,815.07

A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one point loan origination fee. How much is the loan origination fee?

$3,200

A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is 80%. How much is the buyer financing?

$320,000

A buyer is purchasing a property for $500,000. His lender's loan-to-value ratio is 90%. How much is the buyer financing?

$450,000

You practiced real estate without a license. What is your maximum penalty?

$5,000 fine and five years in prison

Yasmin listed a house at a 6% commission rate, and it just sold for $463,500. Her brokerage and the buyer's agent's brokerage split the commission equally between them. Then Yasmin, who has a 60/40 commission split with her broker (Yasmin gets the higher split), took her check to the bank. How much did Yasmin earn from this transaction?

$8,343

You're working with buyers who are pre-approved for a loan of as much as $200,000. Assuming they lock in a 5.25% interest rate at closing, how much of their first payment will go toward interest?

$875

If you have an 800-square-foot rectangular building and it sells for $75,000, that equates to ______ per square foot.

$93.75

What is the calculation used to determine the estimated monthly interest amount a borrow will pay on a loan?

(Loan balance x interest rate) ÷ 12

Alana and Michael want to build a 5,000-square-foot ranch home on two acres of land they just bought. Once the house is built, how many acres of land will remain unbuilt?

1.89 acres

According to the Florida Timeshare Act, consumers have ______ calendar days in which they can cancel their purchase.

10

If you move, you'll need to update your mailing address and email address with the DBPR within _______ days or you may receive a citation and a $500 fine.

10

How large is this area of a rectangular survey: The SE 1/4 of the NW 1/4 of the NE 1/4 of section 6 in a township?

10 acres

In certain cases, antitrust violators may be subject to court-ordered supervision. How long can this supervision last?

10 years

You've just violated a Florida statute. What is the longest your license can be suspended?

10 years

How many questions are in the Florida real estate sales associate examination?

100

John wants to do a 1031 tax exchange. He just sold his property. How many days does he have to close on a new property?

180

Homes built in which of the following years are more likely to have asbestos present?

1960

Which agency enforces fair housing law

FHEO

If a property's income value is $200,000 and it's earning a net operating income of $40,000, what is the cap rate?

20%

Tyrell and Barb bought a commercial investment property in 2009 during the real estate market downturn. Through what year will they be able to depreciate the investment?

2048

What percentage of profit would the seller make if he paid $18,000 for a vacant lot, built a home on the lot that cost $145,000, and then sold the property for $200,599? Round your answer to the nearest percent.

23%

The Save Our Home amendment limits increases in the assessed value of homestead properties to what amount per year?

3%

A lot measuring three-fourths of an acre is for sale. How many square feet is this?

32,670

According to the EPA, at what level does radon become a health concern requiring mitigation?

4.0 picocuries per liter of air

How many square feet are in an acre?

43,560 square feet

John wants to do a 1031 tax exchange. He just sold his property. How many days does he have to identify a new property?

45

What is 5/8 ÷ 1/4?

5/2

How large is a section used in the rectangular government survey system?

640 acres

A buyer is purchasing a home for $400,000 and is financing $300,000. What is the loan-to-value ratio?

75%

What is 40% of 200?

80

Margie needs to know the square footage for the first floor of the condo her client wants to make an offer on. The kitchen is 10 feet by 15 feet, the living/dining combo is 20 feet by 25 feet, and the office and sunroom are each 10 feet by 10 feet. What's the total square footage?

850 square feet

Which option is a legal license association in Florida?

A broker working at his own firm while working as a broker associate at another firm

What is multiple licensure?

A broker working at two brokerages

Nina and Rob prepaid some of their interest to their lender when financing their new home. This is called _____________.

A buydown

What's an income shelter?

A deductible allowance from net income

Which of these statements about the designated sales associate method of representation is true?

A designated sales associate acts as a single agent.

Which individual would be qualified to serve on a probable cause panel?

A former professional FREC member with an active license

What type of capital gain is considered short term?

A gain on a property owned one year or less

Which of the following belongs in the commercial category referred to as retail?

A gift shop

Danny is a sales associate working for Jay, the owner/developer for both Shirley Homes and Laverne Estates. In order to sell real estate for both business entities, what must Danny have?

A group license

What is another name for an installment sale contract?

A land contract

You sign an agreement to rent your cousin's property for a year. This is an example of __________.

A lease

What is a comprehensive plan?

A long-term master plan for the development of a city or county

Which of the following statements is true of a material fact?

A material fact would cause a reasonable person to either act or not act, if that fact were known.

Which of these examples describes a prepayment penalty?

A monetary penalty imposed on a borrower for paying off a loan before its intended time

Joanie sees herself as a mover and shaker, a leader, someone who jumps in and gets things done. She likes to be involved and in charge. When she decides to start investing in real estate, which of these choices is she most likely to select as her investment vehicle?

A multi-family residential income property

Robin has great credit and was able to secure a loan for her oceanside dream home. Her 30-year, fixed rate loan is for an amount that's above conventional loan limits. What type of loan does Robin have?

A non-conforming loan

Which of these is something that is NOT requested in the initial fair housing complaint form?

A notarized copy of the complaint description

What's a section?

A one-square-mile square formed in the use of the rectangular government survey system

The assessed value of a property is ______.

A percentage of market value and the value to which the tax rate is applied

Which individual described below is exempt from the requirement for real estate licensure?

A person selling his or her own property

What's a datum?

A point, surface, or line used as a reference for measuring elevations

Which item is required to be a part of every broker's office?

A private room within which to conduct closings and negotiations

Which of the following is an example of industrial real estate?

Factory

The National ______ Housing Alliance has made recommendations for promoting diverse neighborhoods.

Fair

By passing his real estate licensing exam, Tony has become a REALTOR®

False

Maury's NAR membership has expired and he intends to renew it soon, so he can continue to use the term "REALTOR®" in his advertising.

False

Only licensed brokers can specialize in commercial real estate.

False

Only real estate brokers can belong to the NAR.

False

Jan obtained a mortgage from a savings and loan in order to buy a second home. The savings and loan later assigned the mortgage to Fannie Mae. In this scenario, which entity owns Jan's mortgage?

Fannie Mae

You're a farmer. Which loan program might be tailor-made for you?

Farmer Mac

Florida examinees are notified of their examination results by ______?

A results report before they leave the test center

Jerome, a real estate licensee, can only work under the supervision of a broker. This means that he is licensed as ______.

A sales associate

Joe conducts brokerage activities; therefore, he is a real estate broker

Fasle

The Simpsons are buying a five-acre tract that has always been part of a larger parcel. When the owners of the large acreage decided to subdivide it, they needed to have a legal description created for the five-acre lot. What was used as the starting point for creating that legal description?

A survey

Which of the following is an example of constructive eviction?

A tenant moves out of the apartment after repeated unsuccessful requests to the landlord to repair the broken water heater.

Which act created the Office of Fair Housing and Equal Opportunity under the Department of Housing and Urban Development?

Federal Fair Housing Act of 1968

What's a marketable title?

A title that is clear and free of encumbrances

Beverly, a real estate licensee, doesn't represent either party to a specific real estate transaction. She merely helps the parties handle the paperwork. What role is Beverly taking in this transaction?

A transactional broker

What is the difference between a variance and a special use permit?

A variance requires a show of hardship; a special use permit doesn't.

If you're touring a property and want to know whether there's a well, what should you look for?

A well cap

Local authorities lack police power over which of the following?

Federal government construction projects

While working with a buyer client, Jeffrey filled in the blanks on the purchase agreement, drafted an early occupancy addendum, and assured his buyer that she was "fully protected" and would get her earnest money back if the sale didn't close. He encouraged her to hire an attorney to review the contract and addendum, and invoiced her for a nominal $15 fee to prepare transaction documents. Which of these tasks would NOT be considered unauthorized practice of law?

Filling in the contract blanks

To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which element is applied first?

Financing terms and cash equivalency

Phyllis and Maury obtained a mortgage from Taylor Bank & Trust in 1998. In 2014, they obtained a second mortgage from Quail Loans. What's the loan with Taylor Bank & Trust considered?

First mortgage

After getting into a fender-bender, Parker had to purchase a new car. To make the down payment on the car, he had to skip a couple of his mortgage payments. He received a letter in the mail from his lender indicating the remaining amount of his loan is due immediately and in full. What clause in his mortgage stipulates this?

Acceleration

Stacy has gone into default on her mortgage. Her lender is demanding that the entire loan balance be paid in full. Which mortgage clause permits her lender to do this?

Acceleration

Which of these methods of terminating a purchase offer requires the offeree to accept the terms exactly as they are presented by the offeror?

Acceptance

The term "ad valorem" is Latin for ______.

According to value

Which of the following is an example of illegal market allocation?

Acme Realty and Hawthorne Realty Group agree to divide the city in half, each working its own half.

What license status is needed to perform real estate services?

Active

When Dashiell receives the purchase offer for his bungalow, he's surprised to see a page added to the contract requesting attorney review of the contract. What is Dashiell looking at?

Addendum

What do you get when you add the purchase price to closing expenses and the cost of any improvements during the time of ownership, then subtract any depreciation taken?

Adjusted basis

What does the Federal Trade Commission regulate?

Advertising

Which types of advertising fall under the DBPR and FREC's rules and regulations? Select the best answer.

Advertising by any means

Which of these situations requires the brokerage relationship to be disclosed?

Advising a buyer client on negotiating the best price

What's involved with the antitrust violation called market allocation?

Agreeing with a competitor to divvy up a market

Farms, timberlands, ranches, orchards

Agricultural

Which statement is true regarding how a face-to-face closing is conducted?

All parties are present and physically meet to sign and exchange documents.

Which option describes a subordination agreement?

An agreement between two lien holders to modify the order of lien priority

Bob and Kate entered into a private agreement that Kate could cross Bob's property to get to an orchard behind their two properties. This is an example of ______________.

An easement

In the rectangular government survey system, what's a base line?

An east-west line used as a reference point

All of the following are true regarding implied agreements EXCEPT which one?

An implied agreement is based on a formal agreement.

What makes an income tax lien different from a property tax lien?

An income tax lien is a general lien and a property tax lien is a specific lien.

What is the three-property rule as it relates to tax-deferred exchanges?

An investor can identify up to three replacement properties and not encounter a restriction regarding fair market value as long as debt load requirement is met.

What is a reverse exchange?

An investor finds and closes on an investment property and then decides to immediately sell another investment property.

What does the Federal Trade Commission consider to be an unfair ad?

Any ad or business practice that causes or is likely to cause injury

The Federal Trade Commission is concerned with all ad claims but is most likely to be most concerned with ______.

Any ad that makes a health or safety claim or any claim that's difficult for the consumer to evaluate

Sanjeev leases a house from Clara, and the lease has an option contract attached that permits Sanjeev to buy the house if he chooses to exercise the option within three years. How large does the option fee need to be in order to be legally binding?

Any amount agreed to by the parties

Which option defines an acceptable fee according to the Real Estate Settlement Procedures Act?

Any flat fee based on actual services disclosed and performed for a client, regardless of the success of the transaction, with the settlement service provider.

Thom and Josie have lived in their Florida home for 15 years and it is their permanent residence. If they wish to exempt a portion of their home's value from property taxes what must they do?

Apply for a homestead tax exemption.

Ernesto conducts appraisals, but must work under the supervision of a certified appraiser. Which of the following best describes Ernesto's appraiser status?

Appraiser trainee

Which category of appraiser must be supervised by a certified appraiser?

Appraiser trainee

Heather is selling her home, and hired Kennedy as her agent. Kennedy noticed evidence of termites, and asked Heather about it. Heather said she had a pest control company come in and take care of the problem. What can Kennedy do to reduce the risk of misrepresentation?

Ask for the pest control company report from Heather.

Loretta is an unlicensed assistant in Ft. Lauderdale. Which of the following tasks is she permitted to perform for her broker?

Assemble closing documents

What is the value used by government tax assessment offices?

Assessed value

Which type of value is used to calculate property taxes?

Assessed value

Justin buys Connie's home, and in the written sales contract, he specifies that the outdoor grill must stay with the home. Connie ends up taking the grill when she moves out. If Justin wants to sue Connie for taking the grill, he must do so within ________.

Five years

What may happen if a property lies in a designated floodplain?

Flood insurance may be required.

Which act simplifies, clarifies, and modernizes consumer protection laws and makes them more consistent with federal trade laws?

Florida Deceptive and Unfair Trade Practices Act

Which state act prohibits unfair or deceptive business acts?

Florida Deceptive and Unfair Trade Practices Act

Which of these is usually a brass marker that is used to mark a datum?

Benchmark

A ______ is often used in commercial applications when two or more properties are pledged as security for repayment of the loan.

Blanket mortgage

Conducts real estate brokerage activities

Both broker and sales associate

What can tax losses be used to offset?

Both passive and active income

Shana has a former conviction for petty theft, and one for armed robbery—two events that occurred more than five years ago. When she applies for her real estate license, which conviction or convictions must be disclosed?

Both, because any criminal conviction must be disclosed

Responsible for the acts of all licensees who work under them

Broker

ABC Realty's qualifying broker just left. If a new broker is not identified within 14 days, what will happen?

Brokerage registration will be cancelled

In case history regarding fair housing, which case involved an ordinance that prohibited blacks from living on a block where the majority of the residents were white?

Buchanan vs. Warley

Loans for ______ purposes don't require TILA disclosure.

Business

In the sale of a business, which generally involves 12 steps, something happens with the assets early in the process. What is it?

Business assets are separated from personal assets.

Sale, purchase, or lease of businesses

Businesses

Sally is helping her Aunt Jess shop for another rental property. Aunt Jess likes to reminisce about the "good old days" when everything cost less. "Your Uncle Floyd and I bought our first rental property for $80,000 and that was a nice house. It was new, too. You couldn't touch that house for less than $250,000 today. Times change, huh, honey?" Aunt Jess is referring to which kind of investment risk?

Buying power

How do brokers/licensees obtain their commission?

By providing the attorney or closing agent with a broker statement that shows how much each broker should receive

Sally has just purchased a condominium. She is curious about whether she can plant hydrangeas next to her porch. Which condominium document could she consult for the answer?

Bylaws

This type of appraisal report makes use of pre-printed documents.

Form report

When it came time to plan the city, Arlene (the agriculture specialist), Robert (the residential guru), and Carmen (the commercial genius) all locked themselves in a room and planned the area together. What type of planning is this?

Form-based planning

Rico is an appraiser who is performing a valuation on a property. What's another term for what Rico is doing?

Formal appraisal

Personal property includes which of the following?

Free-standing TV

Peter is a tenant in a single-family home owned by Cheyenne. What type of interest does Cheyenne have in the property?

Freehold

Jenner purchased his first home, to which he'll have access forever, as far as he knows. Jenner owns a(n) ______.

Freehold estate

When structuring an offer, if a seller's need is related to obtaining a specific price, what can a buyer offer to meet the seller's need?

Full price or more than full price

In this type of corporation, a centralized management group of elected officers governs the company's affairs, while the designated licensed broker is directly responsible for the real estate transactions.

General C corporation

Callie has sublet an apartment in Florida for the past four months this year and plans to continue to reside in Florida and apply for a Florida real estate license. Which of the following applies?

Callie is a resident of Florida and can apply for a Florida real estate license.

Which substance prevents blood's ability to transport oxygen when it's absorbed into the body?

Carbon monoxide

What is the definition of "before-tax cash flow"?

Cash flow before taking income taxes into account.

Which of these phrases means "let the buyer beware"?

Caveat emptor

Charles is a broker who is moving his place of business across town. Charles will need to remember to register this change of business address with the DBPR within 10 days. What classification describes why Charles can't conduct real estate business until he registers his change of business address?

Cease to be in force

What penalties may be assessed for violations of FDUTPA?

Cease-and-desist orders

These individuals may appraise residential property only, and only of one to four units, without regard to transaction value or complexity.

Certified residential appraiser

Which document establishes path and proof of ownership?

Chain of title

Cheyenne is selling the family farm on an installment contract. What is one advantage of selling the farm this way?

Cheyenne will pay less in capital gains taxes by receiving the proceeds from the sale over time, rather than in a lump sum.

Christine listed her house with you. Tailleur represents the buyer, Rebecca, and the seller's mother, Freida, is paying your commission. Which of these factors determines how legal agency is determined in this situation?

Christine listed the property with you.

Title VIII of which law prohibits discrimination in the sale, rental, and financing of housing?

Civil Rights Act of 1968

What agency/act is designed to regulate pollutants, such as oil and other hazardous substances, discharged into U.S. waters?

Clean Water Act

The developer of a new subdivision is placing residential properties closer together, allowing him to include large open spaces throughout the development to build bike and walking trails, as well as a community pool and recreation center. What type of zoning is this?

Cluster

In what type of market could the buyer's strategy be to offer 10% below list price?

Cold market

Rhonda and Jade both consider themselves African-American, although Rhonda has much darker skin and hair than Jade. When Rhonda went to the Valley Falls apartment manager's office to request a rental application, she was told there were no vacancies. Jade went in a day later and received an application. This may be discrimination based on ______.

Color

Income-producing properties, such as retail stores, office buildings, shopping centers, and residential property with more than four units

Commercial

Phoebe is a broker who specializes in high-rise apartment buildings in metro areas. What types of properties are these?

Commercial

Broker Zeke is busy and doesn't have time to go to the bank, so he deposits his client's earnest money funds into his personal account. He plans to move the funds to the appropriate account within a week. This violation is an example of ______.

Commingling

Which method of estimating a business's value considers the sales prices of similar businesses and accounts for basic differences to arrive at a market value?

Comparable sales analysis

Which type of analysis starts with a visit to the property, a search on the MLS, and a comparison of comparable sales, and hopefully ends in a listing for a real estate licensee?

Comparative market analysis

Which economic principle is related to supply and demand?

Competition

To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which one of these elements listed has the highest priority?

Conditions of sale

Which of the following is a category of a residential property?

Condo

Many of an agent's fiduciary duties to the client end with the termination of an agency agreement. Which fiduciary duty never ends?

Confidentiality

Which of these duties are owed by a designated sales associate, among others?

Confidentiality, obedience, loyalty, and full disclosure

What type of an eviction could tenants claim if they're forced to vacate an apartment after the landlord failed to repair the heat?

Constructive eviction

Which agency administers the Interstate Land Sales Full Disclosure Act?

Consumer Financial Protection Bureau

Which economic principle pertains to how a change in a property affects its value as a whole?

Contribution

Applicants for a Florida real estate license are required to report if they have ever been ______ a crime.

Convicted or found guilty of

What do cooperative owners receive to demonstrate ownership?

Corporation shares and a proprietary lease

Which approach to value measures the cost to produce a property, including land acquisition and construction costs?

Cost approach

Which of the following would be considered an "immune" property?

County courthouse

Which penalty type has imprisonment as a potential outcome?

Criminal

Javier represents Marcus, who's selling his rental property to Ben. Ben is represented by another real estate licensee, Francis. What is Ben's relationship to Javier?

Customer

After owning a tattoo parlor for 12 years, Gilbert sold it. Gilbert's accountant calculated a $46,000 capital gain. Which of these statements is true

Gilbert will pay tax on the gain at the long-term capital gains rate.

Jimbo doesn't have a real estate license. Which activity is he legally allowed to perform?

Give advice to a friend who is negotiating the purchase of a house.

Nancy just hired her sister, real estate licensee Grace, to list her property. Jason schedules a showing for his client, who's interested in Nancy's property. What needs to take place?

Grace needs to disclose in writing to Jason and his client that the property is owned by a family member.

Maxwell is a tenant. His lease has a fixed rent in which the landlord pays all taxes, insurance, and maintenance expenses. What type of lease does he have?

Gross

What's it called when a number of percentage points is added to the index to determine the rate for an adjustable rate mortgage?

Margin

Which type of antitrust violation occurs when real estate firms agree to divide their market so they don't compete with one another?

Market allocation

What's the price at which a willing buyer and a willing seller would strike a deal, given normal market conditions?

Market value

For what are datums and benchmarks used?

Measuring elevations

Morty, a land surveyor, was called out to survey a property. After doing some research, he located the legal description for the property in question. Now, if he could just find the point of beginning located at the iron pin on the southerly line of state route 117, 30 feet east of the oak tree next to Bear Creek. What type of legal description is Morty working with?

Metes and bounds

The main difference between puffery and misrepresentation is that ______.

Misrepresentation falsely represents material facts that a reasonable person would rely upon

Which of the following is an example of commingling?

Mixing earnest money with personal funds

What are the two types of Real Estate Investment Trusts?

Mortgage and equity

Which type of federally related lending transaction is covered under RESPA?

Mortgages and home equity credit lines

In which of the following situations can the state use its power of escheat?

Nadine died with no heirs and no debt.

Which activity can you perform without a license?

Negotiate rent of an office building for the nonprofit where you work.

Which type of retail space often has service businesses, such as dry cleaners, hair salons, and convenience stores?

Neighborhood center

A real estate licensee and his client fulfill the listing agreement, and the agency relationship is terminated. At what point is the agent's fiduciary duty of confidentiality to this client terminated?

Never

Bob is a broker employing a sales associate, Rudy, whose real estate license was just changed to involuntary inactive status because Rudy didn't complete his post-licensing education requirement. Rudy hasn't yet submitted his renewal application, even though the deadline for doing so was two months ago. Can Bob let Rudy continue to perform real estate services?

No, Rudy may not perform real estate services while his license is in involuntary inactive status.

Mardee is representing Carol in the sale of her condo, and they've signed an exclusive agency listing agreement. If Carol finds her own buyer, does she owe Mardee a commission?

No, because Carol procured the buyer.

Gracen has had his sales associate license for five years. He's completed the FREC-approved 72-hour pre-licensing course for brokers. Is he now qualified to obtain a real estate broker license?

No, he needs to pass his broker's licensing exam first.

Back in the 1930s, the house at 102 Barbour Street was the only one in sight. Since then, however, the town has grown considerably and the once-residential Barbour Street is an industrial zone, with the residence at 102 Barbour Street in the middle of it all. What type of zoning does the residence demonstrate?

Non-conforming zoning

Which of the following is true about Florida homesteads?

Non-governmental creditors cannot pursue liens against these properties.

Cooperative corporations own all of the following EXCEPT ______.

None of these; the corporation owns all of these things.

A landlord who wishes to show an occupied rental property in Florida to a prospective buyer must provide the tenant with reasonable ____________.

Notice

Anna and Cindy, two friends, enter a contract to buy Jake's home. However, at the last minute, Cindy has a change of heart and wants out of the deal. Anna asks another friend, Sally, if she wants to take Cindy's place as co-buyer of Jake's home. Everyone agrees to the substitution of Sally for Cindy on the contract. This is an example of ______.

Novation

Mary contracted to buy her mother's house when her mother moves to a senior living community, but now Mary has to move because of work and no longer wants to buy the house. With their mother's agreement, Mary's sister, Tina, steps in, releasing Mary from her obligation. They write up a new contract, with the only change being that Tina is now the party to the contract rather than Mary. This is an example of ______.

Novation

Parker enters into a contract with seller Derrick to buy his home. Before finalizing the sale, Parker has a change of heart and decides to renounce all worldly possessions. He no longer wants to buy Derrick's home, but his brother, Tom, agrees to take Parker's place as the buyer in the purchase contract. This is an example of ______.

Novation

What is the key difference between assignment and novation of a contract?

Novation releases the original party from all obligations, while assignment does not.

What is the license classification for a license that is voluntarily relinquished or cancelled by the licensee who no longer wants to do business in real estate?

Null and void

How many single agents from a single brokerage may be part of a single residential transaction?

One

You've just spent the last year affiliated with another broker. How much longer do you have to be affiliated before you qualify for a broker's license?

One more year

Homeowners may transfer the SOH benefit to a subsequent home. In order to do this, their homestead exemption must have been in place on their current home for _________________ preceding years.

One of the previous two

When can specific performance be enforced under a sales contract?

One party didn't meet the terms of the contract in the specified time frame, and is now being required to do exactly what was agreed to in the contract.

Who can use the term REALTOR® to refer to themselves?

Only members of the National Association of REALTORS®

A(n) ______ contract is an offer to purchase a specific piece of real estate, but without the obligation to buy it.

Option

Margo is the potential buyer of the property in an option contract. Margo is the ______.

Optionee

Which type of property is exempt from the Fair Housing Act?

Owner-occupied with no more than four units

Ken, Dale, and James are brothers who own more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result is that the court gave each brother a designated set of acres to own. What was granted by the court?

Partition

The quasi-legislative powers of the FREC include which of the following responsibilities?

Pass rules and regulations

Which type of listing can help a real estate professional determine how quickly a home in a given price range received an accepted offer?

Pending

An adjustable rate mortgage has an initial interest rate of 5%. When the first interest rate adjustment date arrives, the rate can be adjusted a maximum of 1%. At all subsequent adjustment dates, the interest rate can be adjusted a maximum of 2%. The highest rate of interest that may be charged at any given time is 9%. What does the 2% rate represent?

Periodic cap

Licensee Dionne pointed out to her buyer client the items in the house she was showing that would be considered real property. One of the key determinants, she explained, was whether the item were ______.

Permanently affixed to the property

Lester is interested in a two-bedroom unit in a cooperative. A residence in a cooperative, unlike a condominium, is legally considered ________.

Personal property

Who collects and gathers information for background studies used in a comprehensive plan?

Planning commission support staff

What does the lot and block system use to develop a property's legal description?

Plat references

Which of the following loan types involves a type of graduated payment?

Pledged account

Which decision stated that separate facilities for blacks and whites were constitutional as long as they were "equal"?

Plessy vs. Ferguson

In order to sit for the real estate sales associate examination, you must provide proof of ________________.

Pre-licensing course completion

What's part of the licensee's role in the closing process?

Preparing clients for closing

Which two duties of the transaction broker are shared with the single agent?

Present all offers and use skill, care, and diligence

Which of the following would likely constitute an emergency, giving a landlord the right to enter a tenant's premises without notice?

Prevention of property destruction

Which of the following terms can be defined as what a buyer has paid for a property and what the seller has accepted?

Price

A consumer is moving to a new area and uses social media to try to line up a real estate professional to help him find a new home. He asks how much he'll need to pay his licensee. One firm he contacts tells him that all licensees in the area charge at least 2%. What antitrust violation does this imply?

Price fixing

Charlize is monitoring market indicators in a particular area for her client who wants to buy an oceanfront home. Which market indicator will tell her how much prices have fluctuated in the area over the past two years?

Price levels

The fewer properties on the market, the greater the scarcity. What's the effect on prices?

Prices are pushed upward.

What often comprises the sum total of a buyer's mortgage payment?

Principal, interest, taxes, and insurance

Commission disputes may occur after a property sold via an open listing when there is debate over who was the ______.

Procuring cause

The smallest property on the block is also priced lower than any others, but the higher-priced properties that surround it help to drive the property's market value up. What economic principle is at work here?

Progression

Which of the following is a piece of specific data an appraiser may gather?

Property lot size

Which of the following is true regarding the tax protest procedure in Florida?

Property owners must first meet with the county property appraiser or file an appeal before petitioning the VAB.

Over the life span of owning a home, homeowners will be able to take advantage of what tax benefits?

Property tax deduction

What's a typical prepaid item that will go into a seller's credit column and a buyer's debit column on a closing statement?

Property taxes

When a tax certificate is issued, it means what?

Property taxes are delinquent.

What is lis pendens?

Public notice of pending legal action involving real estate

The Hendersons don't have enough money to make the full 20% down payment their lender requires. To close the sale, the seller is willing to finance a loan for the gap between the home's list price and the amount the institutional lender is willing to loan. What's this type of financing called?

Purchase money mortgage

Which of the following is a mortgage where the consumer cannot later claim that the lender did not comply with the ability to repay requirements?

Qualified mortgage with a safe harbor status

Which act ensures a buyer in a residential transaction that's financed by a federally related mortgage loan has knowledge of all settlement costs?

RESPA

The percentage of the amount invested that the investor receives back is called ___________.

Rate of return

Which Florida court ruling stated that an as-is real estate contract did not protect sellers from fraudulent non-disclosure?

Rayner v. Wise Realty Co.

The ______ Act was created by the Florida legislature to establish the legal rights and responsibilities of real estate licensees.

Real Estate Professional Practice

Chapter 475 of the Florida statutes, called the ______, sets forth the law regarding real estate brokers, sales associates, and real estate schools.

Real Estate Professional Practice Act

Which consumer protection act enacted in 1974 prohibits kickbacks and referral fees and requires written lender disclosure of estimated and final settlement costs?

Real Estate Settlement Procedures Act

Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable?

Real estate contracts must be in writing.

Erica and Stephanie are buying a rental property together to make some extra money, and need advice on financing and the tax implications.

Real estate counselor

In the real estate business, which professional's primary role is to provide clients with the information they need to make informed decisions about their own specific real estate interests?

Real estate counselor

In the real estate business, which professional's primary role is to provide training to individuals who want to obtain their real estate license or who need to keep their license current?

Real estate educator

Your friend, Ali, is interested in getting her real estate license and wants to get started on her pre-licensing education.

Real estate educator

What type of real estate investment may meet the definition of being a security and must adhere to the rules and regulations of the Securities and Exchange Commission?

Real estate syndicate

Richard is interested in purchasing some rural land and included outbuildings. When reviewing the legal description, he sees the name of a principal meridian. What type of legal description is this?

Rectangular government survey

Which legal description method is regulated by the U.S. Department of the Interior's Bureau of Land Management?

Rectangular government survey

Early in its history, the Federal Housing Administration officially supported keeping "incompatible" racial groups out of the newly developed white suburbs. This practice is known as ______.

Redlining

What's the term for a lender refusing to lend in a specific area, often based on the area's minority make-up?

Redlining

The rules in the Florida administrative code that ___________ real estate have been enacted by the FREC to enforce the license laws.

Regulate

Jamie owns a lakeside home. Over a period of years, the water has receded quite a bit, doubling the size of the sand beach on his property. What's the name of this process?

Reliction

The Millers moved to a small town and were interested in buying a house. At the first meeting with real estate sales professional Nora, she asked them where they went to church. They replied that they were atheists and didn't attend church. Nora then told them that she didn't know of any listings that met their needs, even though that wasn't true. Nora is discriminating based on ______.

Religion

Property with four or fewer residential units or agricultural property with 10 or fewer acres

Residential

Which zoning type is used to regulate an area's population density?

Residential

Which of these types of tenants most often uses a percentage lease?

Retail

Which investment cycle is an investor in when there is depreciated basis and tax-deferral through 1031 exchanges?

Reversion

Which covenant term means that the grantor has legal capacity to convey the title and has the title to convey?

Right to convey

The chance that an investor might lose money is known as __________.

Risk

Tenant turnover, increases in property taxes, and other costs are examples of what?

Risks

Rose, represented by Sandy, and Tina, represented by Julie, entered into a sales contract for Rose to purchase Tina's home. Rose intended to ask Tina to repair the water heater, but the inspection deadline came and went. Now Rose has to buy the property as-is. Whose responsibility was it to convey Rose's wishes to Tina?

Rose and Sandy

Must work with a broker

Sales associate

Which type of lender specializes in taking in savings deposits and then lending money out to consumers through mortgages and other loans?

Savings and loan

Ari owned acreage in a rural area. He sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered Ari several million dollars for the entire acreage, and Ari eagerly accepted the offer. What covenant is Ari in danger of violating?

Seisin

With a land contract, who retains the title to the property?

Seller

What can listing agents prepare for their clients to give them unofficial estimates of all closing costs?

Seller net sheet

Mark passed his license exam on February 10, 2014. What is the initial expiration date of his license?

September 30, 2015

Judy's first sales associate license was issued on October 2, 2014. By what date must she renew her license to keep it active?

September 30, 2016

How many members serve on the Florida Real Estate Commission?

Seven

The DBPR has issued a cease and desist order to Malika. Which of the following must be true?

She is unlicensed.

Jacqueline is a licensee working with a property near a Superfund site. Which of these statements is true?

She must disclose the existence of an environmental hazard in the area.

Licensee Quinn is working with seller clients, the Swans, who have found buyers. The property belongs to a homeowners association. Which of these actions must Quinn take?

She must provide the buyers with a disclosure statement that outlines the association's restrictions.

What type of capital gains may property owners encounter?

Short- and long-term

Elisa agreed to list Simone's house for sale. After the listing contract was signed, Simone lost her job, and her father, George, offered to help Simone by paying Elisa's listing commission. The buyer's agent, Carl, also reduced his commission by a quarter percent to help Simone. Who is Elisa's client?

Simone

Which of these authorized brokerage relationships includes fiduciary duties?

Single agency

A planning commission has final authority over which of these options?

Site plan

When working with a client on a real estate sale, a real estate licensee is usually which type of agent?

Special

Which option describes a real property tax lien?

Specific and involuntary

Microscopic pieces of mold that float around in the air are called what?

Spores

Tres owns a warehouse in an area that is zoned light industrial. With an increased demand for housing in the area, Tres wants to create loft-style condos and have his property designated as residential, even though the surrounding buildings will remain light industrial. What type of zoning is this?

Spot zoning

When both supply and demand increase, what tends to happen to prices?

Stay the same

Which of the following is the least specific method for describing a property?

Street addres

Blane owns a barbershop. He polls his customers and learns that they tend to come from less than a mile away. That's probably because Blane's store is in which type of location?

Strip mall

What is required by a broker to obtain multiple licensure?

Submit an application and fee to the DBPR with the signature of the broker they wish to work under as a broker associate.

What's it called when lien holders allow another lien holder's claim to have priority over their own?

Subordination agreement

Loans made to high-risk borrowers, at higher interest rates and with higher fees, are ______.

Subprime loans

This economic principle says that a property's value is determined by what it would cost to purchase a similar property.

Substitution

Along with property ownership, rights are granted to use the land's physical components. Which right allows a property owner to use or sell the underground resources, such as natural gas and minerals?

Subsurface

The economic principle that tells us that when supply goes up, price goes down, is commonly referred to as what?

Supply and demand

In a buyer's market, what causes prices to go down?

Supply exceeds demand

Real estate is a _____________, unlike stocks or bonds.

Tangible asset class

______ is the form of ownership used by married couples in certain states. It includes automatic survivorship rights.

Tenancy by the entirety

Deborah and her mother, Sarah, own a townhouse together. Sarah owns 70% of the house and Deborah owns 30%. What type of ownership is this?

Tenancy in common

Jack, Jerry, and Joe purchased a property together. Jack put up half of the money; Joe and Jerry each put up one-quarter of the money. Their ownership is 50%, 25%, and 25%. What type of ownership is this?

Tenancy in common

Luther is analyzing an investment property. During his analysis, he looks at environmental sensitivity, political climate, the potential for a development moratorium, economic downturns, etc. What is Luther demonstrating

That risks involved with real estate investments need to be analyzed

James represented a client who believes James was guilty of misrepresentation. The client files a complaint against James. Who or which entity will investigate?

The DBPR

What can happen if the DBPR uncovers a serious violation or criminal act during its investigation of a licensee?

The DBPR can issue an emergency suspension order to stop the licensee from performing licensed activities.

Which entity conducts an investigation when a complaint is filed against a licensee?

The Department of Business and Professional Regulation

What must be provided to consumers who are buying homes built prior to 1978?

The EPA pamphlet, "Protect Your Family from Lead in Your Home"

In Florida, the FDEP maintains a list of contaminants and their Total Maximum Daily Load (TMDL) contaminant level. Where is this information available?

The FDEP website

What's the name of the Florida act that specifies accessibility standards for the disabled?

The Florida Americans with Disability Accessibility Implementation Act

Which of the following is the sunshine law based on

The Freedom of Information Act

Which of the following is a true statement about the MLS and sellers?

The MLS is available via a fee-based subscription and is an option that most sellers prefer.

A license fee may be collected to fund what?

The Real Estate Recovery Fund

Marcus listed his property with Home Sweet Home Realty and one of its listing agents, Ron Savage. About a month later, Ron filed for bankruptcy. Which of these statements about this situation is true?

The agency agreement only terminates if the broker or the principal declares bankruptcy.

Two large local brokerage firms agreed to lower their commission rates to the same amount, approximately 1% lower than any other firm in town. After extensive marketing of their new lower rate, these two firms began to see a big increase in the number of listings they received, costing their competitors substantial amounts of money. What about this situation makes it a per se antitrust violation?

The agreement between the two firms

What is a deed in lieu of foreclosure?

The borrower turns the deed over to the lender rather than face foreclosure proceedings.

In Florida, who or what entity must keep records of all funds deposited into the custodial or trust account that indicate the date and from whom the broker received the funds, the date deposited, the date any withdrawals are made, and other necessary information?

The broker

Which of the following is a possible outcome if a brokerage is found guilty of violating antitrust law?

The brokerage may have to undergo court-ordered supervision for up to 10 years.

What is the name of a term which explains the complexity of property ownership rights and how rights for a single property can be "owned" by multiple parties at the same time?

The bundle of rights

Who usually pays the documentary stamp tax on notes and the intangible tax on new mortgages in Florida?

The buyer

What's next for a licensee candidate who's successfully completed the pre-licensing course and have had their sales associate license application approved?

The candidate needs to pass the real estate sales associate examination.

In which of these listing agreement terminations is there LEAST likely to be a penalty for terminating the agreement?

The client and agent mutually agree to terminate the listing.

Consent is not present when ______.

The contract is signed under duress or undue influence

Which of the following statements is true regarding a partially performed sales contract that otherwise contains all of the essential elements?

The contract is voidable.

Henry wants to submit an offer for Lacy's house. Under the statute of frauds, which of the following is NOT a requirement must meet for his offer to become an enforceable purchase agreement?

The contract must be notarized.

Leo would like to sell his membership share in a cooperative to Mariah. Which of the following statements is true?

The cooperative board must approve Mariah's application before Leo can sell his membership share to her.

When does the buyer's agent, attorney, or lender contact the buyer to tell them the exact amount to bring to closing?

The day of signing, or just prior to it

One element of misrepresentation is when ______.

The false statement caused harm to the person who relied upon it

A family of four, with children ages six and nine, is denied the opportunity to view an available unit at a community that caters to seniors. Which of the following statements is true?

The federal Fair Housing Act allows an exemption for communities that are designated for senior use.

If there's no state or local building code to cover a specific situation, what code must the builder abide by?

The federal building code

A final judgment for foreclosure has been reached in the suit against Ben. If Ben doesn't exercise his right to equity of redemption, what will happen next?

The foreclosure sale will be advertised and the property will be sold at auction to the highest bidder.

Stan is a home inspector who's evaluating a home for potential buyers. He pointed out that neither of the two bathrooms had vent fans installed. Why is this a potential problem that will be noted on the inspection report?

The lack of air circulation in a moist room can lead to mold growth.

Marcy's offer on a home was accepted! Which party will be contacting her about arranging an appraisal?

The lender

When a mortgage is used as a security instrument, who holds the mortgage and the promissory note?

The lender holds the mortgage and the note.

How is the grid that's used in the rectangular government survey system laid out?

The numbers start in the northeastern corner and follow a zigzag pattern.

Meredith died, leaving behind a will. Although her instructions to devise her property to her daughter were explicit, her husband inherited. Why might this be?

The operation of law

When a petition is made to the VAB for a property on which the taxes are delinquent, what happens?

The petition is denied.

What's market value?

The probable sales price if the property were listed today and a willing seller and buyer were involved in the transfer of ownership

In a 1031 exchange, there are rules governed by Section 1031 of the Internal Revenue Code. The rules include _______________.

The property in an exchange must be like-kind

Samuel is excited to launch his new website! However, when his sponsoring broker viewed it the first time, she told him that he is violating Florida real estate advertising laws. What do you think Samuel did wrong?

The required advertising information isn't on every page.

With both joint tenancy and tenancy by entirety, when one tenant dies, that person's share automatically goes to the other surviving tenant(s). This is known as ______.

The right of survivorship

Who usually pays Florida's documentary stamp tax on deeds?

The seller

Which of the following best describes a net listing?

The seller specifies a desired price for the property and agrees to pay the broker any amount received that's more than that price

Which of these is an example of a material fact?

The seller would not have accepted an offer had he or she known the fact.

When looking at a rectangular government survey system map, where would Section 36 be located?

The southeastern-most section of the township

Laura's property is subject to a special assessment. Which of the following is true?

The special assessment must benefit Laura's property.

When state and federal laws conflict, as they sometimes do with fair housing and/or human rights, which of these statements is true?

The state law may not remove rights granted to citizens under the federal law.

If a Florida property owner has a lien on their property for property taxes, what does it mean?

The taxes have not been paid yet.

When a deed of trust is used as a security instrument, who holds the deed and the note?

The trustee holds the deed, and the lender holds the note.

What would happen if you bought a house and later found out that there were unpaid liens against the property?

The unpaid liens could trigger a foreclosure on your property.

Elizabeth's property is encumbered by an easement in gross with which of these entities?

The utility company that needs to access the power line which crosses a corner of Elizabeth's land

What's next for licensee candidates who have successfully passed the real estate sales associate examination?

Their sales associate license will need to be activated.

Which of these sentences accurately describes the phrase "statute of limitations"?

There are deadlines for certain types of legal action.

In the real estate market, when demand exceeds supply, it means what?

There are more buyers than available homes and prices will be higher.

Why may agricultural land be a good investment?

There is an increasing global demand for food.

What's the minimum amount of real estate industry experience that an individual must have to qualify for a sales associate's license?

There is no real estate experience requirement for sales associates

Which of the following is true about homesteaded properties in Florida?

They are protected from non-governmental creditors.

Which of the following statements is true of investment properties?

They can be leveraged.

Angie and Terrell have just found out that there is a lien on their property for real estate taxes. What does this mean?

They haven't paid their property taxes yet.

In order for Thom and Josie to exempt a portion of their primary residence's value from property tax, they must file a homestead application with the county appraiser's office before March 1. What other requirement must they meet?

They must have had legal title since January 1.

Which of the following is true about net listings?

They often involve a conflict of interest.

Daisy and her kids loved their new pool, but Daisy wasn't so happy when she received notice that the general contractor who poured the concrete had placed a lien on her home. Daisy went through her records and discovered that she had never paid the general contractor. What's true about this situation?

This is a legal mechanic's lien.

Two intoxicated co-workers sign a contract in which they agree to marry each other if they're both still single when they reach age 40. Which of the following is true about this contract?

This is a voidable contract because the parties were intoxicated at the time they signed it.

How many feet are in one yard?

Three

Which of these is a means by which radon may enter a home?

Through floor joists

A ______ is a piece of real estate owned by multiple, unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit based on the specific terms of a time-sharing agreement, usually in one- to two-week intervals during the year.

Timeshare estate

Which of the following statements is true regarding timeshare estates?

Timeshare estates can be sold or passed down to heirs.

Which of these statements about title insurance is true?

Title insurance coverage includes the service of a "title search" prior to the close of the sale.

Who delivers the evidence of a clear title at the closing?

Title insurance representative

Which of the following is a recommended way for listing agents to use the MLS?

To advertise their listings

Why does the closing agent review the purchase contract?

To gather closing-related information agreed to in the contract

What would be a reason for getting a home inspection done before closing on a property?

To get more detailed information about the overall condition of the home and find any defects or repairs that are needed before purchasing the property

Which of the following is true about a variance?

To obtain it, the owner must show hardship.

What's the primary purpose of the federal Fair Housing Act?

To protect buyers' and renters' right to have choices in housing without discriminatory limitation

To protect the public, the Florida Real Estate Commission was granted what authority?

To regulate brokers, firms, sales associates, and real estate schools

Regina closed on the sale of her house to Tom on Thursday, then went to a second closing on Friday and sold it to Martin. How could the title company in Martin's transaction have missed the fact that Tom had purchased the property?

Tom's title company didn't have time to record Tom's deed before Regina closed with Martin

What term refers to the dimensions, physical features, and contours of the land?

Topography

_______________ refers to the dimensions, physical features and contours of the land.

Topography

Which of the following is true?

Topography determines how the land can be used and where utilities and dwellings can be located.

What's the relationship between townships and sections in the rectangular government survey system?

Townships are divided into sections.

What's one benefit to affiliating with a broker?

Training

Amy doesn't hold a brokers license. Therefore, she can't receive direct compensation from buyers or seller for her transactions.

True

As a member of the NAR, Mary is bound by the NAR Code of Ethics and Standards of Practice, as well as the real estate code of ethics, enforced by the state in which she is licensed.

True

Charlotte will have to pay a membership fee to join the NAR.

True

Which of the following statements regarding automated valuation models is true?

Trulia, Zillow, and RealtyTrac use AVMs to return values.

Which of the following is price fixing?

Two brokerages determine a standard commission rate.

What standards do appraisers follow

Uniform Standards of Professional Appraisal Practice

Which of the following are possible effects of an incorrect legal description?

Unintentional encroachment, title and legal issues

Which physical characteristic of land addresses the concept that land isn't interchangeable and one piece of land isn't exactly like another?

Uniqueness

When does a transfer tax become payable in Florida?

Upon recording of the document

When you use a comparative market analysis to calculate a suggested price range for a particular property, you will ______.

Use adjusted prices from sold comparables and refine the range with data about active listings, expired listings, and possibly pendings

Which of these can be defined as a lender charging a borrower more than the highest allowable interest rate?

Usury

Which of these properties is considered to be non-residential or commercial?

Vacant land zoned for agricultural use

Which of the following terms is a term used to describe the value of a property as it is currently being used by the owner?

Value in use

Vicky is a sales associate working for a broker whose license has been suspended. What will happen to Vicky's license until she finds a new employer?

Vicky's license becomes inactive.

Sylvia, 15, and her neighbor, Marge, 24, agree that Sylvia will babysit Marge's toddler for the summer for $10 an hour. What type of contract is this?

Voidable

Which of these statements about voluntary alienation is true?

Voluntary alienation occurs when the property owner decides who will acquire the property.

Which of these would be a breach of Margo's fiduciary duty of confidentiality?

When asked by the buyer's agent if the seller was firm on his price, Margo said, "Everything's negotiable," and winked at the other agent.

What conditions must be met to avoid violating RESPA when receiving promotional or educational materials from a mortgage company or other settlement service provider?

When they are not given in exchange for a referral and do not defray any cost you would normally have to pay.

How can a lender with a lien that's in second position get into the first position?

With a subordination agreement

By when must sales associates and broker associates deliver escrow funds to their broker/employer?

Within the next business day of receipt

Can a new licensee specialize in the sale of farm and ranch property?

Yes, a new licensee can specialize in agricultural real estate

Which of the following scenarios accurately represents your environmental disclosure responsibility as a real estate licensee?

You must disclose all known environmental hazards for both residential and commercial properties.

In addition to serving as the listing agent for several clients, your own house is also on the market. You receive a call from another licensee who wants to show her buyer client your house. What must you immediately disclose to the buyer's agent and buyer?

You own the property.

You make a listing presentation to a client, then learn she's meeting with a few more licensees before deciding which licensee gets her listing. You know these competitors. Which action best demonstrates good faith?

You tell the seller you hope she'll decide to work with you.

Which of the following describes a buydown?

Your clients opt to pay their lender two discount points in a lump sum so they can lock in a reduced interest rate.

An underground storage tank has been in place for 15 years. What is its remaining useful life, on average?

Zero years

Donny is moving to another state for work and needs to sell his house. He's not sure how much it's worth.

appraiser

Brenda conducts brokerage activities and can receive compensation directly from buyers or sellers. She must be a ______.

broker

Office buildings, shopping centers, and hotels are examples of ____________ properties.

commercial

Constructs the apartment complex

developer

Provides capital to finance the project

investor

Al is a new licensee who lives in a very agricultural community and wants to specialize in the sale of farm and ranch property. Is he required to have additional education to specialize in this area?

no

Manages the apartment complex for Alice

property manager

Annelisa is getting up in years and needs some help managing her rental properties.

property manger

How many years of experience must a licensed sales associate in Florida have before applying for a broker license?

two

Recommends street improvements to the city

urban planner

In Florida, real estate licensees may not fill in the blanks on a lease agreement that ____________.

Has a lease term longer than one year

Dan just listed a property two days ago and already has offers pouring in. It's a hot market and properties are moving quickly. Which of these options is the best strategy?

Have buyers submit their "highest and best" offers and then help his seller decide which offer is most appealing.

Larry applied for a real estate license, but then due to health issues he wasn't able to take the exam for just under 3 years. What does this mean for Larry?

He can be denied his license since it's been over two years.

Theo is a buyer who's contemplating a land contract. Why might he choose this route over traditional financing?

He doesn't qualify for traditional financing.

In order for misrepresentation to occur, what must happen to the person who relied upon it?

He must be harmed.

Miguel is updating a community center for a housing development in Florida. According to Florida's ADA Implementation Act, which of these modifications must he make?

He must include ramps.

Chester is moving on up! He and his wife are ready to sell their condo and purchase a new place. Chester is a real estate licensee and will list the property himself. What must Chester disclose to prospective buyers?

He owns the property.

Chaz represents the buyer in a transaction that has just closed. How will he typically be paid?

His brokerage will receive a commission check from closing; his broker will compensate Chaz according to the terms of their agreement.

What should a broker do when receiving a post-dated check as earnest money?

Hold the check in the office safe and immediately deposit it when it comes due.

Jason and Pat notice some brown spots on the ceiling of a home you have shown them. They ask if that means the roof is leaking.

Home inspector

Prior to the ______, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing.

Housing and Community Development Act of 1974

Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from the familial status discrimination?

Housing for Older Persons Act of 1995

Which of these situations represents the illegal practice of redlining?

Hunter, a mortgage broker, refuses to underwrite mortgage applications from applicants who are buying in specific neighborhoods.

How could a home inspection help a buyer at closing?

Identifies any items needing replacement or repairs

When may a broker make a claim against the Florida Real Estate Recovery fund?

If the broker had complied with an EDO and a judgment were found against them.

______ describes a unique characteristic of real property (differentiating it from other asset classes). Because of it, location plays a key role in value.

Immobility

Under what circumstances should real estate licensees advise buyers to have homes tested for radon?

In all circumstances, regardless of location

Why would an investor purchase a tax certificate for a property?

In order to earn interest on the amount due.

How are closings typically conducted?

In person or through escrow

The Druid Hills neighborhood sits firmly within a single-family residential zoning area. Most of the lots are one-third of an acre or larger. A 20-acre parcel on the edge of the neighborhood sold recently. The buyer wants to build condominium flats since multi-family housing is in short supply in the area. The town is considering rezoning that parcel to allow this development because the developer plans to also include a public park and a walking trail. What kind of zoning is this?

Incentive zoning

Which approach to value is typically used for investment property of two- to four-family units?

Income approach

Which one of these would NOT be an element of comparison an appraiser would use when applying the sales comparison approach to a property valuation?

Income generated

Which of the following is not recommended during a downcycle?

Increase your advertising

Factories, warehouses, industrial districts

Industrial

Gretchen has earned her broker license but has decided to not conduct business in real estate just yet. She has placed her license in voluntary inactive status. Which classification best describes why she is not allowed to perform real estate services?

Ineffective

Which option is defined as the type of hearing that is held in front of the FREC as long as none of the facts of the complaint are disputed?

Informal

Which of these actions is a recommended (and in some states, required) method for protecting occupants of a home from carbon monoxide poisoning?

Install a carbon monoxide alarm

Mr. Schroeder installed built-in bookcases which he intended to remain as part of the home forever. This refers to which part of the "IRMA" acronym?

Intent of the parties placing the item on the property

The "IRMA" acronym helps identify the four tests of a fixture. The "I" stands for ______________.

Intention of the parties placing the property

Which of the following is a true statement about deducting interest on mortgages taken out in tax years between 2018 and 2025?

Interest on the first $750,000 of mortgage debt is deductible for married couples filing jointly or $375,000 for married couples filing separately.

Which of the following is considered unauthorized practice of law?

Interpreting the legal consequences of a client's actions

Which act prevents the fraudulent sale of property, sight unseen, through the regulation of land sales across state lines?

Interstate Land Sales Full Disclosure Act

Wilma died without a will. How will her heirs be determined?

Intestate succession

When government regulation causes a land owner's property to decrease in value, it's called ______.

Inverse condemnation

Kevin is having an appraisal performed on a piece of property he's interested in buying. He's especially interested in hearing about the estimated rate of return the property could pull. What type of value is he interested in?

Investment value

What type of value may consumers be interested in if they are looking for the potential rate of return?

Investment value

Which term best describes the transfer of land through eminent domain or condemnation?

Involuntary alienation

George failed to renew his real estate license before the expiration date. What status will George's license automatically change to?

Involuntary inactive

Jevon just learned that his employer's broker license has been suspended. What status will his own license become?

Involuntary inactive

Isabelle just took on a new listing, in which the owner is selling because a new freeway is being built right behind the house. The owner is concerned about the noise and other activity the freeway will bring, but doesn't want prospective buyers to know this. Which action best demonstrates good faith in this scenario?

Isabelle tells the owner that this is a material fact related to the property that must be disclosed to prospective buyers, or Isabelle will not take the listing.

What is a participation mortgage?

It allows the lender to participate in the project by investing funds and realizing a return.

What is particular about the duty of confidentiality owed by transaction brokers?

It is limited.

If Walter White enters into a contractual agreement with Jesse Pinkman to cook a certain amount of methamphetamine on a weekly basis and offers Jesse 50% of any profit they make, which of the following is true of this contract?

It is void because it is not for a lawful purpose.

Which of the following is a way that the Florida Timeshare Act protects consumers?

It legally gives them 10 calendar days to cancel their purchase contract.

What does income shelter mean?

It means that the income received is sheltered from taxation.

What must be done for a fee to be considered acceptable under RESPA?

It must be disclosed to the client.

What's inverse condemnation?

It occurs when government actions deprive a property owner of the value of the property without offering just compensation.

When property changes hands, the deed is recorded. There's a fee for recording, so why would anyone choose to pay this fee?

It puts the public on notice regarding ownership.

What characterizes a development of regional impact?

It substantially affects more than one county.

Which of the following, if true about a complaint, would deem it legally sufficient to warrant an investigation by the DBPR?

It violated any Florida statute, or any legally enacted DBPR or FREC rule.

Why might you not be able to accept tickets in exchange for referring business to a settlement service provider?

It would be considered a kickback.

What purpose does the promissory note serve?

It's a promise the buyer makes to the lender that the note will be repaid in full.

Which of the following statements is true about groundwater?

It's a source of drinking water.

Which of these statements is NOT true about a specific lien?

It's always involuntary.

In a title theory state, which of the following is a true statement?

It's generally much easier for a lender to foreclose on a property.

Betsy is buying a home from Joe. Joe's listing agent is Keri, and Betsy has no representation. Which of these statements is true about this transaction?

Joe is Keri's client, and Betsy is Keri's customer.

Siblings Julia and Gene are co-owners of a small retail building in which a tanning salon is currently operating. Gene really wants to leave his ownership interest to his son when he dies, but the way in which they own the property doesn't allow him to do so. What type of ownership do they have?

Joint tenancy

What type of foreclosure is commonly used when a mortgage is the security instrument?

Judicial

Which method best describes the foreclosure process in Florida?

Judicial

Your client, Eric, is interested in purchasing an industrial property to start a new business. You've recommended that soil, air, and water testing be done, but Eric is on a tight budget and doesn't feel these tests are necessary. What should you do?

Keep records of your recommendations and a written response from Eric.

Kevin listed his house with you but isn't offering a cooperating agent's commission. Ji-eun represents the buyer, Marta, and Marta's parents, Jean and Tom, are paying Ji-eun's commission. On which of these factors is your agency relationship based?

Kevin signed a listing agreement with you.

Which of the following is a licensee's responsibility when she suspects an environmental issue exists on a property?

Know when, where, and how to seek expert assistance regarding environmental issues.

If Lara is showing one of her listings to Trina, who is represented by Kevin, which of these statements is true?

Lara is not required to give any notice of non-representation to Trina.

Children and pregnant women are especially vulnerable to poisoning caused by what hazard?

Lead

Andrea, a commercial developer, is planning to build an apartment complex on a lot in Miami and is using the land as collateral for the loan. What type of mortgage is this?

Leasehold

Stan and Emile are arguing over their shared lot line, since Stan thinks that Emile planted a privet hedge on Stan's property. Stan filed a civil legal action against Emile. What will the court use to determine the actual lot line?

Legal descriptions of both properties

A mortgage is a legally binding document that creates a lien on a piece of property and gives the lender the right to foreclose on the property if the borrower defaults. Who or what is the mortgagee?

Lender

Who usually represents the lender at a closing?

Lender's attorney

The Perfect Home brokerage firm was found guilty of running deceptive ads. The Federal Trade Commission might require all of the following EXCEPT ______.

Letters of apology to all affected consumers

Borrowing money to finance an investment is known as what?

Leverage

Serious violations of the real estate license laws typically result in which disciplinary action or actions?

License suspension or revocation

Which of the following is a true statement about a Florida real estate licensee's duty to disclose?

Licensees owe all parties and customers the duty to disclose material facts relating to the value of the property.

When Ruby purchased her property, she agreed to allow it to be subject to foreclosure if she didn't pay her property taxes. What restriction is this an example of?

Lien

An adjustable rate mortgage has an initial interest rate of 5%. When the first interest rate adjustment date arrives, the rate can be adjusted a maximum of 1%. At all subsequent adjustment dates, the interest rate can be adjusted a maximum of 2%. The highest rate of interest that may be charged at any given time is 9%. What does the 9% rate represent?

Lifetime cap

Congratulations! The crowd funding worked. Now you can start manufacturing your own line of yoga clothing. But first, you need a location to do all of that sewing. Which building would you select?

Light manufacturing

What's the term for a title examination that searches title history going back fewer than 60 years?

Limited search

Real estate is NOT considered a ________ investment due to the fact that it may be more difficult to sell quickly without a loss of capital.

Liquid

Which valuation method estimates the proceeds that can be generated as a result of selling all assets and inventory and paying off short-term liabilities?

Liquidation analysis

The right to access ponds, lakes, oceans, and other stationary bodies of water is ______.

Littoral

Talking the consumer into refinancing over and over so a lender can charge fees is ______.

Loan flipping

Which of the following is deductible on an income tax return?

Loan origination fee

Which entity typically enforces the code restrictions and licensing and insurance requirements for contractors, thereby enforcing the building code?

Local building department

Daniel purchased a home in January of 2010 and then sold the property in October of 2014 for a gain of $5,500. What type of capital gain is this?

Long-term

Which type of legal description do courts prefer?

Lot and block

Anthony lives in a two-story apartment building. What type of building is it?

Low-rise

While hosting an open house, Liza speaks with prospective buyers. They're interested in the house, but think the listing price is a little high. They ask her what other incentives they could include in their offer to get the seller to come down on their price. If Liza helps them, what duty may she be breaching?

Loyalty

What are some roles and responsibilities of your sponsoring broker in Florida?

Maintains your license in the broker's office, supervises and trains you, and is responsible for your actions for at least the first two years of your career.