Seans florida exam study guide 2023 march :)
Under the Federal Fair Housing Law, which of the following is considered discriminatory advertising?
"Catholics preferred."
Utilizing the 28/36 rule, if Rebbecas gross income is $4,500 a month, she would need to spend less than ______ in housing costs a month to qualify for most loans
$1,260
Which qualifying ratio applies to conventional mortgage loans?
36% TOR
What is the measurement of a section
A section is one mile square and contains one square mile
How is the purchase price entered on the Closing Disclosure?
Credit to seller; debit to buyer
A single agent broker recieved an offer on a listed property at the sellers price and terms. Before informing the seller the broker recieved a higher offer . The broker submitted only the first offer and the seller his principle accepted it THE BROKER
Has Violated His Fiduciary Duty To His Principle
The bundle of legal rights associated with real property ownership does NOT include the right of
INTENT
What type of value does an appraiser most commonly estimate
Market
In relation to section 1 of a township. Section 12 is due
SOUTH
The brokerage relationship disclosure requirements in Chapter 475 apply to which transaction?
Sale of three vacant lots zoned for single-family use
Which information must be disclosed to all propective buyers?
The home is situated in a flood prone area
Which action does NOT terminate a single agent brokerage relationship with the seller?
Withdrawal of an offer to purchase
Usually, the appraiser is hired by the:
lender
The loan-to-value ratio is 80%. A buyer wants to acquire a property with a purchase price of $116,000. Calculate the required down payment.
$23,200 The answer is $23,200. The required down payment is $23,200: $116,000 × .2 = $23,200.
A business owner has a five-year variable lease. The first year of the lease calls for rent of $25.50 per square foot based on a beginning index of 188. The index increases to 195 at the beginning of the second year. What is the new rental rate per square foot?
$26.45
What amount of a broker's own personal funds may the broker place in the property management escrow account?
$5,000
Under Florida Statute 455, which penalty may be imposed on an individual for unlicensed practice of real estate?
$5,000 fine per count
What is the maximum finder's fee that may be paid in the form of a credit toward rent paid to the tenant for referring a person to the management company if that person later becomes a tenant of the complex?
$50
Three claimants are requesting relief from the Real Estate Recovery Fund. All three claimants were named in a single judgment (the same real estate transaction). What is the maximum payment from the Recovery Fund for this claim?
$50,000
The maximum amount that may be collected from the Real Estate Recovery Fund as a result of a single real estate transaction is
$50,000.
A buyer was defrauded by a real estate licensee. The buyer is awarded a judgment against the licensee in the amount of $7,000 damages plus $2,300 for attorney's fees and court costs. The buyer has been unable to collect on the judgment, but it is determined that the buyer may seek reimbursement from the Real Estate Recovery Fund. How much can the buyer recover from the Fund?
$7,000
A couple tours several model homes in a new subdivision. The couple decides to purchase one of the available lots and have the builder construct one of the model floor plans on the lot. Which type of construction is this?
. Tract homes are a type of speculative building
How many acres are in a parcel described as the SW¼ of the NE¼ of the SE¼?
10 The answer is 10. 640 ÷ 4 ÷ 4 ÷ 4 = 10 acres.
A broker asked the Commission to issue an escrow disbursement order (EDO) regarding disputed escrowed funds. Before the EDO was issued, the escrow dispute was settled between the parties. How long does the broker have to notify the FREC that the matter has been resolved?
10 business days
A brokerage who changes business address must notify the commision of the address change within how many days?
10 days
Housing for older persons is exempt from the familial status protection under the Fair Housing Act provided what percentage of the units are occupied by one or more persons 62 years of age or older?
100%
A prospective tenant purchased a rental list from a broker and then rented a duplex that the list said included all utilities. The tenant discovered that only water was included in the rent and notified the broker within the legislated time limit. The tenant is entitled to
100% of the fee paid
Which section is located directly south of section 1?
12
How many acres are in a parcel described as the SW¼ of the NE¼ and the SE¼ of the S½?
120
A developer who builds and sells new condominium units must allow buyers the opportunity to cancel the purchase agreement within how many days of signing the contract?
15
How many days' notice must be given to terminate a month-to-month tenancy?
15
If a landlord does not intend to make a claim on a tenant's security deposit, how long does the landlord have to return the deposit?
15 days
Florida contract law requires that a tenant's security deposit must be returned by the landlord within how many days?
15 to 60 Days
What is the usury rate in florida
15% annual intrest, 25% for over $500,000
The Florida Real Estate Commission was first created in what year?
1925
Within what time after passing the end of course exam must a sales assocaite applicant pass the state license exam
2 years
The income generated by a property is 20,000 and the rate of return is 10% what is the value of the property?
200,000
A developer purchased three oceanfront lots, each measuring 75 by 110 feet, for $20 per square foot. The developer later sold the lots for $200,000 each. What was the developer's percentage of profit on the sale of the three lots? (Round to nearest percentage.)
21%
Within what period of time must the seller be given a copy of a written listing agreement?
24 hours
An individual on active duty with the U.S. Navy who is not engaged in real estate brokerage activity in the private sector for profit has what period of time after discharge from active duty to renew a real estate license?
24 months
What is the required experience to become a real estate broker in florida
24 months of experience in the proceding 5 years
During the listing agreement a commission of 6% is established. The house is sold for $250,000. What is the commission?
250,000 x .6. = 150,000.00
A tenant paid rent of $450 on the first of the month when due. The property sold on March 12th and the day of closing belonged to the seller. What is the amount of the rent proration, and how should it be entered on the closing statement?
275.81 ( debit seller ,credit buyer)
A licensee respondent may challenge the final order within how many days
30 days
A licensee-respondent may challenge the final order within how many days?
30 days
Within what period of time must landlords of five or more units notify tenants in writing of the method used to hold security deposits
30 days noticed must indicate the name and address of the depository where the funds are held or that the landlord has posted a bond
Which set of qualifying ratios applies to FHA mortgage loans?
31% HER; 43% TOR
A 40,000 mortgage for a term of 20 years was originated at an 8% intrest rate , with a monthly mortgage payments of 334.58. Question. What is the principle balance remaining after the second monthly payment
39,863
What is the tax levy of a non -homestead property that is assessed at 36,000 with a tax rate of 11 mills?
396$. 36,000 x 0.11=. 396$
What defines a resident of florida who has been in florida for what period of time
4 months
How many hours of post-license education are required for the initial renewal of a Florida Sales Associate license?
45 hours
There are how many square feet in a acre
45,560. Memory aid. 4 senior citizens driving 35 in a 60 zone. 43560
How much personal money may a broker place in a property management escrow account?
5,000$
Typically a warranty deed contains how many covenants?
5-6
Elgible homestead owners may transfer up to what amount of their save our homes (SOH) benefit from their previous homestead to a new homestead
500,000$.
How many hours of post-license education are required for the initial renewal of a Florida Broker license?
60 hours
How many acres are in a section?
640 acres = one section = one square mile
How many total members are there in the Florida Real Estate Commission?
7 members
What is the percentage passing score on the Florida-specific real estate law license exam given to applicants who apply for a Florida license through mutual recognition?
75
What is the percentage passing score for florida real estate exam
75% or higher
A home was purchased with a down payment of $50,000 and a loan of $200,000 at 6% interest for 20 years. Monthly payments are $1,432.86. What is the loan-to-value ratio?
80% The answer is 80%. $50,000 down payment + $200,000 loan = $250,000 purchase price; $200,000 ÷ $250,000 = .80
For there to be a valid right to purchase or terminate , an option contract must contain
A dollar consideration
A sales associate who is employed by an owner-developer who own properties in the name of various entities may be issued
A group license
Gratuities for referring prospects to a broker are legal if paid to :
A licensed broker
Economic Obsolescence
A loss in value due to factors outside the subject property, flight pattern above your house
Which of the following is true about mortgage financing in florida
A mortgage is considered a lein on the property
Which individuals must hold an active real estate license
A person who sells time share periods for customer
What authority originates from the U.S. Constitution and relates to protection of health and welfare of citzens at local levels
A police power
An example of an ad valorem tax is
A property tax
An individual who typically finds a tenant for property and collexts a fee is reffeded to as
A rental agent
Elderly homeowners can sometimes tap the equity in their home without having to make monthly payments by using :
A reverse mortgage
Requirments of a valid deed do not include
A signature of competent grantee
A developer who wants to develop a new subdivision must submit
A subdivision plat map to the planning commission
A town ship is how many miles square ? And contain how many square miles
A town ship is 6 miles square and contain 36 square miles
Which of the following statements is TRUE about trusts and trustees?
A trustee can be an individual or a financial institution such as a bank.
What is a no brokerage statement?
A written disclosure given by a real estate licensee to a prospective buyer or seller informing they are not acting as their agent or representing there intrests
Which term best describes a property owner who is NOT a resident of the property?
Absentee owner
Which brokerage relationship duty applies to all three types of brokerage relationships?
Accounting for all funds
Which term describes the process of land buildup from water-borne rock, sand, and soil?
Accretion
Which element is NOT required of a valid real estate contract?
Acknowledgment
A person must hold an active real estate license if for express or implied compensation the person may
Adverise a list of available rental properties
Which type of transaction requires that the parties to the transaction receive brokerage relationship disclosures?
Agricultural property of 10 or fewer acres
Which of the following states have a reciprocity agreement with florida in reguards of real estate
Alabama and rhode island
Under the terms in a mortgage the lender must be paid in full if the property is sold to another person....this is known as
Alienation clause
Under the terms in a mortgage, the lender must be paid in full if the property is sold to another person. This is known as the
Alienation clause
Which statement is false regarding a corporation for profit that is doing business as a real estate broker?
All stockholders must be registered with the FREC as inactive brokers.
A buyer and seller entered into a contract, they negotiated the sale of the side lot at the same time as the transfer of the home. What is the second document called?
An addendum
Johnny is purchasing a house and does not want to purchase all of the furniture that is being left behind. He signs the contract on Tuesday, and on Thursday changes his mind about the furniture. He calls his agent, and they add the furniture to the contract. What is this an example of?
An addendum includes any additional charges
Another term for a formal complaint is
An adminstrative complaint
A buyer of a home was not informed that his house was on a septic tank system. The buyer has the right to:
An agent must reveal all property facts and defects known at the point of sale. A failure to disclose this information may allow the buyer to rescind the contract. Rescind from contract
Which of the following assignments would be acceptable for a Florida real estate licensee who does not represent themselves as an appraiser, and follows the Uniform Standards of Professional Appraisal Practice (USPAP)?
An assignment to give an estimate of value for an attorney in a divorce case.
Which element is not essential in a valid real estate contract
An earnest money deposit
A buyer negotiates a contract to purchase property, takes possession and pays the property purchase price in installments, but does not receive the legal title until the full purchase price has been paid. What is this agreement called?
An installment contract, contract for deed, or land contract
Which of the following would not be a typical use of a physiographic study in preparing a comprehensive city plan?
Anticipating the future need for new or widened roads.
What is the position of a person who is certified as a broker , but yet works under supervision of a managing broker
Associate broker
Which housing is exempt from the familial status protection under the Fair Housing Act?
At least 80% of the units are occupied by one or more persons 55 years of age or older.
Which information must NOT be included in a listing agreement?
Automatic renewal clause
Which variable does not influence demand
Availability of construction loans
Which document most closely resembles a deed?
Bill of Sale
Upon payment and delivery of the deed, the seller should also deliver what? Can be quite complex or quite simple—depending on the type of real estate transaction.
Bill of sale
When real estate agents alert the members of a neighborhood that it is "changing" and that they should sell their property. This is an example of what?
Blockbusting, also sometimes referred to as "panic selling,
If a bilateral contract is signed
Both parties are legally obligated to perform
Which valuation assignment is exempt from USPAP requirements?
Broker's price opinion prepared for a lender concerning a short sale
An applicant has been issued a broker's license. The broker licensee does not want to own her own real estate brokerage business. The licensee went to work selling real estate under another broker. She is BEST described as a
Brokers associate
Which statement is TRUE regarding the Florida Building Energy-Efficiency Rating Act?
Buyers must be given an information brochure notifying the buyer of the right to conduct an energy-efficiency rating on the structure.
Restrictive covenants, are also known as
CCR's Conditions, covenants and restrictions
Which of the following results from dividing the propertys net operating income (NOI) by its current market value
Capitlization rate
Which accounting term refers to the total amount of money generated from an investment after the expenses are paid?
Cash flow
What is the purpose of the property tax disclosure?
Caution buyers that they cannot rely on the seller's property tax history as an indication of the buyer's future property tax bill
Which individual is NOT exempt from holding a Florida real estate license?
Certified public accountant (CPA) who is employed by a real estate corporation and receives a salary plus bonuses based on real estate transactions
Adminstrative rules of florida real estate xommisions are found in
Chapter 61J2
The administrative rules of the Florida Real Estate Commission are found in
Chapter 61J2.
What is a written supplement or amendment to an existing will such as one affecting the transfer of real estate upon death?
Codicil. In plain terms it's an addendum of any kind to a will.
Title III of the Americans with Disabilities Act (ADA) impacts which type of property?
Commercial and public accommodations
As a real estate agent with no other special licensing you are allowed to perform
Comparable market analysis
A buyer has breached a real estate sale contract. The seller wants to recover damages in excess of the earnest money deposit. Which remedy for breach should the seller use?
Compensatory damages
Which task must a sales associate complete before the expiration of the initial sales associate license?
Complete the 45-hour post-license education course
If a leased premises becomes uninhabitable deliberately in an attempt to remove the tenant. What is this action called?
Constructive eviction
Which entity may NOT be registered as a real estate brokerage?
Corporation sole
Which answer includes 3 actual types of business structures? Choose the best answer.
Corporation, Sole Proprietorship, Limited Liability Company
Which criteria is NOT used to determine whether something is real or personal property?
Cost of the item
When a buyer makes an offer and a seller changes a few of the terms before he signs and returns it, that is a
Counter offer
A seller receives an offer from a buyer to purchase a property for $300,000. The seller changes the price to $320,000 and submits it to the buyer. Which term describes the price change?
Counteroffer
The IRS requires that an independent contractor be :
Covered by unemployment insurance
A title theory state is one in which a mortgage
Creates a tenancy in common until the loan is paid
How are unpaid property taxes entered on the Closing Disclosure?
Credit to buyer; debit to seller
A buyer has agreed to purchase the seller's home. The contract calls for a deposit of $10,000, to be placed in the broker's escrow account. The sales associate forgets to collect the deposit. The sale falls through and the seller is claiming the uncollected deposit as liquidated damages. What will the sales associate likely be charged with?
Culpable negligence
Which of the following might be indicated if a neighborhood appears to have an abundance of "For Sale" signs and an unusually high number of rentals available?
Decline in the neighborhood may be indicated
Which action can result in the foreclosure of a homesteaded property?
Delinquent property taxes on the homesteaded property
what must a sales associate do upon receiving an earnest money deposit?
Deliver the funds to his or her broker or owner-developer
It said that a deed transfer title when the deed is
Delivered to and acepted by the grantee
From which source can a broker obtain a copy of the equal housing opportunity poster for a new real estate office?
Department of Housing and Urban Development
What is the agency responsible for the enforcement of the Fair Housing Act?
Department of Housing and Urban Development
What does the bundle of rights in real property include
Diposition,use, exclusion
Which goverment entity must be informed when the FREC takes disciplinary action againest real estate licensee
Division of florida condominiums, timeshares, mobile homes
A broker's listing on a house expired. The next day it was listed with another broker and offered in the MLS. A week later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that:
Don't overthink this. He is no longer the listing agent, he MUST inform the caller that information. Anything else would be deemed unethical and potentially illegal.
Most states, including Florida have abolished which of the following?
Dower and Curtesy Law
During a standard residential transaction, verifying ingress and egress rights is an essential part of the:
Due diligence is the process of examining the details of a transaction to make sure it's legal
Which clause is included in a mortgage to prevent a subsequent buyer from assuming an existing mortgage loan?
Due on sale clause
What is the maximum number of consecutive years a commissioner may serve on the Florida Real Estate Commission?
Eight
If jurisdiction requires private property for public use, what is the power they would be using
Eminent domain
Which restriction is always a public restriction?
Eminent domain
Which individual must be state licensed as a mortgage loan originator?
Employee who works as a loan originator for a mortgage brokerage company that is not federally regulated
If a principle terminates the listing agreement during the listing period , the broker may be able to do any of the following EXCEPT
Encourage termination of any contracts in process
A provision in all mortgages that allows the delinquent mortgagor to avoid foreclosure by paying all the back mortgage payments, late penalties, and costs of collection up until the time of foreclosure sale is the
Equity of redemption
A single person dies without a will. After a period of time, the State of Florida obtained title to the property of the deceased person. What power entitled the state government to acquire the deceased person's property?
Escheat
Title to real property does NOT convey in which type of estate?
Estate for years
During your time as agent you will run into many different types of people from areas across the world. Closing is called many names depending on which region of the U.S you are from. Which of the following is NOT a legal name for closing?
Exchange and transfer
Which of the follow ads would be considered a violation of the fair housing act?
Execlusive community for christians residents only
he Commission's authority to regulate and enforce the license law is which type of power?
Executive
Which brokerage relationship duty applies only to a transaction broker relationship?
Exercise limited confidentiality
When the parties to a contract state the terms of the contract and show their intentions in words they orally or in writing say what type of contract classification has been created
Express
A case is heard before an administrative law judge in a formal hearing. In such cases, who renders the final order?
FREC (with members who served on the probable-cause panel excused)
Brittany is a licensed agent and assists both the buyer and the seller to negotiate a transaction , not representing either of them . Which of the following best describes her position?
Facilitator
Which entity does NOT help enforce the Fair Housing Act?
Fannie Mae
What is the highest form of real estate ownership that is recognized by law, in which the owner can enjoy the property to its fullest extent?
Fee simple absolute
If a request for a property tax adjustment is denied, what is the property owner's next step?
File a petition with the Value Adjustment Board
For what period of time must a broker maintain business records, including escrow account records, and make them available to audit by the DBPR?
Five years, regardless of whether trust (escrow) funds were collected
Depreciation is classified as curable if it can be
Fixed econolically
Who funds the Florida Real Estate Recovery Fund?
Florida Real Estate Agents
A real estate broker does NOT have to report to the FREC conflicting demands regarding escrowed property if the escrowed funds are maintained by which method?
Florida attorney's trust account
The sales associate who worked with the buyers in the transaction sets up an appointment with the buyers to visit them six weeks after the sale. The sales associate routinely makes a visit after the title closing to thank the buyers for choosing her real estate company and to extend an offer to help with the buyers' future real estate needs. What type of service is the sales associate providing?
Follow-up is what a sales associate does for buyers and sellers after the sale and can result in future referrals and word-of-mouth advertising.
The Florida Real Estate Commission established and maintains a Real Estate Recovery Fund. What is one of the primary purposes of the fund?
For people to get recourse of uncollected judgement against licensees.
A property is rectangular and measures 500 ft x. 640 ft. How many acres does it contain?
Formula Length x Width = Area 500x 640=320,000 Convert to acres 320,000 sq fr divided by 43,560 sq ft per acre =7.35 acres
Cathy purchased a building valued at 295,000 estimated 25 year useful life. Cathy owns the building for 6 years. using straight line depreciation find the depreciated value of the building.
Formula. 295,000 divided by 25 x 6= 70,800 ........................cost divided by expected life x years owned = depreciation 295,000 - 70,800=. 224,200. Is the answer
How long are terms for members of the Florida Real Estate Commission?
Four Years
For licensing purposes, a resident of Florida is defined as a person who has resided in Florida for what period of time?
Four months
A licensee makes a statement that is material to the transaction as though it were a fact when the licensee does not know whether the statement is true or false, and the buyer relies on the statement. As a result of the statement made by the licensee, the buyer suffers damages. This situation constitutes
Fraud
A broker license was involuntary inactive for 2 years and 1 month to operate again as an active licenseee the broker must complete
Frec Course I and pass the sales associates licensing exam
Which brokerage relationship duty applies only to a single agent relationship?
Full disclosure
A transaction broker does NOT have which duty
Full fiduciary duties to both the buyer and the seller
Which type of depreciation is associated with inefficient architectural design?
Functional obsolescence
Which secondary market partcipant is a guarantor of goverment insured and goverment guarenteed loans
Ginnie mae
Which action is not required under TILA-RESPA integrated disclosure rule (TRID)
Give mortgage applicant a list of competing lenders so they can comparison and shop for the best rate
What term is used to describe fractional pieces of land less than a full quarter section located along the banks of lakes and streams?
Government lot
A seller transfers title to a buyer with a general warranty deed. In which clause of the deed does the seller define the quality of ownership interest conveyed to the buyer?
Habendum
The real estate contract clause that almost always begins with the words "to have and to hold."
Habendum clause
The Fair Housing Amendments Act of 1988 added which protected class to the Fair Housing Act?
Handicap status
John fitzpatrick holds 800$ in security deposits from the six tenants in his apartment building when he sells the building to helen baker. The tenant can expect a return of their security deposits from:
Helen upon termination of the lease
If any amount is paid out of the Florida Real Estate Recovery Fund what happens to the licensee?
His/her license is suspended and they must repay the settlement amount in full, plus interest, before the license can be reinstated.
A senior housing development may refuse to rent to families if what?
If all units are occupied by people over the age of 62.
Dual agency in florida is
Illegal
Which power is NOT given to the Florida Real Estate Commission?
Imposing jail sentences
Whixh of the following would mostnlikely be considered incurable depreciation
Improvements beyond those of the other homes in area
A bilateral contract is one in which
In plain terms, a bilateral contract is an agreement between two or more parties. Most business and personal contracts fall into this category.
A property has a value of 240,000 and a net operating income of 30,000. What is the rate of capitalization?
Income divided by value = cap rate 30,000 divided by 240,000=0.125 or 12.5% Income 30,000 Value 240,000 Cap rate =. 12.5%
Which financial report indicated the results of business operations over a specific period of time
Income statement
Which financial report indicates the results of business operations over a specific period of time?
Income statement
In Florida, how long may a license remain in voluntary inactive status?
Indefinitely
Which of the following is a physical characteristic of real estate?
Indestructibility
Which violation is a third-degree felony?
Individual performs real estate services for compensation without a real estate license
Which statement does NOT describe a planned until development
Industrial parks are a welcomed off shoot of the PUD concept
Which statement is true regarding the monthly payment on a 30 year fully Amortized loan
Initially intrest is the larger portion of the payment
Which of the following statements is NOT true about radon?
It is a liquid released in the soil
What is the purpose of a receivership clause in a mortgage?
It is used to protect the value of property during the foreclosure process.
In florida real property is assessed on Jan 1st of each year and property taxes become a lien on the propery on
January 1st the same year
A seller named Joan gave a buyer named Bob an option for thirty days to purchase her property for a consideration of $750. There is no anti-assignment clause in the contract. Which of the following statements is NOT true?
Joan can force Bob to purchase the property.
Which court case made clear that material defects affecting the value of residential property must be disclosed to prospective buyers?
Johnson v. Davis
Which estate includes the right of survivorship?
Joint tenancy
Which term refers to the belief that the goverment should NOT interfere in private business affairs
Laissez-faire
Under which circumstance is a landlord relieved from the requirement to place security deposits into a special rental account?
Landlord posts a surety bond with the clerk of the circuit court.
Which individual must hold a Florida real estate license?
Lawyer who receives a share of the commission for each transaction resulting from the referral of a client to a local brokerage office
Holding earnest money without depositing it, is what?
Legal with written authority
Whena consumer files a complaint against a real estate licensee thatncontains facts indicating that a violation of FREC Rules has occured. The complaint is said to be
Legally sufficient
Which type of title insurance policy is transferable?
Lender
Mr peterson dies intestate, he had a surviving spouse and two children, what is the title that mrs peterson now has in homestead?
Life estate
The duties of a real estate licensee owed to a buyer or a seller who engages the real estate licensee as a single agent DO NOT INCLUDE
Limited Confidentialty unless waived in writing by a party
A sales associate may hold which position?
Limited partner in a real estate brokerage limited partnership
A contract specifies the amount of money that must be paid if the buyer defaults. Which remedy for breach does this describe?
Liquidated damages
Which type of appraisal technique is unique to business appraisal?
Liquidation analysis
The owner of a hardware store filed for bankruptcy and the real estate is up for sale. The money that the property will bring at auction is best described as which type of value
Liquidation value
Individual who solict mortgage loans and accept applications for mortgage loans and negociate the terms of new mortgage loans on behalf of a borrower are called mortgage
Loan orignators
Which method of legal description is used in subdivisions and is contained in recorded plat maps?
Lot and block
When do real estate licenses expire in Florida?
March 31st or September 30th every other year. Or jan 1st every year
There are three different main approaches that appraisers use while they make an appraisal. What are they?
Market data approach, cost approach, income approach
What is the result of multiplying the gross rent multiplier by the monthly rent?
Market value
Local zoning ordinances often regulate all of the following except
Market value is never directly determined by the government.
Tenancy by the entirety is a special form of ownership available only to :
Married couples
nolo contendere
Means No Contest latin terms means (i do not wish to contest)
When a furnishing company creates materials for the construction of a house and is subsequently not paid, it may file a(n):
Mechanic's lien
Which settlement procedure involves a negotiated settlement between the disputing parties?
Mediation
A comparable property has one or more bedrooms (8,000$) and is on a slighty larger lot (2,000$) than the subject property. The comparative market analysis a net adjustment of
Minus 10,000$ to the comparable property
Which entity is a primary mortgage lender that does NOT accept demand deposits
Mortgage lenders
When you borrow money to buy real estate, you give the lender a _____ against the property.
Mortgage lien
The lender in a traditional mortgage loan transaction is known as what?
Mortgagee
A tenant signed a 10-year lease requiring a monthly base rent of $1,900, plus 2% of all monthly gross sales volume over $95,000. The tenant also must pay all property taxes, insurance, and other costs normally considered property owner's costs. This is a
NET LEASE
A real estate brokerage company is a transaction broker for a buyer the buyer want to purchase a new home so the sales associate takes him to three model centers listed by three competing real estate companies. The sales associate must give a written brokerage relationship notice to
NO ONE
The formula to calculate the overall capitalization rate is
NOI divided by value (or price).
Is Florida a Community Property state?
No
A seller is asked whether any known plumbing defects exist on her property. She replies that to the best of her knowledge there are no plumbing defects. However, unknown to her the pipes are corroded and due for replacement. Is the seller in violation of her disclosure responsibilities?
No, since she is unaware of the plumbing issue, she is not liable for failure to disclose material defects.
Is replacement cost and reproduction cost the same thing and if it is different, what is the difference?
No, the reproduction cost process looks at the cost of creating an exact replica, while with the replacement cost process, it looks at the cost of replacing an insured property with one of similar functionality.
What is the limit for security deposits for leasing in florida
None
Which insurance policies can a real estate licensee offer to the public without additional state licensing?
None
Calculate the number of acres in a property with the followijg legal description SW 1/4. Of the SW 1\4 of the SE 1/4 and the E 1/2 of the E 1/2 of the SW 1/4 of sec 23
Note: If you see tract = section ; 1 section=640 640 divided by denominators (either 2 or 4 only) Tract 1 640/4/4/4= 10 acres Tract 2. 640 div by 2 div 2 divide 4=40 acres 10 acres + 40 acres= total acres
The DBPR issue which penalty for an intial offense a minor violation by a license
Notice of Noncompliance
A warning for an initial offense that allows a licensee to correct the minor infraction without consequence is known as a(n)
Notice of noncompliance. 15 days to correct the minor infraction without consequence
A broker who has a good-faith doubt regarding who is entitled to escrow funds should take which action?
Notify the FREC in writing of the good-faith doubt within 15 business days.
A buyer agrees to purchase a property with an existing mortgage lien. In which situation is the new buyer the only party responsible for the debt?
Novation
Steering
Occurs when a real estate agent or broker unlawfully influences or restricts housing choices based on protected characteristics buyers have the right to their desired property based on there prefered budget
How many Florida Real Estate Commission members may be licensed as real estate sales associates?
One
Purchase agreements come big and small, and are a crucial aspect of real estate contract law. Which of the following would be an example of a purchase agreement?
Ordering something online and checking a box that says terms and conditions.
A buyer who obtains a mortgage loan that covers the purchase of a condominium plus furniture, appliances, and other personal property, such as towels and kitchen utensils, has a
Package mortgage
In deed the warrenty of quiet enjoyment pertains to
Peaceful possession undisturbed by others claim of title
Which type of lease is based on income from the tenant business?
Percentage
Which property is exempt from property taxes?
Place of worship
A sales associate applicant must comply with wich requirment
Possess a U.S. Social security number
The Bundle of Rights include:
Possession, control, exclusion, enjoyment, disposition
All of the following are responsibilities of a property manager, EXCEPT:
Preparing leases.
On Sunday at an open house, a sales associate receives two offers on a home listed for $300,000. One offer is for $250,000 cash at closing. The second offer is for $295,000 contingent upon the buyer securing a mortgage for 90% of the sale price. What action should the sales associate take?
Present both offers, explaining the details of each contract to the seller.
Using income capitalization, what is the result of holding the capitalization rate constant and increasing the net operating income?
Present value increases
Which government office assigns parcel ID numbers to land within a tax district?
Property appraiser
Which statement is FALSE regarding property taxes?
Property taxes for the previous year are due on November 1.
A broker would not be violating a law for making the statement "this is the most beautiful view in the state" because it is considered harmless
Puffing
The broker followed the directions issued in an escrow disbursement order that became the subject of a lawsuit. The consumer-plaintiff obtained a judgment against the licensed real estate broker. It is determined that the consumer is eligible to seek reimbursement from the Real Estate Recovery Fund. The fund may NOT reimburse which expense?
Punitive damages
The broker followed the directions issued in an escrow disbursement order that became the subject of a lawsuit. The consumer-plaintiff obtained a judgment against the licensed real estate broker. It is determined that the consumer is eligible to seek reimbursement from the Recovery Fund. The Fund may NOT reimburse which expense?
Punitive damages
Which item is entered on the Closing Disclosure as a credit to the seller and as a debit to the buyer
Purchase price. The total purchase price and any items the seller prepaid are credited to the seller:)
A buyer or seller must be given a brokerage relationship disclosure for which transaction
Purchaser of a single-family home working with a single agent buyer's broker
Which type of risk is also called inflation risk?
Purchasing-power risk
The FREC's power to determine license law violations is an exercise of which type of power?
Quasi-judicial
The type of deed that provides the least protection is
Quitclaim
Which range is farthest from the intersection of the principal meridian and the base line?
R22W
Which term may only be used by members affiliated with the NAR?
REALTOR®
Which partial description describes a vertical strip of land six miles wide that touches where the principal meridian and base line intersect?
Range 1 East
What type of license or other credential is required for an individual to engage in the sale, purchase, or lease of businesses for others?
Real estate license
Which indvidual is exempt from the continuing education requirment
Real estate licensee who is also a florida-licensed attorney. (Active members in good standing with the florida bar are exempt from continuing education req for real estate licensees
What of the following is required by the Americans with Disabilities Act(ADA)?
Reasonable accommodations must be provided to people with disabilities.
Which description BEST fits if one were to shade in sections 14, 15, 16, and 17 of a township?
Rectangle
Which of the following real estate contract clauses is typically seen in blanket mortgages and allows for the freeing of all or part of a property from a claim through a proportional or full amount of the mortgage being paid off?
Release clause
A man owns a condominium for his lifetime. Upon his death, the property will convey to his sister. What type of estate does the sister hold during the man's lifetime?
Remainder estate
A man owns a farm in fee simple. He deeds the farm to a friend until the friend dies, at which time a woman will acquire a fee simple title to the farm. The woman's interest in the farm is a
Remainder estate
Which type of cost is calculated using similar, but NOT identical, building materials, resulting in equal utility as compared with the subject property?
Replacement
Which item is NOT a deductible expense for an income-producing property?
Reserve for replacement
Which penalty is NOT an administrative penalty that may be imposed by the FREC?
Resituion to the injured party
Which penalty is NOT an administrative penalty that may be imposed by the FREC?
Restitution to the injured party
This act, allowed greater control for the EPA to control contaminant levels, take legal action against public water auth. for violations, and require periodic water testing and notification to state authority and homeowners if contaminated.
SDWA. Safe drinking water act
A couple has just made the final mortgage payment on their home. What document must the mortgagee file on their behalf?
Satisfaction of mortgage
What does Florida's homeowner associations law require of sellers who own property subject to a mandatory homeowners association?
Sellers must provide buyers with a disclosure summary regarding the association.
Jimmy is acting as a transaction broker in the sale of a condo,the owner states he is about to move out from state and would take 20,000 less then the listed price.Jimmy tells that to potential buyer to close the sale in case jimmy should.
Should not have to disclose the seller would take less money
A husband and wife have title to a property in both names. Which action is required to convey the title to the property?
Signed by the husband and wife
Which offence does NOT have to be self reported to the FREC
Small claims court case over commission dispute
Which offense does NOT have to be self-reported to the FREC?
Small claims court case over commission dispute
A line pointed in the direction opposite North 20 degrees East is
South 20 degrees West. The answer is South 20 degrees West. The line opposite North 20 degrees East is South 20 degrees West. The number of degrees does not change, only the compass directions.
In which type of deed does the grantor warrant to defend the title solely against acts by the grantor or the grantor's representative?
Special warranty
What does the term "farming" refer to in real estate?
Specializing in one geographic area
Which remedy for breach of contract asks the courts to force the other party to proceed as the contract states?
Specific performance
Who dictates trust accounts and when to deposit earnest money or other trust funds?
State Specific License Law
An individual who received a four-year degree in real estate from a state university is NOT exempt from which license requirement?
State license exam
an individual who received a 4 year degree in real estate from a state university is NOT exempt from which license req
State license exam
Why is an oral lease for two years not generally enforceable in law?
Statute of Frauds
A woman has six months remaining on her lease. She assigns two of the remaining months to another person to use the property while she is on vacation in Europe. What is this called?
Sublease
Which principle states that an informed purchaser will NOT pay more for real estate than the cost of acquiring an equally desirable alternative property?
Substitution
Susan Walters is a licensed real estate sales associate. Her sales associate license was issued as Susan Walters (LLC). Which statement is TRUE regarding this situation?
Susan has formed a limited liability company (LLC) for income tax purposes only and is employed by and registered under either a licensed real estate broker or an owner-developer.
If you have located a township numbered T2S, R4E, the township due south of that township is
T3S, R4E.
A tenant rented an apartment, signing a 12-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant have?
Tenancy at will
Property held as a tenancy by the entireties becomes which type of estate in the event of divorce?
Tenancy in common
What kind of ownership does a unit owner of a condo in reguards to common areas
Tenancy in common
Who must receive the lead-based paint disclosure?
Tenants and buyers of all residential property built before 1978
Three individuals want to develop and sell a parcel of land. Each of the individuals has a spouse and children. The three individuals want to take title to the property in such a way that an owner's family would inherit part of the property if that property owner died. How should the individuals take title to the land?
Tenants in common
Sales associate terry stoufer may have which information entered on his license, if applicable
Terry Stoufer, LLC
Which statement is TRUE regarding a racial discrimination case involving commercial real estate?
The Civil Rights Act of 1866, which is enforceable today, makes racial discrimination illegal in residential and nonresidential transactions.
Which statement is TRUE regarding VA mortgage loans?
The VA funding fee may be added to the loan amount and financed over the life of the loan.
In real estate, alienation is best described as:
The act of transferring title, ownership, an estate, or an interest in real estate from one party to another.
A warehouse measures 825 feet by 600 feet and rents for $130,000 a month. What is the rent per square foot per month?
The answer is $.26. The solution is 825 feet × 600 feet = 495,000 square feet. $130,000 rent ÷ 495,000 square feet = .262626 or $.26 per square foot.
A property costs $34,848 per acre. What is the cost per square foot of the property?
The answer is $0.80. $34,848 ÷ 43,560 square feet in an acre = $0.80.
A 30.25-acre parcel of land in Citrus County sells for $5,300 per acre. What is the documentary stamp tax on the deed?
The answer is $1,122.80. The solution is 30.25 acres × $5,300 per acre = $160,325 purchase price. $160,325 ÷ $100 = 1,603.25 rounded up to 1,604 taxable units. 1,604 × $.70 rate = $1,122.80 documentary stamp tax on deed.
An investor purchased an industrial building in January for $524,900. The contract specified that 80% of the purchase price be allocated to the structure, and the remaining purchase price be allocated to the land. What is the annual depreciation deduction? (Round to nearest dollar.)
The answer is $10,767. $524,900 × .80 = $419,920 building. $419,920 ÷ 39 years = $10,767.
A man owned 3/8 of a property. He was paid $60,000 as his share of the proceeds from the sale of the property. What was the total selling price of the property?
The answer is $160,000. The solution is part ÷ rate = whole (total sale price). $60,000 part ÷ .375 rate = $160,000 total sale price.
An appraiser is calculating the reproduction cost new of a home using the comparative square-foot method. The appraiser measured the exterior dimensions of the home, which were 30 feet by 55 feet, plus a detached garage measuring 22 feet by 24 feet. The appraiser consults an accepted cost manual and estimates the reproduction cost for heated and air-conditioned living area to be $90.50 per square foot and the finished free-standing garage to be $58.00 per square foot. What is the reproduction cost new of the improvements?
The answer is $179,949. 30 feet × 55 feet = 1,650 square feet living area × $90.50 = $149,325. 22 feet × 24 feet = 528 square feet garage area × $58.00 = $30,624. $149,325 + $30,624 = $179,949 reproduction cost new.
You bought a house in Hernando County, Florida, for $195,000. You gave a deposit of $25,000, assumed a recorded mortgage of $100,000, and signed a new second mortgage and note for $70,000. What are the total state taxes due as a result of this transfer of property?
The answer is $2,100. The solution is $195,000 ÷ $100 = 1,950 taxable units. 1,950 × $.70 rate = $1,365 doc stamps on deed. $100,000 ÷ $100 = 1,000 taxable units. 1,000 × $.35 rate = $350 doc stamps on assumed mortgage note. $70,000 ÷ $100 increments = 700 taxable units. 700 × $.35 rate = $245 doc stamps on new mortgage note. $70,000 new mortgage × $.002 = $140 intangible tax on new mortgage. $1,365 + $350 + $245 + $140 = $2,100.
The buyers are purchasing an apartment building. Each of the five apartments rents for $825 per month. The closing is scheduled for July 15, and the rents were collected on July 1. What is the rent proration for this transaction, and to whom will the amount be credited (day of closing belongs to the buyer)?
The answer is $2,262.10 credit to buyer. The solution is $825 rent × 5 apartments = $4,125 total monthly rent. $4,125 ÷ 31 days × 17 days due buyer = $2,262.097 or $2,262.10 credit to buyer.
A home has 2,000 square feet of living area and 485 square feet of garage. The reproduction cost new is $98 per square foot for living area and $55 per square foot for finished garage area. The site measures 75 feet wide by 120 feet deep and is valued at $5 per square foot. The economic life of the structure is estimated to be 60 years. The house is 10 years old. What is the value of the property using the cost-depreciation approach (round figures to the nearest dollar)?
The answer is $230,562. 2,000 square feet × $98 = $196,000 living area. 485 square feet × $55 = $26,675 garage area. $196,000 + $26,675 = $222,675 reproduction cost new. $222,675 ÷ 60 years economic life × 10 years = $37,112.50 accrued depreciation (rounded up to $37,113). $222,675 - $37,113 = $185,562 depreciated structure. 75 feet wide × 120 feet deep = 9,000 square feet for lot. 9,000 × $5 per square foot = $45,000 land value. $185,562 + $45,000 = $230,562 property value.
An investor incurred a 20% loss when she sold a 10-acre parcel (tract A) for $150,000. She also owns a 25-acre parcel (tract B) for which she paid $300,000. How much must the investor sell B for if she wishes not only to recover the loss from A but also to realize a 20% profit on the investment in B?
The answer is $397,500. The solution is tract A: 100% - 20% = 80%. 80% = $150,000 sale price. $150,000 ÷ .80 = $187,500 cost. $187,500 cost - $150,000 sale price = $37,500 loss from tract A. Tract B: $300,000 cost + 20% profit = $300,000 × 1.20 = $360,000 sale price. $360,000 sale price to make a 20% profit + $37,500 loss from A = $397,500 target sale price for B.
A broker lists a property. A 6% commission is agreed to, and the listing is placed in the MLS. The sale commission is to be split as follows: 45% to the listing broker and 55% to the selling broker. A sales associate who works for a cooperating broker sells the property for $245,000. The sale associate's agreement with her employer calls for a 60% share of all commissions she brings to the company. How much is due to the sales associate?
The answer is $4,851. The solution is $245,000 sale price × .06 rate = $14,700 total sale commission. $14,700 commission × .55 rate = $8,085 commission to selling office. $8,085 × .60 rate = $4,851 selling sales associate's split.
A limited partnership plans to purchase an apartment building that has a monthly net income of $5,200 and monthly expenses of $1,400. If the partnership is to get a 12% return on its investment, what should it pay for the property?
The answer is $520,000. The solution is $5,200 monthly net income × 12 months = $62,400 annual NOI. $62,400 ÷ .12 rate of return = $520,000 target price.
To get a mortgage loan of $98,500, a buyer has agreed to pay all state tax costs incurred by creation of the new mortgage. What is the total cost?
The answer is $541.75. The solution is $98,500 mortgage ÷ $100 units = 985 taxable units. 985 × $.35 = $344.75 doc stamps on mortgage note. $98,500 × $.002 rate = $197 intangible tax. $344.75 + $197 = $541.75.
A homesteaded single-family residence has an assessed value of $92,800. The owner is a 25% service-disabled veteran who is 75 years of age. What is the total homestead tax exemption?
The answer is $55,000. The assessed value exceeds $75,000. The solution is $50,000 homestead exemption + $5,000 disability = $55,000 total homestead tax exemption.
An income-producing property has a projected effective gross income of $65,000. Expenses are estimated at 20% of effective gross income. An appraiser has determined that an appropriate capitalization rate is 8%. What is the estimated market value of this property?
The answer is $650,000. $65,000 EGI × .20 rate = $13,000 expenses. $65,000 - $13,000 = $52,000 NOI. $52,000 ÷ .08 cap rate = $650,000 value.
The market value of an apartment building is $475,900. The investor has leveraged $380,720. What is the investor's equity in the property?
The answer is $95,180. The solution is $475,900 market value - $380,720 leverage amount = $95,180 equity.
An income-producing property has a potential annual gross income of $98,500. Vacancy and collection losses are estimated at 10% of potential gross income. Expenses are estimated at $45,000. The estimated value of the property is $350,000. What is the capitalization rate for this property?
The answer is 12.47%. $98,500 PGI × .10 rate = $9,850 vacancy and collection loss. $98,500 - $9,850 = $88,650 EGI. $88,650 - $45,000 expenses = $43,650 NOI. $43,650 ÷ $350,000 value = .1247 or 12.47% cap rate.
A builder purchases a residential lot for $40,000 and constructs a new house at a cost of $190,000. The builder later sells the property for $184,000. What is the builder's percentage of loss on the sale?
The answer is 20%. $40,000 + $190,000 = $230,000 cost. $230,000 cost - $184,000 sale price = $46,000 loss. $46,000 loss ÷ $230,000 cost = .20 or 20% loss.
A parcel of land contains 80 acres. A developer has reserved 25% of the land for streets and green space. Applicable zoning regulations require a minimum of 9,500 square feet per residential lot. The number of permissible lots is
The answer is 275. 43,560 sq. ft. per acre ×.75 land available for lots = 32,670 sq. ft. available. 32,670 ÷ 9,500 minimum sq. ft. per lot = 3.4389474 lots per acre. 3.4399474 × 80 acres = 275 lots.
A prospective borrower has a projected PITI of $1,000, an MIP of $260, a monthly car payment of $290, and a student loan payment of $175 per month. The borrower's gross monthly income is $4,200. What is the borrower's HER?
The answer is 30%. $1,000 PITI + $260 MIP = $1,260 monthly housing expense ÷ $4,200 gross monthly income = .30 or 30% HER
An investor purchased three 200-foot lots on a lake for $700 per front foot each. The investor then subdivided the lots into six lakefront lots, which he then sold for $91,000 each. What was his percentage of profit on the sales?
The answer is 30%. The solution is 3 lots × 200 feet = 600 front feet. 600 front feet × $700 per front foot = $420,000 cost of lots. $91,000 lot sale price × 6 lots = $546,000. $546,000 - $420,000 = $126,000 profit. $126,000 profit ÷ $420,000 cost = .30 or 30% profit.
Which statement is correct concerning an applicant whos real estate application was denied by dept of bussiness and professional regulations
The applicant must be notified in writing of the reason for the denial and advised of the right to request a formal hearing.
An investor wanted to build a motel. A broker showed him three choice sites zoned hotel-motel. The investor promised to decide on a site in three weeks, so the broker took a two-week vacation. When the broker returned, the investor bought one of these sites. The broker sold the site, not knowing that the zoning on that site had been changed to industrial. Which is correct?
The broker is guilty of culpable negligence
A licensed real estate broker has been hired by a lender to appraise a home for a buyer who has applied for a FHA loan which statement is TRUE regarding this situation?
The broker is required to be a state certified appraiser to perform this appraisal assignment
Which statement is TRUE regarding interest-bearing escrow accounts?
The broker must get written permission from all parties to the transaction before placing the funds into an interest-bearing account.
A licensed real estate broker has a successful real estate business. The broker has branch offices in the Florida communities of Fort Myers, Naples, and Bradenton. The broker wants to close her Bradenton office and open a new branch office in Sarasota. Which statement applies to this situation?
The broker must register the new branch location and pay the branch office license fee.
A licensed broker is the broker for two independent real estate brokerages. Which statement applies to this situation?
The broker must request and be issued multiple broker licenses—one for each brokerage company.
Is a broker required to retain the brokerage relationship disclosure documents, and if so, for how long, if a written nonresidential transaction that used designated sales associates fails to close?
The broker must retain the disclosure documents for five years even if a nonresidential transaction that used designated sales associates fails to close.
In commercial real estate transactions that meet specific criteria, a real estate brokerage may use one sales associate to work as a single agent of the buyer and another sales associate to act as a single agent of the seller. Which criteria must be met?
The broker must serve as a neutral party and not give guidance or representation to the buyer and the seller.
Which statement is false reguarding advertising
The brokerage firm address is required in all advertising. There is no req to include the firms address FREC only requires the name of brokerage firm be included in all advertisement
A buyer gave a broker a written offer to purchase property, which contained a 14-day acceptance clause along with a $3,000 deposit. On the seventh day, before acceptance by the seller, the buyer notified the broker that they were withdrawing their offer and asked for the return of the $3,000 deposit. Which of the following statements are true?
The buyer can withdraw their offer as long as the seller did not accept the offer and the buyer can obtain the $3,000 deposit.
Witch of the following is true about "as is"purchase contract
The buyer has and inspection period and option to cancel, recieving full refund of the deposit
A non licensed buyer negotiated the purchase of a house. During a conversation with the seller, the seller agreed to include both the washer and the dryer, in the sale, and this was included in the sales contract. In this situation, if the seller takes the appliances, what recourse (if any) does the buyer have?
The buyer may sue the seller for specific performance.
Which statement is unique to the transaction broker relationship?
The customer is not responsible for the acts of the licensee.
The execution date or date executed is the day a contract is signed. The effective date is what? Choose the best answer.
The day the contract goes into effect. In some cases the execution date and effective date are the same.
Which statement concerning tenancy by the entirties is FALSE
The deed must be specifically state intent to create such a tenancy
If a married couple who files jointly realizes a profit from the sale of their home that exceeds $500,000, what is the result?
The excess gain will be taxed at the current applicable capital gains rate.
Three identical properties in a suburban neighborhood were listed at the same time in a market where demand was constant. According to the law of supply and demand, which property would have sold for the lowest price?
The first property sold
An elderly property owner does testate. In the will care of the family pet is assured by conveying ownership in the property to a grandson who may occupy and enjoy the property so long as the pet lives. Upon death of the pet. Ownership passes to designated charity.. which of the following is true in this situation?
The grandson has a fee intrest
In a loan closing, propert signatures on the promissory note create:
The indebtedness of the borrower
Which situation is legal under the Federal Fair Housing Act of 1968?
The insistence of a widowed woman on renting her spare bedroom only to another widowed woman. These laws prohibit discrimination based on race, religion, color, sex, disability, children, nationality
A man is a 72-year-old retired college professor. The local lender to whom the man applied for a 30-year mortgage denied the man's loan application, even though he has sufficient income from his pension plan and an excellent credit history.
The lenders actions violate the equal credit opportunity act
A sales associate is in his third license renewal cycle. The licensee neglected to renew his license before the expiration date seven months ago. Which statement applies to this situation?
The licensee must complete 14 hours of continuing education.
An active Florida licensee decides to move to North Carolina, but wishes to keep her Florida license active and continue to practice real estate in Florida. Which of the following best describes this situation?
The licensee must notify the Department of her change of address, and continue to comply with all Florida regulations.
What is the government issued plan to guide the long-term physical development of a particular area?
The master plan. The comprehensive plan, aka, master plan is a document that is prepared by local government to guide growth and development.
What will be the effect if the Federal Reserve Board decides to purchase government securities in the open market?
The money supply will increase and interest rates will decrease.
A real estate brokerage firm advertises a listed property. Which requirement is correct?
The name of the brokerage must be included in the ad.
Which of the following would not be permitted under the federal fair housing act?
The owmer of a 20 unit residential apartment building renting only to black men
Which of the following would not be allowed under the Federal Fair Housing Act?
The owner of a 10-unit apartment building renting to men only.
Which statement concerning broker's price opinions (BPOs) is TRUE?
The payment for a BPO must be paid to the broker and not directly to the sales associate who prepared the BPO.
Which information must be disclosed to a prospective buyer regarding a particular property?
The property is located in a flood zone area that requires flood insurance coverage.
Which statement concerning characteristics of the real estate market is FALSE
The real estate market is organized and controlled centrally
Escheat is
The reverting of property to the State or gov when owner dies and leaves no inheritenve plan
A real estate appraiser's fee for professional service is based on which of the following?
The time and difficulty of the appraisal.
Which of the following offenses would disqualify and applicant for the real estate license?
There are various factors , this is a matter of trust, if a person back lground indicating they can be trusted the commision might reject there application
Which of the following might suggest that rent is too low in an apartment unit?
There is a high occupancy rate.
A sales associate received a 5,000$ earnest money deposit from a buyer. She immediately delivered the deposit to her broker.. the broker deposited the check on the third business day into his gernal operating account
This is an example of commingling of escrow funds
Which property is exempt from Title VIII of the Civil Rights Act of 1968?
Three-unit dwelling in which the owner resides in one of the units
What is the purpose of underwriting
To determine the risk of making a loan
What is Ginnie Mae's primary responsibility?
To guarantee the security of loans
What is Ginnie Mae's primary responsibility?
To guarantee the security of loans.
What is Fannie Mae's primary responsibility?
To maintain an active secondary market for mortgages.
A real estate company represents a motel owner who wishes to list one of his motels for sale. The owner has told the listing agent that he doesnt want to sell the motel to any racial minorties Which statement is True?
To refuse to sell or lease any real property based on a partys race is a violation of the federal civil rights act of 1866
What is the purpose of the closing statement?
To summarize the financial aspects of a real estate transaction.
In Florida, which type of brokerage relationship is presumed?
Transaction broker
Which federal law made bait and switch advertising a federal offense
Truth in Lending Act (TILA)
The law requiring lenders to furnish borrowers with the APR disclosure is the
Truth in Lending Act.
The orginal law requiring that the annual percentage rate be disclosed to consumers was the
Truth in lending act
A double net lease is a rental agreement where:
Two additional costs will be added to your base rent
After what period of time does an involuntary inactive license automatically expire and become null and void?
Two years
Within what period of time after passing the end-of-course exam must a sales associate applicant pass the state license exam?
Two years
The simons have defaulted on their loan payment and are behind in paying the rest of their bills so their home is being sold in a foreclosure wuction.Of many liens againest itn which will have first claim on the proceeds of the sale
Unpaid real estate taxes
Local goverment exercises its greatest effect on real estate business by
Using zoning taxation and planning process
Which of the following fits the description? "A mortgage loan available for military service members, veterans, and eligible surviving spouses; which often comes with better terms than a traditional mortgage."
VA Loans
Which type of loan has NO established loan limit?
VA loan
Which expense is subtracted to derive NOI
Vacancy and collection losses
Which type of lien is a specific lien?
Vendor's
Which direction describes a range?
Vertical
A real estate broker is accused of taking money from the company escrow account to pay personel expenses . The broker decides that she does not want to go theough the hearing process so the broker turns over her real estate license to the DBPR. What term describes this situation?
Voluntary relinquishment for permanent revocation
Which alienation is voluntary?
Will
The seller instructs the listing broker not to show his home to members of a protected class. The broker informs the seller that this is a violation of fair housing laws, but the seller is insistent. Which choice is the broker's best course of action under these circumstances?
Withdraw from the listing agreement
My peterson is selling a day care,but the property is currently a non-conforming use. He hires jimmy to list the house and instructs him to not disclose the fact what should jimmy do?
Withdraw from the relationship
A brokerage office changes business address. What action must the broker take?
Within 10 days of moving, inform the DBPR in writing of the change in business address.
Can a mobile home be considered real property in florida
Yes only if owner owns land where its parked
A developer of a new residential subdivision hires a sales staff to sell homes. The sales staff receives a base salary plus 1% of the sale price of each home they sell. Are the people who sell these homes for the developer required to hold real estate licenses?
Yes, the sales staff must hold real estate licenses because they are partially compensated based on actual sales.
Which team name conforms to the team advertising rule?
Your Best Choice Team
Which of the following is a common example of real estate police power?
Zoning
A partially amortized mortgage has a final payment required to completely pay off the loan called
a balloon payment.
An example of economic obsolescence in real estate is
a noisy highway built right next to your home.
A warning for an initial offense that allows a licensee to correct the minor infraction without consequence is called
a notice of noncompliance.
If a mortgagee does NOT want the mortgage to be paid ahead of schedule, the mortgage will normally contain
a prepayment penalty clause.
under ILSA, developers of 25 or more lots must provide buyers with
a property report.
For application and licensing purposes, a Florida resident is a person who has resided in Florida continuously in
a recreational vehicle for four months.
A map that indicates the size and location of individual lots, streets, and public utilities within a new development is called
a subdivision plat map.
A tenant, after rightfully being in possession of a rented premises, without the consent of the owner, continues possession. This situation creates
a tenancy at sufferance.
A lender declares all the unpaid balance due and payable as a result of default. The lender is exercising the
acceleration clause.
The Latin phrase ad valorem comes up often when talking about property taxes. What does ad valorem mean?
according to value
In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring title to property. Within deeds, covenants are:
agreements or promises
A mortgage in which changes in the interest rate may cause changes in the monthly payment amount is called
an adjustable-rate mortgage
Another term for a formal complaint is
an administrative complaint.
The owner's title insurance policy is issued for
an amount no greater than the purchase price and is not transferable.
What is a legally enforceable obligation that arises from one or more parties due to the parties actions, conduct, or circumstances?
an implied contract
Mrs. Jane lives in a small residential neighborhood. 100-year-old trees surround her home, and her neighbor Mr. Joe claims the trees are on his property and is planning on cutting them down. Mrs. Jane tries to reason with Mr. Joe, but he refuses to listen. Mrs. Jane files a lawsuit that includes a court order for Mr. Joe to stop his actions until they can work something out. What type of court order is this?
an injunction
Failure to comply with the statute of frauds will result in
an unenforceable contract
Which fee does NOT have to be disclosed in a lender's advertisement when the actual note interest rate is mentioned?
appraisal fee
All the resources of a business, including tangibles and intangibles, are called the
assets
A mortgage loan that requires monthly payments of $400.00 for 15 years and a final payment of $20,000. Typically a loan structured like is called a
balloon loan
A mortgagor is also known as the:
borrower
What party usually pays the loan origination fee on a Federal Housing Administration (FHA) loan?
borrower
An applicant has been issued a broker's license. The broker licensee does not want to own her own real estate brokerage business. The licensee went to work selling real estate under another broker. She is BEST described as a
broker associate.
A broker received a $5,000 deposit from a buyer on Tuesday at 1:00 pm. The seller will not be available until Monday. The broker's normal banking day is Monday. The broker is required to deposit the $5,000 before the end of
business on Friday
Who is most likely to win a suit for specific performance?
buyer
When a property is sold "subject to the mortgage," the
buyer is not responsible for the note.
Which property is NOT covered under the fair housing act
commercial property
Which type of property would an appraisal use a depth table to estimate the property value?
commercial property
A marketing tool used by real estate licensees in the process of soliciting for listings that is intended to help sellers determine an asking price is called
comparative market analysis (CMA). A CMA is a marketing tool and may not be called or represented as an appraisal.
One of the newer developments in mortgage lending is the use of
computerized loan origination.
What is the procedure used by a public or private entity with the powers granted to take privately owned real estate
condemnation
Unlike apartments, which are leased by their tenants, condominium units are owned outright. A condominium is often shortened to
condos
A married couple intends to purchase property, but only if they can qualify for a mortgage loan at a reasonable rate. The qualification is
contingency
A type of seller financing in which the vendor holds legal title to the property until the buyer has repaid the debt is a
contract for deed.
A proprietary lease is associated with a
cooperative.
Which of the following approaches would an appraiser most likely use to appraise a church?
cost approach
You have been hired to appraise the local public library building. The approach that is likely to be the most relevant is the
cost approach
If a seller rejects a written offer made by a buyer, changes the terms of the offer, and has the new offer delivered to the buyer, it is considered what?
counteroffer
A developer contracts to build a home according to the buyer's specifications. This is an example of which type of building?
custom
Which disclosure must be given to the buyer of both new and resale residential condominium units
declaration
By which of the following can you not lose title to your property involuntarily?
dedication
By which of the following can you not lose title to your property involuntarily?
dedication is voluntarily giving property to the goverment
A developer transfers privately owned streets in a subdivision to the city with the agreement that the city will maintain the streets in the future. This process is called
dedication.
In title-theory states, the mortgage clause that provides that the conveyance of title to the lender is defeated when all the terms of the agreement have been fulfilled is the
defeasance clause.
A licensed sales associate collects rent from a tenant. The sales associate must
deliver the rental money to the employing broker by the end of the next business day.
The purpose of residential zoning is to control
density
Which of the following would NOT apply to the income approach in the valuation process?
depreciation
Which of the following would NOT apply to the income approach in the valuation process?
depreciation. Depreciation. Only the Cost Approach valuation process uses depreciation
Any loss in the value of a property over time from any cause.
depreciation. There are three main forms of depreciation: Economic Obsolescence, Functional Obsolescence, and Physical Deterioration.
When investors bypass thrift institutions for direct investment elsewhere, the process is called
disintermediation.
A parcel of real property that has an easement over another piece of property is best described as:
dominant estate
What is the difference between the market value of your home, and the amount you owe the lender who holds the mortgage?
equity
The gradual loss of land associated with moving water and/or wind is called
erosion.
Tax advantages of homeownership do NOT include
exclusion of gain from the sale of a principal residence up to $500,000 for a single adult.
A new airport built in proximity to a residential neighborhood may cause properties to lose value due to
external obsolescence.
Mortgage points, also known as discount points, are
fees paid directly to the lender at closing in exchange for a reduced interest rate
If a seller refuses to pay a broker her sales commission after the residential property is sold, the broker may
file a suit in the courts for her commission.
Closing is always the ___ step in executing a real estate transaction
final
The florida real estate commission is empowered by law to
fine or otherwise discipline licensees.
Which of the following is an example of Real Property?
garage. all things attached to the land and all the legal rights to it
The value of an established business property, compared with the value of just the physical assets of a business that is NOT yet established, is called
going-concern value.
The purchase price of a business minus the value of the tangible assets of that business equals the intangible assets of the business. This includes
goodwill
Earnest money should be deposited into a trust account:
in a timely manner, according to state laws
According to the Do Not Call list and Established Business Relationship (EBR) Rules, a real estate professional may contact a past client for relationship building purposes when?
indefinitely. If their business was terminated or expired it would be 18 months
In an adjustable-rate mortgage, the calculated interest rate is the
index + margin.
The fifth and fourteenth amendments of the U.S. Constitution permit the government to exercise its power of eminent domain. Eminent Domain is commonly used for:
infrastructure
What does the Federal Housing Administration do?
insures loans made by private lenders
Intangible assets of a business does NOT include
inventory
Depreciation (cost recovery)
is an allowable deduction that requires no current outlay of cash.
A housing development advertising its units being only available to people over 55 is what?
legal if 80% of the residents are age 55 or older
When a consumer files a complaint against a real estate licensee that contains facts indicating that a violation of FREC rules has occurred, the complaint is said to be
legally sufficient.
The financial term applied to the use of borrowed funds to finance the purchase of an office building is
leverage
What is best defined as, a document in which a property owner contracts with a real estate agent to find a buyer for the owner's property?
listing agreement
Which of the following real estate contracts is a service contract?
listing agreement
When an appraiser deducts depreciation using the reproduction cost of a building, the depreciation represents
loss of value due to any cause.
Buyer Dan is considering buying a lot to build a single family residence. Dan hires an appraiser to appraise the lot. Which approach to value would the appraiser choose to complete the task?
market data approach or sales comparison approach
Which valuation method or appraisal approach involves comparing a property to other recently sold properties in the same area of similar size and condition?
market data approach or sales comparison approach
Which of the following best describes the free enterprise system?
market system
Local zoning ordinances often regulate all of the following except
market value of the property
The five major sales specialties do NOT include
mixed-use property
Which of the following is a lien?
mortgage
An individual who takes residential mortgage loan applications or offers to negotiate the terms of residential mortgage loan applications for compensation must hold which license?
mortgage loan originator. Anyone who takes residential mortgage loan applications or offers to negotiate the terms of residential mortgage loan applications for compensation must be licensed as a mortgage loan originator (MLO).
The person who borrows money to help pay for the purchase of real property is called at various times the
mortgagor.
Complete the statement. To be enforceable, a lease longer than one year ________.
must be in writing, signed by the landlord and witnessed by two persons.
A man earned a $7,500 commission by selling a coin-operated laundry business, which has six more years before the expiration of its present lease. The man
must be registered with the Florida Real Estate Commission as a real estate licensee.
Which term refers to a situation where, during the early years of a loan the principle balance increases?
negative amortization
Often a commercial lease requires the tenant to pay the rent, plus also separately pay taxes, insurance, and maintenance. This is know as
net lease
The formula for determining the value of investment property is
net operating income ÷ capitalization rate = value.
In a mortgage transaction in Florida, the legal evidence of the personal debt is the
note
What is the term used to describe the party who receives an offer?
offeree
The Value Adjustment Board is composed of
one school board member, two county commissioners, and two citizen members.
What is the test done to locate where to place a septic system?
percolation test
The "time is of the essence" contract clause in real estate contracts generally has to do with what?
performance
The statute of limitations is the authority that outlines the
period of time during which a contract may be enforced.
Which survey term is associated with a metes-and-bounds description?
point of beginning
As a general rule of thumb ALL written offers must be:
presented to the seller
An example of an antitrust violation is
price fixing
A new car has a sticker amount of $31,000. This figure is the car's
price.
The person who hires or appoints an agent is called the:
principal
The amount borrowed is called the:
principal amount
The ADA's definition of public accommodation does NOT include a
private home.
Choose the best answer. Which of the following is an example of a Special Use property?
properties that are there to "benefit the public. religious facilities, nursing homes, assisted living facilities, hotels, truck terminals, meat processing plants, seed plants, public hospitals
The alienation clause found in most security instruments states that the full amount will be immediately due and payable if the
property is sold to a new owner.
Constructive notice is
provided by recording in the public records.
A contract that legally binds two or more parties together, to specific obligations, that create a legally binding contract between the buyer and the seller.
purchase agreement
Which type of risk is also called inflation risk
purchasing power risk
The Civil Rights Act of 1866 prohibits discrimination in real estate based on:
race
The cost of public services is distributed among real estate owners through what?
real property tax
What is the final step of the real estate appraisal process in which the appraiser weighs each appraisal approach and determines which one is most relevant and should be used?
reconciliation
After paying off a loan, the lender files what to release the lien?
satisfaction of mortgage
Which of the following is an economic characteristic of real estate?
scarcity meaning the total supply is fixed.
A commercial bank sold a group of 2,000 mortgages directly to Fannie Mae. This is an example of
secondary market activity.
The director of the Division of Real Estate is appointed by the
secretary of the Department of Business and Professional Regulation.
A real estate commission is usually based on the:
selling price
Commingling is the opposite of what?
separating the funds.
Real property can be converted to personal property by
severance
Which of the following situations would a percentage lease be most commonly used in?
shopping centers
Economic life is the length of time during which a piece of property may be put to profitable use. Economic life is usually:
shorter than the physical life
One individual or married couple in business alone (The most common form of business structure):
sole proprietorship
A public park is categorized under which zoning classification?
special use
Which of the following establishes the time period for enforcement of a contract?
statute of limitations
The Death or incapacity of the principal will
terminate the agency
An advantage of real estate investment trusts is
that it offers diversification.
A borrower who is in default on a mortgage is allowed to prevent the lender from foreclosing on the property by paying the mortgagee the delinquent principal and interest, plus any expenses the mortgagee has incurred in attempting to collect the payments. This right is called
the equity of redemption.
What is the biggest difference between private and public land use controls?
the government does not write or enforce private land use controls but it does impose and enforce zoning
An advantage of real estate as an investment is
the leverage of borrowed money.
Market value is
the price at which property would sell
When you buy real property, you gain several different kinds of rights. One of which are rights called "subsurface rights." What are subsurface rights?
the rights to the natural resources lying below the earth's surface.
Requirements for a valid deed do NOT include
the signature of a competent grantee.
Ken Laughton's house is "for sale by owner." Robert Hall falls in love with it during an open house, tells Ken he'll pay the full asking price, and promises to send Ken an earnest money check for $5,000. Ken accept the offer. The contract between them is
unenforceable
Which of the following contracts would best be described as a contract in which only one party makes a promise to perform an action?
unilateral contract
What is the illegal action or practice of lending money at unreasonably high rates of interest?
usury
The fact that land has a number of important uses is the basis for what essential element of value?
utility
Title to real property is technically conveyed when the deed is
voluntarily delivered and voluntarily accepted.
City planning commissions typically do NOT have final authority for
zoning revisions
