Attempt 1 Exam 4

When Shifty Savings and Loan makes a loan, the purpose of the note being signed by the mortgagor is to:

Acknowledge a debt and promise to pay it back

If a landlord decides to put security deposits received from tenants into his personal checking account, which of the following would apply?

Both a and b

Broker Dave is working with the seller as a transaction broker. A prospective buyer calls Dave to see the property and requests that Broker Dave work with him in this transaction. Which of the following statements is correct?

Broker Dave can work with the seller and buyer as a transaction broker for each

A complaint is filed against a licensee and an investigation is done by the DBPR. What is the next step after the probable cause panel concludes that probable does exist?

A formal complaint is filed by the DBPR

Which of the following best defines a Florida resident for mutual recognition purposes?

A person that has resided in Florida for at least four months, or resides in Florida with the intent to remain for at least four months

How many acres are contained in the NW1/4 of the NE1/4 of the SW1/4 of Section Four?

10

Lender gives an 80% loan with an 8% interest rate. The interest for a month is $776. What is the appraised value?

145,500

How many members of the Florida Real Estate Commission do NOT hold a Florida real estate license?

2

Bill's monthly housing expense is $1,290. His total monthly gross income is $5,000 and his total obligations are $2,240. With a conventional loan, what is Bill's monthly housing expense ratio?

26%

The respondent in a complaint has how many days to appeal a Final Order issued by the Florida Real Estate Commission?

30

After a final order has been issued by the FREC, how long does the respondent have before the final order becomes effective?

30 days

How large is a township?

6 miles square

Under what circumstances can a broker file a lien against a residential property for a commission prior to closing?

If the seller of the property gives permission in writing

Broker Alan files his resignation with Big Time Realty. If a replacement broker of record is not appointed within 14 days, what will the status be of the brokerage registration?

Cancelled

A licensee who has been voluntarily inactive for three years must do which of the following to possess an active real estate license?

Register their license with a broker

Two years after purchasing a Tax Certificate, the holder may:

Request a tax deed auction

f the DBPR believes that there has been a violation of the real estate license law, they may:

Investigate any person thought to have been involved in the case

When an option contract expires, how long does the optionee have to exercise their right to purchase?

It is negotiable between the Optionor (seller) and the Optionee (buyer)

Which famous lawsuit case established the rule that sellers must fully disclose property defects that materially effect value but are not readily observable?

Johnson v. Davis

David and his sister Laurie own a piece of property. If David dies and the property passes to Laurie, how was the property probably held?

Joint tenancy

A Daytona Beach sales associate goes on vacation in Miami. While in Miami, the sales associate assists a buyer in purchasing three properties listed by a Miami broker. The Miami broker should:

Pay only the Daytona Beach sales associate's broker Reason:Sales Associate Commissions can only be paid to the employing broker, and not directly to a Sales Associate, unless their Broker writes a letter to the closing agent requesting that the Sales Associate's share be paid to the Sales Associate directly.

The Federal Home Loan Mortgage Corporation was created to:

Purchase conventional mortgages from savings and loans

Which of the following properties are immune from real estate taxes?

Naples High School

An apartment building has the following characteristics: Purchase price: $800,000 Mortgage: $640,000 Annual Debt Service: $ 64,240 Potential Gross Income: $183,306 Effective Gross Income: $172,308 Operating Expenses $ 60,308. What is the property's Before Tax Cash Flow?

Net Operating Income - Debt Service = Before Tax Cash Flow

A minor can transfer title:

Never since minors are considered incompetent

Broker Dave receives an earnest money deposit on Wednesday at 8:30 in the morning. The deposit must be placed in his escrow account:

No later than Monday by the end of the business day

Broker Steve ran an ad for a number of apartments for rent ranging from $700 to $1,000 per month. The $700 units had all been leased when the ad ran. Is this legal?

No, this is considered false or misleading advertisement, also known as bait and switch

Sales associate Jennifer does not complete 45 hour post-license course before her first Florida sales associate license expires. After the expiration date, her license will become:

Null and void

What would be the most likely result if the Federal Reserve System sold securities through open market operations?

Supply of money in circulation will decrease

An oral lease for more than one year is a:

Tenancy at will because of the statute of frauds Reason:Leases for more than one year must be in writing

After receiving conflicting demands over a $3,000 escrow deposit, Broker Bill requests an escrow disbursement order from the FREC who directs Bill to give the deposit to the seller. Following the disbursement, the buyer sues Bill in court for the deposit and obtains a judgment against Bill for $3,000. What remedy may be available?

The Real Estate Recovery Fund will pay the judgment and reimburse the broker for their attorney fees

A real estate broker and a real estate sales associate form a real estate brokerage corporation. Which of the following statements is correct?

The broker can be an officer and director of the company and the sales associate can own all of the stock

Which of the following is a correct statement regarding a term mortgage?

The mortgage payment is interest only

Randy bought a rental list from Broker Dave on July 1 for $200. After previewing the potential units available for rent, Randy decides to remain at his present location. In order for Randy to get his full deposit back, which condition must be met?

The rental list must contained an error or inaccurate information

An abstract of title is a:

Title search of all recorded documents concerning a property

Which statement best defines the term "Tenancy in Common"?

Two or more owners with no right of survivorship

In the comparable sales approach if the subject property is $5,000 better than the comparable, the appraiser should:

Add $5,000 to the comparable

Which statement best describes the purpose of greenbelt laws?

Agricultural properties should receive a reduced assessed value

A valid and enforceable real estate sales and purchase agreement must have all of the following except:

An earnest money deposit

All of the following are true statements about option contracts except:

An option binds the optionee

The most effective method the Federal Reserve System has to influence interest rate is:

Conduct open market operations

Broker Dave's office policy is to represent sellers as a single agency. However, he also reserves the right to represent both sellers and buyers in-house as a transaction broker. Which of the following forms is Broker Dave required to get signed?

Consent to Transition to Transaction Broker Form

A property sold for $172,500. The buyer assumed the existing mortgage in the amount of $99,320 and the seller took back a second mortgage (Seller Financing)in the amount of $20,000. What are the state taxes due on the transaction?

Correct Answer: $1,665.40 Reason:No intangible tax on assumed loans.

Beth, a sales associate with broker Dave, finds a buyer that is ready, willing and able to purchase a home that is listed with their office. Ted, the seller, has a change of mind and refuses to sell and refuses to pay the broker a commission. Which one of the following individuals can sue for the unpaid commission?

Dave

The clause in a mortgage that insures that the mortgagor will be provided a satisfaction of mortgage when the debt is fully paid is known as the:

Defeasance clause

Bryan has a residence in Destin and a summer home in Clearwater. He and his family spend the weekends as well as four months each summer in Clearwater. Which home would qualify for homestead?

Either Clearwater or Destin

A real estate sales associate can work for:

Either an authorized developer or a licensed broker

When a complaint is filed with the DBPR regarding a criminal violation involving a licensee that information is then reported to the:

Local State Attorney

Under what circumstance can a licensee have their license revoked without prejudice?

When the DBPR issues a license by mistake

The seller refuses to pay the agreed sales commission. Can the broker file a lien against the property for the unpaid commission?

Yes, if the listing contains written permission from the seller to record a lien for an unpaid commission

A seller gives an open listing to only one broker but reserves the right to sell the property herself without owing the broker a commission. This type of listing is known as:

an open listing