Azure Practice Exam

Fannie Mae purchases all of the following loans EXCEPT which one?

Freddie Mac

Which of the following properties requires a lead-based paint disclosure?

A single-family home for sale built in 1966

Chris rents an entire floor at the Dorian Complex to run her brokerage. Every year the lease amount adjusts based on a change in the consumer price index. What type of lease does Chris have?

Variable

Which of the following actions would terminate a contract?

Jace's lender unable to qualify Jace for a required loan by the end of the contracted period.

Which of the following people are exempt from having a real estate license?

Jan, appointed by the court, to assist in conveying her deceased aunt's home.

Which of the following statements are false regarding The Real Estate Settlement Procedures Act (RESPA)?

Kickbacks are said to harm consumers by driving down the cost of transactions.

Hunter gave his brother, Terry, a contract for deed. Terry agreed to pay Hunter $1,100 for 30 years. Once the last payment is made, Hunter will transfer the deed of the property to Terry. What else is this contract called?

Land Contract

Lauren made an offer on a home. The seller countered her offer. Which statement is true?

Lauren's original offer was terminated by the seller's counteroffer.

An advantage of Real Estate Investments includes all except what?

Liquidity

Maxine didn't understand the paperwork that an oil company had her sign when they started drilling for oil on her property. The guy that got her to sign the paperwork was very nice and told her she would never have to move off the property - but could sell it anytime if she chose. But when they struck oil, she wasn't entitled to any of the money from the oil. What rights had she signed over to the oil company?

Mineral

Hilda and Hyatt paid $7,875 last year in mortgage interest, $4,200 in principal payments, $1,850 in property tax, $840 in mortgage insurance, $1,200 in property insurance, and $1,500 in maintenance. Which expenses are deductible from their federal taxes?

Mortgage interest of $7,875 and property taxes of $1,850

There are two parties to a mortgage. Which is the correct pairing?

Mortgagor = Borrower

Under the Fair Housing Act of 1968, which category of groups are protected from discrimination?

National Origin

Leora lived in her home for a long time. She took good care of her property. However, her neighbor did not. When Leora had her property appraised, she discovered that she lost value because of the condition of her neighbor's property. This is called what?

Regression

When the Department investigated a complaint against Mick, a licensee, the investigator believed that the charges were too serious to allow the licensee to practice real estate during the investigation and hearings. Which statement is true?

The DBPR Secretary could initiate a summary suspension against Mick to suspend his license until the matter was resolved.

Which group is responsible for the preparation of the comprehensive plan or plan amendment?

The Planning Commission

Without written permission, Phillip tells his buyer Tom, that his seller Mark is getting divorced and must sell the property quickly. Phillip is representing both Mark and Tom as a transaction broker. Phillip has violated which agency duty?

limited confidentiality

Natasha is representing a seller as a single agent and is also working with the buyer. What type of relationship is she allowed to have with the buyer?

no agency relationship

A few brokers have lunch together and agree to charge all clients 7% commission for the next 3 months. This agreement is an example of what?

price fixing

Brokers must retain a brokerage relationship disclosure documents for 5 years except in which of the following situations?

working with a buyer or seller as a transaction broker from the outset

You sell Janice a current up-to-date rental list and provide all the proper disclosures and paperwork. Janice contacts you 35 days later and asks for a refund in writing because she did not rent a place from the list. She is entitled to how much of a refund?

0%

How many of the FREC members must be at least 60 years of age?

1

A property sold for $350,000 and rents for $3,000 a month. A second property sold for $300,000 and rents for $2,500 a month. A third property sold for $310,000 and rents for $2,300 a month. Using the Gross Rent Multiplier method, determine the average GRM of the three properties.

123.82

A landlord has how many days to return a tenant's security deposit if not making a claim on the deposit?

15

A deal failed to close because the buyer was unable to secure financing. The broker received conflicting demands regarding the earnest money. How long does the broker have to notify the FREC that the conflict exists?

15 days

How many miles from the base line is T3S, R7W?

18

Residential rental property can be depreciated over how many years using the straight-line depreciation method?

27.5 years

FREC defines a Florida resident as someone that has resided in the state for a continuous period of how many months?

4 months

Which of the following properties would be defined as residential real estate per Chapter 475, Florida Statute?

5-acres with a house and a barn

How many acres are in The NE ¼ of the NE 1/4 of Sec 1, T2S, R3W and the SW1/4 of the SW1/4 of the NW1/4 of Sec 6, T2S, R2W?

50 acres

How many acres are in one square mile?

640

Haley thought that her property ran parallel with the tree lines. However, it angled ten feet in toward the back of the lot. As a result, she unknowing built the corner of her new garage onto her neighbor's property. If the neighbor allows the garage to remain, in how many years would it become a permanent legal easement?

7

Which section is immediately below section 6?

7

What is the percentage passing score on the real estate course exam?

70

Cassie is buying a home that appraised for $300,000. She is putting 10% down. What is the LTV on the loan?

90%

What is homestead protection?

A status provided for a homeowner's principal residence which protects the home against foreclosure from debt such as credit cards or medical bills.

All the following are acceptable to register with the DBPR as a real estate brokerage except which of the following?

Corporation sole

Earnest money deposit is shown on a closing statement as a what?

Credit to buyer only

How does a lien theory affect the mortgage?

Is a lien on the property, but property title is vested with the mortgagor.

A real estate agent that can call him or herself a REALTOR® means he or she has met which of the following criteria?

Is a member of the National Association of REALTORS®

Stefanie had a rental property. There were 14 units. After she subtracted for collection and vacancy losses, she totaled $23,500 income for the month. What did she calculate?

Effective Gross Income

Emily has been a licensed real estate sales associate for two years in Indiana. She worked actively under Thomson Brokerage for 12 months. But the last 12 months, her license has been inactive because of having to take care of her ill mother. Which statement is true about Emily's desire to get a broker license in Florida?

Emily needs two years of her license to be active in the previous five years before she is eligible to become a broker along with meeting requirements of taking a 72 hour broker course, state application, and state exam.

Roberta receives $5,000 a month from court ordered alimony. However, she does not have other income. Which of the following laws forces the lender to count the alimony as income for determining whether Roberta qualifies for a mortgage?

Equal Credit Opportunity Act

Harriet entered into an agreement to sell her house. According to the contract, even if Harriet or another agent brings the buyer, the listing agent will still receive a commission. What type of listing did Harriet sign?

Exclusive Right of Sale Listing.

Winnie failed to add to her application for a Florida real estate license the fact that she had previously been convicted of theft. Which statement is true?

Failure for Winnie to disclose the theft would be viewed as falsifying an application.

What is the Florida statute that gives the DBPR the power to investigate consumer complaints, issue subpoenas upon conducting investigation, issue cease and desist orders, and issue citations?

Florida Statute 455

When purchasing an existing resale condominium, the buyer must receive which of the following?

Frequently Asked Questions

Which statement is true regarding the Government National Mortgage Market Association (GNMA?)

GNMA acts as a guarantor of securities rather than purchasing the securities.

Gabriel is a sales associate. To make extra money, Gabriel decides to do appraisals. Which of the following is legal?

Gabriel followed USPAP to appraise property for a divorce case.

Frank agreed to run Karen's bait shop. He was responsible for ordering bait and contracting with fishing charters to supply bait. He hired and fired staff. What type of agency relationship did Frank have to Karen?

General agent

Broker Hope took an earnest money deposit from Buyer Burt. She placed the deposit in her brokerage operating account. Which statement accurately describes what Hope did?

Hope commingled trust funds by placing the money with company funds which is illegal.

The Civil Rights Act of 1866 prevented discrimination based on being a member of which group?

Race

A building erected permanently on a property is considered what?

Real Property

Taylor was several months behind in her mortgage. She got a notice from the bank telling her that she now owed the full unpaid balance of the mortgage. What clause in a mortgage was activated by her late payments?

Acceleration

What are the factors that influence supply?

All of the above

An agent, broker or lender who is trying to scare owners in a neighborhood into selling their property by suggesting that property values will drop when a protected class moves into the area is an example of what?

Blockbusting

Deeds require which of the following to be valid?

Both 1 and 3

A sales associate receives a check for the earnest money with a contract and gives it to her broker immediately. Which of the following would be an appropriate action for the broker to take next?

Both the second or third option are legal ways to handle the deposit.

Adrian died intestate. After an extensive search, he was found to have a niece. How would Adrian's real property transfer?

By descent

As joint tenants, David and Amy bought an investment property. Amy died suddenly. Which statement is true?

David owned the property as an estate in severalty.

If a title has a defect or cloud on it what type of deed would you use to cure it?

Quitclaim Deed

How much are the doc stamps on a promissory note?

$.35 on each $100 increment

What is the intangible tax when getting a new mortgage in the amount of $550,000.00?

$1,100

You have an investment valued at $115,000 with a rate of return of 12.5%, what is the monthly net income?

$1,197.92

Joshua purchased property in Escambia County. Joshua put $30,000.00 as a down payment and obtained a new mortgage for $150,230.00. There was no other consideration for the transfer. How much will the documentary stamp tax on the deed be?

$1,262.10

Leslie bought a house for $625,000. She had $22,000 in closing costs upon the purchase. She spent a year fixing up the property by investing $180,000 into the property. She then sold it for $880,000 with $70,400 in closing costs. What is the capital gain or loss?

$17,400 Capital Loss

You bought a home for $850,000. You put $100,000 down. You agreed to buy 3 discount points. How much did you pay for the points total?

$22,500

You list a home on the Atlantic for $4,250,000. The seller agrees to pay a 6% commission. However, the seller agrees that he will pay 7% commission on the amount of purchase price above $3,750,000. The home sells for $4,100,000. How much is the total commission?

$249,500

Under the sales comparison approach to valuation, a subject property has 2 bedrooms, 2 bathrooms and a pool, but the comparable property has 3 bedrooms, 1 bathroom and no pool. The comparable property sold for $300,000. The value of an extra bathroom is estimated to be $5,000. The value of an extra bedroom is estimated at $7,500. The value of a pool is estimated d to be $12,500. How much should you price the subject property based on the one comparable?

$310,000

Sally is buying a home and the closing date is set for April 20th. The annual property taxes are $1,234.00 and have not been paid yet. How much will the buyer be credited and the seller be debited?

$368.51

Todd is a 59-year-old veteran that is legally blind (from aging) plus he has been declared to have 25% disabled due to injuries he sustained in the military. His homesteaded property has an assessed value of $150,500. What is his taxable value for county taxes?

$95,000

Betsy, a broker associate, hired Monica as a licensed assistant. Monica assisted with contract negotiations. Betsy wrote her a check every week for her salary as an assistant. Which statement is correct?

Although Monica is licensed, Betsy cannot pay Monica directly for activities that require a real estate license. Betsy's broker should have paid Monica for contract negotiations.

The state of Florida requires all brokerage offices to have at least one enclosed room in a building of stationary construction what other criteria?

An entrance sign

Andreniki has recently moved to the United States and is living in Georgia. She is not yet a U.S. citizen, but does have a U.S. social security number. Which statement is true about her application as a Florida real estate licensee?

Andreniki does not need to be a U.S. citizen to be eligible as a Florida real estate licensee.

April, a sales associate, represented a buyer and seller in the same transaction. She presented the buyer with the homeowner association disclosure two days before closing. Which statement is false?

April's right to rescind doesn't count down until she receives the actual homeowner association documents.

Sales associate Tim Burr wants to create a business entity with the State of Florida to conduct real estate as a licensee. He will then register that name instead of his personal name with the DBPR. The following business formats are acceptable except which one?

Corporation

All the following are the methods used by an appraiser to determine the value of property except?

Comparative Market Analysis

The bundle of rights that a property owner has includes which of the following?

Control

Yvette claimed Giselle's property through adverse possession. To have done so successfully, Yvette would have to have done all the following except what?

Do so for a continuous period of 10 Years

Which statement is FALSE regarding a net Listing?

Net listings are unilateral contracts

In a metes-and-bounds description what is the opposite direction of South 25 degrees East?

North 25 degrees West

Which of the following statements is false based on the Statute of Frauds?

Option contracts can be verbal if for less than one year

Which of the following most accurately describes the statute of limitations?

Places a time limit on pursuing a legal remedy in relation to wrongful conduct

Daisy Chain was unhappy with her agent. She had all the following ways to end her agency relationship except which one?

Pretend like it didn't exist and complete a transaction without the agent

Kaitlyn reviewed the terms of her loan. The terms detailed that she had a 30-year mortgage and was being charged a rate of 4.2%. What loan instrument did Kaitlyn review?

Promissory Note

Why was the Federal Reserve System established?

Provide a safer and more stable monetary system and to influence the availability and cost of money and credit

What is actual notice?

Something you have learned by reading, seeing or hearing

When the judge ruled that the seller must sell his house, this is an example of what?

Specific Performance

The characteristics of value include all except?

Supply

Which tenancy ownership creates the right of survivorship?

Tenancy by the entireties

Faye just signed a new lease. It is for six months. What kind of tenancy does she have?

Tenancy for years

Ralph agrees to purchase two discount points. How will this affect the lender's yield?

The lender's yield will increase by a total of ¼%.

Pinkie and Sam just closed on their new home. What is the status of their contract with the seller?

Their contract was executed.

How is practicing real estate without a license punishable as?

Third-degree felony

Donna is the property manager for an apartment building complex. Sarah used to live in the complex but moved to a house recently. Sarah referred her sister, Pam, to Donna for Pam to become a new tenant. Donna paid Sarah $50 for the referral. Which statement about this situation is true?

This is illegal, per RESPA because Sarah no longer lives in the apartment building.

On Monday, Agent Sally collected an earnest money check. Agent Sally turned it over to Broker Mary on that same day. What is the last day that Broker Mary can deposit the earnest check to the escrow account?

Thursday

Which of the following is an example of a bilateral contract?

Tim who just rented an apartment.

Walden had an architect draw up plans for four different styles of homes. He then built four models matching the designs and offered to build similar homes to buyers. What type of construction method is this known as?

Tract Homes

Which statement is false regarding culpable negligence?

You can never be charged with Culpable Negligence if you did not know of a damaging issue.

Who is responsible for deciding the brokerage relationship?

broker