Azure Tide Real Estate Exam 1

Which of the following protects mortgage applicants from discrimination based on receiving public assistance?

Equal Credit Opportunity Act

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

A lease agreement

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

The Planning Commission

Practicing real estate without a license is a:

Third-degree felony

APPRAISERS licensed in Florida must abide by:

USPAP

An advantage of Real Estate Investments includes all except:

Liquidity

* 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

Advertising that discriminates against people based on ________ is prohibited by the Fair Housing Act and its amendments.

Religion

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

limited confidentiality

Bruce has a survey that is for a parcel in New England which is on the historic registry. It mentions compass bearings including degrees, minutes and seconds. Which survey method would likely have been used for the parcel?

metes and bounds

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?

price fixing

An individual and/or their spouse that is an active duty member of the armed forces and has a real estate license in another state can get a _________ real estate license if stationed in Florida

regular license

There are three types of agents in general business dealings. These include the universal agent, the general agent, and the:

special agent

A township contains:

36 sections

You sell Jessica a current up-to-date rental list and provide all the proper disclosures and paperwork. Jessica contacts you 15 days later and asks for a refund in writing of the amount she paid for the list because she could not find a rental on the list. She is entitled to how much of a refund?

75%

*Jackson is buying a home for $412,000. His interest rate on the loan will be 4.75% for 15 years. He will have a down payment of $16,480. What is the LTV on the loan?

96% Loan Amount Price (or value) = LTV ratio Take $412,000 - $16480 = $395,520; $395,520 / 412000 = 96% LTV

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

A single-family home for sale built Prior to 1978

Lien theory means that 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:

Is a member of the National Association of REALTORS

Heather has been using a roadway at the back of the 22 acres Pam owns in order to access a fishing pond. She has been driving down the roadway almost every day without permission for over 20 years. This is called an:

Easement by prescription.

Candy died intestate. After an extensive search, no heirs were found. Candy's real property would transfer by:

Escheat

Fannie Mae purchases all of the following loans EXCEPT:

Freddie Mac

As a sales associate can do an appraisal and collect a fee if:

It is to be used in court for a divorce case

Which of the following actions would terminate a contract? 1) Hilary performing inspections during the inspection period 2) Hilary failing to do what she needed to before the contract date expired 3) Hilary applying for a loan 4) Hilary getting cold feet about buying the house

Hilary failing to do what she needed to before the contract date expired

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

Quitclaim Deed

Standing trees would be considered:

Real Property {section 8 slide 24}

Deeds require which of the following to be valid 1) Signed by the grantor 2) Recorded with the Clerk of the Court 3) Signed by two Witnesses 4) Both 1 and 3

Both 1 and 3

What clause in a mortgage is activated when the entire mortgage has been paid in full?

Defeasance

Linda purchases property in Escambia County from Susan. Linda has $30,000.00 as a down payment and gets a mortgage in the amount of $150,000.00 and there is no other consideration for the transfer. How much will the doc stamp tax on the deed be?

$1,260.00 [Section 14 Slide 73, Page 423] Tax calculation: $150,000 + $30,000 = $190,000/100 = 1800 (taxable $100 units) x $0.70 = $1260.00 tax due.

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 [Section 14 Slide 64, Page 420] Step 1: Find the daily rate; property taxes for the year ($1234.00) / 365 days = $3.38. Step 2: Seller will credit buyer from January through midnight the day before closing. Calculate the exact number of days; January 31 + February 28 + March 31 + April 19 = 109 days Step 3: Multiply the daily rate ($3.3808219178) x Number of days (109) = $368.51

* You have a listing with a 6% commission. Your sellers have accepted an offer from a buyer that has their own agent. You have agreed to give the buyers agent 3.5% of the commission. Your agreement with your broker is that you get paid 92% of the commission you earn. The sales price was $387,500.00. How much will you get paid?

$8,912.50 $387,500 X .02.5 (6%-3.5%) = $9,687.50 x .92 = $8,912.50

A buyers loan payment called "PITI" will change if: 1) The property taxes increase 2) The property taxes decrease 3) Their home owners insurance fluctuates Submitted answer 4) All of the above

All of the above

Which of the following elements must you have for a valid real estate contract? 1) Competency 2) An offer and an acceptance 3) Legality of object 4) All of the above

All the above

The state of Florida requires all brokerage offices to have at least one enclosed room in a building of stationary construction and:

An entrance sign

Sales associate Troy 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. All of the following business formats are acceptable, except: 1) A profession corporation 2) A limited liability company 3) Professional limited liability company 4) Corporation

Corporation

All of the following are acceptable to register with the DBPR as a real estate brokerage EXCEPT: 1) Non-profit corporation 2) Corporation sole 3) Limited liability corporation 4) For profit corporation

Corporation sole

Which individual is NOT exempt from holding a Florida real estate license?

Certified public account (CPA) who is employed by a real estate corporation and receives a salary, plus bonuses based on real estate transactions

When figuring effective gross income which expenses are deducted?

Collection and Vacancy losses

Yvette claimed Giselle's property through adverse possession. To have done so successfully, Yvette would have to have done all of the following EXCEPT: 1) Take actual possession of the property 2) Possession was open and notyorious all the neighbors could see Yvette living there. 3) Do so for a continuous period of 10 Years 4) Paid taxes for the entire period

Do so for a continuous period of 10 Years

Which statement is FALSE regarding a Net Listing? 1) The seller agrees to the amount that the seller will net at closing 2) The broker keeps everything over this net price. 3) Net listings are legal in Florida 4) Net listings are unilateral Contracts

Net listings are unilateral Contracts is False

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

Option contracts can be verbal if for less than one year

Daisy Chain was unhappy with her agent. She had all of the following ways to end her agency relationship except: 1) Let the time of the contract run out 2) Go ahead and accomplish the goals set out in the agreement 3) Get the agent to agree to cancel the relationship 4) Pretend like it didn't exist and complete a transaction without the agenT

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

A Primary reference line that runs North and South is called:

Principle meridian lines

What instrument includes the specific terms of the loan such as rate, length of term, payment, etc.?

Promissory Note

Actual notice is:

Something you have learned by reading, seeing or hearing

In a metes-and-bounds description what is the opposite direction of North 10 degrees East?

South 10 degrees West

Joe's lease ran out a week ago. He has not signed a new lease and has not moved out. What kind of tenancy does he have?

Tenancy at sufferance

A sales associate has a licensed assistant which is paid both on an hourly basis and a commission basis. How should the assistant be paid?

The sales associates' broker must pay the assistant the commission while the sales associate may pay the hourly wage if it is for tasks that do not require a license

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

Brokers must retain brokerage relationship disclosure documents for 5 years except when:

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