RE Sales Associate Practice Exam
The NW 1/4 of sections 16 and the NE 1/4 of section 17 contain how many acres? 20 60 200 320
320 (1 section = 640 acres)
A broker listed a house at $300,000 and sold the home at 95% of the asking price. The listing broker paid out 45% of the total 6% fee to the selling broker, who paid the selling associate 60% of the amount that came to the office. How much did the selling associate get paid? $1,700 $4,617 $7,695 $17,100
$4,617
A licensee has been notified that there is formal complaint against him as a result of findings by the probable cause panel. How long does the licensee have to answer the complaint? 5 days 20 days 35 days 50 days
20 days
Which of the following items are necessary to create an agency relationship? A fiduciary, a broker and a task A client, an agent, and a representation to a third party A representative, an agent and money changing hands None of the above.
A client, an agent, and a representation to a third party
Which phrase below describes the meaning of the word "contract" expressed in simple terms? A verbal agreement All mutual understandings A promise to do or not to do something Any legal documents
A promise to do or not to do something
A homestead exemption in Florida is available to those who qualify and file documents making the Florida home a primary residence. The base homestead exemption is: A. $25,000 B. $35,000 C. $50,000 D. $50,000 less school taxes
A. $25,000
Sam and Joan made an offer of $250,000 asking the seller to pay all closing costs. They will put 10% down and pay one discount points at closing. The amount of cash required at closing for Sam and Joan will be? A. $27,250 B. $25,000 C. $22,500 D. $20,000
A. $27,250 (25k + 2.5k )
A buyer is closing with a purchase price of $232,000, and a down payment of 10%. He will pay the doc stamps on the note and the intangible tax on the mortgage. What are the transfer tax charges to the buyer? A. $731 for the note; $417.60 for the mortgage B. $1460 for the note and $418 for the mortgage C. $1582 for the note; $212 for the mortgage D. $1824 for the note and $407.60 for the mortgage
A. $731 for the note; $417.60 for the mortgage ((232k - 23.2k) * .0035 = 730.80 (232k - 23.2k) * .002 = 417.60 )
The Government Rectangular Survey Method numbers sections within a township from: A. 1-36 beginning in the upper NE corner of the township and continuing in a snake like pattern. B. 1-24 beginning in the upper NW corner of the township with a vertical pattern. C. 1-12 from left to right depending upon the size of the section. D. 1-6 in each township - as all township have six sections.
A. 1-36 beginning in the upper NE corner of the township and continuing in a snake like pattern.
A broker's records must be available for inspection during business hours. Who inspects the records? A. A DBPR employee or authorized representative B. A FREC member C. A DRE employee D. An officer of the court
A. A DBPR employee or authorized representative
Which of the following actions could not be performed by an unlicensed assistant? A. Hold at an open house for a new listing B. Prepare the flyers for the open house C. Have keys made and return the originals to the owner D. Enter the new listing information into the MLS data bank
A. Hold at an open house for a new listing
John's parents passed away within six weeks of one another. As the trustee, John is following the trust instructions and will sell the family home. John will be paid in accordance with the trust documents. Which of the following is correct? A. John is working within the scope of his duties following trust instruction and does not need a license. B. When collecting any compensation related to the sale of real property, a license is required. C. Because John is not the owner and will advertise the property for sale, he must have a real estate license. D. Chapter 475 requires that John have a license if he negotiates the sale of residential real property.
A. John is working within the scope of his duties following trust instruction and does not need a license.
Which statement is true regarding the quasi-legislative power of the FREC? A. Quasi-legislative power gives FREC authority to make rules to enhance the law B. This power allows FREC to discipline licensees who commit improper acts C. Quasi -legislative power is not a power that FREC has D. Quasi-legislative power gives FREC the authority to subpoena
A. Quasi-legislative power gives FREC authority to make rules to enhance the law
Which appraisal theory says that the maximum amount a buyer will pay is based on the price of the competing property? A. Substitution B. Highest and Best Use C. Cognitive Appraisal Theory D. Progression and Regression
A. Substitution
When a complaint is filed against a licensee what criteria determines if an investigator is assigned? A. The complaint must be legally sufficient and there must be evidence that a FREC or DBPR law or rule was violated B. The moral and ethical severity of the complaint determines if an investigator is assigned C. A grievous violation must have occurred D. The complaint must rise above the notice of non-compliance level
A. The complaint must be legally sufficient and there must be evidence that a FREC or DBPR law or rule was violated
How is the sales price reflected on the closing form for the buyer and the seller? A. The sales price is a debit to the buyer and a credit to the seller B. The sales price is a credit to the buyer and a debit to the seller C. A credit to the seller, only D. A debit to the buyer, only
A. The sales price is a debit to the buyer and a credit to the seller
Jim, a licensee in Florida moved to Georgia and retired. Before leaving Florida Jim placed his real estate license on inactive status, what will happen if Jim doesn't renew the license after two years? A. The status will change from voluntarily inactive to involuntarily inactive B. The license will automatically renew C. The license will expire D. The license will be suspended
A. The status will change from voluntarily inactive to involuntarily inactive
A real estate license is required in Florida if one negotiates a sale as part of a business relationship with: A. another individual and expects compensation related to the transaction. B. an employer and sells real estate as part of his salaried employment. C. the owner of a mobile home as a courtesy. D. a buyer for a property that is owned by the negotiator.
A. another individual and expects compensation related to the transaction.
If the Loan to Value is high, the party most at risk for loss when a property is financed is the: A. lender B. borrower C. mortgagor D. trustor
A. lender
The Civil Rights Act of 1988 had two important benefits for housing discrimination. They can be described as: A. more protected classes than the 1968 act and greater punishment for violators. B. fewer protected classes than the 1968 act and repeal of some punishment. C. fewer ways to violate the act and less government interference in housing. D. more choices for landlords in selecting tenants and less chance of prosecution for violating.
A. more protected classes than the 1968 act and greater punishment for violators.
The purpose of the owner's title policy is to protect the: A. owner from forgery in the record and claims that may not have surfaced prior to closing. B. lender from forged documents and dishonest sellers. C. seller and buyer from unknown or undisclosed facts about the property. D. title insurance company from liability for closing the transaction.
A. owner from forgery in the record and claims that may not have surfaced prior to closing.
Which items listed below are required for a valid deed? The date and signatures of the grantee Signatures of the grantee and grantor An accurate legal description and the signature of the grantor A date and a promise of undue influence
An accurate legal description and the signature of the grantor
Broker Joe has a listing for a distressed seller. He finds a buyer for the property who enters into a contract for purchase. Ten days prior to closing, the seller calls Joe to share that he has had to file for bankruptcy. This filing may A. have no effect on the sale. B terminate the contract. C. delay the closing. D. require Joe to sue his seller for specific performance.
B terminate the contract.
An investor is looking at a four-plex that is priced at $500,000 and has a 7% cap rate. The investor told the sales associate to write up the offer using a 9% cap rate. To the nearest dollar, what is the investor willing to pay? A. $350,000 B. $388,889 C. $500,000 D. $714,285
B. $388,889 ($388,889 ($500k * 7% =$35k) NOI =$35k So $35k/9% = $388,889 (max amount paid))
According to Florida law, if the landlord does NOT intend to keep any of the tenant's security deposit, the landlord must return the security deposit to the tenant within: A. 10 days. B. 15 days. C. 20 days. D. 40 days.
B. 15 days.
Personal property is being transferred with the sale. Which document transfers personal property? A. The Real Estate purchase agreement B. A bill of sale C. The trade fixture assignment D. A fixture agreement
B. A bill of sale
Which of the following statements is NOT correct regarding the escrow account for the brokerage? A. The broker must be a signatory on the escrow account B. A broker can only have one escrow account C. A broker may maintain more than one escrow account D. A broker must reconcile the escrow account no more than 30 days from the last reconciliation
B. A broker can only have one escrow account
Which appraisal approach to value would be most suitable for a waterfront home with a high-end remodel on a lot that cannot be duplicated, in an area with many other remodels and sales? A. The cost approach B. A market data or sales comparison approach C. The income approach to value D. The highest and best use approach
B. A market data or sales comparison approach
What is the common term for the security interest that the lender has in the property? A. Guarantee of payment B. Collateral for the loan C. Mortgagee title policy D. Hazard insurance
B. Collateral for the loan
Save our Homes, also known as amendment 10 protects Florida homestead property in what way? A. The amount of homestead exemption is guaranteed to be $50,000 B. Homestead property is protected by an annual cap of 3% C. Property taxes for homestead property cannot increase D. Homestead property cannot be foreclosed
B. Homestead property is protected by an annual cap of 3%
A seller tells a listing associate that he will not sell to members of a certain religion. Can the listing associate follow the seller's instructions? A. No, only the broker can make this decision B. No, this is discriminatory and would be a violation of the Federal Fair Housing Act C. Yes, the fiduciary duty requires the associate to follow the seller's instruction D. Yes, as long as the associate doesn't advertise this
B. No, this is discriminatory and would be a violation of the Federal Fair Housing Act
Taxes and insurance, are often prepaid at closing to establish the escrow account. On which page of the Closing Disclosure form will the buyer see an accounting of the escrow account set up? A. Page one, under buyer's totals B. Page two, under other costs C. Page three, with loan disclosures D. Page five, Confirmation receipt
B. Page two, under other costs
What is a primary difference between joint tenancy and a tenancy in common? A. A joint tenancy has two owners and a tenancy in common must have three B. Property titled as a joint tenancy cannot be willed C. A tenancy in common is a special ownership for a married couple and joint tenancy is for unmarried people D. All of the above.
B. Property titled as a joint tenancy cannot be willed
The secondary market and participants provide stability for home financing in what way? A. Fannie Mae makes loans to banks so that banks can lend more mortgage money B. Secondary market participants purchase existing paper which frees up cash for lenders C. Congress has provided dollars to the secondary market participants so buyers can achieve the dream of home ownership D. The warehousing agencies determine the amount of money that can be lent for housing without risk
B. Secondary market participants purchase existing paper which frees up cash for lenders
In real estate, which of the following is correct about the term "title?" A. A contract that transfers ownership is a title B. The term title is a concept referencing the rights associated with ownership. C. Title is a legal definition describing a leasehold estate. D. All of the above.
B. The term title is a concept referencing the rights associated with ownership.
Eminent Domain allows for the "taking" of private property for public good. What two items must occur before the "taking" of a property - either all or part can occur? A. There must be a property assessment and the owner must agree with the outcome. B. There must be a condemnation proceeding and the owner must be compensated. C. The owner must want to sell the property and the court must find a buyer. D. The property must have suffered a loss of value and the owner must want to sell.
B. There must be a condemnation proceeding and the owner must be compensated.
FREC and DBPR have a primary interest in real estate activity with a common goal of: A. establishing qualifications for the issuing of a Real Estate license. B. consumer protection. C. inspecting brokerage offices for violations of license law. D. legal interpretation of real estate contracts.
B. consumer protection.
The Real Estate Recovery Fund will never pay for: A. damages caused by a licensee. B. legal fees or punitive damages. C. a sales associate's dishonest dealing D. a broker's dishonest dealing
B. legal fees or punitive damages.
The term foreclosure means that the: A. property is sold voluntarily by the owner in order to pay off the mortgage. B. property is sold in a forced sale to the highest bidder. C. buyer deeds the property back to the bank. D. sheriff evicts the owner.
B. property is sold in a forced sale to the highest bidder.
The purpose of the Mortgage Insurance Premium (MIP) charged to a buyer with an FHA loan is to: A. set a minimum standard for lending with an FHA loan product. B. protect the lender due to the low down payments made by FHA borrowers. C. cover the cost of the FHA appraisal D. pay the Federal Government for help with the mortgage lending process.
B. protect the lender due to the low down payments made by FHA borrowers.
A primary difference between preventative maintenance performed by an apartment manager and routine maintenance is: A. preventative maintenance involves fixing something and routine maintenance doesn't. B. routine maintenance involves regular tasks and preventative maintenance saves money or minimizes risk. C. routine maintenance is expensive and preventative maintenance is not. D. preventative maintenance is expensive and routine maintenance is not.
B. routine maintenance involves regular tasks and preventative maintenance saves money or minimizes risk.
When a complaint is investigated by DBPR it must be legally sufficient. Legally sufficient means: A. the sales associate working with the buyer or seller committed a Code of Ethics violation. B. that an alleged violation of a Florida Statute, FREC or DBPR rule been submitted in writing. C. the sales associate was rude but the public is not in danger. D. public trust is violated by a broker or his associate
B. that an alleged violation of a Florida Statute, FREC or DBPR rule been submitted in writing.
A seller wants to net $100,000 after paying the broker 5% and paying off his loan balance of $200,000. He will also pay documentary stamps on the deed of $2100. What must the property sell for to cover all costs and net the seller his desired amount? A. $321,400 B. $337,000 C. $318,000 D. $345,000
C. $318,000 (100k + 200k + 2.1k = 302,100 * 1.05 = 317.2 ~ 318k)
A licensee is working with an investor who is interested in purchasing a small apartment complex. The property has six units rented at $1100 per month. If the cap rate is 7% and Net Operating Income (NOI) is $38,500 - what is the price of the property? A. $188,570 B. $388,000 C. $550,000 D. $1,131,420
C. $550,000 (7% = 38.5 / X , 7%X = 38.5k , 38.5k/7% = X X = 550k)
Which statement listed below is the best example of mortgage fraud? A. A VA buyer pays more than the Certificate of Reasonable value with his own funds B. An FHA borrower finances his FHA mortgage insurance because he is short of cash C. A mortgage loan applicant omits pertinent information on the loan application form D. A borrower with a low credit score pays a higher note rate so the lender will fund the loan
C. A mortgage loan applicant omits pertinent information on the loan application form
Which phrase best describes the term undivided interest when speaking of a co-ownership or concurrent interest? A. The owner's names are all listed on the same insurance policy B. Property taxes go to only one owner not all owners C. All owners have a shared interest in one property; the property is not divided D. The interest in the property is shared but only one owner may legally use.
C. All owners have a shared interest in one property; the property is not divided
Which of the statements listed below regarding the earnest money deposit (EMD) is correct? A. EMD is required or the contract is not valid and enforceable B. Contract law requires that EMD be at least 1% of the purchase price C. An earnest money deposit is NOT required to create a valid contract D. The offer is not a binding contract until earnest money is paid.
C. An earnest money deposit is NOT required to create a valid contract
Bob wants to sell his home and doesn't want to pay a fee, but he realizes he might have more prospects if he uses a broker. Bob puts the following ad in the paper, "Large lot, 3 bedrooms, energy features, 121 Gilmore court - Broker's welcome, will pay 3%." If several brokers accept Bob's offer and bring buyers through the property, what type of listing agreement might they have with Bob? A. Exclusive right to sell B. Exclusive agency C. Open listing D. Net listing
C. Open listing
Which of the items listed below is NOT a tax advantage of real estate ownership? A. Mortgage interest is deductible for a primary residence B. Real property taxes are deductible on the federal tax return C. Property can depreciate D. Exclusion of certain amount of capital gain when the primary home is sold
C. Property can depreciate
Which clause in a deed defines the ownership taken by the grantee, and clarifies the purpose of the deed? A. The Premises Clause B. The Granting Clause C. The Habendum Clause D. The Acknowledgement Clause
C. The Habendum Clause
Which events listed below would terminate an agency relationship where a broker represented a seller? A. Death of the buyer B. The listing associate transferred to another brokerage C. The house sold and the transaction closed D. Mutual agreement between the buyer and broker
C. The house sold and the transaction closed
Which of the following would terminate an offer? A. The offeror makes a small change to the terms before the presentation of the offer B. The offeree has not made an immediate decision C. The offeror withdraws the offer prior to acceptance by the offeree D. The offeree has another offer
C. The offeror withdraws the offer prior to acceptance by the offeree
FREC members of the Probable Cause panel act as a: A. judge and jury. B. a prosecuting attorney. C. a grand jury. D. a staff attorney.
C. a grand jury.
A closing is March 5 for a rental property with an annual tax bill of $2800. Calculate and show the debit and credits for the tax proration between the buyer and seller using the 365 day method, the day of closing belongs to the buyer. A. debit seller $483.29; credit buyer 2316.71 B. credit seller $483.29; debit buyer $2316.71 C. debit seller $483.29; credit buyer $483.29 D. debit seller $2316.71; credit buyer $2316.71
C. debit seller $483.29; credit buyer $483.29 (Jan + Feb + 5 = 31 + 28 + 4 = 63 , 2800/365 = 7.67 . 7.67 * 63 = 483)
When one owns a condo, the type of ownership that exists is a: A. leasehold interest with a share in the common elements. B. deed to the undivided elements and a life estate. C. fee simple interest with an undivided interest in common elements. D. none of the above.
C. fee simple interest with an undivided interest in common elements.
When a cap rate used with income capitalization is high, the following relationship with sales price exists: A. risk is low and the sales price is low. B. risk is high and the sales price is correspondingly high. C. risk and cap rate are higher, the sales price is usually lower D. cap rate and risk are low, the sales price is low as well.
C. risk and cap rate are higher, the sales price is usually lower
Availability of labour, materials, and land are market indicators of: A. demand B. market conditions C. supply D. financing
C. supply
John is a sales associate who has complaints against him for making false statements about property and for giving advice about the purchase contract. This is the third time these same violations have been investigated. If John is found guilty of violating these two practices at the formal hearing, the maximum fine John can face is: A. $1000 B. $2000 C. $5000 D. $10,000
D. $10,000
A property was purchased two years ago for $300,000; the investor just sold the property for $379,000. What was the percentage of profit in relation to the cost? A. 12.6% B. 22% C. 23.7% D. 26.3%
D. 26.3% (379-300 = 79 , 79 / 300 = 26.3%)
The Comparitive Market Analysis (CMA) is a tool for licensees; which statement below is correct about the CMA? A. The CMA is the same as an appraisal B. A CMA is an estimate of value and an appraisal is exact value C. A CMA and an appraisal must both conform to USPAP standards D. A CMA is not an appraisal - and should not be advertised as one
D. A CMA is not an appraisal - and should not be advertised as one
Which of the following estate has a definite ending date? A. A freehold estate B. A life estate C. An estate in remainder D. An estate for years
D. An estate for years
Which statement is correct regarding disclosed dual agency in Florida? A. It is lawful when permission is given from buyer and seller B. It is lawful with written consent from buyer and seller C. Buyers cannot be represented in Florida, so the relationship is not possible D. Disclosed dual agency is not an authorized brokerage under Florida law.
D. Disclosed dual agency is not an authorized brokerage under Florida law.
A property is located next to a busy freeway; semi-trucks use the freeway all night long. After two years on the market, the seller reduced his price by 25%. Which loss of value has occurred A. Curable Functional obsolescence B. Incurable physical obsolescence C. Functional obsolescence D. Economic or external obsolescence
D. Economic or external obsolescence
Which action below might be considered abandoning of real property ownership? A. Destroying several large oak trees on the property B. Adding a large hole for water drainage C. Bull dozing an older home D. Failure to pay property taxes
D. Failure to pay property taxes
John has a rental property with four bedrooms. He just installed new off-white carpeting. John does NOT want to rent to a family with children or a dog. Which of the following wording used in his ad is permissible? A. Four bedroom rental with light carpet, no children, please B. House for rent, no-children - no pets C. Four bedroom house -married seniors, only D. Four bedroom home, recently updated, $1300 per month
D. Four bedroom home, recently updated, $1300 per month
The FREC has the power to discipline licensees. What action can FREC not perform? A. Deny a license B. Suspend a license C. Fine a licensee D. Issue a jail sentence
D. Issue a jail sentence
Which items below are expenses associated with the property that are used to arrive at NOI by deducting from Effective Gross Income? A. Mortgage interest, taxes and insurance. B. Mortgage payment, taxes, and insurance C. Insurance, maintenance, management fees and interest D. Taxes, insurance, management fees, maintenance, utilities and reserves.
D. Taxes, insurance, management fees, maintenance, utilities and reserves.
Which statement below is correct regarding the mortgage as a security document? A. All mortgage liens are general, involuntary liens B. A specific, involuntary lien is created with a mortgage C. An involuntary, statutory lien is created with a mortgage D. The mortgage lien is a specific, voluntary lien
D. The mortgage lien is a specific, voluntary lien
A buyer with a low credit score must pay two (2) discount points at closing to get his note rate at 4.25%. How does this affect the loan? A. Points paid do not affect closing costs or loan amount. B. The points paid decrease the costs paid at closing. C. There is an increase in both the closing costs and loan amount. D. The points are extra interest and increase the lender's yield.
D. The points are extra interest and increase the lender's yield.
A deed and a real estate purchase agreement would not be considered valid without: A. a date. B. two witnesses. C. being recorded. D. an adequate legal description.
D. an adequate legal description.
The two voluntary forms of title transfer are: A. instalment contract and will. B. a living trust and a deed. C. foreclosure and a deed. D. by will and by deed.
D. by will and by deed
A real estate speciality that deals with property of more than four units, income production and tax advantages of ownership is: A. business opportunity B. residential real estate C. special purpose property D. commercial real estate
D. commercial real estate
The physical characteristics of real estate may be described as: A. unique, indestructible and homogenous. B. indestructible, unique, and improved. C. indestructible, non-homogenous, and precious. D. indestructible, unique, and immobile.
D. indestructible, unique, and immobile.
A homestead for a personal residence may be described as a (an): A. estate in reversion. B. less than free hold estate. C. tenancy by the entireties. D. legal life estate.
D. legal life estate.
VA loans require less cash from veteran borrowers because there is: A. a small down payment. B. a down payment, but no closing costs. C. no closing costs and no down payment. D. no down payment, but there are closing costs.
D. no down payment, but there are closing costs.
A primary difference between post-license education and continuing education (CE) is: A. post-license education is required every two years and CE is required once. B. CE and post license education are both mandated each license period as long as one has a license C. post-license education is for brokers and CE is for sales associates. D. post-license education is required for the first renewal and CE is owed each renewal thereafter.
D. post-license education is required for the first renewal and CE is owed each renewal thereafter.
Davis is selling an investment condo he has owned for several years. He has never lived in the unit and he has not visited the unit in 5 years. He shares these facts with Broker Bob who suggests that he list the condo "as is." In this case: the buyer knows to perform due diligence and Davis has no responsibility to disclose. Davis can avoid liability because the property manager is responsible for disclosure. both the listing broker and Davis have no legal obligation to disclose material facts. Davis is still required by law to reveal any important information and material facts about the condo unit.
Davis is still required by law to reveal any important information and material facts about the condo unit.
John is a real estate licensee in Georgia who wants a Florida real estate license. As long as John remains a Georgia resident, which of the following is an option for John when acquiring a Florida license? By stating in writing, that he knows and understands Florida law, John can gain a license by reciprocity John can pass a 40-question law exam and gain the license through Mutual Recognition John needs to take the 63 hour course and pass the license exam to earn the license. John cannot have a Florida real estate license as long as he is a Georgia resident
John can pass a 40-question law exam and gain the license through Mutual Recognition
When a transaction has failed and the buyer and seller are both demanding the escrowed funds what is the broker's best course of action? Release the funds to the party who is most likely to sue the broker Return the funds to the buyer Wait 30 days to see if the deal might close and then give the money to the broker's client Notify FREC within 15 days that there is an escrow dispute
Notify FREC within 15 days that there is an escrow dispute
The Supreme Court has said that zoning laws are constitutional because they protect which of the following? State government from legal action Open space and government control of public lands Private property rights and health and safety Parks and other recreational areas in large cities
Private property rights and health and safety
A mortgage is a legal contract with terms that benefit both the lender and the borrower. Which clause is a benefit to the borrower and NOT to the lender? An acceleration clause The covenant of good repair or maintenance clause The Defeasance clause An alienation or due on sale clause
The Defeasance clause
Which items listed below determine if the payment will go up or down on an adjustable rate mortgage? The index and the margin A cap and the contract The amortization schedule The balloon payment and the teaser rate
The index and the margin
A supervising broker has had his license revoked. What happens to the sales associates and broker associates who work within the brokerage under the direction of this broker? All licences are immediately suspended The licenses are placed on voluntary inactive status The licenses are places on involuntary inactive status The licenses are temporarily revoked
The licenses are places on involuntary inactive status
John has a rental application for a unit in his four-plex from a man in a wheel chair. The man wants to install a ramp by the back door and change a cabinet in the bathroom to allow the wheel chair to slide under. What are John's choices as the unit owner? John must allow the repairs and may not charge the tenant for the cost John does not need to allow the repairs; he is the owner and has rights The modification cannot be refused; the tenant can pay and should restore to original condition upon move out The wheel chair ramp is reasonable, - the new cabinet is not; John can refuse the tenant
The modification cannot be refused; the tenant can pay and should restore to original condition upon move out
Who serves the Writ of Possession needed to evict when a tenant has not paid rent? The sheriff A judge Any broker The landlord
The sheriff
Which phrase below best describes the meaning of the term Annual Percentage Rate (APR)? The amount of the purchase price in relationship to the amount borrowed A contract that reveals the cost paid when a house is purchased A RESPA rule that requires a special document at closing The true and actual cost of the amount financed
The true and actual cost of the amount financed
There are advantages and disadvantages of real estate ownership; which items best describe the advantages? A lack of liquidity, and potential appreciation The use of leverage and the risk The tax advantages and potential for leverage The need for professional management and lack of liquidity
The use of leverage and the risk
When a homeowner is delinquent on property taxes, the first step taken by government in correcting the late payment is the: delinquent tax payer names are published in the local paper. property is foreclosed by the lender. tax certificate auction is open to the public property is foreclosed by the holder of the tax certificate.
delinquent tax payer names are published in the local paper.
Which characteristic of value and component, would cause the lender to refuse to make a new loan for a buyer? Situs - the location is not desirable Transferability - the title is not marketable Demand - there are many other properties like this one Utility - the property is on a golf course and the buyer is not a golfer
Transferability - the title is not marketable
A Planned Unit Development (PUD) is best described as a (an): HOA where the ownership has fewer deed restrictions than other types of associations. zoning classification used by cities to designate low income housing. area more dense than residential zoning, designed to maximize development by using green space. shared ownership of common area and expenses.
area more dense than residential zoning, designed to maximize
After hurricane Ivan a beach front property owner lost the first 75 feet of his property. This violent tearing away of soil by the hurricane is referred to as: avulsion. erosion. reliction. riparian.
avulsion.
Real property taxes in Florida are paid to: the federal government. the state of Florida. cities and counties. the value adjustment board.
cities and counties.
A difference between commingling escrowed funds and conversion of escrowed funds is: commingling is not lawful and conversion is. conversion is using escrow funds for business operation while commingling is poor accounting. commingling is mixing personal and business funds while conversion is using funds for personal or business purchases. commingling is lawful and conversion is not.
commingling is mixing personal and business funds while conversion is using funds for personal or business purchases.
FREC members are a volunteer body because they: have no salary, have no employees, and do not work on a daily schedule. are retired brokers and appraisers. don't want money, they just want to police the real estate profession. are socially motivated to keep real estate prices increasing.
have no salary, have no employees, and do not work on a daily schedule.
Jim inherited a property that has not been maintained in years, the property needs new appliances, a roof, new siding, new electrical and plumbing. The cost of the updating far exceeds the value of homes in the area. The lack of feasibility in doing these repairs is called: curable. incurable. ineffective. inefficient.
incurable.
The seller and buyer have countered back and forth for several days. The two parties have verbally agreed on a price, but neither has signed anything. At this point the status of this negotiation is: legally binding at the agreed price for 24 hours. lacking legality an enforceable agreement not a contract until the parties have signed the necessary documents.
not a contract until the parties have signed the necessary documents.
Every real estate brokerage sign must be located: on the entry door or close to it. where it is easy to see. on a 3 x 3 sign in the parking lot next to the office. immediately inside of the entrance to the building.
on the entry door or close to it.
George is a Denver broker with a brother who owns five Florida condo's. George's brother is ready to sell these condos and George would like to collect a fee. In order to collect this fee legally, George can: travel to Florida, find buyers for the condos and collect a reduced fee from his brother. advertise the condo's in a Florida paper, negotiate with the buyers who call and pocket 10% of the sales price. market the property as any Florida broker would do and collect the entire sales commission refer the condo's to a licensed Florida broker who will list and sell the condo's and pay George a referral fee.
refer the condo's to a licensed Florida broker who will list and sell the condo's and pay George a referral fee.
John bought a waterfront lot with a setback requirement of 50 feet from the street. The lot is only 100 feet deep and drops off sharply at the water edge. John's architect tells him that they can build the dream house on the property if the setback were 35 feet. John applies to the city for a: non-conforming use permit. special exception. zoning change. variance.
variance.