State Test Questions
Which of the following is NOT an acceptable depository for escrow funds received on a purchase agreement?
any licensed real estate attorney in any state
The current FL homestead tax exemption is up to $50,000 for qualifying homestead, and is deducted from the
assessed value when calculating the taxable value
After completing the post licensing education during the initial license period, licensees must complete
at least 14 hours of continuing education during every 2-year license period for BOTH active/inactive licensees
Which of these is an INCORRECT statement regarding the broker's escrow account? (Unit 5)
broker deposits and personal or brokerage funds up to $6,000 may be kept in the escrow account
In real property, an "estate by the entireties" is defined as an estate where (Unit 8)
by means of a single conveyance, title to real property is jointly held by a husband and wife, with both having equal interest
It would be fraudulent for a broker or sales associate to knowingly sell a property
by using a lottery
A beneficial interest in real estate which implies that an individual will receive legal title at a future date is known as
equitable title
The main purpose of a constitutional homestead is to
exempt property from forced sale
A seller lists his home for sale with a broker. The broker tells the seller that FL law requires a 7% commission. Which of these is correct?
the broker has committed an illegal act, because commissions are not set by law
Advertising for a brokerage corporation must include what
the registered name of the brokerage firm
A licensed real estate sales associate in the employ of a broker has
the same obligation to the broker's client and customers as the broker
A good indicator of the relationship between supply-and-demand in the residential market is
the vacancy rate
The cost of a mortgage states as a yearly rate that includes such items such as interest, mortgage insurance, and loan origination fees (points) is known as the
Annual Percentage Ratio (APR)
The monetary policy in the United States affects interest rates for home loans by controlling the availability of money. Who determines this monetary policy?
Federal Reserve System
Purchase money mortgage math problem
PMM
Highest and Best Use
The use that will give the owners the greatest actual return on their investment
A mortgage note has been paid in full. The mortgage lien can now be released through which clause?
a defeasance clause
Anything that is permanently fastened or connected to land is what
a fixture
Property management in the real estate business has gained popularity and importance due to what
a growth in absentee ownership
A broker is allowed to share a referral fee directly with
actively licensed broker who has not violated any laws of Florida
The Comparative Market Analysis (CMA) is very similar to the comparative sales approach, which means
adjustments are made to the subject properties
From a legal standpoint, when the buyer is a real estate brokers principal, the sales associate in the broker's office are
also legally bound by the broker's agency obligations
Active real estate licensees are allowed to perform a comparative market analysis but FS 475.612 prohibits referring to it as
an appraisal
The No Brokerage Relationship notice must be disclosed (Unit 4)
before the showing of the property
Smith and Brown owned real estate together. When Smith died last year, Smith's ownership interest passed to Brown, rather than Smith's surviving heirs. Most likely, Smith and Brown held title to the property as
joint tenants, with right to survivorship
Smith grants an estate to Johnson "for the life of Jones" with the provision that the estate is to revert back to Smith, or his heirs, upon the death of Jones
life estate
In a platted subdivision, the legal description most often used is
lot and block
A joint tenant who wants to sell their share of a property
may do so but the new owners will become tenants in common
Lenders in mortgage market who supply mortgage funds directly to borrowers are known as
primary lenders
The FHA insurance fund is intended to reimburse
private lenders when an FHA insured mortgage loan is determined to be uncollectible
What disclosure summary concerning ad valorem taxes must be presented to a prospective home buyer in Florida? (Unit 11)
property tax disclosure
In considering the given information, the lien that is superior or takes priority over each other is a
property tax lien special assessment liens federal estate tax lien
The purpose of Fannie Mae
purchase residential real estate loans in order to keep a uniform flow of funds in the mortgage market
What element is NOT essential to the validity of a real estate contract
recording
For a metes and bounds legal description to be valid by today's standards, it must include all of these EXCEPT (UNIT 10)
reference to a conspicuous monument, such as a tree or rock
The chance of losing all or part of an investment is called
risk
An appraiser is using the sales comparison approach to value. The subject property has three bedrooms, and a comparable property has four bedrooms. If the appraiser determines that an extra bedroom is worth $5,000, what adjustment should the appraiser make? (Unit 16)
subtract $5,000 from the comparable property
An easement can be removed by what
survey
Physical components of real estate do NOT include
timber rights
Zoning ordinances are normally used to control
use of land, such as residential or commercial
Leverage refers to the practice of what?
using borrowed funds to finance the purchase of an asset
What should a licensee do when his principal, an owner of subdivision lots, directs that he not show the lots to persons of a particular sex, race, or religion?
withdraw and refuse to deal with the owner
Prospect pays Broker 100$ for a list of rental properties. When Prospect is unable to successfully locate a rental, Broker returns $50 to Prospect. However, Prospect requested a full refund within 30 days. Could Broker be subject to disciplinary action by refusing to make any further refund?
yes, because Broker should have refunded at least $75
After retrieving written notifications from the landlord, intending to impose a claim for damages upon the security deposit of the tenant, how many days does the tenant have to object in writing to the deduction from the security deposit?
15 days
How many sections are there in a township?
36
The law that establishes the legal rights and responsibilities of real estate licensees is
61J2
To raise the lender's yield on a mortgage by 1%, the approximate discount required is
8 points
Sold for $48,000, mortgage for $31,200, new second mortgage for $7600 Doc stamp tax on deed Promissory note Intangible tax
?
FREC Commission
Four FREC members must be licensed real estate brokers, who each must have held an active license for five years before they join the commission. One member must be a licensed broker or a licensed sales associate who has held an active license for the two years preceding appointment. Two members must be people who are not, and have never been, brokers or sales associates. FREC members are appointed for four-year terms, and at least one member must be at least 60 years of age. (Section 475.02, Florida Statutes)
The FL law that requires sellers of property to provide buyers with a disclosure summary regarding a mandatory HOA
Homeowners' Association Disclosure, Chapter 720 F.S.
Abstract of Title
The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate.
Buyer purchases a house through Broker and asks Broker to refer a contractor who can remodel parts of the house. Broker refers Buyer to a contractor who gives Broker money for customer referrals. If all interested parties were notified of this arrangement prior to payment, which of these is a correct statement? (Unit 3)
The receipt of any money for referral services violates the Florida Real Estate Licensure Law
A real estate broker owns XYZ Realty, and his brother owns ABC Developers. Both firms work out of the same office. In this situation, a sales associate may
be registered, and have an active license with, one realty firm or one owner developer
Advertisements that fail to disclose the license name of the brokerage firm are called
blind advertisements
FREC has the authority to discipline Florida licensed, real estate professionals under what Florida State Statutes
chapter 120
In analyzing in borrower's ability to pay gratitude towards debt, the lender would be concerned with the characteristics of the borrower's
credit rating
Assuming that the broker is a seller's agent, the sales commission would appear most commonly on the Closing Disclosure as a? (Unit 14)
debit to the seller
Customarily, the state documentary stamp tax on the deed will show up on the closing disclosure as what
debit to the seller, unless agreed upon for buyer to pay it
A clause found in a deed limiting the size of a dwelling to be a minimum of 2,000 sq. ft would be an example of what
deed restriction
Which of these is an INCORRECT statement concerning a VA loan?
discount points must be paid by the seller
The capitalization rate is obtained by
dividing the NOI by the sales price
Which of these deeds is not a statutory deed? (Unit 9)
guardian's deed
Unlicensed personal assistant capabilities at an open house include what
hand out materials
A broker entered into a listing contract with the seller of a house and became the single agent of the seller. A potential buyer wants to see the sellers house and wishes to have representation by the broker as well. The broker must
have the seller sign as transition to Transaction Broker form before showing the house to the buyer
When Haley, the landlord of 5604 Wagon Wheel Street, receives money given as a security deposit she may not deposit the funds in what manner?
hold the money in any bank, credit union, or savings and loans institution located in any of the 50 states and may not commingle
Broker advertises property on a lake, with full knowledge that hazardous chemicals from a previous agricultural use are buried on the parcel, but fails to disclose this fact
in violation of the Florida Real Estate Licensure Law
Which of these would be most likely to cause external obsolescence in a single family residence?
increased flow of traffic, expressway, etc
A real estate sales contract or a contract for sale and purchase is a bilateral contract because
it contains promises to perform by both parties
A broker, employed under an open-listing contract by a seller, finds a qualified buyer before going into the hospital for two months. During this time, the seller finds a buyer without the help of the broker. The broker would be in a strong position to claim a commission in this case because
it was through the broker's efforts that a buyer was found for the seller
Broker was convicted of publishing false or misleading information and received the appropriate criminal penalty. Given these facts, the broker is subject to what
may be subject to both administrative penalties by FREC and civil penalties
With respect to ownership of a primary residence, which housing expenses are tax-deductible?
mortgage interest and property tax payments
When using a Florida based title company to hold escrow funds for a real estate sales contract, what must be included in the agreement?
name, address, and telephone number
Prior to Owner's death, she named her friend, Jenny, as the personal representative of her estate. To take an active part in the sale of Owner's real estate, Jenny is
not required to obtain a real estate license
A broker receives a listing on a home he knows to be perfect for his best friend. The home is being sold because of a divorce, and the broker knows the owners will accept a substantially lower bid than the listed price. The broker should tell his best friend what
nothing, but present to owner any offer that his friend wishes to make
As a general rule, closing expenses are
paid by the buyer and seller according to the contract
Buyer Smith purchases thirty-five acres for subdivision development and she plans to phase the development. In order to sell the lots in the first phase of the project, she should reserve within the mortgage which type of clause?
partial release clause
If an owner should die without leaving a will, the probate court having jurisdiction will appoint an individual to settle the descendents matters, formalizing and recording the transfer of title with what type of deed?
personal representative's deed
In appraising a 15 year old, typical home in a non-changing rural community, the appraiser would most likely be concerned with which type of depreciation?
physical deterioration
In the law of real property, the Statute of Frauds refers to the
requirement that to be enforceable, contracts must be in writing or partially performed
A licensee has been confined in a State Penitentiary as a result of activities not associated with his real estate business. His license may be
revoked
A licensed real estate broker has a listing with an asking price of $80,000. A prospect makes an oral offer of $78,000 and one makes a written offer of $82,000 and submits it to the owner. What should the broker have done?
submitted both
Since performing a broker price opinion or CMA constitutes real estate brokerage activity, the compensation collected in connection with that activity must be paid to the
sales associate directly
A sales associate has an argument with his broker and immediately goes to work for another broker. Which of these is a correct statement?
sales associate must be registered with FREC under the new broker before working there
The guarantee in which the seller provides assurance that he owns the property and, therefore, has the right to sell it is called the covenant of (Unit 9)
seisin
With a purchase money mortgage, who retains the title to the property?
seller
Buyer-Broker Agreements typically include all of the following except
seller's obligations
Which of these is required in a lead-based paint disclosure for homes built prior to 1978?
sellers and lessors must disclose the presence of any know lead-based paint in residential dwellings
The legal relief in equity action in which the plaintiff seeks to have the court force the other party to perform according to the contract is called a suit for what? (Unit 11)
specific performance
Sales associate who fail to complete the post-licensing education requirement and want to continue in the real estate business must
starting the whole process over
A sales associate leaves Realty Company to work for Realty INC. Before leaving, the sales associate takes the original copies of listing contracts that he secured for Reality Company. The sales associate is
subject to a charge of larceny
The INCORRECT statement regarding adjustable-rate mortgages is that (Unit 13)
the bank offering the mortgage loan is required to allow an assumption of the mortgage by a new purchaser
If you and a friend are going to purchase a parcel of land together, upon which to erect and rent apartments, it would be advisable, from your family's point of view, in the event of your death, for you and your friend to hold title as
tenants in common
A borrower has a home loan with a local bank. His deed states that he is the owner of the property. The mortgage is an encumbrance or a deed on title. Upon repayment of the loan, the cloud will be removed. The borrower is in a state that recognizes which mortgage theory?
title
Real estate agents have a duty to improve professional standards within the industry. Some acts may be legal but
unethical
An option contract is a
unilateral contract
