FL Real Estate Prep

What does fee simple mean?

"fee simple," refer to the highest level of ownership—ownership of the full bundle of rights

What is the max fine you can receive from the real estate commision?

$10,000

You practiced real estate without a license in Florida. What is the maximum penalty you could face?

$5,000 fine and 5 years in prison

Landlords must refund a tenant their secuirty deposit in how many days after a tenant moves out?

15 days

In Florida, how many days after a tenant delivers advance rental money must a landlord provide a written account of how it is being held?

30 days

How long is a term once you are appointed to the Florida Real Estate Commision?

4 Years

How many square feet are in an acre?

43,560 square feet

Lydia is a new real estate licensee in Florida. How many hours of post-licensing education courses must she complete?

45

How many squares is a township grid?

6 across / 6 down

1 square yard is equal to how many square feet?

9 square feet

Once a tenant stays after the right to possess has terminated what type of tenant are they called?

A Holdover Tenant

Gabrielle just listed her first home. Now her broker must review and approve her paperwork. What type of license does Gabrielle hold?

A Sales Associate

What notes the location, size, and shape of any improvements on a property?

A Survey

There is one opening on the commission. The current Commission has: 3 Brokers/1 Sales Associate/2 Consumers. Which individual is qualified to join?

A broker with at least 5 years of experience

What happens first after a federal fair housing complaint is made?

A fair housing specialist will review the complaint.

When a small town credit union needs extra funding where tdo they get it from?

A federal Loan Home Bank

A commitment fee may be a percentage of the loan amount or ______.

A flat fee

Ann, a licensee, received a complaint against her for something she doesn't believe she did. She decides to dispute the complaint. What else will she likely request?

A formal Hearing

What is external Depreciation? (Or economic absolescence)

A loss in value caused by an undesirable or hazardous influence offsite.

Who is the owner of the property in a committee's deed?

A mentally incompetent person

Who is the owner of a property in a Gaurdian's deed?

A minor

An easement in gross is granted to what?

A specific individual or company

What is estate at sufferance?

A type of possession in which a tenant stays after the right to possess has terminated.

What happens to the licensees under a broker if the broker's license is suspended or revoked?

All subordinate licensees would have their licenses placed on inactive status until they found another brokerage

What's the term for a notice given directly to and received by a person?

An actual notice

A commitment fee is calculated based on the undisbursed loan amount and is usually paid ______.

At closing

Renae moved to the U.S. from Nigeria and became a citizen. Which act specifically provides Renae with the right to buy, sell, convey, inherit, and possess property?

Civil Rights Act of 1866

Which entity has (or entities have) the authority to impose prison sentences for violating real estate laws in Florida?

Criminal Court

In addition to potential health hazards, what is a common consequence of a brownfield's presence in a community?

Decreased Property Values

The truth in Lending Act requires lenders to make certain what to consumers?

Disclosures

When a property owner dies without a will, the state may claim the decedent's property through what?

Escheat if no heirs or creditors can be found

Rules regarding licensure, education and renewal are set by who?

FREC in the FL Admin Code

Advance rental and security deposit money are subject to the same rules under what?

FRLTA

What institution was established in 1938 to purchase FHA-insured loans from individual lenders, group the loans together, and sell them as mortgage-backed securities to investors?

Fannie Mae

Which government entity oversees open-market operations?

Federal Opern Market Committee

Which entity's purpose is to keep U.S. finances in check by maintaining balanced and favorable economic conditions?

Federal Reserve System

Mark is a buyer who wants to know which words in a deed make it clear that the property is being conveyed with the full bundle of rights. What words should Mark look for?

Fee Simple

What are the elements of the sales comparison approach?

Financing terms and cash equivalency, conditions of sale, market conditions at the time of contract and closing, location, and physical characteristics.

Which act simplifies, clarifies, and modernizes consumer protection laws and makes them more consistent with federal trade laws?

Florida Deceptive and Unfair Trade Act

An accepted sales contract gives a buyer the future right to obtain what?

Full legal title to a property when a certain condition is met.

Gail gave her new landlord a check for $1,250 as advance rent on the apartment she's renting. Until Gail moves out, to whom do these funds belong?

Gail - her advance rent belongs to her and is held in trust in a special account by the landlord or property manager

What are special purpose deeds in FL?

Gaurdians, Committee's and Tax Deeds

What institution was formed in 1968 and took over the sale of the government loan market?

Ginne Mae

What special concern do foreclosed properties often present?

Hidden title issues

Prior to a certain act's existence, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing. What's this act called?

Housing and Community Development Act of 1974

The Florida legislature, under Fl. §455.223-225, granted the DBPR the authority to?

Investigate Consumer Complaints

Eminent domain and condemnation are considered what?

Involuntary alienation

A homeowner has converted two rooms in his home to a rental unit. What does the "Mrs. Murphy" exemption permit him to do?

It allows you to refuse rent to a specific sex of tenant

What is the cost reproduction approach?

It determines the cost to build an exact replica of the property with the same materials and deficiencies.

An Ad complies with TILA if?

It doesn't contain any of the trigger terms that require full disclosure of all financing terms

States rarely use the rule of caveat emptor because?

It leaves the buyer extremley vulnerable

How does the Federal Housing Finance Agency affect mortgages?

It sets limits for conforming loans and controls the amount of money that lower-income people can borrow.

Susan Duffield died testate at age 49. What can be said about Susan's estate?

It will be put through probate.

Shannon is reading through paperwork related to her upcoming home purchase, and she comes across the following: Southwest quarter of Southwest quarter (SW ¼ of SW ¼) and West Half of Southeast quarter of Southwest quarter (W½ SE¼ SW¼) of Section Eleven (11), Township Four (4) North of Range Eight (8) West. What did Shannon just find?

Legal Description

What does caveat emptor mean?

Let the buyer beware

Morty, a land surveyor, was called out to survey a property. After doing some research, he located the legal description for the property in question. Now, if he could just find the point of beginning located at the iron pin on the southerly line of state route 117, 30 feet east of the oak tree next to Bear Creek. What type of legal description is Morty working with?

Metes and Bounds

Sunshine Surveyors Inc. created a lot and block survey for a new residential development, Happy Acres. The first thing the surveyor did when surveying the new neighborhood was to reference what type of description?

Metes and Bounds Description

Yolanda is renting a home to Adam and has received his security deposit. She may deposit it into an interest-bearing account or a non-interest-bearing account, or she may ______.

Obtain a surety bond

If a property has wet lands where should that be noted?

On an appraisal report

What does the Ms. Murphy exemption apply to?

Owner-occupied buildings with no more than four units. The owner may choose to rent only to a like-sex tenant but may not discriminate on any other basis. The exemption doesn't apply if the owner uses a real estate professional.

Beatrice just had her license application denied by the commission. Which branch of the commission denied her application?

Quasi-judicial

Chapter 475 of the Florida statutes, called the ______, sets forth the law regarding real estate brokers, sales associates, and real estate schools.

Real Estate Professional Practice Act

Richard is interested in purchasing some rural land and included outbuildings. When reviewing the legal description, he sees the name of a principal meridian. What type of legal description is this?

Rectangular survey

Which type of survey system is also known as the public land survey system (PLSS)?

Rectangular survey

When a license law violation has occurred what does the real estate commision have the power to do?

Revoke, suspend, or deny issuance of a real estate license

In which market do lenders purchase packaged loans?

Secondary Mortage Market

Dora just received her Florida real estate broker license. What post-licensing requirements must she fulfill?

She must complete 60 hours of post-licensing within 18 to 24 months of broker license issuance.

What does testate mean?

Testate means "With a Will"

Tryon Corp. and Sandoval, Inc. were joint owners of the former Sandy Glass manufacturing facility. An environmental assessment found that the two companies share joint and several liability for a hazardous materials cleanup. What could happen if the two companies don't agree to cooperate in the cleanup?

The EPA will perform the cleanup itself and will bill Tyron and Sandoval for the cost

What happens when the Feds make it harder by increasing reserve requirements for banks?

The banks are required to keep more money in reserve, which means that money is longer available to lend which makes it harder for people to obtain mortages.

The covenant against encumbrances assures what?

The grantee that no encumbrances exist other than those that are publicly recorded or noted in the deed

What describes the meaning of a title?

The legal concept that one owns property

What happens to a Florida real estate licensee who is involved in a case, can't pay the judgment amount, and the consumer is awarded money from the Real Estate Recovery Fund?

The licensee's license will be suspended until the amount paid to the victim, plus interest, is paid back.

If you are a direct consumer for a loan, where will it be coming from?

The loan will come from the primary mortage market

What is the price at which a willing buyer and a willing seller would strike a deal, given normal market conditions?

The market value

Mortgages originate in what market and are packaged and sold to what market?

The primary and secondary

How do the primary and secondary mortgage markets work together?

The primary market packages loans to sell to the secondary market.

The freedom to enjoy a rental property with no hasrassment is called what?

The right to enjoyment

The secondary mortgage market serves what role in real estate finance?

The secondary market purchases loans from primary lenders and helps keep credit available to loan originators.

A caveat emptor state could best be described as which of the following?

The seller does not have to disclose information on material defects or protect the buyer in any way.

What is a gross lease?

The tenant pays a fixed rent and the landowner pays taxes, insurance, and maintenance expenses for the property.

Certain homes and other buildings are designated as "target" dwellings by the EPA. What does this mean?

There are specific requirements for contractors performing lead abatment or remodling these home

What is an action landlords and property managers can take to avoid commingling funds?

They can deposit funds in accounts are separate from the landlord's or property manager's funds.

Jameson is coming up on his sales associate license renewal date. He already completed eight hours of specialty credit continuing education electives. How many additional hours does he need to complete prior to his renewal date?

Three hours of core law and three hours of real estate and business ethics

What's the purpose of the secondary mortgage market?

To Servie Loans

The mortgage industry is made up of the primary and secondary markets. What's the role of the primary mortgage market?

To originate and fund mortage loans to consumers

What is the purpose of the Florida real estate license law?

To protect the health, safety, and welfare of the public.

Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's one purpose of this document?

To provide the estimated closing costs for Lawrence's loan

Regulation Z codifies the rules of the ______.

Truth in Lending Act

What does the Florida Deceptive and Unfair Trade Practices Act prohibit?

Unfair or deceptive business acts or practices

What does USPAP stand for?

Uniform Standards of Professional Appraisal Practice

If the responsible parties refuse to clean up hazardous contamination, the EPA can hire its own contractors and seek damages in court for _______.

Up to three times the actual clean-up costs

What can a probable cause panel decide?

Whether a complaint has merit or not

Gus has applied for a home equity line of credit from his federally insured bank so that he can make some renovations to his kitchen. The same bank is his lender for his home mortgage. Will this loan be subject to Real Estate Settlement Procedures Act requirements?

Yes, because RESPA applies to any residential loan transaction from a federally insured financial institution, including equity lines of credit.

What happens to you if you're involved in a case, can't pay the judgment amount, and the consumer who filed the complaint against you is awarded money from the Florida Real Estate Recovery Fund?

Your license will be suspended until you pay back the fund, plus interest.

What happens to banks when the discount window is closed?

banks cannot obtain additional funds from their reserve bank to make more loans to consumers

What is easment of prescription?

continuous, exclusive, and long-term use of another's property without actual permission

The covenant of seisin guarantees what?

that the grantor owns the property that appears in the deed

What is commingling?

when personal or business funds are mixed with escrow or trust funds. It's always illegal.