Florida Real Estate 45 Hour Post License Practice
Condominium associations may have conditions of ownership placed on buyers including requiring which of the following?
1) An application and processing fee 2) An interview 3) A background and credit check 4) [CORRECT ANSWER] All of the above.
Consequences of an ethics charge handled by FREC may involve which one of the following?
1) A fine of up to $5,000. 2) Placement on probation. 3) Suspension of license. 4) [CORRECT ANSWER] Any of the above.
Adequately tending to the duties and obligations of a fiduciary relationship can best be demonstrated by?
1) A real estate licensee doing his or her best to find a buyer for a property. 2) A store manager working to maximize profits for the store owner. 3) A lawyer writing a legally correct contract for a client. 4) [CORRECT ANSWER] All of the above.
A developer has recorded a declaration in the public records of the county where the condominium is located for a 36-unit building. Upon the creation of a condominium development, the developer must file which of the listed documents?
1) "Declaration of Condominium" 2) "Bylaws of the Association." 3) "Prospectus" 4) [CORRECT ANSWER] All three listed documents.
Which phrasing would be the best to tell a seller that you rank #5 in sales in the county?
1) "I have sold a lot of houses." 2) "I rank #5 in sales in our county!" 3) "I'm one of the top agents in the county!" 4) [CORRECT ANSWER] "I rank #5 in sales in our county! This benefits you in that I have a proven record that shows I know how to get your house sold."
Agent Bigley was doing a CMA for a 1-bedroom 1-bathroom condo with carport in Maxium Condo Building. Which of the following properties would be the best comparable?
1) A single-family home located within 1 mile of the subject property. 2) [CORRECT ANSWER] A 2-bedroom, 1 bath condo with a carport in Maxium Condo Building. 3) A 1-bedroom, 1 bath condo located across town. 4) A townhome with 3 bedrooms and 2 baths next to Maxium Condo Building.
To list a farm with 100 acres, which is correct?
1) An agency disclosure form must be provided to work as a single agent. 2) [CORRECT ANSWER] Disclosures would not need to be provided. 3) A no agency capacity is the only option for farms. 4) Working as a transaction broker is the only option for farms.
You have just concluded a buyer presentation with Taylor. She likes you and you helped her sister buy a house 6 months ago. She is really excited about getting started. You put the buyer broker agreement in front of her, but you notice she looks very worried and did not sign it right away. You ask her if she has any questions. She immediately says, "Yes, I don't know how I am going to pay you for helping me. A guy at work said he had to pay his real estate agent $10,000. I only have money for the down payment because you helped me get the 1st time home buyer program. I guess I will have to wait until I can save up some money. Which of the following statements cover steps number 4 & 5 of objection handling?
1) "I understand coming up with the money to buy a house is a little daunting. I worried about the same thing when I bought my house." 2) "I have to have a signed agreement. But you can think it over if you need to." 3) [CORRECT ANSWER] "You don't have to worry about that because my commission is paid by the seller at closing. Since you don't have to pay me yourself, wouldn't it make sense to work together?" 4) None of the above.
You just finished a listing presentation for Joe. He seems impressed, but he says, "Thank-you for coming tonight. I am going to think things over and let you know what I decide in the morning." Which of the following phrases would be the best way to start a response based on the 5 Steps of Objection Handling?
1) "I'll drop my commission by 1% if you list with me today." 2) "But wouldn't it be better just to get this over with? I promise you I won't let you down." 3) [CORRECT ANSWER] "I understand you want to think over such a big decision. When I have to make an important decision, I often want to take my time as well. I was wondering..." 4) "I understand. I'll call you in the morning to find out your decision!"
You are at an expired listing hoping the homeowner will use you to get the property relisted. You prepared by pulling tax records on the property, printing the previous listing, and running comparable sales in the MLS. You introduce yourself, and the seller immediately states, "I have decided to wait until the market is stronger before selling." Which would be the best response to the seller's objection?
1) "Oh okay. Can I at least leave this information with you? I did some research on your property. Maybe I can come next month and talk to you about relisting?" 2) "Mr. Seller, I wouldn't have bothered you except that I have a buyer very interested in seeing your home. It only takes a few minutes to meet with me. I think together we can make sure that this time you won't be disappointed by having your home go unsold. After all, you wouldn't want to lose out on a possible deal, would you?" 3) [CORRECT ANSWER] "I can understand that listing your home only to have it not sell must have been a frustrating experience for you. I'm also sure that if I was in your situation, I, too, would be tempted to wait before relisting. But if I was able to bring you a buyer today that met your selling goals, would you be interested? How about if we sit down together so I can explain what I can do differently to make this happen for you?" 4) "That's okay. I just stopped buy because I have a buyer that really wants to see your house. I gave them information on it before your listing expired. So, if I brought them to look at your property, you would at least hear an offer, wouldn't you?
Comparable property 1 sold for $190,000 with 1,450 square feet. Comparable property 2 sold for $225,000 with 1,600. Comparable property 3 sold for $205,000 with 1,300 square feet. What is the average selling price per square foot of the comparable properties combined?
1) $141.00 2) [CORRECT ANSWER] $143.00 3) $158.00 4) $131.00 Math: $190,000÷1,450=131.03; $225,000÷1,600=140.625; $205,000÷1,300=157.69; 131.03+140.625+157.69=429.345÷3=143.115 or 143 rounded
Lenders who fail to follow the Equal Credit Opportunity Act can face civil liability for actual and punitive damages of up to how much?
1) $5,000 2) [CORRECT ANSWER] $10,000 3) $15,000 4) $20,000
A home is expected to sell for $640,000. The brokerage is charging 6% commission. The expected other sales cost total $11,000. How much is the estimated Net Proceeds?
1) $686,900.00 2) $601,600.00 3) [CORRECT ANSWER] $590,600.00 4) $593,100.00 Math: $640,000×.06=$38,400;$640,000-$11,000-$38,400=$590,600
Alyvia is renting a property by the YEAR. How much notice does she have to give to cancel her lease?
1) 10 days 2) 15 days 3) 30 days 4) [CORRECT ANSWER] 60 days
A good farm area includes all of the following except which of the following?
1) 125-175 homes 2) Popular selling price range 3) 7% or higher turnover 4) [CORRECT ANSWER] Is already dominated by another real estate agent.
If you need to work with 25 clients and you are able to convert 75% of your leads, how many leads do you need to have?
1) 19 2) [CORRECT ANSWER] 34 3) 6 4) 10
The closing disclosure must be provided to the borrower how many hours before closing?
1) 24 2) 48 3) [CORRECT ANSWER] 72 4) 96
Spending 85% of your time prospecting for sellers, according to the National Association of Realtors® will produce what percentage of buyers?
1) 25% 2) 40% 3) [CORRECT ANSWER] 50% 4) 80%
Mortgage fraud occurs when someone deliberately falsifies information to obtain mortgage financing that would not have been granted otherwise. Which of the following scenarios is definitely NOT mortgage fraud?
1) A buyer changes figures for his income on his W-2 and pay stubs he gives the mortgage broker to increase his income so he will qualify for a higher loan value. 2) Your buyer offers $10,000 over the list price on a property you think is worth $5,000 less than the list price. The mortgage broker sends you a copy of the appraisal which valued the house at $25,000 above the contract price. 3) [CORRECT ANSWER] You are working with a husband and wife and you are under contract on a house. The husband is the president of Hustle Gym and his income is more than enough to qualify for the loan on his own and has great credit. The wife had some medical issues before they were married and has a bunch of student loans that are in repayment. She works part time at Meow and Bark Veterinary Clinic and has terrible credit. The mortgage broker calls you to let you know the wife will not be on the loan. 4) You are working with James and you have found a property he is interested in. You write up an offer for $3,000 lower than the list price and the seller accepts. The buyer is doing a 203(k) loan. He requests that his nephew's company does the appraisal. The appraisal comes back at $11,000 more than the contract price. James asks you to change the sale price in the MLS to the appraised value.
Sara held an open house, she can expect to find which one of the following?
1) A buyer for the house 2) A buyer for another house 3) Someone who wants to sell a house 4) [CORRECT ANSWER] Any of the above.
Per the statute - when a condominium is sold, specific documents must be provided from the seller to the buyer. The re-seller must provide the buyer with 7 different required documents. (Not including new requirements for possible Milestone Inspection or Structural Integrity Reserve Study documents.) Which of the following is not one of those 7 documents?
1) Articles of Incorporation 2) Frequently Asked Questions 3) [CORRECT ANSWER] Board of Directors Contact Information 4) Governance Form
Phone prospecting steps include which of the following?
1) Asking about 3 specific places the person knows other people 2) Asking for contact information for referrals 3) Asking that person to contact the referral first 4) [CORRECT ANSWER] All of the above.
What does working a sphere of influence mean?
1) Being careful not to mix business with friendship. 2) [CORRECT ANSWER] Growing the amount of people in the group. 3) Relying on casual encounters rather than formal attempts to make contact. 4) You can take it for granted that they will think of you when they need help with real estate.
Licensee Betty Sue was arrested for possession of cocaine when she was visiting a friend in Phoenix, Arizona. Which of the following is true?
1) Betty Sue would have to report the violation to Arizona Board of Ethics. 2) Betty Sue would not have to report the violation because it occurred outside of the state of Florida. 3) Betty Sue would automatically have a null and void real estate license. 4) [CORRECT ANSWER] Betty Sue would have to report the violation to the DBPR.
You have shown your buyer's what they say is their dream home. However, it needs some repairs. The house is a foreclosure and has been vacant for almost a year. One bathroom is missing the toilet, the roof has a leak, the kitchen counters are gone and a few other more minor issues. The buyers will qualify for any loan and have more than enough to put down; whatever is required. Which of the following is the best loan for them?
1) Conventional loan 2) VA loan 3) [CORRECT ANSWER] 203K 4) FHA
Calculate Total Monthly Obligation Ratio- Total a buyer's Monthly INSTALLMENT debt already found on the Credit Report: Add the proposed House Payment, Divide Total Monthly Obligations by total of buyer's Monthly Gross. Which of the following is not included in the monthly installment debt?
1) Credit card payments 2) Student loan payments 3) [CORRECT ANSWER] Utility payments 4) Car payments
Steering is described as what?
1) Denied loans in an area based on percentage of ethnic groups. 2) Talking in exaggerating tones about a property. 3) Convincing people to move out of fear values will drop. 4) [CORRECT ANSWER] Using a protected class as a basis to decide where to show someone property.
During a listing appointment, Agent Henry the VII was told by his seller that he didn't want to pay for the use of a title company to sell his property. Which is the best response by the licensee?
1) Do exactly as his seller requested in order to secure the listing. 2) [CORRECT ANSWER] Explain that closing without a title company or attorney would open Henry the VIII up to liability that he could not allow. 3) Take the listing and worry about the closing issue once the home was pending. 4) Tell the seller that it was ok but only the seller, not Henry, could prepare the closing documents.
A condo management company can put a lien against property and force foreclosure when an owner does/does not do what?
1) Doesn't pay their property taxes on time 2) [CORRECT ANSWER] Doesn't pay the condo fees 3) Breaks the lease policy by not getting tenants approved before renting. 4) Breaks the pet policy after 3 written warnings.
Simply repeating what your client has said by making a statement like; "I know it can be very frustrating to have your house listed for 6 months without selling it." This is step one in objection handling and shows the client that you what?
1) Don't care what they think 2) Have had a similar experience 3) [CORRECT ANSWER] Hear and understand what they are saying 4) Have found the "One Thing" keeping them from moving forward
An ethics charge within the National Association of REALTORS® may result in which one of the following?
1) Expulsion from membership with NAR. 2) Mandatory Educations. 3) Letter of warning. 4) [CORRECT ANSWER]Any of the above.
There are programs offered county by county to help buyers cover down payment and closing costs. The terms of repayment, if required, vary from program to program. What is this program referred to as?
1) Federal Aid Programs 2) USD Aid Programs 3) FHA Programs 4) [CORRECT ANSWER] Home Buyer Assistance Programs
Condominium ownership is all of the following except which one?
1) Fee simple ownership 2) Ownership is transferred by deed. 3) Common elements are legally attached and transferred as well. 4) [CORRECT ANSWER] Each owner pays an equal share of the property tax for the whole building.
Buyer Pumpkin Seed received a clear to close from his lender. Which of the following would NOT still need to be completed?
1) Final closing documents drawn up. 2) [CORRECT ANSWER] Appraisal to be completed. 3) Funds wired for the closing. 4) Signing of closing documents.
Working with a buyer is time-consuming. It only makes sense to invest time with a buyer that is not only willing to purchase a home but is able to purchase a home. Asking the buyer about how they will buy the property and how much money they have to put down is important. It's a way to ________ the buyer before you start showing them houses.
1) Get rid of 2) Build rapport 3) [CORRECT ANSWER] Prequalify 4) Assess the needs of
When Agent Goofy did a final walk-through with his buyer, they discovered that the home was flooded. Which is the best course of action?
1) Go ahead and close and worry about the flooding after the fact. 2) [CORRECT ANSWER] Halt the closing. Have the seller repair the cause and any damage caused by the flooding. 3) Agent Goofy should offer to pay for any flood damage. 4) Nothing can be done. The buyer is stuck with a flooded house.
How can an agency relationship be terminated with the buyer?
1) Having the buyer sign a No Brokerage Disclosure. 2) Ignoring the buyer's calls. 3) Sending a letter to terminate the relationship. 4) [CORRECT ANSWER] Have the buyer sign an agreement officially terminating the relationship.
Agent Barnaby had an established transaction brokerage relationship with her seller. When a buyer wanted to look at the house with Barnaby, which of the following is correct?
1) Having the buyer sign a Transition to Transaction Broker Form because Barnaby had already been working with the buyer as a Single Agent. 2) Having Barnaby turn down working with the buyer all together because it is always illegal to represent both the buyer and seller 3) [CORRECT ANSWER] Working with the buyer as a transaction brokerage. 4) Barnaby must get another agent under the same brokerage to work with the buyer to avoid an illegal relationship.
Which would you expect in a property management contract?
1) How much repair reserve will be kept. 2) The expiration date of the contract. 3) The amount of compensation to the property manager. 4) [CORRECT ANSWER]All of the above.
You did a listing presentation for Eric. He seems impressed, but says, "I need to think that price over and I'll let you know what I decide in the morning." You respond by saying, "I understand you want to think it over. So, if you are comfortable with the price, you would be ready to move forward?" Which of the 5 steps did you miss in the objection handling scenario?
1) Identify with the person 2) Isolate the objection 3) [ESTIMATED CORRECT ANSWER] Recognize the Problem 4) All of the above Note: This answer was not clearly defined during the review, and did not have an explanation or correct answer listed
Once the seller and buyer have negotiated repairs, you should do what?
1) Insist on using someone you know to do all repairs. 2) Always make the other party choose the repair person/company. 3) [CORRECT ANSWER] Require the seller or their agent provide you and your seller with paid receipts for all the repairs to ensure that there is no risk of unpaid work becoming attached to the property as a mechanic's lien. 4) Do the re-inspection for your buyers to be able to vouch for the repairs being done.
You are working a deal and you feel like something is off and you become suspicious that some type of mortgage fraud is going on in the deal. Which of the following can happen if you do nothing and move forward with closing the deal?
1) It could result in you being found culpable in the mortgage fraud scheme. 2) Be charged with a second-degree felony if the loan exceeds $100,000. 3) Lose your real estate license. 4) [CORRECT ANSWER] All of the above.
You are advertising that you will give buyers $500 of your commission at closing. Jessica, an agent with another brokerage, calls you and says you can NOT advertise giving buyer's money back at closing. Under RESPA and TILA, who is right and why?
1) Jessica is right, because it is always illegal no matter what. 2) You are right, because it is illegal, unless your broker agrees. You got your broker's approval. 3) [CORRECT ANSWER] You are right, because it is allowed if handled correctly and disclosed to all parties. 4) Jessica is right, because you can only give money back to sellers at closing.
Juan collected $400 a month in child support. Which statement is true when it comes to Juan qualifying for a home loan?
1) Juan should not declare child support because he will look weak to a lender. 2) Child support cannot be used to qualify for a loan. 3) [CORRECT ANSWER] Child support can be used if the borrower can document that the support will last into the future. 4) Child support can only be used if it has been ongoing for ten years in the past.
The licensee may take on legal liability of an inspection by referring the buyer or seller to a specific inspector/inspection company. To help insulate yourself from liability you should do what?
1) Just pick an inspector at random 2) [CORRECT ANSWER] Always give the client a list of at least 3 names 3) Never worry about an inspector's credentials 4) Suggest they use an inspector that gives you a kickback
Which statement is true regarding limited listings?
1) Limited listings are illegal in Florida. 2) Listing is a form of an open listing agreement. 3) Brokers must provide all fiduciary duties to all clients. 4) [CORRECT ANSWER] Buyers and sellers may pay only for specific services contracted for within the agreement.
Assistance with price, advertising, providing signage, inclusion in MLS, inclusion on websites, holding open houses, showing of the property, use of a lockbox, presenting and managing offers, contract negotiations, and transaction closing assistance - are all tasks that what?
1) Must be reviewed with every seller. 2) Are required on every listing agreement. 3) [CORRECT ANSWER] Can be contracted individually on a Limited Brokerage Services Addendum. 4) Can be ignored on most listing agreements.
October was preparing an advertisement for her seller and included the phrase "2.9% interest available." What else does she have to include in the advertisement?
1) Nothing else. 2) How much interest will be paid over the course of the loan. 3) [CORRECT ANSWER] The amount or percentage of the down payment, the terms of repayment, and the annual percentage rate. 4) Just the annual percentage rate.
Sending emails about the real estate market is an example of what?
1) Obsolescent Marketing 2) Peddling 3) Support Activity 4) [CORRECT ANSWER] Lead generating
Stacey hired a real estate licensee to advertise a home for sale in the MLS and to handle the contract. However, the seller planned to handle their own showings and open houses and did not want to pay the agent for those services. Which type of listing agreement would be appropriate?
1) Open listing agreement 2) Net Listing Agreement 3) [CORRECT ANSWER] Limited Listing Agreement 4) Exclusive brokerage listing agreement
Sometimes you will work with a couple that each have different ideas on what they want in a house. Your job is to try to get them to compromise, pick a house and write an offer. You may even feel more like a _____ than a real estate agent.
1) Order taker 2) [CORRECT ANSWER] Counselor 3) Referee 4) Babysitter
Concept that 20% of pointed action produces 80% of results is called what?
1) Pharo's Folly 2) Einstein's Principle 3) [CORRECT ANSWER] Pareto's Principle 4) Newton's Law
A loan officer has done a brief interview with a buyer without verifying documentation such as income. What is this called?
1) Preapproving the buyer. 2) [CORRECT ANSWER] Prequalifying the buyer. 3) Final approval for the buyer. 4) Clear to close.
You are working with a seller and are in contract with a buyer. The appraisal comes back $5,000 below the agreed upon sale price. The buyer wants your seller to reduce the sale price by $6,000. You and your client decide to dispute the appraisal. When reviewing the Comparable properties, you realize they were not best choices. Which of the following is not used to appraise properties?
1) Property located within the same neighborhood will hold the most weight - even "better" than matched properties located outside of the immediate area. 2) Property located within the same school district. 3) Similar properties based on square footage, lot size, condition, age, amenities and improvements. 4) [CORRECT ANSWER] Number of children living in the neighborhood.
Effective objection handling can be broken down into 5 steps. Which group below has the correct 5 steps?
1) Recognize the Problem, Intimidate the Person, Isolate the Objection, Propose an Answer, and Confirm Agreement 2) Recognize the Problem, Intimidate the Person, Isolate the Objection, Give Them Your Opinion, and Confirm Agreement 3) Recognize the Problem, Identify with the Person, Isolate the Objection, Give Them Your Opinion, and Confirm Agreement 4) [CORRECT ANSWER] Recognize the Problem, Identify with the Person, Isolate the Objection, Propose an Answer, and Confirm Agreement
Asking a client, "Other than the broken garage door, is there anything else keeping you from moving forward?" is an example of which step?
1) Recognize the problem 2) Identify with the person 3) [CORRECT ANSWER] Isolate the objection 4) Propose an answer
Evenroo was faced with an ethical decision. All of the following would influence that decision except what?
1) Religious upbringing 2) Community standards 3) Friends' influences 4) [CORRECT ANSWER] Whether you are male or female
Agent Ronald had a customer get mad and leave negative feedback on Google. What is the best response?
1) Reply online about how wrong that person was. 2) [CORRECT ANSWER] Reach out to the person and try to resolve the issue. 3) Get mad and do nothing. 4) Understand that this will sometimes happen.
Getting inspections done on all structures on the property, including major appliances, plumbing, electrical, and the roof _______.
1) Requires having several different inspectors do an inspection. 2) Will result in lengthy reports often overwhelming buyers so you shouldn't let them get everything inspected. 3) Won't find items that pose a risk to the property or to the value of the property. 4) [CORRECT ANSWER] Can usually be done all at once by doing a whole house inspector.
Which of the following is a benefit of a 2-step listing appointment?
1) Requires more time by the agent. 2) [CORRECT ANSWER] Impression of great care taken. 3) Fastest way to gain a listing. 4) Another agent may swoop in and list the property between steps.
Which statement would you advise agent Jerome not use in his listing advertisement due to Fair Housing Laws?
1) Seller will assist with closing costs. 2) Apply for a home loan today. 3) [CORRECT ANSWER] Within walking distance of the Gulf of Mexico. 4) Showings are easy to schedule.
Prospecting for sellers may generate which one of the following?
1) Sellers 2) Buyers 3) Neither Buyers nor Sellers 4) [CORRECT ANSWER] Both A & B
Which individual would you approach to offer property management services?
1) Someone who has suddenly inherited a second home. 2) Someone who has suddenly been transferred by an employer. 3) Someone who has bought a second property. 4) [CORRECT ANSWER] All of the above.
For properties located within close driving distance from each other, schedule the first showing for a full hour. Then _______the next showing by scheduling the remaining showings every______.
1) Start; fifteen minutes. 2) Follow-up; hour 3) [CORRECT ANSWER] Stagger; half an hour 4) Plan; day
You are doing a buyer presentation for Connie. You tell her that, "I work for one of the largest brokerages in town. This means that I have undergone the best training possible to make sure that I am looking out for your best interests!" This is which step in the buyer presentation and is also considered?
1) Step 1; establishes rapport 2) Step 7; closing the deal 3) Step 4; Find out what the buyer wants 4) [CORRECT ANSWER] Step 3; Buyer Feature Benefits
Qualifying as a broker includes all of the following steps except which one?
1) Take a 72-hour Broker Pre-Licensing Course. 2) Have completed 2 years as an active licensee out of the past 5 years- either within or outside of Florida. 3) Submit application to the DBPR. 4) [CORRECT ANSWER] Pass a mutual recognition exam.
Which of the following would result in a null and void license?
1) Taking a post-licensing course as required. 2) Letting a license expire for 3 months past the third renewal period. 3) Letting a license expire 18 months past the third renewal period. 4) [CORRECT ANSWER] A license that has been involuntary inactive for more than two years (after the first renewal period).
The Harrisons were sued for refusing to rent to a person based on the prospective tenant's race. Which Supreme Court case would be invoked as precedence?
1) Tallahassee vs. The Smiths 2) Johnson vs. Davis 3) Rayner vs. Wise 4) [CORRECT ANSWER] Jones vs. Mayer
Agent Rapunzel was out shopping so she didn't have her real estate license on her. She received a request from a buyer to immediately see a home. What should she do?
1) Tell the buyer that she can only show homes with a 24-hour notice. 2) [CORRECT ANSWER] Set the appointment out long enough to pick up her wallet license. 3) Tell the buyer that the house is no longer available so that she doesn't look incompetent. 4) Her duty to the seller requires that she immediately show the home.
Someone could be heard crying for help from an apartment. Which statement is true?
1) The owner cannot enter without the tenant's permission no matter what. 2) [CORRECT ANSWER] Because it is an emergency, the owner may enter. 3) The owner may never enter without the tenant present. 4) The owner must give 14 hours' notice.
Who is liable to a client for a poorly written contract?
1) The sales agent only. 2) The sales agent's broker only. 3) [CORRECT ANSWER] Both the sales agent and their broker. 4) Neither of them.
Tenant Carl wanted to install a wheelchair ramp at the entrance of a home. Which statement is true?
1) The seller can refuse even if the tenant pays for it. 2) This would be viewed as an unreasonable accommodation. 3) Ramps are only required when it is a multi-unit property. 4) [CORRECT ANSWER] This is reasonable so long as the tenant pays for it.
Which of the following is correct about the inspection period?
1) The seller may choose to walk away from the contract for any reason. 2) The buyer may choose to walk away from the contract only if there are significant repairs needed 3) [CORRECT ANSWER] The buyer may choose to walk away from the contract for any reason. 4) The seller may choose to walk away from the contract only if there are significant repairs needed
What is the purpose of the estoppel certificate prior to closing on a property with a homeowner's association?
1) This is part of the loan application due by the buyer. 2) [CORRECT ANSWER] So that any unpaid fees due by the seller for the HOA can be accounted for within the closing figures. 3) So that the buyer broker can collect a commission on the sale. 4) There is none.
When would an agency disclosure not have to be provided?
1) To work with a buyer as a single agent. 2) To work with a seller as a single agent. 3) [CORRECT ANSWER] With buyers entering an open house. 4) To work with a buyer or seller in a no agency capacity.
Clara Barton wanted to increase brand loyalty. Where should she share her company policies?
1) Websites. 2) Marketing brochures. 3) Brochures. 4) [CORRECT ANSWER] All of the above.
When is the effective date of a contract defined as?
1) When the listing agent reviews it with the seller. 2) When the buyer signs the contract. 3) When the listing agent gets the escrow deposit. 4) [CORRECT ANSWER] When the last party signs and initials the contract.
If your broker keeps 50% of your commission and you want to make $200,000 in a year, how much commission do you have to bring in?
1) [CORRECT ANSWER] $400,000 2) $350,000 3) $250,000 4) $300,000 Math: $200,000÷.50=$400,000
If you have a closing percentage of 80%, how many clients do you need to work with to close 30 deals?
1) [CORRECT ANSWER] 38 2) 24 3) 45 4) 61
Brokerages must maintain business records for _____ years and _____ in an electronic format.
1) [CORRECT ANSWER] 5; can be electronic 2) 5; cannot be 3) 7; can be 4) 7; cannot be
Which type of loan has a 3-day right of rescission?
1) [CORRECT ANSWER] A refinance mortgage. 2) Purchase of a resale home. 3) New construction. 4) There is never a right of rescission in real estate.
Buyer Betty was buying a home in a flood zone and was also securing a loan. Which is a true statement?
1) [CORRECT ANSWER] An elevation certificate will be required in order for an insurance quote and binder to be provided. 2) Buyer Betty can close on the house and worry about homeowner's insurance later. 3) An existing elevation certificate is never acceptable. 4) Even if a loan wasn't being secured on the property, insurance would have to be in place to close.
When a buyer requested to see a home that was advertised as having a $5,000 rebate from a builder and is told that that deal sold out, what is this an example of?
1) [CORRECT ANSWER] Bait and switch 2) Bad luck for the buyer 3) Lawful advertising 4) Good advertising
Eye contact during a conversation is an example of what?
1) [CORRECT ANSWER] Body language 2) Writing skills 3) Verbalizing 4) Listening
To clearly create standards of behavior within a company, which of the following would be a good idea?
1) [CORRECT ANSWER] Create company manuals. 2) Provide mandatory ethics training. 3) Set up anonymous reporting system of other employee's bad behavior. 4) All of the above.
Industrial property management involves which one of the following?
1) [CORRECT ANSWER] Factory building rentals. 2) Long term house rentals. 3) Vacation house rentals. 4) Shopping center rentals.
Which of the following statements is true regarding license renewal?
1) [CORRECT ANSWER] If the licensee fails to renew the license by the first renewal term, the licensee cannot recover it. 2) Past the first renewal period; if the license has expired the licensee would have to apply for a new license. 3) Past the first renewal period; if more than 12 months has passed but less than 24 months, then the licensee is required to take 14 hours of continuing education. 4) Past the first renewal period, if the licensee fails to renew the license and allows 24 months to pass, the licensee must take a special 28-hour course.
Norman, your buyer, has a contract on a property. You wrote the deal with the contingency that Norman would purchase the house using a VA loan. When the loan failed to fund resulting in the loss of the deal, what would most likely happen to Norman's $5,000 earnest money deposit?
1) [CORRECT ANSWER] It would be returned to Norman as it was protected by the financing contingency. 2) Be split between the buyer and selling brokers 3) Be immediately deposited with the clerk of the court. 4) Be given to the seller for lost marketing time.
Which of the following activities is an example of technical knowledge?
1) [CORRECT ANSWER] Learning how to conduct a CMA 2) Understanding a buyer's market 3) Being able to attract a buyer to look at a house. 4) Being able to attract a seller to list a home for sale with you.
When a property manager interviews three landscape companies to pick the best provider at the best value, this describes what type of property management task?
1) [CORRECT ANSWER] Maximizing profits. 2) Acting as a rental agent. 3) Analyzing market conditions. 4) Handling escrow deposits.
Which of the following is NOT a triggering term?
1) [CORRECT ANSWER] No down payment. 2) 25% down 3) 90% financing 4) Monthly payments less than $850.
Which of the following is the correct formula for HER (housing expense ratio)?
1) [CORRECT ANSWER] PITI+MIP divide by monthly gross income=HER 2) PITI+TOR divide by monthly gross income=HER 3) TOR+MIP divide by monthly gross income=HER 4) None of the above.
The whole house inspector can send copies of the report to the buyer and the buyer's agent. Then the buyer's agent should do what?
1) [CORRECT ANSWER] Should include the parts of the reports detailing the repairs that the buyer wants addressed for the deal to close. 2) Should send a copy immediately to the seller's agent. 3) Should not review the report with their buyer. 4) Should send a copy to the seller without asking the buyer for permission.
Agent Jasmine took a different job outside of real estate for a while because of lack of sales. She wants to eventually return to her real estate job. Which of the following should she NOT do?
1) [CORRECT ANSWER] Stop renewing her license. 2) Keep up with her continuing education. 3) Put her license in current inactive status. 4) Keep paying her license renewal fees.
When you begin acting on behalf of a buyer; you are automatically obligated, under Florida statute, to uphold duties to the buyer in the capacity of a what?
1) [CORRECT ANSWER] Transaction broker 2) Listing agent 3) Single agent 4) Buyer's agent
You just finished a listing presentation and the client has agreed to sign the Listing Contract. During your conversation, the client tells you they will be taking the foyer chandelier with them because it was a present from their deceased grandmother. You forget to exclude it in the purchase agreement. Two months later, you get an offer and the seller agrees. The deal closes. The buyer moves in and realizes the chandelier is missing. The buyer's agent contacts you to complain. Which of the following is most likely to happen?
1) [CORRECT ANSWER] You are liable to the buyer for the loss of the chandelier. 2) The seller must reinstall the chandelier. 3) You just tell the buyer's agent you meant to let them know it was excluded. 4) The buyer's agent is liable to the buyer for the loss of the chandelier.
Which statement is true about becoming involved in a community group?
1) [CORRECT ANSWER] Your primary focus should be on the purpose of the group with prospecting a secondary focus. 2) This is a waste of time. 3) Since it is a group activity, relationships do not matter. 4) Going to the group once is enough; this is a prospecting success.
Property located in qualifying rural areas may be financed at 100% with no money down using what type of loan?
1) an FHA Loan 2) [CORRECT ANSWER] the USDA Guaranteed Rural Housing Loan 3) Conventional Loan 4) Any of the above
Having all buyers sign a statement stating the licensee advised the buyer that inspections are recommended _______.
1) means you don't need to get your broker to sign off on the fact that the buyer does not want an inspection. 2) does nothing. If the buyer chooses not to do an inspection that is their right and it cannot come back to you for any repairs that may come up. 3) [CORRECT ANSWER] helps insulate you and your broker from liability if a buyer chooses not to get an inspection. 4) is unnecessary, because you are required to have all buyers get an inspection done.
During the inspection period, how can a buyer walk away from the deal?
1) only if there was an inspection done that shows any repairs are needed. 2) The buyer must have an inspection done to be able to walk away from the contract. 3) or sue the seller for "specific performance" to make them do the repairs found during an inspection 4) [CORRECT ANSWER] without penalty for any reason
