Florida Real Estate Exam Practice Exam Qestions
Math: Karl's house has assessed for $200,000. The millage rate for the school district is 9 mills; the millage rate for the city is 8.5 mills; and the millage rate for the county is 7.4 mills. How much does Karl, who is blind, owe for city and county property taxes? Round to the nearest dollar.
$2,377 - Taxable value x Tax rate = Annual property taxes due. Find taxable value first: Assessed value - Homestead exemptions = Taxable value. That's $200,000 - $50,000 - $500 = $149,500. Add the mills for city and county: 8.5 mills + 7.4 mills = 15.9 mills = 0.0159. $149,500 x 0.0159 = $2,377.05. Round to the nearest dollar to get $2,377.
Math: Jeremy has a monthly income of $4,000. His payment-to-income ratio is 20%. How much is his monthly payment?
$800 - A payment-to-income ratio of 20% is equal to 0.20. So, $4,000 multiplied by 0.20 = $800.
Math: A tax bill cost $10,092. For proration purposes, what is the monthly tax expense?
$841 - The tax bill needs to be divided by 12, giving you a monthly expense of $841.
Math: Hydra purchases a house for $300,000. A year later, she sells her house for $250,000. What is Hydra's percentage loss?
17% ~$300,000 - $250,000 = $50,000 (that's the "part"). ~$50,000 ÷ $300,000 = 0.17, or 17% loss.
Math: What is the vacancy rate of an apartment complex that has 150 units, 3 of which are unoccupied?
2%
What is an example of a Business Risk?
A small bakery just can't quite get enough traction through its word of mouth referrals to make a profit, despite a promising business plan Business risk is when a business's profits aren't as high as predicted.
You are doing a CMA on a four-bedroom, three-bath, five-year old property. Choose the BEST comp for that property from this list:
A three-bedroom, three-bath, ten-year-old property located a quarter mile away that sold four months ago
Leslie is a sales associate in Miami. Mimi is Leslie's sister-in-law. Matt is a prospect that Leslie met for the first time this morning. Carlos is Leslie's longtime paddle board buddy. And Jaselle is a former client who bought her first home with Leslie's help two years ago. Evaluate what you now know and choose the statement that BEST describes which of these people is least likely to end up in an implied agency relationship with Leslie.
Because Matt has no previous experience or relationship of any kind with Leslie, he is the least likely to end up in an implied agency relationship with her. - Under certain circumstances, the courts have been know to rule that family, friends, and even former customers and clients enjoy a presumed implied agency relationship because of previous or ongoing relationships with you.
The sales associate Robin was working with to sell her condo died of a heart attack just two days after Robin signed a listing agreement and had her property publicized on the local multiple listings service. Is Robin now free to list her property with whomever she pleases?
Because agency relationships are created at the broker level, the death of Robin's sales associate does NOT release her from the listing agreement.
Two of the three authorized relationships in Florida residential real estate requires a written brokerage relationship disclosure notice. One does not. Analyze what you know about each relationship type and choose the answer you thinks identifies which one that is and why the disclosure is not required.
Because transaction brokerage is the presumed broker relationship in Florida, there is no need to disclose it.
A sales associate needs to direct their client to a few sources of third-party financing. You tell the sales associate to look into:
Commercial banks, savings associations, and credit unions - Many clients will need third-party financing which can come from commercial banks, savings associations, credit unions, and mortgage brokerage companies.
This word describes when certain infrastructure must be in place before any new development is permitted:
Concurrency - Concurrency is a provision from Florida's Growth Policy Act requiring that certain infrastructure (sanitary sewers, potable water, and waste treatment facilities) be in place before any new development is permitted.
A sales associate is working with a buyer and a seller who are arguing about how their escrowed money should be disbursed. The sales associate is unsure of what to do so they go to their broker and tell them about the buyer's and seller's opposing, unresolvable:
Conflicting Demands - Conflicting demands are opposing, unresolvable demands made by the buyer and seller in a transaction regarding escrowed property disbursement.
You're the listing agent meeting with the seller of a renovated 1969 home. The seller asks if they will need to give a lead-based disclosure to buyers, considering its recent renovation and great condition. You should tell the seller that a lead-based paint disclosure:
Disclosure is required for all residences built prior to 1978, regardless of renovations
Example of a fee simple condition subsequent estate would be:
Drew inherited her Uncle Mansion but must keep the gas lamps filled/running at all times. If she fails, the uncle's heirs can sue and reclaim the estate. - Because Drew's estate comes with a condition, it's a defeasible fee. It doesn't revert automatically if she violates the condition—the heirs of the original owner must sue to get the rights back. So therefore, she has a fee simple condition subsequent estate.
Alana rents a condo from her landlord. She doesn't have an official lease, but she pays her landlord rent every month. Which of these terms best describes her estate in the condo?
Estate At Will - She has an estate at will, or in official Florida parlance, a tenancy without specific terms.
Sales Associate Ira has entered into a no brokerage relationship with Buyer Gwen. The home that Gwen is looking at is in an area where many houses are known to have issues with radon gas seeping in through the basement. Ira knows that the seller had it tested and radon was detected but in such small levels that the seller chose not to do anything about it. Evaluate the responsibilities of the no brokerage relationship and the particulars of this scenario and select the statement that BEST describes Ira's duties to Gwen.
Even though the no brokerage relationship is one of nonrepresentation, Ira still has some duties to perform, including the disclosure of facts that are not readily observable that could materially affect the value of a property. - Ira's awareness of radon gas in the area where the house is located could affect property value and must be disclosed.
A contract has been signed. Both parties have obligations they need to fulfill before the closing, which happens in two weeks. In what status is the contract?
Executory - During the period between contract signing and the closing, the contract is executory, as parties have yet to fulfill their duties.
Kate doesn't fill out all of her license renewal application. What is the likely consequence?
FREC will deny the application but allow Kate to apply again
Buyer Pete insists that, in multiple conversations, the seller agreed to leave all kitchen appliances in the house. The seller doesn't recall it that way, and the contract makes no mention of this. Which of the following legal concepts will likely come into play here if this dispute becomes a lawsuit?
Four Corners - "Four corners" refers to the legal concept that when a court interprets a contract, it will only consider that which is contained within the "four corners" of the document. It will not look beyond the contract's pages and consider additional terms.
A property manager handles a variety of jobs on behalf of the property owner, including the ongoing responsibility of maintenance, rent collection, and signing new tenants to lease contracts. Based on this, determine which of the following choices offers the classification(s) of agency most appropriate to the property manager job description.
General Agency - General agency is the appropriate classification of agency for property managers and other positions that have a broad range of ongoing responsibilities within a specific concern or objective and that require the ability to bind the client, as is the case with rental agreements.
You want to enter into a partnership in which you share an equal amount of personal responsibility for the financial liabilities and obligations of the business as all the other partners. It would be a good idea for you to enter into a:
General Partnership - With general partnerships, each member equally assumes unlimited personal responsibility for the financial liabilities and obligations of the business.
When an agent is held to the obligations of an agency relationship, despite the fact that no compensation is offered or paid, they are providing:
Gratuitous Agency
Target marketing involves agents utilizing a farm area. Analyze which of the following describes an agent utilizing a farm area:
Gretta focuses on the south side of town where there are a lot of apartment buildings and condos. - A farm area is a specific area a real estate associate chooses to specialize and become an expert in. Farm areas can look different. Maybe it's a certain area of town or maybe it's an area with only industrial properties.
A tenant has recently signed a lease for a new commercial property. According to the lease terms, the tenant pays a monthly rent, and the landlord covers maintenance and other property expenses. Name what kind of lease this tenant has.
Gross Lease - This lease is a gross lease, which means that there is just one flat payment, and the landlord covers all other expenses.
In Florida, listing agreements are not promulgated. Does that impact whether or not the agreement would be considered a valid form of express agency? Explain your answer.
It has no impact because the written agreement would still be an explicit appointment of one party to represent another. - That listing agreements are not promulgated has no impact on whether or not they would be considered a written form of express agency. Typically, a listing agreement, promulgated or not, will contain information regarding the start and expiration dates of the representation, the duties of each party, and expectations for compensation — all of which combine to serve as an explicit appointment of one party to represent another.
Jamie, a buyer's agent, is pretty sure that the listing agent will receive multiple offers on a home. Should Jamie include an escalation clause in his offer?
Maybe. A multiple offer situation does suggest that an escalation clause might be useful. - Don't use escalation clauses unless you're pretty certain that there will be multiple offers. If the property is not as hot as your buyer thought, you've exposed their upper limit (and therefore weakened their bargaining power) for no reason.
Married couple Rick and Jonas have a home in Sarasota. It's a five-bed, five-bath, 4,000-square foot single-family home on an acre of land, and it's their primary residence. Can they homestead the property? Why or why not?
No, because it's on an acre of land and the maximum amount of land you can homestead in a city is 0.5 acres. - To qualify for a homestead exemption, properties must be a primary residence, and no larger than 0.5 acres in a city or 160 acres outside of a city.
A tenant has to leave the country to take care of an ill parent and is out of town for almost three weeks. She tells her landlord about the absence and pays her rent on time while she is gone. While she is absent, the landlord enters the premise without her consent because he thinks it's a good time to make sure she takes adequate care of the unit. Are the landlord's actions legal?
No, if the rent is current and the tenant notifies the landlord of an intended absence, then the landlord may enter only with the consent of the tenant or for the protection or preservation of the premises. - Under the Florida Residential Landlord and Tenant Act
Seller Romeo and Buyer Juliet have finally agreed in principle to all the conditions and terms of a sales contract for Romeo's palatial pad. For a while there, it appeared that Juliet's request for an inclusion of a mother-in-law suit was going to be a deal-breaker since Juliet said it was a hill she was willing to die on. But, once they settled that point of contention, everything else fell into place. Evaluate the scenario, and choose the essential element of a contract that is being illustrated the most.
Offer and Acceptance
A tenant does not pay rent on the required day. The landlord sends them a written notice stating that they must pay the rent within a certain number of business days, or the landlord will start eviction proceedings. What is this number of days?
THREE ( 3 ) - Under the Florida Residential Landlord and Tenant Act, the landlord must give the tenant written notice demanding either payment of rent within three business days or else the tenant will lose possession of the premise (i.e., be evicted). The written notice can be mailed, personally delivered, or if the tenant is absent from the premises, left at the residence. The three-day time limit begins at the date of notice delivery and does not include Saturday, Sunday, or legal holidays.
Tammy has a real estate undergrad degree from a four-year institution. She has been an active Florida sales associate for the last three years. Can Tammy qualify to apply for a FL brokers license?
Tammy is the a qualified applicant. - Attorneys still need to complete Course II. Applicants must have been active sales associates for 24 months over the last five years. And Wisconsin is not a mutual recognition state, so Tallulah would need to take Course II and complete the 45-hour post-licensing education course.
The Brokerage Relationship Disclosure Act does not specify a need for a written disclosure for a transaction broker. Why is that?
The Act declares a presumption of transaction brokerage - The Brokerage Relationship Disclosure Act does not specify a need for a written disclosure for a transaction broker because the Act declares a presumption of transaction brokerage, meaning that, unless disclosed in writing to be otherwise, the relationship between a party and a licensee is one of transaction brokerage. And if that relationship is presumed, it need not be disclosed.
Which of these is a document that provides a detailed list of each party's expenses at closing?
The Closing Disclosure - The Closing Disclosure is a document that provides a detailed list of each party's expenses. It must be delivered to the buyer at least 3 days before closing.
Tenant Tiffany receives an eviction notice from her landlord. However, she refuses to leave. What is the NEXT step the landlord should take?
The landlord should file a complaint for eviction in the court of the county where the dwelling is located. Typically, the sheriff's department delivers the complaint to the tenant.
A tenant is considering a triple net lease but they don't fully understand what it entails. You tell them they'll be responsible for several fees, such as:
Triple net means rent plus taxes, insurance, and maintenance.
Which of these best describes a scenario that would lead to a construction lien?
A worker has not been paid for work done on a property - A mechanic's lien is a type of involuntary, specific lien that can be imposed upon a property if the owner fails to pay a contractor for any work on the property
Cammy takes out a fully-amortized, fixed-rate loan for her new vacation home on Lake Placid. When Cammy's mother asks her to fly to Singapore for their family vacation, Cammy tells her mother she doesn't know if she can afford it, as her loan payments could fluctuate. Analyze if Cammy is correct.
Cammy has a fully-amortized, fixed-rate loan, so she knows exactly how much her loan payments will be every month.
Candi offers rental information for a fee. She does so casually and usually does not provide people with a receipt. Is Candi doing anything wrong?
Candi is legally obligated to provide a receipt - Sales associates who offer rental information for a fee need to provide a receipt.
Chapter 61J2 of the Florida Administrative Code contains FREC's regulations for license holders in Florida. These regulations are based on which portion of Florida's statutes?
Chapter 475 - Chapter 475 is the law on which Chapter 61J2 of the F.A.C. is based. The statute is the law passed by the legislature, the administrative code is the set of regulations created by the FREC.
Realtor® Dani just acquired a listing for a luxury South Beach condo that appears to tick every box on the wish list of a buyer that she's been working with for the past couple of weeks. It's much nicer than anything that has come up on the MLS in months. Given this set of facts, analyze the situation and choose the answer that describes what Dani should do next.
Dani should list the property on the MLS, per her obligations, but make arrangements to show the property to her buyer as soon as possible
An appraiser is putting a value on a business. To do so, she uses the business's cap rate to take the present value of a business's assets and the income it produces to predict a future value. What valuation method is she most likely using?
Income Analysis - She's using the current income to predict future value.
A sales associate specializes in commercial sales. They should have expert knowledge of:
Increasing cash flow - Commercial sale specializations require a knowledge of income-producing properties, cash flow, and retail stores.
There has been a lot of new construction in Ace City. New apartment complexes have been opening all over town. Assuming that demand remains stable, infer the effect that this will have on rent prices.
Rent rates should go down now that there is more supply in relation to demand. - A rising supply paired with stable demand creates a renter's market.
The FREC board must be made up of:
Seven ( 7 ) members: who shall be appointed by the Governor, subject to confirmation by the Senate. - Four ( 4 ) members must be licensed brokers, each of whom has held an active license for the 5 years preceding appointment; - One ( 1 ) member must be a licensed broker or a licensed sales associate who has held an active license for the 2 years preceding appointment; - two ( 2 ) members must be of the public At least one member of the commission must be 60 years of age or older.
Math: Geraldo bought a home for $375,000. He put down $75,000. Seven years later, the home is worth $425,000 and he has paid $12,000 of his mortgage principal. What is Geraldo's equity in the home?
$137,000 - His original mortgage balance was 375,000 - 75,000 = 300,000. He then paid another 12,000 of that, so 300,000 - 12,000 = 288,000 is the current loan balance. Subtract the loan balance from the current value to get the equity. 425,000 - 288,000 = 137,000.
Math: A broker complied with an EDO. However, the seller sued the broker, and won. In the judgement, the broker was ordered to pay $7,000 (actual damages), $4,000 (punitive damages), and court costs ($3,000). The seller's attorney fees were $2,000. The broker's attorney fees were also $2,000. The broker made a claim to the Recovery Fund, which agreed to reimburse. What is the maximum amount the Fund will reimburse?
$14,000 The Recovery Fund would reimburse up to $14,000: $7,000 (actual damages) + courts costs ($3,000) + seller's attorney fees (because he won; $2,000) + broker's attorney fees ($2,000). Remember that the fund never covers punitive damages.
Math: A building receives $100,000 in rental income in a year. The unoccupied units would bring in an additional $40,000 if they were occupied. What is the potential gross income of the building?
$140,000 - $100,000 received income + $40,000 potential income...
Math: Jeff is selling his 1,100-square-foot house for $214,000. What's the price per square foot?
$194.55 ~ 214,000 / 1,100 = 194.55
Math: Jaselle took out an amortized loan of $440,000 with a 6% interest rate. Her monthly payment is $2,638.02. How much will she pay in interest on her first monthly payment?
$2,200 - The annual interest on $440,000 is $26,400. So, that number divided by 12 gives you a monthly interest payment of $2,200.
Math: Jasper owns a home that is worth $289,000. He has a mortgage balance of $53,000. Calculate his equity in the property.
$236,000 ~ 289,000 - 53,000 = 236,000.
Math: A property cost $500,000 to build. It was built 20 years ago, and has 30 years of useful life remaining. The land on which it was built is valued at $100,000. What is the value of this property using the cost approach?
$400,000 - Calculate depreciation percentage: 20 divided by (20+30) which is 0.4. Calculate the property value: from the property cost ($500,000) subtract the depreciation amount (500,000 x 0.4) and add land value ($100,000). The math looks like 500,000 - 200,000 + 100,000. The property value is $400,000.
Math: Savannah took out a $500,000, 30-year amortized loan. Her monthly payment is $2,500. How much will she end up paying in interest after the 30 years of paying the loan?
$400,000 Savannah will end up paying $400,000 in interest over the life of the loan. ~ 500,000 / 30 (years) = 16,666.67 ~ 16,666.67 / 12 (months) = 1,388.89 ~ Find Interest: 2,500 (Mo. Payment) - 1,388.89 (principal) = 1,111 ~ 1,111 * 12Mo. = 13,332 ~ 13,332 * 30Yr. = 399,960 (round up to 400k)
Math: Bella took out a $300,000, 30-year amortized mortgage with an interest of 7.3%. Her monthly payment is $2,056. If she pays the exact monthly payment every month, how much money in interest will she end up paying after 30 years?
$440,160 - To find the amount paid in interest, just subtract the loan amount from the total of all 360 payments. For this loan, Bella will end up paying $440,160 in interest. 2 Ways to Find: 1. 2056 * 12mo = 24,672/yr ~ 24,672/yr * 30yr = 740,160 ~ 740,160 - 300,000 = 440,160 2. 2,056 * 360 (mo payments in 30yr) = 740,160 ~ 740,160 - 300,000 = 440,160
Math: Monty took out a mortgage loan for $266,800. He paid two points. What was the total cost of his points? $5,336 $8004 $2,668 $26,680 Submit answer
$5,336 - Each point = .01 or Each point is 1% of the cost of the loan, so each point costs $2,668. 2,668 x 2 = 5,336. -OR .02 * 266,800 = $5,336
Math: A building has a NOI of $250,000 and a cap rate of 4%. Using the income approach, what is the value of the building? - $6,250,000 - $5,000,000 - $2,450,000 - $4,200,000
$6,250,000 The NOI divided by the 4% cap rates gives you a value of $6,250,000.
Math: Leandro's bank requires at least a 75% LTV ratio to make a loan. He is looking at a home that costs $280,000. What is the minimum down payment he would need?
$70,000 280,000 x 0.75 = 210,000. The most the bank would finance is 210,000. 275,000 - 210,000 = 70,000. He needs to put down at least $65,000.
Math: Carina has a non-amortizing loan balance of $225,000. Her interest rate is 4.25%. How much will she owe next month?
$796.88 ~ 225,000 x 0.0425 = 9.562.50. This is her annual interest. ~Divide by 12 to get: 9,562.50 ÷ 12 = 796.88
Math: Omar's property measures 300' x 217'. Knowing this, how many acres is the lot?
1.49 acres - Identify the square footage of the land first, then divide the square footage by 43,560 feet. The lot is 1.49 acres.
Marianne, a sales associates, receives a license suspension for the maximum amount of time. For how long is her license suspended?
10 years - A license can be suspended for up to 10 years by FREC.
Math: You purchase a two-acre lot at $90,000 per acre. If you subdivide the lot into four lots and sell each of those lots for $40,000, what will your percentage of profit or loss be?
11% loss - You paid $180,000 for the lot. (2 acres x $90,000 = $180,000.) After subdividing and selling each lot for $40,000, you make $160,000 ($40,000 x 4 = $160,000). You lose $20,000 on the sale ($160,000 - $180,000 = -$20,000). Part ÷ Total = Percentage, so $20,000 ÷ $180,000 = 0.11, or 11% loss.
Williams Family Farms purchased 4 sections of land in a township. How many acres did they buy?
2,560 - One section equals 640 acres, so 4 sections of land in a township add up to 2,560 acres
Math: Ozzy bought a house. He put down $85,000. The purchase price of the house was $320,000. What percentage did Ozzy put down?
26.5% ~ 85,000 ÷ 320,000 = 0.265, or 26.5%
Addie is buying a condo from a former owner. How long after receiving her condo documents and signing the contract does she have to cancel the contract?
3 days - There's a three-day cancellation period with resale condos.
Math: An agent made $15,000 on a $400,000 sale of a home. What was their commission rate?
3.75% - To find the commission rate, we need to divide $15,000 by $400,000. This equals 0.0375. Convert this to a percentage, which is 3.75%.
Math: Larissa owns a property worth $640,000. She owes the bank $430,000. How much equity does she have in the property?
33% ~ She owns $210,000 of the property (640,000 - 430,000). ~ 210,000 ÷ 640,000 = 0.328, or 33%
How many monthly payments will be made in a 30-year mortgage?
360
Math: A town has a total assessed value of $60,000,000 and total exemptions of $9,000,000. If the town's budget is $225,000, what is its tax rate?
4.4 Mills - Tax requirement ÷ Tax base = Tax rate. Find the tax base first, which is Total assessed value - Total exemptions = Tax base. That's $60,000,000 - $9,000,000 = $51,000,000. So, 225,000 ÷ $51,000,000 = 0.0044 = 4.4 mills
Math: Sarah's living room is 28' x 15'. About how many square feet of carpet will it take to cover the living room floor?
420sq.ft.
What is 0.546 in percentage form?
54.6%
What is the loan-to-value ratio of a loan of $144,000 on a property sold for $180,000?
80% - $144,000 divided by $180,000 equals 80%.
Math: Camila bought a home. The purchase price was $850,000. Her loan amount was $730,000. Calculate her LTV ratio, rounded to the nearest percent.
86% - 730,000 ÷ 850,000 = 0.858 or 86%
Zora is purchasing a property in Florida. When she closes, the seller will transfer her shares of a corporation. She will also be given a proprietary lease to the unit she will live in. What kind of property is Zora most likely purchasing?
A Co-Op - Because she is buying shares in a corporation (and getting a proprietary lease for her unit), she is most likely buying a co-op.
A Florida landlord places all of the security deposits he collects into his business account, and then posts a surety bond which covers the total amount of deposits. This is an example of:
A legal practice under the Florida Residential Landlord and Tenant Act
Two members of FREC are deliberating about whether or not there is enough evidence for a formal complaint to be filed against a license holder. These two members of FREC are:
A probable-cause panel
Mutual agreement, revocation, renunciation, and breach of agreement are all causes for termination of agency due to:
Acts of the Parties
Hila wants to remove her kitchen cabinets so she can take them with her when she moves. If Hila does this, she will be performing the act of?
Adoption
An over-anxious license holder named Jenny knew her neighbor Tom was considering selling his house. Although Tom hadn't signed a representation agreement with Jenny, he also didn't object when Jenny brought clients by to see his place. Things got ugly when some buyers made an offer on Tom's house only to hear it really wasn't for sale. The buyers, who missed out on the opportunity to make an offer on another home because of their interest in Tom's place, sued both Tom and Jenny. Evaluate this scenario and choose the form of agency that might used as the legal basis for the buyers' lawsuit?
Agency by Estoppel - Agency by estoppel is created AFTER the actions giving the impression of agency have already occurred. It is used to create legal accountability for the agent or the principal responsible for creating the impression of agency. As a matter of law, the principal or agent is "estopped" from going back and trying to claim (after the fact) that agency never existed. Further, the agent and/or the principal can be held liable for financial injury to a third party.
Ivory, a seller, is nervous about her valuation product being accurate. She wants it to be highly regulated. As her agent, you tell her that in Florida:
"Appraisals must conform to USPAP standards." - Appraisals must conform to USPAP standards while CMAs and BPOs do not.
The following advertising description may be a violation of fair housing law:
"Brand new condos for young, single living. No children allowed!" - It is in violation of the Fair Housing Act to discriminate against those with children, unless it is a specified senior living community.
According to Florida statute, a customer may or may not be represented by a real estate licensee in an authorized brokerage relationship. That quote contains several pieces of information. If a licensee is in an authorized relationship as described in the quoted statute, what can you deduce the licensee's role to be? - agent - customer - client - fiduciary
Agent - The quote is describing a customer's ability to be represented or not by a licensee in an authorized brokerage relationship. You can deduce from the fact that we are talking about customers, as opposed to clients, that where representation exists, the licensee is operating as an agent and NOT a fiduciary. Only clients get represented by fiduciaries.
Uncle Buck would love to build a house on a quiet, country, five-acre lot he saw for sale. Right now, there's nothing on that lot but native grasses, deer, squirrels, and wild black berries along the bank of a stream that cuts through the property. Broker Shirley will work with Uncle Buck as her buyer-client and get in touch with the listing broker to set up a showing. Analyze what you now know about the property and choose the statement that accurately describes what needs to happen.
Agent Shirley should provide Buck with a Single Agent Notice Disclosure -This scenario is describing a residential transaction. You know this because agricultural acreage less than 10 acres is considered residential. And unimproved residential property intended for the use of four units or fewer is also considered residential. And since Uncle Buck is referred as Shirley's client to be, that means they will be entering into a fiduciary-client relationship, which is what a single agent relationship provides. A single agent relationship in a residential transaction requires a brokerage relationship notice disclosure.
Some sales associates will need to have expert knowledge of the economic challenges some farms may have. These sales associates likely specialize in: commercial sales regional sales agricultural sales municipal sales
Agricultural Sales Licensees who specialize in agricultural sales will need to stay on top of the challenges associated with farm ownership.
Bradley and Alejandra are sales associates. They are making paper brochures to advertise their brokerage. Bradley says they must include the brokerage's phone number, by law. Alejandra states they don't need to include it and can just provide the email address. Evaluate who is correct.
Alejandra is correct. - In Florida, advertisements that are not internet advertisements do not need to include phone numbers.
The following situation BEST describes a buyer assuming a mortgage:
Alice took over the seller's mortgage payments when the bought her home. The lender approved the transfer and Alice makes payments directly to the lender.
What did the Fair Housing Amendment Act of 1988 do?
Amended the Fair Housing Act to add disability and family status to the protected classes - The Fair Housing Amendment Act of 1988 amended the Fair Housing Act to add disability and family status to the protected classes.
Raul is buying a home that is part of an HOA. His lender wants to verify that there are no liens from the HOA on the property. What would they most likely request from the HOA?
An Estoppel Certificate. - An estoppel certificate (or estoppel letter) is used to verify the loan amount in an assumption or verify that there are no liens from an HOA.
Broker Mary wants to enter into a listing agreement with Seller Tina that will be valid, enforceable, and that will allow Mary to publish the listing in the local MLS. Evaluate Mary's wish list and choose the best option for her situation.
An Express Written Contract - While you can engage in implied contracts as a real estate agent, a best practice is to avoid it. Additionally, most local realtor® associations require written agency agreements to be in place before the MLS can be used to market a property.
Analyze the following scenarios. Which does NOT violate the federal Fair Housing Act? - An agent backs out of a deal once he learns that his white customer has a Black wife. - An agent suggests that a group of female roommates "would be more comfortable" in a certain part of town, and doesn't show them other properties. - An agent refuses to rent a house to a family with eight children. - An agent refuses to show an apartment to a transgender woman because she is uncomfortable with the woman's gender identity.
An agent refuses to show an apartment to a transgender woman because she is uncomfortable with the woman's gender identity. - Gender identity is not protected under the federal Fair Housing Act, although encouragingly, some states and cities offer this protection. The other answer choices do reflect a protected class.
Broker Mary wants to enter into a listing agreement with Seller Tina that will be valid, enforceable, and that will allow Mary to publish the listing in the local MLS. Evaluate Mary's wish list and choose the best option for her situation.
An express written contract - While you can engage in implied contracts as a real estate agent, a best practice is to avoid it. Additionally, most local realtor® associations require written agency agreements to be in place before the MLS can be used to market a property.
Which of these situations demonstrates the principle of anticipation?
An investor buys above market because they know an area is rapidly increasing in value. - The principle of anticipation is the idea that the present value of a property is affected by the anticipated income or utility.
What is a household?
Any person or group of people occupying a separate housing space
Which of the following would NOT typically be prorated at closing? - prepaid taxes - interest on an assumed loan - rents collected in advance - appraisal fees
Appraisal Fees Appraisal fees will typically be paid by the buyer at closing.
FHA loans are usually funded by:
Approved Lenders
Darla is suing Arlo for specific performance. If she is successful, what will happen
Arlo will be required to perform according to the terms of the contract.
What is a public record that contains the parcel number, owner's name, and assessed value of every parcel in the county?
Assessment roll - The assessment roll is a public record that contains the parcel number, owner's name, and assessed value of every parcel in the county.
If a licensee working with a party has the duty to account for all funds entrusted to the licensee, what do you know about the relationship the licensee has with the party?
Based on the duty owed, the licensee and the party could be in any one of the three authorized relationships in Florida.
Janet is a recent grad with student loan debt, credit card debt, and a mortgage. At this point in time, she has over $100,000 in equity in her home though. A home equity loan could help her consolidate that debt, and even bring in the interest rates down. It seems like a no-brainer to her. What advice would you give Janet before she takes out the home equity loan?
"Examine the terms of the loan very carefully. I recommend you get a lawyer to look over them to make sure you aren't getting yourself in over your head. Remember, if you find you can't make payments on the home equity loan, you could lose your home." - A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral. The loan amount is determined by the value of the property
Math: Ella's house assessed for $91,000. The tax rate for city, county, and school taxes was 9.1 mills each. How much did she save in property taxes this year?
$1,137.50 - Total exemptions x Tax rate = Property tax savings. ~ Let's do school taxes first: $25,000 x 0.0091 = $227.50. ~ For city and county, add the mills first to get 18.2 mills. ~ $50,000 x 0.0182 = $910. ~ $227.50 + $910 = $1,137.50
Math: Johan has a monthly income of $5,000. He also has a monthly student loan payment of $500. The mortgage he wants to take out limits the borrower's debt-to-income ratio to 43%. What is the highest monthly payment Johan will be allowed?
$1,650 - 43% of $5,000 is equal to $2,150. If you subtract Johan's student loan debt ($500) from that number, you get the highest monthly payment Johan will be allowed, which is $1,650.
Math: Barbara agreed to pay the full deed transfer tax on the $250,000 sale of her property in Hillsborough County. How much will Barbara owe for the deed transfer tax?
$1,750 - The rate is $0.70 per $100 of the purchase price. So, Barbara will owe $1,750. ~ 250,000 * .007 = 1,750
Math: Marcel is a homeowner. His monthly principal and interest payment is $1,250. His annual insurance payment is $2,220. His annual property taxes are $4,200. Calculate his monthly PITI/mortgage payment.
$1,785 ~ 4,200 ÷ 12 = 350; ~ 2,220 ÷ 12 = 185; ~ 350 + 185 + 1,250 = 1,785 OR ~ 1250 * 12 = 15000 ~ 15000 + 4200 + 2220 = 21,420 ~ 21,420 ÷ 12 = 1,785
Math: Paul's street is getting paved. His lot is 300 ft by 500 ft. It will cost $22 per linear foot for the city to pave the street, and the city is paying 45% of the total cost. How much is Paul's special assessment?
$1,815 - Formula: [(Front feet x Amount per linear foot) x Owner percentage] ÷ 2 = Street paving assessment. ~ [300 ft x 22) x .55] ÷ 2 = $1,815. Remember, we divide by two to account for the fact that the homeowner only pays for their half of the street. The homeowner on the other side of the street is responsible for the other half.
Manuela violates Florida's Telemarketing Act by calling several hundred people who are on the National Do Not Call Registry. What penalty will she likely incur? $10,000 penalty per call suspension of telemarketing rights revocation of license community service hour requirement Submit answer
$10,000 penalty per call - The penalty for violating Florida's Telemarketing Act is $10,000 per call.
After two years, an involuntarily inactive license:
Becomes Void
Buddy thinks one of Holly's marbles would be great addition to his collection. As offeror, Buddy proposes a swap: two of his aggies for one of her cat's eyes. Holly listened to Buddy's offer and, then, countered with her own: one of her cat's eyes for two of Buddy's aggies AND one oxblood. Consider what you know of this scenario and select the response that accurately states the roles played by each party to this marble negotiation.
Buddy and Holly were both offerors and offerees at different times - In a back-n-forth negotiation, the parties can change out roles from offeror (the person making an offer) to offeree (the person receiving the offer). That happens when the original offer is responded to by a counteroffer, which is a rejection of the original offer and a new offer all in one.
A VA borrower used $60,000 of her entitlement on the purchase of a home. How would you calculate her remaining entitlement?
By subtracting $60,000 from the current maximum amount of entitlement - (which includes the secondary entitlement).
Which of the following best explains the purpose of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)?
CERCLA provides broad federal authority to respond directly to releases of hazardous substances that may endanger public health or the environment.
Broker Casey entered into a single agent relationship with Jane to sell her 13 acre ranch. He did not provide her with a written brokerage relationship disclosure. Was that an error on his part? Evaluate what you know about the authorized brokerage relationship entered into, as well as the type of property being sold, to identify the correct response.
Casey was correct in not using a disclosure form because Jane's ranch qualified as nonresidential. - There is no disclosure requirement for a single agent relationship in a nonresidential transaction. Agricultural property in excess of 10 acres is considered nonresidential. Therefore, Broker Casey acted appropriately in not using the disclosure form.
Catherine, a broker, receives a notice of noncompliance from the DBPR. What does this mean?
Catherine's violation was a first-time minor offense - The DBPR can issue a notice of noncompliance for a first-time, minor violation by a licensee. A violation is considered minor if it does not result in economic or physical harm to a person or adversely affect the public health, safety, or welfare or create a significant threat of such harm.
Laura is has submitted her application to be a sales associate. She is worried she omitted something important in her application. She wants to check and see how long the FREC has to contact her about errors and omissions. Where in the Florida statutes should she look for that information? - Chapter 475 - Chapter 455 - Chapter 120 - Chapter 20
Chapter 120 - Chapter 120, F.S. deals with procedures for regulatory agencies, specifically how long they have to look for errors and omissions (120.60(1)), F.S..
Robert is a Florida broker operating as a fiduciary for Mia in a real estate transaction. When introducing Mia to others, Robert should refer to her as his:
Client or Principal - Robert is a Florida broker operating as a fiduciary for Mia in a real estate transaction. When introducing Mia to others, Robert should refer to her as his client or principal. In Florida, agents operating as agents have customers, while agents operating as fiduciaries have clients, also known as principals.
A license holder does not disclose a house's history of flooding to a buyer. This is an example of:
Concealment - Concealment is withholding information or a material fact. In other words, it's when a license holder doesn't disclose something that they should disclose.
Kenya purchased a vacation property. She owns the unit itself individually, and she is a co-owner of the common elements like the pool, playground, and gym. What kind of property is Kenya's vacation home most likely to be?
Condo - A condo, because she owns her unit individually and then is a co-owner of the common elements.
Conventional loans are divided into two categories. They are:
Conforming loans and non-conforming loans
Arnav is interested in a residential property because he loves the antique light fixtures installed in every room. Corey is the license holder helping Arnav find a property. What is Corey's responsibility regarding the light fixtures?
Corey should specify in writing whether the lighting fixtures are the seller's personal property - Personal property can often be a source of confusion or contention in a real estate transaction, so a license holder would be wise to discuss (with the seller) the differences between personal and real property.
The bundle of rights includes the right of possession, exclusion, control, quiet enjoyment, the right to encumber, and:
Disposition - The bundle of rights includes: 1. Possession 2. Exclusion 3. Control 4. Quiet enjoyment 5. Encumber 6. Disposition
The following is an example of someone that is a registered sales associate:
Edward passed the licensing exam. His broker registered him with the DBPS, and the website lists him as active. - Licensure is when you pass the state exam. Registration is when you register your information (and broker, for a sales associate) with the DBPS. You are not considered registered until the website lists you as active.
In a contract for deed, what does the buyer receive (until they pay off the entire loan)?
Equitable Title - The buyer receives equitable title until they pay their final installment to the buyer. Then they get legal title.
Does a client always have the right to terminate (revoke) an agency relationship agreement at any time with a broker? If so, does this also mean a client could do so without liability?
Even though a client always has the right to terminate an agency agreement with a broker at any time, there may be language in the contract that creates liability for damages if they do.
The following is a representation the unauthorized practice of law by a licensee:
Expressing an opinion regarding the client's degree of legal liability due to a clause in the contract - Giving legal advice (such as sharing opinions regarding one's legal liability) is considered the unauthorized practice of law.
Petunia, a sales associate, notices that the plumbing system in a home is in very poor condition. However, during a walkthrough with the buyer, she says, "Oh, the water pressure is low all over town today. Didn't you see it on the news? By tomorrow, it'll be fine." Petunia has committed:
Fraudulent misrepresentation - Fraudulent misrepresentation occurs when a licensee intentionally attempts to prevent a buyer from finding out about a material fact. This occurs when a licensee purposefully conceals a known defect.
A former client successfully sues Licensee Laurel. Since Laurel cannot satisfy the judgment, the claimant appeals to the Recovery Fund for reimbursement. The Recovery Fund reimburses the claimant. What automatically happens to Laurel? - She receives a citation. - Her license is revoked. - She is put on probation. - Her license is suspended.
Her license is suspended. - If the Recovery Fund pays compensatory damages to a claimant, the offending licensee will automatically have their license suspended.
What is it called when a borrower pledges an asset as collateral to borrow money to buy the pledged asset?
Hypothecation - Hypothecation is when you pledge an asset as collateral for a loan to buy that asset.
What is the difference between a sublease and an assignment?
In a sublease, the original tenant is still responsible for rent. In an assignment, the new tenant takes over responsibility.
In what way does a borrower paying one point affect the lender's yield?
Increases yield by 0.125% -As a rule of thumb, each point a borrower pays increases the lender's yield by 1/8 of 1%, or 0.125%.
A broker is caught in the middle of a buyer's and seller's conflicting demands. They know they have no claim to the escrow funds, however, so they pursue a(n):
Interpleader
Stevie receives an offer for his house. He takes part of that offer and adds new language. He sends it to the buyer. This revised offer:
Is a counteroffer and is considered a new offer - A counteroffer is considered a rejection of the original offer, meaning the original offer dies with the submission of a counteroffer. A counteroffer is basically a new offer!
Mitch's sales associate license expired 18 months ago. Assuming this is not his first renewal, what is his license status and how can he renew it? - It's voluntarily inactive. He can renew it by taking 14 hours of continuing education. - It has ceased to be in force. He must apply for a new license. - It's involuntarily inactive. He can renew it by taking 28 hours of continuing education. - It's void. He can apply to have it reinstated.
It's involuntarily inactive. He can renew it by taking 28 hours of continuing education.
Jack's broker received three offers on Jack's cottage. The first was a full-price offer without any conditions or contingencies. The second offer was insulting, really... just a handful of beans. The third and last offer was a full-price offer, contingent on Jack not removing the beanstalk from the property when he moved out. Analyze the situation and choose the response that best describes the obligations of Jack's broker.
Jack's broker is obligated to present all offers, regardless of how the broker feels about them. - Jack's broker is obligated to present all offers, regardless of how the broker feels about them. The broker is not, however, obligated to present the offers in any particular order.
Joey's agency agreement ended when the home he was going to purchase washed away in a flood. Peter terminated his agency agreement because he didn't trust his broker any longer. What can be said of Joey's and Peter's causes for agency termination?
Joey's agency agreement terminated as result of an "operation of law" known as "destruction" whereas Peter ended his agency agreement through "acts of the parties," specifically, by what is known as "revocation."
Four investors agree to co-ownership of an investment property. They have arranged the ownership structure so that if one of them dies, the decedent's ownership stake passes to the remaining investors. What form of co-ownership do the investors have?
Joint Tenancy - Joint tenancy is the form of co-ownership used as it includes the right of survivorship.
Toni owns a home in severalty. It's her primary residence, so she homesteaded it. She is married to Karl, a wealthy real estate developer. Because Karl owns so much other property, she's willed the home to her mother. If Toni were to die, what would happen to her home?
Karl would inherit it fee simple. - Homesteaded properties are inherited by the spouse, even if owned in severalty and even if willed to someone else. If Karl and Toni had kids, Karl would then get a life estate, with the kids as remaindermen.
Kat's sales associate license ceases to be in force. What is the most likely cause for this license status?
Kat changed her employing broker without notifying the FREC within 10 days. - If Kat changed her employing broker without notifying the FREC within 10 days, her license would cease to be in force. This license status applies specifically to such situations where license holders fail to notify the FREC of important changes.
Tamina contracted with Abby, her preteen neighbor, to babysit Tamina's twins all summer for $300. Abby didn't want to do it, but Tamina threatened to tell Abby's mom she saw Abby smoking behind the 7-11. Based on this account, what essential elements of a valid contract are missing?
Legally competent parties and offer and acceptance - Because Abby was a minor, she is not considered a legally competent party. Because Abby agreed under a threat made by Tamina, reality of consent, a component of offer and acceptance, was also lacking.
Evaluate a scenario which best illustrates positive leverage.
Leverage is borrowing money to extend your investment reach and profits.
Henrietta sells a property, reinvest the proceeds in a brand new property, and defers all capital gain taxes. This is called a(n): - installment sale - like-kind exchange - homestead exemption - capital gain
Like-kind exchange - A like-kind exchange lets an investor sell a property, reinvest the proceeds in a brand new property, and defer all capital gain taxes.
Determine which of the following scenarios involves a use variance: - Bryan's residential neighborhood is re-zoned to be a commercial zone, and he is forced to move out. - Rudy has a legal nonconforming use to run his upholstery shop in a residential neighborhood. He sells the property to a pizza chain owner. - Lucinda gets permission to open her coffee shop in a residential zone. - Developers leave room for a small park to separate office buildings from an apartment complex.
Lucinda gets permission to open her coffee shop in a residential zone. - By getting permission to open a coffee shop in a residential zone, Lucinda was granted a use variance.
You are discussing brokering options with two clients: - Manuel is part of an LLP. - Shay is part of an unincorporated association. Who is eligible to register their business entity a brokerage?
Manuel
Example of property owners is exercising their subsurface rights?
Marco sells the right to extract natural gas from his farm to the gas company. - Marco is selling his subsurface (or mineral) rights, which he is entitled to do.
Jamie, a buyer's agent, is pretty sure that the listing agent will receive multiple offers on a home. Should Jamie include an escalation clause in his offer?
Maybe. A multiple offer situation does suggest that an escalation clause might be useful. - Don't use escalation clauses unless you're pretty certain that there will be multiple offers. If the property is not as hot as your buyer thought, you've exposed their upper limit (and therefore weakened their bargaining power) for no reason.
Between a Tax, Loan and Mechanic liens, which is most likely to be junior lien?
Mechanic's Lien - Since tax liens always get first position in lien priority and you can't have a mechanic's lien without first having a mortgage, the mechanic's lien is most likely to be a junior lien.
Monique is a developer working on a new event center for the city. Who does she need to approve the site plans?
Monique will need to get the site plan approved by the city planning board.
A homebuyer is looking to find a mortgage. He goes to the office of Bert Applebee, who presents him with some options for mortgages. The homebuyer chooses one he likes and Bert contacts the lender and negotiates the terms for the homebuyer. The lender then originates the loan for the homebuyer. What job does Bert Applebee most likely have?
Mortgage Broker
Who are Mortgage Brokers?
Mortgage brokers are not sources of funds, they are middlemen between a borrower and the lender.
Michael is a listing agent in an agency agreement where the seller has agreed to give him any money he receives in the sale of the house that is over $200,000. Which of the following BEST describes which agency agreement this is an example of
Net Listing - This is an example of a net listing, in which the seller pre-determines a specific amount that they wish to net on the sale of their property. Any proceeds from the sale that remain after the seller's net has been delivered is considered earned compensation by the broker.
Maria has entered into one of the three authorized relationships available in Florida residential real estate transactions. She received the required written disclosure that explains the duties owed to her. And the licensee working with her refers to her as a customer. Evaluate everything you know about Maria, the licensee, and how they relate to each other in order to deduce the authorized relationship they have entered into.
No Brokerage - The fact that a written disclosure notice was required tells us that Maria did NOT enter into a transaction broker relationship, which, because it is presumed, does not require a disclosure. The fact that the licensee refers to Maria as a customer tells us that they did NOT enter into a single agent relationship, in which the licensee is a fiduciary and the party is a client.
Cathy, a non-license holder, works for a cemetery as a salesperson. In addition to her salary, she gets an annual bonus for every cemetery lot she sells. Is Cathy in violation of Chapter 475 F.S.? Why or why not?
No, because cemetery lots in Florida are not considered real property. - Cemetery lots are not considered real property in Florida, so Chapter 475 doesn't apply to Cathy.
Ella is buying a condo from the current owner. The seller's agent hands her the contract and a packet of documents including: The most recent financial report, The rules of the condo association, The governance form, An FAQ, Bylaws, The articles of incorporation. The agent wants her to sign a form affirming she received the condo documents along with the contract. Should she?
No, she's missing the declaration. - She should also be given a declaration, but if she signs, the cancellation period will start even without it.
Michelle wants to buy property insurance for a parcel of undeveloped land that she purchased. Can she do this?
No. Insurance covers structures, not land, because land is considered indestructible.
John has an easement appurtenant that allows him to cross Sally's land. Sally is selling her property. When Sally's property sells, John will:
Not have a problem as easements run with the land - An easement appurtenant is a right of one party to use the land of another, specifically to access an otherwise landlocked parcel of land. These types of easements or rights run with the land, meaning these rights of use by another will convey in the transfer of that deed or title.
Shane is the listing agent for a single-family home. He knows that he will earn compensation if he procures the buyer for the home, but he will not earn compensation if another broker or the owner procures the buyer. What type of listing agreement does Shane have?
Open Listing - An open listing is a nonexclusive listing agreement allowing multiple brokers (and owners themselves) the right to sell the property. The individual considered to be the procuring cause of the sale is the one to receive the commission
Harold and Naomi are both brokers who run separate offices. Their offices are in the same building and their signage does not make it clear they are separate businesses. Which of the following terms describes Harold and Naomi's relationship?
Ostensible Partnership - An ostensible partnership is the appearance that a partnership exists between two parties even though no partnership was intentionally created. - This partnership is not recognized
Oliver is a member of the Florida Bar Association. He has lived in Florida for three years. Assuming he passes the background check and has his application accepted, what ELSE must he do to become a licensed sales associate in Florida?
Pass the state licensing exam - Because he is a lawyer, Oliver is excused from Course I. - Course II is for a broker license. He would need to pass both the state and national portion of the exam.
Olga has missed some mortgage payments and her home has gone into default. If she were to exercise her equity of redemption, what would she have to do?
Pay the loan in full before the property is sold at auction - Equity of redemption is paying the entire loan balance to redeem the property.
A friend owns a cafe downtown. They ask you to help them calculate how much their rent will be next month. They give you the following information: - Fixed rent amount - Sales rate - Projected sales for the coming month Based off of these data points, what kind of lease do you think they have?
Percentage lease - The rent for a percentage lease is calculated using the following formula: Fixed rent + ( Overage x Sales rate) = Rent.
Which of these would be considered a tangible asset of a business?
Personal Property
A ceiling fan, still in its original packaging and NOT attached to the ceiling, is an example of: - personal property - an emblement - real property - an improvement
Personal Property Personal property (or personalty or chattel) is an unattached, moveable asset not considered real estate.
What is an established starting point from which a metes and bounds description begins?
Point of Beginning - A point of beginning is an established starting point from which a metes and bounds description begins.
A buyer recently purchased a lovely home on Seabrook Drive. There were several listing agents listed for the property, and now they are trying to determine who deserves the listing commission. What will be the determining factor?
Procuring cause - Procuring cause is the defining action or actions (or individual) that brought a buyer to purchase a property.
Ileanel is starting a new job as a property manager. She asks you for advice on what she should focus her efforts on. You tell her:
Property managers most important responsibility is to realize the highest return possible on the owner's investment.
A buyer purchased a home after the listing agreement between the seller and their listing agent ended. However, the buyer had toured the seller's home during an open house held by the seller's former listing agent. Which clause will BEST determine if the former listing agent is owed compensation?
Protection Period Clause - The protection period clause can determine whether a listing agent is owed compensation for a property purchased after the agreement ended.
Quinn, a husband and father, dies intestate. What will happen to his property?
Quinn's property will be distributed amongst his heirs - By law, the title to real estate and personal property of an intestate (not having made a will before one dies.) decedent passes to their heirs.
Ebony owns a business that does the following: - Oversees real estate transactions to completion - Brings together the parties to a real estate transaction, such as a buyer and a seller Ebony's business likely engages in:
Real Estate Brokerage Real estate brokerage is the businesses of overseeing, consummating, and completing real estate transactions and business by bringing together the parties to a transaction.
How is real estate different from real property?
Real estate is land and improvements; real property is land, improvements, and the bundle of rights.
What is the main difference between how real and personal property are conveyed?
Real property is conveyed by deed; personal property is conveyed with a bill of sale.
Jamar wants to know what properties he would be working with if he chose to specialize in commercial real estate sales. His broker informs him he would likely be working with:
Residential property with more than four units - Commercial real estate includes residential properties with more than four units, among office buildings and retail properties.
A tenant moves out of her apartment. She has left the apartment in great shape, so the landlord intends to return her entire security deposit.
Return the security deposit within 15 days - Under the Florida Residential Landlord and Tenant Act, if the landlord does not intend to impose a claim on the security deposit, the landlord has 15 days to return the security deposit (with interest, if required).
A 10-foot river runs along the border of Royce's property. What rights govern his use of this water?
Riparian rights - Riparian water rights is a system for allocating water among those who possess land along its path. This may include the use of flowing water, such as rivers and streams that pass through or border a property.
Which of these describes a property held in severalty
Roy owns a condo that he rents to a tenant. - Ownership in severalty means sole ownership, so Roy is the owner in severalty
The lot and block system primarily relies on which of the following to describe land?
Section, lot, and block numbers within a subdivision
Seth has filed a certioari proceeding. This means that:
Seth has filed a lawsuit against the county property appraiser and tax collector in order to protest the assessment amount of his property. - If the Value Adjustment Board rejects the owner's request for a lower property assessment, the property owner needs to pay the property taxes under protest and file a certioari proceeding. This is a lawsuit against the county property appraiser and tax collector. The court cannot assign a new assessment value, but they can require the appraiser to follow certain procedures in a re-assessment. If the court still finds in favor of the appraiser, the homeowner is out of luck, unless they want to file an appeal.
Graciela is a sales associate. She is quitting her job at Atlas Realty and moving to another brokerage. She can't wait to tell her new brokerage all the details about her most recent transaction. Graciela should remember:
She must keep confidential information confidential even after her employment terminates - The obligation of confidentiality does not terminate when employment terminates.
Odonis' client is concerned about the marketability of their title. Odonis advises that if they want their title to be marketable, they need to focus on clearing up all
Significant encumbrances and liens - A marketable title is a title that is free from significant encumbrances or defects (such as liens) that might otherwise prevent a purchaser from enjoying or eventually selling the property.
Audrey is Matt's fiduciary. Analyze this very short statement and deduce which of the possible authorized brokerage relationships in Florida Audrey has with Matt. no brokerage Single agent dual agent transaction broker Submit answer
Single agent - The only authorized brokerage relationship in Florida in which a broker operates as a fiduciary is the single agent relationship. Likewise, it's the only relationship where the licensee can refer to the party they represent as their client.
Emma is a developer. She builds 65 homes on the tract of land she is developing. Only 15 of them have ready and waiting buyers. The other homes are:
Speculative Homes - Speculative homes, or "spec" homes, are homes that are built without an identified buyer.
Jim has bad credit. He is having trouble finding a lender to lend him a mortgage. He finally finds one that charges him a 10% interest rate. He takes it out. What kind of loan has Jim taken out?
Subprime - A subprime loan is one with a higher interest rate, normally offered to borrowers with poor credit.
How do you find the value of a business's goodwill?
Subtract the value of the tangible assets from the going concern value
What does a high vacancy rate indicate about a rental market?
Supply is outpacing demand. Rent prices will be lower to attract renters.
Luca got into some trouble with his finances and went into default on his home. His lender decided to foreclose. The lender advertised the sale in the paper, then sold his property at auction. What can we deduce from Luca's foreclosure process?
That he likely lives in a title theory state
Melissa, a sales associate, is under investigation by the DBPR for practicing real estate without a license. Does the DBPR have to notify Melissa of the investigation?
The DBPR does not have to notify the subject of an investigation if the violation is a criminal offense. Practicing real estate without a license is a criminal offense.
Which Act requires developers engaged in the interstate sale or leasing of 100 or more lots to file a statement of record and register the subdivision with the CFPB?
The Interstate Land Sales Full Disclosure Act - The U.S. Congress passed the Interstate Land Sales Full Disclosure Act in 1968. The law requires developers engaged in the interstate sale or leasing of 100 or more lots to file a statement of record and register the subdivision with the Consumer Financial Protection Bureau (CFPB).
Train tracks for a new route were built right behind Joe's home. The train is noisy, and Joe has seen a decrease in the value of his property. What economic characteristic of land does this exemplify? modification
The addition of a train route is an example of modification. - Modification is considered an economic characteristic because human-made changes like this have an impact of the value of real estate.
What's a good way for an agent to practice fair housing?
The agent should start by finding available homes within the client's price range. The agent should pick homes in different areas and neighborhoods.
Kaitlyn is applying for her Florida sales associate license. She qualifies as a low-income applicant. What fees will she be required to pay?
The application fee, the fingerprinting fee, and the exam fee - Her initial license fee will be waived. She will still have to pay the application fee. Everyone pays the fingerprinting fee and the exam fee, as those are paid to private vendors.
How would an appraiser be able to adjust for the size of the property using the sales comparison approach?
The appraiser would need to find the price per square foot of the comparable property.
Which of the following BEST describes in what way the typical relationship between a real estate broker and their client is one of special agency? - The authority given by the client is narrowly defined towards a single goal — the sale or purchase of property. - The duties of a broker require special consideration of the client's objectives. - The broker fulfills their duties to the client, using their specialized education and skills. - The broker takes special care to put the client's interests ahead of the other party.
The authority given by the client is narrowly defined towards a single goal — the sale or purchase of property. - Special agency restricts an agent's scope of authority to one or more specific acts as directed by the party — usually towards a single, specific objective, end, or goal. In a typical broker-client relationship, the authority given by the client is narrowly defined towards a single goal — the sale or purchase of property.
Sera is an agent. She is helping a Muslim couple find a house. Sera keeps patting the woman's hijab and calling it "so cute!" The woman is not impressed, and upon return from the property tour, asks to speak to the managing broker. What should the broker do?
The broker should reprimand Sera for discrimination. It doesn't matter if Sera meant it as a compliment.
Magnolia Point is a newly constructed apartment complex that just received a certificate of occupancy. What does this mean?
The building has passed its final inspection and can be occupied. - A certificate of occupancy indicates that the building has passed its final inspection and can be occupied.
A buyer offers in writing to purchase a house for $150,000, including the washer and dryer. The offer is set to expire on Monday at 9 a.m. The seller replies in writing on Thursday and accepts the $150,000 offer, but excludes the washer and dryer. On Friday, while the buyer is thinking this counteroffer over, the seller changes their mind and decides to accept the original offer, washer and dryer included. They state this in writing. What is the buyer obligated to do?
The buyer is not obligated to do anything. - A counteroffer is considered a rejection of the original offer, meaning the original offer dies with the submission of a counteroffer. A seller can't decide, oh wait, I actually liked that first offer, let's go back to that! Once a counteroffer is made, all previous offers are dead.
Maribel owns a condo that has exclusive use of a storage area in the basement. If a pipe breaks and the storage area floods, who is responsible for paying for repairs to the floor?
The condo association or HOA - The storage area is a limited common element, and the HOA or condo association is responsible for paying for repairs.
A property owner decides to use a new property management company to manage the apartment complex she owns. What needs to happen?
The current property management company needs to transfer the tenants' security deposits and advance funds to the new property management company, along with an accounting of how much should be credited to each tenant.
Which of these risks should buyers consider before agreeing to an adjustable rate mortgage?
The maximum possible monthly payment over the life of the loan
Two parties with two fiduciaries in one transaction involving one brokerage — and it's all according to Florida statute. What does this tell you? Analyze the few facts you have, along with you understanding of authorized brokerage relationships in Florida, and deduce which of the following is an accurate statement. - Dual agents are being used. - A transaction broker relationship is being used. - The parties each have assets of one million dollars or more. - This is a residential transaction.
The parties each have assets of one million dollars or more. - The fact that there are two parties and one brokerage indicates that this is an in-house transaction. The fact that there are two fiduciaries involved indicates that this is a nonresidential transaction with designated sales associates. The fact that designated agents are used means each of the parties has assets equal to or in excess of one million dollars
A friend and potential client comes to you for advice on investing in real estate. They want to know what the pros and cons are. The following statement accurately reflects one of the advantages of real estate as an investment:
The rate of return is historically one of the highest, compared with other investment vehicles. - Real estate does have a high rate of return, but it is not cheap to obtain and maintain compared to other investments, and it is not very liquid.
Carmela is part of an investment group that wants to purchase a property. She's debating between a large residential development and an office space. When you're laying out the pros and cons of each kind of property, what is one advantage of residential property you would share with her?
The residential property market is less volatile and more recession-proof, since people always have to have to have a place to live.
What is the rate for the state documentary stamp tax on deeds in Florida?
The state documentary stamp tax on deeds rate in Florida is $0.70 per $100 of the full purchase price ($0.60 for Miami-Dade County).
Jim and Bob are lifelong friends. They still live in the same town. Jim works for a print company and Bob is a real estate broker. A year ago, Jim told Bob that he'd sure love to move into a bigger house, but he'd need to either get a job with a new company that paid better or a promotion with his current company first. Today, during their weekly pickleball match, Jim excitedly informed Bob that he got his long-sought after promotion. Evaluate the details of this account and choose the statement that BEST explains all of the known reasons, if any, that implied agency could arise from this scenario.
The two reasons why implied agency might come into play is that Jim and Bob have an ongoing friendship AND Jim's previously stated condition under which he would want to buy a new home has come to pass. - The fact that Jim and Bob are lifelong friends indicates an ongoing relationship, which certainly can led to an implied agency relationship. Add to that the fact that Jim previously told Bob what conditions would need to come to pass in order for Jim to act on his desire to move into a bigger home. With Jim's announced promotion, Bob might act on the assumption that Jim is ready for Bob to help him find a suitable home.
How many acres are there in the South 1/2 of a section?
There are 320 acres in the South 1/2 of a section. - Each section contains a total of 640 acres.
Roy has a piece of land that Tom wants to develop into a mixed-use retail and residential building. Roy offers Tom a ground lease for 70 years. At the end of that 70 years, if the lease is not renewed, what happens to Tom's buildings?
They revert to Roy, along with the land. - At the end of a ground lease, all buildings revert to the land's owner.
Tim takes out a partially amortized loan. Fifteen years later, at the end of the loan's term, Tim is hit with a bill for upwards of $250,000. Where have Tim's monthly payments been going?
Tim was just paying down the interest along with some principal. - A partially amortized loan has the monthly payment amount of a loan with longer terms. At the end of the term, the remaining principal balance came due.
A broker tells her sponsored sales associates that if anyone brings in over a certain amount of business in six months, they will be entitled to a bonus. Analyze the details of this offer and choose the response that accurately identifies what type of contract this.
Unilateral Contract - Whereas bilateral contracts are typically the contracts of choice for the business world — like with the sale of a good or service — reward offers, contests, and commissions are common types of unilateral contracts you are likely to encounter. A broker's promise of a bonus if sponsored sales associates choose to act a certain way is an example of unilateral contract.
When Dave's lease starts, he pays $2,100 in rent per month. Two years into his lease, he pays $3,000 per month. Dave's monthly payments have increased over time in specific increments. What kind of lease does Dave have?
Variable Lease - A variable lease is a lease in which the rental rate increases over time in specific increments. This usually depends on a factor such as an index.
Fred wants to live in the guest room of Barney's flagstone townhouse, so Barney verbally agrees to let Fred move in. Evaluate this scenario and choose the response that best explains whether or not a valid contract has been entered into.
Without consideration, an agreement or contract is not legally binding. - The legal philosophy behind this is that a person cannot do something of value without receiving something of value in turn.
Farrah, a real estate agent, bought a condo. She did not act as a licensee during the transaction, but hired another licensee to represent her. During the course of the transaction, the agent representing her converted her funds. Farrah sued the agent and received a final judgement against him in civil court. He was unable to pay. Can Farrah make a claim to the Recovery Fund?
Yes, Farrah can make a claim to the fund, because she was not acting in her capacity as a licensee. - If the real estate licensee was the buyer, sellor, lessor, or lessee, then can make a claim to the fund, as long as they weren't acting in their capacity as a real estate licensee at the time.
Ingeborg, a non-license holder, lives in Rhode Island. She co-owns a property in Florida with a friend. Ingeborg owns 60% of the property, her friend owns 40%. The friends decide to sell the property. Ingeborg lists and markets it, doing all of the showings herself. When it sells, the friend tells Ingeborg to keep 80% of the profit, since she did all the work. Have they violated Chapter 475, F.S.?
Yes, because Ingeborg received more than a share of profit proportional to her ownership share, she has been compensated for the sale, and needs to be licensed. - While it's true that you can sell your own property without a license (even if it is co-owned), you cannot get more of the profit than a proportional share of your ownership. So Ingeborg cannot get more than 60% of the profit, since she only owns 60% of the property (even if she does all the work!). Otherwise, she is being compensated and it violates the law.
A shopping mall was built in 1997. Does the mall need to be accessible to people with disabilities?
Yes, because the ADA requires that public accommodations and commercial facilities that are newly constructed (built after 1993) be accessible.
Alana is 28, a Canadian citizen with the legal right to work in the U.S., a Florida resident, and has a G.E.D. Evaluate whether she meets the qualifications for a Florida sales associate license
Yes, she meets the qualifications: she is at least 18, can work in the U.S., and has a high school diploma or the equivalent. - One does not need to be a Florida Resident to apply
Which of these accurately differentiates between zoning ordinances and building codes?
Zoning deals with the use of land, whereas building codes deal with building design and safety. - The main difference between zoning ordinances and building codes is that zoning deals with the use of land, whereas building codes deal with building design and safety.
