Real Estate Licensing Test Questions Pt 3
A brokerage firm advertises listings but omits the name of the brokerage firm. These ads are called a.) blind advertisements. b.) prejudiced advertisements. c.) counterfeit advertisements. d.) deceptive advertisements.
blind advertisements. (Blind advertising is an ad that does not contain the name of the brokerage.)
The person with a ____________ has all the rights in the bundle of rights. a.) fee simple estate b.) tenancy at will c.) reversion estate d.) tenancy at sufferance
fee simple estate (The owner of a fee simple estate has all the rights in the "bundle of rights." A tenancy at will is a lease with no time limit; a tenancy at sufferance is when the lease is up but the lessee remains on the property; the owner of a reversion estate cannot sell the property—it reverts to the original owner when the reversion estate holder dies.)
Mr. Atkinson leases space for his computer repair shop. He will pay the rent, and the landlord will cover the utilities, taxes, insurance, and repairs. He has a gross lease net lease percentage lease index lease
gross lease (In a gross lease (aka flat or straight lease), the lessee pays a fixed rent and the landlord covers the utilities, taxes, insurance, and repairs. There are variations of this, such as when water is included but nothing else.)
A sales associate earns 55% of a 6% commission on a sale of 15 acres at $2,200 per acre. The commission earned by the sales associate would be: a.) $1,980 b.) $1,089 c.) $891 d.) $1,535
$1,089 (Total sale price = $2,200 per acre x 15 acres = $30,100 Total commission = $33,000 x 6% = $1,980 Sales associate commission = $1,980 x 55% = $1,089)
A landlord inspects his rental property after the tenant moves out. He finds damage that is beyond normal wear and tear and decides to deduct some money from the security deposit to cover the damage. The tenant has _______ days to object in writing to the deduction. a.) 7 b.) 15 c.) 30 d.) 60
15
How many acres the SW 1/8, NE 1/4, SE 1/4, N 1/2 of a certain section contains? a.) 2.5 acres b.) 0.25 acres c.) 5 acres d.) 25 acres
2.5 acres (One section is 640 acres. To calculate the size of the legal description in acres: 640 x 1/8 x 1/4 x 1/4 x 1/2 = 2.5 acres.)
A parcel of land having a length of 1,500 feet and a width of 1,750 feet contains approximately how many acres? a.) 51.7 b.) 60.3 c.) 70.3 d.) 83.0
60.3 (1,500 feet x 1,750 feet = 2,625,000 square feet 2,625,000 square feet / 43,560 square feet per acre = 60.3 acres)
Approximately how many discount points are needed to raise the lender's yield on a mortgage by 1%? a.) 2 points. b.) 4 points. c.) 6 points. d.) 8 points.
8 points. (Each discount point paid to the lender will increase the lender's yield (return) by approximately 1/8(0.00125) of 1 percent. Therefore, 1%(0.01) / 1/8(0.00125) = 8)
The legal rights and responsibilities of real estate licensees are established by what law? a.) Florida Statute Chapter 455 b.) Florida Statute Chapter 475 c.) Florida Administrative Code 61J2 d.) Florida Statute Chapter 574
Florida Statute Chapter 475
Mr. Denton died intestate, and there are no known heirs. The probate court appointed an individual to settle Mr. Denton's affairs. When this individual sold Mr. Denton's home, what type of deed was used to formalize and record the transfer of title? a.) Quitclaim deed b.) Personal representative's deed c.) Guardian's deed d.) Committee's deed
Personal representative's deed (If someone dies without executing and filing a will, their estate is identified as "intestate". Without a will to manage this distribution, a personal representative is designated by the Court.)
For homes built prior to 1978, which of these is required in a lead-based paint disclosure? a.) Sellers are to provide evidence that a lead-based paint test has been conducted prior to the sale of the residential real property. b.) Commercial leases must include specific lead-based paint warnings and disclosure language. c.) Sellers and lessors must disclose the potential presence of lead-based paint in residential dwellings. d.) The seller must agree to pay for repainting if lead-based paint is detected.
Sellers and lessors must disclose the potential presence of lead-based paint in residential dwellings.
Which is NOT a potential reason the FREC would deny an application for licensure or renewal of a license? a.) The applicant has been guilty of breach of trust. b.) The applicant has been guilty of misrepresentation. c.) The applicant is not a US citizen. d.) The applicant has been found guilty of dishonest dealing.
The applicant is not a US citizen. (US citizenship is not a requirement for licensure in the State of Florida. Anyone found guilty of fraud, misrepresentation, concealment, false promises, false pretenses, dishonest dealing by trick, scheme, or device, culpable negligence, or breach of trust in any business transaction will not be approved.)
Which is true about a nonrepresentation or no-brokerage relationship? a.) The broker is not an agent of either the buyer or the seller. b.) The broker has no duties to either the buyer or the seller. c.) There is a presumption of nonrepresentation. d.) There is no disclosure notice required for this relationship.
The broker is not an agent of either the buyer or the seller. (In a no-brokerage or nonrepresentation relationship, the broker is not an agent of either the buyer or the seller. The broker may not negotiate for either a buyer or a seller. Both parties are referred to as "customers.")
A broker listed a land for $90,000. Jim verbally offered $88,000. Another buyer who knew about Jim's offer made an offer of $93,000. The broker drew up a written contract for $93,000 but did not inform the owner about the offer for $88,000. Which is correct? a.) The broker properly submitted only the higher offer. b.) The broker should have presented both offers to owner. c.) The owner must accept any offer that meets or exceeds the listing price. d.) The broker has the right to decide which offer to present to the owner.
The broker should have presented both offers to owner.
Which is NOT true of the Real Estate Recovery Fund? a.) It reimburses individuals, partnerships, or corporations that have filed suit against a broker or sales associate and won a monetary judgment in civil court. b.) The fund acts as insurance for real estate licensees who are sued. c.) Monetary damages must be paid from the broker's or sales associate's personal assets first. d.) The fund reimburses a broker who followed a FREC order for a disbursement of escrow but is later sued by one of the parties.
The fund acts as insurance for real estate licensees who are sued. (The Real Estate Recovery Fund is not an insurance policy for licensees but a fund that protects the public. The other choices are all true of the fund.)
Which statement is not true about a transaction broker? a.) The transaction broker provides limited representation to a buyer, a seller, or both, in a real estate transaction. b.) The parties to a real estate transaction with a transaction broker give up their rights to the undivided loyalty of a licensee. c.) There is a presumption of a transaction brokerage relationship unless otherwise disclosed. d.) The transaction broker does not need to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer.
The transaction broker does not need to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer. (Known facts that materially affect the value of residential real property and are not readily observable to the buyer must be disclosed in any transaction.)
Mr. and Mrs. Martinez buy a lot in a subdivision where they want to build a house. On inspecting the deed, they learn that the house must be at least 1800 square feet. This is an example of a.) an illegal restriction. b.) a discriminatory covenant. c.) a deed restriction. d.) a promise of detriment clause.
a deed restriction.
Mr. and Mrs. Grey are thrilled to be making the last payment on their mortgage. The lien on their property can now be released through a.) an exculpatory clause. b.) an acceleration clause. c.) a defeasance clause. d.) a revert clause.
a defeasance clause.
Sunshine Realty advertises a rental property with 15,000 square feet of warehouse space. However, this advertised square footage includes the parking lot and the actual warehouse space is only 10,000 square feet. What has the broker committed? a.) a second-degree felony punishable by two years in prison b.) a first-degree misdemeanor punishable by suspension or revocation, a $1,000 fine and one year in prison c.) a violation punishable by a suspension by the FREC d.) a third-degree misdemeanor punishable by license revocation
a first-degree misdemeanor punishable by suspension or revocation, a $1,000 fine and one year in prison
According to statute, a real estate brokerage office must have all the following except a.) at least one enclosed room where business can be conducted in private b.) signage outside with the trade name of the brokerage, the broker's name, and the words "Licensed Real Estate Broker" c.) a telephone, desk and checking account d.) registration of the address with the DBPR
a telephone, desk and checking account (The statute does not require that the brokerage have a desk, telephone and checking account, although it may be assumed that these items are used by brokers and associates.)
While a buyer is a broker's principal. Legally, the sales associates who work for the broker are a.) partially assuming fiduciary duties to the buyer. b.) assuming the agency obligations to the seller. c.) also bound by the broker's agency obligations. d.) performing all fiduciary duties to both buyer and seller.
also bound by the broker's agency obligations. (As subagents of the broker, the sales and/or broker associates must abide by the rules pertaining to the relationship the broker legally establishes.)
Real estate licensees frequently perform a comparative market analysis, but Florida Statute 475.612 prohibits referring to it as a.) the price the property should sell for. b.) a price the property should be listed at. c.) an estimate of value. d.) an appraisal.
an appraisal.
Which of these is NOT a legal form of advertising for a real estate brokerage? a.) an internet advertisement for a listing that includes the name of the brokerage b.) business cards that include the " REALTOR®" logo when the person whose name is on the card belongs to the National Association of Realtors c.) an ad in a free real estate magazine that includes the name of the brokerage firm and that of a sales associate, listed as "Bob 'Bubba' Wallace" d.) an internet ad that shows 36 pictures of the inside and outside of a property and lists the sales associate's phone number
an internet ad that shows 36 pictures of the inside and outside of a property and lists the sales associate's phone number ("blind advertising," an ad that does not contain the licensed name of the brokerage firm. This is illegal.)
When a mortgage's cost includes such items as interest, mortgage insurance, and loan origination fee (points) stated on a yearly basis, it is known as the a.) stated interest rate. b.) implied interest rate. c.) annualized ownership cost d.) annual percentage rate.
annual percentage rate.
A "tenancy by the entireties" in real estate is best described as a.) one person owns the entire parcel. b.) by means of a single conveyance, title to real property is jointly held by a husband and wife, with both having equal interest. c.) a fee-simple estate. d.) by means of a single conveyance, two or more persons other than a husband and wife, receive identical rights.
by means of a single conveyance, title to real property is jointly held by a husband and wife, with both having equal interest.
Which of the following is a fixture? a.) landline phone plugged into a phone jack and a power outlet b.) ceiling fan c.) refrigerator d.) washer and dryer
ceiling fan (An item that is permanently attached by cement, plaster, nails, bolts, or screws and is attached to another permanent item is considered a fixture, particularly if its removal would cause damage. Removal of the ceiling fan would leave a hole in the ceiling. The other items could be removed without damage and are not permanently attached.)
A broker in Florida must do all the following EXCEPT a.) complete a 2-year real estate program at a community college. b.) complete a pre-licensure course. c.) work for 24 months of the previous 5 years as a sales associate. d.) pass the Florida broker's state exam.
complete a 2-year real estate program at a community college. (Brokers must fulfill the experience requirement of 24 months, successfully complete a pre-licensure course, then pass the state exam. They must also have completed the post-licensure education and, if applicable, community education required during the time they were a sales associate)
A title company did a title search and provided an abstract of title, which is a short form deed. contract for deed. condensed history of title. guarantee of title.
condensed history of title.
The most important factor in determining a borrower's ability to pay and their attitude toward debt is the borrower's a.) age. b.) race. c.) credit rating. d.) familial status.
credit rating.
To obtain the capitalization rate, the correct procedure is a.) dividing the net operating income by the sales price. b.) dividing the sales price by the net operating income. c.) multiplying the net operating income by the sales price. d.) multiplying the sales price by the gross-income multiplier.
dividing the net operating income by the sales price.
Susan, a sales associate, moves from ABC Real Estate agency to Cedar Landing Real Estate agency. What must she do to avoid a gap in licensure? a.) inform the old employer of her new employer's name and address. b.) inform the DBPR of her new employer's name and address. c.) bring a list of the previous broker's listings that the associate initiated. d.) inform the FREC of her new employer's name and address within 10 days.
inform the FREC of her new employer's name and address within 10 days.
Jefferson signs a contract for the purchase of Madison's home. This is a bilateral contract because a.) it must be in writing to be valid. b.) it contains promises to perform by both parties. c.) only one party to the contract must perform. d.) the broker is a transaction broker.
it contains promises to perform by both parties.
What disclosure about a Community Development District (CDD) must be provided in a sales contract for property within the CDD? a.) its power to control water use. b.) its power to build schools. c.) its power to establish wildlife habitat. d.) its power to levy taxes and special assessments.
its power to levy taxes and special assessments. (Community Development Districts are government entities that plan, finance, construct, operate, and maintain community-wide infrastructure and services specifically for the benefit of their residents. They also have the power to levy taxes and special assessments, and all sales contracts for property within the CDD must state this. A, B and C are responsibilities of a CDD, but not part of a real estate sales contract.)
A broker who was found guilty of publishing deceptive information was given the applicable criminal penalty. Considering these facts, the broker a.) is not subject to any administrative penalties or any civil proceedings. b.) is not subject to any civil proceedings, but may be subject to administrative penalties. c.) may be subject to Administrative penalties and civil proceedings. d.) is not subject to any Administrative penalties, but may be subject to civil proceedings.
may be subject to Administrative penalties and civil proceedings. (The broker may be subject to both, administrative penalties by the Florida Real Estate Commission and civil proceedings.)
Broker Bill owns Sunnyside Realty. His father owns Elite Developers. They and their staff both work from the same office. A sales associate in this situation a.) can be licensed by both Sunnyside Realty and Elite Developers. b.) must be licensed to work for Elite Developers only. c.) may have an active license with only, one realty firm OR one owner-developer. d.) can represents both firms, as long as it is disclosed to their clients.
may have an active license with only, one realty firm OR one owner-developer.
For brokers, the term "immediately" as it applies to escrow deposits means a.) by the end of the following day. b.) by the end of the second business day following receipt. c.) by the end of the following business day. d.) no later than the end of the third business day following receipt.
no later than the end of the third business day following receipt.
A broker lists a property that she knows would be perfect for cousin. The property is being sold due to the death of the owner. The succession is willing to accept a much lower offer than the property's listed price. About making an offer, the broker should tell her cousin a.) that the succession will consider a much lower offer than the listed price. b.) that the succession is very motivated to sell quickly. c.) to make an offer equal to the listed price. d.) nothing, and present to the succession any offer that her cousin wishes to make.
nothing, and present to the succession any offer that her cousin wishes to make.
The metes and bounds method requires a.) point of beginning. b.) tier. c.) range. d.) benchmark.
point of beginning
Eileen Weinstein, Juan Gomez, and Brian Jones own real estate brokerages that are on the three corners of one busy intersection. They meet and decide they will all raise their commission rates to the same percentage and try to convince other area brokers to agree to do the same. What are they guilty of? a.) illegal monopoly b.) ostensible partnership c.) price fixing d.) competitive trust
price fixing (Commission rates must remain negotiable to maintain competition and give the public a choice. These three brokers are guilty of price fixing and are in violation of the anti-trust law.)
Mortgage lenders who supply mortgage funds directly to borrowers are known as a.) Fannie Mae. b.) organizational lenders. c.) primary lenders. d.) secondary lenders.
primary lenders.
Of the liens listed below, which is the superior lien that takes priority over the others? a.) mechanic's lien dated September 6, 2018. b.) judgment lien dated July 10, 2020. c.) vendor's lien dated November 6, 2019. d.) property tax lien dated January 1, 2020.
property tax lien dated January 1, 2020.
Which of the following is not one of the five general property rights in the "bundle of rights"? a.) exclusion b.) control c.) proscription d.) disposition
proscription (The "bundle of rights" lists the basic property rights associated with real estate ownership. They are possession, control, disposition, exclusion, and enjoyment.)
When there is a transition from single-agent broker to transaction broker, what must the single-agent broker do? a.) inform the client of the transition before showing property b.) get a verbal agreement from the client for the transition c.) provide the client with the form required by statute and obtain his/her written consent d.) no action is necessary since the agent's duties will increase
provide the client with the form required by statute and obtain his/her written consent (F.S. Chapter 475 provides a form that must be approved and signed by the client prior to engaging in any further real estate activities.)
Which of the items below is not required to be included in a valid metes and bounds legal description? a.) a valid, definite starting point. b.) the proper distances between corners of the property. c.) the correct directions represented by the corners of the property. d.) reference to a conspicuous monument, such as a tree or rock.
reference to a conspicuous monument, such as a tree or rock.
In real estate law, the Statute of Frauds is a reference to the a.) adequacy of terms. b.) legality of the object of the contract. c.) conduct of dishonest, fraudulent business deals and related legal remedies. d.) requirement that to be enforceable, contracts must be in writing or penalty performed.
requirement that to be enforceable, contracts must be in writing or penalty performed.
Failure to complete the post-licensing required education prior to the renewal deadline will cause the license to become void. A sales associates may re-qualify by a.) retaking the pre-license course, passing the end-of-course exam, and passing the state examination. b.) waiting 30 days and retaking the post-licensing course. c.) paying a fine of $250 and passing the state licensing examination again. d.) passing the licensing state examination again.
retaking the pre-license course, passing the end-of-course exam, and passing the state examination.
A listing contract must include all the following EXCEPT a.) the terms on which the broker will be paid b.) asking sales price c.) school district information d.) length of time the listing contract is in force
school district information
When property is transferred, the seller provides a guarantee that he owns the property and has the right to sell it. This is called the covenant of encumbrances. further assurance. quiet enjoyment. seisin.
seisin.
In an agreement between a Buyer and a Broker, all the following are usually included EXCEPT a.) terms of the agreement. b.) retainer and/or compensation. c.) parties to agreement. d.) sellers' obligations.
sellers' obligations.
A lawsuit in which a plaintiff seeks to have the court force the other party to perform according to a contract is called a suit for a.) liquidating damages. b.) specific performance. c.) compensatory damages. d.) exemplary performance.
specific performance. (Specific performance is the remedy sought by the injured party where they order the party attempting to breach the contract that they must fulfill the contract terms.)
Mr. Allman, a real estate licensee, served a term in prison for a crime not related to his real estate brokerage. Mr. Allman's license may be a.) suspended or revoked. b.) kept active until next renewal date. c.) subject to an administrative not to exceed $15,000. d.) voided until continuing education is completed.
suspended or revoked. (The commission may place a licensee on probation or may suspend a license for a period not exceeding 10 years; may revoke a license, registration, or permit; may impose an administrative fine not to exceed $5,000 for each count or separate offense)
A disclosure summary from seller to buyer regarding a mandatory homeowners' association is included in which Florida law? a.) the Homeowners' Association Disclosure, Chapter 475, F.S. b.) the Homeowners' Association Disclosure, Chapter 720, F.S. c.) none, as no such law exists. d.) one that has been repealed.
the Homeowners' Association Disclosure, Chapter 720, F.S.
In the U.S., there are two primary theories that states use to determine the nature of a property's legal ownership when a mortgage is involved. The legal theory followed in Florida is a.) the Title Theory. b.) the Mortgage Theory. c.) the Prime Rate Theory. d.) the Lien Theory .
the Lien Theory .
Regarding adjustable-rate mortgages, which statement is INCORRECT? a.) any interest rate adjustment must be linked to some specific index, and it must be specified in the original loan documents. b.) the borrower must be allowed to prepay the mortgage in whole or in part, but the bank may impose a prepayment fee. c.) the lender shall supply the borrower with a statement concerning the fees to be charged in connection with the loan, including fees dues at the closing. d.) the bank offering the mortgage is required to allow an assumption of the mortgage by a new purchaser.
the bank offering the mortgage is required to allow an assumption of the mortgage by a new purchaser. (As non-conventional loans, adjustable-rate mortgages can be assumable but are not required to be so.)
The only way to remove an easement is by a.) a survey. b.) a sale of the property. c. the posting of a notice. d.) the decision reached by a court.
the decision reached by a court. (An easement cannot be removed without a legal remedy)
When a broker employs a real estate sales associate, the licensee has a.) no obligations to the broker's clients. b.) only a fiduciary duty to his broker. c.) the same obligations than his broker for their clients. d.) no fiduciary obligations.
the same obligations than his broker for their clients.
Which are not considered physical components of real estate? a.) surface rights. b.) air rights. c.) subsurface rights. d.) timber rights.
timber rights.
A Florida-based title company will hold the escrow funds for a real estate transaction. The sales associate must include which three items on the purchase agreement? a.) title company's name, address and telephone number. b.) title company's name, email address and telephone number. c.) title company's name, agent name and telephone number. d.) title company's license number, address, and telephone number.
title company's name, address and telephone number. (If a title company is maintaining the escrow funds, the purchase agreement must include the name, address and telephone number of the title company.)
The primary purpose the first Florida Real Estate Commission formed in 1927 was a.) to create a commission for oversight. b.) to determine how the Commission would be structured. c.) to prosecute violators of the Real Estate Act. d.) to protect the public.
to protect the public.
The owner of a condominium development has hired a real estate licensee to sell units for him that will be built over the next year. He tells him that people of a certain sex, race, or religion should be told all the units are sold. What should the licensee do? a.) comply with the owners' request b.) obtain legal guidance c.) disregard the owner's request by showing the units to all d.) withdraw from that employment
withdraw from that employment
A licensed real estate broker is estimating the costs for the closing of a residential property that sold for $152,500. The buyer is assuming an existing mortgage of $85,500, and taking out a new, second mortgage of $17,000. Based on this data, how much is the combined total cost for the documentary stamps on the deed, the documentary stamp on the note, and the intangible tax? a.) $1,067.50 b.) $1,426.25 c.) $1,460.25 d.) $1,101.50
$1,460.25 (Taxable units for the deed: $152,500 / 100, rounded to nearest dollar = $1,525 Stamp tax on the deed = $1,525 x 0.7 = $1,067.50 Taxable units for the notes: ($85,500 + $17,000) / 100, rounded to nearest dollar = $1,025 Stamp tax on the note = $1,025 x 0.35 = $358.75 Intangible tax = $17,000 x 0.002 = $34.00 Total taxes = $1,067.50 + $358.75 + $34.00 = $1,460.25)
Remuneration received for a broker price opinion (BPO) or comparative market analysis (CMA) represents a brokerage activity and must be paid a.) straight to the sales associate. b.) to the sales associate's broker. c.) to the escrow account. d.) in cash.
to the sales associate's broker.
What is the final legal act in an eviction procedure? a.) The landlord serves a notice to the tenants giving them 3 days to move out due to non-payment of rent. b.) The landlord files a complaint for eviction with the county. c.) After the tenants are served a writ of possession, the landlord begins to remove their personal property from the rental unit. d.) The tenants defend their right to remain on the property.
After the tenants are served a writ of possession, the landlord begins to remove their personal property from the rental unit. (The clerk of court issues a writ of possession. This is signed by the sheriff and placed on the rental property or handed to the tenant, who has 24 hours to vacate. As soon as the sheriff signs the writ of possession, the landlord may begin to remove the tenant's personal property from the rental. This may be done with the sheriff present.)
Brad, a sales associate, and his broker had a disagreement. Brad decided to walk out and go half a mile down the road to work for another broker. Which of the following statements is correct? a.) Brad must be registered with FREC under the new broker before operating there. b.) The previous broker must agree to the transfer. c.) Brad must wait 30 days before working with the new broker. d.) Brad must obtain a new license.
Brad must be registered with FREC under the new broker before operating there. (Sales associates must file notice with FREC when changing employers and they cannot perform any real estate services until the change is official.)
Of the following statements, which is INCORRECT concerning a VA loan? a.) The borrower may pay off the loan before the due date without receiving a penalty. b.) Discount points must be paid by the seller. c.) There is usually a funding fee charge for the VA loan guarantee. d.) Surviving spouses of veterans who have not remarried may be eligible for a VA loan.
Discount points must be paid by the seller.
Which of the following is NOT true regarding an adjustable rate mortgage (ARM)? a.) They have a low interest rate. b.) They have a low interest rate at the start of the loan. c.) A payment cap can cause negative amortization. d.) The interest rate is not fixed over the life of the loan.
They have a low interest rate. (An ARM begins with an initial low interest rate (teaser rate) and the interest rate changes over the life of loan based upon the up and down movements of an index. An ARM with a cap on the monthly payment can have negative amortization if the interest rate rises such that the interest portion on the monthly payment exceeds the amount of the payment cap.)
A prospective renter purchases a list of rental properties from a broker for $250. The prospective renter is unable to find a suitable property, and requests a full refund within 30 days. The broker gives him back $50, and the 30-day limit expires. Could the broker be subject to disciplinary action? a.) No, as long as the broker refers the prospect renter to another agent. b.) No, if the broker tried to find a place. c.) Yes, the prospect renter is entitled to a 75% refund if requested within 30 days. d.) Yes, because the prospect renter is eligible to a 100% refund.
Yes, the prospect renter is entitled to a 75% refund if requested within 30 days.
An owner who sold property included a clause in the deed that one half of the property must remain in its natural state for wildlife habitat. This is an example of the covenant of quiet enjoyment. a deed restriction. a restrictive covenant. a public restriction.
a deed restriction. (A deed restriction affects a single piece of property, limiting its use for the purchaser as well as any future purchasers. These are private restrictions that come straight from the grantor.)
The comparative sales approach is very similar to the Comparative Market Analysis in that a.) the result is considered to be the median value. b.) adjustments are made to the comparable properties. c.) adjustments are made to the subject properties. d.) the subject property must have sold recently.
adjustments are made to the comparable properties.
Which is not considered a physical component of real property? a.) alluvial rights b.) air rights c.) subsurface rights d.) surface rights
alluvial rights
A Veterans Affairs (VA) mortgage may be assumed by a.) only a veteran, active duty military, or a surviving spouse. b.) mortgages cannot be assumed. c.) anyone who qualifies with the lender. d.) the borrower's immediate family.
anyone who qualifies with the lender. (A VA loan mortgage may be assumed by anyone that meets all the financial and underwriting eligibilities. The original borrower will not be able to reuse their VA loan benefits until the new borrower has paid the mortgage UNLESS the new borrower also qualifies for a VA loan.)
Florida primary residences qualify for up to $50,000 in homestead tax exemption. The amount is deducted from the a.) last available sales price when calculating taxable value. b.) latest sales value. c.) taxable value. d.) assessed value when calculating taxable value.
assessed value when calculating taxable value.
Once sales associates have completed their required post-licensing education, they must subsequently complete during every 2-year license period a.) only 3 hours of law and legal updates. b.) 14 hours of law and legale updates. c.) at least 14 hours of continuing education for active and inactive licensees. d.) at least 14 hours of continuing education for active licensees, only.
at least 14 hours of continuing education for active and inactive licensees.
A broker who has an open-listing agreement with a seller finds a qualified buyer but is in a serious auto accident and is hospitalized before the purchase offer can be delivered to the seller. The interested purchaser stops by the seller's home and they work out the details and complete the sale with only an attorney's assistance. The broker could claim a commission because a.) an open listing guarantees the broker a commission if either the broker or seller sells the property. b.) it was through the broker's efforts that a buyer was found for the seller. c.) the seller and buyer might have met without the help of the broker. d.) the broker did not follow through on the transaction to its conclusion.
it was through the broker's efforts that a buyer was found for the seller. (In an open listing, the seller lists the home with multiple agents with the understanding the only the agent who secures a buyer will receive a commission.)
Johnson and Ford owned a warehouse together. Ford died last year, and his ownership interest passed to Johnson rather than to Ford's heirs. Johnson and Ford most likely held title to the warehouse as a.) tenants in common. b.) joint tenants, with right of survivorship. c.) tenants by the entireties. d.) tenants at will.
joint tenants, with right of survivorship.
Which of the following business entities CANNOT register as a real estate brokerage? a.) joint venture b.) sole proprietorship c.)limited partnership d.) limited liability corporation
joint venture
George has a mortgage on his home with a local bank. He has a deed stating he is the owner of the property, but he still owes most of what he borrowed to the bank, and the remaining mortgage balance is an encumbrance on the title when George sells his home. George lives in a state that recognizes which mortgage theory? a.) lien b.) title c.) intermediate d.) standard
lien
Williams grants an estate to Kirkpatrick "for the life of Kirkpatrick." When Kirkpatrick dies, the estate will revert back to Williams or his heirs. The type of estate Kirkpatrick holds is a a.) life estate. b.) fee simple. c.) estate for years. d.) tenancy at will.
life estate.
Fannie Mae's purpose is to a.) make financing available for under-developed areas. b.) stimulate the mortgage market when construction has slowed to the point of threatening the national economy. c.) provide financial assistance for low-and middle-income housing. d.) purchase residential real estate loans in order to keep a uniform flow of funds in the mortgage market.
purchase residential real estate loans in order to keep a uniform flow of funds in the mortgage market.
Of the following, which one is NOT necessary for a real estate contract to be valid? a.) recording b.) competent parties c.) consideration d.) offer and acceptance
recording (A valid contract has four essential elements: contractual capacity, offer and acceptance, legality of object, and consideration.)
Julie, a sales associate, terminates her employment with ABC Realty and goes to work for XYZ Realty. She takes with her originals of all the listing contracts she obtained for ABC Realty. Julie is a.) susceptible to be charged of larceny. b.) susceptible to be charged of misrepresentation. c.) in her rights to keep these listings. d.) in her rights as long as she don't share the listings with her new employer.
susceptible to be charged of larceny. (Larceny refers to the theft crime, in which a person takes the property of another person or company, without express consent or permission. The physical removal of records from a broker's office after no longer being employed by the broker is theft and can be reported as criminal activity.)
Vanessa's license has been involuntarily inactive for 20 months. He has not completed the Continuing Education courses required to renew his sales associate's license. What must he do to reactivate his license? a.) send an appeal to FREC b.) sign up to take the pre-licensure course over again c.) take a 28-hour reactivation course d.) take the Continuing Education Courses as soon as possible
take a 28-hour reactivation course (If a license is involuntarily inactive for more than 12 but less than 24 months, the 28-hour reactivation course is required. It is too late to take the CE courses; if he waits until his license becomes null and void at 24 months, he will have to start over as if he never had a license.)
Best friends Eduardo and Daniel buy 20 acres with a plan to build rental apartments. From their heirs' point of view, which would be the best way for them to hold title? a.) tenants in common. b.) joint tenants. c.) tenants by the entireties. d.) joint-life tenants.
tenants in common.
In the real estate industry, property management has become more popular because of a.) a lower demand for commercial properties. b.) a higher demand for rentals. c.) the increase in absentee owners. d.) higher regulations on real estate transactions
the increase in absentee owners.
Regarding ad valorem taxes, which document must be given to a prospective Florida home buyer? a.) the homestead tax disclosure summary b.) the county tax disclosure summary c.) the property tax disclosure summary d.) the state tax disclosure summary
the property tax disclosure summary (The Property Tax Disclosure Summary considers ad valorem taxes must be presented for a prospective buyers in Florida because higher property taxes could be payable due to change of ownership or property improvement.)
A mortgage lien is an example of what type of lien on property? a.) involuntary lien b.) construction lien c.) judgment lien d.) voluntary lien
voluntary lien (By securing a mortgage, the borrower is voluntarily accepting the financial institution's lien on the property until the loan is paid off.)
