19243478
| Question | Answer |
| What action will be taken against a broker’s license when a claim NOT associated with an escrow disbursement order is paid from the Real Estate Recovery Fund? | Mandatory suspension of the license until the licensee has reimbursed the fund, including interest. |
| Caveat emptor applies the MOST in which type of relationship? | Buyer who is independently looking at “for sale by owner” property. |
| A written contract for sale and purchase of commercial property that utilized designated sales associates failed to close. Which statement is TRUE regarding the retention of brokerage relationship disclosure documents/ | The broker must retain the disclosure documents for five years even if a nonresidential transaction that utilized designated sales agents fails to close. |
| Which action associated with water rights will cause a decrease in land mass? | Alluvion |
| What is 9.26 mills converted to decimal form? | .00926 |
| Which statement is FALSE concerning the lead-based paint disclosure requirements? | If requested by the buyer, sellers are required to have residential properties built prior to 1978 tested for lead-based paint. |
| A real estate license application received by the DBPR expires after what period of time? | Two years. |
| A Florida-licensed attorney is exempt from what education requirement? | Sales associate pre-license course. |
| Which statement is TRUE regarding a sales associate’s registered name? | A sales associate may form a limited liability company for income tax purposes and register under the licensee’s name with the abbreviation LLC after the licensee’s name. |
| The established useful asset life for nonresidential income-producing property under the IRS code is what number of years? | 39 |
| A prospective licensee explains on his license application that ten years ago he entered a plea in a criminal court in which he did not admit or deny the charges. This type of plea is called: | Nolo contendere. |
| Which statement is FALSE regarding postdated earnest money deposit checks? | The FREC may discipline a broker for accepting a postdated check that becomes uncollectible due to no fault of the broker. |
| There is a presumption in Florida law that businesses have some sort of real property involved, either land and physical improvements. For this reason, in Florida, in order to list a business: | An active real estate license is required. |
| Which type of contract allows the legal title to remain with the seller while the buyer has equitable title in the property? | Contract for deed. |
| A sales associate receives a deposit from a buyer on Wednesday morning. The associate must: | Deliver the deposit check to the employing broker by the end of business on Thursday. |
| Which feature applies to the lender’s (mortgagee) title insurance policy? | Policy is transferrable. |
| Which type of business organization may NOT be licensed as a real estate broker? | Joint venture. |
| Constitutional homestead law does NOT protect homesteaded property from forced sale due to nonpayment of: | Special assessments. |
| A group license: | Allows a sales associate or broker associate employed by an owner-developer to sell property for all the affiliated entities owner by the developer. |
| How many days’ notice is required to terminate a week-to-week tenancy at will? | 7. |
| Which government-owned entity guarantees mortgage-backed securities that carry the full faith and credit guarantee of the US government? | Ginnie Mae. |
| New owners acquire residential property before January 1st of this year. The owners Hve until what date in the current year to file for the Florida homestead tax exemption? | March 1. |
| A type of real estate investment that offers diversification and liquidity and that is similar in form to a mutual fund is called: | A real estate investment trust. |
| Which item would most likely be classified as a fixture once incorporated into real property? | Ceiling fan. |
| A broker complied with an escrow disbursement order (EDO). Later, the buyer sued the broker and was awarded a judgment of $20,000. The buyer’s attorney fees and court costs totaled $4,500. The real estate broker’s attorney fees totaled $5,000. What is the maximum amount that can be paid from the Real Estate Recovery Fund as a result of the judgment? | $29,500. |
| Which statement regarding state intangible taxes on new mortgages is TRUE? | The rate is two mills per dollar of new debt. |
| The legal evidence that gives a purchases the right of occupancy in a cooperative unit is a: | Proprietary lease. |
| The covenant of further assurance is included in which type of statutory deed? | General warranty deed. |
| If applicable, prorated rental income paid in advance will normally appear on the closing disclosure as: | A credit to the buyer; debit to the seller. |
| Which type of cost is calculated using similar building materials but not identical building materials resulting in the equal utility as compared with the subject property? | Replacement. |
| Which type of deed would most likely be used to clear a cloud or defect on title to real property? | Quitclaim deed. |
| Which legal instrument states the loan amount, interest rate, repayment method, and maturity date? | Note. |
| Which term describes a strip of land that separates residential homes from commercial development? | Buffer zone. |
| A sales associate receives an earnest money deposit on Friday morning. Assuming no legal holidays are involved, the broker has until the end of business on which day to place the earnest money in escrow? | Wednesday of the next week. |
| The brokerage relationship disclosure requirements in Chapter 475, Florida Statutes, do NOT apply to which transaction? | An agreement between the broker and the seller to auction a residential property. |
| The direction opposite South 45 degrees West in a metes and bounds description is: | North 45 degrees East. |
| Which item would be classified as a fixed expense in the calculation of net operating income? | Hazard insurance. |
| Florida law requires a disclosure at the time of or before entering into a contract for sale for which environmental hazard? | Radon |
| A 2,500 square foot home has a built-in swimming pool and a brick exterior. The surrounding homes are approximately 2,000 square feet and have a stucco exterior with no pool. An appraiser deducts value from the brick home because it is surrounded by smaller homes. Which appraisal principle applies to this situation? | Regression |
| The SE ¼ of the NW ¼ and the NE ¼ of the SW ¼ of Section 19 contains how many acres? | 80. |
| A parcel of real estate has been left to a spouse through her husband’s will for the wife’s use and enjoyment during her lifetime, with the provision that the property goes to the wife’s stepson at her death. What interest does the stepson have? | Remainder estate. |
| A small commercial property has a net income of $60,300 and an annual gross income of $95,000. The property recently sold for $620,750. What is the gross income multiplier for this property? | 6.50. |
| What type of lease arrangement requires the tenant to pay a fixed rent amount plus property expenses such as property taxes and hazard insurance? | Net lease. |
| Can an insurance company refuse to provide insurance coverage to applicants within a particular neighborhood because of the racial and ethnic characteristics of the neighborhood? | No, to do so is redlining, which is a violation of the Fair Housing Act. |
| On an adjustable rate mortgage loan, the lender’s estimated overhead costs plus profit equals the lender’s: | Margin. |
| A car dealer promises to give a $5,000 bonus to the first salesperson who sells 10 cars this week. Which type of contract is this? | Unilateral. |
| Within how many days must a licensee notify the Department of Business and Professional Regulation of a change in current mailing address? | 10. |
| Lynn Amherst is a sales agent for Excel Realty. Lynn is preparing a classified ad for a listed property. The company’s phone number is 222-1010. Lynn’s cell phone number is 333-2020. Which excerpt conforms to the rule regarding advertising. | Call Lynn Amherst, Excel Realty 333-2020 (cell). |
| An elderly couple has paid off their 30-year mortgage in full. They receive Social Security and a pension. The couple is in need of additional income due to increasing medical expenses. What type of mortgage might be beneficial in this situation? | Reverse |
| When leased property is sold, the security deposit and advance rents: | Must be transferred to the new property owner at closing. |
| When a consumer files a complaint against a real estate licensee that contains facts indicating that a violation of the rules of the Florid Real Estate Commission has occurred, the complaint is said to be: | Legally sufficient. |
| A broker who chooses to maintain an escrow account may NOT establish the account in a: | Stock brokerage company doing business in Florida. |
| Which clause in a mortgage instrument allows the mortgagee to advance the due date of the unpaid balance if the borrower defaults? | Acceleration |
| Which valuation product requires the services of a licensed or certified appraiser? | Appraisal assignment to originate a federally related loan. |
| A property costs $32,670 per acre. What is the cost per square foot of the property? | $0.75. |
| Which statement most accurately describes the first year of a 30-year level-payment fixed rate mortgage? | Monthly payments remain constant and the interest portion comprises the majority of the payments. |
| Which characteristic is a disadvantage of investing in real estate? | Management considerations. |
| A Social Security number is: | Required by Florida law to verify that license applicants are current on child support payments. |
| A $5,000 fine and/or up to five years imprisonment is the maximum penalty for which type of violation? | Third-degree felony. |
| Which type of alienation is voluntary? | Deed. |
| A Baptist church owns a convalescent home for its members. The church only admits members of its church to the convalescent home. Which statement is TRUE regarding this practice? | This is permissible under the Fair Housing Act. |
| A local lender charges two discount points on a conventional mortgage loan. How much will the discount points increase the yield to the lender? | 0.25%. |
| The statute of limitations for a parol contract is for how many years? | 4. |
| Which document must a prospective buyer of an existing (resale) condominium unit receive? | Articles of incorporation of the association. |
| A landlord who requires a security deposit may: | Keep the deposit in a separate interest-bearing Florida bank account and pay the tenant 5% per year, simple interest, or at least 75% of the annualized average interest rate payable on the account. |
| Which item is entered on the closing disclosure as a credit to the seller? | Total purchase price. |
| A seller lists her vacant lot with a real estate company. The seller specifies in the listing agreement the minimum amount of cash she must receive at closing. What type of listing does this describe? | Net |
| FHA mortgage lenders: | Allow up to 31% for the housing expense ratio. |
| A transaction broker does NOT have which duty? | Obedience. |
| Ten years ago a vacant lot in a subdivision was purchased for $30,500. The owner hired a general contractor to build a home on the lot. The contractor charged $375,000. The homeowner is planning to refinance the mortgage. The bank recently appraised the home at $410,000. What is the value of the property? | $410,000. |
| The interest on an assumed mortgage is entered on the closing disclosure as a: | Debit to the seller and a credit to the buyer. |
| A buyer offered $225,000 for a seller’s property. The seller countered at $250,000. The buyer did not accept the seller’s counteroffer. The seller told her broker that she was revoking the counteroffer and accepting the buyer’s original offer. Which statement is TRUE regarding this situation? | The seller cannot now accept the original offer because it was killed by the counteroffer. |
| When the zoning code causes an undue hardship on a property owner, the zoning board of adjustment is authorized to issue a: | Variance |
| A real estate broker received a citation and a $200 fine. The citation was issued in error. What should the broker do? | File a written objection within 30 days explaining that the citation was issued in error. |
| Which Statement is TRUE regarding the Save Our Home amendment? | It limits how much the assessed value of the homesteaded property can increase in a given year. |
| A real estate agent has been licensed in Texas for one year. The licensee worked for a Texas broker but recently moved to Florida. The agent wants to open his own brokerage in Florida so he recently completed the Florida broker pre-license course. Is the Texas licensee eligible to take the Florida broker license exam? | No, the Texas licensee must earn at least 13 months additional real estate experience before he qualifies to take the Florida broker license exam. |
| The first step in protesting the assessed value of real property is to: | Contact the county property appraiser or a representative. |
| Property values have increased in a residential neighborhood approximately eight percent per year. An appraiser chooses a comparable sale that occurred six month ago in the same neighborhood. Which adjustment will be required? | Plus four percent for market conditions. |
| A contract for sale and purchase stipulates that the seller will pay for title insurance. The contract further states that the seller will choose the title insurance company. Which statement applies to this situation? | The seller may choose the title insurance company because the seller is paying for the title insurance policy. |
| What essential element is necessary for a contract to be valid? | Offer and acceptance. |
| Which statement is TRUE regarding voluntary relinquishment of a real estate license? | Voluntary relinquishment of a license does not involve disciplinary action. |
| The statute of frauds requires that: | Documents that transfer an interest in real estate must be in writing to be enforceable unless certain specific conditions exist. |
| The Florida Real Estate Commission does NOT have the authority to impose which penalty? | Restitution to the injured party. |
| Which statement about the economic concept of demand is FALSE? | The availability of building materials influences demand. |
| The Florida Real Estate Commission (FREC) fined a real estate licensee $5,000 and placed the licensee on probation as a result of a violation of Florida Statute 475. The FREC’s authority to impose discipline falls under which area of responsibility? | Quasi-judicial. |
| Which legal procedure is used to determine a fair price in an eminent domain action? | Condemnation. |
| The Florida Building Energy-Efficient Rating Act does NOT require: | The seller, at the seller’s expense, to conduct an energy-efficiency rating of the structure prior to closing. |
| What is the description of the township located due east of T3N, R2W? | T3N, R1W. |
| A prospective of a residential condominium unit sends written notification to the listing broker stating her desire to cancel the contract within the allowable rescission period. The seller instructs the broker to retain the earnest money deposit as liquidated damages. The broker is legally authorized to: | Return the deposit to the buyer. |
| If a tenant vacates a rental unit at the end of the lease period, how many days does the landlord have by law to return the security deposit to the tenant if the landlord does NOT intend to claim part of the security deposit? | 15. |
| A building rents for $32 per square foot with an index of 1.16. The index increases to 1.9. What is the adjusted rental rate? | $38.00 |
| You are analyzing an investment property. You forecast effective gross income to be $396,000. The operating expenses for this property, including a $4,400 reserve for replacements, total $176,000. What is the property’s net operating income? | $220,000. |
| A building is valued at $135,000 with an estimated 25-year useful economic life. The building has an effective age of five years. Using the age-life method, find the depreciated value of the building. | $108.000. |
| A homesteaded property is located in Orlando, Florida, in Orange County. The city tax is 8.1 mills, the county tax rate is 9.3 mills, and the school district tax rate is 6 mills. The homeowner is blind and has qualified for homestead exemption. The home has been assessed at $195,000. What must the homeowner pay in property taxes? | $3,531.39. |
| The city is repaving the streets in a neighborhood. The city will assume 35% of the expense. The city has approved a bid to pave the streets at a cost of $42 per linear foot. How much is the special assessment for a lot that measures 115’ by 120’? | $1,569.75. |
| A residential investment property is scheduled to close on September 10. The seller collected rent for September at the first of the month amounting to $950. According to the contract for sale and purchase, the buyer is due the rental income for the day of closing. Calculate the proration. | $665.00 debit to seller; $665.00 credit to buyer. |
| Calculate all applicable documentary stamp taxes and intangible taxes for the property located in Leon County. Purchase price $285,900 Earnest money deposit $15,900 Recorded first mortgage (assumed) $157,310 Second mortgage (new) $100,000 Cash at closing $12,690. | $3,102.20. |
| Closing date is February 12. The buyer is assuming the seller’s mortgage loan that has a principal balance of $212,500 at 3 ½% interest. The day of closing I charged to the buyer. What is the proration and how is it entered on the closing disclosure? | $224.14 debit to seller; $224.14 credit to buyer. |
| While working for a broker, a sales associate acquired a listing for $298,000 at 6% commission rate. A second sales associate, who works for another brokerage office, found the buyer for the property. The listing and selling brokers agree to a 50-50 split between the two offices. The property sold for $296,000. The selling broker kept 45% of the commission received by the selling office. How much did the selling office’s sales associate receive? | $4,884. |
| A residential zoning category requires at least 12,000 square feet per lot. The developer is reserving 25% of the land to streets, sidewalks, and a community center. The tract of land for development consists of 150 acres. How many residential lots are available for development? | 408. |
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