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Florida Real Estate - Practice exam 100 Question
Practice exam 100 Question
Terms in this set (100)
A sales associate was issued a citation for failing to timely notify the Commission of her change of address. How many days does the licensee have to either pay the citation or file an objection to the alleged violation?
Pam's home has an assessed value of $301,000. She qualifies for the Florida homestead exemption. The area she lives in has the following taxes: County tax rate is 8.6 mills, City tax rate is 4 mills and the school district tax rate is 6.1 mills. How much will the property taxes be?
[Section 18 Slide 31] $301,000 -$50,000 = $251,000 x .0126 (8.6 mils + 4 mils =12.6 mils) = $3,162.60; $301,000 - $25,000=$276,000 x .0061 (6.1 mils) = $1,683.60; $3,162.60+ $1,683.60 = $4,846.20
What are the similarities between a Business Brokerage and a Real Estate Brokerage?
1) Both deal with Real Property
2) Both require a Real Estate License
3)Both involve Long-term Liabilities
A rental investment property is scheduled to close on September 10. The buyer gets day of closing. The rent is $1900. How much is debited and/ or credited at closing and to whom?
$1330 Credit to Buyer and $1330 Debit to Seller
[Section 14, Slide 63] There are 30 days in September, so there are 21 days that the seller owes the buyer including the day of closing. Divide $1900 by 30 = 63.3333333333 x 21 days =$1,330
A home was purchased with a down payment of $36, 000 and a loan of $200,000 at 6.5% for 30 years. Monthly payments are $1,264.14. What is the loan to value ratio?
[Section 12 Slide 52] $36,000 + $200,000 = $236,000 Purchase price; $200,000 � $236,000 = 0.8474576271 or 85% rounded.
In case of breach by the buyer, most real estate contracts include a provision that the earnest money be regarded as:
Liquidated damages to the seller
Which is an example of a functional obsolescence?
One car garage
A tenant signs a lease for less than a year. What is his interest in the property?
To substitute a borrower in a mortgage with another borrower is called:
Assignment of mortgage
An active Florida broker accompanies her husband when he goes on active military duty in Ohio for five years. She is not active in real estate in Ohio. Upon their return to Florida, she
Need not complete any continuing education or reactivation education for those five years and for up to 2 years after honorable discharge
Effective age means:
How old the building or house appears to be
The indestructability of land refers to:
If religion is a protected class under the Fair Housing Act, how can a church restrict the renting of homes to only members of their church?
Churches and private clubs are exempt as long as they do not discriminate in accepting membership.
Which statement is associated only with the transaction broker relationship?
The customer is not responsible for the acts of the licensee
You are appraising a 5 year old home. If the livable square footage is 3,500 with a cost of $95 to replace according to a cost-estimating service and the 400 square foot garage can be replaced at $60 a sq foot, calculate the reproduction cost of the structure
[Section 16 Slide 89]
95 x 3,500 = $332,500;
$60 x 400 = $24,000; $332500 + 24000 = $356500
Which tenancy has right of survivorship?
What section is directly below section 7 in a township?
Compensatory damages are
The amount of money equal to the extent of loss awarded to the damaged party when there has been a breach of contract.
Buyer Ralph didn't like the results of an inspection report. He requested to cancel his contract and demanded his earnest money back. Seller Heather denied his request noting that he was one day past the time that was allotted to cancel the contract. Buyer Ralph claimed Seller Heather was miscounting the dates and both demanded that Broker Smith return the money to each of them. Broker Smith waited 15 days, hoping the situation would resolve, before notifying FREC of the conflicting demands. How long does Broker Smith have left to implement a settlement procedure?
Sales Agent Sam employed by XYZ Realty has a house listed for sale for Seller Tom. He is working as a single agent. Broker Associate Cliff, also employed by XYZ Realty brings a contract from his buyer Sue for Tom's property. What must Agent Sam have signed to allow both Tom and Sue be represented by XYZ Realty?
Consent Transition to Transaction Broker Notice
The period of time during which the terms of a contract may be enforced according to the statute of limitations are:
Five years for written contracts and 4 years for parol contracts
It is unlawful for a real estate licensee to prepare an appraisal under which circumstance?
For a transaction involving a federally regulated transaction
Which person is NOT EXEMPT from licensure?
Attorney who charges a fee to negotiate a real estate contract for a client
Satisfaction of mortgage is also known as:
Release of mortgage
A sales associate received an earnest money deposit on Tuesday. The sales associate forgot about the check and gave it late to his Broker on Thursday. By when must the broker make the deposit?
By the end of the day Friday
You own a residential investment property that was purchased at $291,000. The land associated is valued at $73,000. Using the IRS straight line method which statement is correct?
The depreciable basis will be $218,000 depreciated over 27.5 years.
Janice Raney wants to open a brokerage office operating as Crate Home Realty. She is preparing the sign to be placed by the front entrance. What information does the sign NOT need to state
The name of the sales associates working under her
What interest does a son hold in property, if the mother held a life estate inherited from her spouse, with the son inheriting upon her death?
When vacancy and collection losses are deducted from annual potential gross income and income from other sources is added, the result is called:
Effective Gross Income
What are the elements of a valid contract?
Contractual capacity of the parties, offer and acceptance, legality of object, and consideration.
Subsurface rights not sold with the property could retain rights to:
Oil or minerals
Which statement is TRUE regarding homeowners association disclosure requirements?
The buyer cannot waive the right to void the contract if the disclosure has not been provided at the time of or before signing the purchase agreement
A listing with the purpose of selling property and obtaining a specified amount for the owner is called what?
A net listing
Contracts that cannot be performed within one year and contracts conveying real property must be in writing and signed to be enforceable according to the
Statute of Frauds
The premises section of a deed must contain all of the following EXCEPT:
Name of the lawyer giving an opinion of title
Which of the following items are not entered on the closing statement as a credit to buyer?
Homeowner Association Fees
The following of which groups are an example of Specific Liens
Construction Lien and a Mortgage Lien
Subordination of a mortgage is:
A later mortgage taking priority to the original
The Truth in Lending Act does not
Dictate to lenders how much interest rate to charge to a borrower
Federal Reserve Regulation Z requires the disclosure of
Loan origination fees
An agreement in which only one party promises to perform without receiving a reciprocal promise to perform from the other party is called a
A real estate broker is typically authorized by a principal to help in the sale of a house by acting as a
How many miles to one side of a township?
Fabulous Pools installed an in ground pool at the Robinsons. However, Mr. Robinson lost his job just as the installation was complete so he didn't pay the balance on the job. The owner of Fabulous Pools recorded a lien on the property and placed it in public records. This is known as
Giving Constructive Notice of the lien.
Florida Statute 20 governs
The executive branch of government
What is the state intangible tax when a buyer assumes a mortgage of $60,000 and takes out a new mortgage of $20,000?
$20,000 x .002= $40
When Bill rented his property he collected a deposit of $2,000 and an advanced rent payment of $1,000. Which of the following options is Bill NOT allowed to do with the money?
Place the money in an interest bearing account and keep the interest for himself
Which person would FREC define as a Florida Resident?
For application and licensing purposes, FREC rules define a resident of Florida as a person who has resided in Florida continuously for a period of four calendar months or more within the preceding year, regardless of whether the person resided in a recreational vehicle, hotel, rental unit, or other temporary or permanent location.
Jessi, an unlicensed real estate assistant, may NOT do which of the following activities
Show listed property
Which township is located 2 tiers south and 3 ranges west of T1N R1W?
Which business entity may register as a real estate brokerage?
Golf Realty let their real estate brokerage license lapse. No one at the office was aware of it, so everyone, including all the sales associates working under Golf Realty continued to practice real estate for five months before the error was realized. What could each agent be charged with as a result?
Which sales professional is allowed to use the phrase REALTOR® to describe his services?
A sales associate who has joined his local board of REALTORS® and the National Association of REALTORS®
A property report is required when?
Prior to a buyer signing a sales contract with a developer of 25 or more lots.
Articles of Incorporation should be presented to a prospective buyer of a:
Which Florida Statute requires sellers of property subject to a mandatory homeowners association to provide buyers with a disclosure summary?
A plea of nolo contendere is best described by which of the following situations
Mary didn't admit or deny a charge of possession of marijuana. Instead she chose not to contest it.
Which statement is TRUE regarding a title company holding the escrow funds?
Within 10 business days after the date the broker requests written verification of receipt of the deposit, the broker must provide the seller's broker with a copy of the verification
An open listing
Allows the owner to sell the property himself and to list it with any number of brokers. The first broker to secure a buyer gets a commission.
A broker wishes to be issued several broker licenses for business reasons. He may:
Hold multiple licenses
Florida Law presumes that a real estate agent is acting as a Transaction Agent unless the intention to change the relationship has been determined appropriate by
Clark paid $250 for a rental list in a competitive area. After several days of looking for properties he realized that the list wasn't current at the time it was sold to him. He requested a refund in writing. How much would he get back?
The brokers of Greater Gulf Realty and Brackish Bay Realty agreed to only work with clients near their own offices to allow each to be able to get more fees per home sold. This is illegal and an example of?
A broker associate listed a villa home for $320,000 as a single agent. A sales associate from a competing firm called the listing associate to inform them of a verbal offer of $250,000. The listing associate did not present the verbal offer to the seller. Which statement applies to this situation?
The listing associate was required to present the verbal offer to the seller when acting as a single agent or a transaction agent
Florida Statute 475 requires disclosure be made in which situation?
The sale of a duplex
An assumed mortgage has interest paid:
A licensed real estate sales associate and broker desire to open a new real estate brokerage firm as general partners. They may
Not do so
When is a quitclaim deed normally used?
To clear the title of possible trouble spots or clouds on the deed.
A personal loan to pay medical expenses is protected from foreclosure procedures by:
An owner of an apartment complex pays a previous tenant a $50 finder's fee for referring a person who becomes a new tenant. This arrangement is not
Legal unless the previous tenant has a real estate license.
The formula to calculate adjusted basis is
The purchase price + costs to buy the property + capital improvements
Who ultimately is required by the IRS to collect and pay the Foreign Seller tax?
Denying loans, insurance coverage, or to refuse to rent or sell in an area based on the racial and ethnic makeup is illegal under the Fair Housing Act and is called
While on a fishing trip in Montana, a Florida real estate sales associate pleads guilty to a misdemeanor. Is the Florida licensee required to notify the Florida DBPR?
Yes, the sales associate must report the guilty plea to the DBPR within 30 days
Irving, the broker of Crustacean Realty, had conflicting demands from a buyer and a seller regarding an escrow deposit held by the brokerage. The settlement procedure Irving elects is to deposit the money with the court as he does not intend for the brokerage to make a claim on the deposit. Which of the following requests to the court would Irving make?
Request an interpleader
Geraldo contracted with Sue for Sue to buy his property. When Geraldo backed out of the contract refusing to sell it to her for no valid reason, Sue took Geraldo to court. The judge ruled in Sue's favor. Sue's contract was
An appraiser found three comparable properties however she believed that one of the properties was significantly more relevant to the true value of the subject property. In this case, the appraiser would most likely
Assign weighted values to each of the three properties
Which matches the definition of a gross lease?
When the tenant pays a fixed rent and the landlord pays the property expenses such as taxes and insurance. Utilities are paid as agreed in the lease.
Which scenario would not require that agency disclosure documents be maintained on record for five years
The sale of a single family home where the broker acted as a transaction agent from the outset of the relationship
What statement is FALSE regarding the Equal Credit Opportunity Act?
A person can be denied for a loan if they are too close to retirement age.
Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans differ in that
FHA insures the mortgage and establishes a maximum mortgage amount; VA guarantees the mortgage and has no legislated down payment requirement
Which item would not be classified as a fixture?
[Section 8 Slide 49]
A subject property has four bedrooms. A comparable property sold for $275,000 with only 3 bedrooms. The appraiser attributes a $5,000 to the 4th bedroom. How is the adjustment made?
Plus $5,000 to the comparable
Which statement does NOT describe an owner's title insurance policy?
The policy is issued for an amount equal to unpaid balance of the mortgage
Buffer Zone is an area of land that:
Separates different land use areas
A Florida real estate sales associate who moves and becomes a nonresident of Florida must notify the Commission of the change of residency within how many days?
If the Federal Reserve votes to lowers the discount rate, how will this likely affect interest rates on short-term credit?
They will likely decrease
What is the value of a property with a Net Operating Income of $175,000 and a capitalization rate of 7.5%?
I (NOI) / R (Capitalization Rate) = V (Value); $175,000 � .075 = $2,333,333.33 and round
Receding water uncovers additional land. This is called:
N 1/2 of NW 1/4 of SE 1/4 of section 8 contains how many acres?
When the borrower has title to the property and the lender has the lien, it is a:
Lien theory state
Which direction is the opposite of North 20 Degrees East?
South 20 degrees west
The note contains which of the following?
Payment schedule, loan amount, interest rate
What is a Lender's yield on a conventional loan if they charged 5% interest and 3 points?
Each point adds 1/8 to the lenders yield.
3 points = 3/8;
Convert to decimal 3 / 8 = 0.375 + 5% = 5.375%
A due on sale clause in a mortgage
Makes a mortgage non- assumable
A developer purchases 2 lots with 120 ft. frontage each and paid $120,000 total for both lots. He divides these lots into 4 lots of 60 front feet each and sells them for $600 per front foot. What is the developer's percentage of profit?
2 x 120 ft = 240 ;
240 feet of frontage x $600 = $144,000
Sale ; $144,000 - $120,000 = $24,000
Divide by $120,000 = 0.2 or 20%
Liquidation Value Is
the value associated with a rapid sale. The amount of dollars a property should bring in a a foreclosure sale is an example.
The Covenant of seisin, covenant against encumbrances, covenant of further assurance, covenant of quiet enjoyment, and the covenant of warranty forever are all included in what type of deed?
General Warranty Deed
Which of the following documents may a real estate licensee complete?
Buyer broker agreement
The state of Florida requires all brokerage offices to have at least one enclosed room in a building of stationary construction and:
An entrance sign
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