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State Exam 1 Michelle Early

Terms in this set (100)

Which of the following is not true concerning water rights?
Littoral rights are associated with land abutting a flowing waterway.
An unlicensed personal assistant may perform which activity?
Deposit earnest money in the escrow account
What is the continuing education requirement of a sales associate after the licensee has completed the post-licensing education requirement during the initial license period?
Active licensees and inactive licensees are required to complete at least 14 hours of continuing education during every two-year license period.
How is a sales associate's commission rate with the brokerage determined?
A sales associate's commission is determined with a negotiation between the sales associate and the broker.
How is the binder deposit shown on the Closing Disclosure Form?
Credit to the buyer
What is the status of a sales associates' license if he/she does not complete the required post licensing education prior to his/her first renewal cycle?
Null and Void
How are commission rates determined when a broker lists a seller's property?
Commission rates are arrived at by a negotiation between the broker and the seller.
Which of the following is a list of the required elements to make a contract valid?
competent parties, offer and acceptance, legal, consideration
The purchase price of a property is $500,000. The buyer's financials are as follows:The buyer put $50,000 in escrow.Thebuyer has $50,000 of his own money.The buyer is assuming the seller's mortgage of $85,000.The buyer is acquiring a new mortgage of $225,000
The buyer has decided to ask the seller to take back a mortgage. How much would the mortgage be if the seller takes back a purchase money mortgage from the buyer?
$90,000
A licensed real estate sales associate conducted an appraisal for a fee. The FREC found the licensee to be in violation of the Uniform Standards of Professional Appraisal Practice. Which statement is true?
The licensee is subject to FREC discipline.
Which mortgage clause allows the mortgagee the right to demand the outstanding loan balance plus accrued interest in the event that the borrower sells or transfers any interest in the property without the lenders prior written consent?
Due-on-sale Clause
Which of these describes of a non-freehold estate that includes a definite specified amount of time?
Estate for years
Which of the following is a set of administrative rules developed by The Florida Real Estate Commission?
Chapter 61j2
The Federal Reserve, or the "Fed" is the central bank of the United States. Which of the following statements is false about the "Fed"?
The Fed is a system of determining commission rates between a broker and a seller.
How many points would a buyer need to purchase to equal an increase in the lender's yield of 1%?
8 points
Which of the following is incorrect regarding property built before January 1st, 1978?
The seller's agent is responsible for delivering the lead-based paint disclosures to the buyer.
Three close friends own a nursery as joint tenants with right of survivorship. One owner died unexpectedly. Who owns the nursery?
The two owners remaining become the only owners of the nursery
The subject property is a three-bedroom, two-bath home with no garage. A comparable property is a three-bedroom, two-bath home with a garage. An appraiser has determined that the garage is worth $5,000. What adjustment should the appraiser make?
Subtract $5,000 from the comparable's transaction price.
Which of the following is incorrect concerning FHA and VA mortgages?
VA is a government insured loan and could be accompanied by an origination fee.
Which of the following liens would take priority?
Property tax lien filed on January 14th 2018
How is the intangible tax typically noted on the Closing Disclosure Statement?
Buyer debit only
Which applies if a licensee calls a broker's price opinion an appraisal?
The licensee could be punished by The Florida Real Estate Commission.
In which theory in mortgage lending does the borrower retain ownership during the loan period?
Lien theory
Which of the following describes an option contract?
A unilateral contract to keep open for a specified period of time an offer to sell or lease real property.
Who is responsible to deliver the HOA, (Home-Owner's Association) disclosure document to the buyer?
The seller/owner
When must the no brokerage or the non-representation disclosure form be shown?
Before showing property
Which of the following is true concerning taking listing contracts when a licensee leaves a brokerage?
If a sales associate takes original listing contracts, he could be charged with Larceny. If a sales associate takes duplicates of listing contracts, he could be charged with breach of trust.
In the event that a broker chooses not to have an escrow account, the funds are typically held at a title company or in an attorney's escrow account. If the funds are held at a title company or in an attorney's escrow account, what must be included on the purchase and sale contract regarding the title company or attorney?
Name, address, and phone number of the title company or attorney.
A broker sold an up to date and accurate rental list for a $700.00 fee. The potential tenant was unable to obtain a rental and requested a refund. Which applies?
If the potential tenant makes the request within 30 days, the licensee would be required to provide a refund of $525.00
Which of the following clauses or covenants in a deed states that the grantor owns the property and has the right to convey it?
Seisin
What kind of listing is used when the seller requires a specific amount of money from the transaction in order to list with a brokerage?
Net listing
When must a broker deposit funds into the escrow account?
Immediately
Which expenses associated with a principal residence are deductible for income tax purposes?
Property taxes, mortgage interest, points, and mortgage loan origination fees
Which type of easement would be created if the water company had the right to dig up an owner's property to install a water pipe?
In gross
What is the penalty for a first-time minor violation and how many days does a licensee have to correct the violation?
Notice of non-compliance/15 days
What is the opposite of NW 90 degrees S?
SE 90 degrees N
In the metes-and-bounds method of describing property which statement is true?
Metes refers to distance and bounds refers to direction
How do you find the capitalization rate of a property if you have the net operating income and the value, (sales price)?
Net operating income divided by the value, (sales price)
When individual parcels are released on a blanket mortgage loan, what type of clause is used?
Partial release clause also called a release clause
Which of the following statements is correct about the components of an adjustable-rate mortgage?
The index and the margin are the two components of an adjustable-rate mortgage, and the index is the economic indicator that adjusts the rate.
When there are less houses on the market than prospective buyers, what type of market is created?
Seller's market
If a real estate agent was charged with a first-degree misdemeanor, what law were they breaking?
Violating rental list laws
How do you find the value of a property, (sales price) if you have been given the capitalization rate and the net operating income?
The formula is the net operating income divided by the capitalization rate
The FHA and VA
are nonconventional loans that are backed by the federal government.
Which entity may register as a real estate brokerage?
Limited liability corporation
Which of the following is a list of everything that is required to be included on a brokerage office sign?
The trade name of the brokerage if one is used, the broker's name, and the words licensed real estate broker.
What is true about the members of the FREC?
There are seven members of the FREC. Four are brokers that have been brokers for at least five years, one is any of the three types of licensee, and two are consumers also called civilians or laymen.
Tim, who holds title in fee simple, deeds land to Simon to enjoy until his death. At that time Bob is to receive title to the land. Bob's interest in the land is known as a (an)
Remainder estate
What is the maximum amount of time that The Florida Real Estate Commission can suspend a licensee's license?
10 years
Which of the following lists contain contracts that a licensed broker is legally permitted to prepare?
Listing contracts, buyer brokerage agreements, and option contracts
An offer is not terminated by
an extension.
Which of the following contains the right of survivorship?
Joint tenancy and estate by the entireties
Using the entry or rumor of the entry of a protected class into the neighborhood to induce a homeowner to list their property is called
blockbusting
Concerning escrow disputes which applies?
In the event of conflicting demands for escrow, the broker must first contact FREC within 15 business days, and then implement one of the four settlement procedures within 30 business days
In the event that a sales associate's broker dies, resigns, or is unexpectedly removed from the office, what is the status of the sales associate's license?
Involuntary inactive
Three individuals purchase a property with no right of survivorship. Their estate is referred to as a
tenancy in common.
An appraiser would deduct value from a property's value if the property had four bedrooms but only one bathroom. What type of depreciation is this?
Functional obsolescence
Which of the following statements is false regarding the types of notice of ownership?
Constructive notice is acquired during the course of the transaction.
Two friends have purchased a property and have decided to build an apartment complex on the property. What type of ownership would be most advantageous for the families of the friends in the event of the friends' passing?
Tenancy in common
Which of the following is an example of external obsolescence?
The road in front of the house became a throughfare
Which of the following is false concerning freehold and non-freehold estates?
A life estate is a type of non-freehold estate where the ownership is limited to the lifetime of the owner of the life estate.
A broker executed a listing contract to sell a customer's property for $275,000. The homeowner was on vacation when an offer comes in for $275,000. Which applies in this situation?
The broker will have to wait until the homeowner returns from vacation because the broker does not have the authority to accept offers.
The seller instructs the listing broker not to show his home to members of a protected class. The broker informs the seller that this is a violation of fair housing laws, but the seller is insistent. Which choice is the broker's best course of action under these circumstances?
Withdraw from the listing agreement
Which of the following is false concerning a mortgage loan?
On a 30-year, fixed-rate mortgage, the payments during the first years are used almost entirely to pay principle.
In which of the following transactions is the individual not exempt from licensure?
An attorney-at-law that is acting within the scope of their professional duties and charges commission for referring commercial clients to a broker.
Which of the following statements is true concerning the Closing Disclosure form?
On the Closing Disclosure, the intangible tax is noted as a debit to the buyer.
Which of the following is false concerning Freddie Mac?
Freddie Mac operates in the primary mortgage market under federal government conservatorship and provides a secondary market for conventional mortgage loans originated by savings associations.
Which of the following approaches to estimating real property value would an appraiser use to appraise a courthouse?
The cost approach
A broker acquired a new customer and listed the customer's property on the MLS. The broker found a prospective buyer for the property but suddenly became ill. The broker was hospitalized for two months. During the hospitalization of the broker, the prospective buyer purchased the property. Which applies to this situation?
The broker is entitled to a commission regardless of the type of listing he had with the customer.
Which of the following is false concerning escrow accounts?
A Florida broker is authorized to move the escrow account from a non-interest-bearing account to an interest-bearing account provided he receives written authorization from one party.
When a lender declares all the unpaid balance due and payable as a result of default, the lender is exercising which clause in a mortgage?
Acceleration clause
Which of the following statements concerning market value is true?
Market value is the most probable price a property should bring in a competitive and open market under all conditions, requisite to a fair sale under certain guidelines published by Fannie Mae and Freddie Mac.
A valid real estate contract
contains all the essential elements and is in writing.
Which of the following is true regarding the Statute of Frauds and the Statute of Limitations?
The Statute of Frauds requires that contracts conveying an interest in real property and all contracts that are not performed within one year from the date they become effective must be in writing and signed to be enforceable
Which statement is false concerning the payment of an unearned fee or kickback?
A real estate licensee may be paid a fee for referring buyers to a title company, provided the buyer is aware of and agrees to the facts concerning the fee.
Which of the following is an example of an "implied" easement?
An encroachment
Which statement about the Closing Disclosure form is true?
Unpaid property taxes are a debit to the seller, credit to the buyer.
The Florida Residential Landlord and Tenant Act requires specific time periods for tenant deposits and advance rent. Which of the following time periods is correct?
A landlord who does not intend to make a claim on the security deposit has 15 days to return the security deposit.
The comparable sales approach, often just called the sales approach is a direct application of which principle?
Principle of substitution
Which statement is false regarding the differences between a Department of Veterans Affairs (VA) loan and a Federal Fair Housing Administration (FHA) loan?
A Funding fee is not paid on a VA loan.
On April 2nda real estate broker entered into an exclusive right of sale listing. On April 12ththe seller filed for bankruptcy. Two days later the broker found a buyer to purchase the property and submitted an offer. Which applies?
The broker is not entitled to a commission because the listing contract was terminated by the bankruptcy.
Which of the following random statements is false?
An escrow disbursement order is one of the choices a title company has to settle an escrow dispute.
Which of the following lists the protected classes of the Civil Rights Act of 1968 including amendments?
race, religion, sex, color, national origin, familial status, handicap
Which of the following is false concerning the Consumer Credit Protection Act?
Regulation Z is often used as another name for the Real Estate Settlement Procedures Act. RESPA is the act that requires lenders to inform buyers of the true cost of credit in writing and Regulation Z is the rule that gives RESPA its authority
The Florida Residential Landlord and Tenant Act requires landlords to account for advance rents and security deposits in one of three ways. Which of the following is not one of the choices the landlord has regarding advance rents and security deposits?
A landlord can hold the money in any of the 50 states in a separate non-interest-bearing account for the benefit of the tenant.
Which of the following random statements is false?
The additional tax exemption for a blind person who homestead is $1,000.
The closing date is May 12. The buyer is assuming the seller's mortgage loan that has a principal balance of $395,000 at 3% interest. The day of closing is charged to the buyer. What is the proration and how is it entered on the Closing Disclosure?
Debit the seller $357.12; credit the buyer $357.12
Calculate all applicable documentary stamp taxes and intangible taxes, (all three transfer taxes)for property located in SarasotaCounty:Purchase price$700,000Earnest money deposit$46,890Recorded first mortgage (assumed)$217,410Second mortgage (new)$100,000Cash at closing$15,000
$6,211.25
What is the amount of property taxes that would be paid if a non-homestead property was assessed at $495,000 and had a combined mills rate of 11.2 mills.
$5,544
If a lot front is 150feet, street paving costs are $20.00 per running foot, and the city will pay 30% of the paving costs, what will be the special assessment to the property owner?
$1,050
A developer owns 100 acres in Charlotte County, Fl and wants to create 20 lots with each lot being 21,780 square feet each. How many acres would he need to allocate for this project?
10 acres
Annual property taxes are $1,260. Closing is May 12. The day of closing belongs to the buyer. How is the proration entered on the Closing Disclosure?
Debit seller $452.21, credit buyer $452.21
How many acres are in the N1/4 of the SW1/4 of the E1/4 of the W1/4?
2.5 acres
A residential zone requires at least 7,500 square feet per lot. The developer is reserving 25 percent of the land for streets, sidewalks, and a community center. The tract of land for the development consists of 175 acres. How many residential lots are available for development?
762
What is the new effective yield to the lender if the borrower has a 4% interest rate and the borrower buys 2 discount points?
4.25%
How many acres are in ½ a section?
320 acres
What is the gross rent multiplier of a property that rents for $5,000 a month and has a sales price of $600,000?
120
If a sales associate lists a house for 7% commission and she is entitled to keep 70% of all commissions she earns, and she makes $34,055 on the sale. What was the sales price of the house?
$695,000
Sabrina purchased an apartment building that has a net operating income of $48,000 including operating expenses of $4,500. If the capitalization rate is 5%, what is the value of the property?
$960,000
If a farmer owned the N1/2 of the SW1/4 of the E1/4 of section 9 and held sold ½ of it, how many acres does he still own?
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