2024.2025 Florida Real Estate Exam Test Questions with Verified Answers Guaranteed Pass, Exams of Business Fundamentals

Download 2024.2025 Florida Real Estate Exam Test Questions with Verified Answers Guaranteed Pass and more Exams Business Fundamentals in PDF only on Docsity! 2024.2025 Florida Real Estate Actual Exam Test Questions with Correct verified Answers Guaranteed pass A+ the homestead act was passed primarily to - correct answer answer exempt property from forced sale any sales associate authorized to negotiate a sale of property has the authority to - correct answer answer-work under the direction of a broker or in some cases and on the developer the sales specialty that involves the knowledge of regulated land use environmental considerations, transportation, labor cost and utility charge is - correct answer answer- industrial a real estate agents trade association that requires raising the professional and ethical standards of their members is the - correct answer answer-national association of Realtors property Management customarily includes all of these but - correct answer Answer- representation of the tenant property Management and real estate business has gained popularity and importance due to - correct answer answer-if he grows in absentee ownership the sales associate who can explain property taxes and homestead exemptions, in addition to helping prospective buyers obtain financing, is a - correct answer answer-residential specialist a sales associate with ABC realty was contacted by big bank to do a broker price opinion (BPO). since the fee for this was small, the bank paid the salesperson directly. this situation is - correct answer answer-illegal, since sales associate violated chapter 475, F.S. the product that all real estate professionals sell is - correct answer Answer-their expert knowledge which area of real estate requires the highest degree of expertise? - correct answer Answer- counseling a licensed appraiser is compensated for an appraisal - correct answer Answers-with a flat fee sales associates who failed to complete the post-licensing education requirement after 24 months and want to continue in their real estate business are required to re-qualify for licensure by - correct answer Answer-repeating the pre-licensure class, passing the end-of- course-examination, and passing the state licensure examination. after completing the post-licensing education during the initial license., licensees must complete - correct answer Answer-at least 14 hours of continuing education during every 2- year license period for active and inactive licenses power to the owner's death, she named her friend, jenny, as the personal representative of her estate. to take an active part of the owners real estate Jenny is - correct answer Answer-not required to obtain a real estate license. 2024.2025 Florida Real Estate Actual Exam Test Questions with Correct verified Answers Guaranteed pass A+ since performing a broker price opinion or comparative market analysis constitutes real estate brokerage activity, the compensation collected in the connection with that activity must be paid to the - correct answer Answer-sales associate's broker/ brokerage a licensee may substitute attendance at one legal agenda session for the FREC for - correct answer Answer-3 hours of continuing education credit an unlicensed personal assistant may be at an open house and can - correct answer Answer- hand out materials as a licensed sales associate a, you have decided to hire someone to help you with your business, so you hire an unlicensed personal assistant. they can - correct answer Answer- gather information for a comparative market analysis a manager is a salaried manager of a 20-unit condominium complex. An owner of one unit is leaving town for 6 months. if the manager rents the owners unit to a student for the six-month period, does he need a real estate license? - correct answer Answer-No, because the rental period arranged was not for more than one year which Florida administrative code expands upon the statutory provisions of chapter 475, Florida statutes - correct answer Answer-61J2 in addition to chapter 475, the Florida statute that defines the general legal practice and procedure for the department of Business and professional regulation (DBPR) and the licensees of all professions, including real estate, is - correct answer Answer-455 FREC has the authority to discipline Florida-licensed, real estate professionals under what Florida State Statute? - correct answer Answer- Chapter 455 on the seven total members of the FREC two must be - correct answer Answer-never licensed as real estate associates or brokers. if a real estate license fee believes a role or guideline that substantially affects him is not valid and needs to be changed, recourse should be sought by - correct answer Answer-petitioning for an administrative determination before the Florida real estate commission the law that establishes the rights and responsibilities of real estate licensees is - correct answer Answer-Florida statute chapter 475 a sales associate is a license associate of a broker. if by issuance of a final order, the broker's license was revoked by the four real estate commission, the sales associate is - correct answer Answer-automatically become involuntary inactive status failure to complete the sales associate post-licensing education requirement will cause the initial license to become - correct answer Answer-become null and void 2024.2025 Florida Real Estate Actual Exam Test Questions with Correct verified Answers Guaranteed pass A+ hours the buyer cancels the offer and asks for his deposit to be returned. the broker should - correct answer Answer-place the funds in the hands of the Florida Real Estate Commission of the following statements, which is true about kickbacks or rebates? - correct answer Answer- they are legal if all affected parties to the transaction are aware of such arrangement prior to the time of the placement and said transaction. which is Not true of the real estate recovery fund? - correct answer Answer-define acts as insurance for real estate licensees who are sued. which is not a potential reason why the FREC would deny an application for licensure or renewal of a license? - correct answer Answer-the applicant is not a US citizen. a sales associate has knowledge that a broker frequently commits unlawful acts as it pertains to real estate. if the broker instructs the sales associate to participate in an unlawful real estate act, the sales associate must - correct answer Answer-refuse to carry out the instructions, and then report the broker to the department of Business and professional regulation. a licensed broker was found guilty of culpable negligence in a real estate sale. the broker made full restitution to the affected party. the Florida real estate commission may - correct answer Answer-spend the individual's license. 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 - correct answer Answer-effective until time for renewal. you hold a valid, current and active sales associates license. one of your best clients has purchased three houses in the past year totaling almost $1 million and sales. he calls you from Atlanta saying he has someone interested in purchasing a house you have listed for $500,000. he also mentions that he has had to spend a considerable amount of money entertaining the buyer and convincing him to drive down to look at the property. you may - correct answer Answer-not legally compensate him for the entertainment expense. which statement is Not true about the disciplinary authority of the Florida Real Estate commission (FREC)? - correct answer Answer-the maximum administrative fine the frac May impose for each separate count is $1,000. a notice of Non-Compliance - correct answer Answer-shall only be issued for an initial offense of a minor violation. Ann Smith, a broker working for customer Lucille Carter, finds a runner for a home owned by Banks and collects a security deposit of $1300 an advanced rent of $1300. what must the broker do with the money? - correct answer Answer-give the money to Carter, who must deposit it in an escrow account or security Bond. 2024.2025 Florida Real Estate Actual Exam Test Questions with Correct verified Answers Guaranteed pass A+ a sales associate has been instructed by his broker to call on residence of a certain neighborhood, telling them that Latinos are beginning to move into the neighborhood and that they should sell their houses as soon as possible because their values will decrease. this is an example of - correct answer Answer- Blockbusting what is the final legal act in an eviction procedure? - correct answer Answer- After the tenants are served a writ of possession, the landlord begins to remove their personal property from the rental unit. which is not an accessibility requirement in a condominium community per Americans with disabilities act? - correct answer Answer-a unit owner has a German Shepherd dog even though the community has a no pets over 20 pounds policy. what must the developer of an unimproved subdivision provide to the perspective buyer? - correct answer Answer-a detailed property report what is the final legal act in an eviction procedure? - correct answer Answer-After the tenants are served a writ of possession, the landlord begins to remove their personal property from the rental unit. 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 how many days to object in writing to the deduction. - correct answer Answer- 15 Aaron has remodeled an older home and decides to rent it out. he receives the first months rent and a security deposit. there are three ways he can handle the security deposit. which is not one of them? - correct answer Answer-hold the money in any Bank, credit union or savings and loans institution locate in any of the 50 states and may not commingle a principal owns lots and an upscale subdivision. he has directed a licensee not to show the lots to people of a particular sex, race, or religion. what should the licensee do? - correct answer Answer-withdraw and refuse to deal with the owner everything that is permanently attached or connected to land is - correct answer Answer-a fixture In Florida, if a homestead is in only one spouse's name, or if it is co-owned by a married couple, then - correct answer Answer-both spouses must sign the real estate sales contract. when determining whether an object is a fixture, illegal tests do not include - correct answer Answer-size of them which are not considered physical components of real estate? - correct answer Answer- Timber Rights 2024.2025 Florida Real Estate Actual Exam Test Questions with Correct verified Answers Guaranteed pass A+ when the johnsons purchase their home, they purchased and installed new kitchen counters and cabinets. until they were installed, these were personal property. once installed, they became a - correct answer Answer- fixture the homeowners association disclosure summary required by chapter 720 must be supplied by the state of Florida - correct answer Answer- seller's broker the best descriptive phase associated with property held by tenancy in common is - correct answer Answer-having an undivided interest which of the following is the term for a landowners rights to you water that flows past his or her property as long as the landowner does not divert or pollute the water or impair its use by others? - correct answer Answer- Riparian Rights John owned real property prior to his marriage to sophia. this property is presumed to be - correct answer Answer-separate property of the following, which Real property interest applies to land ownership? - correct answer Answer- tenancy in common a beneficial interest in real estate which implies that a future day and individual will receive legal title is known as - correct answer Answer-equitable title 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? - correct answer Answer- personal Representatives deed of the lanes listed below, which is the superior lien that takes priority over the others? - correct answer Answer-property tax lien dated January 1, 2020. which three types of special purpose deeds may be used to convey property when the property owner is unable to sign the deed? - correct answer Answer-personal representative, guardians or committees an electric utility company has the right to maintain their polls, lines and other equipment along the rear of the property. this right is called an - correct answer Answer-easement and gross Jean-Paul and Michelle are in the process of purchasing their first home. when will the actual transfer of title be made? - correct answer Answer-when the deed is recorded when a person owns property or holds vested ownership in a property, that person has - correct answer Answer-title a seller's marketable title to real property may be provided by - correct answer Answer-title insurance and a first mortgage release. 2024.2025 Florida Real Estate Actual Exam Test Questions with Correct verified Answers Guaranteed pass A+ how is the capitalization rate calculated? - correct answer Answer- net operating income / investment value Each discount point paid on a monthly amortized 25-year mortgage held to maturity raises the effective interest rate on a loan by approximately - correct answer Answer- 1/8% A capital loss occurs when - correct answer the sale price is less than the adjusted basis. approximately how many discount points are needed to raise the lenders yield on a mortgage by 1%? - correct answer Answer- 8 points all of the following provide tax advantages for Real Estate investments EXCEPT - correct answer Answer- illiquidity when a borrower defaults on a mortgage, the borrower can prevent foreclosure by paying the delinquent principal and interest, plus any expenses the mortgage has and cured in its attempt to collect the payments. this is called - correct answer Answer- the right to reinstate The market __________ when the rental of a property increases. - correct answer Answer- rises Mr. and Mrs. Grey are thrilled to be making the last payment on their mortgage. the lean on their property can now be released through - correct answer Answer- a defeasance clause. Mr. Hill buys 40 acres, where he plans to build a subdivision in three phases. To sell the lots in the first phase of the project, Hill should reserve within the mortgage a - correct answer Answer- A partial Release clause. The possibility of losing all or part of an investment is called - correct answer Answer- risk Leverage is the system of - correct answer Answer-using borrowed funds to finance the purchase of an asset. George has a mortgage on his home with a local bank. he has indeed stating he is the owner of the property, but he still owes most of what he borrowed to the bank, and they remaining mortgage balance is an uncomplex on the title when George sells his home. George lives in a state that recognizes which theory? - correct answer Answer- lien A homeowner has owned and lived in his Florida home for 10 years. His community has a property tax rate of 14 mills. in addition to his homestead exemption of $50,000, the owner receives a $500 tax exemption, due to his disability. if the owner's final tax bill is $1,547, what is the assessed value of his home? - correct answer Answer- The taxable value of the property is the tax payment divided by the tax rate = $161,000 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 - correct answer Answer- annual percentage rate. 2024.2025 Florida Real Estate Actual Exam Test Questions with Correct verified Answers Guaranteed pass A+ Smith's annual property taxes are $6,300. if the tax rate is $1.80 per $100 of the taxable value, what is the taxable value of the property? - correct answer Answer- $350,000 Many mortgages include a clause that, should the property be sold, the entire mortgage balance is payable in full. This is referred to as the. - correct answer Answer- Due-On-Sale- Clause Jim has a commercial, income producing property. Which expense is Not was out there deductible on Jim's Federal Income Tax return? - correct answer Answer- depreciation on the land under the___________theory of mortgages, ownership passes to the lender when the loan is made - correct answer Answer-title Properties in Florida with an assessed value of $50,000 or less that qualify for a homestead exemption or entitled to - correct answer Answer- the base $25,000 exemption. if the current FHA mortgage rate is 3.5% and similar conventional loans are at 4.5%, what will be the number of points required on the FHA mortgage, as a general rule of thumb, to provide the lender with an approximate yield of 4.5%? - correct answer Answer-8 points Bay county has a property tax rate of 10.35 mills. A homestead exemption of $25,000 is available to qualified homeowners. if the property is assessed that $279,900, and the owner does not qualify for the exemption, the property tax, per year, will be - correct answer Answer- Taxable value $2,596.82 who typically provides a purchase money mortgage (PMM)? - correct answer Answer-the seller Which housing expenses our tax deductible with respect to ownership of a primary residence? - correct answer Answer- Mortgage interest and property taxes are deductible from income taxes. when A lender analyzes a mortgagee's ability to repay a loan, it is called - correct answer Answer-qualifying the buyer. Florida primary residence California to $50,000 in homestead tax exemption. The amount deducted from the - correct answer Answer- assessed value when calculating taxable value choose the law that requires that lenders disclose the annual percentage rate (APR) to borrowers. - correct answer Answer- Truth in Lending Act Of the following expenses for a principal residence, which one is deductible when filling a Federal i Income Tax return? - correct answer Answer- mortgage interest charges 2024.2025 Florida Real Estate Actual Exam Test Questions with Correct verified Answers Guaranteed pass A+ the secondary mortgage market's purpose is to - correct answer Answer-provide a market for buying and selling existing mortgages. A Floridian who is legally blind qualifies for - correct answer Answer- an additional $500 exemption from the assessed value of their homestead property. if a balloon payment is due on the date your loan matures, what kind of loan do you have? - correct answer Answer-partially amortized mortgage aim a mortgage who's interest rate increases or decreases periodically according to an economic index agreed upon in advanced is a(n) - correct answer Answer- adjustable-rate- mortgage. An area where apartment buildings and retail space share a parcel is an example of - correct answer Answer- a planned unit development A homeowner wants to construct a lanai with a small swimming pool on the back of his home. The present distance between the owner's home in the rear property line is 25 feet. if the owner builds the lanai, do Destin to the property line will be reduced to 5 feet. Local requirements specify at least a 10- foot setback. To legally construct his ports, the owner needs - correct answer Answer- to obtain a zoning variance. choose the statement that is not true about FHA loans. - correct answer Answer-The borrower must pay an insurance premium based on the entire purchase amount. _______________ regulate the construction, alteration, and maintenance of structures in municipalities. - correct answer Answer- building codes the most important factor in determining a borrower's ability to pay and their attitude toward debt is the barrower's - correct answer Answer- credit rating Which of the following is Not subject to control by zoning ordinances? - correct answer Answer- sale of land to protect the public from fraudulent land sales. regarding adjustable-rate mortgages, which statement is incorrect? - correct answer Answer- the bank offering the mortgage is required to allow an assumption of the mortgage by a new purchaser. A developer wants to build five groups of townhouses on a 15-acre parcel. He will devote the land not used for construction of units to recreation areas, gardens, parking area, etc. What type of development is he proposing? - correct answer Answer- planned- unit development a property sells for $230,000. as the listing sales associate, you will receive 45% of the total 6% commission collected on the sale. what amount will you receive? - correct answer Answer- $6,210