2024 REPL Exam New Latest Version Best Study Guide with All Questions, Exams of Real Estate Management

Download 2024 REPL Exam New Latest Version Best Study Guide with All Questions and more Exams Real Estate Management in PDF only on Docsity!

2024 REPL Exam New Latest Version Best Study Guide

with All Questions from Actual Past Exams and 100%

Correct Answers

At your first appointment with a buyer, you need to have her fill out a(n) _________ so you know how much house she can afford. ---------- Correct Answer ---------- Financial qualification sheet Identify this type of buyer: "I used to be a real estate agent, so I could probably do this on my own, but my wife is nervous about all the legal stuff, so here we are." ---------- Correct Answer ---------- Know-it-All What two types of laws govern agency relationships? ---------- Correct Answer ---------- Common law and statutory law Which type of authorized brokerage relationship requires no disclosure notice prior to showing a property? ---------- Correct Answer ---------- Transaction Brokerage Your sellers signed an Exclusive-Right-of-Sale listing. But they have since decided that they do not want to sell the property; they would rather lease it instead. Do they still owe you a commission? ---------- Correct Answer ---------- Yes. The terms of the listing agreement state that the broker will be compensated in any number of circumstances, including a lease agreement. If your buyer enters into an Exclusive Buyer's Agreement with you, and she purchases a home that will close after your Buyer's Agreement expires: ---------- Correct Answer ------ ---- The agreement will automatically continue through to the close of the sale. Two of your buyers call you. Both want to view homes this coming weekend. One is relocating from out of town. The other has six months left on an apartment lease. Which buyer should be your priority this weekend? ---------- Correct Answer ---------- The one who is relocating, because your time with her is limited. What's the best way to work with a buyer who "likes everything"? ---------- Correct Answer ---------- Limit your showings to homes that exactly fit what he told you he is looking for, and ask lots of questions to help him eliminate some of his choices. When you are viewing homes with your buyer, ---------- Correct Answer ---------- Do your best to withhold your personal opinions. Intentionally directing someone to or away from specific areas based on the ethnicity of the person or the area is known as ---------- Correct Answer ---------- Steering.

You are meeting with a new buyer. He walks into your office in jeans and a flannel shirt. You saw him pull up in an old pickup truck. He says he wants to purchase a home in the $500,000 to $650,000 range. What is the best response? ---------- Correct Answer -------- -- "Great! We have some beautiful homes listed in that price range. Let us go through this mortgage worksheet together and get you pre-approved so that we can make a strong offer when we find you the right home." According to the course, the primary benefit of an early termination clause is that: -------- -- Correct Answer ---------- It can give a nervous buyer some peace of mind, because he is not locked into the full term of the contract. You are in the office because you are scheduled for floor time. You take a call from a prospective buyer, but after finding out more information about a particular listing, he decides the property's lot is too small. What's the best response? ---------- Correct Answer ---------- "We have a very similar home listed that is on a larger lot. Can I tell you a little about it?" A buyer conducted a home inspection on Wednesday, the final day of the inspection period, and discovered an issue with the hot water heater. Nine days later, he presents this information to the seller's agent, and asks the seller to fix the problem. Is the seller obligated to comply? ---------- Correct Answer ---------- No. The buyer had five business days from the final date of the inspection period to contact the seller, and that time has passed. If a dispute arises over an escrowed deposit, how long do the buyer and seller have to try and resolve things on their own? ---------- Correct Answer ---------- 30 days A sales contract is: ---------- Correct Answer ---------- A bi-lateral agreement. The buyer must withhold a 15% tax of the purchase price if: ---------- Correct Answer ---- ------ The seller is a "foreign person" as defined by the Foreign Investment Act. Where can you find the most reliable legal description of a property? ---------- Correct Answer ---------- On a title or deed. If one of the deadlines in the contract is set for after the closing the date: ---------- Correct Answer ---------- The closing date will be extended with a written agreement between the parties to the contract. In a unilateral agreement: ---------- Correct Answer ---------- Only one party has to perform. According to the Statute of Frauds: ---------- Correct Answer ---------- Only written agreements that are signed by all parties can be used to buy and sell real property.

Your buyer closes on a home that the seller's disclosure states is 2100 square feet. After closing, he discovers that the home is only 2050 square feet. Can he hold you, the agent, liable for the misinformation? ---------- Correct Answer ---------- No. You are not responsible for the seller's deception. If the seller defaults on a signed contract, the buyer is entitled to: ---------- Correct Answer ---------- Receive his deposit back in full. As a sellers' agent, what should you do if the buyers' agent wants to present an offer to your sellers? ---------- Correct Answer ---------- Ask to meet with the buyers' agent one- on-one first. Then you will present the offer to your sellers together. Which of the following is true in the case of a buyer's market? ---------- Correct Answer -- -------- Most sellers will receive offers below list price. If your buyers are making a low offer, which of the following should they expect? ---------

• Correct Answer ---------- For the seller to be potentially insulted and unwilling to negotiate If your buyers' offer is rejected, you should: ---------- Correct Answer ---------- Touch base with the sellers' agent. Find out why the offer was rejected and see if you can at least negotiate. When you are presenting an offer, when is the best time to hand out copies of the paperwork? ---------- Correct Answer ---------- Only after you have talked through the offer. That way, people will not get distracted by looking through everything themselves. Before you begin presenting the actual offer to the sellers, you should: ---------- Correct Answer ---------- Spend some time talking about the buyers to try to help the sellers relate to the buyers. In giving an offer presentation, when is the best time to answer the sellers' questions? -- -------- Correct Answer ---------- At the end of the presentation, because some questions might be answered in other parts of the offer. When you contact the sellers' agent to tell him your buyer is making an offer, you should: ---------- Correct Answer ---------- Set up a time to meet the other agent so you can present the offer in person. The sellers have accepted your buyers' offer. Your buyers have applied for a mortgage, and the house has been appraised, but was appraised for less than the agreed upon sale price. What do you do? ---------- Correct Answer ---------- Contact the sellers' agent and find out if the sellers are willing to agree to a lower sale price. When making ________, most agents will simply mark on the original contract, rather than writing out a whole new one. ---------- Correct Answer ---------- A counteroffer

Your client chooses an adjustable-rate mortgage in which the initial introductory rate stays the same for 7 years, then adjusts once every year for the next 23 years. This type of ARM is called: ---------- Correct Answer ---------- A 7/1 ARM. The Act which prohibits borrowers from being discriminated against due to race, religion, sex, age, or country of national origin is: ---------- Correct Answer ---------- The Equal Credit Opportunity Act. The "due-on-sale" clause in a mortgage note means: ---------- Correct Answer ---------- The balance of the loan is due when the current homeowner sells the house. The difference between a standard fixed-rate and a simple interest mortgage is: ---------- Correct Answer ---------- With a simple-interest mortgage, interest is calculated daily rather than monthly. A "conventional" mortgage: ---------- Correct Answer ---------- Is not guaranteed or insured by a government agency. The "cap" on an adjustable-rate mortgage limits: ---------- Correct Answer ---------- How much the interest rate can increase. When an Option ARM is "recast": ---------- Correct Answer ---------- The payments are adjusted so that the loan will be paid off on time. A balloon mortgage: ---------- Correct Answer ---------- Has standard, 30-year fixed-rate payments, but the full principal of the loan is due all at once at some point in the future. Your client has an FHA ARM and closes on his new house on August 23, 2017. The first rate adjustment can occur: ---------- Correct Answer ---------- Between August 23, 2018, and February 23, 2019. The statute that requires lenders to disclose the total cost of a mortgage is called: -------- -- Correct Answer ---------- The Truth-in-Lending Act. The lender will hire a _________ to conduct a thorough inspection and analysis of the home. ---------- Correct Answer ---------- Licensed appraiser Underwriting is an evaluation of: ---------- Correct Answer ---------- Risk. Both the borrower's "creditworthiness" and the property's value are examined. The following is NOT required when a borrower applies for a loan: ---------- Correct Answer ---------- Ethnicity and minority status disclosures. Which of the following is NOT factored into a person's credit score? ---------- Correct Answer ---------- Amount of money in savings.

Which of the following is an example of a title defect? ---------- Correct Answer ---------- Mechanic's lien. Your client's monthly income is $3600. He has $600/month in debt-related bills (car payment, credit cards, etc.). The mortgage payment on the home he wants to buy would be $1,020/month, putting his total monthly debt at $1,620. Your client's debt-to-income ratio: ---------- Correct Answer ---------- Would be at 45%, which is well above the 36% preferred by most lenders. He may have to consider homes in a lower price range. The Closing Disclosure must be given to the borrower how long before closing? ---------- Correct Answer ---------- 3 business days The Real Estate Settlement Procedures Act requires: ---------- Correct Answer ---------- Lenders to fully disclose their fees and costs to borrowers. Title insurance does NOT protect the lender if: ---------- Correct Answer ---------- The borrower defaults on the mortgage. Which of the following is NOT one of the main credit reporting agencies in the U.S.? ----- ----- Correct Answer ---------- EquiUnion What is a documentary stamp on a deed? ---------- Correct Answer ---------- A stamp indicating that the transfer tax has been paid for a real property conveyance. Which pages of the Closing Disclosure will look the same regardless of the loan type the consumer is getting? ---------- Correct Answer ---------- Pages 2 and 3 What is the purpose of a final walk-through, and who participates? ---------- Correct Answer ---------- To ensure that the home is in a condition that reflects all the terms of the sales contract, including ensuring that repairs have been made. This is performed by the buyer and his agent. What is the latest date that a mortgage lender is allowed to provide the seller with the Closing Disclosure? ---------- Correct Answer ---------- Three business days before consummation of the mortgage If your client purchases a home with a loan for $225,000, how much will the document stamps on the note cost? ---------- Correct Answer ---------- $787. What type of information is found in the Loan Calculations section on page 5 of the Closing Disclosure? ---------- Correct Answer ---------- The total amount of all payments on the loan, the dollar amount of the finance charges over the life of the loan, the amount financed, the annual percentage rate (APR), and the total interest percentage (TIP)

What is the benefit of creating a "Closing Checklist"? ---------- Correct Answer ---------- It will help you stay on track and make sure that all the necessary tasks are completed. Who deposits the buyer's earnest money deposit? ---------- Correct Answer ---------- The buyer's agent's broker. What is a mortgage? ---------- Correct Answer ---------- The security instrument that collateralizes the property in order to obtain a home loan. What is hazard insurance? ---------- Correct Answer ---------- Insurance purchased by the buyer that protects the home against damage caused by things like wind, vandalism, and fire. A $1.5 billion agency regulating one million professionals and businesses across some 200 licensee categories in Florida is: ---------- Correct Answer ---------- The Florida Department of Business and Professional Regulation. Who elects the Chairperson of the FREC? ---------- Correct Answer ---------- The FREC Members What is the primary mission of FREC? ---------- Correct Answer ---------- To protect the public Nelson just received his Florida license. Which of the following will NOT be on the license? ---------- Correct Answer ---------- An Equal Housing Opportunity Logo Broker Norman failed to display an office entrance sign. Which disciplinary action is Norman most likely to receive? ---------- Correct Answer ---------- A citation Jane cheated on her real estate examination and was caught. What will happen? -------- -- Correct Answer ---------- Jane will have her application denied. A veteran sales associate's license expired on September 30. What will be the status of the license on Oct. 1? ---------- Correct Answer ---------- The license is involuntarily inactive. Katherine loves to show and sell houses for others for compensation. She has been doing so for two years and without a license. She has been caught and she wants to obtain a license. What is likely to happen? ---------- Correct Answer ---------- The FREC may deny her license since she was holding herself out to be a licensee, practicing real estate in the previous year. The Real Estate Recovery Fund ---------- Correct Answer ---------- Was designed to serve as consumer protection for those consumers who were harmed in a real estate transaction.

Jane is a college graduate with a four-year degree in real estate. She has a sales associate's license and seeks to renew the license for the second time. What must she do? ---------- Correct Answer ---------- She must take 14 hours of continued education. She must fill out the form, pay the fee, and return it before the expiration date. In a licensee's personal business budget, a trade association fee would qualify as what type of expense? ---------- Correct Answer ---------- Operating expense What does it mean to "qualify" a seller in real estate? ---------- Correct Answer ---------- To find out if the seller is truly ready to sell When you are developing your Target Market Summary, you should: ---------- Correct Answer ---------- Select an area with which you are familiar and in which you are comfortable. You are scheduled for "floor time" tomorrow. What is "floor time"? ---------- Correct Answer ---------- When an agent is in the office to receive phone calls from prospective clients A possible client walks into your office and says he wants to buy a house. He has not talked to a mortgage agent yet, but he says he can pay 25% down and already knows how much of a monthly payment he can afford. He wants to move in the next 90 days. What should your next step be? ---------- Correct Answer ---------- Advise him to speak with a mortgage agent and get, at minimum, pre-qualified, but preferably pre-approved for a loan. Which of the following is a benefit of developing a Business and Marketing Plan? ---------

• Correct Answer ---------- It will help you set clear goals and stay focused. One of your least favorite things to do is write your monthly newsletter. But it has to be out by the end of the week, and you have scheduled yourself time to work on it today. Where should it be on your "to-do" list? ---------- Correct Answer ---------- First on the list so you can get it over with and move on to things you enjoy. According to the course, people should have ---------- Correct Answer ---------- Three months' salary in savings. You have been an agent for six months. You are reviewing your activities and their results. You find that you are getting one listing appointment for every 20 expired listings you call. You also find that you are getting one for every ten FSBOs you call. You should: ---------- Correct Answer ---------- Spend less time on Expireds and more on FSBOs, since that is where you are getting the best results. You are creating a form to track your performance as a Real Estate agent. What activity should not be included on the form? ---------- Correct Answer ---------- Floor time.

Because it is scheduled by your office, and you can use the time for other things; it does not need to be tracked. What type of legal notice would most likely provide leads? ---------- Correct Answer ------- --- Foreclosures Which of the following is NOT an exception to the Do-Not-Call laws? ---------- Correct Answer ---------- You can call as long as you block your company name and number. Which of the following is most important to have on a licensee's personal website? ------- --- Correct Answer ---------- The licensee's contact information Once you have sent your friends and family a letter of introduction regarding your real estate practice: ---------- Correct Answer ---------- You should follow-up with a phone call in a day or two. When someone whose previous listing expired tells you mistakes the previous agent made: ---------- Correct Answer ---------- Comment on the action, not the agent, and explain how a different action might produce different results next time. What should you give to potential customers when prospecting door-to-door? ---------- Correct Answer ---------- Your business card If you prefer meeting people face-to-face, select a neighborhood and go knocking on doors. When you go, you should: ---------- Correct Answer ---------- Dress professionally You are trying to select a "farm" area and you have narrowed the choices down to four areas, as follows. Among the alternatives, which would be the best choice? ---------- Correct Answer ---------- An area close to your own house, where the 125 homes are similar to yours and familiar to you. What is the primary advantage of selling your own home without an agent? ---------- Correct Answer ---------- That you do not have to pay $1000's in the form of a commission When prospecting FSBOs: ---------- Correct Answer ---------- Call and ask if you can view the house and ask if they are willing to work with you if you find a buyer. A house was listed for $400,000 and it sold for 93% of its listing price. There was no mortgage lien on the property. The brokers' commission was 7% of the sales price. Other closing costs came to 1% of sales price. What was the seller's net? ---------- Correct Answer ---------- $342, Which of the following questions will not help you determine a home's best list price? ---- ------ Correct Answer ---------- How much do you think your home is worth?

When developing a marketing plan for the CMA you should: ---------- Correct Answer ---- ------ Include how often you intend to hold open houses. According to what theory should an aged house be demolished and replaced with high- rise condominiums? ---------- Correct Answer ---------- Highest and Best Use When determining market value of a home, "conformity" means: ---------- Correct Answer ---------- That the homes in a particular neighborhood should be similar in size and style. The benefit of including in your CMA similar homes that listed but did not sell is: ---------- Correct Answer ---------- It shows your clients that comparable but expired listings may have been overpriced. What is one benefit you CANNOT offer to someone who lists with you? ---------- Correct Answer ---------- A guarantee that the house will sell in 60 days or less. If your sellers have painted their living rooms walls a bright blue, you should: ---------- Correct Answer ---------- Suggest they paint over it with a more subtle, neutral color. In deriving a listing price for a seller, you have done a market search, but the comparable homes you have found have all been on the market for 6 - 9 months. You should: ---------- Correct Answer ---------- Use the comparables' values you found, but set the suggested listing price a little lower to account for the comparables' longer time-on- market. When selecting comparable homes, which of these criteria should be the same or similar? ---------- Correct Answer ---------- Year built What is the purpose of the Seller's Net Proceeds Form? ---------- Correct Answer ---------

• To give your sellers a breakdown of the costs associated with selling the home, and give a general idea what their net profit will be. How should you respond if your sellers want to be present during open houses? ---------- Correct Answer ---------- "I understand that you are anxious to sell your house, but buyers often feel uncomfortable when the sellers are present, which could affect their willingness to make an offer." Where is the best place for you to meet during a listing presentation according to the course? ---------- Correct Answer ---------- The kitchen or dining room table of their house. It is less formal of a setting. Who typically attends a Broker Open House? ---------- Correct Answer ---------- Other brokers and agents from the area.

When you begin explaining the CMA, why is it important to also explain current market conditions? ---------- Correct Answer ---------- So your sellers have a realistic idea of what to expect when they list their home. If you are a new agent, and your sellers ask how long you have been in real estate, how should you answer? ---------- Correct Answer ---------- Tell them you have only been in a short while, then focus on your company's history and successes. Your sellers' home has been on the market for two months. It has had several showings but no offers. Today is Sunday, and you have scheduled an open house. When you walk in the sellers' home, the first thing you notice is the smell of the cat litter. You also notice that the kitchen table is cluttered with junk mail and the kids' homework. How should you respond? ---------- Correct Answer ---------- Do your best to tidy the kitchen and get rid of the litter box smell. After the open house, you will call your sellers, ask about the condition of the home, and reiterate the importance of keeping it neat and smelling good. Suppose you are late to a listing appointment. Which of these is NOT mentioned as a way that your tardiness may be interpreted? ---------- Correct Answer ---------- That you are in such demand as an agent that you are always running late. Should you include the Internet as part of your marketing plan? Why or why not? ---------

• Correct Answer ---------- Yes. Because most buyers start their search online, before they ever talk to an agent. Yes. Because most buyers start their search online, before they ever talk to an agent. -- -------- Correct Answer ---------- Tell them to call your agent to arrange a formal showing. All of the following are true about Florida real estate disclosure laws EXCEPT: ---------- Correct Answer ---------- That compensation determines whether an agency or transactional brokerage relationship exists. Your sellers need to fill out a Property Disclosure Statement, but they are gone for two weeks on vacation. What should you do? ---------- Correct Answer ---------- Either wait for them to return from vacation or email them the form so they can fill it out themselves. Your buyers are anxious to get into a home. Finances have been a challenge and they have finally found a mortgage broker willing to work with them. They find a home they really like and want to make an offer. The home is older and not in the best condition, so you suggest they have a home inspector take a good look at the house. Your buyers refuse, saying they do not want to spend the extra money since they have already received a copy of the Property Disclosure Statement. You: ---------- Correct Answer ----- ----- Re-state your concerns and ask them to reconsider, explaining that you understand their wish to save money, but that finding any material defects now could save them a lot in the long run.

You received your license on June 15, 2016. It will have to be renewed by: ---------- Correct Answer ---------- 31 - Mar- 18 When does a designated sales associate come into the transaction? ---------- Correct Answer ---------- When both the buyer and seller have assets of $1 million or more and have requested designated sales associates. Which of the following would not end the agency relationship? ---------- Correct Answer - --------- The signing of a sales contract Which of the following is not allowed under Florida law? ---------- Correct Answer ---------- Dual agency. The obligations of a transaction broker include all EXCEPT: ---------- Correct Answer ---- ------ Disclosing that the buyer will pay a higher price than offered. If the house a seller is listing is currently being rented, the seller should: ---------- Correct Answer ---------- Take initiative and check on the home before a scheduled showing, to make sure it is presentable. What is the primary purpose a seller hires a real estate agent according to the course? - --------- Correct Answer ---------- To market the property to potential buyers If a seller says he will sign an open listing, it means: ---------- Correct Answer ---------- You have the right to market his property, but he has the right to work with other agents and brokers. Can your sellers decide not to offer compensation to any other agent or broker? ---------- Correct Answer ---------- Yes. But then the property cannot be listed in the Multiple Listing Service. If a seller agrees to an Exclusive-Agency listing, it means: ---------- Correct Answer ------- --- The seller can avoid paying a commission by finding a buyer himself. Three months into your listing agreement, both you and your sellers feel that the relationship is not working. Are you stuck with each other for the remainder of the contract? ---------- Correct Answer ---------- No. But all parties must sign a written statement, agreeing to terminate the relationship. You have just signed a listing agreement with Seller Peter. According to the course, your next step should be to: ---------- Correct Answer ---------- Enter the listing in the MLS and create flyers to put in the home and the yard sign. How soon must a copy of the signed listing agreement be given to the sellers? ---------- Correct Answer ---------- Within 24 hours after it has been filled out and signed.

If you are talking through a listing agreement, and your sellers say they are uncomfortable with using a lockbox, you should: ---------- Correct Answer ---------- Show them a lockbox, and let them try to break into it so they have an understanding of how secure they are. If a property has a capitalization rate of 25%, this is an indication that: ---------- Correct Answer ---------- The property has a high level of risk associated with ownership. Which would NOT be an advantage of real estate investment? ---------- Correct Answer - --------- The large amount of capital needed to begin investing in real estate. A six-unit complex, purchased for $399,000, has 4 two-bedroom units and 2 one- bedroom units. The two bedrooms rent for $800/month, and the one bedrooms rent at $700/month. The Loan to Value is 80%. The interest on borrowed funds is 7.5%, with a payment of $2,322 per month. Expenses are: Taxes of $2,400; Insurance at $2,000; Repairs of $2,622; and reserves are $10,800. Vacancy and collection loss is 5%. What is the Cash Break Even ratio? ---------- Correct Answer ---------- 63.20% A buyer had $200,000 cash for a real estate investment. After looking at many types and classifications of property, the investor decided upon an apartment complex over some acreage. What is one reason why the investor would NOT choose the acreage? -- -------- Correct Answer ---------- Vacant land cannot be depreciated and has no income stream. A six-unit complex, purchased for $399,000, has 4 two-bedroom units and 2 one- bedroom units. The two bedrooms rent for $800/month, and the one bedrooms rent at $700/month. The Loan to Value is 80%. The interest on borrowed funds is 7.5%, with a payment of $2,322 per month. Expenses are: Taxes of $2,400; Insurance at $2,000; Repairs of $2,622; and reserves are $10,800. Vacancy and collection loss is 5%. Figure the Debt Service Coverage ratio. ---------- Correct Answer ---------- 124% The NOI for a particular property is $69,000, and the annual mortgage expense is $37,399. In this scenario, the debt service coverage ratio is: ---------- Correct Answer ---- ------ 1. Depreciation allows an investor of real estate an advantage over other types of investments like stocks, bonds, and mutual funds. What is that advantage? ---------- Correct Answer ---------- Cash flow is improved due to depreciation. Gill says his apartment investment lacks liquidity. What does Gill mean by liquidity? ----- ----- Correct Answer ---------- Ability to sell an investment quickly and for full value When participating in a "like-kind" exchange, an investor is able to: ---------- Correct Answer ---------- Defer the capital gains tax until a later time.

According to the IRS, an active investor of real estate would be defined as: ---------- Correct Answer ---------- One who is involved in management or decision-making of the property. A six-unit complex, purchased for $399,000, has 4 two-bedroom units and 2 one- bedroom units. The two bedrooms rent for $800/month, and the one bedrooms rent at $700/month. The Loan to Value is 80%. The interest on borrowed funds is 7.5%, with a payment of $2,322 per month. Expenses are: Taxes of $2,400; Insurance at $2,000; Repairs of $2,622; and reserves are $10,800. Vacancy and collection loss is 5%. What is the Equity Dividend rate? ---------- Correct Answer ---------- 8.46% A six-unit complex, purchased for $399,000, has 4 two-bedroom units and 2 one- bedroom units. The two bedrooms rent for $800/month, and the one bedrooms rent at $700/month. The Loan to Value is 80%. The interest on borrowed funds is 7.5%, with a payment of $2,322 per month. Expenses are: Taxes of $2,400; Insurance at $2,000; Repairs of $2,622; and reserves are $10,800. Vacancy and collection loss is 5%. What is the Potential Gross Income? ---------- Correct Answer ---------- $55, The Green Apartments have an estimated value of $600,000 and a net operating income (NOI) of $48,000. If the annual mortgage expense is $172,000, what is the capitalization (CAP) rate? ---------- Correct Answer ---------- 8% A six-unit complex, purchased for $399,000, has 4 two-bedroom units and 2 one- bedroom units. The two bedrooms rent for $800/month, and the one bedrooms rent at $700/month. The Loan to Value is 80%. The interest on borrowed funds is 7.5%, with a payment of $2,322 per month. Expenses are: Taxes of $2,400; Insurance at $2,000; Repairs of $2,622; and reserves are $10,800. Vacancy and collection loss is 5%. What is the Net Operating Income (NOI)? ---------- Correct Answer ---------- $34, When a hurricane hits the coastline and destroys residential and commercial property, what type of change has occurred? ---------- Correct Answer ---------- Physical change. Which statement is NOT true with regard to the Property Management Contract? ---------

• Correct Answer ---------- The agreement should be notarized and recorded. Which type of maintenance is MOST often neglected by a property manager? ---------- Correct Answer ---------- Preventative Maintenance A type of advertising that is free and effective is: ---------- Correct Answer ---------- A referral from a satisfied tenant. Which of these statements BEST describes Florida law and the use of a residential lease form by licensees? ---------- Correct Answer ---------- Licensees may complete the Florida Supreme Court-approved lease forms if the term is for one year or less.

John lives in an apartment building, collects rents, shows apartments and does odd jobs for the owner. In exchange for showing and negotiating the apartments, he receives reduced rent and is paid a percentage from each unit he helps rent. John does not have a real estate license. Which is true of John's status? ---------- Correct Answer ---------- John is in violation of Chapter 475 and may be found guilty of practicing real estate without a license. When pricing space that is vacant, a property manager: ---------- Correct Answer ---------- Needs to consider the other properties available in the market. Florida grants a specialty license for ---------- Correct Answer ---------- a Community Association Manager. Rental Deposits received by a property manager: ---------- Correct Answer ---------- Should be treated as other people's money and be properly escrowed. How does the job of a leasing agent differ from that of a property manager? ---------- Correct Answer ---------- The leasing agent deals with tenants and rental rates, while the property manager is concerned with the long-term health of the property. An employee for a large condo-hotel association has an office on the site. This employee prepares financial statements, attends the board meetings, and rents units nightly to walk-in visitors. On occasion, the employee will assist an owner by negotiating a lease with a winter visitor for 90 days. Is this employee required to have a real estate license? ---------- Correct Answer ---------- No. The employee is legally covered by an exemption in Florida law. A Community Association Manager's license is required when an association has: ------- --- Correct Answer ---------- More than 10 units. How are cash reserves treated in the operating budget? ---------- Correct Answer ---------

• Reserves are included in the variable expense category. A broker collects monthly rent for one property, for one owner. The broker markets the space when vacant and handles tenant complaints, but has no authority to sign for the owner. This is an indication that: ---------- Correct Answer ---------- The broker has a license and is a special agent. An apartment building has an occupancy rate of 98%. According to the course, this is an indication that: ---------- Correct Answer ---------- Rents may be raised. Which two important items does the operating budget help an owner understand? -------- -- Correct Answer ---------- A history of past performance and projection of future operation.

What legislation enacted in 1974,required lenders to be fair and impartial in determining who qualifies for a loan? ---------- Correct Answer ---------- The Equal Credit Opportunity Act Article 17 of the National Association of Realtors Code of Ethics concerning dispute resolution requires REALTORS® to: ---------- Correct Answer ---------- Arbitrate rather than litigate. Bank of America, Citigroup, Wells Fargo, and JP Morgan Chase all agree not to lend on properties in the downtown of XZYville. This would be an example of: ---------- Correct Answer ---------- Redlining. Agent Smith tells the Jacob family the Fernwood neighborhood is beautiful, attractive, and highly desirable. The next day, Agent Smith tells the Miller family that Fernwood is deteriorating, values are falling, and the school district is less than stellar. Name the form of illegal discrimination. ---------- Correct Answer ---------- Steering Realtor® Phil violated Article 1 of the National Association of Realtor's Code of Ethics. What did he do? ---------- Correct Answer ---------- He did not protect the best interests of his clients. In 1962, President Kennedy issued ________ to prevent discrimination in residential properties financed by FHA and VA loans. ---------- Correct Answer ---------- Executive Order 11063 Jane feels she has been discriminated against in her search for a new home. She is a single mother of two. Where should she first go with a complaint? ---------- Correct Answer ---------- The Office of Fair Housing and Equal Opportunity (OFHEO) National Association of Real Estate Brokers, Inc. (NAREB) members are known as ------ ---- Correct Answer ---------- Realtists. In 1968, the Supreme Court ruled in________ that all discrimination in selling or renting residential property based on race is prohibited under the provisions of the Civil Rights Act of 1866. ---------- Correct Answer ---------- Jones v. Mayer Realtor® Rory violated National Association of Realtor's code of ethics. Which of the following is NOT a possible punishment he could receive from the NAR? ---------- Correct Answer ---------- A $10,000 fine Negative amortization occurs when ---------- Correct Answer ---------- The balance of the loan increases. What is the relationship between the percentage of leverage and the percentage of profit from the lender's point of view? ---------- Correct Answer ---------- A high percentage of leverage means a high degree of risk and a higher potential of profit.

According to the Foreign Investment Act: ---------- Correct Answer ---------- Ten percent of the purchase price must be held for tax if the seller is a foreigner. Florida law requires that a copy of the listing contract be given to the sellers within: ------ ---- Correct Answer ---------- 24 hours. The mortgage loan application process does NOT include: ---------- Correct Answer ------ ---- Three or more letters of recommendation. A property owner of some government subsidized housing uses a manager familiar with this type of property. The owner's instruction to the manager are: "Do not call me. Handle everything. Please send the financial reports quarterly." The type of agency created in this management agreement would be: ---------- Correct Answer ---------- General agency. Florida statutes governing transaction brokerage relationships do NOT require which duty to a customer? ---------- Correct Answer ---------- Loyalty. According to the REALTOR® code of ethics, can information that is confidential or harmful about the client be shared with others by the agent after the transaction has closed? ---------- Correct Answer ---------- No. To do so would violate the fiduciary relationship and the code of ethics. A due-on-sale clause in a mortgage means that: ---------- Correct Answer ---------- If the mortgagor sells the home, the loan balance is immediately due. If a property is governed by an association that collects fees and the homeowner's association disclosure is not given to the buyer: ---------- Correct Answer ---------- The buyer may cancel the contract any time prior to closing. Jim lives in an apartment building and helps the owner rent and lease vacant apartments for six months at a time. Jim also manages a nearby condo association with a budget of $130,000 per year. What type of license(s) must Jim have to comply with Florida laws? ---------- Correct Answer ---------- A Community Association Manager's license. The actual loan instrument being used to finance a property is called the: ---------- Correct Answer ---------- Promissory note. An economic cycle where prices rapidly rise, with increasing demand for goods and services, would be referred to as: ---------- Correct Answer ---------- Expansion A marketable title is one: ---------- Correct Answer ---------- That is insurable and can be transferred.

An earnest money deposit is typically: ---------- Correct Answer ---------- A small amount compared to the contract price. Which important disclosure must be given to the buyer within three days of loan application? ---------- Correct Answer ---------- Loan Estimate A property is listed at $127,000, and the offer is accepted at $125,000. However, the appraisal comes back at $121,000. The buyer and seller renegotiate and the transaction closes at $123,000. What is the market value of the property? ---------- Correct Answer -- -------- $123, How is the relationship between net operating income and estimated value expressed on an income producing property? ---------- Correct Answer ---------- By a capitalization rate. To an investor, the equity dividend rate represents the: ---------- Correct Answer ---------- Cash return in relation to the cash paid as a down payment. In a designated agency relationship, which type of disclosure notice must be given? ----- ----- Correct Answer ---------- A single agent notice. In addition to informing the purchaser about the property, a secondary benefit to a Seller's Property Disclosure Form is: ---------- Correct Answer ---------- Protection from liability for the broker. A home in a tract subdivision is a one-of-a-kind property. The home is a three-story Victorian, whereas all of the other homes are contemporary ranch style. Which appraisal principle does the property MOST violate? ---------- Correct Answer ---------- Conformity Which of the following mortgage loan items would NOT typically fall under origination charges? ---------- Correct Answer ---------- Title Insurance The benefit of developing a business and marketing plan is that it will: ---------- Correct Answer ---------- Help you set goals and stay focused. A fire and hazard policy will NOT cover: ---------- Correct Answer ---------- Rising storm water due to a flood. Which telephone call would be a violation of Do-Not-Call Laws? ---------- Correct Answer ---------- A call to a potential seller in your farm area, whose number is on the list. If a broker has two clients who each wish to work with their own agent, selling and buying respectively, with full fiduciary duties owed to each client, provided the clients have assets of more than $1 million, it is possible for the broker to enter into which

uncommon type of agency relationship? ---------- Correct Answer ---------- A designated agency relationship. A buyer purchased a 20-acre tract of land for $4000 per acre. If the tax rate is $0.70 per $100, the documentary stamps on the deed for this transaction would be: ---------- Correct Answer ---------- $ Which of the following is not a federally protected class? ---------- Correct Answer ---------

• Poverty Which pre-printed listing contract item does Florida Law specifically prohibit? ---------- Correct Answer ---------- The automatic extension of the expiration date. Buyer Kelvin really likes the mounted flatscreen television of Seller Tami's house. In Kelvin's offer, he asks that Tami leave the television behind when she moves. This is an example of a(n) ---------- Correct Answer ---------- Contingency. Two main types of conventional mortgages are: ---------- Correct Answer ---------- Fixed and adjustable. When a licensee is working with a buyer who "likes everything," what is the most effective use of the licensee's time? ---------- Correct Answer ---------- Use a "wants and needs survey" and show the buyer only those homes that fit the parameters. Expenses, like salaries, property taxes and insurance that are paid by a property manager, would fall into which area of the operating budget? ---------- Correct Answer --- ------- Fixed expenses. What does a demand feature mean in a mortgage loan? ---------- Correct Answer ---------
• A demand feature would allow the lender to require early repayment. The seller may choose to do which of the following with an unacceptable offer? ---------- Correct Answer ---------- Reject the offer. Why is the "margin" important on an adjustable rate mortgage? ---------- Correct Answer ---------- It establishes the amount of interest to be charged in relation to the loan's index. Which objectives define the position of a professional property manager? ---------- Correct Answer ---------- A property manager must meet the goals of the owner while preserving both the property and income stream. Which document is the security for the loan? ---------- Correct Answer ---------- The mortgage.

A real estate agent is also an appraiser. When practicing real estate and competing for listings, the licensee may refer to the suggested listing price range as: ---------- Correct Answer ---------- A competitive market analysis. Concealing a fact that is material to the property with the idea that that the buyer will go ahead and purchase the property would be called: ---------- Correct Answer ---------- Misrepresentation. A capitalization rate of 5% for an investment property would indicate: ---------- Correct Answer ---------- A low degree of risk. A REALTOR® has specialized in a geographic area with her marketing activities. What is the term for this type of activity? ---------- Correct Answer ---------- Farming The monthly income of your buyer is $3600. In addition, the buyer has $600 a month of installment debt. The house payment on the buyer's favorite house would be $1020 a month. If the deal goes through, the buyer's total debt ratio would be: ---------- Correct Answer ---------- 45% -- well above the 36% recommended total debt ratio. A buyer deposits a non-refundable fee in exchange for a 30-day waiting period. The buyer is not certain the job transfer will happen. The buyer will not be required to purchase if the job transfer does not occur. The seller will be required to sell if the job transfer does occur. This document is a (an): ---------- Correct Answer ---------- Option contract. Documentary stamps on the deed: ---------- Correct Answer ---------- Are a transfer tax paid to the state of Florida when real property is sold. When presenting an offer to a seller, most brokers recommend a discussion of the offering price: ---------- Correct Answer ---------- At the end of the presentation, after the other terms and contingencies have been presented. Which is one of the key elements of business planning and time management? ---------- Correct Answer ---------- Knowing your target market. Which activity could lead to discrimination in residential property management? ---------- Correct Answer ---------- Selecting tenants for a residential apartment. A licensee is working with a buyer and has entered into an agreement that requires that the licensee perform as a single agent. The agreement would correctly be referred to as a(n): ---------- Correct Answer ---------- Exclusive buyer's agreement. Your spotter announces there is a helicopter approaching your position from 3 O'clock, which direction can you expect the helicopter to appear? North East

South West ---------- Correct Answer ----------- East Your aircraft is travelling on a heading of 090 degrees. However, there is a strong wind pushing it off track from the north. Would the Track be greater or less than 090 degrees? Greater Less ---------- Correct Answer ----------- Greater You need to figure out how tall a TV tower in the distance is, you check this by looking at: The Elevation on a VTC Chart The Altitude on a VTC Chart The Height on a VCT Chart The Length on a VTC Chart ---------- Correct Answer ----------- The Elevation on a VTC Chart x 7 Nautical Miles is equal to: 12.964 Kilometres 12.06 Miles 11.972 Kilometres None of the above ---------- Correct Answer ----------- 12.964 Kilometres Newton's third law states that: Every body persists in its state of being at rest or of moving uniformly straight forward, except insofar as it is compelled to change its state by force. The alteration of motion is ever proportional to the motive force impressed; and is made in the direction of the right line in which that force is impressed. To every action there is always an equal reaction: or the mutual actions of two bodies upon each other are always equal, and directed to contrary parts. None of the above. ---------- Correct Answer ----------- To every action there is always an equal reaction: or the mutual actions of two bodies upon each other are always equal, and directed to contrary parts. The four forces acting on an RPAS are: Lift, Drag, Torque and Thrust Lift, Weight, Thrust and Drag Torque, Weight, Thrust and Drag Lift, Torque, Thrust and Drag ---------- Correct Answer ----------- Lift, Weight, Thrust and Drag An RPAS will ascend by: Increase the load on all motors simultaneously. Decrease the load on all motors simultaneously.

Increase the load on the clockwise (CW) spinning motors. Increase the load on the counterclockwise (CCW) spinning motors. ---------- Correct Answer ----------- Increase the load on all motors simultaneously. In Mode 2, what will the RPAS do when you pull the right stick to the left? Yaw to the left Yaw to the right Roll to the right Roll to the left ---------- Correct Answer ----------- Roll to the left An RPAS travelling at 32kmph will travel how far in 16 minutes? 8.59km 8.64km 8.53km 8.74km ---------- Correct Answer ----------- 8.53km Which of the following aeronautical charts is best for RPAS operations? VNC VGT VTC WAC ---------- Correct Answer ----------- VTC Controlled Airspace extending from a specific altitude above the earth is called: a. Control Zone (CTR) b. Control Area (CTA) c. Control Zone (CTA) d. Control Area (CTR) ---------- Correct Answer ----------- b. Control Area (CTA) Your client wants a few aerial photos of his property. Using a CASA certified app, find out if you can legally operate your RPAS within Standard Operating Conditions at this address: 11 Kent St, Regents Park NSW 2143, Australia. a. Can be done within CASR Part 101 b. Cannot be done within CASR Part 101 ---------- Correct Answer ----------- a. Can be done within CASR Part 101 You plan on operating within 3NM of Archerfield Aerodrome. What is the appropriate frequency for your operation? a. 123.6 b. 118.1 c. 126.7 d. 127.15 e. A and B ---------- Correct Answer ----------- e. A and B

You have been asked to inspect the TV towers near Mount Coot-Tha. What is the elevation of the tallest tower? a. 662 feet b. 1512 feet c. 2728 feet d. None of the above ---------- Correct Answer ----------- b. 1512 feet On an aeronautical chart you draw a line between two airports with a direction of 37°. Near the line you drew you see a dashed line with "17° W" written above it. Which of the following best describes the direction the aircraft must follow? a. 020° True b. 020° Magnetic c. 054° True d. 054° Magnetic ---------- Correct Answer ----------- d. 054° Magnetic One (1) Nautical Mile is equal to: a.One Minute of latitude b. One Minute of Longitude c. 1.852 Kilometres c. A and C d. B and C ---------- Correct Answer ----------- c. A and C In the absence of compass abbreviations, a position of 103° would refer to? a. A position along a parallel of Latitude b. A position along a line of Longitude ---------- Correct Answer ----------- b. A position along a line of Longitude What is a prominent feature of a Thunderstorm cloud/cumulonimbus? a. Anchor b. Anvil c. Shelf d. Flat Top ---------- Correct Answer ----------- b. Anvil Under CASR Part 101, Can we operate an RPAS through fog if we have obstacle voidance sensors and area approval? a. Yes b. No ---------- Correct Answer ----------- b. No Which of the following is a low-level cloud that is smooth in appearance? a. Cumulonimbus b. Altostratus c. Altocumulus d. Stratus ---------- Correct Answer ----------- d. Stratus

On a forecast you read that Clouds at a location are OVC, what is the OKTAS at this location? a. 1-2 OKTAS b. 3-4 OKTAS c. 5-6 OKTAS d. 7-8 OKTAS ---------- Correct Answer ----------- d. 7-8 OKTAS Which of the following clouds would suggest the strongest updraft strength? a. Cirrostratus b. Altocumulus c. Cirrocumulus d. Cumulonimbus ---------- Correct Answer ----------- d. Cumulonimbus Water expelled from the cloud base that does not reach the ground is known as: a. Microburst b. Virga c. Spitting d. None of the Above ---------- Correct Answer ----------- b. Virga An Air mass originating in the equatorial region of the Atlantic would be best described as: a. Polar Continental b. Tropical Maritime c. Polar Maritime d. Tropical Continental ---------- Correct Answer ----------- b. Tropical Maritime A katabatic wind will be strongest: a. Prior to sunrise b. In the late morning c. In early afternoon d. In the late evening ---------- Correct Answer ----------- a. Prior to sunrise A Fohn wind on the lee side of a mountain will produce which weather conditions: a. Warm, Moist Air with precipitation b. Warm, Dry Air c. Cold, Moist Air d. Cold, Dry Air ---------- Correct Answer ----------- d. Cold, Dry Air Wind Shear Occurs when: a. Sudden change in precipitation b. Sudden change in wind speed/direction c. Both A and B d. None of the above ---------- Correct Answer ----------- b. Sudden change in wind speed/direction General Operating Rules that apply to the operation of RPAS can be found within:

a. Manual of Standards b. Civil Aviation Safety Regulations c. Aeronautical Information Publication d. En-Route Supplement Australia ---------- Correct Answer ----------- b. Civil Aviation Safety Regulations Which of the following is not contained as part of the Aeronautical Information Publication (AIP) package? a. ERSA b. DAH c. DAP d. CAAP ---------- Correct Answer ----------- d. CAAP Under the General Operating Conditions of Part 101, which of the following is most correct? a. RPAS are not to be operated within 5.5 kilometres from the boundary of a controlled aerodrome. b. RPAS are not to be operated within 3 Nautical Miles from the movement area of a controlled aerodrome. c. RPAS are not to be operated within 3 Nautical Miles from the boundary of a controlled aerodrome. d. RPAS are not to be operated within 5.5 Nautical Miles from the movement area of a controlled aerodrome. ---------- Correct Answer ----------- b. RPAS are not to be operated within 3 Nautical Miles from the movement area of a controlled aerodrome. You have the following qualifications applied to your ARN: Remote Pilot Licence and Aeronautical Radio Operator Certificate. Are you permitted to operate within controlled airspace? a. Yes b. No ---------- Correct Answer ----------- b. No What is the main purpose of the Civil Aviation Act? a. Establish a regulatory framework for maintaining, enhancing and promoting the safety of civil aviation. b. Develop Legislation, ensure compliance and educate the industry participants to ensure a strong safety culture. c. To provide details for operations and regulatory requirements. d. To provide comprehensive information on aerodromes, HLS and navigation aids. ----- ----- Correct Answer ----------- a. Establish a regulatory framework for maintaining, enhancing and promoting the safety of civil aviation. A remote Pilot with an RePL, ReOC and IREX has been tasked with capturing data at a farm that is 1.6km long. The client has asked the operator to capture a photo from the other end facing back towards the start of the farm from a height of 500 feet AGL. Is this possible? Select the most correct answer. a. No - We need to obtain approval to operate above 400 feet.

c. Yes - We do not need approval to operate above 400 feet if we have approval to fly Beyond Visual Line Of Sight (IREX). ---------- Correct Answer ----------- a. No - We need to obtain approval to operate above 400 feet. Automating a flight allows us to: a. Reduce workload. b. Geofence c. Enhanced monitoring system d. All of the above ---------- Correct Answer ----------- d. All of the above If an RPAS was to have a loss of link with the flight controller, which of the following functions would aid in ensuring the RPA lands safely? a. Return to Home b. Obstacle Avoidance Sensor c. Second IMU d. Other ---------- Correct Answer ----------- a. Return to Home Which of the following could help a RP when it comes to automated flight? (Select all that apply)

• Repetitiveness - Automated flight paths would ensure the RP gets the same results each time.
• Complexity - If a task is too complex for an RP to complete, automating it could be better.
• Cost Effective - Save time and money by automation.
• Safer - Automated flight is always safer.
• Quicker - Automated flights can be carried out quicker than manual flying. a. Repetitiveness, Complexity, Cost Effective, Safer b. Repetitiveness, Cost Effective, Safer, Quicker c. Complexity, Safer d. Cost Effective a. Safer, Quicker ---------- Correct Answer ----------- a. Repetitiveness, Complexity, Cost Effective, Safer Automated Flight Systems are safer and not vulnerable to loss of link faults. a. False b. True ---------- Correct Answer ----------- a. False Out of date firmware can reduce the reliability of Automated Flight Systems. a. True b. False ---------- Correct Answer ----------- a. True The Remote Pilot should keep technical logs in accordance with MOS Sections 10.05 and 10.06 for how long? a. 3 years b. 4 years c. 5 years