EOC Test For Gold Coast Real Estate Course Questions And Answers 2023, Exams of Advanced Education

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EOC Test For Gold Coast Real Estate

Course Questions And Answers 2023

what are the 3 areas that a licensee are required to have expert knowledge? - Correct Answer-property transfer, valuation, marketing when a developer acquires a large tract of land and records a subdivision play map, and uses a model center from which sales are made is called? - Correct Answer-tract building focusing on one type or style of property or a particular neighborhood - Correct Answer- farming/farm area sales associate who wishes to apply to be a broker must have - Correct Answer- months under one or more actively licensed brokers within the preceding 5 years an applicant for a broker license may choose to continue employment in a sales associate capacity with a current employer is called - Correct Answer-broker associate if a broker associate become inactive, their license status will be changed to - Correct Answer-inactive broker license an applicant for a florida real estate is not required to be a - Correct Answer-resident of florida or a citizen of the U.S. if application is denied, the applicant will be notified in writing and it will identify what? - Correct Answer-reasons for denial and state that they have 21 days to request a formal hearing brokers are _________ and __________ with the department - Correct Answer- registered, licensed an owner-developer may register with the department but does not receive a? - Correct Answer-license sales associate must complete hour many hour post license course - Correct Answer- hour if failure to complete 45-hour post license course there is __ _______ ________. - Correct Answer-no grace period all active or inactive licensees must complete - Correct Answer-14 hours of continued education and pay a renewal fee

persons who are granted authority under a power of attorney to act for others in some capacity - Correct Answer-attorneys-in-fact a tenant of an apartment community may receive up to 50$ cash, personal property or credit toward rent for? - Correct Answer-a referral of a new tenant the department may seek an __________ from a court against a licensee for failure to follow a department order. - Correct Answer-injunction administrative fines from the department may not exceed - Correct Answer-$5000 per offense first renewal following initial license, licensees must renew by completing the post- licensing requirements prior to? - Correct Answer-the expiration date of the initial license failure to renew license for first renewal will result in - Correct Answer-null and void license status failure to renew a license prior to expiration will put the license into - Correct Answer- involuntary inactive status biennial - Correct Answer-every two years biannual - Correct Answer-twice a year if a licensee decides to no longer practice real estate, they could return the license to the department, the license would be - Correct Answer-cancelled a single real estate license that can be obtained if the sales associate or broker associate works for one owner developer with affiliated organizations which provides real estate services in different geographic areas - Correct Answer-group license broker can be issued additional license in 2 or more capacities by requesting - Correct Answer-multiple licenses authorized under agency law by the employer to perform a single acf - Correct Answer- special agent a party who has been granted authority to act on behalf of another agent - Correct Answer-subagent a broker who provides limited representation - Correct Answer-transaction broker broker must present - Correct Answer-ALL offers

any attempt to represent both parties in a transaction as an agent would create an - Correct Answer-illegal dual agency buyer beware, acting in own best interesy - Correct Answer-arms length relationship when both buyer and seller have assets of $1 million or more - Correct Answer-can both request single agent representation procuring of cause - Correct Answer-broker who first produces a purchaser person can receive compensation for referrals if - Correct Answer-they have a license or a part of transaction broker is required to have a ____ on it about the entrance to the office and all branch offices - Correct Answer-sign all legal advertising must be in the name and under the supervision of the - Correct Answer-broker sales associate or broker associates name may appear in the ad in addition to the name of the brokerage but must include - Correct Answer-first and last name as registered with the commission internet advertising - Correct Answer-any advertisement that is placed online any real estate advertisement that DOES NOT contain the registered or trade name of the broker - Correct Answer-blind ad Default by the buyer usually requires the deposit to be forfeited in favor of the seller to compensate for having removed the property from the market, this is called: - Correct Answer-liquidated damages post dated checks are considered to be _________ _____ and can be accepted as earnest money with the sellers approval. - Correct Answer-promissory notes escrow account or trust accounts may be held in - Correct Answer-a commercial bank or title company escrow account cannot be held in a - Correct Answer-stock or bond brokerage house depositing the personal funds of any person with funds being held in escrow, trust, or on condition - Correct Answer-commingle A broker is authorized to place and maintain up to _____ of personal or business funds in a sales escrow account and up to _______ of personal or business funds in a

property management escrow account for the purposes of opening the account, keeping the account open and paying for ordinary service charges - Correct Answer-$1000; $ escrowed funds must be maintained separately from the brokers ___________ and __________ funds - Correct Answer-business, personal The misuse of, commingling or intermingling of or failure to account for funds or property entrusted to any licensee is known as ________ - Correct Answer-conversion a sales associate or broker associate who receives an earnest money deposit on behalf of their employer must deliver to the employer no later than - Correct Answer-the end of the next business day following receipt A broker must "immediately" place the earnest money deposit in an escrow account. What is immediately defined as? - Correct Answer-No later than the third business day following receipt. a brokers books and records must be preserved for a period of not less than - Correct Answer-five years conflicting requests in which both the buyer and seller demand that the broker release escrowed funds is called an - Correct Answer-escrow dispute If the broker has good faith doubt as to which person is entitled to the escrowed property, the broker must give a written notice to FREC within how many days from the date the last party's demand? - Correct Answer-15 days A suit in court that can be used to resolve an escrow dispute in known as a ____ - Correct Answer-litigation (court action) if the broker does not claim any rights to the deposit under dispute they would file a - Correct Answer-bill of interpleader, then funds are turned over to registry of the court when a sales contract is subject to financing, and the broker is acting as an escrow agent, the broker may refund the deposit to the buyer without notification to the ________ if the financing cannot be obtained. - Correct Answer-commission Any resident licensee who becomes a nonresident must notify the commission of the change in residency within: - Correct Answer-60 days and comply with non resident requirements a business formation in which two or more people agree to share the profits or losses of a business is called - Correct Answer-general partnership or partnership

what partnership must have at least one partner licensed as an active broker? - Correct Answer-real estate brokerage partnerahip a sales associate or broker associate cannot be a partner in a - Correct Answer-real estate brokerage partnership businesses that may register with the department to perform brokerage services - Correct Answer-sole proprietorship P corporation for profit P not for profit corporation P limited liability company O general partnership P limited partnership P limited liability partnership P businesses that may not register to broker real estate - Correct Answer-corporation sole CS cooperative association CA business trust BT unincorporated associate UA joint venture JV first degree misdemeanor - Correct Answer-rental lists Second degree misdemeanor - Correct Answer-everything besides rental lists third degree felonies - Correct Answer-$5000 or five years imprisonment for acting as a broker or sales associate without a valid and current license, giving false info when applying when a broker fails to disclose information to a party that is material to their decision - Correct Answer-concealment occurs if a broker operates in a reckless as negligent manner (ex: forget to collect escrow deposit) - Correct Answer-culpable negligence the misstatement or omission of facts that can lead to fraud if statements are intentional and relied upon; exaggeration in an opinion of value - Correct Answer- misrepresentation broker must inform a prospective buyer of such conditions prior to the payment of any portion of the sales price (property is in-merchantable) - Correct Answer-properties with liens to get an appeal - Correct Answer-court of appeal

a broker who uses ________ or trading schemes that involve the selling of certificates or chances to induce any person to buy real estate is guilty of fraud. - Correct Answer- lotteries Maximum administrative fine for violation of FS 475 is $___________ - Correct Answer- $5, a complaint analyst reviews the complaint form or letter that describes the alleged violation to determine if the complaint is - Correct Answer-legally sufficient a respondent may request that an administrative law judge __________ a witness - Correct Answer-subpoena if the licensee does not agree with the final order of the commission, a ________ _____ ________ may be filed with the Florida District Court of Appeals within __ days or the final order. - Correct Answer-petition for review, 30 days Payment From the Recovery Fund will not be made to the spouse of a judgement debtor or to any licensee who operated as a licensee in the transaction but who can? - Correct Answer-licensee who acted in capacity of a buyer or seller only the commission requires the holder of the judgement to assign the judgement to the commission as a condition of reimbursement from the - Correct Answer-Recovery Fund the real estate recovery fund is maintained by fees and fines paid by - Correct Answer- licensees what consists of inducing an owner to list or sell on the basis that the neighborhood is deteriorating or becoming transitional due to an influx of minority persons? - Correct Answer-blockbusting Steering or channeling - Correct Answer-an individual, directly or indirectly, into or away from a neighborhood or location in a multi-unit building on the basis of race, color, religion, sex or national origin the refusal by a lender to approve a mortgage loan based on a property location in a certain geographical area, age or the property, income level of the residents, or the racial composition of the area - Correct Answer-redlining Owners of properties open to the public are required to _______ in order to comply with the ADA - Correct Answer-Remove barriers that limit access or utility to individuals with disabilities the ADA mandates ______ ________ for multi family dwelling units to provide accessible and usable area for people with disabilities - Correct Answer-design specificications

for existing properties that do not comply with the ADA, the owners are required to make necessary modifications to give access to individuals with - Correct Answer- disabilities part II of the Florida Residential Landlord and Tenant Act regulates what - Correct Answer-residential tenancies hold the total amount of the security deposit or advance rent in a - Correct Answer- noninterest-bearing escrow account hold the total amount of the security deposit or advance rent in an - Correct Answer- interest-bearing escrow account post a ______ ____ with the clerk of the circuit court in the county in which the dwelling unit is location in the amount of the total security holdings or $50,000, whichever is less. (can commingle) - Correct Answer-surety bond with a surety bond, the security deposit and advance rents may be _______ with other funds of the landlord - Correct Answer-commingled upon the tenants vacating of the premises, the landlord has __ days to return the security deposit including accrued interest, if there is no intention of making a claim for damages against the deposit - Correct Answer-15 days what law prohibits telephone solicitation calls before 8:00 a.m. and after 9:00 p.m. - Correct Answer-federal law federal do not call law - Correct Answer-cannot call a FSBO florida do not call law - Correct Answer-can call a FSBO violators of the "do not call list" are subject to a fine of - Correct Answer-$40,000 per call a licensee may call an owner whose name appears on a "do not call" list when representing a buyer interest in buying the property but may not use the showing in an attempt - Correct Answer-to obtain a listing includes physical land and improvements together with legal right to own or use the property - Correct Answer-real property the rights of an owner whose property borders a flowing waterway such as a river or stream - Correct Answer-Riparian rights the rights of owners of property bidding non-flowing water such as an ocean, sea or lake

• Correct Answer-Littoral rights

an increase in land area as moving water deposits soil in other than its original location - Correct Answer-accretion loss of soul that is carried away by water washing against a riverbank or beach - Correct Answer-erosion soil resulting from accretion - Correct Answer-alluvion opposite of erosion - Correct Answer-accretion not permanently attached to the land or buildings on the land - Correct Answer-personal property an item that was once personal property but has been installed or attached to the land or building in a permanent qay - Correct Answer-fixture personal property that have been attached to real estate that is rented or leased by a tenant and used in the conduct of business (can be removed during or at termination of lease) - Correct Answer-trade fixtures the four tests used by courts to distinguish between real and personal property (IRMA) - Correct Answer-intent, relationship, method of annexation, adaptation an owner has a right to possess or occupy the property - Correct Answer-possession an owner generally has the right to sell the property, give it away, or leave it in a will - Correct Answer-disposition owners have the right to prevent others from entering or using their property - Correct Answer-exclusion an owner has the right to determine how to property will be used - Correct Answer- control DEEP C - Correct Answer-Disposition, Enjoyment, Exclusion, Possession, Control without the right to survivorship - Correct Answer-tenancy in common can be owner at same or different time - Correct Answer-tenancy in common 2 or more people and right if survivorship and get possession at same time - Correct Answer-joint tenancy sole ownership of the entire bundle of rights in a fee simple state - Correct Answer- estate in severally

a few estate held by two or more persons - Correct Answer-tenancy in common (estate in common) the owner of a tenancy in common interest may sell their interest during their lifetime without the consent of the other owners and without affecting any other - Correct Answer-owner's rights a few estate shared by two or more persons who must have equal and undivided interests - Correct Answer-joint tenancy (joint estate) a joint tenancy can be created only when the four unities of ___ ____ ___ and ____ are present - Correct Answer-possession, interest, time and title tenancy in common has ____ or _______ shares of ownership - Correct Answer-equal or unequal clause that specifies what estate you are receiving - Correct Answer-habendum (life or fee) signature of grantee is not required to sign a - Correct Answer-deed best from the grantors standpoint - Correct Answer-quitclaim deed joint tenancy must have - Correct Answer-equal rights of use and possession and interests the distinctive characteristic of a joint tenancy is the - Correct Answer-right of survivorship joint tenancy passes on to - Correct Answer-surviving joint tenants (no will or kids) an estate for a husband and wife only - Correct Answer-tenancy by the entireties Upon the death of one spouse, the surviving spouse will own the property in a few simple as an - Correct Answer-estate or severally personal debt or life estate of dead spouse does not affect the - Correct Answer- tenancy entires property in the event of a divorce, the ownership of tenancy by the entireties converts to - Correct Answer-tenancy in common property owner in one spouses name before the marriage or acquired by gift or inheritance during the marriage is considered - Correct Answer-separate property

provision must be made in the deed that creates a ____ ______ for the succession of ownership upon the death of the life tenant. - Correct Answer-life estate the party who created the life estate, called the _______, may wish to have the property ownership returned to them or their heirs. - Correct Answer-grantor The right to regain ownership of a life estate is called _____ - Correct Answer- Reversion estate if someone other than the original owner is to receive the ownership is called a - Correct Answer-remainder estate the difference between a reversion estate and a remainder estate is simply - Correct Answer-who is to receive the ownership a non-freehold estate with the tenant is lawful possession of the property under an agreement with the landlord but with no definite time limit for the rights to terminate - Correct Answer-tenancy at will (period-to-period tenancy; month to month) a non-freehold estate with the tenant in a lawful possession of the property under an agreement with the landlord for a specified period of time - Correct Answer-tenancy for years (signed leases, begin-end) provides for a surviving spouse to be entitled to 30% of the decedent's real and personal property owned at time of death - Correct Answer-elective share all of these are eminent domain (public use given by government) - Correct Answer- train, federal clinic NET lease - Correct Answer-flat fee PLUS (taxes insurance maintenance) gross lease - Correct Answer-landlord pays fixed lease purpose if elective share is to prevent a spouse from being - Correct Answer-harmed by an unfair will when an individual dies without a wull - Correct Answer-intestate probate laws provide for the passing of property to legal heirs under the - Correct Answer-law of descent and distribution any real property owned by the head of household who resides there in - Correct Answer-homestead (homestead property) homestead can be sold at foreclosure for nonpayment of any lien except - Correct Answer-a judgement lien against the head of household

the homestead property may be left in fee simple to the surviving spouse if - Correct Answer-there are no minor children homestead rights are a provision of the Florida State Constitution and take precedence over the - Correct Answer-law of descent and distribution and elective share what is achieved by recording documents in the public records? - Correct Answer- constructive notice or legal notice enables an owner to hold it in peace or sell it to a person of reasonable prudence for its fair market value - Correct Answer-marketable, merchantable, or clear title to real property title this is free from litigation and defects extends back 30 years from the recording of the claim - Correct Answer-root of title created by a search of the public records that results in a timeline of recorded documents that links all past owners of a parcel of land from the root of title to present day - Correct Answer-chain of title Transfer by Voluntary Alienation - Correct Answer-deed and will willful disposition or gift of real property is called a ______ and the recipient is the ________. - Correct Answer-devise, devisee the disposition or gift of personal property is called a _______ and the recipient is called the __________. - Correct Answer-bequest, beneficiary Transfer by Involuntary Alienation - Correct Answer-descent and distribution, escheat, eminent domain, adverse possession when transferring title, grantor must sign and witnessed by _ persons - Correct Answer- 2 persons title does not transfer until the deed is - Correct Answer-voluntarily delivered to, and voluntary accepted by, the grantee (buyer) who is not required to sign the deed (title) to the new property? - Correct Answer- grantee (the buyer) the only legally necessary clause required in a deed - Correct Answer-premises (granting) clause Premises (granting) clause - Correct Answer-names the parties, contains words of conveyance, states a consideration, includes the date of transfer, and provides legal description of the property

clause that specifies the legal rights being conveyed - Correct Answer-habendum clause (to-have-and-to-hold-clause) what deed contains no warrants of any kind - Correct Answer-quitclaim deed Quitclaim deeds are most often used to - Correct Answer-cure defects in title what deed is the most common - Correct Answer-general warranty deed grantee - Correct Answer-buyer grantor - Correct Answer-seller if a real estate sales contract does not specify the type of deed to be given - Correct Answer-a general warranty deed must be used allows local, state, or federal government, railroads, public utilities, and public housing to ovarian ownership to private property - Correct Answer-eminent domain (called the taking) the taking (eminent domain) must only be for - Correct Answer-public use (highways, schools) a lease in which the tenant agrees to pay a fixed rental amount and the landlord pays all expenses related to the property such as real estate taxes, insurance, and maintenance

• Correct Answer-net lease what are commonly used as net leases - Correct Answer-commercial and industrial leases a lease in which the tenant pays a monthly base rent plus a percentage of the annual monthly gross sales of goods sold on the premises - Correct Answer-percentage lease percentage lease is common in - Correct Answer-retail centers and malls Specific Lien - Correct Answer-A lien affecting or attaching only to a certain, specific parcel of land or piece of property. General Lien - Correct Answer-A lien that attaches to all property owned by an individual. Real and personal. Specific liens include - Correct Answer-property tax and special assessment, mortgage, vendor, and construction liens.

General liens include: - Correct Answer-Judgement liens, federal tax liens, state income tax lien notice of a pending lawsuit against a property owner - Correct Answer-lis pendens within how many days after a commission has been earned that the broker may record a lien notice in the county or countries where the property is location - Correct Answer- 30 days what is the oldest method of land description and provides the most accurate type of legal description - Correct Answer-surveyors method (meted and bounds method) surveyors method begins by giving directions from the monument to the edge of the property which is called? - Correct Answer-point of beginning (POB) when the surgery returns to the point of beginning, it is called a - Correct Answer- closing Principal Meridian - Correct Answer-north-south lines separating townships Baseline - Correct Answer-east-west lines separating townships RANGE LINES RUN - Correct Answer-north and south TIER LINES RUN - Correct Answer-EAST AND WEST OF BASELINE A township is how many square miles? - Correct Answer-36 square miles the intersection of guide meridians and correction lines forms a 24-mile-square area called a - Correct Answer-check each section of a township is - Correct Answer-640 acres a method of legal description used to identify small parcels of property in subdivided areas and cities - Correct Answer-play (or recorded plat) method, aka lot and block method smaller parcels of land - Correct Answer-lot and block a number that is assigned to a parcel of real property by a county property assessor to uniquely identify that property within the jurisdiction - Correct Answer-assessor's parcel number (APN) one acre contains - Correct Answer-43,560 square feet

one acre that is a perfect square measures - Correct Answer-208.710ft x 20&.710ft one section is - Correct Answer-one mike square and contains one square mile a mutual understanding of the terms of the contract is reached when an offer made by one party is accepted by another party - Correct Answer-offer and acceptance, agreement, or meeting of the minds either valuable or good consideration may be - Correct Answer-sufficient consideration (love or affection) money or anything if value that can be converted to money - Correct Answer-valuable consideration requires a contract for the transfer of a right or interest in lane to be in writing in order to be enforceable - Correct Answer-statue of frauds provides time limits during which parties are allowed to bring legal action to enforce their rights under a contract - Correct Answer-the statue of limitations if a contract is entirely ____, action must be brought within 4 years - Correct Answer- oral written contract may be enforced if action is brought within _ years - Correct Answer- exists when some or all of the terms and conditions can be assumed by the nature of the agreement or the words and actions of the parties - Correct Answer-implied contracts only one party expressly agrees to perform and act - Correct Answer-unilateral contract both of the parties to the contract mutually agree to be bound to performance of the the terms and conditions specified - Correct Answer-bilateral contracf executed contract - Correct Answer-signed/ finalized a contract is considered what if any term or condition remains to be performed? - Correct Answer-executory contract a contract that is inherently unenforceable - Correct Answer-voice contract ways in which an offer can be terminated (WILD CARD) - Correct Answer-withdrawal, insanity, lapse of time, death of either party, counteroffer, acceptance, rejection, destruction of the property Three basic remedies for breach of contract? - Correct Answer-Suit for cancellation

Suit for specific performance Suit for damages the party who is not in breach can bring a suit in court to cancel the contract and ask the court to put the part ties back in their original positions - Correct Answer-suit for cancellation (rescission) the party who is not in default asks the court to require the other party to perform as agreed in the contract; usually remedy taken by buyer - Correct Answer-suit for specific performance the injured party can sure for damages, typically involves a request to the court to be financially compensated for harm suffered - Correct Answer-suit for damages sale, transfer, or subrogation of rights in a contract is called - Correct Answer-an assignment damages that are specified and agreed upon in the contract, usually involves the seller retaining the deposit if buyer defaults - Correct Answer-liquidated damages sellers of residential property in florida are required to disclose any - Correct Answer- material defects any fact that found have a significant and reasonable impact affecting the property's value - Correct Answer-material defect a bilateral contract in which the property owner promises to pay a commission regardless of who sells the listed property, the broker who was employed even if they don't sell the property, is still entitled to a commission - Correct Answer-exclusive right of sale contract out of the three types of residential listing contracts, which give the broker the best protection? - Correct Answer-exclusive right of sale a right to buy a property during a specified period of time, at a specified price - Correct Answer-option contract (not an obligation to buy the property) contract for deed also known as - Correct Answer-an agreement for deed, land contract, conditional sales contract, or installment sale contract allows the borrower to retain the ownership of the property during the loan period - Correct Answer-lien theory borrower - Correct Answer-buyer

promissory note is evidence of - Correct Answer-personal debt, and contains the name of the parties, the rate of interest, the amount of money borrowed and the loan repayment terms mortgagee - Correct Answer-lender/bank When money is borrowed to purchase real estate, the lender requires the borrower to sign a ______ - Correct Answer-promissory note (aka note or bond) mortgagor - Correct Answer-buyer/borrower when a loan has been paid in full in a lien theory state, the mortgagor should receive a - Correct Answer-letter of satisfaction from the mortgages within 60 days of the loan payoff what clause provides protection for the borrower as it requires the lender to acknowledge performance by the borrower? - Correct Answer-defeasance clause what is the only legally necessary clause in a mortgage? - Correct Answer-defeasance clause if the balance of the promissory note has not been paid in full from the proceeds of the sale, the lender cannot obtain a deficiency judgement for the unsatisfied amount - Correct Answer-nonrecourse financing (no recourse against the buyer) 1 point is equal to...? - Correct Answer-1/8% yield Lenders cannot discriminate based on....this is called the Equal Credit Opportunity Act (ECOA) - Correct Answer-age, gender, race, or marital status to qualify for an FHA loan, a borrower must not exceed a housing expense ratio of ___ and a total obligations ratio of ____. - Correct Answer-31% and 43% LTV ratio - Correct Answer-loan amount/purchase price or appraised value The right of a borrower to cure a default prior to foreclosure is called the _____ _____ _____. - Correct Answer-Equity of redemption If all lien holders have been paid from the proceeds of the foreclosure sale, any excess remaining is paid to the ______ - Correct Answer-Mortgagor/borrower FHA has - Correct Answer-a max loan and insures VA approved lenders for - Correct Answer-owner-occupied residences

veteran's eligibility for the mortgage loan program is shown in a - Correct Answer- certificate of eligibility For VA loans, a veteran must serve a specified minimum amount of time to be eligible and be - Correct Answer-honorably discharged federal lending regulators usually require this insurance when the loan amount exceeds 80% of the value of the property - Correct Answer-Private Mortgage Insurance (PMI) changes in which of the 3 control devices used by the Federal Reserve is the most abrupt? - Correct Answer-Reserve Requirement considered to be the least effective of the Federal Reserves three tooks - Correct Answer-Discount rate considered to be the most effective tool available to be the most effective tool available to the Federal Reserve for controlling the money supply - Correct Answer-Open Market operations what are the largest source of funds for financing both apartment project and commercial properties? - Correct Answer-life insurance companies Provides liquidity to primary market and solved the problem of the primary lender running out of funds - Correct Answer-secondary mortgage market what are the three principal secondary lenders or quasi-governmental agencies? - Correct Answer--Federal National Mortgage Association (FNMA or Fannie Mae) -Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) -Government National Mortgage Association (GNMA or Ginnie Mae) what does the Real Estate Settlement Procedures Act (RESPA) do? - Correct Answer-- informs borrowers of their settlement costs -requiring lenders to provide a loan estimate of settlement costs -requiring each loan applicant to be provided with the information booklet titled "your home loan toolkit" explains various closing costs -requiring a mortgage servicing disclosure statement that disclosed to the borrower whether the lender intends to service the loan or transfer it to another lender was enacted to assure that consumers receive meaningful information concerning the true cost of credit - Correct Answer-Consumer Credit Protection Act of 1968 Triggering Terms - Correct Answer-the amount or percentage of down payment, number of payments, period (term) of repayment, amount of any payment, and the amount of any finance charges.

when the contract was first entered into the buyer paid the - Correct Answer-binder, or earnest money deposit All prorations are calculated as of: - Correct Answer-midnight taxes - Correct Answer-debit seller rent - Correct Answer-credit buyer Prorating Property Taxes: - Correct Answer-The number of days from January 1st and the cost of the taxes per day must be determined. january 1st to end of june - Correct Answer-less than half of annual property tax july to december - Correct Answer-more than half of annual property tax expenses are debited to either - Correct Answer-buyer or seller third section of the closing statement involves expenses that are owned by either the seller or buyer to parties involved with the transaction including - Correct Answer- attorneys, the state, title company, the brokerage firm state documentary stamp tax on deeds - Correct Answer-S= assessed at the rate of. for each $100 of the full purchase price or any fraction of $ purchase price / $100 = number of taxable increments rounded up to a whole number number of increments x .70 = cost of documentary stamps on deeds on normal sales or exchanges, the documentary tax is shown as a debit to the seller on the closing statement State documentary stamp tax on a promissory note - Correct Answer-N= $.35 per $ or fractional part thereof, new and assumed (new mortgages) State intangible tax on mortgages - Correct Answer-I = buyer, new loans only,. adjustments are always made to the comparable property, but never the - Correct Answer-subject property (set the standard for comparison) If a comparable property is superior to the subject property, the comparable sales price is - Correct Answer-adjusted downward by the value of the superior features superior - Correct Answer-subtract

the the comparable property is inferior to the subject property, the comparable sales price is - Correct Answer-adjusted upward by the value of the inferior features inferior - Correct Answer-increase the estimated cost to construct at current prices an exact duplicate or replica of the building that is being appraised by using the same materials, design, and layout as the subject property - Correct Answer-reproduction cost what is best used to estimate the value of newer properties, property proposed for renovation, insurance purposes, and properties infrequently exchanged or sold in the real estate market? - Correct Answer-cost-depreciation approach the cost-depreciation approach may be the only approach available to estimate the value of - Correct Answer-special-purpose properties (like schools/churches) can be caused by either a deficiency or an over-improvement - Correct Answer- functional obsolescence or economic obsolescence an investment made to a property that does not make the best use of the property or is excessive in comparison with the improvement of similar properties - Correct Answer- over-improvement an over-improved property may suffer ___________ ___________ since it will not sell in the market for the amount invested. - Correct Answer-functional obsolescence a loss in value caused by factors beyond the boundaries of the subject property - Correct Answer-external obsolescence appraisers use - Correct Answer-effective age the age of a property appears to be, due to extensive updates, or excessive wear and tear (condition) - Correct Answer-effective age how to calculate reproduction costs - Correct Answer-dimensions X construction per sqft operating expenses do not include - Correct Answer-Mortgage payments Tax depreciation Capital expenditures Gross Rent Multiplier (GRM) used for monthly rental properties and is derived from comparable properties which are rented at the time of sale by using the formula - Correct Answer-comparable sales price ——————————————- gross monthly income

= Gross Rent Multiplier (GRM) the amount that is actually paid in a real estate transaction - Correct Answer-price value of a failing business that is not expected to continue - Correct Answer-liquidation value value of a property is the most probable price at which specified property should sell - Correct Answer-market value which value generates the greatest return on land and/or improvement - Correct Answer-principle of highest and best use recognizes that no one would pay more for a property than the amount necessary to acquire an acceptable substitute - Correct Answer-principle or substitution disadvantages of investing in real estate include the - Correct Answer-illiquidity of property (cannot be bought or sold as quickly as other assets) an increase in the value of an assets such as personal or investment property that gives a higher value than the cost of purchasing the asset - Correct Answer-capital gain ( sells for more than the purchase costs) risk that can be offset with insurance, such as fire, flood, robbery - Correct Answer-static risk mortgage payments are called - Correct Answer-debt service mortgage payments (debt service) are not considered an - Correct Answer-operating expense includes costs that do not change with the level of occupancy, such as real estate taxes and hazard insurance - Correct Answer-fixed expenses change with the level of occupancy and include costs, such as management fees, maintenance, utilities, yard care, janitorial - Correct Answer-variable expenses noncash expense, money is for future use to replace worn out components called short- lived items - Correct Answer-reserve for replacements operating expense ratio - Correct Answer-Operating Expenses / Effective Gross Income when the value of all assets is combined, it creates what is known as - Correct Answer- going concern value (concept of a profitable business is determined by)

the estimate of value that is determined by the county property appraiser is called the _______ _____ which by law must be based on the concept of _____ _______. - Correct Answer-assessed value; just value (fair value) protest the assessment by - Correct Answer-requesting an informal conference with the county property appraiser property owner by local, state, and federal governments is - Correct Answer-immune (airports,schools,court houses) government owned property - Correct Answer-immune; airport, courthouse, schools Highest and Best Use - Correct Answer-land and improvement to qualify for the homestead tax exemption, the property owner must file for the exemption with the county property appraiser between ______ and ______ of each year. The property must be the owners what? - Correct Answer-january 1st and march 1st; primary residence; any individual, veteran or not, who is totally and permanently disabled is entitled to - Correct Answer-100% exemption from payment of property taxes veterans of military service with at least a 10% military service-related disability receive

• Correct Answer-an additional exemption of $5000 beginning with the calendar year 1995, the assessed value of homestead property is limited as to the amount of increase the county property appraiser may assign to the lesser of - Correct Answer-3% or the percentage change in the Consumer Price Index (CMI) when homestead property is sold, this limitation is removed and the new owner will be assessed at the - Correct Answer-full taxable value tax levies that are used to pay for specific public improvements that add value to the property - Correct Answer-special assessments (liens that may be for paving a street, street lighting) if the property owner does not pay the property taxes before ________ ___ of the year following the assessment, the tax becomes _________. - Correct Answer-April 1st; delinquent tax benefits of homeownership - Correct Answer-real estate property tax deduction and mortgage interest reduction residential zoning - Correct Answer-based on density

density limits the number of - Correct Answer-dwelling units that are allowed per acre request to vary from the specific or literal interpretation of the ordinance - Correct Answer-variance a variance may be granted when the ordinance imposed an - Correct Answer-undue hardship on an owner a property is that predates current zoning and does not conform to current zoning is known as - Correct Answer-nonconforming use while zoning laws dictate how a property may be used, ____ _____ establish the minimum standards for design and construction of buildings and structures. - Correct Answer-building codes an attempt to alleviate many of the problems that are associated with traditional zoning - Correct Answer-planned unit development (PUD) (aka cluster zoning) a planned neutral space between two different types of zoning categories, buildings, or properties that is intended to minimize disturbances between potentially incompatible land uses - Correct Answer-buffer zone smaller than normal lots - Correct Answer-zero lot line or patio homes the department does not have the authority to issue injunctions against - Correct Answer-unlicensed persons post-licensing not complete - Correct Answer-license null and void failure to renew license before expiration - Correct Answer-reverts to "involuntary in active" if broker's license suspended - Correct Answer-licensees employed by broker automatically inactive multiple license - Correct Answer-issued to brokers who own more than one brokerage or business transaction broker - Correct Answer-present all offers, limited representation principal - Correct Answer-single agent referral fees are legal if - Correct Answer-fully disclosed, given to a licensed person, or someone involved in transaction principal office registration is - Correct Answer-transferable

branch office registration is - Correct Answer-not transferable unless reopened at same location with 2 years of first registration what do you have to do when selling personal property? - Correct Answer-disclose licensee status when entering into serious negotiations title company holding the deposut - Correct Answer-broker is required to make a written request to title company to get verification of deposit which dispute settlement procedure requires interpleader - Correct Answer-litigation sales contract was contingent on appraisal and financing - Correct Answer-buyer gets back escrow deposit real estate brokerage partnership - Correct Answer-all partners must be registered brokers and must register with the DBPR joint venture - Correct Answer-temporary business relationship can provide real estate services, separate real estate brokerages, not required to register with DBPR IRMA - Correct Answer-intent, relationship, method of attachment, adaptation Consideration - Correct Answer-promise of future money/lovee what is required to create a valid contract - Correct Answer-offer and acceptance inferred - Correct Answer-implied ways to terminate an offer - Correct Answer-withdraw, acceptance, rejection (WAR) contract between seller and broker, best protection for broker - Correct Answer- exclusive right of sale what is the formula for calculating housing expense - Correct Answer-PITI ——— GMI seller is normally expected to provide either the - Correct Answer-title insurance or abstract accompanied by an opinion of title as evidence of marketable title