FLORIDA REAL ESTATE CLASS FINAL EXAM , Exams of Nursing

Download FLORIDA REAL ESTATE CLASS FINAL EXAM and more Exams Nursing in PDF only on Docsity! FLORIDA REAL ESTATE CLASS FINAL EXAM WITH ACTUAL CORRECT QUESTIONS AND VERIFIED RATIONALES ANSWERS LATEST UPDATE 2024 ALREADY GRADED A+ 100% GUARANTEED PASS!!! What is stipulation? When two attorney's come to an AGREEMENT as to the penalty to be imposed for the violation If an inactive sales assoc renews her license before the expiration date but did not complete her continuing education prior to the expiration date and the BPR finds out, what can happen to her? She will most likely have her license revoked and not be allowed to reapply for a license for 5 years. If a sales associate has had his license revoked by FREC but is appealing and wants to continue practicing RE during the appeal process, can he do so? Yes. He can continue to practice if a stay of enforcement is ordered. Supercedeas. What are the 3 "FREC musts" when dealing with a Final Order of the Court 1. FREC must inform the Division of Fla Land Sales, Condominiums and Mobil Homes of any disciplinary actions against a licensee. 2. FREC must turn any criminal stuff into the State Attorney 3. If another state agency disciplines a licensee, FREC must issue a notice to that licensee to show cause why it should not take action also. What is the Real Estate Recovery Fund used for? Compensatory Damages. To reimburse a person who has suffered monetary damages as a result of an act of a real estate licensee who violated chapter 475 In the Real Estate Recovery Fund, how much is the payment for claims out of a Single Transaction? $50,000 In the Real Estate Recovery Fund, how much is the payment for claims out of Multiple Transactions? may not exceed $150,000 Racial discrimination in the sale or rental of real property is prohibited by what Act? The Civil Rights Act of 1866 The federal Fair Housing Act (applies to Housing only) of 1968 prohibits discrimination based on what 7 things? 1. Religious affiliation 2. sex 3. national origin 4. color 5. race 6. familial status 7. handicap status Is it true that the Civil Rights Act of 1866 supercedes all other laws relative to racial issues? Yes Who prepares the Equal Opportunity poster? HUD Is it a violation of law if the poster is not displayed by brokerage firms? Yes. Failure to display the poster may be considered discrimination. What are the exemptions under the Fair Housing Act? 1. Religious Organizations 2. Private Clubs 3. Any single-family house sold or rented by its owner (provided the owner doesn't own more than 3 houses) 4. 2-4 family housing if the owner occupies one of the dwelling units as a residence 5. Commercial Real Estate (it's not a house) According the Fair Housing Act, what are the 3 unlawful practices? 1. Steering - steering people to a neighborhood based on race 2. Blockbusting - persuading existing owners to sell 3. Redline - lenders who refuse to make a loan in certain areas or subdivisions Which law or regulation requires the disclosure of the annual percentage rate and finance charge? Regulation Z The Truth in Lending Act (TILA) requires lenders to give the Truth in Lending statement within how many business days after the receipt of a written loan application? 3 The Truth in Lending Act (TILA) gives consumers the right to rescind the loan agreement within how many business days after the receipt of the Truth in Lending Statement (disclosures)? 3 An item that was once personal property but is now legally considered to be real property (can't be moved) is called what? A Real Fixture. It has become affixed, attached, built-in or installed to the home. ie built-in appliances, plumbing fixtures What does DUPE stand for? D = Disposition or Owner U = Use P = Possession E = Exclusion Estate means the same things as what? Tenancies What are the 6 types of Estates? 1. Freehold - estate of ownership 2. Leasehold - estate of non-ownership (lease) 3. Fee Simple - most common. Inheritable. Largest bundle of rights. 4. Life - estate for the life of the owner 5. Reversion - reverts back to the grantor 6. Remainder - when a life estate ends the property goes to the remainderman Tom owned a rental property prior to his marriage to Betty. He has a son by previous marriage. Tom leaves a will stating that, upon his death, Betty is to own the property as long as she lives and that upon her death Bobby is to receive the property. Tom dies. What estate to Betty inherit? A Life Estate Adam owns a home in fee simple. He executes a deed conveying the title to Betty until she dies, and upon her death the ownership will be vested in Carol. Carol's interest in the home is what type of estate? Remainder Estate What are the 3 types of Leasehold estates? 1. Tenancy at Will 2. Tenancy at Sufferance 3. Estate (Tenancy) for Years A month-to-month tenancy at will requires how many days notice to terminate? 15 days A week-to-week tenancy at will requires how many days notice to terminate? 7 days If a written lease expires and the tenant is unable to contact the owner prior to the expiration and remains in possession of the premises and continues to pay rent without renewing the lease agreement. What type of tenancy is the occupant establishing? A tenancy at sufferance 2 sisters purchase an investment property. Each sister wants her interest in the property to go to her spouse in the event she dies during the ownership. To accomplish this, the sisters should own the property as what type of tenancy? A tenancy in common If ownership is by 2 or more persons and one of the owner dies, what type of tenancy would allow the surviving owners to receive the share of the deceased owner? Joint tenancy. *This MUST be in writing* If John and Mary own a property as tenants in common, can they have unequal shares? Yes If Al, Bill and Carol purchase a shopping center as joint tenants with right of survivorship. 5 years later, Carol sells her interest to Doris. One year later Doris dies. Who will receive doris's interest in the property? Doris' Heirs Regarding a homestead estate, which statement is TRUE? A homestead estate: A. allows the owner to avoid foreclosure of a mortgage secured by the home B. Exempts the first $50,000 of assessed value from property taxation C. Exempts the property from involuntary loss due to personal and business debts D. Exempts up to 160 acres of land from forced sale for nonpayment of property taxes C. This estate protects the home from involuntary loss due to personal debts and business debts True or False. The Homestead Estate does NOT exempt the home from forced sale for the nonpayment of real estate taxes, special assessments, mortgage liens or construction liens. True How many acres within the city and outside of the city are exempt from judgement liens? 1/2 acre within and 160 acres outside Under the Condominium Act, which document must be given to a prospective who is purchasing a condo from a developer of 20 or more new residential condominium units? Prospectus A proprietary lease is associated with what type of ownership Cooperative What are the 2 types of titles? 1. Legal - deed 2. Equitable - ownership What is voluntary alienation of title to real property? Will Dedication Gift (dancing words) conveyance written deed (dancing words) If a person dies intestate (no will) and no heirs can be found after a diligent search, the state of Fla acquires the title by what? Escheat What are the 2 types of Voluntary Alienation? 1. Deed - an owner voluntarily signs a written document conveying his/her title 2. Will - an owner voluntarily signs papers indicating who receives property upon his/her death What are the 4 types of Involuntary Alienation? 1. Descent - A person dies intestate (no will) but has heirs that the law will disperse the property to. 2. Escheat - A person dies intestate (no will) with no heirs so the property goes to the state. 3. Adverse Possession - when land is occupied continuously, openly, hostile, exclusively and notoriously for 7 years by another person. Squatter Rights. 4. Eminent Domain - when an owners land is take for public use through a condemnation proceeding with payment to the owner If a mortgage is recorded in the public records, what type of notice of legal interest in the property is given? Constructive Notice What is the usual form of Actual Notice of ownership? Possession of the property Encroachment Survey (dancing words) Which is NOT an encumbrance of title? A. a building on the site B. Deed restrictions Sun City utility company has the right to install water mains across the rear 10 feet of a someone's property. The legal interest held by the company is a(n). A. easement B. encroachment C. Utility D. Water Right A. A tenant in an office building pays a fixed rent plus the property taxes, hazard insurance premium, and common area maintenance expenses. This is what type of lease? A. gross B. ground C. net D. percentage C. A lease longer than ____ must be in writing and witnessed by 2 people? 1 year Can a lease less than 1 year be oral or implied and not in writing? Yes Name the 5 types of leases? 1. Gross lease - tenant pays a fixed rent and the landlord pays operating expenses. 2. Net lease - the commercial tenant pays a fixed rent PLUS all or part of the operating expenses such as property taxes, hazard insurance, maintenance and utilities). Most common for office buildings. 3. Percentage lease - the commercial tenant pays rent based on a percentage of the gross retail sales. Most common for shopping centers 4. Variable lease - the tenant pays rent that will vary based on the Consumer Price Index (CPI) 5. Ground lease - tenant leases land and pays the landlord for the use of the ground Can a tenant be kicked out if the building is sold? No. the security deposit and rent must be transferred to new owner. What is a lien? A claim against a property for a debt What are the 2 types of liens? 1. Voluntary - created with owners consent ie mortgage lien, vendor's lien 2. Involuntary - created w/o owners consent ie property tax lien, construction lien, judgment lien Which is an example of a voluntary lien? A. construction B. special assessment C. mortgage D. tax certificate C. A Vendor's lien is an example of A. general lien B. involuntary lien C. lien against the purchaser D. specific lien D. Specific lien - affects only the specific property What is opposite of North 9 degrees East? South 9 degrees West Which parcel of land contains exactly 4 acres? A. 330' x 396' B. 330' x 462' C. 400 x 4.356' D. 528' x 330' D. (528 x 330 = 174,240 divided by 43,560 = 4) Starting at the SE corner of a section thence West 660 ft to a point, thence North 330 ft to a point, thence East 660 ft to a point and thence to the point of beginning. This tract contains how many acres? A. 2 B. 3 C. 4 D. 5 ... which tract of land has a perimeter of 834.84 linear feet? A. 100.00' x 834.84' B. 100.00' x 417.42' C. 200.84' x 215.84' D. 208.71' x 208.71' D. (208.71 + 208.71 + 208.71 + 208.71 = 834.84) Before Tax Cash Flow is what? net operating income minus debt service "Current market value less mortgage debt" describes what term? equity Which is NOT a benefit of investing in real estate? A. depreciation allowance that reduces taxable income B. hedge against inflation C. liquidity D. positive leverage liquidity Which type of risk is associated with the loss of purchasing power due to an unexpected increase in inflation? A. business B. interest rate C. liquidity D. purchasing power Purchasing Power Positive Leverage A. increases the return on equity from using debt financing B. is selling an investment property at a profit C. is the difference between a high interest rate and a lower interest rate D. is the difference between a high rate of return on RE and a lower return on other types of investments increases the return on equity from using debt financing The use of leverage A. has no effect on the yield on investment B. may increase or decrease the yield on investment C. Will decrease the yield on investment D. will increase the yield on investment MAY increase or decrease the yield on investment Regarding the RE market, which statement is TRUE? A. Govt regulations have little influence on the market B. The market is influenced by the immobility of RE C. the market is not influenced by the physical characteristics of land D. The market is quick to respond to changes in supply and demand The market is influenced by the immobility of RE Regarding the RE market, which statement is FALSE? The market is A. Influence by the immobility of land B. regulated by FREC and the DBPR C. segmented into submarkets D. slow to adjust to changes in supply and demand B. regulated by FREC and the DBPR A Business Broker Specializes in the sale, purchase or lease of businesses. Is required to have a real estate license and may be licensed as a real estate broker or sales associate Follow-Up is Keeping in contact with the new owner after the closing of the sale A builder constructs a house on an owner's lot according to the owner's plans and specifications. This is called Custom Building A builder purchases several vacant lots in an established residential subdivision. The builder constructs houses w/o having secured a buyer in advance of the construction of each home and advertises them for sale to prospective buyers. This is which type of residential construction? Spec Building What is exempt from Real Estate licensure under Chapter 475? 1. Straight Salary . 2. A person who sells cemetery lots for a commission. 3. Court jurisdiction. 4. Renting of a mobil home lot in a mobil home park Other exemptions from licensure include 1. For Sale by Owner 2. Owner of a Timeshare period who offers the property for resale. 3. A leasing agent of an apt. complex if they are salaried, work in an onsite rental office and work in a leasing capacity. 4. A manager of a condo and Co-op if employed for a salary and rent is for periods no greater than 1 yr. 5. An Attorney-in-Fact (Power of Attorney) 6. An Attorney-at-Law when acting in the scope of his or her duties as an attorney. Not receiving any compensation for a sale. 7. A decedent (personal representative) when appointed by the court. 8. A person selling entities licensed by the FCC (radio, TV or cable enterprises) 9. A person selling personal property. A farmer is appointed by the court to appraise the farm land of a deceased neighbor. The farmer will be paid a $3000 fee for the appraisal. Is he exempt from Chapter 475? Yes because he was appointed by the courts. A sales assoc employs an unlicensed assistant. The licensee prepares a fact sheet for all of her listings. The sales assoc instructs her assistant to drive a prospective purchaser by several listed properties. When questioned about a particular property, the assistant reads information from the fact sheet. The prospect decides to buy after the assistant showed her the interior of the last property. Have one or the other or both violated Chapter 475? Both violated the license law when the assistant entered the property to show it. Under FREC rules, a Fla resident is a person who has resided in Fla for at least 4 mos within the preceding year. Tom intends to make application to become a Fla real estate sales associate. He must have a Social Security number, a high school diploma, be over 18, and be competent to negotiate. What is not required? To be a US Citizen Mary has a 4 year degree in real estate. Mary must still attend the pre-licensing course and post- licensing education. What class is she exempt from? Continuing Education If a Florida licensee becomes a non-resident of Florida, he or she must notify the BPR within 10 days and file an "irrevocable consent to service" within 60 days If a real estate licensee moves to Florida from another state and wants to obtain a Fla Sales Assoc license based on Mutual Recognition, the licensee must complete the 63-hour sales assoc pre-licensing course and pass the Fla license exam. To obtain a broker's license, the applicant must have 1. Satisfactorily completed the 72 hr broker course. 2. been an Active Sales Assoc for at least 24 months. What information is required to be disclosed on an application for RE licensure? 1. If you've ever been convicted of a crime. 2. Entered a plea of nolo contendere, regardless of adjudicaton. 3. Any violation of the law (except traffic violations, speeding tickets, etc) What does NOT have to be disclosed on an application for RE licensure? Personal Bankruptcy If a developer owns 3 subdivisions in the names of 3 different entities. A sales assoc or broker assoc may be employed by the owner-developer on a commission basis to sell lots in the 3 subdivisions if the assoc is issued what type of license? A Group License To be a broker for several real estate brokerage companies, you must be issued what type of license? Multiple Broker licenses (one for each company) If a real estate licensee fails to renew her license at the end of the biennial renewal period, what will happen to the license? It reverts to an involuntary inactive status If Mary's initial license was issue on Feb 6, 2011, what is the expiration date on her license? September 30, 2012. (Licenses are renewed on March 31 and September 30 every year) If a RE licensee becomes a member of the US Armed Forces and is not engaged in the practice of RE in the private sector, what is the status of his license? It is kept in good standing while he is on active duty and for a period of 6 mos after his discharge from active duty. What happens if a licensee changes last name or mailing address? Must notify BPR within 10 days of the change If a real estate broker's license is suspended for 6 mos for a violation of license law, the licenses of the sales assoc registered with the broker with become what? Involuntary Inactive Which power gives the Fla Real Estate Commission (FREC) the authority to regulate and enforce real estate license law? The Executive Power What is the BPR? Dept of Business and Professional Regulation Who is the Secretary of the BPR appointed by? Appointed by the Governor and confirmed by the Senate What is the purpose of Laws? To protect the public What is the DRE? The Division of Real Estate Who is the Director of the DRE appointed by? The DRE is a division within the BPR. The Director is appointed by the Secretary of the BPR and subject to approval by the Commission What is FREC? Florida Real Estate Commission What are the primary powers and duties of FREC? Adopt Rules and Discipline Licensees who violate chapter 475. What does Caveat Emptor mean? Let the Buyer Beware. Usually applied to transactions where the parties have conflicting interests. This does NOT apply to a Single Agency relationship. Is Full Disclosure required of a Transactional Broker? No. In a No Brokerage or Single Agent relationship, written disclosure applies to whom? Single Family Residential. Includes: 1. 1-4 units 2. Vacant land zoned for 1-4 units 3. Agricultural land of 10 or less acres 4. Lease-option to purchase 1-4 residential units Ace Realty is representing the seller and the buyer as transaction broker. Assoc Henry tells the prospective buyer that he believes the seller would accept $10,000 less than the $200,000 list price. Which duty has Assoc Henry violated? Limited Confidentiality An offer of $200,000 on a contract for purchase and sale has been accepted by the seller. Subsequent offers can what? Be submitted until closing when the title is transferred. A Sales Assoc shows a property which the brokerage firm has listed for sale to a prospective buyer. The sales associate is considered what to the broker? A general agent of the broker When is a single agent brokerage relationship terminated? 1. Death of Principle agent 2. Insanity of Principle agent 3. Bankruptcy of Principle agent 4. Destruction of the subject property (bldg destroyed) 5. Fulfillment of the object of the employment How many years must disclosure documents be retained? 5 A Real Estate broker may sign a contract on behalf of a party to a transaction when he or she is an Attorney-in-fact What are the 3 types of Agents? 1. Universal Agent - Assigned by the Principle to perform all acts that the principle can 2. General Agent - Employed to handle all the affairs in a business such as a Sales Assoc or Property Manager. 3. Special Agent - Limited to finding prospects, showing the property and negotiating on behalf of the principle. Who may the sales assoc accept deposits in the name of? The Broker only (always) A sales assoc is listing a property for sale. He learns there is a lien on the property. What should he do? Advise all prospective buyers of the lien before they submit an offer. A RE broker's client asks the broker to order a title insurance policy while the client is out of town. The broker orders a policy and the title company offers the broker a paid trip to the Bahamas. What should the broker do? The broker must fully disclose the facts pertaining to the arrangement to the client. (Because this is a single agency. Hints the word "client") Can a sales assoc be a general partner in a brokerage partnership? No Which ownership (business) entities can NOT register with BPR as a Real Estate broker? 1. Corporation Sole (meaning one. Like a religious organization) 2. Business Trust (REIT - Real Estate Investment Trust) 3. Co-op Assn. 4. Unincorporated Assn. Which ownership entities ARE permitted to broker real estate? 1. Sole proprietorship 2. Corporations (for profit) 3. Partnerships (limited and general) 4. Limited Liability Company (LLC) 5. Limited Liability Partnership (LLP) 6. Corporations (not for profit) When does a broker have to have money in escrow? 3 business days following receipt A sales assoc wants to move into his own office at a location other than the broker's place of business. He is willing to pay all expenses associated with his own office and will continue to be supervised by the broker. Is this allowed? Only if the Sales Assoc works out of an office registered in the name of the broker. Can a branch office be in a temporary shelter? Only if the business records are kept there and here are sales associates assigned to that office. Otherwise, no. Release Clause Blanket Mortgage Are kickbacks and Rebates allowed to a licensee? No. They are a violation of chapter 475 UNLESS the licensee has fully advised the principal and all affected parties. Must be upfront. What are the 3 principal parts of a Corporation? 1. Stockholders - owners (a sales assoc may be a stockholder but NOT an officer or director) 2. Directors - must be registered and licensed as a broker or be an unlicensed person altogether. 3. Officers - must be registered and licensed as a broker or be an unlicensed person altogether. Can a Corporation do a BARSALE? No. Only Broker Corporation's can. Is a corporation a separate legal entity from the owners of the business? Yes. A corporation is an artificial person created by law. Owners have limited liability. How is a corporation "born"? The Secretary of State charter the corporation and issues a Certificate of Incorporation (like a birth certificate) What is a foreign corporation? Any corporation operating outside of Florida. They may petition the Sec of State for authorization to do business in Florida. What happens if an active broker fails to renew his license at the end of a biennial period? His license, and all sales assoc, will be cancelled. All sales assoc will automatically go into Involuntary Inactive status. If there is only one active broker in an office and he/she dies, resigns or is removed, the vacancy must be filled within how many days? 14 calendar (not business) days. What is a General Partnership? Where there are two or more persons who agree to engage in a business and agree to share in in the profits and losses. A broker-Realtor is a sole proprietor. He wants to use a trade name to identify his real estate brokerage business. what is the minimum requirement on the entrance sign? 5 years If a broker receives conflicting demands from the buyer and seller for the earnest money deposit and cannot resolve the issue between the parties, what 3 things must he do? 1. Notify FREC within 15 business days after the last party's demand 2. Maintain the money in escrow until all is settled. 3. Institute one of the settlement procedures within 30 business days after the last demand. example: If the broker notified FREC of the conflict 10 business days after the last party's demand, then he will have 20 business days to implement a procedure. If he notified FREC 15 days after the last party's demand, then he would have 15 days to implement a procedure When are you exempt to notify FREC concerning a disputed deposit held in escrow? If the buyer gives a written notice of cancellation of a contract within: 1. 15 calendar days if NEW 2. 10 calendar days if TIMESHARE 3. 3 business days if RESALE What are the 4 settlement procedures regarding a deposit dispute? 1. Mediation - 3rd party recommends a Non-binding solution. 2. Arbitration - 3rd party makes a Binding determination 3. Litigation - file a bill of Interpleader. The broker relinquishes any claim on the deposit and gives it to a court 4. Escrow Disbursement Order (EDO) - request that FREC determine who is entitled to the escrowed property Once a deposit dispute is settled by mediation or arbitration, how many days does the broker have to notify FREC of the outcome? 10 business days What is conversion? The failure to account and deliver any deposit, document, thing of value, or commission to the person entitled to receive them. Can a licensee furnish someone a Rental Property list for a fee? Yes, provided there is a written contract or receipt agreement with provisions for a refund made clear in the agreement. What if rental information provided to someone by a licensee under a contract is NOT current or accurate? They may demand within 30 days of the contract a return of their full paid fee. If they do NOT obtain a rental, then they are entitled to 75% of the fee paid. Example: the rental info was purchased on July 1st, then the demand for a refund has to happen by the 31st to receive a refund. What happens if there is a violation of the rental information for a fee law? 1. 1st degree misdemeanor 2. $1000 fine 3. 1 year in jail When hours can telemarketers call a residence? between 8am and 9pm How much can a telemarketing violator be fined for each illegal call? $16,000 What are the two exceptions for "Do Not Call"? 1. Telemarketers (Realtors also) can call up to 3 mos after a business inquiry has been made 2. Telemarketers (Realtors also) can call up to 18 mos after a business transaction has concluded Who is the Florida "Do Not Call" list administered by? Dept of Agriculture and Consumer Services Which is more severe, revocation or suspension? Revocation If an Associate makes a promise to her broker's principal in good faith and later finds that she cannot keep the promise, has the Associate violated any laws? No What are the 4 types of Administration discipline penalties of "FREC May"? 1. Deny 2. Suspend (not exceeding 10 yrs) 3. Revoke 4. Fine If an Assoc is convicted of a crime of moral turpitude and the court withholds adjudication, what can FREC do to them? 1. Revoke/suspend their license up to 10 years 2. Fine up to $5000 Under chapter 475, what is a felony of the third degree? A person operating without holding a valid and current license with an active status. What are the 6 Grounds of Revocation? 1. License by fraud - 3rd degree felony. $5000 fine or 5 years in jail or both 2. License by mistake 3. Obstruct justice by bribe 4. jail, mental institution 5. sell timeshare without an license 6. sell timeshare without full disclosure What are the 3 criminal penalties? 1. Violating Chapter 475 - 2nd degree misdemeanor. $500 fine or 60 days in jail or both. 2. Rental information for a fee - 1st degree misdemeanor. $1000 fine or 1 year in jail or both. 3. Operating as a broker or sales assoc without a valid and current active license - 3rd degree felony. $5000 fine or 5 years in jail or both. What are the 5 administrative actions the BPR may take against licensees 1. Issue a notice of non-compliance or warning - A licensee has 15 days to take corrective action. Minor violation. 2. Issue a citation - licensee has 30 days to pay or file an objection. May also have to complete an educational course. 3. File an Informal complaint - Must be in writing, signed by the complainant, and legally sufficient (contain alleged facts) 4. Issue an emergency suspension - licensed 5. Issue a notice to cease and desist - unlicensed What are the 8 steps in an Administrative Proceeding? 1. Informal Complaint - an allegation that ANYONE can file 2. Investigation - by BPR 3. Probable Cause - determined by Probable Cause Panel 4. Formal Complaint - filed by the state, BPR and FREC 5. Formal Hearing - before a judge 6. Informal Hearing - before FREC 7. Final Order - by FREC 8. Appeal - to court of appeals Samuel wants to do a 1031 exchange. He sold his investment property and has identified the property he'd like to buy next. Within how many days must he close on this property in order for it to qualify as part of the exchange? a. 180 b. 30 c.45 d.60 a. He has 45 days to identify a property he would like to purchase and 180 days to close on it, from time of sale. In which form of co-ownership is a person's ownership inheritable? a. Joint tenancy b. Tenancy by the entirety c. Tenancy in common a. Monthly fees for cooperatives are generally higher because they include taxes, mortgage payments, and fees for maintaining common areas and facilities. For all intents and purposes, subagents are agents of the _______. a. Buyer b. Seller c. The buyer's broker d. The listing broker b. Although a subagent may bring an unrepresented buyer to the transaction, the subagent is an agent of the seller. Can a new licensee specialize in the sale of farm and ranch property? a. Not until the licensee has at least five years of experience in agricultural real estate b. Not until the licensee passes additional courses in agricultural real estate c. Yes, a new licensee can specialize in agricultural real estate d. Yes, as long as the new licensee has a degree in agriculture c. Specialization doesn't require additional coursework or credentials. The licensee must be competent in any specialization, however. Jacqueline is a licensee working with a property near a Superfund site. Which of these statements is true? a. A portion of the sale price must go to the EPA to fund clean-up of the site. b. She must disclose potential health threats to anyone in the area when showing the property. c. She must disclose the existence of an environmental hazard in the area. d. The property can't be sold until the site is removed from the NPL. c. A property with a known Superfund site in the vicinity requires disclosure, as this is a material fact. Curtis wants to do a 1031 exchange. He just closed on his property. How many days does he have to identify a new property? a. 180 b. 30 c. 45 d. 60 c. Investors who want to use the 1031 tax-deferred exchange must identify the new property within 45 days of closing and must close on that property within 180 days from the date of sale of the first property. Which option describes a real property tax lien? a. General and involuntary b. General and voluntary c. Specific and involuntary d. Specific and voluntary c. A buyer representation agreement establishes an agency relationship between which parties? a. Buyer and broker b. Buyer and salesperson c. Seller and broker d. Seller and salesperson a. You may hear a buyer representation agreement called the buyer/broker agreement. This is a contract between the buyer and the broker. Remember, all real estate activities are conducted under the broker's license. What must be filed for the eviction process to begin after a landlord has waited three days and serves a tenant a notice to pay or vacate the premises? a. A complaint for eviction b. A writ of possession c. Evictus nuncus d. The lease a. The eviction process is handled by the court, and it begins when a landlord files a complaint for eviction with the county court. Which of the following could an investor who sells an apartment house buy using a 1031 exchange? a. Duplex, office building, or warehouse b. Duplex only c. Office building only d. Warehouse or office building only a. Any of these would be allowed with a 1031 exchange. Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this? a. Easement by prescription b. Easement in gross c. Express easement d. Visible easement a. Easements by prescription are created through continuous, exclusive, and long-term use of another's property without actual permission. Robin has great credit and was able to secure a loan for her ocean-side dream home. Her 30-year, fixed- rate loan is for an amount that's above conventional loan limits. What type of loan does Robin have? a. A conforming Freddie Mac loan b. A government loan c. An FHA loan d. A non-conforming loan d. Loans that are outside of Freddie Mac and Fannie Mae guidelines, such as jumbo loans, are non- conforming loans. Which one of the following performs ministerial duties, such as recordkeeping, for the FREC? a. DBPR b. DCPA c. DHR d. DRE d. The DRE is responsible for ministerial duties on behalf of the FREC. How long are the terms of the members of the FREC? 4 years The Richards family farm is located on a 10-acre parcel of land, which is very rare to come by in their area. However, the house is rundown and in need of many repairs. Buyers in the area looking for a move-in ready home would need to either look elsewhere or wait several months for the home to be renovated. Which factor is most negatively impacting the value of the Richards' property? a. Demand b. Scarcity c. Transferability d. Utility a. Although large parcels in the area are scarce, the low demand of buyers willing to buy and wait to live in a property that needs significant repairs is affecting the value. In investments, each type of depreciation is defined by a particular event. Which of the following best describes a depreciation type and an event it's tied to? a. Economic depreciation and cost recovery b. Economic depreciation and physical deterioration c. Operating depreciation and taxing authority d. Tax depreciation and physical deterioration b. Economic depreciation is often tied to physical deterioration. What are the two types of Real Estate Investment Trusts? A deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his or her discretion Assignment of Contract Transfer of all rights under a contract to a third party. Assignor remains secondarily liability. Novation Substituting a new obligation for an old one or substituting new parties to an existing obligation. Exclusive Right to Sell Listing Under this listing arrangement, the broker employed is entitled to a commission no matter who sells the property during the listing period. (Even the Seller) Exclusive Agency Listing The owner employs only one broker but retains the right to personally sell the property, and thereby not pay a commission. However, if any other real estate company sells the property, the listing broker is still entitled to the commission stipulated. Open listing agreement non-exclusive listing agreement given by a seller to as many brokers as he or she chooses; broker only entitled to commission if he is the procuring cause of the sale Net Listing Agreement A contract between a seller of real estate and a real estate broker in which the broker is paid as a commission the amount the sale price exceeds the price set by the seller. Option Contract A contract under which the offeror cannot revoke the offer for a stipulated time period (because the offeree has given consideration for the offer to remain open). An option contract gives the potential buyer, who is known as the optionee, the right to purchase the property of the seller, or optionor, as some time in the future Energy Efficiency brochure Requires buyers to receive a brochure before or at the time of executing the sales contract, about the option of receiving an energy efficiency rating on the property being purchased Property Tax Disclosure buyers should not rely on the sellers current property taxes as the amount of property taxes the buyers may be obliged to pay in the year subsequent to purchase. a change in ownership or property improvements triggers reassessments of the property that could result in higher property taxes form-based planning City planning where experts of different fields work together Traditional based planning Specialists from different areas of expertise work separately and focus on designing "their" areas What is the difference between a variance and a special use permit? A. A special use permit is permanent, whereas a variance is temporary. B. A special use permit requires a show of hardship; a variance doesn't. C. A variance is permanent, whereas a special use permit is temporary. D. A variance requires a show of hardship; a special use permit doesn't. D. A variance requires a show of hardship; a special use permit doesn't What is a comprehensive plan? A. A blueprint for new construction projects B. A detailed plan that supplements a master plan and its implementation C. A long-term master plan for the development of a city or county D. A map of all of the zones in a district C. A long-term master plan for the development of a city or county FAR, or floor area ratio, includes ________. A. All of the habitable structures on a lot B. All structures, including habitable structures and parking structures, but not parking lots C. None of the habitable structures on a lot D. The area within parking lots or parking structures A. All of the habitable structures on a lot You're on a planning board that's discussing how to keep the city more livable by reducing building density. The subject of bulk zoning comes up. What is your response? A. "That applies to commercial areas only." B. "That's a great way to meet our objectives." C. "That's crazy. We're trying to reduce density, not increase it." D. "That will work for residential areas, but what about commercial?" B. "That's a great way to meet our objectives." What's the next step in the adoption process for a comprehensive plan once the background studies have been performed? A. Developers bid on areas they would like to develop. B. Residents vote on the plan. C. The plan is reviewed at a public hearing by the local legislative body. D. The plan is reviewed at a public hearing by the planning commission. D. The plan is reviewed at a public hearing by the planning commission. Who or what entity determines the final results of the comprehensive plan? A. The commission and local legislative body, with input from the public B. The governor C. The planning commission D. The public A. The commission and local legislative body, with input from the public What purpose does bulk zoning serve? A. It homogenizes the look of the area. B. It keeps similar races together. C. It provides increased density. D. It restricts building density. D. It restricts building density. Tres owns a warehouse in an area that is zoned light industrial. With an increased demand for housing in the area, Tres wants to create loft-style condos and have his property designated as residential, even though the surrounding buildings will remain light industrial. What type of zoning is this? A. Aesthetic zoning B. Downzoning C. Incentive zoning D. Spot zoning D. Spot Zoning "Spot zoning allows a specific property to be rezoned within an existing zoning area. Spot zoning is illegal in some states." Tom owns a construction company in a small southern town. Although national housing statistics have changed dramatically, his business hasn't increased or decreased at all. Which characteristic of the real estate market is described here? A. Highly influenced by governmental policy B. Indestructible C. Slow to respond D. Unique C. Slow to respond Present all offers and use skill, care, and diligence Transaction brokers and single agents have two duties on common: present all offers and counteroffers and use skill, care, and diligence. Who is the owner of the property in a personal representative's deed? A deceased person A divorcee A legally incompetent person A minor A deceased person A personal representative deed is the transfer of title on the conveyance of a deceased person's property. The personal representative is appointed in the will or by a court to handle the deceased individual's property. In the sale of a business, which generally involves 12 steps, something happens with the assets early in the process. What is it? Business assets and personal assets are combined. Business assets are separated from personal assets. Business assets are subtracted from liabilities. Business assets are subtracted from the value of the business. Business assets are separated from personal assets. Business assets are separated from personal assets, which are not part of the sale. Sirius Shepard decided to open a brokerage in Azkaban. He's trying to decide between registering the trade name Sirius Shepard Realty or Sirius Seasoned Sales Realty. Which of the following statements is true? If used, trade names may not be longer than the licensee's own name Only sole proprietors may use trade names Sirius can choose to register either of these trade names, but not both simultaneously. The actual name of the individual is not a trade name; therefore he can't register Sirius Shepard Realty. The actual name of the individual is not a trade name; therefore he can't register Sirius Shepard Realty. "Sirius would only be able to register Sirius Seasoned Sales as a trade name and not Sirius Shepard Realty because his actual name is not considered a trade name." Before beginning development of a condominium building, what must the developer do? Create an estimated operating budget Create the condo association Record a declaration of condominium Record a declaration of intent Record a declaration of condominium "The developer must record a declaration of condominium before beginning development. This is recorded in county records where the property will be located." In Florida, which of the following scenarios is considered a violation of FTC advertising rules? Marcy just listed the Brown property with the following description: "2,000 square feet of living space for a total of 2,800, including two outbuildings and an unfinished garage." Sarah has just started her career as a solo agent and decides to try a new marketing campaign slogan: "Come let our team of hard-working agents find you the home of your dreams!" Shelia just closed on the Martin property yesterday. She's taken down all the signs and online listings for it. Virginia posted an MLS listing for the Kennedy property without her principal broker's approval. Sarah has just started her career as a solo agent and decides to try a new marketing campaign slogan: "Come let our team of hard-working agents find you the home of your dreams!" "While it may seem innocent enough, claiming to be a part of a team when you aren't is misleading and deceptive advertising." Luke recently moved from a condominium to a cooperative. With a cooperative, his share of mortgage interest and real estate taxes will be ______. Considered as capital gains Deductible on his personal income tax returns Fully refundable to him Not deductible on his personal income tax returns Deductible on his personal income tax returns As the resident in a cooperative, his share of mortgage interest and real estate taxes is deductible on personal income tax returns. Stefan is an unlicensed assistant for the Ace Team at Acme Realty in Florida. Which of these activities can he perform? Calculate commissions for team members. Explain listing information to a client. Host an open house. Solicit business for the team. Calculate commissions for team members. "Unlicensed assistants can't perform any activities that require a real estate license. Prohibited activities include hosting open houses, showing homes, explaining listing information to a consumer, and soliciting business, among others." Juan secures a fixed rate amortized 30-year loan for $295,000 at 4.25%. If his monthly P&I payment is $1,750, how much interest does he pay in the second month of the loan? $1,038.59 $1,042.29 $1,044.79 $1,750 $1,042.29 In the first month, Juan pays $1,044.79 in interest ([$295,000 x .0425] ÷ 12). His monthly payment (stated in the question) is $1,750, so that means he paid the principal down $705.21 ($1,750 - $1,044.79). His new principal balance is $294,294.79 ($295,000 - $705.21). We use the new principal balance amount to calculate interest for the next month. Juan pays $1,042.29 in interest ([$294,294.79 x .0425] ÷ 12)." caveat emptor Latin term for "buyer beware" If probable cause is found the DBPR issues a formal complaint, the licensee has 21 days to do the following... - Not dispute the allegations of fact and request an informal hearing -dispute the allegations of fact and request a formal hearing -Not dispute the allegations of fact and waive the right to be heard Criminal Felony Misdeameanor of second degree = $500 fine, 60 days in jail Misdeameanor of 1st degree = $1000 fine, 1 year in jail Spec Homes built without having a specific buyer in mind Tract homes Intangible Tax on New Mortgages NEW loan amount x $.002 = cost of intangible tax Typical Accrued items that go in the sellers debit column -Unpaid real estate taxes -Tenants rent the seller collected for a period of time in which the buyer will own the property (prepaid) -Interests on the sellers mortgage assumed by the buyer Prepaid items go in the sellers credit column and the buyers debit column Typical Prepaid items include: -Prepaid taxes -Rent paid by the seller under a lease assigned to the buyer -utilities billed and paid in advance -heating oil in the tank Civil rights act of 1866 recognized all persons born in the U.S as citizens, regardless of racce or color and protexted the rights of every U.S citizen to buy, sell, convey, inherit and possess property Anastasia wants to get her real estate license and bring together buyers and sellers. This means she will be involved in which of the following? Agency Appraisal Brokerage Property management Brokerage "This describes the business of real estate brokerage, in which agents bring together a buyer and seller and negotiate real estate transactions." Phyllis and Maury obtained a mortgage from Taylor Bank & Trust in 1998. In 2014, they obtained a second mortgage from Quail Loans. What's the loan with Taylor Bank & Trust considered? First mortgage Home equity line of credit Junior mortgage Subordinate mortgage First Mortgage "The earlier of the two mortgages to be recorded is called a first mortgage." According to RESPA, what must the lender give to the borrower at either the time of loan application or within three days following application? Closing Disclosure Freddie Mac borrower disclosure Loan Estimate TIL statement Loan Estimate "The lender must give the borrower the Loan Estimate at the time of application, or within three days following loan application. The Closing Disclosure must be provided to the borrower three days prior to settlement." Dorcas and Ralph were married for 15 years. Ralph, an accountant, always took care of the bills and other financial matters for the couple. Then Dorcas discovered that Ralph had failed to pay the property tax on their property for the last three years. Which of these is likely to happen? Dorcas and Ralph will be required to sell their home to the state for the amount of property tax owed. The state will place a condemnation order on their property so they can't transfer their property until the debt is satisfied. The state will place a mortgage lien on their home for the amount of property tax owed. The state will place a tax lien on their property so it can't be transferred without satisfying the debt. The state will place a tax lien on their property so it can't be transferred without satisfying the debt. "A real property tax lien is placed against property owners who have not paid their property taxes." The appraisal on Jean's property came in at $22,000 less than the agreed-upon sales price, so the buyer, Thomas, wants to renegotiate the terms. If they can come up with a new price that is satisfactory to both parties, what will they use to document this? Addendum Amendment Annotation Appendix Amendment "A change to an existing sales contract is called an amendment, which changes one or more of the contract's original terms." What must be on every sales associate's advertisement? License number License registration date Their broker's firm name Their license status Their broker's firm name "The associate's broker firm name must appear on all advertisements." What well-known economic principle says that a property's value is determined by what it would cost to purchase a similar property? Conforming value Regression Similar cost principle Substitution Substitution The principle of substitution assumes that a reasonable person wouldn't pay more for a nearly identical property; therefore, the price of similar properties influences a given property's market value." An appraiser used the cost approach to estimate a property's value at $220,000. The site value was $50,000, and the total depreciation estimate was $4,000. What was the estimated cost of improvements? $166,000 $174,000 $266,000 $274,000 $174,000 "To estimate value, an appraiser adds the site value to the estimated cost to replace improvements then subtracts the estimated depreciation. So to solve the equation, you need to solve for cost of improvements. In order to do this, you have to move the given values to the other side of the equation - $50,000 + $4,000 . Here's the equation used to find the cost of improvements = $220,000 ‒ $50,000 + $4,000." Which of the following is true regarding the tax protest procedure in Florida? Property owners have no option but to seek relief through the courts. Property owners may not petition the VAB directly. Property owners may petition the VAB before meeting with the county property appraiser. Property owners must first meet with the county property appraiser or file an appeal before petitioning the VAB. Property owners must first meet with the county property appraiser or file an appeal before petitioning the VAB. B. Lease agreement with a term longer than one year C. Listing Agreement D. Purchase Agreement B. Lease Agreement with a term longer than a year When prospecting and soliciting for new business, licensees should be familiar with what federal acts? A. Do not call implementation act, CAN-SPAM act, and Junk Fax prevention Act B. Do not call implementation act, sherman act, and unfair trade practices act C. Human relations Act, Fair housing act, and americans with disabilities act D. Sherman act, Clayton act, and unfair trade practices act A. Do not call implementation act, CAN-SPAM act, and Junk Fax prevention Act These refer to solicitation via phone, email and fax Which of the following items is something a lender is prohibited from doing if the lender wants to write qualified mortgages? A. Amortization B. Balloon Interest C. Debt to income ratio less than 43% D. Payback terms longer than 30 years D. Payback terms longer than 30 years Debt to income ratios may not exceed 43%. Payback terms may not exceed 30 years Its that time of the year again in real estate where things are really slow and properties just arent moving. In real estate, this period is referred to as a ________ A. Cyclical certainty B. Downcycle C. Downturn D. Slump B. Downcycle Which of the following is a true statement about cooperatives? A. A cooperative is a fee simply type of ownership B. A cooperative is a joint venture with shareholders, formed for their benefit and governed by the developer. C. All cooperatives have specific criteria for residents D. Unlike a condominium, the cooperative corporation does not own the land, buildings, and all rights and interests in the corporation c. All cooperatives have specific criteria for residents What is a real estate mortgage investment conduit (REMIC)? A. A company that owns, and usually operates, income-producing real estate B. An entity used to pool mortgage loans and issue mortgage backed securities C. An organization that manages income producing real estate properties D. An organization with many investors who jointly participate in a real estate investment B. An entity used to pool mortgage loans and issue mortgage backed securities For an antitrust violation to occur, which element must be present? A. Agreement B. Coercion C. Cohesion D. Commission B. Coercion Which term is used to define a search of public records going back at least 60 years to establish a property's title history? Correction deed limited search title examination title report Title examination Title examination (also called title search) searches the public records for at least 60 years to establish a property's title history. Kim moved to the state a year ago and immediately obtained her real estate sales associate license. Now she would like to be a Florida Real Estate Commission member. Is she qualified to achieve this goal? A. Yes. She only needs one year of experience to qualify for a position on the commission. B. No. She must have at least two years of real estate sales associate experience. C. No. She must have been a Florida resident for at least two years. D. No. She must have been an active broker for at least 10 years immediately prior to applying. B. No. She must have at least two years of real estate sales associate experience. Edward performs administrative tasks and record keeping in a government office. What is true of Edward's job? A. He works for FREC. B. His duties are ministerial. C. His duties are performed privately and secretly. D. He doesn't get paid. B. His duties are ministerial. The Florida legislature, under Fl. §455.223-225, granted the DBPR the authority to ______. A. Tax real estate transactions B. Appoint members to the FREC C. Impose imprisonment as a penalty D. Investigate consumer complaints D. Investigate consumer complaints Marissa, a new licensee, has some questions. Which of the following questions can the association of REALTORS® in her state help her answer? How do I choose an educator for my post-licensing education requirements? What kinds of records do I need to keep, and for how long? What steps do I have to take to become a principal broker? Where can I go to find some marketing data on my area so I can advertise more effectively? Where can I go to find some marketing data on my area so I can advertise more effectively? Janice, who has lived in an apartment for many years, is interested in moving to a cooperative. She submits an application to the cooperative's review board, but her application is rejected. The board ______. Is forbidden from rejecting her if she qualifies financially Is not required to inform her why her application was rejected Escheat Probate Probate A _______ is a piece of real estate owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit based on the specific terms of a timeshare agreement, usually in one- to two-week intervals during the year. Campground membership Timeshare estate Timeshare use Vacation ownership Timeshare estate A timeshare estate is a piece of real estate owned by multiple, unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit in one- to two-week intervals during the year. How many additional days are brokers given to provide the seller notice from the attorney holding the escrow funds that the deposit was either received or not received? 10 days 15 days 20 days Five days 10 days What's the estimated value by cost approach for a property if the site value is $25,000, the new cost of improvements is $100,000, and the total depreciation estimate is $15,000? $110,000 $115,000 $140,000 $90,000 $110,000 To estimate value using the cost approach, an appraiser adds the site value to the cost to replace improvements, then subtracts the amount of depreciation. Here, that gives us $100,000 + $25,000 - $15,000. Gabi owns one parcel measuring one square mile and another parcel measuring one mile x half a mile. She combined the parcels and sold them for $2.5 million. What price per acre did she receive for the land? $1,953.13 $2,604.17 $3,125.00 $3,906.25 $2,604.17 One square mile is 640 acres. The area of the second parcel is 5,280' x 2,640' = 13,939,200 sq. ft. Divide that by 43,560 (sq. ft. in an acre) to get 320 acres. 640 + 320 = 960 acres. $2.5 million divided by 960 acres = $2,604.17 per acre. Juan has decided to invest his small inheritance in real estate. He is drawn to the fact that he can add a building where there wasn't one previously and immediately increase the value of his investment. Which economic characteristic of real property is this? Area preference Improvements Permanence Scarcity Improvements The economic characteristic of improvements says that a land's value can be influenced by changes that are made to it. Cheryl is getting her mortgage through her small-town credit union, called Mid-State Meadows Credit Union. Mid-State recently needed extra funding. Which of these agencies most likely provided that funding? A Federal Home Loan Bank The Federal Housing Finance Agency The Federal Mortgage Lending Institution The Federal Reserve System A Federal Home Loan Bank The Federal Home Loan banking system provides low-cost funding to financial institutions, which enables those institutions to provide home mortgage loans, like Cheryl's. Which option is a legal license association in Florida? A broker working at his own firm while working as a broker associate at another firm A broker working with two brokerages without permission from either A sales associate working for two brokerages at the same time A sales associate working on her own without a supervising brokerage A broker working at his own firm while working as a broker associate at another firm What must a broker do if escrow funds are deposited in an attorney or title company's escrow account? A. Nothing, the responsibility now lies with the attorney or title company to handle the funds appropriately. B. Request a notice of default from within 90 days of the time the deposit is made. C. Request a verification of deposit within 10 days of the due date stated in the sale agreement. D. Request that the attorney or escrow company provide a bond of 25% of the escrowed funds to the broker. C. Request a verification of deposit within 10 days of the due date stated in the sale agreement. A broker must request verification of deposit within 10 days of the deadline stated in the sale agreement and notify the seller of the response. What type of foreclosure is commonly used when a deed of trust is the security instrument? Eviction Judicial Non-judicial Strict Non-judicial One area of town has maximum building height requirements and setbacks for the front, side, and rear yards. These requirements are all indicative of ______. Bulk zoning Commercial zoning Density zoning Residential zoning Bulk zoning Title VIII of which law prohibits discrimination in the sale, rental, and financing of housing? Civil Rights Act of 1866 Civil Rights Act of 1968 Equal Credit Opportunity Act of 1974 Housing and Community Development Act of 1974 Civil Rights Act of 1968 What is the length of the statute of limitations to file a fair housing complaint with HUD? 10 years Five years One year Seven years One year Sanjeev leases a house from Clara, and the lease has an option contract attached that permits Sanjeev to buy the house if he chooses to exercise the option within three years. How large does the option fee need to be in order to be legally binding? 10% of the purchase price 1% of the purchase price Any amount agreed to by the parties At least $1,000 Any amount agreed to by the parties Regulation Z codifies the rules of the ______. Equal Credit Opportunity Act Home Mortgage Disclosure Act Real Estate Settlement Procedures Act Truth in Lending Act Truth in Lending Act Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided? Barbie and Midge each own 50%. Barbie and Skipper each own 50%. Barbie, Midge, and Ken's heirs each own one-third. Barbie owns two-thirds, and Midge owns one-third. Barbie owns two-thirds, and Midge owns one-third. Joint tenancy includes the right of survivorship, so Ken's interest will pass to the other tenants. But because Midge bought in later than the others, she isn't considered a joint tenant. Ken's share will therefore pass entirely to Barbie. When referring to Joint tenancy, remember TIME TITLE INTEREST POSSESSION Your seller wants to net $100,000 after the 5% commission is paid. Assuming no closing costs, at what price does the home need to sell for the seller to net this amount? $105,163.16 Give more weight to the list price on the comparable that's most similar to the property. When faced with a range of prices, give more weight to the comparable that's most similar to the subject property. What type of notice results from publicly recording a title transfer? Actual notice Attorney notice Constructive notice Proper notice The purpose of recording is to give the public constructive notice of a transfer of ownership. Recording doesn't transfer title; it informs the public that a transfer of title has occurred. Constructive notice The purpose of recording is to give the public constructive notice of a transfer of ownership. Recording doesn't transfer title; it informs the public that a transfer of title has occurred. Where can an agent report an antitrust violation? Citizens Complaint Center of the Antitrust Division The Department of Housing and Urban Development The Department of State The Federal Bureau of Investigation Citizens Complaint Center of the Antitrust Division Which of the following is a true statement about deducting interest on mortgages taken out in tax years between 2018 and 2025? Interest on the first $500,000 of mortgage debt is deductible for married couples filing jointly or $375,000 for married couples filing separately. Interest on the first $750,000 of mortgage debt is deductible for married couples filing jointly or $375,000 for married couples filing separately. The loan can be used for purchase or making improvements, as well as for other purposes. The loan cannot be for more than the borrower's most recent year's salary. Interest on the first $750,000 of mortgage debt is deductible for married couples filing jointly or $375,000 for married couples filing separately. For tax years 2018 to 2025, interest on the first $750,000 of mortgage debt is deductible for married couples filing jointly. James, a seller, signed a listing agreement that allowed him to contract with multiple agents but only pay a commission to the agent who located a buyer. This type of listing agreement is called ______. Exclusive agency Exclusive right to sell Open Seller's choice Open What is a bound? A line that runs east to west A line that runs north to south A physical feature that defines the boundaries of the land The direction and distance of a line forming the boundary of a property A physical feature that defines the boundaries of the land How many duties are owed by a designated sales associate? Nine Seven Three Zero Nine Designated sales associates act as single agents, and a designated sales associate disclosure must list the same nine duties as a single agent notice. These are the DAD UP COLD duties. Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. What is Jared's brokerage's commission rate? 2.3% 3.8% 6.5% 7.6% 6.5% Jared was paid $12,239.50, which is 70% of the amount paid to his broker as commission. That makes his firm's commission $12,239.50 ÷ .70 = $17,485. Multiply that by two for the total commission the firm grossed, since it's shared 50/50 with a cooperating brokerage (the brokerage that brings the buyer to the sale), giving you $34,970. Then divide by the total sales amount for the brokerage's commission rate: $34,970 ÷ $538,000 = 0.065, or 6.5%. With cooperatives, the resident's share of mortgage interest and real estate taxes is ______. Deductible only on the board's tax returns A. Its cost to build B. Its estimate C. Its value D. The majority C. Its value Which of the following is true about the Florida Green Belt Law? A. It allows agricultural properties to be assessed at a lower rate. B. It allows all properties to be assessed at a lower rate. C. It allows investors to buy agricultural property at a lower rate. D. It makes agricultural properties exempt from property tax. A. It allows agricultural properties to be assessed at a lower rate. The Green Belt Law protects agricultural properties by allowing them to be assessed at a lower rate. It also allows them to be appraised only on current use, and not highest and best use. Jessica and Eric's home has homestead status. The just (market) value of their home is $200,000, and they have $20,000 in SOH protections. What is the assessed value of their home after the SOH protections are applied? A. $160,000 B. $180,000 C. $200,000 D. $220,000 B. $180,000 The assessed value is $180,000. The SOH amendment limits increase in assessed value to 3% per year. In order for Thom and Josie to exempt a portion of their primary residence's value from property tax, they must file a homestead application with the county appraiser's office before March 1. What other requirement must they meet? A. They must both be over the age of 65. B. They must have at least one other Florida residence on which they pay real estate taxes. C. They must have had legal title for at least one year. D. They must have had legal title since January 1. D. They must have had legal title since January 1. Laura's property is subject to a special assessment. Which of the following is true? A. The amount of the special assessment does not become a lien against her property like ad valorem taxes. B. The special assessment is deductible for income tax purposes. C. The special assessment must benefit Laura's property. D. The special assessment will not accumulate interest. C. The special assessment must benefit Laura's property. Gary and Anita wish to protest their property tax assessment. What is the time frame in which they must do this? A. Any time before the taxes are due B. Within 10 days of receiving the TRIM notice C. Within 25 days of the date the TRIM notice was mailed D. Within 30 days of the payment due date C. Within 25 days of the date the TRIM notice was mailed The Gomez family just moved into their dream home. They purchased the home for $264,985, and it appraised at $272,402. The assessment ratio for their area is 25%, and the tax rate for their area is 2.8%. What is their annual tax bill? A. $1,262 B. $1,664 C. $1,854 D. $1,907 First, lets find the assessed value, by multiplying the appraised value of $272,402 by .25, which gives us $68,100, then lets multiply that assessed value by their tax rate which is 2.8% and that leaves us with $1907 Mariel is buying a home and is looking forward to the tax deductions. She may deduct which of the following? Closing costs Furnishings purchased on credit Loan origination fee Utility costs Loan origination fee Cheng is selling his property to Jericho. What's the best method Jericho can use to ensure his interest in the property? Ensure that Cheng signs the deed. Ensure that he signs the deed. Purchase title insurance. Record the deed in his name. Record the deed in his name. Which type of lease is one in which the tenant pays the rent and some expenses related to the property (e.g., maintenance) separately? Graduated Gross Net Percentage Beneficiaries Devisees Heirs Testators Heirs Who or what is a licensee's sphere of influence? A list of contacts, both personal and professional, who already know and trust the licensee Coworkers who work for the same brokerage as the licensee Family and friends to whom a licensee listens regarding business matters The code of ethics published by the National Association of REALTORS® A list of contacts, both personal and professional, who already know and trust the licensee Kenneth entered into a contract to sell his home to Valerie, who put down a $5,000 earnest money deposit. At the last minute, Valerie backed out of the deal and Kenneth kept the earnest deposit. This is an example of ______. Accepting liquidated damages Accepting partial performance Suing for damages Suing for specific performance Accepting liquidated damages Deanna has just submitted her application for a Florida real estate sales associate license. She zoned out and forgot to include her check for the fee. What's the worst thing that could happen as a result? Her license could be delayed. Her license could be denied. She may have to pay a penalty. She may have to re-apply. Her license could be denied. According to the NAR Code of Ethics, which statement most accurately describes a licensee's responsibility related to written offers on a listing? A licensee is only required to present formal written offers that are equal to or more than the listing price. A licensee is only required to present formal written offers within a certain range of the listing price of the property. All formal written offers the licensee receives must be presented to the owner unless the owner has accepted a previous offer. All formal written offers the licensee receives must be presented to the owner until closing or execution of a lease unless the client waives this obligation in writing. All formal written offers the licensee receives must be presented to the owner until closing or execution of a lease unless the client waives this obligation in writing. A caveat emptor state could best be described as which of the following? The seller does not have to disclose information on material defects or protect the buyer in any way. The seller is liable for providing a complete and accurate picture of the condition of the property. The seller must proactively have a home inspection conducted. The seller must provide a seller disclosure form containing information about any known defects. The seller does not have to disclose information on material defects or protect the buyer in any way. Which condominium document creates the homeowners association? Articles of incorporation Bylaws Declaration of condominium FAQs Articles of incorporation Gregory has been bombarded with emails from a local real estate licensee. He keeps opting out of these emails, but they just keep coming. What federal law is the licensee possibly violating? Anti-Spam Act of 2000 CAN-SPAM Act of 2003 Do Not Spam Act of 2003 Junk Email Prevention Act of 2005 CAN-SPAM Act of 2003 Teena has fee simple ownership of her timeshare unit. Which of these is NOT an example of the type of ownership she may have? Interval ownership Right-to-use Tenancy in common Ari owned acreage in a rural area. He sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered Ari several million dollars for the entire acreage, and Ari eagerly accepted the offer. What covenant is Ari in danger of violating? Against encumbrances Quiet enjoyment Seisin Warranty Seisin The covenant of seisin guarantees that the grantor owns the property that appears in the deed. Because the sale of property to Ari's neighbor was never recorded, his deed still shows that he owns the entire parcel. In Florida, which of these describes self-dealing? A licensee lists her own property and informs all parties that she's licensed. A licensee sells a property without broker supervision. A licensee sells a property with the understanding that she will make all pertinent decisions on her client's behalf. A licensee sells her own property for personal use without the knowledge of the principal broker. A licensee sells her own property for personal use without the knowledge of the principal broker. Jerry is a business enterprise broker. Which of the following must be true? He deals with the sale and purchase of larger businesses. He deals with the sale and purchase of smaller businesses. He does not deal with the sale and purchase of personal property. He is not required to have a real estate license. He deals with the sale and purchase of larger businesses. Which condo document must be created before beginning development Articles of incorporation Bylaws Declaration of condominium FAQs Declaration of condominium *think declaration of independence.. must be created before something can begin What is the correct calculation to figure out a commission rate? List price ÷ total commission List price × total commission Sales price ÷ total commission Total commission ÷ sales price Total commission ÷ sales price Which type of legal description do courts prefer? Benchmark Lot and block Metes and bounds Rectangular government survey Lot and block According to custom, who pays the costs on the day of closing for property taxes, utilities, etc.? The buyer The buyer and seller split these costs. The seller Typically, the broker pays the costs on the day of closing. The seller Sarah owns her own home. As part of her basic property rights, she has the right to decide who may or may not access the property. Which right is this? Disposition Enjoyment Exclusion Possession Exclusion She can EXCLUDE anyone she wants too Sunshine Surveyors Inc. created a lot and block survey for a new residential development, Happy Acres. The first thing the surveyor did when he surveyed the new neighborhood was to reference what type of description? Map Limited dual agency Transaction brokerage Transaction brokerage Property owners who wish to request a meeting with the property appraiser to protest their property tax assessment, exemption status, tax deferral, or portability decision must do so within ______ days of receiving their TRIM notice. 10 15 25 30 25 *they say it is 15 but I am almost positive this is wrong https://floridarevenue.com/property/Documents/pt101.pdf Evan has his home and cell number on the Do Not Call Registry. He received an unwanted solicitation call from a new real estate licensee in the city. He told the licensee his number is on the Do Not Call Registry and that he does not wish to do business with the licensee. A few days later, he got another unwanted call from the licensee. What federal act is the licensee possibly violating? A. Anti-Telemarketer Act of 2000 B. CAN-SPAM Act of 2003 C. Do Not Call Implementation Act of 2003 D. Junk Fax Prevention Act of 2005 C. Do Not Call Implementation Act of 2003 Rental companies and brokerages that charge a fee for providing rental listing information must give prospective tenants ______. .A. A guarantee that they will find a property B. A list containing at least 10 rental properties C. A new list if they don't find a property they like within the first 10 days D. A receipt with a disclosure about refunds with the approved language D. A receipt with a disclosure about refunds with the approved language In the state of Florida, online remote notaries can ______. Are to be used exclusively Can be used any time Can be used only with special permission Never be used Can be used any time Which of the following is a true statement about how adjustments are made in the sales comparison approach? Adjustments are made to the subject property, not the comparables. Appraisers adjust downward when a comparable is missing a feature found in the subject property. Appraisers adjust upward when a comparable is missing a feature found in the subject property. Only three adjustments per comparable property are allowed; otherwise it's not considered sufficiently similar. Appraisers adjust upward when a comparable is missing a feature found in the subject property. "All adjustments are made to the comparable properties' sales prices to make them as similar as possible to the subject property." If a seller is concerned about an appraisal, what can a buyer do to address this need when structuring the offer? Allow an escalation clause. Offer a quick close. Offer full price or more than full price. Waive the appraisal. Waive the appraisal. Which of the following is regulated by the Federal Housing Finance Agency? Fannie Mae Farmer Mac Ginnie Mae Real estate licensees Fannie Mae Property manager Mrs. Babish has just returned $200 to Laverne and Shirley, her former tenants. Their security deposit was $800 when they moved in. What else, if anything, must Mrs. Babish do? She must send a letter to the tenants that confirms the end of the lease in writing. She must send the bank a notarized statement saying that she returned $200 of the deposit. She must send the tenants an itemized statement that details how the missing money was spent. Loan Property Lender Janice wanted to sell her townhome, and her neighbor was considering buying it. She wanted to put it on the market while she waited to find out if her neighbor was going to buy. In order to receive the best possible representation but avoid paying a commission if her neighbor buys the property, which type of listing agreement would best suit Janice's needs? Exclusive agency Exclusive right to sell Net Open Exclusive agency "It's easy to confuse exclusive agency and exclusive right to sell. With exclusive agency, the seller retains the right to find a buyer and avoid paying the commission, but the seller's listing will likely receive more attention from the agent than it would with an open listing." Cam is a broker. His licensees, Jane and John, represent two sides in a single transaction. Jane represents the seller; John represents the buyer. What relationship does Cam have to the buyer and the seller? Cam is a designated agent to both the buyer and seller. Cam is a designated agent to the buyer and a dual agent to the seller. Cam is a designated agent to the seller and a dual agent to the buyer. Cam is a dual agent to both the buyer and seller. Cam is a dual agent to both the buyer and seller. Which of the following is illegal commingling? Failing to keep appropriate records Having more in an escrow account than could be accounted for by escrow funds Placing client funds in the firm's general business account Stealing a client's trust funds Placing client funds in the firm's general business account In a title theory state, which of the following is a true statement? A promissory note creates a lien against the property used as security for the loan. It's generally much easier for a lender to foreclose on a property. The lien makes non-judicial foreclosure typical. The mortgage creates a lien against the property used as security for the loan. It's generally much easier for a lender to foreclose on a property. Which of the following is a type of zoning action? Aesthetic Bulk Moratorium Rural Moratorium The Druid Hills neighborhood sits firmly within a single-family residential zoning area. Most of the lots are one-third of an acre or larger. A 20-acre parcel on the edge of the neighborhood sold recently. The buyer wants to build condominium flats since multi-family housing is in short supply in the area. The town is considering rezoning that parcel to allow this development because the developer plans to also include a public park and a walking trail. What kind of zoning is this? Aesthetic zoning Downzoning Incentive zoning Spot zoning Incentive zoning Which economic characteristic of land contains the concept that a land's value can be affected by the changes made to it, such as construction of a home or shopping center? Improvements Permanence of investment Scarcity Situs (location) Improvements A property owner wishes to protest her property tax assessment, so she did not make the required payment on her taxes by the due date. The property taxes are now delinquent. Which of the following is true? The owner is not liable for the taxes until the VAB makes a determination. The owner must pay her taxes by the date of her hearing with the VAB. The owner's petition to the VAB will be denied. The owner will be given additional time to pay her taxes once the dispute is settled. The owner's petition to the VAB will be denied. C. Address Explain the different types of leases Gross lease: tenant pays rent, landlord pays taxes, insurance and repairs Net lease: tenant pays rent PLUS taxes and insurance Percentage lease: rent may fluctuate based off sales Variable lease: tenant pays rent which may change in the future Ground lease: tenant pays rent for land and builds a building on top of it Intersecting in Tallahassee principle meridian is north to south and base line meridian is east to west True How many acres are in a square mile? 640 acres The SW1/4, NE1/4, SE1/4,NW1/4 contains how many acres? A. 1.5 B. 640 C. 9 D. 2.5 D. 2.5 Found this by 640x.4= 256 640/256= 2.5 The mortgagee advances the due date of the unpaid mortgage this is known as A. Due on sale clause B. Defeasance clause C. Prepayment clause D. Acceleration clause The acceleration clause authorized the mortgagee (LENDER) to accelerate the due date of the entire unpaid balance Mortgage loan originators do not make loans True or false? True "Mortgage loan originators also known as mortgage brokers find loans for borrowers" In which market are loans created? A. Federal market B. Primary market C. Secondary market D. Treasury market B. Primary market Which market buys and sells existing mortgages? A. Federal market B. Treasury market C. Primary market D. Secondary market Secondary market "The secondary market is an investor market where participants like Fannie Mae, Freddie Mac and ginnie mae purchase mortgages from the primary market Ginnie Mae approved mortgage-backed securities _____________. A. Carry the full faith and credit guarantee of the federal government B. Are to be paid on closing date C. Are sold to the primary market D. Do not have to pay fees A. A. Carry the full faith and credit guarantee of the federal government At the time of the mortgage loan application The Real Estate Settlement Procedures Act (RESPA) requires A. Good faith estimate B. Insurance C. Lien D. APR A. Good faith estimate The federal reserve regulation z requires lenders disclose the annual percentage rate in appliance with A. The real estate procedures act B. Equal credit opportunity act C. The truth in lending act D. The civil rights act of 1866 C. The truth in lending act Financial institutions must make credit available without discrimination of race in accordance with A. The civil rights act of 1866 B. The real estate procedures act C. The truth in lending act D. The equal credit opportunity act D. The equal credit opportunity act Potential gross income minus vacancy and collection losses is A. Effective gross income B. Net income C. Total income D. Potential income A. Effective gross income A developer of 20 or more new residential units must give a ______ to a buyer A. Interval B. Time share C. Plat map D. Prospectus D. Prospectus "A developer must give a purchaser a prospectus which gives condominium details" Drew the tenant pays the landlord rent in advance and a security deposit, the landlord puts the funds in his personal account A. The landlord must put the funds in an interest bearing account B. The landlord is allowed to put the funds in his personal account C. The landlord is not allowed to put the funds in his personal account they must be put in a separate account D. The landlord is allowed to put the funds in his personal account as long as he does not spend them The department of business and professional regulation is under which Florida statute A. Chapter 61j2 B. Chapter 475 C. Chapter 455 D. Chapter 20 A member of the US armed forces is transferred to active duty in Florida. The service members spouse holds a valid New York real estate license. The service members spouse desires a Florida real estate license. Which is true? A. The spouse must complete the prelicense education B. The spouse must pass the Florida specific real estate exam C. Upon application for license, the DBPR must issue license D. The spouse is eligible for Florida license because if mutual recognition with state of New York C. Upon application for license, the DBPR must issue license Which statement is false regarding mutual recognition agreements? A. The agreements are intended to recognize the education and experience that real estate licensee's have acquired in other states are nations