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FLORIDA REAL ESTATE EXAM 2024 | ALL 340 QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+, Exams of Real Estate Management

FLORIDA REAL ESTATE EXAM 2024 | ALL 340 QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+ | LATEST UPDATE

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2023/2024

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Download FLORIDA REAL ESTATE EXAM 2024 | ALL 340 QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+ and more Exams Real Estate Management in PDF only on Docsity! FLORIDA REAL ESTATE EXAM 2024 | ALL 340 QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+ | LATEST UPDATE 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 Is it easier for a lender to foreclose on a property? -------------------------------------------------- ------ In title theory states, the borrower receives the deed, but the lender keeps the title and owns the house until the borrower pays off the loan -The borrower doesn't "actually" own the property until the mortgage is paid off and the lender releases the deed. -Since the lender already owns the property, it is much easier for a lender to foreclose on a property in a title theory state. Constructive Notice -------------------------------------------------------Recordation ensures that the buyer's ownership is protected. It provides constructive notice of the sale/purchase, which means that the record is publicly available to anyone who does a records search. Actual Notice -------------------------------------------------------Parties have personal knowledge of the particular event 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 d. Tenancy in severalty c. Tenancy in common allows for a persons share to be inheritable, it does not automatically pass forth to the rest of the owners like in joint tenancy (this is called the right of survivorship). How long do prospective tenants have to request a refund after purchasing a rental list? -------------------------------------------------------a. 10 days b. 15 days c. 30 days d. 360 days C. 30 days.... tenants have up to 30 days to request a 75% refund if they do not purchase a rental Which method best describes the foreclosure process in Florida? ----------------------------- --------------------------a. Caveat emptor b. Judicial c. Lis pendens d. Non-judicial b. The state of florida offers a judicial foreclosure process A judicial foreclosure is known as a lien theory process. Basically, the homeowner has legal title to the property... Unlike title theory, where as the owner has equitable title Which of the following statements about the Florida property tax disclosure is NOT true? -------------------------------------------------------a. It can be included in the sales contract itself. b. It cautions buyers not to rely on the current year's tax to predict what they'll have to pay. c. It gives buyers a rough estimate of the property tax they'll pay in the coming year. d. It must be provided to sellers when they sign their agency agreement. c. This disclosure doesn't provide any estimates of future property tax amounts. Which act simplifies, clarifies, and modernizes consumer protection laws and makes them more consistent with federal trade laws? ------------------------------------------------------- a. Fair Housing Act b. Federal Duplicate Law Condensation Act c. Federal Trade Commission Act d. Florida Deceptive and Unfair Trade Practices Act d. The Florida Deceptive and Unfair Trade Practices Act is the act that simplifies, clarifies, and modernizes consumer protection laws and makes them more consistent with federal trade laws. To comply with the statute of frauds, an option contract must be ______. -------------------- -----------------------------------a. In writing and signed by the optionee b. In writing and signed by the optionor c. In writing and witnessed by an attorney d. On file at the local courthouse b. To comply with the statute of frauds, an option contract must be in writing and signed by the optionor (seller). A cooperative is a(n) _____. -------------------------------------------------------a. limited partnership b. LLC c. not-for-profit corporation d. sole proprietorship c. A cooperative is a joint venture with its shareholders, formed for their benefit and governed by them. It's a not-for-profit corporation. Compared with condominiums, the monthly fees for a cooperative owner are typically ______. -------------------------------------------------------a. Higher b. Much less c. Slightly less d. The same 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 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? Someone who's been given the authority to act on behalf of someone else is a(n) ______. A. Agent B. Client C. Mortgage lender D. Trustor -------------------------------------------------------A. Agent "The term agent, though often used to refer to a real estate licensee, means someone who's been given the authority to act on someone else's behalf in some capacity." To comply with the statute of frauds, an option contract must be ______. A. In writing and signed by the optionee B. In writing and signed by the optionor C. In writing and signed by the optionor On file at the local courthouse -------------------------------------------------------C. In writing and signed by the optionor To comply with the statute of frauds, an option contract must be in writing and signed by the optionor (seller). Which two duties of the transaction broker are shared with the single agent? Account for all funds and obedience Confidentiality and full disclosure Maintain limited confidentiality and deal honestly and fairly Present all offers and use skill, care, and diligence ------------------------------------------------- ------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. (DAD) Transaction Broker -------------------------------------------------------- Transaction broker is the presumed agency in florida and is the only relationship that does not require a written disclosure to be signed... A transaction broker is a broker who provides a limited form of representation to the buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity. D ealing honesty and Fairly A ccounting for all funds D isclosing all known facts that materially affect the value of residential real property P resenting all offers and counter-offers in a timely manner U sing skill, care and diligence in all transactions M aintaining confidentiality A ny additional duties that are entered into written agreement Licensees who have no brokerage relationship still have duties to potential sellers and buyers -------------------------------------------------------D A D debt service ratio -------------------------------------------------------This is used to determine whether the a properties income will cover its monthly mortgage payments this is calculated by diving NOI/annual debt service A DCR of less than one indicates negative cash flow Prorated Expenses -------------------------------------------------------Typically the seller pays the costs for property taxes, utilities, etc. on the day of closing Prorations can be calculated one of two ways 1). using a statutory year (360 days) 2.) calendar year (365 days) The real estate taxes assessed on the property are $785 for the year. The taxes arent due until the following january 1st. Closing is held on May 31st... Here is how that would look on the closing statement -------------------------------------------------------Accrued period of taxes owed by the seller at closing using the statutory year: - $785.00/12 = $65.42 per month -$65.43 x 5 full months (jan 31st- May 31st) = $327.10 The seller will recieve a "debit" and buyer a "credit" the seller is paying for his 5 months of property taxes from january to may Now, what if the seller is closing mid month, lets say June 15th? Well... we would just divide that monthly fee of 65.42 and divide it by 30. that would get us a daily amount of $2.18, we then multiply that by 15 and add that to the previous 5 months... Documentary stamp tax -------------------------------------------------------- Paid at a rate of 70 cents per $100 - Commonly paid by the seller Documentary stamp tax on notes -------------------------------------------------------- calculated at a rate of 35 cents for every $100 of the unpaid balance once the note is executed 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 must first meet with the county property appraiser or file an appeal before petitioning the VAB. "Property owners must request a conference with the county appraiser, or file an appeal before they file a petition with the VAB." What is the maximum amount of SOH protections which can be transferred to a new home? $10,000 $100,000 $50,000 $500,000 -------------------------------------------------------$500,000 The SOH benefit transferred is limited to $500,000. The rate at which a bank can obtain an overnight loan from another bank without providing collateral is called the ______ rate. Adjustable Discount Federal funds Prime -------------------------------------------------------When a member bank seeks a short- term loan from another bank, the federal funds rate applies. This is for short-term (overnight) loans without collateral. Federal funds Which of the following statements regarding "kickbacks" is true? The receiving party absolutely must have an active real estate license. They can be paid to another party in a transaction, but only with the broker's approval and with the full knowledge of all other parties. They can be paid to anyone who refers a client to a licensed agent. They're always illegal. -------------------------------------------------------They can be paid to another party in a transaction, but only with the broker's approval and with the full knowledge of all other parties. "The party to whom the referral fee or kickback is paid doesn't have to have a real estate license. However, the person must be a principal in the transaction." A mortgage is a legally binding document that creates a lien on a piece of property and gives the lender the right to foreclose on the property if the borrower defaults. Who or what entity is considered the mortgagee? Borrower Lender Loan Property -------------------------------------------------------Lender The lender holds the mortgage on the property, so the lender is the mortgagee. Chapter 475 of the Florida statutes sets forth the law regarding real estate brokers, sales associates, and real estate schools. What is this law called? Administrative Code Department of Business and Professional Regulation Organizational Structure Act Real Estate Professional Practice Act -------------------------------------------------------Real Estate Professional Practice Act "The Real Estate Professional Practice Act was created by the Florida legislature to establish the legal rights and responsibilities of real estate licensees." Which of the following describes a tenancy at will? Tenancy after the lawful authority has expired, after which the landlord may evict Tenancy for an unknown period of time, with either party permitted to terminate the lease by giving notice Tenancy for a specified period of time that automatically renews itself for the same length of time unless one party terminates Tenancy of definite duration that terminates automatically and is inheritable ---------------- ---------------------------------------"Tenancy for an unknown period of time, with either party permitted to terminate the lease by giving notice Tenancy at will is for an unknown period of time, with either party permitted to terminate the lease by giving notice. A real estate licensee in Florida could be found guilty of unauthorized practice of law for preparing this type of real estate contact. A. Broker representation Agreement 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 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 Must inform her why her application was rejected Must inform the state why the application was rejected -------------------------------------------- -----------Is not required to inform her why her application was rejected The review board has to approve whether the applicant is a "good fit" for the property. Decisions may seem arbitrary, and the board doesn't have to say why an applicant was denied. What role does the Brownfields Law play in the assessment and clean-up of unused commercial/industrial sites that may contain hazardous waste? It ensures safe operation of storage tanks. It oversees the assessment and clean-up. It provides funds. It provides manpower for clean-up. -------------------------------------------------------It provides funds. You've just purchased a rural property, and the attorney at the closing tells you, "You have a dominant estate." What does that mean to you? The property comes with an easement in gross granted to the utility company. You'll be using an easement across your neighbor Jim's property. Your property has an easement granted to your neighbor Jim, allowing him to cross your property to access his land. Your property has direct access to a road and doesn't require an easement. --------------- ----------------------------------------You'll be using an easement across your neighbor Jim's property. The dominant estate or dominant tenement is the property that benefits from the easement. When you use an easement across your neighbor's property, your property benefits and is the dominant estate. Rhonda hasn't paid her HOA dues in two years. Her attorney recently informed her that her state grants HOA-related liens a super lien status. What does this mean? The HOA can collect twice the amount of the money that she owes. The HOA lien takes priority over all other liens. The HOA must involve an administrative law judge in order to collect. The lien can be attached to both her real and personal property. ------------------------------- ------------------------The HOA lien takes priority over all other liens. Super lien status means that the lien is granted higher priority than all other liens, including mortgages, deeds of trust, or property taxes. Eloise is interested in buying a bungalow on the outskirts of the city. Her agent is reviewing the property details and informs her that there are several easements on the property. In particular, the gas company has a right of way because the natural gas line for the neighborhood runs through the back of the lot. What type of easement would this be? Easement appurtenant Easement by necessity Easement by prescription Easement in gross -------------------------------------------------------Easement in gross An easement in gross is granted to a specific individual or company—in this case, the gas utility company. Elmer died and left a will. Before his estate can be distributed according to his wishes, it must go through ______. A lawyer Devise Escheat Probate -------------------------------------------------------Probate 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 A broker may work with more than one brokerage as long as the broker has permission from the sponsoring broker, and files for multiple licensure with the DBPR. What is the total dollar amount that a borrower can borrow with an FHA-insured loan? It depends on where the property is located There is no limit Up to 80% of the sales price Up to the purchase price of the property -------------------------------------------------------It depends on where the property is located The FHA sets a limit on the amount that can be borrowed based on the average housing cost in the area as well as the property type (one, two, three, or four units, owner occupied). Robin, the appraiser of the Birkenstocks' property, wants to make sure her computations of adjustments on their home are valid. She's using the sales comparison approach, so she'll prioritize the ______ first. A. Location B. Market conditions C. Conditions of sale D. Physical characteristics -------------------------------------------------------B. Market conditions Well done! The elements considered in the sales comparison approach are applied in a specific order: financing terms and cash equivalency, conditions of sale, market conditions at the time of contract and closing, location, and physical characteristics. When the Browns first purchased their home, the area was primarily agricultural. But over the years, as more homes were built, the area has undergone some major changes. What was once a quiet neighborhood is now on the corner of a major busy intersection with lots of traffic, noise, and light pollution throughout the night. What type of depreciation has the Browns' home undergone? A. Physical depreciation B. Functional obsolescence C. Incurable depreciation D. External depreciation -------------------------------------------------------D. External depreciation You got it! External depreciation (or economic obsolescence) is a loss in value caused by an undesirable or hazardous influence offsite. Which of these situations represents reproduction cost in the cost approach to value? A. Jenning's historic property was mostly destroyed by fire. He rebuilds it with similar materials, square footage, and design. B. Kristina's antebellum mansion in New Orleans was severely damaged by a hurricane. She spends several years repurposing materials from other similar homes to rebuild it exactly as it was before the hurricane. C. Martin sold his beloved family home, then built one just like it, only with newer materials that were more environmentally friendly, in a warmer, drier part of the country. D. Ginger's parents built a new home when Ginger was just leaving for college. When she graduated, Ginger went back to her home town and hired a builder to build a similar but smaller house for her and her new husband. ---------------------------------------------------- ---B. Kristina's antebellum mansion in New Orleans was severely damaged by a hurricane. She spends several years repurposing materials from other similar homes to rebuild it exactly as it was before the hurricane. By when must a broker deposit escrow funds if the sales associate receives them on a Tuesday? 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 $105,263.16 $105,363.16 $105,463.16 -------------------------------------------------------$105,263.16 The seller's percentage of a sale is 100% - 5% commission = 95% (or .95). Take the amount the seller wants to net and divide it by that amount ($100,000 ÷ .95 = $105,263.16). Conversely, for a sales price of $105,263.16: $105,263.16 × .95 = $100,000. Richard is interested in purchasing some rural land and included outbuildings. When reviewing the legal description, he sees the name of a principal meridian. What type of legal description is this? Lot and block Metes and bounds Monument and benchmark Rectangular government survey -------------------------------------------------------Rectangular government survey Which of these statements is true about Florida's homestead deduction? It applies to vacation homes. It exempts a mortgage from debt. It protects a homeowner's equity in the property. It secures an estate for the surviving spouse and children. --------------------------------------- ----------------It protects a homeowner's equity in the property. Conrad just closed on the house he's buying to fix up. Why should he follow up to be sure the deed has been recorded? He can't legally make any improvements to the property until the deed is recorded. He doesn't legally own the house until that occurs. Recording provides actual notice that he owns the property. 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 Deductible on personal income tax returns Not deductible on personal income tax returns Paid by the board -------------------------------------------------------Deductible on personal income tax returns Who or what entity determines the final results of the comprehensive plan? The commission and local legislative body, with input from the public The governor The planning commission The public -------------------------------------------------------The commission and local legislative body, with input from the public What would an investor get after subtracting the adjusted basis from an investment property's sales price? Appreciation of depreciation Capital gain or capital loss Depreciation Operating expenses -------------------------------------------------------Capital gain or capital loss 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 -------------------------------------------------------Net What is an action landlords and property managers can take to avoid commingling funds? Ask another real estate professional to hold onto the funds. Deposit all funds received into a business account. Deposit all funds received into their own, separate accounts. Hold the funds in a safety deposit box. -------------------------------------------------------Deposit all funds received into their own, separate accounts. Mardee represented condo owner Carol, and they signed an exclusive agency listing agreement. If Carol found her own buyer, would she owe Mardee a commission? No, because Carol is not a real estate licensee. 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 Yes, because it's the buyer's consideration. ------------------------------------------------------- No, because the buyer's consideration is the promise to buy. 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 Fraud Harassment Misrepresentation Panic selling -------------------------------------------------------Harassment Alison is providing limited representation to Jeremy, a buyer, and Susie, a seller in a single residential transaction. What role has she taken on? Dual agency General agency 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. Exclusive right-to-sell Net listing Open listing -------------------------------------------------------Exclusive right-to-represent YOU NEED TO UNDERSTAND BUYER REPRESENTATION AGREEMENTS Callie has sublet an apartment in Florida for the past four months this year and plans to continue to reside in Florida and apply for a Florida real estate license. Which of the following applies? Callie is a non-resident and can apply for a Florida real estate license. Callie is a non-resident and cannot apply for a Florida real estate license until she has lived in Florida for a year. Callie is a non-resident but can apply for a Florida real estate license only if she has a real estate license from another state. Callie is a resident of Florida and can apply for a Florida real estate license. --------------- ----------------------------------------Callie is a resident of Florida and can apply for a Florida real estate license. A mortgage is a legally binding document that creates a lien on a piece of property and gives the lender the right to foreclose on the property if the borrower defaults. Who or what entity is considered the mortgagee? Borrower Lender 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 What must developers submit to the local planning board A. Permit B. Subdivision plat map C. Letter of intent D. Inspection results ------------------------------------------------------- Joe wants to develop a house in an already developed division, he has to match certain architectural designs, most likely there is a A. Deed B. Restrictive covenant C. Lien Dedication -------------------------------------------------------Restrictive covenant Buyer Rick wants to sell alcoholic beverages from a house he recently purchased, the previous owner put a _________ which restricts him from doing so A. Deed restriction B. Restrictive covenant C. Plat map D. Assignment -------------------------------------------------------A. Deed restriction How many hours are required for the Florida post licensing course? -------------------------- -----------------------------45 hours Toby has a 4 year degree from a real estate university, which course is NOT exempt from taking? A. Sales associate pre license course B. Broker pre license course C. Post license course D. Continuing education course -------------------------------------------------------D. Continuing education course YOU DO NOT NEED A REAL ESTATE LICENSE TO SELL ------------------------------------- ------------------Cemetery lots When must a no brokerage relationship be signed? ------------------------------------------------ -------A. Entering a contract B. After the showing of a property C. At the time of sale D. Before showing a property Designated sales associates can be assigned in a non residential transaction if A. FREC appoints them B. The broker signs off on it C. The buyer and seller each have assets of more than 1 million dollars D. A no broker relationship is signed -------------------------------------------------------C. The buyer and seller each have assets of more than 1 million dollars Which is a broker NOT required to have visible on their office sign? A. Trade name B. Licensed real estate broker C. Address D. Broker name -------------------------------------------------------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 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 B.Mutual recognition applicants are required to take an examination on Florida real estate laws C. Mutual recognition applicants maybe Florida residents or non-residents D.Mutual agreements allow Florida real estate licenses to have an equal opportunity for licensure in jurisdictions with which agreements are concluded --------------------------------- ----------------------C Mutual recognition applicants may be Florida residents or non- residents Which of the criteria listed below is not required to hold a Florida real estate? A. Proof of US citenzship B. 18 years of age or older C. High school diploma or GED D. US social security number -------------------------------------------------------Proof of US citenzship A man who died without leaving a will owned 2 farms and a home. The court appointed a personal representative to dispose of the decendents estate. The representative? A. Must have the clerk of the circuit court auction property B. Must register with the DBPR if he expects to be paid C. Is exempt from a real estate license D. Must dispose of all real property through a real estate broker -------------------------------- -----------------------C. Is exempt from having a license quasi-legislative powers -------------------------------------------------------Power to adopt rules to implement chapter 475 and chapter 455 Executive Branch -------------------------------------------------------Authority to regulate and enforce real estate license law quasi-judicial -------------------------------------------------------Power to discipline licensees (reprimand, fine, probation, suspend, revoke license) The licensee status that results when a license is not renewed at the end of the license period is referred to as A. Canceled B. Delinquent C.involuntary inactive D. Voluntary inactive -------------------------------------------------------Involuntary inactive A broker wishes to be issued several broker licenses for business reasons. She may A. Only be issued one broker license B. Be issued one broker license only, but have several broker associate licenses C. Be issued a group license D. Request multiple licenses -------------------------------------------------------D. Request multiple licenses in a tenancy in common, the owners have the right to pass their interests to ________ -- -----------------------------------------------------Heirs, it does not have right of survivorship, furthermore there does not have to be equal ownership Joint Tenancy -------------------------------------------------------A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition. DOES NOT AUTOMATICALLY GO TO HEIRS Lien Theory State -------------------------------------------------------a state where the mortgage lender has a lien on the property and the borrower has title Title Theory State ------------------------------------------------------- Which of the following classes are protected under the Americans with Disabilities Act? A. Intellectually disabled individuals (formerly mental retardation). B. people confined to wheelchairs C. HIV positive individuals D. all of the above ------CORRECT ANSWER----------------D. all of the above The license law is administered by: A. The Commission of Florida Real Estate B. Department of Real Estate C. Florida Real Estate Commission D. Department of State of Florida ------CORRECT ANSWER----------------C. Florida Real Estate Commission The Florida licensing law governing the activities of real estate practitioners is: A. Title VII B. Statue 110 C. The Administrative Code D. Chapter 475 ------CORRECT ANSWER----------------D. Chapter 475 A summary suspension may be issued : A. To summarize the circumstances that led to FREC's decision to suspend the subject's license. B. In lieu of an further action to be taken against the licensee. C. It is easily determinable that the licensee is guilty of the allegations thus halting the complaint process. The DRE will NOT investigate a complaint if: A. The original complaint withdraws the complaint B. It is an anonymous complaint C. If it is not put in writing and signed D. It has reason to believe the allegation is true ------CORRECT ANSWER---------------- C. If it is not put in writing and signed An agency disclosure form is NOT required for which agency relationship? A. Single agent B. No representation broker C. Transaction broker D. None of the above ------CORRECT ANSWER----------------D. None of the above Jim, a salesperson, runs an ad for his friend, Kate, advertising Kate's house for rent as Kate has moved to New Jersey. When the lease is executed, Kate mails Jim a check for $500 for handling the rental. This would be allowable if: A. Jim has a written agreement to lease and he submits the check to his broker. B. Kate does not report this on her income tax C. Kate and Jim keep it between themselves D. Jim hold an inactive Florida real estate license ------CORRECT ANSWER---------------- A. Jim has a written agreement to lease and he submits the check to his broker. The first major civil rights legislation dealing with housing was passed in: A. 1826 B. 1866 C. 1975 D. 1875 ------CORRECT ANSWER----------------B. 1866 The salesperson pre-license course consists of how many hours of instruction? A. 63 B. 72 C. 45 D. 14 ------CORRECT ANSWER----------------A. 63 Which of the following acts would be prohibited under the federal fair housing laws? A. A Catholic organization renting out rooms in a guest house near one of its hospitals. B. A Brazilian advertising his house for rent "to Brazilians only". C. The American Legion operating a home for veterans as well as the general public. D. A Greek Orthodox Church giving preferential treatment to parishioners in the rental of its housing. ------CORRECT ANSWER----------------B. A Brazilian advertising his house for rent "to Brazilians only". Which of these is TRUE regarding FREC? A. It consists of 7 members, appointed by a Senator B. 5 of 7 must be brokers, active for the last 4 years C. 2 members must have never been a licensee D. At least 1 member must be 50 years or older ------CORRECT ANSWER---------------- C. 2 members must have never been a licensee Upon termination of the lease, and if the landlord does not intend to impose a claim on the security deposit, the landlord has how long to return the security deposit to the tenant? A. 15 days B. 30 days C. 60 days D. 45 days ------CORRECT ANSWER----------------A. 15 days An involuntary inactive license expires and becomes void if no further action is taken within: A. Two years B. One year C. Five years D. Four years ------CORRECT ANSWER----------------A. Two years In real estate transaction, the listing broker has an agency relationship with: A. The buyer B. The seller C. None of the parties in the transaction D. All parties in the transaction ------CORRECT ANSWER----------------B. The seller The DBPR performs all of the following functions EXCEPT: A. adopt rules establishing a procedure for biennial renewal of licenses. B. appoint the executive director of the Florida Real Estate Commission. C. disallow the Florida Real Estate Commission from issuing subpoenas. D. approve applications for professional licenses that meet all statutory and rule requirements for licensure. ------CORRECT ANSWER----------------C. disallow the Florida Real Estate Commission from issuing subpoenas. Which of the following is NOT a physical characteristic of land? A. Immobility B. Uniqueness C. Beauty D. Indestructibility ------CORRECT ANSWER----------------C. Beauty In order for a claimant to make a successful claim against the Real Estate Recovery Fund, the claimant must do all of these EXCEPT: A. File a writ of execution B. Obtain a judgement C. Successfully sue the brokerage firm in court D. Successfully sue the licensee in a civil suit ------CORRECT ANSWER----------------C. Successfully sue the brokerage firm in court Members of the Commission are: A. Appointed by the DBPR Secretary and approved by the Senate. B. Appointed by the governor subject to confirmation by the senate. C. Appointed by the governor and approved by the Secretary of State. D. Appointed by the DBPR Secretary and approved by the governor. ------CORRECT ANSWER----------------B. Appointed by the governor subject to confirmation by the senate. Advertisements that are deemed false, deceptive, or misleading could cause the broker to be punished by of any of these EXCEPT: A. An administrative fine up to $10,000 B. An administrative fine up to $5,000 C. Disciplinary action even if the ad were placed by an associate D. Suspension of license ------CORRECT ANSWER----------------A. An administrative fine up to $10,000 d. File a police report ------CORRECT ANSWER----------------c. Tell the seller or cooperating broker that the check bounced. Explanation: Although the broker's client may be able to replace the funds quickly, the broker should inform the cooperating broker/seller immediately. An unfunded bank check is material fact (and possibly fraud). Licensees should avoid the appearance of impropriety, protect the public and disclose material facts concerning a transaction. Which option best describes an exclusive-right-to sell listing? a. The listing agent will be paid a commission only if he/she procures the buyer. b. The agent who procures the buyer will be compensated. c. The listing agent only receives commission if the property sells for a certain amount. d. The listing agent will be paid the commission no matter who procures the buyer. ------ CORRECT ANSWER----------------d. The listing agent will be paid the commission no matter who procures the buyer. Explanation: When a principal signs an exclusive-right-sell listing with a broker, the principal will pay the broker a commission even if the principal or another agent procures the buyer. Sandy, a 16-year old, enters into a contract to buy a condo from Sue, an adult. Which statement is TRUE? a. Sandy can void any portion of the contract any time before the transaction is closed. b. Sandy or Sue can void the entire contract any time before the transaction is closed. c. Sandy can void the entire contract any time before the transaction is closed. d. The contract is considered void because Sandy is not permitted to enter into a real estate contract. ------CORRECT ANSWER----------------c. Sandy can void the entire contract any time before the transaction is closed. Explanation: It is true that Sandy, a 16-year old minor, can void the entire contract any time before the transaction is closed. Minors are permitted to enter into a contract; however, the law provides certain protections to minors that are not granted to adults. A listing agreement between a principal and broker is a(n) a. implied contract. b. breach of contract. c. express contract. d. discharge of contract. ------CORRECT ANSWER----------------c. express contract. Explanation: A listing agreement is an express contract between the principal and broker that names the broker as fiduciary representative (agent) of the principal. Which statement regarding a Veterans Affairs (VA) mortgage is FALSE? a. It does not have minimum property requirements b. It does not require mortgage insurance c. It does not require a down payment d. It does not have a maximum debt ratio ------CORRECT ANSWER----------------a. It does not have minimum property requirements Explanation: A VA mortgage does have minimum property requirements in order to ensure the veteran-buyer the property is safe, sanitary and sound. A Department of Veterans Affairs (VA) mortgage is a. Always a recourse loan. b. Guaranteed. c. Conventional. d. Pre-paid. ------CORRECT ANSWER----------------b. Guaranteed. Explanation: The VA guarantees mortgage loans for eligible veterans. Garrett sold his primary residence for $595,000, which was a capital gain of $315,000. How much may Garrett exclude on his income tax as a single individual? a. $315,000 b. $100,000 c. $476,000 d. $250,000 ------CORRECT ANSWER----------------d. $250,000 Explanation: Garrett may exclude $250,000 of the capital gain on the sale of his primary residence on his income tax. The most a single individual may exclude on the capital gain of a sale of a primary residence is $250,000. A parcel of land is 140 feet by 75 feet and the seller is asking $130 per square foot. What is the asking price? a. $1,050,000 b. $1,365,000 c. $1,470,000 d. $1,650,000 ------CORRECT ANSWER----------------b. $1,365,000 Explanation: To calculate the asking price, multiply the lot dimensions to derive the total square footage: 140 feet × 75 feet = 10,500. Finally, multiply the total square footage by the price per square foot: 10,500 × $130 = $1,365,000 asking price. For this question, disregard selling costs, taxes, etc. and choose the closest answer. A parcel of land is sold for $163,000. If it appreciates at 14% compounded per year and the seller keeps it for seven years, how much will the seller pay for it? a. $72,000 b. $70,500 c. $65,000 d. $55,000 ------CORRECT ANSWER----------------c. $65,000 Explanation: To solve use the formula: V = P(1+r/n)^nt · V = future value of the investment ($163,000) · P = principal investment amount · r = annual interest rate (14%) · n = number of times that interest is compounded per year (1) · t = number of years the money is invested for (7) o $163,000 = P(1+0.14/1)^1*7 o $163,000 = P(1.14)^7 o $163,000 = P(2.5022) o $163,000/2.5022 = P o P = 65,142 o P = 65,000 c. signed. d. notarized. ------CORRECT ANSWER----------------a. delivered and accepted. Explanation: Actual delivery of the deed by the grantor and acceptance by the grantee must take place before a transfer of title by deed can take place. Malcolm just received his salesperson's license and has joined a firm. He will MOST likely be hired for tax purposes as a(n) a. associate broker. b. salaried employee. c. independent contractor. d. realtor ------CORRECT ANSWER----------------c. independent contractor. Explanation: A survey by the National Association of REALTORS® found that nine out of ten real estate firms treated their sales associates as independent contractors, which allows them to avoid the bookkeeping of withholding taxes, Social Security payments, unemployment insurance, etc. Real estate license laws are designed to a. raise tax and operating revenue for state and local governments. b. limit the number of brokers and salespersons on the market. c. match the federal government's requirements. d. protect the public and maintain high standards. ------CORRECT ANSWER--------------- -d. protect the public and maintain high standards. Explanation: Real estate license laws were instituted to protect the public from incompetent or dishonest brokers and salespersons and to maintain high standards in the real estate industry. When a broker is retained by the buyer, the broker owes the prospective seller a. obedience to lawful instructions. b. confidentiality about the seller's financial situation. c. honest, straightforward treatment. d. undivided loyalty. ------CORRECT ANSWER----------------c. honest, straightforward treatment. Explanation: When retained by the buyer, the broker owes a prospective seller honest, straightforward treatment. A seller's broker must disclose to a prospective buyer that the a. heating system doesn't work. b. last owner was murdered there. c. seller has AIDS. d. house is haunted. ------CORRECT ANSWER----------------a. heating system doesn't work. Explanation: The seller's broker must disclose latent defects but is not responsible for disclosing facts that might stigmatize the property or that the person who lives in the home has AIDS. NEW CARDS 56 - 76 Charles wanted to offer to purchase Tony's home and engaged Mary to be his agent. When the offer was delivered to Tony, it had a provision limiting the time for acceptance to 48 hours. Tony rejected the offer. After thinking about it for 36 hours, Tony ca a. It is still open because Tony changed his mind under 48 hours b. It is still open because Charles has not formally withdrawn the offer c. It was terminated when Tony first rejected the offer d. It is a binding contract, now that Tony has accepted the offer ------CORRECT ANSWER----------------c. It was terminated when Tony first rejected the offer Explanation: A rejected offer does not have to be formally withdrawn or revoked, and automatically terminates an offer. An offer may also be terminated by an expiration date, communication or notice of revocation before acceptance, accepted counteroffer, or death or insanity of either the offeror or the offeree before acceptance. Mark, a licensed broker, conveys an offer from his client to Janet, a licensed agent, wherein Mark's client wishes to purchase a 200-acre farm from Janet's client for $500,000, two 5-year-old tractors and 200 sheep. What would the consideration offered by a. Valuable b. Inadequate c. Good and valuable d. Good ------CORRECT ANSWER----------------a. Valuable Explanation: Contracts must be bound by consideration, offered by one party to induce another to enter a contract. Valuable consideration is anything of value which includes money, goods, personal services, exchange of property or the promise to deliver something of value. Valuable consideration may also consist of love and affection and is sufficient to support a gifted deed. The amount of commission a broker shares with his/her agent is a. negotiated between the broker and agent. b. dictated by the National Asssociation of Realtors. c. split 50/50 between the broker and agent. d. dictated by federal law. ------CORRECT ANSWER---------------- The listing agreement whereby a principal lists property for sale with a number of brokers is known as a(n) a. Exclusive agency b. Open listing c. Exclusive-right-to-sell