Download FLORIDA REAL ESTATE LAWS EXAM STUDY GUIDE 2025/2026 – FREC LICENSE PREP, Exams of Real Est and more Exams Real Estate Management in PDF only on Docsity!
FLORIDA REAL ESTATE LAWS EXAM STUDY
GUIDE 2025/2026 – FREC LICENSE PREP,
Exams of Real Estate Management Graded
A+| Pass
If the Federal Reserve votes to lower the discount rate, how will this likely affect interest rates on short-term credit? - ANSWER - [Section 13 Slide 36] They will likely decrease A subject property has four bedrooms. A comparable property sold for $275,000 with only 3 bedrooms. The appraiser attributes a $5,000 to the 4th bedroom. How is the adjustment made? - ANSWER -[Section 16 Slide 82] Plus $5,000 to the comparable What are the similarities between a Business Brokerage and a Real Estate Brokerage?
- Both deal with Real Property
- Both require a Real Estate License
- Both involve Long-term Liabilities
- All of the Above - ANSWER -All of the Above Question Feedback [Section 17 Slide 91] An agreement in which only one party promises to perform without receiving a reciprocal promise to perform from the other party is called a - ANSWER -Unilateral Contract
Question Feedback [Section 11 Slide 49] An open listing:
- Allows the owner to sell the property himself and to list it with any number of brokers. The first broker to secure a buyer gets a commission.
- The seller reserves the right to sell the property without paying the broker if the seller produces the buyer.
- Gives the broker the protection of the commission no matter who brings a buyer.
- Is a data exchange service where real estate licensees advertise their properties for sale. - ANSWER -Correct ANSWER The correct ANSWER is # Allows the owner to sell the property himself and to list it with any number of brokers. The first broker to secure a buyer gets a commission. Question Feedback [Section 11 Slide 90] A broker associate listed a villa home for $320,000 as a single agent. A sales associate from a competing firm called the listing
Buffer Zone is an area of land that: - ANSWER -Separates different land use areas Question Feedback [Section 19 Slide 80] What section is directly below section 7 in a township? - ANSWER - Question Feedback [Section 10 Slide 54] The Truth in Lending Act does not:
- Make Bait and switch advertising regarding down payment and interest rates a federal offense.
- Inform borrowers of the true cost of obtaining a loan.
- Require that when a triggering term is used, other information has to be included in an ad.
- Dictate to lenders how much interest rate to charge to a borrower. - ANSWER -Dictate to lenders how much interest rate to charge to a borrower. Question Feedback [Section 13, Slide 203 & 205]
A developer purchases 2 lots with 120 ft. frontage each and paid $120,000 total for both lots. He divides these lots into 4 lots of 60 front feet each and sells them for $600 per front foot. What is the developer's percentage of profit? - ANSWER -[Section 14, Slide 32] 2 x 120 ft = 240 ; 240 feet of frontage x $600 = $144,000 Sale ; $144,000 - $120,000 = $24,000 Profit; $24,000 Divide by $120,000 = 0.2 or 20% Which township is located 2 tiers south and 3 ranges west of T1N R1W? - ANSWER -T1S R4W Question Feedback [Section 10 Slide 50] How many miles to one side of a township? - ANSWER -The correct ANSWER is # 6 Question Feedback [Section 10 Slide 40] The note contains which of the following?
- Payment schedule, loan amount, interest rate
- The property deed, utility information, setbacks
- When the tenant pays a fixed rent and the landlord pays the taxes, insurance and utilities.
- When the tenant pays rent based on gross sales.
- When the tenant pays a rent that can change in increments over time. - ANSWER -When the tenant pays a fixed rent and the landlord pays the taxes, insurance and utilities. Question Feedback [Section 9 Slide 133] Geraldo contracted with Sue for Sue to buy his property. When Geraldo backed out of the contract refusing to sell it to her for no valid reason, Sue took Geraldo to court. The judge ruled in Sue's favor. Sue's contract was
- Enforceable
- Unenforceable
- Void
- Voidable - ANSWER -Enforceable Question Feedback [Section 11 Slide 22] When Bill rented his property he collected a deposit of $2,000 and an advanced rent payment of $1,000. Which of the following options is Bill not allowed to do with the money?
- Take out a surety bond with the clerk of the circuit court.
- Place the money in an interest bearing account and keep the interest for himself
- Place the money in an interest bearing Florida bank and give the tenant 75% of the interest earned.
- Place the money in a separate non-interest bearing Florida bank. - ANSWER -The correct ANSWER is # Place the money in an interest bearing account and keep the interest for himself Question Feedback [Section 7 Slide 114] Which of the following documents may a real estate licensee complete?
- Deed
- Mortgage
- Promissory note
- Buyer broker agreement - ANSWER -Buyer broker agreement Question Feedback [Section 11 Slide 42 Clark paid $250 for a rental list in a competitive area. After several days of looking for properties he realized that the list wasn't current at the time it was sold to him. He requested a refund in writing. How much would he get back? - ANSWER - $250.
Jessi, an unlicensed real estate assistant, may not do which of the following activities
- Assemble documents for closing
- Order items of repair as directed by licensee
- Place routine calls regarding late rental payments
- Show listed property - ANSWER -The correct ANSWER is # Show listed property Question Feedback [Section 5 Slide 173] While on a fishing trip in Montana, a Florida real estate sales associate pleads guilty to a misdemeanor. Is the Florida licensee required to notify the Florida DBPR? - ANSWER -Yes, the sales associate must report the guilty plea to the DBPR within 30 days Question Feedback [Section 2, Slide 65 ] An appraiser found three comparable properties however she believed that one of the properties was significantly more relevant to the true value of the subject property. In this case, the appraiser would most likely
- Assign weighted values to each of the three properties
- Add and subtract for differences and take the average
- Use the estimated reproduction cost because there aren't enough comps
- Ignore the difference as a biased opinion - ANSWER -The correct ANSWER is # Assign weighted values to each of the three properties Question Feedback [Section 16 Slide 85; An assumed mortgage has interest paid:
- In arrears
- A head
- At the end of the loan
- At the beginning of the loan - ANSWER -In arrears Question Feedback [Section 14, Slide 90 & 92] N 1/2 of NW 1/4 of SE 1/4 of section 8 contains how many acres? - ANSWER - Question Feedback [Section 10 Slide 67]
Denying loans, insurance coverage, or to refuse to rent or sell in an area based on the racial and ethnic makeup is illegal under the Fair Housing Act and is called - ANSWER -Redlining Question Feedback [Section 7 Slide 45] Receding water uncovers additional land. This is called: - ANSWER -Reliction Question Feedback [Section 8 Slide 38] Which Florida Statute requires sellers of property subject to a mandatory homeowners association to provide buyers with a disclosure summary? - ANSWER -Statute 720 Question Feedback [Section 11 Slide 120] What statement is FALSE regarding the Equal Credit Opportunity Act?
- It is enforced by the Consumer Financial Protection Bureau.
- The intent is to make credit available with fairness and without discrimination.
- A person can be denied for a loan if they are too close to retirement age.
- A lender cannot require that a spouse join in the loan if the one spouse meets loan parameters. - ANSWER -A person can be denied for a loan if they are too close to retirement age. Question Feedback [Section 13 Slide 197-198] The formula to calculate adjusted basis is - ANSWER -The purchase price + costs to buy the property + capital improvements Question Feedback [Section 17 Slide 24] The following of which groups are an example of Specific Liens
- Judgment Lien and a Property Tax Lien
- Income Tax lien and a Mortgage Lien
- Estate Tax Lien and a Vendor's Lien
- Construction Lien and a Mortgage Lien - ANSWER -Construction Lien and a Mortgage Lien Question Feedback [Section 9 Slide 157] The indestructability of land refers to
Question Feedback [Section 7 Slide 39] Which statement is TRUE regarding a title company holding the escrow funds?
- The broker must be a signatory on the title company's escrow account
- Within 5 business days after the deposit is due the broker must confirm that the deposit was made
- If the buyer and seller make demands for the escrowed funds, the broker must make a timely report of conflicting demands to the DBPR
- Within 10 business days after the date the broker requests written verification of receipt of the deposit, the broker must provide the seller's broker with a copy of the verification - ANSWER -Within 10 business days after the date the broker requests written verification of receipt of the deposit, the broker must provide the seller's broker with a copy of the verification Question Feedback [Section 5 Slide 68] When is a quitclaim deed normally used? - ANSWER -To clear the title of possible trouble spots or clouds on the deed. Question Feedback [Section 9 Slide 89]
Janice Raney wants to open a brokerage office operating as Crate Home Realty. She is preparing the sign to be placed by the front entrance. What information does the sign not need to state
- Her Name
- The words: Lic. Real Estate Brokerage
- The name of her brokerage Submitted ANSWER 4) The name of the sales associates working under her - ANSWER -The name of the sales associates working under her Question Feedback [Section 5 Slide 26-27] To substitute a borrower in a mortgage with another borrower is called: - ANSWER -Assignment of mortgage Question Feedback [Section 12 Slide 69] The premises section of a deed must contain all of the following except
- Names of the parties to the deed
- Address of the grantor and the grantee
Question Feedback [Section 4, Slide 65] Which scenario would not require that agency disclosure documents be maintained on record for five years
- The sale of a townhouse representing the buyer as a single agent
- The sale of a commercial property with designated sales agents from the same brokerage
- The sale of a single family home where the broker acted as a transaction agent from the outset of the relationship
- The sale of a single family home with a no agency disclosure - ANSWER -The sale of a single family home where the broker acted as a transaction agent from the outset of the relationship Question Feedback [Section 4, Slide 154 ] You are appraising a 5 year old home. If the livable square footage is 3,500 with a cost of $95 to replace according to a cost- estimating service and the 400 square foot garage can be replaced at $60 a sq foot, calculate the reproduction cost of the structure - ANSWER -$356, Question Feedback [Section 16 Slide 89] $95 x 3,500 = $332,500; $60 x 400 = $24,000; $332500 + 24000 = $
The brokers of Greater Gulf Realty and Brackish Bay Realty agreed to only work with clients near their own offices to allow each to be able to get more fees per home sold. This is illegal and an example of? - ANSWER -Market allocation Question Feedback [Section 5 Slide 145] A plea of nolo contendere is best described by which of the following situations
- Bob had his criminal record wiped clean
- Mary didn't admit or deny a charge of possession of marijuana. Instead she chose not to contest it.
- Tom served 6 months of probation for a misdemeanor
- Sarah was relieved when the judge decided to withhold judgement - ANSWER -Mary didn't admit or deny a charge of possession of marijuana. Instead she chose not to contest it. Question Feedback [Section 2, Slide 60] Subordination of a mortgage is: - ANSWER -A later mortgage taking priority to the original Question Feedback [Section 12 Slide 30]
