Florida Real Estate License Exam Prep 2024-2025. Questions and Correct Answers. Graded A+, Exams of Real Estate Management

Download Florida Real Estate License Exam Prep 2024-2025. Questions and Correct Answers. Graded A+ and more Exams Real Estate Management in PDF only on Docsity! Florida Real Estate License Exam Prep 2024- 2025. Questions and Correct, Verified Answers. Graded A+ A 12-year-old laundromat produces an annual income of $558,000. The sole proprietor recently died. The heirs do not want to continue to operate the laundromat. If management were hired to operate the laundromat, there is a high degree of risk that the property would yield a negative cash flow. In this case, which valuation method is BEST suited for this investment property? - ANSLiquidation Analysis A broker's license was involuntary inactive for two years and one month. To operate again as an active licensee, the broker must complete - ANSFREC Course I and pass the sales associate's licensing exam A buyer who obtains a mortgage loan that covers the purchase of a condominium plus furniture, appliances, and other personal property, such as towels and kitchen utensils, has a - ANSPackage Mortgage A contract agreed to and signed under duress is what? - ANSVoidable A contract that does not have all the necessary elements of a contract is: - ANSVoid A farmer sold a portion of his farm to a railroad company with the condition "as long as it remains a rail line." If the rail line is abandoned, the property reverts back to the farmer or the farmer's heirs. What type of estate is described in this scenario? - ANSDefeasible estate (specifically, a fee simple determinable) A fence that extends onto the land of another from a neighboring property is called an: - ANSEncroachment A fiduciary who holds or controls property for the benefit of another is called a - ANSTrustee A lease agreement where the tenant has the right to buy the property within a specified period of time is called what? - ANSLease Option A license issued by endorsement by the DBPR applies to which applicant? - ANSU.S. armed service member A listing agreement in writing creates which form of agency? - ANSExpress agency A man dies testate, leaving behind a wife and minor son. He bequeaths all of his property to his son, but the wife claims her elective share under the Uniform Probate Code. How will the man's property be distributed? - ANSPartially to son and partially to wife A man executed a will. However, the probate court declared it invalid due to not meeting the state law requirements. Who will receive title to the man's real estate? - ANSThe state-appointed administrator of the estate A person receiving a gift of real property through a will is referred to as a - ANSDevisee A quitclaim deed contains which covenant? - ANSGranting A seller transfers title to a buyer with a general warranty deed. In which clause of the deed does the seller define the quality of ownership interest conveyed to the buyer? - ANSHabendum A single agent relationship with the seller has been established in the listing agreement. Which brokerage relationship may be established with the buyer in the same brokerage firm for the purpose of showing the listing to the buyer? - ANSNo Brokerage Relationship A valid contract must contain valuable consideration which means: - ANSSomething clearly offered for something else in exchange A walk-in primary care facility may be granted which type of zoning exception to be allowed to build in an area that is 20 miles from a hospital? - ANSSpecial Exemption An easement in gross benefits: - ANSThe company that owns it How is a new purchase money mortgage entered on the Closing Disclosure? - ANSDebit Seller, Credit Buyer How is an easement by prescription acquired? - ANSContinued use of another person's real property for the statutory period (20 years) when such use is adverse to the owner's interest How is effective gross income defined in the income approach to property valuation? - ANSTotal rental income minus vacancies and collection losses How is real estate defined? - ANSLand including, water, air, and improvements How many members are in the FREC and what are their qualifications? - ANSThere are a total of 7 members: 5 professional (licensed) members (4 of these must be licensed Florida brokers with active licenses during the five years before appointment) and 1 must be either a Florida broker or sales associate with active license during the two years before before appointment) 2 remaining members must be consumer (unlicensed) members who have never been brokers or sales associates *At least one member must be 60 years or older How many tax years do homeowners have to transfer Save Our Home (SOH) benefits to a new Florida homesteaded property? - ANSThree tax years from the last qualified homestead exemption (Jan 1) How should an estate in land vested in a grantee "until she marries" be properly classified? - ANSFee Simple Determinable Ideally, the Florida Real Estate Recovery Fund should be at - ANS$500,000 If a leased premises becomes uninhabitable deliberately in an attempt to remove the tenant. What is this action called? - ANSConstructive eviction If an appraiser calculates the total land value and then adds the value of improvements, this method is referred to as what? - ANSCost Approach If someone is unlawfully forced to execute a contract it is called what? - ANSDuress If you charter a corporation and acquire an apartment building, then sell stock to specific individuals who are granted a proprietary lease enabling them to occupy different units, what type of ownership have you established? - ANSCooperative ownership In 1988, Congress amended the Fair Housing Act of 1968 to include two additional protected classes. Which two classes were added? - ANSDisability and familial status In addition to the four condominium documents, what disclosures must be provided to buyers of resale condo units? - ANSMost recent year-end financial report, rules of association, governance form In an effort to obtain more listings, a real estate licensee urges people in a neighborhood to sell their homes because the area is transitioning to a foreign-speaking population. The licensee warns homeowners that property values may fall, and they need to sell quickly. This is an example of which illegal activity? - ANSBlockbusting In order for a deed to be valid, it must be: - ANSSigned by the grantor, adequately describe the property, and be in writing In the administration of an estate, who typically elects the administrator? - ANSThe Court In which type of financing can negative amortization occur? - ANSAdjustable Rate Mortgage In which type of loan does the lender set the interest rate? - ANSFixed-rate mortgage Landry owns a duplex and personally occupies one of the units. He has one unit for rent and refuses to rent it to anyone with small children because kids are loud. If he refuses applicants with children has he committed a violation or any discriminatory acts? - ANSNo, he is exempt from Fair Housing Regulations because he owns a dwelling with 4 or less units and personally occupies one of the units Littoral property is situated on which type of location? - ANSCoastline (littoral is typically associated with oceans, lakes, sea) Making a false statement on a DBPR license application is which type of violation? - ANSThird-Degree Felony Marvin owns an easement to use the driveway of his neighbor Bob. Marvin's property is considered the: - ANSDominant Estate New deposits of land as a result of accretion; commonly occurring at the mouth of large rivers - ANSAlluvion Only showing homes in a certain part of town to people of a certain nationality is called: - ANSSteering Operating expenses deducted in a cash flow analysis do not include which expense? - ANSDepreciation T or F: Mutual recognition applicants must complete the process to become licensed before becoming a Florida resident. - ANSTrue Tenancy by the Entireties can only be created by a - ANSMarried Couple Tenancy in Severalty is best described as: - ANSOne property owner The adjustable-rate mortgage feature that limits the amount the interest rate may increase at any adjustment period, usually annually, is called a - ANSPeriodic Cap Control What are the condominium documents that must be given to buyers of residential units sold by the developer or to buyers of resale condo units? - ANSDeclaration, articles of incorporation, bylaws, FAQs What are the economic characteristics of land? - ANSDemand Utility Scarcity Transferability Situs What are the functions of Fannie Mae? - ANSPurchasing mortgage loans, securitizing mortgages, and providing mortgage insurance What are the post-license education requirements for Brokers? - ANSCompletion of 60 hour post licensing course before first license renewal What are the practical essentials required for a valid contract in real estate? - ANSOffer and acceptance, consideration, legal purpose What are the required components of a valid contract? - ANSCompetent parties, legal purpose, voluntary good faith, mutual consent, and valuable consideration What are the sales associate qualifications for license? - ANSMust be 18 years of age or older; Earned a high school diploma or equivalent; Possess and U.S. social security number; Be honest, truthful, trustworthy of good character, reputation for fair dealing; Be competent and qualified to make real estate transactions What are the two applicant agendas? Which is a nonappearance agenda and which is an appearance agenda? - ANSConsent agenda (nonappearance) and Summary of Applicant (SOA, applicant appearance agenda) What are the types of real estate services? - ANSA BAR SALE Advertise real estate services Buy Appraise (non federally related transactions) Rent or provide rental information or lists Sell Auction Lease Exchange What are the types of statutory deeds? - ANSQuitclaim deed, bargain and sale deed, special warranty deed, and general warranty deed What are ways to voluntarily transfer title to a property? - ANSWill, grant, deed What authority originates from the U.S. Constitution and relates to protection of health and welfare of citizens at local levels? - ANSPolice Power What best describes the type of agency typical in property management - in which an agent has limited power? - ANSGeneral agency What broker applicants are exempt from Course II? - ANSBroker applicants with a four year degree or higher in real estate from an accredited institution of higher education What business entities may not register as brokerage entities? - ANSCorporations Sole, Joint Ventures, Business Trusts, Cooperative Associations, Unincorporated Associations What business entities may register as brokerage entities? - ANSCorporations, General Partnerships, Limited Partnerships, Limited Liability Companies, Limited Liability Partnerships, Sole proprietorships What category do temporary or easily moveable things or objects typically fall under in real estate? - ANSChattels (personal property items) What continuing education courses are required as part of the 14 hour continuing education requirement? - ANSBusiness Ethics (3 hours) and Core Law (3 hours) What contracts may real estate licensees assist buyers/sellers with completing? - ANSListing agreements, buyer brokerage agreements, sale and purchase contracts, option contracts What documents provide evidence of title? - ANSTitle insurance policy, warranty deed, chain of title What does a mortgage represent? - ANSThe buyer's promise to repay the loan (property is pledged as collateral) What does the covenant of seizin entail? - ANSGuarantee of clear title (ensures the grantor of a property has the legal right to transfer ownership and guarantees title is clear of defects or claims) What education and exam requirements must be completed for applicants under a mutual recognition agreement? - ANSApplicants must pass a 40 question, Florida specific real estate law exam with a grade of 75% or higher and complete the post-licensing requirement What happens if the licensee fails to complete the post-license requirement prior to the expiration date? - ANSThe license becomes null and void What information is indicated on a real estate license? - ANSLicensee's name, issue date, and expiration date What is a devise in the context of real estate? - ANSThe act of leaving property to someone in a will What specific formula would be used to estimate the value of a property using the income approach? - ANSNet Operating Income / Capitalization Rate = Market Value What type of covenants are typically included in general warranty deeds? - ANSCovenant of seisin, quiet enjoyment, and further assurance What type of lease arrangement requires the tenant to pay a fixed rent amount plus property expenses, such as property taxes and hazard insurance? - ANSNet Lease What type of tenancy is associated with the four unities of possession, interest, time, and title? - ANSJoint Tenancy When a deed does not specify the estate being conveyed it is presumed to transfer - ANSFee Simple Absolute When a purchaser signs a purchase agreement and gives the seller's broker a large check, the transaction is considered an - ANSOffer When an easement allows the use of a neighboring property which automatically transfers upon the sale of either dominant or servient property, it is called what type of easement? - ANSEasement Appurtenant When an easement is on a title it is an example of an: - ANSEncumbrance When do property taxes for the previous year become delinquent? - ANSApril 1 When someone passes away with a valid will in place it is referred to as: - ANSTestate When the parties to a contract state the terms of the contract and show their intentions in words, either orally or in writing, what type of contract classification has been created? - ANSExpress Which approach to value may be BEST suited to appraising a newly built residential structure in an established neighborhood of attractive 12-to-18-year-old homes - ANSCost Approach Which estate requires the presence of all four unities? - ANSTenancy by the entirety (four unities = possession, interest, time, and title) Which expense is subtracted to derive NOI? - ANSVacancy and collection losses Which Florida statute governs the DBPR and the professions under the Department? - ANSChapter 455 Which formula is used to determine value through the income approach in real estate? - ANSValue = Gross Rent Multiplier x Monthly Rent Which of the following real estate contract clauses is typically seen in blanket mortgages and allows for the freeing of all or part of a property from a claim through a proportional or full amount of the mortgage being paid off? - ANSThe release clause Which operating expense is considered to be a fixed expense? - ANSHazard insurance Which primary mortgage lender makes loans to members only? - ANSCredit Union Which professional license is required to market and lease commercial real estate that involves long- term leases? - ANSReal estate license Which two documents are necessary to establish a legally binding mortgage loan? - ANSPromissory note and deed of trust Which type of property would an appraisal use a depth table to estimate the property value? - ANSCommercial Property Which type of risk is composed of market risk and risk of default? - ANSSafety Risk Who appoints members of the FREC and how long do they serve? - ANSGovernor appoints FREC members (subject to Senate confirmation), they serve 4 year staggered terms and may not serve more than 2 consecutive terms. There is no maximum number of years they can serve on FREC. Who are the main participants in real estate markets? - ANSUsers, owners, renters, developers, renovators, and facilitators Who authorizes an easement by necessity? - ANSThe court, when property is landlocked Who do Mutual Recognition Agreements apply to? - ANSNonresidents licensed in other jurisdictions that have a written agreement with the FREC Who is considered a riparian owner? - ANSSomeone who own lands adjacent to a river or stream Who is exempt from the post-license education requirement? - ANSIndividuals with a four-year degree or higher in real estate from an accredited institution of higher education Who is exempt from the pre-license course requirement? - ANSIndividuals with a four year degree or higher in real estate from an accredited institution of higher education (but they must pass the license exam) and attorneys who are active members of The Florida Bar (but they must pass the license exam) Who typically selects the executor of an estate? - ANSThe deceased person in their will Within how many days MUST a licensee inform the Commission, in writing, of being convicted or found guilty of a crime? - ANS30 Days Within what time period MUST landlords of five or more units notify the tenant in writing of which method is used to hold the tenant's deposit? - ANS30 Days