Real Estate Exam Preparation, Exams of Real Estate Management

Download Real Estate Exam Preparation and more Exams Real Estate Management in PDF only on Docsity! Florida Real Estate 45 Hour Post License Practice 2024- 2025. Questions & Correct Answers. Graded A+ A condo management company can put a lien against property and force foreclosure when an owner does/does not do what? - ANS1) Doesn't pay their property taxes on time 2) [CORRECT ANSWER] Doesn't pay the condo fees 3) Breaks the lease policy by not getting tenants approved before renting. 4) Breaks the pet policy after 3 written warnings. A developer has recorded a declaration in the public records of the county where the condominium is located for a 36-unit building. Upon the creation of a condominium development, the developer must file which of the listed documents? - ANS1) "Declaration of Condominium" 2) "Bylaws of the Association." 3) "Prospectus" 4) [CORRECT ANSWER] All three listed documents. A good farm area includes all of the following except which of the following? - ANS1) 125-175 homes 2) Popular selling price range 3) 7% or higher turnover 4) [CORRECT ANSWER] Is already dominated by another real estate agent. A home is expected to sell for $640,000. The brokerage is charging 6% commission. The expected other sales cost total $11,000. How much is the estimated Net Proceeds? - ANS1) $686,900.00 2) $601,600.00 3) [CORRECT ANSWER] $590,600.00 4) $593,100.00 Math: $640,000×.06=$38,400;$640,000-$11,000-$38,400=$590,600 A loan officer has done a brief interview with a buyer without verifying documentation such as income. What is this called? - ANS1) Preapproving the buyer. 2) [CORRECT ANSWER] Prequalifying the buyer. 3) Final approval for the buyer. 4) Clear to close. Adequately tending to the duties and obligations of a fiduciary relationship can best be demonstrated by? - ANS1) A real estate licensee doing his or her best to find a buyer for a property. 2) A store manager working to maximize profits for the store owner. 3) A lawyer writing a legally correct contract for a client. 4) [CORRECT ANSWER] All of the above. Agent Barnaby had an established transaction brokerage relationship with her seller. When a buyer wanted to look at the house with Barnaby, which of the following is correct? - ANS1) Having the buyer sign a Transition to Transaction Broker Form because Barnaby had already been working with the buyer as a Single Agent. 2) Having Barnaby turn down working with the buyer all together because it is always illegal to represent both the buyer and seller 3) [CORRECT ANSWER] Working with the buyer as a transaction brokerage. 4) Barnaby must get another agent under the same brokerage to work with the buyer to avoid an illegal relationship. Agent Bigley was doing a CMA for a 1- bedroom 1-bathroom condo with carport in Maxium Condo can be 4) 7; cannot be Buyer Betty was buying a home in a flood zone and was also securing a loan. Which is a true statement? - ANS1) [CORRECT ANSWER] An elevation certificate will be required in order for an insurance quote and binder to be provided. 2) Buyer Betty can close on the house and worry about homeowner's insurance later. 3) An existing elevation certificate is never acceptable. 4) Even if a loan wasn't being secured on the property, insurance would have to be in place to close. Buyer Pumpkin Seed received a clear to close from his lender. Which of the following would NOT still need to be completed? - ANS1) Final closing documents drawn up. 2) [CORRECT ANSWER] Appraisal to be completed. 3) Funds wired for the closing. 4) Signing of closing documents. Calculate Total Monthly Obligation Ratio- Total a buyer's Monthly INSTALLMENT debt already found on the Credit Report: Add the proposed House Payment, Divide Total Monthly Obligations by total of buyer's Monthly Gross. Which of the following is not included in the monthly installment debt? - ANS1) Credit card payments 2) Student loan payments 3) [CORRECT ANSWER] Utility payments 4) Car payments Clara Barton wanted to increase brand loyalty. Where should she share her company policies? - ANS1) Websites. 2) Marketing brochures. 3) Brochures. 4) [CORRECT ANSWER] All of the above. Comparable property 1 sold for $190,000 with 1,450 square feet. Comparable property 2 sold for $225,000 with 1,600. Comparable property 3 sold for $205,000 with 1,300 square feet. What is the average selling price per square foot of the comparable properties combined? - ANS1) $141.00 2) [CORRECT ANSWER] $143.00 3) $158.00 4) $131.00 Math: $190,000÷1,450=131.03; $225,000÷1,600=140.625; $205,000÷1,300=157.69; 131.03+140.625+157.69=429.345÷3=143.115 or 143 rounded Concept that 20% of pointed action produces 80% of results is called what? - ANS1) Pharo's Folly 2) Einstein's Principle 3) [CORRECT ANSWER] Pareto's Principle 4) Newton's Law Condominium associations may have conditions of ownership placed on buyers including requiring which of the following? - ANS1) An application and processing fee 2) An interview 3) A background and credit check 4) [CORRECT ANSWER] All of the above. Condominium ownership is all of the following except which one? - ANS1) Fee simple ownership 2) Ownership is transferred by deed. 3) Common elements are legally attached and transferred as well. 4) [CORRECT ANSWER] Each owner pays an equal share of the property tax for the whole building. Consequences of an ethics charge handled by FREC may involve which one of the following? - ANS1) A fine of up to $5,000. 2) Placement on probation. 3) Suspension of license. 4) [CORRECT ANSWER] Any of the above. During a listing appointment, Agent Henry the VII was told by his seller that he didn't want to pay for the use of a title company to sell his property. Which is the best response by the licensee? - ANS1) Do exactly as his seller requested in order to secure the listing. 2) [CORRECT ANSWER] Explain that closing without a title company or attorney would open Henry the VIII up to liability that he could not allow. 3) Take the listing and worry about the closing issue once the home was pending. 4) Tell the seller that it was ok but only the seller, not Henry, could prepare the closing documents. During the inspection period, how can a buyer walk away from the deal? - ANS1) only if there was an inspection done that shows any repairs are needed. 2) The buyer must have an inspection done to be able to walk away from the contract. 3) or sue the seller for "specific performance" to make them do the repairs found during an inspection 4) [CORRECT ANSWER] without penalty for any reason Effective objection handling can be broken down into 5 steps. Which group below has the correct 5 steps? - ANS1) Recognize the Problem, Intimidate the Person, Isolate the Objection, Propose an Answer, and Confirm Agreement 2) Recognize the Problem, Intimidate the Person, Isolate the Objection, Give Them Your Opinion, and Confirm Agreement 3) Recognize the Problem, Identify with the Person, Isolate the Objection, Give Them Your Opinion, and Confirm Agreement 4) [CORRECT ANSWER] house rentals. 3) Vacation house rentals. 4) Shopping center rentals. Juan collected $400 a month in child support. Which statement is true when it comes to Juan qualifying for a home loan? - ANS1) Juan should not declare child support because he will look weak to a lender. 2) Child support cannot be used to qualify for a loan. 3) [CORRECT ANSWER] Child support can be used if the borrower can document that the support will last into the future. 4) Child support can only be used if it has been ongoing for ten years in the past. Lenders who fail to follow the Equal Credit Opportunity Act can face civil liability for actual and punitive damages of up to how much? - ANS1) $5,000 2) [CORRECT ANSWER] $10,000 3) $15,000 4) $20,000 Licensee Betty Sue was arrested for possession of cocaine when she was visiting a friend in Phoenix, Arizona. Which of the following is true? - ANS1) Betty Sue would have to report the violation to Arizona Board of Ethics. 2) Betty Sue would not have to report the violation because it occurred outside of the state of Florida. 3) Betty Sue would automatically have a null and void real estate license. 4) [CORRECT ANSWER] Betty Sue would have to report the violation to the DBPR. Mortgage fraud occurs when someone deliberately falsifies information to obtain mortgage financing that would not have been granted otherwise. Which of the following scenarios is definitely NOT mortgage fraud? - ANS1) A buyer changes figures for his income on his W-2 and pay stubs he gives the mortgage broker to increase his income so he will qualify for a higher loan value. 2) Your buyer offers $10,000 over the list price on a property you think is worth $5,000 less than the list price. The mortgage broker sends you a copy of the appraisal which valued the house at $25,000 above the contract price. 3) [CORRECT ANSWER] You are working with a husband and wife and you are under contract on a house. The husband is the president of Hustle Gym and his income is more than enough to qualify for the loan on his own and has great credit. The wife had some medical issues before they were married and has a bunch of student loans that are in repayment. She works part time at Meow and Bark Veterinary Clinic and has terrible credit. The mortgage broker calls you to let you know the wife will not be on the loan. 4) You are working with James and you have found a property he is interested in. You write up an offer for $3,000 lower than the list price and the seller accepts. The buyer is doing a 203(k) loan. He requests that his nephew's company does the appraisal. The appraisal comes back at $11,000 more than the contract price. James asks you to change the sale price in the MLS to the appraised value. Norman, your buyer, has a contract on a property. You wrote the deal with the contingency that Norman would purchase the house using a VA loan. When the loan failed to fund resulting in the loss of the deal, what would most likely happen to Norman's $5,000 earnest money deposit? - ANS1) [CORRECT ANSWER] It would be returned to Norman as it was protected by the financing contingency. 2) Be split between the buyer and selling brokers 3) Be immediately deposited with the clerk of the court. 4) Be given to the seller for lost marketing time. October was preparing an advertisement for her seller and included the phrase "2.9% interest available." What else does she have to include in the advertisement? - ANS1) Nothing else. 2) How much interest will be paid over the course of the loan. 3) [CORRECT ANSWER] The amount or percentage of the down payment, the terms of repayment, and the annual percentage rate. 4) Just the annual percentage rate. Once the seller and buyer have negotiated repairs, you should do what? - ANS1) Insist on using someone you know to do all repairs. 2) Always make the other party choose the repair person/company. 3) [CORRECT ANSWER] Require the seller or their agent provide you and your seller with paid receipts for all the repairs to ensure that there is no risk of unpaid work becoming attached to the property as a mechanic's lien. 4) Do the re-inspection for your buyers to be able to vouch for the repairs being done. Per the statute - when a condominium is sold, specific documents must be provided from the seller to the buyer. The re-seller must provide the buyer with 7 different required documents. (Not including new percentage of buyers? - ANS1) 25% 2) 40% 3) [CORRECT ANSWER] 50% 4) 80% Stacey hired a real estate licensee to advertise a home for sale in the MLS and to handle the contract. However, the seller planned to handle their own showings and open houses and did not want to pay the agent for those services. Which type of listing agreement would be appropriate? - ANS1) Open listing agreement 2) Net Listing Agreement 3) [CORRECT ANSWER] Limited Listing Agreement 4) Exclusive brokerage listing agreement Steering is described as what? - ANS1) Denied loans in an area based on percentage of ethnic groups. 2) Talking in exaggerating tones about a property. 3) Convincing people to move out of fear values will drop. 4) [CORRECT ANSWER] Using a protected class as a basis to decide where to show someone property. Tenant Carl wanted to install a wheelchair ramp at the entrance of a home. Which statement is true? - ANS1) The seller can refuse even if the tenant pays for it. 2) This would be viewed as an unreasonable accommodation. 3) Ramps are only required when it is a multi-unit property. 4) [CORRECT ANSWER] This is reasonable so long as the tenant pays for it. The closing disclosure must be provided to the borrower how many hours before closing? - ANS1) 24 2) 48 3) [CORRECT ANSWER] 72 4) 96 The Harrisons were sued for refusing to rent to a person based on the prospective tenant's race. Which Supreme Court case would be invoked as precedence? - ANS1) Tallahassee vs. The Smiths 2) Johnson vs. Davis 3) Rayner vs. Wise 4) [CORRECT ANSWER] Jones vs. Mayer The licensee may take on legal liability of an inspection by referring the buyer or seller to a specific inspector/inspection company. To help insulate yourself from liability you should do what? - ANS1) Just pick an inspector at random 2) [CORRECT ANSWER] Always give the client a list of at least 3 names 3) Never worry about an inspector's credentials 4) Suggest they use an inspector that gives you a kickback The whole house inspector can send copies of the report to the buyer and the buyer's agent. Then the buyer's agent should do what? - ANS1) [CORRECT ANSWER] Should include the parts of the reports detailing the repairs that the buyer wants addressed for the deal to close. 2) Should send a copy immediately to the seller's agent. 3) Should not review the report with their buyer. 4) Should send a copy to the seller without asking the buyer for permission. There are programs offered county by county to help buyers cover down payment and closing costs. The terms of repayment, if required, vary from program to program. What is this program referred to as? - ANS1) Federal Aid Programs 2) USD Aid Programs 3) FHA Programs 4) [CORRECT ANSWER] Home Buyer Assistance Programs To clearly create standards of behavior within a company, which of the following would be a good idea? - ANS1) [CORRECT ANSWER] Create company manuals. 2) Provide mandatory ethics training. 3) Set up anonymous reporting system of other employee's bad behavior. 4) All of the above. To list a farm with 100 acres, which is correct? - ANS1) An agency disclosure form must be provided to work as a single agent. 2) [CORRECT ANSWER] Disclosures would not need to be provided. 3) A no agency capacity is the only option for farms. 4) Working as a transaction broker is the only option for farms. What does working a sphere of influence mean? - ANS1) Being careful not to mix business with friendship. 2) [CORRECT ANSWER] Growing the amount of people in the group. 3) Relying on casual encounters rather than formal attempts to make contact. 4) You can take it for granted that they will think of you when they need help with real estate. What is the purpose of the estoppel certificate prior to closing on a property with a homeowner's association? - ANS1) This is part of the loan application due by the buyer. 2) [CORRECT ANSWER] So that any unpaid fees due by the seller for the HOA can be accounted for within the closing figures. 3) So that the buyer broker can collect a commission on the sale. 4) There is none. When a buyer requested to see a home that was advertised as having a $5,000 rebate from a builder and is told that that deal sold out, what is this an example of? - ANS1) [CORRECT ANSWER] Bait and switch 2) Bad luck for the buyer 3) payment. 2) 25% down 3) 90% financing 4) Monthly payments less than $850. Which of the following is the correct formula for HER (housing expense ratio)? - ANS1) [CORRECT ANSWER] PITI+MIP divide by monthly gross income=HER 2) PITI+TOR divide by monthly gross income=HER 3) TOR+MIP divide by monthly gross income=HER 4) None of the above. Which of the following statements is true regarding license renewal? - ANS1) [CORRECT ANSWER] If the licensee fails to renew the license by the first renewal term, the licensee cannot recover it. 2) Past the first renewal period; if the license has expired the licensee would have to apply for a new license. 3) Past the first renewal period; if more than 12 months has passed but less than 24 months, then the licensee is required to take 14 hours of continuing education. 4) Past the first renewal period, if the licensee fails to renew the license and allows 24 months to pass, the licensee must take a special 28-hour course. Which of the following would result in a null and void license? - ANS1) Taking a post-licensing course as required. 2) Letting a license expire for 3 months past the third renewal period. 3) Letting a license expire 18 months past the third renewal period. 4) [CORRECT ANSWER] A license that has been involuntary inactive for more than two years (after the first renewal period). Which phrasing would be the best to tell a seller that you rank #5 in sales in the county? - ANS1) "I have sold a lot of houses." 2) "I rank #5 in sales in our county!" 3) "I'm one of the top agents in the county!" 4) [CORRECT ANSWER] "I rank #5 in sales in our county! This benefits you in that I have a proven record that shows I know how to get your house sold." Which statement is true about becoming involved in a community group? - ANS1) [CORRECT ANSWER] Your primary focus should be on the purpose of the group with prospecting a secondary focus. 2) This is a waste of time. 3) Since it is a group activity, relationships do not matter. 4) Going to the group once is enough; this is a prospecting success. Which statement is true regarding limited listings? - ANS1) Limited listings are illegal in Florida. 2) Listing is a form of an open listing agreement. 3) Brokers must provide all fiduciary duties to all clients. 4) [CORRECT ANSWER] Buyers and sellers may pay only for specific services contracted for within the agreement. Which statement would you advise agent Jerome not use in his listing advertisement due to Fair Housing Laws? - ANS1) Seller will assist with closing costs. 2) Apply for a home loan today. 3) [CORRECT ANSWER] Within walking distance of the Gulf of Mexico. 4) Showings are easy to schedule. Which type of loan has a 3-day right of rescission? - ANS1) [CORRECT ANSWER] A refinance mortgage. 2) Purchase of a resale home. 3) New construction. 4) There is never a right of rescission in real estate. Which would you expect in a property management contract? - ANS1) How much repair reserve will be kept. 2) The expiration date of the contract. 3) The amount of compensation to the property manager. 4) [CORRECT ANSWER]All of the above. Who is liable to a client for a poorly written contract? - ANS1) The sales agent only. 2) The sales agent's broker only. 3) [CORRECT ANSWER] Both the sales agent and their broker. 4) Neither of them. Working with a buyer is time-consuming. It only makes sense to invest time with a buyer that is not only willing to purchase a home but is able to purchase a home. Asking the buyer about how they will buy the property and how much money they have to put down is important. It's a way to ________ the buyer before you start showing them houses. - ANS1) Get rid of 2) Build rapport 3) [CORRECT ANSWER] Prequalify 4) Assess the needs of You are advertising that you will give buyers $500 of your commission at closing. Jessica, an agent with another brokerage, calls you and says you can NOT advertise giving buyer's money back at closing. Under RESPA and TILA, who is right and why? - ANS1) Jessica is right, because it is always illegal no matter what. 2) You are right, because it is illegal, unless your broker agrees. You got your broker's approval. 3) [CORRECT ANSWER] You are right, because it is allowed if handled correctly and disclosed to all parties. 4) Jessica is right, because you can only give money back to sellers at closing. You are at an expired listing hoping most weight - even "better" than matched properties located outside of the immediate area. 2) Property located within the same school district. 3) Similar properties based on square footage, lot size, condition, age, amenities and improvements. 4) [CORRECT ANSWER] Number of children living in the neighborhood. You did a listing presentation for Eric. He seems impressed, but says, "I need to think that price over and I'll let you know what I decide in the morning." You respond by saying, "I understand you want to think it over. So, if you are comfortable with the price, you would be ready to move forward?" Which of the 5 steps did you miss in the objection handling scenario? - ANS1) Identify with the person 2) Isolate the objection 3) [ESTIMATED CORRECT ANSWER] Recognize the Problem 4) All of the above Note: This answer was not clearly defined during the review, and did not have an explanation or correct answer listed You have just concluded a buyer presentation with Taylor. She likes you and you helped her sister buy a house 6 months ago. She is really excited about getting started. You put the buyer broker agreement in front of her, but you notice she looks very worried and did not sign it right away. You ask her if she has any questions. She immediately says, "Yes, I don't know how I am going to pay you for helping me. A guy at work said he had to pay his real estate agent $10,000. I only have money for the down payment because you helped me get the 1st time home buyer program. I guess I will have to wait until I can save up some money. Which of the following statements cover steps number 4 & 5 of objection handling? - ANS1) "I understand coming up with the money to buy a house is a little daunting. I worried about the same thing when I bought my house." 2) "I have to have a signed agreement. But you can think it over if you need to." 3) [CORRECT ANSWER] "You don't have to worry about that because my commission is paid by the seller at closing. Since you don't have to pay me yourself, wouldn't it make sense to work together?" 4) None of the above. You have shown your buyer's what they say is their dream home. However, it needs some repairs. The house is a foreclosure and has been vacant for almost a year. One bathroom is missing the toilet, the roof has a leak, the kitchen counters are gone and a few other more minor issues. The buyers will qualify for any loan and have more than enough to put down; whatever is required. Which of the following is the best loan for them? - ANS1) Conventional loan 2) VA loan 3) [CORRECT ANSWER] 203K 4) FHA You just finished a listing presentation and the client has agreed to sign the Listing Contract. During your conversation, the client tells you they will be taking the foyer chandelier with them because it was a present from their deceased grandmother. You forget to exclude it in the purchase agreement. Two months later, you get an offer and the seller agrees. The deal closes. The buyer moves in and realizes the chandelier is missing. The buyer's agent contacts you to complain. Which of the following is most likely to happen? - ANS1) [CORRECT ANSWER] You are liable to the buyer for the loss of the chandelier. 2) The seller must reinstall the chandelier. 3) You just tell the buyer's agent you meant to let them know it was excluded. 4) The buyer's agent is liable to the buyer for the loss of the chandelier. You just finished a listing presentation for Joe. He seems impressed, but he says, "Thank-you for coming tonight. I am going to think things over and let you know what I decide in the morning." Which of the following phrases would be the best way to start a response based on the 5 Steps of Objection Handling? - ANS1) "I'll drop my commission by 1% if you list with me today." 2) "But wouldn't it be better just to get this over with? I promise you I won't let you down." 3) [CORRECT ANSWER] "I understand you want to think over such a big decision. When I have to make an important decision, I often want to take my time as well. I was wondering..." 4) "I understand. I'll call you in the morning to find out your decision!"