REAL ESTATE FL EXAM 2024/2025 WITH ANSWERS, Exams of Real Estate Management

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REAL ESTATE FL EXAM 2024/

WITH ANSWERS

A sales associate works under - CORRECT ANSWER-the direction of a broker or in some cases an owner developer A licensed appraiser is compensated for an appraisal - CORRECT ANSWER-With a flat fee The product/service that all real estate professionals sell is - CORRECT ANSWER-their expert knowledge Which area of real estate requires the highest degree of expertise? - CORRECT ANSWER-Counseling Which Florida Administrative Code expands upon the statutory provisions of Chapter 475, Florida Statutes? - CORRECT ANSWER-61J After completing the 45-hours post-licensing education during the initial license period, licensees must complete - CORRECT ANSWER-at least 14 hours of continuing education during every 2-year license period An unlicensed personal assistant may be at an open house and can - CORRECT ANSWER-hand out materials A licensee may substitute attendance at one legal agenda session of the FREC for - CORRECT ANSWER-three hours of continuing education credit A broker price opinion or comparative market analysis constitutes real estate brokerage activity, the compensation

collected in connection with that activity must be paid to the - CORRECT ANSWER-sales associate's Broker/brokerage Failure to complete the sales associate post-licensing education requirement will cause the initial license to - CORRECT ANSWER-become null and void. A sales associate is a licensed associate of a broker. If by issuance of a Final Order, the broker's license was revoked by the Florida Real Estate Commission, the sales associate's license is - CORRECT ANSWER-automatically become involuntary inactive status Of the seven total members of the FREC, two must be - CORRECT ANSWER-never licensed as real estate sales associates or broker The law that establishes the legal rights and responsibilities of real estate licensees is - CORRECT ANSWER-Florida Statutes Chapter If a Broker fails to report a business address change to the Department of Change within _____, per Florida Statute 475.23, the license shall cease to be in force. - CORRECT ANSWER-10 days The No Brokerage Relationship notice must be disclosed - CORRECT ANSWER-in writing before the showing of property A licensed real estate sales associate in the employ of a broker has - CORRECT ANSWER-the same obligations to the broker's clients and customers as the broker Brokerages are required to maintain business records for ______ - CORRECT ANSWER-5 years

When using a Florida-based title company to hold escrow funds for a sales contract, what three items about the title company must the real estate licensee indicates on the purchase agreement? - CORRECT ANSWER-title company's name, address and telephone number A broker must deposit earnest money into their trust account within how many days of receiving it - CORRECT ANSWER- immediately, within three business days FREC has jurisdiction over which of the following escrow accounts - CORRECT ANSWER-broker escrow accounts The amount of commission a real estate broker receives in a transaction is established by - CORRECT ANSWER-an agreement between the parties Advertising for a brokerage corporation must include the - CORRECT ANSWER-registered name of the brokerage firm Advertising for a brokerage corporation must include the - CORRECT ANSWER-registered name of the brokerage firm Advertising for a brokerage corporation must include the - CORRECT ANSWER-registered name of the brokerage firm A licensee under investigation of a complaint will receive a copy of the complaint and has _____ to respond. - CORRECT ANSWER-20 days Failure of a licensee to act in correcting the violation within _____ after notice of noncompliance may result in the institution of regular disciplinary proceedings - CORRECT ANSWER-15 days A licensee may APPEAL the Final Order within _ __ _ _. - CORRECT ANSWER-30 days

The US Department of Housing and Urban Development (HUD) has_____ to begin work on a complaint made by an aggrieved person under the Fair Housing Rights act. - CORRECT ANSWER-30 days The respondent to a fair housing complaint has _____ after receiving notice to send an answer to the complaint to HUD - CORRECT ANSWER-10 days Either party may terminate a lease if the other party is violating terms of the lease by giving a Notice of Violation. There is a _____ opportunity to correct the situation. - CORRECT ANSWER-7 day Tenant is allowed _____ to respond to landlord's written claim on deposit. Disputes are handled in civil court. - CORRECT ANSWER-15 days Which real property interest applies to ownership of land? - CORRECT ANSWER-tenancy in common The main purpose of the Homestead Act is - CORRECT ANSWER-exempt property from forced sale Real property owned by a husband or his wife prior to their marriage is presumed to be - CORRECT ANSWER-separate property The rights of a land owner to make a reasonable use of the waters that flow past his/her property, as long as the owner does not divert or pollute the water, is referred as what type rights? - CORRECT ANSWER-riparian rights Tenancy in common is best described as - CORRECT ANSWER-having an undivided interest

Chapter 720.401, F S, requires sellers to provide buyers with a Homeowner's Association disclosure summary. This disclosure summary must be supplied by the - CORRECT ANSWER- seller's broker What disclosure summary concerning ad valorem taxes must be presented to a prospective home buyer in Florida? - CORRECT ANSWER-property tax disclosure A joint tenant who wants to sell their share of a property - CORRECT ANSWER-may do so but the new owners will be tenants in common The Florida law that requires seller of property to provide buyers with a disclosure summary regarding a mandatory homeowners' association is - CORRECT ANSWER-the Homeowners' Association Disclosure, Chapter 720, F.S. The main purpose of the Homestead Act is to - CORRECT ANSWER-exempt property from forced sale Anything that is permanently fastened or connected to a property is - CORRECT ANSWER-a fixture In Florida, in a real estate sales contract, the earnest money (binder) deposit is - CORRECT ANSWER-not required to make the contract valid The seller of real property may best provide proof of marketable title by - CORRECT ANSWER-title insurance and a first mortgage release A person who owns property or holds a vested ownership rights in property is said to have - CORRECT ANSWER-title The actual transfer of title is made - CORRECT ANSWER- when the deed is recorded

The guarantee in which the seller provides assurance that he owns the property and therefore has the right to sell it is called the covenant of - CORRECT ANSWER-seisin The right of the water company to lay and maintain water mains along a designated line in the rear of a lot would be called a - CORRECT ANSWER-easement in gross An abstract of title is a - CORRECT ANSWER-condensed history of title An easement can be removed by - CORRECT ANSWER-the decision reached by a court A beneficial interest in real estate which implies that an individual will receive legal title at a future date is known as - CORRECT ANSWER-equitable title In a platted subdivision, the legal description most often used is

• CORRECT ANSWER-lot and block Under the government survey method of legal descriptions, a quarter of a section contains how many acres? - CORRECT ANSWER- 160 How many sections are there in a township? - CORRECT ANSWER- 36 The broker, when employed by a buyer-broker agreement, may be - CORRECT ANSWER-a transaction broker, single agent or a nonrepresentative When must the property tax disclosure summary be presented to the prospective buyers of residential property in Florida? - CORRECT ANSWER-before or at the time of execution of the contract for sale

The legal relief in equity action in which the plaintiff seeks to have the court force the other party to perform according to the contract is called a suit for - CORRECT ANSWER-specific performance Real estate agents have a duty to improve professional standards within the industry. Some acts may be legal but - CORRECT ANSWER-unethical An option contract is a - CORRECT ANSWER-unilateral contract A real estate sales contract or a contract for sale and purchase is a bilateral contract because - CORRECT ANSWER-it contains promises to perform by both parties Under which theory of mortgages does the ownership pass to the lender when the loan is made? - CORRECT ANSWER-title A clause found in many mortgages that allow the lender the right to declare the entire mortgage balance is payable in full should the property be sold is the - CORRECT ANSWER-due- on-sale clause The cost of a mortgage stated as a yearly rate that includes such items as interest, mortgage insurance, and loan origination fee (points) is known as the - CORRECT ANSWER- annual percentage A mortgage note has been paid in full. The mortgage lien now can be released through - CORRECT ANSWER-a defeasance clause The monetary policy in the United States affects interest rates for home loans by controlling the availability of money. Who

determines this monetary policy? - CORRECT ANSWER- Federal Reserve System As a general rule, closing expenses are - CORRECT ANSWER-paid by the buyer and seller according to the contract An adjustable rate mortgage is originated at an initial interest rate and adjusts on an economic indicator. What is this indicator called? - CORRECT ANSWER-an index In residential loan transactions, the law that requires lenders to furnish applicants with a loan estimate booklet - CORRECT ANSWER-RESPA "Qualifying the buyer" refers to - CORRECT ANSWER- determining the buyer's ability to meet the financing costs associated with home ownership A buyer is securing a government-insured loan on the home she is buying. What type of mortgage is she receiving? - CORRECT ANSWER-FHA Lenders in the mortgage market who supply mortgage funds directly to borrowers are known as - CORRECT ANSWER- primary lenders With a Purchase Money Mortgage (PMM), a mortgage is typically paid back to whom? - CORRECT ANSWER-the seller The FHA insurance fund is intended to reimburse - CORRECT ANSWER-private lenders when an FHA insured mortgage loan is determined to be uncollectable In analyzing the borrower's ability to pay and attitude toward debit, the lender would be concerned with the characteristics of the borrower's - CORRECT ANSWER-credit rating

Customarily, the intangible tax, if applicable, would be entered on the Closing Disclosure as a - CORRECT ANSWER-debit to the buyer A second mortgage, if accepted by the seller, would be entered on his copy of the Closing Disclosure as - CORRECT ANSWER-a deduction from the purchase price Assuming that the broker is a seller's agent , the sales commission would appear must commonly on the Closing Disclosure as a - CORRECT ANSWER-debit to the seller There is an excess supply of available office space in a given locale. This factor will lend to characterize the commercial market as - CORRECT ANSWER-buyer's market A good indicator of the relationship between supplyand- demand in the residential market is - CORRECT ANSWER-the vacancy rate Real estate licensees who do conduct actual real estate appraisals are required to comply with the - CORRECT ANSWER-Uniform Standards of Professional Appraisal Practice In the appraisal technique known as the comparable sales approach to value, the - CORRECT ANSWER-sales price of comparable are adjusted to the subject property Active real estate licensees are allowed to perform a comparative market analysis , but Florida Statute 475. prohibits referring to this as - CORRECT ANSWER-an appraisal The capitalization rate is obtained by - CORRECT ANSWER- dividing the net operating income by the sales price

When the rental income of a property rises, the market value - CORRECT ANSWER-rises Leverage refers to the practice of - CORRECT ANSWER-using borrowed funds to finance the purchase of an asset The chance of losing all or part of investment is called - CORRECT ANSWER-risk The current Florida homestead tax exemption is up to $50, for qualifying homestead, and is deducted from the - CORRECT ANSWER-assessed value when calculating taxable value Which of these expenses on a principal residence is deductible for Federal Income Tax purposes? - CORRECT ANSWER- mortgage interest charges With respect to ownership of a primary residence , which housing expenses are tax deductible? - CORRECT ANSWER- mortgage interest and property taxes A home located at the highest risk of - CORRECT ANSWER- Zone V Which must be provided to close a loan to buy a new residential property? - CORRECT ANSWER-Certificate of Occupancy