Real Estate Licensing Exam Study Guide: Questions and Answers for Florida, Exams of Real Estate Management

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Gold Coast FINAL EXAM 2023-

STUDY SET for 4/11- Latest Update

2023/2024! Questions and Answers

what are the the areas a realtor should be an expert in? - ANSWER-Marketing Valuation & Market Conditions Property Transfer "MVP" Does one need to be a resident of the state or a citizen of the U.S. to get a FL real estate license? - ANSWER-to get a FL real estate license, you don't need to be a citizen What must an applicant for a real estate license do if he has been convicted of a crime?

• ANSWER-must disclose all convictions Employment - ANSWER-an associate can only have one employer at a time What's the grace period for a Sales associate's first renewal? Post Licensing - ANSWER-no grace period, void and null Individuals who are exempt from licensure - ANSWER-Salaried Employees How long can one stay involuntary inactive? - ANSWER-2 years What happens to an associates license if a broker's license is void, suspended, or revoked? - ANSWER-their license automatically becomes inactive Multiple Licenses - ANSWER-issued only to active brokers if it is clearly shown that such additional licenses are necessary to the conduct of legitimate business What is a Transaction broker - ANSWER-a broker who provides limited representation to a buyer, seller, or both, in a real estate transaction not an AGENT Presenting Offers - ANSWER-must present all offers A broker is entitled to compensation if they... - ANSWER-bring a buyer who brings an offer the seller was looking for

Listing Contract - ANSWER-broker's employment contract that states the terms and conditions that the broker must meet to become eligible for compensation Referral Fees: I as the sellers agent promise kickback commission. Is this allowed? - ANSWER-yes, as long as this is disclosed to all interested parties what if an attorney asks for a fee because they referred a client to you? - ANSWER-you cannot give him a referral fee for sending you a client Principal Brokerage office - ANSWER--registration is good for 2 years -can switch locations branch brokerage office - ANSWER--registration is good for 2 years -cannot move locations if not the principal location... in order to move it would need a new registration for the new location and must pays fees associated with it What are the requirements for a Principal Office? - ANSWER--at least one enclosed room in a building of stationary construction -must maintain documents for a minimum of 5 years What are the requirements for an associate advertising with a website? - ANSWER-- must have brokerage name and his/her last name Advertising - ANSWER-must have name of brokerage When should one disclose that they are a licensed agent? - ANSWER-prior to entering serious negotiations Escrow Account pg.75**** - ANSWER-ESCROW ACCOUNT PG 75**** Earnest Money Deposit - ANSWER-provide written verification within 10 days of request A buyer drops off an escrow check on Monday. To avoid any trouble with FREC, the broker must deposit the check by close of business on which day? - ANSWER- Thursday Which of the following 4 uses/has an interpleader? Mediation Escrow Disbursement Order Arbitration Litigation - ANSWER-Litigation

Escrow Disbursement Exemptions - ANSWER-when a sales contract is subject to a contingency (financing/appraisal/etc) and it's not met When a sales associate has not received his compensation, what can they do? - ANSWER-sue employing broker only How many days does one have to notify the commission of a change of address or employer - ANSWER- Real Estate Brokerage Partnership - ANSWER--all must register w. DBPR If all the partners in a Real Estate Brokerage Partnership want to be active in real estate sales, what must they do/be? - ANSWER-all must be a licensed broker Does a corporation for profit between a broker and associate dealing with investments need to be registered? - ANSWER-No, a for profit corporation dealing w. investments does not need to be registered with any department What are the 7 businesses that may register with the department to perform brokerage services? - ANSWER-6 of 7 have the letter P... the only one that doesn't is LLC -sole Proprietorship -corporation for Profit -Not-for-Profit corporation -LLC -general Partnership -limited Partnership -limited liability Partnership what do the following businesses that may not register to broker real estate have in common - ANSWER-they don't have the letter P in it or LLC culpable negligence - ANSWER-occurs if a broker operates in a reckless, careless, and excessively negligent manner. negligence for which one can be held legally accountable misrepresentation - ANSWER-omission or misstatement of facts Appeal a final order - ANSWER-request review with district court of APPEAL Where does the money come from for the Recovery Fund? - ANSWER-fees and fines Steering or Channeling - ANSWER-___ an individual, directly or indirectly, into or away from a neighborhood or location in a multi-unit building on the bases of race, color, religion, sex, or national origin

Redlining - ANSWER-refusal by a lender to approve a mortgage loan based on a property being located in a certain geographical area, the age of the property, the income level of the residents, or the racial composition of the area Blockbusting - ANSWER-consists of inducing an owner to list or sell on the basis that the neighborhood is deteriorating or becoming transitional due to an influx of minority persons When a landlord is holding a security deposit, which can't he do? - ANSWER-cannot hold money in an out of state banking institution Do Not Call List "DNC" - ANSWER--cannot call someone before 8am and after 9pm -can call someone from the DNC if you have a buyer interested in purchasing the property -CANNOT Solicit for sale by owner -can face a 40k fine Which term refers to physical land, improvements, & intangible rights? - ANSWER-Real Property Riparian Rights - ANSWER-rights of an owner whose property borders a flowing waterway (RIVER) Fee Simple - ANSWER-the owner has a complete bundle of rights Estate in Severalty - ANSWER-sole ownership of entire bundle of rights Tenancy in Common - ANSWER--2 or more people own it -undivided interest -can be left in a will -may sell his interest without consent Joint Tenancy - ANSWER--right of survivorship Tenancy by the entireties - ANSWER-husband and wife only if a husband and wife get divorced, the property that was once tenancy by the entireties becomes? - ANSWER-tenancy in common Jef owns a property, Jeff deeds it to Maggy but only for the duration of Maggys' life. When Maggy dies, the estate goes to Ray. What is this called? - ANSWER-Remainder Estate Tenancy at Will - ANSWER--month to month -must give other party 15 days notice

Property owned in one spouse's name before the marriage or acquired by gift or inheritance during the marriage is considered? - ANSWER-Separate Property Tenancy for Years - ANSWER--specific time period -has a specific start and end date A spouse who is left out of a will can claim? - ANSWER-Elective share 30% Constructive Notice - ANSWER-achieved by recording documents in the public records Voluntary Alienation - ANSWER-deed and will Involuntary Alienation - ANSWER-escheat, eminent domain, adverse possession, descent and distribution Habendum Clause - ANSWER-specifies the legal right being conveyed/received When transferring a title, whose signature is required? - ANSWER-Grantor All are examples of an eminent domain except? - ANSWER-mall eminent domain - ANSWER--allows local, state or federal gov., railroads, public utilities, and public housing authorities to obtain ownership to private property -the "taking" must only be for public use Net Lease - ANSWER-fixed rent + portion of operating cost like taxes, insurance, and maintenance Which township is North of Section 1? - ANSWER- Check - ANSWER-the intersection of guide meridians and correction lines from a 24- mile-square area Lot and Block - ANSWER-used to identify small parcels of property Parcel Number - ANSWER-assigned to a parcel of real property by a county property assessor to identify that property 1 acre is how many square feet? - ANSWER-43, one section is how many acres - ANSWER- what is required for a valid contract? - ANSWER-Offer and Acceptance Consideration - ANSWER-Promise of future money

Statute of Frauds - ANSWER-in writing to be enforceable If a contract is entirely oral, action must be brought within - ANSWER-4 years Inferred - ANSWER-implied contract All are ways to terminate an offer except? Novation acceptance withdrawal rejection and counter - ANSWER-Novation Assignment of Contracts - ANSWER-the sale, transfer, or subrogation of rights in a contract Suit for Specific Performance - ANSWER-if seller promises to sell and a few weeks later he doesn't want to sell As is Contract - ANSWER-must DISCLOSE any material defects What type of listing best protects the broker? - ANSWER-exclusive right of sale Option Contract - ANSWER-right to buy during a specified period of time When does a mortgager (borrower) become Legal Owner? - ANSWER-day of closing Promissory Note - ANSWER-document specifies money owed, payment schedule, and interest When a loan is paid off, a lender provides the mortgagor what? - ANSWER-satisfaction of mortgage Defeasance Clause - ANSWER-protection to borrower Equal Credit Opportunity Act - ANSWER-requires lenders to judge every loan applicant on the basis of the applicant's own credit rating and income Housing Expense Ratio & Total Obligations Ratio - ANSWER-31% 43% Equity of Redemption - ANSWER-right to redeem interest by paying off lender what they are owed in full If all lien holders have been paid from the proceeds of the foreclosure sale, any surplus funds remaining are paid to? - ANSWER-Mortgagor (borrower)

FHA - ANSWER-insures and has a max loan what are 3 layers of the secondary market? - ANSWER--Federal National Mortgage Association (FNMA or Fannie Mae) -Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) -Government National Mortgage Association (GNMA or Ginnie Mae) all of these are actions of the primary market except? - ANSWER--Federal National Mortgage Association (FNMA or Fannie Mae) -Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) -Government National Mortgage Association (GNMA or Ginnie Mae) Real Estate Settlement Procedures Act (RESPA) - ANSWER-law that requires lenders to provide a loan estimate of settlement costs Abstract Continuation - ANSWER-history of title provided by seller Doc Stamp on Deed located outside of Miami Dade? - ANSWER-.70/ intangible tax - ANSWER-applies to new mortgage Liquidation Value - ANSWER-value of failing business Market Value - ANSWER-most probable price Principle of Substitution - ANSWER-pay no more for a property than for an equally desirable alternative property Principle of highest and best use - ANSWER-most profitable use, produces the greatest net return on land External Obsolescence - ANSWER-loss of value caused by factors beyond the boundaries of the subject property Functional Obsolescence - ANSWER-adding a swimming pool that cost you 20k even though it only provides 10k in value Principles of Value - ANSWER-rate stays the same, value goes up -> interest goes up Static Risk - ANSWER-can be offset with insurance, such as fire, flood, robbery, etc Immune Property - ANSWER-properties that are owned by local, state, and federal gov all apply to homestead except? - ANSWER-property is immune Veteran who became 20% disabled in the war - ANSWER-30k

Residential Zoning - ANSWER-based on density