Exam Question Master 3 questions with correct and verified answers

Exam Question Master 3 questions with correct and verified answers Insulation is rated by its ability to resist - heat flow A man successfully negotiated (and was paid for) the sale of a Federal Communications Commission license for a television station. He is NOT a licensed real estate broker or sales associate. The man - has not violated F.S. 475. Which statement is TRUE regarding the monthly payments on a 30-year, fully amortized loan? - Initially, interest is the larger portion of the payment. Which element is NOT essential in a valid real estate sale contract? - An earnest money deposit The DBPR may issue which penalty for an initial offense of a minor violation by a licensee? - Notice of noncompliance A title theory state is one in which a mortgage - transfers title to the lender or escrow agent until the loan is paid. A broker's license was involuntary inactive for two years and one month. To operate again as an active licensee, the broker must complete - FREC Course I and pass the sales associate's licensing exam. Your seller owns a home appraised at $52,500. She still owes $32,760 on the first mortgage and $4,200 on a second mortgage. Your sales commission will be $3,640. What is your seller's equity in the home? - $15,540 The answer is $15,540. The solution is: $52,500 appraised value - $32,760 first mortgage - $4,200 second mortgage = $15,540 equity. A licensed real estate broker has a buyer who is interested in investing in incomeproducing property. The broker finds a property producing net income of $1,750 per month. The buyer informs the broker that she will buy the property if she can get it for a price that will return 14 percent per year on her investment. If the desired 14 percent rate of return is regarded as a 14 percent capitalization rate, what will the buyer be willing to pay for the property? - $150,000 The answer is $150,000. The solution is: $1,750 monthly net income × 12 months = $21,000 NOI; $21,000 ÷ .14 cap rate = $150,000 target price. A licensee makes a statement that is material to the transaction as if it were a fact when the licensee does NOT know if the statement is TRUE or FALSE, and the buyer relies on the statement. As a result of the statement made by the licensee, the buyer suffers damages. This situation constitutes - fraud. The purchase price of a business minus the value of the tangible assets of that business equals the intangible assets of the business, referred to as - Goodwill. Business brokers appraise businesses using appraisal methods similar to real estate appraisal EXCEPT for the additional technique of - liquidation analysis. The Florida Real Estate Commission must notify which agency when it takes disciplinary action against any of the agency's licensees? - Division of Florida Condominiums, Timeshares, and Mobile Homes A licensed real estate broker has been hired by a lender to appraise a home for a buyer who has made application for an FHA loan. Which statement is TRUE regarding this situation? - The broker is required to be a state-certified appraiser to perform this appraisal assignment. The only broker for a firm had her license revoked. What action, if any, will be taken against the sales associates' licenses registered under the broker? - The licenses will be placed in involuntary inactive status. Essential elements of a deed do NOT include - signature of a competent grantee. The answer is SIGNATURE OF A COMPETENT GRANTEE. A competent grantor (not grantee) must sign the deed. A real estate brokerage company is a transaction broker for a buyer. The buyer wants to purchase a new home so the sales associate takes him to three model centers listed by three competing real estate companies. The sales associate must give the no brokerage relationship notice to - The answer is NO ONE. Effective July 1, 2008, real estate licensees are no longer required to give customers the transaction broker notice. Licensees are also not required to give a disclosure notice at model centers. A broker who changes business address must notify the Commission of the address change within how many days? - 10 What would be the total required taxes for the loans on a $47,500 tract that sold with $10,000 cash down, a new second mortgage of $15,500, and an assumed mortgage of $22,000 that was previously recorded? - The answer is $162.25. The solution is: Doc stamps on new note: $15,500 ÷ $100 increments × $.35 rate = $54.25; Doc stamps on assumed note: $22,000 ÷ $100 increments × $.35 rate = $77.00; Intangible tax on new mortgage: $15,500 × $.002 = $31.00; $54.25 + $77.00 + $31.00 = $162.25 taxes for the mortgage loans. Which estate includes the right of survivorship? - Joint tenancy A property closes on April 8, with the day of closing charged to the seller. The annual property taxes are $1,486. Which entry will appear on the closing statement for the property taxes? - Debit to seller and credit to buyer in the amount of $398.98 The answer is DEBIT TO SELLER AND CREDIT TO BUYER IN THE AMOUNT OF $398.98. Taxes are paid in arrears. Therefore, calculate number of days seller is responsible for paying: January (31) + February (28) + March (31) + April (8) = 98 days. $1,486 ÷ 365 days × 98 days = $398.98 seller owes, so debit seller and credit buyer. The formula to calculate the overall capitalization rate is - NOI ÷ Value (or price). A developer purchased three oceanfront lots, each measuring 75 by 110 feet, for $20 per square foot. The developer later sold the lots for $200,000 each. What was the developer's percentage of profit on the sale of the three lots? (Round to nearest percent.) - 21 PERCE