Comprehensive Gold Coast RE 1001 Cram, Practice Math and Final Exam |100% Correct Question and Answer|

Comprehensive Gold Coast RE 1001 Cram, Practice Math and Final Exam |100% Correct Question and Answer| .240. A broker from Tampa sells a property listed by a Miami broker. At closing, the Miami broker refuses to pay the Tampa broker's share of the commission. Charges are filed by FREC against the Miami broker for failure to account. The Commission has the Miami broker subpoenaed, but the broker fails to appear. The Miami broker: a. Does not have to appear b. May be fined for contempt of court c. Could have license suspended or revoked by FREC d. Both b and c are correct *Ans* D. Both b and c are correct 1. A $40,000 mortgage for a term of 20 years was originated at an 8% interest rate, with monthly mortgage payments of $334.58. What is the principal balance remaining after the second monthly payment? a. $39,932.09 b. $39,863.72 c. $39,794.90 d. $39,725.62 *Ans* B. $39,863.72 1. In which area of brokerage has absentee ownership increased the demand? a. Business opportunity brokerage b. Commercial sales c. Agricultural sales d. Property management *Ans* D. Property management 1. When must a written No Brokerage Relationship (nonrepresentation) Notice be provided to customers? a. Immediately upon the signing of a listing agreement b. At an open house when providing a brochure containing information about the property c. Before showing homes that are listed d. In every real estate transaction *Ans* C. Before showing homes that are listed 10. Calculate the number of acres in a property with the following legal description: SW 1/4 of the SW 1/4 of the SE 1/4 and the E 1/2 of the E 1/2 of the SW 1/4 of Sec. 23 a. .625 b. 1.25 c. 2.50 d. 50 *Ans* D. 50 10. The sales comparison approach usually CANNOT be used when estimating the value of which of the following? a. Income-producing industrial property b. Income-producing commercial property c. Residential property d. Special-purpose properties *Ans* D. Special-purpose properties 10. What does the license law require that a licensee complete before the first renewal of a Florida real estate license? a. A continuing education course b. A minimum number of transactions c. A post-licensing course d. A REALTOR® orientation course *Ans* C. post-licensing course 100. If a lender charges four points on a loan with an interest rate of 11%, what would be the approximate yield to the lender? a. 11.25% b. 11.50% c. 11.75% d. 11.85% *Ans* B. 11.50% 100. Which type of loan uses both real and personal property as security? a. Blanket mortgage b. Purchase money mortgage c. Package mortgage d. Chattel mortgage *Ans* C. Package mortgage 1000. An investor realizes a net income of $925 per month on a $111,000 investment. What is his yield (return on investment)? a. 9% b. 10% c. 11% d. 12% *Ans* B. 10% 1001. After I have passed my state exam, I need to: a. Celebrate! b. Pat myself on the back; I've worked hard c. Sign up to take my post-license course immediately d. All of the above, in this order *Ans* D. All of the above, in this order 101. Which remedies are available when a seller breaches a contract? a. A suit for specific performance b. Buyer gets deposit returned c. A or b but not both d. Notifying FREC *Ans* C. A or b but not both 102. What term refers to the right of a mortgagor to stop a foreclosure process by paying the entire balance, interest and so on? a. Equity of estoppel b. Right of redemption c. Right of defeasance d. Equity of disposition *Ans* B. Right of redemption 103. Which type of mortgage is known as seller financing? a. Package mortgage b. Term mortgage c. Second mortgage d. Purchase money mortgage *Ans* D. Purchase money mortgage 104. Where are the interest rate, payment, and other terms of a loan found? a. Note b. Lease c. Satisfaction d. Mortgage *Ans* A. Note 105. Which statement is correct in a lien-theory state such as Florida? a. The borrower will obtain title only after the loan is paid. b. Foreclosure will take place much quicker than in title theory states. c. The borrower conveys title to the lender using a deed of trust. d. The mortgage serves as a lien against the property. *Ans* D. The mortgage serves as a lien against the property 106. Which of the following is a characteristic of an amortized or level payment mortgage? a. The early payments are mostly interest b. The early payments are mostly principal c. Each monthly payment increases and the balance decreases d. With each monthly payment, the interest increases and the balance decreases *Ans* A. the early payments are mostly interest 107. Which term refers to the process of sand deposits building up over time, causing an increase in land? a. Reliction b. Accretion c. Erosion d. Alluvion *Ans* B. Accretion 108. Which estate or tenancy is the most comprehensive? a. Fee simple b. Life estate c. Estate for years d. Free sample estate *Ans* A. Fee simple 109. Which term refers to the government's right to limit or control the actions of citizens in the form of such things as zoning codes and building codes? a. Police power b. Eminent domain c. Escheat d. Taxation *Ans* A. Police power 11. A property is rectangular and measures 500' x 640'. How many acres does it contain? a. 5.21 b. 6.38 c. 7.35 d. 9.24 *Ans* C. 7.35 11. In a brokerage corporation, the officers and directors can be active or inactive brokers or nonlicensed registered persons. If someone who is nonlicensed and registered wants to become a broker, what must he or she do? a. File an application with the secretary of state b. Only take a 40-question law exam c. Qualify for a broker license in the same way as anyone else d. Demonstrate 2 years of experience in the real estate business *Ans* C. Qualify for a broker license in the same way as anyone else. 11. Which of the following describes expenses on a closing statement? a. Prorated between parties b. Always entered as double entries c. Always entered as debit entries d. Entered as disbursements *Ans* C. Always entered as debit entries 110. Which process is used by the government to take private land for public use? a. Escheat b. Encroachment c. Condemnation d. Acknowledgment *Ans* C. Condemnation 111. Which term refers to the interest that is charged when banks borrow from the Federal Reserve? a. Prime rate b. Discount points c. Usury rate d. Discount rate *Ans* D. Discount rate 112. If a lender charges 8% interest plus 2 points, what is the approximate yield on the loan? a. 9.00% b. 8.50% c. 8.25% d. 8.13% *Ans* C. 8.25% 113. The primary purpose of the Federal Home Loan Bank System is to provide support for which of the following? a. Savings associations b. Federal commercial banks c. Mortgage brokers d. Insurance companies *Ans* A. Savings associations 114. Which characteristic applies to the note documentary stamp tax? a. Paid by the seller b. $.70 per $100 c. .002 of the loan amount d. $.35 per $100 *Ans* D. $.35 per $100 115. What would the Federal Reserve do when it wants to increase the supply of loanable funds?