Florida Real Estate Practice Final Exam
CORRECT 100%
The broker is guilty of culpable negligence. - ANSWER An investor wanted to build a
motel. A broker showed him three choice sites zoned hotel-motel. The investor
promised to decide on a site in three weeks, so the broker took a two-week vacation.
When the broker returned, the investor bought one of these sites. The broker sold the
site, not knowing that the zoning on that site had been changed to industrial.
A tenant signs a six-month rental agreement. The owner of the rental unit hires a
property manager to collect rent and oversee the unit's maintenance. Who holds a
leasehold estate in the rental unit? - ANSWER Tenant
A licensed sales associate decides to have personalized key rings made. Which
statement is TRUE regarding the key rings? - ANSWER The name of the real estate
brokerage firm for which the associate works must be printed on the key rings.
FREC rules define a resident of Florida as a person who - ANSWER has resided in
Florida for at least four calendar months within the preceding year
Right of survivorship is contained in which tenancy? - ANSWER By the entireties
A real estate broker has been hired to manage an apartment complex on behalf of the
landlord. How must the broker as agent handle the receipt of security deposits and
advance rent? - ANSWER Place the funds in the broker's escrow account
Which standard can be used for judging whether an item is a fixture? - ANSWER
Relationship or agreement of the parties
A commercial tenant pays a fixed rent each month. The landlord pays the property
taxes, hazard insurance, and maintenance expenses. The tenant has what type of
lease? - ANSWER Gross
How is a new purchase money mortgage (PMM) entered on a closing statement? -
ANSWER Debit buyer and credit seller
A licensed Florida real estate broker resides in Panama City, Florida. The broker
decides to keep open his real estate office in Panama City but reside in Mississippi.
Which statement applies to this situation? - ANSWER The broker must notify the
Commission of his change in residency within 60 days of moving out of state.
A homeowner is considering replacing his five-year old fiberglass shingle roof with a title
roof. The cost to replace the roof is $35,000, though an appraiser has advised the
, homeowner that he will only get about $15,000 in added value for the tile roof. The
appraiser would classify this as - ANSWER an over improvement.
Which action associated with water rights will cause the uncovering of additional land
caused by the gradual receding of water? - ANSWER Accretion
In states that subscribe to the title theory, a mortgage - ANSWER transfers the title to
the mortgagee or an agent until the loan is paid
Which remedy for breach of contract requests that the courts award damages for the
extent of loss suffered? - ANSWER Compensatory damages
Which lien is classified as a voluntary lien? - ANSWER Vendor's lien
In Florida, when a mortgage loan is paid off, which instrument is prepared by the lender
and given to the borrower? - ANSWER Satisfaction of Mortgage
A buyer offered $225,000 for a seller's property. The seller countered at $250,000. The
buyer did not accept the seller's counteroffer. The seller told her broker that she was
revoking the counteroffer and accepting the buyer's original offer. Which statement is
TRUE regarding this situation? - ANSWER The seller can revoke her counteroffer and
accept the buyer's original offer up until the time the buyer rejects the counteroffer.
A prospective purchaser of a residential condominium unit sends written notification to
the listing broker stating her desire to cancel the contract within the allowable rescission
period. The seller instructs the broker to retain the earnest money deposit as liquidated
damages. The broker is legally authorized to - ANSWER return the deposit to the buyer
Which action does NOT terminate a single-agent brokerage relationship with the seller?
- ANSWER Fulfillment of the brokerage relationship's purpose
An owner of an apartment complex pays $50 to each tenant who refers a person who
becomes a tenant. This arrangement. This arrangement is - ANSWER an illegal
kickback
A buyer and a seller are disputing a contract for sale and purchase. They agree to
submit the matter to a third party who will make a binding determination regarding this
matter. This type of settlement is called - ANSWER Arbitration
In order to enlarge your home by extending the side of your home beyond the setback
boundary, you must first obtain - ANSWER A variance
The direction opposite South 20 degrees West in a metes-and bounds description is -
ANSWER North 20 degree West
CORRECT 100%
The broker is guilty of culpable negligence. - ANSWER An investor wanted to build a
motel. A broker showed him three choice sites zoned hotel-motel. The investor
promised to decide on a site in three weeks, so the broker took a two-week vacation.
When the broker returned, the investor bought one of these sites. The broker sold the
site, not knowing that the zoning on that site had been changed to industrial.
A tenant signs a six-month rental agreement. The owner of the rental unit hires a
property manager to collect rent and oversee the unit's maintenance. Who holds a
leasehold estate in the rental unit? - ANSWER Tenant
A licensed sales associate decides to have personalized key rings made. Which
statement is TRUE regarding the key rings? - ANSWER The name of the real estate
brokerage firm for which the associate works must be printed on the key rings.
FREC rules define a resident of Florida as a person who - ANSWER has resided in
Florida for at least four calendar months within the preceding year
Right of survivorship is contained in which tenancy? - ANSWER By the entireties
A real estate broker has been hired to manage an apartment complex on behalf of the
landlord. How must the broker as agent handle the receipt of security deposits and
advance rent? - ANSWER Place the funds in the broker's escrow account
Which standard can be used for judging whether an item is a fixture? - ANSWER
Relationship or agreement of the parties
A commercial tenant pays a fixed rent each month. The landlord pays the property
taxes, hazard insurance, and maintenance expenses. The tenant has what type of
lease? - ANSWER Gross
How is a new purchase money mortgage (PMM) entered on a closing statement? -
ANSWER Debit buyer and credit seller
A licensed Florida real estate broker resides in Panama City, Florida. The broker
decides to keep open his real estate office in Panama City but reside in Mississippi.
Which statement applies to this situation? - ANSWER The broker must notify the
Commission of his change in residency within 60 days of moving out of state.
A homeowner is considering replacing his five-year old fiberglass shingle roof with a title
roof. The cost to replace the roof is $35,000, though an appraiser has advised the
, homeowner that he will only get about $15,000 in added value for the tile roof. The
appraiser would classify this as - ANSWER an over improvement.
Which action associated with water rights will cause the uncovering of additional land
caused by the gradual receding of water? - ANSWER Accretion
In states that subscribe to the title theory, a mortgage - ANSWER transfers the title to
the mortgagee or an agent until the loan is paid
Which remedy for breach of contract requests that the courts award damages for the
extent of loss suffered? - ANSWER Compensatory damages
Which lien is classified as a voluntary lien? - ANSWER Vendor's lien
In Florida, when a mortgage loan is paid off, which instrument is prepared by the lender
and given to the borrower? - ANSWER Satisfaction of Mortgage
A buyer offered $225,000 for a seller's property. The seller countered at $250,000. The
buyer did not accept the seller's counteroffer. The seller told her broker that she was
revoking the counteroffer and accepting the buyer's original offer. Which statement is
TRUE regarding this situation? - ANSWER The seller can revoke her counteroffer and
accept the buyer's original offer up until the time the buyer rejects the counteroffer.
A prospective purchaser of a residential condominium unit sends written notification to
the listing broker stating her desire to cancel the contract within the allowable rescission
period. The seller instructs the broker to retain the earnest money deposit as liquidated
damages. The broker is legally authorized to - ANSWER return the deposit to the buyer
Which action does NOT terminate a single-agent brokerage relationship with the seller?
- ANSWER Fulfillment of the brokerage relationship's purpose
An owner of an apartment complex pays $50 to each tenant who refers a person who
becomes a tenant. This arrangement. This arrangement is - ANSWER an illegal
kickback
A buyer and a seller are disputing a contract for sale and purchase. They agree to
submit the matter to a third party who will make a binding determination regarding this
matter. This type of settlement is called - ANSWER Arbitration
In order to enlarge your home by extending the side of your home beyond the setback
boundary, you must first obtain - ANSWER A variance
The direction opposite South 20 degrees West in a metes-and bounds description is -
ANSWER North 20 degree West
