Page 1 of 113
FL REAL ESTATE EXAM ALL 6 CHAPTERS TEST BANK
COMPLETE 400 QUESTIONS AND WELL ELABORATED
ANSWERS JUST RELEASED
QUESTION: Which statement is FALSE regarding a corporation for profit that is doing business as
a real estate broker?
A. There must be at least one officer who is an active real estate broker.
B.The corporation must be registered with the FREC.
C.All stockholders must be registered with the FREC as inactive brokers.
D.The broker must file the articles of incorporation with the Florida Department of State. -
ANSWER✔✔C.All stockholders must be registered with the FREC as inactive brokers.
QUESTION: Which property is NOT covered under the Fair Housing Act?
A)Government-owned residential property
B)Multifamily housing of five or more units
C)Commercial property
D)Privately owned residential property listed by a broker - ANSWER✔✔C)Commercial property
QUESTION: The financial term applied to the use of borrowed funds to finance the purchase of
an office building is - ANSWER✔✔leverage.
, Page 2 of 113
QUESTION: A man is a 72-year-old retired college professor. The local lender to whom the man
applied for a 30-year mortgage denied the man's loan application, even though he has sufficient
income from his pension plan and an excellent credit history. - ANSWER✔✔The lender's actions
violate the Equal Credit Opportunity Act.
QUESTION: A lender quotes a mortgage loan of $265,000 at 4.5% interest. The monthly
payment is $1,342.72. How much of the first monthly payment will apply to interest? -
ANSWER✔✔$993.75
QUESTION: If a seller refuses to pay a broker her sales commission after the residential
property is sold, the broker may - ANSWER✔✔file a suit in the courts for her commission.
QUESTION: Three claimants are requesting relief from the Real Estate Recovery Fund. All three
claimants were named in a single judgment (the same real estate transaction). What is the
maximum payment from the Recovery Fund for this claim? - ANSWER✔✔$50,000
QUESTION: The following taxes were paid at the closing of a new home: $1,540 state
documentary stamp tax on the deed, $693 state documentary stamp tax on the note, and $396
state intangible tax on the mortgage. What was the purchase price of the home? -
ANSWER✔✔$220,000
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QUESTION: Which governmental entity must be informed when the FREC takes disciplinary
action against a real estate licensee? - ANSWER✔✔Division of Florida Condominiums,
Timeshares, and Mobile Homes
QUESTION: Local government exercises its greatest effect on the real estate business by -
ANSWER✔✔using zoning, taxation, and the planning process.
QUESTION: A man earned a $7,500 commission by selling a coin-operated laundry business,
which has six more years before the expiration of its present lease. The man - ANSWER✔✔must
be registered with the Florida Real Estate Commission as a real estate licensee.
QUESTION: A licensee makes a statement that is material to the transaction as though it were a
fact when the licensee does not know whether 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 - ANSWER✔✔fraud
QUESTION: A sales associate received a $5,000 earnest money deposit from a buyer. She
immediately delivered the deposit to her broker. The broker deposited the check on the third
business day into his general operating account. - ANSWER✔✔This is an example of
commingling of escrow funds.
, Page 4 of 113
QUESTION: The owner of a hardware store has filed for bankruptcy and the real estate is up for
sale. The money that the property will bring at auction is BEST described as which type of
value?
A)Liquidation value
B)Investment value
C)Going-concern value
D)Salvage value - ANSWER✔✔A)
Liquidation value
QUESTION: Which survey term is associated with a metes-and-bounds description? -
ANSWER✔✔Point of beginning
QUESTION: Which entity is a primary mortgage lender that does NOT accept demand deposits?
A)Credit unions
B)Savings associations
C)Commercial banks
D)Mortgage lenders - ANSWER✔✔Mortgage lenders
FL REAL ESTATE EXAM ALL 6 CHAPTERS TEST BANK
COMPLETE 400 QUESTIONS AND WELL ELABORATED
ANSWERS JUST RELEASED
QUESTION: Which statement is FALSE regarding a corporation for profit that is doing business as
a real estate broker?
A. There must be at least one officer who is an active real estate broker.
B.The corporation must be registered with the FREC.
C.All stockholders must be registered with the FREC as inactive brokers.
D.The broker must file the articles of incorporation with the Florida Department of State. -
ANSWER✔✔C.All stockholders must be registered with the FREC as inactive brokers.
QUESTION: Which property is NOT covered under the Fair Housing Act?
A)Government-owned residential property
B)Multifamily housing of five or more units
C)Commercial property
D)Privately owned residential property listed by a broker - ANSWER✔✔C)Commercial property
QUESTION: The financial term applied to the use of borrowed funds to finance the purchase of
an office building is - ANSWER✔✔leverage.
, Page 2 of 113
QUESTION: A man is a 72-year-old retired college professor. The local lender to whom the man
applied for a 30-year mortgage denied the man's loan application, even though he has sufficient
income from his pension plan and an excellent credit history. - ANSWER✔✔The lender's actions
violate the Equal Credit Opportunity Act.
QUESTION: A lender quotes a mortgage loan of $265,000 at 4.5% interest. The monthly
payment is $1,342.72. How much of the first monthly payment will apply to interest? -
ANSWER✔✔$993.75
QUESTION: If a seller refuses to pay a broker her sales commission after the residential
property is sold, the broker may - ANSWER✔✔file a suit in the courts for her commission.
QUESTION: Three claimants are requesting relief from the Real Estate Recovery Fund. All three
claimants were named in a single judgment (the same real estate transaction). What is the
maximum payment from the Recovery Fund for this claim? - ANSWER✔✔$50,000
QUESTION: The following taxes were paid at the closing of a new home: $1,540 state
documentary stamp tax on the deed, $693 state documentary stamp tax on the note, and $396
state intangible tax on the mortgage. What was the purchase price of the home? -
ANSWER✔✔$220,000
, Page 3 of 113
QUESTION: Which governmental entity must be informed when the FREC takes disciplinary
action against a real estate licensee? - ANSWER✔✔Division of Florida Condominiums,
Timeshares, and Mobile Homes
QUESTION: Local government exercises its greatest effect on the real estate business by -
ANSWER✔✔using zoning, taxation, and the planning process.
QUESTION: A man earned a $7,500 commission by selling a coin-operated laundry business,
which has six more years before the expiration of its present lease. The man - ANSWER✔✔must
be registered with the Florida Real Estate Commission as a real estate licensee.
QUESTION: A licensee makes a statement that is material to the transaction as though it were a
fact when the licensee does not know whether 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 - ANSWER✔✔fraud
QUESTION: A sales associate received a $5,000 earnest money deposit from a buyer. She
immediately delivered the deposit to her broker. The broker deposited the check on the third
business day into his general operating account. - ANSWER✔✔This is an example of
commingling of escrow funds.
, Page 4 of 113
QUESTION: The owner of a hardware store has filed for bankruptcy and the real estate is up for
sale. The money that the property will bring at auction is BEST described as which type of
value?
A)Liquidation value
B)Investment value
C)Going-concern value
D)Salvage value - ANSWER✔✔A)
Liquidation value
QUESTION: Which survey term is associated with a metes-and-bounds description? -
ANSWER✔✔Point of beginning
QUESTION: Which entity is a primary mortgage lender that does NOT accept demand deposits?
A)Credit unions
B)Savings associations
C)Commercial banks
D)Mortgage lenders - ANSWER✔✔Mortgage lenders
