Page 1 of 113
FL REAL ESTATE CHAPTER 1 TO 6 EXAM ALL 450
QUESTIONS AND CORRECT DETAILED SOLUTIONS
JUST RELEASED THIS YEAR
QUESTION: A licensed real estate broker has been hired by a lender to appraise a home for a
buyer who has applied for an FHA loan. Which statement is TRUE regarding this situation?
A)The broker may not accept this appraisal assignment because to do so is a conflict of interest.
B)The broker may not charge for this assignment.
C)The broker is required to be a state-certified appraiser to perform this appraisal assignment.
D)The broker's license entitles him to appraise this property. - ANSWER✔✔The broker is
required to be a state-certified appraiser to perform this appraisal assignment.
QUESTION: In a deed, the warranty of quiet enjoyment pertains to - ANSWER✔✔peaceful
possession undisturbed by others' claims of title.
QUESTION: Which item is entered on the Closing Disclosure as a credit to the seller?
A)Seller's mortgage paid off at closing
B)Prorated property taxes that have not been paid prior to closing
C)Prepaid rent on rental property
D)Purchase price - ANSWER✔✔D)Purchase price
, Page 2 of 113
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 statement does NOT describe a planned unit development? A.Dwelling units
are typically clustered, with planned green space areas between clusters.
B.The open space areas are maintained by a community association.
C.A variety of types of housing may be used.
D.Industrial parks are a welcomed offshoot of the PUD concept. - ANSWER✔✔D.Industrial parks
are a welcomed offshoot of the PUD concept.
QUESTION: The purchase price of a business minus the value of the tangible assets of that
business equals the intangible assets of the business. This is called - ANSWER✔✔goodwill
, Page 3 of 113
QUESTION: A seller transfers title to a buyer with a general warranty deed. In which clause of
the deed does the seller define the quality of ownership interest conveyed to the buyer? -
ANSWER✔✔Habendum
QUESTION: A property closes on June 10, with the day of closing charged to the buyer. The
buyer is assuming the seller's mortgage loan with its principal balance of $227,500 at 4.5%
interest. Which entry will appear on the closing disclosure? - ANSWER✔✔Debit to seller and
credit to buyer in the amount of $252.43
QUESTION: A real estate broker is accused of taking money from the company escrow account
to pay personal expenses. The broker decides that she does not want to go through the hearing
process so the broker turns over her real estate license to the DBPR. What term describes this
situation? - ANSWER✔✔Voluntary relinquishment for permanent revocation
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.
, Page 4 of 113
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.
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
FL REAL ESTATE CHAPTER 1 TO 6 EXAM ALL 450
QUESTIONS AND CORRECT DETAILED SOLUTIONS
JUST RELEASED THIS YEAR
QUESTION: A licensed real estate broker has been hired by a lender to appraise a home for a
buyer who has applied for an FHA loan. Which statement is TRUE regarding this situation?
A)The broker may not accept this appraisal assignment because to do so is a conflict of interest.
B)The broker may not charge for this assignment.
C)The broker is required to be a state-certified appraiser to perform this appraisal assignment.
D)The broker's license entitles him to appraise this property. - ANSWER✔✔The broker is
required to be a state-certified appraiser to perform this appraisal assignment.
QUESTION: In a deed, the warranty of quiet enjoyment pertains to - ANSWER✔✔peaceful
possession undisturbed by others' claims of title.
QUESTION: Which item is entered on the Closing Disclosure as a credit to the seller?
A)Seller's mortgage paid off at closing
B)Prorated property taxes that have not been paid prior to closing
C)Prepaid rent on rental property
D)Purchase price - ANSWER✔✔D)Purchase price
, Page 2 of 113
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 statement does NOT describe a planned unit development? A.Dwelling units
are typically clustered, with planned green space areas between clusters.
B.The open space areas are maintained by a community association.
C.A variety of types of housing may be used.
D.Industrial parks are a welcomed offshoot of the PUD concept. - ANSWER✔✔D.Industrial parks
are a welcomed offshoot of the PUD concept.
QUESTION: The purchase price of a business minus the value of the tangible assets of that
business equals the intangible assets of the business. This is called - ANSWER✔✔goodwill
, Page 3 of 113
QUESTION: A seller transfers title to a buyer with a general warranty deed. In which clause of
the deed does the seller define the quality of ownership interest conveyed to the buyer? -
ANSWER✔✔Habendum
QUESTION: A property closes on June 10, with the day of closing charged to the buyer. The
buyer is assuming the seller's mortgage loan with its principal balance of $227,500 at 4.5%
interest. Which entry will appear on the closing disclosure? - ANSWER✔✔Debit to seller and
credit to buyer in the amount of $252.43
QUESTION: A real estate broker is accused of taking money from the company escrow account
to pay personal expenses. The broker decides that she does not want to go through the hearing
process so the broker turns over her real estate license to the DBPR. What term describes this
situation? - ANSWER✔✔Voluntary relinquishment for permanent revocation
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.
, Page 4 of 113
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.
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
