Bob Hogue Practice Exam UPDATED ACTUAL Exam Questions and CORRECT Answers

Bob Hogue Practice Exam UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What authority originates from the U.S. Constitution and relates to protection of health and
welfare of citizens at local levels?
A)
Situs
B)
Community protection power
C)
Escheat
D)

Police power - CORRECT ANSWER - D)
Police power


Police power - The authority of government to protect the property, life, health, and welfare of
its citizens.


Situs refers to prospective buyers' preference for a certain area.


Escheat provides for a government, normally a state government, to take the property of an
owner who dies intestate and who has no known heirs entitled
to receive the property. The power of escheat is a practical solution to ensure that property is
always owned by someone.


You have been hired to appraise the local public library building. The approach that is likely to
be the MOST relevant is the
A)
comparable sales approach.

,B)
income approach.
C)
public land and property approach.
D)

cost approach. - CORRECT ANSWER - D)
cost approach.


single-family homes / a vacant lot in an established neighborhood - sales comparison approach


income-producing property - income approach


special-purpose properties like hospitals, schools, or government buildings, newly constructed
homes, cross-checking the other two approaches - cost approach


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?
A)
$75,000
B)
$1,000,000
C)
$150,000
D)

$50,000 - CORRECT ANSWER - D) $50,000
The maximum payment from the fund for a single transaction is $50,000

,T / F - Brokers and sales associates should NOT prepare deeds, mortgages, or promissory notes.
- CORRECT ANSWER - T - Unless they are also attorneys, brokers and sales associates
who prepare such legal documents could jeopardize their real estate licenses.


T / F - A buyer brokerage agreement is an employment contract between the brokerage and a
buyer. - CORRECT ANSWER - T - A buyer brokerage agreement is an employment
contract with a buyer.


T / F - The statute of limitations for an oral contract is five years. - CORRECT
ANSWER - F - The statute of limitations for an oral contract is four years.


T / F - Love and affection is an example of valuable consideration. - CORRECT
ANSWER - F - Love and affection is an example of good consideration because it cannot
be measured in terms of money.


T / F - An implied contract is one in which some or all of the obligations or conditions of a
contract are NOT stated expressly. - CORRECT ANSWER - T - With an implied contract,
the obligations or conditions of the contract may be reasonably implied by the acts of the parties
or by the nature of the transaction.


T / F - A signed sale contract between the time of signing and the time of title closing is an
executed contract. - CORRECT ANSWER - F - A sale contract between the time of
signing and the time the title is conveyed from the grantor to the grantee is an executory contract.


T / F - A real estate contract that includes a radon gas contingency is a voidable contract. -
CORRECT ANSWER - T - A real estate contract that includes a radon contingency is
voidable because if the contingency is not satisfied and released, the offer and acceptance
element of an enforceable contract is not met.


T / F - A real estate sale contract is an example of a bilateral contract. - CORRECT
ANSWER - T - A bilateral contract obligates both parties to perform in accordance with
the terms of the contract. A sale contract is a bilateral contract because both the seller and the
buyer are obligated to perform.

, T / F - The person making an offer is the offeree. - CORRECT ANSWER - F - The offeree
is the person receiving the offer.
makes offer - offeror
receives offer - offeree


T / F - An electronic signature can be accepted as part of a real estate contract. - CORRECT
ANSWER - T - Letters and other written communications, including a signature, may be
sent by electronic means or facsimile, and will be considered part of the contract.


T / F - A counteroffer will extend an offer. - CORRECT ANSWER - F - A counteroffer
kills the original offer.


The original law requiring that the annual percentage rate (APR) be disclosed to consumers was
the
A)
Florida "Little FTC Act."
B)
Equal Credit Opportunity Act.
C)
Truth in Lending Act.
D)

Real Estate Settlement Procedures Act. - CORRECT ANSWER - C. Truth in Lending Act
(TILA)


Constructive notice is
A)
notarizing a conveyance.
B)
information advertised in the newspaper.
C)