FL REAL ESTATE EXAM - MAGNOLIA SCHOOL
ALL TERMS|QUESTIONS AND 100% CORRECT
ANSWERS|LATEST 2025/2026|GUARANTEED A+
What is leverage? - ANSWER Use of borrowed funds to purchase assets or to finance
an investment
How is the binder deposit notated on the closing disclosure? - ANSWER Credit buyer -
BDCB
What is the status of a sales associates license but they do not complete the required post
licensing education prior to their first renewal cycle - ANSWER Null and void
How many sections are in a Township? - ANSWER 36 (square miles)
Which mortgage clause allows the mortgagee the right to demand the outstanding loan
balance plus secured interest in the event that the borrower sells or transfers any interest in
the property without the lenders prior written consent - ANSWER Due on sale clause
What requirement is not apply regarding dwellings built prior to 1978 -
ANSWER Buyers must have the property inspected for lead-based paint
Two close friends on a daycare center as joint tenants with the right of Survivorship. One
owner passed away, who owns the daycare center? - ANSWER Surviving owner
becomes soul owner of the daycare center by operation of law
The subject property is a three-bedroom, two-bath home. A comparable property is a three-
bedroom, two and one-half-bath home. An appraiser has determined that the extra half
bath is worth about $2,200. What adjustment should the appraiser make? -
ANSWER Subtract $2200 from the comparable
Which of the following is incorrect concerning FHA and VA mortgages? - ANSWER VA
is the government insured loan and could be accompanied by an origination fee
1
Wicky
,FHA (Federal Housing Administration) mortgage - ANSWER Government insured loan
Origination fee
VA (Veterans Affairs) mortgage - ANSWER Government guaranteed loan
Funding fee
Origination fee
What lien takes priority first and second? - ANSWER Property Tax, Special Assessment
Intangible tax is noted on the closing disclosure as - ANSWER Debit to the buyer
What is a blind ad? - ANSWER Doesn't list the realty company or brokerage
Which of the following is a penalty for first time minor violation that is not accompanied by a
fine? - ANSWER Notice of noncompliance
Nonlicensed assistants may perform which activity? - ANSWER Handout objective
written information on a rental property
Two brothers have decided to purchase investment property in or not sure how they want to
take title. The brothers wives have looked into the options and have decided that in the
event that one of the brothers die, his wife would like to receive title. With his information
how would they take title? - ANSWER Tenancy in Common
A father intended to leave his house to a son and executed a general warranty deed to the
property and gave it to her son. Shortly after, the father died, before the deed could be
recorded. Which applies? - ANSWER This one has title to the property because title to
the property was conveyed when the father delivered the deed to his son and his son
voluntarily excepted it
2
Wicky
,Which of the following clauses or covenants in a deed states that the grantor owns the
property and has the right to convey it? - ANSWER Covenant of seisin (own it and have
right to sell it)
Amy, Bob, Frank, and Francine all co-own of Beach House on St. Petersburg Beach. Frank
died, and his co-ownership of the property passed, according to his will, to his son. How do
these parties own the property? - ANSWER Tenants in common
Which statement is true about the monthly payments on a 30-year fully amortized loan? -
ANSWER Initially, interest is the largest portion of the payment
beginning of loan - ANSWER most payments go to interest
What are the rights flowing through your property called? - ANSWER Riparian rights
If a sales associate picks up an escrow check on Tuesday, when does the broker have to
deposit it into the escrow account? - ANSWER Immediately, as defined, by Friday / 3
business days
If the title company is holding the escrow check, what must be on the purchase and sales
contract regarding the title company? - ANSWER The name, address, and phone
number of the title company
A broker sold an up-to-date and accurate rental list to a customer on June 10th for $475.00
On June 14th the customer decided not to obtain a rental and then orally demanded, and
should receive, how much of a refund? - ANSWER $356.25 - only within 30 days -
mistake 100% get back - didn't like the list then 75%
Which statement is false concerning the primary mortgage market in the secondary
mortgage market? - ANSWER The primary objective of the second mortgage market is
to create new loans for borrowers to increase the money supply for lenders
3
Wicky
, Primary mortgage market - ANSWER Always between the buyer(borrower) and lender
Consists of lenders that originate new mortgage loans for borrowers.
Secondary Mortgage - ANSWER An existing loan is bought
What part of an adjustable rate mortgage adjusts? - ANSWER Index
What are the two components of an adjustable rate mortgage? - ANSWER Index and
margin
Which of the following methods of surveying property is used in subdivision where plat
maps have been recorded? - ANSWER Law and block aka plat method
Plat maps or subdivision survey method is? - ANSWER Lot and block
What type of notice is also called legal notice and is achieved by recording documents in
public records? - ANSWER Constructive notice
In which theory of lending does a borrower retain ownership (title)? - ANSWER Lien
theory
What title theory state is Florida? - ANSWER Lien theory state (long and LEAN)
In what theory of lending does the borrower not retain ownership(title) during the loan
period? - ANSWER Title theory
If you were at the POB and you are headed and N90° east, what direction are you headed? -
ANSWER East=90°
4
Wicky
ALL TERMS|QUESTIONS AND 100% CORRECT
ANSWERS|LATEST 2025/2026|GUARANTEED A+
What is leverage? - ANSWER Use of borrowed funds to purchase assets or to finance
an investment
How is the binder deposit notated on the closing disclosure? - ANSWER Credit buyer -
BDCB
What is the status of a sales associates license but they do not complete the required post
licensing education prior to their first renewal cycle - ANSWER Null and void
How many sections are in a Township? - ANSWER 36 (square miles)
Which mortgage clause allows the mortgagee the right to demand the outstanding loan
balance plus secured interest in the event that the borrower sells or transfers any interest in
the property without the lenders prior written consent - ANSWER Due on sale clause
What requirement is not apply regarding dwellings built prior to 1978 -
ANSWER Buyers must have the property inspected for lead-based paint
Two close friends on a daycare center as joint tenants with the right of Survivorship. One
owner passed away, who owns the daycare center? - ANSWER Surviving owner
becomes soul owner of the daycare center by operation of law
The subject property is a three-bedroom, two-bath home. A comparable property is a three-
bedroom, two and one-half-bath home. An appraiser has determined that the extra half
bath is worth about $2,200. What adjustment should the appraiser make? -
ANSWER Subtract $2200 from the comparable
Which of the following is incorrect concerning FHA and VA mortgages? - ANSWER VA
is the government insured loan and could be accompanied by an origination fee
1
Wicky
,FHA (Federal Housing Administration) mortgage - ANSWER Government insured loan
Origination fee
VA (Veterans Affairs) mortgage - ANSWER Government guaranteed loan
Funding fee
Origination fee
What lien takes priority first and second? - ANSWER Property Tax, Special Assessment
Intangible tax is noted on the closing disclosure as - ANSWER Debit to the buyer
What is a blind ad? - ANSWER Doesn't list the realty company or brokerage
Which of the following is a penalty for first time minor violation that is not accompanied by a
fine? - ANSWER Notice of noncompliance
Nonlicensed assistants may perform which activity? - ANSWER Handout objective
written information on a rental property
Two brothers have decided to purchase investment property in or not sure how they want to
take title. The brothers wives have looked into the options and have decided that in the
event that one of the brothers die, his wife would like to receive title. With his information
how would they take title? - ANSWER Tenancy in Common
A father intended to leave his house to a son and executed a general warranty deed to the
property and gave it to her son. Shortly after, the father died, before the deed could be
recorded. Which applies? - ANSWER This one has title to the property because title to
the property was conveyed when the father delivered the deed to his son and his son
voluntarily excepted it
2
Wicky
,Which of the following clauses or covenants in a deed states that the grantor owns the
property and has the right to convey it? - ANSWER Covenant of seisin (own it and have
right to sell it)
Amy, Bob, Frank, and Francine all co-own of Beach House on St. Petersburg Beach. Frank
died, and his co-ownership of the property passed, according to his will, to his son. How do
these parties own the property? - ANSWER Tenants in common
Which statement is true about the monthly payments on a 30-year fully amortized loan? -
ANSWER Initially, interest is the largest portion of the payment
beginning of loan - ANSWER most payments go to interest
What are the rights flowing through your property called? - ANSWER Riparian rights
If a sales associate picks up an escrow check on Tuesday, when does the broker have to
deposit it into the escrow account? - ANSWER Immediately, as defined, by Friday / 3
business days
If the title company is holding the escrow check, what must be on the purchase and sales
contract regarding the title company? - ANSWER The name, address, and phone
number of the title company
A broker sold an up-to-date and accurate rental list to a customer on June 10th for $475.00
On June 14th the customer decided not to obtain a rental and then orally demanded, and
should receive, how much of a refund? - ANSWER $356.25 - only within 30 days -
mistake 100% get back - didn't like the list then 75%
Which statement is false concerning the primary mortgage market in the secondary
mortgage market? - ANSWER The primary objective of the second mortgage market is
to create new loans for borrowers to increase the money supply for lenders
3
Wicky
, Primary mortgage market - ANSWER Always between the buyer(borrower) and lender
Consists of lenders that originate new mortgage loans for borrowers.
Secondary Mortgage - ANSWER An existing loan is bought
What part of an adjustable rate mortgage adjusts? - ANSWER Index
What are the two components of an adjustable rate mortgage? - ANSWER Index and
margin
Which of the following methods of surveying property is used in subdivision where plat
maps have been recorded? - ANSWER Law and block aka plat method
Plat maps or subdivision survey method is? - ANSWER Lot and block
What type of notice is also called legal notice and is achieved by recording documents in
public records? - ANSWER Constructive notice
In which theory of lending does a borrower retain ownership (title)? - ANSWER Lien
theory
What title theory state is Florida? - ANSWER Lien theory state (long and LEAN)
In what theory of lending does the borrower not retain ownership(title) during the loan
period? - ANSWER Title theory
If you were at the POB and you are headed and N90° east, what direction are you headed? -
ANSWER East=90°
4
Wicky
