FL Real Estate License Renewal Study Set 2024

Code of Ethics: Duties to clients and customers: - 1. Do not provide misleading information 2. Represent both parties in the same transaction only after full disclosure and with both parties being consented and informed. 3. Submit all offers and counteroffers quickly and objectively. 4. Maintain the obligation to preserve confidential information during and following the termination of a clients relationship. 5. Avoid exaggeration, misrepresentation or concealment of pertinent facts relating to the property or transaction. 6. Cooperate with other brokers except when cooperation is not in the clients best interest. 7. Inform sellers or purchasers of the licensee's own interest in a or any interested product or service. 8. Do not accept any type of commission, rebate or profit on expenditures made for the client without the clients knowledge and consent. 9. Do not accept compensation from more than one party, even if permitted by law without disclosure and consent from all parties. 10. Keep a special account in a good financial intuition, sperate from personal funds for monies related to real estate transactions. 11. Provide agreements to all parties. When presenting themselves to the public, who may use the designation of REALTOR? - Members of NAR Which duties are apart of NAR code of ethics? – 1. Duties to clients and customers. 2. Duties to the public in general 3. Duties to other real estate licensee's. What is a common NAR designation? - Graduate REALTOR institute Real estate professional is expected to have expert knowledge in which three areas? – 1. Valuation 2. Marketing 3. Property Transfer What are the most commonly used forms? – 1. Sales and purchase contract addeumdum. 2. Brokerage relationship disclosure. 3. Listing Contracts 4. Lead paint notices 5. Sellers's property disclosure. 6. Leases and intent to enter into a lease. 7. Commission agreements. Real Estate Law: F.S. 455 - Law that regulates specific professions, including real estate. Real Estate Law:F.S. 475 - Is the law that regulates, real estate licensees, schools and appraisers. F.A.C. 61J2 - FERC was formed to enforce the Florida Real Estate Law in F.S. 475. Foreign Investment in Real Property Tax Act: - Is concerned with the sale of residential real property in excess of over 300k when the property is owned by a foreign investor. Who enforces the code of ethics? - local real estate boards What are considered to be extenuating, and reduce the degree of culpability? - Mitigating circumstances The commission has heard cases where the sales associate's employing broker does not handle property management, so the sales associate set up their own company to handle property management. - If a licensee acts as an investor, the licensee must ensure that all parties are aware that the licensee is not acting as what? - Real Estate Licensee A licensee who practices beyond their scope as a sales associate could be subject to a full disciplinary hearing and what other penalty for their first violation? - First violation may include a fine from $250 to $1,000 and license suspension to revocation. Whom must the commission inform when any disciplinary action is taken against any of its licensees according to F.S. 475.455? - The commission must inform the Division of Florida Condominiums, timeshares and mobile homes. Which disciplinary action would typically result for minor violations of F.S. 475 or F.A.C 61J2? - Minor Violations may be dealt with by issuing a citation or notice of noncompliance. What needs to happen if a name or trade name is lawfully changed? - A request for the reissuance of the license or registration must be filed and the license or registration must be reissued. Opening an entity, corporation, or llc to operate under is considered a change of name. When a sales associate changes employer what must they do? - They must notify the commission of the change no later than 10 days after the change by using the form provided by the commission. What must a licensee do if their address changes? - A licensee if required to notify the department in writing of their current mailing address and any change in the current mailing address within 10 days after the change. What must a licensee do if they become a non-resident? - They must notify the commission within 60 days of the change in residency and comply the nonresident requirements. Failure to do so may results in a penalty. What does Florida real estate law require for reporting to the DBPR? - Changes of name, employer, mailing address, residency and criminal convictions to the Department. When advertising what must the sales associates must include? - Licensed name if the brokerage firm under which the sales associate is employed. What must a sales associate do if they receive a deposit? - Must deliver it to the broker or employer no later than the end of the next business day. If a licensee advertises false, inaccurate, misleading, or exaggerated information, in addition to being issued a citation, hoe much would they likely be fined? - $500 A potential customer can choose which type of representation? - Authorized brokerage relationship by electing to be represented as a transaction broker, single agent, or a no broker relationship. Brokerage relationship duties: - 1. No brokerage - only duties are deal honestly/fairly, account for all funds, and disclose all known facts that affect the value of residential property. 2. Transaction broker - some duties include limited confidentiality and additional agreed duties. 3. Single agent - some duties include confidentiality, obedience, loyalty and full disclosure. When is agency relationship created? - When a broker accepts employment under a single agency agreement. Any attempt to represent both parties in a transaction would create an illegal dual agency. All licensees in any relationship must? - 1. Deal honesty and fairly 2. Account for all funds. 3. Disclose all known facts that affect the value of the residential property. Single agent relationships must? - 1. Confidentiality 2. Obedience 3. loyalty 4. Full disclosure those are all of the fiduciary duties Which Statute regulates Florida Real Estate Licensees, schools, and appraisers? - Chapter 475 Once a sales associate receives a deposit from a buyer, he must give it to their employing broker during what time frame? - They must give it to their broker by the end of the next business day. which shows the penalties for violations of Florida real estate license law in order of least to most severe? - Fine, suspension, revocation Which Florida Administrative Code authorizes the FERC to enforce rules against its members? - 61j2 Licensees, in providing real estate services to the public, are bound to provide the following duties: - 1. disclosure of all known facts affecting the value of the property. 2. accounting for all funds 3. dealing honestly and fairly. Which brokerage relationship situation is not permitted in the following instance under Florida laws and rules? - representing a buyer with LIMITED confidentiality in a single agency relationship. Sales associates must accomplish all of the following before their first renewal deadline Except: - Pass a state post-licensing exam with a 75%. After the 1st renewal has be completed, what is the license status if the licensee fails to complete their 14 hours of continuing education by the 2nd renewal date? - reverts to involuntarily inactive: licensee has 12 months to complete the 14 hours of CE and pay a late fee. What term refers to a real estate related financial transaction that a federal financial institution regulatory agency (FFIRA) has either contracted for or regulates, and requires the services of an appraiser? - A federally related transaction. Title XI of FIRREA was directed toward the appraisal profession and required that appraisals utilized by federally regulated lenders in federally related transactions be developed and reported in conformity with what entity? - Uniform Standards of Professional Appraisal Practice (USPAP) A variety of situations may call for an appraisal. What is a valid reason? - 1. Federal income tax 2. Federal estate taxes 3. real estate tax assessments 3. eminent domain 5. investment planning 6. insurance claims Under what condition may a real estate licensee who is not a state certified appraiser perform an appraisal? - perform an appraisal under the real estate license law if the valuation is not to be used in a federally related transaction. valuation - - is the process of determining the value of real property as of a given date. value - - is defined by USPAP as an opinion of the worth of a property at a given time in accordance with a specific definition of value. principal pf contribution - - States that the value of a component of the property is the amount it increases the total value of the property: in other words, the amount by which the value of the property would decrease by its absence. Principle of Progression - - when a lower-priced property is built in an area that consists of more expensive property. Principle of substitution - - No one would pay more than the amount necessary to acquire an acceptable substitute. What is the purpose of an appraisal? - The purpose is to estimate some type of defined value. What is the intended use of an appraisal? - The us of an appraiser's reported appraisal, opinions and conclusions, or other valuation services by the appraisal client is referred to as its intended use. Which type of value is the value assigned by the property appraiser for ad valorem tax purposes? - Assessed Value A seller remodels the kitchen, adding $30,000 to the value of the property. What is this $30,000 referred to in appraisal terms? - Principle of contribution Tim and Sue have the smallest house in a sought after neighborhood. The value of their home is increased because of the higher value of the other homes in the neighborhood. Of which appraisal principle is this an example of? - Principle of progression The comparable sales approach is based on the appraisal principle of substitution. Which statement best demonstrates this principle? - Principle of substitution- This principle is the basis for all mathematical methods which are used by appraisers to estimate value. Which of the following terms best describes the amount which is actually paid in a real estate transaction? - Price What is the appraisal process? - 1. Problem Indentification 2. Scope of Work 3. Data collection and analysis 4. Apply the Three Approaches to Value 5. Reconciliation of the value indications and final opinion of Value. 6. Report the defined Value. When performing the data collection and analysis step of an appraisal, all of the following are conditions for highest and best use analysis are what? - 1. Legally permissible 2. Physically possible 3. Financially feasible/ or Maximally productive. What reporting process is preferred for most residential appraisals? - Form reports Cost-Depreciation Approach(Appraisal) - - is used to estimate the current cost of reproducing or replacing a building, minus an estimate for depreciation, plus the value of the land. What are the 3 approaches to value that typically used by a certified appraiser that include what? - 1. Income 2. Cost-depreciation 3. Comparable sales approach. Which principle of value is the comparable sales approach based on? - Principle of substitution What should you focus on when making CMA'S? - recently sold properties, usually those sold within the last 6 months. When preparing a CMA, you should consider which principles of value? - 1. Substitution 2. Change 3. Competition 4. Conformity 5. Contribution Adjusting the comparable : Matched Pair - - entails estimating the value of various physical differences by locating other properties that have sold in the area, of which, one that has a particular feature you are trying to value and another one that does not. Adjusting the comparable: Square Footage Technique - - may very well be the most used method to adjust the comparable. It is easy to ascertain the sold price per square foot in any given area. Why is the information on pending sales not as reliable as the information on recently sold homes? - The price you see on the pending sale is the listing price, NOT the final sale price. What information is obtained about the subject property is obtained as part of the first step of preparing a CMA? - 1. Information about the neighborhood, the home site and the existing property features. 2. Advise your customers to access the internet for subjective information regarding the quality of the local schools, hospitals, municipal departments and crime rates. What is a broker price opinion? - Is an estimate of the value for a property (real estate asset) owned by the bank. A lender requests an opinion of value for a bank-owned property. Which valuation method would most likely need to be performed? - Broker Price Opinion. (BPO) A BPO is sometimes referred to as what? - Automated Valuation Model (AVM) A is an assets management company that handles the entire process from the time it is assigned to a broker to the sale. - Outsourcer Who in the state of FL can prepare a BPO? - Anyone who holds an active broker, sales associate or appraisal license. Chris inherited property and found out if he left the existing structures untouched, the property would be worth $500,000. An appraisal estimates the property to be worth $800,000 if he spends about $150,000 improving the rest estate. He elects to make the recommended improvements. which appraisal applies to this situation? - Highest and best use Title XI of FIRREA requires appraisals used in federally-related transactions to be developed in conformity with which standards? - USPAP You are listing a property for sale tonight and have done your CMA. The subject property you are listing has 4 bedrooms but one of the comparable you used only has 3 bedrooms. What should your adjustment be? - Add the value of a bedroom to the comparable. Typically apprasiers employ which 3 appraisal methods? - 1. Cost - depreciation 2. Income approach 3. Comparable sale approach A lender has come into ownership of a property due to a foreclosure. This type of property is commonly called a Real Estate Owned(REO) property. In order to determine the value of the property, what would the lender request? - BPO Prospecting - - Is the process of looking for new business; this process never stops. Expired listings: - Are listings for properties that were placed on the market but failed to sell. Geographic farms - - area is a specific geographic location, subdivision or area in which you choose to concentrate your activities. What is the best way to find buyers? - The best way to find buyers is to have listings. What is push marketing? - Is the traditional form of marketing that is used by real estate professionals. What is pull marketing? - is about developing relationships that attract your ideal client to you. It is social media in all its forms. What is tombstone advertisement? - It is any type of advertising that is put in front of consumers whose results cannot be measured. EX. Bus bench advertising, billboards, stadium advertising. What is direct response advertising? - is any type of advertising that can be measured by the direct response of a consumer. EX. a Google per-per-click campaign can be measured by the number of clicks. If you have a potential buyer for a FSBO property, what type of document might you use to negotiate a showing? - One time showing contract Which of the following is an example of a call to action statement? - It tells the recipient what to do next. Ex. Call now What should you bring to a listing presentation appointment? - 1. The listing presentation manual 2. All support material for the listing presentation, newspaper articles, magazine articles, internet articles, market statistics and facts. 3. Examples of all of your marketing materials. 4. The CMA 5. Two listing agreements completed with the seller's information, except for the price. 6. Sellers Property Disclosure Statement 7. Digital camera 8. Laser rangefinder or tape measure 9. Legal Pad 10. Calculator and flashlight Which home staging and preparation tip is suggested to help make a home more appealing to a seller? - First impressions are crucial. What is a listing contract? - Is an employment agreement between your broker and a property owner, which establishes the agreed-upon terms, such as asking price, term of the listing, obligations of the owner, and obligations of the broker under the contract. What is an open listing? - The owner agrees to pay a commission to any broker who provides a buyer willing to purchase the property under a price and terms agreeable to the owner. An open listing is a one-sided contract. What is exclusive agency or exclusive listing? - The owner can list the property with only one broker. This type of listing is a bilateral contract. What is an exclusive right of sale listing - Must be in writing and signed. This is a bilateral contract. The owner can list with only one broker and the owner agrees to pay the listing broker regardless of who actually finds the buyer. The broker is best protected by this type of listing agreement. What is a net listing? - Is technically NOT a type of listing. an owner sets a minimum amount that he wants to receive from the sale of the property. The Broker's commission is any amount above the set minimum, provided that amount does not exceed the commission amount agreed upon in the listing contract. Which type of listing allows an owner to list his property with more than one broker? - Open listing Which type of listing contract is a bilateral contract where the listing broker gets paid regardless of who actually finds the buyer? - Exclusive right of sale listing A sellers cancellation fee is found in which section of the exclusive right of sale listing contract? - Conditional termination A time - tested method for writing good advertising is referred to as the AIDA standard. The AIDA standard says that if you want your ads to get results, they must capture the reader's what? - Attention, arouse interest in your product, create a desire for the prompt. What is the primary criticism sellers have about their brokers? - Lack of communication A seller decides not to list their house by conventional means and elects to list their property with many brokers at the same time. They agree to pay a commission to the successful broker. This type of listing is called what? - Open listing An open listing means that the owner agrees to pay a commission to any broker who provides a buyer willing to purchase the property under a price and terms agreeable to the owner. An owner can give an open listing to any number of brokers. Which of the following is a characteristic of an exclusive right of sale listing contract? - It may be placed on the MLS One document serves as a contract between the listing brokerage and the seller. What is it called? - The listing contract Which activity should you employ during a listing presentation at the seller's home? - View the entire home including the garage and exterior. All of the following items would be included in a good listing presentation, EXCEPT: - Completed Seller's Property Disclosure Statement The marketing plan you present to the sellers should not include what? - Client testimonials What is a institutional lender? - Is any financial institution whose loans and lending practices are regulated by law. Examples are commercial banks, savings associations and life insurance companies. What is a noninstitutional lender? - Is an entity whose real estate loans are not so strictly regulated by state or federal government agencies. What is a primary mortgage market? - is where borrowers and mortgage originators come together to negotiate terms and effect mortgage transactions. What is a syndicate? - Is a group of two or more people who unite their resources for the purpose of making and operating an investment. What is a pension fund? - collect contributions from workers and sometimes employers and then invest those funds to create a large money pool from which the workers may withdraw when they reach retirement. Mortgage loan originators - mortgage loan originators do not make loans. They arrange loans by taking applications and searching for lenders who offer the lowest interest rates and easiest borrower qualification. What is Ginnie Mae? - Its basic mission was to create and operate a mortgage- backed security program for the FHA and VA mortgages. What is Fannie Mae? - Was created in 1938 as a government-owned corporation for purchasing FHA loans. What is Freddie Mae? - The first security backed by conventional loans. What lenders are subject to "usury laws" which are laws that protect consumers by limiting the rate of interest that may be charged. - Noninstitutional lenders Which is an example of a secondary mortgage market lender? - Fannie Mae Which type of lender, organized as either a mutual or a stock company, is the largest source of funds for financing apartment complexes and commercial properties? - Life insurance company What is the term used for someone who arranges loans by taking mortgage applications and searching for lenders who offer the lowest interest rates and easiest borrower qualification, without actually making any loans? - Mortgage loan originator Where do borrowers and mortgage originators come together to negotiate terms and effect mortgage transactions? - Primary Mortgage Market Which of these entities is a shareholder owned company that works to make sure mortgage money is available for people across the country by making sure that lenders don't run out of mortgage funds? - Fannie Mae Which of these entities is a stockholder - owned, for-profit corporation, which operates as a function of the HUD? - Freddie Mac What is a loan to value ratio? - Is the ratio of the mortgage principal to the value of the property the borrowers are purchasing? What is amortization? - Refers to how the principal and interest are paid over the life of the repayment period. Which statement describes a characteristic of a fully-amortized, fixed rate loan when the borrower's monthly payments are the same amount each month and each payment includes both an interest and principal payment amount? - The borrower has the same payment amount every month. The payment goes first to the interest and then to the principal. How is the loan to value ratio typically used? - To determine the maximum amount of their loans. Alicia has a 30-year, fully amortizing, fixed-rate loan with fixed monthly payments, each containing a principal payment portion and an interest payment portion. Which statement is true regarding her monthly payments? - In the early years of the loan, the principal payment is very small, so it takes several years for the borrower to increase their equity in the property. However, closer to the end of the repayment period, the borrower's equity increases much more quickly. (More interest is paid at the beginning of the loan vs at the end.) Which basic features of most mortgage loans is used by the lender to cover loan costs and increase profit on their investment? - Loan fee's How is the loan to value ratio typically used? - Lenders use LTVs to determine the maximum amount of their loans. What is a conventional mortgage loan? - It is any loan that is not insured or guaranteed by an agency of the government. Conventional mortgage loans made by lending institutions, and private lenders are the predominate method in which single-family residences are financed. Usually, conventional mortgage loans are more difficult for a borrower to obtain than a mortgage under the FHA or VA programs. A fixed rate 30 year mortgage is a common conventional loan. Private Mortgage Insurance- - was introduced by the Mortgage Guarantee Insurance Corporation in 1957 and is currently available from several competing firms. Conventional Qualifying Ratios - - The housing expense ratio (Front end) is the combined principal, interest, taxes, and insurance payment divided by the borrower's gross monthly income. The conventional guideline is that the housing expense (front-end) ratio should not be greater than 28%. EX: If the borrowers PITI payment is $1,500 per month and their gross monthly income is $9,000, the housing expense ratio is 17%. What is a buydown? - The lump sum payment that is made to the lender at closing usually comes from a builder as an incentive to the buyer or from a family member who is trying to help. What is an open-end loan? - Is an expandable loan that gives a borrower a limit up which they borrow. What is a blanket loan? - Covers more than one piece of property. Land developers commonly use blanket mortgages when they buy a plot of land and divide it into many separate lots. What is a wraparound loan? - Mortgage allows a borrower who has an existing loan to get another loan from a second lender without paying off the first loan. What is a FHA loan? - The federal housing administration was established in 1934 during the great depression to stimulate the housing market. The FHA provides low-down payment loans to qualified buyers. What is a characteristic of a typical conventional loan? - Amortized over a specific time period. What is included in a PITI payment? - Principal, interest taxes and insurance. What is a blanket mortgage? - A loan that covers more than one piece of property that is commonly used by land developers who divide land into individual lots. What is a unique characteristic of an FHA loan, when compared to a conventional or VA loan? - They insure loans made by approved lending institutions, including a qualified mortgage companies, savings and loan associations, and commercial banks. FHA-insured loans protect lenders against any loss they might suffer from a borrowers default. What is primary seller financing? - When a seller is the only source of the buyer's financing. All of the following disclosure are required by the Truth-in-Lending Act? - Finance charge disclosure includes loan fees, interest, service charges and points. The lender must disclose all finance charges and the APR. TO which of the following does regulation Z (the truth in lending act) apply? - The answer is $75,000 condo loan. It does not apply to commercial loans or agricultural loans over $25,000. What does an applicant need to provide for substantial information when they submit an application for a loan? - 1. A purchase for the property in which they are interested. 2. Numbers of all of their bank accounts and the address of the bank's local branch. 3. Checking account statements from the previous or three months, plus savings account statements, if applicable. 4. Tax returns for the previous two years, recent pay stubs, w-2 withholding forms, or other proof of current employment and income verification. 5. Credit card bills for the past few months or canceled rent or utility checks. 6. Any information on other debt for which they get a monthly bill. The FICO score measures the applicant's willingness to meet debt obligations. What does the FICO score include in its measurements? - Payment history, outstanding debt, and credit history What is a foreclosure scheme? - target people with financial problems who are at risk of losing their home. Which statement best describes property flipping fraud? - If the appraisal information is fraudulent, the transaction is illegal. Most homes are financed with a fixed rate fully amortized loan. Which statement below describes features attributed with this type of loan - The amount applied towards the principal increases after each monthly payment. What Term refers to an individual who arranges for loans after taking mortgage applications from potential borrowers? - Mortgage loan originator The VA mortgage loan program contains what? - 1. Little/no down payment 2. Fixed rate loans 3. Funding Fees. Which type of lender provides the largest source of funds for the financing of shopping centers, office buildings, hotels and motels, industrial buildings and apartment complexes? - Life insurance companies All of the following characteristics apply to a typical conventional loan, EXCEPT - Payments of interest only The truth in Lending Act came into Existence to provide what? - 1. Triggering terms in advertising 2. Borrower's right to rescind the transaction 3. Disclosure of the APR If you have established a geographic , consistent Which of the following is a secondary mortgage lender? - Fannie Mae What is the process called where a lender initiates a new loan for a borrower? - Loan origination Which of the following charges are included in a typical mortgage PITI payment? - Insurance, Principal, Interest. Which of the following characteristics are associated with FHA loans? - Loan limits, Insured loans, Qualifying ratios The housing PITI (Principal, Interest, Taxes and insurance) payment and the borrower's other monthly obligations, divided by the borrower's gross monthly income is referred to as what? - Total obligations ratio A developer purchases a large plot of land with the intent of subdividing into many smaller lots and selling them off to individual buyers. What type of a loan would the developer secure for their initial purchase of the land? - Blanket mortgage Which fee is charged by a lender to cover administrative costs when making loans? - origination fee What is the best source for obtaining buyers? - Listing inventory mailings will not only generate listings but will also produce buyer inquiries on the listings you are promoting. - Farm area Open houses provide a high chance of what? - Obtaining a qualified buyer With the percentage of minority first time homebuyers increasing, it is good business for licensees to develop the skills to: - It is goof for business if licensees to develop the skills to reach the growing multicultural market of prospective homeowners. Based on the NAR 2016 profile of home buyers and sellers, approximately what percentage of homebuyers may consider themselves as a race other than Caucasian? - 25-30% Reports from the Brookings institution showed that minorities were responsible for the bulk of what population gains between 1990 and 2000? - Suburbs What demographic reversal was revealed by census data collected in ? - Showing that the major cities of the nation's largest metropolitan areas grew faster than their combined suburbs. What questions should be asked when interviewing a buyer? - 1. To further qualify the buyer 2. To give them an orientation of the entire process. 3. To get their loyalty. 4. TO get them to commit to buying. An experienced licensee should expect to be interviewed by prospective buyers and should be prepared to answer all questions. It is a good idea to proactively provide what to the buyer? - A Concise and professional looking flyer or fact sheet that introduces you, provides information related to your real estate history and qualifications, and contact information is a tool for helping the buyer build confidence in you. Working with unqualified buyers is a waste of your time. Upon an initial phone inquiry by a potential buyer, all of the following would be recommended - 1. Ask questions to determine the prospect's needs and motivation. 2. Obtain the name and phone number early in the conversation. 3. Do a quick search and suggest a specific property or two that would be interesting to the prospect. 12% of buyers purchased a multigenerational home. The top 3 reasons for purchasing a multi-generations; home were to take care of aging parents, cost savings, and childern over the age of 18 moving back home. - True Based on the NAR 2016 profile of home buyers and sellers report, heating and cooling costs were at least somewhat important to approximately what percentage of buyers? - 84% Seller's Real Property Disclosure Statement - - All sellers and brokers are required to disclose all material defects and of the property that are not readily visible to the buyer. What document does a broker use when seeking a paid commission from a buyer? - Exclusive Buyer Brokerage Agreement What is the suggested number of properties to be shown during one appointment? - a maximum of five. Option Contract - - Is a right to buy a property during a specified period, at a specified price. What is a statute of limitations on a "parol" contract - Written contract's is 5 years. Oral contracts are 4 years. What reasons are events that will terminate a contract? - Performance, Breach, Revocation, Mutual Rescission, Lapse of Time and abandonment. What is stated in the statute of Frauds? - Was intended to provide protection against fraud in the transfer of real property. It requires any contract for the transfer of right or interest in land to be in writing in order to be enforceable. What does "valuable consideration" refer to in a real estate transaction? - Anything of value, or a promise of value that can be enforced, such as a promissory note. What are the 4 essential elements of a legal contract? - 1. Lawful Subject 2. Agreement 3.Consideration 4. Competent parties The pending file - - I will create a file for every one of my sales transactions. It is essential that my pending file contains all relevant documents and correspondence. I have to keep the file current throughout the entire transaction and all brokers must maintain the files for at least 6 years or 2 years after the end of any litigation. You will have an abundance of email correspondence. to document it, you should: - Print a hard copy and place it in a file. As the transaction progresses, you will place which of the following documents in the file? - Written Proof of Escrow Deposits, Condo Doc Receipt, Inspection report, Inspection contingency release, Loan commitment, Condo Association Approval, Walk-Through acceptance form signed by the buyer, and the HUD-1 Settlement Statement. Which source typically generates the highest number of qualified buyers? - Listing inventory Which document gives licensees working with buyers the right to be paid for their services? - Exclusive Buyer Brokerage Agreement What two elements must exist for a real estate contact to be considered valid? - Offer and acceptance of all terms and conditions. During the initial contact with a buyer, the licensee's very first objective should be to determine what? - The buyer's motivation What is the main purpose of the statute of Frauds? - Specify that a contact for the sale of real estate must be in writing to be enforceable. What offers the best protection for licensees when presenting properties with known defects? - Have the seller prepare a seller's real property disclosure statement. What type of contract gives a buyer the right to purchase but not an obligation? - Option Contract What type of contract would a seller most likely use if they are listing a property that is in poor condition? - As-is contract What could a buyer do to ensure that the seller knows they are capable of completing the transaction? - Present a pre-approval letter All documents related to the real estate transaction should be kept for how long after closing? - 5 Years and for 2 years after the conclusion of litigation whichever occurs later What is essential element of a contract? - Lawful subject, Consideration, Competent parties The Florida Association of realtors residential contract for sale and purchase includes all of the following EXCEPT - Buyers credit score Which of the following should you be sure to do while showing property to potential buyers? - If the listing agent is present, let him do the selling - they know most about this property. When a seller of a home knows facts that materially affect the value of the property, are not readily observable, and are not known to the buyer, the seller has a duty to disclose them. This obligation also passes to whom? - The Licenesse What is one similarity between a flag lot and a key lot? - Both lot types may not conform to current building codes because of their narrow lot dimensions. What is a benefit to owning a corner lot? - Less privacy, potentially more traffic noise, facing two paving assessments when sidewalks need repair. What is substructure - - is located below grade and serves as a platform that supports teh weight of the entire building. Which type of roof is particularly susceptible to wear from standing water? - Flat roof Which component of a residential building id considered to be part of the substructure that supports the building's weight? - The foundation What is the main advantage of masonry exterior walls as opposed to framed exterior walls? - Additional strength and a stronger structure The R-value is a measurement of what aspect of a building? - The higher the R- value, the better the insulating characteristics of the materials. What type of door is prohibited for the use listed? - Hollow-core, metal interior door leading to the garage. What style of window, typically seen in older Florida homes, has a series of small horizontal panes that open and close all at once by turning a crank? - Jalousie windows Which type of plumbing supply line piping material still in use today for hot and cold water distribution, has been reported to lead around the joints? - PB (polybutylene) A temperature and pressure relief valve is an important safety feature of which component of a residential building? - Hot water heater Which system, referred to as an "on-demand" system, provides heated water only when needed? - Tankless water heater The plumbing system consists of water supply lines, water disposal lines, hot water heaters, and what else? - Plumbing Fixtures (sinks and toilets) Which of the following is a unit of measurement for rating the capacity of a heating or air conditioning system? - BTU's Which system uses the temperature of the subsoil to heat and cool a home? - Geothermal systems All of the following are heating systems found in Florida homes, EXCEPT: - ACMS were used in the past, but now are a health hazard. Which device is an important safety feature, designed to reduce the risk of electrical shock in aeras such as the kitchen and bathroom? - Ground Fault Interrupter What electrical device can be used to protect against overheating in an electrical system? - Circuit breakers Electrical Circuits have three components: A source, a path, and a load. Which item is an example of an electrical load? - Clothes dryer What is the relationship between watts, amps, and volts? - WATT = AMP X VOLT Which type of conductor, used, in residential wiring, has been linked to fires due to expansion and contraction that can cause the connection to loosen? - Aluminum