FREC Practice Test Questions With
Correct Answers
1. Which of the following statements is true regarding a mortgage loan originator
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(MLO)?
a. A mortgage loan originator is the same as a mortgage broker.
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b. A mortgage loan originator must have a separate license.
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c. A mortgage loan originator makes loans.
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d. A mortgage loan originator must have a real estate license. - CORRECT
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ANSWER✔✔-B
2. A real estate appraiser's fee for professional service is based on which of the
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following?
a. A percentage of the property's gross income.
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b. A percentage of the fair market value of the property.
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c. The time and difficulty of the appraisal.
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d. A percentage of the property's sales price. - CORRECT ANSWER✔✔-C
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3. Which of the following best describes the real estate brokerage business?
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a. Service business
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b. Simple business
| |
c. Business with few opportunities available
| | | | |
,d. Construction business - CORRECT ANSWER✔✔-A
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4. All of the following are responsibilities of a property manager, EXCEPT:
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a. Renting property for an absentee owner.
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b. Collecting rent.
| |
c. Overseeing maintenance.
| |
d. Preparing leases - CORRECT ANSWER✔✔-D
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5. What does the term "farming" refer to in real estate?
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a. Specializing in one geographic area
| | | | |
b. Working in a cooperative manner
| | | | |
c. Specializing in agricultural properties
| | | |
d. Specializing in the sales of orange groves or cattle farms - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-A
6. Which insurance policies can a real estate licensee offer to the public without
| | | | | | | | | | | | | |
additional state licensing?
| |
a. Flood insurance
| |
b. Fire insurance
| |
c. Renter's insurance
| |
d. None of the above - CORRECT ANSWER✔✔-D
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7. What is the purpose of the National Association of REALTORS?
| | | | | | | | | |
,a. Preserve the right of individuals to own real property through an exchange of
| | | | | | | | | | | | | |
information.
b. Organize antigovernment activities.
| | |
c. Promote unethical practice of real estate professionals.
| | | | | | |
d. Promote unethical practice of real estate professionals. - CORRECT
| | | | | | | | | |
ANSWER✔✔-A
8. What does the designation of REALTOR® signify?
| | | | | | |
a. Anyone in possession of a real estate license is a REALTOR®
| | | | | | | | | | |
b. The designation identifies the real estate professional as a member of the NAR.
| | | | | | | | | | | | |
c. The designation is evidence that the licensee has an extensive background in
| | | | | | | | | | | | |
the real estate profession.
| | |
d. The designation is evidence that the licensee has completed extensive real
| | | | | | | | | | | |
estate studies. - CORRECT ANSWER✔✔-B
| | | |
9. A developer contracts to build a home according to the buyer's specifications.
| | | | | | | | | | | | |
This is an example of which type of building?
| | | | | | | |
a. Tract
|
b. Custom
|
c. Speculative
|
d. Subdivision - CORRECT ANSWER✔✔-B
| | | |
10. Which of the following best describes licensees who are involved in business
| | | | | | | | | | | | |
brokerage?
, a. They must be able to analyze financial statements and understand balance
| | | | | | | | | | | |
sheets.
b. They are not required to know much about the business they are selling.
| | | | | | | | | | | | |
c. They must have a separate license.
| | | | | |
d. They never become involved in the tax aspects of the business. - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-A
11. Real estate licensees are required to be knowledgeable in all of the following
| | | | | | | | | | | | | |
areas, EXCEPT: |
a. Marketing
|
b. Valuation
|
c. Property transfer
| |
d. Accounting - CORRECT ANSWER✔✔-D
| | | |
12. Which service provided by real estate licensees requires the most experience
| | | | | | | | | | | |
and knowledge?
|
a. Property management
| |
b. Counseling
|
c. Appraising
|
d. Agricultural sales - CORRECT ANSWER✔✔-B
| | | | |
13. An appraiser who is registered, licensed, or certified under F.S. 475 Part II,
| | | | | | | | | | | | | |
must be utilized in which of the following?
| | | | | | |
a. All appraisals
| |
b. The appraisal of residential property
| | | | |
Correct Answers
1. Which of the following statements is true regarding a mortgage loan originator
| | | | | | | | | | | | |
(MLO)?
a. A mortgage loan originator is the same as a mortgage broker.
| | | | | | | | | | |
b. A mortgage loan originator must have a separate license.
| | | | | | | | |
c. A mortgage loan originator makes loans.
| | | | | |
d. A mortgage loan originator must have a real estate license. - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-B
2. A real estate appraiser's fee for professional service is based on which of the
| | | | | | | | | | | | | | |
following?
a. A percentage of the property's gross income.
| | | | | | |
b. A percentage of the fair market value of the property.
| | | | | | | | | |
c. The time and difficulty of the appraisal.
| | | | | | |
d. A percentage of the property's sales price. - CORRECT ANSWER✔✔-C
| | | | | | | | | |
3. Which of the following best describes the real estate brokerage business?
| | | | | | | | | | |
a. Service business
| |
b. Simple business
| |
c. Business with few opportunities available
| | | | |
,d. Construction business - CORRECT ANSWER✔✔-A
| | | | |
4. All of the following are responsibilities of a property manager, EXCEPT:
| | | | | | | | | | |
a. Renting property for an absentee owner.
| | | | | |
b. Collecting rent.
| |
c. Overseeing maintenance.
| |
d. Preparing leases - CORRECT ANSWER✔✔-D
| | | | |
5. What does the term "farming" refer to in real estate?
| | | | | | | | | |
a. Specializing in one geographic area
| | | | |
b. Working in a cooperative manner
| | | | |
c. Specializing in agricultural properties
| | | |
d. Specializing in the sales of orange groves or cattle farms - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-A
6. Which insurance policies can a real estate licensee offer to the public without
| | | | | | | | | | | | | |
additional state licensing?
| |
a. Flood insurance
| |
b. Fire insurance
| |
c. Renter's insurance
| |
d. None of the above - CORRECT ANSWER✔✔-D
| | | | | | |
7. What is the purpose of the National Association of REALTORS?
| | | | | | | | | |
,a. Preserve the right of individuals to own real property through an exchange of
| | | | | | | | | | | | | |
information.
b. Organize antigovernment activities.
| | |
c. Promote unethical practice of real estate professionals.
| | | | | | |
d. Promote unethical practice of real estate professionals. - CORRECT
| | | | | | | | | |
ANSWER✔✔-A
8. What does the designation of REALTOR® signify?
| | | | | | |
a. Anyone in possession of a real estate license is a REALTOR®
| | | | | | | | | | |
b. The designation identifies the real estate professional as a member of the NAR.
| | | | | | | | | | | | |
c. The designation is evidence that the licensee has an extensive background in
| | | | | | | | | | | | |
the real estate profession.
| | |
d. The designation is evidence that the licensee has completed extensive real
| | | | | | | | | | | |
estate studies. - CORRECT ANSWER✔✔-B
| | | |
9. A developer contracts to build a home according to the buyer's specifications.
| | | | | | | | | | | | |
This is an example of which type of building?
| | | | | | | |
a. Tract
|
b. Custom
|
c. Speculative
|
d. Subdivision - CORRECT ANSWER✔✔-B
| | | |
10. Which of the following best describes licensees who are involved in business
| | | | | | | | | | | | |
brokerage?
, a. They must be able to analyze financial statements and understand balance
| | | | | | | | | | | |
sheets.
b. They are not required to know much about the business they are selling.
| | | | | | | | | | | | |
c. They must have a separate license.
| | | | | |
d. They never become involved in the tax aspects of the business. - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-A
11. Real estate licensees are required to be knowledgeable in all of the following
| | | | | | | | | | | | | |
areas, EXCEPT: |
a. Marketing
|
b. Valuation
|
c. Property transfer
| |
d. Accounting - CORRECT ANSWER✔✔-D
| | | |
12. Which service provided by real estate licensees requires the most experience
| | | | | | | | | | | |
and knowledge?
|
a. Property management
| |
b. Counseling
|
c. Appraising
|
d. Agricultural sales - CORRECT ANSWER✔✔-B
| | | | |
13. An appraiser who is registered, licensed, or certified under F.S. 475 Part II,
| | | | | | | | | | | | | |
must be utilized in which of the following?
| | | | | | |
a. All appraisals
| |
b. The appraisal of residential property
| | | | |
