1.A sales associate was issued a citation for failing to timely notify the Commission of her
change of address. How many days does the licensee have to either pay the citation or
file an objection to the alleged violation?: 30 days
2.Pam's home has an assessed value of $301,000. She qualifies for the Florida homestead
exemption. The area she lives in has the following taxes: County tax rate is 8.6 mills,
City tax rate is 4 mills and the school district tax rate is 6.1 mills. How much will the
property taxes be?: $301,000 -$50,000 = $251,000 x .0126 (8.6 mils + 4 mils =12.6 mils)
= $3,162.60; $301,000 - $25,000=$276,000 x .0061 (6.1 mils) = $1,683.60; $3,162.60+
$1,683.60 = $4,846.20
3.What are the similarities between a Business Brokerage and a Real Estate
Brokerage?:
1) Both deal with Real Property
2) Both require a Real Estate License
3)Both involve Long-term Liabilities
,4.A rental investment property is scheduled to close on September 10. The
buyer gets day of closing. The rent is $1900. How much is debited and/ or credited at
closing and to whom?: $1330 Credit to Buyer and $1330 Debit to Seller [Section 14, Slide
63] There are 30 days in September, so there are 21 days that the seller owes the buyer
including the day of closing. Divide $1900 by 30 = 63.3333333333 x 21 days =$1,330
5.A home was purchased with a down payment of $36, 000 and a loan of
$200,000 at 6.5% for 30 years. Monthly payments are $1,264.14. What is the
loan to value ratio?: [Section 12 Slide 52] $36,000 + $200,000 = $236,000 Purchase price;
$200,000 $236,000 = 0.8474576271 or 85% rounded.
6.In case of breach by the buyer, most real estate contracts include a provision that the
earnest money be regarded as:: Liquidated damages to the seller
7. Which is an example of a functional obsolescence?: One car garage
8. A tenant signs a lease for less than a year. What is his interest in the property?:
Leasehold estate
9. To substitute a borrower in a mortgage with another borrower is called:: Assignment
of mortgage
10. An active Florida broker accompanies her husband when he goes on active military
duty in Ohio for five years. She is not active in real estate in Ohio. Upon their return to
Florida, she: Need not complete any continuing education or reactivation education
for those five years and for up to 2 years after honorable discharge
11. Effective age means:: How old the building or house appears to be
12. The indestructability of land refers to:: Durability
,13. If religion is a protected class under the Fair Housing Act, how can a church restrict
the renting of homes to only members of their church?: Churches and private clubs
are exempt as long as they do not discriminate in accepting membership.
14. Which statement is associated only with the transaction broker relationship?: The
customer is not responsible for the acts of the licensee
15. You are appraising a 5 year old home. If the livable square footage is 3,500 with a
cost of $95 to replace according to a cost-estimating service and the 400 square foot
garage can be replaced at $60 a sq foot, calculate the reproduction cost of the
structure: $356,500
[Section 16 Slide 89]
95 x 3,500 = $332,500;
$60 x 400 = $24,000; $332500 + 24000 = $356500
16. Which tenancy has right of survivorship?: Joint tenancy
17. What section is directly below section 7 in a township?: 18
18. Compensatory damages are: The amount of money equal to the extent of loss
awarded to the damaged party when there has been a breach of contract.
19. Buyer Ralph didn't like the results of an inspection report. He requested to cancel
his contract and demanded his earnest money back. Seller Heather denied his request
noting that he was one day past the time that was allotted to cancel the contract.
Buyer Ralph claimed Seller Heather was miscounting the dates and both demanded
that Broker Smith return the money to each of them. Broker Smith waited 15 days,
hoping the situation would resolve, before notifying FREC of the conflicting demands.
How long does Broker Smith have left to implement a settlement procedure?: 15 days
, 20. Sales Agent Sam employed by XYZ Realty has a house listed for sale for Seller Tom.
He is working as a single agent. Broker Associate Cliff, also employed by XYZ Realty
brings a contract from his buyer Sue for Tom's property. What must Agent Sam have
signed to allow both Tom and Sue be represented by
XYZ Realty?: Consent Transition to Transaction Broker Notice
21. The period of time during which the terms of a contract may be enforced
according to the statute of limitations are:: Five years for written contracts and 4 years
for parol contracts
22. It is unlawful for a real estate licensee to prepare an appraisal under which
circumstance?: For a transaction involving a federally regulated transaction
23. Which person is NOT EXEMPT from licensure?: Attorney who charges a fee to
negotiate a real estate contract for a client
24. Satisfaction of mortgage is also known as:: Release of mortgage
25. A sales associate received an earnest money deposit on Tuesday. The sales
associate forgot about the check and gave it late to his Broker on Thursday.
By when must the broker make the deposit?: By the end of the day Friday
26. You own a residential investment property that was purchased at $291,000. The
land associated is valued at $73,000. Using the IRS straight line method which
statement is correct?: The depreciable basis will be $218,000 depreciated over 27.5
years.
27. Janice Raney wants to open a brokerage office operating as Crate Home Realty. She
is preparing the sign to be placed by the front entrance. What information does the
sign NOT need to state: The name of the sales associates working under her
change of address. How many days does the licensee have to either pay the citation or
file an objection to the alleged violation?: 30 days
2.Pam's home has an assessed value of $301,000. She qualifies for the Florida homestead
exemption. The area she lives in has the following taxes: County tax rate is 8.6 mills,
City tax rate is 4 mills and the school district tax rate is 6.1 mills. How much will the
property taxes be?: $301,000 -$50,000 = $251,000 x .0126 (8.6 mils + 4 mils =12.6 mils)
= $3,162.60; $301,000 - $25,000=$276,000 x .0061 (6.1 mils) = $1,683.60; $3,162.60+
$1,683.60 = $4,846.20
3.What are the similarities between a Business Brokerage and a Real Estate
Brokerage?:
1) Both deal with Real Property
2) Both require a Real Estate License
3)Both involve Long-term Liabilities
,4.A rental investment property is scheduled to close on September 10. The
buyer gets day of closing. The rent is $1900. How much is debited and/ or credited at
closing and to whom?: $1330 Credit to Buyer and $1330 Debit to Seller [Section 14, Slide
63] There are 30 days in September, so there are 21 days that the seller owes the buyer
including the day of closing. Divide $1900 by 30 = 63.3333333333 x 21 days =$1,330
5.A home was purchased with a down payment of $36, 000 and a loan of
$200,000 at 6.5% for 30 years. Monthly payments are $1,264.14. What is the
loan to value ratio?: [Section 12 Slide 52] $36,000 + $200,000 = $236,000 Purchase price;
$200,000 $236,000 = 0.8474576271 or 85% rounded.
6.In case of breach by the buyer, most real estate contracts include a provision that the
earnest money be regarded as:: Liquidated damages to the seller
7. Which is an example of a functional obsolescence?: One car garage
8. A tenant signs a lease for less than a year. What is his interest in the property?:
Leasehold estate
9. To substitute a borrower in a mortgage with another borrower is called:: Assignment
of mortgage
10. An active Florida broker accompanies her husband when he goes on active military
duty in Ohio for five years. She is not active in real estate in Ohio. Upon their return to
Florida, she: Need not complete any continuing education or reactivation education
for those five years and for up to 2 years after honorable discharge
11. Effective age means:: How old the building or house appears to be
12. The indestructability of land refers to:: Durability
,13. If religion is a protected class under the Fair Housing Act, how can a church restrict
the renting of homes to only members of their church?: Churches and private clubs
are exempt as long as they do not discriminate in accepting membership.
14. Which statement is associated only with the transaction broker relationship?: The
customer is not responsible for the acts of the licensee
15. You are appraising a 5 year old home. If the livable square footage is 3,500 with a
cost of $95 to replace according to a cost-estimating service and the 400 square foot
garage can be replaced at $60 a sq foot, calculate the reproduction cost of the
structure: $356,500
[Section 16 Slide 89]
95 x 3,500 = $332,500;
$60 x 400 = $24,000; $332500 + 24000 = $356500
16. Which tenancy has right of survivorship?: Joint tenancy
17. What section is directly below section 7 in a township?: 18
18. Compensatory damages are: The amount of money equal to the extent of loss
awarded to the damaged party when there has been a breach of contract.
19. Buyer Ralph didn't like the results of an inspection report. He requested to cancel
his contract and demanded his earnest money back. Seller Heather denied his request
noting that he was one day past the time that was allotted to cancel the contract.
Buyer Ralph claimed Seller Heather was miscounting the dates and both demanded
that Broker Smith return the money to each of them. Broker Smith waited 15 days,
hoping the situation would resolve, before notifying FREC of the conflicting demands.
How long does Broker Smith have left to implement a settlement procedure?: 15 days
, 20. Sales Agent Sam employed by XYZ Realty has a house listed for sale for Seller Tom.
He is working as a single agent. Broker Associate Cliff, also employed by XYZ Realty
brings a contract from his buyer Sue for Tom's property. What must Agent Sam have
signed to allow both Tom and Sue be represented by
XYZ Realty?: Consent Transition to Transaction Broker Notice
21. The period of time during which the terms of a contract may be enforced
according to the statute of limitations are:: Five years for written contracts and 4 years
for parol contracts
22. It is unlawful for a real estate licensee to prepare an appraisal under which
circumstance?: For a transaction involving a federally regulated transaction
23. Which person is NOT EXEMPT from licensure?: Attorney who charges a fee to
negotiate a real estate contract for a client
24. Satisfaction of mortgage is also known as:: Release of mortgage
25. A sales associate received an earnest money deposit on Tuesday. The sales
associate forgot about the check and gave it late to his Broker on Thursday.
By when must the broker make the deposit?: By the end of the day Friday
26. You own a residential investment property that was purchased at $291,000. The
land associated is valued at $73,000. Using the IRS straight line method which
statement is correct?: The depreciable basis will be $218,000 depreciated over 27.5
years.
27. Janice Raney wants to open a brokerage office operating as Crate Home Realty. She
is preparing the sign to be placed by the front entrance. What information does the
sign NOT need to state: The name of the sales associates working under her
