GOLD COAST REAL ESTATE PRACTICE FINAL
385 COMPREHENSIVE STUDY QUESTIONS AND
ANSWERS
◉ What is NOT a triggering term in mortgage advertising?
Answer: "Assumable mortgage." — Why: Certain specific financing
terms can trigger additional disclosure requirements. Simply saying
a mortgage is assumable does not state a specific credit term such as
the down payment, payment amount, or number of payments.
◉ Eminent domain does NOT include what type of property?
Answer: Shopping malls/centers. — Why: Eminent domain is the
government's power to take private property for a public use, with
compensation. A privately owned shopping center generally isn't
itself a public-use governmental project.
◉ What should a sales associate do with a postdated check received
as a deposit?
Answer: Immediately give it to the employing broker. — Why: A
sales associate cannot hold escrow funds personally. The deposit
must be delivered to the broker according to Florida escrow rules,
with the fact that it is postdated disclosed.
◉ Who does NOT have to sign a deed?
,Answer: The grantee. — Why: The grantor is transferring the
property and must sign the deed. The grantee receives the property
and generally does not sign.
◉ What law establishes time limits for bringing legal actions to
enforce rights under a contract?
Answer: Statute of limitations. — Why: It establishes the maximum
amount of time someone has to file a lawsuit.
◉ What is Florida's documentary stamp tax on deeds?
Answer: Generally $0.70 per $100 or fraction thereof of
consideration. — Why: Florida taxes documents transferring an
interest in real property. For exam math, divide the taxable amount
by $100, round up, then multiply by $0.70. Miami-Dade has special
rules/rates.
◉ When do Florida real property taxes become delinquent?
Answer: April 1 of the following year. — Why: Property taxes
become due November 1 and delinquent April 1.
◉ What deed is commonly used to cure a defect or cloud in title?
Answer: Quitclaim deed. — Why: A quitclaim deed transfers
whatever interest the grantor has without warranties. It is often
used to clear up title problems.
, ◉ What Florida tax applies to a new mortgage but generally not to
an assumed existing mortgage?
Answer: Intangible tax. — Why: Florida's nonrecurring intangible
tax applies to obligations secured by Florida real property, such as a
new mortgage.
◉ Owner-developers are what: licensed or registered?
Answer: Registered. — Why: An owner-developer may register
rather than hold a real estate license when using salaried employees
to sell the developer's own property under the statutory exemption.
◉ What should a broker do if unsure what action to take concerning
escrow funds?
Answer: Notify FREC in writing / institute the appropriate
settlement procedure. — Why: A broker cannot simply guess what
to do with disputed escrow money. Florida law provides specific
escrow-dispute settlement procedures.
◉ What appraisal principle says a buyer will not pay more for a
property than the cost of acquiring an equally desirable substitute?
Answer: Principle of substitution. — Why: Buyers compare
alternatives. If a similar property is available for less, a rational
buyer normally won't pay more for the subject property.
385 COMPREHENSIVE STUDY QUESTIONS AND
ANSWERS
◉ What is NOT a triggering term in mortgage advertising?
Answer: "Assumable mortgage." — Why: Certain specific financing
terms can trigger additional disclosure requirements. Simply saying
a mortgage is assumable does not state a specific credit term such as
the down payment, payment amount, or number of payments.
◉ Eminent domain does NOT include what type of property?
Answer: Shopping malls/centers. — Why: Eminent domain is the
government's power to take private property for a public use, with
compensation. A privately owned shopping center generally isn't
itself a public-use governmental project.
◉ What should a sales associate do with a postdated check received
as a deposit?
Answer: Immediately give it to the employing broker. — Why: A
sales associate cannot hold escrow funds personally. The deposit
must be delivered to the broker according to Florida escrow rules,
with the fact that it is postdated disclosed.
◉ Who does NOT have to sign a deed?
,Answer: The grantee. — Why: The grantor is transferring the
property and must sign the deed. The grantee receives the property
and generally does not sign.
◉ What law establishes time limits for bringing legal actions to
enforce rights under a contract?
Answer: Statute of limitations. — Why: It establishes the maximum
amount of time someone has to file a lawsuit.
◉ What is Florida's documentary stamp tax on deeds?
Answer: Generally $0.70 per $100 or fraction thereof of
consideration. — Why: Florida taxes documents transferring an
interest in real property. For exam math, divide the taxable amount
by $100, round up, then multiply by $0.70. Miami-Dade has special
rules/rates.
◉ When do Florida real property taxes become delinquent?
Answer: April 1 of the following year. — Why: Property taxes
become due November 1 and delinquent April 1.
◉ What deed is commonly used to cure a defect or cloud in title?
Answer: Quitclaim deed. — Why: A quitclaim deed transfers
whatever interest the grantor has without warranties. It is often
used to clear up title problems.
, ◉ What Florida tax applies to a new mortgage but generally not to
an assumed existing mortgage?
Answer: Intangible tax. — Why: Florida's nonrecurring intangible
tax applies to obligations secured by Florida real property, such as a
new mortgage.
◉ Owner-developers are what: licensed or registered?
Answer: Registered. — Why: An owner-developer may register
rather than hold a real estate license when using salaried employees
to sell the developer's own property under the statutory exemption.
◉ What should a broker do if unsure what action to take concerning
escrow funds?
Answer: Notify FREC in writing / institute the appropriate
settlement procedure. — Why: A broker cannot simply guess what
to do with disputed escrow money. Florida law provides specific
escrow-dispute settlement procedures.
◉ What appraisal principle says a buyer will not pay more for a
property than the cost of acquiring an equally desirable substitute?
Answer: Principle of substitution. — Why: Buyers compare
alternatives. If a similar property is available for less, a rational
buyer normally won't pay more for the subject property.
