FLORIDA REAL ESTATE CLASS FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS 2024-2025 VERSION
ALREADY A GRADED
Which is NOT a benefit of investing in real estate?
A. depreciation allowance that reduces taxable income
B. hedge against inflation
C. liquidity
D. positive leverage - ANSWER--liquidity
Which type of risk is associated with the loss of purchasing power due to an unexpected increase in
inflation?
A. business
B. interest rate
C. liquidity
D. purchasing power - ANSWER--Purchasing Power
Positive Leverage
A. increases the return on equity from using debt financing
B. is selling an investment property at a profit
C. is the difference between a high interest rate and a lower interest rate
D. is the difference between a high rate of return on RE and a lower return on other types of
investments - ANSWER--increases the return on equity from using debt financing
The use of leverage
A. has no effect on the yield on investment
B. may increase or decrease the yield on investment
C. Will decrease the yield on investment
D. will increase the yield on investment - ANSWER--MAY increase or decrease the yield on investment
, FLORIDA REAL ESTATE CLASS FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS 2024-2025 VERSION
ALREADY A GRADED
Regarding the RE market, which statement is TRUE?
A. Govt regulations have little influence on the market
B. The market is influenced by the immobility of RE
C. the market is not influenced by the physical characteristics of land
D. The market is quick to respond to changes in supply and demand - ANSWER--The market is influenced
by the immobility of RE
Regarding the RE market, which statement is FALSE? The market is
A. Influence by the immobility of land
B. regulated by FREC and the DBPR
C. segmented into submarkets
D. slow to adjust to changes in supply and demand - ANSWER--B. regulated by FREC and the DBPR
The price of RE increases. Which will likely occur?
A. RE rental rates will increase
B. RE sales will not be affected.
C. The demand for RE will increase
D. The interest rate will decrease - ANSWER--A. RE rental rates will increase
Which variable influences the supply of new real estate?
A. availability and cost of construction financing
B. income of consumers
C. mortgage credit
D. population - ANSWER--A. availability and cost of construction financing
There is an excess supply of housing in a RE market. The area can best be described as
A. builder's market
, FLORIDA REAL ESTATE CLASS FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS 2024-2025 VERSION
ALREADY A GRADED
B. buyer's market
C. broker's market
D. seller's market - ANSWER--B. buyers market
The planning commission does NOT have delegated final authority for
A. sign control
B. site plan approval
C. subdivision plan approval
D. zoning variances - ANSWER--D. zoning variances
Which would be classified as a service industry?
A. branch office or credit union
B. coffee roasting plant
C. computer manufacturing plant
D. military base - ANSWER--A. branch office or credit union
A paper mill that is a major employer of a particular place is an example of what type of industry? -
ANSWER--Base industry (they bring people to an area while the service industry serves them once they
get there)
Zoning Ordinances
A. are adopted by the state legislature
B. regulate building construction
C. regulate land development
D. segment the community into districts based on land use - ANSWER--D. segment the community into
districts based on land use
, FLORIDA REAL ESTATE CLASS FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS 2024-2025 VERSION
ALREADY A GRADED
Zoning regulations require a 15' setback for all building structures that front Captital St. There are no
other setback requirements. A particular lot on Capital St. is 190' x 190'. What are the dimensions of the
lot on which a building may be constructed?
A. 175' x 175'
B. 175' x 190'
C. 190' x 175'
D. 190' x 190' - ANSWER--C. 190' x 175'
In residential areas, the primary aim of the different zoning districts is to regulate
A. density
B. developers
C. height of improvements
D. highest and best use of the land - ANSWER--A. density
A provision in a zoning ordinance creates an undue hardship on a property owner. The owner did not
cause the hardship. The Zoning Board of Adjustment is authorized to
A. Amend that provision of the ordinance
B. classify this as a nonconforming use
C. grant a special exception
D. issue a variance - ANSWER--D. issue a variance
A lot has a 15' setback requirement. The owner wants to add a 1000 sq ft addition to her home. To do
this, the new home will need to extend 2 ft into the setvack area. Mary needs to apply for what? -
ANSWER--A variance
A small retail store was constructed, years ago, on property zoned for agriculture use. The area has since
been re-zoned to a single-family residential land use. Which statement applies to the store now?
A. illegal use
B. nonconforming use
AND CORRECT DETAILED ANSWERS 2024-2025 VERSION
ALREADY A GRADED
Which is NOT a benefit of investing in real estate?
A. depreciation allowance that reduces taxable income
B. hedge against inflation
C. liquidity
D. positive leverage - ANSWER--liquidity
Which type of risk is associated with the loss of purchasing power due to an unexpected increase in
inflation?
A. business
B. interest rate
C. liquidity
D. purchasing power - ANSWER--Purchasing Power
Positive Leverage
A. increases the return on equity from using debt financing
B. is selling an investment property at a profit
C. is the difference between a high interest rate and a lower interest rate
D. is the difference between a high rate of return on RE and a lower return on other types of
investments - ANSWER--increases the return on equity from using debt financing
The use of leverage
A. has no effect on the yield on investment
B. may increase or decrease the yield on investment
C. Will decrease the yield on investment
D. will increase the yield on investment - ANSWER--MAY increase or decrease the yield on investment
, FLORIDA REAL ESTATE CLASS FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS 2024-2025 VERSION
ALREADY A GRADED
Regarding the RE market, which statement is TRUE?
A. Govt regulations have little influence on the market
B. The market is influenced by the immobility of RE
C. the market is not influenced by the physical characteristics of land
D. The market is quick to respond to changes in supply and demand - ANSWER--The market is influenced
by the immobility of RE
Regarding the RE market, which statement is FALSE? The market is
A. Influence by the immobility of land
B. regulated by FREC and the DBPR
C. segmented into submarkets
D. slow to adjust to changes in supply and demand - ANSWER--B. regulated by FREC and the DBPR
The price of RE increases. Which will likely occur?
A. RE rental rates will increase
B. RE sales will not be affected.
C. The demand for RE will increase
D. The interest rate will decrease - ANSWER--A. RE rental rates will increase
Which variable influences the supply of new real estate?
A. availability and cost of construction financing
B. income of consumers
C. mortgage credit
D. population - ANSWER--A. availability and cost of construction financing
There is an excess supply of housing in a RE market. The area can best be described as
A. builder's market
, FLORIDA REAL ESTATE CLASS FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS 2024-2025 VERSION
ALREADY A GRADED
B. buyer's market
C. broker's market
D. seller's market - ANSWER--B. buyers market
The planning commission does NOT have delegated final authority for
A. sign control
B. site plan approval
C. subdivision plan approval
D. zoning variances - ANSWER--D. zoning variances
Which would be classified as a service industry?
A. branch office or credit union
B. coffee roasting plant
C. computer manufacturing plant
D. military base - ANSWER--A. branch office or credit union
A paper mill that is a major employer of a particular place is an example of what type of industry? -
ANSWER--Base industry (they bring people to an area while the service industry serves them once they
get there)
Zoning Ordinances
A. are adopted by the state legislature
B. regulate building construction
C. regulate land development
D. segment the community into districts based on land use - ANSWER--D. segment the community into
districts based on land use
, FLORIDA REAL ESTATE CLASS FINAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS 2024-2025 VERSION
ALREADY A GRADED
Zoning regulations require a 15' setback for all building structures that front Captital St. There are no
other setback requirements. A particular lot on Capital St. is 190' x 190'. What are the dimensions of the
lot on which a building may be constructed?
A. 175' x 175'
B. 175' x 190'
C. 190' x 175'
D. 190' x 190' - ANSWER--C. 190' x 175'
In residential areas, the primary aim of the different zoning districts is to regulate
A. density
B. developers
C. height of improvements
D. highest and best use of the land - ANSWER--A. density
A provision in a zoning ordinance creates an undue hardship on a property owner. The owner did not
cause the hardship. The Zoning Board of Adjustment is authorized to
A. Amend that provision of the ordinance
B. classify this as a nonconforming use
C. grant a special exception
D. issue a variance - ANSWER--D. issue a variance
A lot has a 15' setback requirement. The owner wants to add a 1000 sq ft addition to her home. To do
this, the new home will need to extend 2 ft into the setvack area. Mary needs to apply for what? -
ANSWER--A variance
A small retail store was constructed, years ago, on property zoned for agriculture use. The area has since
been re-zoned to a single-family residential land use. Which statement applies to the store now?
A. illegal use
B. nonconforming use
