Exam Question Master 3 questions with correct and verified answers

Exam Question Master 3 questions with correct and verified answers Insulation is rated by its ability to resist - heat flow A man successfully negotiated (and was paid for) the sale of a Federal Communications Commission license for a television station. He is NOT a licensed real estate broker or sales associate. The man - has not violated F.S. 475. Which statement is TRUE regarding the monthly payments on a 30-year, fully amortized loan? - Initially, interest is the larger portion of the payment. Which element is NOT essential in a valid real estate sale contract? - An earnest money deposit The DBPR may issue which penalty for an initial offense of a minor violation by a licensee? - Notice of noncompliance A title theory state is one in which a mortgage - transfers title to the lender or escrow agent until the loan is paid. A broker's license was involuntary inactive for two years and one month. To operate again as an active licensee, the broker must complete - FREC Course I and pass the sales associate's licensing exam. Your seller owns a home appraised at $52,500. She still owes $32,760 on the first mortgage and $4,200 on a second mortgage. Your sales commission will be $3,640. What is your seller's equity in the home? - $15,540 The answer is $15,540. The solution is: $52,500 appraised value - $32,760 first mortgage - $4,200 second mortgage = $15,540 equity. A licensed real estate broker has a buyer who is interested in investing in income-producing property. The broker finds a property producing net income of $1,750 per month. The buyer informs the broker that she will buy the property if she can get it for a price that will return 14 percent per year on her investment. If the desired 14 percent rate of return is regarded as a 14 percent capitalization rate, what will the buyer be willing to pay for the property? - $150,000 The answer is $150,000. The solution is: $1,750 monthly net income × 12 months = $21,000 NOI; $21,000 ÷ .14 cap rate = $150,000 target price. A licensee makes a statement that is material to the transaction as if it were a fact when the licensee does NOT know if the statement is TRUE or FALSE, and the buyer relies on the statement. As a result of the statement made by the licensee, the buyer suffers damages. This situation constitutes - fraud. The purchase price of a business minus the value of the tangible assets of that business equals the intangible assets of the business, referred to as - Goodwill. Business brokers appraise businesses using appraisal methods similar to real estate appraisal EXCEPT for the additional technique of - liquidation analysis. The Florida Real Estate Commission must notify which agency when it takes disciplinary action against any of the agency's licensees? - Division of Florida Condominiums, Timeshares, and Mobile Homes A licensed real estate broker has been hired by a lender to appraise a home for a buyer who has made application for an FHA loan. Which statement is TRUE regarding this situation? - The broker is required to be a state-certified appraiser to perform this appraisal assignment. The only broker for a firm had her license revoked. What action, if any, will be taken against the sales associates' licenses registered under the broker? - The licenses will be placed in involuntary inactive status. Essential elements of a deed do NOT include - signature of a competent grantee. The answer is SIGNATURE OF A COMPETENT GRANTEE. A competent grantor (not grantee) must sign the deed. A real estate brokerage company is a transaction broker for a buyer. The buyer wants to purchase a new home so the sales associate takes him to three model centers listed by three competing real estate companies. The sales associate must give the no brokerage relationship notice to - The answer is NO ONE. Effective July 1, 2008, real estate licensees are no longer required to give customers the transaction broker notice. Licensees are also not required to give a disclosure notice at model centers. A broker who changes business address must notify the Commission of the address change within how many days? - 10 What would be the total required taxes for the loans on a $47,500 tract that sold with $10,000 cash down, a new second mortgage of $15,500, and an assumed mortgage of $22,000 that was previously recorded? - The answer is $162.25. The solution is: Doc stamps on new note: $15,500 ÷ $100 increments × $.35 rate = $54.25; Doc stamps on assumed note: $22,000 ÷ $100 increments × $.35 rate = $77.00; Intangible tax on new mortgage: $15,500 × $.002 = $31.00; $54.25 + $77.00 + $31.00 = $162.25 taxes for the mortgage loans. Which estate includes the right of survivorship? - Joint tenancy A property closes on April 8, with the day of closing charged to the seller. The annual property taxes are $1,486. Which entry will appear on the closing statement for the property taxes? - Debit to seller and credit to buyer in the amount of $398.98 The answer is DEBIT TO SELLER AND CREDIT TO BUYER IN THE AMOUNT OF $398.98. Taxes are paid in arrears. Therefore, calculate number of days seller is responsible for paying: January (31) + February (28) + March (31) + April (8) = 98 days. $1,486 ÷ 365 days × 98 days = $398.98 seller owes, so debit seller and credit buyer. The formula to calculate the overall capitalization rate is - NOI ÷ Value (or price). A developer purchased three oceanfront lots, each measuring 75 by 110 feet, for $20 per square foot. The developer later sold the lots for $200,000 each. What was the developer's percentage of profit on the sale of the three lots? (Round to nearest percent.) - 21 PERCENT The answer is 21 PERCENT. The solution is: 75 feet × 110 feet = 8,250 square feet; 8,250 × $20 per square foot = $165,000 cost per lot; $200,000 sale price - $165,000 = $35,000 amount made per lot; $35,000 ÷ $165,000 = .2121212 or 21 percent. A man earned a $7,500 commission by selling a coin-operated laundry business, which has six more years before the expiration of its present lease. The man - must be registered with the Florida Real Estate Commission as a real estate licensee. A real estate company represents a motel owner who wishes to list one of his motels for sale. The owner has told the listing agent that he does NOT want to sell the motel to any racial minorities. - To refuse to sell or lease any real property based on one's race is a violation of the federal Civil Rights Act of 1866. A mortgage in which changes in the interest rate may cause changes in the monthly payment amount is called - an adjustable-rate mortgage. Depreciation (cost recovery) - is an allowable deduction that requires no current outlay of cash. A type of roof style that slopes from the ridge to four opposite sides and allows continuous eave venting around the entire house perimeter is the - hip. Which individual is NOT exempt from real estate licensure under F.S. 475? - A business broker who negotiates leases of business property In a deed, the warranty of quiet enjoyment pertains to - peaceful possession undisturbed by others' claims of title. Which information must be disclosed to all prospective buyers? - The home is situated in a flood-prone area. A sales associate received a $5,000 earnest money deposit from a buyer. She immediately delivered the deposit to her broker. The broker deposited the check on the third business day into his general operating account. - This is an example of com