Florida Real Estate State Exam

Florida Real Estate State Exam Property management - ANS Abesntee ownership has increased the demand for which area of brokerage A fee based upon time and difficulty of appraisal - ANS What is a real estate appraiser is paid A subdivision plat map - ANS What does the local planning agency have the authority to approve Dedication - ANS What is it called when a developer gives land to a governmental body? Property management - ANS What business is a license engaged in who markets, leases and maintains property for someone else? Residential sales - ANS In which service of real estate must a licensee disclosure the agency relationship and the responsibilities of that relationship to the public QUASI legislative - ANS Which power authorizes the frec to pass or revise rules Not being a resident of Florida - ANS Would be grounds for suspension or revocation of a real estate license except Transfer her license from the broker to owner developer - ANS Sandy works as a sales associate for a broker and has been asked to work weekends for a developer to sell new homes on commission. What must sandy do to work for the developers A post licensing course - ANS What does the license law require that a licensee complete before the first renewal of a Florida real estate license qualify just as anyone else - ANS In a brokerage corp, the officers and directors can be active or inactive brokers or non licensed registeres persons. if someone who is non licensed and registered wants to become a broker, what must they do? a person who rents mobile home lots - ANS who would be exempt from the real estate licensing law? FREC and the license law - ANS Which entity provides the best protection for the public during a real estate transaction it may be held by a sales associate or broker associate - ANS Which of the following is a characteristic of the group license business brokers - ANS All of the following are exempt from FS 475 EXCEPT holds multiple licenses - ANS Complete the sentence. A broker who holds more than one broker license for identification purposes - ANS General partners in a brokerage partership that are not qualified to perform the services of real estate must be registered: late fee and 14 hours of continuing education - ANS Bill's license expired on Sept. 30, 2013. On Feburary 14, 2012 he wants to renew it. If it is not his first renewal, what must bill do? Ron and his wife are exempt from renewal - ANS Ron and his wife each have real estate licenses before he enters the military. Ron is stationed in Washington, DC. And his wife accompanies him there, if they makw their licenses inactive> involuntary inactive - ANS what is the status of a sales associates license if the sales associate works for a broker loses his license? Impose imprisonment as a penalty - ANS The Florida Real Estate Commission my do all of the following except His license is null and void - ANS Karls license expired on sept 30 2010. on Feb 10 2014 he wants to activate it again. Which is correct? Both the seller and investor must agree to transition to transaction broker - ANS A real estate broker has entered into a single agency relationship with the sellers of a three bedroom, two-bath house. One of the agents in that brokers office has found an investor wanting to hire the brokerage firm as a single-agent. For the investor to be shown this seller's house: Single agency notice - ANS What must be given to a seller who is about to enter into a fiduciary relationship with a brokerage firm? Find a new employer - ANS What should sales associate do if his employing broker instructs him or her not to show properties to people of a certain race? Transition to transaction broker - ANS Which form requires the signature of all parties? Residential sales - ANS The agency disclosure forms developed by the state must be used in which instance? disclose known facts affecting the value of residential property - ANS A broker owes which duty to a customer? name of the brokerage firm - ANS What must all advertising of listed property must contain Deliver it to his broker immediately - ANS Sales associate Glenn works for broker John. If Glenn receives an escrow deposit on Tuesdy what should he do? Mutual fund - ANS A broker may hold escrow deposits in any of the following, except a: The employing broker - ANS Who do listings obtained by a sales associate belong to? illegal under FS 475 - ANS A broker sells a rental list to a prospective tenant for $200. In a written agreement, the broker states that the fee is nonrefundable. This is: This would violate FS 475 - ANS A sales associate wants to use a trade or ficticious name. which statement applies? file a written objection to the questions during the schduled questions review - ANS Jim is a sales associate applicant but has failed the exam twice. After reviewing his most recent exam, he feels that some of the questions he missed were really correct and marked wrong in error. What may Jim do? They must contain abc realty Inc - ANS Craig is a real estate sales associare working for ABC realty, INC. Craigs decides to have refrigerator magnets made to give out to the public. What must he inlcude on the magnets? Florida fair lending act - ANS If a mortg. broker informs a borrowoer that they need to refinance their loan after only 10 months, with a higher interest rate and also some closing costs, which law would be violated? Corporation sole - ANS Which business entity may not register as real estate brokerage firm? mediation - ANS When there is a dispute over escrow funds, the procedures include four choices. Which choice involves a third person recommending a solution? Probable cause determination - ANS Which steps follows the investigation in the complaing process? final order - ANS Complete the sentence. If a licensee does not dispute a citation, it has the same effect as a: 500 fine an or 60 days jail time - ANS What is the maximum criminal penalty that a court could impose for a second-degree misdemeanor? Anyone - ANS Who has the right to file complaint against a licensee with the DBPR notice of non compliance - ANS Which punishment would FREC likelt impose for a first offense against a broker found guilty of a minor violation 10 - ANS FREC may suspend a licensee for a maximum of how many years 150,000 - ANS For multiple claims against a licensee, what is the maximum reimbursement from the Florida RE recovery fund? Is funded from licensing fees - ANS The Florida re recovery fund: District court of appeals - ANS Where must appeals of FREC final orders must be filed? 10,000 - ANS What is the maximum fine the commission could impose against a licensee who was found guilty of two violtions of Chapter 475 Conversion - ANS What charge may be filed against a broker who fails to pay his or her sales associate? Race, color, religion, sex, national, origin, family status or handicap - ANS The fair houseing act of 1968 prohibits discrimination based upon: RESPA - ANS What law require that buyers be given a good fith estimate of closing costs prior to closing? steering - ANS A licensee picks the properties a particular buyer is shown based on the race of the buyer. What is this illegal act known as? Blockbusting - ANS Telling home owners that minorities are moving near to make them sell is: A violation of the fair housing act of 1968 - ANS Broker bill was hired to rent Mrs. Brown's apartment building located in a large college town. Broke bill quors lower rents and deposits to females because "they cause less trouble" this is: Landlord must inform tenant within 30 days how the deposit is being held - ANS Which is correct according to FL landlord tenanct act? Yes this is a bait and switch advertising and is illegal - ANS A dev advertides a home for downpayment of 1500. however that package is sold out, is this transaction covered under truth in lending laws? requires lenders to disclose the true cost of credit to consumers - ANS Regulation z? easy terms - ANS which is not a "triggering term" a violation of RESPA - ANS Broker receiving kickback from title co. riparian - ANS property that borders a river or stream Relationship of the parties - ANS Courts apply legal tests to determine if personal property has become a fixture. which is included in those tests? Personal property - ANS An owner of a peice of real estate has purchased the materials to fence the backyard. What type of property is the fencing material. Joint tenancy - ANS Thre friends buy a property together, with equal shares at the same time. If they have the right of survivorship, what type of tenancy have they created? Who own the property in a tenancy by the entireties? - ANS Husband and wife tenancy at sufferance - ANS What type of tenancy exists when a tenant remains in possession of property after his or her rights have expired? debts other than direct debts and federal liens - ANS The purpose of the homestead exemption is to protect the surviving spouse and children and to exempt property from foreclosure for: Joint - ANS Which tenancy contains the right of survivorship claimed the property as their principal residence as of january 1 and filed by March 1 - ANS The initial tax exemption for homestead is availible only to owners that: interval ownership - ANS What would the best bundle or rightd with a timeshare include: proprietary lease - ANS How is the right to occupy a cooperative is evidenced eminent domain - ANS what term refers to the poeer that the fovernment has to take land for the public good? seisin - ANS which clause in a deed states that the grantor was in possession and has the right to sell the property? possession of the property that can be seen and heard - ANS What is actual notice witnessed - ANS a deed must be: as a way to clear clouds on the title - ANS how is a quitclaim deed most often used? delivered and accepted - ANS the onweeship of a property actually transfers from the grantor to the grantee when the deed is: run a chain of title - ANS what is the purpose of a title search? a bundle of ownership rights - ANS what is a title ? deed restrictions - ANS which is the strongest control private citizens have over a property owner it protects the buyer from title defects - ANS which statement correctly applies to owners title insuance? quitclaim deed - ANS Which deed contains no warrants or promises? escheat - ANS if an owner dies intestate with no known heirs, how can the state can take the property 40 - ANS the following legal description contains how many acres? The s 1/2 of the sw 1/4 of the nw 1/4 and the n 1/2 of the n/w 1/4 of the sw 1/4 of a section 17 - ANS the southeast corner of section 31, township 1 north, range 3 west, is how many miles from Tallahassee Township 1 north - ANS The horizontal strip of land 6 miles wide immediately nith if the Tallahassee baseline would be: open listing - ANS What type of listing can be held by more than one broker? performance - ANS Which action can terminate a contract? an offer and acceptance - ANS Which item is an essential element of a sales contract to be enforcable a contract transferring an interest in real estate must be in writing - ANS what does the statute of frauds require the time frame in which a contract can be enforced - ANS What is stated in the Statute of limitations? the time frame in which a contract can be enforced - ANS What is stated in the statute of limitations? transfers ownership until paid - ANS In states which operate under the title theory, the borrower: loan amount - ANS What is the amount of guarantee based upon for a VA gauranteed loan? 28%, 36% - ANS Conven. lenders usually want the buyer's housing ratio not to exceed __ and the total obligations ratio not to exceed ___ mortgage - ANS What is the name for the legal document that pledges a property as security for a loan? insures loans - ANS what does the FHA do with respect to mortgages lending? assumption of the mortgage - ANS What is it called when a buyer buys a property and takes over responsibility on an existing loan? gross monthly income - ANS When calculating housing and total obligations ratios. which income value does the lender use? Package mortgage - ANS Which type of loan uses both real and personal property as security? a or b but not both - ANS Which remedies are available when a seller breaches a contract? Right of redemption - ANS What term refers to the right of a mortgagor to stop a forclosure process bt paying the entire balance, interest and so on? Purchase money mortgage - ANS Which type of mortgage is known as seller financing? note - ANS Where would the interest rate, payment and other terms of a loan be found? The mortgage serves as a lien against the property - ANS Which statement is correct in a lien theory state such as Florida? the early payments are mostly interest - ANS Which of the following is a characteristic od an amortized or level payment mortgage? Accretion - ANS Which term refers to the process of sand deposits building up over time, causing an increase in land? fee simple - ANS Which estate or tenancy is the most comprehensive? Police power - ANS gov'ts power to limit or control the actions of citizens in the form of such things as zoning codes and building codes? condemnation - ANS Which process is used by the government to take private land for public use? Discount rate - ANS Which term refers to the interest that is charged when banks borrow from the Fed. Reserve? 8.25% - ANS If a lender charged 8% interest plus 2 points what is the approximate yeild on the loan? Savings associations - ANS The primary purpose of the Federal Home Loan Bank system is to provide support for which of the following? .35 per 100 - ANS Which characteristic applies to the note documentary stamp tax? decrease the reserve requirement - ANS What would the Fed. reserve do when it wants to increase the supply of loanable funds? When supply of funds is increasing, and the demand is decreasing - ANS When is intermediation in financial institutions most likely to occur? credit to buyer - ANS How would an escrow deposit typically appear on a closing statment deficiency judgement - ANS What may the lender request the court to grant when there is a forecllosure and the auction sale does not provide enough proceeds to pay the entire mortgage debt? erosion - ANS What results in a decrease of land mass? T4N, R2W - ANS What is the description of the township located due east of t4n, r3w? greatest value for the land - ANS Highest and best use of a parcel of land is the use creating which of the following add a 14,500 adjustment to the comparable property - ANS The subj. prop. has a garage. The comparable property has no garage. If a garage has a value of 14,500 and the comparable property sold for 149,000 what adjustment should be made? component depreciation - ANS All of the following are basic types of depreciation, except? direct capitalization - ANS The present value of a future cashflow is the basis for which appraisal technique? credit the buyer and ebit the seller - ANS How would a purchase money mortgage appear on a closing statement? 27.5 years straight line - ANS what method can be used to depreciate residential real estate purchased after 1986? potential gross income - ANS What is the name for the annual income that an investment property could make with no vacancies or collection losses? a form of owner financing - ANS What is a contract for deed or land contract? a real estate license - ANS What is required for a person representing themselves as a business broker? assets - ANS Which term refers to the tangible and intangible resources of a business? goodwill - ANS Which asset is the most difficult to set a dollar value on for a business? positive leverage - ANS John has the opportunity to invest in a property with a 9% return. He can borrow the money at an interest rate of 7%. Which investment characteristic exists? real estate property taxes - ANS What are ad valorem taxes? April 1 of the following year - ANS When do property taxes in FL become delinquent? Who can assess property for tax purposes? - ANS county property appraiser green belt law - ANS Which law requires farm land near an urban area to be valued the same as more distant farm land for tax purposes? The gain is exempt from tax - ANS The jhonsons have lived in their home for the last 4 years. Now they are selling and expect a profit of nearly 200,000. Which statement applies best? 2 - ANS Failiure to pay property taxes will lead to the sale of tax certificates. In order to force the sale of the property, how many years must the investor wait? Police power - ANS Which governmental power authorizes a city to make zoning laws nonconforming use - ANS A convenience store existed at a location prior to zoning law changes that would have disallowed it. Under which type of exception can the store remain? communities are divided into districts based on use - ANS What results from zoning laws? two county commissioners, one school board member and two private citizens - ANS What is the membership composition of the value adjustment board? zoning variances - ANS Local planning agencies have the final authority for all of the following except? file for the exemption each year - ANS What must a person do in order to qualify for the homestead exemption? variance - ANS If an owner felt that a zoning rule was causing an economic hardship, not of his or her own making, he may seek releif by requesting a? the market is homogenous - ANS All of the following are characteristics of real estate except: to establish minimum standards of building design and construction - ANS What is the purpose of building codes? balance sheet and income statement - ANS What are the two most important financial summary statements of a business? sellers market - ANS In which market would there be a shortage of housing? balance sheet - ANS Which statement shows the status of a business as of a specific date? 77,000 - ANS A lawn service company sold for $125,000. The tangible aasets amounted to the lawn equipment valued at 48,000. The intangible assets were the customer base and the company's good reputation. What is the value of the intangible assets? 20,000 - ANS A property manager of an office building leases 2,500 square feet of space to a doctor's office, which is 12.5% of the total space. What is the total square footage of the building? 975 - ANS A homesteaded property has an assesed value of 249,000. If the county tax rate is 7 mills, the city is 8 mills and the school board is 9 mills, how much does the homesteam exemption save the homeowner? 4 - ANS James, potential buyer , is told by the lender that he can have a loan at an interest rate of 6%. When he does to the closing, he notices that the Truth-in-closing statement says the APR is 6.5%. Using thr rule of thumb calculation, how many points were most likely charged? 5.25% - ANS Carol is borrrowing money to purchase her first home. The lender has agreed to a 5% loan with 2 discount points. Whay is the approximate yeild on the loan? 26% - ANS Jack has an income of $85,000 per year, and patricia his wife, has an income of $75,000. They have car payments of $540 per month each, credit card payments of $600 and student loan payments of $1000 per month. The loan they are applying for would have a monthly payment of 3,400. What is the housing expense ratio. 163.60 - ANS What amount of the second monthly payment would be applied to principal on a 180,000 loan with an annual interest rate of 6.5% for 30 years, with payments of 1,137.72? 80% - ANS Sandy is purchasing a home for 570,000, with a downpayment of 114,000. If she finances the difference, what is the LTV ratio? 27,500 - ANS Sarah made an escrow deposit of 8,500 on her sales contract. The sale price is 200,000 and she has arranged for an 85% loan. If her closing costs are 6,000, how much additional cash must she bring to the closing. 5,580 - ANS A property that listed that listed for 400,000 sold for 93% of the listing price with a 5% commission. It was sold by another office. The commission is to be split 50% to the listing offivr and 50% to the selling office. If the sales associate is to receive 40% of the listing office share, how much will the listing broker receive 29% - ANS A developer purchased two adjacent lots of 200 front feet each for 35,000 each. He then divided them into three lors and sold tjem for 225 per front foot What was the percentage of profit? Credit the buyer 2,080 - ANS A real estate closing for a duplex is scheduled for Sept. 7th, with the day of closing charged to the buyer. Monthly Rent is 1,300 per unit. Which closing statement entry is correct? 1,181.75 - ANS Closing date is June 8 with the day of closing belonging to the buyer. Annual real estate taxes are 2,730. Using the 356 day method, what prorated amount of taxes will be debited to the seller? 64.04 - ANS In November the seller paid $1375 for the annual property taxes. The closing date is December 14, and the day of closing belongs to the seller. Using the 365-day method, what prorated tax amount will be debited to the buyer? 272,300 - ANS A 10 year old home is being appraised. The square footage of gross living area is 3,680 and there is also a 420- square foot garage. If the construction cost is 70 per sqft for living area and 35 for garage, what is the reproduction cost of a structure?` 2,549 - ANS Calculate the total state taxes due in the following transaction: The sales price is 249,480. The buyer will assume the seller's first mortgage if 190,000. The seller has agreed to take back a new purchse money second mortgage for 25,000 500,00 - ANS Mr johnson owns an apartment building that produces an effective gross income of 85,000 per year. What would be the value, given operating expenses of 30,000 and an overall cap rate of 11%? 145,000 - ANS An investment property has a potential gross income of 300,000, a vacancy rate of 5% and operating expenses including 13,000 of reserved for replacement totaling 140,000. What is the net operating income? 134.75 - ANS What is the monthly gross rent multiplier for a house that sold for 269,500 and was rented for 2,000 per month? 7.5 - ANS What is the gross income multiplier for a house that sold for 269,500 and was rented for 2,000 per month? 4,375 - ANS If a lot measures 125 feet by 225 feet, and the street is in front is scheduled to be paved a cost of 100 per front foot, how much would one homeowner's special assessment be if the county is paying 30%? 26,700 - ANS An 8-year old building looks only 3 years old because it has been well maintained . The reproduction cost the building is $400,500 and the economic life is 45 years. The land is valued at $80,000. What is the buildings approximate depreciation. 14,303.59 - ANS An investor purchased an office building for 655,000, with acquisition costs of 42,300. If the building represents 80% of the cost, what is the annual IRS depreciable allowance? 439,000 - ANS A comparable property sold for 429,000. The comparable property is built of superior materials values at 25,000 but has less sq ft than the subj. property, valued at 35,000. What is the adjusted sale price of the comparable property? 408,11 - ANS A homeowner purchased a primary residence for 395,500 including 15,000 in closing costs and 60,000 for the lot. After the closing, hurricane shutters were installed at a cost of 12,600. What is the adjusted basis for tax purposes? broker and sales associate, if employed by an owner-developer - ANS Who may be compensated, directly by an owner, for performing any of the eight services of real estate? F.S. 475 has been violated - ANS A, b, and c bought 640 acres of land with equal and undivided interest. A and B were brokers, and C was not. A And b were frequent business partners but decided to ler C handle the resale od the tract. C had very little experience but was able to find a buyer willing to pay a good price. Because of this, A and B decided to give C 40% of the profits and divide equally the balance of the profit. Which applies? Broker, owner dev, brokerage corp - ANS Jerry was notified tht he passed the state sales associate license exam. His license allows him to perform services of the real estate for which type of employer? neighter have violated fs 475 - ANS Owner A and friend B meet on the street. A says, "I woudl likde to sell my house." B takes the information and says "I'll find you a buyer, I've done it several times for our friends." B does find a buyer for A's house, and the transaction is closed. Based on the above facts, which of the following applies? being a florida resident - ANS The requirements for obtaining a Florida real estate license include all of the following except There is no violation of FS 475 - ANS Mary does not have a real estate license and works for AAA syndicate, which buys, sells, manages and leases its own property. Mary was hired to lease and sell AAA's property and is compensated by a salary. Which statement is correct? a sales associates application - ANS Which information is included in the public records? He or she may be compensated directly for this service - ANS An owner of a servie station who holds an inactive license has been approved by the court to appraise another service station. Which statement is most correct? be employed by one or more actively licensed brokers for at least 24 months wihtin the preceding 5 years - ANS What must a sales associate do to be eligible to take the broker examination? omitting one or more answers to questions on the application - ANS Which action would cause an applicant's request for licensure be denied without prejudice? Lease out the unit for Adolph for not more than 1 year, as long as he is not. - ANS Jasper Judd is a salaried resident manager of the Golden Age Condominium complex. Adolph Ajax, an owner of one of the units int he condominium , has asked jasper to lease his unit whule he is away on an extended trip to bulgaria. Jasper may: has violated FS 475 - ANS Georgre portfolio is a stock broker who does not hold a real estate license. He believes the stock of the Gasaway Corp. Has a high potential. Upon contacting the president of Gasaway to assist the corp in listing its stick for sale, he learns that the success of the company hinges on the negotiation of an oil lease. George offers his assistance and the company engage him to negotiate the lease with SLick Slacker, the owner. Upon closing the lease, The company employs george as its stock broker. George subsequently sells the corporations stock. The corporation pays george a commission on the stock sale ang gives him 5 shares for handling the oil lease. Geroge: send a thank you note to Mr. white - ANS Mr.White referred his ister to a real estate broker, and she purchsed a 200,000 home. What may the broker do to show his thanks? valid and current - ANS Which is the best license status for real estate? the person will be granted a hearing - ANS A resident of Canada that has been denied a license in the Province of Ontario subsequesntly moves to Florida and applies for a real estate sales associates license. Which would most likely apply? to protect the public - ANS Which of the following best describes the purpose of the real estate license law? he could apply for a group license and notify the FREC - ANS XYZ Dev corp. was dev a PUD in Carol City. Sales associate green, explored by xyz corp was employed to sell vacant home sites. XYZ corp had a subsidiary company, the Sunshine Corp. in another city 200 miles away, developing another PUD. If sales associate Green is transferred to Sunshome which statement is correct? a violation of FS 475 because it is not paid through his broker - ANS Robert, a sales associate, has been working with an investor that is looking for single family properties for income. In order to get preferential treatment, the investor offers a 1,000 finders fee directly for eadh wsuitable property he finds, this arrangement would be Notify the FREC - ANS What should a sales associate do if he or sheconsiders a rule to be invalid? List the house as long as he has an employing broker - ANS Aaron applicant has passed the state examination for becominf a sales associate. An hour later, aaron has the opportunity to list his neighbors house. Aaron may: Secretary of state - ANS Before the rules and regulations enacted by the FREC become effective, they ust be filed with which entity? FREC chairperson or Vice chairperson - ANS Certificates of the FREC meetings which reflect the actions of the commission are signed by which entity? Branch office name - ANS Which items would be optional on a branch office sign? it is binding on the new owner - ANS Jeff is the owner of a building that is leased to craig. If Jeff sells the building, what is the status of the lease? call the two prospects immediately - ANS A sales associate went on vacation. While gone, the broker moved the office around the block. When the sales associate returned, there was an urgent message that two serious prospects has called. Also, a sale closed in his bsence and the broker owes him a commission. What should the sales associate do first?