Florida Real Estate Practice Final Exam
accurate 100%
1. When must a written no brokerage relationship notice be provided to customers? -
ANSWER Before showing homes that are listed.
2. Which of the following can not be used by the federal reserve to change or control the
money supply? - ANSWER After income tax rates
3. A broker has an exclusive right of sale listing to sell an owner's property, with no
other authority granted. What type of agency does the broker have with the principal? -
ANSWER Special agency
4. A licensee is being disciplined by the FREC for multiple violations of F.S. 475. Which
penalty may the Commision NOT impose? - ANSWER A fine not to exceed $5,000
and/or imprisonment not to exceed one year.
5. A judgment his awarded against a licensee for $100,000. What is the maximum the
complaintent may be compensated from the real estate recovery fund? - ANSWER 50%
6. What term is applied to the practice of keeping low income people out of a particular
neighborhood? - ANSWER Exclusionary zoning
7. Complete this statement. A transaction broker ________________. - ANSWER Owes
limited confidentiality to both parties.
8. Broker Jones committed fraud in a real estate transaction that involved 6 investors in
a limited partnership. What is the maximum recovery possible for the realestate
recovery fund that results in a single judgment as a result of this fraudulent activity? -
ANSWER $50,000
9. A mortgagor defaulted on his loan payments. The lender foreclosed on the property.
Some States allow the party that was foreclosed the right to redeem the property
following foreclosure. What is the term used to describe this right? - ANSWER Statutory
right of redemption
10. The sales comparison approach usually CANNOT be used when estimating the
value of which of the following? - ANSWER Special-purpose properties
11. Which of the following describes expenses on a closing statement? - ANSWER
Always entered as debit entries
12. The original mortgagor is NOT released from liability if title to property is taken by
what? - ANSWER Subject to the mortgage
, 13. What is the purpose of the closing statement? - ANSWER To summarize and
simplify the transaction
14. Which is the following best describes an acknowledgement of a deed? - ANSWER It
can be taken by an officer of the state.
15. The federal reserve board is charged with the responsibility of monitoring and
controlling the supply of money and cost of credit. What actions could it use to cause an
increase in interest rates? - ANSWER Sell government securities, increase the reserve
requirement, and increase the discount rate.
16. Which statement regarding a planned unit development (PUD) is correct? -
ANSWER It is a type of zoning that permits flexibility from rigid zoning standards.
17. Who or what determines the rates for documentary stamps? - ANSWER State Law
18. Which term is used to refer to the difference between current market value of a
property and the amount the owner still owes on the mortgage? - ANSWER Equity
29. What are the Federal Reserve actions taken to affect interest rates? - ANSWER
Monetary policy
30. Savings associations compete for new money to make mortgage and construction
loans with which of the following? - ANSWER All other lenders and users of money
31. Who are the parties involved in a deed of trust? - ANSWER Beneficiary, trustee, and
trustor
32. Which type of valuation is typically requested to determine the selling price of a
property in a short sale transaction? - ANSWER Broker price option (BPO)
33. What is the 1st step in an appraisal? - ANSWER Define the problem
34. The subject property has 3 bedrooms; the comparable property has 4 bedrooms. A
bedroom is worth $5000. What is the correct adjustment? - ANSWER Subtract $5000
from the comparable property
35. A relatively new 4 bedroom home with only one bathroom is an example of which of
the following? - ANSWER Functional Obsolescence
36. What is one example of external obsolescence? - ANSWER A freeway constructed
adjacent to a lot
37. Know what type of depreciation can not be recovered? - ANSWER Incurable
accurate 100%
1. When must a written no brokerage relationship notice be provided to customers? -
ANSWER Before showing homes that are listed.
2. Which of the following can not be used by the federal reserve to change or control the
money supply? - ANSWER After income tax rates
3. A broker has an exclusive right of sale listing to sell an owner's property, with no
other authority granted. What type of agency does the broker have with the principal? -
ANSWER Special agency
4. A licensee is being disciplined by the FREC for multiple violations of F.S. 475. Which
penalty may the Commision NOT impose? - ANSWER A fine not to exceed $5,000
and/or imprisonment not to exceed one year.
5. A judgment his awarded against a licensee for $100,000. What is the maximum the
complaintent may be compensated from the real estate recovery fund? - ANSWER 50%
6. What term is applied to the practice of keeping low income people out of a particular
neighborhood? - ANSWER Exclusionary zoning
7. Complete this statement. A transaction broker ________________. - ANSWER Owes
limited confidentiality to both parties.
8. Broker Jones committed fraud in a real estate transaction that involved 6 investors in
a limited partnership. What is the maximum recovery possible for the realestate
recovery fund that results in a single judgment as a result of this fraudulent activity? -
ANSWER $50,000
9. A mortgagor defaulted on his loan payments. The lender foreclosed on the property.
Some States allow the party that was foreclosed the right to redeem the property
following foreclosure. What is the term used to describe this right? - ANSWER Statutory
right of redemption
10. The sales comparison approach usually CANNOT be used when estimating the
value of which of the following? - ANSWER Special-purpose properties
11. Which of the following describes expenses on a closing statement? - ANSWER
Always entered as debit entries
12. The original mortgagor is NOT released from liability if title to property is taken by
what? - ANSWER Subject to the mortgage
, 13. What is the purpose of the closing statement? - ANSWER To summarize and
simplify the transaction
14. Which is the following best describes an acknowledgement of a deed? - ANSWER It
can be taken by an officer of the state.
15. The federal reserve board is charged with the responsibility of monitoring and
controlling the supply of money and cost of credit. What actions could it use to cause an
increase in interest rates? - ANSWER Sell government securities, increase the reserve
requirement, and increase the discount rate.
16. Which statement regarding a planned unit development (PUD) is correct? -
ANSWER It is a type of zoning that permits flexibility from rigid zoning standards.
17. Who or what determines the rates for documentary stamps? - ANSWER State Law
18. Which term is used to refer to the difference between current market value of a
property and the amount the owner still owes on the mortgage? - ANSWER Equity
29. What are the Federal Reserve actions taken to affect interest rates? - ANSWER
Monetary policy
30. Savings associations compete for new money to make mortgage and construction
loans with which of the following? - ANSWER All other lenders and users of money
31. Who are the parties involved in a deed of trust? - ANSWER Beneficiary, trustee, and
trustor
32. Which type of valuation is typically requested to determine the selling price of a
property in a short sale transaction? - ANSWER Broker price option (BPO)
33. What is the 1st step in an appraisal? - ANSWER Define the problem
34. The subject property has 3 bedrooms; the comparable property has 4 bedrooms. A
bedroom is worth $5000. What is the correct adjustment? - ANSWER Subtract $5000
from the comparable property
35. A relatively new 4 bedroom home with only one bathroom is an example of which of
the following? - ANSWER Functional Obsolescence
36. What is one example of external obsolescence? - ANSWER A freeway constructed
adjacent to a lot
37. Know what type of depreciation can not be recovered? - ANSWER Incurable
