BOB HOGUE PRACTICE EXAM
QUESTIONS AND ANSWERS
What authority originates from the U.S. Constitution and relates to protection of health
and welfare of citizens at local levels?
A)
Situs
B)
Community protection power
C)
Escheat
D)
Police power - Correct Answers -D)
Police power
Police power - The authority of government to protect the property, life, health, and
welfare of its citizens.
Situs refers to prospective buyers' preference for a certain area.
Escheat provides for a government, normally a state government, to take the property of
an owner who dies intestate and who has no known heirs entitled
to receive the property. The power of escheat is a practical solution to ensure that
property is always owned by someone.
You have been hired to appraise the local public library building. The approach that is
likely to be the MOST relevant is the
A)
comparable sales approach.
B)
income approach.
C)
public land and property approach.
D)
cost approach. - Correct Answers -D)
cost approach.
single-family homes / a vacant lot in an established neighborhood - sales comparison
approach
,income-producing property - income approach
special-purpose properties like hospitals, schools, or government buildings, newly
constructed homes, cross-checking the other two approaches - cost approach
Three claimants are requesting relief from the Real Estate Recovery Fund. All three
claimants were named in a single judgment (the same real estate transaction). What is
the maximum payment from the Recovery Fund for this claim?
A)
$75,000
B)
$1,000,000
C)
$150,000
D)
$50,000 - Correct Answers -D) $50,000
The maximum payment from the fund for a single transaction is $50,000
T / F - Brokers and sales associates should NOT prepare deeds, mortgages, or
promissory notes. - Correct Answers -T - Unless they are also attorneys, brokers and
sales associates who prepare such legal documents could jeopardize their real estate
licenses.
T / F - A buyer brokerage agreement is an employment contract between the brokerage
and a buyer. - Correct Answers -T - A buyer brokerage agreement is an employment
contract with a buyer.
T / F - The statute of limitations for an oral contract is five years. - Correct Answers -F -
The statute of limitations for an oral contract is four years.
T / F - Love and affection is an example of valuable consideration. - Correct Answers -F
- Love and affection is an example of good consideration because it cannot be
measured in terms of money.
T / F - An implied contract is one in which some or all of the obligations or conditions of
a contract are NOT stated expressly. - Correct Answers -T - With an implied contract,
the obligations or conditions of the contract may be reasonably implied by the acts of
the parties or by the nature of the transaction.
T / F - A signed sale contract between the time of signing and the time of title closing is
an executed contract. - Correct Answers -F - A sale contract between the time of
signing and the time the title is conveyed from the grantor to the grantee is an executory
contract.
,T / F - A real estate contract that includes a radon gas contingency is a voidable
contract. - Correct Answers -T - A real estate contract that includes a radon contingency
is voidable because if the contingency is not satisfied and released, the offer and
acceptance element of an enforceable contract is not met.
T / F - A real estate sale contract is an example of a bilateral contract. - Correct
Answers -T - A bilateral contract obligates both parties to perform in accordance with
the terms of the contract. A sale contract is a bilateral contract because both the seller
and the buyer are obligated to perform.
T / F - The person making an offer is the offeree. - Correct Answers -F - The offeree is
the person receiving the offer.
makes offer - offeror
receives offer - offeree
T / F - An electronic signature can be accepted as part of a real estate contract. -
Correct Answers -T - Letters and other written communications, including a signature,
may be sent by electronic means or facsimile, and will be considered part of the
contract.
T / F - A counteroffer will extend an offer. - Correct Answers -F - A counteroffer kills the
original offer.
The original law requiring that the annual percentage rate (APR) be disclosed to
consumers was the
A)
Florida "Little FTC Act."
B)
Equal Credit Opportunity Act.
C)
Truth in Lending Act.
D)
Real Estate Settlement Procedures Act. - Correct Answers -C. Truth in Lending Act
(TILA)
Constructive notice is
A)
notarizing a conveyance.
B)
information advertised in the newspaper.
C)
provided by recording in the public records.
D)
information learned by reading, seeing, or hearing. - Correct Answers -C)
provided by recording in the public records.
, A developer who wants to develop a new subdivision must submit
A)
a subdivision plat map to the planning commission.
B)
a site plan to the zoning board of adjustment.
C)
an existing land-use study to the planning commission.
D)
a thoroughfare study to the Department of Transportation. - Correct Answers -A)
a subdivision plat map to the planning commission.
Which individual must hold an active real estate license?
A)
A person who sells time-share periods for customers
B)
A person employed by Meadow Hills Cemetery to sell cemetery lots
C)
A salaried employee of an oil company who buys and sells land on behalf of the
company
D)
An executor of a will who is selling the real property of a deceased individual - Correct
Answers -A)
A person who sells time-share periods for customers
A woman has homesteaded her residence. Her home has an assessed value of
$279,000. She is a nonveteran who is totally and permanently disabled as a result of a
serious car accident. She is also legally blind. What is her cumulative county tax
exemption on her homesteaded residence?
A)
$51,000
B)
$50,500
C)
$55,000
D)
$26,000 - Correct Answers -A)
$51,000
homestead over 75k = -50k (does not apply to school board tax rate - only city and
county)
disabled nonvet = -500
blind = -500
if she was a totally disabled veteran, she would be 100% exempt /// also disabled
veterans under 100% but over 10% = -5000
if she were a widow that would be another - 500
QUESTIONS AND ANSWERS
What authority originates from the U.S. Constitution and relates to protection of health
and welfare of citizens at local levels?
A)
Situs
B)
Community protection power
C)
Escheat
D)
Police power - Correct Answers -D)
Police power
Police power - The authority of government to protect the property, life, health, and
welfare of its citizens.
Situs refers to prospective buyers' preference for a certain area.
Escheat provides for a government, normally a state government, to take the property of
an owner who dies intestate and who has no known heirs entitled
to receive the property. The power of escheat is a practical solution to ensure that
property is always owned by someone.
You have been hired to appraise the local public library building. The approach that is
likely to be the MOST relevant is the
A)
comparable sales approach.
B)
income approach.
C)
public land and property approach.
D)
cost approach. - Correct Answers -D)
cost approach.
single-family homes / a vacant lot in an established neighborhood - sales comparison
approach
,income-producing property - income approach
special-purpose properties like hospitals, schools, or government buildings, newly
constructed homes, cross-checking the other two approaches - cost approach
Three claimants are requesting relief from the Real Estate Recovery Fund. All three
claimants were named in a single judgment (the same real estate transaction). What is
the maximum payment from the Recovery Fund for this claim?
A)
$75,000
B)
$1,000,000
C)
$150,000
D)
$50,000 - Correct Answers -D) $50,000
The maximum payment from the fund for a single transaction is $50,000
T / F - Brokers and sales associates should NOT prepare deeds, mortgages, or
promissory notes. - Correct Answers -T - Unless they are also attorneys, brokers and
sales associates who prepare such legal documents could jeopardize their real estate
licenses.
T / F - A buyer brokerage agreement is an employment contract between the brokerage
and a buyer. - Correct Answers -T - A buyer brokerage agreement is an employment
contract with a buyer.
T / F - The statute of limitations for an oral contract is five years. - Correct Answers -F -
The statute of limitations for an oral contract is four years.
T / F - Love and affection is an example of valuable consideration. - Correct Answers -F
- Love and affection is an example of good consideration because it cannot be
measured in terms of money.
T / F - An implied contract is one in which some or all of the obligations or conditions of
a contract are NOT stated expressly. - Correct Answers -T - With an implied contract,
the obligations or conditions of the contract may be reasonably implied by the acts of
the parties or by the nature of the transaction.
T / F - A signed sale contract between the time of signing and the time of title closing is
an executed contract. - Correct Answers -F - A sale contract between the time of
signing and the time the title is conveyed from the grantor to the grantee is an executory
contract.
,T / F - A real estate contract that includes a radon gas contingency is a voidable
contract. - Correct Answers -T - A real estate contract that includes a radon contingency
is voidable because if the contingency is not satisfied and released, the offer and
acceptance element of an enforceable contract is not met.
T / F - A real estate sale contract is an example of a bilateral contract. - Correct
Answers -T - A bilateral contract obligates both parties to perform in accordance with
the terms of the contract. A sale contract is a bilateral contract because both the seller
and the buyer are obligated to perform.
T / F - The person making an offer is the offeree. - Correct Answers -F - The offeree is
the person receiving the offer.
makes offer - offeror
receives offer - offeree
T / F - An electronic signature can be accepted as part of a real estate contract. -
Correct Answers -T - Letters and other written communications, including a signature,
may be sent by electronic means or facsimile, and will be considered part of the
contract.
T / F - A counteroffer will extend an offer. - Correct Answers -F - A counteroffer kills the
original offer.
The original law requiring that the annual percentage rate (APR) be disclosed to
consumers was the
A)
Florida "Little FTC Act."
B)
Equal Credit Opportunity Act.
C)
Truth in Lending Act.
D)
Real Estate Settlement Procedures Act. - Correct Answers -C. Truth in Lending Act
(TILA)
Constructive notice is
A)
notarizing a conveyance.
B)
information advertised in the newspaper.
C)
provided by recording in the public records.
D)
information learned by reading, seeing, or hearing. - Correct Answers -C)
provided by recording in the public records.
, A developer who wants to develop a new subdivision must submit
A)
a subdivision plat map to the planning commission.
B)
a site plan to the zoning board of adjustment.
C)
an existing land-use study to the planning commission.
D)
a thoroughfare study to the Department of Transportation. - Correct Answers -A)
a subdivision plat map to the planning commission.
Which individual must hold an active real estate license?
A)
A person who sells time-share periods for customers
B)
A person employed by Meadow Hills Cemetery to sell cemetery lots
C)
A salaried employee of an oil company who buys and sells land on behalf of the
company
D)
An executor of a will who is selling the real property of a deceased individual - Correct
Answers -A)
A person who sells time-share periods for customers
A woman has homesteaded her residence. Her home has an assessed value of
$279,000. She is a nonveteran who is totally and permanently disabled as a result of a
serious car accident. She is also legally blind. What is her cumulative county tax
exemption on her homesteaded residence?
A)
$51,000
B)
$50,500
C)
$55,000
D)
$26,000 - Correct Answers -A)
$51,000
homestead over 75k = -50k (does not apply to school board tax rate - only city and
county)
disabled nonvet = -500
blind = -500
if she was a totally disabled veteran, she would be 100% exempt /// also disabled
veterans under 100% but over 10% = -5000
if she were a widow that would be another - 500
