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FL Real Estate: PearsonVue Practice Exam
Questions and Answers
Equity
Ans: The difference between the value of a property and the total
amount of liens against it.
Operating expenses
Ans: Fees subtracted from the effective gross income to determine net
operating income on a property.
Inspection contingency
Ans: A recommendation to insert a contingency in the purchase
agreement to allow for an inspection of the electric service on a
property.
Rescind
Ans: To cancel or revoke a listing contract with permission from the
owners.
Unreasonable restrictions
Ans: Restrictions requested by the owners after advertising and showing
the property, leading to the broker's decision to discontinue the listing.
Time is of the essence
Ans: A contract must be delivered and presented as soon as possible
when this phrase is stated.
Proper supervision
© 2025 All rights reserved
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Ans: Reviewing all documents and transaction files prior to closing a
title insurance policy to protect a buyer from financial losses caused by
an encumbrance to which the policy has not taken an exception.
Valid real estate sales contract
Ans: A contract that is signed by the seller.
Common elements
Ans: Swimming pools and laundry rooms in a condominium apartment
project for the use of unit owners.
Roof condition disclosure
Ans: The condition of the roof must be disclosed to prospective buyers.
Best interests of the owner
Ans: A property manager works in the best interests of the owner.
Adjustment
Ans: Adjusting the sale price of a comparable property based on age and
number of baths.
Loan amount calculation
Ans: Loan amount = appraised value * loan %
First monthly payment
Ans: The first monthly payment on a loan spread over 25 years at an
interest rate of 3/4% per month, with a constant amount paid toward the
principal.
Errors and omissions insurance
Ans: Insurance that protects a licensee in the event of a lawsuit for
property damage discovered after the sale.
Redemption
© 2025 All rights reserved
FL Real Estate: PearsonVue Practice Exam
Questions and Answers
Equity
Ans: The difference between the value of a property and the total
amount of liens against it.
Operating expenses
Ans: Fees subtracted from the effective gross income to determine net
operating income on a property.
Inspection contingency
Ans: A recommendation to insert a contingency in the purchase
agreement to allow for an inspection of the electric service on a
property.
Rescind
Ans: To cancel or revoke a listing contract with permission from the
owners.
Unreasonable restrictions
Ans: Restrictions requested by the owners after advertising and showing
the property, leading to the broker's decision to discontinue the listing.
Time is of the essence
Ans: A contract must be delivered and presented as soon as possible
when this phrase is stated.
Proper supervision
© 2025 All rights reserved
, 2 | Page
Ans: Reviewing all documents and transaction files prior to closing a
title insurance policy to protect a buyer from financial losses caused by
an encumbrance to which the policy has not taken an exception.
Valid real estate sales contract
Ans: A contract that is signed by the seller.
Common elements
Ans: Swimming pools and laundry rooms in a condominium apartment
project for the use of unit owners.
Roof condition disclosure
Ans: The condition of the roof must be disclosed to prospective buyers.
Best interests of the owner
Ans: A property manager works in the best interests of the owner.
Adjustment
Ans: Adjusting the sale price of a comparable property based on age and
number of baths.
Loan amount calculation
Ans: Loan amount = appraised value * loan %
First monthly payment
Ans: The first monthly payment on a loan spread over 25 years at an
interest rate of 3/4% per month, with a constant amount paid toward the
principal.
Errors and omissions insurance
Ans: Insurance that protects a licensee in the event of a lawsuit for
property damage discovered after the sale.
Redemption
© 2025 All rights reserved
