Practice Exam Florida Real Estate
Questions with Correct Answers
Maxine didn't understand the paperwork that an oil company had her sign when they
started drilling for oil on her property. The guy that got her to sign the paperwork was
very nice and told her she would never have to move off the property - but could sell it
anytime if she chose. But when they struck oil, she wasn't entitled to any of the money
from the oil. What rights had she signed over to the oil company?
Littoral
Harvest
Mineral
Riparian - ANSWERSMineral
Which statement is true regarding the Government National Mortgage Market
Association (GNMA?)
GNMA is privately owned, not government owned.
GNMA carries a limited credit guarantee of the U.S. Government.
GNMA acts as a guarantor of securities rather than purchasing the securities.
GNMA purchases securities to free up the flow of money. - ANSWERSGNMA acts as a
guarantor of securities rather than purchasing the securities.
Earnest money deposit is shown on a closing statement as a what?
Debit to the buyer only
Credit to seller and debit to buyer
Debit to the seller and credit to the buyer
Credit to buyer only - ANSWERSCredit to buyer only
Which of the following statements is false based on the Statute of Frauds?
Purchase and sale real estate contracts must be in writing
Option contracts can be verbal if for less than one year
Deeds and mortgages must be in writing
Lease agreements for more than one year must be in writing - ANSWERSOption
contracts can be verbal if for less than one year
Which tenancy ownership creates the right of survivorship?
Tenancy by the entireties
Tenancy in common
Estate in Severalty
,Tenancy at will - ANSWERSTenancy by the entireties
Hilda and Hyatt paid $7,875 last year in mortgage interest, $4,200 in principal
payments, $1,850 in property tax, $840 in mortgage insurance, $1,200 in property
insurance, and $1,500 in maintenance. Which expenses are deductible from their
federal taxes?
Homeowners insurance of $1,200 and property taxes of $1,850
Mortgage insurance of $840 and Mortgage interest of $7,875
Maintenance expenses of $1,500 and principle payments of $4,200
Mortgage interest of $7,875 and property taxes of $1,850 - ANSWERSMortgage interest
of $7,875 and property taxes of $1,850
Lauren made an offer on a home. The seller countered her offer. Which statement is
true?
Lauren's original offer is still a valid offer for the seller to sign and accept.
Lauren must officially reject the counter before she can write an offer on another
property.
If Lauren ignores the counteroffer, it is automatically accepted.
Lauren's original offer was terminated by the seller's counteroffer. - ANSWERSLauren's
original offer was terminated by the seller's counteroffer.
Why was the Federal Reserve System established?
Provide a safer and more stable monetary system and to influence the availability and
cost of money and credit
Tighten lending criteria
Insure mortgages on single family homes
Insure mortgage backed securities - ANSWERSProvide a safer and more stable
monetary system and to influence the availability and cost of money and credit
Under the Fair Housing Act of 1968, which category of groups are protected from
discrimination?
Behavior
Age
Marital Status
National Origin - ANSWERSNational Origin
You sell Janice a current up-to-date rental list and provide all the proper disclosures and
paperwork. Janice contacts you 35 days later and asks for a refund in writing because
she did not rent a place from the list. She is entitled to how much of a refund?
100%
0%
, 25%
75% - ANSWERS0%
Residential rental property can be depreciated over how many years using the straight-
line depreciation method?
27 years
27.5 years
39 years
39.5 years - ANSWERS27.5 years
You list a home on the Atlantic for $4,250,000. The seller agrees to pay a 6%
commission. However, the seller agrees that he will pay 7% commission on the amount
of purchase price above $3,750,000. The home sells for $4,100,000. How much is the
total commission?
$287,000
$249,500
$260,000
$283,500 - ANSWERS$3,750,000 x .06 = $225,000. $4,100,000 - $3,750,000 =
$350,000 x .07 = $24,500 + $225,000 =
$249,500.
When the judge ruled that the seller must sell his house, this is an example of what?
Specific Performance
Liquidated Damages
Rescission
Compensatory Damages - ANSWERSSpecific Performance
Taylor was several months behind in her mortgage. She got a notice from the bank
telling her that she now owed the full unpaid balance of the mortgage. What clause in a
mortgage was activated by her late payments?
Acceleration
Defeasance
Habendum
Redemption - ANSWERSAcceleration
Who is responsible for deciding the brokerage relationship?
seller
client
broker
buyer - ANSWERSbroker
Questions with Correct Answers
Maxine didn't understand the paperwork that an oil company had her sign when they
started drilling for oil on her property. The guy that got her to sign the paperwork was
very nice and told her she would never have to move off the property - but could sell it
anytime if she chose. But when they struck oil, she wasn't entitled to any of the money
from the oil. What rights had she signed over to the oil company?
Littoral
Harvest
Mineral
Riparian - ANSWERSMineral
Which statement is true regarding the Government National Mortgage Market
Association (GNMA?)
GNMA is privately owned, not government owned.
GNMA carries a limited credit guarantee of the U.S. Government.
GNMA acts as a guarantor of securities rather than purchasing the securities.
GNMA purchases securities to free up the flow of money. - ANSWERSGNMA acts as a
guarantor of securities rather than purchasing the securities.
Earnest money deposit is shown on a closing statement as a what?
Debit to the buyer only
Credit to seller and debit to buyer
Debit to the seller and credit to the buyer
Credit to buyer only - ANSWERSCredit to buyer only
Which of the following statements is false based on the Statute of Frauds?
Purchase and sale real estate contracts must be in writing
Option contracts can be verbal if for less than one year
Deeds and mortgages must be in writing
Lease agreements for more than one year must be in writing - ANSWERSOption
contracts can be verbal if for less than one year
Which tenancy ownership creates the right of survivorship?
Tenancy by the entireties
Tenancy in common
Estate in Severalty
,Tenancy at will - ANSWERSTenancy by the entireties
Hilda and Hyatt paid $7,875 last year in mortgage interest, $4,200 in principal
payments, $1,850 in property tax, $840 in mortgage insurance, $1,200 in property
insurance, and $1,500 in maintenance. Which expenses are deductible from their
federal taxes?
Homeowners insurance of $1,200 and property taxes of $1,850
Mortgage insurance of $840 and Mortgage interest of $7,875
Maintenance expenses of $1,500 and principle payments of $4,200
Mortgage interest of $7,875 and property taxes of $1,850 - ANSWERSMortgage interest
of $7,875 and property taxes of $1,850
Lauren made an offer on a home. The seller countered her offer. Which statement is
true?
Lauren's original offer is still a valid offer for the seller to sign and accept.
Lauren must officially reject the counter before she can write an offer on another
property.
If Lauren ignores the counteroffer, it is automatically accepted.
Lauren's original offer was terminated by the seller's counteroffer. - ANSWERSLauren's
original offer was terminated by the seller's counteroffer.
Why was the Federal Reserve System established?
Provide a safer and more stable monetary system and to influence the availability and
cost of money and credit
Tighten lending criteria
Insure mortgages on single family homes
Insure mortgage backed securities - ANSWERSProvide a safer and more stable
monetary system and to influence the availability and cost of money and credit
Under the Fair Housing Act of 1968, which category of groups are protected from
discrimination?
Behavior
Age
Marital Status
National Origin - ANSWERSNational Origin
You sell Janice a current up-to-date rental list and provide all the proper disclosures and
paperwork. Janice contacts you 35 days later and asks for a refund in writing because
she did not rent a place from the list. She is entitled to how much of a refund?
100%
0%
, 25%
75% - ANSWERS0%
Residential rental property can be depreciated over how many years using the straight-
line depreciation method?
27 years
27.5 years
39 years
39.5 years - ANSWERS27.5 years
You list a home on the Atlantic for $4,250,000. The seller agrees to pay a 6%
commission. However, the seller agrees that he will pay 7% commission on the amount
of purchase price above $3,750,000. The home sells for $4,100,000. How much is the
total commission?
$287,000
$249,500
$260,000
$283,500 - ANSWERS$3,750,000 x .06 = $225,000. $4,100,000 - $3,750,000 =
$350,000 x .07 = $24,500 + $225,000 =
$249,500.
When the judge ruled that the seller must sell his house, this is an example of what?
Specific Performance
Liquidated Damages
Rescission
Compensatory Damages - ANSWERSSpecific Performance
Taylor was several months behind in her mortgage. She got a notice from the bank
telling her that she now owed the full unpaid balance of the mortgage. What clause in a
mortgage was activated by her late payments?
Acceleration
Defeasance
Habendum
Redemption - ANSWERSAcceleration
Who is responsible for deciding the brokerage relationship?
seller
client
broker
buyer - ANSWERSbroker
