Real Estate Exam Practice Questions
with Accurate Answers
Pam is a partner in CRL Brokerage. Her liability is limited to the amount of money she
has invested. What type of partner is Pam? - ANSWERSLimited - Limited partners'
liability is proportionate to the amount of money that partner has invested.
Mr. Schroeder installed built-in bookcases that he intended to remain as part of the
home forever. This refers to which part of IRMA? - ANSWERSIntent of the parties
placing the item on the property - The I in IRMA stands for intent of the parties placing
the item on the property.
Recently retired Admiral Bongo and his wife, Lucy, contact you. They want you to help
them purchase their dream house now that he's retired, but one that has the necessary
accommodations for the admiral's disability. They also confide in you that they don't
have a lot of money saved up for a down payment. Which type of financing may work
best for them? - ANSWERSA VA loan, which requires no down payment. Current and
former members of the military may be eligible for a VA loan. Although the FHA 203K
loan allows for renovation financing, VA loans require no down payment.
Applicants for a Florida real estate license must meet certain qualifications. Which entity
has the power to grant or deny applications for licensure? - ANSWERSFREC - The
FREC has the power to grant or deny applications for real estate licensure.
The quasi-judicial powers of the FREC include which of the following responsibilities? -
ANSWERSDiscipline licensees - The FREC's quasi-judicial responsibilities include
suspending or revoking licenses and imposing administrative fines.
In Florida, sales associates have legal authority to prepare ______________. -
ANSWERSsales contracts - In Florida, licensed sales associates and licensees have
the authority to prepare sales contracts, along with option contracts, listing agreements,
buyer representation agreements, and leases with a term of less than one year.
Which of the following is the cost of replacing a building in the case of total loss? -
ANSWERSInsured value - Insured value should be the cost of replacement in the event
the property's destroyed.
Your buyer client, Max, just signed a purchase agreement for a $520,000 home. He has
a 60% LTV ratio, and his lender's charging a 1.5% loan origination fee. What loan
origination fee can Max expect to pay at closing? - ANSWERS$4,680 - A 60% LTV ratio
means that Max is financing 60% of his purchase of $520,000, which equals $312,000
($520,000 x 0.60). The loan origination fee is 1.5% of the financed amount: $312,000 x
0.015 = $4,680.
, Informing parties of material facts related to a transaction describes the duty of ______.
- ANSWERSDisclosure
Disclosure is making sure parties (clients, customers, and others) know about facts that
are material to a transaction.
RESPA prohibits kickbacks between which parties? - ANSWERSSettlement service
providers - Settlement providers aren't allowed to receive kickbacks according to
RESPA.
Which of the following best describes a general agent? - ANSWERSAn agent with the
broad responsibility to handle all details related to a specific piece of property. - A
general agent has responsibility to handle all details concerning a specific property.
Property managers often serve as general agents.
When must a branch office must be registered with the DBPR? - ANSWERSWhen the
use of the office and the activities performed there are for more than just emergency
shelter for inclement weather. - Whenever an office is used as a regular location in
which to conduct brokerage activities, it must be registered
A complaint that indicates a violation of any Florida statute or legally enacted DBPR or
FREC rule is said to be what? - ANSWERSlegally sufficient - A complaint that indicates
this sort of violation is said to be legally sufficient to investigate, as it would fall under
the scope of the DBPR.
Which of the following could an investor who sells an apartment house buy using a
1031 exchange? - ANSWERSDuplex, office building, or warehouse
Jackson Elementary School is undergoing some major renovations during the summer
while school is out of session. The renovation crew has a detailed list of requirements
for the disposal and drainage of wastewater and sewage. These requirements are likely
part of the ________ with which the renovators must comply. - ANSWERSBuilding
Code
Building codes specify construction standards to ensure the health and safety of those
using the buildings. Sanitary drainage and disposal is a common building code
standard.
Nicholas is working with a buyer client who wants a special clause added to his
purchase contract. How should Nicholas handle this? - ANSWERSInstruct the client to
hire an attorney to draft the clause.
Which of the following is a legitimate reason to counter an offer? - ANSWERSprice - If a
seller (or buyer, for that matter) wants to counter an offer, it should be related to a
with Accurate Answers
Pam is a partner in CRL Brokerage. Her liability is limited to the amount of money she
has invested. What type of partner is Pam? - ANSWERSLimited - Limited partners'
liability is proportionate to the amount of money that partner has invested.
Mr. Schroeder installed built-in bookcases that he intended to remain as part of the
home forever. This refers to which part of IRMA? - ANSWERSIntent of the parties
placing the item on the property - The I in IRMA stands for intent of the parties placing
the item on the property.
Recently retired Admiral Bongo and his wife, Lucy, contact you. They want you to help
them purchase their dream house now that he's retired, but one that has the necessary
accommodations for the admiral's disability. They also confide in you that they don't
have a lot of money saved up for a down payment. Which type of financing may work
best for them? - ANSWERSA VA loan, which requires no down payment. Current and
former members of the military may be eligible for a VA loan. Although the FHA 203K
loan allows for renovation financing, VA loans require no down payment.
Applicants for a Florida real estate license must meet certain qualifications. Which entity
has the power to grant or deny applications for licensure? - ANSWERSFREC - The
FREC has the power to grant or deny applications for real estate licensure.
The quasi-judicial powers of the FREC include which of the following responsibilities? -
ANSWERSDiscipline licensees - The FREC's quasi-judicial responsibilities include
suspending or revoking licenses and imposing administrative fines.
In Florida, sales associates have legal authority to prepare ______________. -
ANSWERSsales contracts - In Florida, licensed sales associates and licensees have
the authority to prepare sales contracts, along with option contracts, listing agreements,
buyer representation agreements, and leases with a term of less than one year.
Which of the following is the cost of replacing a building in the case of total loss? -
ANSWERSInsured value - Insured value should be the cost of replacement in the event
the property's destroyed.
Your buyer client, Max, just signed a purchase agreement for a $520,000 home. He has
a 60% LTV ratio, and his lender's charging a 1.5% loan origination fee. What loan
origination fee can Max expect to pay at closing? - ANSWERS$4,680 - A 60% LTV ratio
means that Max is financing 60% of his purchase of $520,000, which equals $312,000
($520,000 x 0.60). The loan origination fee is 1.5% of the financed amount: $312,000 x
0.015 = $4,680.
, Informing parties of material facts related to a transaction describes the duty of ______.
- ANSWERSDisclosure
Disclosure is making sure parties (clients, customers, and others) know about facts that
are material to a transaction.
RESPA prohibits kickbacks between which parties? - ANSWERSSettlement service
providers - Settlement providers aren't allowed to receive kickbacks according to
RESPA.
Which of the following best describes a general agent? - ANSWERSAn agent with the
broad responsibility to handle all details related to a specific piece of property. - A
general agent has responsibility to handle all details concerning a specific property.
Property managers often serve as general agents.
When must a branch office must be registered with the DBPR? - ANSWERSWhen the
use of the office and the activities performed there are for more than just emergency
shelter for inclement weather. - Whenever an office is used as a regular location in
which to conduct brokerage activities, it must be registered
A complaint that indicates a violation of any Florida statute or legally enacted DBPR or
FREC rule is said to be what? - ANSWERSlegally sufficient - A complaint that indicates
this sort of violation is said to be legally sufficient to investigate, as it would fall under
the scope of the DBPR.
Which of the following could an investor who sells an apartment house buy using a
1031 exchange? - ANSWERSDuplex, office building, or warehouse
Jackson Elementary School is undergoing some major renovations during the summer
while school is out of session. The renovation crew has a detailed list of requirements
for the disposal and drainage of wastewater and sewage. These requirements are likely
part of the ________ with which the renovators must comply. - ANSWERSBuilding
Code
Building codes specify construction standards to ensure the health and safety of those
using the buildings. Sanitary drainage and disposal is a common building code
standard.
Nicholas is working with a buyer client who wants a special clause added to his
purchase contract. How should Nicholas handle this? - ANSWERSInstruct the client to
hire an attorney to draft the clause.
Which of the following is a legitimate reason to counter an offer? - ANSWERSprice - If a
seller (or buyer, for that matter) wants to counter an offer, it should be related to a
