Florida Real Estate Broker Exam
Questions with Verified Answers
Brokerage Fee on closing disclosure - ANSWERSdebit seller only; page 2
Accrued depreciation using the age-life method - ANSWERSNever depreciate a land,
Sales Price, Appraisal, Survey, Title Insurance, Tangible Tax, Stamp Tax, = Add those,
Don't add any Land Value. Only Building. Multiply say 80% building (20% Land)
Residential Income producing property 27.5 years life for investment property, Non
residential 39 years, so divide by years, = Answers
capital gains taxes on this sale - ANSWERS$0
A licensed Florida sales associate who wants to apply for a broker's license must -
ANSWERSdisclose the applicant's Social Security number on the license application.
status of the tenant's lease - ANSWERSThe bank may terminate the tenant's lease.
formula to calculate the equity dividend rate - ANSWERSBefore-tax cash flow divided
by the owner's equity
A prospective buyer came into the listing company's real estate office on Monday
morning and left with the receptionist a written offer accompanied by an earnest money
check to purchase a vacant lot. Which statement is TRUE regarding this situation? -
ANSWERSThe broker must deposit the escrow check into the escrow account no later
than the end of business on Thursday of the same week.
The maximum long-term capital gains on property sold by a taxpayer in the 25% bracket
who earns less than $400,000 in ordinary income is - ANSWERS15%.
If a broker knows that there is a structural defect that affects the value of residential
property, the broker is obligated to disclose this information to the buyer -
ANSWERSregardless of the type of brokerage relationship that exists with the buyer
and the seller.
If the closing is on July 6, the prepaid interest on a new institutional mortgage covers a
period of how many days and is charged to whom? - ANSWERS26 days; buyer
Which statement describes the principle of substitution as it applies to the cost-
depreciation approach? - ANSWERSThe theory is that a knowledgeable purchaser
would pay no more for a property than the cost of acquiring an equally desirable site,
combined with building an acceptable substitute structure.
, Which element of comparison is adjusted to derive a normal sale price using the sales
comparison approach? - ANSWERSConditions of sale
What mortgage right allows a borrower to prevent a foreclosure by paying the entire
balance due to the lender? - ANSWERSEquity of redemption
Which statement is TRUE concerning radon? - ANSWERSRadon tests conducted in
homes within a single neighborhood provide reliable estimates of whether radon is a
potential hazard in neighboring properties.
adjusted bank balance - ANSWERSformula
If a licensee intends to give limited representation to a homeseller, which brokerage
relationship disclosure(s) is (are) required? - ANSWERSNo disclosures required
Jack and Jill form a general partnership real estate brokerage entity. Jill has an active
broker license, but Jack does not. Jill is killed in a car accident. Which statement is
TRUE regarding this situation? - ANSWERSA new active broker must fill the vacancy
within 14 calendar days and register with the DBPR.
What remedy would BEST compensate the owner? - ANSWERSSuit for compensatory
damages
How is the purchase price shown? - ANSWERScredit seller, debit buyer; page 3
An executed contract for sale and purchase fails to close. What is the requirement
regarding retention of the brokerage relationship documents associated with the
transaction? - ANSWERSThe broker must retain the file with the brokerage relationship
documents for five years.
What type of mortgage encumbers more than one parcel of property? -
ANSWERSBlanket
Jack and Jill form a limited partnership to broker real estate. They are NOT required to -
ANSWERSregister all limited partners with the DBPR.
Which statement applies to notices of noncompliance? - ANSWERSThe Department of
Business and Professional Regulation (DBPR) may issue a notice of noncompliance as
a first response to a minor violation.
Which statement regarding corporations is FALSE? - ANSWERSFlorida Real Estate
Commission (FREC) rules prohibit a not-for-profit corporation from registering as a real
estate brokerage entity.
A broker is a buyer agent for a buyer. The buyer has hired the broker to conduct an
appraisal on the property he is purchasing for the purpose of securing a mortgage from
Questions with Verified Answers
Brokerage Fee on closing disclosure - ANSWERSdebit seller only; page 2
Accrued depreciation using the age-life method - ANSWERSNever depreciate a land,
Sales Price, Appraisal, Survey, Title Insurance, Tangible Tax, Stamp Tax, = Add those,
Don't add any Land Value. Only Building. Multiply say 80% building (20% Land)
Residential Income producing property 27.5 years life for investment property, Non
residential 39 years, so divide by years, = Answers
capital gains taxes on this sale - ANSWERS$0
A licensed Florida sales associate who wants to apply for a broker's license must -
ANSWERSdisclose the applicant's Social Security number on the license application.
status of the tenant's lease - ANSWERSThe bank may terminate the tenant's lease.
formula to calculate the equity dividend rate - ANSWERSBefore-tax cash flow divided
by the owner's equity
A prospective buyer came into the listing company's real estate office on Monday
morning and left with the receptionist a written offer accompanied by an earnest money
check to purchase a vacant lot. Which statement is TRUE regarding this situation? -
ANSWERSThe broker must deposit the escrow check into the escrow account no later
than the end of business on Thursday of the same week.
The maximum long-term capital gains on property sold by a taxpayer in the 25% bracket
who earns less than $400,000 in ordinary income is - ANSWERS15%.
If a broker knows that there is a structural defect that affects the value of residential
property, the broker is obligated to disclose this information to the buyer -
ANSWERSregardless of the type of brokerage relationship that exists with the buyer
and the seller.
If the closing is on July 6, the prepaid interest on a new institutional mortgage covers a
period of how many days and is charged to whom? - ANSWERS26 days; buyer
Which statement describes the principle of substitution as it applies to the cost-
depreciation approach? - ANSWERSThe theory is that a knowledgeable purchaser
would pay no more for a property than the cost of acquiring an equally desirable site,
combined with building an acceptable substitute structure.
, Which element of comparison is adjusted to derive a normal sale price using the sales
comparison approach? - ANSWERSConditions of sale
What mortgage right allows a borrower to prevent a foreclosure by paying the entire
balance due to the lender? - ANSWERSEquity of redemption
Which statement is TRUE concerning radon? - ANSWERSRadon tests conducted in
homes within a single neighborhood provide reliable estimates of whether radon is a
potential hazard in neighboring properties.
adjusted bank balance - ANSWERSformula
If a licensee intends to give limited representation to a homeseller, which brokerage
relationship disclosure(s) is (are) required? - ANSWERSNo disclosures required
Jack and Jill form a general partnership real estate brokerage entity. Jill has an active
broker license, but Jack does not. Jill is killed in a car accident. Which statement is
TRUE regarding this situation? - ANSWERSA new active broker must fill the vacancy
within 14 calendar days and register with the DBPR.
What remedy would BEST compensate the owner? - ANSWERSSuit for compensatory
damages
How is the purchase price shown? - ANSWERScredit seller, debit buyer; page 3
An executed contract for sale and purchase fails to close. What is the requirement
regarding retention of the brokerage relationship documents associated with the
transaction? - ANSWERSThe broker must retain the file with the brokerage relationship
documents for five years.
What type of mortgage encumbers more than one parcel of property? -
ANSWERSBlanket
Jack and Jill form a limited partnership to broker real estate. They are NOT required to -
ANSWERSregister all limited partners with the DBPR.
Which statement applies to notices of noncompliance? - ANSWERSThe Department of
Business and Professional Regulation (DBPR) may issue a notice of noncompliance as
a first response to a minor violation.
Which statement regarding corporations is FALSE? - ANSWERSFlorida Real Estate
Commission (FREC) rules prohibit a not-for-profit corporation from registering as a real
estate brokerage entity.
A broker is a buyer agent for a buyer. The buyer has hired the broker to conduct an
appraisal on the property he is purchasing for the purpose of securing a mortgage from
