Florida Real Estate Practice Final
Exam Questions with Verified Answers
1. When must a written no brokerage relationship notice be provided to customers? -
ANSWERSBefore showing homes that are listed.
2. Which of the following can not be used by the federal reserve to change or control the
money supply? - ANSWERSAfter income tax rates
3. A broker has an exclusive right of sale listing to sell an owner's property, with no
other authority granted. What type of agency does the broker have with the principal? -
ANSWERSSpecial agency
4. A licensee is being disciplined by the FREC for multiple violations of F.S. 475. Which
penalty may the Commision NOT impose? - ANSWERSA fine not to exceed $5,000
and/or imprisonment not to exceed one year.
5. A judgment his awarded against a licensee for $100,000. What is the maximum the
complaintent may be compensated from the real estate recovery fund? -
ANSWERS50%
6. What term is applied to the practice of keeping low income people out of a particular
neighborhood? - ANSWERSExclusionary zoning
7. Complete this statement. A transaction broker ________________. -
ANSWERSOwes limited confidentiality to both parties.
8. Broker Jones committed fraud in a real estate transaction that involved 6 investors in
a limited partnership. What is the maximum recovery possible for the realestate
recovery fund that results in a single judgment as a result of this fraudulent activity? -
ANSWERS$50,000
9. A mortgagor defaulted on his loan payments. The lender foreclosed on the property.
Some States allow the party that was foreclosed the right to redeem the property
following foreclosure. What is the term used to describe this right? -
ANSWERSStatutory right of redemption
10. The sales comparison approach usually CANNOT be used when estimating the
value of which of the following? - ANSWERSSpecial-purpose properties
11. Which of the following describes expenses on a closing statement? -
ANSWERSAlways entered as debit entries
, 12. The original mortgagor is NOT released from liability if title to property is taken by
what? - ANSWERSSubject to the mortgage
13. What is the purpose of the closing statement? - ANSWERSTo summarize and
simplify the transaction
14. Which is the following best describes an acknowledgement of a deed? -
ANSWERSIt can be taken by an officer of the state.
15. The federal reserve board is charged with the responsibility of monitoring and
controlling the supply of money and cost of credit. What actions could it use to cause an
increase in interest rates? - ANSWERSSell government securities, increase the reserve
requirement, and increase the discount rate.
16. Which statement regarding a planned unit development (PUD) is correct? -
ANSWERSIt is a type of zoning that permits flexibility from rigid zoning standards.
17. Who or what determines the rates for documentary stamps? - ANSWERSState Law
18. Which term is used to refer to the difference between current market value of a
property and the amount the owner still owes on the mortgage? - ANSWERSEquity
19. Who determines the form for the closing statement? - ANSWERSThe closing agent
20. Concerning all FHA/VA Mortgages, which statement is correct? -
ANSWERSBorrowers must meet minimum requirements.
21. When may the equity of redemption be exercised? - ANSWERSUntil the time of
foreclosure
22. What type of planning study deals with local business activity? -
ANSWERSEconomic base analysis
23. A broker may deposit all the falling into escrow, EXCEPT: - ANSWERSPersonal
funds in excess of FREC limits
24. The 1988 Fair Housing Amendment Act expanded on the Civil Rights Act of 1968 to
include banning discrimination on the basis of what? - ANSWERSHandicap
25. The monthly payment under FHA 203 (b) may NOT include what? - ANSWERSFire
insurance
26. To whom is the original judgment assigned when money is to be paid from the Real
Estate Recovery fund? - ANSWERSFlorida Real Estate Commission
Exam Questions with Verified Answers
1. When must a written no brokerage relationship notice be provided to customers? -
ANSWERSBefore showing homes that are listed.
2. Which of the following can not be used by the federal reserve to change or control the
money supply? - ANSWERSAfter income tax rates
3. A broker has an exclusive right of sale listing to sell an owner's property, with no
other authority granted. What type of agency does the broker have with the principal? -
ANSWERSSpecial agency
4. A licensee is being disciplined by the FREC for multiple violations of F.S. 475. Which
penalty may the Commision NOT impose? - ANSWERSA fine not to exceed $5,000
and/or imprisonment not to exceed one year.
5. A judgment his awarded against a licensee for $100,000. What is the maximum the
complaintent may be compensated from the real estate recovery fund? -
ANSWERS50%
6. What term is applied to the practice of keeping low income people out of a particular
neighborhood? - ANSWERSExclusionary zoning
7. Complete this statement. A transaction broker ________________. -
ANSWERSOwes limited confidentiality to both parties.
8. Broker Jones committed fraud in a real estate transaction that involved 6 investors in
a limited partnership. What is the maximum recovery possible for the realestate
recovery fund that results in a single judgment as a result of this fraudulent activity? -
ANSWERS$50,000
9. A mortgagor defaulted on his loan payments. The lender foreclosed on the property.
Some States allow the party that was foreclosed the right to redeem the property
following foreclosure. What is the term used to describe this right? -
ANSWERSStatutory right of redemption
10. The sales comparison approach usually CANNOT be used when estimating the
value of which of the following? - ANSWERSSpecial-purpose properties
11. Which of the following describes expenses on a closing statement? -
ANSWERSAlways entered as debit entries
, 12. The original mortgagor is NOT released from liability if title to property is taken by
what? - ANSWERSSubject to the mortgage
13. What is the purpose of the closing statement? - ANSWERSTo summarize and
simplify the transaction
14. Which is the following best describes an acknowledgement of a deed? -
ANSWERSIt can be taken by an officer of the state.
15. The federal reserve board is charged with the responsibility of monitoring and
controlling the supply of money and cost of credit. What actions could it use to cause an
increase in interest rates? - ANSWERSSell government securities, increase the reserve
requirement, and increase the discount rate.
16. Which statement regarding a planned unit development (PUD) is correct? -
ANSWERSIt is a type of zoning that permits flexibility from rigid zoning standards.
17. Who or what determines the rates for documentary stamps? - ANSWERSState Law
18. Which term is used to refer to the difference between current market value of a
property and the amount the owner still owes on the mortgage? - ANSWERSEquity
19. Who determines the form for the closing statement? - ANSWERSThe closing agent
20. Concerning all FHA/VA Mortgages, which statement is correct? -
ANSWERSBorrowers must meet minimum requirements.
21. When may the equity of redemption be exercised? - ANSWERSUntil the time of
foreclosure
22. What type of planning study deals with local business activity? -
ANSWERSEconomic base analysis
23. A broker may deposit all the falling into escrow, EXCEPT: - ANSWERSPersonal
funds in excess of FREC limits
24. The 1988 Fair Housing Amendment Act expanded on the Civil Rights Act of 1968 to
include banning discrimination on the basis of what? - ANSWERSHandicap
25. The monthly payment under FHA 203 (b) may NOT include what? - ANSWERSFire
insurance
26. To whom is the original judgment assigned when money is to be paid from the Real
Estate Recovery fund? - ANSWERSFlorida Real Estate Commission
