Florida Real Estate Licensure Exam 1-4 Practice Questions and Answers

The scope of a property manager's functions encompasses more than just rent collection, maintenance, and repair. TRUE. A property manager must strive to produce the greatest possible net income over the longest possible time. In doing so, the property manager often needs to develop plans for modernization, remodeling, or alteration of existing properties. Property managers also are responsible for improving tenant relations, as well as for advertising and merchandising. Real estate professionals who specialize in the sale, purchase, and lease of businesses must hold a commercial license. FALSE. In Florida, an active real estate sales associate or broker license is required to market business opportunities. No license distinction is made regarding the type of real estate. Absentee owners can be defined as property owners who do NOT reside on the property and who rely on property managers to supervise the investment TRUE. Absentee owners are property owners who do not reside on the property and who usually rely on property managers to supervise the investment According to Chapter 475, F.S., the definition of residential real estate includes up to four residential units TRUE. Chapter 475, F.S., defines residential real estate as four or fewer residential units, vacant land zoned for four or fewer residential units, or agricultural property of ten or fewer acres. Subdividing is the process of converting parcels of land into smaller units or lots, while development is the process of improving raw land so that it can be put to productive use. TRUE. Subdividing involves converting parcels of land into smaller units or lots, and development involves improving raw land so that it can be put to productive use. The Uniform Standards of Professional Appraisal Practice are standards of practice that must be followed by appraisers but NOT real estate licensees. FALSE. Florida law requires appraisers, real estate brokers, and sales associates to abide by the Uniform Standards of Professional Appraisal Practice when conducting appraisals of real property. The three general categories of residential construction include speculative, custom, and tract TRUE. The categories are speculative (purchasing one or more lots and constructing homes without first securing buyers), custom (constructing a home under contract with a buyer, using plans provided by architect or buyer), and tract (buyer selects a floor plan from a group of several model homes). Appraisers are paid a fee, NOT a commission. TRUE. Appraisers are paid a fee rather than a commission in order to reduce the likelihood of a conflict of interest.