Practice Exam 2 Questions And Answers

A broker wishes to be issued several broker licenses for business reasons. Which action may he take? - ANS Hold multiple broker licenses Vivian owns a home with a total value of $500,000. The lot that the home sits on is valued at $85,000. Using the IRS straight-line method, which statement is correct? - ANS The depreciable basis will be $415,000 depreciated over 27.5 years. An active Florida broker accompanies her husband when he goes on active military duty in Ohio for five years. She is not active in real estate in Ohio. Upon their return to Florida, what must she do? - ANS Need not complete any continuing education or reactivation education for those five years and for up to 2 years after honorable discharge Glenda bought a condo in Miami that was sold by a resident of China. They did a private sale without the help of a title agent. She failed to collect the Foreign Seller tax. What will happen? - ANS Responsibility transfers to buyer, Glenda will have to pay it herself Broker Monica notified the Florida Real Estate Commission of Conflicting demands 10 days after it became an issue. How many days does she have left to notify FREC of the Settlement Procedure she is implementing? - ANS Settlement must be reached in 30 days. There are 20 days remaining. Moody rented property. His new tenant had a disability and asked for changes to the property. Which one of the requests would be considered unreasonable under ADA? - ANS Have Moody add an addition increasing the square footage to make it easier for the tenant to live in the property Which township is located 1 tier south and 1 range west of T3S R5E? - ANS T4S R4E CERCLA - ANS CERCLA stands for Comprehensive Environmental Response, Compensation, and Liability Act. The law became necessary to counter the effects of toxic waste dumps. Liability to owners is strict, joint, several, and retroactive. A personal loan to pay medical expenses is protected from foreclosure procedures by what? - ANS Homestead Act A sales associate received an earnest money deposit on Tuesday. The sales associate forgot about the check and gave it late to his Broker on Thursday. By when must the broker make the deposit? - ANS End of day Friday Which tenancy would you choose so that you could will the property to your heirs rather than reverting to the co-owner upon your death? - ANS Tenancy in Common Walter is appraising a 10-year-old home. If the livable square footage is 1,400 with a cost of $95 to replace according to a cost estimating service and the 500 square foot garage can be replaced at $60 per sq. ft., calculate the replacement cost of the structure. - ANS 163,000 N 1/4 of SW 1/4 of SE 1/4 of section 10 contains how many acres? - ANS 10 Nonconforming loans are often associated with which? - ANS Increased flexibility in credit and loan qualifications, nonconforming loans are often accompanied by higher loan fees Brenda bought her house 60 years ago. She doesn't want market value. Instead, she wants to sell the property for a set amount with the real estate licensee taking the rest as profit. What type of listing is this? - ANS A net listing What is liquidation value? - ANS The value associated with a rapid sale. What is another word for a contract that is verbal? - ANS Parol An owner of an apartment complex pays a previous tenant a $50 finder's fee for referring a person who becomes a new tenant. This arrangement is not what? - ANS Legal unless the previous tenant has a real estate license What is the formula to calculate adjusted basis? - ANS The purchase price + costs to buy the property + capital improvements Coercing owners to sell property below market value by scaring them into fearing that the property will lose value due to members of a protected group moving into the neighborhood, and thus profiting by reselling at a higher price is illegal under the Fair Housing Act and is called what? - ANS Blockbusting Janice Raney wants to open a brokerage office operating as Crate Home Realty. She is preparing the sign to be placed by the front entrance. What information needs to be included in sign? - ANS Brokers name, "Lic.Real Estate Brokerage", Name of Brokerage Which is true about a lender selling a loan in the secondary market, but the original lender continues to service the loan. - ANS Servicing a loan may generate fees ranging from 3/8 to 1% of the loan for the original lender Florida Statute 475 requires disclosure be made in which situation? - ANS Residential Sale Broker Pam had worked hard to secure a buyer for her listing. When the deal fell apart, Pam requested 25% of the earnest money deposit. The seller was ok with it having agreed to the stipulation in the listing agreement. However, the buyer was making a conflicting demand on the deposit. Which of the following would be an appropriate settlement procedure for Pam to take? - ANS Request a declaratory judgment Which of the following documents connected to real estate may a real estate licensee complete? - ANS Listing Agreement A broker may place how much of her personal funds into a property management escrow account? - ANS Up to $5000 Which person is NOT EXEMPT from licensure? - ANS Attorney who charges a fee to negotiate a real estate contract for a client