FL Real Estate Exam - Magnolia
School all terms Questions with
Correct Answers
What is leverage? - ANSWERSUse of borrowed funds to purchase assets or to finance
an investment
How is the binder deposit notated on the closing disclosure? - ANSWERSCredit buyer -
BDCB
What is the status of a sales associates license but they do not complete the required
post licensing education prior to their first renewal cycle - ANSWERSNull and void
How many sections are in a Township? - ANSWERS36 (square miles)
Which mortgage clause allows the mortgagee the right to demand the outstanding loan
balance plus secured interest in the event that the borrower sells or transfers any
interest in the property without the lenders prior written consent - ANSWERSDue on
sale clause
What requirement is not apply regarding dwellings built prior to 1978 -
ANSWERSBuyers must have the property inspected for lead-based paint
Two close friends on a daycare center as joint tenants with the right of Survivorship.
One owner passed away, who owns the daycare center? - ANSWERSSurviving owner
becomes soul owner of the daycare center by operation of law
The subject property is a three-bedroom, two-bath home. A comparable property is a
three-bedroom, two and one-half-bath home. An appraiser has determined that the
extra half bath is worth about $2,200. What adjustment should the appraiser make? -
ANSWERSSubtract $2200 from the comparable
Which of the following is incorrect concerning FHA and VA mortgages? - ANSWERSVA
is the government insured loan and could be accompanied by an origination fee
FHA (Federal Housing Administration) mortgage - ANSWERSGovernment insured loan
Origination fee
VA (Veterans Affairs) mortgage - ANSWERSGovernment guaranteed loan
Funding fee
Origination fee
,What lien takes priority first and second? - ANSWERSProperty Tax, Special
Assessment
Intangible tax is noted on the closing disclosure as - ANSWERSDebit to the buyer
What is a blind ad? - ANSWERSDoesn't list the realty company or brokerage
Which of the following is a penalty for first time minor violation that is not accompanied
by a fine? - ANSWERSNotice of noncompliance
Nonlicensed assistants may perform which activity? - ANSWERSHandout objective
written information on a rental property
Two brothers have decided to purchase investment property in or not sure how they
want to take title. The brothers wives have looked into the options and have decided
that in the event that one of the brothers die, his wife would like to receive title. With his
information how would they take title? - ANSWERSTenancy in Common
A father intended to leave his house to a son and executed a general warranty deed to
the property and gave it to her son. Shortly after, the father died, before the deed could
be recorded. Which applies? - ANSWERSThis one has title to the property because title
to the property was conveyed when the father delivered the deed to his son and his son
voluntarily excepted it
Which of the following clauses or covenants in a deed states that the grantor owns the
property and has the right to convey it? - ANSWERSCovenant of seisin (own it and
have right to sell it)
Amy, Bob, Frank, and Francine all co-own of Beach House on St. Petersburg Beach.
Frank died, and his co-ownership of the property passed, according to his will, to his
son. How do these parties own the property? - ANSWERSTenants in common
Which statement is true about the monthly payments on a 30-year fully amortized loan?
- ANSWERSInitially, interest is the largest portion of the payment
beginning of loan - ANSWERSmost payments go to interest
What are the rights flowing through your property called? - ANSWERSRiparian rights
If a sales associate picks up an escrow check on Tuesday, when does the broker have
to deposit it into the escrow account? - ANSWERSImmediately, as defined, by Friday /
3 business days
If the title company is holding the escrow check, what must be on the purchase and
sales contract regarding the title company? - ANSWERSThe name, address, and phone
number of the title company
, A broker sold an up-to-date and accurate rental list to a customer on June 10th for
$475.00 On June 14th the customer decided not to obtain a rental and then orally
demanded, and should receive, how much of a refund? - ANSWERS$356.25 - only
within 30 days - mistake 100% get back - didn't like the list then 75%
Which statement is false concerning the primary mortgage market in the secondary
mortgage market? - ANSWERSThe primary objective of the second mortgage market is
to create new loans for borrowers to increase the money supply for lenders
Primary mortgage market - ANSWERSAlways between the buyer(borrower) and lender
Consists of lenders that originate new mortgage loans for borrowers.
Secondary Mortgage - ANSWERSAn existing loan is bought
What part of an adjustable rate mortgage adjusts? - ANSWERSIndex
What are the two components of an adjustable rate mortgage? - ANSWERSIndex and
margin
Which of the following methods of surveying property is used in subdivision where plat
maps have been recorded? - ANSWERSLaw and block aka plat method
Plat maps or subdivision survey method is? - ANSWERSLot and block
What type of notice is also called legal notice and is achieved by recording documents
in public records? - ANSWERSConstructive notice
In which theory of lending does a borrower retain ownership (title)? - ANSWERSLien
theory
What title theory state is Florida? - ANSWERSLien theory state (long and LEAN)
In what theory of lending does the borrower not retain ownership(title) during the loan
period? - ANSWERSTitle theory
If you were at the POB and you are headed and N90° east, what direction are you
headed? - ANSWERSEast=90°
What is the summary of the history of a property's ownership? - ANSWERSAbstract of
title
Concerning the statute of frauds which does not apply - ANSWERSThe statue of frauds
states that all contracts must be in writing to be enforceable
School all terms Questions with
Correct Answers
What is leverage? - ANSWERSUse of borrowed funds to purchase assets or to finance
an investment
How is the binder deposit notated on the closing disclosure? - ANSWERSCredit buyer -
BDCB
What is the status of a sales associates license but they do not complete the required
post licensing education prior to their first renewal cycle - ANSWERSNull and void
How many sections are in a Township? - ANSWERS36 (square miles)
Which mortgage clause allows the mortgagee the right to demand the outstanding loan
balance plus secured interest in the event that the borrower sells or transfers any
interest in the property without the lenders prior written consent - ANSWERSDue on
sale clause
What requirement is not apply regarding dwellings built prior to 1978 -
ANSWERSBuyers must have the property inspected for lead-based paint
Two close friends on a daycare center as joint tenants with the right of Survivorship.
One owner passed away, who owns the daycare center? - ANSWERSSurviving owner
becomes soul owner of the daycare center by operation of law
The subject property is a three-bedroom, two-bath home. A comparable property is a
three-bedroom, two and one-half-bath home. An appraiser has determined that the
extra half bath is worth about $2,200. What adjustment should the appraiser make? -
ANSWERSSubtract $2200 from the comparable
Which of the following is incorrect concerning FHA and VA mortgages? - ANSWERSVA
is the government insured loan and could be accompanied by an origination fee
FHA (Federal Housing Administration) mortgage - ANSWERSGovernment insured loan
Origination fee
VA (Veterans Affairs) mortgage - ANSWERSGovernment guaranteed loan
Funding fee
Origination fee
,What lien takes priority first and second? - ANSWERSProperty Tax, Special
Assessment
Intangible tax is noted on the closing disclosure as - ANSWERSDebit to the buyer
What is a blind ad? - ANSWERSDoesn't list the realty company or brokerage
Which of the following is a penalty for first time minor violation that is not accompanied
by a fine? - ANSWERSNotice of noncompliance
Nonlicensed assistants may perform which activity? - ANSWERSHandout objective
written information on a rental property
Two brothers have decided to purchase investment property in or not sure how they
want to take title. The brothers wives have looked into the options and have decided
that in the event that one of the brothers die, his wife would like to receive title. With his
information how would they take title? - ANSWERSTenancy in Common
A father intended to leave his house to a son and executed a general warranty deed to
the property and gave it to her son. Shortly after, the father died, before the deed could
be recorded. Which applies? - ANSWERSThis one has title to the property because title
to the property was conveyed when the father delivered the deed to his son and his son
voluntarily excepted it
Which of the following clauses or covenants in a deed states that the grantor owns the
property and has the right to convey it? - ANSWERSCovenant of seisin (own it and
have right to sell it)
Amy, Bob, Frank, and Francine all co-own of Beach House on St. Petersburg Beach.
Frank died, and his co-ownership of the property passed, according to his will, to his
son. How do these parties own the property? - ANSWERSTenants in common
Which statement is true about the monthly payments on a 30-year fully amortized loan?
- ANSWERSInitially, interest is the largest portion of the payment
beginning of loan - ANSWERSmost payments go to interest
What are the rights flowing through your property called? - ANSWERSRiparian rights
If a sales associate picks up an escrow check on Tuesday, when does the broker have
to deposit it into the escrow account? - ANSWERSImmediately, as defined, by Friday /
3 business days
If the title company is holding the escrow check, what must be on the purchase and
sales contract regarding the title company? - ANSWERSThe name, address, and phone
number of the title company
, A broker sold an up-to-date and accurate rental list to a customer on June 10th for
$475.00 On June 14th the customer decided not to obtain a rental and then orally
demanded, and should receive, how much of a refund? - ANSWERS$356.25 - only
within 30 days - mistake 100% get back - didn't like the list then 75%
Which statement is false concerning the primary mortgage market in the secondary
mortgage market? - ANSWERSThe primary objective of the second mortgage market is
to create new loans for borrowers to increase the money supply for lenders
Primary mortgage market - ANSWERSAlways between the buyer(borrower) and lender
Consists of lenders that originate new mortgage loans for borrowers.
Secondary Mortgage - ANSWERSAn existing loan is bought
What part of an adjustable rate mortgage adjusts? - ANSWERSIndex
What are the two components of an adjustable rate mortgage? - ANSWERSIndex and
margin
Which of the following methods of surveying property is used in subdivision where plat
maps have been recorded? - ANSWERSLaw and block aka plat method
Plat maps or subdivision survey method is? - ANSWERSLot and block
What type of notice is also called legal notice and is achieved by recording documents
in public records? - ANSWERSConstructive notice
In which theory of lending does a borrower retain ownership (title)? - ANSWERSLien
theory
What title theory state is Florida? - ANSWERSLien theory state (long and LEAN)
In what theory of lending does the borrower not retain ownership(title) during the loan
period? - ANSWERSTitle theory
If you were at the POB and you are headed and N90° east, what direction are you
headed? - ANSWERSEast=90°
What is the summary of the history of a property's ownership? - ANSWERSAbstract of
title
Concerning the statute of frauds which does not apply - ANSWERSThe statue of frauds
states that all contracts must be in writing to be enforceable
