FREC Practice Test UPDATED ACTUAL Questions And Correct Answers
C
Terms in this set (100)
1. Which of the following statements is true regarding a B
mortgage loan originator (MLO)?
a. A mortgage loan originator is the same as a mortgage
broker.
b. A mortgage loan originator must have a separate
license.
c. A mortgage loan originator makes loans.
d. A mortgage loan originator must have a real estate
license.
2. A real estate appraiser's fee for professional service is C
based on which of the following?
a. A percentage of the property's gross income.
b. A percentage of the fair market value of the property.
c. The time and difficulty of the appraisal.
d. A percentage of the property's sales price.
3. Which of the following best describes the real estate A
brokerage business?
a. Service business
b. Simple business
c. Business with few opportunities available
d. Construction business
4. All of the following are responsibilities of a property D
manager, EXCEPT:
a. Renting property for an absentee owner.
b. Collecting rent.
c. Overseeing maintenance.
d. Preparing leases
5. What does the term "farming" refer to in real estate? A
a. Specializing in one geographic area
b. Working in a cooperative manner
c. Specializing in agricultural properties
d. Specializing in the sales of orange groves or cattle
farms
,6. Which insurance policies can a real estate licensee D
offer to the public without additional state licensing?
a. Flood insurance
b. Fire insurance
c. Renter's insurance
d. None of the above
7. What is the purpose of the National Association of A
REALTORS?
a. Preserve the right of individuals to own real property
through an exchange of information.
b. Organize antigovernment activities.
c. Promote unethical practice of real estate professionals.
d. Promote unethical practice of real estate professionals.
8. What does the designation of REALTOR® signify? B
a. Anyone in possession of a real estate license is a
REALTOR®
b. The designation identifies the real estate professional
as a member of the NAR.
c. The designation is evidence that the licensee has an
extensive background in the real estate profession.
d. The designation is evidence that the licensee has
completed extensive real estate studies.
9. A developer contracts to build a home according to B
the buyer's specifications. This is an example of which
type of building?
a. Tract
b. Custom
c. Speculative
d. Subdivision
10. Which of the following best describes licensees who A
are involved in business brokerage?
a. They must be able to analyze financial statements and
understand balance sheets.
b. They are not required to know much about the
business they are selling.
c. They must have a separate license.
d. They never become involved in the tax aspects of the
business.
11. Real estate licensees are required to be D
knowledgeable in all of the following areas, EXCEPT:
a. Marketing
b. Valuation
c. Property transfer
d. Accounting
, 12. Which service provided by real estate licensees B
requires the most experience and knowledge?
a. Property management
b. Counseling
c. Appraising
d. Agricultural sales
13. An appraiser who is registered, licensed, or certified D
under F.S. 475 Part II, must be utilized in which of the
following?
a. All appraisals
b. The appraisal of residential property
c. The appraisal of nonresidential property
d. Federally-related transactions
14. When a developer completes construction of a new C
subdivision, all streets, electric, water, and sewer
installation are finished and deeded to the city or county.
What is this process called?
a. A quit claim deed
b. An easement
c. Dedication
d. Annexation
C
Terms in this set (100)
1. Which of the following statements is true regarding a B
mortgage loan originator (MLO)?
a. A mortgage loan originator is the same as a mortgage
broker.
b. A mortgage loan originator must have a separate
license.
c. A mortgage loan originator makes loans.
d. A mortgage loan originator must have a real estate
license.
2. A real estate appraiser's fee for professional service is C
based on which of the following?
a. A percentage of the property's gross income.
b. A percentage of the fair market value of the property.
c. The time and difficulty of the appraisal.
d. A percentage of the property's sales price.
3. Which of the following best describes the real estate A
brokerage business?
a. Service business
b. Simple business
c. Business with few opportunities available
d. Construction business
4. All of the following are responsibilities of a property D
manager, EXCEPT:
a. Renting property for an absentee owner.
b. Collecting rent.
c. Overseeing maintenance.
d. Preparing leases
5. What does the term "farming" refer to in real estate? A
a. Specializing in one geographic area
b. Working in a cooperative manner
c. Specializing in agricultural properties
d. Specializing in the sales of orange groves or cattle
farms
,6. Which insurance policies can a real estate licensee D
offer to the public without additional state licensing?
a. Flood insurance
b. Fire insurance
c. Renter's insurance
d. None of the above
7. What is the purpose of the National Association of A
REALTORS?
a. Preserve the right of individuals to own real property
through an exchange of information.
b. Organize antigovernment activities.
c. Promote unethical practice of real estate professionals.
d. Promote unethical practice of real estate professionals.
8. What does the designation of REALTOR® signify? B
a. Anyone in possession of a real estate license is a
REALTOR®
b. The designation identifies the real estate professional
as a member of the NAR.
c. The designation is evidence that the licensee has an
extensive background in the real estate profession.
d. The designation is evidence that the licensee has
completed extensive real estate studies.
9. A developer contracts to build a home according to B
the buyer's specifications. This is an example of which
type of building?
a. Tract
b. Custom
c. Speculative
d. Subdivision
10. Which of the following best describes licensees who A
are involved in business brokerage?
a. They must be able to analyze financial statements and
understand balance sheets.
b. They are not required to know much about the
business they are selling.
c. They must have a separate license.
d. They never become involved in the tax aspects of the
business.
11. Real estate licensees are required to be D
knowledgeable in all of the following areas, EXCEPT:
a. Marketing
b. Valuation
c. Property transfer
d. Accounting
, 12. Which service provided by real estate licensees B
requires the most experience and knowledge?
a. Property management
b. Counseling
c. Appraising
d. Agricultural sales
13. An appraiser who is registered, licensed, or certified D
under F.S. 475 Part II, must be utilized in which of the
following?
a. All appraisals
b. The appraisal of residential property
c. The appraisal of nonresidential property
d. Federally-related transactions
14. When a developer completes construction of a new C
subdivision, all streets, electric, water, and sewer
installation are finished and deeded to the city or county.
What is this process called?
a. A quit claim deed
b. An easement
c. Dedication
d. Annexation
