RE Brokers Exam UPDATED ACTUAL
Exam Questions and CORRECT Answers
The MOST common tenant complaint in apartment properties centers on: - CORRECT
ANSWER - maintenance service requests
Which statement is TRUE regarding the National Flood Insurance Program (NFIP)?
A) Structures located in a special flood hazard area (SFHA) are exempt from flood insurance
requirements.
B) For homeowners to be eligible to purchase national flood insurance, the community must
participate in the National Flood Insurance Program.
C) The National Flood Insurance Program is administered by the Department of Housing and
Urban Development.
D) All existing structures located in a special flood hazard area (SFHA) must be elevated to or
above the base flood elevation. - CORRECT ANSWER - B) For homeowners to be
eligible to purchase national flood insurance, the community must participate in the National
Flood Insurance Program
Jack and Jill form a limited partnership to broker real estate. They are NOT required to: -
CORRECT ANSWER - register all limited partners with the DBPR
Positive leverage results when: - CORRECT ANSWER - the annual constant on the debt
service is less than the overall rate (OAR)
If a licensee intends to give limited representation to a homeseller, which brokerage relationship
disclosure(s) is (are) required? - CORRECT ANSWER - No disclosures required
,An investor purchases an office building for $700,000. He pays $4,000 for an appraisal, $1,000
for a survey, $30,000 for his broker's commission, and $3,000 for title insurance. The appraisal
indicated that the total property value was $700,000 and the land was worth $140,000. What is
the allowed depreciation deduction per year? - CORRECT ANSWER - $15,138.46
Which statement applies only to restricted appraisal reports?
A) The appraisal must indicate the property rights that were appraised.
B) A signed certification must be included.
C) The intended user of the appraisal is exclusively the client.
D) The appraisal must state and define the type of value that was estimated. - CORRECT
ANSWER - C) The intended user of the appraisal is exclusively the client.
Which statement describes the principle of substitution as it applies to the cost approach?
A) The theory is that the value of a property tends to be related to its competitive position among
substitute investment choices producing equivalent investment returns and risk.
B) The theory is that value is created by expectation of future benefits.
C) The theory is that a knowledgeable purchaser would pay no more for a property than the cost
of acquiring an equally desirable site, combined with building an acceptable substitute structure.
D) The theory is that a knowledgeable purchaser would pay no more for a property than the cost
of acquiring an acceptable substitute property. - CORRECT ANSWER - C) The theory is
that a knowledgeable purchaser would pay no more for a property than the cost of acquiring an
equally desirable site, combined with building an acceptable substitute structure.
,Which statement is TRUE regarding a title company holding the escrow funds?
A) Within 5 business days after the deposit is due under the terms of the contract, the broker
must telephone the title company to confirm that the deposit has been placed in escrow.
B) If the buyer and the seller made demands for the escrowed funds, the broker must make a
timely report of conflicting demands to the DBPR.
C) The broker must be a signatory on the title company's escrow account if the title company's
escrow account is being used in lieu of the broker's own escrow account.
D) Within 10 business days after the date the broker requests written verification of receipt of the
deposit, the broker must provide the seller's broker with a copy of the verification. - CORRECT
ANSWER - D) Within 10 business days after the date the broker requests written
verification of receipt of the deposit, the broker must provide the seller's broker with a copy of
the verification.
An active New York broker has held a license since 2010. She has lived in Jacksonville, Florida
for a year, and wants a Florida real estate broker's license. Which statement applies to this
situation? - CORRECT ANSWER - She must successfully complete the broker prelicense
course and pass the state broker license examination
A broker is a buyer agent for a buyer. The buyer has hired the broker to conduct an appraisal on
the property he is purchasing for the purpose of securing a mortgage from a local credit union.
Which statement is TRUE regarding this situation? - CORRECT ANSWER - Because this
is a federally related transaction, the appraisal must be conducted by a state-certified or state-
licensed appraiser
Which statement is TRUE concerning radon?
A) Two homes next door to each other may have very different levels of radon.
B) Federal law requires testing for radon.
, C) Florida law exempts lease contracts from the radon disclosure requirements.
D) Buyers who include a radon inspection contingency agreement in a real estate contract and
later cancel the contract because the radon exceeds a level specified in the contract must agree to
surrender the deposit to the seller as liquidated damages. - CORRECT ANSWER - A)
Two homes next door to each other may have very different levels of radon
What type of mortgage encumbers more than one parcel of property? - CORRECT
ANSWER - Blanket
(It is usually originated by a lender for a developer who wants to sell lots from a larger piece of
property.)
After an appraiser has derived three separate indicated values using the various approaches to
value, the appraiser then calculates a final estimate of value using - CORRECT
ANSWER - reconciliation
reconciliation - CORRECT ANSWER - this is the process of evaluating and weighing
each value indication obtained from the various approaches to value
A 10-year lease requires the tenant to pay $4,000 per month, as well as taxes, insurance, and
maintenance on the building. What type of lease is this? - CORRECT ANSWER - Net
Net lease - CORRECT ANSWER - this type of lease implies that the tenant is responsible
for taxes, maintenance, and property insurance
Which form does the Real Estate Settlement Procedures Act (RESPA) require to be given to
borrowers at LEAST three days before the closing of a real estate transaction? - CORRECT
ANSWER - Closing Disclosure
Exam Questions and CORRECT Answers
The MOST common tenant complaint in apartment properties centers on: - CORRECT
ANSWER - maintenance service requests
Which statement is TRUE regarding the National Flood Insurance Program (NFIP)?
A) Structures located in a special flood hazard area (SFHA) are exempt from flood insurance
requirements.
B) For homeowners to be eligible to purchase national flood insurance, the community must
participate in the National Flood Insurance Program.
C) The National Flood Insurance Program is administered by the Department of Housing and
Urban Development.
D) All existing structures located in a special flood hazard area (SFHA) must be elevated to or
above the base flood elevation. - CORRECT ANSWER - B) For homeowners to be
eligible to purchase national flood insurance, the community must participate in the National
Flood Insurance Program
Jack and Jill form a limited partnership to broker real estate. They are NOT required to: -
CORRECT ANSWER - register all limited partners with the DBPR
Positive leverage results when: - CORRECT ANSWER - the annual constant on the debt
service is less than the overall rate (OAR)
If a licensee intends to give limited representation to a homeseller, which brokerage relationship
disclosure(s) is (are) required? - CORRECT ANSWER - No disclosures required
,An investor purchases an office building for $700,000. He pays $4,000 for an appraisal, $1,000
for a survey, $30,000 for his broker's commission, and $3,000 for title insurance. The appraisal
indicated that the total property value was $700,000 and the land was worth $140,000. What is
the allowed depreciation deduction per year? - CORRECT ANSWER - $15,138.46
Which statement applies only to restricted appraisal reports?
A) The appraisal must indicate the property rights that were appraised.
B) A signed certification must be included.
C) The intended user of the appraisal is exclusively the client.
D) The appraisal must state and define the type of value that was estimated. - CORRECT
ANSWER - C) The intended user of the appraisal is exclusively the client.
Which statement describes the principle of substitution as it applies to the cost approach?
A) The theory is that the value of a property tends to be related to its competitive position among
substitute investment choices producing equivalent investment returns and risk.
B) The theory is that value is created by expectation of future benefits.
C) The theory is that a knowledgeable purchaser would pay no more for a property than the cost
of acquiring an equally desirable site, combined with building an acceptable substitute structure.
D) The theory is that a knowledgeable purchaser would pay no more for a property than the cost
of acquiring an acceptable substitute property. - CORRECT ANSWER - C) The theory is
that a knowledgeable purchaser would pay no more for a property than the cost of acquiring an
equally desirable site, combined with building an acceptable substitute structure.
,Which statement is TRUE regarding a title company holding the escrow funds?
A) Within 5 business days after the deposit is due under the terms of the contract, the broker
must telephone the title company to confirm that the deposit has been placed in escrow.
B) If the buyer and the seller made demands for the escrowed funds, the broker must make a
timely report of conflicting demands to the DBPR.
C) The broker must be a signatory on the title company's escrow account if the title company's
escrow account is being used in lieu of the broker's own escrow account.
D) Within 10 business days after the date the broker requests written verification of receipt of the
deposit, the broker must provide the seller's broker with a copy of the verification. - CORRECT
ANSWER - D) Within 10 business days after the date the broker requests written
verification of receipt of the deposit, the broker must provide the seller's broker with a copy of
the verification.
An active New York broker has held a license since 2010. She has lived in Jacksonville, Florida
for a year, and wants a Florida real estate broker's license. Which statement applies to this
situation? - CORRECT ANSWER - She must successfully complete the broker prelicense
course and pass the state broker license examination
A broker is a buyer agent for a buyer. The buyer has hired the broker to conduct an appraisal on
the property he is purchasing for the purpose of securing a mortgage from a local credit union.
Which statement is TRUE regarding this situation? - CORRECT ANSWER - Because this
is a federally related transaction, the appraisal must be conducted by a state-certified or state-
licensed appraiser
Which statement is TRUE concerning radon?
A) Two homes next door to each other may have very different levels of radon.
B) Federal law requires testing for radon.
, C) Florida law exempts lease contracts from the radon disclosure requirements.
D) Buyers who include a radon inspection contingency agreement in a real estate contract and
later cancel the contract because the radon exceeds a level specified in the contract must agree to
surrender the deposit to the seller as liquidated damages. - CORRECT ANSWER - A)
Two homes next door to each other may have very different levels of radon
What type of mortgage encumbers more than one parcel of property? - CORRECT
ANSWER - Blanket
(It is usually originated by a lender for a developer who wants to sell lots from a larger piece of
property.)
After an appraiser has derived three separate indicated values using the various approaches to
value, the appraiser then calculates a final estimate of value using - CORRECT
ANSWER - reconciliation
reconciliation - CORRECT ANSWER - this is the process of evaluating and weighing
each value indication obtained from the various approaches to value
A 10-year lease requires the tenant to pay $4,000 per month, as well as taxes, insurance, and
maintenance on the building. What type of lease is this? - CORRECT ANSWER - Net
Net lease - CORRECT ANSWER - this type of lease implies that the tenant is responsible
for taxes, maintenance, and property insurance
Which form does the Real Estate Settlement Procedures Act (RESPA) require to be given to
borrowers at LEAST three days before the closing of a real estate transaction? - CORRECT
ANSWER - Closing Disclosure
