FL Real Estate Exam, Questions with
Correct Answers
What is the status of a sales associate's license if he/she does not complete the
required 45 hours post licensing education prior to his/her first renewal cycle?
a. Involuntary inactive
b. Inactive and void
c. Suspended
d. Null and void - ANSWERSNull and void
**every time you see 'post licensing' know that it is null and void
Which mortgage clause allows the mortgagee the right to demand the outstanding loan
balance plus accrued interest in the event that the borrower sells or transfers any
interest in the property without the lenders prior written consent?
a. Due-on-sale clause
b. Escape clause
c. Acceleration clause
d. Estoppel clause - ANSWERSDue-on-sale clause
**when you see sells or transfers, know its due on sale clause
**acceleration means borrower defaulted
Which of the following liens would take priority?
a. A vendor's lien filed on Dec 12, 2017
b. A mechanic's lien filed on Jan 1, 2018
c. Property tax lien filed on Jan 14, 2018
d. A special assessment tax filed on Jan 13, 2018 - ANSWERSc. Property tax lien filed
on Jan 14, 2018
**the answer will always be property tax - if property tax isn't an option, the answer is
special assessment tax
**dates dont matter
How is the binder deposit shown on the closing disclosure?
a. Debit to buyer only
b. Credit to buyer only
c. Debit to seller and credit to buyer
,d. Debit to buyer and credit to seller - ANSWERSc. Credit to the buyer
Which of the following is incorrect concerning FHA and VA mortgages?
a. FHA and VA mortgages are either gov't insured, or gov't guaranteed loans and
therefore assumable
b. FHA is a gov't-insured loan
c. VA is a gov't guaranteed loan and is accompanied by a funding fee
d. VA is a gov't insured loan and could be accompanied by an origination fee -
ANSWERSd. VA is a gov't insured loan and could be accompanied by an origination fee
**FHA is a gov't insured loan
**VA is a gov't guaranteed loan - less risk, require funding fee
Which of the following is a penalty for a first-time minor violation that is not
accompanied by a fine?
a. A citation
b. A first-degree misdemeanor
c. A notice of non-compliance
d. A formal violation - ANSWERSc. A notice of non-compliance
**like a warning ticket dbpr issue for something small
What would a sales associate be charged with if he took duplicates of listings when he
left the brokerage firm and started to work for another company?
a. Larceny
b. Commingling
c. Breach of trust
d. A First-degree misdemeanor - ANSWERSc. Breach of trust
Which of the following clauses or covenants in a deed states that the grantor owns the
property and has the right to convey it?
a. Covenant of seisin
b. Covenant against encumbrances
c. Habendum clause
d. Covenant of further assurances - ANSWERSa. Covenant of seisin
**it is a sentence in a deed that says I have seisin, which means I legally can sell you
my house
,Which expenses associated with a principal residence are deductible for income tax
purposes?
a. Depreciation and points
b. Operating expenses and maintenance costs
c. Property taxes and mortgage interest
d. Mortgage payments and property taxes - ANSWERSc. Property taxes and mortgage
interest
Which of the following methods of surveying property is used in a subdivision where plat
maps have been recorded?
a. Lot and block
b. Surveyor's method
c. Gov't survey method
d. Meridian's method - ANSWERSa. Lot and block
Which of the following types of notice is also called "legal notice" and is achieved by
recording documents in the public records?
a. Constructive notice
b. Actual notice
c. Real notice
d. Pending notice - ANSWERSa. Constructive notice
**you do not legally have to record your deed. when you record your deed, this is called
constructive notice. this is the act of recording documents for public records
In which of the following mortgage lending theories does the borrower not retain title
during the loan period?
a. Lien theory
b. Title theory
c. Bank theory
d. Loan theory - ANSWERSb. Title theory
**bank theory and loan theory are made up - dont exist
**like when you pay off a car, you get the title
**FL is a lien theory state
If you are at the POB (point of beginning), and you are headed N90*E, what direction
are you headed?
a. North
b. East
c. South
, d. Northeast - ANSWERSb. East
**metes and bounds method of describing property
Which of the following describes leverage?
a. Leverage is the same as cash flow
b. Leverage is the use of borrowed funds to purchase assets or to finance an
investment
c. Leverage can only be positive
d. Leverage is when an investor uses his equity to finance an investment - ANSWERSb.
Leverage is the use of borrowed funds to purchase assets or to finance an investment
**rich people borrow other peoples money so they can make money off of them
A licensed real estate sales associate conducted an appraisal for a fee. The FREC
found the licensee to be in violation of the Uniform Standards of Professional Appraisal
Practice. Which statement is true?
a. Real estate licensees are not required to abide by the USPAP and in this situation the
sales associate would charge a commission for the appraisal, not a fee
b. The licensee is subject to FREC discipline
c. Only the Appraisal Board can impose a penalty in this case- the FREC does not have
authority over appraisal matters
d. Real estate sales associates may not conduct appraisals for a fee unless they are
also certified or licensed real estate appraisers - ANSWERSb. The licensee is subject to
FREC discipline
**7 people in FREC who are (kind of) our bosses
**you cannot do an appraisal if the money is federally related -- meaning there is a loan
involved.
**You CAN do the appraisal if someone is buying cash. You can charge a fee, never a
commission. $ always goes to broker.
What does USPAP stand for and what does it refer to? - ANSWERSUniform Standards
of Professional Appraisal Practice (USPAP)
USPAP is a set of standards that appraisers must follow in order to maintain a high level
of public trust
**USPAP are rules that appraisers follow -- the only time you follow these rules are
when you are doing an appraisal
Correct Answers
What is the status of a sales associate's license if he/she does not complete the
required 45 hours post licensing education prior to his/her first renewal cycle?
a. Involuntary inactive
b. Inactive and void
c. Suspended
d. Null and void - ANSWERSNull and void
**every time you see 'post licensing' know that it is null and void
Which mortgage clause allows the mortgagee the right to demand the outstanding loan
balance plus accrued interest in the event that the borrower sells or transfers any
interest in the property without the lenders prior written consent?
a. Due-on-sale clause
b. Escape clause
c. Acceleration clause
d. Estoppel clause - ANSWERSDue-on-sale clause
**when you see sells or transfers, know its due on sale clause
**acceleration means borrower defaulted
Which of the following liens would take priority?
a. A vendor's lien filed on Dec 12, 2017
b. A mechanic's lien filed on Jan 1, 2018
c. Property tax lien filed on Jan 14, 2018
d. A special assessment tax filed on Jan 13, 2018 - ANSWERSc. Property tax lien filed
on Jan 14, 2018
**the answer will always be property tax - if property tax isn't an option, the answer is
special assessment tax
**dates dont matter
How is the binder deposit shown on the closing disclosure?
a. Debit to buyer only
b. Credit to buyer only
c. Debit to seller and credit to buyer
,d. Debit to buyer and credit to seller - ANSWERSc. Credit to the buyer
Which of the following is incorrect concerning FHA and VA mortgages?
a. FHA and VA mortgages are either gov't insured, or gov't guaranteed loans and
therefore assumable
b. FHA is a gov't-insured loan
c. VA is a gov't guaranteed loan and is accompanied by a funding fee
d. VA is a gov't insured loan and could be accompanied by an origination fee -
ANSWERSd. VA is a gov't insured loan and could be accompanied by an origination fee
**FHA is a gov't insured loan
**VA is a gov't guaranteed loan - less risk, require funding fee
Which of the following is a penalty for a first-time minor violation that is not
accompanied by a fine?
a. A citation
b. A first-degree misdemeanor
c. A notice of non-compliance
d. A formal violation - ANSWERSc. A notice of non-compliance
**like a warning ticket dbpr issue for something small
What would a sales associate be charged with if he took duplicates of listings when he
left the brokerage firm and started to work for another company?
a. Larceny
b. Commingling
c. Breach of trust
d. A First-degree misdemeanor - ANSWERSc. Breach of trust
Which of the following clauses or covenants in a deed states that the grantor owns the
property and has the right to convey it?
a. Covenant of seisin
b. Covenant against encumbrances
c. Habendum clause
d. Covenant of further assurances - ANSWERSa. Covenant of seisin
**it is a sentence in a deed that says I have seisin, which means I legally can sell you
my house
,Which expenses associated with a principal residence are deductible for income tax
purposes?
a. Depreciation and points
b. Operating expenses and maintenance costs
c. Property taxes and mortgage interest
d. Mortgage payments and property taxes - ANSWERSc. Property taxes and mortgage
interest
Which of the following methods of surveying property is used in a subdivision where plat
maps have been recorded?
a. Lot and block
b. Surveyor's method
c. Gov't survey method
d. Meridian's method - ANSWERSa. Lot and block
Which of the following types of notice is also called "legal notice" and is achieved by
recording documents in the public records?
a. Constructive notice
b. Actual notice
c. Real notice
d. Pending notice - ANSWERSa. Constructive notice
**you do not legally have to record your deed. when you record your deed, this is called
constructive notice. this is the act of recording documents for public records
In which of the following mortgage lending theories does the borrower not retain title
during the loan period?
a. Lien theory
b. Title theory
c. Bank theory
d. Loan theory - ANSWERSb. Title theory
**bank theory and loan theory are made up - dont exist
**like when you pay off a car, you get the title
**FL is a lien theory state
If you are at the POB (point of beginning), and you are headed N90*E, what direction
are you headed?
a. North
b. East
c. South
, d. Northeast - ANSWERSb. East
**metes and bounds method of describing property
Which of the following describes leverage?
a. Leverage is the same as cash flow
b. Leverage is the use of borrowed funds to purchase assets or to finance an
investment
c. Leverage can only be positive
d. Leverage is when an investor uses his equity to finance an investment - ANSWERSb.
Leverage is the use of borrowed funds to purchase assets or to finance an investment
**rich people borrow other peoples money so they can make money off of them
A licensed real estate sales associate conducted an appraisal for a fee. The FREC
found the licensee to be in violation of the Uniform Standards of Professional Appraisal
Practice. Which statement is true?
a. Real estate licensees are not required to abide by the USPAP and in this situation the
sales associate would charge a commission for the appraisal, not a fee
b. The licensee is subject to FREC discipline
c. Only the Appraisal Board can impose a penalty in this case- the FREC does not have
authority over appraisal matters
d. Real estate sales associates may not conduct appraisals for a fee unless they are
also certified or licensed real estate appraisers - ANSWERSb. The licensee is subject to
FREC discipline
**7 people in FREC who are (kind of) our bosses
**you cannot do an appraisal if the money is federally related -- meaning there is a loan
involved.
**You CAN do the appraisal if someone is buying cash. You can charge a fee, never a
commission. $ always goes to broker.
What does USPAP stand for and what does it refer to? - ANSWERSUniform Standards
of Professional Appraisal Practice (USPAP)
USPAP is a set of standards that appraisers must follow in order to maintain a high level
of public trust
**USPAP are rules that appraisers follow -- the only time you follow these rules are
when you are doing an appraisal
