FLORIDA REAL ESTATE EXAM ACTUAL QUESTIONS & CERTIFIED ANSWERS

FLORIDA REAL ESTATE EXAM ACTUAL QUESTIONS & CERTIFIED ANSWERS "A Real Estate appraiser's fee for professional service is based on: a. a percentage of the property's gross income b. a percentage of the fair market value c. the time and difficulty of the appraisal d. a percentage of property's sales - CORRECT ANSWER C. the time and difficulty of the appraisal" "A developer contracts to build a home on a buyer's lot to the buyer's specifications. This is an example of which type of building: a. tract b. custom c. speculative d. subdivision - CORRECT ANSWER b. custom" "A Florida Real Estate lisence is required when anyone performs a service is specified under F.S. 475 when all the following conditions are simultaneously present, unless that individual is otherwise exempt under the law: - CORRECT ANSWER 1. Preforming a service of real estate 2. In the state of Florida 3. For another 4. For compensation" "How many hours of postlicense education are required to renew a brokers license? - CORRECT ANSWER 60 hours" "How long can an voluntary inactive licencee remain in that lisence status? - CORRECT ANSWER indefinately" "The agreement the state of Florida has w/ some other states that recognises the similarity in education and experience required of licencees is called: rocity b. mutual recognition c. cooperative licensure d. intrastate licensing - CORRECT ANSWER b. mutual recognition" "Members of the Florida Real estate Commission may serve no more than _____ consecutive terms - CORRECT ANSWER 2" "A licensee that fails to renew when required to do so will have his or her license placed on _______ ________ - CORRECT ANSWER involuntary Inactive" "The Florida Real Estate Commission held a meeting for the purpose of passing a new rule. This is an exercise of which Commission power? a. executive b. quasi-legislative c. quasi-judicial d. ministerial - CORRECT ANSWER b. quasi-legislative" "When is a request for the renewal of a license effective? a. when recieved by the department b. the day following the experation c. on the date the application is mailed d. on the date indicated on the license - CORRECT ANSWER a. when recieved by the department" "A real estate license expires a. on the date shown on the license b. every 2 years c. on the effective date d. at the end of 1 year - CORRECT ANSWER a. on the date shown on the license" "A sales associate is a _________ of the brokers's principal. - CORRECT ANSWER SubAgent" "Before showing a property, allowing a buyer to sign an offer to buy or seller to sign a leasing agreement, a licensee must provide the party with a written ________ _________ _______ notice. - CORRECT ANSWER Broker Relationship Form" "A member of the public may select from one of 3 options when working with a broker, which are? - CORRECT ANSWER 1. Transaction broker 2. Single Agency 3. No Brokerage relationship" "A Broker a. can refuse offers on behalf of the principal b. can buy the listed property w/o consent of the principal c. must follow all legal instructions of the principal or withdrawl d. must ignore the instructions of a principal when the instructions are not in the best interests of the principal. - CORRECT ANSWER c. must follow all legal instructions of the principal or withdrawl" "Sales associates can be stockholders in a brokerage corporation but may not be _________ or _________? - CORRECT ANSWER officers or directors" "A real estate brokerage corporation must have at least ____ active broker serving as an ______. - CORRECT ANSWER One Officer" "An Ostensible partnership a. is required to file documents w/ the Secretary of State b. is not a true partnership c. cannot be created by real estate brokers d. will not be treated as though the partisipants were partners - CORRECT ANSWER b. is not a true partnership" "A location would be required to register as a brokerage branch office if a. tables and chairs are provided for sales associates and customers b. the location is used as a shelter c. literature is handed out containing the broker's office address d. sales associates are permenently assigned to the location - CORRECT ANSWER d. sales associates are permenently assigned to the location" "The range of penalties that may be imposed on a licensee by the commission for violation of law or rules includes - CORRECT ANSWER Denial, reprimand, fine probation, suspension and recovation......not imprisionment" "If a broker's actions pose an immediate serious danger to the safety and welfare of the public, what action might the Secretary of the department of Business and Professional Regulation take? a. suspended the license of the licensee for 10 years b. issue a summary suspension c. issue a cease and desist order d. place the licensee on probation - CORRECT ANSWER b. issue a summary suspension" "Lenders that refuse to make loans in certain geographic areas based on social or economics considerations are practicing __________. - CORRECT ANSWER redlining" "When all rights under a lease have been transfered to another, the process is called an ___________. - CORRECT ANSWER assignment" "Federal law governing telephone solicitations prohibits calls to residences after ______ - CORRECT ANSWER 9:00 pm" "__________ rights allow a property owner whose property borders on a river or steam the use of the water - CORRECT ANSWER Riparian" "The right to occupy specific space granted by a cooperative association is known as a _________ _________ - CORRECT ANSWER proprietary lease" "Ownership of _______ ________ _______ distinguishes ownership in a cooperative association - CORRECT ANSWER Shares Or Stocks" "Tests used by courts to determine whether an item is real or personal property include - CORRECT ANSWER intent, relationship of the parties, method of annexation, adaption" "The four unities required to create a joint tenancy are a. interest, survivorship, possesion and time b. possession, deed, title and time c. possession, interest, time and title d. person, use, interest and purpose - CORRECT ANSWER c. possession, interest, time and title" "Title means Ownership..... True or False - CORRECT ANSWER True" "A fence built over your property is - CORRECT ANSWER encroachment" "Properties located in subdivided areas are usually described using the _______ Method - CORRECT ANSWER Plat (Lot & Block system)" "Section 13 is _________ of Section 12 - CORRECT ANSWER South" "The main north/south line used in the government survey method is the principal a. latitude b. longitude c. baseline d. meridian - CORRECT ANSWER d. meridian" "A Township contains how many sections? - CORRECT ANSWER 36" "Oral contracts are also known as _________ contracts? - CORRECT ANSWER Parol Contracts" "An _______ contract can be oral or written. - CORRECT ANSWER Express" "The seal of a Notary public, called an __________, should not be confused w/ the word "seal" as used in connection with contract law. - CORRECT ANSWER acknowledgement" "The _____ is the placement of the word seal or the letters "L.S.", locus sigilli, following the signatures of the parties. - CORRECT ANSWER seal" "A ______ _______ is defined as a contract that is wholly written and under seal (in writing and signed. - CORRECT ANSWER formal contract" "____________ of ___________ provides time limits within which parties are allowed to bring legal action to enforse their rights under a contract. - CORRECT ANSWER Statue of Limitations" "Parol Contracts, if a contract is entirely oral , action must be brought within _____ years. - CORRECT ANSWER 4" "Written Contracts, a contract wholly in writting may be enforcedif action is brought within _____ yrs - CORRECT ANSWER 5" "The broker who successfully performs by locating a "willing , ready and able" buyer is said to be the "______ _______" of the sale and is the only broker entitled to a commission. - CORRECT ANSWER Procuring Cause" "the ______ _______ of a sale is what entitles a broker to commission. - CORRECT ANSWER Procuring Cause" "Which statute requires a purchase and sale contract to be in writing to be enforceable? a. Chapter 475 b. Chapter 120 c. Statute of Limitations d. Statute of Frauds - CORRECT ANSWER d. Statute of Frauds" "__________ clause allows the lender to Foreclose on you bc you haven't been making your payments. - CORRECT ANSWER Acceleration" "__________ clause, A.K.A. due-on-sale clause, prevents a borower from transfering any interest in the morgaged property w/o permission of the lender. - CORRECT ANSWER Alienation" "_________ clause is used in mortgages on income-producing real estate. - CORRECT ANSWER Receivership" "The process of qualifying the applicant and the property is called _________ ___________, analysing risk. - CORRECT ANSWER mortgage underwriting" "An applicant is evaluated to dertermine if they can repay a loan by using 3 Criteria - CORRECT ANSWER 1. Credit History 2. Income 3. Other Assets ( real estate, cars, stocks, etc.)" "The buyer will assume personal responsible responsibility for repayment of the balance due on the promissory note and acknowledge existance of the mortgage is - CORRECT ANSWER Assumption of the mortgage" "Borrowers are allowed a recission period (days to back out) which is ____ days, on the refinance (home Equity loan) of a principal residence. - CORRECT ANSWER 3" "The amount of mortgage insurance premium required on an insured FHA mortgage loan includes payment of both - CORRECT ANSWER Up-front mortgage insurance premium (UFMIP) and Annual Mortgage Insurane Premium (AMIP)" "$104,250 is the max amount of a verteran's entitlement of a VA guaranteed loan, and ____ days are required to be a Veteran. - CORRECT ANSWER 181 peacetime 90 military conflict" "The actions of the Board of Governors, called _____ _______, regulate the cost availability of credit in the US. - CORRECT ANSWER monetary policy" "True or false Morgage brokers "make" loans? - CORRECT ANSWER False..... They arrange loans by taking mortgage applications and searching for lowest inerest rates and easiest borrower qualifications" "Life insurance companies are regulated by? - CORRECT ANSWER The state in which they operate" "A loan applicant's past credit history indicates his ________ to honor dept obligations, and his income is a measure of the _______ to repay the loan. - CORRECT ANSWER Willingness, Ability" "If the Federal Reserve Board descides to purchase government securitiesin the open market, the effect will be to: a. decrease the $ supply and cause interest rates to increase b. increase the $ supply and cause interest rates to decrease c. limit the amount of $ member banks may use for loan purposes, causing interest rates to increase d. create a "tight $" market - CORRECT ANSWER b. increase the $ supply and cause interest rates to decrease" "Which group of financial institutions traditionally preferred to make Short-term loans for construction? - CORRECT ANSWER Commercial Banks" "Disintermediation occurs when a. deposits exceed the demand for loans b. depositors withdrawl their savings from depository institutions c. the IRS taxes earnings of investments d. the Federal reserve Board reduces the discount rate - CORRECT ANSWER b. depositors withdrawl their savings from depository institutions" "A blanket Morgage that allows for the release of a single parcel upon payment of a specified sum contains which clause? a. defeasance b. acceleration c. satisfaction d. release - CORRECT ANSWER d. release" "The Federal Housing Administration a. originates loans b. insures loans c. guarantees loans d. certifies loans - CORRECT ANSWER b. insures loans" "Construction loans are paid out in a. full at the begining of construction b. equal installments during the construction process c. full upon completion of constructions d. draws after specific stages of construction are complete - CORRECT ANSWER d. draws after specific stages of construction are complete" "If a mortgage loan payment consists of interest only, the final payment the final payment which includes the full amount borrowed is called a? - CORRECT ANSWER Ballon Payment" "The _______ normally pays for the documentary stamp tax on the deed. - CORRECT ANSWER Seller" "An earnest money deposit held in escrow is reflected on the closing statement as a? a. credit to the buyer b. debit to the buyer c. credit to both the buyer and seller d. credit to the seller - CORRECT ANSWER a. credit to the buyer" "In the absense of any agreement between the parties, the state documentary stamp tax on the deed is paid by the? - CORRECT ANSWER Seller" "Which statement about the brokers portion of the closing statement is true? a. all double-entry items must appear there b. total reciepts minus the binder deposit equals the grand total c. Reciepts and disbursements must equal d. total expenses less the brokerage fee equals the grand total - CORRECT ANSWER c. Reciepts and disbursements must equal" "_______ __ _______applies when a higher-priced property is constructed in an area of lower-priced properties. the higher priced property will REGRESS in value toward the level of less expensive properties in the area. - CORRECT ANSWER Principle of regression" "This approach is usually the most applicable method for appraising residential properties - CORRECT ANSWER Comparable sales approach" "________ expenses do not change w/ occupancy levels, examples property taxes and hazard insurance. - CORRECT ANSWER Fixed" “Owners that buy income properties as investments and depend on professionals to manage them - CORRECT ANSWER Absentee Owners" "a Value estimated based on resent sales of similar properties in the same neighborhood, not an appraisal - CORRECT ANSWER CMA -Comparative Market Analysis..." "A contractor is employed by an owner of land to build on that land to the owner's specifications - CORRECT ANSWER Custom Building" "When a contractor builds on his own land with the hope of locating a purchaser after construction has been completed - CORRECT ANSWER Speculative building" "A developer that acquires a large that aquires a large tract of land and builds a model center from which sales may be made - CORRECT ANSWER tract building" "Property management has grown as a service of real estate primarily bc of an increase of _______ _________ - CORRECT ANSWER Absentee Ownership" "The category of construction that applies when a property owner employs a contractor to build on his or her lot is called________ ___________ - CORRECT ANSWER Custom Building" "_________ has been defined to include anything or any service of Value paid, recieved or expected to be paid or recieved. - CORRECT ANSWER Compensation" "The postlicense educational course for sales associate consists of ________ hours - CORRECT ANSWER 45" "The continuing education requirement consists of ______ hours - CORRECT ANSWER 14" "Florida Real estate sales associates that desire to become brokers must wait _______ ________ before taking the state exam. - CORRECT ANSWER one year" "A tenant in an apartment complex may recieve up to ______ for refferal of a new tenant for the same complex. - CORRECT ANSWER $50" "________ ________ education must be completed during the initial sales associates's license period. - CORRECT ANSWER Post Licensing" "Owner-employers of licensed real estate sales associates are allowed to pay them: a. on a salary basis only b. on a commision basis only c. a commission , but not a bonus d. a commission or salary - CORRECT ANSWER d. a commission or salary" "To qualify for a real estate broker's license, an applicant must have been employed for a minimum of: a. 6 months under one actively licensed broker b. 12 months under one actively licensed broker c. 12 months under 1 or more actively licensed brokers d. 6 months under 1 or more actively lisenced broker - CORRECT ANSWER c. 12 months under 1 or more actively licensed brokers" "A plumber has been appointed by a court to appraise a small business. The plumber....... a. is in violation of F.S. 475 b. is allowed to charge a commission c. may do so and be paid a fee d. must first be licensed under F.S. 475, Part II - CORRECT ANSWER c. may do so and be paid a fee" "A Georgia Auctioneer was asked by a local real estate broker to auction a small motel in Jacksonville. The auction did not result in a sale. The Florida broker paid the auctioneer for out-of-pocket expenses, but did not pay a commission. It would be correct to say that the: a. Georgia Autioneer violated the license law b. Florida Broker did not violate the license law c. Florida broker is not subject to discipline by the Florida real estate commision d. tranaction is perfectly within the license law - CORRECT ANSWER a. Georgia Autioneer violated the license law" "The Commission's ability to impose disciplinary actions against licensees is known as ______ _________ power - CORRECT ANSWER quasi - judicial" "The rule-making authority of the FREC is called ______ _________ power - CORRECT ANSWER quasi - legislative" "Licensees that are members of the armed forces have all fees, dues and other requirements waived during their military service and for _____ months after returning to civilian life - CORRECT ANSWER 6" "The division of Real Estate is an administrative part of the department of: a. State b. Commerce c. Banking d. Business and Professional Regulation - CORRECT ANSWER d. Business and Professional Regulation" "which department issues real estate licenses? a. state b. Business and Professional Regulation c. Revenue d. Real Estate - CORRECT ANSWER b. Business and Professional Regulation" "Which information supplied by an applicant is Public Record? a. financial Information b. test scores c. name and address d. medical information - CORRECT ANSWER c. name and address" "A sales associate failed to complete required postlicense education prior to expiration of the license period. What is the status of license? a. active b. voluntary inactive c. involuntary inactive d. null and void - CORRECT ANSWER d. null and void" "one or more sales associates, each titled "designated sale associate' may be designated to act as agents for the seller, and one or more may be designated to act as agents of the _________ - CORRECT ANSWER buyer" "What federal law that makes illegal the discussion or establishment of a uniform price or fee for services in any industry? No fixed fees - CORRECT ANSWER Sherman-Clayton Anti-trust Act" "Your allowed Compensation from your Broker True or False - CORRECT ANSWER True" "You can not sue a buyer or seller only your broker? True or False - CORRECT ANSWER True" "The only brokerage that includes fiduciary duties is the __________ __________. - CORRECT ANSWER Single Agency" "A licensee assigned by a broker to act as a single agent of a buyer or seller in a nonresidential transaction is titled a ________ _________ ________. - CORRECT ANSWER Designated Sales Associate" "Brokers in a nonresidential sale are not required to use _________ _________. - CORRECT ANSWER Written disclosure" "Which relationship is not adversarial? a. arms length b. buyer beware c. caveat emptor d. fiduciary - CORRECT ANSWER d. fiduciary" "The signature or initials of a party is required by the Brokerage Relationship Disclosure Act on which Form? a. Single Agency Disclosure b. Transaction Broker Disclosure c. Consent to Transition to Transaction Broker d. Important Information Disclosure - CORRECT ANSWER c. Consent to Transition to Transaction Broker" "Anyone licensed or not can be a _________ _________ in a real estate brokerage limited partnership? - CORRECT ANSWER limited partner" "Two or more brokers that share office space but do not maintain their separate status as independant brokers could be charged as being ________ ________ - CORRECT ANSWER Obstensable Partners" "The party who holds title to corporation sole property is called the _______ _______ ______ - CORRECT ANSWER Sole Title Holder" "Sales associate and broker associates must report any change of employer or address change to the DBPR within _____ days on a form prescribed for such use. - CORRECT ANSWER 10" "For a broker to legally be paid a kickback or rebate, he or she must have performed a _______, held an appropriate _______, and all parties must _________ of the payment - CORRECT ANSWER Service, License, Approve" "A licensee should advise a customer to obtain an_______ or an _______ _______ _______ from an attorney whenever a question of title arises. - CORRECT ANSWER Abstract, Attorney's title opinion" "Which statement best describes the sign requied for a brokerage office? a. only 1 sign per firm is required regardless of the number of offices b. each sales associate associated w/ the firm must have a separate sign c. Every active broker must maintain a sign at each brokerage office or branch office e signs are permitted but not required by law - CORRECT ANSWER c. Every active broker must maintain a sign at each brokerage office or branch office" "If a commission dispute arises prior to closing, the broker a. may retain the entire amount of escrowed funds until the dispute is resolved b. must withdrawl the amount of the commission from the escrow account c. may retain the exact amount of the disputed commission in the escrow account until the dispute is settled d. must deliver the entire amount of the escrowed funds at closing - CORRECT ANSWER c. may retain the exact amount of the disputed commission in the escrow account until the dispute is settled" "The maximum amount that can be paid from the Real Estate Recovery Fund based on the actions of a licensee is ___________ - CORRECT ANSWER $150,000" "The criminal penalty for violation of F.S. 475 is typically a fine of up to _____ and/or imprisionment for no more than _______ days - CORRECT ANSWER $500, 60" "a licensee that has had a payment made from the real estate recovery fund as a result of his or her actions will have his licensee _______ until the money is _______ plus __________ - CORRECT ANSWER Suspended, Repaid, Interest" "What action may be taken if either the Florida Real Estate Commission or the licensee disagrees with a recommended order? adjudication b. submit the matter to mediation c. file extentions (10 days to file) d. request novations - CORRECT ANSWER c. file extentions (10 days to file)" "Cival Rights Act of 1866 - CORRECT ANSWER prohibits discrimination on the basis of race" "Federal Fair Housing Act - CORRECT ANSWER is the expanded on the 1866 Act and makes discrimination in the showing , negotiation, sale, rental or financing of a dwelling prohibited when based on color, handicapp, family status" "Redlining - CORRECT ANSWER don't lend in certain areas because of minorities" "the Cilvil rights Act prohibits discrimination on the basis of ________ - CORRECT ANSWER Race" "An owner that does not use the service of a broker and does not discriminate in advertising is _________ from the Civil Rights Act of 1968 - CORRECT ANSWER Exempt" "To be enforcable, a lease longer than 1 year a. can be oral if witnessed by 2 people b. does not have to conform to the Statute of Frauds c. must be in writing, signed by the landlord (no witness is required in Florida) d. Does not have to be witnessed - CORRECT ANSWER c. must be in writing, signed by the landlord (no witness is required in Florida)" "A 5-year lease of a 10,000 sq ft warehouse prohibits assignment. After 2 yrs the tenant is unable to continue w/ the full rent payments and arranges w/ another tenant to take over one-half of the space and one-half of the rent for the remaining term. This arrangement is a. a violation of the terms of the lease b. a sublease c. in violation of Statute 83 d. illegal - CORRECT ANSWER b. a sublease" "Discrimination based on religion is prohibited by the a. Civil Rights Act of 1866 b. Civil Rights Act of 1968 c. Civil Rights Act of 1964 d. Fair Housing Amendments of 1988 - CORRECT ANSWER b. Civil Rights Act of 1968" "3 Components of Real Estate - CORRECT ANSWER 1. Air 2. Surface 3. Subsurface" "2 ways to Own - CORRECT ANSWER 1. fee simple (absolute) 2. Life estate (owned in lifetime)" "Life estate - CORRECT ANSWER only for the balance of a life time" "Tenancy at Sufferance - CORRECT ANSWER They're there without permission" "Property that is exempt from execution of foreclosure to satisfy a personal debt of the head of the household can be up to one-half acre within a city or up to ______ acres outside a city. - CORRECT ANSWER 160" "What rights does a property owner have to the use of water flowing over or through his or her land? a. riparian b. littoral c. flowage d. aquifer - CORRECT ANSWER a. riparian" "A potential purchaser of a timeshare can cancel the contract without penalty within how many days? - CORRECT ANSWER 10" "which statement best describes a tenancy at sufferance? a. The tenant suffers from the landlord's failure to maintain the property b. the landlord suffers from the tenant's failure to pay rent c. The lease instrument is valid d. The tenant remained in possession after expiration of a lease - CORRECT ANSWER d. The tenant remained in possession after expiration of a lease" "The full bundle of the rights in real property includes a. destruction, use and extinction b. destruction, use and enjoyment c. use, expatriation and enjoyment d. disposition, use exclusion - CORRECT ANSWER d. disposition, use exclusion" "Title to real property passes to the grantee when the deed is ________ and ________ - CORRECT ANSWER Deliverd, Accepted" "Zoning is an example of which government limitation over private property rights? - CORRECT ANSWER Police Power" "The Four methods used to legally describe property? - CORRECT ANSWER 1. monuments method 2. metes & bouds methods 3. retangular method 4. plat method" "The government survey method begins in Tallahassee by drawing a north/south line is called the _________ __________ _________ - CORRECT ANSWER Tallahassee Principal Meridian" "In a towhship subdivided into section 36 is always ______ of 1 - CORRECT ANSWER North"