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FL Real Estate Exam - 2022 > Core Concepts > Flashcards

Core Concepts Flashcards

1
Q

One judgement involving multiple licensees

A

$50K maximum from recovery fund per judgement

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2
Q

An increasing or decreasing discount rate

A

The Fed’s least effective tool to control cost of credit

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3
Q

In what instance could an agent appeal to District Court of Appeals

A

If license has been suspended or revoked

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4
Q

What fund is sustained by fines and fees from licensees?

A

Real Estate Recovery Fund

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5
Q

What world also means corporation for profit?

A

The word ‘Company’ must be in the business name

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6
Q

What does a temporary incapacitation of license mean?

A

Mandatory Suspension

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7
Q

What is Liquidation Value Appraisal?

A

Best used to determine value of a failing business

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8
Q

What happens for unlicensed individuals violating R.E. law?

A

Cannot be fined monetarily by the FREC

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9
Q

Real Estate Cooperative

A

Does not involve fee simple ownership

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10
Q

After Probable Cause Panel (PCP) finds probable cause

A

A Formal Complaint is filed

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11
Q

How are interest rates on conventional., FHA & VA loans determined?

A

Determined by borrower / lender negotiations

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12
Q

What happens when a licensee terminates employment

A

Must get a reissue before performing services

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13
Q

What is operating business risk?

A

Risk income or expenses miss expectations

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14
Q

When would a licensee receive a notice of non-compliance or citations?

A

Issued for minor infractions of FREC rules

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15
Q

What is charged by lender to increase yield (profit)?

A

Discount points are charged to make a loan

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16
Q

Sales Associate Compensation

A

Can only be paid by their broker-employer

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17
Q

Must have active broker’s license

A

To be an officer or director of a brokerage

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18
Q

Registered name of brokerage

A

Must appear in all advertising

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19
Q

What happens if Broker doubts disposition of escrow funds?

A

Must notify FREC in writing

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20
Q

Which properties are exempt from execution of judgment liens?

A

Homestead property

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21
Q

What must happen when a sales assoc. gets post-dated check as a deposit?

A

Deliver immediately to employing broker

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22
Q

What is it called when recording deed in the public records?

A

Constructive Notice

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23
Q

What happens if registration of a brokerage is suspended or revoked?

A

All sales associates are automatically inactive

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24
Q

Availability of credit is directly related to

A

Demand for real estate in the market

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25
Q

What is the Fed’s strongest tool to regulate US economy?

A

Open Market (buying & selling high yielding Treasury Bills

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26
Q

What would happen if a broker failed to split commission as agreed

A

Can be charged with failure to account

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27
Q

What is it called/would happen if a licensee operated recklessly & carelessly?

A

Could be charged with culpable negligence

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28
Q

What is the relationship of sales assoc. to broker?

A

General agency

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29
Q

What does the OTS/Office of Thrift Supervision do?

A

Federal Agency regulating Savings & Loans

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30
Q

Apartment complex owners can employ

A

Unlicensed, salaried, on-site leasing agent

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31
Q

Quasi-legislative power of FREC

A

Allows FREC to adopt rules & regulations

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32
Q

State & Federal No Solicitation phone list

A

Disallows calls from 8AM to 9PM

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33
Q

What is residential zoning based on?

A

Density / Population

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34
Q

Real Estate Taxes

A

Become a lien January 1st of every year

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35
Q

Title Insurance is an expense entry

A

Never pro-rated on a closing statement

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36
Q

During a hearing a licensee can request what?

A

Administrative law judge to subpoena witness

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37
Q

What would qualify for cost recovery tax deductions (MACRS)?

A

Commercial and investment properties

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38
Q

Graduated payment mortgage

A

Scheduled increases in mortgage payments

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39
Q

What is the legal time to sue for contract enforcement called?

A

Statute of Limitations

40
Q

What items can be deducted from Homeowners income tax return?

A

Mortgage interest & real estate taxes

41
Q

9% annual Interest plus 6 discount points =

A

Effective yield 9.75

42
Q

Executive power of FREC

A

Can be exercised by chairperson acting alone

43
Q

What is combining two lots under one ownership called?

A

Assemblage

44
Q

What is the Fed. Agency insuring deposit at commercial banks known as?

A

BIF - Bank Insurance Fund

45
Q

What could result from failing to record deed?

A

Estoppel

46
Q

CCPA/Consumer Credit Protection Act (Reg. Z)

A

Requires disclosure of true cost of credit with APR

47
Q

Allodial System

A

System allowing individual ownership of real estate

48
Q

How are construction loans are usually disbursed?

A

By draws as construction progresses

49
Q

Who usually pays for the intangible taxes on a new mortgagee loan?

A

They buyer, not the seller

50
Q

What is true of both VA & FHA 203(b) loans?

A

May be pre-paid without Penalty

51
Q

What is unenforceable according to the Statute of Frauds?

A

Oral R.E. contracts

52
Q

What is the first step in obtaining a VA loan?

A

Obtain a certificate of eligibility

53
Q

What is not required to create a valid, enforceable contract?

A

Acknowledgement (Notarization)

54
Q

Mortgage payments are not an Operating Expense is based on the following approach?

A

Income Capitalization Approach Appraisal

55
Q

What is the basis for all 3 primary appraisal techniques

A

Substitution

56
Q

What is an example of functional obsolescence?

A

A Florida house without central heat & air

57
Q

Goodwill of a business

A

Example of an intangible asset with market value

58
Q

ANY deposit received by a broker

A

Should immediately be placed in escrow

59
Q

In appraising, the word “price” means

A

Amount of money RECEIVED in a transaction

60
Q

Assignment allows

A

Transfer of rights from one to another

61
Q

Real Estate can be described as

A

Local in nature

62
Q

What is entered as a double entry on the closing statement?

A

Pro-rated real estate taxes

63
Q

What may be a potential title problem?

A

Title held by a corporation sole

64
Q

What is Prima facia evidence that holder is licensed?

A

Possession of a valid R.E. license

65
Q

What is a REIT (Real Estate Investment Trust)?

A

Business trust

66
Q

What items are all found in a promissory note?

A

Loan amount, Interest rate, term, payment plan

67
Q

Economic Soundness (Risk)

A

Primary consideration of all investments

68
Q

What is it called when individual ownership of a single unit?

A

Condominium

69
Q

What happens when foreclosure funds are insufficient to pay all that is due on the loan?

A

Lien holder may apply for a deficiency judgment

70
Q

Who is the mortgagor?

A

Title holder in lien theory state

71
Q

What would be a Violation of Sherman-Clayton Anti-Trust Act?

A

Unaffiliated brokers discussing commission rates

72
Q

What is a Deed of Trust?

A

Third party holding title for security

73
Q

Estate by the Entireties

A

Terminated by divorce into tenancy in common

74
Q

Limited partnership brokerage requires

A

1 or more general and 1 or more limited partners

75
Q

Tenancy at will

A

Tenancy without stated termination rights

76
Q

What is an example of Ostensible partners?

A

Brokers sharing office without separate signs

77
Q

What is an easement?

A

Legal right to enter upon another’s property

78
Q

What would happen if 1 broker’s license was revoked in office of 4 active brokers?

A

Only licensee affected is broker who was revoked

79
Q

What does title transfer require?

A

Delivery & Acceptance of the deed to & by grantee

80
Q

General Warranty Deed / Warranty Deed

A

Defends title against any & all legal claims

81
Q

What are unliquidated damages?

A

Damages not specified in the contract

82
Q

What is an option contract?

A

Agreement for specified period of time

83
Q

What is the warrant of quiet enjoyment?

A

Promise in a deed of no hostile claims

84
Q

If customer refuses representation, give them

A

No Brokerage relationship notice before showing

85
Q

What is the function of the secondary market?

A

Provides liquidity to primary market

86
Q

What is required to perform license service after suspension ends?

A

A reissue is required

87
Q

What is a clause that benefits the mortgagor?

A

Prepayment clause

88
Q

What is hypothecation?

A

Borrower pledges property as security

89
Q

Gross lease

A

Tenant pays rent only, landlord pays the rest

90
Q

Implied Contract

A

Contract with terms & conditions inferred

91
Q

An oral lease creates what kind of tenancy?

A

Tenancy at will

92
Q

One broker must be an officer of the corporation

A

In a registered brokerage corporation

93
Q

All 4 broker partners want to perform services

A

All 4 must be actively licensed

94
Q

What are Highest and Best use appraisals for?

A

Land & improvements

95
Q

What occurs if a broker were to close & reopen office in same lic. period?

A

Requires a reissue if office is in the same location

FL Real Estate Exam - 2022 (1 decks)

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