Exam

Question 1

1. Which one of the following statements is false concerning the required 45-hour post licensing course?

a. after the licensee completes the required 45-post licensing course before the renewal of his first license, he will automatically have his license renewed and have another two years in which to complete the required 14 hours of continuing education.
b. If the licensee does not complete the required 45-hour post license course, the status of the sales associates license will be null and void. If the licensee wishes to continue in real estate, he will need to requalify. He would again be required to submit fingerprints, an application for his license, complete the 63-hour pre license course, and pass the state
c. Upon completion of the required 45-hour post license course, the licensee would be required to visit the DBPR website and renew his license and pay the renewal fee before the first expiration of his license.
d. If a sales associate does not complete the required 45-post license course and renew his license at the DBPR before the first exam expiration of his license, his license status is null and void

Answer 1

A. after the licensee completes the required 45-post licensing course before the renewal of his first license, he will automatically have his license renewed and have another two years in which to complete the required 14 hours of continuing education.

Question 2

Which of the following statements is true about leverage?

a. If the cost of borrowed funds is more than the rate of return, that is an example of negative leverage.
b. Leverage is always positive.
c. Leverage is similar to equity.
d. If the cost of borrowed funds is less than the rate of return, that is an example of negative leverage.

Answer 2

If the cost of borrowed funds is more than the rate of return, that is an example of negative leverage.

Question 3

Which of the following statements is false concerning the Closing Disclosure Form?

a. The binder deposit is a credit to the buyer and a debit to the seller.
b. The intangible tax is a debit to the buyer.
c. Unpaid property taxes, assumed mortgage interest, and rental income are a debit to the seller, and a credit to the buyer.
d. The binder deposit is a credit to the buyer.

Answer 3

a. The binder deposit is a credit to the buyer and a debit to the seller.

Question 4

On a 30-year fixed rate fully amortized mortgage, which applies?

a. The binder deposit is a credit to the buyer and a debit to the seller.
b. The intangible tax is a debit to the buyer.
c. Unpaid property taxes, assumed mortgage interest, and rental income are a debit to the seller, and a credit to the buyer.
d. The binder deposit is a credit to the buyer.

Answer 4

The binder deposit is a credit to the buyer and a debit to the seller.

Question 5

On a 30-year fixed rate fully amortized mortgage, which applies?

A balloon payment would be required at the end of the loan period.
b. At the beginning of the loan period, most of the money made in payments is applied toward the principle.
c. Because the loan is fully amortizing, most of the money from each payment made at the end of the loan term would be applied to principle.
d. Because the loan is fully amortizing, the index and margin will stay the same for the entire loan period.

Answer 5

Because the loan is fully amortizing, most of the money from each payment made at the end of the loan term would be applied to principle.

Question 6

Which of the following statements about mortgage clauses is false?

a. The due-on-sale 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 lender’s prior written consent.
b. The defeasance clause in a mortgage is activated when a borrower in a title theory state of mortgage lending defeats their loan. The borrower will now receive their deed in the mail.
c. The acceleration clause allows the mortgagee to require the mortgagor to obtain written permission before selling or transferring any interest in the property.
d. When the mortgagor is in default, the acceleration clause is used by the mortgagee and states that the entire outstanding balance of the loan, plus all fees incurred and all interest is due in order to maintain ownership of the property.

Answer 6

c. The acceleration clause allows the mortgagee to require the mortgagor to obtain written permission before selling or transferring any interest in the property.

Question 7

Which of the following liens would take priority?

a. A mechanic’s lien filed on January 20, 2021
b. A vendor’s lien filed on January 21, 2021
c. Real estate taxes, (property taxes) lien filed on January 25, 2021
d. Special assessment lien filed on January 26, 2021

Answer 7

Real estate taxes, (property taxes) lien filed on January 25, 2021

Question 8

The NW1/4 of the S1/2 and the N1/2 of the S1/2 of the E1/4 of the NE1/4, section 11, township 3 South, Range 4 East describes a tract of how many acres and how many square feet?

a. 90 acres, 3,484,800 square feet
b. 1.25 acres, 54,450 square feet
c. 40 acres, 1,742,400 square feet
d. 90 acres, 3,920,400 square feet

Answer 8

d. 90 acres, 3,920,400 square feet

Question 9

8. If a property sold for $497,000 and the sales associate was entitled to 75% of the commission earned and he/she earned $22,365, what percentage of commission was the property listed at?
   а. 5%
   b. 6%
   с. 7%
   d. 8%

Answer 9

b. 6%

Question 10

The subject property is a three-bedroom, two bath house with a fireplace. The comparable is a three-bedroom, three bath house without a fireplace. An appraiser has determined the price of a bath is $5,000 and the price of the fireplace is $2,000. Which of the following adjustments should the appraiser make?
a. Subtract $7,000 from the subject’s transaction/sale price
b. Add $7,000 to the comparables transaction/sale price.
c. Subtract $3,000 from the comparables transaction/sale price.
d. Subtract $3,000 from the subject’s transaction/sale price.

Answer 10

Subtract $3,000 from the comparables transaction/sale price.

Question 11

Which of the following is a clause in a deed that states that the grantor owns the property and has the legal right to convey it?
a. Seisin
b. Constructive notice
c. Actual notice
d. Habendum clause

Answer 11

a. Seisin

Question 12

11. Which of the following statements is incorrect concerning the theories of mortgage lending?

a. In states that practice lien theory of mortgage lending, the borrower does not retain ownership of the property during the loan period.
b. Florida practices lien theory of mortgage lending.
c. In states that practice title theory of mortgage lending, the borrower does not retain ownership of the property during the loan period.
d. In states that practice lien theory of mortgage lending, the borrower does retain ownership of the property during the loan period.

Answer 12

a. In states that practice lien theory of mortgage lending, the borrower does not retain ownership of the property during the loan period.

Question 13

Which of the following statements about agency is correct?

The presumed relationship in Florida is the single agent.
b. The no brokerage, (non-representation) disclosure must be disclosed before showing property.
c. A single agent can represent both parties in the transaction, provided both parties have given written consent.
d. Transaction brokers have a fiduciary duty to their principals.

Answer 13

The no brokerage, (non-representation) disclosure must be disclosed before showing property.

Question 14

What are the rights associated with water flowing through your property?
a. Riparian rights
b. Littoral rights
c. subservice right
d. Mineral rights

Answer 14

Riparian rights

Question 15

What is the effective yield to the lender if the borrower has a 4% interest rate on a loan and buys 6 discount points?

a. 4.75%
b. 5%
с. 3.25%
d. 4.5%

Answer 15

a. 4.75%

Question 16

Which of the following statements is false concerning legal descriptions?

a. Every section in a township contains 43,560 square feet.
b. The lot and block method of describing property is used in subdivisions where plat maps have been recorded.
c. The metes and bounds method of describing property uses a point of beginning and degrees on a compass. With this method, if you are traveling N90 degrees east, you are
d. The government survey method of describing property breaks the state up into a checkerboard grid and the prime, (or principle) meridian is an imaginary line that runs north and south through Tallahassee.
16. A sales associate has been hired to perform

Answer 16

a. Every section in a township contains 43,560 square feet of

Question 17

16. A sales associate has been hired to perform an appraisal for a fee. With this information, which of the following statements is true?

a. Sales associates cannot legally perform appraisals unless they are licensed appraisers.
b. Because the sales associate is not a licensed appraiser, the sales associate is not required to follow the USPAP when completing the appraisal.
c. The USPAP represents the Uniform Standards of Protected Appraisal Practice.
d. The sales associate can legally perform the appraisal, provided the appraisal will not be used in a federally related transaction.

Answer 17

d. The sales associate can legally perform the appraisal, provided the appraisal will not be used in a federally related transaction.

Question 18

A homeowner is selling his house built in the 60’s. Which of the following is false?

a. The homeowner is legally responsible to disclose any lead in the paint to the buyer, provide a disclosure to the buyer about the dangers of lead-based paint, provide an EPA prepared pamphlet to the buyer, and give the buyer 10 days to inspect for lead-based paint.
b. The sales associate is legally responsible to disclose any lead in the paint to the buyer, provide a disclosure to the buyer about the dangers of lead-based paint, provide an EPA prepared pamphlet to the buyer, and give the buyer 10 days to inspect for lead-based paint.
c. The buyer must acknowledge they received the disclosure about the dangers of lead-based paint.
d. The buyer does not have to inspect the property for lead-based paint.

Answer 18

b. The sales associate is legally responsible to disclose any lead in the paint to the buyer, provide a disclosure to the buyer about the dangers of lead-based paint, provide an EPA prepared pamphlet to the buyer, and give the buyer 10 days to inspect for lead-based paint.

Question 19

Which of the following is false concerning the primary and secondary mortgage markets?
a. The primary mortgage market is where securities or goods are created. The parties involved in the primary mortgage market are the borrower and the lender:
b. The secondary mortgage market consists of lenders that originate new mortgage loans for borrowers.
c. The secondary mortgage market is an investor market that buys and sells existing mortgages. Fannie Mae is the largest contributor in the secondary mortgage market.
Freddie Mac is also a contributor in the secondary mortgage market.
d. The secondary mortgage market provides stable cash, (liquidity) to the primary mortgage
market

Answer 19

B. The secondary mortgage market consists of lenders that originate new mortgage loans for borrowers.

Question 20

Which of the following is not true about the Florida Constitutional Homestead?
a. There are three benefits of the Florida Constitutional Homestead: protection of the family, protection of the homestead, and tax exemptions.
b. With the Florida Constitutional Homestead, if ownership is in only one spouse’s name (in severalty) both spouses are required to sign the deed when the property is conveyed to another party.
c. Homestead property is protected from a forced sale due to nonpayment of special assessments and property taxes under the Florida Constitutional Homestead law.
d. Homeowners who own homestead property assessed at over $75,000 will receive a $50,000 tax exemption from the city and county, and a $25,000 tax exemption from the school board. Also, the additional tax exemption for a blind person is $5,000.

Answer 20

Homestead property is protected from a forced sale due to nonpayment of special assessments and property taxes under the Florida Constitutional Homestead law.

Question 21

Which of the following statements about continuing education is not true?
a. Actively licensed and inactively licensed sales associates are required to complete the 45hour post license course before the first renewal of their license. In the next renewal period, they are required to complete 14 hours of continuing education.
b. If a broker dies, resigns, or is otherwise removed from the position, all the sales associates registered under that broker automatically have their license status changed to involuntarily inactive.
c. Only actively licensed sales associates are required to complete the 45-hour post license course before the first renewal of their license. In the next renewal period, they are required to complete 14 hours of continuing education.
d. If a sales associate does not complete the required 14 hours of continuing education, the license status of the sales associate will be involuntary inactive.

Answer 21

Only actively licensed sales associates are required to complete the 45-hour post license course before the first renewal of their license. In the next renewal period, they are required to complete 14 hours of continuing education.

Question 22

Concerning the FHA and the VA, which statement is true?
a. The FHA is a government guaranteed loan.
b. The VA is a government insured loan.
c. If the spouse of a deceased veteran remarries, she will not be eligible for the VA benefit. If she does not remarry, she will be eligible for the benefit.
d. With an FHA loan, there is an origination fee and an additional funding fee is due from the veteran.

Answer 22

c. If the spouse of a deceased veteran remarries, she will not be eligible for the VA benefit. If she does not remarry, she will be eligible for the benefit.

Question 23

Which of the following statements is false concerning advance rents and security deposits held by landlords per the Florida Residential Landlord and Tenant Act?
a. There are three options landlords have to hold the advance rents and security deposits given by tenants: a non-interest-bearing Florida bank account, an interest-bearing Florida bank account, or the landlord can post a surety bond and then commingle the advance rents and security deposits.
b. If a claim is not being made on the advance rents and security deposit, the landlord has 15 days to return the deposit.
c. If a claim is being made on the deposit the landlord has 15 days to notify the tenant of the claim
d. If the landlord is holding advance rents and security deposits, and chooses to hold them in a bank, the bank must be located in Florida.

Answer 23

If a claim is being made on the deposit the landlord has 15 days to notify the tenant of the claim

Question 24

A seller disclosed in confidence to the broker that was listing his house that the roof leaks. Which of the following applies?
a. If the broker is a single agent for the seller, he is not required to disclose the leaking roof.
In this situation, the broker is representing the seller as a single agent and therefore is required to obtain the highest price and best terms possible for his principal/client.
b. The broker is always required to disclose the leaking roof to all prospective buyers.
c. Only if the contract that is submitted is an “as is” contract, can the broker legally not disclose the leaking roof.
d. The broker does not have a legal obligation to disclose the leaking roof, but he does have an ethical obligation to disclose the leaking roof.

Answer 24

The broker is always required to disclose the leaking roof to all prospective buyers.

Question 25

Which of the following statements concerning violations of The Fair Housing Act is incorrect?
a. Steering is when a licensee channels home seekers to or away from a particular neighborhood because they are a member of a protected class.
b. Blockbusting is when licensee’s use the entry or rumor of the entry, of a protected class into a neighborhood to persuade homeowners to sell their property.
c. Redlining is when lenders or insurance companies deny loans or insurance coverage based on discriminatory practices.
d. Steering is when sellers are encouraged to list their property based on discriminatory practices.

Answer 25

d. Steering is when sellers are encouraged to list their property based on discriminatory practices.

Question 26

Concerning Florida Statutes and Florida Real Estate Commission, (FREC) rules which statement is false?
a. The rules that the FREC make and enforce are Ch61j2.
b. Real estate laws are F.S.475.
c. The Homeowners Association law that requires sellers to provide buyers with an HOA disclosure is F.S.720.
d. The DBPR laws are F.S.120.

Answer 26

d. The DBPR laws are F.S.120.