Final Exam

Question 1

All are principles of physical characteristics of real estate EXCEPT:
A) Real estate is indestructible and in a fixed location.
B) Land does not depreciate; only improvements depreciate
C) No two pieces are exactly alike: they are non-homogeneous.
D) The availability of mortgage credit.

Answer 1

D) The availability of mortgage credit.

Question 2

Emma, a 70-year-old widow living alone, has a fixed income of $11,000 per year from social security. If the local option homestead relief exemption exists in Emma’s county of residence,
Emma may be entitled to:

A) A Homestead exemption of $5,000, which is a standard deduction.
B) A Homestead exemption of $10,000.
C) No exemption at all since she lives on Social Security.
D) An added Homestead exemption of $50,000 if she initially applies in person.

Answer 2

C) No exemption at all since she lives on Social Security.

A homestead exemption of $25,000, which is the standard deduction.

Question 3

In what section of a TRID Closing Disclosure would you find information regarding the loan term, the purpose of the loan, product type, loan type, and loan ID number?
A) Loan Report
B) Mortgage Report
C) Mortgage Terms
D) Loan Information

Answer 3

D) Loan Information

Could not verify

Question 4

The fact that all real estate rules must be written or printed under the seal of the commission provides for what point of law?
A) This assures the quasi-judicial powers of the commission,
B) This assures the quality of the rules of the commission.
C) This provides Prima Face evidence of the rule’s existence.
D) This provides a Statute of Limitations on their existence

Answer 4

B) This assures the quality of the rules of the commission.

Chapter 3 page 14

Question 5

An industrial park was sold to a group of investors in 2012. They plan to hold on to the industrial park because it is a growing area. The reason the investors consider this a long term investment is because of:
A) Appreciation potential.
B) Capitalization.
C) Cash flow.
D) Equity build-up

Answer 5

A) Appreciation potential.

Could not verify

Question 6

A person has had his application for licensure denied because he has been found guilty of crimes of moral turpitude. Which of the following groups is responsible for denying his application?
A) The Division of Real Estate
B) The Attorney General
C) The Florida Real Estate Commission
D) All of the above.

Answer 6

C) The Florida Real Estate Commission

Question 7

A property manager
A) must have a separate license to manage properties in a condominium.
B) manages real property for owners
C) manages all common areas for owners.
D) cannot manage a property that is managed by an association.

Answer 7

B) manages real property for owners

Could not verify

Question 8

Ken, a transaction broker, worked with both the buyer and seller in the sale of a home. The sale went well, and it closed on time. Later, the seller discovered that Ken had told the buyer that the seller was willing to take a lower price than was specified on the listing agreement in order to
“speed up the sale,” and Ken told the buyer a specific price to offer. Which describes the situation?
A) Ken had poor judgment in dealing with the buyer and seller.
B) Ken violated the limited confidentiality required for his job
C) Ken did not violate any rules or regulations

Answer 8

B) Ken violated the limited confidentiality required for his job

Chapter 4, page 12

Question 9

John owns his own printing company. He wants to buy a new building since his business, created two years ago, is expanding so rapidly. John could call any resources to obtain a new loan in the
primary mortgage loan business EXCEPT:
A) A mortgage banker.
B) A mortgage broker.
C) A loan association.
D) The Federal National Mortgage Association.

Answer 9

D) The Federal National Mortgage Association.

Question 10

Which is NOT a source of financing in the primary mortgage market?
A) Savings and loans
B) Mortgage bankers
C) Banks
D) Hedge funds

Answer 10

D) Hedge funds

Question 11

A TRID Closing Disclosure is required by RESPA for all
A) vacant land loans.
B) intra-state loans.
C) federally-related mortgage loans.
D) private and commercial loans

Answer 11

C) federally-related mortgage loans.

Could not verify

Question 12

The seller wants to make a $35,000 profit on the sale of a home after expenses of $500 for title, a loan of $45,000, $50 recording fees, and a 7% commission. At what approximate price must the seller sell his home to make the profit he wants?
A) $54,4000
B) $86,600
C) $95,000
D) $112,000

Answer 12

B) $86,600

$35,000 + $45,000 + $500 + $50 = $80,550

> $80,550 / 93% (100%-7%) = $86,612.90

Question 13

The clause in a mortgage that permits the lender to declare the entire unpaid balance immediately due and payable upon default is called the:
A) Judgment clause
B) Alienation clause.
C) Acceleration clause,
D) Defeasance clause.

Answer 13

C) Acceleration clause,

Question 14

Sonny, a minor, contracts to buy a property,
A) Valid.
B) Voidable.
C) Transferred to his parents.
D) Enforceable

Answer 14

B) Voidable.

Could not verify, Chapter 11, page 4

Question 15

The FREC’s authority to impose disciplinary actions on licensees is part of its
A) Quasi-legislative powers
B) Quasi-judicial powers
C) Executive powers
D) Investigatory powers

Answer 15

B) Quasi-judicial powers

Question 16

As used in the government survey method, a section of land with a land area of one square mile contains:
A) 460 acres.
B) 520 acres.
C) 620 acres.
D) 640 acres.

Answer 16

D) 640 acres.

Question 17

Berry, the seller, wants Paul, the broker, to change from a single agency relationship to a transaction broker. Paul agrees to do this as long as the transition disclosure is made in writing so that all parties understand what is happening. Paul needs to transition to a transaction broker:
A) After the listing agreement is signed.
B) Only when the buyer requests that Paul, the broker, do so.
C) At any time during a transaction, as long as consent is given in writing.
D) At the closing

Answer 17

C) At any time during a transaction, as long as consent is given in writing.

Chapter 4, page 20-21

Question 18

A waterfront home is valued at $3 million dollars. The seller and the buyer have assets of more than one million dollars. The parties have requested Designated Sales Associates, as each wants a single agent. What can the broker do?
A) The Broker can represent both parties as dual agent.
B) The broker cannot complete this sale.
C) The broker can explain to the buyer and seller that designated agency is allowed only on a non-residential transaction and ask the parties to sign the consent to transition to transaction brokerage.
D) None of the above.

Answer 18

C) The broker can explain to the buyer and seller that designated agency is allowed only on a non-residential transaction and ask the parties to sign the consent to transition to transaction brokerage.

Question 19

The Equal Credit Opportunity Act requires lenders to make consumer loans without regard to all except:
A) Age.
B) Occupation.
C) Gender.
D) Marital status.