Items to Study Flashcards
Which of the following statements is true regarding a mortgage loan originator (MLO)?
A. A mortgage loan originator is the same as a mortgage broker
B A mortgage loan originator must have a separate license.
C A mortgage loan originator makes the loan
D A mortgage loan originator must have a real estate license
B A mortgage loan originator must have a separate license
A real estate appraiser’s fee for professional service is based on which of the following?
A A percentage of the property’s gross income
B A percentage of the fair market value of the property
C The time and difficulty of the apprasal
D A percentage of the property’s sale price
C The time and difficulty of the appraisal
Which of the following best describes the real estate brokerage business?
A Service Business
B Simple Business
C Business with few opportunities available
D Construction Business
A Service business
All of the following are responsibilities of a property manager, EXCEPT A Renting property for an absentee owner B Collecting Rent C Overseeing Maintenance D Preparing Leases
D Preparing Leases
What does the term “Farming” refer to in real estate?
A Specializing in one geographic area
B Working in a cooperative manner
C Specializing i agriculture properties
D Specializing in the sales of orange groves or cattle farms
A Specializing in one geographic area
Which insurance policies can a real estate license offer to the public without additional state licensing. A Flood Insurance B Fire Insurance C Renter's Insurance D None of the Above
D None of the Above
What is the purpose of the National Association of Realtors?
A Preserve the right of individuals to own real property through an exchange of information.
B Organize antigoverment activities
C Promote unethical practice of real estate professionals
D Promote unethical practice of real estate professionals
A Preserve the right of individuals to own real property through an exchange of information.
What does the designation of REALTOR signify?
A Anyone in possession of a real estate license is a REALTOR
B The designation identifies the real estate professional as a member of the NAR
C The designation is evidence that the licensee has an extensive background in the real estate profession.
D The designation is evidence that the licensee has completed extensive real estate studies.
B The designation identifies the real estate professional as a member of the NAR
A developer contracts to build a home according to the buyers specifications. This is an example of which type of building? A Tract B Custom C Speculative D Subdivison
B Custom
Which of the following best describes licensees who are involved in business brokerage?
A They must be able to analyze financial statements and understand balance sheets
B The are not required to know much about the business they are selling
C The must have a separate license
D They never become involved in the tax aspects of the business
A They must be able to analyze financial statements and understand balance sheets
Real Estate licensees are required to be knowledgeable in all the following areas, EXCEPT: A Marketing B Valuation C Property Transfer D Accounting
D Accounting
Which service provided by real estate license requires the most experience and knowledge? A Property Management B Counseling C Appraising D Agricultural Sales
B Counseling
An appraiser who is registered, licensed, or certified under F.S 475 Part II, must be utilized in which of the following
A All appraisals
B The appraisal of residential property
C The appraisal of non residential property
D Federally-related transactions
D Federally-related transactions
When a developer completes construction of a new subdivision, all streets, electric water and sewer installation are finished and deeded to the city or country. What is the process called? A A Quit claim deed B An easement C Dedication D Annexation
C Dedication
Which of the following assignments would be acceptable for a Florida Real Estate licensee who does not represent themselves as an appraiser, and follows the uniform standards of professional appraisal practice (USPAP)?
A An assignment to give an estimate of value for an attorney in a divorce case
B An assignment to appraise a single family home for a VA Loan
C A assignment to value a condominium for a FHA loan.
D A assignment to appraise a Time Share unit for which the loan is being obtained from a Federally insured institution
A An assignment to give an estimate of value for an attorney in a divorce case
The Florida Real Estate Commission was first created in what year? A 1932 B 1925 C 1923 D 1919
B 1925
A Sales associate failed to complete the required post license education prior to their renewal deadline. What is the status of the sales associates license? A Revoked B Suspended C Involuntarily Inactive D Void
D Void
Which statement correctly applies to an actively licensed attorney who is a member in good standing with the Florida Bar?
A The attorney may charge commission in connection with real estate activities
B The attorney is exempt from biennial 14 hour continuing education requirements to maintain a real estate license,
C The attorney is not allowed to simultaneously hold a real estate license
D The attorney may be licensed as a real estate broker but not as a sales associate.
B The attorney is exempt from biennial 14 hour continuing education requirements to maintain a real estate license,
What is a brokers associate?
A A broker who employs one or more sales associates
B sales associate
C A broker who is employed as a sales associate
D A sales associate who is employed as a broker.
C A broker who is employed as a sales associate
Which statement is correct concerning an applicant whose real estate application was denied by the Department of Business and Professional Regulation?
A The denial is final and no appeal may be taken by the applicant
B An appeal may be filed with the District Court of appeal within 90 days
C The department is not required to inform the applicant of the reason for the denial
D The applicant must be notified in writing of the reason for the denial and advised of the right to request a formal hearing
D The applicant must be notified in writing of the reason for the denial and advised of the right to request a formal hearing
A licensed sales associate wishes to work for a Broker A during the week and works in a different town with Broker B during the weekend. Which statement best describes this situation?
A This is legal if the sales associate has a group license
B This is legal if the broker has multiple licenses
C This is a violation of FS.475
D This is legal, provided that the sales associate is an independent contractor, not an employee of the brokers.
C This is a violation of FS.475
A active Florida Licensee decides to move to North Carolina, but wishes to keep her Florida Real Estate license active and continue to practice real estate in Florida. Which of the following best describes her situation?
A The licensee must be located in Florida to sell in Florida.
B The licensee must be a broker to sell real estate in Florida if she is located outside of Florida.
C The licensee must obtain a North Carolina real estate license.
D The licensee must notify the Department of her change of address and continue to comply with all Florida regulations
D The licensee must notify the Department of her change of address and continue to comply with all Florida regulations
Which of the following statements is correct regarding a brokers authority to act on behalf of the principal?
A A broker can refuse offers o behalf of the principle
B Broker can buy the listed property without consent of the principal.
C A Broker must follow all legal instructions of the principal or withdraw.
D A broker must ignore the instructions of a principle when the instructions are not in the best interest of the principle
C A Broker must follow all legal instructions of the principal or withdraw.
Broker Tom sold a property which was listed with Broker Alice. Tom was unable to attend the closing so Alice collected the entire commission. Alice refused to pay Tom his share of the commission. What could Alice be charged with? A Failure to account B Collecting an overage C Commingiling D Fraud
A Failure to account
A Real Estate license who is working with a seller receives a call from another broker stating that “I am representing a buyer as the buyers broker”. “What can the licensee infer from this conversation?
A The licensee is required to collect the No Brokerage Relationship Disclosure prior to giving any information to the broker
B The agent who is calling is in a single agency relationship
C The buyers brokers must first contact the listing broker for permission to enter into this relationship.
D Unless that licensee is a single agent for the seller, the licensee should stay away from the transaction.
B The agent who is calling is in a single agency relationship
Which brokerage relationship status includes a full fiduciary relationship?
A Single Agency
B Transaction Broker
C Dual Agency
D Non-representation (no brokerage relationship)
A Single Agency
Six individuals decide to form a real estate brokerage partnership. All six individuals are planning to be active in real estate sales. Which statement best applies?
A The partnership must be registered with the commission, and all six partners must be active real estate brokers.
B At least one partner must be licensed as an active broker.
C Only two partners must have a a real estate license.
D A partnership cannot be formed as a brokerage business.
A The partnership must be registered with the commission, and all six partners must be active real estate brokers.
All of the following business formations can register to conduct real estate transactions, EXCEPT: A Corporation for profit B Not for profit Corporation C Corporations Sole D Limited partnership
C Corporations Sole
A real estate brokerage firm advertises a listed property. Which requirements is correct?
A The name of at least one sales associate must be included in this ad.
B The name of the brokerage must be included in the ad.
C The ad may not be prepared by sales associate.
D The names of sales associates may not be included in the ad.
B The name of the brokerage must be included in the ad.
a buyer drops off an escrow check on Tuesday. To avoid any trouble with FREC, the broker must deposit the check by close of business on which day? A The following Monday B Wednesday C Thursday D Friday
D Friday
There is a dispute over a Escrow deposit. The parties agree to have a 3rd party hear both sides and make the final decision. What settlement (escape) procedure is being used to settle the dispute? A Mediation B Arbitration C Interpleader D Escrow Disbursement Order
B Arbitration
What is the purpose of the FREC disciplinary guidelines?
A To extend the meaning of the law.
B To specify and implement the law.
C To give new meaning to the law.
D To give licensees notice of the range of penalties that normally will be imposed for violation of a law or rule.
D To give licensees notice of the range of penalties that normally will be imposed for violation of a law or rule.
The range of penalties that may be imposed on a licensee by the commission for violation of law or rules includes which of the following?
A Denial, reprimand, fine, probation, suspension and revocation.
B Imprisonment only
C A fine and Imprisonment only.
D A fine, reprimand, denial, suspension, revocation and imprisonment.
A Denial, reprimand fine, probation, suspension and revocation.
What must an unlicensed individual do when ordered to appear before the DBPR?
A Nothing, the DBPR has no jurisdiction over unlicensed persons.
B Appear
C File an appeal.
D Bring an attorney
B Appear
When asked about the size of a home, the sales associate quoted the home as containing 5300 square feet of living area. In reality the home was only 4300 square feet. This is an example of what fraudulent activity? A Exaggeration. B Misrepresentation C Failure to account D Concealment
B Misrepresentation
A buyer has agreed to purchase the sellers home. The contract calls for a deposit of $10,000 to be placed in the broker’s escrow account. The sales associate forgets to collect the deposit. The sale falls through and the seller is claiming the uncollected deposit as liquidated damage. What will the sales associate likely to be charged with?
A Nothing. It is the brokers responsibility to maintain the escrow account.
B Misrepresentation
C Culpable negligence.
D Failure to account and deliver,
C Culpable negligence.
Complete the statement. To be enforceable. A lease longer than one year _____.
A can be oral if witnessed by two people
B does not have to conform to the Statue of Frauds
C Must be in writing, signed by the landlord and witnessed by two persons.
D Does not have to be witnessed
C Must be in writing, signed by the landlord and witnessed by two persons.
Under the Florida Residential Landlord and Tenant Act, a landlord is required to do all of the following EXCEPT:
A Bargain in Good Faith
B Provide maintenance sufficient to comply with code.
C Notify Tenants within 30 days of the manner in which security deposits and advance rents are being held.
D Deposit advance rents and security deposits in an interest bearing account
D Deposit advance rents and security deposits in an interest bearing account
A five year lease of a 10,000 square foot warehouse prohibits assignment. After two years the tenant is unable to continue with the full rent payments and arranges with another tenant to take over one half of the space and pay one-half of the rent for the remaining term. What is this arrangement called?
A A violation of the terms of the lease.
B A Sublease
C A violation of Statue 83
D Illegal
B A Sublease
What is the maximum fine that may be imposed for a first time violation of the Florida Fair Housing Act? A $5,000 B $10,000 C $25,000 D $50,000
B $10,000
All of the following are correct regarding the Americans with Disabilities ACT (ADA), EXCEPT?
A Owners must make all accessibility modifications with regards to the costs of improvement.
B ADA is intended to eliminate barriers that limit access to persons with disabilities.
C ADA mandates certain design specifications for accessibility
D Owners of property open to the public may be required to remove barriers to accessibility.
A Owners must make all accessibility modifications with regards to the costs of improvement.
Often a commercial lease requires the tenant to pay the rent, plus also separately pay taxes, insurance and maintenance. This is known as a? A Net Lease B Gross Lease C Percentage Lease D Graduated Payment Lease
A Net Lease
All of the following estates include legal title to real property, EXCEPT: A Tenancy for Years B Fee simple estate C Life estate D Tenancy by the entireties
A Tenancy for Years
What does the bundle of rights in real estate property include? A Destruction, use and extinction B Destruction , use and enjoyment C Use, Expatriation and enjoyment D Disposition, Use and exclusion
D Disposition, Use and exclusion
Four partners purchase a property together, at the same time, and on the same deed, without the right of survivor ship. What type of estate have they formed. A Non-freehold tenancy B Tenancy in Common C Joint Tenancy D Tenancy for Years
B Tenancy in Common
What is the purpose of the Florida Homestead protection?
A Provide protection of the homestead property from the debts of an improvident winner
B Provide a tax exemption for anyone living in Florida
C Provide protection from any and all debts that may be incurred against the homeowner
D Provides protection from all specific liens that may be incurred by the homeowner.
A Provide protection of the homestead property from the debts of an improvident winner
A husband and wife purchase a home together, at the same time, on the same deed. What type of tenancy has been formed? A Life Tenancy B Joint Tenancy C Tenancy by the Entireties D Tenancy in Common
C Tenancy by the Entireties
Which instrument transfers title from one individual to another? A Contract B Deed C Warranty D Convenant
B Deed
What does the term title refer to in real estate?
A Any instrument that guarantees legal rights.
B A legal instrument that transfers property from one party to another
C Ownership
D A piece of bond paper
C Ownership
What clause in deed states the interest that is being conveyed? A Habendum B Reddendum C Release D Seizing
A Habendum
Which is the following is required to obtain title by adverse possession?
A Possession of the property for one month
B Paying taxes on the property for 2 years
C Notorious, open, hostile, adverse and exclusive possession of the property for seven or more consecutive years
D Open and continuous use for 20 or more years
C Notorious, open, hostile, adverse and exclusive possession of the property for seven or more consecutive years
What type of lease, that is often a commercial lease, requires the tenant to pay the rent, plus also separately pay taxes, insurance and maintenance? A Net Lease B Gross Lease C Percentage Lease D Graduated Payment Lease
A Net Lease
Which condition correctly describes the requirement for a lease longer than one year to be enforceable?
A It is oral and witnessed by two people
B The Statue of Frauds does not apply to leases
C It is in writing, signed by the landlord, and witnessed by two persons
D Witnesses are not required
C It is in writing, signed by the landlord, and witnessed
Which of the following best describes a contract?
A A written instrument
B Legally binding
C Void unless accompanied by Earnest Money
D Always bilateral
B Legally binding
What is the term used to describe the party who receives an offer? A Offeree B Offeror C Optionor D Optionee
A Offeree
Which of the following establishes this time period for enforcement of a contract? A Statue of Frauds B Statue of Limitations C Real estate license law D State courts
B Statue of Limitations
A buyer negotiates a contract to purchase property, takes possession and pays the property purchase price in installments, but does not receive the legal title until the full purchase price has been paid. What is this agreement called?
A An obvious attempt to defraud the buyer
B a lease-option
C A Violation of the Statue of Frauds
D an installment contract, contract for deed or land contract
D an installment contract, contract for deed or land contract
What is the term used to describe the consideration given by a buyer to indicate serious intent to buy the property? A An earnest money Deposit B A Check Deposit C Legal Tender D A Boot Deposit
A An earnest money Deposit
Which document is a real estate broker not legally allowed to prepare? A Purchase and sale contract B Listing C Lease D Option
C Lease
When the court determines that a contract existed due to the actions of the parties, the contract is referred to as : A a formal contract B An oral contract C a parol contract D An implied contract
D An implied contract
Complete the statement, An option contract is a unilateral contract binding up the: A Buyer: B Grantee C Optionor D Optionee
C Optionor
Which of the following list of actions contains ways that a contract could be terminated?
A Performance, Reject of an offer, or Renunciation
B Breach, Performance or Lapse of Time
C Assignment, Abandonment or Breach
D Consideration, Performance or Revocation
B Breach, Performance or Lapse of Time
Which legal instrument evidences the debt and states the interest rate, term, payment requirement and other information related to the loan? A Promissory Note B Contract C Lien D Mortgage
A Promissory Note
What is the function of a mortgage?
A It conveys title to the real property
B It secures the repayment of the debt
C It creates a personal pledge to repay a loan
D It creates a lien on the mortgagee’s property
B It secures the repayment of the debt
When financing the purchase of real estate, What is the role of the mortgagor?
A The mortgagor gives a mortgage to a mortgagee
B The mortgagor takes a mortgage from a mortgagee
C The mortgagor gives a mortgage to a borrower
D The mortgagor takes a mortgage from a lender
A The mortgagor gives a mortgage to a mortgagee
Which clause in a mortgage requires the lender to acknowledge performance by the borrower? A Estoppel B Acceleration C Defeasance D Release
C Defeasance
what is the purpose of a receivership clause in a mortgage?
A it is used to protect the value of property during the foreclosure process
B it conveys ownership to mortgaged property to the rightful heirs of the decedent
C It allows an owner to charge rent when a property is mortgaged
D It specifies the party entitled to ownership of mortgaged property when a loan has been fully paid
A it is used to protect the value of property during the foreclosure process
A buyer has applied for a loan. The purchase price of the property is $280,000 if the borrower has $70,000 as a down payment, what is the loan to value ratio? A 25% B 33% C 66% D 75%
D 75%
Where would information such as the loan amount, interest rate, term of the loan and responsible parties be found? A Sales Contract B Mortgage deed C Mortgage D Promissory Note
D Promissory Note
Which would offer a potential borrower the most favorable interest rate over the life of the loan? A 4.0% plus 8 points B 5% plus 6 points C 75% Plus 4 points D 5% plus 2 points
A 4.0% plus 8 points
Which statement best describes a short sale?
A A Real estate transaction the closes in under 30 days
B A Settlement agreement where the lender agrees to a sales price that is below the outstanding loan balance
C A real estate transaction where the sellers agree to assist the buyers by taking a second mortgage
D A transaction that does not close due to buyers shortage of funds at closing.
B A Settlement agreement where the lender agrees to a sales price that is below the outstanding loan balance
Prior to deregulation of the banking industry in the 1980s, which institutions were dominant in providing funds for the purchase of single family residences? A Commercial Banks B Savings associations C The FHA D Mortgage Brokers
B Savings associations
What will be the effect if the Federal Reserve Board decides to purchase government securities in the open market
A The money supply will decrease and interest rates will increase
B The money supply will increase and interest rates will decrease
B The money supply will increase and interest rates will decrease
Interest Rates for Federal Housing Administration mortgages are determined by which of the following? A The Market B FHA C The Goverment D The Congress
A The Market
What is the purpose of the closing statement?
A To summarize the financial aspects of a real estate transaction.
B To determine the purchase price of the property.
C To determine which party pays the brokerage commission.
D To report Income to the Internal Revenue Service.
A To summarize the financial aspects of a real estate transaction.
What document stipulates which party pays which expense in a closing? A Listing Agreement B Purchase and Sale contract C Deed D Mortgage
B Purchase and Sale contract
Who is paid the balance due from the buyer that is shown on the closing statement? A The Seller B The mortgagee C The Broker D The Closing Agent
D The Closing Agent
Complete this statement. When determining prorations
on a closing statement the day of closing
A Belongs to the closing statement
B Is determined by the agreement
C Is the responsibility of the Seller
D is charged to the buyer
B Is determined by the agreement
If a Broward county property sold for $102,750, what must be paid for the documentary stamp tax on the deed A $616.20 B $616.80 C $718.90 D $719.25
D $719.25
$102,750/100=$1027.50x.70=$719.25
A palm beach county property is being sold for $98,350 and the buyer is taking title subject to an existing mortgage in the amount of $61,220. What is the total amount of taxes due on this transaction? A $214.55 B $688.10 C $688.80 D $903.35
C $688.80
$98,350/100x.70=
Real Estate taxes in a transaction are $1,034. if closing is to take place on April 16 with the day of closing belonging to the seller and the 365 day method is used, what is the amount of the proration and how is it handled?
A Debit the Seller and Credit the Buyer $297.45
B Debit the Seller and Credit the Buyer $300.28
C Debit the Buyer and Credit the Seller $287.45
D Debit the Buyer and Credit the Seller $300.28
B Debit the Seller and Credit the Buyer $300.28
Which of the following statements regarding abstract continuation and title insurance in a real estate closing is correct?
A Providing clear title is generally the responsibility of the Buyer
B The Seller normally pays for title insurance
C The Seller can require that the buyer use a specific title company even if the buyer is paying for title insurance.
D The seller can provide an abstract of title or title insurance as evidence of merchantable or marketable title.
D The seller can provide an abstract of title or title insurance as evidence of merchantable or marketable title.
Which Tax will not be required in a transaction where the purchaser assumes an existing mortgage? A Stamp tax on the deed B Note Tax C Stamp tax on the note and the deed D Intangible Tax
D Intangible Tax
Which of the following best describes the Free enterprise system? A A market System B A Centralized System C A socialist System D A Communist System
A A market System
How does the real estate market react to shifts in consumer demand? A Rapidly B Slowly C Not at all D Through changes in zoning laws
B Slowly
In which condition does market equilibrium exist? A When supply exceeds demand B When demand exceeds supply C When costs and prices stabllize D When supply and demand are in balance.
D When supply and demand are in balance.
Which of the following might be indicated if a neighborhood appears to have an abundance of For Sale signs and a unusually high number of rentals available?
A Neighborhood growth is continuing
B A period of revitalization has begun
C The neighborhood has entered a period of stability
D Decline in the neighborhood may be indicated
D Decline in the neighborhood may be indicated
What type of value does an appraiser most commonly estimate? A Book B Market C Insurable D Condemnation
B Market
All of the following methods may be used to estimate a replacement/reproduction cost, EXCEPT: A Quantity Survey B Economic Age Life C Unit in Place D Comparative Unit
B Economic Age Life
An appraiser is appraising a 3 bedroom house that has only one bathroom. The standard for the neighborhood is 2 bathrooms. From an analysis of the market, the appraiser believes a bathroom contributes $4,000 to the value of the home. If a comparable property having 3 bedrooms and 2 bathrooms recently sold for $126,000, and is similar in all other respects to the subject property. what value should be estimated for the subject property. A $118,000 B $122,000 C $126,000 D $130,000
B $122,000
Why is the process of Real Estate investment analysis important to an investor?
A It helps an investor select properties that meet personal objectives
B It determines the amount of taxes due on income producing properties
C It determines the exact cash flow from an investment property
D It makes possible the best use for a property based on zoning
A It helps an investor select properties that meet personal objectives
What type of risk is caused by changes in general business conditions? A Dynamic B Operating C Capital D Static
A Dynamic
Which document most closely resembles a Deed? A Bill of Sale B Security agreement C Balance Sheet D Operating Statement
A Bill of Sale
To which organization is real estate tax most important? A Federal Government B State Government C Local Government D Local Non Profit Organzations
C Local Government
How is 10 Mills expressed as a decimal? A 1 B 0.1 C 0.01 D 0.001
C 0.01
Homeowners who file itemized Tax Returns are allowed deductions for which of the following items?
A Real Estate Taxes and Repairs
B Hazard Insurance and Depreciation
C Real Estate Taxes and Mortgage interest
D Mortgage Interest and Utilities
C Real Estate Taxes and Mortgage interest
What is the rationale behind Government planning of Real Estate Development?
A To manage future real estate growth
B To encourage more landscaping
C To Limit Commercial Areas
D To maintain the character of a community
A To manage future real estate growth
Which of the following would not be a typical use of a physiographic study in preparing a comprehensive city plan?
A Avoiding unexpected problems with drainage due to soil conditions
B Anticipating the future need for new or widened roads
C Determining the suitability of a particular area for high rise offices
D Planing for potential agriculture use of existing unused land.
B Anticipating the future need for new or widened roads
What standard or process establishes the minimum standards for design and construction of buildings and structures? A Comprehensive planning B DRI Reviews C Zoning D Building Codes
D Building Codes
How are local planning boards selected? A By election B By appointment C By Lottery D By Straw Poll
B By appointment
Define
Tenancy for Years
A lease for a fixed period of time. For a tenancy for years lease, no notice is needed for termination, the lessee knows the termination date from the outset of the lease.
Define
Fee Simple Estate
The highest form of real estate ownership that is recognized by law, in which the owner can enjoy the property to its fullest extent and is only limited by zoning laws or other similar restrictions. The fee simple estate has unlimited duration and can be passed on to heirs. In relation to property in a condominium, the owner of a unit is owner only of his or her portion of the building, and jointly owns the land and common areas of the property with other tenants.
Define
Life Estate
In common law and statutory law, a life estate is the ownership of land for the duration of a person’s life. In legal terms, it is an estate in real property that ends at death when ownership of the property may revert to the original owner, or it may pass to another person.
Define
Tenancy by Entirety
Tenancy by the Entirety. A type of concurrent estate in real property held by a Husband and Wife whereby each owns the undivided whole of the property, coupled with the Right of Survivorship, so that upon the death of one, the survivor is entitled to the decedent’s share.
Define: Non Freehold Tenancy
The holder of the non-freehold estate is usually referred to as the tenant and the holder of the future interest is referred to as the landlord. This does not mean, however, that holders of a freehold estate always hold the property for longer than holders of a non-freeholder estate.
Define: Tenancy in Common
a shared tenancy in which each holder has a distinct, separately transferable interest.
Define Joint Tenancy
the holding of an estate or property jointly by two or more parties, the share of each passing to the other or others on death.
