Post License Test Flashcards
A sales associates leads are sorted into five categories. Which is Not one of those categories?
Close friends and family
Customers
Targeted friends *
Acquaintances
Under the Americans with Disabilities Act, architectural barriers must be removed to maximize accessibility if it is readily achievable to do so. Readily achievable is defined to mean that
The removal of barriers can be accomplished with little difficulty or expense
A sales associate employs a licensed personal assistant. The assistant will prepare CMAs, design property flyers, hold open houses, and prospect for listing appointments. The assistant will be paid a salary of 12$ per hour and 20% of the commissions received by the sales associate. Which method of payment will satisfy all legal requirements?
The associate may pay the salary and withhold taxes, but the broker must pay commissions.
When Sammy started with his new office, his broker suggested he practice filling I. A listing agreement using his own house. This activity will help Sa,,y squire what?
Technical Knowledge
Wilson was preparing a CMA for a three bedroom home in Westlake. One of the three comparable sales he reviewed was smaller by 80 square feet, had an extra garage stall, and was in better condition. He made a 6,000 adjustment for square footage, a $5,000 adjustment for the extra garage stall, and a 3,000 adjustment for condition. Which is CORRECT about his analysis?
The subject home is less valuable than the comparable property
One of the keys to prospecting success is NOT
Technical Knowledge
Larry is making an offer for a new home. He wants to have his spouse’s name on the deed in addition to his own, but she won’t be present to sign the contract. Larry should
Amend the contract to include his wife’s name at closing
The BEST source of listings for a new sales associate is
Sphere of influence
Apartment properties with “adults only” designations are illegal except when
At least 80% of the units have at least one occupant who is at least 55 years of age
John is developing a new strip shopping center in Auburndale. Which parking lot design features must be included to meet the requirements of the Americans with Disabilities Act?
There must be at least one accessible space for every 25 total spaces
In Heritage Oaks subdivision, a relatively new neighborhood with 345 homes, the media. Home price is $350,000: last year, 58 houses were sold, a 15% decline from the previous year the TURNOVER INDEX in heritage oaks is
17%
58/345= .16812 rounded is 17%
Sales associate Harold has prepared an appraisal of Smiths’ home. The purpose of this was so that his buyers could use the appraisal to secure in financing at Apopka National Bank. Which is NOT correct about this situation?
As long as Harold followed USPAP requirements, his appraisal was legal
When you answer the phone and speak with a prospective buyer, your principal objective should be to
Make an appointment
A fixed-rate, amortized mortgage with 26 payments resulting in a faster loan payoff than the traditional 30-year mortgage is called a
Biweekly mortgage
Which is NOT allowed under the CAN-SPAM Act?
Failure to include an opt-out method in commercial advertisements
A sales associate leans back and joins his hands behind his head while talking with a prospect. The sales associate is giving the impression of
Superiority
Sylvia had a pool put on her property last year that cost 45,000. This year, she sold her house. The appraiser valued the pool at $12,000. This demonstrates the principal of
Contribution
A transaction broker had the duty of
Limited confidentiality
A contractor who disturbs paint in a 40-year-old house
Must be certified and follow specific work procedures
Sales associate s find most of their FSBO contacts from
Classified ads
John’s home sells for 260,500. Expenses of the sale are 3,800. The brokerage fee is $18,235. Proration so for taxes and interest are $4,450. The mortgage payoff is $162,500. What are the seller’s proceeds fro, the sale?
71,515
260,500-162,500-3,800-18,235= 71,515
Sales associate Jones is preparing a seller’s net statement for Novaks. She estimates a closing date of June 26. Taxes are estimated at 4,000 and interest for June is $3,540. If she rounds to the nearest $100, which entries should she make on the statement
Charge the seller $2,000 for taxes and, to be safe, charge the seller $3,540 interest
Which is NOT a requirement of a successful listing presentation?
Have at least six months’ experience in making listing presentations
Which characteristic of a neighborhood is LEAST likely to make it a good farm area
Low price range
A single agent broker must give a brokerage relationship disclosure when a transaction is the
Sale of a condominium
When you explain the pricing process during a listing presentation, you would NOT ordinarily discuss
The requirements of the Fair Housing Act
Brooke wants to earn at least 90,000 next year. She plans that 60% of the income will come from listings sold and 40% from sales made. If the average commission from listings sold is $3,000, how many listings must Brooke sell in order to achieve that portion of her goals?
18
Florida home inspectors
Must have a high school diploma, complete a 120- hour course and pass a state examination
Which is NOT one of the three types of operating expenses of an income property
Debt service
The pricing pyramid is a visual graphic used in the pricing process showing
That there will be more activity if the property is priced from homes that have been sold.
A principal change to RESPA in 2010 was
A redesigned three-page Good Faith Estimate
The Florida Office of Financial Regulation requires that
Loan originators have a criminal background check made annually at renewal time
Apartments that are currently available for rent and in excellent condition will be part of a
Show list
A salesperson wishes to take home 60,000 annually. If taxes, dues, advertising, and fees are about 35% of his total earnings, he should set his goal at
$92,300
Which is recommended when showing properties to prospective buyers
Set appointments with the seller using a range of time rather than a specific time
Two successive year-to-year quarterly increase of the gross domestic product are interpreted as a
Recovery
Under the Do-Not-Call Registry rules, a telemarketer
May not use the registry to find new prospects
Exclusive agency listings
May be entered into the MLS
Florida law does NOT require brokers to
Have minimum commission rates on all listings
A comparable property has four bedrooms; the subject property has only three. If the appraiser estimates the difference based on number of bedrooms is $10,000, there should be a
Minus $10,000 adjustment to the comparable
An appraiser estimates that the better physical condition of the subject property requires an adjustment of $6,000 and makes a
Plus 6,000 adjustment to the comparable
A comparable property has four bedrooms, but is in worse physical condition than the subject, which has three bedrooms. The appraiser estimates that the difference in condition warrants a $6,000 adjustment, and the difference in number of bedrooms requires a $10,000 adjustment, when the correct adjustments for size and physical confirm have been made, the resulting net adjustment for these property characteristics will be
Minus $4,000
A private homeowner may not discriminate in the sale of his residence based on race
Because of the civil rights act of 1866
All other things being equal, probably the most convincing evidence that will help a seller decide that the buyer is “ready, willing and able” is
A substantial good faith deposit and a bank pre-approval letter
Which term is in the junk fax prevention act
Established business relationship
The Visions’ home sells for $430,000. Expenses of the sale are $4,800. The brokerage fee is $21,500. Proration so for taxes and interest are $6,450. The mortgage payoff is $362,500. What is the seller’s equity?
$67,500
Sales associate Bertha prepared an offer on the Smiths’ residence. She inserted a handwritten provision that conflicted with one of the printed terms of the contract form. If the seller signs the offer, the effect of the conflicting provisions will be that the
Handwritten portion supersedes the printed provision
In case the seller default and the contract was written using the FAR Residential Sale and Purchase Contract, the buyer
May cancel the contract
What should buyer Henry do to make sure the seller didn’t damage the home during moving
Do a pre-closing walk through inspection
Open listings
May be oral, written, or implied
Before closing, the sales associate should NOT
Check out the plumbing, electric appliances, and heating and air systems to be certain they are in working order
Owner John wants to sell his house and would prefer to save the commission. He lists with broker William on the basis that if the property is sold by a broker, William is entitled to a commission, but if John sells his own property he owes no commission. This is an
Exclusive listing
To protect herself from mortgage fraud, Nelda should NOT
Sign any loan documents that contain blanks
When listing a property, a sales associate should NOT get the legal description from
The county tax appraiser’s records
Questions to ask when qualifying a buyer’s housing objectives do NOT include
How much cash is available for a down payment
A percentage added to the index of an adjustable rate mortgage that results in the “calculated rate” is the
Margin
If prospective buyers currently have a home that must be sold before they can buy, the sales associate should
See the home and make a listing appointment
A sales associate is completing a buyer’s cost estimate. Price is $150,000 and buyers will get an 80% loan. The GFE shows total settlement costs of $7,100. The lender estimated prepaids at $2,200. If the buyer gives a $6,000 good-faith deposit, how much would be due at closing?
$33,300
Except for an uncooperative owner or tenant, the major reason listings expire is almost ALWAYS
Overpricing
A sales associate showed seven homes to a couple. They found just the right home, but tells the sales associate they want to “sleep on it”. The sales associate should
Ask permission to prepare the paperwork as if they were buying, then go over it
When curb appeal is not very good, buyers often ride by a for-sale-by-owner house without stopping. This would be discussed during a listing presentation as the problem of
Showing the property
A property sold for $149,240. The buyer paid 20% Dow. And financed the balance with a new mortgage. How much must be paid for the documentary stamp taxes on the deed?
$1,045.10
Which best describes a “nominee loan”?
The identity of the borrower is concealed through the use of a straw buyer who allows the borrower to use the straw buyer’s credit history
A principal is responsible for the acts of his or her
Single agent
Sales associate Williams is estimating the prepayments for a new loans that will close on June 7. If the first payment is due on August 1, how will the prepaid interest be calculated for the closing statement?
The buyer will be charged from June 7 through June 30
A seller’s listing agreement with a broker contains a provision that automatically extends the agreement an additional 90 days after expiration unless canceled in writing by either party. The listing is
Void
The principal of conformity to maintain and enhance property values in a subdivision is protected best by
Restrictive covenants
A technique recommended in the text to help sellers to favor your buyers over competing buyers is to
Have your buyers write a letter to the seller telling why they want to buy the home
A FAR Residential Purchase and Sale contract contains a contingency that the appraisal must equal or exceed the purchase price of $187,000. The appraisal comes back at $183,000. The contract is now
Voided by the buyer
If you are presenting an offer on a property listed with a cooperating broker, you should NOT
Present the offer without the listing agent being present
Which is NOT the right way to make successful prospecting calls?
Make them at random hours on different days
The LAST item that should be covered when presenting an offer to the seller is the
Price
The federal law requiring fair consideration of consumer loan applications from women and minority races is the
Equal credit opportunity act
The minimum legal description for a platter subdivision would NOT include
The name of the subdivision
A title defect is found which. Is difficult to remove by ordinary means. This cloud is the. Normally cleared by
Filing a suit to quiet title
Sales associate John is talking with a customer. She. The customer nods his head, John smiles and occasionally nods. John is using a reflecting method called
Matching
When staging the home, the seller should NOT
Demonstrate her personality with unique decorating touches
Which would NOT be included in the operating expenses of an income property
Mortgage principal
A non-cash expense intended to account for the eventual wearing out of major components of the property is called
Reserves for replacements
The Americans with Disabilities Accessibility Implementation Act does NOT protect
Homosexuals
The phase of a business cycle after a recession is which consumer confidence is shaken and consumers reduce spending is called
Contraction
Which is NOT one of the four basic loan processing procedures
Determining a buyer’s housing objective
John has a house listed at $200,000 on Third Avenue. It’s overpriced and he feels it has only a 70% chance of selling in the original listing term. He also has a $300,000 house that has an 80% chance of sale. A quality review of his listings shows he realistically has
1.5 listings with a volume of $380,000
A sales associate receives a good faith deposit from a buyer on Wednesday. If the broker holds the escrow account, the funds must be deposited no later than
Monday of the following week
Jill applies for a $200,000, 30-year fixed-rate mortgage loan at 5%. The mortgage payment factor is .0053682. Taxes for the year are $4,000 and insurance is $2,400. Jill’s monthly payment for PITI will be
$1,606.97
A loan officer tells a buyer that the mortgage interest rate will be higher because the home is located in a minority area. This is an illegal practice called
Redlining
Rudy agreed to purchase a home from sam, an acquaintance. It was not written, but the parties shook hands to cement the deal. Rudy paid a $5,000 earnest money deposit to Sam, which makes it an
Unenforceable contract
Which transaction using the FAR Residential Purchase and Sale Contract would be MOST appropriate?
Sale of a house
If a contract for the sale of a condominium includes a list and separate valuation of the personal property,
Sales tax must be paid on the personal property
A buyer is ready to purchase with a 15% down payment. The sales associate suggests that he put down at least 20% percent if possible because
The buyer can save money by not having to pay for mortgage insurance
When vacancy and collection losses are subtracted from potential gross income the resulting amount is called
Effective gross income
Owners of the 650 homes in Happy Farms subdivision list their houses, on average, every six years. If sales associate Marian farms that neighborhood and lists 40 percent of the homes, how many homes can she expect to list this year
43
At closing a seller will not be asked to sign an affidavit that
He is losing money on the sale
Which is NOT a component of a full title report
Credit report
Which is NOT be considered a “post-closing duty?”
Making a walk-through inspection of the property
Callers on real estate for sale classified advertising generally ask the licensee for the
Price of the property
If the property taxes for the year are $4,780, the closing date is January 16, with the day of closing belonging to the buyer, What is the proration p, using the 365-day method?
Debit seller, credit buyer 196.44
Long term capital gains are taxed at a minimum of
15 percent
Two competing brokers have lunch and agree to increase their commission rates to seven percent at the same time, thus violating
Antitrust laws
The fact that a property was on the site of a homicide
Need not be disclosed in a real estate transaction
