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Real Estate Test > Practice Exam 4 > Flashcards

Practice Exam 4 Flashcards

0
Q
  1. Which covenant in a deed assures the grantee that there are no claims or liens on the property other than those specifically listed on the deed?

A. warrant of quiet clause
B. encumbrance clause
C. seizin clause
D. warrant of further assurance

A

B. encumbrance clause

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1
Q
  1. Which set of terms is NOT synonymous?

A. vendee, purchaser
B. mortgagee, lender
C. lessor, landlord
D. grantee, seller

A

D. grantee, seller

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2
Q
  1. Mr. Able sold his home to Mr. and Mrs. Baker and gave them a warranty deed. The Bakers moved into the home but did not record the deed. Two days later, Mr. Able died, and his heirs up north sold the property without any knowledge of the previous sale. The heirs conveyed title to Mr. and Mrs. Charles, who did record the deed. Who owns the property?

A. Mr. and Mrs. Baker
B. Mr. and Mrs. Charles
C. Mr. Able’s heirs
D. the Charles and the Bakers as joint tenants

A

A. Mr. and Mrs. Baker

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3
Q
  1. In the case of eminent domain, the owner

A. is paid fair compensation
B. receives no compensation
C. receives 50% of market value
D. receives what he or she feels is appropriate

A

A. is paid fair compensation

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4
Q
  1. Broker Bob has an exclusive listing. The owner calls and asks if Bob has any offers. Bob says no. Broker Charles submits an offer to the owner that is accepted. Bob

A. can sue for unliquidated damages but not commission

B. and Charles must share the commission

C. can do nothing

D. is entitled to full commission

A

A. can sue for unliquidated damages but not commission

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5
Q
  1. Broker Brown gets a listing from Mr. Jones. Broker Brown agrees to advertise, caravan and print material intended to help in the sale of the house. Mr. Jones agrees to pay a commission to Broker Brown no matter who sells the house. This is

A. an exclusive listing
B. an implied listing
C. a general agency agreement
D. an exclusive right of sale listing

A

D. an exclusive right of sale listing

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6
Q
  1. A broker who negotiates a contract for the sale of a house between the owner and purchaser in violation of the Statute of Frauds will

A. have his or her registration suspended

B. have his or her registration revoked

C. lose his or her commission on the sale

D. not be disciplined

A

D. not be disciplined

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7
Q
  1. A parol contract is

A. in writing
B. signed by two witnesses
C. covered by Statue of Frauds
D. oral

A

D. oral

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8
Q
  1. A contract is a formal contract if it has

A. an acknowledgment
B. signatures
C. a written form
D. a notary’s statement

A

C. a written form

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9
Q
  1. A broker accepts a listing that has an I merchantable title. A sales contract is signed, and a deposit is obtained contingent upon the owner clearing title. At closing, the owner cannot give a clear title. The deposit is returned to the buyer. Which applies?

A. The broker is entitled to a full commission

B. The owner can sue the broker and the buyer

C. The buyer can sue the owner

D. The contingency was not met, contract is dead

A

D. The contingency was not met, contract is dead

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10
Q
  1. Regarding a lease for 12 moths or less, it

A. must be in writing to be valid (enforceable)

B. must be in writing to be benefit the lessee

C. must be in writing to benefit the lessor

D. should be in writing to avoid misunderstanding

A

D. should be in writing to avoid misunderstanding

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11
Q
  1. Florida has established three agency relationships, unless otherwise established by agreement a broker’s relationship with the public is

A. no brokerage
B. single agency
C. dual agency
D. transaction brokerage

A

D. transaction brokerage

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12
Q
  1. An option contract is

A. executed
B. unilateral
C. bilateral
D. parol

A

B. unilateral

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13
Q
  1. The buyer signs an offer with a deposit, but the seller changes the price. What should the sales associate do?

A. Make the necessary change, have the seller sign and initial the changes and then have the buyer initial the changes

B. Make the changes, have the buyer sign and then have the seller sign

C. Prepare a new offer reflecting the changes; have all parties sign

D. Advise the seller that there can be no changes

A

A. Make the necessary change, have the seller sign and initial the changes and then have the buyer initial the changes

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14
Q
  1. A listing held by two or more licensed broker is

A. a multiple listing
B. an exclusive right of sale listing
C. an open listing
D. a net listing

A

C. an open listing

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15
Q
  1. A broker has a 90-day listing with Mr. and Mrs. Jones and shows the property to Mr. and Mrs. Smith prior to expiration of the listing. The Smiths show an interest in the property but go back north without making an offer. Next season, the Smiths are back and happen to meet Mr. and Mrs. Jones while shopping. After several meetings, the Smiths make an offer and purchase the property. The broker

A. is the procuring cause of the sale and is entitled to a commission

B. is entitled to damages

C. is entitled to nothing

D. may request FREC to interplead

A

C. is entitled to nothing

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16
Q
  1. An option is a

A. unilateral contract, binding on both parties

B. bilateral contract, binding only on the optionee

C. unilateral contract, binding only on the optionor

D. bilateral contract, binding on both parties

A

C. unilateral contract, binding only on the optionor

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17
Q
  1. A broker has a listing for $25,000, all cash. A buyer makes an offer for $30,000 and asks the broker to show $5,000 as a down payment, which he doesn’t give. He does this so he can arrange a loan for $25,000, which will go to the seller – thereby meeting the del let’s terms. What should the broker do?

A. Charge a commission based on $30,000

B. Charge a commission based on $25,000

C. Find another buyer

D. Withdraw from the listing

A

C. Find another buyer

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18
Q
  1. A planned unit development (PUD)

A. provides a higher number of dwellings and maximum utilization of open areas

B. typically includes only residential use

C. requires areas to be left open for future growth

D. is a less efficient use of land

A

A. provides a higher number of dwellings and maximum utilization of open areas

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19
Q
  1. Zoning laws regulate

A. type of use

B. structures and building materials

C. public right of way and easements

D. color of exteriors, type of roof tile and so on

A

A. type of use

20
Q
  1. An owner wants to build a 15-foot deck on the side of a house. There is a 10-foot setback requirement. If he builds the deck, there would be only 5 feet left over. He could

A. ask for a variance

B. request a special exception or special use

C. Build the deck under a nonconforming use

D. send the plans to the building department for approval

A

A. ask for a variance

21
Q
  1. What is the term that is applied to the practice of keeping low-income people out of a particular neighborhood?

A. zoning
B. exclusionary of snob zoning
C. nonconforming use
D. subdivision exception

A

B. exclusionary of snob zoning

22
Q
  1. An owner seeking to subdivide his or her land would approach the

A. Florida Real Estate Commission

B. Division of Florida Land Sales

C. Department of Housing and Urban Development

D. local planning board or the appropriate government agency

A

D. local planning board or the appropriate government agency

23
Q
  1. Safety is NOT promoted by

A. an intersection with a four-way stop sign

B. a residential area with urban encroachment

C. a yield sign

D. a smoke detector

A

B. a residential area with urban encroachment

24
Q
  1. These are reasons for building code setback requirements, EXCEPT

A. provide air and light for building occupants

B. reduce the risk of fires spreading out of control

C. Leave room for future roadways

D. afford privacy to building occupants

A

C. Leave room for future roadways

25
Q
  1. In matters concerning site planning, subdivision plat approval and sign acceptability, the planning commission

A. has the final authority
B. acts in an advisory role
C. has no authority
D. is not concerned

A

A. has the final authority

26
Q
  1. The owner of an apartment building would be required to provide all of the following EXCEPT

A. heat and hot water
B. garbage pickup
C. laundry service
D. pest control services

A

C. laundry service

27
Q
  1. Under specific circumstances, real estate law allows a broker to appoint one sales associate to represent the seller and another to represent the buyer. Provided all qualifications have been met, the sales associates would be called

A. dual agents
B. transaction brokers
C. designated agents
D. special agents

A

C. designated agents

28
Q
  1. In order for a broker to appoint designated sales associates to represent the buyer and seller, all of the following conditions must be met, EXCEPT

A. it is a residential transaction
B. it is a nonresidential transaction
C. the buyer and seller must sign statements
D. the buyer and seller must have assets of at least 1 million dollars

A

A. it is a residential transaction

29
Q
  1. All REALTORS are licensees, but not all licensees are REALTORS. In order for a broker to become a REALTOR, the broker must

A. file with FREC

B. become a member of a local Association of REALTORS

C. complete a FREC educational program

D. complete 45 hours of postlicense education

A

B. become a member of a local Association of REALTORS

30
Q
  1. Follow-up in the real estate industry refers to

A. a broker following up on his sales associates

B. staying in touch with a client after the sale

C. FREC following up on legally sufficient complaints

D. sales associates keeping up with “for sale by owners.”

A

B. staying in touch with a client after the sale

31
Q
  1. “A” has a 99-year lease on an apartment building. The building must have badly needed repairs. “A” goes to “B,” a businessperson, and offers a mortgage and note in the amount of $65,000 on the apartment building. “A” explains to “B” that the mortgage and note could be sold for $60,000 and that “A” needs only $55,000 to make the repairs, and that “B” can retain the other $5,000 as a commission for selling the mortgage and note. The mortgage and note is to be paid from rental collection from the apartment building over the next 5 years. In this situation

A. this is a fraudulent conspiracy by “A” and “B”

B. “A” is in violation of the real estate license law

C. this is NOT a violation of Chapter 475, F.S

D. “B” should be licensed, as “B” is handling the sale of leased property

A

C. this is NOT a violation of Chapter 475, F.S

32
Q
  1. The primary reason for the increased need for property managers is

A. farming
B. absentee ownership
C. stricter license law
D. channeling

A

B. absentee ownership

33
Q
  1. The purchase price of a business, less the value of the tangible assets of that business is know as

A. real property
B. common stock
C. goodwill
D. personal property

A

C. goodwill

34
Q
  1. In the process of mortgage underwriting (qualifying), which is of most concern to the lender?

A. assets
B. credit history
C. deductions
D. income

A

D. income

35
Q
  1. When a buyer signs a sales contract (or has purchased under contract for a deed), he has

A. ostensible title
B. real title
C. actual title
D. equitable title

A

D. equitable title

36
Q
  1. In a lien theory state, what instrument would be conveyed by the mortgagee to the mortgagor when the mortgage has been paid in full?

A. a reconveyance deed
B. a notice of redemption
C. a quitclaim deed
D. a letter of satisfaction

A

D. a letter of satisfaction

37
Q
  1. A valid mortgage does NOT require

A. the legal description
B. signature of the mortgagee
C. signature of the mortgagor
D. it be in writing

A

B. signature of the mortgagee

38
Q
  1. In a level payment annuity or an amortized mortgage, the part of the monthly payment that reduces the principal balance is the

A. debt service
B. amortization
C. interest
D. principal and interest

A

B. amortization

39
Q
  1. In order to reduce the initial outlay involved in the purchase of a home, personal property is included

A. as an optional extra
B. in the down payment
C. in a package mortgage
D. never

A

C. in a package mortgage

40
Q
  1. A buyer purchases a property with an existing mortgage and assumes personal responsibility for the note. This is know as

A. an assignment of mortgage
B. novation
C. purchasing subject to a mortgage
D. an assumption of mortgage

A

D. an assumption of mortgage

41
Q
  1. The maximum loan permissible for a VA loan is

A. $89,912
B. determined by location
C. determined by the VA
D. determined by individual lenders

A

D. determined by individual lenders

42
Q
  1. A buyer takes over the seller’s mortgage payments, but he does not assume liability. This is

A. called purchasing subject to the mortgage

B. an example of novation

C. legal when the mortgage contains a due-on-sale clause

D. an example of an assumption

A

A. called purchasing subject to the mortgage

43
Q
  1. The clause in a mortgage which requires the lender to look to the mortgaged property only for satisfaction is the

A. defeasance clause
B. exculpatory clause
C. cognovit clause
D. subordination clause

A

B. exculpatory clause

44
Q
  1. Which loan does NOT require a down payment?

A. VA guaranteed
B. conventional
C. FHA insured
D. construction

A

A. VA guaranteed

45
Q
  1. What does the buyer NOT receive at closing?

A. deed
B. mortgage
C. opinion of title
D. closing statement

A

B. mortgage

46
Q
  1. In a trust deed, the three parties are the

A. benefactor, trustee and trustor

B. beneficiary, mortgagor and trustee

C. beneficiary, trustor and trustee

D. beneficiary, mortgagee and trustor

A

C. beneficiary, trustor and trustee

47
Q
  1. The federal government agency does NOT regulate the lending policies of

A. savings associations
B. commercial banks
C. life insurance companies
D. mutual savings banks

A

C. life insurance companies

48
Q
  1. Which is NOT always a junior lien?

A. wraparound mortgage
B. second mortgage
C. purchase money mortgage
D. third mortgagee

A

C. purchase money mortgage

Real Estate Test (4 decks)

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