Practive Exam 4 Flashcards
Of the seven members of the FREC, two must
a. be licensed attorneys
b. have never been licensed as real estate sales associates or brokers.
b. have never been licensed as real estate sales associates or brokers.
- A sales associate decides to quit his brokerage and go to work for another broker.
Which applies?
a. The sales associate must be registered with FREC/DBPR under the new broker before working there.
b. The old broker must agree to the agreement.
a. The sales associate must be registered with FREC/DBPR under the new broker before working there.
- The guarantee in which the seller provides assurance that he owns the property and, therefore, has the right to sell it is called the covenant of
a. encumbrances.
b. seisin.
b. seisin.
- In the law of real property, the Statute of Frauds refers to the
a. legality of the object of the contract.
b. requirement that to be enforceable, contracts must be in writing.
b. requirement that to be enforceable, contracts must be in writing.
- A borrower has a home loan and his deed states that he is the owner of the property.
The mortgage is an encumbrance and upon repayment of the loan, the cloud will be removed. Which theory of mortgage lending is this describing?
a. Lien theory
b. Title theory
a. Lien theory
- A developer purchased 100 acres of land and is currently subdividing the property. He plans to make a new subdivision and should reserve within the mortgage a
a. partial release clause.
b. an escape clause.
a. partial release clause.
- The capitalization rate is obtained by
a. dividing the net operating income by the sales price.
b. dividing the sales price by the net operating income.
a. dividing the net operating income by the sales price
- Property management in the real estate business has gained popularity and importance due to
a. the growth in absentee ownership.
b. the growth in supply and demand of the market economy.
a. the growth in absentee ownership.
What is called when a person has interest in real property and implies that the individual will receive legal title at a future date?
a. Abstract of title
b. Equitable title
b. Equitable title
In a platted subdivision, the legal description most often used is
a. Metes and bounds
b. Lot and block
b. Lot and block
Which of the following elements is not essential to make a contract valid?
a. Recording
b. Competent parties
a. Recording
The Florida Constitutional Homestead Tax Exemption is up to $50,000 and is deducted from the
a. taxable value.
b. assessed value when calculating taxable value.
b. assessed value when calculating taxable value.
The monetary policy in the United States is determined by
a. Federal Reserve System
b. The FREC
a. Federal Reserve System
What is called when the plaintiff seeks to have the court force the party not in breach to perform according to the contract?
a. Specific performance
b. Liquidated damages
a. Specific performance
With a Purchase Money Mortgage, (PMM) a mortgage is typically paid back to whom?
a. The seller
b. The buyer
a. The seller
- Which of the following would most concern a lender when deciding to give a buyer a loan?
a. The buyer’s familial status
b. The buyer’s credit score
b. The buyer’s credit score
A good indicator of the relationship between supply and demand in the residential market is
a. the market conditions and supply rate.
b. the vacancy rate.
the vacancy rate.
Which of the following is deductible for a homeowner on their federal income taxes?
a. Mortgage payments and property taxes
b. Mortgage interest and property taxes
b. Mortgage interest and property taxes
Highest and best use
A. is the most effective utilization economically.
b. is the most common appraisal method.
A. is the most effective utilization economically.
A licensee may substitute attendance at one legal agenda session of the FREC for
a. six hours of continuing education.
b. three hours of continuing education.
b. three hours of continuing education.
An unlicensed assistant can
a. hand out materials at an open house.
b. give opinions of what the value of the house is worth at an open house.
a. hand out materials at an open house.
When must the no brokerage relationship notice be disclosed?
a. Before the agent transitions to a transaction broker
b. In writing before showing the property
b. In writing before showing the property
Advertisements that fail to disclose the name of the brokerage firm
a. are false advertisements.
b. are blind advertisements.
b. are blind advertisements.
When the principal a licensee is working with asks the licensee not to show his property to persons of a particular race
a. the licensee should follow his directions.
b. the licensee should withdraw and not work with the owner.
b. the licensee should withdraw and not work with the owner.
Physical components of real property do not include
a. timber rights.
b. subsurface rights.
a. timber rights.
The main purpose of the Florida Constitutional Homestead is
a. to provide housing for older persons in Florida.
b. to exempt property from a forced sale.
b. to exempt property from a forced sale.
- What does an agent have to do that fails to complete the required 45-hour post license course before the expiration of his or her license if he or she wishes to continue in real estate?
a. Pay a fine and renew his or her license
b. Repeat the pre license course, pass the state exam, submit fingerprints, and submit an application for license
b. Repeat the pre license course, pass the state exam, submit fingerprints, and submit an application for license
What is the law that establishes the legal rights and responsibilities of real estate licensees is
a. F.S. 475
b. Chapter 61j2
a. F.S. 475
- When a buyer is a real estate broker’s principal, the sales associates in the broker’s office are
a. also bound by the broker’s agency obligations.
b. required to assume fiduciary duties to the buyer and the seller.
a. also bound by the broker’s agency obligations.
A real estate broker and an owner developer are sisters, and they share an office.
Which applies?
a. A sales associate could be employed by both the owner developer and the broker because they share an office.
b. A sales associate must be registered with the DBPR and can only work for either the owner developer or the broker but not both.
b. A sales associate must be registered with the DBPR and can only work for either the owner developer or the broker but not both.
Lotteries
a. are legal and used sometimes in Florida for listings.
b. are an illegal practice and not used in Florida.
b. are an illegal practice and not used in Florida.
Advertising for a brokerage corporation must include the
a. registered name of the brokerage firm.
b. broker’s license number.
a. registered name of the brokerage firm.
How long does a tenant have to dispute a claim made by a landlord, (in writing)?
a. 15 days
b. 30 days
a. 15 days
A joint tenant who wants to sell their share of a property
a. can sell their property to someone and that someone would also be joint tenant.
b. can sell their property to someone and that someone would be a tenant in common.
b. can sell their property to someone and that someone would be a tenant in common.
What is the law that states sellers are required to provide buyers with the HOA disclosure summary before the execution of a contract?
a. F.S. 720
b. F.S. 475
a. F.S. 720
- Which of the following would not need to be a part of a metes and bounds legal description?
a. Reference to a monument, such as a tree or rock
b. The proper distances between corners of the property
b. The proper distances between corners of the property
Option contracts are
a. Unilateral
b. Bilateral
a. Unilateral
The cost of a mortgage stated as a yearly rate and includes such items as interest, mortgage insurance, and loan origination points is called the
a. adjustable-rate mortgage.
b. interest rate.
b. interest rate.
To raise the lender’s yield on a mortgage by 1%, the approximate discount points required is
a. 8 points
b. 4 points
a. 8 points
- The mortgage lien in a title theory state has been paid in full. The mortgage lien can be released through
a. a partial release clause.
b. the defeasance clause.
b. the defeasance clause.
Typically the documentary stamp tax on the deed is paid by the
a. seller.
b. buyer.
a. seller
Leverage is
a. the practice of assisting buyers in the sale of property.
b. the practice of using borrowed funds to finance the purchase of an asset.
b. the practice of using borrowed funds to finance the purchase of an asset.
What is it called when an investor may lose all or part of an investment?
a. leverage
b. risk
b. risk
- If the subject property has four bedrooms and a comparable property has three bedrooms and the appraiser has determined a bedroom is worth $5,000, what adjustment should the appraiser make?
a. subtract $5,000 from the comparable
b. add $5,000 to the comparable
b. add $5,000 to the comparable
Increased traffic flow of a neighborhood would most likely cause
a. external obsolescence.
b. functional obsolescence.
a. external obsolescence.
- A broker had an open listing and found the buyer for the property but then went into the hospital. If that buyer buys the house in his absence, does he have a case for receiving commission?
a. no
b. yes
B yes
If a broker advertises a property for sale and knows that the property has hazardous chemicals underneath it, the broker is
a. not required to disclose this to buyers.
b. always required to disclose this to buyers.
b. always required to disclose this to buyers.
A sales associate performs a broker’s price opinion. Who is the bank that ordered the BPO required to pay?
a. the sales associate
b. the sales associate’s broker
b. the sales associate’s broker