Real Estate Exam 1,009 Q&A #401-600 Flashcards
The 1866 Civil Rights Act prohibits discrimination on the basis of ______.
race
An owner that does not use the service of a broker and does not discriminant in advertising is _______ from the Civil Rights Act of 1968.
exempt
Lenders that refuse to make loans in certain geographic areas based on social or economic considerations are practicing _______.
Redlining
According to the Americans with Disabilities Act, owners are required to make modifications to properties to comply with the Act whenever the modifications are _______ _______.
Economically Feasible
A lease payment that increases based on a portion of the income received by a tenant is called a _______ lease.
Percentage
When all rights under lease have been transferred for the entire lease period, the process is called a/an ____________.
assignment
Federal law governing telephone solicitations prohibits calls to residences after _______.
9:00 PM
If a landlord requires a security deposit, the landlord must:
a. deposit the funds in compliance with Chapter 475, Florida statutes.
b. notify the tenant of the location of the funds within 20 days of receiving the funds.
c. pay interest at the rate of 5% per year, with disbursements at least once each year.
d. return the funds within 15 days after the tenant vacates the premise or give notice of the intention to impose a claim against the security deposit by certified mail.
d. return the funds within 15 days after the tenant vacates the premise or give notice of the intention to impose a claim against the security deposit by certified mail.
What term is used to describe a situation in which a real estate licensee tells a customer an advertised property is available for sale when it is?
a. steering
b. channeling
c. conspiring
d. blockbusting
a. steering
A broker that induces owners to list or sell on the basis the neighborhood is deterioration due to minority influences is guilty of:
a. steering
b. channeling
c. conspiring
d. blockbusting
d. blockbusting
A property owner is registered on both the state and federal “do not call” lists. Solicitation calls to this owner by a licensee:
a. may only be made between 9 AM and 8 PM.
b. may not be made when representing a buyer.
c. could result in a fine of up to $15,000.
d. are not permitted when attempting to obtain a listing.
d. are not permitted when attempting to obtain a listing.
Mary and Louise open a beauty shop in a regional mall. Their lease requires a portion of business income to be paid in addition to the periodic rent. What type of lease to they have?
a. flat
b. step-up
c. percentage
d. graduated
c. percentage
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. This arrangement is:
a. a violation of the terms of the lease.
b. a sublease
c. in violation statute 83
d. illegal
b. a sublease
Discrimination based on religion is prohibited by the:
a. civil rights act of 1866
b. Civil rights act of 1968
c. Civil rights at 1964
d. Fair Housing Amendments of 1988
b. Civil rights act of 1968
Three legal rights contained in the bundle of rights include _______, _______ and _______ _______.
possession, disposition, and quiet enjoyment
_______ rights allow a property owner whose property borders on a river or stream the use of the water.
Riparian
A _______ and _______ may hold a tenancy by the entireties.
husband and wife
A joint tenancy and a tenancy by the entireties both include a right of _______ .
survivorship
The estate that may be created by the same or different deeds is the tenancy _______.
in common. (no right of survivorship)
If title passes upon the death of a life tenant to a party other than the original grantor, the party receiving the ownership rights is called a _______.
remainderman
The right to occupy specific space granted by a Cooperative Association is known as a _______ _______.
proprietary lease
Ownership of _______ _______ _______to distinguishes ownership in a cooperative association.
shares of stock
Property that is exempt from execution of foreclosure to satisfy a personal debt of the head of household can be up to 1/2 acre within the city or up to ___ acres outside the city.
160
Able, who holds the title in fee simple, deeds land to Baker to enjoy until his death. At that time Charlie is to receive title to the land. Baker’s interest in the land is known as
a. a fee simple estate
b. life estate
c. remainder estate
d. estate for years
b. life estate
Based on the information in the previous question Charlie’s interest in the land is a
a. Reversion estate.
b. Remainder estate.
c. Estate for years.
d. Joint estate.
b. Remainder estate
The full bundle of rights and real property includes
a. Destruction, use and extinction.
b. Destruction, use and enjoyment.
c. Use, expatriation, and enjoyment.
d. Disposition, use, and exclusion.
e. Disposition, possession, and quiet enjoyment
e. Disposition, possession, and quiet enjoyment
Tests used by courts to determine whether an item is real or personal property include:
a. intent, relationship of the parties, method of annexation and adaptation.
b. Intent, abandonment, redemption and accretion.
c. Size, annexation, avulsion and adaptation.
d. Intent, size, annexation and redemption.
a. intent, relationship of the parties, method of annexation and adaptation.
The four unities required to create a joint tenancy are
a. Interest, survivorship, possession and time.
b. Possession, deed, title and time.
c. Possession, interest, time and title.
d. Person, use, and interest and purpose.
c. Possession, interest, time and title.
Paul and Paula are husband-and-wife. They own property as tenants by that entireties. They divorce without a property settlement. Unless otherwise decreed by court, they now hold title as
a. Joint tenants.
b. Tenants in common.
c. Tenants by the entireties.
d. Joint tenants with the right of survivorship.
b. Tenants in common.
What rights does a property owner have to the use of water flowing over or through his or her land?
a. Riparian
b. Littoral
c. Flowage
d. Aquifer
a. Riparian
A potential purchaser of the new timeshare can cancel the track at contract without penalty within how many days?
a. 10
b. 20
c. 30
d. 40
a. 10
Which statement best describes a tenancy at sufferance?
a. the tenant suffers from the landlords failure to maintain the property.
b. The landlord suffers from the tenants failure to pay rent.
c. The lease instrument is valid.
d. The tenant remained in possession after expiration of the lease.
d.The tenant remained in possession after expiration of the lease.
Legal rights being conveyed are expressed in the ________clause.
Habendum
The quitclaim contains _______warrants
No
Title to real property passes to the grantee when the deed is _______ and _______.
Delivered, Accepted (takes place at closing)
Title by adverse possession may be obtained after _______ years
Seven
Recording a document in the public records provides _______ notice.
Constructive
To be valid, a deed must be signed by the_______ and _______witnesses.
Grantor, two (grantee doesnt have to sign)
Legal rights being conveyed are expressed in the _______ clause.
Habendum
Actual notice is provided by _______ _______.
Physical possession
The _______ title policy is transferable; the _______ is not.
Lenders (mortgagee), mortgagor
_______, _______, and _______ are classified as superior liens.
Real estate taxes, special assessments, and federal estate taxes
Which clause and the deed states the interest being conveyed?
a. Habendum
b. Reddendum
c. Release
d. Seisin
Habendum
Which statement is correct concerning a quitclaim deed? A. The only warrant contained in the deed is a warrant of seisin
B. The grantor cannot transfer ownership under a quitclaim deed
C. A quitclaim deed transfers temporary title
D. it may be used to cure defects in title
D. it may be used to cure defects in title (best for the grantor)
Zoning is an example of which government limitation over private property rights? A. Police power B. Eminent domain C. Escheat D. Taxation
A. Police power
To obtain title by adverse possession requires
A. Possession of the property for one month.
B. Paying taxes on the property for two 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.
(involuntary alienation)
What type of notice is considered to be the best proof of ownership? A. Actual B. Constructive C. Implied D. Expressed
B. Constructive
Recording in public record
The most accurate method of legally describing property is the _____ _____ _____ method.
metes and bounds
The initial reference point in a metes and bounds legal description is the _____, then the _____ _____ _____.
Monument, point of beginning
A township is _____ miles square and contains _____ square miles.
6, 36
There are _____ square feet in an acre.
43,560
There are _____ feet in a mile.
5280
There are _____ acres in a section
640
Properties located in subdivided areas are usually described using the _____ method
Lot and block
Damages specified in a contract are _______ damages
Liquidated
A contract wholly in writing may be enforced for _______ years specified by the _______ _______ _______.
Five years, statute of limitations
The parties to an option are the _______, who is the owner of the property, and the _______, who is the potential purchaser.
Optionor, optionee
When all terms and conditions are NOT fully expressed, a contract is referred to as being: A. Implied B. Bilateral C. Parole D. Executory
A. Implied
Which statute requires a purchase and sale contract to be in writing to be enforceable? A. Chapter 475 B. Chapter 120 C. Statue of limitations D. Statute of frauds
D. Statute of frauds
The time. For enforcement of the contract is established by the A. Statute of frauds B. Statute of limitations C. Real estate license law D. State courts
B. Statute of limitations
The estimate that contains the amount of the loan, interest-rate, payment provisions and other terms of the loan is the _____ _____.
Promissary Notes
The right of a borrower to cure a default prior to foreclosure is called the _____ _____ _____.
Equity of redemption
The legal instrument which evidences the debt and states that interest rate, term, payment requirement and other information related to the loan is the A. Promissory note B. Contract C. Lien D. mortgage
A. Promissory Note
When financing the purchase of real estate, the mortgagor A. Gives a mortgage to a mortgagee B. Takes a mortgage from a mortgagee C. Gives a mortgage to a borrower D. Takes a mortgage from a lender
A. Gives a mortgage to a mortgagee
In order to qualified for a FHA 203b insured mortgage loan, an applicants housing expense ratio cannot exceed A. 25% B. 28% C. 31% D. 43%
C. 31%
The party that holds title to real property and a lien theory state is the A. Trustee B. Mortgagor C. mortgagee D. Beneficiary
B. Mortgagor
The right of a mortgagor in default to pay all money owned and prevent the sale of property at foreclosure is called the equity of A. Redemption B. Estoppel C. Defeasance D. Release
A. Equity of redemption
To discount points on a 7% loan increase the effective rate of interest on the loan to approximately A. 7 1/8% B. 7 1/4% C. 7 1/2% D. 7 3/4%
B. 7 1/4%
Funds remaining after all liens had been paid following a foreclosure sale belong to the
A. Sheriff of the county in which the property is located
B. Clerk of the Circuit Court
C. Mortgagor
D. Mortgagee
C. Mortgagor
The real estate settlement procedures act (RESPA) does NOT require
A. Disclosure of a good faith estimate of closing costs
B. Use of the HUD -1 settlement statement form at closing
C. Receipt by a borrower of a booklet entitled “settlement costs and you.”
D. Disclosure of the annual percentage rate (APR)
D. Disclosure of the annual percentage rate (APR)
The process of qualifying a borrower and a property in connection with the loan application is known as mortgage _____.
Underwriting
Life insurance companies are the largest source of funds for _____ loans.
Shopping center (nonresidential)
The least effective tool the Federal Reserve system has to affect the money supply is changes in the _____ _____.
Discount rate
The primary mortgage market is where loans are _____.
Originated
A loan applicant’s past credit history indicates his or her _____ to honor debt obligations, and his or her income is a measure of the _____ to repay the loan.
Willingness, ability
The major source of funds for large shopping center real estate developments are A. Savings and loan associations B. Commercial banks C. Life Insurance companies D. Mutual savings banks
C. Life Insurance companies
It’s the Federal Reserve Board decides to purchase government securities in the open market, the effect will be to
A. Decrease the money supply and cause interest rates to increase
B. Increase the money supply and cause interest rates to decrease
C. Limited amount of money member banks may use for loan purposes, causing interest rates to increase
D. Create a “tight money” market
B. Increase the money supply and cause interest rates to decrease
Which group of financial institutions traditionally preferred to make short-term loans for construction?
a. mutual savings banks
b. savings and loan associations
c. life insurance companies using a mortgage banker
d. commercial banks
d. commercial banks
The secondary mortgage market is
a. the market where second mortgages are sold.
b. where loans originated in the primary market are sold.
c. where loans made only by private parties are sold.
d. the market where second mortgages are originated.
b. where loans originated in the primary market are sold.
Disintermediation occurs when
a. deposits exceed the demand for loans.
b. depositors withdraw their savings from depository institutions.
c. the Internal Revenue Service taxes earnings of investments.
d. the Federal Reserve Board reduces the discount rate.
b. depositors withdraw their savings from depository institutions.
A blanket mortgage that allows for the release of a single parcel upon payment of a specified sum contains which clause?
a. defeasance
b. acceleration
c. satisfaction
d. release
d. release
The Federal housing administration Letter a. Originates loans. b. Insures loans. c. Guarantees loans. d. Certifies loans.
b. Insures loans
Is there a max loan amount the FHA can insure?
Yes
Is there a penalty for FHA prepayment?
No
Construction loans are paid out in
a. full at the beginning of construction.
b. equal installments during the construction process.
c. full upon completion of construction.
d. draws after specific stages of construction have been completed.
d. draws after specific stages of construction have been completed.
If a mortgage loan payment consists of interest only, the final payment which includes the full amount borrowed is called a
a. monthly payment.
b. balloon payment.
c. amortized payment.
d. term payment.
b. balloon payment.
Counselors provide professional advice to members of the public based on their _______ judgment.
personal
Real estate licensees can perform an appraisal under the real estate license law, if the appraisal is not to be used in a _______ _______ _______ , the transaction value is _______ _______ _______ and the report is prepared in accordance with _______.
Federally regulated transaction, $250,000 or less, USPAP
Building Moratoriums happen at which level of government?
Local Level
What year was FREC created?
1925
Why was FREC created?
to administer and enforce the law
The most common services of real estate are:
A = Appraising
B = Buying A = Auctioning R = Renting
S = Selling A = Advertising Real Estate Services L = Leasing E = Exchanging B = Business Brokering
What is chapter 475?
The real estate license law
The three types of employment for a sales associate are:
Broker, owner-employer or government agency
Exemptions from having a real estate license are:
Owners, salaried employees(not receiving commissions or bonuses), cemetery lot sales, renting mobile home lots, mortgage brokers
Three ways a license can be void
Expired, Revoked or Cancelled
Where is the data material kept for an appraisal?
In the plant
refers to distance and direction in a legal description
metes
refers to fixed reference points or _________ in a legal description
bounds; monuments
a method of legal description that identifies a property by specifying the shape and boundary dimensions of the parcel; stats at the point of beginning and follows the boundaries of the land by compass direction and linear measurements and returns to the point of beginning.
metes and bounds
a type of land description, developed by the federal government for subdividing lands utilizing surveying lines.
rectangular survey system
north-south, longitudinal line on the survey grid used in a rectangular survey system (or gvmt. survey sys.) - six miles apart
meridian
the single designated meridian for identifying townships in the principal meridian’s geographical “jurisdiction; there are 36 of them in the gvmt survey syst.
principal meridian
east-west latitudinal lines used in a rectangular survey system (or gvmt. survey sys.) - six miles apart
parallels
the designated line for identifying townships. There is one of these types of lines for each principal meridian
base line (base parallel)
run north-south area between consecutive meridians
range lines
run east-west area between two parallel
tier (or a township strip)
the area enclosed by the intersection of two consecutive meridians and two consecutive parallels with an area of 36 square miles.
township
one of the primary units of measurement in the government survey system of land description; it is one mile square and contains 640 acres.
section
a type of legal description of land; under this system, tracts of land are subdivided into lots.
lot and block system
a plan of a tract of land subdivided into lots and showing required or planned amenities. it is recorded in the county where the subdivision is located.
subdivision plat map (plat of survey)
the level plain which is used by the bench mark to determine elevation and from which surveyors measuring begins; standard elevation reference points that have been established throughtout the country.
datums
a permanent brass plate, placed in the ground and it notates the feet above sea level at that location. local elevation markers that provide reference elevations for nearby properties. once these are registered they provide a valid reference point for surveying other elevations in the immediate area.
benchmarks
a word use to indicate a change in direction.
Thence
the starting (and ending) place in a land survey usingthe metes-and-bounds method of property description.
point of beginning (POB)
a square measuring 24 miles on each side and representing the largest unit of measure in the government survey system.
check
Florida’s measurement begins in ________
Tallahassee
the Tallahassee Principal Meridian runs _____ and ______.
North; South
Tallahassee baseline runs _____ and _____.
East; West
A township is then divided into ___ sections.
36
Each township is numbered sequentially _____ or _____ with the numbers getting _______ the further from Tallahassee.
north; south; larger
Sections are numbered from front upper _____ to _____ and across a township in a back and forth movement.
right; left
Each section is ___ mile square and contains _____ acres. Each acre contains _______ square feet.
1; 640; 43,560
the basis for a legal description.
section
To aid in the assessment of property for tax collection, each piece (parcel) of land is given a _____ _______. The tax maps indicating these ______ ______ are based on the recorded plat maps as well as other land recorded in the county.
Parcel Number
Area of a rectangle is
Area = length x width
Area of a triangle is
Area = 1/2base x height
is always expressed in square feet or square yards.
area
is always expressed in cubic feet or cubic yards.
volume
Volume of a rectangle
Volume = length x width x depth
Volume of a triangle
Volume = 1/2 base x height x depth
5,280 feet
1 mile
9 Square feet
1 Square yard
27 cubic feet
1 cubic yard
640 acres
1 square mile
43,560 square feet
1 acre
a transaction involving a cooperating subagent. Commission is typically split on a 50-50 basis.
co-brokerage
an organization of brokers who have agreed to cooperate with member brokers in marketing listings.
multiple listing service
critical brokerage skills:
- o_______ a client listing
- m_______ a listing
- f_________ the closing of a transaction
- m________ market information
obtaining, marketing, facilitating, managing
a fundamental part of maintaining market expertise is o_______ & m_______ an information system.
organizing & managing
Examples of a______ services:
- providing an estimate of value
- prfroming market analysis
- managing property
advisory
business owned by a single individual.
sole proprietorship
a legal entity owned by stockholders.
corporation for profit
a corporation is ________ if it is headquartered in the state where the articles of incorporation were filed. Otherwise, the corporation is a _________ corporation.
domestic; foreign
a corporate entity which is not legally entitled to generate profit. This type of corporation may not broker real estate.
non-profit corporation
a for-profit business consisting of two or more co-owners who have agreed to share business profits.
general partnership
consists of general partners and limited partners.
limited partnership
a partnership formed to complete a specific business endeavor, such as real estate development.
joint venture
a group of investors who invest in a pooled trust fund managed by their elected trustee. this type of trust may not broker real estate, but it may buy and sell its own real estate assets.
business trust
a non-profit, tax-exempt alliance of individuals or compaines formed to promote common goods or services. this type of association may not broker real estate.
cooperative association
a brokerage that is not affiliated with a franchise.
Independent brokerage
an idependently-owned company that enters into a licensing arrangement with a franchisor to participate in various benefits offered in exchange for compensation.
franchised brokerage
the act of mixing the broker’s personal or business funds with escrow funds.
commingling
the act of misappropriating escrow funds for the broker’s business or personal use. considered an act of theft.
conversion
This act was enacted in 1890 and it prohibits resraint of interstate and foreign trady by consiracy, monopolistic pratice, and certai forms of business combinatins or mergers; it empowers the federal government to proceed against antitrus violators.
Sherman Antitrust Act
This act was enacted in 1914, and it reinforces and broadens the provisions of the Sherman Act. Among its prohibitions are certain exclusive contracts, predatory price cutting to eliminate competitors, and inter-related boards of directors and stock holdings between same-industry corporations
Clayton Antitrust Act
the illegal practice of two or more businesses joining forces or makng joint decisions which have the effect of putting another business at a competitive disadvantage.
collusion
the pratice of two or more brokers agreeing to charge certain commission rates or fees for their services, regardless of market conditions or competitors.
price fixing
the practice of colluding to restrict competitive activity in portions of a market in exchange for a reciprocal restriction from a competitor. example “we won’t compete against you here if you won’t compete against us there.”
market allocation
refers to distance and direction in a legal description
metes
refers to fixed reference points or _________ in a legal description
bounds; monuments
a method of legal description that identifies a property by specifying the shape and boundary dimensions of the parcel; stats at the point of beginning and follows the boundaries of the land by compass direction and linear measurements and returns to the point of beginning.
metes and bounds
a type of land description, developed by the federal government for subdividing lands utilizing surveying lines.
rectangular survey system
north-south, longitudinal line on the survey grid used in a rectangular survey system (or gvmt. survey sys.) - six miles apart
meridian
the single designated meridian for identifying townships in the principal meridian’s geographical “jurisdiction; there are 36 of them in the gvmt survey syst.
principal meridian
east-west latitudinal lines used in a rectangular survey system (or gvmt. survey sys.) - six miles apart
parallels
the designated line for identifying townships. There is one of these types of lines for each principal meridian
base line (base parallel)
run north-south area between consecutive meridians
range lines
run east-west area between two parallel
tier (or a township strip)
the area enclosed by the intersection of two consecutive meridians and two consecutive parallels with an area of 36 square miles.
township
one of the primary units of measurement in the government survey system of land description; it is one mile square and contains 640 acres.
section
a type of legal description of land; under this system, tracts of land are subdivided into lots.
lot and block system
a plan of a tract of land subdivided into lots and showing required or planned amenities. it is recorded in the county where the subdivision is located.
subdivision plat map (plat of survey)
the level plain which is used by the bench mark to determine elevation and from which surveyors measuring begins; standard elevation reference points that have been established throughtout the country.
datums
a permanent brass plate, placed in the ground and it notates the feet above sea level at that location. local elevation markers that provide reference elevations for nearby properties. once these are registered they provide a valid reference point for surveying other elevations in the immediate area.
benchmarks
a word use to indicate a change in direction.
Thence
the starting (and ending) place in a land survey usingthe metes-and-bounds method of property description.
point of beginning (POB)
a square measuring 24 miles on each side and representing the largest unit of measure in the government survey system.
check
Florida’s measurement begins in ________
Tallahassee
the Tallahassee Principal Meridian runs _____ and ______.
North; South
Tallahassee baseline runs _____ and _____.
East; West
A township is then divided into ___ sections.
36
Each township is numbered sequentially _____ or _____ with the numbers getting _______ the further from Tallahassee.
north; south; larger
Sections are numbered from front upper _____ to _____ and across a township in a back and forth movement.
right; left
Each section is ___ mile square and contains _____ acres. Each acre contains _______ square feet.
1; 640; 43,560
the basis for a legal description.
section
To aid in the assessment of property for tax collection, each piece (parcel) of land is given a _____ _______. The tax maps indicating these ______ ______ are based on the recorded plat maps as well as other land recorded in the county.
Parcel Number
Area of a rectangle is
Area = length x width
Area of a triangle is
Area = 1/2base x height
is always expressed in square feet or square yards.
area
is always expressed in cubic feet or cubic yards.
volume
Volume of a rectangle
Volume = length x width x depth
Volume of a triangle
Volume = 1/2 base x height x depth
5,280 feet
1 mile
9 Square feet
1 Square yard
Which activity would be classified as a first-degree misdemeanor under Chapter 475, Florida statutes? a. placing false or misleading advertising, b. violation of rental information rules, c. having submitted false information in an application, OR d. an unlicensed person operating as a broker
b. violation of rental information rules
$1000 / 1 year
