real estate exam questions Flashcards
Which may be deducted for income tax purposes by a homeowner?
a. property taxes, insurance and interest
b. insurance, depreciation and taxes
c. depreciation, taxes and interest
d. taxes and interest
d. taxes and interest
Which is most closely related to the comparable sales approach?
a. reproduction cost
b. present value of the income stream
c. principle of substitution
d. level annuity capitalization rate
c. principle of substitution
Freddie Mac is …
a. primary mortgage market
b. secondary mortgage market
b. secondary mortgage market
What is not a way to determine something as a fixture
a. intent
b. size
c. method
d. adaptation
b. size
To mix your personal funds with escrow funds would be …
a. illegal
b. mediation
c. commingling
d. conversion
c. commingling
When is a deed considered to be transferred?
a. when the deed is signed and delivered by the grantor
b. anytime after the acceptance of the offer
c. anytime after closing
d. when is only delivered by a grantor
a. when the deed is signed and delivered by the grantor
Which mortgage is classified by a balloon payment at the end?
a. amortized
b. blanket mortgage
c. partially amortized
d. package mortgage
c. partially amortized
Which clause promises the grantor owns the property and has the right to convey title?
a. habendum
b. premises
c. seizen
d. covenant
c. seizen
How is property tax proration entered?
a. debit buyer and credit seller
b. debit seller
c. credit buyer
d. debit seller and credit buyer
d. debit seller and credit buyer
What is the maximum time for which your license may be suspended?
a. 10 years
b. less than 10 years
c. 7 years
d. revocation
a. 10 years
Which contract is not covered under the statute of frauds?
a. mortgage
b. 18-month listing agreement
c. option contract
d. 6 month- lease agreement
d. 6 month- lease agreement
A sales associate license will be ____ if he or she does not complete the required post-license education during the initial license period.
a. involuntarily inactive
b. void
c. voluntarily inactive
b. void
Post-license educational course for sales associates consists of ____ hours
a. 72
b. 35
c. 45
d. 30
c. 45
How long do you have to complete post-license education?
a. 24 months
b. during initial sales associate’s license period
c.12 months
d. before continuing education
b. during initial sales associate’s license period
What is the purpose of real estate license law?
a. to protect the public
b. to protect licensees
c. clarify the law
d. grant licenses
a. to protect the public
An sales associate failed to complete the required post-license education prior to renewal. What is the status of the license?
a. revoked
b. suspended
c. involuntarily inactive
d. void
d. void
How many hours of post-license education are required to renew a broker license?
a. 14
b. 30
c. 45
d. 60
d. 60
All of the following are services of real estate requiring a license, Except:
a. showing
b. selling
c. counseling
d. building
d. building
What is homestead used for?
a. satisfy a debt
b. make taxes easier
c.
a. satisfy a debt
Unwritten law is also called:
a. administrative law
b. promulgated law
c. common law
d. statutory law
c. common law
All are included in the bundle of rights EXCEPT:
a. possession
b. disposition
c. exclusion
d. subordination
d. subordination
Four unities required to create a joint tenancy …
a. principle, interest, time, and title
b. possession, interest, time, and title
c. possession, interest, title, tenancy
d. principle, interest, time, and title
b. possession, interest, time, and title
Duties owed by a transaction broker include:
a. confidentially
b. fiduciary
c. loyalty
d. accounting for all funds
d. accounting for all funds
The only active general partner in a real estate partnership did not account properly for his escrowed funds. His license was suspended. All of the licenses of the sales associates in that partnership are:
a. canceled
b. suspended
c. placed in involuntarily inactive status
d. not affected
c. placed in involuntarily inactive status
How many days does a buyer of a resale condominium have to cancel the agreement?
a. 3
b.7
c. 10
d. 15
a. 3
What could cause a fixture to be converted into personal property?
a. attachment
b. severalty
c. severance
d. accretion
c. severance
How would a father & son own property together with the right of survivorship?
a. tenancy by entireties
b. tenancy at will
c. joint tenancy
d. tenancy in common
c. joint tenancy
Which deed would be considered a special-purpose deed?
a. warranty deed
b. quitclaim deed
c. deed of trust
d. guardians’s deed
d. guardians’s deed
Do you adjust the comparable or subject property in an appraisal?
comparable
A home has a poor interior traffic pattern. What type of adjustment might be applied when valuing the property?
a. physical deterioration
b. external obsolescence
c. locational obsolescence
d. functional obsolescence
d. functional obsolescence
If the comparable property were better than the subject property in size, what adjustment would be appropriate?
a. add to the comparable property
b. add to the subject property
c. subtract from the comparable property
d. subtract from the subject property
c. subtract from the comparable property
With the income approach to value, if the capitalization rate is decreased and the income remains constant what is the effect of the value?
a. value increases
b. value remains constant
c. value decreases
d. value may increase or decrease
a. value increases
If the federal reserve should decide to buy government securities, the money supply would ____, and interest rates would _____
money supply would increase interest rates would decrease
On a closing statement would a purchase money second mortgage obtained from the seller be entered?
a. credit to seller, debit to buyer
b. credit to buyer, debit to seller
c. debit to seller, receipt for broker
d. credit to seller, disbursement by broker
b. credit to buyer, debit to seller
With which type of mortgage could negative amortization occur due to payment caps?
a. purchase money mortgages
b. adjustable-rate mortgages
c. blanket mortgages
d. reverse mortgages
b. adjustable-rate mortgages
When does disintermediation occur?
a. When deposits exceed withdrawals
b. when withdrawals exceed loans
c. when loans exceeds deposits
d. when withdrawals exceed deposits
d. when withdrawals exceed deposits
How is the interest rate determined on an FHA insured mortgage loan?
a. by the market
b. by the federal reserve
c. by the secretary of the department of housing and urban development
d. by congress
a. by the market
WHich type of mortgage typically requires a higher down payment and interest rate than other common loan types?
a. FHA
b. VA
c. Conventional mortgage
d Home Equity line of credit
c. Conventional mortgage
A brokers legal duty to the principal includes all of the following EXCEPT:
a. obeying all instructions
b. acting in good faith
c. obtaining the best price
d. disclosing all material facts
a. obeying all instructions
What type of advertising would a broker most likely use to sell a duplex?
a. national
b. specific
c. institutional
d. general
b. specific
Which business structure holds title to land its own name?
a. partnership
b. corporation sole
c. syndicate
d. corporation for profit
a. partnership
The buyer and seller agree in contract yo postdate the deposit check. Which statement is correct?
a. the sales associate should hold it until it clears
b. the sales associate should immediately give the check to his or her broker
c. the sales associate should refuse the check
d. the deposit check should be put in escrow immediatley
b. the sales associate should immediately give the check to his or her broker
Which type of business relationship must be in writing?
a. corporations
b. partnerships
c. corporations and limited partnerships
d. joint venture
A real estate broker asks his sales associate to commit an illegal act. What should the sales associate do?
a. Comply, as the sales associate may lose his or her job
b. Refuse to comply and withdraw from the relationship
c. notify the florida real estate commission
d. comply, but inform the employer that he or she is complying under duress
b. Refuse to comply and withdraw from the relationship
In a partnership, each party does not necessarily have which of the following?
a. power to bind his or her activity
b. a share in the management of the business
c. liability for the debts of the partnership
d. equal shares of the profits of the partnership
d. equal shares of the profits of the partnership
When a buyer withdraws an offer prior to it being accepted by the seller, what should the broker do?
a. give the deposit back to the buyer
b. keep 1/4 of deposit and return 3/4 of deposit
c. keep 1/2 of deposit and return 1/2
d. Contact FREC for instructions
a. give the deposit back to the buyer
Which action by a broker is an example of commingling
a. placing escrow money into his or her personal account
b. failing to disclose material facts
c. failing to give an agency disclosure
d. steering buyers to an ethnic neighborhood
a. placing escrow money into his or her personal account
Loaners that refuse to make loans in certain geographical areas based on social or economic considerations are practing …
a. blockbusting
b. steering
c. redlining
d. disposition
c. redlining
A violation of the Florida telephone solicitation act could result in a fine up to ___
a. 1,000
b. 10,000
c. 500
d. 5,000
b. 10,000
What is the landlords first step in the eviction process?
a. Contact sheriff
b. go to court
c. give 3 day notice
d. give 10 day notice
c. give 3 day notice
A convenience store is located in an area that has now been zoned for residential use only would be:
a. made to move
b. a nonconforming use
c. a variance
d. special use exception
b. a nonconforming use
What would most likely be required to build a church in a residential neighborhood
a. special use exception
b. variance
c. approval of a regional planning council
d. an appropriate buffer zone
a. special use exception
In case of a financial hardship due to zoning requirement, for what should the homeowner apply?
a. nonconforming use
b. special use exception
c. easement
d. variance
d. variance
What do 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, etc.
a. type of use
The real estate market is ___ to respond to changes in supply or demand
a. slow
b. fast
c. constant
d. no effect
a. slow
Whos market is it when there is an excess of demand over supply
a. buyer’s
b. sellers
b. sellers
What is the real estate market experiencing when the demand for available housing exceeds current supply?
a. buyers market
b. sellers marker
c. recessionary cycle
d. hypothecation
b. sellers marker
What type of commercial marker would exist if there were an excess number of houses for rent
a. sellers market
b. buyers market
c. suppliers market
d. all of the above
b. buyers market
Which of the following is a characteristic of the real estate market?
a. heterogeneous
b. reacts very quickly
c. mobile
d. homogeneous
a. heterogeneous
All of the following are physical characteristics of real estate, EXCEPT
a. Immobility
b. situs
c. homogeneous
d. heterogeneous
c. homogeneous
In which markert would there be a shortage of housing
a. buyers market
b. housing market
c. sellers market
d. deficit market
c. sellers market
What is opposite of N20 degrees W
a.N20E
b. S20E
c. S20W
d. E20N
b. S20E
What is the distance between meridians?
a. 5 miles
b. 6 miles
c. 10 miles
d. 18 miles
b. 6 miles
Who should prepare a legal description
a. land surveyor
b. attorney
c. broker
d. title company
a. land surveyor
The penalty for a first-degree misdemeanor is …
a. 1,000 fine
b. imprisoment for no more than 1 year
c. notice of noncompliance
d. both a and b
d. both a and b
A licensee is being disciplined by the FREC for multiple violations of F.S 475 which penalty may the commission not impose
a. revocation
b. suspention for up to 10 years
c. a find not to exceed 5000 per offense
d. imprisoment not to exceed one year
d. imprisoment not to exceed one year
When must the prospective buyer get the property tax info?
a. 15 days before closing
b. before an offer
c. once offer is acccepted
d. at closing
b. before an offer
WHich trait is NOT of of the traits goods and services must possess to have value
a. transferability
b. conformity
c. utility
d. scarcity
b. conformity
How is the earnest money deposit entered on the closing disclosure
a. credit to buyer only
b. debit to the seller and credit to buyer
c. debit to buyer only
d. credit to seller and debit to buyer
a. credit to buyer only
Difference between assets and liabilities of an investment is
a. net operating income
b. cash flow
c. positive leverage
d. net worth
d. net worth
