Real Estate Questions Flashcards
In the formation of contracts, “valuable”, “good”, “sufficient” and “adequate” are terms most closely associated with which of the following?
A. Compensation
B.Bilateral contracts
C.Performance
D.Consideration
Consideration
The difference between the value of a property and the total amount of liens against it is known as …
Equity
Which of the following would be classified as a general lien
Judgment Lien
A purchaser is qualified to obtain an FHA loan for his new home. Which loan would they apply for?
An FHA Lender
Eminent domain and escheat are two examples of …
Involuntary alienation
The amount of a loan expressed as a percentage of the value of the real estate offered as collateral is…
loan to value ratio
How will an escrow deposit be made by the buyer when they’re entering it in the closing statement
Credit to the buyer
Purchase price of the home is what to the seller?
Credit to the seller (because they get the money at the end)
What does FREC stand for
Florida Real Estate Comission
How many members are in the FREC
7
Who is the FREC appointed by?
The governor
Who consists of the members in the FREC
- 5 with real estate professionals Licenses (active)
- 4 Real estate brokers must have held an active real estate license during the 5 years proceeding appointment- 1 broker associate or sale associate (must have held an active real estate license during the 2 years proceeding appointment
- 2 consumer or lay (unlicensed)
*1 member must be 60 years or older
Do FREC members get paid?
$50 dollars per day while they’re on official business
A sale associate ended employment with a broker and started employment with another brokerage firm. Prior to returning the key, the sale associate entered the office and made unauthorized copies of listings and documents. What are the possible charges the sale associate could face?
Theft
What clause (covenant) promises that the grantor owns the property and has the right to convey it to the grantee?
Seisin
Regarding a principle residence what is deductible for income tax purposes?
Property taxes and mortgage interest
Which of these liens would take priority and paid first?
a. property tax lien filed March 22, 2021
b. A vendor’s lien filed January 01, 2021
c. A mechanic’s lien filed January 06, 2020
d. A special assessment tax lien filed March 01, 2022
A. Property tax lien filed March 22, 2021
What are the two liens that are important in order
Property tax lien, special assessment lian
What type of lien is income tax
junior lien
Which of the liens would take priority and paid first?
a. Income tax (IRS) lien filed March 22, 2021
b. A vendor’s lien filed January 01, 2021
c. A mechanic’s lien filed January 06, 2020
d. A special assessment tax lien filed March 01, 2022
d. a special assessment tax lien filed March 01, 2022
Which direction is N 90 E, and which direction are you headed?
Heading East
What mortgage clause authorizes the mortgagee (lender) to demand the outstanding loan balance if the borrower sells or transfers any interest in the property?
Due-on-sale clause
Acceleration clause
This is used on a loan when a foreclosure is getting ready to happen
What is the required experience to become a real estate broker in Florida?
24 months of experience in the preceding 5 years
Can a mobile home be considered real property in Florida (what florida statute states this)
Yes, only if the owner owns the land where its affixed (Section 320.015)
What kind of ownership do an unit-owners have in a condo, in regards of the common areas?
Tenancy in common
An insurance policy which combines personal liability insurance and hazard insurance coverage for a dwelling and its contents is called
homeowner’s insurance
What is the status of a contract when all the terms have been fulfilled and the transaction has been closed?
Fully Executed
Surface rights, Air rights, and Subsurface rights are all rights that can be sold by a property owner while still retaining the property itself: These rights are known as…
Severable rights
When an easement allows the use of a neighboring property which automatically transfers upon the sale of either dominant or servient property, it is called what type of easement
Easement Appurtunent
Linda purchased a fee simple interest for the private use of residential property for one week every single year. What did linda purchase?
a. Shares in a cooperative building
b. a condominium
c. common elements
d. resort timeshare
d. resort timeshares
What is the highest form of land ownership which includes the full and complete bundle of property rights?
Fee simple absolute
In order for a contract to convey ownership in a property transaction the contract must include:
A legal description
A property management contract should include all of the following EXCEPT:
a. signatures of the property owner and licensee
b. duration of the agreement
c.signature of the tenant
d. management fee
c. signature of the tenant
Sally wants to transfer the title of her property to her granddaughter. Which of the follow are ways to voluntarily transfer title to a property
a. Sales contract, will, seisin
b. Will, grant, deed
c. Title certificate, Escheat, Deed
d. Escheat, will, grant
b. will, grant, deed
When someone passes away with a valid will in place it is referred to as
a. testate
b. intestate
c. escheat
d. appurtenant
Testate
What are the 3 methods surveyors use to create legal descriptions?
- Metes and bounds
- Government survey
- Lot and block
Which method of describing property has a POB (point of beginning)
Metes and bound (most accurate)
How many acres are in a section
640
How many sections are in a township
36
How many sq ft are in a acre
43,560
Is the Governors signature on a Florida Real Estate sales associate license?
No, only the governors printed name is on the Real estate license
An unlicensed personal assistant may assist an an open house and can do the following?
a. Prepare and let the buyer sign the offer
b. Answer questions based on their personal opinion
c. Hand out materials
d. discuss sellers motivation with buyer
c. Hand out materials
The no brokerage relationship notice must be disclosed when?
Must be in writing before the showing of any property
What disclosure summary concerning ad valorem taxes must be presented to a prospective home buyer in Florida?
Property tax disclosure
What is an abstract of title?
Condensed history of the title
In a platted subdivision, the legal description most often used?
Lot and block
An option contract is a …
Unilateral contract
What is the status of a sales associate’s license if the required post-licensing education is not completed prior to the first renewal cycle period, normally within the 2 years
Null and void
What are the rights associated with land abutting tidal bodies of water such as an ocean or sea?
Littoral rights
When a sales associate works with both parties in a transaction he/she is in which type of relationship?
Transaction broker relationship
What is the default relationship in Florida?
Transaction broker relationship
Which clause in a deed states the grantor owns the property and has the legal right to convey it?
Seisin
What does USPAP stand for?
Uniform Standards of Professional Appraisal Practice
An unlicensed personal assistant may assist an an open house and can do the following?
a. conduct listing presentations for sellers
b. negotiate in the transaction
c. showings of property
d. deposit earnest money in the escrow account
d. deposit earnest money in the escrow account
What is the FREC not authorized to do?
a. determine if violations chapter 475 exist
b. adopt new rules
c. revoke and suspend a license
d. sentence licensee to prison
d. sentence licensee to prison
A transaction broker does not have what duty?
Obedience
What duty does a single agent specifically have
obedience, loyalty, full confidentiality
In the real estate business, what is the first time penalty for a first-time violation
Notice of non-compliance
What is blockbusting in real estate
the illegal practice of convincing homeowners that their neighborhood is undergoing a significant change in demographics—typically portrayed as negative—so that they will sell or rent their homes at lower-than-market-value prices
What is redlining in real estate?
practice of denying a creditworthy applicant a loan for housing in a certain neighborhood even though the applicant may otherwise be eligible for the loan
An unlicensed associate may not do which of the following?
a. sign a listing contract
b. compute a commission check
c. prepare advertising for broker approval
d. deposit trust monies
a. sign a listing contract
Which of the following of a tenancy in common is true?
a. the co-owners must be related
b. the owners enjoy an indivisible interest
c. the tenants must acquire their interest at the same time
d. The tenants must pay equal amounts for their interest in the estate
b. the owners enjoy an indivisible or undivided interest in the property
Is Florida a lien theory or title theory state?
Lien theory
What defines actual notice?
Information learned by seeing or hearing or reading
What are real estate agents not authorized to prepare?
Deeds, mortgages, or most other legal documents
What are the 4 essential elements of a contract?
- contractual capacity of the parties
- offer and acceptance
- legality of the object
- consideration
What contracts do the statute of frauds apply to?
Purchase-and-sale contracts, option contracts, and lease agreements and listing agreements
Statute of limitations state what?
- written contracts are enforceable for 5 years
2.Oral (parol & verbal) contracts are enforceable for 4 years
Difference between offeror and offeree
offeror makes the offer and offeree receives the offer
What are 4 legal for breach of contract
- Specific performance
2, liquidated damages - rescission
- compensatory damages
In a deed that states “to Jonathan for bis life” what type of interest does the grantor have?
reversionary interest
Which of the following is NOT a type of freehold estate
a. fee simple absolute
b. life estate
c. leasehold estate
d. qualified fee estate
What can you not do in a Fee simple ownership?
Right to transfer ownership after death
What is true regarding a life estate
The life tenant is responsible for paying property taxes and maintenance
What term is used to describe the degree, quantity, or nature of a person’s interest in real property
Interest in land
The return of land to the grantor or grantors heir when the grant is over is best described as
Reversion
WHat is the term for the removal of land when a stream suddenly changes its channel?
Avulsion
A contract not in writing is called
Parole contract
What is easement
One’s right to use another persons property (usually granted in exchange for payment)
What is it meant by the term brokers opinion?
The process of establishing the potential selling price of a piece of real property
What is the value of a property?
A monetary relationship that exist between the buyer, the seller and anybody who uses the property
