Real Estate Quiz 10

Question 1

The net income of a rental property is $15,000, and the overall cap rate is 12%. What is the value of the property?
Select one:
a. $100,000 
b. $112,000 
c. $117,500 
d. $125,000

Answer 1

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The correct answer is: $125,000

Question 2

What is the required housing expense ratio for a conventional loan?
Select one:
a. 43% 
b. 36% 
c. 31% 
d. 28% 
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The correct answer is: 28%

Answer 2

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The correct answer is: 28%

Question 3

A “loan constant” is comprised of a (an):
Select one:
a. Sinking fund factor and an interest rate
b. Interest rate and discount factor
c. Residual factor and sinking fund rate
d. Principal factor and an interest rate

Answer 3

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The correct answer is: Sinking fund factor and an interest rate

Question 4

Jack purchases a commercial property with bank financing from Shifty Savings and Loan. In the process, Phase I was not required by the bank. Later it was discovered that the property was contaminated by an owner prior to Jack. Which of the following best describes the situation?
Select one:
a. Jack is liable since he did not perform due diligence prior to purchase. The prior owner is also liable.
b. Jack is not liable since the bank did not require a Phase I assessment
c. Only the bank is liable since it did not require the Phase I assessment
d. Both Jack and the Bank are liable

Answer 4

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The correct answer is: Jack is liable since he did not perform due diligence prior to purchase. The prior owner is also liable.

Question 5

In the complaint process, after the Recommended Order how many days does the Respondent/Licensee have to respond?
Select one:
a. 10 days 
b. 14 days 
c. 15 business days 
d. 20 days

Answer 5

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The correct answer is: 20 days

Question 6

How does a deposit show up on a closing statement?
Select one:
a. Credit to buyer and debit to seller
b. Credit to seller and debit to buyer
c. Credit to buyer and receipt on broker’s statement
d. Debit to buyer and a disbursement on the broker’s statement

Answer 6

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The correct answer is: Credit to buyer and receipt on broker’s statement

Question 7

Broker Sally has decided to move a branch office from Jupiter to Palm Beach Gardens. Given this information, which of the following would best describe the situation?
Select one:
a. Sally must notify the Division of Real Estate within 10 days of her move and request a cancellation of the Jupiter office
b. Sally must notify the Division of Real Estate within 60 days of her move and request a new registration for the Palm Beach Gardens office
c. Sally must notify the Division of Real Estate within 10 days of her move
d. Sally is required to obtain a new registration for the new branch office prior to beginning operations.

Answer 7

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The correct answer is: Sally is required to obtain a new registration for the new branch office prior to beginning operations.

Question 8

The gross income multiplier (GIM) may be used to estimate the value of:
Select one:
a. All income-producing properties
b. Small commercial properties that are subject to an annual rental amount
c. Single-family homes and small apartment complexes only
d. Vacant land and building sites

Answer 8

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The correct answer is: Small commercial properties that are subject to an annual rental amount

Question 9

Which of the following is not considered to be a second-degree misdemeanor?
Select one:
a. Violation of rental assistance rules 
b. Concealment 
c. Breach of trust 
d. Commingling funds

Answer 9

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The correct answer is: Violation of rental assistance rules

Question 10

Broker Doug and Sales Associate Sandy formed a general partnership to broker real estate in which Doug was the active broker and Sandy was the office manager in charge of bookkeeping and sales training. Which statement best describes this situation?
Select one:
a. Sandy can oversee sales training and bookkeeping in this partnership as long as Doug is the broker.
b. Sandy may only handle bookkeeping unless she obtains a broker license.
c. This is legal, but Doug cannot pay Sandy for handling the sales meeting.
d. Doug and Sandy cannot operate a real estate brokerage general partnership.

Answer 10

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The correct answer is: Doug and Sandy cannot operate a real estate brokerage general partnership.