Real Estate Quiz 9

Question 1

Which of the following is not debited (charged) to the seller?
Select one:
a. The commission on the sale.
b. The prorated taxes.
c. The interest on the buyer’s new loan.
d. The seller’s loan to be paid off.

Answer 1

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The correct answer is: The interest on the buyer’s new loan.

Question 2

When a broker is acting for his principal in one specific transaction, the agency relationship between the parties is known as a:
Select one:
a. General agency 
b. Sub agency 
c. Special agency 
d. Limited agency

Answer 2

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The correct answer is: Special agency

Question 3

A limited partnership:
Select one:
a. May be created to broker real estate
b. Is created by filing a certificate with the Secretary of State in Florida
c. Must have one or more general partners and one or more limited partners
d. All of the above

Answer 3

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The correct answer is: All of the above

Question 4

All of the following fall under the category of dynamic risk except:
Select one:
a. Capital risk 
b. Insurable risk 
c. Operating business risk 
d. Operating financial risk

Answer 4

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The correct answer is: Insurable risk

Question 5

Broker Bill was found guilty of concealment by the Florida Real Estate Commission. Since this was a first-time offense for Bill, the maximum suspension period will be:
Select one:
a. 1 year 
b. 5 years 
c. 10 years 
d. Indefinitely

Answer 5

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The correct answer is: 10 years

Question 6

Associate Fred was sued for defrauding a buyer in a real estate transaction, and a judgment was entered against him in the amount of $70,000. The judgment included $15,000 of compensatory damage and $55,000 in punitive damage. If the buyer has already collected $10,000 on the judgment, how much can be paid from the recovery fund in this situation?
Select one:
a. $5,000 
b. $15,000 
c. $50,000 
d. $70,000

Answer 6

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The correct answer is: $5,000

Question 7

In a title theory state:
Select one:
a. The lender is a lien holder
b. The mortgage is considered to be a temporary conveyance of title
c. A trustee holds title to the mortgaged property for the benefit of the lender
d. All of the above

Answer 7

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The correct answer is: The mortgage is considered to be a temporary conveyance of title

Question 8

Broker Beth sold a rental list to Frank on September 23rd for $300. Frank discovered the list contained properties that were not available. If Frank demands a refund on October 5th and Broker Beth refuses, which penalty could the FREC impose?
Select one:
a. Revoke license 
b. Up to one year in jail 
c. Up to $10,000 fine 
d. All of the above

Answer 8

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The correct answer is: Revoke license

Question 9

What is the maximum number of members in a Real Estate Investment Trust (REIT)?
Select one:
a. 75 
b. 100 
c. 150 
d. 200

Answer 9

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The correct answer is: 100

Question 10

State intangible tax and documentary tax on the note are typically charged to which of the following?
Select one:
a. Buyer 
b. Seller 
c. Buyer or Seller 
d. Mortgagee

Answer 10

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The correct answer is: Buyer