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Florida Real Estate > Test > Flashcards

Test Flashcards

1
Q

What does Mutual Assent Mean?

A

Offer and Acceptance

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2
Q

What Does Attorney in fact mean?

A

Power of Attorney

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3
Q

What does Specific Performance Mean?

A

Either the buyer or Seller is required to go through with the contract but not both.

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4
Q

What can terminate an offer?

A 
Withdrawl
Insanity
Lapse of Time
Destruction of Property
Counteroffer
Acceptance
Rejection
Death
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5
Q

What does Hypothecation Mean?

A

Pledging Property as security of debt

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6
Q

What document states debt owed, interest rate, and date interest be paid?

A

Estoppel Certificate

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7
Q

How long does the mortgage company have to issue satisfaction?

A

60 days

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8
Q

What document contains interest rate, loan amount, maturity date, and the payment schedule?

A

Note

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9
Q

What is the defeasance Clause?

A

The loan company must remove the mortgage lien after it’s paid off.

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10
Q

What does “Subject to the mortgage” mean?

A

Means the seller is responsible for the mortgage

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11
Q

If the buy assumes the mortgage who is ultimately responsible for it?

A

Both the buyer and the seller

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12
Q

What does equitable title mean?

A

You have interest (equity) in the title

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13
Q

What does time is of the essence mean?

A

Every Clause in the contract has a specific end date

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14
Q

A construction lien is what type of lien?

A

Involuntary - think of defaulting on installing a pool

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15
Q

The legal bundle of rights consists of?

A 
Disposition
Enjoyment
Exclusion
Possession
Control
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16
Q

A contract can be terminated how?

A

Performance, Mutual Rescission, Impossibility of performance, Lapse of Time, Bankruptcy, Breach

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17
Q

What section of the deed has the names in it?

A

Premises Clause

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18
Q

What does Parol Mean?

A

Oral

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19
Q

What listing type permits the seller to sell their own property but only your broker can sell it?

A

Exclusive Agency

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20
Q

How many days do you have to cancel a contract after signing due to an HOA agreement?

A

3

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21
Q

What is a unilateral Contract?

A

Only one party has to perform

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22
Q

What is a Committee’s Deed considered?

A

A special purpose deed

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23
Q

Who is the mortagee?

A

lender

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24
Q

Who is the mortgagor?

A

the buyer

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25
Q

What do FHA loans require?

A

Insurance Premiums

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26
Q

What is the discount rate?

A

Interest rate charged to member banks borrowing from the federal reserve

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27
Q

What does the federal reserve do on the open market?

A

Buy and Sell US treasury securities

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28
Q

Who is the Federal National Mortgage Association?

A

Fannie Mae

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29
Q

What are home equity loans exempt from?

A

TILA-RESPA integrated rule

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30
Q

Which loans are exempt from the due on sale clause?

A

FHA & VA loans

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31
Q

What is the index used for?

A

It’s an economic indicator that will increase or decrease adjustable rate loans

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32
Q

What is implemented by Regulation Z?

A

The truth in lending act

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33
Q

Which are non-conventional loans?

A

FHA & VA Loans

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34
Q

Who is the Federal Home Loan Mortgage Corp?

A

Freddie MAC - Purchase loans made through Savings Associations

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35
Q

What is a fractional piece of land along lakes and streams called?

A

Government Lot

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36
Q

How many feet are in an Acre?

A

43560

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37
Q

How many Acres are in a section?

A

640

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38
Q

How many sections are in a township?

A

36

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39
Q

Describe easement

A

Private restrictions on real property

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40
Q

What is equitable title?

A

Person that receives title at a future date

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41
Q

How long does a licensee have to correct a notice of non-compliance?

A

15 days

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42
Q

How long do you have to cancel a time share contract?

A

10 days

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43
Q

What is an abstract of title?

A

The search of the title in public records

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44
Q

What type of notice occurs when recording something in public record?

A

Constructive notice

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45
Q

How long do you have to cancel a condo contract from a developer?

A

15 days

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46
Q

How long does the licensee have to notify the DBPR of a guilty plea?

A

30 days

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47
Q

What does the administrative law judge issue at the conclusion of a formal hearing?

A

A recommended order

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48
Q

What type of share ownership allows the owner to rent or sell their timeshare interest?

A

interval ownership

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49
Q

How many days notice are required to terminate a month to month tenancy?

A

15 days

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50
Q

What is the estate called after a life estate is complete?

A

Estate in reversion

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51
Q

Who gets the property for tenancy in common?

A

heirs

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52
Q

What type of ownership reverts to the other owners?

A

Joint Tenancy

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53
Q

Legal test to determine if it’s a fixture?

A

Intent of the parties
Relationship between the parties
Method of attachment
Adaptation

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54
Q

Real property that is converted into personal property is called what?

A

Severance

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55
Q

Which law prohibits discrimination in public accommodations?

A

Civil rights act of 1964

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56
Q

What does Chattel Mean?

A

Personal property (removable)

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57
Q

4 unities of Joint Tenancy are

A

Possession, interest, title and time

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58
Q

What does Acknowledgement mean?

A

It’s been notarized

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59
Q

The process of building a home without first securing a buyer is called what?

A

speculative building

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60
Q

A lease with no end date is called what?

A

Tenancy at will

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61
Q

What is condemnation?

A

The legal procedure used in an eminent domain action to determine a fair price

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62
Q

What title insurance policy is issued for the loan amount and is transferable?

A

Lenders (mortgagee) policy

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63
Q

When would a 28 hour reactivation course be needed?

A

If the licensee leaves their license involuntary for 12 or more months they must take this to renew.

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64
Q

What is right of survivorship?

A

Property goes to the other owners.

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65
Q

What information should be included in an advertisement?

A

Full Name, Broker, Phone Number and type of number.

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66
Q

What is required from a fiduciary relationship?

A

The broker must act in complete trust with the principal (client)

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67
Q

What does DBPR mean?

A

Department of Business and professional relations

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68
Q

Where can an escrow acct be established?

A

A credit union
A Florida Attorney’s trust account
A Florida based title company
A savings association

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69
Q

Does the DBPR need notified if you enter a guilty plea outside of Florida?

A

yes within 30 days

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70
Q

Would a hearing be part of the process for a notice of noncompliance?

A

Not generally for minor first time violations

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71
Q

If the land lord does NOT intend to impose a claim on the security deposit how long do they have to return it?

A

15 days

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72
Q

What are the protected clauses under the fair housing act of 1968?

A 
Familial status
Race
Sex
Handicap
Color
Religion
National origion
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73
Q

What type of discrimination is prohibited in all real estate transactions?

A

race

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74
Q

What is accretion?

A

The process of land buildup from water-born rock and soil

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75
Q

What is a remainderman?

A

The person that receives property after a life estate is complete.

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76
Q

What is a declaration? (Condo documents)

A

This the document that creates a condo

77
Q

What is a prospectus?

A

A document that the developer of 20 or more residential condo unites must give to prospective purchasers

78
Q

This type of building involves building model homes to sell homes.

A

Tract construction

79
Q

A specific geographic area that you seek to market yourself as an expert

A

A farm area.

80
Q

What must a licensee take into account when preparing a CMA

A

The sale price of recent similar properties and expired listings

81
Q

Can a rental agent be legally paid a fee?

A

yes

82
Q

Does Bankruptcy have to be disclosed on a license application?

A

No

83
Q

If you have power of attorney do you also need a real estate license to execute a contract?

A

No

84
Q

Which process allows active duty military who hold an active license in another state a florida license?

A

Reciprocity

85
Q

What does “nolo contendere” mean?

A

No contest

86
Q

Who appoints the DBPR secretary?

A

The governor with senate confirmation

87
Q

How long do you have to notify the FREC of an address change?

A

60 days in writing

88
Q

What does FREC mean?

A

Florida Real Estate Commission

89
Q

What authority does executive power give FREC?

A

Authority to regulate and enforce real estate law

90
Q

How long does a licensee have to renew their license if on active duty?

A

24 months after discharge but not at all while on active duty

91
Q

When would a designated sales associate need to be assigned?

A

Where there is a buyer and seller that both have assets over $1m

92
Q

A sales associate has how long to turn over an earnest check to their broker?

A

1 Business day

93
Q

A broker has how long to deposit an earnest check after a sales associate receives it?

A

3 Business days

94
Q

What is a Corporation Sole?

A

Church - They can’t register as a broker

95
Q

Who needs to hold an active brokers license in a limited partnership?

A

All general partners that perform real estate services

96
Q

What must a sales associate do to form a limited liability company for tax purposes?

A

Register under their name with the abbreviate LLC

97
Q

When is a formal hearing necessary?

A

If the respondent disputes allegations outlined in a complaint

98
Q

What is block busting?

A

Using the entry or rumor of entry of a protected class to get people to sell.

99
Q

What is done with security deposits if a rental is sold?

A

They are given to the new owner

100
Q

Homestead property is limited to?

A

1/2 an acre in city limits and 160 acres in the country

101
Q

How much of their own money can a broker keep in a sales escrow account?

A

$1000

102
Q

Who administers Florida’s telemarketing law?

A

The dept of agriculture and consumer services

103
Q

What is the most common co-ownership state?

A

Tenancy in common

104
Q

What legal trouble can you get into for false advertising?

A

2nd degree misdemeanor

105
Q

How much of their own money can a broker keep in a property management account?

A

$5000

106
Q

If an escrow disbursement order is no longer needed how long do you have to notify FREC?

A

10 business days

107
Q

If a broker believes they have rights to part of the escrow money what litigation method to they request?

A

A declaratory order

108
Q

How much of their own money can a broker keep in a combined sales and property management account?

A

$5000

109
Q

Which act prohibits discrimination based on race?

A

Civil rights act of 1866

110
Q

If a citation is issued in error you have long how to object?

A

30 days

111
Q

How long does a landlord have to return deposit if they aren’t disputing?

A

15 days

112
Q

What is the legal trouble for selling outdated inaccurate rental info?

A

1st degree misdemeanor

113
Q

What is the fine by the DBPR for unlicensed practice of real estate?

A

Up to $5000

114
Q

How long does a broker have to notify FREC of conflicting demands?

A

15 business days

115
Q

What permits FREC to create administrative rules

A

quasi-legislative powers

116
Q

What is the penalty for a 3rd degree felony?

A

Up to 5 years in prison and a $5000 fine

117
Q

Who prepares a recommended order after a hearing of an admin complaint?

A

Administrative law judge

118
Q

Which duties are part of a transaction broker relationship?

A 
Account for all funds
Deal honestly and fairly
Disclose material facts
Present all offers and counter offers
Use skill, care, and diligence
Maintain limited confidentiality
Additional agreed upon duties
119
Q

What type of timeshare ownership allows for usage rights to return to the developer/seller?

A

Right to use

120
Q

Which penalties does FREC have the right to enforce?

A

Probationary period, suspension of up to 10 years, and continuing education course

121
Q

What type of lien is a vendor’s lien?

A

A specific lien

122
Q

What type of ownership allows for different ownership percentages?

A

Tenancy in Common

123
Q

Who is the mortgagee?

A

The Lendor

124
Q

Who is the mortgagor?

A

The buyer

125
Q

Which insurance policy is for the unpaid mortgage?

A

The Buyer’s policy (Mortgagor)

126
Q

explain intestate vs testate

A

Dies with No Will vs Has a Will

127
Q

Which clause starts with “to have an to hold”

A

Habendum clause

128
Q

Which lien always has top piority?

A

Estate Taxes

129
Q

Which deed is best for the seller?

A

Quitclaim deed

130
Q

Which deed is best for the buyer?

A

General warranty deed

131
Q

S½ of the SE¼ of the NW¼ and the NE¼ of the SW¼ of the S½ of section 19 contains how many acres?

A

40 Acres

132
Q

Which section is directly west of the Tallahassee Principal Meridian, in a government survey system?

A

Range 1 West

133
Q

What is the opposite of North 45 degrees West?

A

South 45 degrees East

134
Q

What is a government lot?

A

A fractional piece of land less than a full quarter

section located along the banks of a lake.

135
Q

Which legal description uses plat maps?

A

Lot and block method.

136
Q

What are the essential elements of a valid contract?

A

COLIC

Competent parties
Offer and acceptance
Legal purpose
In writing and signed
Consideration
137
Q

What is an executory contract?

A

A contract that has not been fully executed by both

parties.

138
Q

What is needed to authorize you to act on another

persons behalf?

A

Power of Attorney

139
Q

What are the remedies for a breach of contract?

A

specific performance
Liquidated damages
Rescission
Compensatory damages

140
Q

What contracts are covered under the Statute of

Frauds?

A 
Purchase and sale
Option contracts
Deeds and mortgage instruments
Lease agreements longer than 1 year
Listing agreements longer than 1 year
141
Q

What is an open listing?

A

A listing that allows the seller to list property with multiple brokers.

142
Q

Which type of contract has a statute of limitations of five years?

A

Written contracts

143
Q

What is an acceleration clause?

A

A clause in a mortgage that allows the mortgagee to
advance the due date of the unpaid balance if the
borrower defaults on the loan

144
Q

What is a subordination agreement?

A

A mortgage provision that allows another mortgage

created at a later date to take priority.

145
Q

What is a contract for deed?

A

A contract that allows legal title to remain with seller

while the buyer has equitable title in the property.

146
Q

What is the formula to calculate a loan to value ratio?

A

Loan Amount ÷ Price

147
Q

Which clause can a VA loan NOT have?

A

Due on Sale Clause

148
Q

What is Ginnie Mae?

A

The government entity that guarantees mortgage back securities with full faith and credit of the U.S. government

149
Q

What part of the calculated interest rate of an
adjustable rate mortgage is the lender’s estimated
overhead plus profit known as?

A

Spread

150
Q

What is the purpose of the reserve requirement?

A

To control the money supply for the Federal Reserve by increasing the amount of funds banks must set aside

151
Q

What is bait and switch advertising?

A

Any advertisement that contains triggering terms (credit terms)

152
Q

What is a straw buyer?

A

Someone whose credit is used to purchase a property
and secure financing but who isn’t actually going to
own the property. A type of mortgage fraud

153
Q

On a closing disclosure, the earnest money/binder

deposit would show as

A

Credit to the Buyer Only

154
Q

How is the interest on an assumed mortgage entered on the closing statement?

A

Debit to seller, credit to buyer

155
Q

What variables influence supply of real estate?

A

Availability of skilled labor
Availability of construction
Availability of land
Availability of materials

156
Q

What is liquidation?

A

A type of value associated with rapid sale.

157
Q

What is the formula for the Gross Rent Multiplier (GRM)?

A

Sale Price ÷ Gross monthly rent

158
Q

What is effective aged used to calculate in the cost

approach?

A

Depreciation

159
Q

What is plottage?

A

The added value resulting from assemblage (combining smaller lots into a larger lot)

160
Q

What is net operating income and sale price used to

determine?

A

The overall capitalization rate (OAR)

161
Q

What is equity?

A

An investor’s own funds used to purchase an investment

162
Q

What is the purpose of a due diligence period when

selling a business?

A

It allows the buyer to inspect the financials of the

business

163
Q

What is a property tax certificate?

A

What is auctioned by the city of county government to

collect a delinquent debt

164
Q

Which expenses may be deducted when calculating

taxable income for an investment property?

A

Operating expenses
Depreciation
Hazard insurance
Property taxes

165
Q

What is a special assessment?

A

A tax levied on property to help pay for public

improvements that benefit the property.

166
Q

Which properties are exempt from property taxes?

A

Churches and nonprofit organizations

167
Q

What does the planning commission have final authority over?

A

Sign controls
Site plan approvals
Subdivision plat approvals

168
Q

What is a variance?

A

A type of zoning exception that allows a property owner

to vary from strict compliance with all or part of a zoning code.

169
Q

What is the best method for finding the value of a vacant lot?

A

Sales Comparison

170
Q

What is the best method for finding the value of a unique or historical piece of property?

A

Cost Approach

171
Q

Money spent to create an improvement is called what

A

Cost

172
Q

Explain Functional Obsolescence

A

Decrease in cost due to materials or other physical nature of the home

173
Q

What must be done for a property to depreciate?

A

It must be improved

174
Q

Market Value is defined as?

A

the probable price that a property should bring.

175
Q

What the 4 appraisal approaches for appraising a business?

A

Comparable Sales Analysis
Income Approach
Cost Approach
Liquidation approach

176
Q

Describe Leverage

A

Using borrowed funds to purchase an investment

177
Q

Describe Positive Leverage

A

The Cost of borrowed funds is less than the return on the borrowed funds

178
Q

Describe a balance sheet

A

The document that indicates a businesses financial position at certain point in time.

179
Q

On What day do property taxes become late?

A

April 1st

180
Q

On what date do property taxes become a lien against the property?

A

Jan 1

181
Q

What date do property taxes become payable?

A

Nov 1

182
Q

After inspecting a construction project what does the Building Inspector issue if everything is in compliance.

A

A certificate of occupancy

183
Q

What is a PUD?

A

Planned Unit development is the clustering homes on smaller lots creating more open common areas maintained by the association

184
Q

Who enforces building codes?

A

The Local Government

185
Q

What is the concurrency provision?

A

It requires necessary infrastructure such as roads, water, and waste treatment be in place before development can begin.

186
Q

How are discount points calculated?

A

Divide number of points by 8 and multiply by loan amount

187
Q

What are the characteristics of Value?

A

D.U.S.T. Demand, Utility, Scarcity, Transferability

188
Q

Who does 61J2 apply to?

A

Realtors only

189
Q

What is your broker in relation to your clients?

A

A Special Agent

Florida Real Estate (1 decks)

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