Test Flashcards
1
Q
What does Mutual Assent Mean?
A
Offer and Acceptance
2
Q
What Does Attorney in fact mean?
A
Power of Attorney
3
Q
What does Specific Performance Mean?
A
Either the buyer or Seller is required to go through with the contract but not both.
4
Q
What can terminate an offer?
A
Withdrawl Insanity Lapse of Time Destruction of Property Counteroffer Acceptance Rejection Death
5
Q
What does Hypothecation Mean?
A
Pledging Property as security of debt
6
Q
What document states debt owed, interest rate, and date interest be paid?
A
Estoppel Certificate
7
Q
How long does the mortgage company have to issue satisfaction?
A
60 days
8
Q
What document contains interest rate, loan amount, maturity date, and the payment schedule?
A
Note
9
Q
What is the defeasance Clause?
A
The loan company must remove the mortgage lien after it’s paid off.
10
Q
What does “Subject to the mortgage” mean?
A
Means the seller is responsible for the mortgage
11
Q
If the buy assumes the mortgage who is ultimately responsible for it?
A
Both the buyer and the seller
12
Q
What does equitable title mean?
A
You have interest (equity) in the title
13
Q
What does time is of the essence mean?
A
Every Clause in the contract has a specific end date
14
Q
A construction lien is what type of lien?
A
Involuntary - think of defaulting on installing a pool
15
Q
The legal bundle of rights consists of?
A
Disposition Enjoyment Exclusion Possession Control
16
Q
A contract can be terminated how?
A
Performance, Mutual Rescission, Impossibility of performance, Lapse of Time, Bankruptcy, Breach
17
Q
What section of the deed has the names in it?
A
Premises Clause
18
Q
What does Parol Mean?
A
Oral
19
Q
What listing type permits the seller to sell their own property but only your broker can sell it?
A
Exclusive Agency
20
Q
How many days do you have to cancel a contract after signing due to an HOA agreement?
A
3
21
Q
What is a unilateral Contract?
A
Only one party has to perform
22
Q
What is a Committee’s Deed considered?
A
A special purpose deed
23
Q
Who is the mortagee?
A
lender
24
Q
Who is the mortgagor?
A
the buyer
25
What do FHA loans require?
Insurance Premiums
26
What is the discount rate?
Interest rate charged to member banks borrowing from the federal reserve
27
What does the federal reserve do on the open market?
Buy and Sell US treasury securities
28
Who is the Federal National Mortgage Association?
Fannie Mae
29
What are home equity loans exempt from?
TILA-RESPA integrated rule
30
Which loans are exempt from the due on sale clause?
FHA & VA loans
31
What is the index used for?
It's an economic indicator that will increase or decrease adjustable rate loans
32
What is implemented by Regulation Z?
The truth in lending act
33
Which are non-conventional loans?
FHA & VA Loans
34
Who is the Federal Home Loan Mortgage Corp?
Freddie MAC - Purchase loans made through Savings Associations
35
What is a fractional piece of land along lakes and streams called?
Government Lot
36
How many feet are in an Acre?
43560
37
How many Acres are in a section?
640
38
How many sections are in a township?
36
39
Describe easement
Private restrictions on real property
40
What is equitable title?
Person that receives title at a future date
41
How long does a licensee have to correct a notice of non-compliance?
15 days
42
How long do you have to cancel a time share contract?
10 days
43
What is an abstract of title?
The search of the title in public records
44
What type of notice occurs when recording something in public record?
Constructive notice
45
How long do you have to cancel a condo contract from a developer?
15 days
46
How long does the licensee have to notify the DBPR of a guilty plea?
30 days
47
What does the administrative law judge issue at the conclusion of a formal hearing?
A recommended order
48
What type of share ownership allows the owner to rent or sell their timeshare interest?
interval ownership
49
How many days notice are required to terminate a month to month tenancy?
15 days
50
What is the estate called after a life estate is complete?
Estate in reversion
51
Who gets the property for tenancy in common?
heirs
52
What type of ownership reverts to the other owners?
Joint Tenancy
53
Legal test to determine if it's a fixture?
Intent of the parties
Relationship between the parties
Method of attachment
Adaptation
54
Real property that is converted into personal property is called what?
Severance
55
Which law prohibits discrimination in public accommodations?
Civil rights act of 1964
56
What does Chattel Mean?
Personal property (removable)
57
4 unities of Joint Tenancy are
Possession, interest, title and time
58
What does Acknowledgement mean?
It's been notarized
59
The process of building a home without first securing a buyer is called what?
speculative building
60
A lease with no end date is called what?
Tenancy at will
61
What is condemnation?
The legal procedure used in an eminent domain action to determine a fair price
62
What title insurance policy is issued for the loan amount and is transferable?
Lenders (mortgagee) policy
63
When would a 28 hour reactivation course be needed?
If the licensee leaves their license involuntary for 12 or more months they must take this to renew.
64
What is right of survivorship?
Property goes to the other owners.
65
What information should be included in an advertisement?
Full Name, Broker, Phone Number and type of number.
66
What is required from a fiduciary relationship?
The broker must act in complete trust with the principal (client)
67
What does DBPR mean?
Department of Business and professional relations
68
Where can an escrow acct be established?
A credit union
A Florida Attorney's trust account
A Florida based title company
A savings association
69
Does the DBPR need notified if you enter a guilty plea outside of Florida?
yes within 30 days
70
Would a hearing be part of the process for a notice of noncompliance?
Not generally for minor first time violations
71
If the land lord does NOT intend to impose a claim on the security deposit how long do they have to return it?
15 days
72
What are the protected clauses under the fair housing act of 1968?
```
Familial status
Race
Sex
Handicap
Color
Religion
National origion
```
73
What type of discrimination is prohibited in all real estate transactions?
race
74
What is accretion?
The process of land buildup from water-born rock and soil
75
What is a remainderman?
The person that receives property after a life estate is complete.
76
What is a declaration? (Condo documents)
This the document that creates a condo
77
What is a prospectus?
A document that the developer of 20 or more residential condo unites must give to prospective purchasers
78
This type of building involves building model homes to sell homes.
Tract construction
79
A specific geographic area that you seek to market yourself as an expert
A farm area.
80
What must a licensee take into account when preparing a CMA
The sale price of recent similar properties and expired listings
81
Can a rental agent be legally paid a fee?
yes
82
Does Bankruptcy have to be disclosed on a license application?
No
83
If you have power of attorney do you also need a real estate license to execute a contract?
No
84
Which process allows active duty military who hold an active license in another state a florida license?
Reciprocity
85
What does "nolo contendere" mean?
No contest
86
Who appoints the DBPR secretary?
The governor with senate confirmation
87
How long do you have to notify the FREC of an address change?
60 days in writing
88
What does FREC mean?
Florida Real Estate Commission
89
What authority does executive power give FREC?
Authority to regulate and enforce real estate law
90
How long does a licensee have to renew their license if on active duty?
24 months after discharge but not at all while on active duty
91
When would a designated sales associate need to be assigned?
Where there is a buyer and seller that both have assets over $1m
92
A sales associate has how long to turn over an earnest check to their broker?
1 Business day
93
A broker has how long to deposit an earnest check after a sales associate receives it?
3 Business days
94
What is a Corporation Sole?
Church - They can't register as a broker
95
Who needs to hold an active brokers license in a limited partnership?
All general partners that perform real estate services
96
What must a sales associate do to form a limited liability company for tax purposes?
Register under their name with the abbreviate LLC
97
When is a formal hearing necessary?
If the respondent disputes allegations outlined in a complaint
98
What is block busting?
Using the entry or rumor of entry of a protected class to get people to sell.
99
What is done with security deposits if a rental is sold?
They are given to the new owner
100
Homestead property is limited to?
1/2 an acre in city limits and 160 acres in the country
101
How much of their own money can a broker keep in a sales escrow account?
$1000
102
Who administers Florida's telemarketing law?
The dept of agriculture and consumer services
103
What is the most common co-ownership state?
Tenancy in common
104
What legal trouble can you get into for false advertising?
2nd degree misdemeanor
105
How much of their own money can a broker keep in a property management account?
$5000
106
If an escrow disbursement order is no longer needed how long do you have to notify FREC?
10 business days
107
If a broker believes they have rights to part of the escrow money what litigation method to they request?
A declaratory order
108
How much of their own money can a broker keep in a combined sales and property management account?
$5000
109
Which act prohibits discrimination based on race?
Civil rights act of 1866
110
If a citation is issued in error you have long how to object?
30 days
111
How long does a landlord have to return deposit if they aren't disputing?
15 days
112
What is the legal trouble for selling outdated inaccurate rental info?
1st degree misdemeanor
113
What is the fine by the DBPR for unlicensed practice of real estate?
Up to $5000
114
How long does a broker have to notify FREC of conflicting demands?
15 business days
115
What permits FREC to create administrative rules
quasi-legislative powers
116
What is the penalty for a 3rd degree felony?
Up to 5 years in prison and a $5000 fine
117
Who prepares a recommended order after a hearing of an admin complaint?
Administrative law judge
118
Which duties are part of a transaction broker relationship?
```
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
What type of timeshare ownership allows for usage rights to return to the developer/seller?
Right to use
120
Which penalties does FREC have the right to enforce?
Probationary period, suspension of up to 10 years, and continuing education course
121
What type of lien is a vendor's lien?
A specific lien
122
What type of ownership allows for different ownership percentages?
Tenancy in Common
123
Who is the mortgagee?
The Lendor
124
Who is the mortgagor?
The buyer
125
Which insurance policy is for the unpaid mortgage?
The Buyer's policy (Mortgagor)
126
explain intestate vs testate
Dies with No Will vs Has a Will
127
Which clause starts with "to have an to hold"
Habendum clause
128
Which lien always has top piority?
Estate Taxes
129
Which deed is best for the seller?
Quitclaim deed
130
Which deed is best for the buyer?
General warranty deed
131
S½ of the SE¼ of the NW¼ and the NE¼ of the SW¼ of the S½ of section 19 contains how many acres?
40 Acres
132
Which section is directly west of the Tallahassee Principal Meridian, in a government survey system?
Range 1 West
133
What is the opposite of North 45 degrees West?
South 45 degrees East
134
What is a government lot?
A fractional piece of land less than a full quarter
| section located along the banks of a lake.
135
Which legal description uses plat maps?
Lot and block method.
136
What are the essential elements of a valid contract?
COLIC
```
Competent parties
Offer and acceptance
Legal purpose
In writing and signed
Consideration
```
137
What is an executory contract?
A contract that has not been fully executed by both
| parties.
138
What is needed to authorize you to act on another
| persons behalf?
Power of Attorney
139
What are the remedies for a breach of contract?
specific performance
Liquidated damages
Rescission
Compensatory damages
140
What contracts are covered under the Statute of
| Frauds?
```
Purchase and sale
Option contracts
Deeds and mortgage instruments
Lease agreements longer than 1 year
Listing agreements longer than 1 year
```
141
What is an open listing?
A listing that allows the seller to list property with multiple brokers.
142
Which type of contract has a statute of limitations of five years?
Written contracts
143
What is an acceleration clause?
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
What is a subordination agreement?
A mortgage provision that allows another mortgage
| created at a later date to take priority.
145
What is a contract for deed?
A contract that allows legal title to remain with seller
| while the buyer has equitable title in the property.
146
What is the formula to calculate a loan to value ratio?
Loan Amount ÷ Price
147
Which clause can a VA loan NOT have?
Due on Sale Clause
148
What is Ginnie Mae?
The government entity that guarantees mortgage back securities with full faith and credit of the U.S. government
149
What part of the calculated interest rate of an
adjustable rate mortgage is the lender’s estimated
overhead plus profit known as?
Spread
150
What is the purpose of the reserve requirement?
To control the money supply for the Federal Reserve by increasing the amount of funds banks must set aside
151
What is bait and switch advertising?
Any advertisement that contains triggering terms (credit terms)
152
What is a straw buyer?
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
On a closing disclosure, the earnest money/binder
| deposit would show as
Credit to the Buyer Only
154
How is the interest on an assumed mortgage entered on the closing statement?
Debit to seller, credit to buyer
155
What variables influence supply of real estate?
Availability of skilled labor
Availability of construction
Availability of land
Availability of materials
156
What is liquidation?
A type of value associated with rapid sale.
157
What is the formula for the Gross Rent Multiplier (GRM)?
Sale Price ÷ Gross monthly rent
158
What is effective aged used to calculate in the cost
| approach?
Depreciation
159
What is plottage?
The added value resulting from assemblage (combining smaller lots into a larger lot)
160
What is net operating income and sale price used to
| determine?
The overall capitalization rate (OAR)
161
What is equity?
An investor’s own funds used to purchase an investment
162
What is the purpose of a due diligence period when
| selling a business?
It allows the buyer to inspect the financials of the
| business
163
What is a property tax certificate?
What is auctioned by the city of county government to
| collect a delinquent debt
164
Which expenses may be deducted when calculating
| taxable income for an investment property?
Operating expenses
Depreciation
Hazard insurance
Property taxes
165
What is a special assessment?
A tax levied on property to help pay for public
| improvements that benefit the property.
166
Which properties are exempt from property taxes?
Churches and nonprofit organizations
167
What does the planning commission have final authority over?
Sign controls
Site plan approvals
Subdivision plat approvals
168
What is a variance?
A type of zoning exception that allows a property owner
| to vary from strict compliance with all or part of a zoning code.
169
What is the best method for finding the value of a vacant lot?
Sales Comparison
170
What is the best method for finding the value of a unique or historical piece of property?
Cost Approach
171
Money spent to create an improvement is called what
Cost
172
Explain Functional Obsolescence
Decrease in cost due to materials or other physical nature of the home
173
What must be done for a property to depreciate?
It must be improved
174
Market Value is defined as?
the probable price that a property should bring.
175
What the 4 appraisal approaches for appraising a business?
Comparable Sales Analysis
Income Approach
Cost Approach
Liquidation approach
176
Describe Leverage
Using borrowed funds to purchase an investment
177
Describe Positive Leverage
The Cost of borrowed funds is less than the return on the borrowed funds
178
Describe a balance sheet
The document that indicates a businesses financial position at certain point in time.
179
On What day do property taxes become late?
April 1st
180
On what date do property taxes become a lien against the property?
Jan 1
181
What date do property taxes become payable?
Nov 1
182
After inspecting a construction project what does the Building Inspector issue if everything is in compliance.
A certificate of occupancy
183
What is a PUD?
Planned Unit development is the clustering homes on smaller lots creating more open common areas maintained by the association
184
Who enforces building codes?
The Local Government
185
What is the concurrency provision?
It requires necessary infrastructure such as roads, water, and waste treatment be in place before development can begin.
186
How are discount points calculated?
Divide number of points by 8 and multiply by loan amount
187
What are the characteristics of Value?
D.U.S.T. Demand, Utility, Scarcity, Transferability
188
Who does 61J2 apply to?
Realtors only
189
What is your broker in relation to your clients?
A Special Agent
