Test Prep Final

Question 1

Harry is looking at buying a building that has a monthly income of $3,600, a 5% vacancy rate, and annual expenses of $8,640. He is expecting a 12% return on his investment. How much should he pay for this building?
$270,000
$350,000
$480,000
$518,000

Answer 1

$270,000

Question 2

When skilled labor is plentiful, plenty of land is available, and there is an abundance of building materials. What usually happens?
The supply of housing goes down because too much is available.
The supply of housing increases, and the price decreases.
Building starts are up, and the prices jump.
Prices are uncontrolled and go in any direction.

Question 3

The principle of laissez-faire as applied to real estate most nearly means:
Buyer beware.
Let things be.
This is a seller’s market.
This is a buyer’s market.

Answer 3

Let things be.

Question 4

Repairing the roof, recoating the driveways, replacing lighting, and cleaning out the gutters on an apartment building are considered by the property manager and the owner to be part of the job. This is considered:
preventative maintenance and is needed to maintain the value of the property.
deferred maintenance and is necessary to keep the tenants happy.
corrective maintenance and is part of the job of the property manager.
predictive maintenance and is required by the city in order to keep the property in order to get the proper occupancy permits.

Answer 4

preventative maintenance and is needed to maintain the value of the property.

Question 5

Jeff just didn’t get around to paying his ad valorem taxes. He didn’t think it was important until a list of delinquent taxes was published in the local paper, and he found his property address on the list. A tax certificate was issued to an investor for Jeff’s property. How long does Jeff have to redeem his property by paying all taxes, costs, and interest to the county before the foreclosure process begins?
30 days
9 months
2 years
5 years

Answer 5

2 years

Question 6

An undivided share in “common elements” describes:
condominium ownership.
a lease.
a duplex or townhome.
an easement.

Answer 6

condominium ownership.

Question 7

James is unable to pay all of his bills and pay his mortgage payment. His second mortgage lender forecloses the property. James has a first mortgage, a second mortgage, and there is a mechanic’s lien; his property taxes are also not paid. Which of these liens will be paid first?
That would depend on when everything was recorded.
The first deed of trust is always paid before other liens.
The second deed of trust was the one that foreclosed, so it will be paid first.
The real estate property taxes are always the lien paid first in a foreclosure.

Answer 7

The real estate property taxes are always the lien paid first in a foreclosure.

Question 8

The two methods of accounting used in business is
debit and credit
cash and accrual
assets and liabilities
financial and physical

Answer 8

cash and accrual

Question 9

The fact that all real estate rules must be written or printed under the seal of the commission provides for what point of law?
This assures the quasi-judicial powers of the commission.
This assures the quality of the rules of the commission.
This provides Prima Facie evidence of the rule’s existence.
This provides a Statute of Limitations on their existence.

Answer 9

This provides Prima Facie evidence of the rule’s existence.

Question 10

Goodwill is a measurement of
a business’ tangible assets.
a business’ reputation.
a business’ work in the community.
an owner’s background in the business.

Answer 10

a business’ tangible assets.

Question 11

A property manager:
must have a separate license to manage properties in a condominium.
manages real property for owners.
manages all common areas for owners.
cannot manage a property that is managed by an association.

Answer 11

A property manager:

Question 12

The subdivision has a deed restriction that all the homeowners must build their homes with shake shingle roofs or Spanish tile roofs. One home was not built to the restriction, and the other homeowners were upset. What can the neighbors do?
Nothing, since this is an individual’s own property.
Apply for a court injunction against the property owner.
A group of neighbors should inform the person that he is in violation.
File a lis pendens as soon as possible.

Answer 12

Apply for a court injunction against the property owner.

Question 13

Old Man Smith died owning a property with an estimated value of $500,000. He never married and died without leaving a will. Smith’s sister was married and had two children. What will happen to the property upon the death of Mr. Smith?
The city will receive the property in escheat because there was no will.
The property will be sold and the proceeds donated to local charities.
The sister’s children will probably receive the property under the laws of descent.
No one will receive the property; the county will get it for lack of payment of taxes.

Answer 13

The sister’s children will probably receive the property under the laws of descent.

Question 14

Susan received a 450-acre property from her grandfather when he died. He died testate. What is the legal name of what Susan received at the death of her grandfather?
Ademption
Devise
Demise
Land grant

Answer 14

Devise

Question 15

he term “null and void” in relation to a license means
the license may be reactivated at any time.
the license has been suspended.
the license is effective but not active.
the license never existed.

Answer 15

the license never existed.

Question 16

Local governments promote health, safety and general welfare by establishing:
Deed restrictions.
Restrictive covenants.
Zoning ordinances.
Subdivision covenants.

Answer 16

Zoning ordinances.

Question 17

Which is not a way to terminate a listing agreement?
Major incapacity of the seller
Destruction of the property
Expiration of the time as stated in the agreement
Death of the sales associate

Answer 17

Death of the sales associate

Question 18

A broker found a ready, willing, and able buyer who offered full price for a home. The seller refused to sell because the buyer was a minority. The broker could legally do all except:
Sue for his commission.
Inform the prospective buyer that help may be available from HUD.
Inform the seller that a possible violation of Federal Fair Housing Laws has occurred.
Show the property only to non-minorities per the seller’s instructions.

Answer 18

Show the property only to non-minorities per the seller’s instructions.

Question 19

The appraiser was looking at three different homes to compare to the subject house. House A had one more bedroom and a screened-in porch compared to the subject house; House B had two fireplaces where the subject house had one; and House C had a three-car garage when the subject house only had a two-car garage. In order to reconcile these properties to the subject house, what must the appraiser do?
The appraiser never reconciles; he averages to get the value.
The appraiser will subtract from Houses A, B, and C to get the subject value.
The appraiser will add to Houses A, B, and C to get the subject value.
The appraiser will add the value of the amenities to get the value of the subject house.

Answer 19

The appraiser will subtract from Houses A, B, and C to get the subject value.

Question 20

A federal bank examiner came to a bank in Jacksonville. He audited the books, and he checked out the staff and the office facilities. He checked the public rooms and the lunchroom. Everything was thoroughly examined. Later, he charged the branch manager with a violation of the Federal Fair Housing Act because he did not see:
Enough records showing minorities receiving loans.
Enough handicapped parking places.
An Equal Housing Opportunity Poster.
A mix of races in the office.

Question 21

Julie is a sales associate for ABC Realty. She sold a house that was listed in the MLS from XYZ REALTORS®. The list price was $340,000, and the property sold at 95% of the list price. The commission rate to the seller was 7%, and the brokers divided the commission–55% to 45%–with Julie’s broker getting 45%. Julie and her broker split the commission equally. How much did Julie make in commission on this sale?
$5,087.25
$5,355.00
$6,783.00
$10,174.50

Answer 21

$5,087.25

Question 22

Jones has a 100-acre farm. He sells it to a developer who is going to build houses. The developer will use 10% of the land for streets, sewers, and parks. He will divide the rest of the land into 120 lots. How many square feet will be in each lot?
1,590 sq. ft.
32,670 sq. ft.
392,000 sq. ft.
567,200 sq. ft.

Answer 22

32,670 sq. ft.

Question 23

Johnson has his property listed with ABC Realty. On November 1, a fire causes considerable damage to the property. On November 15, Johnson rescinds the listing. On November 30, the broker was deemed by a judge to be incompetent. December 30 was the listing contract expiration date. On which date was the listing terminated?
November 1
November 30
December 1
December 30

Answer 23

November 1

Question 24

The FREC is investigating a claim by a buyer that the broker had not given the proper disclosure to the buyer before the buyer purchased a home. The broker has paperwork dating back three years from the date of the signing of the document in question and one year after the legal action of the case. Is the broker protected?
Yes. Because the broker had the records at the time of the case, he is fine.
Yes. Because the broker has records dating back three years, he is fine.
No. The broker needs to keep the records five years from the date of the document and two years after any legal action.
No. The broker is better off without any record of the disclosure; the buyer can’t sue if there is no record.

Answer 24

No. The broker needs to keep the records five years from the date of the document and two years after any legal action.

Question 25

Anderson sold property to Kelly. The contract contained the following statement: "Buyer to accept the property in an 'as is' condition." Both the seller and the broker knew that the plumbing was in a major state of disrepair but did not tell Kelly. Would an action against the broker and the seller be successful? Yes, because the disclosure under Johnson v. Davis requires sellers to disclose substantial defects in the property which are not readily observable by the buyer. Because of the single agency relationship, the broker should have represented the buyer better. The contract specifically states the property was being sold "as is." The contract is a meeting of the minds and the buyer accepted the terms written.

Answer 25

The contract specifically states the property was being sold "as is."

Question 26

The seller wishes to convey the property to a new owner. The seller arrives at the title company office prepared to sign the papers, and he dies at the table before anything can be signed. Can the property legally be transferred at this time? Yes. Because the intent of the seller was to convey, the title company should prepare the paperwork. Yes. Because the seller had already agreed to the price, the property can be conveyed. No, because the grantee was not given the opportunity to sign the deed. No. Because the seller did not acknowledge the deed, sign as the grantor, and deliver to the grantee, the property cannot be transferred at this time.

Answer 26

Yes. Because the intent of the seller was to convey, the title company should prepare the paperwork.

Question 27

A broker from Nebraska wants a license in Florida. He takes a written exam of 40 questions and passes 35 of them. The broker has taken advantage of the written agreements between the states for real estate licensing. This is an example of: A mutual recognition agreement between the states of Florida and Nebraska, created for real estate licensing. A nonresident broker trying to obtain a Florida license. A recognition of education awarded between Florida and all states for the purpose of real estate exams. Reciprocity.

Answer 27

A mutual recognition agreement between the states of Florida and Nebraska, created for real estate licensing.

Question 28

The federal government allows a homeowner certain deductions when filing the long-form for income tax. Which is not an allowable deduction? Mortgage interest Real estate taxes on a principal residence Real estate taxes on a second home Hazard insurance premiums

Answer 28

Hazard insurance premiums

Question 29

Hypothecation most nearly means the: property belongs to the lender until the loan is paid in full. property is pledged as collateral for the loan if the buyer defaults. mortgage is evidence of the debt. note is the collateral for the loan.

Answer 29

property is pledged as collateral for the loan if the buyer defaults.

Question 30

Sonny, a minor, contracts to buy a property, and the seller signs the contract. The contract is: Valid. Voidable. Transferred to his parents. Enforceable.

Answer 30

Voidable.

Question 31

The buyer of an industrial complex wants the broker to place the earnest money in an interest-bearing account. The broker does this, clearly identifying all parties who are to receive the interest and the date the earned interest is to be disbursed. With only the verbal consent of the buyer, he places the money in an insured account in a depository in Florida. When the time comes to disburse the account, the broker will write a check to the buyer for the interest as the buyer agreed. Which statement describing this situation applies? The broker is able to follow the buyer's instructions without the seller's permission. The broker must obtain both the buyer and seller's permission to do this in writing prior to following the buyer's instructions. The broker must not transfer the interest into a non-interest bearing account before disbursement. The broker does not have the right to ever use an interest-bearing account under Florida Real Estate laws.

Answer 31

The broker must obtain both the buyer and seller's permission to do this in writing prior to following the buyer's instructions.

Question 32

Pat bought a house and got a new interest-only loan. She paid $12,600 in interest during the first year, and the sale price of the property was $210,000. What was the interest rate? 4% 6% 8% 12%

Answer 32

6%

Question 33

If the boundary of a piece of property ends short of the high tide watermark, the ownership will NOT grant riparian rights. the additional land belongs to the owner. the owner must request riparian rights through the courts. the owner cannot access the water.

Answer 33

the ownership will NOT grant riparian rights.

Question 34

Jim Jones, the landlord, rents a property to Tom Smith, a physically disabled person. Mr. Smith, with Mr. Jones' permission, modifies the house to suit his needs. When the lease expires, Mr. Smith will NOT be required to: Remove the "grab rails" in the bathroom that were installed for his use. Raise the kitchen cabinets that were lowered for his use. Repair the walls where the "grab bars" were removed. Restore the wide doorways that were installed for his wheelchair to their original size.

Answer 34

Restore the wide doorways that were installed for his wheelchair to their original size.

Question 35

An optionor and optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform? The optionee must exercise his option immediately. The optionee must exercise his option under the terms of the option contract. The optionee does not exercise; it is the optionor that must decide. The optionee must exercise his option whenever the optionor demands.

Answer 35

The optionee must exercise his option under the terms of the option contract.

Question 36

A local insurance salesperson wanted to make a lot of sales. He contacted all of his friends who were sales associates and told them that if they insisted that their buyers buy insurance from him, he would give the real estate sales associates cash at the end of each quarter. What best describes the situation? The insurance man is simply networking and enlarging his business. The payments are legal because they aren’t made for a specific deal. This is a kickback, in violation of RESPA. The real estate licensee and the insurance salesperson are violating the Truth in Lending Act.

Answer 36

This is a kickback, in violation of RESPA.

Question 37

If house A had a sale price of $70,000, monthly rent of $500, and a GRM of 140; House B had a sale price of $68,500, monthly rent of $490, and GRM of 139.8, and House C had a sale price of $70,500, a monthly rent of $485, and a GRM of 139.6, what would be the value of a property which rented for $495 in the same neighborhood, assuming that house A is the best comparable? The sale price should be $62,300. The sale price should be $65,000. The sale price should be $69,300. The sale price should be $72,000.

Answer 37

The sale price should be $69,300.

Question 38

A developer is considering building a community for senior citizens. He sets up a building that is occupied only by tenants 62 years or older. He designs community areas with barrier-free access, and he advertises to older people in retirement magazines. A niece of one of the owners requests permission to move in with her two children and live with her aunt in the building. The homeowners and the developers refuse to let her move in. Are they justified in doing this? Despite the fact that the developer specifically designed this building for older people, he must allow the niece and her children to move in because they are related to the person living in the building. It is illegal for the developer of this property to make rules that discriminate against occupancy for people with children. This is a violation of Federal Fair Housing against discrimination based on familial status. The developer may discriminate against the children and their mother because senior housing is exempt under Federal Fair Housing when certain conditions have been met.

Answer 38

The developer may discriminate against the children and their mother because senior housing is exempt under Federal Fair Housing when certain conditions have been met.

Question 39

The buyer and seller were scheduled to close the sale transaction on Wednesday, March 14. The taxes for the year were $3500 and were paid in arrears. How would this appear on a closing statement, using the 365-day method? Debit the seller $690.41 and credit the buyer $690.41. Debit the buyer $2709.59 and credit the seller $509.41. Credit the buyer $609.41 and debit the seller $2709.59. Debit the buyer $2709.59 and credit the seller $2709.59.

Answer 39

Debit the seller $690.41 and credit the buyer $690.41.

Question 40

George wanted a home in the St. Paul area. He was willing to pay a premium price for it even though there were other homes in other areas that were better valued. When George was asked why he was willing to pay so much, he told the sales associate that he worked in that area and that he wanted his children to attend school in a specific school district. George's willingness to pay top dollar for a home in St. Paul is because of which characteristic of value? Conformity Situs Utility Scarcity

Answer 40

Situs

Question 41

Ken, a transaction broker, worked with both the buyer and seller in the sale of a home. The sale went well, and it closed on time. Later, the seller discovered that Ken had told the buyer that the seller was willing to take a lower price than was specified on the listing agreement in order to "speed up the sale," and Ken told the buyer a specific price to offer. Which describes the situation? Ken had poor judgment in dealing with the buyer and seller. Ken violated the limited confidentiality required for his job. Ken did not violate any rules or regulations. Ken is not liable for any problems; only the broker is liable.

Answer 41

Ken violated the limited confidentiality required for his job.

Question 42

A military spouse has relocated with their husband and is assigned to a duty station in Jacksonville. The spouse has an active real estate license in New York. The spouse may: practice real estate in Florida for 90 days but must be licensed in Florida after that. be issued a license without taking an exam by submitting the supporting documentation. sell properties to military families relocating the area. not practice real estate in Florida until they have completed FREC 1 and a state license exam.

Answer 42

be issued a license without taking an exam by submitting the supporting documentation.

Question 43

A property is purchased for $110,000. The lender provides a loan for $85,000. He offers a very attractive interest rate of 3% with 3 discount points. What did the lender charge for points? $2,560 $3,300 $2,550 $5,100

Answer 43

$2,550

Question 44

Richard and Katherine are man and wife. They own a house in tenancy by the entirety in the Florida Keys and live there all year. One day Katherine comes home to find that Richard has sold the house without her knowledge or consent. Richard says he is entitled to do this since this is the way they own the property. Which statement about tenancy by the entirety is not true? Tenancy by the entireties is a state of ownership for married couples only. Tenancy by the entireties requires automatic survivorship. Tenancy by the entireties requires the property to be conveyed by both at the same time. Tenancy by the entireties allows for each person to be able to sell his/her interest independent of the other.

Answer 44

Tenancy by the entireties allows for each person to be able to sell his/her interest independent of the other.

Question 45

When a property is sold "subject to mortgage," how does it affect the original borrower of that mortgage? The original borrower is released from liability. The existing loan is paid off with title transfer. The original buyer is still liable because no new note was signed. The assumption has no effect on the original owners.

Answer 45

The original buyer is still liable because no new note was signed.

Question 46

The Federal Fair Housing Act of 1968 and 1988 has certain exemptions. Which activity falls under one of the exemptions? Excluding certain tenants in a four-family dwelling where one unit is owner-occupied, and the exclusion is not racially based. Denying a person access to the multiple listing service (MLS) based on the race of the individual. Refusing to lease a unit in a large apartment building to a family with four children because most of the residents are college students. Refusing to sell a listed property to an Asian family who is using the service of a real estate broker.

Answer 46

Excluding certain tenants in a four-family dwelling where one unit is owner-occupied, and the exclusion is not racially based.

Question 47

A legal description of a piece of real property should be complete enough so that a reasonably competent: Surveyor could find it. Purchaser could locate the property. Seller could advertise it in the paper. Real estate licensee could use it in the MLS.

Answer 47

Surveyor could find it.

Question 48

Suzie Smith is a real estate sales associate. She is a top producer and likes to maintain her independence. She sets up her office in her home, independent of the broker. She maintains her own telephone, secretary, administrative assistant, and cell phone. She communicates with her broker once a week, or he comes to see her at her office. Is this a workable situation? Yes. It works well for both the broker and Suzie, and the broker is able to supervise Suzie via phone or visits. Yes. A sales associate or broker associate is entitled to have an independent office of his/her own. No. Suzie is in probable violation of city ordinances. No. Suzie is violating license law because a sales associate may not have an independent office of their own.

Answer 48

No. Suzie is violating license law because a sales associate may not have an independent office of their own.

Question 49

Mortgage fraud may be prosecuted in the United States as wire fraud. predatory lending. failure to disclose. a fourth-degree felony.

Answer 49

wire fraud.

Question 50

Samuel owned a fee simple title to a property located next to a hospital and was persuaded to make a gift of the property to the hospital. He had his attorney prepare a deed that conveyed the ownership of the property to the hospital, so long as it is used for hospital or medical purposes. When the hospital takes possession of the property, it will own the property: Free and clear estate without debt. In a life tenancy estate. In a fee simple defeasible estate. In a periodic tenancy estate.

Answer 50

In a fee simple defeasible estate.

Question 51

Mathew bought a home for $245,000 using a 20% down payment. He obtained a 30-year fixed-rate mortgage at six percent (6%)for the remainder of the funds. His monthly principal and interest payment is $1175.12. What will the principal balance on the mortgage be after the second payment is made? $179,603.23 $195,608.78 $199,042.00 $206,936.24

Answer 51

$179,603.23

Question 52

Susan is considering becoming a real estate professional. She knows that sales associates should show property and help people find homes. Susan must be competent in all of the following areas EXCEPT having knowledge of how: Properties are transferred from seller to buyer. Much property is on the market, how property can be financed, how well properties are selling, and how much property is worth. To market real estate, including proper pricing, disclosure to both buyer and seller, service to buyers and sellers, and maintaining relationships with other real estate professionals. To complete a termite inspection, home inspection, and a new loan for the buyer so that outside resources do not have to be used for these purposes.

Answer 52

To complete a termite inspection, home inspection, and a new loan for the buyer so that outside resources do not have to be used for these purposes.

Question 53

A waterfront home is valued at $3 million dollars. The seller and the buyer have assets of more than one million dollars. The parties have requested Designated Sales Associates, as each wants a single agent. What can the broker do? The broker can represent both parties as a dual agent. The broker cannot complete this sale. The broker can explain to the buyer and seller that designated agency is allowed only on a non-residential transaction and ask the parties to sign the consent to transition to transaction brokerage. None of the above.

Answer 53

The broker can explain to the buyer and seller that designated agency is allowed only on a non-residential transaction and ask the parties to sign the consent to transition to transaction brokerage.

Question 54

A broker price opinion is often requested by a bank. by an inspector. by the FREC. by an appraiser.

Answer 54

by a bank.

Question 55

The Department of Business and Professional Regulation is part of the Florida State government, serving under the Executive Branch. Its primary purpose is to act as a consumer protection agency. The department has several powers and duties. Which of the below does this NOT include? Allowing applicants for real estate licenses to be screened by the child support agency. Developing a training program for newly appointed members of the FREC. Submitting an annual budget to the Florida legislature. Publishing and selling a handbook on Real Estate Licensing Law.

Answer 55

Allowing applicants for real estate licenses to be screened by the child support agency.

Question 56

An industrial park was sold to a group of investors in 2012. They plan to hold on to the industrial park because it is a growing area. The reason the investors consider this a long term investment is because of: Appreciation potential. Capitalization. Cash flow. Equity build-up.

Answer 56

Appreciation potential.

Question 57

An appraiser is working on an appraisal. He gathers information about the highest and best use, identification of key features, and identification of possible legal or physical problems. This is called: neighborhood analysis. neighborhood cycle. site analysis. cost approach.

Answer 57

site analysis.

Question 58

Non-federal or chartered banks who broker or lend for mortgages MUST be registered with: The DBPR The Department of Housing and Urban Development The Florida Office of Financial Regulation None of the above

Answer 58

None of the above

Question 59

On which page of the Closing Disclosure would you find the final costs of the loan compared to the Loan Estimate the lender originally provided to the borrower and then calculates the amount of cash the borrower will need at closing? 5 1 3 4

Question 60

A house in the neighborhood has been well maintained. The seller has made sure that all the electrical systems are working to code and that it has been kept up-to-date on painting and other maintenance. The appraiser gives him an excellent value based on: Cost to cure. Economic life. Actual Age. Effective Age.

Question 61

The Probable Cause Panel of FREC acts as a grand jury. They determine if there is a law violation or not, and they recommend whether to take further action or dismiss the case to the FREC. How long does the Probable Cause Panel have to determine whether the case should go forward? 15 days 30 days 60 days 90 days

Answer 61

30 days

Question 62

At their regular monthly meeting, a group of local brokers agrees that the introduction of "discount brokerages" in their area would be bad for business. The brokers agree that, as a group, they will not charge less than 6% commissions for the year. It is further agreed that an individual broker could set a fee higher than that if he or she chooses. This type of agreement is: Acceptable business practice. Acceptable business practice since the broker is able to establish any fee above 6%. Not acceptable business practice since it is a violation of the Real Estate Settlement Procedures Act. An illegal act under the Sherman Anti Trust Act.

Question 63

A broker must keep copies of all records pertaining to the escrow account, including but not limited to deposit slips, books, and statements of accounts. These records must be available during regular business hours for inspection by the: State Law enforcement. DBPR. GNMA. FHLB.

Question 64

Erica’s initial license is effective on September 30th of 2020. Her first license renewal would be on: September 30th of 2022 October 1st of 2022 March 31st of 2022 September 30th of 2021

Question 65

Jim and Joan owned a farm that produced fruits and vegetables for sale. The farm was located in a heavily populated area. Every year, hundreds of customers came to buy produce from them at the farm. One day, customers were surprised to see that the farm stand was gone and that Jim and Joan had sold the property for a much higher price than farmland would normally cost. Which principle of value did the appraiser use in determining the value of the property? Highest and best use The law of supply and demand Conformity Contribution

Answer 65

Highest and best use

Question 66

The DBPR requires that a licensee provide his or her address and email and to keep them current. This information is considered a breach of privacy laws. a matter of public record. for investigative use only. important to track down child support offenders.

Question 67

A resident real estate licensee moves from Florida to Iowa to take care of his aging parents and their farm. He has no plans to return to Florida. He will no longer be a Florida resident, but would like to retain his Florida broker’s license. In order to comply with Florida law, the licensee must: obtain a real estate license in Iowa, as well. notify the FREC of the change from resident to non-resident within 60 days. do nothing; the license is still valid. hire Iowa real estate sales associates to help sell Florida real estate.

Answer 67

notify the FREC of the change from resident to non-resident within 60 days.

Question 68

A veteran wants to buy a home for which the owners will accept no less than $120,000. The Certificate of Reasonable Value indicates the property is worth $110,000. Which is true about how a veteran may use VA financing to buy this home? The veteran cannot use his VA guarantee because the home is priced higher than the reasonable value. The veteran may pay the amount in excess of the VA certified value from his own savings account as a down payment and use the VA financing for the rest. The veteran may get a second mortgage to make up the difference between the certified value and the price. The Certificate of Reasonable Value comes from FHA. The veteran must use an FHA loan.

Answer 68

A veteran wants to buy a home for which the owners will accept no less than $120,000. The Certificate of Reasonable Value indicates the property is worth $110,000. Which is true about how a veteran may use VA financing to buy this home?

Question 69

A buyer of an installment contract buys the property on a five-year contract. At the end of the second year, the buyer of the installment decides to sell the property to someone else because he is too busy to manage it. Can the buyer legally do this? The buyer cannot get out of his installment contract. The buyer can sell the property at any time he wishes. The buyer could sell his interest in the property to another without the seller’s consent unless the seller specifically requires that no assignment can be made. The buyer can sell the property because he has legal title.

Answer 69

The buyer can sell the property because he has legal title.

Question 70

Mrs. Smith owns a piece of Florida real estate. Her school board millage rate is 4.5; City rate is 3.8, and County rate are 2.4 mils. Her home has been assessed at $225,000. She has a homestead exemption. Using the base homestead exemption, how much money does Mrs. Smith save? $310.00 $422.50 $535.00 $2,621.50

Answer 70

$422.50

Question 71

Certain disclosures under CERCLA are required when Federal property is transferred by the Department of Energy. Department of Environmental Protection. Department of Housing and Urban Development. individual state.

Answer 71

Department of Environmental Protection.

Question 72

Which is NOT a source of financing in the primary mortgage market? Savings and loans Mortgage bankers Banks Hedge funds

Question 73

Susan's father warned her about buying real estate. He told her that it was her responsibility to determine the facts about a property and that she should obtain a thorough inspection, a title search, and a survey. What legal issue was Susan's father advising her about? Caveat Emptor: Let the Buyer Beware. The Statute of Frauds The statute of limitations The parol evidence rule

Answer 73

Caveat Emptor: Let the Buyer Beware.

Question 74

A buyer bought a property without telling the seller or broker of his intended purpose for the property. The contract contained no contingency clauses and was properly signed and executed. The buyer is now unable to obtain the zoning he planned for the commercial project he needs for this property, and he is unable to use the property. What is the status of the contract at this time? This is a voidable, enforceable contract. This is a breach of contract since the buyer cannot use the property. This is an implied, valid contract. This is a valid, enforceable, executed contract.

Answer 74

This is a valid, enforceable, executed contract.

Question 75

Jennifer earned her license on March 31st of 2021. She MUST complete her post-licensure education and renew her license before September 30 2023 March 31st 2023 September 30th 2022 March 30th 2022

Question 76

This type of zoning requires that new buildings conform to specific types of architecture i.e., Spanish, Colonial, Mediterranean, etc. Bulk zoning Directive zoning Cultural zoning Aesthetic zoning

Answer 76

Aesthetic zoning

Question 77

A property owner moved from a farm he owned in fee simple to another county. He continued to pay taxes on the property and keep the title clear. Did he violate his rights of private ownership? Yes, because when he moved, he abandoned the property. Yes, because his abandonment restricted the use of the land. No, because as long as he paid the taxes, the property is not considered abandoned. No, because to abandon a property is to give it to someone else in severalty.

Answer 77

No, because as long as he paid the taxes, the property is not considered abandoned.

Question 78

To be a fixed-rate, fully amortized loan, certain terms must exist. Which is NOT a term or condition of an amortized loan? An amortized loan will pay off the loan with interest over the lifetime of the loan. An amortized loan will have the same monthly payment for P & I over the lifetime of the loan. The loan must be based on a taxation index. The interest rate remains the same over the life of the loan.

Answer 78

An amortized loan will have the same monthly payment for P & I over the lifetime of the loan.

Question 79

Amare was arrested and found guilty of drunk driving. She is required to pay a fine and attend AA meetings for one year. As a real estate licensee, what else MUST Amare do? Report the incident to her broker to report to the FREC Report the incident to the FREC within 30 days Report the incident to the FREC within 60 days Complete her punishment to the courts, then report the incident

Question 80

Jonathan is a blind widower whose home is valued at $110,000. He is homesteaded and under 65. His School taxes are 10.23 mils, his county taxes 6.789 mils, and his city taxes are 8.78 mils. What are his annual taxes? $1,869.55 $1,547.94 $1,777.89 $1,018.57

Question 81

A local church was seeking relief from property taxes in Florida. It is a nonprofit organization that only holds religious services and does not run a school or gymnasium. The church elders make a request from the county and city where the church is located. What is likely to happen? The county and city will make an exemption and call the property immune property. The county will make an exemption and call the property an exempt property. The county and city will not make an exception at all. The city can make an exemption, but the county cannot due to the separation of church and state.

Question 82

The real estate brokerage sign says: XYZ REALTORS®, Tom L. Smith Broker Office Hours are 8:00 a.m. until 10:00 p.m. daily Shirley Jones and Karen Smith, Sales Associates The sign has been placed where it can be easily seen on an exterior wall of the office. The sign has letters no less than one inch in height. The sign is placed in front of the primary office of XYZ. Is this an acceptable sign? Yes. The sign includes the correct size type of no less than one inch. Yes. The sign is placed correctly on an outside wall where it is clearly visible. No. The sign should have the address and phone number included. No. The sign should have "Licensed Real Estate Broker."

Question 83

Which is not a method of solving a good-faith doubt in the resolution of an escrow account dispute? Arbitration Mediation Litigation Subrogation

Answer 83

Subrogation

Question 84

Beth owns a small rental cottage in Miami. Beth’s mother, who rents an apartment nearby, is retiring. Beth wants her mother to have a secure place to live, so she decides to convey the cottage to her for the rest of her life. When her mother passes away, Beth would like to recapture ownership of the property. To complete this arrangement, Beth should do which of the following? Convey a life estate to Beth’s mother with the right of reversion to Beth. Establish a tenancy in common with Beth’s mother with a re-purchase option upon Beth’s mother’s death. Establish a joint tenancy with Beth with a remainder interest. Convey a tenancy by the entireties to Beth, pur autre vie.

Answer 84

Convey a life estate to Beth’s mother with the right of reversion to Beth.

Question 85

Which side of the Tallahassee Principal Meridian is Range 1E? North South East West

Answer 85

East

Question 86

The seller was told by the bank that she has a prepayment penalty due at the time of closing. The penalty is 6 months’ interest on the current loan balance. Based on 6% interest, her monthly payment is $569.57 principal and interest, and her loan balance was $95,000 the month before closing. Once she makes her next monthly payment, how much will she owe in prepayment penalty at the time of closing? $1,239.58 $1,987.34 $2,847.16 $5,694.33

Answer 86

$2,847.16

Question 87

Peter held a sales associate's license. He renewed his license by completing the post-licensure class on time, but he filled out the renewal form fraudulently. He was discovered by the FREC, and his license was revoked. Can Peter ever apply for a real estate license again? Peter will never, ever have a real estate license. Once it is revoked, it is permanently gone. Peter can reapply for the license immediately, but he is not likely to receive it. Peter can apply for a sales associate's license five years after the filing of the final order which revoked the license. Peter must pay an administrative fine and then he can apply for the license.

Answer 87

Peter can reapply for the license immediately, but he is not likely to receive it.

Question 88

The clause in a mortgage that permits the lender to declare the entire unpaid balance immediately due and payable upon default is called the: Judgment clause. Alienation clause. Acceleration clause. Defeasance clause.

Answer 88

Acceleration clause.

Question 89

Rudy and Helen finally paid off their home loan. They celebrate and ask their lawyer to make sure everything is recorded properly. The lawyer tells them that everything is in place. What is it that the lawyer says is recorded? A subordination agreement A substitution agreement A Deed of Trust A release of mortgage

Answer 89

A release of mortgage

Question 90

Neighbors have gotten into a quarrel over a big black walnut tree that sits on Mr. Jones' property. The tree's limbs extend over to Mr. Simpson's property, and the fruit from the tree falls everywhere, leaving a big mess. Mr. Simpson wants the limbs removed from his property. Does he have a legal reason to want this done? No. Mr. Jones is allowed to gather up the fallen fruit for his own use. No. The tree is a Fructus naturales and can grow wherever it wants. Yes. The tree is legally invading Mr. Simpson’s air space and is an encumbrance on the property. Yes. The tree is in Mr. Simpson's yard and is called an emblement.

Answer 90

Yes. The tree is legally invading Mr. Simpson’s air space and is an encumbrance on the property.

Question 91

A prospective buyer submits an offer to purchase a home for $256,000. The seller changes the price to $260,000, initials the change, signs the offer, and sends it back to the purchaser. What has occurred here? The seller has rejected the initial offer and has become the offeree of a counter offer. The seller has rejected the initial offer and has become the offeror of a counter offer. The buyer has become a vendee in the transaction. The buyer has become the assignee in the transaction.

Answer 91

he seller has rejected the initial offer and has become the offeror of a counter offer.

Question 92

The FREC receives and processes a complaint against a licensee who is selling time-share properties. Regarding the exchange of disciplinary info, FREC must: inform the Division of Florida Condominiums, Timeshares, and Mobile Homes when disciplinary action is taken by the FREC against any of its licensees. inform the Attorney General of the complaint. inform the Division of Real Estate. prosecute the individual under the judicial system.

Answer 92

inform the Division of Florida Condominiums, Timeshares, and Mobile Homes when disciplinary action is taken by the FREC against any of its licensees.

Question 93

The owner of an interior lot has received notice that the city intends to place a sidewalk across his property. The lot measures 100' x 500'. The cost of the sidewalk is $40 per linear foot, and the city will pick up 50% of the cost, with each homeowner picking up the difference. How much will this homeowner be charged in a special assessment tax to cover his cost of the sidewalk? $500 $1500 $2000 $4000

Question 94

The sales associate is showing a property. She realizes that she is not a building inspector or a physical engineer, but she wants to help her buyers see potential problems with the housing they are looking at. She should do all EXCEPT: Look for cracks of all varieties. Determine which of the patio doors are unleveled or have broken seals. Watch for sloping floors. Ignore bulges in walls.