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Florida Real Estate Exam
Owners that buy income properties as investments and depend on professionals to manage them - Absentee Owners a Value estimated based on resent sales of similar properties in the same neighborhood, not an appraisal - CMA -Comparative Market Analysis... A contractor is employed by an owner of land to build on that land to the owner's specifications - Custom Building When a contractor builds on his own land with the hope of locating a purchaser after construction has been completed - Speculative building A developer that acquires a large that aquires a large tract of land and builds a model center from which sales may be made - tract building Property management has grown as a service of real estate primarily bc of an increase of _______ _________ - Absentee Ownership The category of construction that applies when a property owner employs a contractor to build on his or her lot is called________ ___________ - Custom Building A Real Estate appraiser's fee for professional service is based on: a. a percentage of the property's gross income b. a percentage of the fair market value c. the time and difficulty of the appraisal d. a percentage of property's sales - C. the time and difficulty of the appraisal A developer contracts to build a home on a buyer's lot to the buyer's specifications. This is an example of which type of building:
a. tract b. custom c. speculative d. subdivision - b. custom A Florida Real Estate lisence is required when anyone performs a service is specified under F.S. 475 when all the following conditions are simultaneously present, unless that individual is otherwise exempt under the law: - 1. Preforming a service of real estate
- In the state of Florida
- For another
- For compensation _________ has been defined to include anything or any service of Value paid, recieved or expected to be paid or recieved. - Compensation The postlicense educational course for sales associate consists of ________ hours - 45 The continuing education requirement consists of ______ hours - 14 Florida Real estate sales associates that desire to become brokers must wait _______ ________ before taking the state exam. - one year A tenant in an apartment complex may recieve up to ______ for refferal of a new tenant for the same complex. - $ ________ ________ education must be completed during the initial sales associates's license period. - Post Licensing Owner-employers of licensed real estate sales associates are allowed to pay them: a. on a salary basis only
A Georgia Auctioneer was asked by a local real estate broker to auction a small motel in Jacksonville. The auction did not result in a sale. The Florida broker paid the auctioneer for out-of-pocket expenses, but did not pay a commission. It would be correct to say that the: a. Georgia Autioneer violated the license law b. Florida Broker did not violate the license law c. Florida broker is not subject to discipline by the Florida real estate commision d. tranaction is perfectly within the license law - a. Georgia Autioneer violated the license law The Commission's ability to impose disciplinary actions against licensees is known as ______ _________ power - quasi - judicial The rule-making authority of the FREC is called ______ _________ power - quasi - legislative Members of the Florida Real estate Commission may serve no more than _____ consecutive terms - 2 A licensee that fails to renew when required to do so will have his or her license placed on _______ ________ - involuntary Inactive Licensees that are members of the armed forces have all fees, dues and other requirements waived during their military service and for _____ months after returning to civilian life - 6 The division of Real Estate is an administrative part of the department of: a. State b. Commerce c. Banking d. Business and Professional Regulation - d. Business and Professional Regulation
which department issues real estate licenses? a. state b. Business and Professional Regulation c. Revenue d. Real Estate - b. Business and Professional Regulation Which information supplied by an applicant is Public Record? a. financial Information b. test scores c. name and address d. medical information - c. name and address The Florida Real Estate Commission held a meeting for the purpose of passing a new rule. This is an exercise of which Commission power? a. executive b. quasi-legislative c. quasi-judicial d. ministerial - b. quasi-legislative When is a request for the renewal of a license effective? a. when recieved by the department b. the day following the experation c. on the date the application is mailed d. on the date indicated on the license - a. when recieved by the department
A member of the public may select from one of 3 options when working with a broker, which are? - 1. Transaction broker
- Single Agency
- No Brokerage relationship The only brokerage that includes fiduciary duties is the __________ __________. - Single Agency A licensee assigned by a broker to act as a single agent of a buyer or seller in a nonresidential transaction is titled a ________ _________ ________. - Designated Sales Associate Brokers in a nonresidential sale are not required to use _________ _________. - Written disclosure Which relationship is not adversarial? a. arms length b. buyer beware c. caveat emptor d. fiduciary - d. fiduciary The signature or initials of a party is required by the Brokerage Relationship Disclosure Act on which Form? a. Single Agency Disclosure b. Transaction Broker Disclosure c. Consent to Transition to Transaction Broker d. Important Information Disclosure - c. Consent to Transition to Transaction Broker A Broker
a. can refuse offers on behalf of the principal b. can buy the listed property w/o consent of the principal c. must follow all legal instructions of the principal or withdrawl d. must ignore the instructions of a principal when the instructions are not in the best interests of the principal. - c. must follow all legal instructions of the principal or withdrawl Sales associates can be stockholders in a brokerage corporation but may not be _________ or _________? - officers or directors A real estate brokerage corporation must have at least ____ active broker serving as an ______. - One Officer Anyone licensed or not can be a _________ _________ in a real estate brokerage limited partnership? - limited partner Two or more brokers that share office space but do not maintain their separate status as independant brokers could be charged as being ________ ________ - Obstensable Partners The party who holds title to corporation sole property is called the _______ _______ ______ - Sole Title Holder Sales associate and broker associates must report any change of employer or address change to the DBPR within _____ days on a form prescribed for such use. - 10 For a broker to legally be paid a kickback or rebate, he or she must have performed a _______, held an appropriate _______, and all parties must _________ of the payment - Service, License, Approve
a. may retain the entire amount of escrowed funds until the dispute is resolved b. must withdrawl the amount of the commission from the escrow account c. may retain the exact amount of the disputed commission in the escrow account until the dispute is settled d. must deliver the entire amount of the escrowed funds at closing - c. may retain the exact amount of the disputed commission in the escrow account until the dispute is settled The maximum amount that can be paid from the Real Estate Recovery Fund based on the actions of a licensee is ___________ - $150, The criminal penalty for violation of F.S. 475 is typically a fine of up to _____ and/or imprisionment for no more than _______ days - $500, 60 a licensee that has had a payment made from the real estate recovery fund as a result of his or her actions will have his licensee _______ until the money is _______ plus __________ - Suspended, Repaid, Interest The range of penalties that may be imposed on a licensee by the commission for violation of law or rules includes - Denial, reprimand, fine probation, suspension and recovation......not imprisionment If a broker's actions pose an immediate serious danger to the safety and welfare of the public, what action might the Secretary of the department of Business and Professional Regulation take? a. suspended the license of the licensee for 10 years b. issue a summary suspension c. issue a cease and desist order d. place the licensee on probation - b. issue a summary suspension What action may be taken if either the Florida Real Estate Commission or the licensee disagrees with a recommended order?
a.seek adjudication b. submit the matter to mediation c. file extentions (10 days to file) d. request novations - c. file extentions (10 days to file) Cival Rights Act of 1866 - prohibits discrimination on the basis of race Federal Fair Housing Act - is the expanded on the 1866 Act and makes discrimination in the showing , negotiation, sale, rental or financing of a dwelling prohibited when based on color, handicapp, family status Redlining - don't lend in certain areas because of minorities the Cilvil rights Act prohibits discrimination on the basis of ________ - Race An owner that does not use the service of a broker and does not discriminate in advertising is _________ from the Civil Rights Act of 1968 - Exempt Lenders that refuse to make loans in certain geographic areas based on social or economics considerations are practicing __________. - redlining When all rights under a lease have been transfered to another, the process is called an ___________. - assignment Federal law governing telephone solicitations prohibits calls to residences after ______ - 9:00 pm To be enforcable, a lease longer than 1 year a. can be oral if witnessed by 2 people
Tenancy at Sufferance - They're there without permission __________ rights allow a property owner whose property borders on a river or steam the use of the water - Riparian The right to occupy specific space granted by a cooperative association is known as a _________ _________ - proprietary lease Ownership of _______ ________ _______ distinguishes ownership in a cooperative association - Shares Or Stocks Property that is exempt from execution of foreclosure to satisfy a personal debt of the head of the household can be up to one-half acre within a city or up to ______ acres outside a city. - 160 What rights does a property owner have to the use of water flowing over or through his or her land? a. riparian b. littoral c. flowage d. aquifer - a. riparian A potential purchaser of a timeshare can cancel the contract without penalty within how many days? - 10 which statement best describes a tenancy at sufferance? a. The tenant suffers from the landlord's failure to maintain the property b. the landlord suffers from the tenant's failure to pay rent c. The lease instrument is valid
d. The tenant remained in possession after expiration of a lease - d. The tenant remained in possession after expiration of a lease The full bundle of the rights in real property includes a. destruction, use and extinction b. destruction, use and enjoyment c. use, expatriation and enjoyment d. disposition, use exclusion - d. disposition, use exclusion Tests used by courts to determine whether an item is real or personal property include - intent, relationship of the parties, method of annexation, adaption The four unities required to create a joint tenancy are a. interest, survivorship, possesion and time b. possession, deed, title and time c. possession, interest, time and title d. person, use, interest and purpose - c. possession, interest, time and title Title means Ownership..... True or False - True A fence built over your property is - encroachment Title to real property passes to the grantee when the deed is ________ and ________ - Deliverd, Accepted
An _______ contract can be oral or written. - Express The seal of a Notary public, called an __________, should not be confused w/ the word "seal" as used in connection with contract law. - acknowledgement The _____ is the placement of the word seal or the letters "L.S.", locus sigilli, following the signatures of the parties. - seal A ______ _______ is defined as a contract that is wholly written and under seal (in writing and signed. - formal contract ____________ of ___________ provides time limits within which parties are allowed to bring legal action to enforse their rights under a contract. - Statue of Limitations Parol Contracts, if a contract is entirely oral , action must be brought within _____ years. - 4 Written Contracts, a contract wholly in writting may be enforcedif action is brought within _____ yrs - 5 The broker who successfully performs by locating a "willing , ready and able" buyer is said to be the "______ _______" of the sale and is the only broker entitled to a commission. - Procuring Cause the ______ _______ of a sale is what entitles a broker to commission. - Procuring Cause Which statute requires a purchase and sale contract to be in writing to be enforceable? a. Chapter 475 b. Chapter 120 c. Statute of Limitations d. Statute of Frauds - d. Statute of Frauds
__________ clause allows the lender to Foreclose on you bc you haven't been making your payments. - Acceleration __________ clause, A.K.A. due-on-sale clause, prevents a borower from transfering any interest in the morgaged property w/o permission of the lender. - Alienation _________ clause is used in mortgages on income-producing real estate. - Receivership The process of qualifying the applicant and the property is called _________ ___________, analysing risk. - mortgage underwriting An applicant is evaluated to dertermine if they can repay a loan by using 3 Criteria - 1. Credit History
- Income
- Other Assets ( real estate, cars, stocks, etc.) The buyer will assume personal responsible responsibility for repayment of the balance due on the promissory note and acknowledge existance of the mortgage is - Assumption of the mortgage Borrowers are allowed a recission period (days to back out) which is ____ days, on the refinance (home Equity loan) of a principal residence. - 3 The amount of mortgage insurance premium required on an insured FHA mortgage loan includes payment of both - Up-front mortgage insurance premium (UFMIP) and Annual Mortgage Insurane Premium (AMIP) $104,250 is the max amount of a verteran's entitlement of a VA guaranteed loan, and ____ days are required to be a Veteran. - 181 peacetime 90 military conflict The actions of the Board of Governors, called _____ _______, regulate the cost availability of credit in the US. - monetary policy
A blanket Morgage that allows for the release of a single parcel upon payment of a specified sum contains which clause? a. defeasance b. acceleration c. satisfaction d. release - d. release The Federal Housing Administration a. originates loans b. insures loans c. guarantees loans d. certifies loans - b. insures loans Construction loans are paid out in a. full at the begining of construction b. equal installments during the construction process c. full upon completion of constructions d. draws after specific stages of construction are complete - d. draws after specific stages of construction are complete If a mortgage loan payment consists of interest only, the final payment the final payment which includes the full amount borrowed is called a? - Ballon Payment The _______ normally pays for the documentary stamp tax on the deed. - Seller An earnest money deposit held in escrow is reflected on the closing statement as a?
a. credit to the buyer b. debit to the buyer c. credit to both the buyer and seller d. credit to the seller - a. credit to the buyer In the absense of any agreement between the parties, the state documentary stamp tax on the deed is paid by the? - Seller Which statement about the brokers portion of the closing statement is true? a. all double-entry items must appear there b. total reciepts minus the binder deposit equals the grand total c. Reciepts and disbursements must equal d. total expenses less the brokerage fee equals the grand total - c. Reciepts and disbursements must equal _______ __ _______applies when a higher-priced property is constructed in an area of lower-priced properties. the higher priced property will REGRESS in value toward the level of less expensive properties in the area. - Principle of regression This approach is usually the most applicable method for appraising residential properties - Comparable sales approach ________ expenses do not change w/ occupancy levels, examples property taxes and hazard insurance.
