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FLORIDA REAL ESTATE FINAL EXAM
2024 | ALL 145 QUESTIONS AND
CORRECT ANSWERS | ALREADY
GRADED A+ | LATEST UPDATE
Which is NOT an essential requirement of a valid deed? A. delivery of the deed B. legal description in the deed C. signature of a competent grantee D. Signatures of 2 witnesses ------CORRECT ANSWER---------------C. Signature of a competent grantee What are the 4 requirements for a valid deed? ------CORRECT ANSWER---------------1. must be in writing
- witnessed by two people
- Signed by a competent Grantor
- Voluntarily delivered Does a deed have to be notarized and recorded? ------CORRECT ANSWER--------------- No The date of execution is contained in which section of a deed? ------CORRECT ANSWER---------------Premises Which clause in a warranty deed indicates the type and duration of estate being conveyed? ------CORRECT ANSWER---------------Habendum What are the 4 types of deeds? ------CORRECT ANSWER---------------1. General Warranty Deed
- Special Warranty Deed
- Bargain and Sale Deed
- Quitclaim Deed
A general warranty deed A. assures clear title B. contains a special warranty C. contains a warranty forever D. insures clear title ------CORRECT ANSWER---------------C. True or False. The seizin clause in a warranty deed is a promise that the Grantor owns the property and has the right to convey the title ------CORRECT ANSWER--------------- True If ABC Corp gives a warranty of title only against the acts of the grantor and its legal representatives, it is what kind of Deed? A. Corporate Warranty B. General Warranty C. representative D. Special Warranty ------CORRECT ANSWER---------------D. Regarding a Quit Claim deed, which statement is false. A. The deed contains no covenants or warranty in the title B. The deed provides the grantor the best assurance of no future liability C. The grantor may convey title by this type of deed if the contract does not specify a different instrument D. The instrument is used primarily to remove clouds on a title ------CORRECT ANSWER---------------C. What are the 4 Government Restrictions on ownership? ------CORRECT ANSWER------- --------PETE P = Police Power E = Eminent Domain T = Taxation E - Escheat
Name the 5 types of leases? ------CORRECT ANSWER---------------1. Gross lease - tenant pays a fixed rent and the landlord pays operating expenses.
- Net lease - the commercial tenant pays a fixed rent PLUS all or part of the operating expenses such as property taxes, hazard insurance, maintenance and utilities). Most common for office buildings.
- Percentage lease - the commercial tenant pays rent based on a percentage of the gross retail sales. Most common for shopping centers
- Variable lease - the tenant pays rent that will vary based on the Consumer Price Index (CPI)
- Ground lease - tenant leases land and pays the landlord for the use of the ground Can a tenant be kicked out if the building is sold? ------CORRECT ANSWER--------------- No. the security deposit and rent must be transferred to new owner. What is a lien? ------CORRECT ANSWER---------------A claim against a property for a debt What are the 2 types of liens? ------CORRECT ANSWER---------------1. Voluntary - created with owners consent ie mortgage lien, vendor's lien
- Involuntary - created w/o owners consent ie property tax lien, construction lien, judgment lien Which is an example of a voluntary lien? A. construction B. special assessment C. mortgage D. tax certificate ------CORRECT ANSWER---------------C. A Vendor's lien is an example of A. general lien B. involuntary lien C. lien against the purchaser D. specific lien - -----CORRECT ANSWER---------------D. Specific lien - affects only the specific property
What is opposite of North 9 degrees East? ------CORRECT ANSWER---------------South 9 degrees West Which parcel of land contains exactly 4 acres? A. 330' x 396' B. 330' x 462' C. 400 x 4.356' D. 528' x 330' ------CORRECT ANSWER---------------D. (528 x 330 = 174,240 divided by 43,560 = 4) Starting at the SE corner of a section thence West 660 ft to a point, thence North 330 ft to a point, thence East 660 ft to a point and thence to the point of beginning. This tract contains how many acres? A. 2 B. 3 C. 4 D. 5 ------CORRECT ANSWER---------------... which tract of land has a perimeter of 834.84 linear feet? A. 100.00' x 834.84' B. 100.00' x 417.42' C. 200.84' x 215.84' D. 208.71' x 208.71' ------CORRECT ANSWER---------------D. (208.71 + 208.71 + 208.
- 208.71 = 834.84) Before Tax Cash Flow is what? ------CORRECT ANSWER---------------net operating income minus debt service "Current market value less mortgage debt" describes what term? ------CORRECT ANSWER---------------equity Which is NOT a benefit of investing in real estate?
B. regulated by FREC and the DBPR C. segmented into submarkets D. slow to adjust to changes in supply and demand ------CORRECT ANSWER------------- --B. regulated by FREC and the DBPR The price of RE increases. Which will likely occur? A. RE rental rates will increase B. RE sales will not be affected. C. The demand for RE will increase D. The interest rate will decrease ------CORRECT ANSWER---------------A. RE rental rates will increase Which variable influences the supply of new real estate? A. availability and cost of construction financing B. income of consumers C. mortgage credit D. population ------CORRECT ANSWER---------------A. availability and cost of construction financing There is an excess supply of housing in a RE market. The area can best be described as A. builder's market B. buyer's market C. broker's market D. seller's market ------CORRECT ANSWER---------------B. buyers market The planning commission does NOT have delegated final authority for A. sign control B. site plan approval C. subdivision plan approval D. zoning variances ------CORRECT ANSWER---------------D. zoning variances Which would be classified as a service industry? A. branch office or credit union B. coffee roasting plant C. computer manufacturing plant
D. military base ------CORRECT ANSWER---------------A. branch office or credit union A paper mill that is a major employer of a particular place is an example of what type of industry? ------CORRECT ANSWER---------------Base industry (they bring people to an area while the service industry serves them once they get there) Zoning Ordinances A. are adopted by the state legislature B. regulate building construction C. regulate land development D. segment the community into districts based on land use ------CORRECT ANSWER--- ------------D. segment the community into districts based on land use Zoning regulations require a 15' setback for all building structures that front Captital St. There are no other setback requirements. A particular lot on Capital St. is 190' x 190'. What are the dimensions of the lot on which a building may be constructed? A. 175' x 175' B. 175' x 190' C. 190' x 175' D. 190' x 190' ------CORRECT ANSWER---------------C. 190' x 175' In residential areas, the primary aim of the different zoning districts is to regulate A. density B. developers C. height of improvements D. highest and best use of the land ------CORRECT ANSWER---------------A. density A provision in a zoning ordinance creates an undue hardship on a property owner. The owner did not cause the hardship. The Zoning Board of Adjustment is authorized to A. Amend that provision of the ordinance B. classify this as a nonconforming use C. grant a special exception D. issue a variance ------CORRECT ANSWER---------------D. issue a variance
What is exempt from Real Estate licensure under Chapter 475? ------CORRECT ANSWER---------------1. Straight Salary.
- A person who sells cemetery lots for a commission. 3. Court jurisdiction.
- Renting of a mobil home lot in a mobil home park Other exemptions from licensure include ------CORRECT ANSWER---------------1. For Sale by Owner
- Owner of a Timeshare period who offers the property for resale.
- A leasing agent of an apt. complex if they are salaried, work in an onsite rental office and work in a leasing capacity.
- A manager of a condo and Co-op if employed for a salary and rent is for periods no greater than 1 yr.
- An Attorney-in-Fact (Power of Attorney)
- An Attorney-at-Law when acting in the scope of his or her duties as an attorney. Not receiving any compensation for a sale.
- A decedent (personal representative) when appointed by the court.
- A person selling entities licensed by the FCC (radio, TV or cable enterprises)
- A person selling personal property. A farmer is appointed by the court to appraise the farm land of a deceased neighbor. The farmer will be paid a $3000 fee for the appraisal. Is he exempt from Chapter 475? -- ----CORRECT ANSWER---------------Yes because he was appointed by the courts. A sales assoc employs an unlicensed assistant. The licensee prepares a fact sheet for all of her listings. The sales assoc instructs her assistant to drive a prospective purchaser by several listed properties. When questioned about a particular property, the assistant reads information from the fact sheet. The prospect decides to buy after the assistant showed her the interior of the last property. Have one or the other or both violated Chapter 475? ------CORRECT ANSWER---------------Both violated the license law when the assistant entered the property to show it. Under FREC rules, a Fla resident is a person who has ------CORRECT ANSWER--------- ------resided in Fla for at least 4 mos within the preceding year.
Tom intends to make application to become a Fla real estate sales associate. He must have a Social Security number, a high school diploma, be over 18, and be competent to negotiate. What is not required? ------CORRECT ANSWER---------------To be a US Citizen Mary has a 4 year degree in real estate. Mary must still attend the pre-licensing course and post-licensing education. What class is she exempt from? ------CORRECT ANSWER---------------Continuing Education If a Florida licensee becomes a non-resident of Florida, he or she must ------CORRECT ANSWER---------------notify the BPR within 10 days and file an "irrevocable consent to service" within 60 days If a real estate licensee moves to Florida from another state and wants to obtain a Fla Sales Assoc license based on Mutual Recognition, the licensee must ------CORRECT ANSWER---------------complete the 63-hour sales assoc pre-licensing course and pass the Fla license exam. To obtain a broker's license, the applicant must have ------CORRECT ANSWER----------- ----1. Satisfactorily completed the 72 hr broker course.
- been an Active Sales Assoc for at least 24 months. What information is required to be disclosed on an application for RE licensure? ------ CORRECT ANSWER---------------1. If you've ever been convicted of a crime.
- Entered a plea of nolo contendere, regardless of adjudicaton.
- Any violation of the law (except traffic violations, speeding tickets, etc) What does NOT have to be disclosed on an application for RE licensure? ------ CORRECT ANSWER---------------Personal Bankruptcy If a developer owns 3 subdivisions in the names of 3 different entities. A sales assoc or broker assoc may be employed by the owner-developer on a commission basis to sell
What is the BPR? ------CORRECT ANSWER---------------Dept of Business and Professional Regulation Who is the Secretary of the BPR appointed by? ------CORRECT ANSWER--------------- Appointed by the Governor and confirmed by the Senate What is the purpose of Laws? ------CORRECT ANSWER---------------To protect the public What is the DRE? ------CORRECT ANSWER---------------The Division of Real Estate Who is the Director of the DRE appointed by? ------CORRECT ANSWER---------------The DRE is a division within the BPR. The Director is appointed by the Secretary of the BPR and subject to approval by the Commission What is FREC? ------CORRECT ANSWER---------------Florida Real Estate Commission What are the primary powers and duties of FREC? ------CORRECT ANSWER--------------
- Adopt Rules and Discipline Licensees who violate chapter 475. How many members does FREC consist of? ------CORRECT ANSWER--------------- 7 members: 4 must be brokers who have held a license for 5 years. 1 must be a broker assoc or sales assoc who has held a license for 2 years. 2 must be lay members who have never held a license. At least 1 member must be 60 years old. Who are the members of FREC appointed by? ------CORRECT ANSWER--------------- Appointed by the Governor and confirmed by the Senate
Are FREC members salaried employees of the BPR? ------CORRECT ANSWER---------- -----No. they are compensated $50/day when on official business FREC's Quasi Legislative Power does what? ------CORRECT ANSWER--------------- Adopts Rules FREC's Quasi Judicial Power does what? ------CORRECT ANSWER---------------DSRF - Deny, Suspend, Revoke and Fine ($5000) licensees If FREC advertises a public hearing to consider a rule change, who can go? ------ CORRECT ANSWER---------------Anyone effected by the change but NOT the general public. Can FREC impose Administrative penalties? ------CORRECT ANSWER---------------Yes Can FREC impose Criminal penalties? ------CORRECT ANSWER---------------No. they must be reported to the state attorney's office. Can FREC impose Civil penalties? ------CORRECT ANSWER---------------No. they must be imposed by a Court of Equity. These include financial damages to a plaintiff, injuries or the return of a real estate commission Can FREC order a licensee to make restitution when damaging the public? ------ CORRECT ANSWER---------------No. that would be a Civil penalty and must be imposed by a Court of Equity. What does the FREC handbook contain? ------CORRECT ANSWER---------------1. Chapter 475
- Facts Affecting Value
- Accounting for funds
- Skill, Care and Diligence
- Present all offers
- Limited Confidentiality (neutral)
- Any additional Duties Duties of "Single Agent" are ------CORRECT ANSWER---------------1. Honest and Fair
- Facts Affecting Value
- Accounting for funds
- Skill, Care and Diligence
- Present all offers
- Limited Confidentiality (neutral)
- Any additional Duties
- FLOC (full disclosure, loyalty, obediance, confidentiality) Do Transactional Brokers have Principles or Clients? ------CORRECT ANSWER----------- ----No. They have Prospects or Customers What does Caveat Emptor mean? ------CORRECT ANSWER---------------Let the Buyer Beware. Usually applied to transactions where the parties have conflicting interests. This does NOT apply to a Single Agency relationship. Is Full Disclosure required of a Transactional Broker? ------CORRECT ANSWER---------- -----No. In a No Brokerage or Single Agent relationship, written disclosure applies to whom? -----
- CORRECT ANSWER---------------Single Family Residential. Includes:
- 1-4 units
- Vacant land zoned for 1 - 4 units
- Agricultural land of 10 or less acres
- Lease-option to purchase 1-4 residential units
Ace Realty is representing the seller and the buyer as transaction broker. Assoc Henry tells the prospective buyer that he believes the seller would accept $10,000 less than the $200,000 list price. Which duty has Assoc Henry violated? ------CORRECT ANSWER---------------Limited Confidentiality An offer of $200,000 on a contract for purchase and sale has been accepted by the seller. Subsequent offers can what? ------CORRECT ANSWER---------------Be submitted until closing when the title is transferred. A Sales Assoc shows a property which the brokerage firm has listed for sale to a prospective buyer. The sales associate is considered what to the broker? ------ CORRECT ANSWER---------------A general agent of the broker When is a single agent brokerage relationship terminated? ------CORRECT ANSWER--- ------------1. Death of Principle agent
- Insanity of Principle agent
- Bankruptcy of Principle agent
- Destruction of the subject property (bldg destroyed)
- Fulfillment of the object of the employment How many years must disclosure documents be retained? ------CORRECT ANSWER---- ----------- 5 A Real Estate broker may sign a contract on behalf of a party to a transaction when he or she is an ------CORRECT ANSWER---------------Attorney-in-fact What are the 3 types of Agents? ------CORRECT ANSWER---------------1. Universal Agent - Assigned by the Principle to perform all acts that the principle can
- General Agent - Employed to handle all the affairs in a business such as a Sales Assoc or Property Manager.
- Special Agent - Limited to finding prospects, showing the property and negotiating on behalf of the principle.
A sales assoc wants to move into his own office at a location other than the broker's place of business. He is willing to pay all expenses associated with his own office and will continue to be supervised by the broker. Is this allowed? ------CORRECT ANSWER- --------------Only if the Sales Assoc works out of an office registered in the name of the broker. Can a branch office be in a temporary shelter? ------CORRECT ANSWER--------------- Only if the business records are kept there and here are sales associates assigned to that office. Otherwise, no. Release Clause ------CORRECT ANSWER---------------Blanket Mortgage Are kickbacks and Rebates allowed to a licensee? ------CORRECT ANSWER--------------
- No. They are a violation of chapter 475 UNLESS the licensee has fully advised the principal and all affected parties. Must be upfront. What are the 3 principal parts of a Corporation? ------CORRECT ANSWER---------------1. Stockholders - owners (a sales assoc may be a stockholder but NOT an officer or director)
- Directors - must be registered and licensed as a broker or be an unlicensed person altogether.
- Officers - must be registered and licensed as a broker or be an unlicensed person altogether. Can a Corporation do a BARSALE? ------CORRECT ANSWER---------------No. Only Broker Corporation's can. Is a corporation a separate legal entity from the owners of the business? ------ CORRECT ANSWER---------------Yes. A corporation is an artificial person created by law. Owners have limited liability.
How is a corporation "born"? ------CORRECT ANSWER---------------The Secretary of State charter the corporation and issues a Certificate of Incorporation (like a birth certificate) What is a foreign corporation? ------CORRECT ANSWER---------------Any corporation operating outside of Florida. They may petition the Sec of State for authorization to do business in Florida. What happens if an active broker fails to renew his license at the end of a biennial period? ------CORRECT ANSWER---------------His license, and all sales assoc, will be cancelled. All sales assoc will automatically go into Involuntary Inactive status. If there is only one active broker in an office and he/she dies, resigns or is removed, the vacancy must be filled within how many days? ------CORRECT ANSWER--------------- 14 calendar (not business) days. What is a General Partnership? ------CORRECT ANSWER---------------Where there are two or more persons who agree to engage in a business and agree to share in in the profits and losses. A broker-Realtor is a sole proprietor. He wants to use a trade name to identify his real estate brokerage business. what is the minimum requirement on the entrance sign? -----
- CORRECT ANSWER---------------Trade name, his name and the words "licensed real estate broker". What type of partnership is it when the public is deceived into believing that a partnership exists? ------CORRECT ANSWER---------------Ostensible Partnership
