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Post-Licensing Exam 2025-2026 Verified Correct
Answers
Only in residential transactions. At time of entering a listing agreement. Before showing residential property. - correct answer>>When is a disclosure required? 4 units or fewer or agricultural property of 10 acres or less. - correct answer>>Define residential property. 5 years - correct answer>>How long must copies of disclosure notices be kept? When holding an open house or model home, Executing a contractual offer or agreement for representation, or Negotiating price, terms or conditions of a potential sale. When holding an open house is most important for the exam. - correct answer>>When is a disclosure notice NOT required? When representing as a transaction broker. A transaction broker may not reveal to either party that seller might accept a price less than asking price, buyer might accept a price greater than the price offered, motivation of any party for selling or buying, or that seller or buyer will agree to financing terms other than those offered. - correct answer>>Explain limited confidentiality & when it applies. Single Agent Relationship - correct answer>>In which brokerage relationship can the principal be held responsible for the agents actions? All known facts that materially affect the value of residential real property and are not readily observable. - correct answer>>What must be disclosed by a Single Agent? Consent to Transition - correct answer>>Which notices must be signed by the principal for it to be effective? A broker legally appoints one sales associate to act as an agent for the buyer or lesser and another sales associate to act as an agent for the seller or lessor. Only used in a non-residential transaction. Buyers and sellers MUST have personal assets of at least $ million, sign disclosures that their assets meet this status and request this representation status. - correct answer>>Describe Designated Sales Associate. The Homeowners Association Disclosure.
If not provided, contract is voidable by buyer by delivering written notice within 3 days after receipt of the disclosure or prior to closing, whichever occurs first. These documents note if you must be a member, restrictive covenant's, assessment fees and land-use information. - correct answer>>When purchasing property subject to an HOA, what must be disclosed before the buyer signs the contract? If they disturb paint on properties build before 1978, they need to be certified & follow specific work practices. To be certified they must complete an 8 hour course offered by an accredited training provider. - correct answer>>What is the requirements for contractors regarding lead-based paint? Buyer needs to make intensive research, usually in form of a Phase 1 environmental audit. The buyer pays for this environmental audit. - correct answer>>What are the requirements under CERCLA, to claim the innocent landowner defense?
- Can call an existing business relationship, for up to 18 months after customers last purchase, delivery date, or purchase.
- Can call up to 3 months after a customer makes an inquiry or submits and application to the company, - correct answer>>Know what a telemarketer can and cannot do under the Do Not Call Registery Someone you have an established business relationship (EBR) with or written consent. - correct answer>>Junk Fax Protection Act allows faxed to be sent to whom? Identify the fax numbers in which it relates and be sent to the telephone number, fax number, website address, or email address identified on the fax advertisement. Also information on how they can be removed from the list. - correct answer>>Under the Junk Fax Protection Act, what must be in an "opt out" request? The real senders email address, an opt out option, identify that it's an ad and senders valid physical postal address - correct answer>>What is required by the CAN-SPAM Act 15% for taxpayers in 30-35% tax bracket. - correct answer>>What is the maximum capital gains tax rate? Conspiracy to set prices is most important for exam. Also splitting up competitive market areas, conspiring to boycott cut-rate brokers or otherwise interfering with the business and requiring a minimum commission before allowing listings to be circulated in any service, such as through a multiple listing service. - correct answer>>Describe prohibited anti-trust activities.
A word or expression industry related. Avoid them. - correct answer>>Describe the characteristics of jargon. Pyramiding, leaning back in the chair with hands joined between the head. - correct answer>>Describe body language that says, "I'm the boss." Parroting which is repeating customers words exactly. Paraphrasing is rephrasing what the customer said. And mirroring which is displaying the same body language and matching. Mirroring is less obvious and not copying. - correct answer>>Describe ways to test understanding and to reflect non-verbally. Tools for the business, such as completing contracts properly, knowing sellers and buyers cost, and understanding the comparative market analysis. They include, state and federal laws, preparing a comparative market analysis, preparing a listing contract, qualifying a buyer, understanding financing plans, preparing a sales contact, reviewing closing statements and analyzing real estate investments. Filling out any form is technical knowledge. - correct answer>>What makes up technical knowledge. Business planning, prospecting for listings, making an effective listing presentation, prospecting for buyers and showing and selling property. - correct answer>>The areas of marketing knowledge include. Estimate cost at about 35%. - correct answer>>What is the best way to establish a goal? A broker has to pay any commission portion. A sales associate may pay the license personal assistant for nonselling activities but may not compensate a personal assistant for performance of the brokerage activities that require a license. - correct answer>>How should a licensed personal assistant be paid? Complete routine office activities such as mass mailings, writing ads and preparing comparative market analysis. - correct answer>>What can an unlicensed personal assistant do? They are paid by salary and may not be paid commissions. An unlicensed individual may not negotiate or agree to any commission split or referral fee. - correct answer>>How can an unlicensed personal assistant be paid? A seller who is not motivated. A seller who suggest to break the law. A seller not in your service area. A seller not in your preferred price range. A property that doesn't show
favorably. Owners who are rude and demanding. - correct answer>>Identify the listings that you may not want. Sphere of influence - correct answer>>What is the best source of listings and sales for a new sales associate? It is almost always pricing. Also market conditions, property condition, listing period too short, an uncooperative owner or tenant and poor marketing. - correct answer>>Why do most listings expire? Middle to upper price range, high turnover, increasing property values, not currently being farmed by another sales associate. - correct answer>>Describe how to select a farm area.
- correct answer>>Calculate projected commissions for a farm area.
- correct answer>>Calculate a subdivision turnover index. Classified ads or on a website like craigslist. - correct answer>>Where can a sales associate find FSBO's? Numbers, consistency, organization. - correct answer>>List the three keys to prospecting success. Close friends and family, friends, customers, acquaintances, targeted strangers. - correct answer>>Who should be in a leads database?
- correct answer>>Calculate contact an income ratios. Be consistent and call at the best time of day. - correct answer>>Explain "consistency" in making contacts. Social media - correct answer>>What is the term for sharing information in a virtual community? Facebook - correct answer>>What is the most important social media site? A web log. A written article posted on a website. It can attract buyers and sellers to your website. - correct answer>>What is the use of a blog?
Subtract everything from the sales price. - correct answer>>Be able to calculate seller proceeds. Because buyers don't know about the good features and they might just drive by. - correct answer>>Why should a for sale by owner seller care about curb appeal? Seller reserves the right to sell without paying anyone. They give the listing to as many brokerages as they want. Any listing contract is an open listing unless specific wording creates a different type. - correct answer>>Describe an open listing. Seller reserves the right to sell without paying commission to buyers not introduced through brokers. - correct answer>>Describe an exclusive agency listing. The broker is due the commission regardless of who sells the property. - correct answer>>Describe an exclusive right of sale. The exposure to lawsuits from procuring cause between the broker and the seller. - correct answer>>What is the common problem with an exclusive agency an open listing. The sign invites the buyer to exclude the broker to get a better price. If the broker takes the listing under an exclusive Agency, the broker should get the owners agreement to remove the sign. Another problem the broker faces is the possibility of the owners advertising a lower price. The broker likely will lose the buyer if the buyer sees the owners ad. The broker and owner should quote the same price. - correct answer>>What is a problem with an exclusive agency listing regarding signs. If it's in writing, it must include a definite expiration date, a description of the property, the price and terms, the amount of commission due up on the brokers performance, and the signature of the parties. It may not have wording that makes its self renewing or the listing will be void. - correct answer>>What are the requirements of a valid listing contract. Public records or owner deed. - correct answer>>Where can reliable legal descriptions be found? Conditional termination. The seller must sign a withdrawal agreement and pay the broker its direct expenses and a specified cancellation fee. If the seller contracts to transfer the property during the protection, the broker may cancel the termination and
collect the balance of the commission due. - correct answer>>What happens if the seller withdraws the listing before the listing contract has expired? The first step is mediation. Then arbitration or a lawsuit. - correct answer>>What role does mediation play if a dispute arises regarding an aspect of the listing contract? Warm and cozy, without personality. Decorating is not staging. - correct answer>>What should a staged homes look like?
- correct answer>>Calculate what the equivalent number of listings would be on an inventory of listings were one or more has less than 100% chance of selling. To get an appointment. - correct answer>>What is the objective when handling an incoming ad call? A list of properties similar to those advertised. Helps to get an appointment and find a buyer the right property. - correct answer>>What is the purpose of a fallback list? Ad calls want to know where it is. Sign calls want to know the price. - correct answer>>Why are sign calls different from ad calls? Through IDX. Internet data exchange. - correct answer>>How do you brokers display their listings on their website? What features do they want in a home? How quickly do they need to move? Must they sell their current home? If leasing, when does the lease expire? Have they spoken to a lender? Is there a specific area? The most important for the exam is, how quickly do they need to move? - correct answer>>What are the questions that a sales associate should ask to understand a buyers housing objectives and needs? Make a listing presentation. - correct answer>>What should a sales associate do if the buyer has a house to sell? Preapproval or prequalification. Preapproval is the best, and stronger for an offer. The buyer has been interviewed, credit report has been reviewed, and income has been verified. - correct answer>>How can the sales associate determine that the buyer is able to financially purchase a property?
contract should be obtained at closing. Also everyone who is named must sign. - correct answer>>Understand which buyers and sellers should sign the contract. Sufficiency test. A classic test of the sufficiency of the legal description is whether a survey surveyor can locate the property by reference to the description used. - correct answer>>What should be done if a property is exact description is not know when the contract is executed? For the exam know; County, condo and unit. And know that number of acres is not required. - correct answer>>What are the minimum description and requirements for platted subdivision's or condominiums? When a detailed inventory with values is disclosed, sales tax must be paid. - correct answer>>When might Florida sales tax be charged on personal property sold with real property? A contingency makes a contract voidable. - correct answer>>Describe the effect of a contingency. Buyer gets deposit back or sues for specific performance or sues to force the sale of the property. - correct answer>>Explain what may happen to a seller who defaults on a contract. Hand written portions supersede preprinted. - correct answer>>When there is a conflict in the terms of the contract and the conflict in terms is handwritten, what is the likely outcome? A contract between a property owner, the optionor, and another, the optionee, in which the optionee, for a consideration, has the right, but not the obligation, to purchase or lease the property at a specified price during a designated time period. - correct answer>>Describe an option contract and any obligation of the optionor or optionee. It must be given to the buyer within three days of their application. Tolerances for accuracy, only principal and interest shown, not total payments, total settlement cost shown, but not total cash to close. For the exam remember that it must be given within three days of their application and tolerances for accuracy. - correct answer>>Know the changes to the good faith estimate effective January 1, 2010.
- correct answer>>Be able to calculate how much the buyer must bring to closing. Suggest filling out the paperwork. - correct answer>>What is a proper response to buyers who want to sleep on a decision? Present a hand written note from the buyers. - correct answer>>How can an associate get a seller to favor his buyers when there are multiple offers? Phone the lister for an appointment to present the offer to the seller together. And associate cannot go to another agents seller to present the offer alone. - correct answer>>What is the proper way to present an offer?
- correct answer>>Be able to calculate when a prospective mortgagor will be able to break even when paying points to get a lower interest rate.
- correct answer>>Be able to calculate PITI. 15 year mortgage, the interest rates are slightly lower and pays off faster. A biweekly mortgage, the borrower pays half the monthly payment every two weeks, 26 half payments, 13 payments per year. - correct answer>>Define a 15 year mortgage and biweekly mortgage. Index plus margin. Just add the 2 together. - correct answer>>How is the calculated rate in an adjustable mortgage computed. FHA is limited to 1% interest each year, with a lifetime cap of 5%. Conventional is usually 2% each year, with a lifetime cap of 6%. - correct answer>>Compare FHA and Conventional caps on ARM's. It must be terminated when equity reaches 22% of the original value. This applies for loans made after July 29, 1999. - correct answer>>For conventional loans, when does PMI automatically terminate? It requires fair consideration of consumer loan applications for women, minorities, those receiving public assistance, age, etc. For the exam know what was added, which is woman, marital status and age. - correct answer>>What is the purpose of equal credit opportunity act.
answer>>Who should participate in a pre closing walk through inspection? And what is it meant to accomplish? Review closing paperwork 1 day before closing with buyer and seller. Match HUD-1 with borrower GFE from lender. Ensure binder check is prepared to take to closing. - correct answer>>What final steps should a licensee accomplish in the remaining days just prior to closing to assure the closing goes smoothly? Annual cost divided by 365 days equals daily rate. Number of seller days times daily taxes. Debit to seller. Credit to buyer. Remember the day of closing belongs to the buyer. - correct answer>>Know how to pro-rate taxes. Collected from the buyer from the day of closing until the end of the month. Loan amount times the interest rate equals annual interest. Annual interest divided by 365 equals the daily rate. Daily rate times the number of buyer days. - correct answer>>Calculate pre paid interest. If putting less that 20% down. - correct answer>>When is PMI required? Sales price divided by 100. Round up. That number times 0.70. - correct answer>>Compute documentary stamp taxes on deeds. If the loan is more than 80% of value, lender wants an Occupancy Affidavit. - correct answer>>What is the purpose of the buyers affidavit? Owners affidavit of ownership and no lien affidavit. - correct answer>>What is the purpose of a sellers affidavit? Deliver commission check the broker, pick up sign and lock box, thank you letter to buyer or seller, follow up visit, remove from MLS. - correct answer>>What are the post closing duties? Seasonal variations, cyclic fluctuations and random changes. - correct answer>>What are the 3 basic categories into which changes and trends in the general economy are classified? They recur at regular intervals at least once per year. - correct answer>>Explain seasonal variations.
In cyclic fluctuations; expansion is when production increases, recession is when there are 2 successive quarters of decline, contraction is when people start pulling back and layoffs happen and recovery is when there are 2 successive quarters of increase. - correct answer>>What are the phases of the general business cycle?
- boundaries and land usage 2) transportation and utilities 3) economy 4) supply and demand 5) neighborhood amenities and features. - correct answer>>Name the five major factors to be considered in a neighborhood market analysis. Subtract vacant and collections to get potential gross income. And add other income to get potential gross income. - correct answer>>How to calculate effective gross income. Fixed is property taxes and hazard insurance. And variable is maintenance, utilities and management fees. - correct answer>>What are the different types of operating expenses? Reserves are for replacements, for future expenses. It is not a current cash outlay but an annual charge that should account for future expenses. - correct answer>>What are reserves? Actual repairs to keep equipment, utilities and amenities functioning. Examples are repairing a leaky faucet or broken air conditioner. - correct answer>>Describe corrective maintenance and give examples. Designate a few specific apartments in the building that are available currently for inspection by prospects. No more than three of each type that are ready to show. - correct answer>>What are the characteristics of a show list. Leases for more than 1 year are required to be in writing. Leases for one year or less are not required to be written. - correct answer>>When must a lease be in writing? Maintenance service request. Keep the tenant happy. - correct answer>>What issue creates the most tenant management problems and how may I be resolved?
