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RE Final (Gold coast final) Exam
Questions with Answers Latest Update.
What type of relationship has been formed if two or more parties agree to
combine their efforts for a single business transaction? - Correct Ans: ✅✅Joint venture
A city is in need of additional land for a new school. What right would the city have to acquire the land, even over the objections of the property owner? - Correct Ans: ✅✅Eminent Domain
Which type of deed would be best to convey property from the standpoint of
the grantor? - Correct Ans: ✅✅Quitclaim
These are all remedies for breach of a real estate contact between a buyer and a seller, EXCEPT: - Correct Ans: ✅✅Claim from the Real Estate Recovery Fund
Which concept of value pertains to appraisals of profitable business
enterprises or opportunities? - Correct Ans: ✅✅Going concern
Fred, a licensed sales associate, was registered with Broker Harry when he claimed that Harry had failed to pay a sales commission due him. If Fred resigned and was employed under Broker Norman before the dispute was
resolved, which statement would be correct? - Correct Ans: ✅✅Fred cannot bring a legal action for the claimed commission against anyone other than Harry.
FHA housing expense ratio and total obligations ratios, correspondingly,
cannot exceed which of the following limits? - Correct Ans: ✅✅31% and 43%
What is the price of state documentary stamp tax on the deed for property that is located outside of Dade County? - Correct Ans: ✅✅0.70 cents per hundred dollars of sales price
Three sisters buy a home. They each have equal portions of possession, interest, time, and title. They decide that upon death, the survivor will
acquire their shares. What type of tenancy exists? - Correct Ans: ✅✅Joint Tenancy
Which stamp applies to a new mortgage but NOT to an assumed mortgage? - Correct Ans: ✅✅Intangible tax
Which approach to value would most likely be selected to determine the value of the County Court House? - Correct Ans: ✅✅Cost Depreciation (ojo)
Which of the following is not a primary lender? - Correct Ans: ✅✅Government National Mortgage Association
Which document specifies the amount of the mortgage loan, the interest rate, loan term, and repayment schedule? - Correct Ans: ✅✅Promissory note
a debt instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on-demand or at a specified future date.
What is a brokers proper course of action when they have listed a property
and found that the title to the property is NOT merchantable? - Correct Ans: ✅✅Immediately notify the owner regarding the condition of the title
When a loan is fully repaid, the lender will provide the mortgagor with which
document? - Correct Ans: ✅✅Letter of satisfaction
All of the following statements are true regarding a broker's office, EXCEPT: - Correct Ans: ✅✅The office can be located in a motor home provided the letterheads and advertising of the firm properly disclose it as an office.
The value of a business that is falling and not expected to continue would best be determined using which valuation method? - Correct Ans:
✅✅Liquidation value
What term refers to the illegal practice of inducing homeowners to list or sell their property by telling them that minorities are moving into their neighborhood? - Correct Ans: ✅✅Blockbusting
What is the opposite of erosion? - Correct Ans: ✅✅Accretion
What is a special assessment? - Correct Ans: ✅✅A tax levy that is used to pay for public improvements that add value to the property.
A listing broker is employed to find a purchaser and produces a full cash offer that meets the seller's terms. The seller refuses to accept the offer because he doesn't like the buyer. Which condition exists? - Correct Ans: ✅✅The
broker is entitled to compensation since he produced a buyer who met the seller's terms for sale.
Which statue stipulates the time periods during which a party may sue for
the enforcement of a contract? - Correct Ans: ✅✅Statue of Limitations
Which federal law requires that borrowers be informed of all settlement costs involved in the purchase of a home when funds are obtained from a
federally regulated lender? - Correct Ans: ✅✅Real Estate Settlement Procedures Act
In a lien theory state, who holds title to mortgaged real property? - Correct
Ans: ✅✅Mortgagor
Lien Theory State - Correct Ans: ✅✅a state where the mortgage lender has a lien on the property and the borrower has title
The concept that states that an informed buyer will pay no more for a property than the cost of acquiring another equally desirable property with
the same or equal utility is based upon which of the following? - Correct Ans: ✅✅Principle of substitution
A business known as the XYZ Company is legally formed as what type of business? - Correct Ans: ✅✅Corporation for profit.
In a township, which section is two sections west of Section 10? - Correct Ans: ✅✅ 8
What rights does an owner have whose property borders a river? - Correct
Ans: ✅✅Riparian
Which Act requires lenders to judge loan applicants on the basis of credit rating, income, expenses and assets without regard to their age, race,
religion, sex, marital status, or nationality? - Correct Ans: ✅✅Equal Credit Opportunity Act
Which statement correctly identifies the loan type with its function? - Correct Ans: ✅✅VA guarantees loans.
A landlord may commingle tenants' security deposits with other business funds under which conditions? - Correct Ans: ✅✅The landlord posts a surety bond.
Surety Bond - Correct Ans: ✅✅A guarantee that protects a business when another person or business fails to fulfill the terms of a contract between them
Which type of business organization may be registered as a real estate brokerage? - Correct Ans: ✅✅Limited partnership
Which statement about the real estate brokerage office is true? - Correct Ans: ✅✅A brokerage branch office may be closed and reopened at the same location during the same license period by requesting a reissue.
If an owner of real property gave another party the right to buy his or her property for a fixed price at any time during a specific time period, what type
of agreement was created? - Correct Ans: ✅✅Option to contract
What type of tenancy is formed by a written agreement that creates a non- freehold estate in real property providing occupancy of the property for a specific time period? - Correct Ans: ✅✅Tenancy for years
In which type of lease does the tenant pay a fixed rent while the lessor pays all the real estate taxes, insurance, and maintenance? - Correct Ans:
✅✅Gross lease
Which statement best describes a void contract? - Correct Ans: ✅✅A contract that cannot be enforced and cannot be performed under the law.
What term is used for a person who has been given power of attorney to act
for another person? - Correct Ans: ✅✅Attorney-in-fact
All of the following statements are correct regarding a Planned Unit
Development (PUD), EXCEPT: - Correct Ans: ✅✅A buyer may void a sales contract within 3 days if the required disclosure was not provided.
The Chairperson of the Florida Real Estate Commission acting alone may exercise which powers? - Correct Ans: ✅✅Executive
What should a broker's initial action be when entertaining doubt as to which person is entitled to the delivery of escrowed property? - Correct Ans:
✅✅Notify the Florida Real Estate Commission in writing
A sales contract called for a $10,000 secondary deposit to be paid by June 1st. The sales associate forgot to collect the deposit. Which statement
correctly applies to this situation? - Correct Ans: ✅✅The sales associates may be charged with culpable negligence
Which item will show as a credit to the buyer on a closing statement? - Correct Ans: ✅✅Binder deposit
When estimating depreciation of an improvement, which age will the appraiser use? - Correct Ans: ✅✅Effective age
Which statement is correct concerning a corporation registered to broker real estate? - Correct Ans: ✅✅At least one officer must be an active broker.
Sally received her initial sales associate license on July 19, 2020 with an expiration date of March 31, 2022. What is the status of her license if she does not complete a 45-hour post-license course prior to expiration? - Correct Ans: ✅✅Void
After defaulting on mortgage payments but prior to foreclosure, the mortgagor has the right to redeem his or her interest in the mortgaged property by paying the money owed the lender. What term is used for this
right? - Correct Ans: ✅✅Equity of redemption
A real estate licensee working with a seller in limited representation received a telephone call from another real estate agent working with the buyer. The agent's opening comments state the following. "Hi, this is Robert Dawson, with East Side Realty. I am standing in front of a house that has your name on the listing sign and I am with my principal. I have a few questions to ask you about the property." Based on the buyer's agent's comment, what should the
licensee working with the seller conclude? - Correct Ans: ✅✅The agent representing the buyer is in a single agency relationship.
Clarence made a written offer of $78,000 on Dan's home that was listed with Broker Alice. Before the offer could be presented, Larry arrived at Alice's office and made an offer of $82,000 on the same property but did not give an earnest money deposit. Alice promised Larry that she would submit the oral offer but only presented the written offer to Dan. Which statement is correct? - Correct Ans: ✅✅Broker Alice should have disclosed the details of the oral offer of Dan when she submitted Clarence's written offer of $78,000.
Which institutions in the state of Florida are approved depositories for earnest money? - Correct Ans: ✅✅Title companies, banks, savings and loan associations, credit unions.
Which term refers to the physical land and improvements as well as
intangible ownership interest and rights? - Correct Ans: ✅✅Real property
These are all requirements for valid instruments of deed conveyance: -
Correct Ans: ✅✅ • Consideration
**- Voluntary delivery and acceptance
- Description of the property**
Which statement is correct concerning agency relationship? - Correct Ans:
✅✅A special agent is only authorized to perform single act on behalf of the principal
Frank has no real estate license, but has been acting as a broker and collecting
Which statements correctly applies to a real estate broker who represents
both parties as a single agent in transaction? - Correct Ans: ✅✅The broker is in violation of Florida Statue 475
Francine has been licensed as a sales associate for 3 years. She now wishes to obtain her broker license. Which is correct regarding broker licensing requirements? - Correct Ans: ✅✅Francine most complete the 72 hour broker pre license course and have been active for at least 24 months within the past 5 years.
What is required in order to create a valid real estate sales contract? - Correct Ans: ✅✅Offer and acceptance must be communicated by each party to the other.
Buyer and Seller have entered into a contract for the sale of a duplex. The buyer defaults on the contract and the seller claims the escrow deposit per
contractual agreement. What term applies to this situation? - Correct Ans: ✅✅Liquidated damages
How is prepaid interest on a purchase money mortgage shown on a closing statement? - Correct Ans: ✅✅Debit buyer, credit seller
A homeowner defaults on the mortgage. The homeowner owes the lender $200,000. The home is sold at public auction and the sale produces $240,000. Where does the surplus amount of the. alcance due on the promissory note
go? - Correct Ans: ✅✅To the mortgagor (homeowner)
Which lines are correctly identified as general or specific? - Correct Ans:
✅✅Specific liens: Construction lien, Mortgage lien
A broker gave permission for a real estate sales associate to deal directly with the
broker's principal. Which statement correctly applies? - Correct Ans:
✅✅Both the broker and sales associate have a fiduciary relationship with the principal
fiduciary relationship - Correct Ans: ✅✅A relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.
What is the name for the number that is assigned by the county property appraiser's office to each individual property? - Correct Ans: ✅✅Assessor's parcel number
Property taxes are $4,200 per year. The closing is April 20th and the closing day is charged to the buyer. Using the 365-day method, how will the proration of property taxes show on the closing statement? - Correct Ans:
✅✅?
