construction
Real estate professionals provide expert knowledge concerning the transaction. What area of expertise are licensees NOT expected to possess?
farming
A sales associate has decided to concentrate on trying to obtain listings from a particular neighborhood. The associate believes this should increase knowledge of the market and improve the likelihood of success. This approach to real estate business is k
dedication
A developer has completed construction of a new sub division. All streets, electric, water and sewer installations are finished and the developer wants to deed the common elements to the county. What process would the developer use to convey the ownership
registered but not licensed
Owner-employers of real estate sales associates are
void
Sally received her initial sales associate's license on July 19, 2001 with an expiration date of March 31, 2002. She had not completed a 45 hour post license course prior to expiration. What is the statue of Sally's license?
broker associate
A person who has passed the state license examination for broker but continues to be employed by an actively licensed real estate broker is
attorney-in-fact
A person who has been given power of attorney to act for another person is called
injunction
Frank has no real estate license, but has been acting as a broker and collecting commissions for arranging sales transactions. If the department wishes to take action against this individual they may not issue a(an)
executive
The Chairperson of the Florida Real Estate Commission acting alone may exercise what powers?
imprisonment for up to 60 days
A licensee has been found to be guilty of a violation of the rules of the Real Estate Commission. Which disciplinary actions is the commission NOT allowed to impose?
2 years
A licensee failed to renew prior to expiration and became involuntary inactive. How long may this individual remain in this status?
involuntary inactive
A licensee's license expired on March 31. What is the status of the license on April 1st?
should request multiple licenses
Broker Tony is the only stockholder, director and officer of Tony Real Estate, Inc. Tony has learned Jason Realty, a registered real estate brokerage corporation located in an adjacent community, is for sale. Tony wants to purchase the corporation, retain
Both the broker and sales have a fiduciary relationship with the principal
A broker gave permission for a real estate sales associate to deal directly with the broker's principal. Which applies?
A special agent is only authorized to perform a single act on behalf of the principal
Which statement is correct concerning agency relationships?
is in violation of Florida Statute
A real estate broker who represents both parties as agent in a transaction
Broker Alice should have disclosed the details of the oral offer to Dan when she submitted Clarence's written offer of $78,000
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. Ali
The Florida real estate license law was not violated
Ted, a Michigan real estate broker, referred customer a customer to Broker Wendy in Tampa with the understanding that Ted would receive a portion of any commission earned. The customer purchased a home with Wendy's assistance. If Ted did not participate i
The office can be located in a motor home provided the letterheads and advertising of the firm properly disclose it as an office
With regard to a broker's office, which statement is INCORRECT?
A brokerage branch office may be closed and reopened at the same location during the same license period by requesting a reissue
Which statement about the real estate brokerage is true?
title companies, banks, savings and loan associations, credit unions
Which institutions are approved depositories for earnest money?
Immediately give the check to her employing broker
If sales associate Sherri receives an offer to purchase listed property which is accompanied by a post-dated check, Sherri should:
Notify the Florida Real Estate Commission in writing
A broker's initial action when entering doubt as to which person is entitled to the delivery of escrowed property should be to
Bill may retain the exact amount of the claimed commission in the escrow account but must disburse any amount above that claimed
Broker Bill is holding money in his escrow account pending closing of the sale of Henry's home to buyer Aaron. If Henry and broker Bill disagree on the amount of commission due at closing
culpable negligence
A real estate broker who operates in an excessively reckless or careless manner could be charged with
Fred cannot bring a legal action for the claimed commission against anyone other than Broker Harry
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 cor
All three partners must be licensed as active brokers
Three individuals form a brokerage partnership. If each of the partner's intends to provide real estate services to others, which statement would be correct?
joint venture
What type of relationship has probably been formed if two or more parties agree to combine their efforts for a single business transaction?
corporation for profit
A business known as the XYZ company is legally formed as a
At least one officer must be an active broker
Which statement is correct concerning a corporation registered to broker real estate?
All licenses within the corporation are involuntary inactive
Sunnydale Real Estate, Inc., a real estate brokerage corporation, has had its registration revoked by action of the Florida Real Estate Commission. Concerning the licenses of those licensed with the corporation, which statement is true?
limited partnership
Which business organization may be registered to a broker real estate?
$5,000 and imprisonment for up to 5 years
An unlicensed individual has been found guilty of operating as a real estate broker in a criminal proceeding. The maximum penalty that may be imposed for this activity is a fine of up to
The applicant must be notified in writing of the reason for the denial and advised of the right to request a formal hearing.
An applicant for a real estate license has been denied by the Department of Business and Professional Regulation. Which statement is correct concerning this denial?
Issue a Notice of Noncompliance
An investigator for the Department of Business and Professional Regulation has discovered a minor infraction of Commission rules. What action would usually be appropriate?
File a report with the Department of Business and Professional Regulation
An investigator for the Department of Professional Regulation has been assigned to conduct an investigation based on a complaint filed against a licensee. What is the investigator allowed to do in connection with this matter?
file a petition for review with the district court of appeal
To appeal a final order of the Florida Real Estate Commission a licensee's initial action would be to
asking the administrative law judge to subpoena the witness
During a formal hearing being held as the result of an administrative complaint, a broker may seek testimony from a witness by
fines and fees paid by licensees
The money in the Real Estate Recovery is obtained from
$50,000
A broker defrauded three customers in a real estate transaction. The court rendered a single judgement against the broker in the amount of $55,000. If the broker could not satisfy any portion of the judgement from personal assets, what is the most that th
blockbusting
The illegal practice of inducing homeowners to list or sell their property by telling them that minorities are moving into their neighborhood is called
Owners of existing properties must make all necessary modifications of their properties to bring them into compliance without regard to the cost of such modifications
Which statement is INCORRECT with respect to the Americans with Disabilities Act?
landlord posts a surety bond
A landlord may commingle a tenant's security deposits with other business funds if the
gross
In which type of lease does the tenant pay a fixed rent while the lessor pays all real estate taxes, insurance, and maintenance?
assignment
Legal rights may be transferred from one person to another by a(an)
real property
Which term refers to the physical land and improvements as well as intangible interests and rights?
Tenancy in common
Three persons own a parcel of property with equal rights of use and possession. They have equal interests and acquired their interests by the same or different deeds. What type of ownership did they acquire?
A divorce terminates the estate and a tenancy in common
Which statement is correct concerning a property held in an estate by the entireties?
for years
A written agreement creating a non-freehold estate in real property that provides for occupancy of the property for a special time period is a tenancy
Provides financial protection against losses sustained as the result of a defective title
Title insurance
a quitclaim deed
A defect in title to real property may be cured by the use of
eminent domain
The city of Happy Acres 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?
point of beginning
The primary reference point in a metes and bounds legal description of real estate is called the
a township contains 6 square miles
Which statement about legal descriptions is INCORRECT?
8
In a township, the section that is two sections west of section 10 is section
implied
What type of contract has been created if some of the terms and conditions must be inferred from the acts or conduct of the parties?
offer and acceptance must be communicated by each party to the other
In order to create a valid real estate contract
limitations
Which statue stipulates the time periods during which a party may sue for the enforcement of a contract?
option contract
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 specified time period, what type of agreement has been created
mortgagor
In a lean theory state, title to mortgaged real property is held by the
promissory note
The amount of the mortgage loan, the interest rate, loan term and repayment schedule is specified in the
10.75%
If a mortgage loan is based on an interest rate of 10% per annum and the lender charges 6 discount points, the effective rate of interest would be approximately
equity of redemption
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. This right is called the
The Real Estate Settlement Procedures Act
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?
the loan may be prepaid without penalty
With regard to Federal Housing Administration Section 203(b) mortgage, the
a service related disability
What is NOT required to obtain a Veteran's Administration loan?
changing the discount rate
The least effective method employed by the Federal Reserve System to alter the cost and availability of credit is
debits
Expenses owed by a buyer or seller to third parties are entered on a closing statement as
The seller usually provides either an abstractive title or title insurance as evidence of merchantable title.
Which statement pertaining to closing a real estate transaction is correct?
title insurance
On a closing statement, which is NOT prorated?
The amount received in a transaction
As used by an appraiser, the term "price" refers to
principal of substitution
The concept that states 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 the
functional obsolescence
An over-improved property suffers from
greater flexibility in building design
A buyer is considering the purchase of a corner lot on which to build a new home. In weighing its advantages and disadvantages, which characteristic might be seen as advantage of such a location
gable
What type of common residential roof style has been known to lift off during hurricanes and tornados and is required to have substantial anchoring to avoid the problem?
see if the wall thermostat has an emergency heat setting
One way to determine if a home is equipped with a heat pump is
economic soundness
The most important factor underlying investment decisions is
liquidation value
A business that is failing and NOT expected to to continue would best be valued using which appraisal approach?
going concern
Which concept of value pertains to appraisals of profitable business enterprises or opportunities
estimate a budget
The city of Sunflower wants to establish a property tax rate for the coming year. What is the first step that must be taken?
John's taxes will be higher than Mary's because the limitation on taxes created by theSave Our Homes Act will be eliminated.
John recently purchased a home from Mary. Mary had owned and lived in the home for several years and had qualified for and filed for all allowable tax exemptions. Which statement is true?
add value to the property
Special assessment liens
mortgage interest and real property taxes
A homeowner filing an itemization tax return may deduct
product
The four factors of production do NOT include
the vacancy rate
A good indicator of the relationship between supply and demand for residential real property in an area is
The real estate market is local in nature
which statement about the real estate market is correct?
the land and improvements
The highest and best use of a parcel of real estate is the legal and possible use that generates the greatest return on
service
The local planning Commission is reviewing an economic base analysis of the community. The commission notes there are ten businesses whose payroll costs are met with dollars generated from within the community. How are these employers classified in the an
residential
What type of zoning is based on density
Zero lot line homes are not permitted in an area zoned PUD
A buyer is considering the purchase of a home located in an area zoned PUD. Which statement is INCORRECT concerning this zoning?
4,162.50
Bill ones a home which he has rented to a tenant on a one-year lease. It is assessed for 185,000. If the tax rate is 22.5 mills, what is the amount of Bills property tax?
41%
What is the operating expense ratio of a property that has an effective gross income of $62,000 and a net operating income of $36,580?
109
A residence recently sold for 120,000 that was rented for $1,100 per month. What is the Gross Rent Multiplier?
87,300
An appraiser has selected a comparable sale that recently sold for $86,000 for inclusion in an appraisal. The comparable 3 bedrooms, 1 bath and fireplace. The subject has 3 bedrooms, 2 baths and no fireplace. Analysis by the appraiser indicates a bathroom
$19,460.77
A $20,000 mortgage loan was originated at an interest rate of 8.5% for a term of 5 years. If each monthly payment was $410.33, what was the principal balance of the loan after the second monthly payment?
$1,424.50
A property that sold for $203,500 was financed with a new mortgage loan of $162,800. What amount must be charged for documentary stamps taxes on the deed?
$337.10, debit seller, credit buyer
A residence that is rented is being sold with a closing on the 12th of March. The rent which is due and payable on the first of each month is $550. If the day of closing belongs to the seller, what is the amount of the proration and how will it be entered
$133,000
Charlie wants to net a minimum of $120,000 from the sale of his home. If the closing costs are expected to be $2,360 and his broker charges an 8% sales commission, Charlie's home must sell for:
1,320 feet
A parcel of property measures 330 feet along the highway and contains 10 acres. What is the depth of the tract?
2.5
How many acres are contained in the NE 1/4 of the NE 1/4 of the NW 1/4 of the SW 1/4 of Section 31
The amount received in a transaction
As used by an appraiser, the term "price" refers to
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