All of the following are services of real estate requiring a license, EXCEPT:
building
What is the most effective method of describing real property?
metes and bounds method
A real estate broker asks his sales associate to commit an illegal act. What should the sales associate do?
refuse to comply and withdraw from the relationship
What is required for a transfer of title?
two witnesses, signed and delivered
All of the following cause forfeiture of a corporation's charter, EXCEPT:
bankruptcy
All of the following are factors of production in a free enterprise system, EXCEPT:
growth
Where will a metes and bounds description always start and finish?
at the same point
A broker is in a full representation relationship with a principal. What is the name for this relationship?
single agency
Which encumbrance might cloud a title?
judgment
A licensed sales associate receives a cash binder deposit from a buyer on a parcel of land. Before the sale associate can give the deposit to the broker, the sales associate loses the deposit. Who is responsible?
broker and sales associate
What is opposite of N20*W?
S20*E
Which of the following estates involves ownership of real property?
a freehold estate
A sales associate represents a buyer in a transaction and is asked to give an opinion about the title. What may the sales associate do?
quote an opinion from a competent attorney
How does the Marketable Record Title to Real Property Act (MARTA) relate to curing defects in title?
limits the period of search required to establish valid and marketable "root of title" to at least 30 years
A broker shows a house to a prospect, making a statement that they are going to love the elementary schools. This is a(an):
acceptable statement
Which is considered to be an interest in real property?
easement
What are real estate taxes based upon?
assessed value
The Florida Real Estate Commission oversees and enforces which of the following?
state-licensing laws (FS 475)
Hewitt, a wealthy landowner, wishes to donate a large tract of land to his university alma mater. Hewit does not want to be responsible for any claims. What type of deed will Hewitt probably use?
quitclaim deed
A sales associate finds a buyer ready, willing, and able to purchase a home. The seller refuses to sell and will not pay this broker a commission. The broker does not pay the sales associate a commission. What may the sales associate do?
sue the broker
What is an abstract of title?
a history of all recorded documents concerning a property
What term is used to refer to a lien imposed on a property for nonpayment of materials or labor to improve a property?
construction lien
What must be included in real estate ads and on signs?
name of brokerage firm
What keeps a landowner in a key location position from preventing the progress of the entire community?
eminent domain
In a partnership, each partner does NOT necessarily have which of the following?
equal shares of the profits of the partnership
Mary deeds John a property for John's lifetime. Upon John's death, the property will transfer to Fred. What is Fred's interest in the property?
a remainder estate
A valid real estate sales contract requires all of the following EXCEPT:
substantial earnest money deposit
When a buyer withdraws an offer prior to it being accepted by the seller, what should the broker do?
return the deposit back to the buyer
If the grantor is insolvent, which of the following deeds would be the best from the buyer's point of view?
any deed
Due to possible problems with clear and marketable title, a broker should avoid properties owned by which type of business?
corporation sole
Which type of lien may be retroactive to an earlier date, thus taking priority over other liens?
construction liens
If you owned one section of land described as S25, T2S, R2W, what section would be two sections to the west of your section?
S27, T2s, R2W
Florida law requires that brokers place escrow deposits into an escrow account. What else is required by the law regarding that account?
the broker be a signer on the account
Which clause in a deed contains the grantor's name and legal description?
granting or premises clause
A broker listed five condos for rent on the beach in Florida. Three of the units rented for $1,000 per month, and two of the units rented for $500 per month during the season. The broker placed an ad in a Chicago newspaper, reading, "Beachfront condos for
no, as the $500 units were not available
What term is used to refer to damages that are specified in a contract?
liquidated damages
How can defects or clouds on a title be cleared?
quitclaim deed
Which action by a broker is an example of commingling?
placing escrow money into his or her personal account
How would an owner show marketable title?
title insurance
A broker followed the instructions in a FREC escrow disbursement order, but was the victim of a civil court judgement that resulted in a payment of $10,000 from Real Estate Recovery Fund. What consequence will the FREC impose?
none, FREC will take no action against the broker
Under what authority are cities and counties allowed to enact zoning ordinances?
police power
In a lien theory state, what will the borrower receive after making his or her final payment?
a letter of satisfaction
Sue Douglas wishes to open a real estate brokerage corporation, Sunshine Realty, Inc. When ordering her sign, she is required to include all of the following, EXCEPT:
the office phone number
What is a title plant?
a system of records, collected and filed by legal description
When should a broker earn commission when employed to find a purchaser?
When a signed offer from a ready, willing and able buyer is brought to the seller and terms are accepted
What type of listing allows the seller to list their home with more than one broker?
open listing
Complete the sentence. An oral lease, in excess of 1 year, may also be referred to as:
tenancy at will
What is the deadline for a broker to deposit all earnest money funds?
the close of the third business day following receipt
What happens with negative amortization?
the loan balance increases
An owner employed a broker to sell his property. The broker subsequently negotiated a contract whereby the owner agreed to sell to a buyer. The contract was long and involved. Since the amount of the deposit was equal to the amount of the commission that
share the deposit 50/50 with the seller
Which entity may insure home loans made by approved leaders?
federal housing administration (FHA)
Which of the following required in a real estate brokerage partnership?
at least one of the partners must be an active broker
If both the buyer and the seller make claims on the escrow money held by the broker, within how many days is the broker is required to notify FREC?
15
A Florida real estate licensee is permitted to draw up which of the following items?
sales contracts and the approved fill-in-the-blank residential lease
Once an offer is accepted and the escrow deposit is in the broker's account, the broker holds the deposit on behalf of which party or parties?
both buyer and seller
Which of the following required in a real estate brokerage limited partnership?
the partnership must be registered with DRE
Bob and Mary have agreed to participate in a limited number of transactions. Bob and Mary have no right to obligate or bind each other. What business relationship have they formed?
joint venture
Which form of escrow settlement procedure requires the parties to abide by an objective third party's decision after a hearing?
arbitration
All of the following are essential elements of a real estate contract, EXCEPT:
witnessed and under seal
Larry, Moe, and Curly form a partnership by oral agreement. Moe and Curly buy a property and sign a contract under the partnership name. Which applies?
all three are liable
An option contract must have which of the following elements?
valuable consideration
When estimating the value of a business, an appraiser would normally use which approach?
income approach
A real estate sales associate may accept commissions from which of the following?
the sales associate's employer
Which would never appear in real estate sales contract?
exculpatory clause
Why can't a sales associate work for more than one broker or one owner developer at the same time?
a sales associate or broker associate is an agent of the broker or owner that he or she is working for
Under which agreement does party give up all their rights under a lease?
assignment
What is the most probable price that a property will bring in an open and competitive market?
market value
Which business structure incorporates limited as well as unlimited liability?
limited partnership
Complete the sentence. When all terms and conditions have been clearly stated, a contract is said to be:
expressed
A broker has two apartments listed and gives their unlicensed assistant a 3x5 card with printed information to read to any prospects who call to inquire about the apartments. Which statement is correct?
As long as the assistant reads the printed information and does not give subjective opinions, there is no violation
Which type of lease is typically used in commercial real estate where the tenant pays both rent and expenses?
net lease
Which condition is an example of functional obsolescence?
a five bedroom house with one bathroom
Two brokers sharing space in a manner whereby the public presumes the brokers are partners may be engaged in what is referred to as a:
quasi-partnership
Farmer Jones meets broker Brown at a cocktail party. Jones and Brown agree that if Brown sell Jones's farm for $650,000 within 30 days, Jones will pay Brown a 6% commission. Which applies?
This is a contract, and Brown is entitled to a commission if the broker performs
A Georgia broker and a Florida broker form a joint venture to sell a Florida property that a friend of the Georgia broker owns. The Georgia broker comes down to assist the Florida broker in the sale of the property. The Florida broker:
cannot pay the Georgia broker part of the commission
What is the instrument that is used to pledge real property as security for a debt?
mortgage
Who does a deed of trust convey title to?
a third party
What must a sales associate do when he or she changes employers?
notify the Department using a change of status form
A farmer gives a $15,000 listing with a 90-day protection period to a broker for a 6 month term, agreeing to a 10% commission. After 5 months, the broker brings a prospect to see the property. The prospect refuses to pay $15,000. The farmer takes the pros
The farmer owes the broker $1,400
Sales associate Sally decides to use a post office box for all of her mail even though she has not actually moved out of her house. Which statement applies?
She must notify the Department of her address change within 10 days
Which statement best describes a quitclaim deed?
It does not warrant the title
How would the purchase price be correctly entered on a closing statement?
debit buyer, credit seller
Which business structure makes all principals responsible for any debts incurred in the name of the entity?
partnership
An option contract is a right to buy a property during a specified period of time at a specified price. How many days do you have to redeem an option once it has expired?
0
A broker receives a deposit check on Monday and deposits it in his escrow account the following Monday. The check subsequently is returned with non sufficient funds (NSF). What fraud has the broker committed?
culpable negligence by failing to deposit the check immediately
Which of the following is a characteristic of a general partnership?
the partners agree to share in the profits and debts of the partnership
Brokers Troy and Gail agree to cooperate on the sale of Jackie's house. The deal is closed and Jackie pays the full commission to Troy, the listing broker. Troy refuses to pay Gail her share. What my Troy be guilty of?
failure to account
Complete the sentence. A joint venture is typically created:
for a single project
A broker gets a 90-day exclusive right of sale listing on a house for $50,000 and promises to advertise it for 2 weeks. The owner agrees to pay the broker a 6% commission if the broker is successful in finding a buyer. The broker advertises the property a
The owner will owe the broker a $2,700 commission
A purchase money mortgage is commonly referred to as which of the following terms?
seller financing
Three houses recently sold with the following amenities:
1) $84,500, three bedrooms, two baths, good location, family room, garage
2) $76,500, three bedrooms, two baths, fair location, family room, carport
3) $80,000, three bedrooms, carport, good locatio
$1,500
A property is purchased based on a $50,000 a year income, with a 15 cap rate (yield). If the new owner can sell the building based on a 12% yield, what would be his profit?
$83,334
A widow's property has an assessed value of $60,000 and she qualifies for a homestead exemption. The millage rates are 8 mills for the city, 6 mills for the county, and 9 mills for the school board. What is her tax levy?
...
Mr. Jones purchased a home for $95,000, with closing costs of $3,500. The loan-to-value ratio was 80%. If the bank charged $2,280 for lending fees, how many points did the lender charge?
3 points
Michael has a loan on his house for $75,000. After the first year, he has paid $11,936.36 in interest and $124.26 in principal. After the first year, what portion of his loan is paid off?
.17%
If 350 feet of fence costs $1,575, what is the cost for 500 feet of fence?
$2,250
A buyer purchases a home for $60,000. He obtains an 80% conventional loan at 8.5% interest, with a 2.5% loan origination fee. How much is the origination fee?
$1,200
Broker Brown and broker Smith split a commission on a 50/50 basis on the sale of the S 12/ of the NW 1/4 of Section 36, Township 3 North, Range 4 E, with a selling price of $170.45 per acre. The commission is to be calculated as follows: 5% of the first $
$259.02
Mrs. Brown owns a 100 acre tract in Dade County. She wants to sell 20 lots, with each containing 21,780 square feet. How many acres will she be selling?
10
A house rents for $350 per month in an area where the GRM is 134. A similar home next door just sold for $55,000. On this basis, the rent could be:
increased by $60
What must a sales associate do when he or she changes employers?
Notify the Department using a change of status form
A farmer gives a $15,000 listing with a 90 day protection period to a broker for a 6 month term, agreeing to a 10% commission. After 5 months, the broker brings a prospect to see the property. The prospect refuses to pay $15,000. The farmer takes the pros
The farmer owes the broker $1,400
Sales associate Sally decides to use a post office box for all of her mail even though she has not actually moved out of her house. Which statement applies?
She must notify the Department of her address change within 10 days
Which statement best describes a quitclaim deed?
It doesn't warrant the title
How would the purchase price be correctly entered on a closing statement?
Debit buyer, Credit seller
Which business structure makes all principals responsible for any debts incurred in the name of the entity?
Partnership
An option contract is a right to buy a property during a specified period of time at a specified price. How many days do you have to redeem an adoption once it has expired?
0
A broker received a deposit on Monday and deposits it in his escrow account the following Monday. The check subsequently is returned with non sufficient funds. What fraud has the broker committed?
Culpable negligence by failing to deposit the check immediately
Which of the following is a characteristic of a general partnership?
The partners agree to share in the profits and debts of the partnership
Brokers Troy and Gail agree to cooperate on the sale of Jackie's house. The deal is closed and Jackie pays the full commission to Troy, the listing broker. Troy refused to pay Gail her share. What may Troy be guilty of?
Failure to account and deliver
Complete the sentence. A joint venture is typically created:
For a single project
A broker gets a 90 day exclusive right of sales listing on a house for $50,000 and promises to advertise it for 2 weeks. The owner agrees to pay the broker a 6% commission if the broker is successful in finding a buyer. The broker
...