In a deed, the warranty of quiet enjoyment pertains to
peaceful possession undisturbed by others' claims of title.
A sales associate who is employed by an owner-developer who owns properties in the name of various entities may be issued
group license
The purchase price of a business minus the value of the tangible assets of that business equals the intangible assets of the business, called
goodwill
The Florida Real Estate Commission is empowered by law to
reprimand, fine, or otherwise discipline licensees.
A developer purchased three oceanfront lots, each measuring 75 by 110 feet, for $20 per square foot. The developer later sold the lots for $200,000 each. What was the developer's percentage of profit on the sale of the three lots? (Round to nearest percen
21%
You have a level-payment, amortized mortgage of $42,000 at 12.5% for 30 years. The monthly payment is $448.25. What amount of interest will be paid from the second monthly payment?
$437.39
A licensed real estate broker has been hired by a lender to appraise a home for a buyer who has made application for an FHA loan. Which statement is TRUE regarding this situation?
The broker is required to be a state-certified appraiser to perform this appraisal assignment.
Individuals or business entities that originate loans, package loans together and sell the package on the secondary market, and may serve as loan correspondents are called
mortgage lenders
Business brokers appraise businesses using appraisal methods similar to real estate appraisal EXCEPT for the additional technique of
liquidation analysis.
A mortgage in which changes in the interest rate may cause changes in the monthly payment amount is called
an adjustable-rate mortgage.
The following taxes were paid at the closing of a new home: $1,540 state documentary stamp tax on the deed, $693 state documentary stamp tax on the note, and $396 state intangible tax on the mortgage. What was the purchase price of the home?
$220,000
Essential elements of a deed do NOT include
signature of competent grantee
A sales associate received a $5,000 earnest money deposit from a buyer. The sales associate immediately delivered the deposit to her broker. The broker deposited the check on the third business day into his general operating account.
This is an example of commingling of escrow funds.
A property closes on April 8, with the day of closing charged to the seller. The annual property taxes are $1,486. Which entry will appear on the closing statement for the property taxes?
Debit to seller and credit to buyer in the amount of $398.98
In Florida, real property is assessed on January 1 of each year, and property taxes become a lien on the property on
Jan 1, same year
Which statement does NOT describe a planned unit development?
Clustering homes on smaller lots results in higher overall density of dwelling units compared with conventional development.
A man earned a $7,500 commission for selling a coin-operated laundry business, which has six more years before the expiration of its present lease. The man
must be registered with the Florida Real Estate Commission as a real estate licensee.
Which element is NOT essential in a valid real estate sale contract?
An earnest money deposit
The statute of frauds applies to
instruments of conveyance of real property
Federal savings associations that are members of the Federal Home Loan Bank System are regulated by
Office of Thrift Supervision
A tenant signed a lease for 10 years requiring a monthly base rent of $1,900, plus 2% of all monthly gross sales volume over $95,000. The tenant also must pay all property taxes, insurance, and other costs normally considered property owner's costs. This
net lease
Brokers should NOT accept the task of appraising a parcel of land
if their fees are contingent on the appraised value
Which statement concerning tenancy by the entireties is FALSE?
The deed must specifically state intent to create such a tenancy.
Sales associate Terry Stoufer may have which information entered on her license, if applicable?
Terry Stoufer, LLC
Which of the following promises (covenants) is found ONLY in a general warranty deed?
Further Assurance
What are the total state transfer taxes for the loans on a $47,500 tract that sold with $10,000 cash down, a new second mortgage of $15,500, and an assumed mortgage of $22,000 that was previously recorded?
162.25
Depreciation (cost recovery)
is an allowable deduction that requires no current outlay of cash.
How much personal money may a broker place in a property management escrow account?
5,000
Failure to comply with the statute of frauds will result in
an unenforceable contract.
A type of roof style that slopes from the ridge to four opposite sides and allows continuous eave venting around the entire house perimeter is the
hip
Constructive notice is
provided by recording in the public records.
Which individual is NOT exempt from real estate licensure under F.S. 475?
A business broker who negotiates leases of business property
A title theory state is one in which a mortgage
transfers title to the lender or escrow agent until the loan is paid
Which statement is FALSE regarding a corporation for profit that is doing business as a real estate broker?
All stockholders must be registered with the DBPR as inactive brokers.
Which information must be disclosed to all prospective buyers?
The home is situated in a flood-prone area.
A licensed real estate broker has a buyer who is interested in investing in income-producing property. The broker finds a property producing net income of $1,750 per month. The buyer informs the broker that she will buy the property if she can get it for
150,000
The statute of limitations is the authority that outlines the
period of time during which a contract may be enforced.
A prospective tenant purchased a rental list from a broker and then rented a duplex that the list indicated included all utilities. The tenant discovered that only water was included in the rent and notified the broker within the legislated time limit. Th
100% of the fee paid
A broker's license was involuntary inactive for two years and one month. To operate again as an active licensee, the broker must complete
FREC Course I and pass the sales associate's licensing exam.
An investor wanted to build a motel. A broker showed him three choice sites zoned hotel-motel. The investor promised to decide on a site in three weeks, so the broker took a two-week vacation. When the broker returned, the investor bought one of these sit
the broker is guilty of culpable negligence
Which variable does NOT influence demand?
availability of construction loans
The formula to calculate the overall capitalization rate is
NOI � value (or price).
A licensee makes a statement that is material to the transaction as if it were a fact when the licensee does not know if the statement is true or false, and the buyer relies on the statement. As a result of the statement made by the licensee, the buyer su
fraud.
The law that requires that the annual percentage rate be disclosed to consumers is the
Truth in Lending Act.
Which estate includes the right of survivorship?
joint tenancy
A buyer who obtains a mortgage loan that covers the purchase of a condominium plus furniture, appliances, and other personal property such as towels and kitchen utensils has a
package mortgage
If you have located a township numbered T2S, R4E, the township due south of that township is
T3S, R4E.
The only broker for a firm had her license revoked. What action, if any, will be taken against the sales associates' licenses registered under the broker?
The licenses will be placed in involuntary inactive status
Title to real property is technically conveyed when the deed is
voluntarily delivered and voluntarily accepted.
Which term refers to a situation where during the early years of a loan the principal balance increases?
negative amortization
Which entity may NOT be registered as a real estate brokerage?
Corporation sole
A sales associate receives 45% of sales commissions earned as a result of his sales efforts. The broker lists a property for $248,000, with a 7% sales commission agreed to by the owner. The sales associate sells the property at the listed sale price. What
$9,548
A man owns a farm in fee simple. He deeds the farm to a friend until the friend dies, at which time a woman will acquire a fee simple title to the farm. The woman's interest in the farm is a
remainder estate
The seller instructs the listing broker NOT to show the seller's home to members of a protected class. The broker informs the seller that this would be a violation of the Fair Housing Laws, but the seller is insistent. Which choice is the broker's best co
withdraw from the listing agreement
The documentary stamp tax on deeds is based on the
entire sale price of property
Local government exercises its greatest effect on the real estate business by
using zoning, taxation, and the planning process.
Homeowners who have homestead exemption on their current home in either of the two preceding years can transfer up to what amount of their Save Our Home benefit to a new home?
$500,000
If a developer wants to develop a new subdivision, she must submit
a subdivision plat map to the planning commission.
Which statement concerning characteristics of the real estate market is FALSE?
The real estate market is organized and controlled centrally.
If all legislated requirements have previously been met, an active broker in Florida may hold an active license in
Florida and any other state or foreign country whose licensing laws have not been violated.
A 72-year-old retired college professor's application for a 30-year mortgage loan was denied, even though he had sufficient income from a pension plan and an excellent credit history. Which of these statements is TRUE?
The lender's actions are a violation of the Equal Credit Opportunity Act.
You have been hired to appraise the local public library building. The approach that is likely to be the MOST relevant is the
cost-depreciation approach
Which expense is subtracted to derive NOI?
Vacancy and collection losses
The broker is a single agent of the seller. The principal has disclosed to the broker that the roof leaks; although, there is no visible evidence of a water problem. The broker has satisfied the legal obligation to both the principal and all prospective b
that the roof leaks.
Your seller owns a home appraised at $52,500. She still owes $32,760 on the first mortgage and $4,200 on a second mortgage. Your sales commission will be $3,640. What is your seller's equity in the home?
15,540
Which information is confidential?
An examinee's grade on the state licensing examination
A real estate broker who is a single agent of a buyer or a seller does NOT have which duty to the principal?
Limited confidentiality, unless waived in writing by a party
In the cost-depreciation approach, estimating accrued depreciation involves estimating
the loss in value of the improvements
A broker has a listing priced at $120,000. An uninformed buyer offers $125,000 for the listed property. The broker buys the property for $120,000, and then sells it to the buyer for $125,000. Which statement is FALSE?
This is legal as long as the broker withdraws from the listing first.
When the Fed wants to ease a tight money supply, it may
buy Treasury securities
In relation to Section 1 of a township, Section 12 is due
south
A broker who changes business address must notify the Commission of the address change within how many days?
10
A broker received a $5,000 deposit from a buyer on Tuesday at 1:00 pm. The seller will not be available until Monday. The broker's normal banking day is Monday. The broker is required to deposit the $5,000 before the end of
business on friday
The rate of interest that the Federal Reserve Bank charges member banks for borrowing from the Federal Reserve Bank is called
the discount rate
A single agent broker received an offer on a listed property at the seller's price and terms. Before informing the seller, the broker received a higher offer. She submitted only the first offer, and the seller, her principal, accepted it. The broker
has violated the fiduciary duty to the principal.
A real estate licensee is obligated to communicate to the seller
all oral and written offers, regardless of how worthy they may be in the broker's opinion.
An example of an ad valorem tax is
a property tax
A man successfully negotiated (and was paid for) the sale of a Federal Communications Commission license for a television station. He is NOT a licensed real estate broker or sales associate. The man
has not violated F.S. 475.
The financial term applied to the use of borrowed funds to finance the purchase of an office building is
leverage
A property has been assessed at $40,000. The city tax rate is 10 mills, the county tax rate is 9 mills, and the school board levy is 8 mills. The owner has qualified for and received homestead tax exemption. How much will the owner save from his county ta
$225
A comparable property has one more bedroom ($8,000) and is on a slightly larger lot ($2,000) than the subject property. The comparative market analysis requires a net adjustment of
minus $10,000 to the comparable property.
If a seller refuses to pay a broker sales commission owed after the residential property is sold, the broker may
file a suit in the courts for the commission.
The city has decided to pave the streets of a recently incorporated community. Property owners are to be assessed 70% of the cost of paving, which is found to be $25 per foot. The 70% assessment tax is to be apportioned between owners on both sides of the
$700
A real estate license may be revoked or canceled without prejudice for which action?
Issuance of a license by mistake by the Commission
The government survey method of legal description
has, as a basis, a principal meridian and a base line.
A transaction broker does NOT have which duty?
full fiduciary duties to both the buyer and the seller
The DBPR may issue which penalty for an initial offense of a minor violation by a licensee?
A)
notice of noncompliance
Three claimants have come before the Commission requesting relief from the Real Estate Recovery Fund. All three claimants were involved in the same real estate transaction. Payment for their claims, in the aggregate, is limited to
50,000
An individual must hold an active real estate license if, for express or for implied compensation, the individual
advertises a list of available rental properties
Insulation is rated by its ability to resist
heat flow.
Which statement is TRUE regarding the monthly payments on a 30-year, fully amortized loan?
Initially, interest is the larger portion of the payment.
The Florida Real Estate Commission must notify which agency when it takes disciplinary action against any of the agency's licensees?
Division of Florida Condominiums, Timeshares, and Mobile Homes
A provision in all mortgages that allows the delinquent mortgagor to avoid foreclosure by paying all of the back mortgage payments, late penalties, and costs of collection up until the time of foreclosure sale is the
equity of redemption
A motel owner is considering listing one of his motels with a real estate company. The owner has told the listing agent that he does NOT want to sell the motel to any racial minorities. Which of these statements is TRUE?
To refuse to sell or lease any real property based on one's race is a violation of the federal Civil Rights Act of 1866.
A woman has homesteaded her residence. Her home has an assessed value of $279,000. She is a nonveteran who is totally and permanently disabled due to a serious car accident. She is also legally blind. What is the cumulative tax exemption on her homesteade
51,000
What authority originates from the U.S. Constitution and relates to protection of health and welfare of citizens at local levels?
Police power
A license becomes ineffective when it is
suspended
Leasehold estates do NOT include
remainder estate
Which item below is NOT a requirement under RESPA?
Giving mortgage applicant a list of competing lenders so that the consumer can comparison shop for the best rate
A real estate brokerage company is a transaction broker for a buyer. The buyer wants to purchase a new home, so the sales associate takes the prospective buyer to three model centers listed by three competing real estate companies. The sales associate mus
no one