Post-License Class Review Quiz Q-Only

Post-License Class Review Quiz Q-Only – answers will be revealed with Post-License subscriptions

1 of 50 – Which is one of the key elements of business planning and time management?

Becoming a jack-of-all-trades.

Knowing your target market.

Waiting for the business to come to you.

Allowing time to manage your priorities.

2 of 50 – In a designated agency relationship, which type of disclosure notice must be given?

A no brokerage relationship notice.

A limited agent notice.

A notice of non-representation.

A single agent notice.

3 of 50 – Which of the following is not a federally protected class?

Religion

Poverty

Race

Sex

4 of 50 – Florida law requires that a copy of the listing contract be given to the sellers within:

Three days.

Two days.

Five business days.

24 hours.

5 of 50 – A due-on-sale clause in a mortgage means that:

The balance is due if the loan is sold on the secondary market.

If the mortgagor sells the home, the loan balance is immediately due.

A penalty is due if the house is sold during the first three years of ownership.

The house has been foreclosed.

6 of 50 – The benefit of developing a business and marketing plan is that it will:

Keep you busy when you do not have many clients.

Help you set goals and stay focused.

It will improve your average commission amount.

It will help you negotiate a higher salary in the future.

7 of 50 – Why is the “margin” important on an adjustable rate mortgage?

The margin adjusts and determines how frequently the loan will adjust.

The margin adjusts until it is capped, and that amount will determine the interest rate on the loan.

It establishes the amount of interest to be charged in relation to the loan’s index.

The margin is how much a buyer can afford once their basic expenses are covered.

8 of 50 – Two main types of conventional mortgages are:

FHA and VA.

Balloon and adjustable.

Fixed and adjustable.

Fixed and interest only.

9 of 50 – A home in a tract subdivision is a one-of-a-kind property. The home is a three-story Victorian, whereas all of the other homes are contemporary ranch style. Which appraisal principle does the property MOST violate?

Highest and best use

Conformity

Supply and Demand

Competition

10 of 50 – Concealing a fact that is material to the property with the idea that that the buyer will go ahead and purchase the property would be called:

Steering.

Inducement.

Misrepresentation.

Malapropism.

11 of 50 – An economic cycle where prices rapidly rise, with increasing demand for goods and services, would be referred to as:

Stagflation

Recession

Contraction

Expansion

12 of 50 – A property owner of some government subsidized housing uses a manager familiar with this type of property. The owner’s instruction to the manager are: “Do not call me. Handle everything. Please send the financial reports quarterly.” The type of agency created in this management agreement would be:

A special agency relationship.

Designated agency.

Transaction brokerage.

General agency.

13 of 50 – Expenses, like salaries, property taxes and insurance that are paid by a property manager, would fall into which area of the operating budget?

Variable expenses.

The reserve account.

Fixed expenses.

Management fees.

14 of 50 – According to the REALTOR® code of ethics, can information that is confidential or harmful about the client be shared with others by the agent after the transaction has closed?

Yes. The information cannot do any damage if the contract is executed.

No. To do so would violate the fiduciary relationship and the code of ethics.

Yes, if the underwriter asks for it.

Normally no. However, you can if you make a major profit from sharing the information.

15 of 50 – When a licensee is working with a buyer who “likes everything,” what is the most effective use of the licensee’s time?

Show the buyer everything for as long as the buyer wants to look, so that the final decision is a good one.

Show the buyer homes outside of his wants and needs so that he does not miss anything.

Keep looking for a home for as long as the buyer wants to look, because the right house will come along.

Use a “wants and needs survey” and show the buyer only those homes that fit the parameters.

16 of 50 – Which objectives define the position of a professional property manager?

A property manager must meet the goals of the owner while preserving both the property and income stream.

The income of the property should be maximized by the manager for the owner, even if the property falls into disrepair.

A professional property manager is responsible for maintenance and recordkeeping; however, financial management is left to the owner.

Once the management agreement is signed, the property manager should not bother the owner with details about the income or maintenance of the property.

17 of 50 – A capitalization rate of 5% for an investment property would indicate:

A higher amount of risk.

A large amount of capital invested.

A low degree of risk.

A huge profit margin.

18 of 50 – How is the relationship between net operating income and estimated value expressed on an income producing property?

By a capitalization rate.

By an equity dividend rate.

With a cash break even ratio.

With a cash on cash return.

19 of 50 – Which of the following mortgage loan items would NOT typically fall under origination charges?

Points

Application Fee

Underwriting Fee

Title Insurance

20 of 50 – An earnest money deposit is typically:

Required to make the contract enforceable.

A small amount compared to the contract price.

Held in the broker’s business account.

Not deposited until after closing.

21 of 50 – The monthly income of your buyer is $3600. In addition, the buyer has $600 a month of installment debt. The house payment on the buyer’s favorite house would be $1020 a month. If the deal goes through, the buyer’s total debt ratio would be:

17% — right around the 18% recommended total debt ratio.

28% — well below the 32% recommended total debt ratio.

38% — well below the 48% recommended total debt ratio.

45% — well above the 36% recommended total debt ratio.

22 of 50 – Documentary stamps on the deed:

Are a transfer tax paid to the state of Florida when real property is sold.

Are a sales tax paid to the county in which the buyer is located.

Can be avoided on investment property.

Apply to commercial property only.

23 of 50 – According to the Foreign Investment Act:

Only US citizens may purchase property in the United States.

Ten percent of the purchase price must be held for tax if the seller is a foreigner.

Twenty-five percent of the purchase price must be held for tax if the seller is a foreigner.

Foreigners must hold a real estate license in order to buy or sell any property.

24 of 50 – Jim lives in an apartment building and helps the owner rent and lease vacant apartments for six months at a time. Jim also manages a nearby condo association with a budget of $130,000 per year. What type of license(s) must Jim have to comply with Florida laws?

An Assistant to the Manager License.

A Budgeting License.

A Community Association Manager’s license.

A Leasing License.

25 of 50 – The actual loan instrument being used to finance a property is called the:

Documentary stamp.

Promissory note.

HUD.

Deed.

26 of 50 – The mortgage loan application process does NOT include:

Three or more letters of recommendation.

An evaluation of creditworthiness.

Confirming the employment status of the applicants.

Documentation of income and assets.

27 of 50 – To an investor, the equity dividend rate represents the:

Required occupancy to make the property cash flow.

Cash return in relation to the cash paid as a down payment.

After tax cash return.

Capitalization rate of the property.

28 of 50 – A property is listed at $127,000, and the offer is accepted at $125,000. However, the appraisal comes back at $121,000. The buyer and seller renegotiate and the transaction closes at $123,000. What is the market value of the property?

$127,000

$125,000

$123,000

$121,000

29 of 50 – A marketable title is one:

That is insurable and can be transferred.

That is free of the bonds of the title chain.

That the owner’s can sell for much more than they bought it for.

That belongs to a property less than 30 years old.

30 of 50 – A buyer purchased a 20-acre tract of land for $4000 per acre. If the tax rate is $0.70 per $100, the documentary stamps on the deed for this transaction would be:

$280

$360

$480

$560

31 of 50 – Buyer Kelvin really likes the mounted flatscreen television of Seller Tami’s house. In Kelvin’s offer, he asks that Tami leave the television behind when she moves. This is an example of a(n)

Improvement.

Contingency.

Encroachment.

Repair.

32 of 50 – What is the relationship between the percentage of leverage and the percentage of profit from the lender’s point of view?

The lender benefits from lower leverage and lower profits.

A high percentage of leverage means a low degree of risk.

A low percentage of leverage is a higher degree of risk.

A high percentage of leverage means a high degree of risk and a higher potential of profit.

33 of 50 – If a property is governed by an association that collects fees and the homeowner’s association disclosure is not given to the buyer:

The buyer will NOT have up pay up to 50% of his or her property taxes during the first year.

The buyer must buy the property because of failure to perform due diligence.

The buyer may cancel the contract any time prior to closing.

The buyer need NOT pay the fees to the homeowner’s association.

34 of 50 – When presenting an offer to a seller, most brokers recommend a discussion of the offering price:

As early in the presentation as possible.

At the end of the presentation, after the other terms and contingencies have been presented.

With the buyers present.

At the beginning of the offer presentation, before the seller can ask any questions.

35 of 50 – Which important disclosure must be given to the buyer within three days of loan application?

Property Disclosure

Loan Estimate

Mortgage Disclosure

Title Report

36 of 50 – A real estate agent is also an appraiser. When practicing real estate and competing for listings, the licensee may refer to the suggested listing price range as:

An appraisal.

A narrative report.

A highest and best use analysis.

A competitive market analysis.

37 of 50 – Which document is the security for the loan?

The note.

The mortgage.

The HUD -1.

The certificate of occupancy.

38 of 50 – If a broker has two clients who each wish to work with their own agent, selling and buying respectively, with full fiduciary duties owed to each client, provided the clients have assets of more than $1 million, it is possible for the broker to enter into which uncommon type of agency relationship?

A no representation agreement.

A designated agency relationship.

A limited agency relationship.

A transaction brokerage relationship.

39 of 50 – What does a demand feature mean in a mortgage loan?

A demand feature would not allow the lender to require early repayment.

A demand feature would allow the lender to require early repayment.

A demand feature would allow the borrower to make an early repayment with a penalty.

A demand feature would allow the borrower to shorten the life of the loan by making double monthly payments.

40 of 50 – A REALTOR® has specialized in a geographic area with her marketing activities. What is the term for this type of activity?

Discriminating

Expansion

Farming

Recruitment

41 of 50 – The seller may choose to do which of the following with an unacceptable offer?

Decrease the broker’s fee.

Increase the buyer’s loan amount.

Refuse to disclose material facts, because the offer is low.

Reject the offer.

42 of 50 – Which telephone call would be a violation of Do-Not-Call Laws?

A call to a seller that you did business with one year ago.

A call to a for-sale-by-owner because you have a potential buyer.

A call to a potential seller in your farm area, whose number is on the list.

A return phone call to an individual that inquired about your services 90 days ago.

43 of 50 – In addition to informing the purchaser about the property, a secondary benefit to a Seller’s Property Disclosure Form is:

Protection from liability for the broker.

Advertising the pitfalls of the property.

A reminder of to the seller of the imperfections in the property.

identifying what the buyer will have to repair following closing.

44 of 50 – Negative amortization occurs when

The balance of the loan increases.

The balance of the loan is zero.

The interest rate is decreasing.

The mortgagor pays additional points.

45 of 50 – Which activity could lead to discrimination in residential property management?

Refusing to use credit reports.

Sending financial reports to the owner.

Hiring a human resources officer.

Selecting tenants for a residential apartment.

46 of 50 – A buyer deposits a non-refundable fee in exchange for a 30-day waiting period. The buyer is not certain the job transfer will happen. The buyer will not be required to purchase if the job transfer does not occur. The seller will be required to sell if the job transfer does occur. This document is a (an):

Fair Housing disclosure.

Lien contract.

Sales contract.

Option contract.

47 of 50 – Florida statutes governing transaction brokerage relationships do NOT require which duty to a customer?

Provide limited confidentiality.

Loyalty.

Accounting for all funds.

Honest and fair dealing.

48 of 50 – A licensee is working with a buyer and has entered into an agreement that requires that the licensee perform as a single agent. The agreement would correctly be referred to as a(n):

Disclosure contract.

Real property listing agreement.

Exclusive buyer’s agreement.

Sales agreement.

49 of 50 – Which pre-printed listing contract item does Florida Law specifically prohibit?

Personal property transferred with real property.

A requirement to hold open houses at least once a month.

The automatic extension of the expiration date.

Requiring a lock box on a vacant house.

50 of 50 – A fire and hazard policy will NOT cover:

Wind storm damage from a severe thunderstorm.

Vandalism when the property owner was out of town.