Post-License Final Test Questions Only   – answers will be revealed with Post-License subscriptions

1 of 100 – A contract for a long-term lease would NOT require which item?

A recording stamp from FREC.

The signatures of both parties.

A proper description of the leased premises.

Dates for the term of the lease.

2 of 100 – A salaried employee of a condo-hotel works in an on-site rental office of less than 50 units. The employee registers the short term visitors and helps the association manager with bookkeeping. What type of license is this individual required to have in Florida?

A registration license, only.

A real estate license, only.

A Community Association Manager’s license, only.

No license is required.

3 of 100 – A 78-year-old man is buying a home for $750,000. The man has assets, income and good credit. The lender is hesitant because of the age of the gentleman. Which law would prevent discrimination against this buyer?

The Federal Fair Housing Law.


Regulation Z.

The Equal Credit Opportunity Act.

4 of 100 – The purpose of title insurance is to:

Relieve the owner from liability if a visitor falls on his property and is injured.

Protect the property in case of fire.

Remove all zoning restrictions.

Insure the title, thereby making it marketable.

5 of 100 – What form does TRID require to be used for itemizing closing costs?

Good Faith Estimate

Truth-in-Lending Statement

Closing Disclosure

Mortgage Loan Disclosure Statement

6 of 100 – What can a listing agent share with a buyer’s agent about the existence of other offers?

That multiple offers exist, if they actually do.

The price offered on the other offers.

The terms offered on the other offers.

The seller’s reasons for selling.

7 of 100 – What is a main disadvantage of the interest only loan?

The payments are higher for the buyer.

The buyer will retire the mortgage debt faster.

This loan is only available to wealthy investors.

The buyer is not “purchasing” the property.

8 of 100 – Which is an indicator a rental space may be priced too low?

A waiting list to get into one of the units.

The local unemployment rate is 10%.

Property taxes are the highest in the state.

The property is poorly maintained.

9 of 100 – A buyer made an offer to purchase a property and a seller gave a counteroffer. The buyer accepts the counteroffer but does not sign within the time frame noted on the counteroffer. What is the status of the negotiations?

Once the buyer accepts the counteroffer, there is a contract.

The counteroffer is void until the buyer signs.

The counteroffer is unilateral until the buyer signs.

The counteroffer is null and void and there is no contract.

10 of 100 – Procuring cause is defined as the:

reason the seller picked a particular broker.

specific reason a buyer selected a property.

effort that produced a ready, willing and able buyer resulting in a sale.

closing of a real estate transaction.

11 of 100 – A buyer has seen a home with a plasma TV mounted on the wall. The listing agreement and MLS information specifically exclude the TV. The buyer makes an offer which becomes a contract and did not ask for the TV. At the final walk-through, the buyer is dismayed to see the TV is missing. The buyer is entitled to:

No more than those items negotiated in the contract.

The plasma TV.

A return of the earnest money.

The value of the plasma TV in cash.

12 of 100 – A broker’s office policy requires that any earnest monies received by an associate be turned over to the broker by the end of the business day the money was received. The broker’s office policy is:

acceptable; the broker is within his rights.

unacceptable; the sales associate must until the third business day.

a violation of Florida laws.

a burden on the sales associate and as such may be ignored.

13 of 100 – A property manager of a large apartment complex with authority to hire and fire employees and enter into contracts and sign leases for the owner would have which type of agency relationship?

General agency

Special agency

Limited agency

Universal agency

14 of 100 – The legal relationship for MOST transactions in Florida, also known as the default relationship, is called:

Single agency.

Dual agency.

Limited brokerage.

Transaction brokerage.

15 of 100 – If the legal description is not sufficient to identify the property in a purchase agreement, what is the status of the contract?

The contract is still enforceable for both buyer and seller.

The contract is not binding.

The contract is executed.

The contract becomes a lease agreement.

16 of 100 – In a buyer’s market a seller is likely to receive offers:

Higher than the asking price.

Much lower than the asking price.

At the asking price.

From many buyers.

17 of 100 – What is one of the most frequent comments from sellers about agents after the listing is taken?

That their agent advertises their home in too many places.

The agent does not stay in touch on a regular basis.

The seller cannot stay at home when the house is being held open.

That their agent starts colluding with buyers and buyer agents.

18 of 100 – If a property has a capitalization rate of 12%, expenses of $178,000 annually, and an estimated value of $668,000, what is the Net Operating Income?





19 of 100 – A contract in which all parties have performed their promises and obligations, and the contract has been completed is known as a:

Executed contract.

Null contract.

Compensated contact.

Fraudulent contract.

20 of 100 – Use of credit scoring in the mortgage qualification process has made:

The lending decision more accurate, faster, and less subjective.

Underwriting unnecessary for companies.

Large profits for big lenders and small profit for small lenders.

The lending decision more unfair and drawn-out.

21 of 100 – Assuming there are NO holidays, If a buyer gives good faith money to an associate on Monday, it must be deposited in the escrow account by:





22 of 100 – Prior to the first renewal, a properly-licensed real estate associate with a four-year college degree in real estate failed to complete the 45-hour post licensing education requirement. What is the result of the associate’s failure to complete this course?

There is no problem; the associate is exempt.

The real estate license for this associate is null and void

The associate may have a six-month extension in which to complete the requirement.

The real estate license for this associate is involuntarily inactive.

23 of 100 – Repairs or conditions noted on the home inspection:

Are often paid for by the brokers so the deal is preserved.

Do not need to be repaired at all.

Should be made prior to closing if addressed in the purchase agreement.

Are for buyer’s information and do not affect the contract or closing.

24 of 100 – When used as part of a comparative market analysis, what does an expired listing demonstrate to a seller?

Expired listings make a strong case for a lower list price.

The expired properties are not as important as those homes currently on the market.

The expired listings have no impact.

The expired listings are no longer available so the seller can raise his price.

25 of 100 – If the purchase price of a home is $415,000 and the loan amount is $300,000, what is the amount paid to Florida for a transfer tax on the deed? Assume the tax rate is $0.70 per $100





26 of 100 – A new home in a neighborhood of old homes will not benefit from any improvements. Because of the condition of the surrounding community, improvements will not increase its value. This is an example of:

Supply and demand.


Diminishing returns.


27 of 100 – A taxpayer who sells property and agrees to take the payments over time rather than in one lump sum. This is known as what type of sale?

A reverse sale.

A voidable sale.

A joint tenancy sale.

An installment sale.

28 of 100 – When prospecting for expired listings, which statement would be most effective when made by a sales associate to a seller?

I would like to show you my appraisal of your house.

Let me tell you about my firm.

Your home is salable and I have some ideas that might help.

I will personally clean up your house if you list with me.

29 of 100 – A homeowner’s fire and hazard policy will NOT cover:

Theft of all the electronics that occurred when the owner was out of town.

Rising water that damages the lower level of the home.

Roof replacement due to a hurricane.

Medical expense for a guest that falls and breaks a leg.

30 of 100 – Mowing the lawns of an apartment complex qualifies as what type of maintenance?





? 31 of 100 – The use of designated sales associate is permitted when:

The transaction is non-residential and the principals have requested the designated agency relationship.

The buyer or the seller requests of the broker that they each have their own agent within the firm and each verify that they have assets worth more than the subject residential property.

The transaction is of an apartment complex, and the value of the property is less than $1 million.

The residential property is valued at more than $1 million and the buyer and seller verify assets of more than $1 million.

32 of 100 – Which item is NOT a factor when performing a market analysis?

The neighborhood or location.

The size of the home.

The condition of the home.

The cost of the property when the seller purchased it.

33 of 100 – A terrible murder and suicide have occurred in a listed property. The seller has asked that the listing associate NOT mention this to any potential buyer. Can the associate withhold the information?

The murder and suicide need not be advertised, but Florida law requires the disclosure to a buyer.

The associate need not mention this to everyone, but must disclose this to the buyer.

This information should be disclosed to anyone interested in the property.

Florida law permits the associate to follow the seller’s instruction.

34 of 100 – The Equity Dividend Rate can be explained by which statement below?

The rate is a five-year benchmark between cash flow and expenses.

This rate is the cash flow after tax divided by the amount invested, including closing costs.

An Equity Dividend Rate is a ratio between NOI and taxes paid on a property.

The rate is the relationship between before tax cash flow and equity invested in a property.

35 of 100 – Damage deposits paid in connection with the lease should be deposited by a property manager in which account?

The operating account.

The escrow account.

The investment account.

The fixed expenses account.

? 36 of 100 – The IRS defines a passive investor of real estate as one who:

Is not involved with the decision-making of the property on a “regular, substantial, and continuous basis.”

Substantially participates in management and decision making.

Invests more than $50,000 a year into real estate but less than $1,000,000.

Only does installment sale transactions.

37 of 100 – If a property is being sold “as is,” which statement is correct?

The seller has no obligation to disclose any known “material” fact because “as is” puts the buyer on notice.

The buyer is required by law to have a home inspection.

The lender will require a 25% down payment.

The seller must still disclose any “known” facts that are “material” to the value.

38 of 100 – Investor Albert utilizes borrowed funds for real estate investment. This is an example of:

An in-kind investment.


Sweat equity.


39 of 100 – Which value principle says that value is created when homes are similar?

Highest and best use.

Supply and demand.



40 of 100 – A buyer is shopping for a mortgage loan. In order to be able to compare the rate on the note and all of the closing fees, the buyer should ask for:

The Consumer Handbook on Hybrid Rate Mortgages.

The Equal Opportunity Credit Statutes.

The Annual Percentage Rate Disclosure.

The HUD -2 statement.

41 of 100 – A home has been on the market for a long period and has had many price reductions. What is one reason that there is lack of interest in the home?

The price is now too low.

The price reductions lead buyers and agents to believe something is wrong with the home.

The agent did not hold enough open houses.

The YouTube video has under 100 hits.

42 of 100 – Which activity can be performed by a real estate associate and not by a seller?

A professional appraisal that is USPAP compliant.

Placing an advertisement in the newspaper.

Putting the property on a multiple listing service (MLS).

The development of new legal documents.

43 of 100 – What is the recommended total debt ratio for a loan applicant on a conventional loan?





44 of 100 – Can the seller require a buyer to use a specific title company as a condition to the sales contract?

Yes. It is a negotiable item just like the other terms.

No. The APR disclosure prohibits this.

Yes. Closing at two different title companies is permitted.

No, it is a violation of RESPA’s Section 9.

45 of 100 – Center of influence contacts as potential real estate customers and clients would NOT be developed from which source?

Soccer team parents.

Friends and family.

Members of a church group.

Clients of other associates in the same firm.

46 of 100 – A Management Agreement between an owner and a property manager is considered to be which type of contract?

A unilateral contract.

A bilateral contract.

An options agreement.

A trust agreement.

47 of 100 – What is a disadvantage of the 30-year fixed rate mortgage over other types of loans?

Budgeting is easier.

If interest rates increase, the interest rate on the 30-year fixed will stay the same.

It always has a “balloon” after the first 5 years.

If interest rates decline, the interest rate on the 30-year fixed will stay the same.-

48 of 100 – The property’s air conditioning system is no longer working. What type of maintenance is needed?

Corrective maintenance.

Preventative maintenance.

Referral maintenance.

Routine maintenance.

49 of 100 – A disadvantage of the 30-year fixed-rate mortgage is that it:

It is less predictable for budgeting.

Makes the taxes and insurance a fixed amount.

Will NOT adjust with a drop in market interest rates.

Builds equity rapidly.

50 of 100 – Which of the following is an index that conventional adjustable rate mortgages are commonly tied to?

The prime rate.

The S&P 500.

The Federal Government’s credit rating.

The national bond index.

51 of 100 – The purpose of the Loan Estimate is to:

Guarantee that the buyer’s closing costs will not exceed the amount on the disclosure form.

Approximate the amount of funds needed to close and protect the buyer from hidden fees.

Figure the net proceeds for the seller.

Determine the amount of earnest money the buyer should offer the seller.

52 of 100 – How can an associate show a seller the importance of pricing correctly at the time of initial listing?

Show the seller your company’s web site.

By guaranteeing the property will sell in 30 days if it is priced right.

Show the seller the homes currently listed and recently expired.

Show the seller all of the other listings you believe are overpriced.

53 of 100 – When presenting an offer to a seller, it is important to focus on which aspects of the offer?

Earnest money, offering price, and contingencies.

Earnest money, the buyer’s employment status, and down payment.

The amount of compensation to the selling agent, the offering price, and the down payment.

A list of items to be repaired, the earnest money, and buyer’s employer.

54 of 100 – The bi-weekly mortgage would benefit which individual the most?

A borrower whose bank balance fluctuates dramatically.

A borrower who is paid commission only and is not paid on a regular basis.

A borrower who is paid every two weeks and who desires to retire debt rapidly.

A retired homeowner with a large savings account, who acquired a VA loan.

55 of 100 – Which effort by an agent is NOT part of the marketing plan?

Entering the listing in the Multiple Listing Service.

Creating advertising and flyers.

Keeping the Competitive Market Analysis updated.

Procuring a buyer.

56 of 100 – The Mortgage Servicing Statement as a RESPA requirement protects a borrower in what way?

The servicing statement informs buyers about products and services available in the local area that are offered at a discount.

This RESPA disclosure informs buyers about the fees on the settlement statement one day prior to closing.

The statement is a disclosure of “junk fees” collected by the lender.

This RESPA disclosure informs the borrower if the loan or servicing of the loan is sold to a third party.

57 of 100 – From a broker’s perspective, the purpose of advertising the firm and its listings is to:

increase the number of sales associates who work for the broker.

keep the receptionist or floor person from having idle time.

get the phone to ring so that appointments with potential buyers and sellers can be made.

save time and money.

58 of 100 – When completing a “to do” as part of a time management plan, how should one treat unpleasant tasks?

They should be saved for last, to prevent the associate from getting in a bad mood.

These tasks appear at the top of the list and should be completed as early as possible

These tasks should not appear on the “to do” list.

Unpleasant tasks can go anywhere on the list, as long as they are scheduled and completed by Friday.

59 of 100 – A seller gives a property disclosure form to a buyer, completed to the best of his knowledge. Some items are marked “unknown.” What action should the buyer take?

The seller is responsible for the repair of items that were checked unknown; the buyer does not need to do anything.

The buyer does not need to do further investigation. The buyer’s broker is responsible.

The seller and buyer will share the repair cost for any item that was checked unknown and later breaks.

The buyer should practice due diligence and investigate the condition of any unknown item.

60 of 100 – A young couple has received a job transfer that will take them across the country. How will the couple MOST likely begin their search for a new home?

By following the National Association of Realtors on Twitter and Facebook.

Have a real estate agent in their home town find them a real estate agent in the new location.

Read the classifieds in a newspaper from their new area.

Start looking at property on the Internet.

61 of 100 – Which costs negotiated at closing would normally be the buyer’s expense?

Transfer taxes and repairs.

Owner’s title policy.

Inspection fees.

Home warranty.

62 of 100 – If a broker is indemnified by the seller in a listing agreement, the broker is protected from:

Damage or loss caused by seller misrepresentation.

Any liability for the broker’s misconduct.

Any commission agreement.

Buyer default, once a purchase agreement is executed.

63 of 100 – What are two of the most common reasons that a sales associate or broker gets his or her license revoked or suspended?

Acting as a transaction broker or dual agent.

Misrepresentation and fraud.

Collusion with other brokers and use of Internet marketing.

Refusal to discriminate and use of puffery.

64 of 100 – A buyer makes an offer to purchase and gives a seller a written agreement with consideration. If the seller is required to sell, but the buyer is not required to buy, what type of a contract is this?

A void agreement.

A lease contract.

An option contract.

An implied contract.

65 of 100 – A “due on sale” clause in a mortgage requires that:

The lender be notified if the property is sold.

The existing loan be paid in full rather than taken over by a new buyer.

The sale of the property be approved by the Homeowner’s Association.

The seller of the home must sell the property within five years.

>>> 66 of 100 – A six-plex with a purchase price of $345,000 requires a down payment of 20%. The note rate will be 7.25%. The monthly payment is $1883; the expenses are $25,000 per year including a reserve amount of $10,397. The Effective Gross income is $62,000 per year. The Net Operating income for the above property is:





67 of 100 – How would a buyer’s agent present an initial offer to a listing agent to protect the buyer’s interest and promote the buyer’s offer?

Tell the listing agent that you will tweet the offer.

Ask the listing agent for a convenient time and place to meet.

Give the essential terms of the offer to the Commission over the phone. The Commission will inform the seller’s agent.

Call the seller directly to discuss price and terms.

68 of 100 – In real estate, the abbreviation “FSBO” means:

Foreclosure Settlement by Occupant.

Fee Simple by Owner.

For Sale by Owners.

Fairly Secured Buyer’s Opinion.

69 of 100 – What is the documentary stamp tax on the mortgage note when a buyer obtains a VA loan with a 100% LTV for a purchase price of $359,000? The tax rate is $.35 per $100.





70 of 100 – When building a website, which item would a new licensee NOT want to include?

A place for viewers to sign up for an E-newsletter.

YouTube videos of current listings.

Information regarding your “farming” district or your ideal client.

Testimonials from previous clients.

71 of 100 – According to the Residential Sale and Purchase Contract, the buyer has five days from end date of the inspection period to:

Complete closing.

Obtain the certificate of occupancy.

Contact the seller regarding any repairs that need to be made.

Obtain a formal appraisal.

72 of 100 – As a single buyer’s agent, you must safeguard any information the buyer shares with you that could weaken his or her bargaining power. This responsibility is known as:

Full disclosure.

Skill, care, and diligence.



73 of 100 – A large apartment complex is outdated, showing an extreme amount of wear and tear. The owner must remodel the units to reduce the high vacancy rate. What type of maintenance is this?





74 of 100 – Which statement would be MOST effective when contacting owners of expired listings to encourage them to re-list?

Let me tell you about me and my firm.

Your house was so overpriced that it would not sell.

The agent that your home was listed with was not as experienced as me.

I would like to provide information to help you understand why your home did not sell.

75 of 100 – If a purchase contract for the sale of 20 acres listed a purchase amount as a price per acre, rather than a fixed sales price, what would the status of the accepted offer be?

A voidable agreement

A void agreement

A bilateral contract.

A unilateral contract.

76 of 100 – Procuring cause may be defined as:

The reason a seller decided to list their property.

Causing a chain of events that produces the initial offer.

The reason a seller listed with a particular broker.

Causing a chain of events that produces a ready, willing, and able buyer who purchases the property.

77 of 100 – If the initial index on an adjustable rate loan is 5% and the margin is 2.75%, what is the note rate if the annual cap is 2% and the lifetime cap is 6%?





78 of 100 – Which type of representation agreement is NOT permissible in Florida?

Dual agency

Designated Sale Associate

Single Agency

Transaction Brokerage

79 of 100 – Broker Vince published an advertisement in a magazine that did not include the name of his brokerage. This is:

Legal in Florida.

An example of a blind ad.

An example of puffery.

An example of conversion.

80 of 100 – An older area of the city now has many quaint shops and businesses located in older homes that were once residential. The conversion of these homes from residential to commercial causing an increase in value is illustrated in which principle of value?

Future value expectation.

Highest and Best Use.



81 of 100 – A regular salaried employee for a Condominium Association, attends meetings, manages employees, arranges for repairs, and rents condos on a nightly basis during the summer season. Which is correct regarding licensing requirements in Florida for this individual?

The employee needs a management license and leasing license.

The employee does not need a real estate license or any other type of license.

The employee needs both a real estate license and a Community Association Manager’s license.

The employee is exempt from real estate licensing, but may need a Community Association Manager’s license.

82 of 100 – In the accepted sales contract, it is stated that the sellers must repaint the outside of the home before closing. This requirement is known as a(n):



Quitclaim act.


83 of 100 – A four-plex has monthly rents of $600, annual property taxes of $1300, and annual insurance of $1500. The monthly mortgage payment is $1400. What is the Net Operating Income (NOI)?





84 of 100 – Regarding requirements for associates and brokers, mandated by the National Association of REALTORS® and the Florida Real Estate Commission (FREC), which statement is correct?

The FREC determines which actions of a broker or associate are violations of the REALTOR® Association.

The REALTOR® Association Code of Ethics applies to ALL Florida licensees.

Membership in the National Association of REALTORS® is voluntary.

If a broker or associate performs according to the REALTOR® code of Ethics, FREC rules do not apply.

85 of 100 – An enforceable contract for purchase and sale is an agreement with:

earnest money.


no consideration.

no capacity until inspections are performed.

86 of 100 – What is the purpose of the home warranty?

To guarantee that no mechanical item in a home will break.

To insure that the new buyer has all new appliances.

To protect the buyer against damage caused by hurricanes.

To reduce repair expense for mechanical items and covered systems.

87 of 100 – An Affiliated Business Arrangement Disclosure (AFBA) tells the buyer:

That the title company and broker are related.

The mortgage broker and title company know the appraiser.

That the title company will pay a referral fee to the buyer’s agent.

That the closing agency benefited from a business relationship with a service provider the buyer used in the transaction.

88 of 100 – A property with an asking price of $825,000 has a capitalization rate of 12%. The interested investor has told the broker to make an offer using an 8% capitalization rate. What will the offering price be?





89 of 100 – Which statement is correct about a comparative market analysis?

The more similar the comps are, the more accurate the list price of the subject will be.

A comparative market analysis must look back at data from the last 10 years.

The data used in a comparative market analysis cannot be shared with the buyer. Only the final range may be given.

A comparative market analysis can be used as an appraisal.

90 of 100 – If a buyer is pre-approved prior to finding a property, what step is necessary for him to perform, once he finds a property and obtains a purchase contract?

The buyer does not need to do anything.

The buyer deposits the funds necessary for closing into the broker’s escrow account.

The buyer should contact the lender to give them the property address and copy of the contract.

The title company should perform a preliminary title report for the lender.

91 of 100 – The seller says that he will repair the leaky roof when the sales contract is signed. The day prior to closing, the seller tells the listing agent that he is not going to fix it. Failure to inform the buyer is:




Recommended to salvage the deal.

92 of 100 – A buyer made an offer on a property of $220,000, which the seller countered at $232,000. The counter-offer expired at 5 p.m. on May 18.  Before May 18 at 5 p.m., another agent brought an offer of $234,000.  If the seller wants to sign the offer of $234,000 as written, what notification must be given to the offeree of the first offer?

No notification.

A written revocation of offer.

A verbal notification of the withdrawal.

A written cancellation and release of the first contract.

93 of 100 – Which of the following would make a property’s title unmarketable?

If the property does not have flood insurance.

If a previous owner places an encumbrance on the title.

If the owner asks for too much money when sellng.

If an owner sells his or her house without a real estate agent.

94 of 100 – In lending markets that are neither guaranteed nor insured, there are two main categories of loan types. These are:

Fixed and adjustable rate loans.

30-year and 15-year loans.

Bi-weekly and option ARM loans.

Stated income and conforming loans

95 of 100 – A broker has contacted a FSBO (for sale by owner) because the broker legitimately has a prospect for the home. When the broker views the home, what notice must be given to the seller?

The Transaction Broker notice.

The No Brokerage Relationship notice.

The Designated sales associate notice.

The Consent to Transition to Transaction Broker notice.

96 of 100 – Which is false regarding the listing price of a property?

The listing price should be advertised consistently.

The listing price is a invitation to negotiate.

The listing price is determined by the listing agent and not the seller.

The listing price and sales price are often not the same.

97 of 100 – A binding real estate purchase agreement is required to have

Two witnesses .

A notary’s stamp .

An adequate legal description .

An earnest money deposit .

98 of 100 – What is a disadvantage of a balloon payment?

A balloon increases the interest rate on the note .

A balloon calls for a large sum to be paid after a peroid of time, either in cash or by refinancing .

A balloon increases the lenderprofit and borrower cost .

The borrower cannot own the house if a balloon is required .

99 of 100 – Which is correct regarding agency disclosure and the rental or lease of real property?

Property management is defined as a real estate activity. There is not a difference and the same disclosures apply .

Transaction Brokerage is the only relationship available in the rental or leasing of real estate .

Designated Rental Associate is the proper disclosure to use with property management activity .

The agency disclosure requirements do NOT apply to rental or lease property unless the agreements contain an option to purchase.

100 of 100 – What is one effect of leverage in a real estate transaction?

Leverage guarantees a sound investment .

A property is more liquid if it is leveraged .

Leverage puts less of the borrow’s own funds at risk .

An investment has more depreciation if it is leveraged .