Practice Exam Questions (ANSWERS WILL BE REVEALED WITH PROPER SUBSCRIPTION)
Practice exam questions WITH NO ANSWERS
Question #1 of 100
Which individual is NOT exempt from real estate licensure under F.S. 475?
A)
A court-appointed personal representative liquidating the real property of an estate
B)
A person who sells cemetery lots for compensation
C)
A business broker who negotiates leases of business property only
D)
A salaried county employee who appraises railroad property for tax purposes
Question #2 of 100
The rate of interest that the Federal Reserve Bank charges member banks for borrowing from the Federal Reserve Bank is called
A)
the prime rate.
B)
the reserve requirement.
C)
discount points.
D)
the discount rate.
Question #3 of 100
A broker’s license was involuntary inactive for two years and one month. To operate again as an active licensee, the broker must complete
A)
FREC Course I and pass the sales associate’s licensing exam.
B)
42 hours of continuing education and pass the continuing education course exam.
C)
FREC Course II and pass the broker’s licensing exam.
D)
60 hours of the broker’s post-licensing education course, 28 hours of continuing education, and pass the broker’s licensing exam.
Question #4 of 100
The law requiring that the annual percentage rate be disclosed to consumers is the
A)
Truth in Lending Act/Regulation Z.
B)
Florida “Little FTC Act.”
C)
Equal Credit Opportunity Act.
D)
Real Estate Settlement Procedures Act.
Question #5 of 100
A prospective tenant purchased a rental list from a broker and then rented a duplex that the list said included all utilities. The tenant discovered that only water was included in the rent and notified the broker within the legislated time limit. The tenant is entitled to
A)
no refund because the tenant agreed to rent the property.
B)
75% of the rental list fee.
C)
100% of the fee paid.
D)
nothing unless the request for a refund is made in writing.
Question #6 of 100
If a seller refuses to pay a broker her sales commission after the residential property is sold, the broker may
A)
file a suit in the courts for her commission.
B)
refuse to permit the closing to occur.
C)
keep the binder deposit as just compensation.
D)
file a vendor’s lien on the owner’s property.
Question #7 of 100
Which statement concerning tenancy by the entireties is FALSE?
A)
The deed must specifically state intent to create such a tenancy.
B)
The estate includes right of survivorship.
C)
The property must be owned by a wife and her husband.
D)
It is a form of concurrent ownership.
Question #8 of 100
Sales associate Terry Stoufer may have which information entered on his license, if applicable?
A)
Terry Stoufer, LLC
B)
Best Homes, Inc.
C)
Terry Stoufer Enterprises, LLC
D)
Terry’s Real Estate Services
Question #9 of 100
A homeowner originally purchased a new home for $244,900. During the period of ownership, the homeowner spent $27,000 in capital improvements. The homeowner sold the home 16 years later for $329,900. The homeowner paid a brokerage fee of 6% of the sale price and paid other closing costs totaling $2,750. What was the homeowner’s capital gain from the sale?
A)
$35,510
B)
$85,000
C)
$35,456
D)
$62,456
Question #10 of 100
A title theory state is one in which a mortgage
A)
creates only an encumbrance on title to a property.
B)
transfers title to the lender or escrow agent until the loan is paid.
C)
creates a tenancy in common until the loan is paid.
D)
creates a joint tenancy for the lender until the loan is paid.
Question #11 of 100
Failure to comply with the statute of frauds will result in
A)
an illegal contract.
B)
a revocation of licensure.
C)
an unenforceable contract.
D)
a charge of fraud.
Question #12 of 100
A real estate company represents a motel owner who wishes to list one of his motels for sale. The owner has told the listing agent that he does not want to sell the motel to any racial minorities. Which statement is TRUE?
A)
The listing agent may not refuse to show or sell the motel to a minority buyer; however, the owner may refuse to sell to certain individuals if he sells the property “for sale by owner.”
B)
It is a violation of the Fair Housing Act to abide by the owner’s wishes.
C)
To refuse to sell or lease any real property based on a party’s race is a violation of the federal Civil Rights Act of 1866.
D)
Because this is not a sale of a residential dwelling under the Fair Housing Act, the listing agent may honor the owner’s instructions.
Question #13 of 100
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. The broker submitted only the first offer, and the seller, his principal, accepted it. The broker
A)
has fulfilled his duty to the seller because the offer was for the seller’s full price and terms.
B)
is not required to submit the second offer.
C)
is guilty of conversion.
D)
has violated his fiduciary duty to his principal.
Question #14 of 100
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
A)
$25,000.
B)
$50,000.
C)
$150,000.
D)
$75,000.
Question #15 of 100
Which savings association is federally chartered?
A)
Federal Savings Association
B)
Trust Savings, N.A.
C)
National Savings and Loan
D)
First National Savings Association
Question #16 of 100
What authority originates from the U.S. Constitution and relates to protection of health and welfare of citizens at local levels?
A)
Police power
B)
Situs
C)
Escheat
D)
Community protection power
Question #17 of 100
A developer who wants to develop a new subdivision must submit
A)
an existing land-use study to the planning commission.
B)
a site plan to the zoning board of adjustment.
C)
a subdivision plat map to the planning commission.
D)
a thoroughfare study to the Department of Transportation.
Question #18 of 100
A lender quotes a mortgage loan of $265,000 at 4.5% interest. The monthly payment is $1,342.72. How much of the second monthly payment will apply to the principal reduction?
A)
$350.28
B)
$351.72
C)
$347.65
D)
$348.97
Question #19 of 100
If all legislated requirements have previously been met, an active broker in Florida may hold an active license in
A)
Florida only.
B)
Florida and any other state or foreign country whose licensing laws have not been violated.
C)
any other state or foreign country whose licensing laws have not been violated, provided the Florida license is placed on inactive status.
D)
Florida and any other state whose licensing laws have not been violated; however, a licensee may hold only one active license at any one time.
Question #20 of 100
In Florida, real property is assessed on January 1 of each year, and property taxes become a lien on the property on
A)
January 1, the same year.
B)
December 31, the same year.
C)
November 1, the same year.
D)
April 1, the next year.
Question #21 of 100
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 him to three model centers listed by three competing real estate companies. The sales associate must give a written no brokerage relationship notice to
A)
the model home employees at each model center.
B)
the buyer.
C)
no one.
D)
the owner-developer of each new homes subdivision.
Question #22 of 100
Which element is NOT essential in a valid real estate sale contract?
A)
Competent parties
B)
A legal objective or purpose
C)
The vendor’s signature
D)
An earnest money deposit
Question #23 of 100
A real estate license may be revoked without prejudice for which action?
A)
Issuance of a license by mistake of the Commission
B)
Culpable negligence
C)
Conversion
D)
Failure to account and deliver escrow funds
Question #24 of 100
The documentary stamp tax on deeds is based on the
A)
entire sale price of the property.
B)
amount of the mortgage loan.
C)
amount of the new mortgage.
D)
“new” money involved in the transaction.
Question #25 of 100
A tenant signed a 10-year lease 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 is a
A)
fixed lease.
B)
variable sale lease.
C)
net lease.
D)
gross lease.
Question #26 of 100
Title to real property is technically conveyed when the deed is
A)
recorded in the public records.
B)
acknowledged.
C)
signed and witnessed.
D)
voluntarily delivered and voluntarily accepted.
Question #27 of 100
You are appraising a five-year-old, single-family home. The livable area is 60 feet by 50 feet. The garage is 24 feet by 20 feet. According to figures obtained from a cost-estimating service, the base construction cost per square foot of livable area is $103 and $92 per square foot for the garage. Calculate the reproduction cost new of the structure.
A)
$358,440
B)
$353,160
C)
$303,720
D)
$345,440
Question #28 of 100
The duties of a real estate licensee, owed to a buyer or a seller who engages the real estate licensee as a single agent, do NOT include
A)
dealing honestly and fairly.
B)
limited confidentiality, unless waived in writing by a party.
C)
presenting all offers and counteroffers in a timely manner, unless previously directed otherwise in writing.
D)
loyalty.
Question #29 of 100
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 as a result of a serious car accident. She is also legally blind. What is her cumulative county tax exemption on her homesteaded residence?
A)
$50,500
B)
$55,000
C)
$51,000
D)
$26,000
Question #30 of 100
A broker has a listing priced at $120,000. An uninformed buyer offers $125,000 for the property. The broker buys the property for $120,000, then sells it for $125,000. Which statement is FALSE?
A)
The broker has violated her duties to the seller.
B)
The $5,000 profit is called a “secret profit.”
C)
The $5,000 profit is called an “overage.”
D)
This is legal as long as the broker withdraws from the listing first.
Question #31 of 100
Which statement does NOT describe a planned unit development?
A)
Industrial parks are a welcomed offshoot of the PUD concept.
B)
Dwelling units are typically clustered, with planned green space areas between clusters.
C)
The open space areas are maintained by a community association.
D)
A variety of types of housing may be used.
Question #32 of 100
The financial term applied to the use of borrowed funds to finance the purchase of an office building is
A)
disintermediation.
B)
intermediation.
C)
liquidity.
D)
leverage.
Question #33 of 100
Essential elements of a deed do NOT include
A)
signature of a competent grantee.
B)
voluntary delivery and acceptance.
C)
good or valuable consideration.
D)
signature of two witnesses.
Question #34 of 100
When the Fed wants to ease a tight money supply, it may
A)
buy Treasury securities.
B)
issue new Treasury securities.
C)
increase the discount rate.
D)
raise the reserve requirement.
Question #35 of 100
A licensee makes a statement that is material to the transaction as though it were a fact when the licensee does not know whether 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 suffers damages. This situation constitutes
A)
deceptive services.
B)
culpable negligence.
C)
fraud.
D)
breach of trust.
Question #36 of 100
A residential zone requires at least 7,500 square feet per lot. The developer is reserving 25 percent of the land for streets, sidewalks, and a community center. The tract of land for the development consists of 175 acres. How many residential lots are available for development?
A)
813
B)
762
C)
1,106
D)
254
Question #37 of 100
Depreciation (cost recovery)
A)
does not include the mortgaged portion of an apartment building in the amount to be depreciated.
B)
may be taken on a principal residence.
C)
is an allowable deduction that requires no current outlay of cash.
D)
includes the cost of land in the amount to be depreciated.
The statute of frauds applies to
A)
the transfer of personal property.
B)
acts of fraud by licensees.
C)
instruments of conveyance of real property.
D)
all legal contracts and other documents.
Question #39 of 100
The statute of limitations is the authority that outlines the
A)
period of time during which a contract may be enforced.
B)
requirement that real estate sale contracts be in writing.
C)
essential elements of a contract.
D)
remedies available in case of breach.
Question #40 of 100
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
A)
reversion estate.
B)
life estate.
C)
fee simple estate.
D)
remainder estate.
Question #41 of 100
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 percentage.)
A)
21%
B)
2%
C)
25%
D)
18%
Question #42 of 100
A broker who changes the business address must notify the Commission of the address change within how many days?
A)
5
B)
60
C)
10
D)
30
Question #43 of 100
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
A)
wraparound mortgage.
B)
blanket mortgage.
C)
package mortgage.
D)
chattel mortgage.
Question #44 of 100
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?
A)
$440,000
B)
$220,000
C)
$346,500
D)
$198,000
Question #45 of 100
A property closes on June 10, with the day of closing charged to the buyer. The buyer is assuming the seller’s mortgage loan with its principal balance of $227,500 at 4.5% interest. Which entry will appear on the closing statement?
A)
Credit to seller and debit to buyer in the amount of $252.43
B)
Credit to seller and debit to buyer in the amount of $589.01
C)
Debit to seller and credit to buyer in the amount of $589.01
D)
Debit to seller and credit to buyer in the amount of $252.43
Question #46 of 100
The purchase price of a business minus the value of the tangible assets of that business equals the intangible assets of the business. This is called
A)
goodwill.
B)
common stock.
C)
real property.
D)
personal property.
Question #47 of 100
Which variable does NOT influence demand?
A)
Availability of construction loans
B)
Consumer tastes and preferences
C)
Income of consumers
D)
Availability of mortgage credit
Question #48 of 100
A licensed real estate broker has been hired by a lender to appraise a home for a buyer who has applied for an FHA loan. Which statement is TRUE regarding this situation?
A)
The broker’s license entitles him to appraise this property.
B)
The broker may not charge for this assignment.
C)
The broker is required to be a state-certified appraiser to perform this appraisal assignment.
D)
The broker may not accept this appraisal assignment because to do so is a conflict of interest.
Question #49 of 100
A sales associate received a $5,000 earnest money deposit from a buyer. She immediately delivered the deposit to her broker. The broker deposited the check on the third business day into his general operating account.
A)
This is the proper procedure for handling earnest money deposits.
B)
This is an example of commingling of escrow funds.
C)
This is the proper procedure, provided the broker uses a title company that has trust powers.
D)
The broker is guilty of dishonest dealing by trick, scheme, or devise.
Question #50 of 100
A transaction broker does NOT have which duty?
A)
Full fiduciary duties to both the buyer and the seller
B)
Duty of using skill, care, and diligence in the transaction
C)
Duty of accounting for all funds
D)
Duty to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer
Question #51 of 100
Question ID: 554130
The bundle of legal rights associated with real property ownership does NOT include the right of
A)
control.
B)
disposition.
C)
possession.
D)
intent.
Question #52 of 100
If you have located a township numbered T2S, R4E, the township due south of that township is
A)
T2N, R1E.
B)
T2S, R3E.
C)
T3S, R4E.
D)
T2S, R5E.
Question #53 of 100
Which action is NOT a requirement under TILA-RESPA?
A)
Give mortgage applicant the loan estimate disclosure within three business days
B)
Give a copy of the special information booklet to the mortgage applicant within three business days
C)
Give mortgage applicant a list of competing lenders so that the consumer can comparison shop for the best rate
D)
Give the mortgage applicant a closing disclosure at least three business days before closing
Question #54 of 100
A sales associate who is employed by an owner-developer who owns properties in the name of various entities may be issued
A)
multiple licenses.
B)
a commercial license.
C)
a group license.
D)
a branch office license.
Question #55 of 100
A mortgage in which changes in the interest rate may cause changes in the monthly payment amount is called
A)
a partially amortized mortgage.
B)
a graduated-payment mortgage.
C)
an escalator mortgage.
D)
an adjustable-rate mortgage.
Question #56 of 100
The seller instructs the listing broker not to show his home to members of a protected class. The broker informs the seller that this is a violation of fair housing laws, but the seller is insistent. Which choice is the broker’s best course of action under these circumstances?
A)
Withdraw from the listing agreement
B)
Follow the seller’s instructions because to do otherwise would violate the broker’s fiduciary duties to the seller
C)
Report the seller to the DBPR
D)
Report the incident to the Fair Housing Administration
Question #57 of 100
Individuals who solicit mortgage loans, accept applications for mortgage loans, and negotiate the terms of new mortgage loans on behalf of a borrower are called mortgage
A)
agents.
B)
lenders.
C)
loan originators.
D)
finders.
Question #58 of 100
Constructive notice is
A)
information advertised in the newspaper.
B)
provided by recording in the public records.
C)
information learned by reading, seeing, or hearing.
D)
notarizing a conveyance.
Question #58 of 100
Constructive notice is
A)
information advertised in the newspaper.
B)
provided by recording in the public records.
C)
information learned by reading, seeing, or hearing.
D)
notarizing a conveyance.
Question #59 of 100
Which valuation assignment is exempt from USPAP requirements?
A)
Appraisal assignment conducted by a real estate broker for the purpose of an estate sale
B)
Broker’s price opinion prepared for a lender concerning a short sale
C)
Appraisal for the purpose of refinancing the first mortgage loan
D)
Appraisal report prepared by a certified appraiser
Question #60 of 100
The government survey method of legal description
A)
features a critical reference called the point of beginning.
B)
was used in the 13 original colonies.
C)
has as a basis a principal meridian and a base line.
D)
is the most accurate method.
Question #61 of 100
An appraiser has assigned the following weights to three adjusted sale prices:
- Comparable 1: $322,500, 40% weight
- Comparable 2: $319,000, 35% weight
- Comparable 3: $312,000, 25% weight
What is the recorded estimated market value of the subject property?
A)
$318,650
B)
$286,225
C)
$270,275
D)
$317,425
Question #62 of 100
The formula to calculate the overall capitalization rate is
A)
NOI × value (or price).
B)
NOI ÷ owner’s equity.
C)
debt service × value (or price).
D)
NOI ÷ value (or price).
Question #63 of 100
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
A)
minus $8,000 to the comparable property.
B)
minus $10,000 to the comparable property.
C)
plus $2,000 to the subject property.
D)
plus $10,000 to the subject property.
Question #64 of 100
Which governmental entity must be informed when the FREC takes disciplinary action against a real estate licensee?
A)
Florida Department of Administrative Law
B)
County courthouse where the licensee resides
C)
Division of Firearms and Tobacco
D)
Division of Florida Condominiums, Timeshares, and Mobile Homes
Question #64 of 100
Which governmental entity must be informed when the FREC takes disciplinary action against a real estate licensee?
A)
Florida Department of Administrative Law
B)
County courthouse where the licensee resides
C)
Division of Firearms and Tobacco
D)
Division of Florida Condominiums, Timeshares, and Mobile Homes
Question #65 of 100
Which term refers to a situation where, during the early years of a loan, the principal balance increases?
A)
Graduated payments
B)
Negative amortization
C)
Positive leverage
D)
Reverse annuity
Question #66 of 100
Which information is confidential?
A)
Minutes of the meetings of the FREC
B)
An examinee’s grade on the state licensing examination
C)
The name and address of the principal broker for a particular brokerage entity
D)
Final disciplinary action taken against a licensee
Question #67 of 100
Which statement is FALSE regarding a corporation for profit that is doing business as a real estate broker?
A)
The corporation must be registered with the FREC.
B)
There must be at least one officer who is an active real estate broker.
C)
All stockholders must be registered with the FREC as inactive brokers.
D)
The broker must file the articles of incorporation with the Florida Department of State.
Question #68 of 100
In the cost approach, estimating accrued depreciation involves estimating
A)
the value of allowable expenses.
B)
effective gross income.
C)
the amount of allowable cost recovery.
D)
the loss in value of the improvements.
Question #69 of 100
A man is a 72-year-old retired college professor. The local lender to whom the man applied for a 30-year mortgage denied the man’s loan application, even though he has sufficient income from his pension plan and an excellent credit history.
A)
This is an example of redlining.
B)
This is a violation of fair housing laws.
C)
The lender’s actions violate the Equal Credit Opportunity Act.
D)
The lender’s actions are legal because it is unlikely that the man will survive the term of the loan.
Question #70 of 100
Business brokers appraise businesses using appraisal methods similar to real estate appraisal EXCEPT
A)
liquidation analysis.
B)
working capital analysis.
C)
asset appreciation analysis.
D)
stock, bond, and debenture analysis.
Question #71 of 100
The Florida Real Estate Commission is empowered by law to
A)
impose prison sentences up to 60 days.
B)
reprimand, fine, or otherwise discipline licensees.
C)
levy fines up to, but not exceeding, $500.
D)
assess damages resulting from breach-of-contract suits.
Question #72 of 100
In relation to section 1 of a township, section 12 is due
A)
west.
B)
east.
C)
north.
D)
south.
Question #73 of 100
Which expense is subtracted to derive NOI?
A)
Income taxes
B)
Depreciation
C)
Mortgage payments
D)
Vacancy and collection losses
Question #74 of 100
A seller transfers title to a buyer with a general warranty deed. In which clause of the deed does the seller define the quality of ownership interest conveyed to the buyer?
A)
Seisin
B)
Habendum
C)
Covenant of quiet enjoyment
D)
Covenant of further assurance
Question #75 of 100
Local government exercises its greatest effect on the real estate business by
A)
creating tax shelters for those developing low-income housing.
B)
supervising contractors and their on-the-job performance.
C)
using zoning, taxation, and the planning process.
D)
providing financing where justified.
Question #76 of 100
A person must hold an active real estate license if, for express or implied compensation, the person
A)
manages an apartment building complex on site and for salary only.
B)
rents mobile home lots in a mobile home park.
C)
advertises a list of available rental properties.
D)
manages condominium rentals as a salaried manager for single-unit owners.
Question #77 of 100
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
A)
the next business day.
B)
business on Friday.
C)
business on Wednesday.
D)
business on Thursday.
Question #78 of 100
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 his legal obligation to both the principal and all prospective buyers if he discloses
A)
nothing about the condition of the roof unless specifically asked about the roof’s condition.
B)
that the roof leaks.
C)
that he is bound by confidentiality to his principal.
D)
that the roof appears to be in good condition.
Question #79 of 100
In a deed, the warranty of quiet enjoyment pertains to
A)
property that is completely vacated.
B)
peaceful possession undisturbed by others’ claims of title.
C)
guaranteed satisfaction with the property.
D)
peace and tranquility on and around the property.
Question #80 of 100
Which estate includes the right of survivorship?
A)
Joint tenancy
B)
Tenancy for years
C)
Tenancy in common
D)
Fee simple estate
Question #81 of 100
Which statute prohibits discrimination in hotels, restaurants, and other places of public accommodation if such discrimination is based on national origin?
A)
Florida Fair Housing Act
B)
Civil Rights Act of 1964
C)
Fair Housing Act of 1968 (as amended)
D)
Civil Rights Act of 1866
Question #82 of 100
A seller listed a home for $200,000 and agreed to pay a commission rate of 5%. The MLS stated that the commission would be shared between the listing office and the selling office on a 50-50 basis. The home was sold four weeks later for 90% of the list price. The listing broker paid the listing sales associate 50% of the listing office’s commission. The selling broker paid the selling associate 60% of the selling office’s commission. How much commission did the selling sales associate receive?
A)
$2,700
B)
$5,400
C)
$4,500
D)
$3,000
Question #83 of 100
Which information must be disclosed to all prospective buyers?
A)
A previous occupant was infected with HIV.
B)
The seller’s brother was murdered in the residence.
C)
The neighborhood residents are Hispanic.
D)
The home is situated in a flood-prone area.
Question #84 of 100
Which entity may NOT be registered as a real estate brokerage?
A)
Partnership
B)
Corporation sole
C)
Sole proprietorship
D)
Corporation for profit
Question #85 of 100
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
A)
has not violated F.S. 475.
B)
must secure a communications license from the DBPR.
C)
has violated SEC regulations.
D)
has acted as an unlicensed real estate broker.
Question #86 of 100
Leasehold estates do NOT include
A)
a tenancy at will.
B)
a remainder estate.
C)
an estate for years.
D)
a holdover tenancy.
Question #87 of 100
Which statement is TRUE regarding the monthly payments on a 30-year, fully amortized loan?
A)
Initially, interest is the larger portion of the payment.
B)
Level monthly payments means the same amount of principal is paid each month.
C)
Initially, principal and interest are approximately equal.
D)
Initially, interest is the smallest portion of the payment.
Question #88 of 100
Which clause is included in a mortgage to prevent a subsequent buyer from assuming an existing mortgage loan?
A)
Defeasance clause
B)
Acceleration clause
C)
Prepayment penalty clause
D)
Due-on-sale clause
Question #89 of 100
You have been hired to appraise the local public library building. The approach that is likely to be the MOST relevant is the
A)
public land and property approach.
B)
comparable sales approach.
C)
income approach.
D)
cost approach.
Question #90 of 100
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 sites. The broker sold the site, not knowing that the zoning on that site had been changed to industrial. Which is correct?
A)
The broker is guilty of culpable negligence.
B)
The broker is not guilty of wrongdoing.
C)
The broker is guilty of fraud.
D)
The property owner is guilty of fraud.
Homeowners who have a 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?
A)
$225,000
B)
$500,000
C)
$50,000
D)
$100,000
Question #92 of 100
An example of an ad valorem tax is
A)
an income tax.
B)
a special assessment.
C)
a zoning tax.
D)
a property tax.
Question #93 of 100
A real estate broker is accused of taking money from the company escrow account to pay personal expenses. The broker decides that she does not want to go through the hearing process so the broker turns over her real estate license to the DBPR. What term describes this situation?
A)
Suspension
B)
Emergency suspension
C)
Revocation
D)
Voluntary relinquishment for permanent revocation
Question #94 of 100
Which statement concerning characteristics of the real estate market is FALSE?
A)
Land is indestructible.
B)
The market is slow to respond to changes in supply and demand.
C)
Real estate is immobile.
D)
The real estate market is organized and controlled centrally.
Question #95 of 100
A homesteaded property is located in Jupiter, Florida, in Palm Beach County. The property has been assessed at $185,000. The city tax rate is 8.8 mills, the county tax rate is 9.3 mills, and the school board levy is 6.5 mills. The owner is a widow and has qualified for and received homestead tax exemption. How much will the owner pay in property taxes?
A)
$3,483.50
B)
$3,308.70
C)
$3,471.20
D)
$3,923.70
Question #96 of 100
The DBPR may issue which penalty for an initial offense of a minor violation by a licensee?
A)
Notice of noncompliance
B)
Notice of assignment
C)
Final order
D)
Subpoena to appear
Question #97 of 100
A man earned a $7,500 commission by selling a coin-operated laundry business, which has six more years before the expiration of its present lease. The man
A)
must be registered with the Florida Retail Commission as a business broker.
B)
must be registered with the Florida Real Estate Commission as a business broker.
C)
must be registered with the Florida Real Estate Commission as a real estate licensee.
D)
need not be registered with any state agency in the given situation.
Question #98 of 100
A provision in all mortgages that allows the delinquent mortgagor to avoid foreclosure by paying all the back mortgage payments, late penalties, and costs of collection up until the time of foreclosure sale is the
A)
due-on-sale clause.
B)
equity of redemption.
C)
defeasance clause.
D)
acceleration clause.
Question #99 of 100
The Florida Real Estate Commission must notify which agency when it takes disciplinary action against any of the agency’s licensees?
A)
Division of Florida Condominiums, Timeshares, and Mobile Homes
B)
Division of Professions
C)
Division of Regulation
D)
Division of Time Shares
Question #100 of 100
How much personal money may a broker place in a property management escrow account?
A)
$5,000
B)
$200
C)
$1,000
D)
None
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