Question Set 1

(ANSWERS WILL BE REVEALED WITH PROPER SUBSCRIPTION)

Question set 1 WITH NO ANSWERS

 

 

1. Which lien is an example of a specific lien?

 

 

2. A transaction broker discloses to a buyer who is considering making an offer on listed property that the seller will go as much as $10,000 lower than the listed price. Which duty has the licensee violated?

 

3. An appraiser calculates his fee based upon a percentage of the subject property’s market value. This is:

 

4. Which statement is TRUE regarding VA loans?

 

5. What township is located three tiers south and two ranges west of T3N R2W?

 

6. A small neighborhood restaurant is allowed to continue to operate even though current zoning ordinances do not allow commercial use. The property owner has what type of exception to the zoning code?

 

7. Which instrument is used to transfer ownership of a mortgage from one company or individual to another?

 

8.   Make a statement concerning tenant security deposits on residential leases that is TRUE?

 

9. Planning commissions commonly do NOT have the final authority to decide on what?

 

10. A home has excessive electric bills in the summer months due to single pane sliding glass doors along the west wall. In this instance which type of depreciation will the appraiser likely consider?

 

11. Which type of window is the least energy efficient?

 

12. The Federal Reserve’s duties do NOT include ?

 

13. New owners acquire residential property before January 1st of this year. The owners have until what date in the current year to file for the Florida homestead tax exemption?

 

14. A group license-allows a sales associate or broker associate employed by an owner to ?

 

15.   Make a statement that is TRUE regarding a title company holding the escrow funds?

 

16. A contractor builds homes on several vacant lots in an established subdivision of 12 to 20–year–old homes. The contractor advertises the homes for sale to prospective buyers. What type of residential construction is this?

 

17. When real property is pledged as security for a debt it is known as?

 

18. Which legal procedure is used to determine a fair price in an eminent domain action?

 

19. Which violation of real estate law is a misdemeanor of the first degree?

 

20. A buyer and a seller are disputing a contract for sale and purchase. They agree to submit the matter to a third party who will make a binding determination regarding the matter.

         This type of settlement is called?

 

21. A fractional piece of land less than a full quarter section located along the banks of a lake is known as ?

 

22. Three brothers join together to purchase property. The brothers want their interest in the property to go to their spouses in the event of their deaths. They have created which type of estate or tenancy?

 

23. Make a statement that is TRUE regarding the federal telemarketing law?

 

24. What is the statute of limitations for written contracts?

 

25. When leased property is sold , the security deposits and advance rents are transferred where?

 

26. Risk of vandalism is classified as which type of risk?

 

27. A lead–based paint disclosure must be given to?

 

28. Which property is exempt from property taxes?

 

29. The law which requires lenders to provide borrowers with good faith estimates of probable closing costs at the time of application for a loan is the?

 

30. A parcel of real estate has been left to a woman through her husband’s will for her use and enjoyment during her lifetime, with the provision that the property goes to her stepson at her death. What interest does the woman hold?

 

31. Placement of the windows is most important on which type of lot if the homeowner is concerned about the possibility of vehicular headlights shining into the front windows?

              

32. Which individual is exempt from real estate licensure?

 

33. Property values have increased in a residential neighborhood approximately 8 percent per year. An appraiser chooses a comparable sale that occurred six months ago in the same neighborhood. Which adjustment will be required?

 

34. Martha, Ellen, and Howard purchased an investment property as joint tenants. Ten years later Howard sold his interest in the property to Andrew. Andrew recently died. Who will receive Andrew’s interest in the investment property?

 

35. Efficiency Rating Act does NOT require-the seller to?
36. Which item is added to rental income to calculate effective gross income?

 

37. An administrative complaint is issued against a broker for failure to properly maintain his escrow account. The attorneys for the DRE and the broker’s attorney reach an agreement as to the penalty for the license law violation. This agreement is referred to as a ___?

 

38. Make a statement that is TRUE regarding a fee waiver for military veterans?

 

39.   Make a legal description that contains 2.5 acres?

 

40.   Name a variable that influences the demand for real estate?

 

41. The four characteristics of value do NOT include which characteristic?

 

42. A real estate firm has a property management agreement with a woman. A licensed sales associate from the firm calls the woman to inform her that he has found a tenant for the woman’s residence. The woman asks the sales associate, “Do they have dark skin?” How should the sales associate reply?

 

43. Which action associated with water rights will cause the uncovering of additional land due to the gradual receding of water?

 

44. The title to a parcel of real property is not effectively conveyed until a valid deed is ?

 

45. Which expense may NOT be deducted when calculating taxable income for an investment property?

 

46. A broker complied with an escrow disbursement order (EDO). Later, the buyer sued the broker and the buyer was awarded a judgment of $25,000. The buyer’s attorney fees and courts costs totaled $3,500. The real estate broker’s attorney’s fees totaled $4,000.

Punitive damages of $10,000 were also awarded by the court. What is the maximum amount that can be paid from the Real Estate Recovery Fund as a result of the judgment?

 

47. IRS regulations require buyers to withhold what percent of the gross sale price when purchasing property from a foreign seller?

 

48. Which duty is ONLY required in single agent relationships?

 

49. Which entity guarantees mortgage backed securities with the full faith and credit of the U.S. government?

 

50. Which solution is NOT a remedy for the breach of a real estate sale contract?

 

51. A closing is set for July 15. How will the property taxes be entered on the closing statement?

 

52. Under the statute of frauds, which element is required for contracts pertaining to the purchase and sale of real property (except for certain specific exceptions)?

 

53. Which statute gives a real estate broker lien rights against an owner’s net sale proceeds for earned commission?

 

54. A sales associate received a prospect’s binder deposit on Tuesday morning. That afternoon the sales associate presented the prospect’s offer, and it was accepted by the seller. The sales associate turned the binder deposit over to his broker on Wednesday morning. The broker has until the end of business on which day to deposit the check into the escrow account?

 

55. A broker may reopen a branch office in the same location during the same license period by __?

 

56. Which information must be disclosed to a prospective buyer regarding a particular property?

 

57. A sales associate sold and closed on two homes and delivered the commission checks to his broker on Wednesday. When the sales associate asked for his split of the commission checks on Friday, the broker indicated that he had spent all of the money on overhead and now had nothing with which to pay the sales associate. The broker can be charged with __?
    

 

58. A residential real estate investment property is purchased for $300,000 with the land valued at $70,000. Based on the IRS straight–line method depreciation deduction what is the  correct calculation?

 

59. Mark Smith is preparing to open a real estate office. He has registered the trade name Fast Sales. He has two sales associates, Betty Able and John Stone. What information is NOT required to be included on the brokerage entrance sign?

 

60. The legal evidence that gives a purchaser the right of occupancy in a cooperative unit is a?

 

61. The direction opposite South 20 degrees West in a metes–and–bounds description is?

 

62. The term used to measure the amount of energy an electrical appliance consumes is?

 

63. Which property would be defined as residential real estate under Chapter 475, Florida Statutes?

 

64. One method of controlling the money supply is for the Federal Reserve to increase or decrease the amount of funds member banks must set aside. What is this method called?

 

65. A local lender charges five discount points on a conventional mortgage loan. How much will the discount points increase the return to the lender?

 

66. What is the state’s intangible tax on a new mortgage of $10,000?

 

67. What is the legal term for a type of evidence that, unless refuted by evidence to the contrary, will prove a case?

 

68. A broker received conflicting demands from the buyer and the seller for the earnest money deposit. The broker unsuccessfully attempted to resolve the issue between the parties to the contract. Eleven business days after receiving conflicting demands the broker notified the Florida Real Estate Commission of the conflict. How many business days does the broker have remaining to implement a settlement procedure?

 

69. You are analyzing an investment property. You forecast the effective gross income to be $396,000. The operating expenses for this property, including a $4,400 reserve for replacements, total $176,000. What is the property’s net operating income?

 

70. The earnest money deposit normally appears on the closing statement as a credit or debit to who?

 

71. How does a quitclaim deed differ from a bargain–and–sale deed?

 

72. The constitutional homestead law protects real property from forced sale to satisfy which type of delinquent debt?

 

73. Which requirement is one of the elements of a valid real estate contract?

 

74. What is the per diem amount that Florida Real Estate Commission (FREC) members receive for participating in official meetings and other FREC business?

 

75. A DBPR investigator is authorized, in cases that involve a first–time offense of a minor violation, to issue a?

 

76. Who issues a recommended order at the conclusion of a formal hearing?

 

77. In lien theory states..?
78. Which item would be most likely classified as a fixture once incorporated into real property?

 

79. A buyer offered $225,000 for a seller’s property. The seller countered at $250,000. The buyer did not accept the seller’s counteroffer. The seller told her broker that she was revoking the counteroffer and accepting the buyer’s original offer. Name a TRUE statement regarding this situation?

 

 

80. A license is ineffective when it is?

 

81. Which requirement must be met for individuals acquiring a Florida sales associate’s license through mutual recognition?

 

82. A comparable property recently sold for $210,000. Compared with the subject property, the comparable is built of superior materials valued at $10,000. The comparable also has less square footage than the subject property, valued at $15,000. What is the adjusted sale price of the comparable?

 

83. Can an insurance company refuse to provide insurance coverage to applicants within a particular neighborhood because of the racial and ethnic characteristics of the neighborhood?

 

84. An investor’s own funds used to purchase investment real estate are called __?

 

85. Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans differ in which ways?

 

86. Which clause in a mortgage instrument allows the mortgagee to advance the due date of the unpaid balance if the borrower defaults on the loan?

 

 

87. Which clause in a deed indicates the duration of the estate being conveyed?

 

88. A real estate agent has been licensed in Texas for one year. The licensee worked for a Texas broker but recently moved to Florida. The agent wants to open his own brokerage in Florida so he recently completed the Florida broker prelicense course. Is the Texas licensee eligible to take the Florida broker license exam?

 

89. A business owner has a five–year variable lease. The first year of the lease calls for rent of $23.50 a square foot based on a beginning index of 189. The index increases to 194 at the beginning of the second year. What is the new rental rate?

 

90. A developer purchased two 135–front–foot lots for $22,900 net each and divided them into three lots of equal front footage. The developer sold the lots for $230 per front foot.

Calculate the developer’s percentage of profit. (Round to nearest whole percentage point.)

 

91. An appraiser has assigned the following weights to three adjusted sale prices:

Comparable 1: $429,500 45 percent weight

Comparable 2: $425,750 30 percent weight

Comparable 3: $410,900 25 percent weight

What is the reconciled estimated market value of the subject property?

 

92. A duplex is scheduled to close on February 15 (not a leap year). The seller collected rent for February at the first of the month amounting to $588 per unit. According to the purchase and sale agreement, the buyer is due the rental income for the day of closing.

Calculate the proration using the actual number of days in the month?

 

93. A multifamily unit consists of 10 two–bedroom apartments that rent for $900 per month and 15 three–bedroom apartments that rent for $1,200 per month. The vacancy and collection loss is estimated to be 6 percent. Management is 5 percent of effective gross income. What is the annual vacancy and collection loss allowance for this property?

 

94. You are appraising a three–year–old, single–family residence. The total square footage of the livable area is 2,500. The garage is 500 square feet. According to figures obtained from a cost–estimating service, the base construction cost per square foot of livable area is $82 and $66 per square foot structure.

 

95. Property tax rates are: County 9.5 mills, City 8.8 mills, and School Board 9.5 mills. A homestead has been assessed at $195,000 for tax purposes, and the owner has qualified for homestead tax exemption. What is the homeowner’s savings resulting from the homestead exemption?

 

96. Buyers have obtained a mortgage loan of $122,000 at 81⁄2 percent interest. The loan will be amortized by equal monthly payments of $938.07 over 30 years that include principal and interest. How much of the buyers’ second month’s payment will be applied to principal?

 

97. A prospective borrower is considering applying for a FHA–insured mortgage loan. The borrower has an estimated monthly housing expense of $1,486. His total monthly obligations are $2,050. If the borrower’s gross income is $98,400, what is his monthly housing expense ratio? (Round answer to nearest whole percent.)

 

98. –
    

 

99. Gross income is calculated by?
100. Net income is calculated by?
101. value (V) x capitalization rate (R) = ?