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100 Cards in this Set
- Front
- Back
Which lien is an example of a specific lien? |
Vendor |
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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? |
Exercise limited confidentiality |
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An appraiser calculates his fee based upon a percentage of the subject property’s market value. This is |
unethical and a violation of the Uniform Standards of Professional Appraisal Practice’s ethics provision. |
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Which statement is TRUE regarding VA loans? |
VA loans do not have a due-on-sale clause. |
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What township is located three tiers south and two ranges west of T3N R2W? |
T1S R4W |
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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? |
Nonconforming use |
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Which instrument is used to transfer ownership of a mortgage from one company or individual to another? |
Assignment of mortgage |
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Which statement concerning tenant security deposits on residential leases is TRUE? |
Landlords may not commingle tenant deposits with their own funds unless they post an appropriate surety bond. |
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Planning commissions commonly do NOT have the final authority to decide on |
special exceptions. |
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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? |
Functional obsolescence |
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Which type of window is the least energy efficient? |
Jalousie |
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The Federal Reserve’s duties do NOT include |
regulating mortgage rates. |
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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? |
March 1 |
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A group license |
allows a sales associate or broker associate employed by an owner-developer to sell property for all the affiliated entities owned by the developer. |
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Which statement is TRUE regarding a title company holding the escrow funds? |
Within ten business days after the deposit is due under the sale contract, the broker must make a request in writing to the title company for a written verification of receipt of the deposit. |
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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? |
Spec homes |
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When real property is pledged as security for a debt it is known as |
hypothecation. |
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Which legal procedure is used to determine a fair price in an eminent domain action? |
Condemnation |
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Which violation of real estate law is a misdemeanor of the first degree? |
Collecting a fee for inaccurate and out-of-date rental information |
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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 |
arbitration. |
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A fractional piece of land less than a full quarter section located along the banks of a lake is known as a |
government lot. |
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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? |
Tenancy in common |
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Which statement is TRUE regarding the federal telemarketing law? |
Real estate licensees may contact their former customers for up to 18 months following the closing of a transaction, even if the customer’s name is on the national registry. |
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What is the statute of limitations for written contracts? |
5 years |
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When leased property is sold the security deposits and advance rents |
must be transferred to the new property owner at closing. |
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Risk of vandalism is classified as which type of risk? |
Static |
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A lead-based paint disclosure must be given to |
tenants and buyers of all residential property built before 1978. |
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Which property is exempt from property taxes? |
Air force base |
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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 |
Real Estate Settlement Procedures Act. |
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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? |
life estate |
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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? |
T-intersection |
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Which individual is exempt from real estate licensure? |
Person who is appointed by a court of law to liquidate real estate held in an estate |
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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? |
Plus 4 percent for market conditions |
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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? |
Andrew’s heirs |
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The Florida Building Energy-Efficiency Rating Act does NOT require |
the seller, at the seller’s expense, to conduct an energy-efficiency rating of the structure prior to closing. |
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Which item is added to rental income to calculate effective gross income? |
Other income |
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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 |
stipulation. |
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Which statement is TRUE regarding a fee waiver for military veterans? |
The fee waiver applies to all licenses issued by the Department of Business and Professional Regulation. |
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Which legal description contains 2.5 acres? |
SE¼ of SW¼ of SE¼ of NE¼ of Section 9 |
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Which variable influences the demand for real estate? |
Housing prices |
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The four characteristics of value do NOT include which characteristic? |
Surplus |
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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? |
Respond that the tenant’s race is of no relevance, and furthermore, to base the decision of whether to rent to a prospective tenant on race is a violation of the fair housing laws. |
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Which action associated with water rights will cause the uncovering of additional land due to the gradual receding of water? |
Reliction |
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The title to a parcel of real property is not effectively conveyed until a valid deed is |
voluntarily delivered and accepted. |
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Which expense may NOT be deducted when calculating taxable income for an investment property? |
Reserve for replacements |
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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? |
$32,500 |
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IRS regulations require buyers to withhold what percent of the gross sale price when purchasing property from a foreign seller? |
10 percent. |
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Which duty is ONLY required in single agent relationships? |
Full disclosure |
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Which entity guarantees mortgage backed securities with the full faith and credit of the U.S. government? |
B. Ginnie Mae |
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Which solution is NOT a remedy for the breach of a real estate sale contract? |
D. Claim against the Real Estate Recovery Fund |
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A closing is set for July 15. How will the property taxes be entered on the closing
statement? |
A proration debited to the seller and credited to the buyer
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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)? |
In writing |
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Which statute gives a real estate broker lien rights against an owner’s net sale proceeds for earned commission? |
Chapter 475, Part III, F.S. |
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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? |
Friday |
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A broker may reopen a branch office in the same location during the same license period |
by requesting a reissue of the branch office license. |
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Which information must be disclosed to a prospective buyer regarding a particular property? |
Cracks in the fireplace chimney that are a fire hazard |
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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 |
conversion.
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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 which calculation is correct? |
Useful asset life of 27.5 years with depreciable basis of $230,000 |
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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? |
John Stone, sales associate |
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The legal evidence that gives a purchaser the right of occupancy in a cooperative unit is a |
C. proprietary lease. |
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The direction opposite South 20 degrees West in a metes-and-bounds description is |
North 20 degrees East. |
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The term used to measure the amount of energy an electrical appliance consumes is |
wattage. |
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Which property would be defined as residential real estate under Chapter 475, Florida Statutes? |
Five acres of agricultural property |
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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? |
Reserve requirement |
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A local lender charges five discount points on a conventional mortgage loan. How much will the discount points increase the return to the lender? A. $100 |
5/8 percent |
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What is the state’s intangible tax on a new mortgage of $10,000? |
A. $20 |
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What is the legal term for a type of evidence that, unless refuted by evidence to the contrary, will prove a case? |
Prima facie |
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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? |
B. 19 |
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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? |
C. $220,000 |
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The earnest money deposit normally appears on the closing statement as a |
credit to the buyer. |
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How does a quitclaim deed differ from a bargain-and-sale deed? |
The bargain-and-sale deed has a covenant of seisin. |
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The constitutional homestead law protects real property from forced sale to satisfy which type of delinquent debt? |
Personal loan to pay medical expenses |
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Which requirement is one of the elements of a valid real estate contract? |
Legal purpose |
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What is the per diem amount that Florida Real Estate Commission (FREC) members receive for participating in official meetings and other FREC business? |
A. $50 |
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A DBPR investigator is authorized, in cases that involve a first-time offense of a minor violation, to issue |
a notice of noncompliance. |
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Who issues a recommended order at the conclusion of a formal hearing? |
Administrative law judge |
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In lien theory states, the |
borrower has title to the property and the lender has a lien. |
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Which item would be most likely classified as a fixture once incorporated into real property? |
Chain link fence |
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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. Which statement is TRUE regarding this situation? |
The seller cannot now accept the original offer because it was killed by the counteroffer. |
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A license is ineffective when it is |
suspended. |
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Which requirement must be met for individuals acquiring a Florida sales associate’s license through mutual recognition? |
C. Pass a written Florida-specific real estate law exam with a grade of at least 75 percent |
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Which business would be classified as a base industry? |
B. Coffee roasting plant |
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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? |
C. $215,000 |
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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? |
No, to do so is redlining, which is a violation of the Fair Housing Act. |
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An investor’s own funds used to purchase investment real estate are called |
equity. |
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Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans differ in that |
FHA insures the mortgage and establishes a maximum mortgage amount; VA guarantees the mortgage and has no legislated down payment requirement. |
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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? |
Acceleration |
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Which phrase, when used in credit advertising, is NOT considered a triggering term under the Truth in Lending Act? |
“Below-market-rate financing available” D. “Fixed-rate mortgage loans as low as 6 percent” |
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Which clause in a deed indicates the duration of the estate being conveyed? |
Habendum |
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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? |
No, the Texas licensee must earn at least 12 months additional real estate experience before he qualifies to sit for the Florida broker license exam. |
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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? |
B. $24.12 |
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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.) |
36 percent |
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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? |
$423,725 |
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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. |
$588 credit to buyer; $588 debit to seller |
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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? |
D. $19,440 |
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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. |
C. $238,000 |
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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? |
B. $1,152.50
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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? |
B. $74.43 |
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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.) |
18 percent |
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Calculate all applicable documentary stamp taxes and intangible taxes associated with financing the transaction for a property located in Pinellas County. Purchase price: $67,550 Earnest money: 4,000 Recorded first mortgage (assumed): 27,800 Second mortgage (new): 14,700 Cash at closing: 21,050 |
B. $178.15 |