This exam has 100 multiple choice questions. You should select the BEST answer. You should attempt to achieve a score of at least 70% without consulting any reference material. The passing score for this practice exam is 70%, the same as required on a course final exam. (The passing score on the state exam is 75%.) The time limit for this practice examination is three hours, the same time allowed for you to take a course final examination. At the end of the 3-hour time period, the test will close and your exam will be graded based on the number of correct answers you have submitted.
You must take the exam in one sitting. You may not bookmark the exam to come back later because the timer will continue to run. Do not use the “back” button on your browser. There is a “back” button in the exam itself. You may not copy the questions or your test will be void.
There are many more topics and important points in the required course material than can be tested in 100 questions. You may find that this exam is, or is not, representative of questions that are tested in your course final examination or in the state examination.
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Wilson and Company has developed a 60-lot subdivision and have built ten homes for sale. This type building is called
Part II of Chapter 475 applies to
Which is NOT a requirement for a real estate license in Florida?
If a broker wants to close his sole proprietorship and sell property for a builder, he
Florida has agreements with certain other states that allows licensees who are residents of those states to become licensed in Florida by passing a
Which individual needs a Florida real estate license?
A sales associate passed her state exam on June 17, 2020. Her license will expire on
A sales associate’s license expired last year in April. This year in September, she wants to renew her license for the third time. She must pay a late fee, pay the renewal fee, and complete
Broker Wilson is working with buyers to find a suitable property. He has given them a no brokerage relationship notice. He does NOT have the duty to
If Broker Jones wants to provide limited representation to both parties in a real estate transaction, he can be a
Broker Sam is a single agent for a buyer. Which is NOT a requirement of this type relationship?
Wally is a single agent real estate broker who lists the Smith’s house. Wally later works with a buyer who wants to purchase the Smith’s house. What are Wally’s options?
What is the brokerage relationship reserved for nonresidential transactions only?
Broker William is a single agent for Seller Mary. William may NOT
When Broker Alice enters in to a no brokerage relationship with Buyer Jamal, she must
Which is NOT required for a legal brokerage firm?
Harris Realty, Inc. has designed a new web site and wants to be sure it conforms to FREC requirements. The name of the company must appear
What is required when a sales associate advertises in his or her own name?
Sales associate Charles Diamond is putting together a group of sales associates to be on his real estate team. What name should he use?
A broker sells rental lists. A buyer bought the list, but came back to the office in ten days and requested a full refund because he didn’t find a suitable rental property. The broker
Which type of entity results in double taxation to shareholders?
Which legal entity may register as a real estate brokerage?
The best example of a trade name is
For a first offense that is minor and easily corrected, the DBPR will issue a
Which is NOT real estate?
Henry Blake was awarded $145,000 in a judgement against a broker who violated the license law. The broker was unable to pay, so the Real Estate Recovery Fund will pay Henry
The Fair housing act does NOT protect persons from discrimination based on
The Americans with Disabilities Act (ADA) requires that existing structures be made accessible when
A tenant gave a Florida broker a security deposit and moved into the rental unit. The broker
Three persons own real property with shares of 20%, 45%, and 35% respectively. What type tenancy do they have?
Sales associate Helen is showing a time-share apartment, and needs to know the type of ownership that is comes with the property. Which is NOT one of the three types of time-share ownership?
Which is real property?
The state of Florida sued a property owner under its eminent domain powers and obtained ownership. This transfer of ownership rights is called
Which is NOT one of the four main documents required to form a condominium?
Larry has contracted to buy a house on Main Street, but the transaction has not actually closed. Larry has
Which is NOT an example of involuntary alienation?
The state of Florida wants to use its power of eminent domain to obtain title to a property for a highway. If the owner objects to the amount of the payment, the state will file suit for
In a legal description, bounds refers to
A property rents for $40 per square foot. The index used for the lease is 400. The following year, the index has risen to 450. What will be the rent in year two?
A contract for the sale of real estate is not valid if
Which is a correct “call” for a metes and bounds property description?
Which legal description method uses meridians and base lines?
How many acres are in a legal description showing “…the S ½ of the NW ¼ of the NE ¼ of Section 10, Township 4 South, Range 24 West?”
Which document can a broker NOT prepare for a customer?
Which is NOT an essential element of all contracts?
A buyer breached the contract. The seller does NOT have a right to
A buyer makes an offer to purchase a house, and the broker goes to present the offer to the seller. Which is NOT an option for the seller?
Wilson has signed a contract to sell his house to Deeb, with the closing date set to March 31. Floodwaters associated with a hurricane destroy the property. The contract is terminated by
Sarah contracted to buy Glenda’s house. When the day of closing arrived, Glenda said she wanted to keep the house and not sell. If Sarah wants the house, she should sue for
Which is correct about purchase and sale contracts for real estate?
Some states, including Florida, have mortgage laws that consider the borrower, who is the property owner and the lender, who has a recorded lien. This legal concept is called the
The collateral for a real estate debt is a
A clause in most mortgages allows lenders to require immediate payment of the loan if the property is sold without the lender’s consent. The name of this clause is
The stated interest rate on a new loan is 4 percent but the investor who is buying the loan requires a yield of 4 3/8 percent. How many points must the borrower pay to obtain this loan?
Judy purchased a home for $200,000 and financed 90% of the purchase price. She agreed to pay two discount points to obtain the loan. What was the dollar amount of points?
In a contract for deed, the buyer receives
A buyer is purchasing a property that has an existing mortgage. In which case will both the buyer and the seller be liable on the mortgage?
Larry has contracted to purchase real property from Barney. The title closing agent calls Larry to tell him about a lis pendens against the property. This news says that
A property sells to a well-qualified borrower who wants a low-down-payment FHA loan. If the purchase price is $270,000, the down payment will be
A family has gross monthly income of $7,250. Their payments of principal, interest, taxes, insurance, and homeowner’s association payments are $2,035. What is their housing expense ratio?
The FHA loan used for condominiums is Section
When a lender evaluates a borrower’s willingness to pay, the lender would review the borrower’s
A broker sold his listing for $250,000 and gets a commission of $17,500. What was the commission rate?
A buyer should pay for the first year’s policy at least 30 days in advance if the transaction is
Joseph sold a property for $400,000. He had purchased it four years earlier for $320,000. What was Joseph’s percent of profit?
Which is a requirement for appraisals used in a federally-related transaction?
A buyer bought a property for $350,000 and financed the purchase with a new mortgage in the amount of $280,000. What are the total documentary stamps and intangible taxes on this transaction?
Which is NOT one of the four essential requirements for real property to have value?
In order to be considered the highest and best use of a property, the use must be
The sales comparison approach is based on the theory of
A property has 65 units. Each of them rent for $18,000 annually. The vacancy rate is 6%. Operating expenses are 42% of effective gross income. What is the net operating income of this property?
What type risk can be reduced by buying insurance?
A business enterprise that is for sale is very profitable. An appraiser would most likely value the business using which approach?
A homestead is assessed at $112,000. What is the homestead exemption for school board taxes?
Residential zoning regulates
Clarence Lane is a Florida real estate broker associate who wants to open her own firm. She incorporates her brokerage as Blue Sky Realty, Inc. She is designing her entrance sign. Which design is acceptable?
Sales associate Mary prepared an offer for a house and received a $5,000 earnest money check from the buyer on Monday. Mary delivers the check to the broker on Tuesday. The check must be deposited into the broker’s escrow account by the end of business on
A broker has written a purchase and sale contract. The parties to the contract have made conflicting demands for the earnest money deposit being held in the broker’s escrow account. The parties have decided that the best approach is to avoid a court fight and find an individual who will hear the facts and make a binding decision. This solution is
A buyer and a seller contract for the purchase and sale of a 4-bedroom home in Rockdale. The buyer gives the broker an earnest money deposit of $10,000. The contract allows the buyer to void the contract and receive a refund of the deposit if the home inspection is not acceptable to the buyer. Because the home inspection has several minor issues, the buyer cancels the contract and demands a return of the deposit. The seller refuses because the inspection issues were minor. The broker is legally able to
Larry and Sally own a condominium apartment that has 1,420 square feet. The total square footage in all apartments in the building is 144,898. The annual expenses of the property are $512,000. What is Jane’s MONTHLY assessment for association fees?
A woman has a life estate given to her by her daughter, now deceased. The Miami Opera Company is to receive the property when she dies. Mom’s will gifts the property to her son John. When Mom dies, what will be the result?
A tenant has vacated her rental house and is found to have damaged several items that the landlord had to fix, costing $1,450. After 30 days the tenant demanded a return of his security deposit of $1,200. The landlord did not respond until 60 days later because the damages were higher than the deposit. Which is correct?
A buyer has contracted with a seller to purchase the real property located on Sunny Street in Marianna. The buyer saw a large pile of fencing panels and posts. His sales associate said that the seller had intended to build a fence but the house sold too quickly. When the buyer moved in, the fencing was gone. The buyer filed suit stating that the intent was for the lumber to be part of the real property. The court will likely rule that
When the buyers of a home visit to inspect the property, they encounter a tenant who says he has four months remaining on his lease. The seller had not disclosed this fact. How did the buyers receive notice about the occupancy?
McManus buys a property, but does not move in. The deed is recorded. The seller is dishonest and sells the property to Lawrence. Lawrence records the deed and moves into the property. A court case is brought to decide the issues. Who will own the property, and why?
John sold his house to Albert on a handshake, but did not put the agreement in writing. Albert gave John a check for $3,000 as good faith and agreed to close in 30 days and pay the remainder of the price. If John changes his mind about selling, what action would cause a court to rule that the agreement was legally binding?
William saw his friend John at a theater. Knowing that John was a broker, William said “John, my house is for sale. Why don’t you sell it?” Sure enough, John brought a contract to William at the asking price. John showed up at the closing, and requested a commission. William told John he never had a listing agreement. If it goes to court, John’s attorney will argue that the parties
Cindy signed an offer for a house and gave a good-faith deposit to Broker Carole. The offer was to expire at 6 pm three days ahead. That same day, Carole was presenting the contract to Seller Bob when Cindy called and told Carole she had changed her mind and requested a refund of the deposit. What should Carole do?
Lance has agreed to buy a house from Henry. Lance’s friend Susan asks whether he could take his place on the contract and buy the house instead. Lance wants to be relieved of liability and asks Henry to sign a new contract with Susan. Henry agrees and Lance’s name is replaced with Susan’s as buyer. This is
A seller of a commercial property agrees to give a broker an open listing. The seller says, “I want $250,000 net to me. You can put your commission on top of that. If the broker usually asks for a 6% commission on the sale price of commercial property, at what price should the broker list the property to receive the right commission?
Assume a borrower finances the purchase of a home with a $250,000 mortgage at 3.5 percent interest for 30 years. The monthly principal and interest on the loan is $1,122.61. The annual taxes are estimated at $2,820 and the hazard insurance is $1,450. What will the total payment be if the lender requires an escrow?
If a secondary market lender is buying an existing loan from the original lender, the secondary market lender may request that the borrower verify the balance of the loan and the interest rate. This verification is called
Property taxes are $2,932. Closing date is April 14. Prorations will be made as of midnight the day before closing using the 365-day method. What will the closing statement entry be for the property tax proration?
An investor is buying a rental house that is occupied by a tenant who will stay in the property. The tenant paid $2,800 rent on the first of the month. The closing date is October 10. Prorations will be made as of midnight the day before closing using the 365-day method. What will the closing statement entry be for prepaid rent?
The subject house has 1,940 square feet of living area; the comparable sale has 2,100 square feet, and sold for $412,500. An appraiser has estimated the difference should have an adjustment of $161 per square foot. The value of the subject property based on the comparable sale approach would be approximately
One method for determining the cost to reproduce a building new is to make a detailed inventory of every item in the building, price them out, and add the builder’s costs and profit. This method is called the
A large, older office building downtown needs painting and general maintenance. The floor plan has too many hallways, making it inefficient. It is in an area that has become mostly industrial with heavy truck traffic and noise. An appraiser has estimated the reproduction costs and is working on calculating depreciation. What type depreciation is the building’s age, painting, and general maintenance?
A city plans to pave a dirt road fronted by 24 houses (twelve on each side). The cost of the paving is $36 per running foot. There are 1,400 running feet on the road. Sam has a house that has 85 feet frontage on the road. What will he have to pay if the city is not paying any of the cost?
The taxable value of a qualified homestead property is $49,000 after the SOH benefit has been calculated. He is blind. The city tax rate is 9.5 mills, the county tax rate is 8.5 mills, and the school board tax rate is 10 mills. What are the property taxes on this home?
What must be given to borrowers within three days after loan application?