End of Course Exam 2

The planning commission has final authority for

The highest and best use of a parcel of land is

In the mortgage market, which government agency guarantees mortgage-backed securities?

In case a borrower defaults, a clause in most mortgages allows lenders to get a court order appointing a receiver to collect rents and pay bills. The name of this clause is

A person can terminate a real estate contract by

Which legal description is the longest and most likely to be attached to a contract rather than written in to the contract?

Three brothers want to buy property that keeps the property in the family if one dies, without needing a will. When one dies, the others will own the property. Which is NOT a requirement?

A broker received conflicting demands from a buyer and seller over a $10,000 earnest money deposit the broker was holding in her escrow account. The broker requested an escrow disbursement order, and the FREC directed that the broker pay the funds to the buyer. Later the seller sued the broker for the funds, and a local court gave a judgment to the seller against the broker for $10,000 and legal fees of $4,000. The broker filed a claim against the Real Estate Recovery Fund for the $14,000 plus the broker’s legal fees of $5,000. What will be the outcome?

If a sales associate advertises her nickname in a listed house advertisement, the ad need NOT

Which is NOT one of the duties of a transaction broker?

The type of building that takes most of the financial risk from the builder is

Which property is NOT exempt from taxes?

An owner purchased a small house for $295,000. The neighborhood had most larger houses. The owner added a large den and an extra bedroom that cost $60,000. The resulting appraisal was $375,000. This is an example of

A veteran who wants a VA loan must apply to the VA for a document that sets the amount of entitlement available to the veteran. That document is the

A developer financed the sale of a building site to a contractor with a mortgage. The developer later allows the contractor to get bank financing to build a house, allowing the bank to have the first mortgage ahead of the developer’s mortgage. This is

Which is NOT a way to terminate an offer?

Marjorie has closed on the purchase of her new Florida home and intends to move from Oregon in two months. The title company recorded the deed. The seller commits a fraudulent act by selling again to Naresh. Naresh records the deed and moves in the house. When Marjorie arrives with the moving van and finds Naresh living in her house, she sues. Who will win the case, and why?

The purpose of the constitutional homestead exemption is to

A corporation sole is

Where must a brokerage firm name be placed in a web site?

The license of an experienced sales associate expired in June last year. This year in September, she needs to renew her license. She must pay a late fee, pay the renewal fee, and complete

Part IV of Chapter 475, F.S. is related to

The LEAST meaningful approach to appraising a profitable business is the

Which is correct about a CMA?

Property values have dropped significantly in an area. A buyer offers to pay $324,000 for a property that has a mortgage balance of $362,000. The lender agrees that the property can be sold for $324,000 and satisfies the mortgage lien. This is a

Florida is a lien theory state that consists of two parties called

A buyer and a seller enter in to a contract to purchase and sell a house. After the contract is closed and the deed changes hands, the contract is

What is the best description of the term escheat?

Which items that are normally considered as real property can be removed by a tenant at the end of a lease?

A DBPR investigator has determined that a broker has failed to notify the FREC of an address change and issues a citation. The broker will have an option to pay a fine between $100 and $500 or to contest the charge within

Martha Sanchez of Bellaire Brokers, Inc. is opening a brokerage firm. Which entrance sign is acceptable?

A sales associate passed her state exam on August 29, 2020. Her license will expire on

Which is NOT correct about the Florida Real Estate Commission?

In the sale of a business, goodwill is classified as

Which is NOT part of the definition of market value?

Which is correct about contracts for deed?

Contracts for the sale of real property

Which is NOT a requirement for a contract for the sale of real estate?

Which is NOT an example of involuntary alienation?

An item that was once personal property that has been attached to a house is now considered to be a

The type of corporation that avoids double taxation is a

Which is acceptable for a brokerage office?

Which individual does NOT need a Florida real estate license?

Before the first renewal, a real estate sales associate must successfully complete 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 undesirable location?

Which document must be given to the borrower at least three days before closing?

A seller has sold her house and the buyer is assuming the existing mortgage. If the property later goes into foreclosure,

Listings are covered under the statute of frauds if

A lawsuit is filed against a seller who defaulted on a sales contract six years ago. The court must dismiss the case because of

A transfer of ownership rights is

A community can refuse to allow children to reside on the property if

Two brokers share office space, but have not registered as a business entity. If they appear to be partners, they are

Which is NOT a requirement for designated sales associate status?

Which is correct about a real estate license?

Another term used for a due on sale clause in a mortgage is

Norman signed a contract to buy Gordon’s house. Natalya, who had always loved the house asked Norman if he would sell his contract to her for $10,000 and let her buy the house instead. If Norman agrees, this would be called

Which document can a broker prepare for a customer?

When a contract for the sale of real property is signed but not closed,

Henry lives on a small creek that has added value to his home. An owner further upstream dams the creek to make a lake. Henry may have to sue to preserve his

A Florida broker sells rental lists and is confronted by a buyer who demands a refund because the list was inaccurate. The broker must refund the entire fee within

Broker Samantha is a single agent for Seller Jonathon. Samantha may NOT

Mutual recognition of real estate education is

The stated interest rate on a new loan is 3 7/8 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?

A buyer defaults on the terms of a real estate contract. The actual damages to the seller are expected to be in the range of $2,000 to $3,000. The buyer has given the broker an earnest money deposit of $10,000. The seller is likely to sue

The township directly north of township 2 North, Range 3 East is

A married person has died and a diligent search has not located a will. If there are one or more surviving descendants of the decedent who are not lineal descendants of the surviving spouse, how much of the estate will the surviving spouse receive?

If a landlord does not intend to retain any of a tenant’s security deposit after a tenant vacates a house, within how many days must the landlord refund the security deposit?

A broker has promptly notified the FREC in writing about a situation where a buyer and seller are each demanding the $7,000 escrow money he is holding. The broker has decided, and the parties have agreed, that the best approach is to find an individual who will impartially assist the parties to find an equitable, voluntary solution. That solution is

Which is NOT a requirement for the designated sales associate status?

A buyer claims that a seller misrepresented an important feature of a house. The buyer wants the contract to be canceled, the good faith deposit returned, and threatens a lawsuit. The seller doesn’t want to go to court and agrees. The contract has been terminated by

The basic east-west reference line in Florida is the

Which is NOT one of the disclosures that must be on a time-share contract for purchase and sale?

If a landlord wants to hold a tenant’s security deposit in a separate interest-bearing account, the landlord must pay the tenant at least

A broker has received a $10,000 earnest money check from a buyer and both buyer and seller have signed a contract. The closing date has passed, and the buyer has requested a return of the deposit. The broker is a single agent sellers’ broker. The seller has demanded that the broker give the funds to him. What should the broker do first?

Broker Maxwell is working with his principal, Anne Jones, as a

The first “call” in a metes and bounds legal description is either

Ryan contracts to purchase a new condominium from Starlight Construction Company. Eleven days after he received the required documents, he decided to cancel his contract. Which is correct?

The Americans with Disabilities Act considers which to be a disability?

Broker associate Sally Lincoln wants to form a group of agents and have a catchy name. Which name would be legal?

The manager for a hip-hop musician buys the musician’s clothes, write checks to pay his bills, negotiates bookings, hires and fires musicians, and generally manages everything. What type agent is the manager?

Sales associate Mary received an earnest money check from a buyer on Friday. The check must be deposited into the broker’s escrow account by the end of business

A dilemma occurs for a broker who has listed a house as a single agent. The broker also represents a buyer who now wants to buy the listed house. What is the best way to resolve the issue?

Melinda has purchased a farm in Northwest Florida. The legal description is “…the W ½ of the SW ¼ of the SW ¼ of Section 14, Township 2 North, Range 17 East.” How many acres are in Melinda’s farm?

Orange County will pave a dirt road at a cost of $41 per running foot. Curtis has a house that has 95 feet frontage on the road. What will Curtis have to pay if the city will pay 30% of the cost?

A qualified homestead property is assessed for $150,000 after the SOH benefit has been calculated. The city tax rate is 9 mills, the county tax rate is 8.5 mills, and the school board tax rate is 9 mills. What are the property taxes on this home?

Jamal owns a condominium apartment that has 1,800 square feet. The total square footage in all apartments in the building is 228,600. The annual expenses of the property are $551,000. What is Jane’s MONTHLY assessment for association fees?

A property has 42 units. Each of them rent for $16,800 annually. The vacancy rate is 9%. Operating expenses are 43% of effective gross income. What is the net operating income of this property?

A property rents for $20 per square foot. The index used for the lease is 5. The following year, the index has risen to 6. What will be the rent?

An appraiser is estimating the cost to reproduce a building new and knows that the original cost of the building was $316,900. A cost manual shows that there has been a 22% increase in building costs since the subject property was built. The updated cost to build the house using the index method is approximately

A seller of a commercial property agrees to give a broker an open listing. The seller says, “I want $375,000 net to me. You can put your commission on top of that. If the broker customarily asks for a 10% commission on the sale price of commercial property, at what price should the broker list the property in order to receive the right commission?

The subject house has 1,730 square feet of living area; the comparable sale has 1,800 square feet, and sold for $360,500. An appraiser has estimated the difference should have an adjustment of $181 per square foot. The value of the subject property based on the comparable sale approach would be approximately

Assume a borrower finances the purchase of a home with a $218,000 mortgage at 2.8 percent interest for 30 years. The monthly principal and interest on the loan is $895.75. The annual taxes are estimated at $2,114 and the hazard insurance is $987. What will the total payment be if the lender requires an escrow?

A buyer bought a property for $200,000, and financed the purchase with a new mortgage in the amount of $150,000. What are the total documentary stamps and intangible taxes on this transaction?

Larry and Jeanine bought a house for $215,000 and financed 80% of the purchase price. The lender charged 1 ½ discount points. What was the dollar amount of points?

Property taxes are $5,123.40. Closing date is June 1. 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?

A property sells to a well-qualified borrower who wants a low-down-payment FHA loan. If the purchase price is $315,000, the mortgage amount will be

An investor is buying a rental house that is occupied by a tenant who will remain in the property. The tenant paid the seller $1,240 rent on the first of the month. The closing date is June 17. 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?

A family has gross monthly income of $7,850. Their payments of principal, interest, taxes, insurance, and homeowner’s association payments are $2,335. Their other debts are $950. What is their total obligations ratio?

Sylvia sold a property for $239,560. She bought it four years earlier for $212,000. What was Sylvia’s percent of profit?

A broker has listed a house with a 6% commission and offers a 50% commission split to cooperating brokers. Another broker sells the house for $375,000. What is the selling broker’s commission at closing?