63-Hour End of Course Examination #1

In a contract for deed,

Which is correct about listing agreements?

A broker working for a buyer may be charged with unauthorized practice of law if she prepares a

Which is NOT an example of involuntary alienation?

Which is real estate?

A Florida broker sells rental lists for $200. A customer who purchased the list 20 days earlier found that many of the rentals shown in the list were not available and demands a refund. The broker

A single agent sellers’ broker may legally

A woman wants to apply for a real estate license. She will NOT need

Commercial zoning regulates

A buyer of an office building had an appraisal made that showed value of $600,000. Later, the buyer made an addition to the building that cost $145,000. A new appraisal came in at $800,000. This is an example of

When depositors remove their funds from the bank to invest their money directly, the process is called

A clause in most mortgages allows lenders to require the borrower to immediately pay off the entire balance of the loan in case of default. The name of this clause is

Which is correct about an offer to purchase property?

Which is NOT a reason for having a survey made when purchasing property?

William owns property with three of his friends. If one person dies, the others on the deed will automatically own the property. What type tenancy is this?

A DBPR investigator/auditor makes an office inspection and finds that a broker’s sign does not conform to the requirements. The offense is the first for this broker, so there is no fine. The investigator tells the broker information about how to correct the violation and gives the broker 15 days to correct it. This is called a

A sales associate placed the following ad in the local homes magazine: “Charming 3-BR, 2B house in great neighborhood—Asking $195,000. Call Mary at 435-8945.” What is (are) the legal issues with this advertisement?

Which is NOT one of the duties of a broker who has no brokerage relationship with a buyer?

Ace Construction is preparing to build six homes based on the best guess of what buyers would be most likely to purchase. This type construction is known as

Which property is immune from ad valorem taxes?

Which is NOT a requirement for appraisals used in a federally-related transaction?

A property sells to a well-qualified borrower who wants a low-down-payment FHA loan. If the purchase price is $247,000, the down payment will be

Some states subscribe to a theory that says the borrower can have possession of the property while not in default. The borrower is called a trustor, a third party who hold title is called the trustee, and the lender is called the beneficiary. This is called

Which is a requirement for all contracts?

The Smiths are buying the Gomez’s home. Before the closing, Smith visits the house and meets Samuels, who is occupying the house. What type notice does Smith have about the occupancy?

A buyer and a seller ask a court to determine whether an item is real property or personal property. The item was not included in the sales contract. The three criteria court will use to help make that determination are

Two brokers are organizing a new brokerage firm. If they don’t want to pay income taxes twice on profits, they should NOT set up as

Sam is opening a brokerage office in Walton County. Which is NOT required?

Which individual does NOT need a Florida real estate license?

A business has been unprofitable for the last three years, and is not likely to continue operations. An appraiser would determine that the most appropriate approach to value would be the

If a mortgage loan transaction is expected to close during hurricane season, the borrower should

A property is sold at a foreclosure sale for $223,000. The loan amount was $265,650. How can the lender recover the balance?

Which is legal evidence of a debt?

A written contract for the sale of a house is

Proctor buys a property, but does not move in. Proctor does not record the deed. The seller is dishonest and sells the property to Davenport who records the deed. A court case is brought to decide the issues. Who will own the property, and why?

Helen wants to give her mother a house to live in for the rest of her life, but wants to be sure Mom doesn’t will it to any of Helen’s siblings when she dies. The best way to do this is to give Mom a

Which legal entity may be registered as a real estate brokerage?

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

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

What type risk can be reduced by careful analysis and management?

Which is NOT a consideration in evaluating the highest and best use of a property?

The most common fixed-rate mortgage loan insured by the FHA is the

Which is NOT correct about real estate purchase and sale contracts?

Who controls an earnest money deposit before an offer is accepted?

The City of Orlando is building a new toll road and needs the Johnson’s land for an interchange. What power allows the city to require Johnson to sell for a fair price?

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

Which persons are covered under the Fair Housing Act?

Which of the following is a trade name?

Gloria Vasquez of Vasquez Brokers, LLC is opening a brokerage firm. Which entrance sign is acceptable?

Which is correct about the Florida Real Estate Commission?

A large, older office building downtown needs painting and general maintenance. The floor plan has too many hallways, making it inefficient. It is located 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 inefficient hallways?

Which value would most likely be used to calculate ad valorem taxes?

A buyer has purchased subject to the existing mortgage. If the mortgagee later forecloses on the property,

Desmond contracted to buy Brandon’s house with a closing date to be in 45 days. Two weeks later, Desmond tells his broker that he has found another house and will not close on Brandon’s house. The broker reports this to Brandon. What is this called, and what can be done?

A contract for an illegal purpose is

When an owner deeds her ownership rights to another person, it is called

Laverne owns a single-family rental house and is holding a security deposit of $1,800. After her tenant has vacated the premises, Lavern inspects the property and discovers damages amounting to $1,100. If Laverne wants to keep part of the tenant’s deposit, she must notify the tenant in writing within

A broker is holding an earnest money deposit in her escrow account when the buyer and seller have a dispute. Both buyer and seller demand the funds. The broker promptly notifies the FREC. Which is NOT one of the settlement procedures available to the broker?

When must a nonrepresentative broker give a customer a no brokerage relationship notice?

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

An estoppel certificate is used to

Mary contracted to purchase Hilda’s house. Mary was required to make an application for financing within ten days, but failed to do so. The words time is of the essence were in the agreement. The contract

In what corner of a township is Section 1?

Sharon has sold her house on Juniper Street, but the transaction has not yet closed. Sharon still has

A tenant has given a $1,200 check as a security deposit to landlord James. James deposits the check into an interest-bearing account that is not commingled with any of his personal funds. James must

A buyer gives her broker an earnest money deposit of $4,000. The contract allows the buyer to void the contract within 30 days if her builder friend looks at the property and feels it’s not right for her. The builder tells the buyer 28 days after the contract is signed that she should not buy the house. The buyer requests a return of the earnest money, but the seller feels that the buyer did not act in good faith and refuses to let the broker return the funds. The broker should

What is the brokerage relationship in a commercial transaction that requires the parties to have at least $1 million in assets?

Which is correct about individuals needing a real estate license?

The stated interest rate on a new loan is 3 percent but the investor who is buying the loan requires a yield of 3 ½ percent. How many points must the borrower pay to obtain this loan?

Which is NOT a way to terminate a contract?

Which legal description method uses a principal meridian?

Which is NOT one of the three types of time-share ownership?

Under the Americans with Disabilities Act (ADA), parking areas must have one accessible space for every

A sales associate receives an earnest money check from a customer on Tuesday. The check must be deposited by the broker by the end of business day on

Sally, a sales associate in a brokerage firm lists a house and acts as the seller’s single agent. Jamal, another sales associate in the firm is acting as a single agent for a buyer. If the buyer wants to buy Sally’s listing, Jamal

Which is NOT a characteristic of a fiduciary relationship?

For purposes of the mutual recognition requirement for licensing in Florida, a person is a Florida resident if the person has

The maximum number of degrees in a surveyor’s metes and bounds description is

A sales associate passed her state exam on March 18 of this year. Her license will expire on

Which document does a private party condominium seller NOT have to give to a buyer when the buyer signs the contract?

A broker who violated the license law was sued by the buyer who had a substantial loss. The court awarded a judgement of $70,000 to the buyer, which included attorney fees and court costs. Because the broker could not pay, the buyer filed a claim with the Real Estate Recovery Fund. Which is correct?

Which brokerage relationship is illegal in Florida?

Which real estate group name is proper?

In a legal description, metes refers to

Cindy owns a condominium apartment that has 1,220 square feet. The total square footage in all apartments in the building is 145,238. The annual expenses of the property are $412,000. What is Cindy’s MONTHLY assessment for association fees?

The town of Palatka will pave a dirt road at a cost of $48 per running foot. Mayfield has a house that has 125 feet frontage on the road. What will Mayfield have to pay if the city is not paying any of the cost?

A buyer bought a property for $400,000, and financed the purchase with a new mortgage in the amount of $360,000. What are the total documentary stamps and intangible taxes on this transaction?

A family has gross monthly income of $6,920. Their payments of principal, interest, taxes, insurance, and homeowner’s association payments are $1,785. What is their housing expense ratio?

A seller of a commercial property agrees to give a broker an open listing. The seller says, “I want $140,000 net to me. You can put your commission on top of that.” If the broker customarily asks for a 7% 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 Roberts Company moved in to their new offices In November, 2018. The company paid rent at the rate of $22,400 per year when the Consumer Price Index (CPI) was  255.1.  If the rent is tied to the CPI, how much will the rent be when the company renews the lease in November, 2020 if the CPI at that time is 257.1?

A qualified homestead property is assessed for $50,000 after the SOH benefit has been calculated. The owner is blind. 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?

An appraiser is valuing a house located on Heritage Court. The house has 1,650 square feet of living area; a comparable property in the neighborhood sold for $243,800 and had 1,740 square feet. The appraiser estimated the difference should be adjusted by $161 per square foot. The value of the subject property based on this comparable sale would be approximately

Property taxes are $3,610. Closing date is April 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?

Richard and Mary purchased a home for $345,000 and financed 75% of the purchase price. The lender charged 2½ discount points. What was the dollar amount of points?

A property has 22 units. Each of them rent for $13,500 annually. The vacancy rate is 7%. Operating expenses are 40% of effective gross income. What is the net operating income of this property?

An investor is buying a rental house that is occupied by a tenant who will remain in the property. The tenant paid the seller $2,100 rent on the first of the month. The 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 prepaid rent?

Assume a borrower finances the purchase of a home with a $325,000 mortgage at 3.0 percent interest for 30 years. The monthly principal and interest on the loan is $1,370.21. The annual taxes are estimated at $3,215 and the hazard insurance is $1,565. What will the total payment be if the lender requires an escrow?

An appraiser is estimating the cost to reproduce a building new and knows that the original cost of the building was $246,900. A cost manual shows that there has been a 24% increase in building costs since the subject property was built. The updated cost to build the house using the index method is approximately

Martha sold a property for $89,250 that she had purchased four years earlier for $75,000. What was Martha’s percent of profit?

A broker received a commission of $29,750. The commission rate was 7%. What was the price?