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Seller employed Broker to sell his property. Broker subsequently negotiated a contract whereby Seller and Buyer agreed to sell and buy the property. The contract was prepared and typed in Broker’s office. As there were numerous conditions and terms that had been agreed upon by Seller and Buyer, the contract was quite long and involved. Since the amount of deposit obtained by Broker from Buyer was equal to what his commission was going to be, in the middle of one of the long paragraphs was the phrase “In the event the buyer defaults, the deposit shall be retained by the broker as his compensation.” At the time Broker presented the contract to Seller and Buyer for their signatures, he made no mention of the phrase he inserted in the contract, nor did he recommend that they read the contract. However, he did not in any way try to influence them not to read it. Seller and Buyer signed the contract without reading it. In the area, a 50/50 split of defaulted deposits is customary between sellers and brokers. Buyer subsequently defaulted. Seller asked Broker for 50% of the deposit. Broker refused and showed Seller the phrase he had inserted in the contract. What should Broker do?
Possession of a current and valid license will be considered by a court
A sales associate gets a signed contract from a buyer and mails it to the seller. The seller
has agreed to the terms and the escrow deposit is safely in the broker’s escrow account.
The sales associate has a disagreement with his broker and quits. The broker refuses to
pay a commission because the sales associate was not in his employ when the contract
was actually received and signed. The sales associate should
A licensee who has passed the broker’s state examination, but desires to continue to
operate under an owner-employer will be registered as a
A hardware store owner, who is neither a real estate licensee nor a licensed or certified
appraiser, was appointed by the court to appraise another hardware store. The person can
In order to be a licensee member of the Florida Real Estate Commission, an individual
must have been licensed a minimum of
Broker Bill has a listing contract to sell Janet’s condominium. A prospective buyer offers
to pay $60,000, but refuses to give an earnest money deposit with the contract. Broker Bill should
A buyer gives a sales associate a binder check made out to him. The sales associate
should
The F.R.E.C. is composed of
Licensure may be suspended for what maximum period of time?
Broker Larry, Broker Linda, and Broker Susan form a partnership to buy a tract of land
and develop and sell the land. Sales Associate Lee joins the partnership and profits
will be split equally among the four. Profits for the first year amount to $80,000.
Which is correct?
Which is NOT correct?
The passage of rules require
Jane is a broker and accepts an earnest money deposit made out to her firm for $3,000. What is her legal
requirement?
Broker Jacqui decides to move her branch office from Fort Walton to Panama City. The
proper procedure is for Jacqui to
A real estate sales associate is a person who
A sales associate chooses not to renew his license at the appropriate time. His license will
be
The license period is
Which category is exempt from licensing when performing real estate services?
Practicing real estate without a license is a
During the week, Janet works for Wonder Works Realty, Inc. as a sales associate. On
weekends, she holds open houses for Schultz Homes, and is paid a 2% commission
directly by Sam Schultz on any sales she helps procure. Which is correct?
A sales associate properly licensed with a broker may
Who can receive compensation directly from an owner?
Which is correct about a group license?
Which of the following is a legal brokerage office?
I. permanent building with at least one office
II. sign at or about entrance with “Licensed Real Estate Broker” or REALTOR
III. names (but not license status) of all licensees of the firm.
Required brokerage relationship disclosures must be retained by the broker for:
Which of the following best describes the relationship of a broker and his principal?
A sales associate’s license has expired. The sales associate is called by a buyer who wants
to see property. The sales associate shows the property, but does not write a contract
until he has renewed his license. The sales associate
A licensee fails to renew his license at renewal time, and desires to become active again
16 months later. What must he do?
John Harrison, a sales associate, leaves the employ of Gilbert Miller, a licensed real
estate broker. John wrote a sales contract prior to his termination, and the transaction
closed after he left Miller. The amount of the gross commission was $3,700, and
John was on a 50/50 commission split. There is no office policy which covers this
situation. John demands his portion of the commission. What should Mr. Miller do?
A Kentucky lawyer and a Florida broker joint venture to sell property in Florida for a
friend of the Kentucky lawyer. What can the Kentucky lawyer receive?
Joyce owns property in Tallahassee which is 100 feet on the road and 125 feet deep.
The city paves the street and agrees to pay 25% of the cost. The cost per running
foot is determined to be $54. How much is Joyce’s special assessment?
. Hinson forms a limited partnership to develop and sell real property. Hinson will be the
general partner will do all the work. Bailey buys units as a limited partner and invests
$100,000. Hinson defrauds several purchasers who bring suit against the partnership
and get judgments for amounts in excess of $300,000. The partnership funds are wiped
out. Which is correct?
A Fort Walton Beach real estate broker is the property manager for several condos on the
beach which rent for $1,000 per month. He also manages several (which are rented) that
rent for $850 per month. The broker advertises beach front condos (which are
unavailable) at a price of $850, and has a good response rate. He is usually able to
explain the better quality of the $1,000 per month rentals and rents them quite fast. The
broker
Jill sells commercial property exclusively. Which is correct about her brokerage
relationships?
Which of the following is most correct?
An example of institutional advertising would be
Which of the notices shown below MUST be signed by a buyer or a seller.
John and Edward were brokers with their own firms. An economic downturn made them
decide to share office space. They did not put up signs which described that the public
was actually dealing with two separate firms. A BPR investigator made a routine office
inspection visit. The investigator would probably issue a citation stating that this
I. is an ostensible partnership.
II. is a general partnership.
III. is a violation.
A broker decides to go to work for an owner-developer, and will be compensated on a
salary plus commission basis. Which is correct?
Which of the following situations requires disclosure of brokerage relationship to a
customer?
I. sale of improved property with four units or fewer
II. leasing of property with four units or fewer unless the owner occupies one of
the units
III. sale of agricultural property with 10 acres or less
Which brokerage relationship status requires that a broker disclose known facts that
materially affect the value of residential property?
A licensed sales associate of a brokerage corporation may
Dexter Bonham is purchasing property through Lawrence Hafner, licensed real estate
broker. Hafner sold the same piece of property last year. Because Bonham is
experiencing financial difficulties, Hafner tells him that the title was insured last year,
and that he will go to the courthouse to determine if there have been any liens filed since
then. This would save the buyer nearly $500. Which is correct?
A single agent broker who wishes to remain loyal to the principal yet be involved in both
sides of a transaction
Permission to use another’s property that may be withdrawn at will is
An easement created when a person has been using a roadway without permission for
over 20 years is called an
All the following are methods of transferring legal title to real property except by
Jim, Matt and Jack were co-owners of a parcel of real property. Matt died, and his coownership passed, according to his will, to become part of his estate. The parties owned
the property as
Which of the following is immediately south of Township 2 South, Range 6 West?
An owner wishes to have a survey made of a commercially-zoned parcel. It is 90 feet on
the front, 159 feet on the north side, 120 feet on the back and 180 feet on the south side.
It is not in a recorded subdivision. Which survey method would be most appropriate for
the parcel?
Which of the following is not required on a contract?
To be valid, a deed must be
Title to real property passes to the grantee when the deed is
Henry has a capital gain on the sale of his home of $197,000. He has owned the property
for two years. The sales price was $425,000. Costs of sale were $7,000, qualified fix-up
costs were $1,000 and moving costs were $2,000. How much must Henry pay in capital
gains taxes on this sale if his normal tax rate is 25%?
If an owner arrives before the foreclosure sale and pays the entire debt, court costs and
legal fees, and interest on the property, he is exercising his
A subdivision developer gives the county title to streets in a subdivision. The county
accepts the streets for maintenance. This transfer of title is known as
Which of the following acts as an insurance agency?
Which happens to the monthly payments on a fixed payment mortgage?
The most common method used by the Federal Reserve Board to control the supply of
money is by
An example of functional obsolescence is which of the following?
Investor Charles Greenacre is purchasing a building from the Acme Tool Company with
a 20-year net-net-net leaseback offering outstanding cash throwoff and good tax
treatment. The building was built to the seller’s needs under strict specifications to the
seller’s business. Greenacre should be most concerned with
An appraiser noted a 3 year-old air conditioning system which was operable. He assigned
$2,500 depreciation to the system. What type of depreciation is it?
Which two expenses are deductible for income taxes that are not deducted in calculating
net operating income?
If the capitalization rate increases, the value
Which is synonymous?
Which is most closely related to the comparable sales approach?
Plottage is
Concerning the buyer’s attitude and willingness to pay, the lender considers
Which of the following forms of depreciation is usually found in external obsolescence?
What is not available to the Federal Reserve System in controlling the money supply?
Under the income approach, value equals
Lien theory means that the mortgage
What is the final step after an appraiser has utilized all three approaches to value?
Which of the following expenses is not deducted from effective gross income in
calculating net operating income?
John purchases a home, and the seller helps to finance the sale. The price is $100,000,
and John is to make a $10,000 cash down payment. The amount of the mortgage
payments would pay it off in thirty years, but the owner requires that it come due in seven
years. What type mortgage is this?
A seller tells a real estate licensee that he does not want his house shown to ethnic buyers.
The sales associate should say
Jim Singletary wishes to construct an office building containing 24,000 square feet. The
zoning in the area requires 1 parking space for every 400 square feet of building area.
How many spaces will be necessary?
Which is not correct?
I. Redlining is not a violation of state and federal laws.
II. “Blockbusting” is a description of the practice of scaring owners into
selling because of ‘undesirable elements’ moving into the neighborhood.
III. A sales associate has a direct fiduciary relationship with his seller under
an exclusive right of sale agreement.
John is a broker in Tallahassee, and meets for lunch with Martha, his most important
competitor. They agree that, effective January 1 of the following year, both companies
will begin charging 7.5% commissions on all residential properties. Which is correct?
A prospect enters Broker A’s office and requests to be shown houses in neighborhoods
with certain racial characteristics. The broker advises the prospect that he will
show him houses without regard to the racial characteristics of the
neighborhood. The prospect is shown houses in certain minority neighborhoods
and certain non-minority neighborhoods. The prospect becomes interested in
two of the houses, both of which are in minority neighborhoods. If the broker
had followed the prospect’s initial instructions, which of the following would be
correct?
Which is deducted from gross income to arrive at net operating income?
A reasonably good balance between supply and demand of apartments is
The Fair Housing Act of 1968 (with amendments) prohibits discrimination
What requires lenders to give a Good-Faith Estimate?
Which is correct about Regulation Z?
Marilyn is applying for a loan to finance her new home in an area where there are
minorities. The loan officer tells her that she should try to find another location, since
the loan committee would prefer not to lend in that area. The lender may be involved in
the illegal practice called
Which may be deducted for income tax purposes by a homeowner?
Usually, local planning commissions are composed of
Fred has a long-term capital loss on the sale of his personal residence. He may deduct
A comparable property sold a year ago for $70,000, but would have sold for about eight
percent more today. The appraiser should:
A small apartment property is estimated to have potential gross income of $ 25,000.
Vacancy and collection losses are expected to average 5 percent over the life of the
property. Operating expenses are expected to average about 30 percent of effective gross
income. An overall capitalization rate of 12 percent is derived from market transactions
of similar properties. What is the market value?
A 3-year insurance policy costing $1,164 is taken out November 1, 1995. The property
was sold on May 15, 1996, and the day of closing belongs to the buyer. If the buyer
assumes the policy, what the should the buyer pay the seller at closing, using the 30-day
month method?
An appraiser values a 4-bedroom home with a pool. A pool normally adds $14,000
value to a property, and a bedroom is worth $9,000. She locates the following
comparable sales:
5 bedroom home, no pool, sold for $125,000
4 bedroom home, no pool, sold for $116,000
3 bedroom home with pool, sold for $121,000
What is the value of the subject property?
A buyer purchases a 4-unit commercial building for $150,000 cash. Operating expenses
of the building total $30,000 annually. What must the buyer get in monthly rent from
each unit in order to achieve a 20% return?
A building rents for $5 per square foot, and there is an index of 1.5. The following year
the index climbs to 1.8. The rent is tied to the index. What will the rent be per square
foot?
A comparable property showed adjusted value of $40,000. The property sold two years
ago, and the adjustments indicated a 7% annual appreciation rate. Assuming the
appreciation was the only adjustment, how much was the total adjustment?
A home is 10 years old. It has a 50-year life, and a $100,000 reproduction cost. The
appraiser assigns physical deterioration of $26,000. Which is probably correct?
John takes out a 14% 30-year mortgage in the amount of $65,000. The loan constant is
.011849. What is the balance of the loan after the second payment?
A seller receives $18,000 proceeds from the sale of her home. The mortgage balance was
$32,000, she paid a commission of 7%, and her closing costs were 3%. What was the
sales price?