Under Florida law, an owner-developer may:
employ only licensed real estate brokers to sell property.
employ unlicensed persons to sell property and pay them a commission.
employ unlicensed persons to sell property if they are paid a salary, but must employ licensees if they will be paid a commission.
employ unlicensed persons to sell property regardless of how they are compensated.
An estate for years:
is a leasehold that automatically renews each year.
is a leasehold estate that lasts for a specified period of time.
is a freehold estate that grants ownership rights indefinitely.
is a type of joint tenancy with rights of survivorship.
In order to receive a Florida real estate license, a person does not need to:
be at least 18 years old.
be honest and of good character.
be a United States citizen.
have a high school diploma or equivalent.
During the closing process, property taxes will most likely need to be:
deferred.
prorated.
refunded.
waived.
Which is the proper order in which these liens would be paid?
Construction lien, mortgage lien, property tax lien
Construction lien, property tax lien, mortgage lien
Mortgage lien, property tax lien, construction lien
Property tax lien, mortgage lien, construction lien
When determining whether an item is a fixture or part of the real property, a court would not be interested in the:
adaptation of the item.
cost of the item.
intent of the parties.
method of annexation.
In financing, what is the purpose of a promissory note?
It acts as a guarantee that the borrower will not default on the loan.
It provides a detailed description of the collateral property.
It specifies the amount, interest rate, and repayment terms of the loan.
In the event of a default, it transfers ownership of the property to the lender.
Salesperson Beth was affiliated with Best Brokerage before she transferred to Sunshine Sales. Even though her last transaction closed before she made the change to Sunshine Sales, Best Brokerage refuses to pay Beth’s share of the commission. How could Beth get her share of the commission?
Sunshine Sales should ask Best Brokerage for Beth’s share of the commission.
Beth should sue Best Brokerage for her share of the commission.
Beth should ask the Florida Real Estate Commission to force Best Brokerage to pay her commission.
Beth should file an unlawful detainer lawsuit against Best Brokerage for her share of the commission.
27.5 years is the period of time over which the IRS allows depreciation of a:
commercial office building.
industrial warehouse.
residential rental property.
vacant land.
A capital gain is:
the amount of money saved on taxes through deductions and credits.
the interest earned on a savings account over a period of time.
the profit made from renting out a property to tenants.
the taxable profit that results from the sale of a capital asset for more than the seller originally paid.
In Florida, homestead property can still be foreclosed for:
default on a mortgage loan.
non-payment of a personal judgment lien.
unsecured debts such as credit card balances.
violation of local zoning ordinances.
A sales associate:
can represent both the buyer and seller in the same transaction without any disclosure.
is not obligated to present offers without a deposit to a seller.
is not required to disclose material facts to clients.
owes the same fiduciary duties to the principal that the broker owes.
Which type of agency authorizes the agent to perform only a single transaction?
General agency
Limited agency
Special agency
Universal agency
A letter of satisfaction states that:
a buyer has been preapproved for a mortgage.
a loan has been fully paid off.
a property has passed all required inspections.
a seller has accepted an offer on their property.
A Florida licensee who is a state resident is planning to move to another state but retaining their Florida real estate license. They must:
complete additional continuing education courses specific to the new state.
notify the Commission about the change of address.
surrender their Florida real estate license.
reapply for a new license in the new state.
What are the housing expense and total obligation ratios for an FHA loan?
28% housing expense ratio and a 36% total obligations ratio
31% housing expense ratio and a 43% total obligations ratio
21% housing expense ratio and a 33% total obligations ratio
41% housing expense ratio and a 50% total obligations ratio
The Truth in Lending Act requires:
borrowers to pay a minimum down payment of 20% on all loans.
disclosure of the true cost of credit.
lenders to provide a free credit report to all applicants.
lenders to offer the lowest possible interest rates to all borrowers.
A sales associate’s license would become ineffective if:
they are convicted of a crime of moral turpitude.
their employing broker’s license is revoked.
they fail to complete post-license education requirements.
they take a leave of absence from their brokerage.
Equity of redemption means that:
a borrower can refinance their mortgage at a lower interest rate to avoid foreclosure.
a borrower can sell the property to a third party to avoid foreclosure without paying off the loan balance.
a defaulting borrower can cure the default by paying the entire loan balance plus costs prior to a foreclosure sale.
a lender must offer a loan modification to a defaulting borrower before initiating foreclosure.
Under Florida law, a brokerage office must be located:
in a building of stationary construction.
in a commercial district zoned for business use.
on a property owned by the broker.
within the city limits of an incorporated municipality.
Going concern value is used in the appraisal of:
a historical landmark building.
a newly constructed residential property.
a profitable business enterprise.
a vacant land parcel.
Owners of buildings that are open to the public must remove barriers to access for disabled people, if those changes are readily achievable, according to the:
Americans with Disabilities Act.
Fair Housing Act.
Equal Credit Opportunity Act.
Rehabilitation Act of 1973.
Real property consists of:
the land and any personal property located on it.
the land, improvements attached to the land, and rights associated with the land.
the land and movable items not fixed to the land, such as furniture and appliances.
only the natural elements of the land, excluding any man-made structures.
Listing brokers have the duty to their sellers to:
accept the highest offer on behalf of the seller.
present all offers, including oral offers and offers without a deposit.
tell buyers that the seller will accept less because of an urgent need to sell.
reject any offers that do not meet the listing price.
Both the buyer and seller are demanding funds held in a broker’s escrow account. Within how many days must a broker notify the Florida Real Estate Commission?
5
10
15
20
An appraiser determines that the hypothetical use for an empty warehouse on the periphery of an expanding downtown area that would generate the greatest profit would be construction of a mid-rise apartment building with first-floor retail. This is an example of the principle of:
contribution.
highest and best use.
substitution.
supply and demand.
In a lien theory state, the mortgagor:
has no legal rights to the property until the mortgage is paid off.
holds title to the mortgaged property.
must obtain permission from the mortgagee to sell the property.
transfers title to the mortgagee until the loan is repaid.
A real estate license applicant whose application is denied by the Department of Business and Professional Regulation is entitled to:
automatic approval upon resubmission of the application.
an informal meeting with the Department’s director to discuss the denial.
a refund of the application fee and immediate reconsideration.
written notice of the reasons for denial and the right to a formal hearing.
A zoning variance may be granted in a case where:
a currently-operating business no longer complies with a zoning change but the owner would like to continue that use.
a property owner wants to build a commercial structure in a residential zone.
a homeowner wishes to paint their house a color not approved by the homeowners association.
an unusually shaped lot makes it difficult to build a house that complies with usual setback requirements.
A potential buyer hands a sales associate a post-dated check for a deposit. What must the sales associate do?
Return the check to the purchaser because this is a transaction for real property
Obtain the permission of the broker prior to the acceptance of the check
Refuse to accept the check because postdated checks are illegal in Florida
First obtain approval from the seller and then turn the check over to the broker no later than the end of the next business day
Which of the following is a method of voluntary alienation?
Adverse possession
Escheat
Eminent domain
Will
An acceleration clause:
allows the borrower to skip a payment without incurring late fees.
allows a lender to declare the entire loan balance due in the event of default.
prohibits a borrower from paying off a loan early.
requires the lender to reduce the interest rate if the borrower makes timely payments.
The Equal Credit Opportunity Act (ECOA):
deals with employment issues.
encourages fair housing practices.
prohibits illegal discrimination in lending.
provides public accommodations for the unhoused.
Which of the following is a requirement for a valid real estate contract?
A notary public’s signature
Offer and acceptance
A property survey
A witness to the signing
A point of beginning would be used in a:
metes and bounds description.
lot and block description.
government survey description.
condominium description.
A sales associate goes on a listing appointment to list a two-story country home on a half-acre lot that has recently been rezoned for commercial strip stores. If sold as commercial property, its value will be greatly increased. The sales associate is well aware of the new zoning but decides not to mention it to the seller. Which statement currently applies?
This is fraud
This is culpable negligence
This is failure to account
This is concealment
An implied contract is one where:
some or all of the terms and conditions may be assumed rather than made explicit.
the agreement is formalized in a written document signed by both parties.
the contract is legally binding only if notarized.
the terms and conditions are negotiated and agreed upon in a formal meeting.
Someone who provides only limited representation to one or both parties in a transaction is a:
designated agent.
dual agent.
exclusive agent.
transaction broker.
Which of the following expenses would be listed on a settlement worksheet as only a debit to the buyer?
Interest on assumed loan
Property tax
Recording fee for deed
Transfer tax on deed
In order to disburse funds that a broker holds, the broker must:
get approval from the real estate commission.
obtain a court order.
receive the permission of both the buyer and seller.
wait until the transaction is completed.
Blockbusting is defined as:
directing prospective buyers to certain neighborhoods based on their race or ethnicity.
inducing sales by telling sellers that members of protected classes are moving into the neighborhood.
providing false information about the availability of housing to certain individuals.
refusing to make loans on property in certain neighborhoods for discriminatory reasons.
A sole proprietor may:
be exempt from all business-related taxes.
form a partnership with another sole proprietor.
issue shares of stock to raise capital.
operate as a real estate broker.
Using the relevant information below, what is a potential purchaser’s housing expense ratio?
Monthly salary (husband): $12,497.34
Monthly salary (wife): $14,828.66
Monthly mortgage payment: $4,200
Interest rate: 6.5%
Term of loan: 30 years
Annual property tax: $11,000
Annual property insurance: $13,000
Monthly credit card: $600
Car payment: $500
9%
23%
25%
31%
Which of the following would be a violation of the state license law?
Hosting an open house for a property listed by another agent in the same brokerage.
Providing a comparative market analysis to a potential seller.
Referring a client to a licensed home inspector.
Representing both the buyer and seller in a transaction while claiming to act as a single agent.
When a sales contract has an “as is” provision:
it allows the seller to cancel the contract at any time.
a seller still must disclose material defects.
It guarantees that the property is free from any defects.
the buyer must make all necessary repairs before closing.
Under which set of circumstances would a broker be entitled to a commission?
The broker finds a ready, willing, and able buyer whose offer matches the terms of the listing agreement, but the sale does not close.
The broker finds a buyer who makes an offer below the listing price, and the seller rejects it.
The broker lists the property, but no offers are made during the listing period.
The broker finds a buyer who makes an offer contingent on receiving a loan, but the buyer cannot secure financing.
A quitclaim deed is:
a deed that conveys only whatever interest the grantor has at the time, if any.
a deed that guarantees the grantee will receive clear title to the property.
a deed that requires the grantor to defend the title against all future claims.
a deed that transfers property ownership with full warranties and covenants.
How many days does a broker have to place an earnest money deposit into an escrow account after receiving it from a sales associate?
1
2
3
5
The Government National Mortgage Association (GNMA) operates in the:
bond market.
primary market.
secondary market.
stock market.
Accretion is:
addition to the land by the depositing of soil by moving water.
the gradual wearing away of land by natural forces.
the process of land becoming submerged under water.
the sudden removal of land by a natural disaster.
Property owners in Florida may be eligible for exemptions and additional benefits that can reduce their property tax liability. Of the following, which is not one of the exemptions?
Property owners with disabilities
Property owners who are active duty military service members
Property owners who work in theme parks.
Property owners who are senior citizens
Registration of a brokerage’s principal office:
is freely transferable to a new location during the registration period.
is valid only if the office remains in the same city as originally registered.
must be updated with the real estate commission within 30 days of any change in office address.
requires annual renewal regardless of any changes in location.
Liquidation value is:
the appraised value of a property for insurance purposes.
the market value of a property under normal conditions.
the replacement cost of an asset minus depreciation.
what the remaining assets of a failing business would sell for.
Riparian rights refers to:
the right to build structures on a property without government approval.
the right to extract minerals from beneath a property.
water rights associated with a navigable lake or ocean.
water rights associated with a river or stream.
Using the relevant information below, what is a potential purchaser’s housing expense ratio?
Monthly salary (husband): $12,497.34
Monthly salary (wife): $14,828.66
Monthly mortgage payment: $4,200
Interest rate: 6.5%
Term of loan: 30 years
Annual property tax: $12,000
Annual property insurance: $13,200
Monthly credit card: $600
Car payment: $500
27%
25%
23%
21%
If a government body uses eminent domain:
it provides tax incentives for land conservation.
it can claim ownership of land through continuous use.
o take land for a public use it must pay just compensation to the landowner.
it co-owns the property with the original owner.
A savings and loan association making a loan to a home buyer is an example of the:
bond market.
primary market.
secondary market.
stock market.
Which of the following would be a legally permissible advertisement under Florida law?
“Beautiful 2-bedroom condo in a quiet neighborhood. Contact Harry Holmes at 555-1234 for more details.”
“Charming 4-bedroom house near top-rated schools. Call 555-6789 for a private showing.”
“Large 3-bedroom, pool home located on the golf course. New baths and kitchen. Better Brokerage, Inc.; call Harry Holmes at 555-6565.”
“Spacious 5-bedroom home with ocean views. Contact Harry at Better Brokerage at 555-9876 for more information.”
A tenancy in common requires:
that all co-owners acquire their interests at the same time.
that all co-owners are able to use and possess the entire property.
that all co-owners have equal ownership shares.
that all co-owners must be related by blood or marriage.
What is the sum of money that the parties to a contract agree in advance (at the time of entering the contract) that will serve as compensation in the event of a breach.
Compensatory damages
Nominal damages
Liquidated damages
Punitive damages
What is the minimum number of closed comparable sales that an appraiser should use to determine a property’s market value?
5
4
3
2
A landlord would need to deposit a surety bond with the county clerk before being able to:
commingle security deposits with other funds.
evict a tenant without a court order.
increase the rent beyond a certain percentage.
lease the property to a commercial tenant.
Which statement is INCORRECT regarding the Real Estate Settlement Procedures Act? RESPA:
mandates that all real estate transactions must be conducted through a licensed broker.
prohibits kickbacks
requires disclosures of settlement costs in federally-related loan transactions.
prohibits unearned fees.
A property listed for $1,000,000 sold for 93% of the list price. The listing and selling offices agree to split the 7% commission equally. If the sales associate who sold the property gets 55% of all commissions from their broker, how much is the sales associate’s share of the commission?
$17,902.50
$32,550
$65,100
$35,805
Building codes are an example of regulation at the:
federal level.
local level.
regional level.
state level.
A Florida broker associate:
can own a real estate brokerage and be registered as a general partner of the brokerage.
has a broker license but continues to act as a sales associate for another broker.
is licensed to practice law and real estate simultaneously.
only handles administrative duties in a brokerage.
Under Florida law, a landlord has 15 days to:
notify the tenant of a rent increase.
provide a written lease agreement to the tenant.
repair any damages reported by the tenant.
return a security deposit if they do not intend to make a claim for damages.
A general warranty deed:
contains five covenants that protect the grantee.
guarantees the property is free from all encumbrances.
is used primarily for transferring commercial properties.
transfers property ownership without any warranties.
An appraiser has selected a comparable sale that recently sold for $430,000 for inclusion in an appraisal. The comparable has 3 bedrooms, 1 bath, and a fireplace. The subject property has 3 bedrooms, 2 baths, and no fireplace. Analysis by the appraiser indicates a bathroom is worth $12,500 and a fireplace is worth $6,000. What is the adjusted sales price of the comparable property?
$411,500
$423,500
$436,500
$448,500
Redlining may be defined as:
attempting to induce sales by warning residents that members of a protected class will be moving into the neighborhood.
channeling prospective buyers to or away from certain neighborhoods because of neighborhood demographics.
refusal to make loans based on neighborhood demographics.
refusal to negotiate with members of a particular protected class.
A tenancy by the entireties is allowed only:
between a parent and child.
between two business partners.
between two owners who are married.
between two unrelated individuals.
An estate in severalty refers to:
joint ownership by two or more parties.
ownership by a corporation and its shareholders.
a partnership where several partners have equal shares.
sole ownership.
When a third person takes the place of one of the original parties to a contract, it is known as a/an:
assignment.
delegation.
novation.
subrogation.
On a closing worksheet, an earnest money deposit or binder deposit will be considered a:
credit to buyer.
credit to seller.
credit to a third party.
debit to buyer.
How many acres are contained in the S 1/2 of the NW 1/4 of the NE 1/4 of the SE 1/4 of Section 13?
1.25
2.5
5
10
A granting clause in a deed:
names the parties and contains words of conveyance.
provides a legal description of the property being conveyed.
lists any encumbrances or liens on the property.
specifies the purchase price and payment terms.
The Florida statute of frauds requires real estate contracts to be:
notarized.
recorded within 30 days.
oral or in writing.
in writing.
A property that sold for $610,500 was financed with a new mortgage loan of $488,400. What amount must be charged for the state documentary stamp tax on the deed if the property is not located in Miami-Dade County?
$2,136.75
$3,052.50
$3,663
$4,273.50
A property’s actual age refers to:
the actual chronological age of the property since it was built.
the age the improvements appear to be, taking into account wear and tear or updates.
the expected useful life of the property based on current market conditions.
the number of years the property has been owned by the current owner.
A tenancy in common:
allows only married couples to hold title together.
does not include the right of survivorship.
mandates that all co-owners acquire their interests at the same time.
requires all co-owners to have equal ownership shares.
A broker’s escrow records must be retained at least ____ years from the date the escrow funds were received; if the records were evidence in litigation, they must also be retained at least ____ years following the end of the litigation.
five; two
five; three
two; five
two; three
An “as is” provision in a sales contract:
allows the buyer to cancel the contract at any time.
does not mean that a seller can avoid disclosing material defects.
guarantees that the property is free from any defects.
requires the seller to make all necessary repairs before closing.
Under Florida law, a brokerage office cannot be located:
in an RV or houseboat.
in a building of stationary construction.
in the broker’s home if it meets local zoning ordinances.
in a residence as long as it is permitted by the HOA or condominium association.
Eminent domain is:
a government policy that provides tax incentives for land conservation.
a legal principle that allows individuals to claim ownership of land through continuous use.
a legal right enabling governmental bodies to take land for a public use, even over the owner’s objections.
a process by which private property is transferred to a new owner through a will.
The Department of Veterans Affairs:
buys and sells loans in the secondary market.
guarantees loans.
insures loans.
sets interest rates for all mortgage loans.