An appraiser has selected a comparable sale that recently sold for $86,000 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 $2,500 and a fireplace is worth $1,200. What is the adjusted sales price of the comparable property?
$82,300
$84,700
$87,300
$89,700
Which type of obsolescence, in the cost approach to appraisal, is almost always incurable?
External obsolescence
Functional obsolescence
Physical deterioration
Quantity survey obsolescence
When estimating depreciation of an improvement, which age will the appraiser use?
Actual age
Effective age
Chronological age
Economic age
Which act requires lenders to judge loan applicants on the basis of credit rating, income, expenses, and assets without regard to their age, race, religion, sex, marital status, or nationality?
Fair Housing Act
Equal Credit Opportunity Act
Fair Loan Act
Fair Underwriters Act
What problem does a property that is overimproved, poorly designed, or has outmoded fixtures suffer from?
Physical deterioration
Functional obsolescence
External obsolescence
Excess depreciation
Which statement best describes a void contract?
A valid agreement that can be enforceable, but one or both parties can cancel at any time.
A contract that cannot be enforced and cannot be performed under the law.
An oral agreement between the parties.
A valid written agreement that is not recorded in the public record.
What should a broker’s initial action be when entertaining doubt as to which person is entitled to the delivery of escrowed property?
Consult with an attorney
Refer the parties to the Department of Business and Professional Regulation
Give the escrowed property to the closing agent
Notify the Florida Real Estate Commission in writing
What is a transaction broker?
An agent for both the buyer and the seller
A limited agent of both principals
A provider of limited representation to a buyer, seller, or both
An agent who provides no representation to either buyer or seller
Which type of deed would be the best to convey property from the standpoint of the grantor?
General warranty
Quitclaim
Special warranty
Bargain and sale
Which statute stipulates the time periods during which a party may sue for the enforcement of a contract?
Statute of Frauds
Statute of Allowances
Statute of Enforcement
Statute of Limitations
Which document is filed by the mortgagee in a lien theory state to document that the mortgage debt has been paid in full?
Satisfaction of Mortgage
Mortgage Revocation
Promissory Note Cancellation
Mortgage Cancellation
What is the IRS-established depreciation schedule for a single-family home?
27.5 years
39.0 years
39.5 years
50.0 years
All of the following statements are true regarding a broker’s office, EXCEPT:
The office must consist of at least one room wherein books and records may be retained and negotiations may be conducted.
The law stipulates the wording required on the broker’s office sign.
The office can be located in a motor home provided the letterheads and advertising of the firm properly disclose it as an office.
All earnest money records must be retained by the broker for at least 5 years.
On a closing statement, each of the following items are typically prorated, EXCEPT:
Prepaid rent
Title insurance
Property taxes
Interest on an assumed mortgage
Better Brokerage Inc. runs the following ad: “Large 3-bedroom, pool home located on the golf course. New baths and kitchen. Call Harry at 954-424-6565”. Which statement correctly applies to this ad?
This ad is fine as is.
The only thing missing from the ad is the name of the brokerage.
The only thing missing from the ad is Harry’s last name.
Both the name of the brokerage and Harry’s last name must be in the ad.
Which statement about the real estate brokerage office is true?
An office sign is not required for a broker operating out of their home.
A brokerage branch office may be closed and reopened at the same location during the same license period by requesting a reissue.
A sales associate may open their own branch office.
If a broker operates out of more than one office, only the primary office must be registered.
What will a private lender require the mortgagor to pay on a conventional loan, if the loan-to-value ratio is greater than 80%?
UPMIP
MIP
PMI
PIM
All of the following would be considered an operating expense on an income producing property, EXCEPT:
Property taxes
Electric bills
Mortgage payments
Hazard insurance
A city is in need of additional land for a new school. What right would the city have to acquire the land, even over the objections of the property owner?
Eminent domain
Escheat
Police power
The city has no such right
Which clause is required in all deeds?
Reddendum
Granting
Seisin
Exculpatory
These are all remedies for breach of a real estate contract between a buyer and seller, EXCEPT:
Claim from the Real Estate Recovery Fund
Liquidated damages
Specific performance
Compensatory damages
A seller and broker enter into a six-month agreement where the seller agrees to pay a commission to the broker, regardless of who actually sells the property. What type of contract is this?
Contract for deed
Open listing
Exclusive listing
Exclusive right of sale listing
To qualify for an FHA loan, the housing expense ratio and total obligations ratio, correspondingly, cannot exceed which of the following limits?
29% and 41%
28% and 36%
27% and 35%
31% and 43%
In a township, which section is two sections west of Section 10?
7
8
11
12
Which concept of value pertains to appraisals of profitable business enterprises or opportunities?
Goodwill
Going concern
Liquidation
Tangible asset
These are all ways to terminate an offer, EXCEPT:
Acceptance
Rejection
Novation
Withdrawal
What is required in order to create a valid real estate sales contract?
Both parties must sign the agreement.
Offer and acceptance must be communicated by each party to the other.
The document must be prepared by an attorney.
The document must be under seal.
Which approach to value would most likely be selected to determine the value of the county court house?
Sales Comparison
Public Buildings and Non-Commercial Property Approach (PBNCPA)
Cost-Depreciation
Large Scale State and Federal Buildings
Which of the following may be used to cure a defect in title to real property?
A current survey
A quitclaim deed
Title insurance
An abstract
When a sales contract for residential real property includes the “as is” provision, which statement correctly applies?
The seller is excused from having to disclose material defects.
The buyer may, at their expense, have the property inspected.
Real estate brokers are protected from defects that were not disclosed to them by the seller.
The “as is” provision does not excuse or circumvent the duty to disclose material defects.
A person has had his application for licensure denied because he has been found guilty of crimes of moral turpitude. Which of the following groups is responsible for denying his application?
The Division of Real Estate
The Attorney General
The Florida Real Estate Commission
The Florida Supreme Court
A buyer who is assuming a mortgage would normally pay which of the following taxes?
State documentary stamp tax on the note and intangible tax
State documentary stamp tax on the deed and intangible tax
State documentary stamp tax on the note
State documentary stamp tax on the deed
Bill’s home is assessed for $185,000. The tax rate is 22.5 mills including a city millage of 6 mills, county millage of 7.5 mills, and school millage of 9 mills. Bill is eligible for the standard homestead tax exemption. What is the amount of Bill’s property taxes?
$3,626.50
$4,621.50
$3,262.50
$4,162.50
Sally received her initial sales associate’s license on July 19, 2024 with an expiration date of March 31, 2026. What is the status of her license if she does not complete a 45-hour post-license course prior to expiration?
Revoked
Suspended
Voluntarily inactive
Void
Which right would an owner have whose property borders a river?
Littoral
River
Riparian
Accretion
Ted, a Michigan real estate broker, referred a customer to broker Wendy in Tampa with the understanding that Ted would receive a portion of any commission earned. The customer purchased a home with Wendy’s assistance. If Ted did not participate in the transaction and Wendy mailed Ted a portion of the commission, which of the following statements applies?
The Florida real estate license law was not violated.
Broker Wendy violated F.S. 475 by paying the commission to Ted.
Since Ted accepted the commission, both brokers violated F.S. 475.
Ted violated Florida’s real estate license law by asking Wendy to pay a referral fee.
Which statement correctly applies to a real estate broker who represents both parties as a single agent in a transaction?
The broker may be paid by both parties if each knows of and agrees to the dual commission.
The broker may be compensated by either party, but never both.
The broker is in violation of Florida Statute 475.
The broker is limited to their customary commission.
The Federal Government provides income tax benefits for private home ownership. These tax benefits include homeowner deductions for all of the following, EXCEPT:
Mortgage payments
Home equity loan interest
Property taxes
Mortgage interest
In a lien theory state, who holds title to mortgaged real property?
Mortgagor
Mortgagee
Trustee
Trustor
What legal tests may be used by a court to determine if an item is a fixture or not?
Interest, method of annexation, adaptation of the article
Intent, method of annexation, adaptation of the article
Interest, method of removal, adaptation of the article
Intent, real property, method of attachment
What is the opposite of erosion?
Corrosion
Avulsion
Redemption
Accretion
A homeowner defaults on the mortgage. The homeowner owes the lender $200,000. The home is sold at public auction and the sale produces $240,000. Where does the surplus amount of the balance due on the promissory note go?
To the mortgagor
To the mortgagee
Toward a deficiency judgment
To reimburse the Real Estate Recovery Fund
Which statement is correct concerning a property held in an estate by the entireties?
Upon the death of one spouse the surviving spouse acquires title in a life estate.
A divorce terminates the estate and a tenancy in common results unless otherwise dictated by a court.
A lien based on the personal debts of only one spouse can be foreclosed against the property.
The intention to create the estate must be specified in the deed.