The administrative agency for administering and enforcing Florida real estate law is under the jurisdiction of which entity?
The DBPR
Criminal courts
Civil courts
Small claim courts
A broker deposits $10,000 of their own money into the escrow account. What is this an example of?
Steering
Commingling
Misrepresentation
Concealment
Karen made a commission of $3,522.75 on the sale of a property. She split her commission equally with her broker, which is 50% to the broker and 50% to Karen. Her broker took 55% of the total commission on a 7% commission rate. What was the sale price of the property?
$50,000
$75,000
$100,000
$183,000
The highest and best use of a parcel of real estate is the legal and possible use that generates the greatest return on which of the following?
Comparable properties
Adjacent parcels of land
The future use of the improvements
The future use of the land and improvements
A landlord may commingle tenants’ security deposits with other business funds under which condition?
The tenant receives 75% of the interest earned
The funds are deposited in a non-interest-bearing account
The landlord posts a surety bond
The funds are placed in an operating account controlled by the leasing agent
The county plans to install sidewalks along a busy street. One owner’s 15,000 sq. ft. lot measures 150 front-feet adjacent to the street. The cost of the improvement is $22 per lineal foot. If the county pays 25% of the expense, how much is the special assessment to the property owner?
$2,475
$1,650
$1,237.50
$825
Which deed is most commonly used to clear a cloud on a title?
Quickclaim
Bargain and sale
General warranty
Quitclaim
A homeowner receives a property tax assessment for 2024. When does the property tax become delinquent?
April 1st, 2024
November 1st, 2024
April 1st, 2025
January 1st, 2025
Which lien will be paid first?
Mortgage lien
Real estate property tax lien
Judgment lien
Vendor’s lien
The FREC is investigating a claim by a buyer that the broker had not given the proper disclosure to the buyer before the buyer purchased a home. The broker has paperwork dating back three years from the date of the signing of the document in question and one year after the legal action of the case. Is the broker protected?
Yes, because the broker had the records at the time of the case, he is fine.
Yes, because the broker has records dating back three years, he is fine.
No, the broker needs to keep the records five years from the date of the document and two years after any legal action.
No, the broker is better off without any record of the disclosure; the buyer can’t sue if there is no record.
If a landlord does not intend to make a claim on the security deposit, they must return the money to the tenant within how many days of the tenant vacating the property?
10
15
20
30
A property listed for $500,000 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?
$8,951.25
$16,275
$32,550
$17,902.50
Which term refers to the difference when an investor sells a property for more than they paid?
Capital loss
Capital gain
Ad valorem tax
Goodwill
The receptionist in a real estate broker’s office receives an escrow deposit on Monday and hands it to the broker that afternoon. The broker must deposit the funds into the escrow account prior to close of business on which day?
Tuesday
Wednesday
Thursday
Friday
A vacant parcel of land (not in Miami-Dade County) is located in the NW ¼ of the SW ¼ of the NE ¼ of the SW ¼ of Section #12, T4S, R10E. The land is selling for $25 per square foot. What amount would be paid for the tax on the deed?
$280
$952.88
$3,049.20
$19,057.50
A small triplex was purchased. At the time of the loan application the quoted interest rate was 6.5%. At the time of closing the true interest rate, including finance charges came to 7.5%. The lender did not disclose this to the potential purchasers. The lender is in violation of which law?
Fair Credit Reporting Act
Fair Housing Act
Truth In Lending Act
Equal Credit Opportunity Act
Mark recently purchased a house in Florida and wants to file for a homestead exemption. All of the following apply to a homestead exemption, EXCEPT:
The exemption must be filed between January 1st and March 1st.
This must be the homeowner’s primary residence.
A totally and permanently disabled person is entitled to a 100% exemption.
Once the homestead exemption is approved, the property is immune from property taxes.
If an owner of real property gave another party the right to buy their property for a fixed price at any time during a specified time period, what type of agreement was created?
Exclusive right of sale listing
Contract for sale and purchase
Contract for deed
Option contract
The interest rate on a loan is 5.75%. The lender is charging four points. What is the lender’s approximate effective yield?
6%
6.13%
6.25%
6.5%
Which method is the most accurate method of land description?
Metes and bounds method
Government survey system
Rectangular method
Lot and block method
Sunnydale Real Estate, Inc., a real estate brokerage corporation, had its registration revoked by the Florida Real Estate Commission. Which statement correctly describes the licenses of those licensed with the corporation?
Once the FREC revokes the corporate registration, all licenses within the corporation are automatically cancelled.
Revocation of the corporation has no effect on the licenses of active brokers within the corporation.
The licenses of all licensees within the corporation are automatically changed to inactive status.
Licensees must apply for a reissue to reinstate their original corporate registration.
Justin is an unlicensed person, and he has been appointed a trustee of a special needs trust for his nephew. The trust will be funded by the sale of the property of his brother. Justin lists, sells, and puts the money into the trust as he is required to do. What best describes this situation?
Justin is acting as a trustee and, as such, does not need a real estate license.
Justin needs a license since he is acting for another in selling property.
Justin must register with the FREC.
Justin is acting as an attorney in fact.
What is the opposite of erosion?
Corrosion
Avulsion
Redemption
Accretion
Using the relevant information below, what is a potential purchaser’s housing expense ratio?
Monthly salary (husband): $6,248.67
Monthly salary (wife): $7,414.33
Monthly mortgage payment: $2,100
Interest rate: 6.5%
Term of loan: 30 years
Annual property tax: $5,500
Annual property insurance: $6,500
Monthly credit card: $300
Car payment: $250
9%
23%
25%
31%
A residence that is rented is being sold with a closing on March 12th. The rent, which is due and payable on the first of each month, is $550. If the day of closing belongs to the seller, what is the amount of the rent proration and how will it be allocated between the parties?
$212.90, debit buyer, credit seller
$212.90, debit seller, credit buyer
$337.10, debit buyer, credit seller
$337.10, debit seller, credit buyer
Which statement correctly describes the rules for transferring the registration of a real estate office?
The registration can only be transferred if it is a branch office.
The registration can only be transferred if it is the main office.
The registration can only be transferred one time.
The registration is only necessary if the office is located in Florida.
What must a licensee do when selling their own property and placing ads in local publications?
Disclose their license status in all newspaper advertising
Disclose their license status on the yard sign by displaying the words “owner agent” on the sign
Engage the services of another licensee to represent them as a seller
Disclose their license status prior to entering into serious negotiations