Assets such as intellectual property, brand recognition, and reputation are known as what?
Going concern
Intangible assets
Physical assets
Tangible assets
Charity is living her dream. She recently purchased a nursery and greenhouse. She can’t wait to re-open in the spring. The business’s net worth was $200,000, but as a thriving business with a great reputation and loyal customers, it was actually valued at $275,000, which was the price Charity paid for it. As the buyer, Charity will carry the difference of $75,000 on her books as an intangible asset. What is this intangible asset called?
Amortization
Going concern value
Goodwill
Liquidation value
What’s the name of the required clause in a deed that “grants” or “conveys”?
Acknowledgment
Granting clause
Habendum clause
Warranty clause
The formula for net to seller is sales price x (100% – _______).
Commission rate
Loan amount
Market value
Sales price
Which of the following types of loans is considered a form of seller financing?
Graduated payment mortgage
Old money mortgage
Pledged account mortgage
Purchase money mortgage
Which one of the following best describes the fiduciary duty of confidentiality?
You must keep all material facts confidential.
You must keep all parties’ information confidential.
You must not discuss confidential matters with your client.
You must not share your client’s confidential information.
What’s an appraisal?
An inspection of a home for defects
An unbiased estimate of property value as of a specified date
The process of forming an opinion of a property’s value
The study of a property, potentially for land use or marketability
Your client, Bruno, is an investor. He is in the process of selling a fourplex and mentions to you that he hates the idea of the capital gains tax he’ll be subject to. What should you tell him?
“Capital gains do not apply to investment properties.”
“Investors don’t pay taxes.”
“Taxes are required, no matter what you do.”
“You might consider a 1031 tax-deferred exchange.”
Which buyer negotiation strategy is unlikely to work in a hot market?
Ask the seller to pay closing costs.
Offer a quick close.
Offer full price.
Waive the appraisal.
The sale of a business generally consists of a series of ____________steps.
10
11
12
15
The Florida Real Estate Commission administers and enforces the real estate licensing laws of the state. Does the commission concern itself with the real estate activities of individuals who do not have a real estate license?
No, the commission exists only to grant licenses to applicants who meet the requirements.
No, the commission leaves that responsibility to the Division of Real Estate.
No, the commission oversees only the activities of licensees.
Yes, the commission enforces real estate licensing laws for all individuals conducting real estate activities.
Investor Holly is taking advantage of the 1031 tax-deferred exchange. Which of the following describes a benefit Holly will realize through the exchange?
Holly can avoid paying taxes permanently on the capital gains and recaptured depreciation.
Holly can invest in a property with a higher value by using funds that would have been paid to the IRS.
Holly can use the additional income to purchase a new condo to live in.
Holly will need to pay taxes on the recaptured depreciation, but can avoid the tax on capital gains permanently.
A limited liability company combines some advantages of which two types of structures?
General and close corporation
Partnership and corporation
Sole proprietorship and corporation
Sole proprietorship and partnership
How can an investor roll over any gain realized in an investment property into another property and defer paying capital gains taxes?
1031 exchange
Identify replacement property within 180 days
IRA rollover
IRS Form 1031
What type of penalty would be assessed for a serious violation?
Citation
Notice of non-compliance
Reprimand
Suspension or revocation
For an antitrust violation to occur, which element must be present?
Agreement
Coercion
Cohesion
Commission
Which type of lien attaches to all real property owned by someone?
General lien
Mortgage lien
Real property tax lien
Specific lien