Which of the following is a set of guidelines for the ethical conduct of real estate licensees?
Code of ethics
Contract
Option
Rule book
Joe and Emma Parsons begin informally working with their neighbor Kyle, who’s a real estate licensee, to find a bigger house. The parties have not signed any agreements or discussed the arrangements. This is an example of an ______ agency agreement.
Executory
Express
Implied
Unspoken
The ______ provides buyers with an approximation of the costs they will likely pay at settlement.
Closing Disclosure
HUD-1 statement
Loan Estimate
Mortgage Servicing Transfer Disclosure
The amount of money that a seller will make on a transaction after closing expenses and brokerage fees are paid is called ______.
Commission
Net to buyer
Net to seller
Purchase price
Which photograph of a home for sale should not be published for public viewing?
An exterior photo showcasing the pool and outdoor kitchen/bar area
A photo of the billiards room that reveals the owner’s collection of antique guns
A photo of the master bathroom that also shows the photographer’s arm reflected in the mirror
A wide-angle photo of the renovated kitchen that makes the area look larger than it really is
Easements are a type of encumbrance that can affect a property. Which most accurately describes the establishment of easements?
Easements are established for a predetermined amount of time, not to exceed one year.
Easements are often established by a written agreement between the parties.
Easements, once established, are always permanent.
Easements require the property owner’s express permission to be established.
Which of the following best describes the role government plays in the regulation of real estate business in Florida?
Governmental agencies do not play a role in the regulation of the real estate industry or its business, in Florida.
Governmental agencies may attempt to regulate real estate business in Florida only on a case-by-case basis, with a court order.
Local, state, and federal governmental agencies provide laws and rules that regulate real estate business in Florida.
Real estate businesses are subject only to the regulations of their district’s local governmental agencies.
What should a transaction broker do if the seller asks for a property disclosure form?
Advise the seller that this is a client-level service
Provide the form
Tell the seller the form is available online
Tell the seller to get one from a lawyer
An individual is a single taxpayer and a real estate investor. They buy homes for cheap, fixes them up while living in them, and sells them for a profit. How much are the allowed to exclude if they realize a gain from the sale of their current property (assuming they meet all the criteria to exclude the gain)?
$25,000
$250,000
$50,000
$500,000
The Bakers calculated their total housing expense ratio to be 30%. Which of the following is true for them?
They don’t qualify for an FHA-insured loan because their HER is too high.
They might qualify for an FHA-insured loan, as long as their total obligations ratio is lower than 43%.
They qualify for a conventional loan.
They qualify for an FHA-insured loan.
Homes built before 1978 may have what environmental hazard in their paint?
Arsenic
Asbestos
Lead
Radiation
Which mortgage market comprises lending institutions that lend directly to the consumer?
Government market
Primary mortgage market
Secondary mortgage market
Stock market
Which of the following is required of applicants for a broker license, but not of applicants for a sales associate license?
Must be 18 years old
Must complete pre-licensing education and an examination
Must have had a real estate license for at least two years
Must hold a high school diploma
A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. How many payments will he make over the course of the loan?
180
240
30
360
Which statement best describes a mortgage broker?
An institution that accepts savings deposits and lends money as loans and mortgages
An institution that focuses on commercial lending
A person who works for a specific lender and offers products from that institution
A person who works with multiple lenders to find the product that works best for the client
When a lender charges a borrower more than the highest allowable interest rate, it is called ______.
A discount point
A note
Interest
Usury
The cost approach to finding an appraised value measures which of the following?
The cost to acquire land and construct a reproduction
The cost to acquire land only
The cost to construct a reproduction only
The expenses the property is expected to produce for the owner