Investors in commercial real estate often give up ______ when they purchase a new property.
Hope
Leverage
Liquidity
Risk
Zach owns a cooperative. Which of these documents does he receive?
Mortgage
Proprietary lease
Title
Trust document
It’s very important that a buyer obtain a/an _________that shows that he has obtained homeowners fire and hazard insurance.
Abstract
Binder
Certificate
Title
What type of listing agreement provides the most protection for the listing agent’s compensation?
Exclusive listing
Exclusive right to sell
Net listing
Open
The FREC has just learned that a real estate licensee has committed a crime while practicing real estate. What power or duty does the FREC have in this matter?
Arrest the licensee for the criminal violation
Impose a prison sentence not to exceed three years
Indict the licensee
Report the criminal violation to the state attorney general
In Florida, homeowners can exempt a portion of their primary residence from property tax. What is the amount of the homestead exemption available for school taxes?
$25,000
$5,000
$50,000
$75,000
Which of the following can reimburse the buyer after the sale if a title issue arises?
Buyer title insurance
Homeowners insurance
Lien proceeds
Special deed
What’s the primary purpose of bulk zoning?
To allow warehouse facilities in residential areas
To increase density
To keep like properties together
To restrict density
Which scam, as described by the FBI, involves an appraiser working secretly with a borrower and providing a fraudulent appraisal report to the lender?
Equity skimming
Identity theft
Inflated appraisal
Straw buyer
Allison is a new licensee who is considering specializing in an area of real estate. Which of the following statements is true about real estate specializations?
Additional experience and education are required.
Both brokers and sales associates may specialize in one or more property types.
Only brokers may specialize.
Only real estate professionals with five or more years of experience may specialize.
Eric lost his job and has not been making payments on his mortgage note. Which of the following statements is true?
Eric has defaulted and the lender has the right to pursue legal action.
Eric must sell the property to satisfy his debt.
The lender can evict Eric and take possession of the property.
The property will be put up for public auction by the lender.
What is the most common type of wood-eating pest?
Carpenter ants
Fire ants
Powderpost beetles
Termites
It’s that time of year again in real estate where things are really slow, and properties just aren’t moving. In real estate, this period is referred to as a ______.
Cyclical certainty
Downcycle
Downturn
Slump
When the inspection report comes in, which of the following should a buyer’s agent do?
Give the report to the seller’s agent so the seller can decide which issues to address.
Nothing; the inspection report issues are up to the buyer to address.
Submit the report to the seller’s agent along with a note that the seller needs to fix everything.
Work with the buyer client to determine the issues that they’d like the seller to address.
At a business meeting attended by the heads of the top brokerages in town, the keynote speaker discussed a minimum listing fee. What is this?
Group boycotting
Market allocation
Price fixing
Tie-in arrangement
A week before a transaction closed, the seller changed her mind and decided to not go through with the sale, so the buyer filed a lawsuit to make the seller sell. What is this called?
Accepting liquidated damages
Accepting partial performance
Suing for damages
Suing for specific performance
Termites are the most ______ type of wood-eating pest.
Common
Deadly
Destructive
Hard-to-eradicate