GOLD COAST FINAL EXAM LATEST 2023-2024 ACTUAL
EXAM 300+ QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |AGRADE
What must am individual do to qualify for a homestead tax exemption?
A. Own the property
B. Own and use the home as a primary residence
C. File for a homestead tax exemption by March 31st
D. Live in their principal residence for the entire year – ANSWER- B. Own and use
the home as a primary residence
Complete this statement. In Florida, the owner of a homestead property located in
outside of the city limits is required to pay property taxes levied
_______?
A. On the total assessed value of the property
B. By the nearest city
C. By the county and school board
D. By the state of Florida – ANSWER- C. By the county and school board
Who can appraise property for purposes of taxation?
A. The county property appraiser
B. The local school board
C. The city in which the property is located
D. Special taxing districts – ANSWER- A. The county property appraiser
How is 10 mills expressed as a decimal?
A. 1.00
B. .100
C. .010
D. .001 – ANSWER- C. .010
Special assessments are used to pay for which of the following?
A. School boards
B. Sidewalks, sewers and other public improvements that benefit the property
owner
C. City services in excess of operating revenues
D. New public structures, such as sport facilities – ANSWER- B. Sidewalks,
sewers, and other public improvements that benefit the property owner
Complete this statement. If a property owner fails to pay property taxes, the
resulting lien is _?
A. Held by the county until the certificate is sold
B. Owned by the county property appraiser
C. Foreclosed on by the sheriff
D. Sold at public auction for the highest interest rate – ANSWER- A. Held by the
county until the certificate is sold
According to Florida’s Save amour Homes Act, the assessed value of homestead
property cannot be increased in any one year by more than which of the following?
A. The lesser of 3% or the CPI
B. the greater of 3% or the CPI
C. 10 mills
D. An amount determined by the county property appraiser – ANSWER- A. The
lesser of 3% or the CPI
Homeowners who file itemized tax returns are allowed deductions for which of the
following items?
A. Real estate taxes and repairs
B. Hazard insurance and depreciation
C. Real estate taxes and mortgage interest
D. Mortgage interest and utilities – ANSWER- C. Real estate taxes and mortgage
interest
Which statement is correct with respect to homeowner insurance coverage?
A. All losses are covered
B. Flood losses are limited to $25,000
C. Personal property is not covered
D. Homeowners with multiple policies will not receive the full amount of their loss
for each insurer – ANSWER- D. Homeowners with multiple policies will not
receive the full amount of their loss for each insurer
Which statement best describes the interest that is payable on tax certificates?
A. It is based on the lowest bid received
B. It is never lower than 18%
C. It is negotiable between property owner and bidder
D. It is established by law – ANSWER- A. It is based on the lowest bid received
Why is the process of real estate investment analysis important to an investor?
A. It helps an investor select properties that meet personal objectives
B. It determines the amount of taxes due on income producing property
C. It determines the exact cash flow from an investment property
D. It makes possible the best use for a property based on zoning – ANSWER- A. It
helps an investor select properties that meet personal objectives
Fixed expenses typically include which of the following?
A. Real estate taxes and hazard insurance
B. Management fees and depreciation
C. Utilities and repairs
D. Mortgage payments and income taxes – ANSWER- A. Real estate taxes and
hazard insurance
Which of the following statements regarding reserves for replacements is correct?
A. They are a cash expense
B. They should not be considered in a residential income property
C. They are used to pay for normal maintenance of the property
D. They are a non cash expense that is used to replace short lived components that
wear out from time to time – ANSWER- D. They are a non cash expense that is
used to replace short lived components that wear out from time to time
What is the formula to determine the loan-to-value ratio?
A. Loan multiplied by value
B. Value divided by loan
C. Loan divided by value
D. Loan subtracted from value – ANSWER- C. Loan divided by value
What type of risk is caused by changes in general business conditions?
A. Dynamic
B. Equity
C. Leverage
D. Static – ANSWER- A. Dynamic
If an investor earns a lower rate of return on invested capital than the rate that is
paid on borrowed funds, what type of leverage is Indicated?
A. Positive
B. Neutral
C. Negative
D. Cumbersome – ANSWER- C. Negative
What is the time period established by the IRS over which non residential
investment real estate can be depreciated?
A. 39 years
B. 27.5 years
C. 22 years
D. 15 years – ANSWER- A. 39 years
All of the following items are relevant when estimating the value of a business
except:
A. Personal property owned
B. Short-term liabilities
C. Business goodwill
D. Personal income taxes – ANSWER- D. Personal income taxes
Which document indicates the financial condition of a business as of a particular
time?
A. Operating statement
B. Profit and loss statement
C. Balance sheet
D. Bank statement – ANSWER- C. Balance sheet
Which of the following statements best describes business brokerage?
A. It should not be conducted by real estate licenses
B. It cannot be conducted by real estate licensees
C. It consists primarily of analyzing financial statements
D. It would rarely involve security transactions – ANSWER- C. It consists
primarily of analyzing financial statements
Real estate ,ice sees who are engaged in business brokerage might need to have a
securities license if the transaction involves which of the following?
A. Negotiation of a new mortgage loan
B. An analysis of financial statements
C. Renegotiation of a. Existing lease
D. Transferring shares of stock or limited partnership interests – ANSWER- D.
Transferring shares of stock or limited partnership interests
Under the Uniform Commercial Code, what is the document used to secure
financing of personal property?
A. Deed
B. Bill of sale