Gold Coast FINAL EXAM STUDY SET (Questions and Answers, 100% Verified)
What is the form you sign that says you will pay the loan back ? promissory note
What is the post licensing grace period after first expiration ? none
Deposits is a form of… valuable consideration
Physical land and improvements real property
Is it a violation if a sales associate work for two brokers Monday-Friday, and Saturday and Sunday and getting paid commission from both Yes
What is the maximum fine per offense ? $5,000 per fine
Out of state broker sends a customer, and had no part in the transaction and requests a referral fee, should he expect a commission ? yes.
How many acres in one quarter of a section ? 160
What do you do when there is conflict in who escrow goes to notify FREC
When do you NOT have to notify FREC about conflict of escrow ? contingent on the contract
T/F Grantee and Grantor has to sign the deed False
What statute has to deal with contracts being in writing ? Statute of Frauds
T/F A broker can have an office an office in a motorhome false
Broker deposits $10,000 of personal funds into escrow account, what is he guilty of ? commingling
What is the best deed from the grantors POV? Quitclaims Deed
What is the law that states that lenders have to tell you the truth about the interest rate ? Truth in Lending
What law puts a time limit on contracts ? Statute of Limitation
What is the Statute of Limitation on oral contracts ? 4 years
What is used when you exceed 80% loan amount, to insure funds? Private Mortgage Interest (PMI)
The future use that brings in the highest return on land ? Highest and Best Use
Which entities that would fund a shopping center ? Life insurance companies
Someone gives you a property to enjoy till you die is what type of estate ? life estate
What type of estate reverses back after a life estate ? reversion estate
Limited representation of a buyer or seller transaction Broker
Single Agent that represents both seller and buyer ? dual agency
What is dual agency a violation of ? violation of F.S 475
The least effective method of the Federal Reserve System ? make changes to discount rate
A developer is sending out keys to people to view a home they building, and says if their key fits they are gifted a home, is this promotional give aways legal? yes
Neighbor bringing the value of a home down external obsolescence
The government’s right to take property to build a school ? eminent domain
Seller keeps the deposit liquidated damages
2 main deductions of home owners mortgage interest and property taxes
What is filed on your behalf once you complete paying you mortgage in lien theory states ? letter of satisfaction
Sales associate quits before sale closes and request to have commission, but the broker refuses. what can the sales associate do ? sue the broker
What type of estate is it when 3 people that get involve in investing on a property at different times ? tenancy in common
What type of lease is it when portion of profit goes to percentage lease
Rate of State Stamp Documentary Tax on Deed ? $.70 cents per 100$
Clause in mortgage that gives the mortgagee the right to increase interest rate ? accelerator clause
What can FREC deny license for ? not being a US citizen
In Lien theory state who holds the title ? mortgagor
What’s the maximum your interest can go up annually with Homestead ? 3%
What is an outcome of over-improvement ? functional obsolescence
all ways pick mortgagor to the mortgagor
If your a transaction broker works for who ? customer..
If your a single agency broker works for who ? principal/client
FHA ratios 31 and 43
A tenancy for years should include a specified period of time
Entities that CANNOT be brokers corporation sole
Which entity can be a brokerage ? corporation for profit
Sidewalks gets paid before the IRS is an example of a .. special assessment
If the seller changes mine about selling house and tells buyer they can have their deposit back but the buyer refuse the deposit what is the buyer looking to do ? suit for performance
court house, airports, and schools immune properties for taxation
What does the county appraiser assign to the lot number ? parcel number
What is it called when a licensee gives back their license ? cancel
T/F Does the constitutional homestead Rights protect your from willing away home when married ? True
Expenses are always … debits
Amount received/paid in a transaction is called ? price
Failing business that is not expecting to continue for business ? liquidation value
A pawn shop in an area not zoned nonconforming use
Which is NOT a way to terminate an offer ? novation
What is the right to stop a foreclosure before it happens ? equity of redemption
Equally desirable property for less principal of substitution
What is broker working as a sales associate called ? broker asociate
transferring all rights in a contract is called an… assignment
What is it called when a lender refuses to loan due neighborhood demographics ? redlining
What is a township? 6 miles square, 36 sections
How much time do you have to notify when you are transferring out of state ? 60 days
Exclusive right of sale seller pays commission no matter what
Tenant pays rent plus landlord expenses net lease
T/F You can call a FSBO if you do not have a buyer False. must call only if you have a buyer
In litigation how is a escrow dispute handled ? bill of interpleader
What is not an operating expense ? annual debit service
Which protects against age discrimination ? Equal Credit Opportunity Act (ECOA)
The binding deposit on a closing statement is presented by ? credit to buyer
what happens to a licensee when their employing brokerage goes out of business ? automatically inactive
No firm name in advertisement blind ad
What section is 2 sections west of section 10 ? section 8
what are the the areas a realtor should be an expert in? “MarketingValuation & Market ConditionsProperty Transfer””MVP”””
Does one need to be a resident of the state or a citizen of the U.S. to get a FL real estate license? to get a FL real estate license, you don’t need to be a citizen
What must an applicant for a real estate license do if he has been convicted of a crime? must disclose all convictions
Employment an associate can only have one employer at a time
What’s the grace period for a Sales associate’s first renewal? Post Licensing no grace period, void and null
Individuals who are exempt from licensure Salaried Employees
How long can one stay involuntary inactive? 2 years
What happens to an associates license if a broker’s license is void, suspended, or revoked? their license automatically becomes inactive
Multiple Licenses issued only to active brokers if it is clearly shown that such additional licenses are necessary to the conduct of legitimate business
What is a Transaction broker a broker who provides limited representation to a buyer, seller, or both, in a real estate transaction
Presenting Offers must present all offers
A broker is entitled to compensation if they… bring a buyer who brings an offer the seller was looking for
Listing Contract broker’s employment contract that states the terms and conditions that the broker must meet to become eligible for compensation
Referral Fees:I as the sellers agent promise kickback commission. Is this allowed? yes, as long as this is disclosed to all interested parties
what if an attorney asks for a fee because they referred a client to you? you cannot give him a referral fee for sending you a client
Principal Brokerage office -registration is good for 2 years-can switch locations
branch brokerage office -registration is good for 2 years-cannot move locations if not the principal location… in order to move it would need a new registration for the new location and must pays fees associated with it
What are the requirements for a Principal Office? -at least one enclosed room in a building of stationary construction -must maintain documents for a minimum of 5 years
What are the requirements for an associate advertising with a website? -must have brokerage name and his/her last name
Advertising must have name of brokerage
When should one disclose that they are a licensed agent? prior to entering serious negotiations
Escrow Account pg.75* ESCROW ACCOUNT PG 75*
Earnest Money Deposit provide written verification within 10 days of request
A buyer drops off an escrow check on Monday. To avoid any trouble with FREC, the broker must deposit the check by close of business on which day? Thursday
Which of the following 4 uses/has an interpleader?MediationEscrow Disbursement OrderArbitrationLitigation Litigation
Escrow Disbursement Exemptions when a sales contract is subject to a contingency (financing/appraisal/etc) and it’s not met
When a sales associate has not received his compensation, what can they do? sue employing broker only
How many days does one have to notify the commission of a change of address or employer 60
Real Estate Brokerage Partnership -all must register w. DBPR
If all the partners in a Real Estate Brokerage Partnership want to be active in real estate sales, what must they do/be? all must be a licensed broker
Does a corporation for profit between a broker and associate dealing with investments need to be registered? No, a for profit corporation dealing w. investments does not need to be registered with any department
What are the 7 businesses that may register with the department to perform brokerage services? 6 of 7 have the letter P… the only one that doesn’t is LLC-sole Proprietorship-corporation for Profit-Not-for-Profit corporation-LLC-general Partnership-limited Partnership-limited liability Partnership
what do the following businesses that may not register to broker real estate have in common they don’t have the letter P in it or LLC
culpable negligence occurs if a broker operates in a reckless, careless, and excessively negligent manner. negligence for which one can be held legally accountable
misrepresentation omission or misstatement of facts
Appeal a final order request review with district court of APPEAL
Where does the money come from for the Recovery Fund? fees and fines
Steering or Channeling _ an individual, directly or indirectly, into or away from a neighborhood or location in a multi-unit building on the bases of race, color, religion, sex, or national origin
Redlining refusal by a lender to approve a mortgage loan based on a property being located in a certain geographical area, the age of the property, the income level of the residents, or the racial composition of the area
Blockbusting consists of inducing an owner to list or sell on the basis that the neighborhood is deteriorating or becoming transitional due to an influx of minority persons
When a landlord is holding a security deposit, which can’t he do? cannot hold money in an out of state banking institution
“Do Not Call List “”DNC””” -cannot call someone before 8am and after 9pm-can call someone from the DNC if you have a buyer interested in purchasing the property-CANNOT Solicit for sale by owner -can face a 40k fine
Which term refers to physical land, improvements, & intangible rights? Real Property
Riparian Rights rights of an owner whose property borders a flowing waterway (RIVER)
Fee Simple the owner has a complete bundle of rights
Estate in Severalty sole ownership of entire bundle of rights
Tenancy in Common -2 or more people own it-undivided interest-can be left in a will-may sell his interest without consent
Joint Tenancy -right of survivorship
Tenancy by the entireties husband and wife only
if a husband and wife get divorced, the property that was once tenancy by the entireties becomes? tenancy in common
Jef owns a property, Jeff deeds it to Maggy but only for the duration of Maggys’ life. When Maggy dies, the estate goes to Ray. What is this called? Remainder Estate
Tenancy at Will -month to month-must give other party 15 days notice
Property owned in one spouse’s name before the marriage or acquired by gift or inheritance during the marriage is considered? Separate Property
Tenancy for Years -specific time period-has a specific start and end date
A spouse who is left out of a will can claim? Elective share 30%
Constructive Notice achieved by recording documents in the public records
Voluntary Alienation deed and will
Involuntary Alienation escheat, eminent domain, adverse possession, descent and distribution
Habendum Clause specifies the legal right being conveyed/received
When transferring a title, whose signature is required? Grantor
All are examples of an eminent domain except? mall
eminent domain “-allows local, state or federal gov., railroads, public utilities, and public housing authorities to obtain ownership to private property-the “”taking”” must only be for public use”
Net Lease fixed rent + portion of operating cost like taxes, insurance, and maintenance
Which township is North of Section 1? 36
Check the intersection of guide meridians and correction lines from a 24-mile-square area
Lot and Block used to identify small parcels of property
Parcel Number assigned to a parcel of real property by a county property assessor to identify that property
1 acre is how many square feet? 43,560
one section is how many acres 640
what is required for a valid contract? Offer and Acceptance
Consideration Promise of future money
Statute of Frauds in writing to be enforceable
If a contract is entirely oral, action must be brought within 4 years
Inferred implied contract
All are ways to terminate an offer except?Novationacceptancewithdrawal rejection and counter Novation
Assignment of Contracts the sale, transfer, or subrogation of rights in a contract
Suit for Specific Performance if seller promises to sell and a few weeks later he doesn’t want to sell
As is Contract must DISCLOSE any material defects
What type of listing best protects the broker? exclusive right of sale
Option Contract right to buy during a specified period of time
When does a mortgager (borrower) become Legal Owner? day of closing
Promissory Note document specifies money owed, payment schedule, and interest
When a loan is paid off, a lender provides the mortgagor what? satisfaction of mortgage
Defeasance Clause protection to borrower
Equal Credit Opportunity Act requires lenders to judge every loan applicant on the basis of the applicant’s own credit rating and income
Housing Expense Ratio & Total Obligations Ratio 31% 43%
Equity of Redemption right to redeem interest by paying off lender what they are owed in full
If all lien holders have been paid from the proceeds of the foreclosure sale, any surplus funds remaining are paid to? Mortgagor (borrower)
FHA insures and has a max loan
what are 3 layers of the secondary market? -Federal National Mortgage Association (FNMA or Fannie Mae)-Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)-Government National Mortgage Association (GNMA or Ginnie Mae)
all of these are actions of the primary market except? -Federal National Mortgage Association (FNMA or Fannie Mae)-Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)-Government National Mortgage Association (GNMA or Ginnie Mae)
Real Estate Settlement Procedures Act (RESPA) law that requires lenders to provide a loan estimate of settlement costs
Abstract Continuation history of title provided by seller
Doc Stamp on Deed located outside of Miami Dade? .70/100
intangible tax applies to new mortgage
Liquidation Value value of failing business
Market Value most probable price
Principle of Substitution pay no more for a property than for an equally desirable alternative property
Principle of highest and best use most profitable use, produces the greatest net return on land
External Obsolescence loss of value caused by factors beyond the boundaries of the subject property
Functional Obsolescence adding a swimming pool that cost you 20k even though it only provides 10k in value
Principles of Value rate stays the same, value goes up -> interest goes up
Static Risk can be offset with insurance, such as fire, flood, robbery, etc
Immune Property properties that are owned by local, state, and federal gov
all apply to homestead except? property is immune
Veteran who became 20% disabled in the war 30k
Residential Zoning based on density