Florida Real Estate Exam Prep (Latest 2023/ 2024 Update) Questions and Verified Answers| 100% Correct| Grade A
Florida Real Estate Exam Prep (Latest 2023/
2024 Update) Questions and Verified
Answers| 100% Correct| Grade A
Q: Broker hiding value of property
Answer:
Could be charged with concealment
Q: If office is closed, reopened, in same license period
Answer:
request a reissue- no fee
Q: real estate taxes are
Answer:
Ad Valorem tax
Q: The four factors of production
Answer:
land, labor, capital, and entrepreneurial ability
Q: Maximum number of years on FREC
Answer:
no limit
Q: Land, improvements, interest and rights
Answer:
Real Property
Q: Gross lease
Answer:
Tenant pays a fixed rent and the landlord (Lesser) pays all property expenses
Q: To cure a defect or cloud on the title to a piece of property, the parties should:
Answer:
quitclam deed
Q: Sales associate working for a broker
Answer:
general agency relationship
Q: Brokers office
Answer:
Building of stationary construction
Q: More than 1 active broker, 1 license revoked
Answer:
no affect on other licenses
Q: Corporation registered to broker real estate
Answer:
at least 1 officer licensed as an active broker
Q: Equal DUE rights, same or different deeds
Answer:
Tenancy in common
Q: rental property is temporarily diminished
Answer:
see temporary reduction of rent from court
Q: property to property with same utility
Answer:
Principle of Substitution
Q: Broker refuses to pay a commission due
Answer:
Charged with Failure to Account
Q: $50,000
Answer:
Single judgement from Real Estate Recovery Fund
Q: Post-dated check
Answer:
Legal- give to broker immediately
Q: Business known as a company
Answer:
is a corporation for profit
Q: Broker represents as escrow agent
Answer:
Buyer and seller
Q: Expert knowledge by RE licensees
Answer:
Valuation, Marketing, Property Transfer
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Temporary Incapacitation of license
mandatory suspension
out of state broker receives a commission
cannot participate in the transaction
city needs a new school, acquire land by
eminent domain
All legal rights transferred (100%)
assignment
Dual Agency
Representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in many states (Violation of Florida Statute 475
Combining two or more parcels of land
assemblage
Real Estate Recovery fund is funded by
fines and fees paid by licensees
Riparian Rights
An owner’s rights in land that borders on or includes a stream, river, or lake. These rights include access to and use of the water.
Broker hiding value of property
Could be charged with concealment
If office is closed, reopened, in same license period
request a reissue- no fee
real estate taxes are
Ad Valorem tax
The four factors of production
land, labor, capital, and entrepreneurial ability
Maximum number of years on FREC
no limit
Land, improvements, interest and rights
Real Property
Gross lease
Tenant pays a fixed rent and the landlord (Lesser) pays all property expenses
To cure a defect or cloud on the title to a piece of property, the parties should:
quitclam deed
Sales associate working for a broker
general agency relationship
Brokers office
Building of stationary construction
More than 1 active broker, 1 license revoked
no affect on other licenses
Corporation registered to broker real estate
at least 1 officer licensed as an active broker
Equal DUE rights, same or different deeds
Tenancy in common
rental property is temporarily diminished
see temporary reduction of rent from court
property to property with same utility
Principle of Substitution
Broker refuses to pay a commission due
Charged with Failure to Account
$50,000
Single judgement from Real Estate Recovery Fund
Post-dated check
Legal- give to broker immediately
Business known as a company
is a corporation for profit
Broker represents as escrow agent
Buyer and seller
Expert knowledge by RE licensees
Valuation, Marketing, Property Transfer
Financial protection due to defective title
Title insurance
1 bath in a 4 bed home
functional obsolescence
Least effective method of the FED Reserve
Changing the discount rate
Seeking testimony from a witness
Administrative law judge will subpoena
Tenant in property with temporary agreement
Tenancy at will
Cannot comply with legal instructions
Withdraw from the transaction
Developer conveys ownership-streets etc.
Dedication
Deed Promise- no hostile claims made
Warrant of quiet enjoyment
In closing statement title insurance
not prorated
No brokerage relationship
Customer refused representation
sales associate leaves broker and joins another
must obtain a reissue of license with new broker
Chairperson of FREC powers
Executive
Issued by owner-employer multiple location
Group license
Lien Theory State
Title held by mortgagor (borrower)
Most important factor for investment
economic soundness
expenses of buyer/seller to 3rd party
On closing statement, entered a debits
Joint Tenancy
Possession, interest, time & title (PITT)
Inducing to list/sell – minorities moving in
Blockbusting
Policy and procedures manual
Helpful but not required by law
Brokers disagree on amount of commission
Retain exact amount is the escrow account
Cannot register to broker real estate
Corporation Sole, Co-op Assoc, business trust
To obtain a listing
must have an active license
Person with power of attorney
Attorney- in- fact
Licensed sales associate
paid only by his/her broker
Landlord posts a surety bond
May commingle security deposits
Investigator for DBPR sees minor violation
Usually issues a notice of noncompliance
Get listings from a particular neighborhood
Farming
Licensee advertised property in own name
Must own the actual property
Evidence of merchantable title
the seller is usually responsible
Sales Associate did not complete 45 hours post license
license status is void
Agreement to rent for a specified period of time
Tenancy for years
Ownership one unit in multi-unit complex
Condominium
No license, act as a broker, get commission
DBPR can subpoena, cease and desist, fine
Losing title by failing to recoprd deed
Estoppel
Real estate securities
DPP containing a flow-through of tax
PUD zoning
Cluster zoning, Zero lot lines
Multiple brokers establishing comm rates
violation of Sherman-Clayton Anti-Trust act
Functional Obsolescence
Over improved property
share office space without separate status
Ostensible partnership
broker doubt about entitlement of escrow
notify FREC in writing
type of business dollars from in community
service business
complaint filed- probable cause found
formal complaint filed
Bill of Interpleader
Inform the court-no claim rights to a deposit
Owner- employers
Registered, but not licensed
Operate in excessively reckless manner
Culpable negligence
Church constructed in residential area
may be a special exception to zoning ordinance
Real Estate Market
local in nature
A valid real estate sale contract
offer and acceptance is communicated
No license- working in on-site leasing office
paid on a salary basis only
right to buy, fixed price, specified time
Option Contract
To direct a sales force or advertise
must have an active brokers license
to receive a commission
Must be licensed- Marry commission/license
Unlicensed person acting as a broker
May get $5000 fine & imprisonment to 5 years
Generates greatest return on land
Highest and best legal use
Declaratory decree
inform the court- entitled to deposit
Earnest money depositories
Title company, banks, S&L, credit unions in Fl
Seller financing on investment property
no down payment required
Payment made from Real Estate Recovery Fund
License suspended till reimbursed and interest
Guilty of violation of rules of FREC
reprimand, suspension, revocation
Murder-suicide occurred in house
not a material fact for disclosure
Brokerage partnership- all provide Real estate service
All partners licensed as a active broker
Real Estate Brokerage Sign
name of broker plus “licensed real estate broker”
License expired on March 31st- no action
Status of April 1st – involuntary inactive
FI and federal telephone solicitations
not permitted prior to 8 am/after 9 pm
Restricted amount of yearly tax increase
Save our Homes Act
A fence over a property line of another
Encroachment
Indicator for stability in residential area
vacancy rate
contractor builds to owner’s specifications
custom building
FREC adopts rules and regulations
Quasi-legislative power
Statute of Frauds
must be in writing to be enforceable
appraiser’s term “price”
the amount received in a transaction
Prima facie evidence in court
Possession of current & valid license
Law informing of all settlement cost
Real Estate Settlement Procedures Act
Amount of commission a broker charges
agreement between broker and employer
FHA mortgage loans
may be prepaid without penalty
line described as “north 90 degrees East”
runs east and west
changes to property for ADA (disabilities act)
must be economically feasible
license involuntary inactive status
2 years
Township directly west of T28S, R19E
T28S, R18E
Interest 10%, 6 discount points
effective rate 10.75%
multiple offers on a property
present all offers, disclose all details
Veterans Administrative loan
honorable discharge, owner occupied, certificate
Special assessment liens
add value to the property
Document received after final mortgage payment
Satisfaction of mortgage
Statute for time periods to file suit
Statute of limitations
Property Management growth
due to absentee ownership
Investigator for the DBPR
files a report to the DBPR, only facts
list house w/ 1 broker and has right to sell
exclusive listing
Zoning based on density
residential
to appeal final order of FREC
File petition of review with District Court of Appeal
interest rate on FHA loan
negotiated
option contract w/no definitie valuable consider
void
real property allodial system
private citizens right to own land
intangible tax on new mortgage
buyers responsibility
special agent
perform a single act for the principal
insufficient money for pay off after foreclosure
deficiency judgement
appraisal approach for failing business
liquidation value
default in mortgage, prior to foreclosure
redeem with equity of redemption
township contains
6 miles square & contains 36 square miles
damages not specified in a contract
unliquidated
after a period of suspension
licensee must have the licesnse reissued
an estate by the entireties after divorce
tenancy in common results
property taxes on a closing statement
debits to seller and credit to buyers
A broker employed by another broker.
Broker associate
appraiser using comparable sales approach
considers market conditions
excessive money after foreclosure belongs
in lien theory is paid to the mortgagor
primary reference point metes and bounds
initial reference point
broker is broker of 2 or more corporations
request multiple license
construction mortgage loans are dispersed
in draws
amount of loan, term, interest and payments
specified in the promissory note
3rd party holds title as security
Deed of Trust
sales associate dealing with brokers principle
same fiduciary relationship as broker
limited broker partnership
1 plus general partner and 1 or more limited partners
Section 3 sections west of section 11
8
Cost-depreciation approach
Principle of substitution
appraisal for a profitable business
Going Concern value
FHA
insures loans
terms and conditions inferred in a contract
Implied contract
not included the income capitalization approach
mortgage payments (annual debt service)
with an itemized Fed tax return-deductions
mortgage interest and real property taxes
1st step- city establish property tax rate
Estimate a budget
only first degree misdemeanor
violation of rental list and information
2 or more businesses combine their efforts
Joint venture
hypothecation
the pledge of property as security for a loan
real estate brokerage corporation revokes by FREC
All licensees license-involuntary inactive
Sales Associate wants to become a broker
License under broker/brokers for 2 years
Limited partnership brokerage requires
1 or more general partner and 1 or more limited partner
DBPR denied license- applicants rights
reason in writing and right to a formal hearing
Consumer credit cost disclosure act
inform the true cost of credit
FDIC
Federal agency regulating savings and loans
basic accounting formula
Assets= liabilities + owners equity
legal rights to enter upon another’s property
easement
new listing contracts
principle must get a copy within 24 hours
Acceleration Clause (in a mortgage)
balance due and payable based on default
type of market real estate is bought/sold
Free
instructed not to show property to minorities
Violation of 1968 civil rights act if followed
Real estate licensee performs an appraisal
When NOT used in federally related transaction
FHA Section 234(c) Condominiums
loans for a single unit condominium
designated “V” flood hazard
flood insurance is mandatory
The purpose of the Florida Statute 475
protect the public
how many members of FREC
7
step 2 for protesting appraised value
protest to the value adjustment board
broker makes available for inspection of DBPR
escrow account records
least accurate method of describing property
monument method
mortgage brokers do what to loans
arrange them
immediate and serious danger to the public
DBPR issues a summary suspension
type of risk- income lower than expected
operating business risk
Constitutional Homestead Rights
within city 1/2 acre, not within 160 acres
planning commission’s primary purpose
implement the comprehensive plan
demand for real estate is related to
availability of credit
rights of rescission condo
new 15 days, resale 3 business days
lease is less than 100% during your lease time
sublease
intangible asset that has market value
goodwill
right of rescission time-share
10 days
only legally necessary clause in deed
premises clause
warrant of seisin
claim of ownership by the grantor
superior liens
real estate taxes, special assessment, and federal lien
only lien that can take priority over other
Junior lien- the mechanic’s lien
laissez-faire concept of government plan
competition and profit should prevail
cost recovery is permissible tax deduction
commercial and investment property
clause in deed that conveys legal rights
habendum clause
operating expense ratio
oe/egi = oer (operating expense/effective gross income= Operating Expense Ration
Calculate acreage in a parcel
key info is bottom number multiplied and then divide into 640 (acres)
Legal rights transferred to another person
assignment
margin
will remain constant
doc stamp on deed (math)
divide by 100= tax units (round up) x $.70
Mortgage Amortization
principle balance x rate divided by 12 =
in a township
numbering from 1-36 starting at top right and going left weaving back and forth
1 acre
43,560 square feet
1 section contains
640 acres
1 mile is
5,280 feet long
Area of a triangle
(Base x Height) / 2
construction
court’s interpretation of a contract
Gross rent multiplier
Sales price divided by the monthly gross rent
Residential transaction
4 units or less
Agricultural transaction
10 acres or more
A transactions broker
provides limited representation to both parties
Single agency relationship
only one that establishes fiduciary relationship
The relationship that is not adversarial
fiduciary
Broker must maintain records
not less than 5 years
escrow funds
both the buyer and seller
freehold
ownership
Appurtance
“Runs with the land”
Adverse Possession
A person takes possession & use of a property belonging to another. Possession must be open, notorious, hostile & uninterrupted for a certain period of time.
Not a government restriction on property
Mortgage
Voluntary lien
caveat emptor (‘let the buyer beware’)
Means that the buyer or his representative should check the records for any problems and physically examine the property to make sure everything is okay.
Fee Simple Estate (Absolute)
Freehold state “bundle of rights”
Escheat
The state takes property upon an owners death if there is no will & no heirs exist.
light fixtures
Considered real property
garage door opener
Considered a fixture- constructive annexation
Frec Florida Real Estate Commission
Power to grant, deny, suspend and revoke registrations
Attachment
The seizing of property by court order as security for debt or judgment
Defeasance Clause
When the loan is paid the mortgage is void
Regulation Z (Truth in Lending)
Requires lenders to disclose to buyers the true cost of obtaining credit so that the borrower can compare the costs of various lenders.
Deficiency Judgment
Mortgages debt that remains due by the borrower after the share or sale of property
Purchase Money Mortgage
Buyer receives the deed to the property on the day of closing
Alienation Clause
Due on sale – mortgage become due when property is transferred
Title Insurance Company
Negotiated by both buyer and seller
Sale price is
Market price
Option Agreement
unilateral contract