Florida Real Estate Exam (Latest 2023/ 2024 Update) Questions and Verified Answers| 100% Correct| Grade A
Florida Real Estate Exam (Latest 2023/ 2024
Update) Questions and Verified Answers|
100% Correct| Grade A
Q: Florida Real estate sales associates that desire to become brokers must wait
before taking the state exam.
Answer:
one year
Q: A tenant in an apartment complex may recieve up to for refferal of a new tenant for
the same complex.
Answer:
$50
Q: _ education must be completed during the initial sales associates’s license
period.
Answer:
Post Licensing
Q: Owner-employers of licensed real estate sales associates are allowed to pay them:
a. on a salary basis only
b. on a commision basis only
c. a commission , but not a bonus
d. a commission or salary
Answer:
d. a commission or salary
Q: To qualify for a real estate broker’s license, an applicant must have been employed for a
minimum of:
a. 6 months under one actively licensed broker
b. 12 months under one actively licensed broker
c. 12 months under 1 or more actively licensed brokers
d. 6 months under 1 or more actively lisenced broker
Answer:
c. 12 months under 1 or more actively licensed brokers
Q: How many hours of postlicense education are required to renew a brokers license?
Answer:
60 hours
Q: How long can an voluntary inactive licencee remain in that lisence status?
Answer:
indefinately
Q: The agreement the state of Florida has w/ some other states that recognises the similarity in
education and experience required of licencees is called:
a.reciprocity
b. mutual recognition
c. cooperative licensure
d. intrastate licensing
Answer:
b. mutual recognition
Q: A plumber has been appointed by a court to appraise a small business. The plumber…….
a. is in violation of F.S. 475
b. is allowed to charge a commission
c. may do so and be paid a fee
d. must first be licensed under F.S. 475, Part II
Answer:
c. may do so and be paid a fee
Q: A Georgia Auctioneer was asked by a local real estate broker to auction a small motel in
Jacksonville. The auction did not result in a sale. The Florida broker paid the auctioneer for outof-pocket expenses, but did not pay a commission. It would be correct to say that the:
a. Georgia Autioneer violated the license law
b. Florida Broker did not violate the license law
c. Florida broker is not subject to discipline by the Florida real estate commision
d. tranaction is perfectly within the license law
Answer:
a. Georgia Autioneer violated the license law
Q: The Commission’s ability to impose disciplinary actions against licensees is known as
_ __ power
Answer:
quasi – judicial
Q: The rule-making authority of the FREC is called _ __ power
Answer:
quasi – legislative
Q: Members of the Florida Real estate Commission may serve no more than _ consecutive
terms
Answer:
2
Q: A licensee that fails to renew when required to do so will have his or her license placed on
Answer:
involuntary Inactive
Q: Licensees that are members of the armed forces have all fees, dues and other requirements
waived during their military service and for _ months after returning to civilian life
Answer:
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Owners that buy income properties as investments and depend on professionals to manage them
Absentee Owners
a Value estimated based on resent sales of similar properties in the same neighborhood, not an appraisal
CMA -Comparative Market Analysis…
A contractor is employed by an owner of land to build on that land to the owner’s specifications
Custom Building
When a contractor builds on his own land with the hope of locating a purchaser after construction has been completed
Speculative building
A developer that acquires a large that aquires a large tract of land and builds a model center from which sales may be made
tract building
Property management has grown as a service of real estate primarily bc of an increase of __
Absentee Ownership
The category of construction that applies when a property owner employs a contractor to build on his or her lot is called________ _
Custom Building
A Real Estate appraiser’s fee for professional service is based on:
a. a percentage of the property’s gross income
b. a percentage of the fair market value
c. the time and difficulty of the appraisal
d. a percentage of property’s sales
C. the time and difficulty of the appraisal
A developer contracts to build a home on a buyer’s lot to the buyer’s specifications. This is an example of which type of building:
a. tract
b. custom
c. speculative
d. subdivision
b. custom
A Florida Real Estate lisence is required when anyone performs a service is specified under
F.S. 475 when all the following conditions are simultaneously present, unless that individual is otherwise exempt under the law:
- Preforming a service of real estate
- In the state of Florida
- For another
- For compensation
_ has been defined to include anything or any service of Value paid, recieved or expected to be paid or recieved.
Compensation
The postlicense educational course for sales associate consists of __ hours
45
The continuing education requirement consists of __ hours
14
Florida Real estate sales associates that desire to become brokers must wait _ before taking the state exam.
one year
A tenant in an apartment complex may recieve up to __ for refferal of a new tenant for the same complex.
$50
education must be completed during the initial sales associates’s license period.
Post Licensing
Owner-employers of licensed real estate sales associates are allowed to pay them:
a. on a salary basis only
b. on a commision basis only
c. a commission , but not a bonus
d. a commission or salary
d. a commission or salary
To qualify for a real estate broker’s license, an applicant must have been employed for a minimum of:
a. 6 months under one actively licensed broker
b. 12 months under one actively licensed broker
c. 12 months under 1 or more actively licensed brokers
d. 6 months under 1 or more actively lisenced broker
c. 12 months under 1 or more actively licensed brokers
How many hours of postlicense education are required to renew a brokers license?
60 hours
How long can an voluntary inactive licencee remain in that lisence status?
indefinately
The agreement the state of Florida has w/ some other states that recognises the similarity in education and experience required of licencees is called:
a.reciprocity
b. mutual recognition
c. cooperative licensure
d. intrastate licensing
b. mutual recognition
A plumber has been appointed by a court to appraise a small business. The plumber…….
a. is in violation of F.S. 475
b. is allowed to charge a commission
c. may do so and be paid a fee
d. must first be licensed under F.S. 475, Part II
c. may do so and be paid a fee
A Georgia Auctioneer was asked by a local real estate broker to auction a small motel in Jacksonville. The auction did not result in a sale. The Florida broker paid the auctioneer for out-of-pocket expenses, but did not pay a commission. It would be correct to say that the:
a. Georgia Autioneer violated the license law
b. Florida Broker did not violate the license law
c. Florida broker is not subject to discipline by the Florida real estate commision
d. tranaction is perfectly within the license law
a. Georgia Autioneer violated the license law
The Commission’s ability to impose disciplinary actions against licensees is known as _ __ power
quasi – judicial
The rule-making authority of the FREC is called _ __ power
quasi – legislative
Members of the Florida Real estate Commission may serve no more than _ consecutive terms
2
A licensee that fails to renew when required to do so will have his or her license placed on _
involuntary Inactive
Licensees that are members of the armed forces have all fees, dues and other requirements waived during their military service and for _ months after returning to civilian life
6
The division of Real Estate is an administrative part of the department of:
a. State
b. Commerce
c. Banking
d. Business and Professional Regulation
d. Business and Professional Regulation
which department issues real estate licenses?
a. state
b. Business and Professional Regulation
c. Revenue
d. Real Estate
b. Business and Professional Regulation
Which information supplied by an applicant is Public Record?
a. financial Information
b. test scores
c. name and address
d. medical information
c. name and address
The Florida Real Estate Commission held a meeting for the purpose of passing a new rule. This is an exercise of which Commission power?
a. executive
b. quasi-legislative
c. quasi-judicial
d. ministerial
b. quasi-legislative
When is a request for the renewal of a license effective?
a. when recieved by the department
b. the day following the experation
c. on the date the application is mailed
d. on the date indicated on the license
a. when recieved by the department
A real estate license expires
a. on the date shown on the license
b. every 2 years
c. on the effective date
d. at the end of 1 year
a. on the date shown on the license
A sales associate failed to complete required postlicense education prior to expiration of the license period. What is the status of license?
a. active
b. voluntary inactive
c. involuntary inactive
d. null and void
d. null and void
one or more sales associates, each titled “designated sale associate’ may be designated to act as agents for the seller, and one or more may be designated to act as agents of the _
buyer
What federal law that makes illegal the discussion or establishment of a uniform price or fee for services in any industry? No fixed fees
Sherman-Clayton Anti-trust Act
Your allowed Compensation from your Broker True or False
True
You can not sue a buyer or seller only your broker? True or False
True
A sales associate is a _ of the brokers’s principal.
SubAgent
Before showing a property, allowing a buyer to sign an offer to buy or seller to sign a leasing agreement, a licensee must provide the party with a written notice.
Broker Relationship Form
A member of the public may select from one of 3 options when working with a broker, which are?
- Transaction broker
- Single Agency
- No Brokerage relationship
The only brokerage that includes fiduciary duties is the _ _.
Single Agency
A licensee assigned by a broker to act as a single agent of a buyer or seller in a nonresidential transaction is titled a _.
Designated Sales Associate
Brokers in a nonresidential sale are not required to use .
Written disclosure
Which relationship is not adversarial?
a. arms length
b. buyer beware
c. caveat emptor
d. fiduciary
d. fiduciary
The signature or initials of a party is required by the Brokerage Relationship Disclosure Act on which Form?
a. Single Agency Disclosure
b. Transaction Broker Disclosure
c. Consent to Transition to Transaction Broker
d. Important Information Disclosure
c. Consent to Transition to Transaction Broker
A Broker
a. can refuse offers on behalf of the principal
b. can buy the listed property w/o consent of the principal
c. must follow all legal instructions of the principal or withdrawl
d. must ignore the instructions of a principal when the instructions are not in the best interests of the principal.
c. must follow all legal instructions of the principal or withdrawl
Sales associates can be stockholders in a brokerage corporation but may not be or ?
officers
or
directors
A real estate brokerage corporation must have at least _ active broker serving as an _.
One
Officer
Anyone licensed or not can be a in a real estate brokerage limited partnership?
limited partner
Two or more brokers that share office space but do not maintain their separate status as independant brokers could be charged as being
Obstensable Partners
The party who holds title to corporation sole property is called the __
Sole Title Holder
Sales associate and broker associates must report any change of employer or address change to the DBPR within _ days on a form prescribed for such use.
10
For a broker to legally be paid a kickback or rebate, he or she must have performed a , held an appropriate , and all parties must _ of the payment
Service,
License,
Approve
A licensee should advise a customer to obtain an_______ or an _ from an attorney whenever a question of title arises.
Abstract,
Attorney’s title opinion
An Ostensible partnership
a. is required to file documents w/ the Secretary of State
b. is not a true partnership
c. cannot be created by real estate brokers
d. will not be treated as though the partisipants were partners
b. is not a true partnership
A location would be required to register as a brokerage branch office if
a. tables and chairs are provided for sales associates and customers
b. the location is used as a shelter
c. literature is handed out containing the broker’s office address
d. sales associates are permenently assigned to the location
d. sales associates are permenently assigned to the location
Which statement best describes the sign requied for a brokerage office?
a. only 1 sign per firm is required regardless of the number of offices
b. each sales associate associated w/ the firm must have a separate sign
c. Every active broker must maintain a sign at each brokerage office or branch office
d.office signs are permitted but not required by law
c. Every active broker must maintain a sign at each brokerage office or branch office
If a commission dispute arises prior to closing, the broker
a. may retain the entire amount of escrowed funds until the dispute is resolved
b. must withdrawl the amount of the commission from the escrow account
c. may retain the exact amount of the disputed commission in the escrow account until the dispute is settled
d. must deliver the entire amount of the escrowed funds at closing
c. may retain the exact amount of the disputed commission in the escrow account until the dispute is settled
The maximum amount that can be paid from the Real Estate Recovery Fund based on the actions of a licensee is _
$150,000
The criminal penalty for violation of F.S. 475 is typically a fine of up to _ and/or imprisionment for no more than ___ days
$500,
60
a licensee that has had a payment made from the real estate recovery fund as a result of his or her actions will have his licensee until the money is plus __
Suspended,
Repaid,
Interest
The range of penalties that may be imposed on a licensee by the commission for violation of law or rules includes
Denial, reprimand, fine probation, suspension and recovation……not imprisionment
If a broker’s actions pose an immediate serious danger to the safety and welfare of the public, what action might the Secretary of the department of Business and Professional Regulation take?
a. suspended the license of the licensee for 10 years
b. issue a summary suspension
c. issue a cease and desist order
d. place the licensee on probation
b. issue a summary suspension
What action may be taken if either the Florida Real Estate Commission or the licensee disagrees with a recommended order?
a.seek adjudication
b. submit the matter to mediation
c. file extentions (10 days to file)
d. request novations
c. file extentions (10 days to file)
Cival Rights Act of 1866
prohibits discrimination on the basis of race
Federal Fair Housing Act
is the expanded on the 1866 Act and makes discrimination in the showing , negotiation, sale, rental or financing of a dwelling prohibited when based on color, handicapp, family status
Redlining
don’t lend in certain areas because of minorities
the Cilvil rights Act prohibits discrimination on the basis of __
Race
An owner that does not use the service of a broker and does not discriminate in advertising is _ from the Civil Rights Act of 1968
Exempt
Lenders that refuse to make loans in certain geographic areas based on social or economics considerations are practicing __.
redlining
When all rights under a lease have been transfered to another, the process is called an _.
assignment
Federal law governing telephone solicitations prohibits calls to residences after __
9:00 pm
To be enforcable, a lease longer than 1 year
a. can be oral if witnessed by 2 people
b. does not have to conform to the Statute of Frauds
c. must be in writing, signed by the landlord (no witness is required in Florida)
d. Does not have to be witnessed
c. must be in writing, signed by the landlord (no witness is required in Florida)
A 5-year lease of a 10,000 sq ft warehouse prohibits assignment. After 2 yrs the tenant is unable to continue w/ the full rent payments and arranges w/ another tenant to take over one-half of the space and one-half of the rent for the remaining term. This arrangement is
a. a violation of the terms of the lease
b. a sublease
c. in violation of Statute 83
d. illegal
b. a sublease
Discrimination based on religion is prohibited by the
a. Civil Rights Act of 1866
b. Civil Rights Act of 1968
c. Civil Rights Act of 1964
d. Fair Housing Amendments of 1988
b. Civil Rights Act of 1968
3 Components of Real Estate
- Air
- Surface
- Subsurface
2 ways to Own
- fee simple (absolute)
- Life estate (owned in lifetime)
Life estate
only for the balance of a life time
Tenancy at Sufferance
They’re there without permission
__ rights allow a property owner whose property borders on a river or steam the use of the water
Riparian
The right to occupy specific space granted by a cooperative association is known as a
proprietary lease
Ownership of _ _ distinguishes ownership in a cooperative association
Shares
Or
Stocks
Property that is exempt from execution of foreclosure to satisfy a personal debt of the head of the household can be up to one-half acre within a city or up to __ acres outside a city.
160
What rights does a property owner have to the use of water flowing over or through his or her land?
a. riparian
b. littoral
c. flowage
d. aquifer
a. riparian
A potential purchaser of a timeshare can cancel the contract without penalty within how many days?
10
which statement best describes a tenancy at sufferance?
a. The tenant suffers from the landlord’s failure to maintain the property
b. the landlord suffers from the tenant’s failure to pay rent
c. The lease instrument is valid
d. The tenant remained in possession after expiration of a lease
d. The tenant remained in possession after expiration of a lease
The full bundle of the rights in real property includes
a. destruction, use and extinction
b. destruction, use and enjoyment
c. use, expatriation and enjoyment
d. disposition, use exclusion
d. disposition, use exclusion
Tests used by courts to determine whether an item is real or personal property include
intent,
relationship of the parties,
method of annexation,
adaption
The four unities required to create a joint tenancy are
a. interest, survivorship, possesion and time
b. possession, deed, title and time
c. possession, interest, time and title
d. person, use, interest and purpose
c. possession, interest, time and title
Title means Ownership…..
True or False
True
A fence built over your property is
encroachment
Title to real property passes to the grantee when the deed is and
Deliverd,
Accepted
Zoning is an example of which government limitation over private property rights?
Police Power
The Four methods used to legally describe property?
- monuments method
- metes & bouds methods
- retangular method
- plat method
The government survey method begins in Tallahassee by drawing a north/south line is called the _ _
Tallahassee Principal Meridian
In a towhship subdivided into section 36 is always __ of 1
North
Properties located in subdivided areas are usually described using the _ Method
Plat (Lot & Block system)
Section 13 is _ of Section 12
South
The main north/south line used in the government survey method is the principal
a. latitude
b. longitude
c. baseline
d. meridian
d. meridian
A Township contains how many sections?
36
Oral contracts are also known as _ contracts?
Parol Contracts
An _ contract can be oral or written.
Express
The seal of a Notary public, called an __, should not be confused w/ the word “seal” as used in connection with contract law.
acknowledgement
The _ is the placement of the word seal or the letters “L.S.”, locus sigilli, following the signatures of the parties.
seal
A _ __ is defined as a contract that is wholly written and under seal (in writing and signed.
formal contract
_ of provides time limits within which parties are allowed to bring legal action to enforse their rights under a contract.
Statue of Limitations
Parol Contracts, if a contract is entirely oral , action must be brought within _ years.
4
Written Contracts, a contract wholly in writting may be enforcedif action is brought within _ yrs
5
The broker who successfully performs by locating a “willing , ready and able” buyer is said to be the “_ __” of the sale and is the only broker entitled to a commission.
Procuring Cause
the _ __ of a sale is what entitles a broker to commission.
Procuring Cause
Which statute requires a purchase and sale contract to be in writing to be enforceable?
a. Chapter 475
b. Chapter 120
c. Statute of Limitations
d. Statute of Frauds
d. Statute of Frauds
__ clause allows the lender to Foreclose on you bc you haven’t been making your payments.
Acceleration
__ clause, A.K.A. due-on-sale clause, prevents a borower from transfering any interest in the morgaged property w/o permission of the lender.
Alienation
_ clause is used in mortgages on income-producing real estate.
Receivership
The process of qualifying the applicant and the property is called __, analysing risk.
mortgage underwriting
An applicant is evaluated to dertermine if they can repay a loan by using 3 Criteria
- Credit History
- Income
- Other Assets ( real estate, cars, stocks, etc.)
The buyer will assume personal responsible responsibility for repayment of the balance due on the promissory note and acknowledge existance of the mortgage is
Assumption of the mortgage
Borrowers are allowed a recission period (days to back out) which is __ days, on the refinance (home Equity loan) of a principal residence.
3
The amount of mortgage insurance premium required on an insured FHA mortgage loan includes payment of both
Up-front mortgage insurance premium (UFMIP)
and
Annual Mortgage Insurane Premium (AMIP)
$104,250 is the max amount of a verteran’s entitlement of a VA guaranteed loan, and __ days are required to be a Veteran.
181 peacetime
90 military conflict
The actions of the Board of Governors, called _ ___, regulate the cost availability of credit in the US.
monetary policy
True or false Morgage brokers “make” loans?
False…..
They arrange loans by taking mortgage applications and searching for lowest inerest rates and easiest borrower qualifications
Life insurance companies are regulated by?
The state in which they operate
A loan applicant’s past credit history indicates his _ to honor dept obligations, and his income is a measure of the to repay the loan.
Willingness,
Ability
If the Federal Reserve Board descides to purchase government securitiesin the open market, the effect will be to:
a. decrease the $ supply and cause interest rates to increase
b. increase the $ supply and cause interest rates to decrease
c. limit the amount of $ member banks may use for loan purposes, causing interest rates to increase
d. create a “tight $” market
b. increase the $ supply and cause interest rates to decrease
Which group of financial institutions traditionally preferred to make Short-term loans for construction?
Commercial Banks
Disintermediation occurs when
a. deposits exceed the demand for loans
b. depositors withdrawl their savings from depository institutions
c. the IRS taxes earnings of investments
d. the Federal reserve Board reduces the discount rate
b. depositors withdrawl their savings from depository institutions
A blanket Morgage that allows for the release of a single parcel upon payment of a specified sum contains which clause?
a. defeasance
b. acceleration
c. satisfaction
d. release
d. release
The Federal Housing Administration
a. originates loans
b. insures loans
c. guarantees loans
d. certifies loans
b. insures loans
Construction loans are paid out in
a. full at the begining of construction
b. equal installments during the construction process
c. full upon completion of constructions
d. draws after specific stages of construction are complete
d. draws after specific stages of construction are complete
If a mortgage loan payment consists of interest only, the final payment the final payment which includes the full amount borrowed is called a?
Ballon Payment
The _ normally pays for the documentary stamp tax on the deed.
Seller
An earnest money deposit held in escrow is reflected on the closing statement as a?
a. credit to the buyer
b. debit to the buyer
c. credit to both the buyer and seller
d. credit to the seller
a. credit to the buyer
In the absense of any agreement between the parties, the state documentary stamp tax on the deed is paid by the?
Seller
Which statement about the brokers portion of the closing statement is true?
a. all double-entry items must appear there
b. total reciepts minus the binder deposit equals the grand total
c. Reciepts and disbursements must equal
d. total expenses less the brokerage fee equals the grand total
c. Reciepts and disbursements must equal
_ _______applies when a higher-priced property is constructed in an area of lower-priced properties. the higher priced property will REGRESS in value toward the level of less expensive properties in the area.
Principle of regression
This approach is usually the most applicable method for appraising residential properties
Comparable sales approach
__ expenses do not change w/ occupancy levels, examples property taxes and hazard insurance.
Fixed