2025 FL REAL ESTATE EXAM CRAM Flashcards

2025 FL REAL ESTATE EXAM CRAM Flashcards Acre43,560 sq ft (to remember think 4 people driving 35-mph in a 60 mph zone) Taxable value for homesteads with assessed value up to

$50,000

Assessed value - base $25,000 homestead exemption = taxable value Which of the following clauses or covenants in a deed states that the grantor owns the property and has the right to convey it?a. Covenant of seisinb. Covenant against encumbrancesc. Habendum claused.Covenant of further assurances

• Covenant of seisin

Net operating income (NOI)EGI - operating expenses Which of the following is a list of the four necessary elements for a contract to be valid?Legal subject, offer and acceptance, competent parties, consideration FREC Executive PowersAuthority to regulate and enforce license law.What would a sales associate be charged with if he took duplicates of listings when he left a brokerage firm and started to work for another company?Breach of trust Age-Life MethodEffective age / economic life x reproduction cost new = est.total accrued depreciationReproduction cost new - total depreciation = depreciated value Potential gross income (PGI)Total annual income property would produce if fully rented, given no vacancy or collection losses incurred Depreciable Basis*IRS currently established useful asset life as 27.5 years for residential rental property and 39 years for nonresidential income-producing propertyDepreciable basis = total cost to acquire property - value of landDepreciable basis / useful life (27.5 of 39 years) = annual IRS depreciation deduction REALTOR®a real estate licensee who is a member of the National Association of Realtors Title insurancea contract that protects policyholder from losses arising from defects in the title Chapter 475, F.S.Florida statute governing escrow dispute resolution processes.Which of the following is a penalty for a first-time minor violation that is not accompanied by a fine?a. A citationb. A first-degree misdemeanorc. A notice of non-complianced. A formal violation

• A notice of non-compliance

Community Association Manager (CAM)applicable to mobile home parks, planned unit developments, homeowners associations, cooperatives, timeshares, condominiums, and other residential units; managers must hold a license when a community

association consists of more than 10 units or has an annual budget in access of $100,000 Abstract titlea search of recorded documents concerning a parcel of real property

TownshipFormed by 6-mi. square of grid pattern created by intersection of two range lines and two township linesContains 36 sq.mi. (6 mi. X 6 mi. = 36 sq. mi.) Broker Associateholds a broker's license, but works under/is employed by a broker Escrow disbursement order (EDO)Adetermination of who is entitled to disputed funds- FREC will not issue EDO if funds are held in attorney's escrow account or by title company- If broker requests an EDO and escrow dispute is either settled or goes to court before EDO is issued, broker must notify FREC within 10 business days that dispute has been settled or litigation commenced What type of rights are associated with water flowing through your property?Riparian rights Good-Faith DoubtHonest intent to transact without defrauding others.Broker must notify FREC, in writing, within 15 business day after having doubt as to which party should receive escrowed property and institute settlement procedures within 30 business days after such doubt Formula = total state taxes due as result of transfer or property/mortgage Purchase price / $100 = taxable units (round up)# of taxable units x $.70 = cost of doc stamps on deedAssumed mortgage amount / $100 = taxable units (round up)# of taxable units x $.35 = cost of doc stamps on assumed mortgage notePromissory note / $100 = taxable units (round up)# of taxable units x $.35 = cost of doc stamps on new mortgage noteNew loan amount x $.002 = cost of intangible taxCost of doc stamps on deed + cost of doc stamps on assumed mortgage note + cost of doc stamps on new mortgage note + cost of intangible tax = total taxes owed Total Realized GainNet sale price (selling price - selling expenses) - depreciated basis of property Gross Income Multiplier (GIM)used w/ small income-producing propertiesGIM = sale price / gross annual incomeGross annual income x market GIM = value Which of the following methods of surveying property is used in a subdivision where plat maps have been recorded?Lot and block In the event that a broker chooses not to have an escrow account, the funds are typically held at a title company or in an attorney's escrow account. If the funds are held at a title company or in an attorney's escrow account, what must be included on the purchase and sale contract regarding the title company or attorney?Name, address, and phone number of the title company or attorney Concerning the Statute of Frauds which does not apply?The Statute of Frauds states that all contracts must be in writing to be enforceable

Discount pointsadded loan fee often charged by lenders to increase yield on lower-than-market-interest loan and to make loan more competitive with higher-interest loans Conflicting DemandsInconsistent requests from buyer and seller regarding escrow.If occurs broker must notify FREC, by writing, within 15 business days of receiving conflicting demands unless specifically exempted General warranty deedprovides greatest protection to buyer b/c contains all covenants and warranties available to give to grantee every possible future guarantee to title protection*Most commonly used deed in FL Which of the following is incorrect concerning FHA and VA mortgages?a. FHA and VA mortgages are either government insured or government guaranteed loans and therefore assumableb. FHA is a government-insured loanc.VA is a government guaranteed loan and is accompanied by a funding feed. VA is a government insured loan and could be accompanied by an origination fee

• VA is a government insured loan and could be

accompanied by an origination fee Administrative lawa body of law created by administrative agencies in form of rules, regulations, orders, and decisions (FL Statute 475 empowers FREC to govern real estate practice in FL) Which of the following is a set of administrative rules developed by The FL Real Estate Commission?Chapter 61j2 Which of the following statements is true concerning continuing education?Actively licensed and inactively licensed sales associates must complete the 14 hours of continuing education If a broker receives an escrow check on Thursday, when is the broker legally required to have the escrow in the escrow account?Immediately, which is defined by Tuesday of the following week Opinion of titlelists any defects or clouds on title (i.e. liens, easements, or other encumbrances) and includes attorney's opinion of whether seller has a marketable title (merchantable title) Special warranty deedSimilar to bargain and sale deed as it contains a seisin clause indicating grantor has title to property*Uses words grants, bargains, and sells Which of the following is an example of external obsolescence?a. A sinkhole in the backyardb. A shopping center opening up nearbyc. A tree root's system messed up the front sidewalkd. The road in front of the house became a thoroughfare

• The road in front of the house became a thoroughfare

Common lawjudge-made law manifested in decrees and judgments of the courts as opposed to statutory law; takes precedence when statutory law is missing or ambiguous Annual property taxes dueTaxable value x tax rate = annual property taxes due Quitclaim deedUsed to clear existing or potential clouds on title; to do so grantor releases any claim or interest in property*Provides