FL Real Estate Exam, Questions From Exam Flashcards

FL Real Estate Exam, Questions From Exam Flashcards Which is correct about a group license?a. It is issued to sales associates who work for several employers.b. A broker may have as many as she has offices.c. It is issued to sales associates who work for several entities with a comm ownership.d. It is issued to brokers for each branch office.

• It is issued to sales associates who work for several

entities with a comm ownership.Which category is exempt from licensing when performing real estate services?a. Funeral directorsb. CPAs acting within the scope of their dutiesc. Partners receiving more than their pro-rata share of profits for selling services.d.Employees of a corporation who are paid on a transactional basis for selling corporate property.

• CPAs acting within the scope of their duties

A homestead property is located outside the city limits in Pasco County, FL. The assessment value of the property is $190,000.00. The city tax rate is 7.8 mills, the county tax rate is 9.8 mills, and the school board's rate is 5.7 mills.The owner is an army veteran with 10% disability as a result of his service in Iraq. He is also a widower and has qualified and received homestead tax exemption. How much does the owner have to pay for property taxes?a.$1,318.10b. $ 766.65c. $1,088.10d. $2,227.25

• $2,227.25**To calculate the property taxes, you take the

following steps:1. You should remember that the school

board only recognizes the base exemption of $25,000.00.City and County, on the contrary, recognize the entitlement of the owner to an additional $25,000 exemption when the property's assessed value is greater than $75,000.00.2.Figure out Taxable Value for School Taxes $190,000 assessed value - $25,000 base homestead exemption - $5,000 additional exemption for service disability - $500 widower exemption = $ 159,500.00 taxable value for school taxes.3. Figure out Taxable Value for County Taxes $190,000 assessed value - $50,000 homestead exemption

• $5,000 additional exemption for service disability - $500

widower exemption = $134,500 taxable value for county taxes.4. Figure out Tax Due $ 159, 500.00 x .0057 = $ 909.15 school taxes$ 134, 500.00 x .0098 = $ 1,318.10 county taxesCity taxes do not apply because the property is out of city limits.$909.15 + $1,318.10 = $2,227.25 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?a. Name, address, email and phone number of the title company or attorneyb. Name and phone number of the title company or attorneyc. Name, address, and phone number of the title company or attorneyd. Name, address, email, phone number and account number of the escrow account

• Name, address, and phone number of the title company

or attorney**Always NAME, ADDRESS, PHONE #

Hinson forms a limited partnership to develop and sell real property. Hinson will be the general partner will do all the work. Bailey buys units as a limited partner and invests $100,000. Hinson defrauds several purchasers who bring suit against the partnership and get judgments for amounts in excess of $300,000. The partnership funds are wiped out. Which is correct?a. Hinson is liable for the same amount as Bailey.b. Hinson is not liable because of the limited partnership status.c. Hinson is liable for the unpaid judgments, Bailey is not.d. Bailey is jointly and severally liable as a partner.

• Hinson is liable for the unpaid judgments, Bailey is not.

What is the status of a sales associate's license if he/she does not complete the required 45 hours post licensing education prior to his/her first renewal cycle?a. Involuntary inactiveb. Inactive and voidc. Suspendedd. Null and void Null and void**every time you see 'post licensing' know that it is null and void Joan is representing Richard in the sale of his home as a single agent in FL. William, another sales associate in her office, has a buyer who shows interest in visiting the property because it fits his buying criteria. Before Joan can show the property to William and his buyer, which steps does she needs to follow?a. She needs to find out what is the best time for Richard to allow them in the property.b.She needs to obtain the seller's signature on a Consent to Transition to Transaction Broker. Then she can show the property to William and his buyer.c. She needs to ask William and his buyer to sign a Consent to Transition to Transaction Broker before they visit the property.d. She needs to secure the signature of the seller and the buyer in a Consent to Transition to Transaction Broker before showing the property.

• She needs to secure the signature of the seller and the

buyer in a Consent to Transition to Transaction Broker before showing the property.**Joan needs to secure the signature of Richard, her seller, and the signature of William's buyer in a Consent to Transition to Transaction Broker before showing the property. Florida law prohibits a dual agency. Therefore, in order for a brokerage that has a Single Agent Relationship with a buyer or a seller to assist both parties on a real estate transaction, the licensee must change to a Transaction Brokerage Relationship with the prior written consent of the parties.

The two instruments created with a mortgage loan are:a.

The purchase contract and the deed.b. The promissory note and the mortgage.c. The closing statement and the mortgage.d. The general warranty deed and the promissory note.

• The promissory note and the mortgage.**The two

instruments created by the origination of a mortgage loan are the promissory note which is the legal instrument that services as evidence of the debt and the mortgage which is the instrument that pledges the property as security for the debt.Which of the following best describes the relationship of a broker and his principal?a. Caveat emptorb. Limited dutiesc. Fiduciary dutiesd. Confidentiality until the listing expires

• Fiduciary duties

A licensee who has passed the broker's state examination, but desires to continue to operate under an owner-employer will be registered as aa. Brokerb. Sales associatec. Broker associated. Realtor-Associate

• Broker associate

Which of the following describes leverage?a. Leverage is the same as cash flowb. Leverage is the use of borrowed funds to purchase assets or to finance an investmentc.Leverage can only be positived. Leverage is when an investor uses his equity to finance an investment

• Leverage is the use of borrowed funds to purchase

assets or to finance an investment**rich people borrow other peoples money so they can make money off of them When a developer plans for a large project in Florida, studies need to be performed regarding the project's impact in the community before the city approves it. These

studies are summarized in a:a. Planned Unit Development

filingb. Environmental Impact Statementc. Special Exceptions Riderd. Developments of Regional Impact Statement

• Environmental Impact Statement**An Environmental

Impact Statement is a summarized report that shows the long term impact of the project on waste-disposal systems, air quality, traffic, the local economy and so forth.All of the following are protections granted by the Florida

Constitution to homestead property except:a. Granting tax

exemptions when assessing property taxes.b. Granting protection to the family in case of deceased of the titled owner.c. Granting protection of the size of homestead in case of Bankruptcy.d. Granting protection from enforcing of the vendor's liens.

• Granting protection from enforcing of the vendor's

liens.**Florida allows property owners to homestead their principal residence. The benefits of the homestead are the protection of the family in case the owner on the title dies and the allowance of up to $50,000 in property tax exemption. The Homestead also protects the size of the property (160 acres of contiguous land and improvements outside the city and ½ acre within the city) as well as the protection of personal property (up to $1,000) in case of bankruptcy and to protect from the forced sale to pay for personal debts. Nevertheless, the homestead does not protect from foreclosure if the homestead property is the collateral to a defaulted mortgage loan, neither from unpaid property taxes, special assessments, foreclosure for unpaid condo association fees or homeowners association fees, or vendor and construction liens secured by the property.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**it is a sentence in a deed that says I

have seisin, which means I legally can sell you my house What requirement does not apply regarding dwellings built prior to 1978?a. Sellers and lessors must disclose the presence of known lead-based paint in all residential dwellingsb. Sale contracts and leases must include specific lead-based paint warning and disclosuresc. Buyers and tenants must acknowledge they have received the warning and disclosured. Buyers must have the property inspected for lead-based paint

• Buyers must have the property inspected for lead-based

paint**this is not true. it's the sellers responsibilitySellers have to do 4 things if they are selling a house before 1978....1. seller must disclose if there is lead in the paint2.sellers have to provide buyers with a disclosure3. sellers must give buyers an EPA prepared pamphlet regarding dangers of lead based paint4. sellers must give buyers 10 days to inspect for lead based paint (**buyers do not have to inspect and sellers do not pay for it) In which of the following mortgage lending theories does the borrower not retain title during the loan period?a. Lien theoryb. Title theoryc. Bank theoryd. Loan theory

• Title theory**bank theory and loan theory are made up -

dont exist**like when you pay off a car, you get the title**FL is a lien theory state

If you are at the POB (point of beginning), and you are headed N90*E, what direction are you headed?a. Northb.Eastc. Southd. Northeast

• East**metes and bounds method of describing property

Which of the following is an example of external obsolescence?a. A sink hole in the back yardb. A shopping center opening up near byc. A tree's root system messed up the front sidewalkd. The road in front of the house became a through-fare

• The road in front of the house became a

through-fare**external obsolescence is a form of depreciation where the appraiser deducts value because it

is on the outside of the property**ex: living on a

through-fare (highway), living near the airport The powers and duties of the FREC include three important areas, the executive powers, the quasi-legislative and the quasi-judicial powers. What is NOT a responsibility of the quasi-judicial powers of the FREC?a. Grant or deny applications.b. Fine, suspend and revoke licenses.c.Dictate sentence for criminal violations of Chapter 475.d.Determine violations of the law.

• Dictate sentence for criminal violations of Chapter

475.**FREC, under its quasi-judicial responsibility, makes determinations of violations, imposes administrative penalties such as fines, carrys out suspension and revocation of licenses and also grants or denies applications. But in the cases of criminal violations of the law, its responsibility is only to report such violations to the state's attorney.Licensure may be suspended for what maximum period of time?a. 1 yearb. 2 yearsc. 5 yearsd. 10 years

• 10 years

Which of the notices shown below MUST be signed by a buyer or a seller.a. Transaction Broker Notice.b. Single Agent Notice.c. Consent to Transition to Transaction Broker Notice.d. Notice of Non-representation.

• Consent to Transition to Transaction Broker Notice.

Which brokerage relationship status requires that a broker disclose known facts that materially affect the value of residential property?a. Any status requires the disclosure.b.Single agentsc. Transaction brokersd. Licensees with no official brokerage relationship

• Any status requires the disclosure.

Which of the following is most correct?a. All sales associates work for brokers.b. All brokers have sales associates.c. All brokers are Realtors.d. All Realtors must be members of NAR.

• All Realtors must be members of NAR.

An easement created when a person has been using a roadway without permission for over 20 years is called an....a. Easement by prescription.b. Easement in gross.c.Easement appurtenant.d. Easement by necessity.

• easement by prescription.

A licensee did not disclose that one of his listings had a code violation. As a result, the buyer was affected. This

situation is considered:a. Culpable negligenceb. Material

factc. Moral Turpituded. Fraud

• Fraud**The licensee intentionally deceived the buyer

with the purpose of closing the sale and earn his commission. The law prohibits deceptive practices. When a sales associate or broker intentionally omits information that is relevant and material to a transaction, the licensee is guilty of fraudulent and dishonest dealing by trick, scheme or device.Which of the following is a legal brokerage office? I.permanent building with at least one office II. sign at or about entrance with "Licensed Real Estate Broker" or