FL Real Estate License Practice Exam 3 Flashcards

FL Real Estate License Practice Exam 3 Flashcards Bill's monthly housing expense is $1,290. His total monthly gross income is $5,000 and his total obligations are $2,240.With a conventional loan, what is Bill's monthly housing expense ratio?a. 20%b. 22%c. 26%d. 29% C A real estate broker and a real estate sales associate form a real estate brokerage corporation. Which of the following statements is correct?a. The broker can be an officer and director of the company, but the sales associate can only be a director.b. The broker can be an officer and director of the company, and the sales associate can own all of the stock.c. The sales associate is not allowed to be an officer or director nor allowed to own stock in the company.d. The broker can be an office and director of the company, but the sales associate can only be an officer.B After receiving conflicting demands over a $3,000 escrow deposit, Broker Bill requested an escrow disbursement order from the FREC who directed Bill togive the deposit to the seller. Following the disbursement, the buyer sued in court for the deposit and obtains a judgment in the amount of $3,000. Whatremedy may be available?a. The broker must borrow the money to pay the buyer within thirty days.b. The broker must ask the seller to give the money back to the buyer.c. The buyer could have the claim paid by the recovery fund.d. The buyer and seller must go to arbitration within thirty days.C In the comparable sales approach, if the subject property is

$5,000 better than the comparable, the appraiser should:a.

Subtract $5,000 from the comparableb. Subtract $5,000 from the subjectc. Add $5,000 to the comparabled. Add $5,000 to the subject C Michelle, a sales associate for Dolphin Realty, was asked to write all advertising for the company. Which of the following statements best applies?a. This is a violation of Chapter 475 F.S. because the broker is the only person authorized to write advertisements.b. This is a violation of Chapter 475 F.S. because only the listing sales associate can write advertisements.c. This is not a violation of Chapter 475 F.S. because anyone in the office can write advertisements, provided it is under the direct supervision of the broker.d. This is not a violation of Chapter 475 F.S.because a sales associate may write advertisements as

long as the sales associate's name is in the advertisement.C George, Elaine, Jerry, and Cosmo are active brokers in a real estate brokerage partnership. George and Elaine are found guilty of conversion (misuse of escrow funds) and have their licenses suspended for five years. Whathappens to the partnership?a. Nothing, as long as there is at least one active broker to be responsible for the business.b. The partnership will be placed on probation until George and Elaine and Alice have their licenses reinstated.c. Jerry and Cosmo can continue the partnership, but must notify the Division of Real Estate partnership composition change.d.

The partnership registration will be revoked.C Which type of lien may date back to a time prior to recording?a. IRS lienb. Judgment lienc. Mechanic's liend.Mortgage lien C Under what circumstance can a licensee have his or her license revoked without prejudice?a. When an applicant fails to correct errors and/or omissions on his or her applicationb. When an applicant lies about his or her past criminal background on the application.c. When the DBPR issues a license by mistake.d. When a licensee is found

guilty of a crime in another state.C A Florida real estate broker is permitted to prepare all of

the following EXCEPT:a. Sales contractb Option contractc.

Warranty deedd. Exclusive right to sell listing contract C Broker Ted listed a property for $330,000 with a 6% commission. He has an agreement with his sales team to