FL Real Estate License Practice Exam 4 Flashcards

FL Real Estate License Practice Exam 4 Flashcards When buying real estate, the four characteristics that

create economic value are:a. Demand, utility, structure,

and timeb. Duration, utility, scarcity, and transferabilityc.Demand, utility, scarcity, and transferabilityd. Duration, usability, scarcity, and time C Broker David was able to combine eleven parcels of real estate under legal description and ownership in order to develop a medical complex. In doing so, the land increased in value by $50,000. The combining of these parcels is

known as:a. Plottageb. Highest and best usec.

Assemblaged. Planned unit development C Which form must be signed by either the buyer or seller when changing from a single agency relationship to a transaction brokerage relationship?a. Single agency relationship formb. Transaction brokerage relationship formc. Consent to transition to a transaction brokerage relationship formd. Both b and c C Broker Bud is involved in a dispute over an earnest money deposit between a buyer and a seller. He has notified the FREC of this situation and the parties have decided the

take the issue to court. This is known as:a. Litigationb. An

escrow disbursement orderc. Arbitrationd. Judicial mediation A

A real estate commission paid by the buyer is a:a. Credit to

the buyerb. Debit to the sellerc. Debit to the buyerd. Debit to the buyer and a credit to the broker C Which of the following has loan limits?a. Conventional mortgagesb. FHA insured mortgagesc. VA guaranteed mortgagesd. Both b and c B A seller refuses to pay a legal commission upon the sale of his homestead. The sales associate who sold the property and her broker both sue the seller intheir own names for the commission. Which applies?a. The broker should have sued for liquidated damages only.b. The broker is in violation of Chapter 475 F.S.c. The sales associate is in violation of Chapter 475 F.S.d. Both the broker and the sales associate are in violation of Chapter 475 F.S.D A property Disclosure Report must be disclosed to potential buyer under the Florida Uniform Land Sales Practices Law

if the subdivision contains:a. More than 49 lotsb. More than

50 lotsc. Fewer than 25 lotsd. More than 25 lots A

A rental property rents for $300 per month. The lease term is four years. The broker is entitled to a commission for locating a tenant. The commissionagreement calls for a commission of 6% for the rental income for the first year, 4% of the rental income for the second year, and 2% of the rental income for the last two years. How much was the earned commission for all four years?a. $504.00b.$478.00c. $360.00d. $144.00 A A complaint was filed against Broker Ann alleging that she had been committing fraud over the internet. When the

DBPR receives this complaint, it will be likely reported to:a.

The State Attorney's office since the complaint was criminalb. The Florida Real Estate Commissionc. Both a and bd. This case can only be prosecuted by the U.S. Drug Enforcement Agency.C A broker opens a branch office in compliance with the law.The official sign on the exterior of the branch office must

include:a. The name of the firm and the name of the

brokerb. The name of the firm, the name of the broker, and the words "Licensed Real Estate Broker"c. The name of the firm, the name of the broker, and the term REALTORd. The name of the firm, the name of the broker, and the term REALTOR along with the term "branch office" B When a broker changes addresses of the main office, which of the following must notify the Division of Real Estate?a. No one unless it is a branch officeb. The brokerc.All sales associates licensed with that brokerd. Everyone who is licensed B A seller sells an option to a broker to buy the seller's property for $80,000. Before the option expires, the broker finds a buyer will to pay $92,000. The brokerexercises the option and buys the property for $80,000. The next day, the broker sells the same property for $92,000. Which statement best applies?a. The broker did nothing illegal.b.The broker violated his fiduciary duty.c. The broker committed fraud.d. Brokers cannot hold options.A A real estate agent was involved in a difficult closing.Which of the following can pay this sales associate a bonus in this situation?a. The employing brokerb. An unlicensed ownerc. No one, this would be considered an overaged.Either a or b A What is the maximum interest rate that can be charged in a tax certificate sale?a. 10%b. 14%c. 18%d. 24% C When an appraiser adjusts the estimate of value on a

property because of an outdated kitchen, it is known as:a.

External obsolescenceb. Functional obsolescencec.Curable physical deteriorationd. Incurable physical deterioration B

The seller is considered which of the following?a. The vendorb. The mortgagorc. The mortgageed. Both a and b A If the seller defaults in a real estate sales contract, what legal rights does the buyer have?a. Sue for performanceb.Sue for liquidated damagesc. Sue for unliquidated damagesd. Both a and c D The rate of interest on a mortgage loan is most influenced

by:a. Political forcesb. Availability of lendable fundsc. The

FDIC and the FSLICd. Changes in unemployment rates and total installment debt B If a broker's license expires, what is the status of the licenses of any sales associates who have their licenses placed with that broker?a. Their licenses are suspended.b.Their licenses are cancelled.c. Their licenses are placed on hold until the broker's license is renewed.d. Their licenses become involuntarily inactive.B An investor purchased a small office building for $150,000 which contained four suites of equal size. The investor projects full occupancy with total operating expenses of $30,000. If the investor wishes to get a 20% rate of return, how much rent will he need to charge for each office each month?a. $500b. $1,250c. $1,375d. $1,500 B Shifty Bank is evaluating an applicant's willingness to repay debt. Shifty Bank will be reviewing which of the following as part of the underwriting process?a. Current income and income continuanceb. A credit report that includes credit scoresc. Current assets as they relate to current liabilitiesd.All of the above B The unique location and immobility associated with a parcel

of real estate is known as:a. Situsb. Highest and best usec.

The principal of substitutiond. The principal of conformity A broker is preparing a CMA for a client. The broker should

do all of the following EXCEPT:a. Determine the

reproduction cost of the subject propertyb. Examine properties that are currently on the market for salec.Determine the average value of properties that have expired recentlyd. Compare similar properties that have sold recently A The perimeter of a square parcel of land is 968 feet. What are the dimensions of the parcel?a. 121' x 121'b. 242' x 242'c. 121' x 242'd. 968' x 968 B Dan is a sales associate who works for Broker Pat. Dan would like to do business as (DBA) "The Land Man." In order for Dan to operate as a sales associate in this

manner, he must:a. Ask for a reissue of a license in the