FL Real Estate Missed Questions Flashcards

FL Real Estate Missed Questions Flashcards Bill's license expired on Sept. 30, 2013. On Feb. 14, 2014, he wants to renew it. If it is not his first renewal, what must Bill do?A. Start over with a pre-license courseB. Pay a late fee and complete two 14-hour continuing education classesC. Pay a late fee and complete 14 hours of continuing educationD. Pay a late fee and complete 45 hours of post-license education

• Pay a late fee and complete 14 hours of continuing

educationLicensee can remain in involuntary inactive for up to two years.The department has the ability to waive the initial licensing fee, the initial application fee, and the initial unlicensed activity fee for military veterans and their spouses at the time of discharge who apply for "THE MILITARY VETERAN/SPOUSE FEE WAIVER REQUEST", and must be submitted within SIXTY MONTHS after being honorably discharged.Military licensees can keep their license in good standing without renewing or paying dues or fees for a period of two years after discharge from active duty as long as they do not engage in real estate activities during this time.If a mortgaged property is sold "subject to the mortgage", the new owner acquires ownership without assuming personal responsibility for the balance of the promissory note. The existing mortgage continues to use the property as security for the debt. When a property is sold subject to the mortgage, only the original borrower remains liable for the balance of the promissory note. The buyer acknowledges the existence of the mortgage. If the buyer should default on the mortgage, the lender would foreclose and the property would be sold to satisfy the balance due on the note.

• What are the two ratios under which a borrower must

qualify in order to receive a FHA insured mortgage loan?(a) Housing expense and monthly gross income ratios(b) Housing expense and total monthly obligations ratios(c) Gross income and total obligations ratios(d) Housing expense net ratio and total monthly obligations net ratio

• Acceptance of an offer on a property. A valid real estate sales contract requires all of the

following except:A. An offer and acceptanceB. A

substantial earnest money depositC. A written formD. A signature of all parties

• holding something for someone else in trust Which statement is correct regarding a corporation sole?A.

It can broker real estate deals.B. It allows title to go to heir of the clergy in place.C. It allows title to go to successor to the clergy in place.D. It acts like a corporation for profit.

• It allows title to go to successor to the clergy in place.Without specific authorization it is a violation for a sales

associates except which of the following as a deposit?A. A post dated checkB. CashC. Specie (coin)D. Valuable consideration What is a group license?A group license is a single real estate license that can be obtained if the sales associate or broker associate works for one owner-developer with affiliated organizations.

• Gail owes Fred.A listing contract may be terminated in all of the following

ways, EXCEPT:A. Cancellation of the contractB. Fulfillment

of the contractC. Mutual abandonment of the contractD.Acceptance of an offer on the property An owner of land offers to open a listing to three Florida brokers. The brokers decide to cooperate on the sale and hold and auction as a means of selling. They retain a tobacco auctioneer from NC and pay $1,000 plus expenses to auction off the property. The auction is held, but the owner rejects all offers. Which statement best applies?A.The auctioneer has violated real estate license law.B. The brokers may have their licenses suspended.C. The owner is compelled to sell.D. Both a and b are correct.

• Both a and b are

correct.AppraisingBuyingAuctioningRentingSellingAdvertisi ngLeasingExchanging

• Illegal under F.S. 475Can be fined up to 1,000 and one

year imprisonment.A sales associate wants to use a trade or fictitious name.

Which statement applies:A. The name must be registered

with the county clerkB. The name must be registered with FREC.C. This would violate F.S. 475D. The name must be registered with the Secretary of State.

• A violation of the fair housing act of 1968. What is the main purpose of regulation Z?A. Requires

lenders to disclose the true cost of credit to consumers.B.Require lenders to disclose closing costs to buyer.C.Require brokers to disclose closing costs to buyers.

• A substantial earnest money depositReal estate brokerage commissions are based on which of

the following?A. MLS ruleB. CustomC. The seller's equityD.The actual sales price

• SeisinWhat is the premises clause?

How many employers may a sales associate or broker associate have at a time?One registered employer at a time.His license is null and void.In which instance must the agency disclosure forms developed by the state be used?A. Commercial leasingB.Residential leasingC. Residential salesD. Residential auctions

• WitnessedIf a property owner is foreclosed upon, and the foreclosure

results in a sale price greater than the amount of the outstanding liens, the excess will likely be paid to which of the following?(a) The court(b) The mortgagee(c) The mortgagor(d) The Florida Real Estate Recovery Fund To qualify for an FHA loan, a borrower must not exceed a housing expense ratio of 31% and a total obligations ratio

of 43%.Reference: Chapter 12, Lender Risk, Income

Ratios, FHA What is the total obligation ratio?IT IS TYPICAL TO DO A 50/50 split of DEPOSIT. Mrs. Murphy is a struggling small investor who owns a boarding house and rents rooms to tenants.which statement is correct?A. She may advertise to attract tenants of a particular race or religionB. She may refuse to

rent to any tenant that she feels would be incompatible with existing borders.C. She cannot refuse to rent to a border that she feels may be incompatibleD. Private owners are exempt from fair housing act Title insurance is designed to protect against which of the following?A. All defects in titleB. Missing documentsC.Forged documentsD. Known defects

• forged documentsTitle defects can be failure to comply

with local real estate document laws, discovery of claims or liens against the property that weren't acknowledged,

Where are the rules of the Florida Real Estate Commission Found?A. F.S. 455B. F.S. 475C. F.A.C. 61J2D. F.A.C.62Q1(chapter 3, DBPR)

C. F.A.C 61J2

• At least one officer must be an active broker. When moving from one branch office to another, what must

a broker do?A. Send in the old branch office registration with a request for transferB. Apply for and obtain a new registration for the new branch and pay the proper feeC.Change the address on his branch office registration certificateD. Be at least 5 miles from the main office.

• A violation of RESPAWhich clause in a deed states that the grantor was in

possession and has the right to sell the property?A.SeisinB. GrantingC. PremisesD. Habendum If all lien holders have been paid from the proceeds of the foreclosure sale, any surplus funds remaining are paid to

the mortgagor (borrower).Reference: Chapter 12, Default,

Foreclosure Process What is the approximate effective rate of interest (APR) if a mortgage loan is based on an interest rate of 5% per annum, and the lender charges 8 discount points?(a) 4%(b) 5.13%(c) 6%(d) 13%

• A stockholderA sales associate or broker associate may

not be an officer or director in a real estate brokerage association. Anyone can be a stockholder.Which of the following statements is correct regarding a licensed broker associate who is with a real estate brokerage partnership?A. The broker associate may be a member of the partnershipB. The broker associate may make earnest money deposits with the broker's permissionC. The broker associate must hold an active broker's license.D. The broker associate may not provide real estate brokerage services to others.

• Send in old branch office registration with a request for

transfer.All of the following are required to be displayed at a

broker's office, EXCEPT:A. copies of each sales associates

licenseB. A fair housing posterC. The proper sign on or about the entranceD. The license status of any broker's listed on the office sign.No, listings are not assignable.A broker sold an $85,000 house, charging the seller a 6% commission. Due to circumstances, the buyer defaulted and forfeited his deposit. Based on custom, how much should broker receive?A. $2,550B. $3,400C. $4,250D.

$5,100

Housing expense ratio = Monthly PITI ÷ Monthly gross income $825 ÷ $4,100 = .201 or 20% housing expense ratio

• What is the function of a mortgage?(a) It conveys title to

real property.(b) It secures the repayment of the debt.(c) It creates a personal pledge to repay a loan.(d) It creates a lien on the mortgagee's property.

All of the following are exempt from F.S. 475, EXCEPT:A.

Trustee for an estateB. Personal representatives for an estateC. Mortgage brokers engaged in financingD.Business brokers

• Business brokers

Both the buyer and the sellerIf a broker closes down his brokerage, can he give his listings away?