FLORIDA MUTUAL RECOGNITION EXAM STUDY SET broker

FLORIDA MUTUAL RECOGNITION EXAM STUDY SET broker Flashcards Equal Credit Opportunity ActThe Equal Credit Opportunity Act (ECOA)(15 USC §1691 et seq.) is a federal law passed in 1974 that ensures that all consumers are given an equal chance to obtain and maintain credit. ECOA is implemented through Regulation B (12 CFR § 1002) and enforced by the Consumer Financial Protection Bureau.At what point in time must an agent give a buyer a disclosure if he or she wished to be a single agent for the buyer?Prior to the showing of property Who is authorized to rescind a voidable contract? Only the minor A commercial tenant installs a pizza oven in his new

restaurant. The pizza oven would be deemed a:

Chattel/Trade Fix Equitable TitleAny present right to acquire real property Jones vs. MayerThe case that upheld the Civil Rights act of 1866.Culpable negligencePerson should have known During the 18-24 month first renewal period a licensed

broker need to complete:

60 hours of post licensure courses Lien Theory StatesStates where a mortgagee only holds a lien against property (not actual title) until the loan is repaid, and the mortgagor holds the actual title.Title VIIIPart of the Civil Rights Act of 1968; prohibits discrimination based on race, color, religion, sex, national origin, disability or familial status. Also referred to as the Federal Fair Housing Act Which disclosure notice must be given before a single agent can change to a transaction broker?Consent to transition to transaction broker Square Foot MethodMethod for determining the cost of a building that relies on cost manuals (and is sometimes called the cost manuals method).A licensee representing an owner, contracts for repairs and

improvements totaling $5,000 or more:

must have a contractor license or employ a contractor.Real Estate Recovery Fund Limits50k A brokerage relationship is terminated under which circumstances?The broker agent renounces the brokerage relationship Which of these financing methods does not use two ratios for qualification?VA uses the residential income method in lieu of the Housing expense ratio.Special restrictions to all properties within a subdivision

would be found in:

Record of Restrictions

Perhaps the easiest way to remove a cloud on title is:Quitclaim

Who confirms the appointment of the seven members of the Florida Real Estate Commission?The Senate OptioneePerson who is given an option When a buyer gave salesperson Sue a check for $1,000 as an earnest money deposit in a transaction, she deposited it in her special trust account. Can her client earn interest on this deposit?No, because only brokers may have trust accounts URARUniform Residential Appraisal Report - A standard appraisal report form used by lenders and appraisers because it has been developed and approved by secondary mortgage market players Fannie Mae and Freddie Mac.

Actual notice refers to:Physical position of a property

OptionorWrites option Which federal statute requires a lender to give a borrower a statement of total interest being paid over the life of a loan?Regulation Z A Florida sales associate may register with the DBPR as aLimited Liability Company License law and the Federal Fair Housing Act of 1968 prohibits discrimination in housing for the following protected classes, except Age Which party is in the weakest position against a claim of title made by a stranger?A non-occupant holder of an unrecorded quit claim deed A borrower pays off his loan, however, the lender refuses to cancel the mortgage. Which of the following clauses of a mortgage has the lender violated?Defeasance Clause Post licensing45 hours A seller completes a property disclosure form and states that there are no conditions in the property which are in need of repair. However, the listing sales agent recognizes the early signs of termite infestation. The sales agent

should:

disclose the condition to the buyer, as this is a patent defect Rental property managers may pay a referral fee to tenants

not to exceed:

$50 If a property has been renting for $750 per month and, based on comparables, the GRM is 110, what is the indicated value of the property?

$990,000

While walking through a home, a buyer notices a large crack in the wall. The seller does not disclose this item on any property disclosure statement. After the sale is completed, the buyer sues the seller for the necessary

repairs of the crack in the wall:

The buyer has no claim under the doctrine of Caveat Emptor What refers to the interest in real property created by the execution of a valid sales contract?Equitable Title Express ReservationAn easement created in a deed when a landowner is dividing the property, transferring the servient tenement but

retaining the dominant tenement. Also: Easement by

Express Reservation

When a real estate license expires and is not renewed, it becomes Involuntary Inactive The owner of an undivided interest in land with no rights of

survivorship owns it by:

tenancy in common If the buyer in contract for deed (land contract) who has paid less than 20% of the purchase price defaults, the

seller may:

Initiate forfeiture proceedings

The square footage of a 2-story building that is 54 x 40 is:4,320

VendorSeller in land contract All licenses expire either March 31 or September 30Broker first renewal: 60-hour post-license education -

Failure to complete: null and void

moral TurptitudeAn act of corruption, vileness, or moral depravity; a disgraceful action or deed.Which of the following would a buyer prefer, land installment contract or purchase money mortgage?Purchase money mortgage Broker A conveys an offer from his principal to Broker B wherein A's principal wishes to purchase a 300-acre farm by giving B's principal$100,000, 2 tractors and 50 head of Black Angus cattle. What would the consideration offered by A's principal be called?Valuable, but not good X buys Y's property, which is subject to a mortgage. After five years of payment, X defaults and misses a payment.Which of the following is the appropriate remedy for the original mortgagor.The mortgagor has no recourse as there was no assumption An applicant for a Florida real estate license does always need to have a social security number All of the following documents are required to be in writing.Which one is not covered by the Statute of Frauds?Listing Agreement A broker offers a free trip to Hawaii in an advertisement to sell real property. The broker has stipulations in the ad that will result in no free trip. Which of the following is true?The broker has made false or misleading statements After signing an agreement with a developer to buy a condominium unit, how long do the buyers have to cancel the purchase contract?

Real estate protected by homestead rights is limited to:

At what point must earnest money be deposited into the broker's escrow account?No later than the end of the third business day after receipt Insurance policy premiums are prorated from the date the

policy is:

assigned BequestPersonal property transferred by a will.An insurance company might use an appraisal to

determine:

Replacement cost to determine the amount of coverage required Allodial SystemThe system of land ownership where anyone can own land.SitusPlace where something exists; an area of preference or preference by people for a certain location thus giving economic attributes (value) to the property.