Florida Real Estate Broker Exam Flashcards

Florida Real Estate Broker Exam Flashcards Charles has a mortgage on his property and he has to pay income tax. The accountant tells him to bring in the papers on the loan, that he may have a tax deduction. He has a new loan of $125,000 with an interest rate of 8% over 30 years and a monthly payment of $917.21. What could the buyer take as a deduction on his income tax?A) He could

take off the whole amount of his monthly payments:

$11,006.52 for the first year.B) Charles could take off the interest on the loan of approximately $10,000.C) He can't take off any payments or interest, only the closing costs.D) He must pay tax on the loan he received for buying the house.

• Charles could take off the interest on the loan of

approximately $10,000.What is a contingency when it is used with a contract?A) It is a financial requirement to allow for the buyer to fully pay for the property.B) It is a condition that must be met before the contract is fully executory.C) It is a type of legal language for identifying the legal description.D) It is the names of the parties to satisfy the Statute of Frauds.

• It is a condition that must be met before the contract is

fully executory.The use of borrowed money is called leverage. Which of these loans can have the most leverage for the buyer?A) ConventionalB) 95% Conventional InsuredC) FHA 203BD) VA

• VA

The settlement agent from a title company gives the buyer and seller a statement of conditions to be met. If the seller agrees that the property has no new encumbrances since the initial title search and that the existing loan will be paid off. the title company promises to insure for the amount of

the buyer's new loan. This written commitment is called:A)

A closing statement.B) A title binder.C) A title policy.D) An indemnification sheet.

• A title binder.The title search will list all of the existing

liens on the property that are to be paid off at closing on a Title Binder, and it will list any encroachments or exceptions known by the title company.Susie has been found guilty by the FREC and has been issued a Probation Order. How long will the probation last and when will it begin?A) The probation is for 30 days and will begin as soon as the FREC meets.B) The probation is for 90 days and will begin 30 days after the filing of the final order.D) The probation is for 120 days and begins 60 days after the filing of the final order.The probation is for five years and will begin as soon as all appeals have been heard.

• The probation is for 90 days and will begin 30 days after

the filing of the final order.Susan gave a listing agreement to her broker to sell her home. Her best friend, Katherine, decided to buy it and

Susan did not want to pay the broker their commission. The broker responded that they would be paid no matter who the buyer was. What type of listing did Susan have?A) Exclusive Agency ListingB) Open ListingC) Exclusive Right To SellD) Net Listing

• Exclusive Right To Sell

Becky is a single agent representing the seller in a transaction. The seller has AIDS and discloses that fact to Becky. Becky does not tell the other agent nor is it disclosed by either the seller or Becky to the buyer. The buyer sues Becky for nondisclosure of a material fact. Does the buyer have a case?A) AIDS MUST be disclosed.B) AIDS is not a material fact that must be disclosed.C) This is a psychologically impacted property and must be disclosed.D) This property is stigmatized, and the broker should have disclosed it even if the seller did not.

• AIDS is not a material fact that must be disclosed.

Recruitment of new sales associates is important. To

recruit successfully, a broker must do all EXCEPT:A) Set

recruitment goals that managers understand.B) Determine if new sales associates are needed in the brokerage company.C) Determine if experienced sales associates are needed.D) Set recruiting goals that match the racial makeup of the neighborhood.

• Set recruiting goals that match the racial makeup of the

neighborhood.Nix wishes to become voluntarily inactive because she just won the lottery, and she wants time to organize her life.She is required to do all of the following to keep her license

voluntarily inactive EXCEPT:A) She must attend continuing

education.B) She must pay the same fee as an active licensee to renew.C) She must renew her license just as active licensees do.D) She must continue to sell real estate just as active licensees do.

• She must continue to sell real estate just as active

licensees do.Which type of relationship is an example of an agency relationship?A) A seller and a buyerB) A landlord and a tenantC) A landlord and a property managerD) A transaction broker and a buyer with a buyer brokerage contract

• A landlord and a property manager

The only mortgage that includes the boat, the boat dock,

and other personal property with the home loan is called:A)

A participation mortgage.B) A package mortgage.C) A blanket mortgage.D) A balloon mortgage.

• A package mortgage.

How long is a fictitious name valid?A) 2 yearsB) 5 yearsC) 10 yearsD) Indefinitely

• 5 years

A fiduciary relationship between a licensee and a

client/principle is created when a:A) Seller speaks with a

salesperson about listing a property.B) Buyer enters into a single agency buyer representation agreement with a sales associate.C) Broker shows a buyer a property.D) Property manager shows a prospective tenant a property in the rental inventory.

• Buyer enters into a single agency buyer representation

agreement with a sales associate.

Liens that have the highest priority are:A) The liens that are

recorded first.B) The real estate tax liens.C) The judgment

liens.D) The mortgage liens.

• The real estate tax liens.The government's liens for

taxes and special assessments always take priority over