Florida Real Estate Brokers Exam Prep Flashcards

Florida Real Estate Broker's Exam Prep Flashcards A buyer of a new home for $240,000 will have annual taxes of $5,200 and insurance for $1,200. She gets a new 90% conventional mortgage for 30 years at 7.25%. The monthly mortgage insurance premium is $110. The loan constant from a mortgage payment table is .0068218. Using this information, what will be the new homeowner's total monthly payments of principal, interest, taxes, and insurance (PITI)?

The answer is $2,116.84. Step 1: calculate the mortgage

amount. $240,000 × .90 = $216,000. Step 2: calculate the

principal and interest payment. $216,000 × .0068218 =

$1,473.51. Step 3: calculate monthly taxes. $5,200 ÷ 12

mos. = $+433.33. Step 4: calculate the monthly insurance.

$1,200 ÷ 12 mos. = $+100.00. Step 5: use the monthly

mortgage insurance premium. $+110.00. Step 6: add the

monthly fees together to get the PITI payment = $2,116.84 A business appraiser calculates a company's current ratio by The answer is dividing current assets by current liabilities.Current assets are cash or assets that can be turned into cash within one year. Current liabilities are payments that will come due within one year.A home is sold for $398,000. The buyers gave their broker a $10,000 good-faith deposit. The buyers will finance the purchase with a new 75% loan-to-value mortgage loan.Closing date is July 3, with the day of closing charged to the buyer. Property taxes are $8,412 and homeowners association dues are $125 monthly and were paid in advance. Prorations should be made using the 365-day method.The sellers will pay the 7% brokerage fee, the documentary stamp tax on the deed, and title insurance of $2,200.The buyers will pay the appropriate state taxes on the note and mortgage, $66 in recording fees, and $475 in survey costs.Based on this information, answer the following question about how the transaction will be shown on the Closing Disclosure.What are the documentary stamp taxes and intangible taxes on the deed and the mortgage?The answer is debit seller $2,786, debit buyer $1,641.75;

page 2. Seller pays doc stamps on deed: 3980 units × .70

= $2,786.00. Buyer pays doc stamps on note and

intangible taxes on mortgage. Step 1: calculate amount of

mortgage. $398,000 × .75 = $298,500. Step 2: calculate

doc stamps on note. 2,985 units × .35 = $1,044.75. Step 3:

calculate intangible taxes on mortgage. $298,500 × .002 =

$597.00. Step 4: add buyers costs together $1,641.75.

Who would NOT be considered a potentially responsible person (PRP) under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)?The answer is a prospective buyer of a contaminated site who executed an offer to purchase. CERCLA broadly defines those liable for cleanup to include any potentially responsible person (PRP). PRPs include present owners and operators of a contaminated site, persons who owned or operated a site at the time hazardous substances were located at the site, and persons who arranged to transport hazardous materials to a site.A transaction closes on November 15. The seller has paid $1,816.25 in annual taxes. The day of closing is charged to the buyer. Using the 365-day method, what is the proration on the closing statement?The answer is credit seller, debit buyer $233.87. Because the seller has already paid taxes for the year, the buyer will have to reimburse the seller for the remaining days in the year. In November, there are 16 days remaining, and 31 in December, for a total of 47 days. Divide $1,816.25 to get

$4.97603 per day. Multiply 47 days × $4.97603 to get

$233.87.

Which statement is TRUE regarding the national do-not-call laws?The answer is federal law allows real estate licensees to contact an FSBO seller if they have an actual buyer interested in the property. If the licensee does not have a buyer, the call would be illegal.The MOST common tenant complaint in apartment properties centers on The answer is maintenance service requests. The most common tenant complaint concerns maintenance service requests. Management must not treat the tenant request as if it is an annoyance, and it should provide prompt service if it is an owner responsibility. If the request is not a service the owner provides, but a tenant responsibility, the tenant should be told immediately.When an improved investment property is sold, the tax rate on depreciation that has been previously deducted is generally The answer is 25%. Any depreciation taken during the holding period is recaptured and taxed at 25%.Which individual is required to hold a Florida real estate license?An individual who negotiates long-term lease agreements for commercial property A home is sold for $398,000. The buyers gave their broker a $10,000 good-faith deposit. The buyers will finance the purchase with a new 75% loan-to-value mortgage loan.Closing date is July 3, with the day of closing charged to the buyer. Property taxes are $8,412 and homeowners association dues are $125 monthly and were paid in advance. Prorations should be made using the 365-day method.The sellers will pay the 7% brokerage fee, the documentary stamp tax on the deed, and title insurance of $2,200.The buyers will pay the appropriate state taxes on the note and mortgage, $66 in recording fees, and $475 in survey costs.Based on this information, answer the following question about how the transaction will be shown on the Closing Disclosure.What is the proration for property taxes?The answer is $4,217.52 debit seller, credit buyer; page 3.

Prorations are shown on Page 3. Step 1: calculate the daily

rate of taxes. $8,412 ÷ 365 = $23.04658 per day. Step 2:

calculate number of days to prorate from beginning of year.

= 183 days. Step 3: calculate the proration. $23.04658 ×

183 = $4,217.52

What is found on the third page of the Closing Disclosure?The answer is the total amount due from the buyer and the total amount due to the seller. Other items on Page 3 are the calculation of cash to close, prorations, the amount of the deposits and mortgages. The expenses are shown on Page 2.Which form does the Real Estate Settlement Procedures Act (RESPA) require to be given to borrowers at LEAST three days before the closing of a real estate transaction?The answer is Closing Disclosure. The Closing Disclosure replaced the HUD-1 Settlement Statement and the Truth-in-Lending Act.The broker complied with an escrow disbursement order (EDO) but was sued by the seller. The seller was awarded a judgment against the broker. The seller has made a claim against the recovery fund. Which statement is TRUE regarding the Real Estate Recovery Fund?The answer is the Commission will take no action against the broker's license as a result of the claim against the recovery fund. If a broker who complied with an escrow disbursement order (EDO) is later required by a court to pay money damages as a result of legal actions taken by the buyer or the seller in the transaction, the FREC is

authorized to order reimbursement to the broker for the amount of the judgment against the broker up to $50,000.No disciplinary action will be taken against a broker who had previously requested an EDO and followed its instructions.