Florida Real Estate Exam Flashcards

Florida Real Estate Exam Flashcards Which of the following would terminate an offer? The offeror withdraws the offer prior to acceptance by the offeree Which phrase best describes the term undivided interest when speaking of a co-ownership or concurrent interest?All owners have a shared interest in one property; the property is not divided A primary difference between post-license education and

continuing education (CE) is:

post-license education is required for the first renewal and CE is owed each renewal thereafter.A deed and a real estate purchase agreement would not be

considered valid without:

an adequate legal description.The secondary market and participants provide stability for home financing in what way?Secondary market participants purchase existing paper which frees up cash for lenders Which phrase below describes the meaning of the word "contract" expressed in simple terms?A promise to do or not to do something When a cap rate used with income capitalization is high,

the following relationship with sales price exists:

risk and cap rate are higher, the sales price is usually lower.The seller and buyer have countered back and forth for several days. The two parties have verbally agreed on a price, but neither has signed anything. At this point the

status of this negotiation is:

not a contract until the parties have signed the necessary documents.Jim, a licensee in Florida moved to Georgia and retired.Before leaving Florida Jim placed his real estate license on inactive status, what will happen if Jim doesn't renew the license after two years?The status will change from voluntarily inactive to involuntarily inactive Broker Joe has a listing for a distressed seller. He finds a buyer for the property who enters into a contract for purchase. Ten day prior to closing, the seller calls Joe to

share that he has had to file for bankruptcy. This filing may:

terminate the contract.

Real property taxes in Florida are paid to: cities and counties.

A difference between commingling escrowed funds and

conversion of escrowed funds is:

commingling is mixing personal and business funds while conversion is using funds for personal or business purchases.Which of the following estate has a definite ending date?An estate for years John has a rental property with four bedrooms. He just installed new off-white carpeting. John does NOT want to rent to a family with children or a dog. Which of the following wording used in his ad is permissible?Four bedroom home, recently updated, $1300 per month Personal property is being transferred with the sale. Which document transfers personal property?A bill of sale FREC and DBPR have a primary interest in real estate

activity with a common goal of:

consumer protection.What is the common term for the security interest that the lender has in the property?Collateral for the loan

A closing is March 5 for a rental property with an annual tax bill of $2800. Calculate and show the debit and credits for the tax proration between the buyer and seller using the 365 day method, the day of closing belongs to the buyer.debit seller $483.29; credit buyer $483.29 Davis is selling an investment condo he has owned for several years. He has never lived in the unit and he has not visited the unit in 5 years. He shares these facts with Broker Bob who suggests that he list the condo "as is." In

this case:

Davis is still required by law to reveal any important information and material facts about the condo unit.The Supreme Court has said that zoning laws are constitutional because they protect which of the following?Private property rights and health and safety VA loans require less cash from veteran borrowers

because there is:

no down payment, but there are closing costs.When a transaction has failed and the buyer and seller are both demanding the escrowed funds what is the broker's best course of action?Notify FREC within 15 days that there is an escrow dispute A seller wants to net $100,000 after paying the broker 5% and paying off his loan balance of $200,000. He will also pay documentary stamps on the deed of $2100. What must the property sell for to cover all costs and net the seller his desired amount?

$318,000

An investor is looking at a four-plex that is priced at $500,000 and has a 7% cap rate. The investor told the sales associate to write up the offer using a 9% cap rate.To the nearest dollar, what is the investor willing to pay?

$388,889

Which of the items listed below is NOT a tax advantage of real estate ownership?Property can depreciate Sam and Joan made an offer of $250,000 asking the seller to pay all closing costs. They will put 10% down and pay one discount points at closing. The amount of cash required at closing for Sam and Joan will be?

$27,250

How is the sales price reflected on the closing form for the buyer and the seller?The sales price is a debit to the buyer and a credit to the seller When a complaint is investigated by DBPR it must be

legally sufficient. Legally sufficient means:

that an alleged violation of a Florida Statute, FREC or DBPR rule been submitted in writing.A broker listed a house at $300,000 and sold the home at 95% of the asking price. The listing broker paid out 45% of the total 6% fee to the selling broker, who paid the selling associate 60% of the amount that came to the office. How much did the selling associate get paid?

$4,617

Which statement listed below is the best example of mortgage fraud?A mortgage loan applicant omits pertinent information on the loan application form If John borrows $620,000 for his mortgage at 4.5% interest, what amount of interest will John pay in the first year of the loan?

$27,900

Which of the following items are necessary to create an agency relationship?A client, an agent, and a representation to a third party Which appraisal approach to value would be most suitable for a waterfront home with a high-end remodel on a lot that cannot be duplicated, in an area with many other remodels and sales?A market data or sales comparison approach The Real Estate Recovery Fund will never pay for: legal fees or punitive damages.In real estate, which of the following is correct about the term "title?" The term title is a concept referencing the rights associated with ownership.The FREC has the power to discipline licensees. What action can FREC not perform?Issue a jail sentence The purpose of the owner's title policy is to protect the:owner from forgery in the record and claims that may not have surfaced prior to closing.The term foreclosure means that the:property is sold in a forced sale to the highest bidder.John is a real estate licensee in Georgia who wants a Florida real estate license. As long as John remains a Georgia resident, which of the following is an option for John when acquiring a Florida license?John can pass a 40-question law exam and gain the license through Mutual Recognition A licensee has been notified that there is formal complaint against him as a result of findings by the probable cause panel. How long does the licensee have to answer the complaint?20 days John bought a waterfront lot with a setback requirement of 50 feet from the street. The lot is only 100 feet deep and drops off sharply at the water edge. John's architect tells him that they can build the dream house on the property if

the setback were 35 feet. John applies to the city for a:

variance.Every real estate brokerage sign must be located: on the entry door or close to it.Which characteristic of value and component, would cause the lender to refuse to make a new loan for a buyer?Transferability - the title is not marketable Taxes and insurance, are often prepaid at closing to establish the escrow account. On which page of the Closing Disclosure form will the buyer see an accounting of the escrow account set up?Page two, under other costs Which clause in a deed defines the ownership taken by the grantee, and clarifies the purpose of the deed?The Habendum Clause Which appraisal theory says that the maximum amount a buyer will pay is based on the price of the competing property?Substitution A seller tells a listing associate that he will not sell to members of a certain religion. Can the listing associate follow the seller's instructions?No, this is discriminatory and would be a violation of the Federal Fair Housing Act A real estate speciality that deals with property of more than four units, income production and tax advantages of

ownership is:

commercial real estate

A buyer is closing with a purchase price of $232,000, and a down payment of 10%. He will pay the doc stamps on the note and the intangible tax on the mortgage. What are the transfer tax charges to the buyer?$731 for the note; $417.60 for the mortgage Which items listed below determine if the payment will go up or down on an adjustable rate mortgage?The index and the margin A property is located next to a busy freeway; semi-trucks use the freeway all night long. After two years on the market, the seller reduced his price by 25%. Which loss of value has occurred?Economic or external obsolescence Which of the following statements is NOT correct regarding the escrow account for the brokerage?A broker can only have one escrow account John has a rental application for a unit in his four-plex from a man in a wheel chair. The man wants to install a ramp by the back door and change a cabinet in the bathroom to allow the wheel chair to slide under. What are John's choices as the unit owner?The modification cannot be refused; the tenant can pay and should restore to original condition upon move out There are advantages and disadvantages of real estate ownership; which items best describe the advantages?The tax advantages and potential for leverage What is a primary difference between joint tenancy and a tenancy in common?Property titled as a joint tenancy cannot be willed Which statement below is correct regarding the mortgage as a security document?The mortgage lien is a specific, voluntary lien Which statement is true regarding the quasi-legislative power of the FREC?Quasi-legislative power gives FREC authority to make rules to enhance the law A Planned Unit Development (PUD) is best described as a

(an):

area more dense than residential zoning, designed to maximize development by using green space.John is a sales associate who has complaints against him for making false statements about property and for giving advice about the purchase contract. This is the third time these same violations have been investigated. If John is found guilty of violating these two practices at the formal

hearing, the maximum fine John can face is:

$10,000

A buyer with a low credit score must pay two (2) discount points at closing to get his note rate at 4.25%. How does this affect the loan?The points are extra interest and increase the lender's yield.Which of the following actions could not be performed by an unlicensed assistant?Hold at an open house for a new listing A broker's records must be available for inspection during business hours. Who inspects the records?A DBPR employee or authorized representative The NW 1/4 of sections 16 and the NE 1/4 of section 17 contain how many acres?320 Who serves the Writ of Possession needed to evict when a tenant has not paid rent?The sheriff