Florida Real Estate - Practice exam 100 Question Flashcards

Florida Real Estate - Practice exam 100 Question Flashcards Irving, the broker of Crustacean Realty, had conflicting demands from a buyer and a seller regarding an escrow deposit held by the brokerage. The settlement procedure Irving elects is to deposit the money with the court as he does not intend for the brokerage to make a claim on the deposit. Which of the following requests to the court would Irving make?Request an interpleader Which statement is associated only with the transaction broker relationship?The customer is not responsible for the acts of the licensee A broker wishes to be issued several broker licenses for

business reasons. He may:

Hold multiple licenses The brokers of Greater Gulf Realty and Brackish Bay Realty agreed to only work with clients near their own offices to allow each to be able to get more fees per home sold. This is illegal and an example of?Market allocation The formula to calculate adjusted basis is The purchase price + costs to buy the property + capital improvements Geraldo contracted with Sue for Sue to buy his property.When Geraldo backed out of the contract refusing to sell it to her for no valid reason, Sue took Geraldo to court. The judge ruled in Sue's favor. Sue's contract was Enforceable An agreement in which only one party promises to perform without receiving a reciprocal promise to perform from the other party is called a Unilateral Contract A property report is required when?Prior to a buyer signing a sales contract with a developer of 25 or more lots.Which matches the definition of a gross lease? When the tenant pays a fixed rent and the landlord pays the property expenses such as taxes and insurance.Utilities are paid as agreed in the lease.A rental investment property is scheduled to close on September 10. The buyer gets day of closing. The rent is $1900. How much is debited and/ or credited at closing and to whom?$1330 Credit to Buyer and $1330 Debit to Seller[Section 14, Slide 63] There are 30 days in September, so there are 21 days that the seller owes the buyer including the day of closing. Divide $1900 by 30 = 63.3333333333 x 21 days

=$1,330

Which scenario would not require that agency disclosure documents be maintained on record for five years The sale of a single family home where the broker acted as a transaction agent from the outset of the relationship

Effective age means:How old the building or house appears to be

A licensed real estate sales associate and broker desire to open a new real estate brokerage firm as general partners.They may Not do so

Which statement is TRUE regarding a title company holding the escrow funds?Within 10 business days after the date the broker requests written verification of receipt of the deposit, the broker must provide the seller's broker with a copy of the verification A developer purchases 2 lots with 120 ft. frontage each and paid $120,000 total for both lots. He divides these lots into

• lots of 60 front feet each and sells them for $600 per front

foot. What is the developer's percentage of profit?20%2 x 120 ft = 240 ;240 feet of frontage x $600 = $144,000Sale ; $144,000 - $120,000 = $24,000Profit; $24,000Divide by $120,000 = 0.2 or 20% Pam's home has an assessed value of $301,000. She qualifies for the Florida homestead exemption. The area

she lives in has the following taxes: County tax rate is 8.6

mills, City tax rate is 4 mills and the school district tax rate is 6.1 mills. How much will the property taxes be?[Section 18 Slide 31] $301,000 -$50,000 = $251,000 x .0126 (8.6 mils + 4 mils =12.6 mils) = $3,162.60; $301,000

• $25,000=$276,000 x .0061 (6.1 mils) = $1,683.60;

$3,162.60+ $1,683.60 =$4,846.20

Florida Law presumes that a real estate agent is acting as a Transaction Agent unless the intention to change the relationship has been determined appropriate by The broker

Receding water uncovers additional land. This is called:Reliction

A home was purchased with a down payment of $36, 000 and a loan of $200,000 at 6.5% for 30 years. Monthly payments are $1,264.14. What is the loan to value ratio?[Section 12 Slide 52] $36,000 + $200,000 = $236,000 Purchase price; $200,000 $236,000 = 0.8474576271 or 85% rounded.What are the elements of a valid contract? Contractual capacity of the parties, offer and acceptance, legality of object, and consideration.The Covenant of seisin, covenant against encumbrances, covenant of further assurance, covenant of quiet enjoyment, and the covenant of warranty forever are all included in what type of deed?General Warranty Deed Contracts that cannot be performed within one year and contracts conveying real property must be in writing and signed to be enforceable according to the Statute of Frauds What is the value of a property with a Net Operating Income of $175,000 and a capitalization rate of 7.5%?$2,333,333I (NOI) / R (Capitalization Rate) = V (Value); $175,000 .075 = $2,333,333.33 and round An appraiser found three comparable properties however she believed that one of the properties was significantly more relevant to the true value of the subject property. In this case, the appraiser would most likely Assign weighted values to each of the three properties Which sales professional is allowed to use the phrase REALTOR® to describe his services?A sales associate who has joined his local board of REALTORS® and the National Association of

REALTORS®

Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans differ in that FHA insures the mortgage and establishes a maximum mortgage amount; VA guarantees the mortgage and has no legislated down payment requirement If the Federal Reserve votes to lowers the discount rate, how will this likely affect interest rates on short-term credit?They will likely decrease

The indestructability of land refers to: Durability

Buyer Ralph didn't like the results of an inspection report.He requested to cancel his contract and demanded his

earnest money back. Seller Heather denied his request noting that he was one day past the time that was allotted to cancel the contract. Buyer Ralph claimed Seller Heather was miscounting the dates and both demanded that Broker Smith return the money to each of them. Broker Smith waited 15 days, hoping the situation would resolve, before notifying FREC of the conflicting demands. How long does Broker Smith have left to implement a settlement procedure?15 days

If religion is a protected class under the Fair Housing Act, how can a church restrict the renting of homes to only members of their church?Churches and private clubs are exempt as long as they do not discriminate in accepting membership.N 1/2 of NW 1/4 of SE 1/4 of section 8 contains how many acres?20 A Florida real estate sales associate who moves and becomes a nonresident of Florida must notify the Commission of the change of residency within how many days?10 days A subject property has four bedrooms. A comparable property sold for $275,000 with only 3 bedrooms. The appraiser attributes a $5,000 to the 4th bedroom. How is the adjustment made?Plus $5,000 to the comparable A sales associate received an earnest money deposit on Tuesday. The sales associate forgot about the check and gave it late to his Broker on Thursday. By when must the broker make the deposit?By the end of the day Friday What section is directly below section 7 in a township?18 When is a quitclaim deed normally used?To clear the title of possible trouble spots or clouds on the deed.When vacancy and collection losses are deducted from annual potential gross income and income from other

sources is added, the result is called:

Effective Gross Income When Bill rented his property he collected a deposit of $2,000 and an advanced rent payment of $1,000. Which of the following options is Bill NOT allowed to do with the money?Place the money in an interest bearing account and keep the interest for himself An owner of an apartment complex pays a previous tenant a $50 finder's fee for referring a person who becomes a new tenant. This arrangement is not Legalunless the previous tenant has a real estate license.The following of which groups are an example of Specific Liens Construction Lien and a Mortgage Lien A listing with the purpose of selling property and obtaining a specified amount for the owner is called what?A net listing A sales associate was issued a citation for failing to timely notify the Commission of her change of address. How many days does the licensee have to either pay the citation or file an objection to the alleged violation?30 days A due on sale clause in a mortgageMakes a mortgage non- assumable Which item would not be classified as a fixture? Kitchen tableQuestion Feedback[Section 8 Slide 49]

Buffer Zone is an area of land that:Separates different land use areas

The premises section of a deed must contain all of the

following EXCEPT:

Name of the lawyer giving an opinion of title While on a fishing trip in Montana, a Florida real estate sales associate pleads guilty to a misdemeanor. Is the