Florida Real Estate Sales Associate Practice Exam Flashcards

Florida Real Estate Sales Associate Practice Exam Flashcards Which statement is TRUE regarding an "as is" provision in a sale contract?A)The "as is" provision can be used to eliminate the duty to disclose material defects.B)An "as is" provision prohibits the buyer from performing a property inspection.C)The "as is" provision does not eliminate the duty to disclose all known material defects.D)The "as is" provision may not contract to shield themselves from possible fraud charges brought on by neglecting to disclose known material defects in the property. The "as is" provision does not prohibit the buyer from performing a property inspection.C)The "as is" provision does not eliminate the duty to disclose all known material defects.Sellers cannot use "as is" wording in a contract to shield themselves from possible fraud charges brought on by neglecting to disclose known material defects in the property. The "as is" provision does not prohibit the buyer from performing a property inspection.When mortgage interest paid in arrears on a loan assumption is prorated, the amount up to the day of closing isA)debited to the seller, credited to the buyer.B)debited to the buyer, credited to the seller.C)not shown on the closing statement.D)debited to the seller.

• debited to the seller, credited to the buyer.Mortgage

interest is paid at the end of the period (in arrears). It is therefore charged to the seller up to the date of closing, and that amount is credited to the buyer in the offsetting double entries.The intangible advantage a business enjoys over its competitors is known asA)liquidity.B)cash flow.C)goodwill.D)leverage.

• goodwill.Goodwill is the intangible asset attributed to a

business's reputation and the expectation of continued customer loyalty.If both buyer and seller claim the earnest money deposit in a broker's escrow account, how much time does the broker have to notify the FREC in writing?A)15 business daysB)15 calendar daysC)30 business daysD)7 calendar days

• 15 business daysIf a broker receives conflicting

demands on escrowed property, the broker must notify the FREC, in writing, within 15 business days of the party's last demand A joint venture usually is created toA)simplify appraisals.B)carry out a single project.C)take advantage of business opportunities.D)quiet title.

• carry out a single project.A joint venture is a temporary

form of business arrangement. The joint venture structure is normally used when two or more parties combine their efforts to complete a single business transaction or a fixed number of business transactions.A real estate licensee is interested in obtaining an option on property as the true optionee. Which statement is FALSE regarding a real estate licensee's obligations?A)The licensee must divest (relinquish) the role as licensee for this transaction.B)The licensee must inform the owner that the licensee is personally interested in acquiring an option on the property.C)In the option contract, the licensee must pledge a nominal consideration.D)The licensee must inform the owner that the licensee is not functioning as a real estate agent in this transaction.

• In the option contract, the licensee must pledge a

nominal consideration.The licensee must give a valuable consideration (substantial and not nominal) for the option contract A prospective tenant was recently transferred to Jacksonville. He was not familiar with the city so he

purchased a rental list for $100 from a local real estate company. The prospective tenant referred to the list while looking for an apartment but was unable to locate a suitable unit. He has requested a refund of his $100. Which applies?A)He is not entitled to a refund because there was nothing wrong with the list.B)He is entitled to a refund of $75 if requested either verbally or in writing within 30 days.C)The broker is guilty of a first degree misdemeanor.D)He is entitled to a refund of his $100 if requested in writing within 30 days.B)He is entitled to a refund of $75 if requested either verbally or in writing within 30 days.If a prospective tenant

does not obtain a rental, the prospect is entitled to a refund of 75% of the fee paid if requested within 30 days of the contract/receipt date. The demand for a refund may be verbal or in writing.Besides ownership between spouses, the MOST frequently used form of co-ownership of property isA)tenancy by the entirety.B)joint tenancy.C)tenancy in common.D)tenancy at will.

• tenancy in common.A tenancy in common is the most

frequently used form of co-ownership, except for ownership between spouses.An item that is credited to the seller is theA)assumed mortgage.B)unpaid property tax.C)seller prepaid items.D)purchase money mortgage.

• seller prepaid items.The only entries that are a credit to

the seller are the purchase price and any items the seller prepaid.Which business entity would obligate all principals as personally liable for organization-incurred debts?A)Corporations for profitB)Limited partnershipsC)Limited liability companiesD)General partnerships D)General partnershipsIn a general partnership, each of the partners is responsible for all the debts incurred in conducting the business.An individual who has fulfilled all of the academic and experience requirements for a real estate broker's license, but who operates as a sales associate in the employ of a supervising broker is anA)active broker associate.B)active sales associate.C)inactive broker.D)active broker.A)active broker associate.Section 475.01, F.S., defines a broker associate as, "a person who is qualified to be issued a license as a broker but who operates as a sales associate in the employ of another." Additionally, to operate as a real estate licensee, the license must be in active status.Three persons were co-owners of a parcel of real property.One owner died, and his ownership passed to the two remaining co-owners. The deceased owner wasA)a joint tenant.B)a tenant by the entirety.C)a tenant in common.D)a tenant at will.

• a joint tenant.A joint tenancy features right of

survivorship. If a co-owner dies, that owner's interest goes to the surviving co-owners, not to the deceased owner's heirs.A woman and her sister, who are both married, want to go into business together and are purchasing a parcel on which to build a restaurant. To protect each of their families, how should they take title?A)Life estateB)Estate for yearsC)Tenancy in commonD)Joint tenancy

• Tenancy in commonA tenancy in common provides the

best protection for each owner's families because each tenant in common's legal interest will descend to the legal heirs.A lower assessment for land classified as being for agricultural purposes is protected by laws known asA)green belt laws.B)blue belt laws.C)homestead laws.D)constitutional homestead laws.

• green belt laws.Florida law authorizes county property

appraisers to assess agricultural land by a more favorable method than that used for other properties. Florida's Green Belt law was designed to protect farmers from having taxes increased just because the land might be suited for development.

A man who died without leaving a will (intestate) owned two farms and a home. The court appointed a personal representative to dispose of the real property in the decedent's estate. The personal representativeA)must register with the DBPR if he expects to be paid for his work.B)must have the clerk of the circuit court auction any property sold.C)must dispose of all real property through an active real estate broker.D)is exempt from a real estate license.

• is exempt from a real estate license.Pursuant to Section

475.011, F.S., persons acting within the limitations of their duties as designated by a will, proper court, or statutory authority to serve as a personal representative or trustee are specifically exempted from licensure.The term procuring cause is most significant in which type of listing?A)Exclusive right-to-sellB)NetC)Exclusive-agencyD)Open

• OpenIn an open listing, the owner gives a listing to a

number of brokers and also reserves the right to sell the property himself. The seller is not obligated to pay a commission to any broker except the broker who first finds a buyer to purchase the property. In an open listing, the broker who is the procuring cause is the only broker entitled to compensation.A buyer is assuming the seller's existing mortgage. Which agreement relieves the seller of liability for the assumed mortgage?A)NovationB)Estoppel certificateC)HypothecationD)Assignment

• NovationA novation makes the buyer solely responsible

for a default by releasing the seller as a party to the mortgage.To be valid, a real estate sale contract MUST containA)a notary's seal.B)evidence of two witnesses' signatures.C)an earnest money deposit.D)an offer and acceptance.

• an offer and acceptance.An essential element of a valid

real estate contract is an offer and acceptance (or a meeting of the minds).The legal term that applies when two real estate brokers share office space in such a manner that the public is deceived into believing that a partnership exists is referred to asA)an ostensible partnership.B)a limited partnership.C)a quasi-corporation.D)a quasi-joint venture.

• an ostensible partnership.An ostensible partnership

(also called an quasi-partnership) exists where there is not a real partnership but the parties act, or do business, in such a manner that the public, having no knowledge of the private relations of the parties, would reasonably be deceived into believing that a partnership exists.One mortgage clause NOT normally found in a VA or FHA mortgage is theA)prepayment penalty clause.B)acceleration clause.C)redemption clause.D)subordination agreement.

• prepayment penalty clause.A prepayment penalty

clause provides for the lender to charge a penalty for early payment. Both FHA and VA mortgages allow early payment of the debt without penalty.The only active general partner in a real estate brokerage partnership has his license suspended. All of the licenses of the sales associates in that brokerage areA)not affected.B)canceled.C)suspended.D)placed in inactive status.

• placed in inactive status.A sales associate's license is

placed in inactive status when an employer's license is suspended or revoked. The sales associate is, however, registered as active under another broker as soon as new employment is secured.Can a property owner give a sales associate power of attorney to draft a lease?A)No, only attorneys may draft leases for others.B)Only brokers may act as a power of attorney.C)Yes, with the broker's consent.D)Yes, provided the power of attorney authorizes a licensee to perform such an act.

• No, only attorneys may draft leases for othersOnly

attorneys may draft leases on someone else's behalf. A property owner may draft a lease for a property that the owner owns in severalty, but owners may not delegate that authority to nonattorneys.