PRACTIVE EXAM 100 QUESTIONS Flashcards

Post Licensing Education for FL Real Estate Sales Associate - PRACTIVE EXAM 100 QUESTIONS Flashcards When calculating a property's net operating income, such items as depreciation, income taxes, and property financing costs are excluded from consideration.property is likely to sell faster if it is priced at themedian value from all sections of the CMA.Properties that should be rejected as comparables for determining a subject property's value include all properties

EXCEPT

those sold within the previous six months A woman is searching for a new apartment. When she drives up to a particular apartment complex, she gets a wonderful impression and decides to rent if the price is right. The woman's first impression is called curb appeal.After completing a review of the CMA, a sales associate and seller agree on a list price of $240,000. Sellers' expenses, including brokerage fee, are estimated at $17,600, and prorations for taxes and interest paid in arrears are estimated at $6,700. The mortgage payoff is expected to be $196,500. What is the seller's equity?

43,500

A bilateral agreement spelling out the complete terms between a buyer and a seller for the transfer of a parcel of real property is a sales contract.Where the agreement of the parties is contrary to any of the provisions or standards in a preprinted sales contract, it is BEST to insert one or more special clauses in an addendum to the contract The optimum rental price for standard space in a local area is determined by market analysis The BEST location for making a listing presentation to prospective sellers is the kitchen or dining table.The process of evaluating the risks involved in issuing a new real estate mortgage is commonly called underwriting To ensure maximum future value of the properties, subdivision restrictions rely on the principle of conformity Under which contract does the seller warrant appliances to be in working order at closing?Florida REALTORS® Which duty is owed by the broker to a principal in a single-agency relationship that is NOT owed to a customer in a transaction broker relationship?Loyalty A person who sends a faxmust allow the recipient to opt out of getting more faxes.basic principle of value stating that a property's maximum value tends to be set by the cost of acquiring an equally desirable property is known as the principle of substitution.

The relationship between supply and demand for a particular type of multifamily property at its current rental level is reflected by the occupancy rate for that type of property.A comparable property sold two months ago for $138,000.It has four bedrooms (the subject property has three) and is 160 square feet larger as a result. An analysis shows that the additional room/space makes an $8,000 difference. The subject is newer and in slightly better condition, so you estimate a difference of $5,000. The resulting net adjustment for size and physical condition is -3000The answer is minus $3,000. The adjustments would be -$8,000 + $5,000 = -$3,000.The principle of value that says improvement to a property is worth only what it adds to the property's market value, regardless of actual cost, is called the principle of contirbution What is MOST important in a sales contract? Subject property's legal description Joining Toastmasters is an effective way to improve which skill?Oral communication What is a contract that may be terminated at the option of one of the parties?voidable A potential seller has a home worth $240,000 with a mortgage balance of approximately $199,000. The sales associate assures him that a 6% commission should be acceptable. The commission as a percentage of the seller's equity is 35% Targeted strangers in your database should be contacted at LEAST every other month A sales associate works an average of nine hours each day. Last year, he worked for 260 days and made gross income of $102,000. What was his hourly rate?

43.59 A sales associate who has been licensed for eight years did not renew his license this year. What is his status?Involuntary inactive A comparable property sold two months ago for $138,000.It has four bedrooms (the subject property has three) and is 160 square feet larger as a result. An analysis shows that the additional room/space makes an $8,000 difference. The subject is newer and in slightly better condition, so you estimate a difference of $5,000. Due to the difference in square footage and bedrooms, you make a minus $8,000 adjustment to the comparable.A new mortgage in the amount of $82,500 at 9% interest is used to finance the purchase of a home. The closing will be on September 15. Using the 365-day method and the exact number of days in the month, how will prepaid interest be handled on the closing statement?Buyer must pay $325.48 in prepaid interest at closing A seller agrees to pay four points on a loan of $82,500.How are the points to be handled on the closing statement?Debit seller $3,300.

High interest rates usually result inmore properties in listing inventory and a buyers' market.The component in an adjustable-rate mortgage that does NOT change from year to year is the margin The ratio of monthly housing expenses to monthly income is the total obligations In the Florida REALTORS® contract, if a survey shows an encroachment, the encroachment will be treated as a title defect.The BEST and least expensive method of renting or leasing residential properties is the use of referrals from satisfied tenants After completing a review of the CMA, a sales associate and seller agree on a list price of $240,000. Sellers' expenses, including brokerage fee, are estimated at $17,600, and prorations for taxes and interest paid in arrears are estimated at $6,700. The mortgage payoff is expected to be $196,500. What is the estimated net proceeds to the seller?

19,200

The monthly report of housing starts isan extremely important economic indicator.Which FSBO activity is more likely to generate a listing?Visiting The BEST way to acquire product knowledge is to be in the marketplace MOST listings expire because they areoverpriced City and county taxes are $760. The closing date is September 15, and the buyer is charged for the day of closing. Using the 365-day method, what is the proration of taxes between the seller and the buyer?Debit seller; credit buyer $535.12The answer is debit seller; credit buyer $535.12. The daily rate for property taxes is $2.0822 ($760 ÷ 365). The seller has occupied the property for 257 days. 257 × 2.0822 = $535.12.A person wishing to avoid liability under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, claiming innocent purchaser status, must exercise due diligence by investigating the property, usually in the form of an environmental audit.Which is NOT a type of operating expense depreciation A property is likely to sell faster if it is priced at the"sold" section of the CMA What is the MOST persuasive argument to help get a FSBO to list her house?She is unlikely to "save" the commission.The three components of a full property title report are a physical inspection of the property, a search of the public records, and survey When presenting an offer, a sales associate is in a better position to get an acceptance when the buyer has been preapproved by a lender.The first step when meeting the sellers for a listing appointment is to break the ice.When selling his property, a sales associate failed to disclose the fact that a person died in the home last year.The sales associate and his broker can have the court dismiss the suit.A comparative market analysis (CMA) with adjustments assumes that adjustments for differences have been made to the comparable property.

A real estate contract given to one broker as sole agent for the sale of an owner's property, with a commission going to that broker regardless of who actually sells the property during the contract period, is an exclusive-right-to-sell listing.The relationship between a property's net operating income and its present value is the capitalization rate The monthly payment for principal and interest is $663.81.Annual insurance is $720. City and county taxes are $760 annually. Mortgage insurance premium is $50.18 per month, what is the total monthly payment (PITI) on the mortgage?$837.32.Monthly payment is calculated by adding principal and interest (given in the problem), and 1/12 of the taxes, hazard insurance, and PMI. $663.81 principal and interest

• $63.33 taxes + $60.00 insurance + $50.18 PMI =

$837.32 total.A buyer expects to live in his new home for about five years. He is shopping for a new $100,000 mortgage. With no points, he can get a 30-year 8% fixed rate mortgage with principal and interest payments of $733.76. Another lender has a 7.75% mortgage (payments of $716.41) with one point. How many months will it take the buyer to break even on the points if he takes the lower interest loan, using simple arithmetic 57.6 Which is FALSE about fair housing?An apartment building owner may assign families with children to one particular building if older people live in the other buildings.A sales associate hires a licensed personal assistant. The personal assistant is paid a salary of $1,000 per month and 15% of the sales associate's share of commissions. Which is TRUE?The salary may be paid by either the sales associate or the broker. The broker must pay the commission Callers who are asking about property they saw from a sign usually ask for the price.What is the difference between effective gross income and net operating income?operating expenses At the time a listing agreement is negotiated, the listing broker should NOT discuss with the seller the sellers religious preferenace Which is the LEAST likely to help a sales associate obtain a listing?Sympathy Trees, landscaping, driveways, fences, pools, and other improvements of a home should be valued by the listing sales associate at contribution to value A licensee should work hard to clear contract contingenciesas soon as possible after the contract has been signed Yesterday, a broker obtained a 90-day listing contract that has a self-renewing provision extending the agreement an additional 60 days after expiration unless either party cancels in writing. The listing contract is void A sales associate should normally avoid spending time on a FSBO prospect who does not need to sell