Real Estate Exam FL Section 1 1-100 Questions Flashcards

Real Estate Exam FL Section 1 (1-100) Questions Flashcards An owner wants to net $12,000 on the sale of his small vacant lot. He gives a broker an option to buy the lot at that price or nominate a purchaser. The broker pays $900 for the option. Before the option expires, the broker sells the property to a third person for $14,800. The broker advised the buyer during the negotiations that she was the optionee. Which of these is a TRUE statement?After paying the appropriate closing costs, the broker may keep the amount of money above and beyond the option of purchase price of $12,000 Chain of title isa history ownership, conveyances, and encumbrances The law that requires lenders to disclose the annual percentage rate (APR) is the ?Truth in Lending Act Smith and Brown owned real estate together. When Smith died last year, Smith's ownership interest passed to Brown, rather than Smith's surviving heirs. Most likely. Smith and Brown held title to the property as ?Joint tenants, with right of survivorship An owner owns a vacant mercantile building that measures 150 feet X 200 feet per floor and is four floors high. The owner wants to divide the space into bins and rent the bins to persons desiring storage for household goods. On each floor 20% of the available floor space will be needed for corridors and elevators and is unusable. Each storage bin measures 10 feet X 20 feet. The owner can construct in the building how many bins?480 Smith's annual property taxes are $1,600. If the tax rate is $2.50 per $100 of the taxable value, what is the taxable value of the property?

$64,000

Advertising for a brokerage corporation must include theRegistered name of the brokerage firm With regard to the ethical and legal constraints on activities of a Florida real estate broker, which of these is an INCORRECT statement?a broker should withhold facts that materially affect the value of the property and are not readily observable to the buyer On a monthly amortized 25 - Year mortgage held to maturity, each discount point raises the effective interest rate on a loan by approximately ?1/8 % Florida law requires that all appraisals performed by the real estate appraisers and real estate licenses conform to the ?uniform standards of professional appraisal practice A seller authorizes a broker to sell his house. As compensation, the seller agrees that the broker is entitled to all the monies over $60,000. This form of listing agreement is BEST described as a(n)... ?net listing A sales associate sells real estate for Real Estate, Inc. He is also a sales associate for Reality, Inc. This arrangement

is In violation of the Florida Real Estate Licensure Law

A sales associate lists and sells a 10-acre parcel with a cloud on title. The sales associate does not inform the purchaser of the defect, because the sales associate hopes it will be cleared before closing. In considering the actions of the sales associate, which is CORRECT statement?It is deemed fraudulent and dishonest dealing by trick or scheme Which of these is a characteristic of real estate?immobility An appraiser is using the sales comparison approach to value. The subject property has three bedrooms, and a comparable property has four bedrooms. If an appraiser determines that an extra bedroom is worth $5,000, what adjustment should the appraiser make?subtract $5,000 from the comparable property A prospective tenant pays a fee to a broker in exchange for a list providing rental information. However, the prospective tenant never obtains a rental. Provided he makes a timely demand, the prospective tenant is entitled to a refund of 75% An unlicensed personal assistant may be paid by salary A sales associate's license during a change of employer isCeased to be in the force In a platted subdivision, the legal description most often used is ?lot and block When Haley the landlord for 5606 Wagon Wheel Street, receives money given as a security deposit she may deposit the funds in one of three ways. Which is the INCORRECT way to deposit the security deposit?hold the money in a separate non-interest-bearing Florida Bank account and not commingle funds until due to the tenant A broker is employed by developer to sell lots in a 50-acre subdivision. The land encumbered by a blanket mortgage.A buyer purchases one of the lots for $10,000. The broker does not inform the buyer that the lot can only be released from the blanket mortgage upon a cash payment of $12.000 to the lender. Which of these is a CORRECT statement?Only the broker is in violation of Chapter 475, Florida Statutes Property management customarily includes all of these butrepresentation of the tenant The Government Survey System begins with a reference to the north - south line is called a ?Principal meridian Lenders in the mortgage market who supply mortgage funds directly to borrowers are known as ?primary lenders The mortgage clause that gives the lender the power to declare the entire unpaid mortgage loan due and payable and to foreclose on the property if the mortgagor does not remedy the default is best known as the ?acceleration clause The property tax disclosure summary cautions buyers that ?the seller's property tax amount might not be the amount the buyer may be obligated to pay next year A contract for the sale of a homestead owned by husband and wife as tenants - by - the entireties, can be specifically enforced only if both the husband and the wife signed the contract

Smith, Brown, and Jones all separate entities, are the only licensed brokers in Key West. They collectively agree to only accept listings on homes if the commision is 7.5% or more. Is their agreement legal?No, because it violates an Anti-Trust Laws of the United States Municipal ordinance that regulates the construction,altercation, and maintenance of structures are known as?building codes Sales associates are required to successfully complete the prescribed post-licensing education before the first renewal of their license A licensee found guilty of culpable negligence in a real estate transaction has made restitution to the victim, with no loss being sustained. Which of these may the Florida Real Estate Commission impose?suspend the individual's license When computing the state documentary stamp tax on a warranty deed for a property in Leon County selling at $91,250, what is the amount to be entered?

$639.10

According to the general rule of law, the term "consideration" in contract means ?an act, promise, or monetary compensation given in exchange for something A buyer broker agreement is ?an employment contract with the buyer Which of these statements is TRUE about kickbacks and rebates ?If a broker is to receive a kickback or rebate, all parties involved must have been advised prior to the time of the placement of the kickback or rebate In addition to Chapter 475, The Florida Statue that defines the general legal practice and procedure for the Department of Business and Professional Regulation (DBPR) and the licensees of all professions, including real estate is 455 The "highest and best use" of real property refers to the ?legal, possibly, and probable use of real estate that will give it the greatest present value while preserving its utility If a buyer dies before receiving knowledge of the acceptance of the purchase agreement by the seller, which of these is a CORRECT statement about the validity of the contract?The buyer's death terminated the offer by operation of law before contract arose Smith Grants an estate to Johnson "for the life of Jones" with the provision that the estate is to revert back to Smith,or his heirs,upon the death of Jones. The type of estate held by Johnson is a(n)?life estate If a real estate licensee believes a rule or guideline that substantially affects him is not valid and needs to be changed, resource should be sought by petitioning for an administrative determination before the Florida Real Estate Commission A sales associate with ABC Realty was contacted by Big Bank to do a Broker Price Opinion (BPO). Since the fee for this was small, the bank paid the salesperson directly. This situation is illegal, since the sales associate violated Chapter 475, F.S