General Flashcards
(132 cards)
1
Q
At what level is the desirability and cost of real estate affected by planning and zoning, property taxation, building and health codes and regulations, and building moratoriums?
A
Local level
2
Q
What is the purpose of the Florida real estate license law FS475?
A
To protect the public. The department is essentially a consumer protection agency.
3
Q
A broker who has passed the state broker examination and continues to work with their current employer in a sales associate capacity is called what?
A
A broker associate
4
Q
Is an applicant for a Florida real estate license required to be a resident of the state of Florida or to be a citizen of the United States?
A
No
5
Q
An applicant for a Florida real estate license is required to be a resident of the state of Florida or be a citizen of the United States is this true or false?
A
False
6
Q
What does NOLO CONTENDERE mean?
A
No contest
7
Q
True or false: Question one of the background questions on an application for sales associate license requires the disclosure of any criminal convictions including felony or misdemeanor convictions or pleas (other than minor traffic offenses) regardless of adjudication. Driving under the influence or DUI, is not a minor traffic offense and must be disclosed.
A
True
8
Q
How many brokers can a sales associate or a broker associate work for at a time?
A
1
9
Q
What department was created to provide licensing, oversight, and regulation of businesses and professions in the state of Florida?
A
The Department of business and professional regulation (DBPR)
10
Q
The Department of business and professional regulation (DBPR or the Department), was created to do what?
A
Provide licensing, oversight, and regulation of businesses and professions in the state of Florida.
11
Q
True or false: The Department of business and professional regulation enforces real estate license law?
A
True
12
Q
Who enforces real estate license law?
A
DBPR
13
Q
What is a special agent authorized to do?
A
Under agency law a special agent is authorized by the employer or principal to perform a single act.
14
Q
A broker employed under a single agency listing for the sale of a property is authorized to locate a purchaser on behalf of the owner. What is this an example of?
A
A special agent
15
Q
A party who has been granted authority to act on behalf of another agent is called what?
A
Subagent
16
Q
True or false: A sub agent has the same duties, including fiduciary, to the principal as the agent who is empowered by the principal.
A
True
17
Q
Is a sales associate a general agent of the broker, a sub agent of all the brokers principles, or both?
A
Both
18
Q
As a general agent and a sub agent of a broker, what duties does the sales associate have to the brokers principals?
A
The same duties as the broker.
19
Q
What is the role of a transaction broker?
A
To provide limited representation to a buyer, a seller, or both in a real estate transaction. This allows a licensee to facilitate a real estate transaction working with both the buyer and seller equally.
20
Q
A broker who accepts employment under a single agency agreement is called what?
A
Single agent
21
Q
True or false: representing both parties in a transaction in a single agency agreement would create an illegal dual agency.
A
True
22
Q
In Florida it is ____________ to represent both parties in a transaction.
A
Illegal
23
Q
What offers should be presented to the brokers employer (principal)?
A
Any and all offers including oral offers or offers made without a binder deposit.
24
Q
An employer of the broker is also called what?
A
Principal
25
True or false: A Florida broker can pay compensation, fees, or share commission with unlicensed individuals in exchange for soliciting or referring business.
False
26
What what act allows brokers to pay referral fees between real estate agent and broker's without disclosure?
Real estate settlement procedures act (RESPA).
27
In order for a Florida broker to pay a referral fee to, or Sherry commission with, a broker license or registered by another state or foreign country what must not happen in the transaction?
The out-of-state broker or foreign broker CANNOT participate in the transaction in ANY manner.
28
How many days from the date of the last parties demand, does a broker need to notify the commission concerning any escrow disputes?
15
29
A resident licensee who becomes a nonresident must notify the Commission of the change in residence within how many days?
60
30
A sales associate or broker associate must report any changes of employer or change of address within how many days to the Department?
10
31
Who must a broker associate or a sales associate report any changes of employer or change of address to?
The Department
32
Who does a resident licensee notify when they become a nonresident?
The Commission
33
When a broker fails to disclose information to a party, to whom the broker has such a duty, and that is material to his or her decision, what kind of fraudulent activity is this?
Concealment
34
In the disciplinary process, A licensee (respondent), in formal hearing, has a right to what?
Present evidence and cross-examine witnesses, and be represented by legal counsel. They may request that administrative law judge subpoena a witness.
35
Inducing an owner to list or sell on the basis that the neighborhood is deteriorating or becoming transitional due to an influx of minority persons is called what?
Blockbusting
36
Refusal by a lender to approve a mortgage loan based on a property being located in a certain geographical area, the age of the property, the income level of the residence, or the racial composition of the area is called what?
Redlining
37
In order to commingle a security deposit and advance rents with their own funds a landlord must post a ____________ __________, and Payton at 5% simple interest annually on the money held in this matter.
Surety Bond
38
If the landlord posts a surety bond, with whom must it be posted and where, and for what amount?
The clerk of the Circuit Court in the county in which the dwelling is located, in the amount of the total security holdings or $50,000 whichever is less.
39
If there is no claim for damages against the deposit, how many days does a landlord have to return the security deposit including accrued interest if any to the tenant upon vacating the property?
15
40
An increase in land area as moving water deposits soil in other than its original location is called what?
Accretion
41
An escrow account or trust account may be held where?
A commercial bank, title company with trust powers, credit union, or savings and loan association.
42
On personal transactions, such as a sales associate purchasing a property for personal benefit, what must a licensee do?
Disclose their status as licensees PRIOR to entering into serious negotiations.
43
The four tests used to determine real or personal property are?
Intent, relationship, method of annexation, and adaptation
44
Estate in severalty
Sole owner one owner
45
Tenancy in common
Two or more persons, may leave his or her interest in a will.
46
Joint tenancy
Two or more persons, upon death the surviving joint tenant's receive equal shares. Rights of survivorship.
47
What is the only legally necessary closet required on a deed?
Premises clause or granting clause
48
Quick claim deeds are most frequently used to what
Clear title defects(clouds)
49
A deed where the grantor promises to defend the title against any and all claims.
General warranty deed
50
What is the most common type of deed which provides the best protection to the grantee?
General warranty deed
51
Is a real estate contract does not specify the type of deed to be given what deed must be used
General warranty deed
52
What power allows local, state, or federal government, railroads, public utilities, and Public Housing Authorities to obtain ownership of private property?
Eminent domain
53
When exercising eminent domain what must the property being taken be used for?
For public use, such as build highways, schools, railroads, or public projects.
54
A lease in which the tenant pays a monthly base rent (flat fee) Plus a percentage of the annual or monthly gross sales of goods sold on the premises is called what?
Percentage lease
55
Real estate taxes is what type of lien?
Superior lien
56
The oldest and most accurate type of legal description method is called what?
Metes and bounds method
57
In A Township, section 1 starts where?
Top right corner
58
How many sections are there in the Township?
36
59
In a Township section 1 is directly under what section in the other Township above it?
36
60
The township consist of how many miles on each side?
6
61
In an entirely oral contract, within how many years must legal action be brought, in order to enforce the rights of the parties?
4
62
What type of consideration must a contract specify?
Sufficient consideration
63
What types of considerations may be sufficient?
Valuable consideration or good consideration
64
Money or anything of value that can be converted to money is called what type of consideration?
Valuable consideration
65
Love and affection, which cannot be expressed in terms of money, are called what
Good consideration
66
Complete meeting of the minds exists when?
Communication of acceptance has been done.
67
When is a contract created?
When the offer of one party is accepted and acceptance of the offer is communicated to the person who made the offer.
68
If communication has not taken place, does a contract exist? Does delivery of a contract show proof of communication?
No. Yes.
69
In order to be enforceable, what must a contract be?
Must be in writing
70
What statue was an acted to provide protection against fraud in real estate?
Statute of frauds
71
What does the statute of frauds require a contract to be in order to be enforceable?
In writing
72
How can an offer be terminated?
By acceptance, withdrawal, rejection or counter offer, ups of time, death or insanity, destruction of property.
73
What legal remedies can be taken for a breach of contract?
Suit for cancellation (rescission), suit for specific performance, sue for damages.
74
A suit for cancellation or rescission, in reference to a contract, does what?
Puts the parties back in their original positions.
75
In a breach of contract, if seller does not perform and a buyer requests deposit back, what type of damages is this considered?
Liquidated damages
76
In an as-is contract what must sellers disclosures?
Any material defects that could have a significant and reasonable impact affecting the property value.
77
Is an exclusive right of sale listing they bilateral or unilateral contract?
Bilateral
78
A contract in which the property owner promises to pay commission regardless of who sells the listed property is called what?
Exclusive right of sale listing
79
In an exclusive right of sale listing contract, if an owner sells the property themselves or sells it by using another broker, who is entitled to a commission?
The broker who was employed under the exclusive right of sale listing contract.
80
True or false: exclusive right of listing contracts must be in writing.
True
81
What is the best type of protection a broker can receive when it comes to residential listing contracts?
Exclusive right of sale listing contracts
82
Florida is a what type of mortgage theory state?
Lien theory state
83
What does the lien theory of mortgages allow a borrower to do?
Retain the ownership of the property during the loan period.
84
When the lender records the mortgage what does it create against the property?
A lien
85
They legal instrument that includes the borrowers promise to repay the loan with interest and contains the names of the parties, the rate of interest, the amount of money borrowed, and the loan repayment terms is called what?
Promissory note
86
Within how many days does a borrower receive a letter of satisfaction once the loan has been paid in full?
60
87
The clause that allows a lender to increase the rate based on the occurrence of an event, such as a change in the use of the property or consistently late payments is called what?
Escalation clause
88
Under the equal credit opportunity at what can lenders not discriminate against?
Race, color, religion, national origin, sex, marital status, age, or receipt of income from public assistance programs.
89
For FHA what is the maximum housing ratio and maximum total obligations ratio?
31% housing and 43% total obligations
90
The rights of borrower to cure the default before foreclosure rather than lose the property by paying the entire balance of the debt plus any interest and costs that has occurred since the default is called what?
Equity of redemption
91
PMI is required on conventional loans that exceed ______ LTV.
80%
92
Principal secondary lenders are what type of agencies?
Governmental or quasi-governmental
93
(RESPA) -the Real estate settlement procedures act, requires what?
Lenders to provide loan estimate the settlement cost no later than the third business day following application, provide loan applicants with the information booklet titled you're home alone toolkit, a closing disclosure to be completed and provided to bar work no later than three business days prior to closing, provide mortgage servicing disclosure statement to
borrower.
94
Truth in lending act (TIL act), requires lenders to provide information concerning the true cost of credit (REG Z). What information is shown?
APR which includes interest, credit life insurance, discount, and loan origination fees.
95
Concerning title, a seller is normally expected to provide what?
Title insurance or an abstract accompanied by an opinion of title as evidence of a marketable title.
96
How many square feet are in an acre?
43,560
97
How many acres are there in a section?
640
98
One township is how many miles square and contains how many sections?
6 mile Square, contains 36 mi.², 36 sections
99
What is the highest and best use of a partial real estate?
The legal use that generates the most return on the land and any improvements on the land when compared to alternative uses.
100
The highest and best use of land must be __________, ____________, ___________, and ____________ .
Legally permissible, physically possible, financially feasible, maximally productive
101
The most common type of value estimated by appraisers is?
Market value
102
The amount that remains after all assets of a business have been sold in a hurry, but not forced, sale and all liabilities have been paid, the value of a failing business that is not expected to continue, or the type of value used to estimate the minimum value of a profitable Business is called what?
Liquidation value
103
The principle that is the basis for all mathematical methods that are used by appraisers to estimate value is called what?
Principle of substitution
104
The principle that recognizes that no one would pay more for a property in the amount necessary to acquire an acceptable substitute is called what?
Principle of substitution
105
The cost appreciation approach uses what?
The effective age
106
How do you calculate the depreciation rate?
To obtain the depreciation rate you divide the effective age by the total economic life.
Effective Age
------------- = total depreciation rate
Total economic
Life
107
A building has a total economic life of 50 years, and the appraiser estimate it's current effective age to be 10 years. If the reproduction cost is 100,000, what total amount should be estimated for the accrued depreciation over the expected life of the building?
Answer: $20,000
10 \ 50 = .20
100,000 x .20 = $20,000
108
Operating Expenses DO NOT include _________ _________, text appreciation, capital improvements, personal expenses unrelated to the operation of the property, and income taxes.
Mortgage payments
109
How to calculate using the Direct Capitalization Technique.
PGI - V & C = EGI - OE = NOI
To get the value:
NOI divided by Capitalization Rate = Value
110
For tax purposes, On residential and low income investment properties what is the amount of years that is used to depreciate a portion of their investment?
27.5 years
| On the structure only
111
For tax purposes , On nonresidential investment properties how many years is allowed to depreciate a portion of their investment?
39
| On the structure only
112
An apartment complex was purchased for 200,000, closing costs were 10,000. An appraisal indicated the improvements represented 75% of the value of the property. What amount may the investor deduct each year for tax purposes?
$5757.27
200,000 + 10,000 = 210,000
210,000 x .75 = 157,500
157,500 \ 27.5 years = $5757.27
113
Profit made when an income property is sold is called what?
Capital gain
114
When referring to sales of businesses, assets that have no physical existence, but have monetary value are called what?
Intangible assets
Ex. Stock shares, trademarks, copyrights, research, and development expenses, noncompetition contracts, franchises, and goodwill
115
Concerning property tax rates, how is one mill expressed?
.001
116
On a property with an assessed value of 200,000 and a tax rate of 10 mills what are the tax levy (property taxes)?
200,000 x .010 = $2000 tax levy
117
By what date must a person own and reside on real property in Florida and makes the property his or her permanent residence able to claim homestead tax exemption?
January 1
118
What is the maximum homestead exemption allowed?
50,000
For all properties up to 50,000 assessed value, basic exception of 25,000 applies.
For properties between 50,001 to 75,000 assessed value an additional exemption for county and city in the amount of assessed value over the 50,000 is allowed.
For properties over 75,000 and additional 25,000 exemption is allowed first county and city taxes.
119
For property tax exemptions purposes, any individual, veteran or not, who is totally and permanently disabled is entitled to what percentage exception from payment of property taxes?
100% exempt
120
List some of the benefits of homeownership when in relation to the tax code.
Real estate property tax deduction, mortgage interest deduction, home equity interest deduction
121
Residential zoning is based on what?
Density
122
A variance maybe granted when the ordinance imposes and undo
___________ on an owner.
Hardship
123
If a brokers license is revoked, suspended, cancelled or etc., what happens to the licenses of the licensees whom he employs?
Placed in inactive status
124
How do you calculate the gross rent multiplier?
Comparable sales price
| DIVIDED by gross monthly rent = gross rent multiplier
125
What kind of representation does a transaction agent give?
Limited representation
126
If a broker closes a principal office, can the license be transferred to new office?
Yes
127
Estate in Severalty is what?
1 owner ONLY, no co-ownership
128
Tenancy in Common does NOT have what?
Rights of Survivorship
129
Tenancy for years refers to what?
Lease, specified period of time
130
What time of Corp. can register as a broker?
Sole Proprietorship
131
What is the grace period for real estate licensees to complete the 45 post licensing requirement?
No grace period, must be completed prior to license expiration.
132
Types of Involuntary Alienation
Escheat, eminent domain, adverse possession
