Lesson 1

Question 1

How is the binder deposit shown on the Closing Disclosure Form?

Answer 1

Credit to the buyer only.

Question 2

How is the intangible tax typically noted on the Closing Disclosure Statement?

Answer 2

Buyer debit only.

Question 3

What are the set of guidelines called that must be followed by appraisers?

Answer 3

USPAP (Uniform Standards of Professional Appraisal Practice).

Question 4

When a licensee channels home seekers to or away from a particular neighborhood because they are a member of a protected class.

Answer 4

Steering (steer buyers)

Question 5

When a licensee uses the entry or rumor of the entry, of a protected class into a neighborhood to persuade homeowners to sell their property.

Answer 5

Blockbusting (Blockbust sellers)

Question 6

When lenders or insurance companies deny loans or insurance coverage based on discriminatory practices.

Answer 6

Redlining

Question 7

Which of the following is a list of the required elements to make a contract valid?

Answer 7

competent parties, offer and acceptance, legal, consideration

Question 8

Which of the following is a list of the required elements to make a contract valid?

Answer 8

competent parties, offer and acceptance, legal, consideration

Question 9

Which of the following is a set of administrative rules developed by the FREC, (Florida Real Estate Commission)?

Answer 9

Chapter 61j2

Question 10

Who is responsible to deliver the HOA, (home-owner’s association) disclosure document to the buyer?

Answer 10

The seller/owner

Question 11

Which expenses associated with a principal residence are deductible for income tax purposes?

Answer 11

Property taxes, mortgage interest, points, and mortgage loan origination fees

Question 12

What is the penalty for a first-time minor violation and how many days does a licensee have to correct the violation?

Answer 12

Notice of non-compliance/15 days

Question 13

How do you find the capitalization rate of a property if you have the net operating income and the value, (sales price)?

Answer 13

Net operating income divided by the value, (sales price)

Question 14

If a real estate agent was charged with a first-degree misdemeanor, what law were they breaking?

Answer 14

Violating rental list laws

Question 15

How do you find the value of a property, (sales price) if you have been given the capitalization rate and the net operating income?

Answer 15

The formula is the net operating income divided by the capitalization rate

Question 16

Which of the following is a list of everything that is required to be included on a brokerage office sign?

Answer 16

The trade name of the brokerage if one is used, the broker’s name, and the word licensed real estate broker.

Question 17

What is true about the members of the FREC?

Answer 17

There are seven members of the FREC. Four are brokers that have been brokers for at least five years, one is any of the three types of licensee, and two are consumers also called civilians or laymen.

Question 18

What is the maximum amount of time that The Florida Real Estate Commission can suspend a licensee’s license?

Answer 18

10 years

Question 19

Which of the following lists contain contracts that a licensed broker is legally permitted to prepare?

Answer 19

Listing contracts, buyer brokerage agreements, and option contracts

Question 20

Which of the following contains the right of survivorship?

Answer 20

Joint tenancy and estate by the entireties

Question 21

Using the entry or rumor of the entry of a protected class into the neighborhood to induce a homeowner to list their property is called

Answer 21

blockbusting.

Question 22

Three individuals purchase a property with no right of survivorship. Their estate is referred to as a

Answer 22

tenancy in common.

Question 23

Which of the following approaches to estimating real property value would an appraiser use to appraise a courthouse?

Answer 23

The cost approach

Question 24

When a lender declares all the unpaid balance due and payable as a result of default, the lender is exercising which clause in a mortgage?

Answer 24

Acceleration clause

Question 25

Which statement about the Closing Disclosure Form is true?

Answer 25

Unpaid property taxes are a debit to the seller, credit to the buyer.

Question 26

The comparable sales approach, often just called the sales approach is a direct application of which principle?

Answer 26

The principle of substitution

Question 27

Which of the following lists the protected classes of the Civil Rights Act of 1968 including amendments?

Answer 27

race, religion, sex, color, national origin, familial status, handicap

Question 28

Which type of easement is acquired by continually using another person's real property for the statutory period when such use is adverse to the owner's interest and is created after 20 years of open, continuous, uninterrupted use?

Answer 28

An easement by prescription

Question 29

What Florida Statute states that the seller is required to provide the buyer with the Homeowners Association Disclosure Summary.

Answer 29

F.S. 720

Question 30

Which of the following is true regarding an option contract?

Answer 30

An option contract is an agreement to keep open for a specified period of time an offer to sell or lease real property.

Question 31

Prospective buyers of residential property must be presented a disclosure summary , (property tax disclosure) concerning ad valorem taxes before or at the time of execution of the contract for sale. What is the purpose of this disclosure summary?

Answer 31

The purpose of the property tax disclosure summary is to caution prospective buyers that they cannot rely on the amount of the seller’s property taxes as an indication of the amount the buyer will have to pay in taxes.

Question 32

Which of the following business entities may not register to broker real estate with the Department of Business and Professional Regulation?

Answer 32

Corporation sole

Question 33

Which of the following types of mortgages could be accompanied by a funding fee?

Answer 33

A VA guaranteed loan

Question 34

Which of the following types of mortgages would most likely contain a partial release clause?

Answer 34

Blanket mortgage

Question 35

includes both real and personal property as security for the debt.

Answer 35

A package mortgage

Question 36

Which of the following consist of an owner’s rights to underground minerals, called mineral rights?

Answer 36

Subsurface rights

Question 37

Which estate features the right of survivorship?

Answer 37

Estate by the entireties

Question 38

Which of the following is a non-free hold estate, also called a leasehold?

Answer 38

Tenancy at will

Question 39

If a widow owns a timeshare, which applies?

Answer 39

This is a free hold estate

Question 40

If a person dies intestate without heirs, the principle of law applying to disposition of the person’s real property is

Answer 40

escheat

Question 41

an agreement to substitute a new party for the original one in a contract.

Answer 41

novation

Question 42

Which of the following is a list of the required elements to make a contract valid?

Answer 42

competent parties, offer and acceptance, legal, consideration

Question 43

What type of easement would be created if the water company had the right to dig up an owner's property to install a water pipe?

Answer 43

In gross

Question 44

If a real estate agent was charged with a first-degree misdemeanor, what law were they breaking?

Answer 44

Violating rental list laws

Question 45

Which entity may register as a real estate brokerage?

Answer 45

Limited liability corporation

Question 46

What is true about the members of the FREC?

Answer 46

There are seven members of the FREC. Four are brokers that have been brokers for at least five years, one is any of the three types of licensee, and two are consumers also called civilians or laymen.

Question 47

Which of the following is an example of an "implied" easement?

Answer 47

An encroachment

Question 48

Which statement about the Closing Disclosure Form is true?

Answer 48

Unpaid property taxes are a debit to the seller, credit to the buyer.

Question 49

The comparable sales approach, often just called the sales approach is a direct application of which principle?

Answer 49

The principle of substitution

Question 50

What Florida Statute states that the seller is required to provide the buyer with the Homeowners Association Disclosure Summary.

Answer 50

F.S. 720

Question 51

What is the formula for finding the taxable value of a homestead property?

Answer 51

Assessed value - homestead exemptions = taxable value

Question 52

Which of the following consist of an owner’s rights to underground minerals, called mineral rights?

Answer 52

Subsurface rights

Question 53

Which of the following is a free hold estate?

Answer 53

Fee simple

Question 54

Which of the following is a free hold estate?

Answer 54

Fee simple

Question 55

Which of the following is a free hold estate?

Answer 55

Fee simple

Question 56

Which of the following is a non-free hold estate, also called a leasehold?

Answer 56

Tenancy at will

Question 57

If a widow owns a timeshare, which applies?

Answer 57

This is a free hold estate

Question 58

Which of the following is the simplest, yet most comprehensive form of ownership?

Answer 58

Fee simple

Question 59

What is the penalty for providing inaccurate and out of date rental lists?

Answer 59

First degree misdemeanor

Question 60

Which of the following describes unliquidated damages?

Answer 60

Unliquidated damages are damages that ARE NOT specified in the contract and are also called compensatory damages.

Question 61

The statute of frauds states that

Answer 61

all contracts that convey any interest in land must be in writing to be enforceable.

Question 62

Which mortgage clause, in a title theory state, provides the conveyance of title to the lender is defeated when all the terms of the agreement have been satisfied and therefore the mortgagor receives legal title, (the deed).

Answer 62

The defeasance clause

Question 63

If a person dies intestate without heirs, the principle of law applying to disposition of the person’s real property is

Answer 63

escheat

Question 64

Which of the following is true regarding an “as is” provision in a sale contract?

Answer 64

The “as is” provision does not relieve the seller or the licensee of the duty to disclose all known facts that materially affect the value of residential real property.

Question 65

What does novation mean?

Answer 65

Novation means there is an agreement to substitute a new party for the original one in a contract.

Question 66

A sales associate and his former broker have a dispute over a commission. What recourse does the sales associate have to resolve the commission dispute?

Answer 66

The sales associate can sue his former broker and request the civil courts resolve the matter.

Question 67

Which of these forms must be signed or initialed and by whom?

Answer 67

Consent to transition to transaction broker disclosure form/principal

Question 68

Business entities that CAN register to broker real estate

Answer 68

Corporations General partnerships Limited partnerships Limited liability companies Sole proprietorships

Question 69

Business entities that CANNOT register to broker real estate

Answer 69

Corporation sole Joint ventures Business trusts Cooperatives associations Unincorporated associations

Question 70

What is the violation for practicing real estate without a real estate license

Answer 70

Third degree felony

Question 71

A landlord who does not intend to make a claim on the security deposit has

Answer 71

15 days to return deposit

Question 72

A landlord who is making a claim on the deposit has

Answer 72

30 days to notify the tenant of the claim

Question 73

After receiving written notification of a landlord’s claim on the deposit, the tenant has

Answer 73

15 days to object to the claim in writing

Question 74

A valid deed needs to be

Answer 74

Witnessed

Question 75

An escheat is not

Answer 75

An encumbrance