Practice Exam 1 Flashcards by Yulia Milana

A real estate appraiser is paid a

A. fee based upon seniority
B. fee based upon time and difficulty of the appraisal
C. fee based upon the value of the property appraised
D. commission based upon the value of the property

B. fee based upon time and difficulty of the appraisal

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Absentee ownership has increased the demand for which area of brokerage?

A. business opportunity brokerage
B. commercial sales
C. agricultural sales
D. property management

D. property management

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The planning commission has an authority to approve

A. building permits
B. deed restrictions
C. escheat
D. a subdivision plat map

D. a subdivision plat map

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When a developer gives land to a governmental body it’s called

A. eminent domain
B. condemnation
C. lis pendens
D. dedication

D. dedication

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A licensee that markets, leases and maintains property for someone else is engaged in

A. property management
B. business brokerage
C. universal agency
D. estoppel

A. property management

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A licensee must disclose the agency relationship and the responsibilities of that relationship to the public in all

A. residential sales
B. residential leasing
C. real estate appraisals
D. real estate auctions

A. residential sales

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When FREC passes or revises rules, they do so under their _____duties and responsibilities

A. ostensible appeal
B. quasi-executive
C. quasi-judicial
D. quasi-legislative

D. quasi-legislative

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Grounds for suspension or revocation of a real estate license would NOT include

A. not giving the proper agency disclosure
B. falsifying information on a license application
C. not being a resident of Florida
D. false advertising

C. not being a resident of Florida

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Sandy works as a sales associate for a broker and has been asked to work weekends for developer to sell new homes on commission. To work for the developer, Sandy must

A. transfer her license from the broker to the owner-developer
B. notify the broker where she can be found on weekends
C. contact the state and be issued a group license
D. contact the state and be issues multiple licenses

A. transfer her license from the broker to the owner-developer

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Before the first renewal of a Florida real estate license, the license law requires that the licensee complete a

A. continuing education course
B. minimum number of transactions
C. post-licensing course
D. REALTOR orientation course

C. post-licensing course

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In a brokerage corporation, the officers and directors can be active or inactive brokers or nonlicensed registered persons. If someone that is nonlicensed registered wants to become a broker, he or she

A. must file an application with the Secretary of State
B. only need to take 40-question law exam
C. must qualify the same as anyone else would
D. must have 2 years of experience in the real estate business

C. must qualify the same as anyone else would

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Which would be exempt from the real estate licensing law?

A. an apartment manager in an on-site rental office renting for 2 years
B. a condominium manager leasing units for 2 years on salary
C. a mortgage broker negotiating a lease for 1 year
D. a person who rents mobile home lots

D. a person who rents mobile home lots

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The best protection that the public has during a real estate transaction is(are)

A. the National and State Association of REALTORS
B. the punishment of licensees dealing dishonestly
C. the high ethical standards of real estate agents
D. FREC and the license law

D. FREC and the license law

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A group license

A. allows a broker to have branch offices
B. allows a sales associate to work for more than one broker
C. may be held by sales associate broker associate
D. allows a broker to qualify more than one brokerage firm

C. may be held by sales associate broker associate

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The following are exempt from F.S. 475 EXCEPT

A. trustees for an estate
B. personal representatives for an estate
C. mortgage brokers engaged in financing activities
D. business brokers

D. business brokers

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When a broker holds more than one broker license, he or she

A. holds multiple licenses
B. is in violation of the license law
C. must register one as a branch license
D. can have only one active at a time

A. holds multiple licenses

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General partners in a brokerage partnership that are not qualified to perform the services of real estate must be registered

A. as inactive sales associates
B. as ostensible partners
C. as inactive broker associates
D. for identification purposes

D. for identification purposes

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Bill’s license expired on September 30, 2003. On February 14, 2004 he wants to renew it. If it is not his first renewal, he must

A. start over with a pre-license course
B. pay a late fee and complete two 14-hour continuing education classes
C. pay a late fee and complete 14 hours of continuing education
D. pay a late fee and complete 45 hours of post-license education

C. pay a late fee and complete 14 hours of continuing education

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Ron and his wife have real estate licenses before he enters the military. Ron is stationed in Washington, DC., and his wife accompanies him there. If they make their licenses inactive

A. only Ron is exempt from renewal requirements until 6 months after he is discharged

B. only Ron is exempt from renewal requirements until 12 months after he is discharged

C. Ron and his wife are exempt from renewal requirements until 6 months after Ron’s discharge

D. Ron and his wife are exempt from renewal requirements until 12 months after Ron’s discharge

C. Ron and his wife are exempt from renewal requirements until 6 months after Ron’s discharge

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If a sales associate works for broker, and that broker loses his license, the sales associate’s license will be

A. unaffected
B. suspended
C. revoked
D. involuntary inactive

D. involuntary inactive

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The Florida Real Estate Commission may not

A. impose imprisonment as a penalty

B. pass rules to implement the license law

C. make determination of violations

D. establish licensing fees

A. impose imprisonment as a penalty

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Karl’s license expired on September 30, 2003. On February 10, 2007 he wants to activate it again. Which is correct?

A. He must complete 28 hours of continuing education

B. His license is null and void

C. He must complete 42 hours of continuing education

D. He must complete 45 hours of post-license education

B. His license is null and void

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A real estate broker has entered into a single agency relationship with the sellers of a three-bedroom, two-bath house. One of the agents in that broker’s office has found an investor wanting to hire the brokerage firm as a single agent. For the investor to be shown this seller’s house

A. the broker can work as a dual agent for both the buyer and the seller

B. this would be legal as long as the broker assigns a designated agent for each party

C. The seller must be informed that the brokerage firm is representing the buyer

D. both the seller and the investor must agree to transition to transaction broker status

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A seller about to enter a fiduciary relationship with a brokerage firm must be given

A. Single Agency Notice

B. Transition to Transaction Broker Notice

C. Transaction Broker Notice

D. No Brokerage Relationship Notice

A. Single Agency Notice

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25. If a broker instructs his sales associate not to show properties to people of a certain race, the sales associate should A. ignore the broker's instruction B. follow the broker's instruction C. ask the broker to put instruction in writing D. find a new employer

D. find a new employer

26. What form requires the signature of all parties? A. No Brokerage Relationship Notice B. Transaction Broker Notice C. Single Agent Notice D. Transition to Transaction Broker

D. Transition to Transaction Broker

27. The agency disclosure forms developed by the state must be used in which instance? A. commercial leasing B. residential leasing C. residential sales D. residential auctions

C. residential sales

28. A broker owns which duty to a customer? A. full disclosure B. avoid adverse interest C. obedience D. disclose known facts affecting the value of residential property

D. disclose known facts affecting the value of residential property

29. All advertising of listed property must contain the A. name of the sales associate B. telephone number for the brokerage firm C. name of the brokerage firm D. telephone number of the sales associate

C. name of the brokerage firm

30. Sales associate Glenn works for broker John. If Glenn receives an escrow deposit on Tuesday, he should A. deliver it to his broker by Friday (third business day) B. hold deposit until contract is accepted C. deliver it to his broker immediately (next business day) D. deliver it to his escrow account immediately

C. deliver it to his broker immediately (next business day)

31. A broker may not hold the escrow deposit in a A. savings association B. commercial bank C. credit union D. mutual fund

D. mutual fund

32. Listings obtained by a sales associate become the property of the A. employing broker B. listing sales associate C. Multiple Listing Service D. local association of REALTORS

A. employing broker

33. A broker sells a rental list to a prospective tenant for $200. In a written agreement, the broker states that the fee is nonrefundable. This is A. legal because it was disclosed in advance B. illegal under F.S. 475 C. legal but not ethical D. legal because the fee was less than $500

B. illegal under F.S. 475

34. For a sales associate to use a trade or fictitious name, it A. must be registered with the county clerk B. must be registered with FREC C. would violate F.S. 475 D. must be registered with the Secretary of State

C. would violate F.S. 475

35. Jim is a sales associate applicant but has failed the state exam twice. After reviewing his most recent exam, be feels that some of the questions he missed were really correct and marked wrong in error. Jim may A. file a complaint against the testing company B. request a retest at no charge C. file a written objection to the questions for consideration by the FREC Validation Committee D. request an informal hearing before FREC

C. file a written objection to the questions for consideration by the FREC Validation Committee

36. Craig is a real estate associate working for ABC Realty, Inc. To help his business, Craig decides to have refrigerator magnets made to give out to public A. Since Craig is paying for them, he can put anything he wants on them B. They must contain Craig's license status C. They must contain the name ABC Realty, Inc D. They must contain the word REALTOR, or broker

C. They must contain the name ABC Realty, Inc

37. If a mortgage banker informs a borrower that they need to refinance their loan after only 10 months, and the new loan will have a higher interest rate and also some closing costs, it would be a violation of the A. Florida Fair Lending Act B. Equal Credit Opportunity Act (ECOA) C. Truth-in-Lending Act D. Real Estate Settlement Procedure Act (RESPA)

A. Florida Fair Lending Act

38. Which business entity can NOT register as real estate brokerage firm? A. corporation B. corporation not for profit C. corporation sole D. general partnership

C. corporation sole

39. When there is dispute over escrow funds, the procedure include four choices. Which choice involves a third person recommending a solution? A. arbitration B. mediation C. litigation D. escrow disbursement order

B. mediation

40. Which step follows the investigation in the complaint process? A. Probable Cause Determination B. administrative complaint C. formal hearing D. informal hearing

A. Probable Cause Determination

41. If a licensee does not dispute a citation, it has the same effect as a A. cease and desist order B. reprimand C. final order D. formal complaint

C. final order

42. The maximum penalty that a court could impose for a second-degree misdemeanor is A. $2,000 fine and/or 2 years in jail B. $1,000 fine and/or 1 year of jail time C. $500 fine and/or 60 days of jail time D. $5,000 fine and/or 5 years in jail

C. $500 fine and/or 60 days of jail time

43. Who has the right to file a complaint against a licensee with the DBPR? A. FREC B. anyone C. DRE D. DBPR

B. anyone

44. Which punishment would FREC likely impose for a first offense against a broker found guilty of a minor violation? A. $500 fine B. notice of noncompliance C. citation D. suspension

B. notice of noncompliance

45. FREC may suspend a real estate license for a maximum of ____ years: A. 3 B. 5 C. 10 D. 15

C. 10

46. For multiple claims against a licensee, the Florida Real Estate Recovery Fund has a maximum of A. $150,000 B. $50,000 C. $25,000 D. $15,000

A. $150,000

47. The Florida Real Estate Recovery Fund A. is replenished from state taxes if needed B. covers punitive damages C. is to protect licensees D. is funded from licensing fees

D. is funded from licensing fees

48. Appeals of FREC final orders must be filed in the A. Circuit Court of Appeals B. District Court of Appeals C. Offices of the Association of REALTORS D. Offices of the Department of Financial Services

B. District Court of Appeals

49. How many violations of F.S. 475 can result in a mandatory suspension? A. one B. two C. seven D. ten

A. one

50. A broker who fails to pay his or her sales associate may be charged with A. culpable negligence B. concealment C. commingling D. conversion

D. conversion

51. The Fair Housing Act of 1968 (as amended) prohibits discrimination based upon A. race, color, citizenship, sex, family status or religion B. race, color, religion, sex, age, national origin or handicap C. race, color, religion, sex, national origin, family status or handicap D. race, color, age, residency, sex, national origin or handicap

C. race, color, religion, sex, national origin, family status or handicap

52. What law requires that buyer be given a good faith estimate of closing costs prior to closing? A. Florida Statute 475 B. Truth-in-Lending Act C. Sherman/Clayton Antitrust Act D. RESPA

D. RESPA

53. A license picks the properties a particular buyer is shown based on the race of the buyer. This illegal act is known as A. redlining B. blockbusting C. steering D. commingling

C. steering

54. Telling home owners that minority families are moving into their neighborhood in an attempt to get them to sell their home and move would be A. steering B. redlining C. blockbusting D. boycotting

C. blockbusting

55. Broker Bill has been hired to rent Mrs. Brown's apartment building located in a large college town. Broker Bill quotes lower rents and deposits to females because he has found through experience that they will cause less trouble than males, and females will maintain their apartments in much better condition. This is A. true and therefore no problem B. a violation of the Civil Rights Act of 1866 C. a violation of the Equal Rental Opportunity Act of 1972 D. a violation of the Fair Housing Act of 1968

D. a violation of the Fair Housing Act of 1968

56. Which is correct according to the Landlord Tenant Act? A. Deposits may be held in an interest-bearing account, and the landlord keeps the interest B. Deposits may not be held in a non-interest-bearing account C. Deposits may be commingled into the landlord's personal account, provided the landlord has posted a surety bond with a notary public D. Landlord must inform tenant within 30 days how the deposit is being held

D. Landlord must inform tenant within 30 days how the deposit is being held

57. A developer advertises homes for sale with a total down payment of $1,500. The developer knows that all of the houses with that amount of down payment have been sold. Is this transaction covered under Truth-in-Lending laws? A. No, because the advertising was done by a builder/developer, not a broker B. Yes, because this is a bait and switch advertising and is illegal C. No, because single-family residence is exempt from Regulation Z D. Yes, because this is puffery and is illegal

B. Yes, because this is a bait and switch advertising and is illegal

58. The main purpose of "Regulation Z" is to require A. lenders to disclose the true cost of credit to consumers B. lenders to disclose closing cost to borrowers C. brokers to disclose closing costs to buyers D. sales associates to disclose commissions to costumes

A. lenders to disclose the true cost of credit to consumers

59. Under the Truth in Lending Act, in credit advertising, which would not be considered a "triggering term" : A. $1,500 down B. easy terms C. 6% interest D. 10% down

B. easy terms

60. A broker receives a kickback or referral fee from a title insurance company. This practice is A. legal B. a violation of RESPA C. legal; however, not recommended D. illegal; however, FREC will allow it to continue as long as the broker is active.

B. a violation of RESPA

61. A property that borders a river or stream includes A. allodial rights B. alluvial rights C. littoral rights D. riparian rights

D. riparian rights

62. The court tests to determine if personal property has become a fixture include A. date of purchase B. extent of the parties C. relationship of the parties D. all of the above

C. relationship of the parties

63. An owner of a piece of real estate has purchased the materials to fence the backyard. What type of property is the fencing material? A. trade fixture B. real estate C. personal property D. fixture

C. personal property

64. Three friends buy a property together with equal shares at the same time. If they have the right of survivorship, they have created a A. joint tenancy B. tenancy in common C. tenancy for years D. tenancy by the entireties

A. joint tenancy

65. A tenancy by the entireties means that the property is owned by A. two cohabitating adults B. husband and wife C. entirely one person D. an entire family

B. husband and wife

66. When a tenant remains in possession of a property after his or her rights have expired, it is a A. joint tenancy B. tenancy by the entireties C. tenancy at will D. tenancy at sufferance

D. tenancy at sufferance

67. The purpose of the homestead exemption is to protect the surviving spouse and children and to exempt property from foreclosure for A. property taxes B. debts other than direct debts and federal liens C. mortgage debts D. all debts

B. debts other than direct debts and federal liens

68. Which tenancy contains the right of survivorship? A. in common B. joint C. sufferance D. will

B. joint

69. The initial tax exemption for homestead is available only to owners that A. claimed the property as their principal residence as of January 1 and filed by April 15 B. claimed the property as their principal residence as of January 1 and filed by March 1 C. claimed their property as their principal residence as of March 1 and filed by April 15 D. recorded their deed by January 1 and filed by April 1

B. claimed the property as their principal residence as of January 1 and filed by March 1

70. The best bundle of rights with a timeshare would include A. right to use B. interval ownership C. membership D. leasehold

B. interval ownership

71. The right to occupy a cooperative is evidenced by a A. tenancy in common B. joint tenancy C. deed D. property lease

D. property lease

72. The power that the government has to take land for the public good is called A. encumbrance B. escheat C. eminent domain D. easement

C. eminent domain

73. The clause in a deed which states that the grantor was in possession and has the right to sell the property is the A. seisin B. granting C. premises D. habendum

A. seisin

74. Actual notice is A. recording the deed in the public records B. possession of the property that can be seen and heard C. less valid than constructive notice D. notarizing the document of transfer

B. possession of the property that can be seen and heard

75. A deed must be A. notarized B. witnessed C. recorded D. signed by the grantee

B. witnessed

76. A quitclaim deed is most often used as a A. tax deed B. way to clear clouds on title C. personal representative's deed D. guardian's deed

B. way to clear clouds on title

77. The ownership of a property actually transfers from the grantor to the grantee when the deed is A. notarized and recorded B. delivered and accepted C. signed by the grantee and witnessed D. signed by the grantee and recorded

B. delivered and accepted

78. A title search is to A. locate all important documents for a closing B. issue title insurance C. give constructive notice D. run a chain of title

D. run a chain of title

79. Title is a A. deed of conveyance B. legally binding contract C. piece of paper D. bundle of ownership rights

D. bundle of ownership rights

80. Private restrictions are enforced by private citizens. The strongest control they have over a property owner is A. leases B. easements C. deed restrictions D. liens

C. deed restrictions

81. Owner's title insurance is A. transferable to new owners B. to protect the mortgagee from title defects C. to protect the buyer from title defects D. required on all transactions

C. to protect the buyer from title defects

82. No warrants or promises are contained in a A. general warranty deed B. bargain and sale deed C. special warranty deed D. quitclaim deed

D. quitclaim deed

83. If an owner dies intestate with no know heirs, the state can take the property due to A. elective share B. dower rights C. eminent domain D. escheat

D. escheat

84. The following legal description contains how many acres? The S 1/2 of the SW 1/4 of the NW 1/4 and the N 1/2 of the NW 1/4 of the SW 1/4 of Section A. 20 B. 40 C. 625 D. 640

B. 40

85. The southeast corner of Section 31, Township 1 North, Range 3 West, is how many miles from Tallahassee? A. 17 B. 18 C. 23 D. 24

A. 17

86. The horizontal strip of land 6 miles wide immediately north of the baseline would be A. Township 1 East B. Section 1 North C. Range 1 North D. Township 1 North

D. Township 1 North

87. A listing held by more than one broker would be A. an open listing B. an exclusive right of sale listing C. an exclusive listing D. a net listing

A. an open listing

88. A contract can be terminated by A. novation B. performance C. rejection D. subrogation

B. performance

89. Sales contracts must have certain essential elements, including A. an offer and acceptance B. witnesses C. a notary seal D. an earnest money deposit

A. an offer and acceptance

90. The Statute of Frauds requires that A. lawsuits about oral contracts must be filed within 4 years B. all contracts must be in writing C. to be enforceable, a contract transferring an interest in real estate must be in writing D. violations are punishable by fines not to exceed $1,000

C. to be enforceable, a contract transferring an interest in real estate must be in writing

91. The Statute of Limitations states A. the sentencing guidelines for violations of the law B. the time frame in which a contract can be enforced C. to be enforceable, real estate contracts must be written D. contracts must be notarized to be enforceable

B. the time frame in which a contract can be enforced

92. The essential elements of a contract do NOT include A. consideration B. offer and acceptance C. competent parties D. notarized

D. notarized

93. In states which operate under title theory, the borrower A. transfers ownership to the mortgagee or a third party until paid B. transfers possession to the mortgagee or a third party until paid C. pledges the property as security on the loan D. creates a tenancy in common with the lender

A. transfers ownership to the mortgagee or a third party until paid

94. On a VA guaranteed loan, the amount of the guarantee is based upon the A. appraised value B. assessed value C. loan amount D. sale price

C. loan amount

95. Conventional lenders usually want the buyer's housing ratio not to exceed ____ and the total obligations ratio not to exceed ___ A. 31%, 43% B. 29%, 41% C. 29%, 36% D. 28%, 36%

D. 28%, 36%

96. A legal documents that pledges a property as security for a loan is called a A. promissory note B. mortgage C. title D. bond

B. mortgage

97. FHA A. purchases existing loans B. makes loans C. guarantees loans D. insures loans

D. insures loans

98. When a buyer buys a property and takes over responsibility on an exciting loan, it is called A. agreement for deed B. subject to the mortgage C. assumption of the mortgage D. any of the above

C. assumption of the mortgage

99. When calculating housing and total obligations ratios, the lender uses A. gross monthly income B. net monthly income C. gross annual income D. net annual income

A. gross monthly income

100. A type of loan which uses both real and personal property as security is a A. blanket mortgage B. purchase money mortgage C. package mortgage D. chattel mortgage

C. package mortgage

Practice Exam 1 Flashcards

(100 cards)