Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

FL Real Estate > Practice Test Questions 2 > Flashcards

Practice Test Questions 2 Flashcards

(95 cards)

Start Studying
1
Q

Which business structure allows profits and losses to flow directly to the owners without taxation at the business level?

A

Sole proprietorship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What legal term refers to the government’s reversionary interest in property when the owner dies without heirs?

A

Escheat

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

In Florida, how many hours of post-licensing education are required for a broker’s first renewal?

A

60 hours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How long does a licensee have to correct a minor violation found during a DBPR inspection before facing discipline?

A

15 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the primary purpose of a comparative market analysis (CMA)?

A

Estimate probable selling price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Which type of depreciation is considered incurable?

A

External obsolescence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the term for the legal process used by a lender to recover a property when a borrower defaults?

A

Foreclosure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Which tenancy is automatically created when a married couple purchases property in Florida?

A

Tenancy by the entireties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How many years must a broker retain brokerage relationship disclosures?

A

5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What must happen before a broker can open an escrow account?

A

The broker must notify the FREC of the account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the minimum number of days a notice must be given to terminate a month-to-month tenancy in Florida?

A

15 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does an abstract of title include?

A

A summary of all recorded documents affecting title to a property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the purpose of a deed restriction?

A

To limit the use of a property by future owners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the difference between actual notice and constructive notice?

A

Actual is direct knowledge; constructive is legal presumption via public records

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What clause in a mortgage allows the lender to demand full repayment if the property is sold?

A

Due-on-sale clause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a defeasance clause?

A

A clause stating that the lender must release the lien once the debt is paid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the IRS depreciation life for residential income property?

A

27.5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What type of value is most commonly used in real estate appraisals?

A

Market value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is the maximum amount a licensee can be fined for a third-degree felony in Florida?

A

$5,000 and/or 5 years imprisonment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the difference between market price and market value?

A

Market price is the actual selling price; market value is the estimated value under normal conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How many days does a buyer have to cancel a condominium contract after receiving the condo documents?

A

3 business days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is a red herring prospectus?

A

A preliminary prospectus for a security that lacks final details

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What must a developer provide buyers in a 20+ unit new condominium?

A

Prospectus and estimated operating budget

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What Florida statute governs the regulation of timeshares?

A

Chapter 721, F.S.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Which type of deed contains the fewest warranties?
Quitclaim deed
26
Which clause in a deed states the grantor’s intent to transfer title?
Granting clause
27
What are the four unities required for joint tenancy?
Possession, interest, time, title
28
Which disclosure must be provided when selling property built before 1978?
Lead-based paint disclosure
29
What is the homestead exemption deadline in Florida?
March 1st
30
Which Florida statute governs real estate license law?
Chapter 475, F.S.
31
What is the primary purpose of zoning laws?
To regulate land use and promote orderly growth
32
What does a variance allow?
Legal permission to deviate from zoning requirements
33
What is spot zoning?
Zoning that benefits a single parcel inconsistently with surrounding use
34
What is plottage?
The increase in value resulting from assembling multiple parcels
35
What is a buffer zone?
A zone used to separate incompatible land uses
36
What is a nonconforming use?
A use that existed before zoning rules and doesn't comply with current regulations
37
What is the purpose of the secondary mortgage market?
To provide liquidity by buying mortgages from lenders
38
What is an estoppel certificate?
A document used to verify facts about a lease or mortgage
39
What is a blanket mortgage?
A single mortgage covering more than one property
40
What is the formula for property tax?
Assessed value – exemptions × tax rate
41
What is the Florida documentary stamp tax on deeds?
$0.70 per $100 of consideration (except Miami-Dade)
42
How is the intangible tax on new mortgages calculated in Florida?
$0.002 × loan amount
43
What is the state documentary stamp tax on promissory notes in Florida?
$0.35 per $100 of debt
44
What type of property cannot be depreciated for tax purposes?
Personal residence
45
What is economic life?
The period over which improvements contribute to value
46
What is a special assessment?
A tax levied for a specific improvement that benefits the property
47
What is a 1031 exchange?
A tax-deferred exchange of like-kind investment property
48
What is the prepayment penalty clause?
Allows a lender to charge a fee if the loan is paid off early
49
What is a subordination agreement?
A contract that changes the priority of liens
50
What is a lis pendens?
Notice of pending legal action involving real property
51
What is a writ of supersedeas?
A court order that suspends the enforcement of a judgment
52
What is a writ of possession?
A court order that allows a landlord to reclaim property after eviction
53
What is the role of a property manager?
To manage income-producing property for the owner
54
What is cash flow?
Net income after all expenses and debt service
55
What is the equity dividend ratio?
Cash flow ÷ equity
56
What is leverage?
Using borrowed funds to increase potential return
57
What is the break-even ratio?
(Operating expenses + debt service) ÷ gross income
58
What is a REIT?
Real Estate Investment Trust
59
What is the principle of anticipation?
Value is based on expected future benefits
60
What is the principle of conformity?
Property values are highest when similar in style and use
61
What is a tax shelter?
An investment that generates deductions to reduce taxable income
62
What is assemblage?
Combining two or more parcels into one
63
What is a fiduciary?
Someone who acts in the best interest of another (e.g., broker to client)
64
What is the difference between legal and equitable title?
Legal title = ownership; equitable title = future right to legal title
65
What is a novation?
Replacing one contract or party with another
66
What is the difference between assignment and delegation?
Assignment transfers rights; delegation transfers duties
67
What is an option contract?
A unilateral contract giving the right to buy within a timeframe
68
What is the statute of limitations on written contracts in Florida?
5 years
69
What is the maximum security deposit a landlord can require in Florida?
There is no statutory limit
70
What must a landlord do with a security deposit if they intend to make a claim?
Notify the tenant in writing within 30 days
71
What is the landlord’s deadline to return a deposit if no claim is made?
15 days
72
What is an ARM loan?
Adjustable-Rate Mortgage
73
What is a balloon mortgage?
A loan with a large final payment after smaller periodic payments
74
What is hypothecation?
Pledging property as security without giving up possession
75
What is the difference between a lien and a levy?
Lien = claim against property; levy = legal seizure to satisfy debt
76
What is the parol evidence rule?
Prevents oral statements from contradicting written contracts
77
What is a tenancy at sufferance?
Tenant stays after lease ends without permission
78
What is a constructive eviction?
Tenant is forced to leave due to landlord’s neglect
79
What is an index lease?
Lease tied to an economic index (e.g., CPI)
80
What is the civil penalty for a first Fair Housing Act violation?
$21,663 (as of recent adjustment)
81
What type of agent has the broadest authority?
Universal agent
82
What is a general agent?
An agent with authority to act within a business or employment relationship
83
What is a special agent?
An agent with authority to perform a single act or transaction
84
What is the brokerage relationship default in Florida if not disclosed?
Transaction broker
85
What is required for a dual agent relationship in Florida?
It is illegal under Florida law
86
What is the minimum age to apply for a real estate license in Florida?
18 years old
87
How many days does a licensee have to respond to a DBPR complaint?
20 days
88
What is the maximum time FREC may suspend a license?
10 years
89
What must a licensee disclose when selling their own property?
That they are licensed
90
How soon must escrow funds be deposited by a sales associate?
By the end of the next business day
91
How soon must a broker deposit escrow funds?
By the end of the third business day
92
How long must a brokerage retain advertising records?
5 years
93
What is required on all real estate advertising?
Brokerage name
94
What is the penalty for a second-degree misdemeanor related to real estate?
Up to 60 days in jail and/or $500 fine
95
What is the primary duty of FREC?
To protect the public by regulating licensees

FL Real Estate (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions