Real Estate Questions

Question 1

In the formation of contracts, “valuable”, “good”, “sufficient” and “adequate” are terms most closely associated with which of the following?
A. Compensation
B.Bilateral contracts
C.Performance
D.Consideration

Answer 1

Consideration

Question 2

The difference between the value of a property and the total amount of liens against it is known as …

Answer 2

Equity

Question 3

Which of the following would be classified as a general lien

Answer 3

Judgment Lien

Question 4

A purchaser is qualified to obtain an FHA loan for his new home. Which loan would they apply for?

Answer 4

An FHA Lender

Question 5

Eminent domain and escheat are two examples of …

Answer 5

Involuntary alienation

Question 6

The amount of a loan expressed as a percentage of the value of the real estate offered as collateral is…

Answer 6

loan to value ratio

Question 7

How will an escrow deposit be made by the buyer when they’re entering it in the closing statement

Answer 7

Credit to the buyer

Question 8

Purchase price of the home is what to the seller?

Answer 8

Credit to the seller (because they get the money at the end)

Question 9

What does FREC stand for

Answer 9

Florida Real Estate Comission

Question 10

How many members are in the FREC

Answer 10

7

Question 11

Who is the FREC appointed by?

Answer 11

The governor

Question 12

Who consists of the members in the FREC

Answer 12

• 5 with real estate professionals Licenses (active)
  - 4 Real estate brokers must have held an active real estate license during the 5 years proceeding appointment
  
  • 1 broker associate or sale associate (must have held an active real estate license during the 2 years proceeding appointment
• 2 consumer or lay (unlicensed)

*1 member must be 60 years or older

Question 13

Do FREC members get paid?

Answer 13

$50 dollars per day while they’re on official business

Question 14

A sale associate ended employment with a broker and started employment with another brokerage firm. Prior to returning the key, the sale associate entered the office and made unauthorized copies of listings and documents. What are the possible charges the sale associate could face?

Answer 14

Theft

Question 15

What clause (covenant) promises that the grantor owns the property and has the right to convey it to the grantee?

Answer 15

Seisin

Question 16

Regarding a principle residence what is deductible for income tax purposes?

Answer 16

Property taxes and mortgage interest

Question 17

Which of these liens would take priority and paid first?
a. property tax lien filed March 22, 2021
b. A vendor’s lien filed January 01, 2021
c. A mechanic’s lien filed January 06, 2020
d. A special assessment tax lien filed March 01, 2022

Answer 17

A. Property tax lien filed March 22, 2021

Question 18

What are the two liens that are important in order

Answer 18

Property tax lien, special assessment lian

Question 19

What type of lien is income tax

Answer 19

junior lien

Question 20

Which of the liens would take priority and paid first?
a. Income tax (IRS) lien filed March 22, 2021
b. A vendor’s lien filed January 01, 2021
c. A mechanic’s lien filed January 06, 2020
d. A special assessment tax lien filed March 01, 2022

Answer 20

d. a special assessment tax lien filed March 01, 2022

Question 21

Which direction is N 90 E, and which direction are you headed?

Answer 21

Heading East

Question 22

What mortgage clause authorizes the mortgagee (lender) to demand the outstanding loan balance if the borrower sells or transfers any interest in the property?

Answer 22

Due-on-sale clause

Question 23

Acceleration clause

Answer 23

This is used on a loan when a foreclosure is getting ready to happen

Question 24

What is the required experience to become a real estate broker in Florida?

Answer 24

24 months of experience in the preceding 5 years

Question 25

Can a mobile home be considered real property in Florida (what florida statute states this)

Answer 25

Yes, only if the owner owns the land where its affixed (Section 320.015)

Question 26

What kind of ownership do an unit-owners have in a condo, in regards of the common areas?

Answer 26

Tenancy in common

Question 27

An insurance policy which combines personal liability insurance and hazard insurance coverage for a dwelling and its contents is called

Answer 27

homeowner's insurance

Question 28

What is the status of a contract when all the terms have been fulfilled and the transaction has been closed?

Answer 28

Fully Executed

Question 29

Surface rights, Air rights, and Subsurface rights are all rights that can be sold by a property owner while still retaining the property itself: These rights are known as...

Answer 29

Severable rights

Question 30

When an easement allows the use of a neighboring property which automatically transfers upon the sale of either dominant or servient property, it is called what type of easement

Answer 30

Easement Appurtunent

Question 31

Linda purchased a fee simple interest for the private use of residential property for one week every single year. What did linda purchase? a. Shares in a cooperative building b. a condominium c. common elements d. resort timeshare

Answer 31

d. resort timeshares

Question 32

What is the highest form of land ownership which includes the full and complete bundle of property rights?

Answer 32

Fee simple absolute

Question 33

In order for a contract to convey ownership in a property transaction the contract must include:

Answer 33

A legal description

Question 34

A property management contract should include all of the following EXCEPT: a. signatures of the property owner and licensee b. duration of the agreement c.signature of the tenant d. management fee

Answer 34

c. signature of the tenant

Question 35

Sally wants to transfer the title of her property to her granddaughter. Which of the follow are ways to voluntarily transfer title to a property a. Sales contract, will, seisin b. Will, grant, deed c. Title certificate, Escheat, Deed d. Escheat, will, grant

Answer 35

b. will, grant, deed

Question 36

When someone passes away with a valid will in place it is referred to as a. testate b. intestate c. escheat d. appurtenant

Answer 36

Testate

Question 37

What are the 3 methods surveyors use to create legal descriptions?

Answer 37

1. Metes and bounds 2. Government survey 3. Lot and block

Question 38

Which method of describing property has a POB (point of beginning)

Answer 38

Metes and bound (most accurate)

Question 39

How many acres are in a section

Answer 39

640

Question 40

How many sections are in a township

Answer 40

36

Question 41

How many sq ft are in a acre

Answer 41

43,560

Question 42

Is the Governors signature on a Florida Real Estate sales associate license?

Answer 42

No, only the governors printed name is on the Real estate license

Question 43

An unlicensed personal assistant may assist an an open house and can do the following? a. Prepare and let the buyer sign the offer b. Answer questions based on their personal opinion c. Hand out materials d. discuss sellers motivation with buyer

Answer 43

c. Hand out materials

Question 44

The no brokerage relationship notice must be disclosed when?

Answer 44

Must be in writing before the showing of any property

Question 45

What disclosure summary concerning ad valorem taxes must be presented to a prospective home buyer in Florida?

Answer 45

Property tax disclosure

Question 46

What is an abstract of title?

Answer 46

Condensed history of the title

Question 47

In a platted subdivision, the legal description most often used?

Answer 47

Lot and block

Question 48

An option contract is a ...

Answer 48

Unilateral contract

Question 49

What is the status of a sales associate's license if the required post-licensing education is not completed prior to the first renewal cycle period, normally within the 2 years

Answer 49

Null and void

Question 50

What are the rights associated with land abutting tidal bodies of water such as an ocean or sea?

Answer 50

Littoral rights

Question 51

When a sales associate works with both parties in a transaction he/she is in which type of relationship?

Answer 51

Transaction broker relationship

Question 52

What is the default relationship in Florida?

Answer 52

Transaction broker relationship

Question 53

Which clause in a deed states the grantor owns the property and has the legal right to convey it?

Answer 53

Seisin

Question 54

What does USPAP stand for?

Answer 54

Uniform Standards of Professional Appraisal Practice

Question 55

An unlicensed personal assistant may assist an an open house and can do the following? a. conduct listing presentations for sellers b. negotiate in the transaction c. showings of property d. deposit earnest money in the escrow account

Answer 55

d. deposit earnest money in the escrow account

Question 56

What is the FREC not authorized to do? a. determine if violations chapter 475 exist b. adopt new rules c. revoke and suspend a license d. sentence licensee to prison

Answer 56

d. sentence licensee to prison

Question 57

A transaction broker does not have what duty?

Answer 57

Obedience

Question 58

What duty does a single agent specifically have

Answer 58

obedience, loyalty, full confidentiality

Question 59

In the real estate business, what is the first time penalty for a first-time violation

Answer 59

Notice of non-compliance

Question 60

What is blockbusting in real estate

Answer 60

the illegal practice of convincing homeowners that their neighborhood is undergoing a significant change in demographics—typically portrayed as negative—so that they will sell or rent their homes at lower-than-market-value prices

Question 61

What is redlining in real estate?

Answer 61

practice of denying a creditworthy applicant a loan for housing in a certain neighborhood even though the applicant may otherwise be eligible for the loan

Question 62

An unlicensed associate may not do which of the following? a. sign a listing contract b. compute a commission check c. prepare advertising for broker approval d. deposit trust monies

Answer 62

a. sign a listing contract

Question 63

Which of the following of a tenancy in common is true? a. the co-owners must be related b. the owners enjoy an indivisible interest c. the tenants must acquire their interest at the same time d. The tenants must pay equal amounts for their interest in the estate

Answer 63

b. the owners enjoy an indivisible or undivided interest in the property

Question 64

Is Florida a lien theory or title theory state?

Answer 64

Lien theory

Question 65

What defines actual notice?

Answer 65

Information learned by seeing or hearing or reading

Question 66

What are real estate agents not authorized to prepare?

Answer 66

Deeds, mortgages, or most other legal documents

Question 67

What are the 4 essential elements of a contract?

Answer 67

1. contractual capacity of the parties 2. offer and acceptance 3. legality of the object 4. consideration

Question 68

What contracts do the statute of frauds apply to?

Answer 68

Purchase-and-sale contracts, option contracts, and lease agreements and listing agreements

Question 69

Statute of limitations state what?

Answer 69

1. written contracts are enforceable for 5 years 2.Oral (parol & verbal) contracts are enforceable for 4 years

Question 70

Difference between offeror and offeree

Answer 70

offeror makes the offer and offeree receives the offer

Question 71

What are 4 legal for breach of contract

Answer 71

1. Specific performance 2, liquidated damages 3. rescission 4. compensatory damages

Question 72

In a deed that states "to Jonathan for bis life" what type of interest does the grantor have?

Answer 72

reversionary interest

Question 73

Which of the following is NOT a type of freehold estate a. fee simple absolute b. life estate c. leasehold estate d. qualified fee estate

Question 74

What can you not do in a Fee simple ownership?

Answer 74

Right to transfer ownership after death

Question 75

What is true regarding a life estate

Answer 75

The life tenant is responsible for paying property taxes and maintenance

Question 76

What term is used to describe the degree, quantity, or nature of a person's interest in real property

Answer 76

Interest in land

Question 77

The return of land to the grantor or grantors heir when the grant is over is best described as

Answer 77

Reversion

Question 78

WHat is the term for the removal of land when a stream suddenly changes its channel?

Answer 78

Avulsion

Question 79

A contract not in writing is called

Answer 79

Parole contract

Question 80

What is easement

Answer 80

One’s right to use another persons property (usually granted in exchange for payment)

Question 81

What is it meant by the term brokers opinion?

Answer 81

The process of establishing the potential selling price of a piece of real property

Question 82

What is the value of a property?

Answer 82

A monetary relationship that exist between the buyer, the seller and anybody who uses the property