State Exam Flashcards by Maya Friedman

Which of these statements concerning property management is incorrect?

Property managers are compensated in a number of ways, included by salary, or on a transactional basis. Period of a property manager is, by salary, he must hold an active brokers license.

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Which of the following statements is false concerning the required 45 hour post licensing course?

After the licensee completes the required 45 hour post licensing course before the expiration of his license, his license, automatically renew, and have another two years in which to complete the required 14 hours of continuing education.

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Which of the following statements is true?

Chapter 61J2 are the rules that the Frack, Florida real estate commission create implement and enforce

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Which of the following statements is false concerning continuing education?

Only actively licensed sales associates are required to complete the 14 hours of continuing education

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Which of the following statements is true?

It is a violation of licensed law to share a commission with or to pay a fee or other compensation to an unlicensed person for the referral of real estate, business, clients, prospects, or customers

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Which statement is true concerning the three categories of real estate?

A sales associate is a person who performs real estate services for compensation, but who does so under the direction, control, or management of a broker or an owner developer.

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How many hours is the business ethics portion of the 14 hour continuing education course?

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Sales associate Jimmy works for owner employer, Highland homes, and has been a top producer for several years. The owner of Highland homes announced the grand opening of a new Highland Holmes location, and has asked me to work in this location as well as the location he has been working in. With this information, which of the following statements is true?

Jimmy can request a group license. I would allow him to work at both locations.

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Which of the following statements is true about the FREC?

The three powers of the frec are executive powers, quasi - legislative powers, and quasi - Judicial Powers

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When a sales associate represents both parties in a transaction

He is in violation of the law

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Fire bill has entered into a single agent relationship with broker Sarah. Sarah has a property listed with seller, Thomas, whom she also represents as a single agent. Sarah believes the property she listed for seller Thomas would be perfect for buyer bill. And what brokerage capacity can Sarah work with the buyer and the seller?

Both the seller and the buyer could transition to a transaction broker relationship, and then Sarah could show the property to Bill.

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When would a broker show the non-representation, (no brokerage) relationship disclosure form?

Before showing property

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A transaction broker does not have which duty? (Ch 4)

Obedience

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Which type of brokerage relationship is presumed?

Transaction broker

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Broker Logan listed Sabrina’s house. When broker Logan decided to go on vacation, he asked Jimmy, one of the sales associates registered under him, to take over the contract duties while he was on vacation. Broker Logan listed Sabrina’s house as a single agent. Which applies? (Ch 4)

Sales associate Jimmy can work with Sabrina; sales associate Jimmy will be a single agent in this transaction

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A seller disclosed in confidence to the broker that was listing his house that the roof leaks. Which of the following applies?

The broker is always required to disclose the leaking roof to all prospective buyers.

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A contract has been signed by the buyer and the seller. One week before the contract was executed, the buyer defaults. The seller is confident he is entitled to the earnest money and contacts the broker. If the broker has doubt as to which party should receive the earnest money, what is his first course of action?

Contact FREC within 15 days in writing.

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Using the example from the previous question, after the broker contacts FREC within 15 days, what is he required to do next?

The broker is required to institute an authorized settlement procedure.

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Which of the following statements is incorrect concerning payment of commission?

A broker can give an unlicensed individual a referral fee providing it does not exceed $50.

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In Panama City, Florida, there are several brokerage firms. The owners from the two largest brokerages have decided to meet and discuss rates. They decide that because they are permitted by law to charge whatever commission they want, they decide to agree on a set commission for the area. They decide to charge 6% each, and decide not to reduce this rate, thus making both brokerages more money. Which applies?

This is a violation of the Sherman-Clayton Anti-Trust Laws and is an example of price fixing

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Which statement is false concerning the payment of an unearned fee or kickback?

A real estate licensee may be paid a fee for referring buyers to a title company, provided the buyer is aware of and agrees to the facts concerning the fee.

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Which statement concerning partnerships is incorrect?

A limited partnership cannot register to broker real estate

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Which of these ads would qualify as a blind ad?

123 Main Street for sale. Call sales associate Steve Till, the “best” in the business 555-5555.

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If a sales associate picks up an escrow check on Thursday, when does the broker have to deposit it into the escrow account?

Immediately, as defined, by Tuesday of the following week.

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If the title company is holding the escrow check, what must be on the purchase and sales contract regarding the title company?

The name, address, and phone number of the title company

A broker provided an up to date and accurate rental list for a $475.00 fee. The potential tenant was unable to obtain a rental and requested a refund. Which applies?

If the potential tenant makes the request within 30 days, the licensee would be required to provide a refund of $356.25

If an unlicensed individual has been found guilty of acting like a broker and collecting commissions, what penalty could be imposed upon him?

Third degree felony

Which of the following is the penalty for a first-time minor violation?

A notice of noncompliance

Stacie recently vacated the premises of the property she was renting. She called her landlord to ask about her security deposit and the landlord told Stacie she would receive her security deposit within 15 days. Which statement is true regarding Stacie’s security deposit?

The landlord has 15 days to return the security deposit to Stacie if the landlord does not intend to make a claim on the security deposit.

Which of the following statements concerning violations of The Fair Housing Act is incorrect?

Steering is when sellers are encouraged to list their property based on discriminatory practices.

The Florida Residential Landlord and Tenant Act requires landlords to account for advance rents and security deposits in one of three ways. Which of the following is not one of the choices the landlord has regarding advance rents and security deposits?

A landlord can hold the money in any of the 50 states in a separate non-interest-bearing account for the benefit of the tenant.

Which estates include the right of survivorship?

joint tenancy and tenancy by the entireties

What rights are associated with water flowing through your property?

riparian rights

Which of these statements is true regarding a freehold estate? (

A life estate is a type of freehold estate.

Chandler, who holds title to real property, deeds it to Simone until her death. After Simone’s death, Roberta is to receive title. With only this information, which statement is true?

Simone has a life estate and Roberta has a remainder estate

Which of these statements is incorrect concerning condominiums and cooperatives?

The buyer of a cooperative association receives a deed to his unit.

If a property is homesteaded but only one spouse’s name is on the deed, who is required to sign the deed in a sale?

Both spouses

Which of these statements concerning a tenancy at will is correct?

A tenancy at will is a non-free hold estate that must include set terms for legal notice of termination

Which estate does not include legal title to real property?

Estate for years

Timothy and Sandy are friends that purchased a hunting cabin together and they took title by joint tenancy. Sandy sold her interest to Rebecca and Rebecca recently passed away. Timothy has decided that he does not want to share ownership with Rebecca’s husband. What applies?

Timothy must share interest with Rebecca’s husband unless Timothy sells his share of the estate

A man owns a 360-acre farm in Marion County, Florida. The estate is for an indefinite period of time. Which of the following is not one of the estates the man has?

Leasehold estate

Which covenant states that the grantor owns the property and has the right to sell it?

Covenant of seisin

Which of these liens would have the highest priority

a property tax lien filed on August 11, 2018.

Which of the following is also called “legal notice” and describes the act of recording documents in the public records?

Constructive notice

Which of the following is an implied easement?

an encroachment

If every parcel of land in a subdivision can have only up to 2,000 square foot homes, what is being described?

restrictive covenants

Which of the following statements is false concerning title?

Legal title means you do not have ownership of the deed.

Which of the following statements is false concerning special purpose deeds?

A personal representative’s deed is used when the grantee must sign the deed as appointed by will or by the order of the court.

Which of the following is incorrect concerning leases?

With a net lease, the tenant pays a fixed rent, and the landlord pays all expenses associated with the property including taxes and insurance.

If a surveyor starts at the POB, (point of beginning) and runs north 90 degrees south, what direction is he going?

East

Which of these statements is true concerning legal descriptions?

A township contains 36 square miles.

Which of the following is the type of method a surveyor would use to describe a property that is in a subdivision?

Lot and block method

Which of these is not one of the essential elements necessary to create a valid contract?

written consent

Which of the following statements is not true concerning the statue of frauds?

Option contracts are not covered under the statue of frauds.

Sales associate Sara listed Taylor’s house for $525,000. Buyer Rita submitted an offer with a $1,000 earnest money deposit. A contract was written, signed, and communicated and the next day the house was swallowed by a large sinkhole and completely destroyed. Which applies?

The destruction of the property terminates the contract.

Which of these statements is not true concerning a listing contract?

A written listing contract does not need to include the legal description of the property.

Which of these describes a net listing?

This is the type of listing where a seller agrees to sell a property for a stated acceptable minimum amount, called the seller’s net.

A unilateral contract to keep open for a specified period time an offer to sell or lease real property where the property owner grants a prospective buyer the exclusive right to buy the property within a specified period for a specified price and terms is what?

An option contract

Who is responsible for giving the buyer the Homeowners Association Disclosure, and what does the disclosure have on it?

The seller provides the disclosure and it includes the existence of restrictive covenants, and assessments that the association imposes.

What is the purpose of the property tax disclosure?

To caution prospective buyers that they cannot rely on the amount of the seller’s property taxes as an indication of the taxes, purchasers will be required to pay.

Which statement is false concerning counteroffers?

The offeror and the offeree remain the same even though the terms are modified.

Logan recently moved from a state that practices lien theory of mortgage and moved to a state that practices title theory of mortgage. With only this information, which of the following statements is true?

If Logan moves back to the state that practices lien theory of mortgage and borrows money from the bank to purchase a house, he will be called a mortgagor.

If property is sold without the consent of the lender, which clause would be in effect?

Due-on-sale clause

Home-owner Sam lost his job and defaulted on his loan. Which clause authorizes the bank to call the entire amount due if Sam does not remedy the default?

Acceleration clause

Buyer Charlie placed an offer on Seller Tina’s house. Tina informed Charlie that she has an FHA loan that is assumable. If Charlie decides to assume Tina’s loan, which statement would apply?

If the bank removed Tina’s name from the promissory note, and replaced her name with Charlie’s, this is called novation.

Which of the following is most like an insurance company?

The Federal Housing Administration (FHA)

With regard to an FHA mortgage, which statement is correct?

The insurance fee is paid up front and monthly and is based on the loan amount.

Which of these loans requires a funding fee?

VA guaranteed loan

Which of these describes the secondary mortgage market?

an investor market that buys and sells existing mortgages.

Which characteristic applies to both FHA and VA mortgage loans?

assumable

How is the buyer’s binder deposit entered on the closing disclosure?

Credit to buyer

How are unpaid property taxes entered on the closing disclosure?

credit to the buyer and debit to the seller

Which of these statements is true concerning the real estate market?

The real estate market is local in nature.

Seller Bill has approached sales associate Rebecca and asked her to perform an appraisal on his house. Which statement is false?

Sales associates are not allowed to perform appraisals. Rebecca would need to tell Bill she could legally prepare a Comparative Market Analysis.

Which of the following statements concerning market value is true?

Market value is the most probable price a property should bring in a competitive and open market under all conditions, requisite to a fair sale under certain guidelines published by Fannie Mae and Freddie Mac.

Which of these is describing the principle of substitution?

The principle of substitution states that the maximum value of a property tends to be set by the cost of acquiring an equally desirable substitute property through purchase or construction

Finish this sentence. The sales comparison approach to value

is based on the theory that a knowledgeable purchaser will pay no more for a property than the cost of acquiring an equally acceptable substitute property

What is subtracted from potential gross income to arrive at effective gross income in the income capitalization approach?

vacancy and collection losses

If an appraiser was appraising a two-bedroom home and the comparable had three bedrooms, what would be the appropriate adjustment if a bedroom was worth $10,000?

subtract $10,000 from the comparable

The sales comparison approach to value is a direct application of which principle of value?

principle of substitution

Which of the following approaches to value would most likely be used in the appraisal of a single-family residence?

The sales comparison approach

Which approach to value would an appraiser use to appraise a courthouse?

Cost approach

Which applies if a licensee calls a broker’s price opinion an appraisal?

The licensee could be punished by The Florida Real Estate Commission.

Which of the following is an example of external obsolescence?

The road in front of the house became a throughfare

A case in which the interest paid for borrowed funds is less than the overall rate of return to an investor is an example of

positive leverage

Which of these types of risk can be offset with insurance?

static risk

Which of the following is deductible for a homeowner on income taxes?

Mortgage interest and property taxes

What is the additional tax exemption for a blind person that is homestead?

$500

What are the transfer taxes on a property that sold for $435,000 and had a new mortgage of $180,000?

$4,035 435,000/100-4,350 X .70= 3,045 180,000/100=1,800 X .35= 630 180,000 X .002=360 3,045 + 630 + 360 = 4,035

A man can borrow $78,000 to purchase a house, and this is 2.5 times his salary. What is his annual salary?

$31,200 78,000/2.5 = 31,200

What is the gross rent multiplier of a property that rents for $5,000 a month and has a sales price of $600,000?

120 600,000/5,000 = 120

What is the net operating income of a property that has a value of $495,000, operating expenses of $25,000, and a capitalization rate of 10%?

$49,500 495,000 X. 10 = 49,500

93. A buyer has applied for a loan. The purchase price of the property is $460,000. If the borrower has $100,000 for a down payment, what will the loan to value ratio be?

78% 360,000/460,000 = 78%

A parcel of land sold for $50,000 based on a rate of $2.50 per square feet. How many square feet did it contain?

20,000 50,000/2.50 = 20,000

A couple bought a house for $604,110. They assumed a loan for $45,000. What are the documentary stamp taxes on the deed?

4,229.40 604,110/100= 6,041.1 Round this to 6,042 X .70 = 4,229.40

If a sales associate lists a house for 7% commission and she is entitled to keep 70% of all commissions she earns, and she makes $34,055 on the sale. What was the sales price of the house?

$695,000 For this one I would substitute the answers in and just work it the regular way we do a commission question. You can do this one many different ways. I would take each answer and do the normal formula. So, say I started with A and did not get the right answer. Then I use B: Sales price of 695,000 X .07 = 48,650 48,650 X .70 = 34,055 and this matches.

A property has annual taxes of $450.00. The date of closing is October 12 and is charged to the seller. Using the 365-day proration method, what is the amount of the tax proration and how should it be entered on the closing statement?

$351.37 credit buyer, debit seller Seller pays how many days they owned the house. They owned the house 285 days. 450/365 whatever this is... keep it in your calculator and multiply it by 285. Seller debit, Buyer credit.

How many acres are in the NW ½ of the SW ¼ of Section 10?

80 640/2/4

What is the tax levy for a house that was assessed at $545,000 with a millage rate of 2.10?

$1,144.50 545,000 X .00210 = 1,144.50

A developer has 10 acres of land, and he wants to create 20 lots that are the same size. He is going to use 15% of the land for common areas. How big will each lot be?

18,513 square feet 10 X 43,560 = 435,600 435,600 X .85 = 370,260 (The 85% is the land you CAN use to put the lots on) 370,260/20 = 18,513

State Exam Flashcards

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