Florida Realtor Sales Associate Practice Exam

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• What does the acceleration clause in a mortgage allow the lender to do?
• What is an example of functional obsolescence?
• Which form of ownership can only be held by a husband and wife?
• Who does the mortgagee's title policy protect?
• Real estate appraisers usually estimate:
• Which type of loan is Fannie Mae not authorized to buy?
• How much was each acre worth if Mrs. Smith sold two tracts for $2,000 per acre?
• A lot measuring 100 ft by 218 ft would be approximately how many acres?
• What is the maximum assessed value for property eligible for homestead exemption?
• What should a broker do if he discovers a material defect in the property he is listing?
• What is the primary goal of zoning regulations?
• What does the rectangular or government survey method primarily define?
• What is the value of a subject property given three comparables with specified adjustments for inflation and features?
• The cost-depreciation approach does not include which of the following steps?
• An over-improvement such as luxurious flooring in a modest home is an example of?
• How many licensees and lay members compose the Florida Real Estate Commission (FREC)?
• What is the characteristic feature of a joint tenancy?
• The appraisal technique best suited for special use properties such as a county courthouse is:
• How is the payment of closing costs determined?
• On what basis must all real property tax assessments be made, according to the Florida Supreme Court?
• How many acres are contained in the NW 1/4 of NE 1/4 and W 1/2 of NE 1/4 of NE 1/4, Section 12?
• Using borrowed money to finance the purchase of real estate is known as:
• On a closing statement, how are taxes and rental income typically handled?
• What will be the new rent per square foot if a building's rent is adjusted from an index of 1.5 to 1.8?
• If a property sells for $62,300 and the brokerage charges 7%, how much will the sales associate receive after commission distribution?
• How much is a tenant paying per square foot per year if they pay $1,400 per month for a 1,400 sq.ft. office?
• A sales associate held a postdated check for two weeks instead of delivering it to her broker immediately. What is the correct outcome?
• What term refers to dry, crumbling asbestos that is considered a health hazard?
• How should the proration of annual real estate taxes be handled if the closing is on April 15 and the seller owns the property?
• What is the required duration of occupancy for a property owner to qualify for a $250,000 exclusion?
• In real estate, what is typically the first step in determining the value of a property?
• To increase a lender's yield by approximately 1%, how many discount points must be charged?
• What must a broker provide to a new buyer under Florida law?
• Which document best protects buyers against defects in the title?
• What is a contract that guarantees a broker will receive a commission regardless of who sells the property?
• What factor would lenders consider regarding a borrower's willingness to pay off debt?
• If property taxes are $1,900 and the millage rate is 28 mills, what is the assessed value of the property?
• Which group is totally or partially exempt from property taxes?
• In a real estate transaction, what is required of brokers regarding offers?
• If Bill and Betty want their share of a home to pass to their children upon death, how should they hold title?
• What is the formula for calculating gross income from multiple rental units?
• A married resident of Florida with a property valued at $100,000 is entitled to which homestead tax exemption?
• What type of partnership is formed between brokers when one broker commits fraud while sharing office space?
• Which of the following could cause external obsolescence?
• A contract that includes promises from both parties is referred to as what type of contract?
• What does equity of redemption in real estate refer to?
• What is the significance of the market value adjustments in the comparative market analysis?
• What is a package mortgage primarily used for?
• When is the filing deadline to qualify for the homestead exemption in Florida?
• Which statement is true regarding Sally's role in selling lots for John and Stan?
• Which of the following is NOT a service of real estate?
• What type of deed should a grantor give to avoid responsibility for the title's quality?
• What implication does a time is of the essence clause have in contracts?
• Heat output in a home is measured in which unit?
• In real estate terminology, what is an "encroachment"?
• What is the best type of deed for a buyer to receive at closing?
• What adjustment should be made due to the physical condition difference between two properties?
• What is the area of one acre in square feet?
• Which of the following is NOT included in the definition of real estate?
• What legal term refers to the government's right to take private property for public use?
• What is the property value if the effective gross income is $96,000 and operating expenses are $45,000 with a capitalization rate of 9%?
• Which method can cure defects in title that cannot be resolved by a quitclaim deed?
• If an Illinois attorney is recognized as a real estate broker, what should a Florida broker do concerning a referral fee?
• In which type of contract is only one party bound by the promises made?
• Which of the following actions is NOT typically associated with a buyer when purchasing real estate?
• When a secretary drives a prospect to a property and reads printed information to the prospect, which statement is true?
• Which term is used for a request to allow an exception to a zoning rule?
• The physical adjustment for a property that is in better condition than a comparable property should result in?
• What may the DBPR do if a non-licensee is collecting commissions?
• Which appraisal approach is specifically used for properties that do not generate significant income?
• What type of relationship exists between a broker and a principal?
• What type of tenancy is created with a 60-day written lease agreement?
• In what situation can Mrs. Smith legally instruct a broker to sell her home only to a fellow Presbyterian?
• Which business entity is permitted to broker real estate?
• Which mortgage clause benefits the lender by allowing the entire loan balance to be called due upon default?
• Which type of lien may have a priority earlier than the date of recording?
• What term is used for the right of a property owner to enter upon another person's property?
• Which approach to value is most appropriate for single-family homes and vacant lots?
• What must a contract state if parties desire strict enforcement of time provisions?
• What type of ownership in real estate involves a share of stock in a corporation?
• What does the term depreciation refer to in real estate?
• A township contains how many sections?
• When a homeowner is granted permission to erect a higher fence than what is normally permitted, this is known as a:
• If a property has an effective gross income of $100,000 and expenses of $30,000, what is the net operating income?
• Calculated on a 365-day method, what is the daily tax rate for a property with a millage of 24 mills?
• Ordinary wear and tear on a property, such as wood rot, is classified as?
• How large is a township in terms of square miles?
• When assessing property values, what does the capitalization rate represent in terms of investment return?
• Which type of ownership allows for individual ownership within a multiple-unit dwelling?
• What was Mrs. Smith's net gain or loss after selling two tracts of land, one for a profit and the other for a loss?
• An inactive broker can perform real estate services when:
• If a property transaction involves a mortgage, who here is identified as the mortgagor?
• What is the maximum amount a broker would normally receive as damages from a defaulted sales contract?
• What does the Fictitious Names Act provide for?
• Which material is often used for building in a subtropical climate like Florida?
• A legal right to occupy and use land is called what?
• According to Florida law, what can be a broker's action upon discovering that the title is encumbered?
• What type of offer occurs when a seller changes the terms of an initial purchase offer and returns it to the offeror?
• What should a sales associate do if they receive a commission check incorrectly?
• What is a requirement for an active broker?
• When comparing two properties, how should a price adjustment be made based on a bedroom difference?
• When may Sally begin operating after passing the state exam for sales associate?
• Which of the following statements is usually true about mortgages?
• What was the total amount of state taxes paid on the sale of a principal residence with a sales price of $60,000 and a mortgage of $32,500?
• Which type of notice is affected by the recording of documents?
• Deed preparation and documentary stamps on the deed are customarily a:
• What does a larger R-value indicate?
• To obtain a true option, what must a broker do?
• What best describes the role of a personal representative in transferring property from an intestate estate?
• If a homeowner rejects an offer from a minority buyer for a lower offer from a non-minority buyer, who bears the burden of proof if a complaint is filed?
• What type of legal description uses outstanding physical or topographical features?
• What is one requirement for a sales associate to become a successful broker applicant?
• What should each unit rent for in a quadraplex with a sales price of $150,000 and operating expenses of $30,000 to reach a 20% return?
• What could be a consequence of a broker not disclosing title defects to a buyer?
• In dual agency situations, what factor is crucial for representation to be legal?
• What must a buyer do if the seller's mortgage contains a due-on-sale clause?
• When calculating property taxes, what is considered a mill?
• What is the total state tax due on the sale of a homestead priced at $48,750 with various mortgages and deposits?
• Which legal power permits the State to take property for a public benefit?
• What could happen if a broker withdraws money from an escrow account for personal use but replaces it in time?
• What type of property would be most affected by greenbelt laws?
• Which action is not taken by the Federal Reserve to influence interest rates?
• What is true about real estate taxes?
• Which act requires that buyers be informed about the closing costs?
• What action has Broker Smith committed by selling a lot without disclosing the blanket mortgage?
• What type of property can be depreciated over 27.5 years?
• Which statement concerning a real estate brokerage corporation is false?
• How much earnest money did Mary place with the broker?
• What type of title does a buyer hold in a real estate sales contract?
• Which factor is typically NOT considered when determining loan worthiness?
• What action must a broker take if both the seller and buyer claim the earnest money?
• A mortgagor's right to bring himself out of default by paying money owed to the lender is:
• If a broker purchases property for $10,000 and resells it for $12,000, what is this considered?
• How long must a brokerage partnership replace an active broker if one dies?
• How are expenses on a closing statement categorized?
• What is the maximum period of license suspension for a first offense under Florida law?
• How is a buyer's market defined in relation to a seller's market?
• What term describes the deterioration caused by outside factors in residential properties?
• When may a broker be subject to penalties by the FREC?
• What is the gross income from an apartment building with 5 units yielding different monthly and weekly rents?
• What is typically the primary goal of property assessment?
• What is the maximum administrative fine for violations of F.S. 475?
• What legal process allows the State to take private land for public use?
• In real estate, what concept refers to reduced property value resulting from external factors?
• Which type of lender does NOT participate in the actual lending but instead deals in the secondary market?
• Which of the following describes the nature of radon?
• What is the maximum limit established by law for a VA-guaranteed loan?
• What is required for a property owner to be considered a tenant by the entireties?
• If Broker Bill receives airline tickets for recommending a title company, this situation is considered:
• How many discount points are needed to raise a lender’s yield by 1%?
• Estimating the minimum value of the tangible assets of a business is known as?
• How many years can nonresidential property improvements be depreciated?
• How much will a property owner be assessed for street paving if they own 180 ft on Elm Street at a cost of $124 per foot with the city covering 30%?
• When must a broker notify the Florida Real Estate Commission (FREC) about an escrow dispute?
• What is the primary purpose of a closing statement?
• What adjustment is made for a bathroom in the comparative market analysis provided?
• When a property owner dies intestate, how is the property transferred?
• What typically results in an appraiser estimating a property's value?
• In which situation can a broker assist in discriminatory practices?
• In what type of tenancy does a deceased tenant's interest pass to their heirs?
• When a builder constructs a home on their land without a specific buyer, this is referred to as:
• What is the gross rent multiplier for a house valued at $65,000 with a monthly rent of $500?
• Where can Broker Bill open his escrow account according to Florida Law?
• What percentage of profit did Mrs. Levine earn by purchasing a property at 80% of market value and reselling it for full market value?
• Which of the following best describes the concept of "highest and best use"?
• Which of the following is not considered a factor of production?
• What legal requirement must Lucy adhere to when she receives an earnest money check as an unlicensed office administrator?
• What is the capitalization rate for a property selling for $2 million with an effective gross income of $450,000 and net income of $325,000?
• How many feet are there in a mile?
• Who is responsible for making FHA-insured loans?
• A lender that lends money directly to a borrower is called what?
• What is the broker’s legal obligation regarding known material facts when selling a property?
• How much are Mr. Smith's property taxes for the year if the assessed value is $150,000 with a total millage rate of 25 mills?
• In a general partnership brokerage with an active broker, what happens if that broker dies?
• On a closing statement, what is the purchase price for the property classified as?
• Which of the following is not a step in the cost depreciation approach?
• What is an effect of a new factory on local housing supply?
• Who is prohibited from performing real estate services without a license?
• What can a claimant recover from the Real Estate Recovery Fund for compensatory damages?
• What would not be an advantage of real estate investment?
• What effect would a new factory adding 3,000 people to a population with adequate housing have?
• After holding a tax certificate for 2 years, what action can the holder take?
• What should a broker do when receiving multiple offers on a property?
• What is the term for the gradual reduction of debt through regular payments?
• Which of the following is typically a custom in determining who pays closing costs?
• What term describes the most effective economic use of real estate?
• A fiduciary duty exists between which two parties?
• A type of lot on a U-shaped block is referred to as what type?
• What compensation can a Kentucky broker receive for assisting a Florida broker without being licensed in Florida?
• A business with a sales price of $1 million would be referred to as?
• A purchaser of real estate gives one mortgage covering 5 different parcels of real estate. This is known as a?
• What is the power of government to promote the health, safety, and welfare of society referred to as?
• If a person provides real estate services without compensation, what license requirements apply?
• Which law requires lenders to provide a good-faith estimate of closing costs to borrowers?
• What is the legality of a sales associate depositing a total commission check into their personal account?
• Which of the following is true regarding shared commissions between out-of-state brokers?
• What must the rules and regulations of the FREC be filed with to be effective?
• What is the main purpose of leverage in real estate investments?
• What factor does the capitalization rate rely on?
• In building a 15,000 sq.ft restaurant requiring 34 parking spaces, which lot is adequate for development if both lots A (100 ft x 200 ft) and B (90 ft x 210 ft) are options?
• What is the value of a property with an effective gross income of $30,000 and expenses of $12,000 if the expected rate of return is 12%?
• Which of the following would NOT typically be prorated on a closing statement?
• What is the status of a real estate license for a military member during service?
• What happens when a temporary shelter is set up in a subdivision by a broker?
• How is the proration for taxes assessed on a nonhomestead property sold on April 12th calculated if the millage rate is 24 mills?
• Which of the following describes a principal meridian's direction?
• When two dwellings have the same use, a perspective purchaser will select which option based on the economic principle of?
• At what price must Jane's house sell in order to net $150,000 after paying 6% commission and $4,200 in closing costs?
• What is the most common type of exterior wall material used in Florida?
• What is the FHA?
• What is the percentage rate of return used to estimate property value from forecasted income called?
• What is the main purpose of the granting clause in a deed?
• Radon is described as:
• In the scenario where a broker offers lottery tickets for property sales, what is the legal issue at hand?
• If appointed by a court to appraise a property, what can a service station owner with an inactive license expect?
• What is the legal term for the process by which a property owner dies without a will or heirs?
• When calculating the commission for a property sale, what percentage does the broker keep if they pay 5% to the MLS and 65% to the sales associate?
• Which of the following actions is allowed for a licensed broker?
• How are real estate taxes typically paid?
• According to the Telephone Consumer Protection Act of 1991, how can a real estate licensee comply with the Do-Not-Call registry?
• Truth in Lending (Regulation Z) requires the disclosure of?
• Which of the following is not an example of external obsolescence for a residential property?
• What should a licensee do if they are charged with a crime?
• A 4 bedroom, 1 bath home is an example of?
• What is the monthly rent per apartment if an investor aims for a 20% return on a $150,000 quadraplex with $30,000 expenses?
• Is it legal for a Florida broker to pay a referral fee to a California broker not traveling to Florida?
• Which option would not terminate a purchase contract?
• When must a sales associate remit earnest money to their broker?
• What is an abstract in real estate?
• If a property originally valued at $100,000 is affected by a 10% annual inflation, what would its value be after one year?
• What does "escrow" refer to in real estate transactions?
• What is one requirement for a contract to be valid?
• If an individual dies without a will and without known heirs, the property passes to whom?
• Which penalty may not be imposed by the Florida Real Estate Commission (FREC)?
• Which situation typically allows for a buyer to retain their deposit in a real estate transaction?
• Which provision in Florida law protects farmers from excessive taxes in areas of high development?
• Who is in violation of the law when an unlicensed secretary refers leads to her broker for compensation?
• What title holding method allows the deceased owner's interest to pass automatically to the surviving owner?
• If a property is purchased for 60% of its asking price and resold for 100% of the original asking price, what is the profit percentage?
• Which statement is correct regarding mortgages?
• The additional value from an extra bedroom in a comparable property would be?
• What is the policy called that the Federal Reserve uses to control the money supply?
• A judgment against the personal assets of a mortgagor following foreclosure is known as what?
• Which statement is false?
• Which zoning category primarily considers density?
• What is the legal implication for a sales associate representing both the buyer and seller in a transaction?
• What is the consequence for a broker selling outdated rental lists?
• The rate of return used to estimate property value from a forecasted income is referred to as?
• What action would the FREC take if a licensed individual moved to Florida and failed to disclose a prior felony charge?