Practice Exam

Which of the following professionals involved in the real estate business are most concerned about managing real estate for clients?

Real estate can be defined as

Which of the following is included in the bundle of rights inherent in ownership?

The overriding test of whether an item is a fixture or personal property is

An owner of a lakefront property tells a fisherman that he cannot fish in a boat within fifty feet of the owner’s shoreline. The fisherman protests that the owner cannot prevent him. Which of the following is true?

The distinguishing feature of a defeasible fee simple estate is that

Dower can best be defined as

A distinct feature of a joint tenancy is that joint tenants

Interests in a condominium differ from those in a cooperative, in that

There are two adjoining properties. An easement allows property A to use the access road that belongs to property B. In this situation, property B is said to be which of the following in relation to property A?

Title records of a property reveal several recorded liens: a one-year old judgment lien; a mechanic’s lien dating from two years ago; a special assessment tax lien recorded last month; and a first mortgage lien recorded five years ago. In case of a foreclosure, which of these liens will be paid first?

A lender may terminate foreclosure proceedings if the defaulting borrower executes

A person has occupied a property for seven years, and no one has ever attempted to evict her or co-occupy the parcel. In this case, the person might base a claim of legal ownership on

A person wishes to convey any and all interests in a property to another with full assurances against encumbrances, liens, or any other title defects on the property. This party would most likely use which of the following types of deed?

The chain of title to a property refers to which of the following?

A government entity takes title to a leased property by way of eminent domain. What happens to the lease?

The Florida Residential Landlord and Tenant Act fundamentally attempts to

A primary objective of residential zoning is

A shop was originally built in a commercial zone. The zone has since been changed to a residential zone. Zoning authorities permit the use, most likely as

Authorities conduct comprehensive land use planning in order to

The purpose of a formal legal description of a property is to

A parcel is described as the SW 1/4 of the N 1/2 of the E 1/2 of Section 14. What is its acreage?

A suburb has a growing need for single-family housing, but the land available for new construction is running low. In this case, it is likely that the price of existing homes

The demand for homes in a market is best expressed in terms of

What is the significance of base employment in a real estate market?

The concept known as substitution states that

The “price that a willing, informed, and unpressured seller and buyer agree upon for a property, assuming a cash price and reasonable exposure of the property to the market” describes which of the following concepts of value?

A warehouse building lacks sufficient ceiling height for the operation of modern forklifts. This is an example of

To derive value using the income capitalization approach, one must

An office building rents for $600,000, has expenses of $400,000, and a cash flow of $100,000. The prevailing gross rent multiplier is 8. Using the GRM, what is the value of the building?

An owner obtains a loan and gives the mortgagee a mortgage on the property as collateral. The mortgagor/owner retains title to the property, and the mortgagee records a lien. This is an example of

An important characteristic of a promissory note is that

Disclosure of estimated closing costs is required of a lender in order to comply with

The secondary mortgage market organizations do all of the following EXCEPT

Negative amortization of a loan occurs whenever

A borrower earns $3,000/month and makes credit card and car note payments of $500. A conventional lender requires a 27% income ratio. What monthly amount for housing expenses (principal, interest, taxes, insurance) will the lender allow this person to have in order to qualify for a conventional mortgage loan?

A $250,000 interest-only loan carries a 7% rate. Monthly payments are

A lender is charging 2.75 points on a $240,000 loan. How much must the borrower pay for points?

Which of the following is generally true of a real estate investment?

The capital gain on sale of an investment is computed as

The formula for return on equity is

Mary Bright bought a home for $80,000, paying $10,000 down and taking a mortgage loan of $70,000. The following year she had a new roof put on, at a cost of $2,000. What is Mary’s adjusted basis in the house if she now sells the house for $300,000?

An office building has a potential income of $500,000 and vacancy of 10%. Its cash-paid bills total $300,000, and annual depreciation is $5,000. Payments on the loan total $100,000. What is the property’s pre-tax cash flow?

A property is purchased for $200,000. Improvements account for 75% of the value. Given a 39-year depreciation term, what is the annual depreciation expense?

An income property is bought for $500,000. Gross income is $100,000, and net operating income is $60,000. Cash flow is $10,000. What is the return on investment (ROI)?

Which of the following is the formula for deriving the tax base of a jurisdiction?

The purpose of a homestead tax exemption is

A homeowner’s tax bill for a taxing district is derived by

The village of Parrish has an annual budget requirement of $20,000,000 to be funded by property taxes. Assessed valuations are $400,000,000, and exemptions total $25,000,000. What must the tax rate be to finance the budget?

A canal dredging project is to cost $100,000. There are 40 properties along the canal, and 40 others across the street from the canal. The total canal footage to be dredged is 2,500 feet. How much will the assessment be for a 150-foot property on the canal?

A prospective homebuyer offers to buy a house if the seller agrees to pay financing points at closing. The seller gets the offer, signs it, and gives it to his agent to deliver. At this point the status of the offer is

52. One aim of the statute of frauds is to

A buyer agrees to all terms of a seller’s offer and sends notice of acceptance back to the seller. The seller now tells the buyer the deal is off because he has learned that the home was underpriced. Which of the following is true?

A principal discloses to the listing agent that she must sell a property within two months to avoid a financial problem. Nearly seven weeks later, a buyer’s agent hears of the seller’s difficulty from the listing agent and advises his buyer to submit an offer for 80% of the listed price. The buyer complies, and the seller accepts the offer. Which of the following is true?

An owner’s agent is showing a buyer an apartment building. The buyer questions the agent as to whether some cracking paint contains lead. The agent’s best course of action is to

A type of agency relationship that is illegal in Florida is

When must a transaction broker disclose his or her agency relationship to the transaction principals?

An agent obtains a listing which ensures compensation for procuring a customer, provided the agent is the procuring cause. This agent has entered into a(n)

A landlord promises to compensate a broker for procuring a tenant, provided the landlord’s brother decides not to rent the property within a month. This would be an example of a(n)

The amount of a real estate brokerage commission is determined by

The Brokerage Relationship Disclosure Act applies to transactions involving all the following property types EXCEPT

A Florida licensee representing an owner as a single agent must be careful to

An example of conversion is

Three leading agencies charge identical commission rates for brokering office properties in Phoenix. Which of the following is true?

A business owner insists on a price for his enterprise that exceeds the value of the tangible assets, claiming that it is a well-known family business with a loyal clientele. The excess value is known as

An agent informs owners in an area that a decline in property values over the past five years is due to an influx of minority families. He suggests that the trend will continue, and advises them to sell before it is too late. This agent is probably guilty of

An agent spends two hours with a minority buyer, then shows the buyer five available properties all over town. Later, a similarly qualified minority couple enter the office. The agent spends twenty minutes with the couple, gives them the MLS book to review, and encourages them to drive by the listings on their way home. If they like anything, they should come back the next day to discuss terms. This agent could be liable for

An owner suddenly pulls a property off the market after hearing from the agent that a minority party has made a full-price offer. The agent then goes back to the minority party and reports that the seller has decided to wait until next year to sell the home. Who, if anyone, has violated fair housing laws?

An owner completes a contract to sell her property. Before closing, she runs into financial trouble and assigns the contract to her mortgagor. Which of the following is true?

Buyers and sellers rely on escrow accounts in order to

An option-to-purchase expires. The landlord agrees to extend it in exchange for a higher price. The optionee claims he can exercise the option within the redemption period. Which is true?

RESPA requires specific closing procedures whenever

When an item is prorated between buyer and seller on a settlement statement, the closing officer must

Which of the following items are paid in arrears?

A sale transaction on rental property closes on December 16. The landlord received the December rent of $713 on December 1. Assuming the closing day is the seller’s, and that the 365-day method is used for prorating, which of the following entries would appear on the settlement statement?

Which of the following persons selling a time-share must hold a real estate license?

Listing agreements are governed by two bodies of laws. These are agency laws and

In the contracting process, a licensee must be careful to avoid

If a license is issued by a mistake of the Commission, the Commission can justifiably

A broker responsible for handling a trust account is violating the law by

The sending of unsolicited commercial email to cell phones is banned by the

Which of the following actions by a Florida real estate licensee would violate a federal or Florida telemarketing law?

A landlord refuses to rent to a single pregnant woman. The woman feels there has been illegal discrimination. How long do she have to file a complaint with the Florida commission on Human Relations?

When do Florida counties send out property tax bills to homeowners?

What is likely to happen if a homeowner fails to pay an authorized assessment to a homeowner’s association?

An unlicensed applicant may be denied licensure if he presented himself as a licensee prior to applying for a license

Some fees may be waived for certain individuals. The _______ is not one of those fees.

When is a sales associate’s license issued?

A real estate license ceases to be in force when

If a licensee fails to renew the license within 2 years of becoming involuntarily inactive,

Florida disclosure requirements apply to

When offering a representation of value, the broker may not

Under which of the following conditions might a kickback be legal?

A sales associate or broker associate must notify the FREC of a change of employing broker within ____ of the change.

Which of the following entities may not register as a brokerage?

If a licensee does not agree with a final hearing order, the licensee may file an appeal within _____ days of receiving the order.

Which of the following entities is authorized to impose criminal penalties?

Tenants who have been given a notice to vacate the rental unit for nonpayment of rent have _______ to vacate.

In which type of community is there a governing body responsible for providing community development services?

If Jerrod bought a property valued at $250,000 and paid a $60,000 cash down payment, how much coverage should be on the owner’s title insurance policy?

An Assessor Parcel Number’s primary use is

Which of the following statements is true?

Florida places an intangible tax on

When is an appraisal report officially certified?

In the sale of a business, liabilities are considered when

Which is true regarding the Florida Greenbelt Law?

When is a superior lien placed on a property for unpaid property taxes?

In Florida, when a tax certificate is purchased at a tax certificate sale, the certificate is valid for

Which of the following is an NFIP requirement specific to nonresidential structures in a special flood hazard area?

Which flood zone has the highest flood risk?