Florida Real Estate Exam Associate Test Questions

Front 1

Created in favor of the head of the household

Back 1

Homestead

Front 2

Lease has a beginning and an end date and is in writing

Back 2

Tenancy for years

Front 3

Taxes and debts are handled, percentage of real property a widow and two children receive after husband‘s death if property is owned as tenancy by the entireties

Back 3

100%

Front 4

Bill and Sarah were recently married and purchased a home together. Sarah own a home prior to marriage her home is

Back 4

Separate property

Front 5

Liens as there was priority based on the date they were recorded

When do mechanic liens dates go into effect

Back 5

Materials delivery date or date work started

Front 6

Name superior liens

Back 6

Real estate tax lien

Special assessment liens

Federal estate tax liens(Not to find a superior but must be dealt with when title transfers and cannot be foreclosed or eliminated through bankruptcy)

Front 7

Synonym for constructive notice

Back 7

Legal notice

Front 8

Which clause of a deed contains the type of estate being conveyed

Back 8

Habendum clause

Front 9

Which the following will generally result in a fair market value compensation following litigation

Back 9

condemnation

Condemned

Front 10

Rental property has tenant with one-year lease. Property sold before lease expires. What happens

Back 10

The lease is binding on the new owner

Front 11

In order for title to real estate to transfer from one person to another a deed must be

Back 11

Delivered and accepted

Front 12

Talk about RESPA

Back 12

The Act requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures regarding the nature and costs of the real estate settlement process. The Act also prohibits specific practices, such as kickbacks, and places limitations upon the use of escrow accounts.

Front 13

What is the section that is located directly south of section 32

Back 13

Five

Front 14

SA takes an exclusive right of sale listing on nov 5 for 6 months

Seller files bankruptcy on December 2

SA continue to market the home and I know December 21 fines are ready willing and able buyer with a full cash price offer

What happens to SA commission

Back 14

SAIt’s not entitled to commission because the owner is no longer in control of the property

Front 15

Difference between a void contract and a voidable contract

Back 15

I void contract does not have all the elements necessary for a contract

A voidable contract is a contract involving a minor or other in competent parties where the incompetent party has the choice to enforce or resend the contract

Front 16

What’s a promissory note

Back 16

Recognition of a death and the promise to repay

Front 17

The witness will also be liable for the debt

Back 17

The witness will also be liable for the debt

Front 18

Someone in teams and mortgage loan that covers the home and the vacant lot next-door what is this called

Back 18

Blanket mortgage with plottage

Front 19

The federal national mortgage association was created to do what

Back 19

To purchase FH a insured loans from savings and loans

Front 20

Is a life insurance company considered an intermediary

Back 20

No

Front 21

How are earnest money deposits shown on a closing statement

Back 21

Credit to buyer

Front 22

On the closing statement and assumed mortgage is a debit/credit

Back 22

Debit to seller credit to buyer

Front 23

Developer plans to construct a drugstore on a zone residential site. What is required for this to happen

Back 23

Developer must apply for a special exemption

Front 24

What is a seller not able to do if a buyer defaults on the contract

Back 24

Request an escrow disbursement order

Front 25

If the capitalization rate goes up in the net income remains stable what happens to the properties value

Back 25

It will decrease

Front 26

Describe principle of conformity

Back 26

Unified construction styles builds value

Areas with large amounts of differences and home styles worth in size can bring it down

Front 27

Steve is renting a condo month-to-month. What type of notice message the landlord give the termination agreement

Back 27

15 days

Front 28

The second letter represents what in credit debit

Back 28

Debit = E, expense

Credit = R, receipt

Front 29

Expenses are credit or debit

Back 29

Debits

Front 30

Responsibility regulate and enforce rules of the real estate industry falls under which of the following Frec powers

Back 30

Executive

Front 31

Andrew is subdividing a large track and a single lots he intends to hire his brother John to sell lots on a salary plus commission basis. What Approvals are needed

Back 31

John must be a licensed sales associate, Andrew must register as owner employer with DPPR

Front 32

Broker finds a possible title problem and informed the buyer of it. The buyer still insists on getting the property, the broker should

Back 32

Continue because buyer was properly informed of the problem

Front 33

And in active broker license decides to become active. When can work begin

Back 33

The day the request for change is received by the DRE

Front 34

Define conversion

Back 34

On authorized active using the funds or property of another for ones own use

Front 35

The housing expense ratio for the FHA insured loans should not exceed

Back 35

31% of the gross monthly income

Front 36

Florida broker pays referral fees to a Georgia broker who comes to Florida and helps write the contract. Is this OK

Back 36

Broth brokers are in violation of chapter 475

Front 37

Anytime my broker refuses to pay a sales associate a commission that was legally earned the broker could be guilty of

Back 37

Failure to account and deliver

Front 38

Broker hours except a check as a binder deposit on Wednesday and on the following Monday deposit it in her escrow account. The check is returned due to insufficient funds. What has broker Alice done wrong

Back 38

Nothing

Front 39

Prior to the acceptance of an offer the earnest money deposit is under the control of who

Back 39

The offeror

Front 40

A limited partnership is formed in which Martin and John are general partners and Abraham is a limited partner. What is Abraham’s role in the partnership

Back 40

He can contribute cash or property but not services

Front 41

Notifying the FREC within 15 business days of expiration of a contract an example of

Back 41

Good faith doubt

Front 42

Broker Frank and sales associate Don want to start a real estate brokerage corporation in which both hold equal shares of stock. What must happen for this to be legal

Back 42

Legal provided Dan does not participate as an officer or director of the corporation

Front 43

Describe the differences between custom,Speculative and track housings

Back 43

Custom = build for client

Spec = builder owns land builds to attract fire

Track = fire selects lot then choose his floor planThat was approved in that subdivision

Front 44

Three titles that may not be held buy a sales associate

Back 44

General partner

Officer for corporation

Sole proprietor

Front 45

Broker Tom was found guilty of two violations of FS 475. Frec has the power and authority to

Back 45

Suspend Tam’s license, place him on probation, find Tom up to 5000 K per violation

Front 46

How long does a respondent have to file written exceptions to the recommended order drafted by the administrative law judge

Back 46

10 days

Front 47

When does information in a complaint sent to the DBPR become public knowledge

Back 47

When the Administrative complaint is filed

Front 48

A VA loan partially guarantees the lender against default by the mortgagor

True or false

Back 48

True

Front 49

Appraisal based on principle of anticipation

Back 49

Income capitalization approach

Front 50

What type of contract is an option contract

Back 50

Unilateral

Front 51

Is depreciation considered to be an operating expense

Back 51

No

Front 52

Deeeed order an arrangement

Back 52

Identify peeps, money❤️, convey(granting clause explaining the purpose of this deal is to give, Transfer, convey) interests being conveyed(habendum) restrictions (HOA, easements) Exceptions and reservations,, appurtenances(condonpark spot), voluntary delivery and acceptance, two witnesses, notary to record, grantee does not sign

Front 53

Covenant of seisen

Back 53

Promise the grantor has the legal right to convey property

Front 54

Covenant against encumbrances

Back 54

Promise that there are no liens on property they have not been listed on title

Front 55

Covenant of quiet enjoyment,

Back 55

promise that no other person has the right to use the property

Front 56

Covenant of further assurance

Back 56

Promise that grantor will provide any necessary documentation needed to confirm title at a later date

Front 57

Covenant of warranty forever

Back 57

Promise that no other person has the right to disturb title at a later time

Front 58

Name covenants in a quick claim deed

Back 58

There are none

Front 59

What deed meets all covenants

Back 59

Warranty deed

Front 60

2 ways to convey deeds

List examples

Back 60

Voluntary and involuntary

Voluntary, the grantor makes the decision to convey the property example deed will gift

Involuntary, the owner does not make the decision to convey the property examples for closure tax deed intestate

Front 61

Freehold estate

Back 61

Interest in property that cannot be measured by calendar time

Ownership, life estate

Front 62

Non-freehold estate

Back 62

Interest in property which can be measured by calendar time

Lease=estate for years

Front 63

What are the 2 types of a lien claim against real property?

Name the 2 second types

Back 63

Voluntary and involuntary then general and specific

Voluntary, consented to lean i.e. mortgage

Involuntary, not expressly consented, property taxes

General, does not attached to a specific parcel of property examples court judgment, income tax lien

Specific, attaches to a specific parcel of property, mortgage

Front 64

Difference between general and specific types of liens

Back 64

General = does not attach to a specific parcel of property, income tax

Specific = attaches to a specific parcel of property, mortgage

Front 65

Accretion alluvion

Which ones a result which ones are process

Back 65

Accretion = process

Alluvion = result

Front 66

Personal property can be part of real estate in the process called _______

What’s it called after this happens

Back 66

Person probably can become part of real property state in the process called attachment

Once attached the personal property becomes a fixture and part of the real property

Front 67

Define disposition in bundle of rights

Back 67

Disposition is a transfer of title or an interest in property examples sale, mortgage, lease,

Front 68

What is a Tipperary transfer of the right to use, be in possession of a property, but title/ownership remains with the owner

Back 68

Lease, DEEPC ,possession and use

Front 69

What is the most likely price that a probable buyer will pay for a property an open market sale

No opinion /unbiased

Back 69

Appraisal

Front 70

There are three types of appraisals what are they

Back 70

Market data approach

Income approach

Cost approach

Front 71

Characteristics of value, DUST

Back 71

Principles of value, substitution, highest and best use, increasing and decreasing returns, conformity, progression or regression(overimprovement), assemblage or plottage

Front 72

What’s the biggest contributor to the market data approach

Back 72

Property of substitution

Front 73

Capitalization income approach describe

Back 73

Converts income into value

A property that can bring in more income will increase the value. Capitalization approach would be most appropriate for a shopping center

Front 74

Cost of replacement approach

Back 74

Was commonly used to appraise special purpose properties like police stations schools churches

Front 75

Talk about the cost of replacement (depreciation)approach

Back 75

Cost appreciation approach sets the upper limit of value. New property not old property. Accounts cost to replace an improvement with another improvement having the same utility

Front 76

Two different properties are located side-by-side in the same neighborhood. They were both built by the same contractor, at the same time, for the same cost, or maintain the same, and contain the same square footage, if one property is worth less than the other it would be due to

Back 76

Functional obsolescence

Front 77

Examples of economic obsolescence

Back 77

Gas station put in next door, crime rate goes up

Front 78

Explain how to get the current worth of a property using cost depreciation approach

Back 78

Cost appreciation approach = reproduction cost - depreciation + land value =current value

Front 79

Joe purchased a building valued at $295,000 with an estimated 25 year useful life. Joe owns the building for six years. Using straight line depreciation find the depreciation value of the building.

Back 79

The depreciated value of the building today = $224,200

Cost - depreciation = building value

295,000÷25×6 = $70,800

Front 80

Appraising

CIA CBS

Back 80

Comp inferior ADD

Comp better subtract

Front 81

Frec was created to

Back 81

Ensure minimal competency of real estate practitioners

Front 82

What makes it fiduciary relationship

Back 82

Trust and obedience

Front 83

Real estate can be best defined as

Back 83

Tangible assets such as land and buildings

Front 84

Tampa Electric takes private property for the purpose of power easements this process is known as

Back 84

Eminent domain

Front 85

A township contains

Back 85

36 mi.²

Front 86

Sales associate accepted a $3000 earnest money deposit from a buyer that was made out in her name. What action should be taken

Back 86

Endorse the check over to her broker, ask the buyer to write a new check to the broker

Front 87

As a transaction broker what disclosures should be made

Back 87

Disclosures are not required when acting as a transaction broker

Front 88

What conditions are assumed in a real estate sale

Back 88

Arms length transaction between buyer and seller

Front 89

Define reconciliation

Back 89

The process by which an appraiser evaluates chooses ways and selects from among two or more alternative conclusions or indications to reach a single answer, final value estimate

Front 90

What type real estate type of practice is used for liquidation value

Back 90

Business brokerage

Front 91

The actual operating expenses may be higher than expected and income earned maybe lower than projected is known as

Back 91

Business risk

Front 92

Each year the local property appraiser determines the value of real estate according to its fair and equitable value known as_______ value

Back 92

Just value

Front 93

A property listed in which the previous owner was killed during a robbery what disclosure does Florida statues require in the situation

Back 93

Florida statute does not require real estate licensee disclose this information

Front 94

Bob entered into a contract to purchase Steve’s home. A week before prior to closing, Bob legally assigned the contract and Fred. One day prior to closing Fred decides to withdraw from the transaction and defaults on the contract. What are Steve’s rates

Back 94

Steve can sue either Bob or Fred for specific performance. Steve can keep the deposit is liquidated damages. He can do either but he can’t do both

Front 95

Who must pay for any advertising that uses the brokers name

Back 95

The broker

Front 96

Exculpatory clause def

Back 96

A provisional mortgage which relieves the borrower of personal liability in the event of a deficiency judgment

Front 97

To determine the correct amount of property tax for each property multiply the tax rate by the

Back 97

Taxable value of the property

Front 98

What does the government national mortgage association do

Back 98

Offer special assistance to various housing subsidy programs, support of the secondary mortgage market through guarantees of mortgage back securities, and managing and liquidating his portfolio of conventional government under written mortgages are the functions

Front 99

FNMA Buys and sells which of the following types of mortgages

Back 99

VA, FHA, and conventional mortgages

Front 100

How does recording of a new mortgage show up on the closing expenses for a buyer

Back 100

Debit to buyer

Front 101

The Florida uniform land sales practice act applies to certain subdivisions that require the delivery of public offering statements and contain

Back 101

50 or more lots

Front 102

Can a license he lose his license for paying a commission to a non-licensed person

Back 102

Yes

Front 103

The Florida real estate licensing laws are part of the

Back 103

Florida statutes

Front 104

Can a non-broker who is licensed as an agent form a corporation in which they own 75% of the shares with the other 25%owned by a broker

Back 104

No this arrangement violates the law

Front 105

Ways a licensed broker may act independently

Back 105

In a transaction

Selling their own home, provided all parties know seller holds a license

Owns 100% of the stock in the brokerage firm that employs them

Front 106

Licensees pay fees for what

Back 106

Application fee, late fee, license history certification

Front 107

Who pays real estate associates compensation

Back 107

The broker

Front 108

A broker may not pay commission to unlicensed Florida agent if

Back 108

Broker from another state, provided Florida laws are observed

Front 109

At least one partner must be licensed as a broker

Any partner who deals with public and provides a real estate service must be a broker

Sales associates may not be general partners

Back 109

At least one partner must be licensed as a broker

Any partner who deals with public and provides a real estate service must be a broker

Sales associates may not be general partners

Front 110

A real estate licensee may request an informal hearing if

Back 110

Requests it before the FREC

Does not dispute allegations of material fact

Signs an election of rights

Front 111

Limit on amounts from recovery fund

Back 111

50,000 per transaction

150,000 per broker

Front 112

Can attorneys and CPAs sell any real estate without further licensing

Back 112

No

Front 113

Do people acting for their own ownership interest,

part owners in proportion to their ownership interest,

businesses that sell their own property

need licenses?

Back 113

No, exempt from licensure

Front 114

In a transaction in which the license sales associate perform nearly all the work who is the agent

Back 114

Broker

Front 115

Is a license required for a person who intends to collect a commission, but the property does not sell? advertisers real estate services?is an attorney at law?

Back 115

Yes

Front 116

Mildred, was a broker when the home she showed was under contract. However, her license expired the day before closing. A check for her commission was provided at closing. What happens

Back 116

Mildren can keep the check because she had a license when the commission was earned

Front 117

If the type of agency is not noted or declared, in Florida it is presumed to be

Back 117

Transactional brokerage

Front 118

A broker may place how much of his own funds in a sales escrow account

Back 118

Up to $1000

Front 119

The right to appeal the result of a hearing must be filed within how many days and with who

Back 119

30 days, with the district court of appeals

Front 120

The license renewal fee for a real estate associate is

Back 120

$80

Front 121

Licensee may challenge final order within 30 days by filing an appeal. They may continue to operate by requesting a what

Back 121

State of enforcement,, which if granted stops the enforcement process pending appeal

Front 122

Name three types of penalties imposed if a complaint is found to be valid

Back 122

Administrative, civil, criminal

Administrative penalties, denial of application, we will revoke of license, suspension of license up to 10 years and we’re fine up to $5000 for each violation

Civil penalties, in force by courts including a provision that no commission is payable from a given transaction

Criminal penalties, fine up to $5000 in five years in prison

Front 123

What is the likely offense for false advertising by a broker

Back 123

Second-degree misdemeanor

Front 124

Amount of time a person must have resided in Florida continuously to be eligible for license

Back 124

Four consecutive months

Front 125

Time allowed for license application and pre-license education after applying to Dbpr

Back 125

Two years

Front 126

Time to notify Dbp our change in mailing address, employer, business address

Back 126

10 days

Front 127

Period during which a licensee who becomes a non-resident must file irrevocable consent to service with Dbpr??????

Back 127

60 days

Front 128

Time allowed to file an appeal as a result of a hearing with the District Court of Appeals

Back 128

30 days

Front 129

Deadline for sales associate to turn money in escrow to broker after receipt

Back 129

End of next business day

Front 130

Deadline for a broker deposit escrow money in depository

Back 130

End of third business day after receipt by sales associate

Front 131

Time allowed to notify FREC if broker requested an escrow disbursement order

Back 131

10 days

Front 132

Time allowed to notify FREC of conflicting demands or good faith doubt

Back 132

15 days after conflict

Front 133

Time allowed to instigate settlement procedure after receiving conflicting demands

Back 133

30 business days

Front 134

Who Routinely audits brokers escrow accounts

Back 134

Dbpr

Front 135

Florida statutes chapter 455

Back 135

Describes professions regulated by DBPR and actions it may take in regulating licensees

Front 136

Florida statutes chapter 120

Back 136

Outlines licensing and disciplinary procedures

Front 137

Chapter 61J2

Back 137

Administrative rules of the Florida real estate commission

Front 138

What is the duration of a freehold estate

Back 138

Undetermined time

Front 139

A person who has permission to use land but has no other rights has a

Back 139

License to use

Front 140

What rights does a dower have

Back 140

May have property rights

Front 141

Process where a person holding a claim against property can have the property sold to pay the claim is a

Back 141

Foreclosure

Front 142

Difference between alienation and involuntary alienation

Back 142

Voluntary is the most common when a person receives estates in land.

Voluntary occurs when the owner of an estate is forced in a legal manner to give up summer all rights by the action of law

Front 143

Tenancy in severalty

Back 143

Owned by one person

Front 144

Tenancy in common

Back 144

Ownership by two or more persons. Each one owns an undivided interest, each is entitled to share of the profits and is responsible to the other owners for his share of the cost and expenses. Tenants in common need not own equal shares.Tenants in common may will their shares to someone else or give it away

Front 145

Joint tenancy

Back 145

Similar intense in common except one important difference joint tenants have the right of survivorship.This means if the tenant dies the sheriffs divided proportionally among surviving joint tenants. A joint tenant cannot will share to someone else. If they give interest away, new owners will have the status of tenants in common

Front 146

Tenancy by the entirety’s

Back 146

Special form a joint ownership only allowed to married couples

Front 147

Tenancy at will

Back 147

Occurs when there is a lease arrangement, no specific time. As agreed-upon. Either party can terminate the arrangement whenever they want I eat at Wiil so it’s duration is uncertain

Front 148

Is a one month lease considered real property

Back 148

No

Front 149

adverse possession may establish

Back 149

A claim to title

Front 150

If someone dies without a will who is appointed to settle the estate

Back 150

Administrator

Front 151

$5000

Back 151

$5000

Front 152

A listing contract that says the broker will receive a commission no matter who sells the property is called

Back 152

An exclusive right to sell listing

Front 153

The principle is obligated to compensate the agent for his services T or F

Back 153

T

Front 154

Agency disclosure form must be executed when

Back 154

Upon first substantive contact with a potential seller or buyer

Front 155

An owner who sells property that he developed may engage on license sales staff who receive what

Back 155

Salaries not commissions

Front 156

And a transaction broker relationship the seller or buyer is not responsible for the brokers acts true false

Back 156

True

Front 157

Chapter 475 and poses certain duties and obligations on a broker in all transactions. Written disclosures is required in what types of transactions only

Back 157

Residential

Front 158

Windermere broker pay a finders fee to an unlicensed person

Back 158

If the fee up to $50 is paid by a property management firm to a tenant in an apartment

Front 159

If a buyer and seller reach oral agreement over the price in terms of a contract and seek a brokers help to complete written contract forms, the relationship with a broker is likely a

Back 159

No broker relationship

Front 160

Listing expires after 90 days but had a closet allowed broker to collect a compensation because someone he brought during the listing. Bought after expiration this is called a

Back 160

Broker protection clause

Front 161

Sub agency is the representation of

Back 161

An agent

Front 162

A buyer gives a $5000 earnest money check to the seller’s agent with instructions not to deposit a check for a week and not to tell the seller that the check has not been deposited.The seller’s agent should

Back 162

Disclose the condition to the seller

Front 163

East west lines that are adjusted for the earths curvature from the base line are called

Back 163

Adjusted lines

Front 164

Setbacks are also called

Back 164

Building line

Front 165

Principal type of legal description used in Florida and the US except the original 13 colonies is

Back 165

Government survey

Front 166

The seller of real estate is also known as the

Back 166

Vendor

Front 167

Purchase and sale contract includes a financial contingency. The Purchaser could not obtain the loan required. What happens to the earnest money

Back 167

It is all refunded

Front 168

A buyers final inspection, usually before and before closing, is called

Back 168

A walk-through

Front 169

What is used to substitute a new borrower, with the lenders approval

Back 169

Novation

Front 170

What does ad valorem mean

Back 170

Do you pay your taxes according to the value of your home

Front 171

How many feet in a yard

How many feet in a square yard

How many feet in a cubic yard

Back 171

3 feet in a yard

9 feet in a square yard

27 ft.³ in a cubic yard

Front 172

Mortgagor = new owner

Mortgagee = lendee?

Back 172

11

Front 173

When a landlord excepts the security deposit will the landlord legally be able to do with the funds

Back 173

Coming on the funds provided sufficient bond is posted with the clerk of court and pay the tenant interest. Deposit such funds in a separate non-interest-bearing account

Front 174

What is a purchase money mortgage

Back 174

Any mortgage used to finance the purchase of real property

Front 175

What provision is provided when a borrower receives their true cost of borrowing expressed an APR

Back 175

Truth in lending act

Front 176

An agency relationship is created when

Back 176

Broker and principal enter into an employment contract

Front 177

Name three facts about a single agency relationship in Florida

Back 177

Governed by Florida statute 475, is fiduciary, relationship must be in writing

Front 178

An economic concept that sets an upper limit of value to any particular property is called the

Back 178

Principle of substitution

Front 179

Three facts about the federal national mortgage association

Back 179

Regulated by Fed, privately held stockholders, provides for a secondary mortgage market

Front 180

Most accurate measure for describing land

Back 180

Meats and bounds

Front 181

Which power of the government represents the brightest power of government to limit or regulate the rights of property owners

Back 181

Police power

Front 182

Violation of rental list rules what type of charge

Back 182

Firstdegree misdemeanor

Front 183

Fair housing act of 1968 as amended prohibits discrimination based upon

Back 183

Race color religion sex or national origin family status or handicap

Front 184

Regulation of real estate practices as what branch of the Frick

Back 184

Executive powers

Front 185

If your license expires before you start a listing how much does the seller oh the agent if it closes

Back 185

Nothing

Front 186

Active broker failed to renew license as required, what will the license status be

Back 186

Involuntary and active

Front 187

Most important aspect of real estate investment is its

Back 187

Economic soundness

Front 188

I deed restriction is an encumbrance true or false

Back 188

True

Front 189

Real estate is a business of many specializations

What are they

Back 189

Property transfer, market conditions, sales and marketing

Front 190

Caveat emptor

Nolo contendre

Prima facie evidence

Back 190

Let the buyer beware

plea of no contest in court

Evidence that is valid and admissible on its face requiring no further proof of authenticity

Front 191

How to get a license through mutual recognition

Back 191

40 question exam on real estate law, 75% or higher

Front 192

DRE is a division of_______

They are chiefly empowered to provide administrative assistance and support to———?

Back 192

DBPR

FREC

Front 193

What happens when a license is inactive and how does a license become inactive

Back 193

If in active they are prohibited from performing real estate services for a fee.

License expires prior to proper renewal, licensee request in active status by filing with DRE

Front 194

Voluntary inactive ,,How long can a status maintain that

Back 194

Indefinitely, as long as licensee complies with all education requirements and pays appropriate renewal fees

Front 195

When does a voluntary inactive status becomes involuntary inactive

Back 195

Fails to submit a renewal application, fails to pay appropriate renewal fees, does not complete 14 hours of continuing education, is registered with a broker whose license is suspended or revoked

If your license automatically becomes involuntary inactive it can remain in effect for two years,After that it becomes Null and void

Front 196

Inactive to active

Back 196

Less than 12 months = must submit proper renewal pay appropriate fees, including late fees, and confirm continue education requirements have been fulfiled

After 12 months but less than 24 = pay renewal, pay fees, including late fees, show completion of a 28 hour in class education for reactivation credit

Front 197

Name ways a license can become ineffective

Back 197

Canceled = broker resigns, dies, failed to renew broker license

Suspended = temporary penalty no more than 10 years

Involuntary and active = broker has license suspended or revoked

Sis to be in force = broker change his address, real estate school change his address, change employer, DRE not notified within 10 days of moving

Front 198

Multiple licenses =

Back 198

Allows a broker to be the broker of record for more than one brokerage entity, provided broker can demonstrate business needs and also demonstrate no conflict of interest

Front 199

Group license =

Back 199

S a or BA who are employed by an unlicensed owner of real estate, such as a developer. Can work more from one but must demonstrate the same person is driving force behind both projects,

Front 200

Designated sales associate

Back 200

Assets over 1 million

Front 201

Special agent

Back 201

One specific transaction

Front 202

Transition from single agent to transaction broker

Back 202

Provide principal with a consent to transition form

Front 203

Universal agent

Back 203

Agent authorized by principal who is legally allowed to preform Any act of the principle is permitted to delegate

Front 204

Blind advertisement

Back 204

Fails to indicate license name of brokerage

Front 205

Internet advertisements, point of contact must contain

Back 205

Name of brokerage, address both physical and mailing, email address, and telephone numbers

Front 206

Fines for federal do not call list

Back 206

$11,000

Front 207

Fines for Florida do not call list

Back 207

$10,000 a year

Front 208

Mediation =

Back 208

Third-party mediator, reach voluntary settlement, if no mediated settlement within 90 days another settlement procedure must commence

Front 209

Arbitration =

Back 209

Trained arbitrators consider arguments of all parties and render a decision to the disposition of the deposit

Front 210

Litigation =

Back 210

Interpleader = legal procedure the court system can use to resolve the party dispute

Regardless of settlement procedures utilize, the broker must notify FREC within 10 days in a form them of result

Front 211

Rental information

Back 211

Tenant must be provided a receipt that states his or her rights to refund under certain circumstances

If an accurate 100% refund Within 30 days

Tenant does not lease, 75% refund

Violation of Florida rental laws is a first-degree misdemeanor punishable up to $1000 or one year in jail

Front 212

When can a licensee pay an unlicensed person for performing real estate services

Back 212

$50 referral fee by property managers

Front 213

If a broker fails to pay a commission that is legally do a sales associate, broker can be found guilty of?

Back 213

Failure to account, judgment must be entered by a court of law

Front 214

Sole proprietorship =

Back 214

Business owned by one person. Must be broker, responsible for acts of agents working underneath

Front 215

General partnership =

Back 215

Business owned by two or more individuals who share in profits and losses. Must have one partner be an active broker.No formal documents must be signed or filed to create a general partnership although good business practices suggest that a partnership should sign a partnership agreement.

Front 216

A general partnership may register with DRE to broker real estate with the following conditions

Back 216

One partner must be active Florida broker

S a andBA cannot be a partner of brokerage general partnership

Any unlicensed individual acting as a partner (must not provide real estate services) must register their names and addresses with DRE

Front 217

Ostensible partnership

Back 217

Perception of partnership

Front 218

Corporation, owned by stockholders, for-profit or nonprofit can register with the DRE to broker real estate with the following conditions

Back 218

One of the offericers must be an active real estate broker

Sales associates and broker associates cannot participate as officers or directors of the brokerage corporation

An unlicensed individual acting as an officer or director may not provide real estate services but must register her name with the address to DRE

Anyone including sales associates and Brooke or associates can be a stock holder in a real estate Corporation provided she does not act in the capacity of a director or officer

Front 219

Limited partnership =

Back 219

Limited partnership consist of one or more limited partners and one or more general partners

Limited partners are investors only and do not participate in operations

General partner acts as goal setter, for the business but is also responsible for business operations

Front 220

A limited partnership can register with the DRE to Broker real estate with the following conditions

Back 220

One general partner must be active broker, sales associates and Brooke are associates cannot participate as general partners, unlicensed individual must register name and address with DRE, SA/BA can be limited partner provided they do not act in the capacity of a general partner

Front 221

Dispute over earnest money deposit, broker must commence wanna for settlement procedures within how many days

Back 221

30 days

Front 222

Moral turpitude

Back 222

Operating contrary to moral standard that is also illegal

Front 223

Notice of noncompliance

Back 223

Warning that allows a licensee 15 days to correct a minor infraction without consequence

Front 224

Summary suspension

Back 224

Immediate or emergency suspension of licensee

Front 225

Conversion =

Back 225

Moving or using another ones money or property without permission

Front 226

What makes a valid complaint

Back 226

When is legally sufficient

Front 227

Final order becomes effective_____ days after being entered

Back 227

30 days

Front 228

What is a writ

Back 228

Writ of Supersedes = request to stay off the enforcement

When an appeal is filed, appellate court is requesting an issue a writ of certiorari, Which means the court has certify the appeal

Front 229

Real estate recovery fund =

Back 229

Actual/compensatory damages unsatisfied by other means for 50,000

Aggregate maximum against one broker = 150,000

Brokers pay 3.50 a year, sales associates 1.50 per year

Front 230

What is Usury

Back 230

Charging a higher interest rate then permitted by law

Front 231

Estoppel certificate

Back 231

Certifies amount of debt on mortgage

The buyer of a property on which there is a mortgage or lease should get estoppels to be sure the terms of thoseAgreements are as expected. The right to get a stopple certificate may be written into a lease or mortgage

Front 232

Options =

Back 232

Option gives the holder the right but not the obligation to buy specific property within a certain timeframe at a specific price. Unilateral. Consideration must be paid with an option

Front 233

Is innovation unilateral or bilateral

Back 233

Must be bilateral. Both parties must agree. Seller made a contract for buyer to assume the sellers mortgage, acceptance of the substitution must come from the lender. Original contract has been assigned, while at the same time the assignor has been relieved of his or her obligations to the contract

Front 234

When one or more broker is employed by an owner to sell real estate, this listing is an example of

Back 234

Open listing

Front 235

Types of listings in Florida

Back 235

Open listing, exclusive agency listing, exclusive right to sell listing, multiple listings, net listings

Front 236

True or false Florida licenses are allowed to draft leases or other conveyance licenses

Back 236

False

Front 237

True or false Florida licenses are allowed to draft leases or other conveyance licenses

Back 237

False

Front 238

Contracts for licensees are allowed to draft

Back 238

Sales contract, open contract, listing contract

Front 239

Define open listing

Back 239

Whoever finds buyer gets paid

Front 240

Define open listing

Back 240

Whoever finds buyer gets paid

Front 241

Exclusive listing

Back 241

Listed with one broker but seller reserves right to sell himself without owing a commission

Front 242

Exclusive right to sell listing

Back 242

Broker paid no matter who sells property, ( the only bilateral listing contract)

Front 243

Three ways to cure a defect in title

Back 243

Quit claim deed

Sue to quiet title(A legal process too quiet and he claims to title)

Marketable records title act = title defects more than 30 years are deemed cured

Front 244

Minimum consideration for a Option contract

Back 244

$100

Front 245

Difference between assignment of lease and a sublease

Back 245

Assignment is giving up all interest to another, sublease is giving up only a partial interest to another

Front 246

Role of government in real estate

Back 246

Local = taxes, zoning, building codes

State = doc stamps, intangible tax, environmental

Federal = VA, FHA, IRS, etc

Front 247

In Florida what is the mortgage theory

Back 247

Lien theory state, property owner retain legal title when borrowing money and property is collateral

Front 248

Hypothecation/mortgage

Back 248

Pledging a title as security without having to give up possession of the title,, a mortgage

Front 249

What are the three types of mortgages available to consumers, what are the qualifying ratios

Back 249

VA = 41% total obligation to income

FHA = 31% PITI to income and 43% total obligation to income, mortgageInsurance is paid up front and monthly

Conventional mortgages, = qualifying ratio is 28% PITI to income and 36% total obligation to income,, private mortgage insurance is usually required when the loan to value ratio is greater than 80%

Front 250

Laws regarding fair credit and lending procedures

Back 250

RESPA, requires disclosure of closing cost to borrowers, all federal related residential loans, information booklet(3 business days before close) also good faith estimate of closing cost three business days

Truth in lending act = requires disclosure of cost of borrowing/APR implemented through regulation Z

TILA/RESPA = requires lenders to provide borrowers a closing disclosure at least three days prior to closing

Front 251

What are the state taxes in real estate closings

Back 251

Doc stamps on deed = $.70 for every hundred dollars a purchase price

Intangible tax is .002/2 mills of mortgage debt

Documentary stamps on the note are $.35 for each unit of $100 of the note amount/knew and assumed mortgages

Front 252

Who can a sales associate sue for their commissions

Back 252

They can always do their employer they cannot see the seller

Front 253

Is it unlawful to pay our share a sales commission with a unlicensed person for any real estate services

Back 253

Yes

Front 254

If a commission is earned while license is in good standing it should be paid regardless of the licensee status at a later time true false

Back 254

True

Front 255

When are Florida brokers allowed to pay out of state brokers

Back 255

When the out-of-state broker does not come to Florida and participate in the services of real estate

Front 256

Commercial real estate lien act =

Back 256

Allows brokers to place a lien on net proceeds at closing for payment of commissions

Front 257

Name some physical characteristics of real estate for investing

Back 257

Immobile/location

Slow to respond to change/construction time

Indestructible/land does not wear out

Heterogenous/not the same

Situs is the specific location and in mobility that makes a property uniquely different

Front 258

The relationship between what creates value

Back 258

Supply and demand

Front 259

Vacancy rate is an indicator of what

Back 259

How old a man is doing as it relates to supply

Front 260

Four approaches to valuing a business

Back 260

Comparable sales approach/looking at other properties that are similar that sold recently

Cost depreciation approach/reproducing the building, subtracting the accurate depreciation, then adding the land

Income approach/net income divided by Rate equals value

Liquidation value approach = assets minus liabilities = minimum value,, you need to business brokerage appraising

Front 261

Homestead exemption‘s amounts

Back 261

First 25,000 assessed value plus additional 25,000 if assessed for 50,000 or more except for school taxes

Front 262

Homestead exemption‘s amounts

Back 262

First 25,000 assessed value plus additional 25,000 if assessed for 50,000 or more except for school taxes

Front 263

What creates taxable value

Back 263

Assessed value minus exemptions = taxable value

Front 264

Homestead exemption‘s amounts

Back 264

First 25,000 assessed value plus additional 25,000 if assessed for 50,000 or more except for school taxes

Front 265

What creates taxable value

Back 265

Assessed value minus exemptions = taxable value

Front 266

How do you figure out tax dollars Owed/Levy

Back 266

Taxable value X millage rate =tax dollar owed

Front 267

Homestead exemption‘s amounts

Back 267

First 25,000 assessed value plus additional 25,000 if assessed for 50,000 or more except for school taxes

Front 268

What creates taxable value

Back 268

Assessed value minus exemptions = taxable value

Front 269

How do you figure out tax dollars Owed/Levy

Back 269

Taxable value X millage rate =tax dollar owed

Front 270

The respondent in a complaint has how many days in which to file an appeal to the final order issued by the FREC

Back 270

30 days

Front 271

Homestead exemption‘s amounts

Back 271

First 25,000 assessed value plus additional 25,000 if assessed for 50,000 or more except for school taxes

Front 272

What creates taxable value

Back 272

Assessed value minus exemptions = taxable value

Front 273

How do you figure out tax dollars Owed/Levy

Back 273

Taxable value X millage rate =tax dollar owed

Front 274

The respondent in a complaint has how many days in which to file an appeal to the final order issued by the FREC

Back 274

30 days

Front 275

How many hours of post license education is required on initial issue of license before renewal

Back 275

60 hours

Front 276

Sue/lawsuit to perform what was stated in contract

Back 276

Sue/lawsuit to perform what was stated in contract

Front 277

Define defeasance clause

Back 277

A required contract provision that ensures title is transferred to buyer, once mortgage is fully paid off/satisfied, mortgage is defeated, title theory states

Front 278

What does plottage do

Back 278

Increase in value of property experience through assemblage

Front 279

The purpose of every appraisal is determined some type of value, name the types of value

Back 279

Investment value, assessed value, liquidation value, salvage value, insurable value, market value, concept cost price value,

Front 280

What is market value

Back 280

Most common purpose of real estate appraising. US PAP defines market value is the most probable price a property should bring in a competitive and open market

Front 281

Three steps required in a sales comparison approach

Back 281

Collect data for recently sold properties

Adjustment of the comparables sale prices

Reconciliation of the adjusted sale price into a final value conclusion(The final step in sales comparison approach weighted average that gives more validity/wait to the properties more like the subject and less validity to those that are less similar)

Front 282

Describe cost price and value

Back 282

Cost = actual dollar spent to create a property

Price = the dollars actually paid for the finished product

Value = imaginary number that the property is thought to be worth

Front 283

In order for a property to have economic value there must exist

Back 283

Dust

Demand = those who want the property

Utility = with the property can be used for

Scarcity = the number of properties that are available

Transferability = title must be transferable to another

Front 284

The basic premise of appraising is found in

Back 284

Principle of substitution

Front 285

What type of approach is used for special purpose properties

Back 285

Cost depreciation approach

Front 286

What is accrued depreciation

Back 286

Appreciation that is a loss of value over a period of time

Front 287

The gross rent multiplier multiplied by the monthly rent will equal to?

Back 287

The value

Front 288

The expense of building a property of equal utility that is similar but not identical to the subject property is known as its

Back 288

Replacement cost

Front 289

Effective gross income less operating expenses (including reserves for replacement) is equal to

Back 289

Net operating income

Front 290

In income capitalization method, if the capitalization rate remains the same but the net operating income is increased, how will value be affected

Back 290

Value goes up

Front 291

Four approaches to value a business

Back 291

Comparable sales approach

Cost depreciation approach

Income capitalization approach

Liquidation value approach,, unique to business brokerage only

Front 292

Like kind exchange

Back 292

Change of one in property for another with a deferral of tax consequences also known as a 1031 exchange

Front 293

What is the taxable value of a property

Back 293

The value of property for tax purposes determined by subtracting all exemptions from the assessed value

Front 294

MARIA

Back 294

Fixtures

Method

adaptability

relationship

intention agreement

Front 295

STUD

Back 295

Value

Scarcity

Transferability

Utility

Demand

Front 296

PITI

Back 296

Closing documents costs

Principal

Interest

Taxes

Insurance

Front 297

PETE

Back 297

Government powers over property

Police powers

Eminent domain

Taxation

Escheat

Front 298

PITT

Back 298

Joint tenancy

Possession

Interest

Time

Title

(right of survivorship)

Front 299

MEAL

Back 299

Deposit settlements

Mediation = negotiate

Escrow disbursement order

Arbitration = third-party decide

Litigation =court

Front 300

LTV

Back 300

Loan to value ratio

LTV = loan amount ‰ property value

Front 301

DTI

Back 301

Debt to income ratio

Monthly expenses divided by pre-tax income(gross) = Debt to income ratio

Front 302

COLDAC

Back 302

Fiduciary duties

Care

Obedience

Loyalty

Disclosure

Accounting

Confidentiality

Front 303

DEEPC

Back 303

Bundle of rights

Disposition/transfer

Enjoyment

Exclusion

Possession

Control of use

Front 304

COLIC

Back 304

Contract

Consideration

Offer and acceptance

Lawful

Capable parties

In writing sometimes

Front 305

ABARSALE

Back 305

Real estate services

A—-/appraisal of licensed

Buy

Advertise

Rent

Cell

Auction

Lease

Exchange

Front 306

63/45

72/80

Back 306

Pre-and post license requirements for sales associates and brokers

Front 307

SLLLOGC

Back 307

Types of ownership

SOLE

LLC

LLP

Limited partnership

Ostensible

General partnership

Corporation

Front 308

C IPFIFA

Back 308

Complaint process

Complaint

Investigate

Probable cause

Formal hearing

Informal hearing

Final notice

Appeal

Front 309

NCARSLED

Back 309

Parts of a deed

Names

Consideration

Appurtenances = AC units or fans etc.

Restrictions

Signed/2 witnesses

Legal description

Estate tape

Delivered and accepted and notification of acceptance

Front 310

Four types of deeds

Back 310

Quit claim = now, no warranty

Bargain and sale/seisen

General warranty = most common

Special warranty = foreclosures

Front 311

types of ineffective licensees

Back 311

Suspend it

Involuntary and active

CCE to enforce

Canceled

Revoked

Front 312

Real property tax is a ad valorem tax

T or f

Back 312

True

Front 313

Just value

Back 313

Just value

Front 314

Property owner disagrees with assessed value, next step is

Back 314

Protest a file directly with the property appraisers office

Front 315

Difference between tax immune and tax exempt properties

Back 315

Immune properties = consist of government properties/courthouse/military bases, that are never assessed tax purposes

Exempt properties are owned by qualified nonprofit organizations and churches. These properties are assessed for tax purposes but due to the status of the property, the property is released from obligation to pay taxes on the full says value

Front 316

What is a special assessment tax

Back 316

One time tax levied against properties that will directly benefit from government improvements

Front 317

And purchase a tax certificate in May how many years Matthew way before he may timely request a tax deed to be issued

Back 317

One year

Front 318

Exchange of one property for another with a deferral of tax consequences is known as

Back 318

Like kind exchange/1031 exchange

Front 319

Name three ways zoning can either be changed or used for different purposes

Back 319

Variance, special exemption, nonconforming use

Front 320

CERCLA

Back 320

Legislation to make sure properties that have been contaminated will be cleaned

Front 321

Real estate recovery fund suspend license of licensee until when

Back 321

Money lost is repaid with interest

Front 322

Names of people who cannot qualified to make a claim against the real estate recovery fund

Back 322

Licensees for unpaid commission, when a licensee owns the subject property, anyone who bases a claim against a licensee who did not hold a valid or current license at the time of transaction, a spouse of the judgment debtor or the spouses personal representative, if the judgment is against a business entity such as a corporation, partnership, legal liability company or a limited liability partnership

Front 323

The unlicensed practice of real estate is a blank type of offense

Back 323

Third-degree felony

Front 324

What is a deficiency judgment

Back 324

A request for further money if the sale of the property does not recoup the amount of the loan