Florida Real Estate Class Exam

Front 1

Real estate professional brings to the transaction expert knowledge regarding (MVP)

Back 1

Marketing,

Valuation,

Property transfer

Front 2

Licensees will concentrate on one type or style of property or on one particular neighborhood

Back 2

Farming

Front 3

Ownership of streets and sidewalks is typically conveyed by a developer to the city upon completion of construction of subdevision

Back 3

Dedication

Front 4

All sales associates must complete a 45 hour post licensing course prior to ex. date of initial license period. Failure to complete, license will become ______

Back 4

VOID

Front 5

Broker's license may choose to continue employment in sales associate capacity. If so, the applicant will be registered as a _______ ________

Back 5

Broker- associate

Front 6

Persons granted authority under a power of attorney to act for others in some capacity such as signing documents

Back 6

Attorneys in fact

Front 7

Issue cease and desist orders, administer oaths, take depositions and issue subpoenas

They CANNOT issue an injuction

Back 7

Powers of the DBPR

Front 8

Can be exercised by the chairperson acting ALONE, or can be DELEGATED by quorum vote to any other FREC member

Think Laura manager of YMCA

Back 8

Executive powers of FREC

Front 9

FREC has the authority to deny an application, reprimand, fine, probation, suspend, or revoke license.

FREC cannot inprisonate you

Think getting in trouble and going to court

Back 9

Quasi-Judicial powers

Front 10

A licensee who fails to renew a license at expiration, in other than the initial period automatically becomes

Back 10

Involuntarily Inactive

Front 11

Does not pay required fees, does not request renewal, does not maintain education.

They can remain for no more than 2 years

Back 11

Involuntary Inactive

Front 12

Who can be issued additional licenses in two or more capacities by requesting multiple licenses?

Back 12

Broker only

Front 13

Authorized by employer to preform a SINGLE act

Back 13

Special agent

Front 14

sales associate is a general agent of a broker and automatically becomes _______ ________ of all brokers principals. As agent of broker, a sales associate has the FIDUCIARY RELATIONSHIP to the brokers principal as does the broker.

Back 14

Sub-agent

Front 15

Any attempt to represent both parties to a transaction would create an

Violation of F.S 475

Back 15

Illegal dual agency

Front 16

Out of state or foreign brokers may not participate

Back 16

Referral fee

Front 17

What do you do with an offer?

Broker has the duty to transmit and and all offers.

Back 17

Presenting offers

Front 18

At least one enclosed room in a building of stationary construction where real estate transactions can be conducted in privacy.

NOT in a motor home

Back 18

Broker office

Front 19

If a branch office is closed- later reopened in same location during same two-year license period. A _____ of the license may be requested.

WITHOUT A FEE

Back 19

Reissue

Front 20

Who can have it?

Commercial bank, title company, credit union etc. Located in the State of Florida

NOT in a stock or bond brokerage house.

Back 20

Escrow account location

Front 21

If sales associate and broker associates receives earnest money (escrow), when should the money be delivered?

Back 21

IMMEDIATELY

no longer than end of third business day.

Front 22

When deal breaks through, FREC can help. BUT you must obey whatever FREC tells you to do.

Think breaking up with your boyfriend and you want your money back

Back 22

Conflicting demand for escrow

Front 23

RECKLESS, CARELESS, EXCESSIVELY NEGLIGENT MANNER. (FRAUD)

Back 23

Culpable negligance

Front 24

Must have at least one general partner.

All active brokers licensed if dealing with public

Back 24

Real estate broker partnership

Front 25

If a business named ABC company has company in the name

Back 25

Corporation for profit

Front 26

religious organization title

signed by sole titleholder for its own use

Back 26

Corporation sole

Front 27

Anyone who acts as a broker or sales associate

$5,000 fine - 5 years in prison

Back 27

Third degree felony

Front 28

If app for license is denied, you must be notified in writing w/ the reason within 21 days

Back 28

Denial of license

Front 29

No personal opinions or recommendations

Back 29

Investigators report

Front 30

Who can issue subpoenas?

For witness and compel attendance as a witness

Back 30

Administrative law judge

Front 31

If the licensee does not agree w/ the final order of the commission, what can they file?

Back 31

Petition for review

Front 32

Reimbursement from the recovery fun for a single judgement is limited to a maximum of 50k. It is maintained by _______ and ______ paid by licensees

Back 32

Fees and fines

Front 33

Inducing an owner to list or sell on the basis that the neighborhood is deteriorating or becoming transitional due to an influx of minority persons.

Back 33

Blockbusting

Front 34

Post the bond, can now commingle funds

Back 34

Surety bond

Front 35

100% of the time, all space.

When ALL rights under lease have been transferred to another. Two basic components

Back 35

Assignment

Front 36

Same or different deeds, time etc. held by two or more persons.

Back 36

Tenancy in common

Front 37

Must be in writing

Possession of the property under an agreement w landlord for a specified period of time

Back 37

Tenancy for years

Front 38

An estate for a husband and wife only.

Back 38

Tenancy by the entireties

If divorced- it converts to tenancy in common unless judge says otherwise.

Front 39

Provides financial protection against losses sustained as a result of a defective title

Think protection= insurance

Back 39

Title insurance

Front 40

Contains no promises of any kind.

Used to cure defects in title

Think if its not cured, you leave

Back 40

Quitclaim deed

Front 41

Taking land for public use. Allows local, state, or federal gov. to obtain ownership

Think I want to take all the MNM's from the public and eat them

Back 41

Eminent Domain

Front 42

TEST QUESTION #52

Back 42

D

Front 43

TEST QUESTION #53

Back 43

C

Front 44

In a legal description a _______ is 6 miles square

Back 44

Township

Front 45

Not stated in the contract but its inferred.

Some or all of the terms and conditions can be assumed or inferred by nature or the agreement of the words and actions of parties.

Back 45

Implied contract

Front 46

When the offer of the party is accepted and acceptance of the offer is communicated

Think in order to make something you have to offer, accept and communicate.

Back 46

Creation of a contract.

Front 47

Provides time limits within which parties are allowed to bring legal action (sue)

Back 47

The statute of limitations

Front 48

Physical land and improvements. Together with legal rights to own or use the property.

Back 48

Real property

Front 49

Right to buy a property during a specified period of time or at a specified price.

Back 49

Option contact

Front 50

Allows mortgagor to retain the ownership.

Back 50

Lien theory

Front 51

Personal debt with rate, amount and term.

contract between the lender and the borrower.

Money borrowed to buy real estate

Back 51

Promissory note

Front 52

Investor default on mortgage if they don't maintain property.

Back 52

Lender takes over/ Receivership clause

Front 53

QUESTION #62

Back 53

ANSWER IS 10.75

Each point is 1/8

6 points = 6/8 = 3/4 = .75

Front 54

the right of a borrower to cure the default before foreclosure, rather than to loose property.

Back 54

Equity Right of Redemption

NOT STATUTORY!!!!

Front 55

prepayment without penalty. they cannot charge you a fee for early payment

Back 55

FHA prepayment privilege

Front 56

Owner residences, certificate of eligibility, honorarily discharged.

A service related disability is not required

Back 56

VA loans.

Front 57

Percentage added to the index rate by lender to cover lenders overhead.

Does not change- remains constant

Back 57

Margin

Front 58

Which one of these tools is least effective and generated the most publicity?

Back 58

Discount rate

Front 59

When using the HUD-1 settlement statement expenses are entered as charges (debit) on page two to either buyer or seller

Back 59

Expenses

Front 60

seller provides title insurance or opinion of title as evidence of marketable title

Back 60

Abstract continuation

Front 61

step one- divide selling price by 100

step two- round up up up

step three- multiply by .7

$$$ debit to the SELLER

Back 61

Doc stamp on deed

Front 62

amount actually paid or received in a transaction

Back 62

Price

Front 63

An over-improved property suffers from?

Back 63

Functional Obsolesce

Front 64

Sale price = gross rent multiplier

__________

Gross rent

Divide the BIG number by the smaller number

Back 64

Gross rent multiplier

Front 65

Whats the most important factor underlying ever investment decision?

Back 65

Economic soundness

Front 66

This comes first on test

used to value failing business

used to establish the minimum value of a profitable business

Think rain falls down and rain is a....

Back 66

Liquidation value

Front 67

comes second in test

Profitable business when the value of all assets is combines

Back 67

Going concern value

Front 68

How it all starts?

Each ________ ________ first estimates a budget forecasting the amount of revenue needed to fund operations for the coming year.

Back 68

Taxing authority

Front 69

Limited 3%

Homesteaded property- limit increase in tax

New owners will pay higher taxes

Back 69

Save our homes act

Front 70

The real estate market is

Back 70

Local in nature

Front 71

Supply and demand in residential market

Back 71

Vacancy ratio

Front 72

Four factors of production

Think making a baby....

Back 72

Land, labor, capitol, entrepreneurial ability

Front 73

Dollars earned from same community

Back 73

Service business

Front 74

Based on density

Back 74

Residential zoning

Front 75

Allowed smaller lots or "zero lot line"

Back 75

Planned unit development (PUB)

Front 76

Deduct property taxes & mortgage interest

Think deduct= returned

Back 76

IRS itemized return

Front 77

Add value to a property

Back 77

Special assessment

Front 78

How can sales associates accept money?

Back 78

Only in name of employer

Front 79

Temporary business

Back 79

Joint venture

Front 80

principle of substitution

Back 80

Comparable sales approach

Front 81

At least 1 office is an active broker

Back 81

Real estate brokerage corporation

Front 82

modifications when economically feasible

Back 82

American with Disabilities Act

Front 83

Minor violation given by DBPR investigator

Back 83

notice of noncompliance

Front 84

Register with DBPR can broker real estate

Back 84

Real estate brokerage limited partnership

Front 85

In dispute may retain that amount

Back 85

Broker's right to escrow