Test Prep B

Front 1

A developer purchased three small lots along a street targeted for widening. The

developer paid $30,000 per lot. The developer combines the three small lots into one

larger lot valued at $145,000. What is the appraisal term for the added value resulting

from combining the small lots into one large lot?

Back 1

Plottage

Front 2

A borrower does NOT have the right to cancel which loan contract within three

business days?

Back 2

New 30-year mortgage to purchase a home

Front 3

When completing a license application, the applicant must provide details in the

background information section of the application regarding criminal convictions. Which

statement is TRUE regarding completing this section?

Back 3

Applicants should attach details of cases, even if adjudication was withheld.

Front 4

A seller places an ad in the local newspaper indicating that the seller will pay $10,000

to the first licensed real estate broker who finds a buyer for the seller's condo that

results in a closed sale. Which type of contract is this?

Back 4

Unilateral

Front 5

A buyer offered $225,000 for a seller's property. The seller countered at $250,000. The

buyer did not accept the seller's counteroffer. The seller told her broker that she was

revoking the counteroffer and accepting the buyer's original offer. Which statement is

TRUE regarding this situation?

Back 5

The seller cannot now accept the original offer because it was killed by the

counteroffer.

Front 6

6. A sales associate received an earnest money deposit at 8:00 a.m. on Tuesday. The

sales associate is required to deliver the deposit to the broker by the end of business

on

Back 6

Wednesday.

Front 7

Which expense may be deducted when calculating taxable income for an individual

homeowner?

Back 7

Property taxes paid on a second residence

Front 8

A benefit of investing in real estate does NOT include

Back 8

liquidity.

Front 9

The loan-to-value ratio for a home purchased for $265,000 with a down payment of

$66,250 is

Back 9

75%.

Front 10

Which governmental power is used to acquire land for public use?

Back 10

Eminent domain

Front 11

The direction opposite South 45 degrees West in a metes-and-bounds description is

Back 11

North 45 degrees East.

Front 12

Which amount is used to compute the state documentary stamp tax on the deed?

Back 12

Total purchase price

Front 13

How many acres are contained in the parcel described as the SW 1/4 of the SE 1/4 of

the NW 1/4 of Section 15?

Back 13

10

Front 14

14. A strip of land that separates one land use from another is referred to as a(n)

Back 14

buffer zone.

Front 15

A local lender charged 4 percent interest plus 3 points on a conventional mortgage

loan. What was the approximate yield on the loan?

Back 15

4.375 percent

Front 16

16. Which mortgage clause prevents a buyer from assuming an existing mortgage loan?

Back 16

Due-on-sale

Front 17

Which type of legal description is used only where plat maps have been recorded in

the public records?

Back 17

Lot and block

Front 18

What action will be taken against a broker's license when a claim NOT associated with

an escrow disbursement order is paid from the Real Estate Recovery Fund?

Back 18

Mandatory suspension of the license until the licensee has reimbursed the fund,

including interest.

Front 19

Which variable does NOT influence the supply of real estate?

Back 19

Mortgage credit

Front 20

A lead-based paint disclosure must be given to

Back 20

tenants and buyers of all residential property built before 1978.

Front 21

Which expense is NOT an operating expense in calculating net operating income

(NOI)?

Back 21

Income tax

Front 22

Which characteristic applies to assets exchanged in both business brokerage and real

estate brokerage?

Back 22

Long-term liabilities

Front 23

Which type of deed provides the grantor the best assurance of no future liability?

Back 23

Quitclaim

Front 24

Which legal instrument contains the interest rate, loan amount, maturity date, and

payment schedule?

Back 24

Note

Front 25

A broker complied with an escrow disbursement order (EDO). Later, the buyer sued the

broker and was awarded a judgment of $20,000. The buyer's attorney fees and courts

costs totaled $4,500. The real estate broker's attorney's fees totaled $5,000. What is

the maximum amount that can be paid from the Real Estate Recovery Fund as a result

of the judgment?

Back 25

$29,500

Front 26

The overall capitalization rate (OAR) is determined by analyzing which two components

of similar properties in the subject property's market area?

Back 26

Net operating income and sale price

Front 27

Payment collection and record keeping associated with mortgage loans is referred to

as

Back 27

servicing the mortgage.

Front 28

A Baptist church owns a convalescent home for its members. The church only admits

members of its church to the convalescent home. Which statement is TRUE regarding

this practice?

Back 28

This is permissible under the Fair Housing Act.

Front 29

What type of foundation is characterized by a crawl space below the structure?

Back 29

Pier

Front 30

A licensed sales associate decides to have personalized key rings made. Which

statement is TRUE regarding the key rings?

Back 30

The name of the real estate brokerage firm for which the associate works must be

printed on the key rings.

Front 31

31. The established useful asset life for nonresidential income-producing property under

the IRS code is what number of years?

Back 31

39

Front 32

Which requirement is one of the elements of a valid real estate contract?

Back 32

Legal purpose

Front 33

An escrow account may NOT be established in a

Back 33

stock brokerage company doing business in Florida.

Front 34

Which type of value takes into consideration an individual's equity and income tax

implications?

Back 34

Investment

Front 35

Planning commissions commonly do NOT have the final authority to rule on

Back 35

zoning variances in residential areas.

Front 36

Which statement regarding state intangible taxes on new mortgages is TRUE?

Back 36

The rate is two mills per dollar of debt.

Front 37

Real estate licensees who specialize in the sale, purchase, or lease of businesses are

referred to as

Back 37

business brokers.

Front 38

What is 9.26 mills converted to the decimal form?

Back 38

.00926

Front 39

Which statement is TRUE regarding Florida's telemarketing law?

Back 39

Calls are restricted to the hours between 8:00 AM and 9:00 PM.

Front 40

Which law requires lenders to provide borrowers with an estimate of settlement

costs at the time of loan application or within three business days?

Back 40

Real Estate Settlement Procedures Act

Front 41

The cost of materials and labor to produce ten $100 bills was found to be $8.97. The

amount of goods and services that may be purchased with these ten $100 bills

measures their

Back 41

exchange value.

Front 42

Which contract would be considered a residential transaction under Florida Statute

475?

Back 42

Sale and purchase contract of a residential duplex

Front 43

Which type of age is used to calculate depreciation in the cost-depreciation approach?

Back 43

Effective

Front 44

44. Taking which action is an example of constructive notice?

Back 44

public notice through recording in the public records

B.

Front 45

The Florida Real Estate Commission (FREC) does NOT have the authority to impose

which penalty?

Back 45

Restitution to the injured party

Front 46

Which clause in the deed is a promise that the grantor owns the estate that is being

conveyed?

Back 46

Seisin

Front 47

The Florida Building Energy-Efficiency Rating Act does NOT require

Back 47

the seller, at the seller's expense, to conduct an energy-efficiency rating of the

structure prior to closing.

Front 48

A married couple is interested in purchasing residential investment property. The

couple has informed their sales associate that they want the brokerage company to

represent their interests as a fiduciary in all negotiations. Which brokerage relationship

disclosure must be given to this couple?

Back 48

Single agent notice

Front 49

A sales associate received a citation and $100 fine for failure to notify the Division of

Real Estate of a change of mailing address. The citation was issued in error. What

should the sales associate do?

Back 49

File a written objection within 30 days explaining that the citation was issued in

error.

Front 50

Tax advantages of owning a home do NOT include

Back 50

deduction of hazard insurance expense on a principal residence.

Front 51

51. A township has 36 parcels called "sections." Section 36 would be located in which

corner?

Back 51

Southeast

Front 52

Which statement is TRUE regarding an amortized mortgage?

Back 52

The amount applied to interest decreases each month

Front 53

A couple are interested in purchasing residential investment property and they have

informed their sales associate that they want limited representation but do not want to

be legally held responsible for the acts of a licensee. Which brokerage relationship is

best suited to this couple?

Back 53

Transaction broker

Front 54

Within how many days is the landlord required to notify tenants if the landlord intends

to impose a claim on the deposit?

Back 54

30

Front 55

Which statement concerning Department of Veterans Affairs (VA) mortgage loans is

FALSE?

Back 55

The government charges veterans a mortgage insurance premium.

Front 56

Which statement concerning Florida Real Estate Commission (FREC) qualifications is

FALSE?

Back 56

One member must be an active sales associate who has held that status for

at least three years.

Front 57

A broker's license was revoked. The licenses of the sales associates registered with

the broker will become

Back 57

involuntary inactive.

Front 58

A widower is a non-veteran who is 10 percent disabled. The assessed value of his

condo is $49,875. What is the total property tax exemption he can claim on his

homesteaded property?

Back 58

$25,500

Front 59

59. The covenant of further assurance is included in which type of statutory deed?

Back 59

General warranty deed

Front 60

What legal document allows a purchaser of a cooperative to occupy a particular unit?

Back 60

Proprietary lease

Front 61

Which item is entered on the closing statement as a credit to the seller?

Back 61

Total purchase price

Front 62

A real estate license application received by the DBPR expires after what period of

time?

Back 62

Two years

Front 63

Which individual is exempt from real estate licensure?

Back 63

Owner of a time-share period who offers the time-share period for resale.

Front 64

A developer advertises homes for sale with a total down payment of $2,000. A qualified

buyer offers to pay the $2,000 down, but the developer states that the $2,000 down

homes are all sold. Is this transaction covered under Truth in Lending Act?

Back 64

Yes, because this is an example of bait-and-switch advertising and it is illegal.

Front 65

Which document must a prospective buyer of an existing (resale) condominium unit

receive?

Back 65

Year-end financial information that the condo association provided to the owners

the previous year

Front 66

Abby, Bob, and Cathy were co-owners of a parcel of real property. Abby died and her

ownership passed, according to her will, to her surviving spouse. Abby was a

Back 66

tenant in common.

Front 67

A parcel of real estate has been left to a spouse through her husband's will for the

wife's use and enjoyment during her lifetime, with the provision that the property goes

to the wife's stepson at her death. What interest does the stepson hold?

Back 67

Remainder estate

Front 68

A roof design that incorporates an overhang on all sides is called

Back 68

hip.

Front 69

Which requirement must a deed contain in order to be valid?

Back 69

The properly witnessed signature of the grantor

Front 70

Which action by the Fed will reduce the supply of money in circulation?

Back 70

Increasing the reserve requirement

Front 71

A sales associate listed a condo in Oak Glen for $205,000. A sales associate from a

competing office called the listing associate to inform him of a verbal offer of $190,000

on the Oak Glen property. The listing associate did not present the verbal offer. Which

statement applies to this situation?

Back 71

The listing associate was required to present the verbal offer to the seller.

Front 72

Placement of the windows is most important on which type of lot if the

homeowner is concerned about the possibility of vehicular headlights shining into

the front windows?

Back 72

T-intersection

Front 73

An owner of an apartment complex pays $50 to each tenant that refers a person who

becomes a tenant. This arrangement is

Back 73

legal under Chapter 475, Florida Statutes.

Front 74

When a consumer files a complaint against a real estate licensee that contains facts

indicating that a violation of rules of the Florida Real Estate Commission has occurred,

the complaint is said to be

Back 74

legally sufficient.

Front 75

75. Which action associated with water rights will cause a decrease in land mass?

Back 75

Erosion

Front 76

A contractor purchased twelve boxes of ceramic tile from the local tile supply company.

What type of property is the ceramic tile before it is installed?

Back 76

Personal property

Front 77

Which statement is FALSE regarding a notice of noncompliance?

Back 77

It is a type of discipline imposed by the Florida Real Estate Commission.

Front 78

78. Right of survivorship is contained in which tenancy?

Back 78

Joint

Front 79

A Florida-licensed attorney is exempt from what education requirement?

Back 79

Sales associate prelicense course

Front 80

80. Which business organization may NOT register as a real estate broker?

Back 80

Business trust

Front 81

A group license

Back 81

allows a sales associate or broker associate employed by an owner-developer to

sell property for all the affiliated entities owned by the developer.

Front 82

Which deficiency would be classified as external obsolescence?

Back 82

Road dust and traffic noise prevents opening the windows on cool mornings

Front 83

83. A prospective purchaser of a residential property sends written notification to the

listing broker documenting that she has been unable to secure financing according to

the terms of the agreement and requests return of the earnest money deposit. The

seller instructs the broker to retain the earnest money deposit as liquidated damages.

Back 83

return the deposit to the buyer.

Front 84

84. Which instrument is usually recorded?

Back 84

Promissory note

Front 85

All national chartered commercial banks are members of which entity?

Back 85

Federal Reserve System

Front 86

Part IV of Florida Statute 475 pertains to

Back 86

liens associated with brokerage agreements to lease commercial units.

Front 87

A seller lists his property with a brokerage company. However, the seller reserves the

right to NOT pay a commission if he sells the property. What type of listing is this?

Back 87

Exclusive-agency

Front 88

What is the statute of limitations for written contracts?

Back 88

5 years

A.

Front 89

The Florida Real Estate Commission's authority to determine license law violations is

which type of power?

Back 89

The Florida Real Estate Commission's authority to determine license law violations is

which type of power?

Front 90

Which document would be used to prevent future land owners of a particular parcel of

land from selling firearms on the site?

Back 90

Deed restrictions