Real Estate Licensing Quiz 25 questions

Which one of the following statements is false concerning the required 45-hour post licensing course?

• after the licensee completes the required 45-post licensing course before the renewal of his first license, he will automatically have his license renewed and have another two years in which to complete the required 14 hours of continuing education.

• If the licensee does not complete the required 45-hour post license course, the status of the sales associates license will be null and void. If the licensee wishes to continue in real estate, he will need to requalify. He would again be required to submit fingerprints, an application for his license, complete the 63-hour pre license course, and pass the state exam.

• Upon completion of the required 45-hour post license course, the licensee would be required to visit the DBPR website and renew his license and pay the renewal fee before the first expiration of his license.

• If a sales associate does not complete the required 45-post license course and renew his license at the DBPR before the first expiration of his license, his license status is null and void.

Which of the following statements is true about leverage?

• If the cost of borrowed funds is more than the rate of return, that is an example of negative leverage.

• Leverage is always positive.

• Leverage is similar to equity.

• If the cost of borrowed funds is less than the rate of return, that is an example of negative leverage.

Which of the following statements is false concerning the Closing Disclosure Form?

• The binder deposit is a credit to the buyer and a debit to the seller.

• The intangible tax is a debit to the buyer.

• Unpaid property taxes, assumed mortgage interest, and rental income are a debit to the seller, and a credit to the buyer.

• The binder deposit is a credit to the buyer.

On a 30-year fixed rate fully amortized mortgage, which applies?

• A balloon payment would be required at the end of the loan period.

• At the beginning of the loan period, most of the money made in payments is applied toward the principle.

• Because the loan is fully amortizing, most of the money from each payment made at the end of the loan term would be applied to principle.

• Because the loan is fully amortizing, the index and margin will stay the same for the entire loan period.

Which of the following statements about mortgage clauses is false?

• The due-on-sale clause allows the mortgagee the right to demand the outstanding loan balance plus accrued interest in the event that the borrower sells or transfers any interest in the property without the lender’s prior written consent.

• The defeasance clause in a mortgage is activated when a borrower in a title theory state of mortgage lending defeats their loan. The borrower will now receive their deed in the mail.

• The acceleration clause allows the mortgagee to require the mortgagor to obtain written permission before selling or transferring any interest in the property.

• When the mortgagor is in default, the acceleration clause is used by the mortgagee and states that the entire outstanding balance of the loan, plus all fees incurred and all interest is due in order to maintain ownership of the property.

Which of the following liens would take priority?

• A mechanic’s lien filed on January 20, 2021

• A vendor’s lien filed on January 21, 2021

• Real estate taxes, (property taxes) lien filed on January 25, 2021

• Special assessment lien filed on January 26, 2021

The NW1/4 of the S1/2 and the N1/2 of the S1/2 of the E1/4 of the NE1/4, section 11, township 3 South, Range 4 East describes a tract of how many acres and how many square feet?

• 90 acres, 3,484,800 square feet

• 1.25 acres, 54,450 square feet

• 40 acres, 1,742,400 square feet

• 90 acres, 3,920,400 square feet

If a property sold for $497,000 and the sales associate was entitled to 75% of the commission earned and he/she earned $22,365, what percentage of commission was the property listed at?

• 5%

• 6%

• 7%

• 8%

The subject property is a three-bedroom, two bath house with a fireplace. The comparable is a three-bedroom, three bath house without a fireplace. An appraiser has determined the price of a bath is $5,000 and the price of the fireplace is $2,000. Which of the following adjustments should the appraiser make?

• Subtract $7,000 from the subject’s transaction/sale price

• Add $7,000 to the comparables transaction/sale price.

• Subtract $3,000 from the comparables transaction/sale price.

• Subtract $3,000 from the subject’s transaction/sale price.

Which of the following is a clause in a deed that states that the grantor owns the property and has the legal right to convey it?

• Seisin

• Constructive notice

• Actual notice

• Habendum clause