Real Estate Practice Exam big test

Which of the following is not true concerning water rights?

• Riparian rights are associated with land abutting a flowing waterway like a river or stream.

• Littoral rights are associated with land abutting water that is nonflowing. Nonflowing water includes lakes, ponds, and oceans.

• Riparian rights are held in common with other riparian owners and they may use it for fishing or boating but may not alter the flow of the water or contaminate the water.

• Littoral rights are associated with land abutting a flowing waterway.

An unlicensed personal assistant may perform which activity?

• Conduct listing presentations

• Show property

• Deposit earnest money in the escrow account

• Negotiate the terms of a contract

What is the continuing education requirement of a sales associate after the licensee has completed the post-licensing education requirement during the initial license period?

• Only active licensees are required to complete at least 14 hours of continuing education during every two-year license period.

• Active licensees and inactive licensees are required to complete at least 14 hours of continuing education during every two-year license period.

• Active licensees are required to complete 3 hours of additional core law if they wish to become brokers.

• Licensees do not have continuing education once they complete the required post-licensing education.

How is a sales associate’s commission rate with the brokerage determined?

• A sales associate’s commission is determined with a negotiation between the buyer and the seller.

• A sales associate’s commission is determined with a negotiation between the sales associate and the broker.

• A sales associate’s commission is a set rate in Florida.

• A sales associate’s commission is determined with a negotiation between the seller and the sales associate.

How is the binder deposit shown on the Closing Disclosure Form?

• Credit to the buyer, debit to the seller

• Credit to the seller

• Credit to the buyer

• Debit to the buyer, credit to the seller

What is the status of a sales associates’ license if he/she does not complete the required post licensing education prior to his/her first renewal cycle?

• Involuntary inactive

• Inactive

• Suspended

• Null and Void

How are commission rates determined when a broker lists a seller’s property?

• The standard commission rate for the state of Florida is 6%.

• Commission rates are arrived at by a negotiation between the sales associate and the seller.

• Commission rates are determined by the FREC, (Florida Real Estate Commission).

• Commission rates are arrived at by a negotiation between the broker and the seller.

Which of the following is a list of the required elements to make a contract valid?

• in writing, recorded, acknowledged, and signed

• in writing, recorded, offer and acceptance, legal

• competent parties, in writing, offer and acceptance, legal, consideration

• competent parties, offer and acceptance, legal, consideration

The purchase price of a property is $500,000. The buyer’s financials are as follows: The buyer put $50,000 in escrow. The buyer has $50,000 of his own money. The buyer is assuming the seller’s mortgage of $85,000. The buyer is acquiring a new mortgage of $225,000. The buyer has decided to ask the seller to take back a mortgage. How much would the mortgage be if the seller takes back a purchase money mortgage from the buyer?

• $500,000

• $85,000

• $225,000

• $90,000

A licensed real estate sales associate conducted an appraisal for a fee. The FREC found the licensee to be in violation of the Uniform Standards of Professional Appraisal Practice. Which statement is true?

• Real estate licensees are not required to abide by the USPAP and in this situation the sales associate would charge a commission for the appraisal, not a fee.

• The licensee is subject to FREC discipline.

• Only the Appraisal Board can impose a penalty in this case-the FREC does not have authority over appraisal matters.

• Real estate sales associates may not conduct appraisals for a fee unless they are also certified or licensed real estate appraisers.