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Real Estate 3

Total questions: 14

Worksheet time: 7mins

Name
Class
Date
1.

Title VIII of which law prohibits discrimination in the sale, rental, and financing of housing?

a)

  Civil Rights Act of 1866

b)

Civil Rights Act of 1968

c)

 Equal Credit Opportunity Act of 1974

d)

  Housing and Community Development Act of 1974

2.

After operating the firm for 17 years, Trethlon Manufacturing just sold its entire operation for $5.7 million. The adjusted purchase price was $3.9 million. While the corporation ran the business, it spent $970,000 on capital improvements. Real estate commissions and other costs of the sale were $358,000. What is Trethlon's capital gain?

a)

  $1.328 million

b)

$1.8 million

c)

  $472,000

d)

  $5.7 million

3.

Which of the following statements is true about septic systems?

a)

There are many different types.

b)

They differ in the way they are installed.

c)

 They do not require inspection.

d)

  They do not require maintenance.

4.

Why might a licensee want a buyer to sign a buyer representation agreement?

a)

  It helps ensure buyer loyalty.

b)

  It provides the agent with bragging rights.

c)

  It's required by law.

d)

It will ensure that he'll receive the standard commission rate.

5.

What happens to a Florida real estate licensee who is involved in a case, can’t pay the judgment amount, and the consumer is awarded money from the Real Estate Recovery Fund?

a)

  Nothing. That’s what the fund is for!

b)

  The licensee can continue to practice real estate but must pay back the amount paid out, plus interest.

c)

 The licensee's commissions will be garnished until the amount paid out to the victim is repaid.

d)

 The licensee's license will be suspended until the amount paid to the victim, plus interest, is paid back.

6.

In Florida, real estate licensees may not fill in the blanks on a lease agreement that ____________.

a)

 Has a term of longer than one year

b)

  Is a month-to-month lease

c)

Was prepared by an attorney

d)

  Was prepared by the Florida Bar Association

7.

What discriminatory lending practice by lenders resulted in the destruction of whole neighborhoods, with perfectly good housing left abandoned?

a)

  Blockbusting

b)

  Gerrymandering

c)

  Redlining

d)

  Steering

8.

When Florida property taxes become delinquent, what happens?

a)

 A public auction is held.

b)

 A tax certificate is issued.

c)

  A tax certificate is sold.

d)

  The state can file a tax deed application.

9.

An investor is analyzing a property by looking at its ability to produce future income. The property is a 10-unit apartment building. Which of the following would be used to determine this value?

a)

  Effective gross income

b)

 Gross income multiplier

c)

  Gross rent multiplier

d)

Potential gross income

10.

A planning commission has final authority over which of these options?

a)

Community goals

b)

  Comprehensive plan

c)

  Site plan

d)

  Zoning ordinances

11.

Elizabeth’s property is encumbered by an easement in gross with which of these entities?

a)

The neighbor who constructed his new backyard fence six inches across Elizabeth’s property line

b)

  The owner of the empty lot down the street that Elizabeth uses as a vegetable garden with the owner’s permission

c)

  The resident of the adjoining property to whom Elizabeth has given permission to store some items in her gardening shed

d)

  The utility company that needs to access the power line that crosses a corner of Elizabeth’s land

12.

Rhonda and her husband filed for bankruptcy five years ago. They want to purchase a new house but don’t have the best credit score. They’ve decided to buy the home using an FHA loan. Which of these is a true statement?

a)

  A minimum down payment of 3.5% is required.

b)

 Mortgage insurance is not required.

c)

  The loan-to-value ratio must be less than 80%.

d)

They must have PMI.

13.

One area of town has maximum building height requirements and setbacks for the front, side, and rear yards. These requirements are all indicative of ______.

a)

  Bulk zoning

b)

 Commercial zoning

c)

  Density zoning

d)

Residential zoning

14.

What is the difference between a variance and a special use permit?

a)

  A special use permit is permanent, whereas a variance is temporary.

b)

A special use permit requires a show of hardship; a variance doesn’t.

c)

  A variance is permanent, whereas a special use permit is temporary.

d)

 A variance requires a show of hardship; a special use permit doesn’t.