Font size
Worksheetsfrex magnolia
Total questions: 100
Worksheet time: 50mins
Of the seven members of the FREC, two must
be licensed attorneys
have never been licensed as real estate sales associates or brokers
A sales associate decides to quit his brokerage and go to work for another broker. Which applies?
The sales associate must be registered with FREC/DBPR under the new broker before working there
The old broker must agree to the agreement.
The guarantee in which the seller provides assurance that he owns the property and, therefore, has the right to sell it is called the covenant of
encumbrances
seisin
In the law of real property, the Statute of Frauds refers to the
legality of the object of the contract
requirement that to be enforceable, contracts must be in writing
A borrower has a home loan and his deed states that he is the owner of the property. The mortgage is an encumbrance and upon repayment of the loan, the cloud will be removed. Which theory of mortgage lending is this describing?
Lien theory
Title theory
A developer purchased 100 acres of land and is currently subdividing the property. He plans to make a new subdivision and should reserve within the mortgage a
partial release clause.
an escape clause
The capitalization rate is obtained by
dividing the net operating income by the sales price.
dividing the sales price by the net operating income.
Property management in the real estate business has gained popularity and importance due to
the growth in absentee ownership
the growth in supply and demand of the market economy.
What is called when a person has interest in real property and implies that the individual will receive legal title at a future date?
Abstract of title
Equitable title
In a platted subdivision, the legal description most often used is
Metes and Bounds
Lot and Block
Which of the following elements is not essential to make a contract valid?
Recording
Competent parties
The Florida Constitutional Homestead Tax Exemption is up to $50,000 and is deducted from the
taxable value
assessed value when calculating taxable value.
The monetary policy in the United States is determined by
Federal Reserve System
The FREC
What is called when the plaintiff seeks to have the court force the party not in breach to perform according to the contract?
Specific performance
Liquidated damages
With a Purchase Money Mortgage, (PMM) a mortgage is typically paid back to whom?
The seller
The buyer
Which of the following would most concern a lender when deciding to give a buyer a loan?
The buyer’s familial status
The buyer’s credit score
A good indicator of the relationship between supply and demand in the residential market is
the market conditions and supply rate
the vacancy rate.
Which of the following is deductible for a homeowner on their federal income taxes?
Mortgage payments and property taxes
Mortgage interest and property taxes
Highest and best use
is the most effective utilization economically.
is the most common appraisal method.
A licensee may substitute attendance at one legal agenda session of the FREC for
six hours of continuing education.
three hours of continuing education.
An unlicensed assistant can
hand out materials at an open house.
give opinions of what the value of the house is worth at an open house.
When must the no brokerage relationship notice be disclosed?
Before the agent transitions to a transaction broker
In writing before showing the property
Advertisements that fail to disclose the name of the brokerage firm
are false advertisements.
are blind advertisements
When the principal a licensee is working with asks the licensee not to show his property to persons of a particular race
the licensee should follow his directions.
the licensee should withdraw and not work with the owner.
Physical components of real property do not include
timber rights.
subsurface rights.
The main purpose of the Florida Constitutional Homestead is
to provide housing for older persons in Florida.
to exempt property from a forced sale
What does an agent have to do that fails to complete the required 45-hour post license course before the expiration of his or her license if he or she wishes to continue in real estate?
Pay a fine and renew his or her license
Repeat the pre license course, pass the state exam, submit fingerprints, and submit an application for license
What is the law that establishes the legal rights and responsibilities of real estate licensees is
F.S. 475
Chapter 61j2
When a buyer is a real estate broker’s principal, the sales associates in the broker’s office are
also bound by the broker’s agency obligations
required to assume fiduciary duties to the buyer and the seller.
A real estate broker and an owner developer are sisters, and they share an office. Which applies?
A sales associate could be employed by both the owner developer and the broker because they share an office.
A sales associate must be registered with the DBPR and can only work for either the owner developer or the broker but not both.
Lotteries
are legal and used sometimes in Florida for listings.
are an illegal practice and not used in Florida.
Advertising for a brokerage corporation must include the
registered name of the brokerage firm.
broker’s license number.
How long does a tenant have to dispute a claim made by a landlord, (in writing)?
15 days
30 days
A joint tenant who wants to sell their share of a property
can sell their property to someone and that someone would also be joint tenant.
can sell their property to someone and that someone would be a tenant in common.
What is the law that states sellers are required to provide buyers with the HOA disclosure summary before the execution of a contract?
F.S. 720
F.S. 475
Which of the following would not need to be a part of a metes and bounds legal description?
Reference to a monument, such as a tree or rock
The proper distances between corners of the property
Option contracts are
Unilateral
Bilateral
The cost of a mortgage stated as a yearly rate and includes such items as interest, mortgage insurance, and loan origination points is called the
adjustable-rate mortgage.
interest rate.
To raise the lender’s yield on a mortgage by 1%, the approximate discount points required is
8 points
4 points
The mortgage lien in a title theory state has been paid in full. The mortgage lien can be released through
a partial release clause.
the defeasance clause.
Typically the documentary stamp tax on the deed is paid by the
seller
buyer
Leverage is
the practice of assisting buyers in the sale of property.
the practice of using borrowed funds to finance the purchase of an asset.
What is it called when an investor may lose all or part of an investment?
leverage
risk
If the subject property has four bedrooms and a comparable property has three bedrooms and the appraiser has determined a bedroom is worth $5,000, what adjustment should the appraiser make?
subtract $5,000 from the comparable
add $5,000 to the comparable
Increased traffic flow of a neighborhood would most likely cause
external obsolescence.
functional obsolescence
A broker had an open listing and found the buyer for the property but then went into the hospital. If that buyer buys the house in his absence, does he have a case for receiving commission?
no
yes
If a broker advertises a property for sale and knows that the property has hazardous chemicals underneath it, the broker is
not required to disclose this to buyers.
always required to disclose this to buyers.
A sales associate performs a broker’s price opinion. Who is the bank that ordered the BPO required to pay?
the sales associate
the sales associate’s broker
An oral offer came into a broker, but a better written offer came in right after. Which applies?
The broker should submit both offers
The broker can decide which offer to submit.
A sales associate is a single agent for his seller and now a buyer wants to see the property that is for sale. Which applies?
The seller should sign a single agent disclosure.
The seller should sign a consent to transition to transaction broker disclosure.
What is the charge for taking original listings agreements?
Larceny
Breach of Trust
What is required to be on the purchase and sales contract regarding the title company if the title company is holding escrow?
Name, address, and phone number of the title company
Name, address, phone number, and email of the title company
What is it called if the brokerage firms name is not on an advertisement?
A false advertisement
A blind advertisement
How would you take title with your friend if you wanted your interest in the property you were buying to go to your heirs after your death?
Tenants in common
Joint tenants
What is it called when you take personal property and attach it to real property?
A fixture
An attachment
Tenancy by the entireties is for
anyone
husband and wife
Which disclosure summary concerning ad valorem taxes must be presented to a prospective home buyer in Florida?
HOA disclosure summary
Property tax disclosure
How can you remove an easement if you cannot remove it by normal means, (a quit claim deed)?
Decision of the court
Ordering a survey
Which of the following liens would take priority?
Mechanic’s lien dated October 2, 2021
Property tax lien dated October 3, 2021
An abstract of title is a
condensed history of title.
linking of past owners of a property
When someone dies intestate, (no will) the state will appoint an individual to settle the deceased individual’s estate. Which of the following deeds is used in this case?
A guardian’s deed
A personal representative’s deed
How many sections are in a township?
36
640
Purchase and sales contracts are bilateral because
both parties are obligated to perform.
they must be recorded.
Who pays the discount points on a VA loan?
The buyer
The seller
Lenders in the mortgage market who supply mortgage funds directly to borrowers are known as
fannie mae.
primary lenders.
How is the broker’s commission typically shown on the closing disclosure?
debit the seller, credit the buyer
debit the seller only
Closing expenses, (transfer taxes) are typically
paid by the buyer and the seller and who pays which ones are determined by state law.
paid by the buyer and the seller and who pays which ones are determined by the contract.
Can you call a CMA an appraisal?
No
Yes
A CMA is similar to an appraisal
because adjustments are made to the subject.
because adjustments are made to the comparables.
After completing the post licensing education during the initial license period, licensees must complete
14 hours of continuing education during every two-year license period for active and inactive licensees.
14 hours of continuing education during every two-year license period for active licensees only.
Which type of depreciation would an appraiser most likely be concerned with when appraising a 15-year-old home in a rural community?
external obsolescence
physical depreciation
The purpose of Fannie Mae is to
purchase residential real estate loans in order to keep a uniform flow of funds in the mortgage market.
provide leverage to homeowners.
What is FHA insurance for?
FHA insurance is to protect the lender in the event of the destruction of the property
FHA insurance is intended to reimburse private lenders when an FHA-insured loan is determined to be uncollectable.
Do adjustable-rate mortgages have a pre-payment penalty?
No
Yes
What requirement applies regarding dwellings built prior to 1978?
Sellers and lessors are not required to disclose the presence of known lead-based paint in residential dwellings.
Sale contracts and leases must include specific lead-based paint warning and disclosure language.
A clause found in a deed limiting the size of a dwelling to be constructed on a lot to a minimum of 2,000 square feet would be an example of a
restrictive covenant.
deed restriction.
. Two close friends own a nursery as joint tenants with right of survivorship. One owner died unexpectedly. Who owns the nursery?
The surviving friend
The surviving friend and the deceased friend’s heirs.
How is the intangible tax typically noted on the Closing Disclosure Statement?
Debit to the seller, credit to the buyer
Debit buyer only
A broker provided an up to date and accurate rental list for a $350.00 fee. The potential tenant was unable to obtain a rental and requested a refund. Which applies?
If the potential tenant makes the request within 30 days, the licensee would be required to provide a refund of $262.50.
If the potential tenant makes the request within 30 days, the licensee would be required to provide a full refund of the $350.00
The Florida Residential Landlord and Tenant Act requires landlords to account for advance rents and security deposits in one of three ways. Which of the following is not one of the choices the landlord has regarding advance rents and security deposits?
A landlord can hold the money in a separate non-interest-bearing Florida bank account for the benefit of the tenant.
A landlord can hold the money in any of the 50 states in a separate non-interest-bearing account for the benefit of the tenant.
A broker was convicted for publishing false or misleading information. Which applies?
The broker can be charged by a civil court, criminal court, but not the FREC.
The broker can be charged by civil court, criminal court, and the FREC.
If someone is appointed as a personal representative of a deceased person’s estate, do they need a real estate license to assist in the sale?
Yes
No
A broker receives a listing on a home and his friend wants to submit an offer. Can the broker tell his friend that the seller is going through a divorce?
No
Yes
Which of the following random statements is false?
A group license is sometimes issued to a sales associate or broker associate who are registered under an owner-developer. Multiple licenses is what a broker would have if they owned more than one brokerage.
The additional tax exemption for a blind person who homestead is $1,000.
Which of the following random statements is false?
A tax deed is what is auctioned in the event that a property owner does not pay his or her taxes
Static risk is risk that can be offset with insurance. Lotteries are a violation in Florida and not permitted.
A building is 4 stories high and each floor is 100x50. I want to put bins in all the space I can. I can’t use 20% of each floor. The bins are 10x10. How many bins can I put in this building?
160
240
What is the net operating income of a property that has a value of $495,000, operating expenses of $25,000, and a capitalization rate of 10%?
$49,500
$25,000
A man can borrow $78,000 to purchase a house, and this is 2.5 times his salary. What is his annual salary?
$50,000
$31,200
A county has a property tax rate of 12.18 mills. The homestead exemption of $25,000 is available to homestead property. If the property taxes are $495,000 and the owner does qualify for the exemption, how much will the property taxes be?
$5,724.60
$6,582.23
A sales associate earns 70% of a 6% commission on a sale of 20 acres at $5,000 per acre. How much is the commission earned by the sales associate?
$5,200
$4,200
If a lot frontage is 150 feet, street paving costs are $25.00 per running foot, and the city will pay 40% of the paving costs, what will be the assessment to the property owner for their side of the street?
$750
$1,125
A developer owns 100 acres in Charlotte county, Fl and wants to create 20 lots with each lot being 21,780 square feet each. How many acres would he need to allocate for this project?
20 acres
10 acres
The purchase price of the property is $200,000. The binder deposit was $25,000, the cash at closing for the buyer is $11,000, the first mortgage amount that the buyer is acquiring is for $25,500. The buyer is giving the seller a purchase money mortgage that the seller is taking back. How much is the purchase money mortgage amount?
$130,000
$138,500
A tract of land measures 660 feet along the highway and contains 20 acres. How deep is the tract?
1,320
1,258
A property which measures 120’ X 300’ sold for $38,500. What was the price per square foot?
$1.07
$2.00
How many acres and square feet are in the SW1/4 of the NE1/4 of the E1/4 of the W1/4 and the N1/4 of the SW1/4 of the E1/4 of the W1/4 of section 9?
2.5 acres; 108,900 square feet
5 acres; 217,800 square feet
Calculate all applicable documentary stamp taxes and intangible taxes for property located in Sarasota county:
Purchase price $550,000
Earnest money deposit $45,550
Recorded first mortgage (assumed) $157,000
Second mortgage (new) $200,499
Cash at closing $15,900
$5,502.24
$6,250.35
While working for a broker, a sales associate acquired a listing for $889,000 at a 6% commission rate. A second sales associate, who works for another brokerage office, found the buyer for the property. The listing and selling brokers agree to a 50-50 split between the two offices. The property sold for $900,000. The selling broker kept 35% of the commission received by the selling office. How much did the selling office’s sales associate receive?
$16,550
$17,550
The total property values in the city total $5,495,000. The government building value totals $450,000. The church value totals $125,000. The total tax exemptions for homeowners total $950,000. What is the tax revenue of the city if the overall tax rate is 9.2 mills?
$36,524
$48,500
. If the subject property has three bedrooms and the comparable property has four bedrooms, and a bedroom is worth $10,000, the correct adjustment is to
add to the comparable.
subtract from the comparable.
