Florida Real Estate License Exam

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Questions and Answers

If a Broward County property sold for $402,750, what amount must be paid for the documentary stamp tax on the deed?

$2,819.60

$3,022.50

$2,013.75

$2,415.00 (correct)

What is the term used for a property that no one will pay more for because something of the same quality in the same area is available for cheaper?

Principle of regression

Principle of progression

Principle of conformity

Principle of substitution (correct)

A swimming pool that costs $50,000 to construct but the market is only willing to pay $10,000 for the pool, what is this situation called?

External obsolescence

Functional obsolescence (correct)

Physical deterioration

Economic obsolescence

To qualify for the homestead tax exemption, property owners must file for the exemption between?

January 1st and March 1st Signup and view all the answers

If property owners don't pay their property tax by , they become ?

April 1st, delinquent Signup and view all the answers

Which of the following is allowed in planned unit developments?

Zero lot lines Signup and view all the answers

What is F.S. 455?

Gives the Department of Business Professional Regulations the power to enforce law on all Florida businesses Signup and view all the answers

What is it called when a sales associate fails to collect a security deposit?

Negligence Signup and view all the answers

What is the maximum fine per offense?

$7,500 per offense Signup and view all the answers

What is someone who obtains their broker's license but chooses to work under a brokerage as a sales associate called?

Broker's associate Signup and view all the answers

What type of agency is it if they owe full fiduciary duties to the principal?

Single agent Signup and view all the answers

What is another word for first renewal?

Post license Signup and view all the answers

If someone is an absentee owner, who may they hire?

Property manager Signup and view all the answers

What happens when you fail to complete your 14-hour requirements?

Involuntary inactive Signup and view all the answers

What is something that will not disqualify you from obtaining your Florida real estate license?

Citizenship and FL residency Signup and view all the answers

What is it called when you print flyers without your brokerage's logo?

Unauthorized ad Signup and view all the answers

What is a temporary business that does not need to register with the Department to conduct real estate brokerage services?

Joint Venture Signup and view all the answers

Two brokerages share office space and claim to be in a limited brokerage partnership. What is the true partnership formed if this claim is false?

General Partnership Signup and view all the answers

Which of the following may register with the Department to perform brokerage services?

Corporation Signup and view all the answers

If a sales associate fails to collect an Escrow deposit, what fraudulent activities are being committed?

Conversion Signup and view all the answers

What must you do first to potentially access the Florida real estate recovery fund?

File a complaint with the Department Signup and view all the answers

What does the term steering refer to?

Redirecting a buyer due to discriminatory reasons Signup and view all the answers

What does the word blockbusting refer to?

Encouraging homeowners to sell their properties due to market trends Signup and view all the answers

Match the following terms: steering and blockbusting

steering = Redirecting a buyer due to discriminatory reasons blockbusting = Encouraging homeowners to sell their properties due to market trends Signup and view all the answers

Property owners must make modifications in ordinance with the Americans with Disabilities Act, regardless of the cost.

False Signup and view all the answers

When was the Americans with Disabilities Act passed?

1990 Signup and view all the answers

One method for the security deposit money and advance rent is?

The landlord may post a surety bond with the clerk of the circuit court in the county in which the dwelling unit is located Signup and view all the answers

What is the most common type of estate?

Fee simple Signup and view all the answers

What type of Fee simple estate grants your sole ownership of the bundle of rights?

Estates in severalty Signup and view all the answers

In a life estate, what is the recipient referred to as if they were the original fee simple owner that conveyed ownership to the life tenant and are set to remain free of ownership permanently?

Life tenant Signup and view all the answers

In a life estate, what is the recipient referred to as if they were the original fee simple owner that conveyed ownership to the life tenant and are set to reconvey ownership after the life tenant's passing?

Remainder estate Signup and view all the answers

Study Notes

Real Estate Basics

F.S. 455 establishes the requirements for obtaining a real estate license
F.S. 475 gives the Florida Real Estate Commission power to enforce law in real estate transactions

Real Estate Transactions

A prearranged one-time real estate transaction is called a joint venture
A sales associate who fails to collect a security deposit is guilty of negligence
If a sales associate fails to collect an escrow deposit, they are committing conversion

Real Estate Licensing

If someone obtains their broker's license but chooses to work under a brokerage as a sales associate, they are called a broker's associate
A person who moves out of state has 60 days to correct their address with the DBPR
Failure to complete continuing education forces a license to become null and void

Real Estate Agency

A single agent owes full fiduciary duties to the principal
A transaction broker owes a principal or fiduciary duties
A subagent is a type of agency where the agent owes fiduciary duties to the principal

Real Estate Law

The Statute of Frauds states that something must be in writing to be enforceable
The Statute of Limitations stipulates time periods that one party can sue another
A void contract is a contract that cannot be enforced
A voidable contract is a contract that can be enforced, but one party has the option to cancel

Real Estate Contracts

A real estate contract requires consideration, offer and acceptance, and competent parties
An express contract is a contract that is explicitly stated in writing
An implied contract is a contract that is inferred by the actions of the parties

Real Estate Appraisal

Appraisers use the market approach, cost approach, and income approach to value property
The market approach values property based on the sales of comparable properties
The cost approach values property based on the cost of replacing the property
The income approach values property based on its potential to generate income

Real Estate Finance

A mortgage is a security instrument that pledges property as collateral for a loan
A deed of trust is a security instrument that pledges property as collateral for a loan
The maximum fine per offense is $5,000

Real Estate Ethics

Steering refers to directing a buyer to a property within their budget
Blockbusting refers to encouraging homeowners to sell their properties due to market trends
The Americans with Disabilities Act requires property owners to make modifications to accommodate disabilities### Contracts
A "meeting of the minds" means mutual understanding between parties.
True consideration in a contract requires a sufficient consideration to be specified.
For a contract to be enforceable, one party must accept, and the acceptance of the offer must be communicated.

Listing Agreements

In an "as is" contract, the seller must disclose all material defects but are not required to fix them.
An exclusive right of sale listing gives the best protection to compensation.

Mortgages

A mortgagor is the buyer, and the mortgagee is the lender.
In a lien theory state like Florida, grantees are granted title insurance on the day of closing.
Evidence of debt is called a promissory note.

Foreclosure

An acceleration clause allows lenders to demand full payment of the loan if the borrower defaults.
If the balance of the promissory note has not been paid in full, the lender cannot obtain a deficiency judgement for the unsatisfied amount, thanks to an exculpatory clause.

Loans

A loan with no legal recourse against the borrower for the unsatisfied portion of the loan in a foreclosed property is called an exculpatory clause loan.
If the borrower pays the entire balance of the debt plus any interest and costs that have accrued since the default, the borrower can redeem the property (equity of redemption).
The loan-to-value ratio is the ratio of the loan amount to the purchasing price of the property.

Mortgage Insurance

A VA loan is a type of mortgage that is insured, and the lender is reimbursed for losses, including foreclosure.
To qualify for a VA Guaranteed loan, it must be the primary residency.

Primary Loan Market

Federal National Mortgage Association, commercial banks, savings and loan associations, and credit unions are all part of the primary loan market.

Real Estate Principles

The principle of substitution states that a property's value is determined by the cost of acquiring a similar property in the same area.
Economic obsolescence occurs when a property feature, like a swimming pool, costs more to construct than its market value.

Property Taxes

To qualify for the homestead tax exemption, property owners must file for the exemption between January 1st and March 1st.
If property owners don't pay their property tax by April 1st, they become delinquent.

Planned Unit Developments

Planned unit developments (PUDs) allow for zero lot lines.

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Description

Test your knowledge of Florida real estate laws and regulations with this quiz. Questions cover topics such as the Florida Real Estate Commission and real estate licenses.