Final test prep.pdf

Real Estate Questions and Answers 1. What is F.S. 455? a) Gives the Department of Business Professional Regulations the power to enforce law on all Florida businesses b) Gives the Florida Real Estate Commission power to enforce law in real estate transactions c) Establishes the requirements for obta...

Real Estate Questions and Answers 1. What is F.S. 455? a) Gives the Department of Business Professional Regulations the power to enforce law on all Florida businesses b) Gives the Florida Real Estate Commission power to enforce law in real estate transactions c) Establishes the requirements for obtaining a real estate license d) Defines the duties of a real estate broker 2. What is it called when a sales associate fails to collect a security deposit? a) Fraud b) Misrepresentation c) Negligence d) Breach of contract 3. What is the maximum fine per offense? a) $10,000 per offense b) $2,500 per offense c) $7,500 per offense d) $5,000 per offense 4. What is someone who obtains their broker's license but chooses to work under a brokerage as a sales associate called? a) Sales associate b) Broker's associate c) Real estate agent d) Managing broker 5. What is F.S. 475? a) Gives the Department of Business Professional Regulations the power to enforce law on all Florida businesses b) Gives the Florida Real Estate Commission power to enforce law in real estate transactions c) Establishes the requirements for obtaining a real estate license d) Defines the duties of a real estate broker 6. What do you call a prearranged one-time real estate transaction? a) Partnership b) Joint venture c) Syndication d) Limited liability company 7. What is another word for first renewal? a) Continuing education b) Post license c) Pre-license d) Re-certification 8. If someone is an absentee owner, who may they hire? a) Real estate broker b) Property manager c) Leasing agent d) Real estate attorney 9. What happens when you fail to complete your 14-hour requirements? a) Voluntary inactive b) Suspended c) Revoked d) Involuntary inactive 10. What is something that will not disqualify you from obtaining your Florida real estate license? a) Criminal record b) Poor credit history c) Citizenship and FL residency d) Previous license revocation 11. What type of agency is it if they owe full fiduciary duties to the principal? a) Transaction broker b) Single agent c) Dual agent d) Subagent 12. What is it called when you print flyers without your brokerage's logo? a) Misleading ad b) Blind ad c) False ad d) Unauthorized ad 13. If someone moves out of state, how many days do they have to correct their address with the DBPR? a) 30 days b) 60 days c) 90 days d) 120 days 14. What forces a license to become null and void? a) Failure to pay renewal fees b) Failure to complete post licensing requirements c) Failure to notify DBPR of address change d) Failure to complete continuing education 15. What is declaratory decree? a) Arbitration b) Mediation c) Interpleader d) Negotiation 16. What type of business can register to broker real estate transactions? a) Sole proprietorship b) Partnership c) Corporation d) All of the above 17. What is it called when a sales associate fails to collect a security deposit? a) Fraud b) Misrepresentation c) Negligence d) Breach of contract 18. What is it called when you print flyers without your brokerage's logo? a) Misleading ad b) Blind ad c) False ad d) Unauthorized ad 19. What is another word for first renewal? a) Continuing education b) Post license c) Pre-license d) Re-certification 20. What is F.S. 475? a) Gives the Department of Business Professional Regulations the power to enforce law on all Florida businesses b) Gives the Florida Real Estate Commission power to enforce law in real estate transactions c) Establishes the requirements for obtaining a real estate license d) Defines the duties of a real estate broker 21. What is F.S. 455? a) Gives the Department of Business Professional Regulations the power to enforce law on all Florida businesses b) Gives the Florida Real Estate Commission power to enforce law in real estate transactions c) Establishes the requirements for obtaining a real estate license d) Defines the duties of a real estate broker 22. What is the maximum fine per offense? a) $1,000 per offense b) $2,500 per offense c) $7,500 per offense d) $5,000 per offense 23. What is someone who obtains their broker's license but chooses to work under a brokerage as a sales associate called? a) Sales associate b) Broker's associate c) Real estate agent d) Managing broker 24. What do you call a prearranged one-time real estate transaction? a) Partnership b) Joint venture c) Syndication d) Limited liability company 25. If someone is an absentee owner, who may they hire? a) Real estate broker b) Property manager c) Leasing agent d) Real estate attorney 26. What happens when you fail to complete your 14-hour requirements? a) Voluntary inactive b) Suspended c) Revoked d) Involuntary inactive 27. What is something that will not disqualify you from obtaining your Florida real estate license? a) Criminal record b) Poor credit history c) Citizenship and FL residency d) Previous license revocation 28. What type of agency is it if they owe a principal or fiduciary? a) Transaction broker b) Single agent c) Dual agent d) Subagent 29. If someone moves out of state, how many days do they have to correct their address with the DBPR? a) 30 days b) 60 days c) 90 days d) 120 days 30. What forces a license to become null and void? a) Failure to pay renewal fees b) Failure to complete post licensing requirements c) Failure to notify DBPR of address change d) Failure to complete continuing education 31. What is declaratory decree? a) Arbitration b) Mediation c) Interpleader d) Negotiation 32. What type of business can register to broker real estate transactions? a) Sole proprietorship b) Partnership c) Corporation d) All of the above 33. It has to do with physical land and improvements including the intangible ownership rights, what would be the correct term? a) Real property b) Tangible rights c) Intangible rights d) Personal property 34. Which deed is best for the grantor? a) General Warranty Deed b) Special Warranty Deed c) Quit Claim d) Bargain and Sale Deed 35. If a city wants land for a new school, what rights does the city have to force an owner to sell? a) Police power b) Eminent domain c) Zoning d) Escheat 36. What value do appraisers use for a profitable business? a) Market value b) Book value c) Going concern value d) Liquidation value 37. What are the ratio requirements for an FHA loan? a) 28%-36% b) 31%-41% c) 25%-33% d) 30%-40% 38. Which approach to value would we use for a county courthouse? a) Market approach b) Cost approach c) Income approach d) Immune property 39. Which tax applies to new mortgages? a) State intangible tax on mortgages b) Federal income tax c) Property tax d) Sales tax 40. What is the biggest disadvantage of investing in real estate? a) High returns b) Illiquid c) Tax benefits d) Appreciation 41. What approach do appraisers use to value a failing property? a) Market approach b) Cost approach c) Liquidation approach d) Income approach 42. What document do you receive when a loan is fully paid off? a) Deed of trust b) Promissory note c) Letter of satisfaction d) Mortgage agreement 43. Tax levies that are used to pay for specific public improvements that add value to the property, what is this called? a) General taxes b) Special assessments c) Property taxes d) Income taxes 44. What is the opposite of erosion? a) Deposition b) Accretion c) Sedimentation d) Weathering 45. XYZ company is an example of what type of business formation? a) Partnership b) Sole proprietorship c) Corporation d) Limited liability company 46. What is 2 sections west of 10? a) 8 b) 12 c) 6 d) 14 47. What rights does an owner have to utilize a river that runs through his property for personal uses? a) Littoral rights b) Riparian rights c) Water rights d) Subsurface rights 48. A chairperson acting alone may exercise which power? a) Legislative b) Judicial c) Executive d) Administrative 49. When an appraiser estimates depreciation, what age do they use? a) Chronological age b) Effective age c) Actual age d) Physical age 50. Which item shows as a credit to the buyer on the closing disclosure? a) Property taxes b) Binder deposit c) Loan amount d) Title insurance 51. What are four reasons to buy real estate? a) Tax benefits, passive income, equity build-up, and the opportunity to leverage b) High returns, liquidity, tax benefits, and low risk c) Appreciation, depreciation, high returns, and low risk d) Passive income, high returns, liquidity, and low risk 52. What is used to cure a defect in a title? a) General Warranty Deed b) Quit claim c) Title insurance d) Special Warranty Deed 53. All the following are requirements for consideration, except? a) Mutual consent b) Lawful purpose c) Signature from grantee d) Competent parties 54. Regarding the year 2022, when do the primary property taxes become delinquent? a) January 1st, 2023 b) April 1st, 2024 c) December 31st, 2023 d) March 1st, 2024 55. What relationship has been formed if two or more parties engage in a one-time transaction? a) Partnership b) Corporation c) Joint venture d) Limited liability company 56. If there is an Escrow dispute, what should the agent do? a) Notify the buyer b) Notify the seller c) Notify F.R.E.C. in writing within 15 days d) Notify the broker 57. When someone transfers contractual rights, what is that called? a) Novation b) Assignment c) Delegation d) Subrogation 58. Which statute stipulates time periods that one party can sue one another? a) Statute of frauds b) Statute of limitations c) Statute of repose d) Statute of contracts 59. Which statute states something must be in writing to be enforceable? a) Statute of limitations b) Statute of repose c) Statute of contracts d) Statute of frauds 60. Which contract is created when some of the terms and conditions are inferred? a) Express contract b) Implied contract c) Bilateral contract d) Unilateral contract 61. What is required to form a real estate contract? a) Consideration, offer and acceptance, and competent parties b) Offer and acceptance, mutual consent, and lawful purpose c) Competent parties, mutual consent, and lawful purpose d) Consideration, mutual consent, and lawful purpose 62. What is a contract that cannot be enforced? a) Voidable contract b) Unenforceable contract c) Void contract d) Executory contract 63. All the following are remedies for breach of contract, except: a) Specific performance b) Liquidated damages c) Rescission d) A claim from the Florida real estate recovery fund 64. Which survey method is used for residential subdivisions? a) Metes and bounds b) Government survey c) Lot and block d) Rectangular survey 65. What is the primary reference point in the metes and bounds? a) Tallahassee b) Principal meridian c) Base line d) Point of beginning 66. What is the number called that is assigned to each property by appraisers? a) Property identification number b) Tax identification number c) Assessor's parcel number d) Real estate number 68. What is the only way a broker can represent the buyer and seller? a) In a residential sale with dual agency b) In a nonresidential sale where the buyer and seller request single agency representation and have designated sales associates c) In a commercial sale with dual agency d) In a residential sale with designated sales associates 69. What is a special agent? a) Someone authorized to perform multiple acts under agency law b) Someone authorized to perform a single act under agency law by the employer c) Someone authorized to perform all acts under agency law d) Someone authorized to perform acts under dual agency 70. A principal office registration is? a) Non-transferable b) Transferable c) Renewable every year d) Only valid for one year 71. An Escrow account may be held in? a) A commercial bank, title company, credit union, or savings and loans association located in the state of Florida b) Any bank in the United States c) Only in a commercial bank d) Only in a title company 72. What type of partnership can be expressed or implied, orally or in writing? a) Limited Partnerships b) General Partnerships c) Joint Ventures d) Corporations 73. What is a temporary business that does not need to register with the Department to conduct real estate brokerage services? a) Limited Partnership b) General Partnership c) Joint Venture d) Corporation 74. Two brokerages share office space; they claim to be in a limited brokerage partnership. If this is false, what is the true partnership formed? a) General Partnership b) Limited Partnership c) Joint Venture d) Ostensible Partnership 75. Which of the following may register with the Department to perform brokerage services? a) General Partnership b) Limited Partnership c) Joint Venture d) Corporation 76. If a sales associate fails to collect an Escrow deposit, what fraudulent activities are being committed? a) Misrepresentation b) Culpable negligence c) Commingling d) Conversion 78. What must you do first to potentially be able to access the Florida real estate recovery fund? a) File a complaint with the Department b) Sue the opposing realtor c) Notify the broker d) Contact the recovery fund directly 79. What does the term steering refer to? a) Directing a buyer to a property within their budget b) Redirecting a buyer due to discriminatory reasons c) Advising a buyer on property features d) Helping a buyer find a property quickly 80. What does the word blockbusting refer to? a) Encouraging homeowners to sell their properties due to market trends b) Enticing a seller with discriminatory claims to influence them to move in a direction they might not particularly go c) Helping sellers find buyers quickly d) Advising sellers on how to increase property value 81. The word steering refers to _____, and the word blockbusting refers to ________. a) Sellers, Buyers b) Buyers, Sellers c) Agents, Clients d) Brokers, Agents 82. Property owners must make modifications in ordinance with the Americans with Disabilities Act, regardless of the cost. a) True b) False c) Only if the property is commercial d) Only if the property is residential 83. When was the Americans with Disabilities Act passed? a) 1980 b) 1985 c) 1990 d) 1995 84. One method for the security deposit money and advance rent is? a) The landlord may post a surety bond with the clerk of the circuit court in the county in which the dwelling unit is located b) The landlord may keep the funds in a personal account c) The landlord may invest the funds in stocks d) The landlord may use the funds for personal expenses 85. What is the most common type of estate? a) Life estate b) Fee simple c) Leasehold estate d) Estate for years 86. What type of fee simple estate grants your sole ownership of the bundle of rights? a) Tenancy in common b) Joint tenancy c) Estates in severalty d) Tenancy by the entirety 87. 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? a) Life tenant b) Remainder estate c) Revision estate d) Grantor 88. 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? a) Life tenant b) Remainder estate c) Revision estate d) Grantor 89. In Florida, spouses are permitted to own _____, which prohibits the spouse from conveying ownership non-consensually? a) Property jointly b) Property separately c) Property as tenants in common d) Property as joint tenants 90. What type of Fee simple grants no right of survivorship? a) Tenancy by the entirety b) Joint tenancy c) Tenancy in common d) Estates in severalty 91. A tenancy in common ownership can be created when? a) On the same or different deeds and same or different times, with equal or unequal shares of ownership b) Only on the same deed and at the same time c) Only on different deeds and at different times d) Only with equal shares of ownership 92. What type of fee simple estate grants right of survivorship? a) Tenancy in common b) Joint tenancy c) Estates in severalty d) Tenancy by the entirety 93. The marriage is the owner in which fee simple estate? a) Tenancy in common b) Joint tenancy c) Estates in severalty d) Tenancy by the entireties 94. A non-freehold estate, with a specified period is considered to be what type of lawful property possession? a) Tenancy at will b) Tenancy for years c) Tenancy at sufferance d) Tenancy by the entirety 93. The marriage is the owner in which fee simple estate? a) Tenancy in common b) Joint tenancy c) Estates in severalty d) Tenancy by the entireties 94. A non-freehold estate, with a specified period is what type of lawful property possession? a) Tenancy at will b) Tenancy for years c) Tenancy at sufferance d) Tenancy by the entirety 95. What is the best evidence of ownership? a) Actual notice b) Constructive notice c) Title insurance d) Deed 96. What does the word title mean? a) The right to or ownership of land b) The document that transfers ownership c) The legal description of the property d) The mortgage on the property 97. Which of the following is required for a valid deed? a) A habendum clause expressing ownership being conveyed; the deed must be signed by the grantor and witnessed, the grantee does not need to sign. b) A legal description of the property; the deed must be signed by the grantee and witnessed; the grantor does not need to sign. c) A habendum clause expressing ownership being conveyed; the deed must be signed by the grantee and witnessed, the grantor does not need to sign. d) A legal description of the property; the deed must be signed by the grantor and witnessed; the grantee does not need to sign. 98. What is the only legal necessity in a deed? a) A habendum clause expressing ownership being conveyed b) A premises providing legal description of the property being conveyed c) The signature of the grantee d) The signature of the grantor 99. The grantor refers to the ___, when the grantee refers to______? a) Buyer, Seller b) Seller, Buyer c) Lender, Borrower d) Borrower, Lender 100. A warrants or covenants are what? a) Clauses containing promises made by the grantor in the deed b) Clauses containing promises made by the grantee in the deed c) Clauses containing promises made by the lender in the deed d) Clauses containing promises made by the borrower in the deed 101. What is the most common type of deed that protects the grantee? a) Special warranty deed b) Bargain and sale deed c) General warranty deed d) Quitclaim deed 102. The term gross lease refers to what? a) A lease that requires the tenant to pay all expenses related to the property including real estate tax, insurance, and maintenance costs. b) A lease that requires the landlord to pay all expenses related to the property including real estate tax, insurance, and maintenance costs. c) A lease that requires the tenant to pay only the rent, and the landlord pays all other expenses related to the property. d) A lease that requires the tenant to pay only the rent and insurance, and the landlord pays all other expenses related to the property. 103. On model residential lease forms approved by the Florida Supreme Court covering periods one year or less, licensees may? a) Fill in the blanks b) Modify the terms c) Add additional clauses d) Change the legal description 104. Superior Liens do what? a) Take precedence over all other types of liens b) Are subordinate to other types of liens c) Are equal to other types of liens d) Are not enforceable 105. What is a judgment lien? a) Imposed when a party is entitled to collect damages awarded by a court b) Imposed when a party is entitled to collect damages awarded by an arbitrator c) Imposed when a party is entitled to collect damages awarded by a mediator d) Imposed when a party is entitled to collect damages awarded by a jury 106. How many square feet are in one acre? a) 40,000 b) 45,000 c) 42,000 d) 43,560 107. How many sections are in an acre? a) 36 b) 160 c) 320 d) 640 108. What does the term "meeting of the minds" mean? a) Mutual understanding b) Contract negotiation c) Offer and acceptance d) Legal agreement 109. For there to be true consideration in a contract, what must happen? a) Contract must be signed by both parties b) Contract must specify a sufficient consideration c) Contract must be notarized d) Contract must include a deposit 110. What must happen during the creation process of a contract, in order for it to be enforceable? a) Both parties must sign the contract b) The contract must be witnessed c) One party must accept, and the acceptance of the offer must be communicated d) The contract must be recorded 111. For an 'as is' contract, the seller must? a) Disclose all material defects, but are not required to fix them b) Fix all material defects before closing c) Provide a warranty for all defects d) Disclose only visible defects 112. As a licensee, what type of listing gives you the best protection to compensation? a) Open listing b) Exclusive agency listing c) Net listing d) Exclusive right of sale listing 113. What type of unilateral contract must specify length of time, price and terms? a) Lease agreement b) Purchase agreement c) Option contracts d) Listing agreement 114. The mortgagor is______, when the mortgagee is_______? a) Seller, buyer b) Buyer, lender c) Lender, buyer d) Buyer, seller 115. Since Florida is a lien theory state, what are grantees granted the day of closing? a) Possession b) Ownership c) Title insurance d) Deed 116. Evidence of debt is called what? a) Mortgage b) Deed c) Promissory note d) Title 117. When a grantee is considerably late on payments, what clause can the lender utilize? a) Acceleration clause b) Due-on-sale clause c) Prepayment penalty clause d) Escalation clause 118. What does the escalation clause do? a) Allows mortgagees to raise due to late payments b) Allows mortgagees to lower interest rates c) Allows mortgagees to change the loan term d) Allows mortgagees to transfer the loan 119. If the balance of the promissory note has not been paid in full of the proceeds of the sale, the lender cannot obtain a deficiency judgement for the unsatisfied amount. What does this refer to? a) Acceleration clause b) Due-on-sale clause c) Exculpatory clause d) Prepayment penalty clause 120. What type of loan has no legal recourse against the borrower for the unsatisfied portion of the loan in a foreclosed property? a) Exculpatory clause b) Due-on-sale clause c) Acceleration clause d) Prepayment penalty clause 121. If the borrower pays the entire balance of the debt plus any interest and costs that has accrued since the default, what can happen? a) Foreclosure b) Equity of redemption c) Deficiency judgment d) Acceleration 122. The effective yield rate is 5.75%, it will increase four points. What is the new rate? a) 6.25% b) 9.75% c) 5.95% d) 7.75% 123. The loan amount is $410,000 and the loan to value ratio is 75%. What is the purchasing price of the property? a) $546,666 b) $512,500 c) $410,000 d) $615,000 124. Which type of mortgage is insured? a) Conventional b) VA c) FHA d) USDA 125. For what loan is the lender reimbursed for losses including foreclosure? a) Conventional b) VA c) FHA d) USDA 126. In order to qualify for a VA Guaranteed loan, it must be? a) Your secondary residency b) Your investment property c) Your primary residency d) Your vacation homes 127. Which of the following is not on the primary loan market? a) Federal National Mortgage Association b) Commercial banks c) Savings and loan associations d) Credit unions 128. Which of the following is a triggering term? a) Fixed-rate mortgage b) Assumable mortgage c) Adjustable-rate mortgage d) Balloon payment 129. A property sold for $203,500, the new loan is $162,800. What is the stamp tax if the location is not in Dade? a) $1,424 b) $1,528 c) $1,218 d) $1,632 130. If a Broward County property sold for $402,750, what amount must be paid for the documentary stamp tax on the deed? a) $2,819.60 b) $3,022.50 c) $2,415.00 d) $2,013.75 131. 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? a) Principle of conformity b) Principle of progression c) Principle of substitution d) Principle of regression 132. 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? a) Economic obsolescence b) Physical deterioration c) Functional obsolescence d) External obsolescence 133. To qualify for the homestead tax exemption, property owners must file for the exemption between? a) January 1st and March 1st b) January 1st and April 1st c) December 1st and March 1st d) December 1st and April 1st 134. If property owners don't pay their property tax by ____, they become ____? a) March 1st, delinquent b) April 1st, delinquent c) May 1st, delinquent d) June 1st, delinquent 135. Which of the following is allowed in planned unit developments? a) Zero lot lines b) High-rise buildings c) Industrial zones d) Agricultural zones Answer Key 1. a) 2. c) 3. d) 4. b) 5. b) 6. b) 7. b) 8. b) 9. d) 10. c) 11. b) 12. b) 13. a) 14. b) 15. c) 16. d) 17. c) 18. b) 19. b) 20. b) 21. a) 22. d) 23. b) 24. b) 25. b) 26. d) 27. c) 28. b) 29. a) 30. b) 31. c) 32. d) 33. c) 34. c) 35. b) 36. c) 37. b) 38. d) 39. a) 40. b) 41. c) 42. c) 43. b) 44. b) 45. c) 46. a) 47. b) 48. c) 49. b) 50. b) 51. a) 52. b) 53. c) 54. b) 55. c) 56. c) 57. b) 58. b) 59. d) 60. b) 61. a) 62. c) 63. d) 64. c) 65. a) 66. c) 67. c) 68. b) 69. b) 70. b) 71. a) 72. b) 73. c) 74. d) 75. b) 76. b) 77. a) 78. b) 79. b) 80. b) 81. b) 82. b) 83. c) 84. a) 85. b) 86. c) 87. b) 88. c) 89. b) 90. c) 91. a) 92. b) 93. d) 94. a) 95. a) 96. a) 97. a) 98. a) 99. b) 100. a) 101. a) 102. a) 103. a) 104. a) 105. a) 106. d) 107. d) 108. c) 109. b) 110. c) 111. a) 112. d) 113. c) 114. b) 115. b) 116. c) 117. d) 118. a) 119. c) 120. a) 121. b) 122. d) 123. a) 124. c) 125. c) 126. c) 127. a) 128. b) 129. a) 130. a) 131. c) 132. c) 133. a) 134. b) 135. a)