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90 Cards in this Set
- Front
- Back
A developer purchased three small lots along a street targeted for widening. The developer paid $30,000 per lot. The developer combines the three small lots into one larger lot valued at $145,000. What is the appraisal term for the added value resulting from combining the small lots into one large lot? |
Plottage |
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A borrower does NOT have the right to cancel which loan contract within three business days? |
New 30-year mortgage to purchase a home |
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When completing a license application, the applicant must provide details in the background information section of the application regarding criminal convictions. Which statement is TRUE regarding completing this section? |
Applicants should attach details of cases, even if adjudication was withheld. |
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A seller places an ad in the local newspaper indicating that the seller will pay $10,000 to the first licensed real estate broker who finds a buyer for the seller's condo that results in a closed sale. Which type of contract is this? |
Unilateral |
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A buyer offered $225,000 for a seller's property. The seller countered at $250,000. The buyer did not accept the seller's counteroffer. The seller told her broker that she was revoking the counteroffer and accepting the buyer's original offer. Which statement is TRUE regarding this situation? |
The seller cannot now accept the original offer because it was killed by the counteroffer. |
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6. A sales associate received an earnest money deposit at 8:00 a.m. on Tuesday. The sales associate is required to deliver the deposit to the broker by the end of business on |
Wednesday. |
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Which expense may be deducted when calculating taxable income for an individual homeowner? |
Property taxes paid on a second residence |
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A benefit of investing in real estate does NOT include |
liquidity. |
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The loan-to-value ratio for a home purchased for $265,000 with a down payment of $66,250 is |
75%. |
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Which governmental power is used to acquire land for public use? |
Eminent domain |
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The direction opposite South 45 degrees West in a metes-and-bounds description is |
North 45 degrees East. |
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Which amount is used to compute the state documentary stamp tax on the deed? |
Total purchase price |
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How many acres are contained in the parcel described as the SW 1/4 of the SE 1/4 of the NW 1/4 of Section 15? |
10 |
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14. A strip of land that separates one land use from another is referred to as a(n) |
buffer zone. |
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A local lender charged 4 percent interest plus 3 points on a conventional mortgage loan. What was the approximate yield on the loan? |
4.375 percent |
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16. Which mortgage clause prevents a buyer from assuming an existing mortgage loan? |
Due-on-sale |
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Which type of legal description is used only where plat maps have been recorded in the public records? |
Lot and block |
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What action will be taken against a broker's license when a claim NOT associated with an escrow disbursement order is paid from the Real Estate Recovery Fund? |
Mandatory suspension of the license until the licensee has reimbursed the fund, including interest. |
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Which variable does NOT influence the supply of real estate? |
Mortgage credit |
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A lead-based paint disclosure must be given to |
tenants and buyers of all residential property built before 1978. |
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Which expense is NOT an operating expense in calculating net operating income (NOI)? |
Income tax |
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Which characteristic applies to assets exchanged in both business brokerage and real estate brokerage? |
Long-term liabilities |
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Which type of deed provides the grantor the best assurance of no future liability? |
Quitclaim |
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Which legal instrument contains the interest rate, loan amount, maturity date, and payment schedule? |
Note |
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A broker complied with an escrow disbursement order (EDO). Later, the buyer sued the broker and was awarded a judgment of $20,000. The buyer's attorney fees and courts costs totaled $4,500. The real estate broker's attorney's fees totaled $5,000. What is the maximum amount that can be paid from the Real Estate Recovery Fund as a result of the judgment? |
$29,500 |
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The overall capitalization rate (OAR) is determined by analyzing which two components of similar properties in the subject property's market area? |
Net operating income and sale price |
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Payment collection and record keeping associated with mortgage loans is referred to as |
servicing the mortgage. |
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A Baptist church owns a convalescent home for its members. The church only admits members of its church to the convalescent home. Which statement is TRUE regarding this practice? |
This is permissible under the Fair Housing Act. |
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What type of foundation is characterized by a crawl space below the structure? |
Pier |
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A licensed sales associate decides to have personalized key rings made. Which statement is TRUE regarding the key rings? |
The name of the real estate brokerage firm for which the associate works must be printed on the key rings. |
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31. The established useful asset life for nonresidential income-producing property under the IRS code is what number of years? |
39 |
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Which requirement is one of the elements of a valid real estate contract? |
Legal purpose |
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An escrow account may NOT be established in a |
stock brokerage company doing business in Florida. |
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Which type of value takes into consideration an individual's equity and income tax implications? |
Investment |
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Planning commissions commonly do NOT have the final authority to rule on |
zoning variances in residential areas. |
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Which statement regarding state intangible taxes on new mortgages is TRUE? |
The rate is two mills per dollar of debt. |
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Real estate licensees who specialize in the sale, purchase, or lease of businesses are referred to as |
business brokers. |
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What is 9.26 mills converted to the decimal form?
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.00926 |
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Which statement is TRUE regarding Florida's telemarketing law? |
Calls are restricted to the hours between 8:00 AM and 9:00 PM. |
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Which law requires lenders to provide borrowers with an estimate of settlement costs at the time of loan application or within three business days? |
Real Estate Settlement Procedures Act |
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The cost of materials and labor to produce ten $100 bills was found to be $8.97. The amount of goods and services that may be purchased with these ten $100 bills measures their |
exchange value. |
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Which contract would be considered a residential transaction under Florida Statute 475? |
Sale and purchase contract of a residential duplex |
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Which type of age is used to calculate depreciation in the cost-depreciation approach? |
Effective |
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44. Taking which action is an example of constructive notice? |
public notice through recording in the public records B. |
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The Florida Real Estate Commission (FREC) does NOT have the authority to impose which penalty? |
Restitution to the injured party |
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Which clause in the deed is a promise that the grantor owns the estate that is being conveyed? |
Seisin |
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The Florida Building Energy-Efficiency Rating Act does NOT require |
the seller, at the seller's expense, to conduct an energy-efficiency rating of the structure prior to closing. |
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A married couple is interested in purchasing residential investment property. The couple has informed their sales associate that they want the brokerage company to represent their interests as a fiduciary in all negotiations. Which brokerage relationship disclosure must be given to this couple? |
Single agent notice |
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A sales associate received a citation and $100 fine for failure to notify the Division of Real Estate of a change of mailing address. The citation was issued in error. What should the sales associate do? |
File a written objection within 30 days explaining that the citation was issued in error. |
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Tax advantages of owning a home do NOT include |
deduction of hazard insurance expense on a principal residence. |
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51. A township has 36 parcels called "sections." Section 36 would be located in which corner? |
Southeast |
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Which statement is TRUE regarding an amortized mortgage? |
The amount applied to interest decreases each month |
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A couple are interested in purchasing residential investment property and they have informed their sales associate that they want limited representation but do not want to be legally held responsible for the acts of a licensee. Which brokerage relationship is best suited to this couple? |
Transaction broker |
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Within how many days is the landlord required to notify tenants if the landlord intends to impose a claim on the deposit? |
30 |
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Which statement concerning Department of Veterans Affairs (VA) mortgage loans is FALSE? |
The government charges veterans a mortgage insurance premium. |
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Which statement concerning Florida Real Estate Commission (FREC) qualifications is FALSE? |
One member must be an active sales associate who has held that status for at least three years. |
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A broker's license was revoked. The licenses of the sales associates registered with the broker will become |
involuntary inactive. |
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A widower is a non-veteran who is 10 percent disabled. The assessed value of his condo is $49,875. What is the total property tax exemption he can claim on his homesteaded property? |
$25,500 |
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59. The covenant of further assurance is included in which type of statutory deed? |
General warranty deed |
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What legal document allows a purchaser of a cooperative to occupy a particular unit?
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Proprietary lease |
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Which item is entered on the closing statement as a credit to the seller? |
Total purchase price |
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A real estate license application received by the DBPR expires after what period of time? |
Two years |
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Which individual is exempt from real estate licensure? |
Owner of a time-share period who offers the time-share period for resale. |
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A developer advertises homes for sale with a total down payment of $2,000. A qualified buyer offers to pay the $2,000 down, but the developer states that the $2,000 down homes are all sold. Is this transaction covered under Truth in Lending Act? |
Yes, because this is an example of bait-and-switch advertising and it is illegal. |
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Which document must a prospective buyer of an existing (resale) condominium unit receive? |
Year-end financial information that the condo association provided to the owners the previous year |
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Abby, Bob, and Cathy were co-owners of a parcel of real property. Abby died and her ownership passed, according to her will, to her surviving spouse. Abby was a
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tenant in common. |
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A parcel of real estate has been left to a spouse through her husband's will for the wife's use and enjoyment during her lifetime, with the provision that the property goes to the wife's stepson at her death. What interest does the stepson hold? |
Remainder estate |
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A roof design that incorporates an overhang on all sides is called |
hip. |
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Which requirement must a deed contain in order to be valid? |
The properly witnessed signature of the grantor |
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Which action by the Fed will reduce the supply of money in circulation? |
Increasing the reserve requirement |
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A sales associate listed a condo in Oak Glen for $205,000. A sales associate from a competing office called the listing associate to inform him of a verbal offer of $190,000 on the Oak Glen property. The listing associate did not present the verbal offer. Which statement applies to this situation? |
The listing associate was required to present the verbal offer to the seller. |
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Placement of the windows is most important on which type of lot if the homeowner is concerned about the possibility of vehicular headlights shining into the front windows? |
T-intersection |
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An owner of an apartment complex pays $50 to each tenant that refers a person who becomes a tenant. This arrangement is |
legal under Chapter 475, Florida Statutes. |
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When a consumer files a complaint against a real estate licensee that contains facts indicating that a violation of rules of the Florida Real Estate Commission has occurred, the complaint is said to be |
legally sufficient. |
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75. Which action associated with water rights will cause a decrease in land mass? |
Erosion |
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A contractor purchased twelve boxes of ceramic tile from the local tile supply company. What type of property is the ceramic tile before it is installed? |
Personal property |
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Which statement is FALSE regarding a notice of noncompliance? |
It is a type of discipline imposed by the Florida Real Estate Commission. |
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78. Right of survivorship is contained in which tenancy? |
Joint |
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A Florida-licensed attorney is exempt from what education requirement? |
Sales associate prelicense course |
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80. Which business organization may NOT register as a real estate broker? |
Business trust |
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A group license |
allows a sales associate or broker associate employed by an owner-developer to sell property for all the affiliated entities owned by the developer. |
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Which deficiency would be classified as external obsolescence? |
Road dust and traffic noise prevents opening the windows on cool mornings |
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83. A prospective purchaser of a residential property sends written notification to the listing broker documenting that she has been unable to secure financing according to the terms of the agreement and requests return of the earnest money deposit. The seller instructs the broker to retain the earnest money deposit as liquidated damages. |
return the deposit to the buyer. |
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84. Which instrument is usually recorded? |
Promissory note |
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All national chartered commercial banks are members of which entity? |
Federal Reserve System |
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Part IV of Florida Statute 475 pertains to |
liens associated with brokerage agreements to lease commercial units.
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A seller lists his property with a brokerage company. However, the seller reserves the right to NOT pay a commission if he sells the property. What type of listing is this? |
Exclusive-agency |
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What is the statute of limitations for written contracts? |
5 years A. |
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The Florida Real Estate Commission's authority to determine license law violations is which type of power? |
The Florida Real Estate Commission's authority to determine license law violations is which type of power? |
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Which document would be used to prevent future land owners of a particular parcel of land from selling firearms on the site? |
Deed restrictions |