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Florida Real Estate
| Question | Answer |
|---|---|
| When must a written No Brokerage Relationship Notice be provided | Before showing homes that are listed |
| Which cannot be used by the Federal Reserve to change or control money supply? | Alter income tax rates |
| A broker has exclusive right of sale listing to sell an owner's property, with no other authority granted. What type of agency does the broker have with the principal? | Special Agency |
| A judgement is awarded against a licensee for $100k. What is the maximum the complainant may be compensated from the Real Estate Recovery Fund? | 50% |
| What term is applied to the practice of keeping low-income people out of a particular neighborhood? | Exclusionary zoning |
| A transaction broker | Owes limited confidentiality to both parties |
| What is maximum recovery possible from Real Estate Recovery Fund that results in a single judgement as a result of this fraudulent activity? | $50,000 |
| Statutory right of redemption | Some states allow the party that was foreclosed the right to redeem the property following foreclosure. |
| How are expenses entered on in a closing statement? | Always as debit entries |
| Closing statement purpose | Summarize and simplify transaction |
| What is an acknowledgement of a deed? | It can be taken by an officer of the state |
| What actions could Federal Reserve Board do to create increase in interest rates? | ð°Sell government securities ⤴ reserve requirement ⤴ discount rate |
| Planned Unit Development (PUD): | A type of zoning that permits flexibility from rigid zoning standards |
| Who determines the rates for documentary stamps? | State law |
| The difference between current market value of property and amount owner still owes on the mortgage | Equity |
| Who determines the form for the closing statement? | Closing agent |
| When may equity of redemption be exercised? | Until the time of foreclosure |
| Type of planning study that deals with local business activity | Economic base analysis |
| A broker may NOT deposit into escrow | Personal funds in excess of FREC limit |
| 1988 Fair Housing Amendment Act expanded on the Civil Rights Act of 1968 to include banning discrimination on the basis of what? | Handicap |
| The monthly payment under FHA 203 (b) does NOT include: | PMI |
| To whom is original judgment assigned when money is to be paid from the Real Estate Recovery Fund? | FREC (Florida Real Estate Commission) |
| What municipal ordinances specify the standards for altering, remodeling and new construction? | Building codes |
| Who orders a summary suspension? | The secretary of the department of Business and Professional Regulations |
| What are the Federal Reserve actions taken to affect interest rates? | Monetary policy |
| Parties involved in a deed of trustð¸ | 1.Beneficiary 2.Trustee 3.Trustor |
| Type of valuation typically requested to determine the selling price of a property in a short sale transaction? | Broker price opinion (BPO) |
| First step in an appraisal: | Define the problem |
| A property has 3 bedrooms, the comparable property has 4 bedrooms. A bedroom is worth $5,000. What is correct adjustment? | Subtract $5,000 from the comparable property |
| A relatively new 4 bedroom home with 1 bathroom is an example of: | Functional obsolescence |
| One example of external obsolescence | Freeway constructed adjacent to a lot |
| Type of depreciation that cannot be recovered: | Incurable |
| Depreciation or obsolescence that results from ordinary wear and tear: | Physical depreciation |
| Document used to return title to the trustor when a deed of trust is satisfied: | Reconveyance deed |
| An appraiser who estimates the value of a 3 yr old home in a rural area be most concerned about: | Physical depreciation |
| Appraisal principal states that homes in a neighborhood of similar homes should have similar value:ð ð ð | Conformity |
| Effect on present value when net income increases ð | Increases |
| To avoid undue hardship imposed by zoning regulations a property owner may request: | A variance |
| Prior to an offer, who does earnest money belong to? | Buyer only |
| When a seller takes back a second mortgage, how is it entered on a closing statement? | Debit to seller |
| Leverage is used with expectation of:⤴$ | Increasing yield on an investment by using borrowed money |
| Which party normally pays for the documentary stamp on the deed? | The seller |
| Government enforces zoning regulations:ð®ð®ð® | Police power |
| Freddie Mac stands for: | Federal Home Loan Mortgage Corporation |
| When the mortgage fulfills all obligations under the note, what clause protects his rights to the property? | Defeasance |
| A two party arrangement that uses the property as security, and creates a lien on the property that may be removed by foreclosure: | Mortgage |
| Equal items: | 1/36 = township section |
| What is deducted from potential gross income to calculate effective gross income when performing direct capitalization with the income approach to appraising: | Vacancy and collection loss |
| Maximum amount of a VA guaranteed loan? | No maximum |
| When a mortgage is paid in full, which document should be delivered To THE mortgagor? | Letter of Satisfaction |
| Real Estate physically is | Immobile |
| Purpose of an estoppel certificate? | Provide information to the mortgage or mortgagor |
| In which federally designated floodplain is elevated construction mandatory for residential properties: | V zone |
| An owner promises to give a listing to only one broker, settimg forth the price, terms, time, and commission, butnreserves right to sell the property without paying any commission. This listing is: | Exclusive |
| Disciplinary action DBPR (Department of Business and Professional Regulation) IMPOSE For a violation of F.S.475 | Citation |
| Type of listing that best protects the broker: | Exclusive right of sale |
| The only warrant found in a bargain and sale deed: | Seisin |
| What background questions does NOT need to be answered on application for sales associate: | |
| Minor traffic violations | |
| If the current phase of the business cycle is expansion, what is the correct order of the next phases in the cycle? | Peak Contraction Trough |
| Jones sells a parcel of property to Mason who leases property to Jones. This is called: | Sale-leaseback |
| Valuable consideration | Is a requirement of all contracts |
| If a broker Is THE escrow agent and a dispute arises concerning the disposition of escrowed funds, what should be the next step: | Notify FREC (Florida Real Estate Commission) |
| What does an encumbrance affect? | Title |
| Which term refers to criminal conduct on the part of a licensee that is considered contrary to the standards of justice, honesty good morals: | Moral turpitude |
| If no clause appears in a contract concerning damages, what are any damages awarded as a result of a breach of contract? | Unliquidated |
| How many acres are contained in 1/36 of a township? | 640 |
| To help prevent fraudulent documents from being placed in the public records, the documents are: | acknowledged by an officer of the state |
| A licensee who has appealed a decision by the FREC regarding a disciplinary decision may have his or her license privileges restored by | The administrative law judge |
| General warranty deeds: | The grantor will defend against all lawful claims |
| Who may the Department of Business and Professional Regulation subpoena? | Anyone thought to have information or evidence pertinent to an investigation |
| What is most comprehensive form of real property ownership?ð | Fee simple estate |
| Following expiration of their licenses, Sales Associates may: | Collect a commission they legally earned before the expiration date. |
| If you begin at a point and go north 90' East, in what direction would you be travelling? | East |
| A listing contract would not terminate as the result of | Abandonment by the seller |
| What is the legal instrument that includes the borrower's promise to repay a loan with interest according to the terms and conditions speficied? | Promissory note |
| What is required to create a joint tenancy? â³ | The four unities P = possession I = interest T = time T = title |
| If a seller revoked an exclusive right of sale without cause and then sold the property to a neighbor, which statement would be true? | The broker is due a sales commission based on the sales price |
| If a sales associate is entitled to 60% of all commissions earned, and sells a property for $64,000 with a 7% commissioner to the broker, how much should the broker pay the sales associate? | $2688 $64,000 c. 07 = $4,480. Sales associate share = $4,480. X. 60 = $2,688. |
| County taxes are 6 mills, city taxes are 8 mills, and school board taxes are 7 mills..if a homestead property is assessed at $110,000 What are annual taxes? | $1435 $110,000 x. 021 = $2,310 |
| If interest is 12%, 3 months =$135, what is principal amount? | $4,500. I = Principal x Rate x time P = I ÷ (rate x time) P = $135 ÷ (.12 x 3/12) = $135 ÷ .03 = $4,500. |
| Taxes for the year were $12,800. Closing is March 17th, and the seller has agreed to be responsible For All charges on the day of closing. Using the 365 day method, how would this proration appear on the closing statement? | Debit seller $2665.21 Credit buyer $2665.21 #days of seller ownership = 31 (Jan) + 28 (Feb) + 17 (March) = 76 days. Tax owed by seller =.($12,800 ÷ 365) x 76 days = $2,665.21 |
| What is principal balance of a $50,000 mortgage at 12% interest after two monthly payments of $514.31? | |
| $49,971.24 Month 1 int.:$50,000 x .12 ÷12= $500 Principal $514.31- $500 = $14.31 New bal.after 1 mo. $50,000 - $14.31 = $49,985.69 Month 2 int.$49.985 x .12 ÷12=$499.86 Principal $514.31 - $499.86 = $14.45 New balance after month 2: | |
| A property measures 120' x 300' sold for $38,500. What was the price per square foot? | $1.07 120' x 300' = 36,000 square ft Price per square ft = $38,500 ÷36,000 = $1.07 |
| A developer purchased a tract of land for $100,000, subdivided the parcel into 3 lots, and sold the lots for $50,000 each. What was the developer's profit on investment? | 50% Selling price - purchase price $50,000 x 3 lots - $100,000 = $50,000 Profit = Made ÷ paid = $50,000 ÷ $100,000 = .50 or 50% |
| If a property's effective gross income is $44,000, operating expenses are $26,000, and the capitalization rate is 10%, What Is is the value of the property? | $180,000 EGI = Effective Gross Income OE = Operating Expenses NOI = Net Operating Expenses EGI - OE = NOI $44,000 - $26,000 = $18,000 $18,000 ÷ .10 = $180,000 |
| If property equals $120,000 operating expenses are $45,000, and the net operating income is $15,000, What is the capitalization rate? | 12.50% Capitalization rate (R) = NOI ÷ VALUE R= $15,000 ÷ $120,000 = 0.125 or 12.5 |
| If a lender charges 4 points on a loan with an interest rate of 11%, what would be the approximate yield. | |
| R = NOI + VALUE R = $15,000 + $120,000 =.125 or 12.5% |
Created by:
Signlegs