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Which of the following statements is true regarding a mortgage loan originator (MLO)?
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A real estate appraiser's fee for professional services is based on which of the following?
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Florida RE Exam
Law Exam
| Question | Answer |
|---|---|
| Which of the following statements is true regarding a mortgage loan originator (MLO)? | MLO must have a separate license |
| A real estate appraiser's fee for professional services is based on which of the following? | The time and difficulty of the appraisal |
| Which of the following best describes the real estate brokerage business? | Service business |
| All of the following are responsibilities of a property manager,, EXCEPT | Preparing leases |
| What does the term "farming" refer to in real estate? | Specializing in one geographic area |
| Which insurance policies can a real estate licensee offer to the public without additional state licensing? | None |
| What is the purpose of the National Association of REALTORS? | Preserve the right of individuals to own real property through an exchange of information |
| What does the designation of REALTOR® signafy? | The designation identifies the real estate professional as a member of the NAR |
| A developer contracts to build a home according to the buyer's specifications. This is an example of which type of building? | custom |
| Which of the following best describes licensees who are involved in business brokerage? | The must be able to analyze financial statements and understand balance sheets |
| Real estate licensees are required to be knowledgeable in all of the following areas, EXCEPT | accounting |
| Which service provided by real estate licensees requires the most experience and knowledge? | counseling |
| An appraiser who is registered, licensed, or certified under FS 475, Part II, must be utilized in which of the following? | Federally-related transactions |
| When a developer completes construction of a new subdivision, all streets, electric, water, and sewer installation are finished and deeded to the city or county. What is this process called? | Dedication |
| Which of the following assignments would be acceptable for a FL RE licensee who does not represent themselves as an appraiser, and follows the Uniform Standards of Professional Appraisal Practice | To give an estimate of value for an attorney in a divorce case |
| The FL REC was first created in what year | 1925 |
| A sales associate failed to complete the required post-license education prior to their renewal deadline. What is the status of the sales associate's license? | void |
| Which statement correctly applies to an actively licensed attorney who is a member in good standing with the FL bar? | The attorney is exempt from biennial 14 hour continuing education requirements to maintain a real estate license |
| What is a broker associate? | A broker who is employed as a sales associate |
| Which statement is correct concerning an applicant whose real estate application was denied by the Department of Business and Professional Regulation? | The applicant must be notified in writing of the reason for the denial and advised of the right to request a formal hearing |
| A licensed sales associate wishes to work for Broker A during the week, and works in a different town with Broker B on the weekend. Which statement best describes this situation? | This is a violation of FS 475 |
| An active FL licensee decides to move to North Carolina, but wishes to keep her FL license active and continue to practice real estate in FL. Which of the following best describes this situation? | The licensee must notify the Department of her change of address, and continue to comply with all Florida regulations |
| Which of the following statements is correct regarding a broker's authority to act on behalf of the principal? | A broker must follow all legal instructions of the principal or withdraw |
| Broker Tom sold a property which was listed with broker Alice. Tom was unable to attend the closing, so Alice collected the entire commission. Alice refused to pay Tom his share of the commission. What could Alice be charged with? | Failure to account |
| Which brokerage relationship status includes a full fiduciary relationship? | Single Agency |
| Six individuals decide to form a real estate brokerage partnership. All 6 individuals are planning to be active in real estate sales. Which statement best applies? | The partnership must be registered with the Commission, and all six partners must be active real estate brokers. |
| All of the following business formations can register to conduct real estate transactions, EXCEPT: | Corporation sole |
| A real estate brokerage firm advertises a listed property. Which requirement is correct? | The name of the brokerage must be included in the ad |
| A buyer drops off an escrow check on Tuesday. To avoid any trouble with FREC, the broker must deposit the check by close of business on which day? | Friday |
| There is a dispute over an escrow deposit. The parties agree to have a 3rd party hear both sides and make the final decision. What settlement (escape) procedure is being used to settle the dispute? | Arbitration |
| What is the purpose of the FREC disciplinary guidelines | To give licensees notice of the range of penalties that normally will be imposed for violation of a law or rule |
| The range of penalties that may be imposed on a licensee by the Commission for violation of law or rules includes which of the following? | Denial, reprimand, find, probation, suspension, and revocation |
| What must an unlicensed individual do when ordered to appear before the DBPR? | Appear |
| When asked about the size of a home, the sales associate quoted the home as containing 5,300 square feet of living area. In reality the home was only 4,300 sq ft. This is an example of which fradulent activity? | Misrepresentation |
| Buyer has agreed to purchase seller's home. Contract calls for deposit of 10k Sales assoc forgets to collect. Sale falls through & seller is claiming uncollected deposit as liquidated damages. What will sales assoc likely be charged with? | Culpable negligence |
| Complete the statement. To be enforceable, a lease longer than one year | Must be in writing, signed by the landlord and witnessed by two persons |
| Under FL Residential Landlord and Tenant Act, a landlord is required to do all of the following, EXCEPT: | Deposit advance rent and security deposits in an interest-bearing account |
| A 5 yr lease of a 10k sq ft warehouse prohibits assignment. After 2 yrs tenant is unable to cont w/ full pymnts & arranges w/ another tenant to take over 1/2 of space & pay 1/2 of rent. What is this arrangement called? | sublease |
| What is the maximum fine that may be imposed for a first time violation of the FL fair housing act | $10,000 |
| All of the following are correct regarding the Americans With Disabilities Act except? | Owners must make all accessibility modifications with no regard to the cost of improvement |
| Often a commercial lease requires the tenant to pay the rent, plus also separately pay taxes, insurance, and maintenance. This is known as a | Net Lease |
| All of the following estates include legal title to real property, EXCEPT | Tenancy for years |
| What does the bundle of rights in real property include? | Disposition, use, and exclusion |
| Four partners purchase a property together, at the same time, and on the same deed, without the right of survivorship. What type of estate have they formed? | Tenancy in common |
| What is the purpose of the FL homestead protection? | Provide protection of the Homestead property from the debts of an improvident breadwinner |
| A husband and wife purchase a home together, at the same time, on the same deed. What type of tenancy has been formed? | Tenancy by the Entireties |
| Which instrument transfers title from one individual to another? | Deed |
| What does the term title refer to in real estate? | Ownership |
| Which clause in a deed states the interest that is being conveyed? | Habendum |
| Which of the following is required to obtain title by adverse possession? | Notorious, open, hostile, adverse and exclusive possession of the property for seven or more consecutive years |
| What type of lease, that is often a commercial lease, requires the tenant to pay the rent, plus also separately pay taxes, insurance and maintenance? | Net Lease |
| Which condition correctly describes the requirement for a lease longer than one year to be enforceable | It is in writing, signed by the landlord, and witnessed by two persons |
| Which of the following best describes a contract? | Legally binding |
| What is the term used to describe the party who receives an offer? | Offeree |
| Which of the following establishes the time period for enforcement of a contract? | Statute of Limitations |
| A buyer negotiates a contract to purchase property, takes possession & pays the property purchase price installments, but does not receive legal title until full price has been paid. What is this agreement called? | An installment contract, contract for deed or land contract |
| What is the term used to describe the consideration given by a buyer to indicate serious intent to buy a property? | An earnest money deposit |
| Which document is a real estate broker NOT legally allowed to prepare? | Lease |
| When the court determines that a contract existed due to the actions of the parties, the contract is referred to as: | an implied contract |
| Complete the statement. An option contract is a unilateral contract, binding upon the | optionor |
| Which of the following list of actions contain ways that a contract could be terminated? | Breach, Performance, or Lapse of time |
| Which legal instrument evidences the debt and states the interest rate, term, payment requirement, and other information related to the loan? | Promissory note |
| What is the function of a mortgage? | It secures the repayment of the debt |
| When financing the purchase of real estate, which is the role of the mortgagor? | The mortgagor give a mortgage to a mortgagee |
| Which clause in a mortgage requires the lender to acknowledge performance by the borrower? | Defeasance |
| What is the purpose of a receivership clause in a mortgage? | It is used to protect the value of property during the foreclosure process |
| A borrower has applied for a loan. The purchase price of the property is $280k. If the borrower has $70k as a down payment what is the LTV ratio? | 75% |
| Where would information such as the loan amount, interest rate, term of the loan, and responsible parties be found? | Promissory note |
| Which statement best describes a short sale? | A settlement agreement where the lender agrees to a sales price that is below the outstanding loan balance. |
| Prior to deregulation of the banking industry in the 1980s, which institutions were dominant in providing funds for the purchase of single-family residences? | Saving associations |
| What will be the effect if the Federal Reserve Board decides to purchase government securities in the open market? | The money supply will increase and the interest rates will decrease |
| Interest rates from Federal Housing Administration mortgages are determined by which of the following | The market |
| What is the purpose of the closing statement? | To summarize the financial aspects of a real estate transaction |
| What document stipulates which party pays which expense in closing? | Purchase and sale contract |
| Complete the statement. When determining prorations on a closing statement, the day of closing: | is determined by agreement |
| If a Broward County property sold for $102,750 what must be paid for the documentary stamp tax on the deed? | $719.60 |
| Which of the following statements regarding abstract continuation and title insurance in a real estate closing is correct? | The seller can provide either an abstract of title or title insurance as evidence of merchantable or marketable title |
| Which tax will not be required in a transaction where the purchaser assumes an existing mortgage? | Intangible Tax |
| Which of the following best describes the free enterprise system? | A market system |
| How does the real estate market react to shifts in consumer demand? | Slowly |
| In which condition does market equilibrium theoretically exist? | When supply and demand are in balance |
| Which of the following might be indicated if a neighborhood appears to have an abundance of "FOR SALE" signes and an unusually high number of rentals available? | Decline in the neighborhood may be indicated |
| What type of value does an appraiser most commonly estimate? | Market |
| All of the following methods may be used to estimate replacement/reproduction cost, EXCEPT | Economic age-life |
| Why is the process of real estate investment analysis important to an investor? | It helps an investor select properties that meet personal objectives |
| What type of risk is caused by changes in general business conditions? | Dynamic |
| Which document most closely resembles a deed | Bill of Sale |
| To which organization is real estate tax most important? | Local government |
| How is 10 mills expressed as a decimal? | 0.01 |
| Homeowners who file itemized tax returns are allowed deductions for which of the following items? | Real estate taxes and mortgage interest |
| What is the rationale behind government planning of real estate development? | To manage future real estate growth |
| Which of the following would not be a typical use of physiographic study in preparing a comprehensive city plan? | Anticipating the future need for new or widened roads |
| Which standard or process establishes the minimum standards for design and construction of buildings or structures? | Building codes |
| How are local planning boards selected | by appointment |
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mmonta