Practice Test for Florida Real Estate Principles, Practices & Law

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Practice Test (English)

1 / 100

Which type of business organization may NOT be licensed as a real estate broker?

2 / 100

Can an insurance company refuse to provide insurance coverage to applicants within a particular neighborhood because of the racial and ethnic characteristics of the neighborhood?

3 / 100

Which statement concerning sections is FALSE?

4 / 100

Which property is immune from property taxes?

5 / 100

You are appraising a four-year-old, single-family residence. The main dwelling is 60 feet by 45 feet. The garage is 24 feet by 19 feet. According to figures obtained from a cost-estimating service, the base construction cost per square foot of main dwelling is $102 and $91 per square foot for the garage. Calculate the reproduction cost new of the structure.

6 / 100

How is the earnest money deposit entered on the closing statement?

7 / 100

sA tenant signs a six-month rental agreement. The owner of the rental unit hires a property manager to collect rent and oversee the unit's maintenance. Who holds a leasehold estate in the rental unit?

8 / 100

A homesteaded property is located in Orlando, Florida, in Orange County. The city tax rate is 8.1 mills, the county tax rate is 9.3 mills, and the school district tax rate is 6 mills. The homeowner is blind and has qualified for homestead exemption. The home has been assessed at $195,000. What must the homeowner pay in property taxes?

9 / 100

A real estate broker acts as agent for a property owner and collects and holds the rental security deposits. The broker must

10 / 100

Mark Smith is preparing to open a real estate office. He has registered the trade name Fast Sales. He has two sales associates, Betty Able and John Stone. What information is NOT required to be included on the brokerage entrance sign?

11 / 100

The statute of limitations for a parol contract is for how many years?

12 / 100

Compliance with the Florida Building Code is enforced by

13 / 100

An appraiser has assigned the following weights to three adjusted sale prices: Comparable 1: $330,500 40% weight Comparable 2: $325,500 35% weight Comparable 3: $316,900 25% weight What is the reconciled estimated market value of the subject property?

14 / 100

A duplex is scheduled to close on September 10. On the first of the month, the seller collected total rent for September amounting to $950. According to the contract for sale and purchase, the buyer is due the rental income for the day of closing. Use the actual number of days in the closing month. Calculate the proration and indicate who is debited and who is credited.

15 / 100

A lead-based paint disclosure must be given to

16 / 100

The interest on an assumed mortgage is entered on the closing statement as a

17 / 100

A group license

18 / 100

The brokerage relationship disclosure requirements in Chapter 475 apply to which transaction?

19 / 100

Closing date is May 8. The buyer is assuming the sellerÔÇÖs mortgage loan that has a principal balance of $225,000 at 4┬Ż% interest. The day of closing is charged to the buyer. What is the proration and how is it entered on the settlement statement?

20 / 100

Which expense is deducted to derive effective gross income?

21 / 100

The Florida Real Estate Recovery Fund

22 / 100

The street in front of your house is to be paved at a cost of $45 per foot. The city has agreed to pay 25 percent of the paving cost and will assess abutting properties for the remainder. If your lot frontage on the street is 90 feet, what is your portion of the special assessment?

23 / 100

A broker followed the instructions in an escrow disbursement order. However, one of the parties to the contract sued the broker and a judgment was filed against the broker that resulted in $8,000 in money damages plus $3,500 in court costs. The broker incurred $4,500 in attorney's fees associated with his defense. The FREC is authorized to disburse what amount associated with this case?

24 / 100

A residential real estate investment property is purchased for $300,000 with the land valued at $70,000. Based on the IRS straight-line method depreciation deduction which calculation is correct?

25 / 100

In which area should real estate professionals NOT provide expert information?

26 / 100

On which brokerage relationship disclosure form must a licensee secure the buyer's or seller's signature before implementation?

27 / 100

Which requirement is one of the elements of a valid real estate contract?

28 / 100

Which remedy for breach of contract requests that the courts award damages for the extent of loss suffered?

29 / 100

Which lien is an example of a specific lien?

30 / 100

An administrative complaint is issued against a broker for failure to properly maintain his escrow account. The attorneys for the DRE and the broker's attorney reach an agreement as to the penalty for the license law violation. This agreement is referred to as

31 / 100

Which type of value is associated with a rapid sale?

32 / 100

The N 1/2 of the SE 1/4 of the SW 1/4 and the NE 1/4 of the SW 1/4 of Section 19 contains how many acres?

33 / 100

Which variable influences the demand for real estate?

34 / 100

A rental property has an annual income of $200,000 and operating expenses of $211,000. Which statement is TRUE regarding this property?

35 / 100

Which legal instrument contains the interest rate, loan amount, maturity date, and payment schedule?

36 / 100

If the Federal Reserve votes to raise the discount rate, how will this likely affect interest rates on short-term credit?

37 / 100

The law that protects individuals from age discrimination when applying for mortgage credit is

38 / 100

The calculated interest rate of an adjustable rate mortgage is calculated by adding

39 / 100

A residential zoning category requires at least 7,500 square feet per lot. The developer is reserving 30% of the land to streets, sidewalks, a park and a community center. The tract of land for development consists of 120 acres. How many residential lots are available for development?

40 / 100

Which instrument is used to transfer ownership of a mortgage from one company or individual to another?

41 / 100

The appropriate type of brokerage relationship is determined by the

42 / 100

A buyer did NOT receive a Homeowner Association Disclosure at the time of entering into a sale and purchase agreement with the seller. The sale and purchase agreement is which type of contract?

43 / 100

A contract classification that a court of law will uphold refers to which type of contract?

44 / 100

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?

45 / 100

Which characteristic applies to assets exchanged in both business brokerage and real estate brokerage?

46 / 100

A seller places an ad in the local newspaper stating 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?

47 / 100

A broker received conflicting demands from the buyer and the seller for the earnest money deposit. Ten business days later the broker notified the Florida Real Estate Commission of the conflict. How many business days does the broker have remaining to implement a settlement procedure?

48 / 100

An individual who has earned a four-year degree in real estate is NOT exempt from which education requirement?

49 / 100

Tax advantages of owning a home do NOT include

50 / 100

Which individual is exempt from real estate licensure?

51 / 100

A sales associate moves from Jacksonville, Florida, to Atlanta, Georgia. The associate continues to be employed by the same broker, who has an office in Atlanta. Which statement is TRUE?

52 / 100

The direction opposite South 20 degrees West in a metes-and-bounds description is

53 / 100

A lender quotes a mortgage loan of $275,000 at 4┬Ż% interest. The monthly payment is $1,393.38. How much of the second monthly payment will apply to the principal reduction?

54 / 100

The mortgagee's title insurance policy

55 / 100

A building rents for $22 per square foot with an index of 1.5. The index increases to 1.8. What is the adjusted rental rate?

56 / 100

A commercial tenant pays a fixed rent each month. The landlord pays the property taxes, hazard insurance, and maintenance expenses. The tenant has what type of lease?

57 / 100

Which document must a prospective buyer of an existing (resale) condominium unit receive?

58 / 100

The constitutional homestead law protects real property from forced sale to satisfy which type of delinquent debt?

59 / 100

The brokers of three independent brokerage companies decide to lower their commission rates to 3% for 4 months in hopes of gaining market share from their competitors. This illegal scheme is referred to as

60 / 100

What is the state's intangible tax on a new mortgage of $10,000?

61 / 100

When itemizing deductions, an individual homeowner may deduct which expense?

62 / 100

What section is directly north of section 23 in a given township?

63 / 100

When the zoning code causes an undue hardship on a property owner, the zoning board of adjustment is authorized to issue a

64 / 100

The Fair Housing Act of 1968 and its amendments prohibit advertising that discriminates against individuals based on

65 / 100

A sales associate receives a deposit from a buyer on Wednesday morning. The associate must

66 / 100

Which mortgage clause prevents a buyer from assuming an existing mortgage loan?

67 / 100

An arbitration program for homeowner associations is provided by which division of Florida government?

68 / 100

An unlicensed personal assistant may NOT perform which activity?

69 / 100

The DBPR secretary is

70 / 100

Which statement regarding a real estate brokerage limited partnership is TRUE?

71 / 100

Which deficiency would be classified as functional obsolescence?

72 / 100

FREC rules define a resident of Florida as a person who?

73 / 100

A broker's listing agreement specifies that 5 ┬Ż percent commission is to be paid on the sale price. The sales associate for the firm lists and sells the property and is to receive 55 percent of the total sale commission. How much will the sales associate earn if she sells the property for $369,000?

74 / 100

A real estate broker received a citation and a $200 fine. The citation was issued in error. What should the broker do?

75 / 100

Right of survivorship is contained in which tenancy?

76 / 100

Taking which action is an example of constructive notice?

77 / 100

A contract has been formed between parties, however, something remains to be completed by one or both parties to fulfill the conditions of the contract. Which type of contract classification applies?

78 / 100

An active-duty U.S. Air Force officer is stationed in Florida. The officer's spouse has a valid New York real estate license. The New York licensee relocates to Florida to be with her spouse. Which statement is TRUE?

79 / 100

Which mortgage provision allows another mortgage created at a later date to take priority?

80 / 100

The subject property has a pool; the comparable property which sold for $253,500 has no pool (rated as a price differential of $21,500). The appraisal adjustment should be a

81 / 100

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?

82 / 100

The first step in protesting the assessed value of real property is to

83 / 100

Which valuation product requires the services of a licensed or certified appraiser?

84 / 100

Unlicensed practice of real estate for compensation is which type of violation?

85 / 100

Which section of the deed includes the date of execution?

86 / 100

Which statement is TRUE regarding VA loans?

87 / 100

Which statement concerning tenant security deposits on residential leases is TRUE?

88 / 100

Planning commissions commonly do NOT have the final authority to rule on

89 / 100

Which item would most likely be classified as a fixture once incorporated into real property?

90 / 100

Real property conveyed by the instruction of a will is called

91 / 100

Which government-owned entity guarantees mortgage-backed securities that carry the full faith and credit guarantee of the US government?

92 / 100

A local lender charged 4% interest plus 3 points on a conventional mortgage loan. What was the approximate yield on the loan?

93 / 100

The economic characteristic that refers to people's preference for a certain location is called

94 / 100

A written contract for sale and purchase of commercial property that utilized designated sales associates failed to close. Is the broker required to retain the brokerage relationship disclosure documents, and if so, for how long?

95 / 100

Which statement is TRUE regarding Florida's telemarketing law?

96 / 100

The three real estate license categories does NOT include which category of license?

97 / 100

Developers of 25 or more lots must provide buyers with which document prior to signing the sale contract?

98 / 100

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

99 / 100

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?

100 / 100

Which statement is FALSE concerning federally related transactions?

The average score is 55%

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