Term
|
Definition
|
|
Term
| Agricultural properties are limited in assessed value as a result of |
|
Definition
|
|
Term
| Market Equilibrium is said to exist when |
|
Definition
| supply and demand are in balance |
|
|
Term
| The document that stipulates which party pays which expense in a closing is the |
|
Definition
| purchase and sales agreement |
|
|
Term
| What is the correct order of the phases of the business cycle? |
|
Definition
| Expansion, peak, contraction, trough |
|
|
Term
| Which method may NOT be used to estimate reproduction costs? |
|
Definition
| economic age-life - This is for depreciation |
|
|
Term
| If no agreement has been reached between the buyer and seller concerning the responsibility for payment of the closing costs, they will be allocated according to |
|
Definition
|
|
Term
| The ability a business broker must possess that distinguishes them from most other real estate brokers is the knowledge of |
|
Definition
| accounting and corporate finance, balance sheets and financial operating statements. |
|
|
Term
| Liquidation value may be used to establish the minimum value of a business that is __________? |
|
Definition
| profitable business or the max value for a failing business |
|
|
Term
| The risk associated with losses from storms, fire, etc. is called ______ risk? |
|
Definition
|
|
Term
| An instrument similar to a mortgage that is used to secure payment due on the sale of personal property is called a ? |
|
Definition
|
|
Term
| The transfer of ownership to personal property is generally accomplished using a _______ ___________ _______ |
|
Definition
|
|
Term
| The amount actually paid in a transaction is termed the? |
|
Definition
|
|
Term
| What is the correct order in which the criteria for estimating the highest and best use should be considered? |
|
Definition
| legally permissible, physically possible, economically feasible, maximally productive |
|
|
Term
| The relative new phenomenon in which small families move into older neighborhoods, renovate the properties and displace poorer residence is called ? |
|
Definition
|
|
Term
| Test borings of the soil are performed to ? |
|
Definition
| Determine its' weight bearing capacity, and/or environmental contamination |
|
|
Term
| Government owned property used to provide government services is said to be __________ from paying real estate taxes. |
|
Definition
|
|
Term
| A sales associate is employed by a broker Monday through Friday and for a builder on the weekends. The sales associate feels the added experience is beneficial especially since both employers pay an attractive commission split. When is this legal? |
|
Definition
| Never, you can only have one commissioned employer in real estate at a time. |
|
|
Term
| The process of real estate investment analysis in important to an investor as it? |
|
Definition
| Helps the investor select properties that meet personal objectives. |
|
|
Term
| Fixed expenses typically include? |
|
Definition
| Real Estate taxes and hazard insurance as they don't change monthly based on occupancy. |
|
|
Term
| Paul and Paula are husband and wife. They own a property as tenants by the entireties. They divorce without a property settlement. Unless otherwise decreed by a court, they now hold title as |
|
Definition
|
|
Term
| A Florida real estate license is required when anyone performs a service specified under FS 475 when all of the following conditions are simultaneously present, unless that individual otherwise exempt under the law: |
|
Definition
| Performing a service of real estate, in the State of Florida, for another person, for compensation |
|
|
Term
| A person appointed by a court to act for a decedent is called |
|
Definition
| a personal representative |
|
|
Term
| If a landlord requires a security deposit, the landlord must |
|
Definition
| return the funds within 15 days after the tenant vacates the premise or give notice of the intension to impose a claim against the security deposit within 30 days. |
|
|
Term
| A broker that induces owners to list and sell on the basis the neighborhood is deteriorating due to minority influences is guilty of |
|
Definition
|
|
Term
| What term is used to describe a situation in which a real estate licensee tell a customer an advertised property is NOT available for sale when in fact it is? |
|
Definition
|
|
Term
| Under the Florida Landlord-Tenant Act a landlord is NOT required to? |
|
Definition
| Deposit rents not yet earned by the broker in an interest bearing account. Broker does it their way, not according to the customer wishes. |
|
|
Term
| The components of a valid lease include the? |
|
Definition
| names and signatures of the lessor and the lessee, legally competent parties, legal description, consideration, and definite lease terms... |
|
|
Term
| To be enforceable, a lease for longer than one year |
|
Definition
| Must be in writing, signed by the landlord and witnessed by two persons. |
|
|
Term
| A violation of the Florida Telephone Solicitation Act could result in a fine of up to? |
|
Definition
|
|
Term
| A violation of the Federal Telephone Solicitation Act could result in a fine of up to? |
|
Definition
|
|
Term
| From a seller's standpoint, a sale-leaseback results in __________? |
|
Definition
|
|
Term
| Federal law governing telephone solicitation prohibit calls to residence after? |
|
Definition
|
|
Term
| Disintermediation occurs when? |
|
Definition
| depositors withdraw their savings from depository institutions, and invest in other things like artwork and gold. |
|
|
Term
| When all rights under a lease have been transferred to another party, the process is called a/an? |
|
Definition
|
|
Term
| Federal law required that a lead-based paint disclosure pamphlet prepared by the EPA be given to any party interested in buying, renting for periods of longer than 100 days, properties constructed subsequent to what year? |
|
Definition
|
|
Term
| When evaluation properties for price consideration used in a listing presentation, adjustment are made to which property? |
|
Definition
The comparable property only.
CIA or CBS |
|
|
Term
| A new airport built in the proximity to a residential neighborhood may cause properties to lose value do to? |
|
Definition
|
|
Term
| The "Consent to Transition to Transaction Broker" notice is required to be ______ or ________ for transition to occur. |
|
Definition
|
|
Term
| In the income capitalization approach, a capitalization rate can be derived from? |
|
Definition
| the relationship to sales prices and income of other similar properties |
|
|
Term
| Dividing the operating expenses by the effective gross income results in the calculation of what? |
|
Definition
| Also called the profit formula, known as the operating expense ratio |
|
|
Term
| If a neighborhood appears to have an abundance of for sale signs and an unusually high number if rentals available, when might this indicate? |
|
Definition
| Decline in the neighborhood may be indicated |
|
|
Term
| Which external force affecting value is indicated by the number of vacancies in an area? |
|
Definition
|
|
Term
| The Uniform Commercial Code (UCC) essentially covers the sale of _________ _________? |
|
Definition
|
|
Term
| What type liabilities mature in more than a year? |
|
Definition
|
|
Term
| A business with sales of less than $200,000 is classified as a _________? |
|
Definition
|
|
Term
| All construction in Florida is controlled by the? |
|
Definition
|
|
Term
| The balance due from the buyer on the closing disclosure statement is paid to the? |
|
Definition
|
|
Term
| Prorated rent is entered on the closing disclosure statement as a ______ to the seller and a _____ to the buyer? |
|
Definition
|
|
Term
| The purpose of the National Association of REALTORS® is to |
|
Definition
| preserve the right of individuals to own real property through the exchange of information. |
|
|
Term
| Which insurance policies can a real estate licensee offer to the public without additional state licensing? |
|
Definition
|
|
Term
| When is a request for the renewal of a license effective? |
|
Definition
| when processed by the department |
|
|
Term
| Which Department issues real estate licenses? |
|
Definition
| There is only one department, the Department of Business and Professional Regulations. |
|
|
Term
| The Director of the Division of Real Estate |
|
Definition
| is appointed by the Secretary of the Department if Business and Professional Regulations. |
|
|
Term
| No taxes are payable on either the note or the mortgage when title is taken? |
|
Definition
|
|
Term
| The day of closing is always charged to the buyer for? |
|
Definition
|
|
Term
| A real estate license expires |
|
Definition
| on the date shown on the license. March 31 or Sept 30 of the year specified on the license |
|
|
Term
|
Definition
| more flexibility in building design |
|
|
Term
| Approval of a new Commission rule is required by |
|
Definition
|
|
Term
| A sales associate failed to complete the required post-license education prior to expiration of the license period. What is the status of the license? |
|
Definition
|
|
Term
| Certificated entered into court evidence are |
|
Definition
|
|
Term
| Violations of the rules of the Commission are prosecuted by which agency |
|
Definition
| Department of Business and Professional Regulations. Answer is DRE but that is never an answer on a test, pick DBPR |
|
|
Term
| The percentage figure borrowers must be provided with that include all costs associated with a loan is referred to as |
|
Definition
| APR - Annual Percentage Rate |
|
|
Term
| When a lender allows a new buyer to take responsibility for a mortgage and note and releases the original borrower from liability from the note and mortgage, the process is called |
|
Definition
|
|
Term
| When a lender is requested by a borrower to verify the outstanding balance of a loan, the lender would give the borrower a |
|
Definition
|
|
Term
| A mortgage that secures more than one parcel of property as security for a loan is a |
|
Definition
|
|
Term
| The instrument that contains the amount of the loan, interest rate, payment provisions, and other terms of the loan in the |
|
Definition
|
|
Term
| True or false: The real estate market is global in nature |
|
Definition
|
|
Term
| If the Federal Reserve should decide to buy government securities, the money supply would ______ and the interest rates would ______ |
|
Definition
| Buy low and sell high. Increase and Decrease |
|
|
Term
| The Federal National Mortgage Association was originally created to buy |
|
Definition
|
|
Term
| A loan applicant's past credit history indicated his or her _______ to honor the debt obligations and his or her income is a measure of the _________ to repay the loan |
|
Definition
|
|
Term
| The area between a baseline and a line running parallel to it is a |
|
Definition
|
|
Term
| Who reports finding of fact to the Commission at the conclusion of an administrative hearing? |
|
Definition
| the administrative law judge |
|
|
Term
| The secondary market provides _________ to the primary market? |
|
Definition
|
|
Term
| The deed that is used to convey the property of a minor is the |
|
Definition
| guardians deed. Always ask is this from a minor or to a minor |
|
|
Term
| Recording a document in the public records provides? |
|
Definition
|
|
Term
| Title by adverse possession may be obtained after |
|
Definition
|
|
Term
| An appeal of a Commission final order is filed with the |
|
Definition
|
|
Term
|
Definition
| has 30 days from receipt of the complete report to recommend dismissal or issuance of a formal complaint |
|
|
Term
| The use of "by-bidders" in the auction of a property is |
|
Definition
|
|
Term
| A form of corporate ownership which allows possession under a proprietary lease is a |
|
Definition
|
|
Term
| The law of decent and distribution passes what percentage to a surviving spouse if there are no lineal descendants? |
|
Definition
|
|
Term
| The four unities required to create a joint tenancy are? |
|
Definition
| possession, interest, time and title |
|
|
Term
| What rights does a property owner have to the use of the water flowing over or through his or her land? |
|
Definition
|
|
Term
| Able, who holds title in fee simple, deeds his land to Baker to enjoy until his death. At that time Charlie is to receive title to the land. Baker's interest in the land is know as a (an) |
|
Definition
|
|
Term
| Based on the information in the previous question, Charlie's interest in the land is a (an) |
|
Definition
|
|
Term
| Florida time-share projects are regulated by the |
|
Definition
| Division of Condominiums, Time Shares and Mobile Homes |
|
|
Term
| Which estate does NOT include legal title to real property? |
|
Definition
|
|
Term
| Real estate taxes are of most importance to |
|
Definition
|
|
Term
| To qualify for a homestead tax exemption an individual must |
|
Definition
| own and use the home as a primary residence |
|
|
Term
| The interest payable on tax certificates is |
|
Definition
| based on the lowest bid received |
|
|
Term
| Which entry would appear as a credit to the seller's on the closing disclosure statement |
|
Definition
| prorated insurance if paid in advance |
|
|
Term
| Single entry debits appear on what page of the closing disclosure statement |
|
Definition
|
|
Term
| An appraisal is a(n) _______ of value? |
|
Definition
|
|
Term
| Investment value is best defined as |
|
Definition
| the highest price a property would sell for in an open market |
|
|
Term
| Definition of a Development of Regional Impact |
|
Definition
| A DRI is defined as any development that substantially affects the health, safety, or welfare of citizen in more than one county. |
|
|
Term
| At what point does a vendee acquire legal title to the real property? |
|
Definition
| When the deed is delivered to and accepted by the vendee |
|
|
Term
| A vendee has acquired _______ ________ in the property prior to closing |
|
Definition
|
|
Term
| Witness on a real estate sales contract are |
|
Definition
|
|
Term
| The parties to an option contract are the ________ who is the owner of the property, and the _______, who is the potential purchaser. |
|
Definition
|
|
Term
| An option NOT accompanied by a definite valuable consideration is |
|
Definition
|
|
Term
| Business that meet their payroll costs by using dollars generated by persons that live in the immediate vicinity are categorized as |
|
Definition
|
|
Term
| How should local planning boards be selected? |
|
Definition
|
|
Term
| A listing given to only one broker, but allows the owner to sell the property without paying the broker is a (an) |
|
Definition
|
|
Term
| The type of listing that gives the broker the greatest degree of protection is the |
|
Definition
| exclusive right of sale listing |
|
|
Term
| Valuable consideration in a contract may consist of |
|
Definition
| Real property, Personal property, or enforceable promises |
|
|
Term
| Damages specified in a contract are |
|
Definition
|
|
Term
| When a court is called upon to interpret the meaning of a contract, the process is called? |
|
Definition
|
|
Term
| How does the real estate market respond to shifts in consumer demand? |
|
Definition
|
|
Term
| In a real estate market, a developer is considered to be a? |
|
Definition
|
|
Term
| The clause in a mortgage that protects the borrower's interest and requires the lender to acknowledge performance by the borrower is the |
|
Definition
|
|
Term
| If a borrower was in default and the lender wished to call the entire balance of the loan due and payable, the mortgage would have to contain a (an) |
|
Definition
|
|
Term
| If a buyer were to take over the balance of an existing mortgage in such a way that the seller remained solely responsible for a deficiency judgement, the property was sold |
|
Definition
|
|
Term
|
Definition
| secures the repayment of the debt |
|
|
Term
| Which document indicates the financial condition of a business as of a particular time? |
|
Definition
|
|
Term
| Business brokerage consist of what? |
|
Definition
| primarily analyzing financial statement |
|
|
Term
| With regard to residential properties located in a flood hazard zone with a designation of "V", what type of construction must be used |
|
Definition
| elevated and knock-away, no plumbing fixtures below flood elevation |
|
|
Term
| The most effective tool the Federal Reserve System has to affect the money supply is called |
|
Definition
|
|
Term
| The least effective tool the Federal Reserve System has to affect the money supply is |
|
Definition
| changes in the discount rate |
|
|
Term
| Life insurance companies are the largest source of funds for |
|
Definition
|
|
Term
| The primary mortgage market is where loans |
|
Definition
|
|
Term
| Mortgage brokers ________ loans and mortgage bankers ________ loans |
|
Definition
|
|
Term
| The federal regulatory agency responsible for supervising saving and loan associations is the |
|
Definition
| Office of Comptroller of the Currency - (OCC) |
|
|
Term
| A tenant in an apartment complex may receive up to how much money or rent credit for a referral for a tenant in the same complex? |
|
Definition
|
|
Term
| Owner-employers are ___________ but are not licensed |
|
Definition
|
|
Term
| The notice of satisfactory completion of a pre-license course is valid for? |
|
Definition
|
|
Term
| Florida real estate sales associates that desire to become brokers must wait how long before taking their broker's state examination? |
|
Definition
| 2 years and have employment under one or more brokers |
|
|
Term
| The continuing education requirements consist of how many hours every 2 years? |
|
Definition
|
|
Term
| Post-license educational courses for sales associate consist of how many hours? |
|
Definition
|
|
Term
| Florida does not reciprocate with other states, but does have_________ with some states that have educational requirements that are similar |
|
Definition
|
|
Term
| Upon passage of the state examination, an applicant for a sales associate's license will receive what type of license? |
|
Definition
| inactive - they must find an employer to activate it |
|
|
Term
| The first real estate license laws in Florida were enacted in what year? |
|
Definition
|
|
Term
| A sales associate's license will be ________ if he or she does not complete the required post-license education during his or her initial license period. |
|
Definition
|
|
Term
| A broker that did not complete the required post-license education prior to expiration of his or her initial license period may request a __________ license by completing a continuing education course within _______ ________ |
|
Definition
| Sales associates - 6 months |
|
|
Term
| The principle offices of the Division of Real Estate are located in |
|
Definition
|
|
Term
| If title passes upon the death of a life tenant to a party other than the original grantor, the party receiving the ownership rights is called a |
|
Definition
|
|
Term
| The document that creates a condominium is call |
|
Definition
|
|
Term
| What distinguishes ownership of a cooperative association from other forms of ownership? |
|
Definition
| shares of stock and a proprietary lease |
|
|
Term
| A timesharing concept that allows use but not ownership is referred to as |
|
Definition
| vacation lease or vacation license |
|
|
Term
| The county property appraiser determines the ________ value based on the ________ value |
|
Definition
|
|
Term
| A property owner has how many days to protest their assessed value from the mailing of the trim notice? |
|
Definition
|
|
Term
| If a property owner want to protest their assessed value, who would they protest to? |
|
Definition
| the value board of adjustment |
|
|
Term
| The basic homestead tax exemption allows a deduction from the assessed value of how much? |
|
Definition
| $25,000 it the property value is assessed under $75,000 and $50,000 if the value $75,000 or higher. |
|
|
Term
| A veteran with at lease a 10% military service connected disability is eligible for an additional exemption of _________ when calculating taxes on homestead property. |
|
Definition
|
|
Term
| Church own property does not have to pay real estate taxes as they are _______? |
|
Definition
|
|
Term
| The total basic homestead tax exemption for a non-veteran cannot exceed? |
|
Definition
|
|
Term
| Mortgage brokers are usually compensated for their services by a |
|
Definition
| finder's fee or a commission |
|
|
Term
| When financing the purchase of real estate, the mortgagor gives what? |
|
Definition
| the mortgage to the mortgagee |
|
|
Term
| Which clause in a mortgage requires the lender to acknowledge performance by the borrower? |
|
Definition
|
|
Term
| The party that holds title to real property in a lien theory state is the |
|
Definition
|
|
Term
| In order to qualify for a FHA 203b insured mortgage loan, an applicant's housing expense ratio cannot exceed |
|
Definition
| 31% (43% total obligation ratio) |
|
|
Term
| A receivership clause in a mortgage |
|
Definition
| is used to protect the value of the property during the foreclosure process |
|
|
Term
| The right of a mortgagor in default to pay all money owed and prevent the sale of the property at foreclosure is called |
|
Definition
|
|
Term
|
Definition
| increase the lender's yield (profit) on the loan |
|
|
Term
| The two ratios under which a borrower must qualify in order to receive a FHA insured mortgage loan are the |
|
Definition
| housing expense and total obligation ratio |
|
|
Term
| The process used by loan underwriters to determine if the applicants are satisfactory credit risks is called |
|
Definition
|
|
Term
| The county property appraiser determines the |
|
Definition
|
|
Term
| What limits the assessed value on agricultural land in or near urban areas? |
|
Definition
|
|
Term
| Property owners that pay their real estate taxes in November are entitled to a discount of |
|
Definition
|
|
Term
| The restriction that does not allow a building permit to be issued until adequate infrastructure is provided is a requirement of the |
|
Definition
|
|
Term
| Approximately what percentage of property losses nationally is flood related |
|
Definition
|
|
Term
| What percentage of losses each year are for properties not located in a flood hazard zone |
|
Definition
|
|
Term
| The purpose of the zoning board of adjustments is to |
|
Definition
| grand variances and special exceptions |
|
|
Term
| A property use that predates the current zoning ordinance but is allowed to exist for at least a period of time can best be described as |
|
Definition
|
|
Term
| Planned unit developments (PUD) |
|
Definition
| are also called cluster zoning and man contain other types zoning such as commercial, light industrial etc.. |
|
|
Term
| If a property has a value of $240,000 and the net operating income is $30,000, what is the rate of capitalization? |
|
Definition
|
|
Term
| An earnest money deposit held in escrow is reflected on the closing statement as a |
|
Definition
|
|
Term
| If the income generated by a property is $20,000 and the rate of return is $10%, what is the value of the property |
|
Definition
|
|
Term
| A tenant paid rent of $450 on the first day of the month when due. If the property was sold on March 12, with the date of closing belonging to the seller, what is the amount of the rent proration and show should it be entered on the closing disclosure statement? |
|
Definition
| $275.81 debit the seller and credit the buyer |
|
|
Term
| A buyer purchased a property for $65,000. A lending institution loaned the buyer 80% of the purchase price and charged a discount of 4 points. What is the amount of the discount? |
|
Definition
| (Answer $2080) $65,000 X .80% = $52,000 loan amount X .04 points = $2080 |
|
|
Term
| What is the total amount of the state transfer taxes on the transfer if a property sold for $90,000 with an 85% loan to value mortgage? |
|
Definition
| $630. 00 Doc on Deed Plus $267.75 Doc on the Note, plus $153 intangible= $1,050.75 |
|
|
Term
| An investor purchased a property for a total sale price of $350,000. The investor made a cash down payment of $150,000 and obtained a mortgage for $200,000. the effective gross income of the property is $67,000. The operating expenses were $25,000 and the Debt Service was $2,200 per month, What is the equity dividend rate? |
|
Definition
EGI= 67000-OE $25000-ADS (2200 X 12)$26400=$15,600 / down pmt $150,000
BTCF / Down Pmnt or 15000/150000=10.4% |
|
|
Term
| Calculate the number of acres in a property with the following legal description: SW 1/4 of the SW 1/4 of the SE 1/4 and the E 1/2 of the E 1/2 of the SW 1/4 of sec 23 |
|
Definition
|
|
Term
| A $40,000 mortgage for a term of 20 years was originated at an 8% interest rate with monthly mortgage payments of $334.58. What is the principal balance remaining after the 2nd monthly payment? |
|
Definition
|
|
Term
| How many square feet are contained in a lot that sold for $27,000-, if the price was based on $9 per square ft.? |
|
Definition
|
|
Term
| What is the tax levy for the city and county taxes of a property assessed at $136,000 if the combined tax rate is 11 mills. ? |
|
Definition
|
|
Term
| A property has annual taxes of $450. The date of closing is Oct 12 and is charged to the seller. Using the 365- day proration method, what is the amount of the tax proration and how is it to be entered on the closing disclosure statement? |
|
Definition
| $450.00 / 365 X 285= $351.37 debit the seller credit the buyer page 3 |
|
|
Term
| Broker max agrees to pay Sales Associate Sally 60% of all commissions generated for the office. If Sales Associate Sally sells a property for 72,000 at a 7% brokerage commission, what is her share of the commission? |
|
Definition
| $3024 $72,000 X .07 X .60= $3024 |
|
|
Term
| A borrower has applied for a loan. The purchase price of the property is $280,000. If the borrower has $70,000 as a down payment, what will the loan to value ration be? |
|
Definition
|
|
Term
| How many acres are contained in 1/36 of a township? |
|
Definition
|
|
Term
| A licensee that has appealed a decision by the Florida Real estate commission regarding a disciplinary decision may have his or her license privileges restored by |
|
Definition
|
|
Term
|
Definition
| states the grantor will defend against all lawful claims |
|
|
Term
| The Department can subpoena |
|
Definition
| anyone thought to have information or evidence pertinent to an investigation through the division of real estate |
|
|
Term
| The most comprehensive form of real property ownership is? |
|
Definition
|
|
Term
| What is the principal balance of a $50,000 mortgage at 12% interest after 2 monthly payments of $514.31? |
|
Definition
|
|
Term
| A property which measures 120 X 300 sold for $76320. What is the price per square foot. |
|
Definition
|
|
Term
| A developer purchased as tract of land for $100,000, subdivided the parcel into three lots, and sold the lots for $50,000 each. What was the developer's profit on the investment? |
|
Definition
|
|
Term
| If a property's effective gross income is $44,000, and the operating expenses are $26,000, and the capitalization rate is 10%, what is the value of the property. |
|
Definition
| $180,000 (44,000 - 26000=NOI. NOI/10% cap rate = value) |
|
|
Term
| If property value equals $120,000, operating expenses are $45,000 and the net operating income is $15,000, what is the capitalization rate? |
|
Definition
| 12.5% NOI/V $120,000 / $15,000 |
|
|
Term
| If the lender charged 4 points on a loan with an interest rate of 11%, the approximate yield to the lender would be? |
|
Definition
| 11.5% (4/8 rule of thumb = 1/2 plus the 11% initial interest rate) |
|
|
Term
| To help prevent fraudulent documents from being placed in the public records, the documents are |
|
Definition
| acknowledged by an officer of the state |
|
|
Term
| A one-year insurance policy in the amount of $730 was purchased on January 1. closing is March 17 and the parties use the 365-day method. If the buyer wished to assume this policy, how would this appear on the closing disclosure? |
|
Definition
| $578 credit the seller-debit the buyer on page 3 |
|
|
Term
| If a seller revoked an exclusive right to sale listing without cause and then sold the property to a neighbor, would the broker be entitled to a commission, damages or nothing? |
|
Definition
| Full commission based on the sales price and negotiated commission of the listing agreement. |
|
|
Term
| If a sales associate is entitled to 60% of all commissions earned and sells a property for $238,000 with a 7% commission due the broker, how much should the broker pay the sales associate. |
|
Definition
|
|
Term
| If interest at 12% for 3 months equals $135, what is the principal amount? |
|
Definition
| $4,500 ($135 X 4 = 540 / .12 = $4500) |
|
|
Term
| County taxes are 6 mills, city taxes are 8 mills, and the school board taxes are 7 mills. If the homestead property is assessed at $310,000, what are the annual taxes for a this property if located in a rural part of the downtown area ? |
|
Definition
| $4075 (310,000 - 50,000 exemption = $260,000 X .008 = $2080 City Tax then 310,000 - 25,000 exemption= $285,000 X .007= $1995. Add together) |
|
|
Term
| What type of study deals with local business activity? |
|
Definition
|
|
Term
| The equity of redemption may be exercised |
|
Definition
| until the time of foreclosure |
|
|
Term
| What advantage might a homeowner derive from a corner lot? |
|
Definition
| More flexibility in building design |
|
|
Term
| Concerning all types of mortgages, which one(s) offer both the right of prepayment and the right of assumption? |
|
Definition
| FHA prior to 2013 and VA (All government loans) |
|
|
Term
| What type of development permits flexibility from rigid zoning standards and allows for the development to include commercial and light industrial within it's development. |
|
Definition
|
|
Term
| What may a broker NOT deposit into escrow. |
|
Definition
| Personal funds in excess of FREC limits |
|
|
Term
|
Definition
| can be taken by an officer of the state |
|
|
Term
| The Federal Reserve Board is charged with the responsibility of monitoring and controlling the supply of money and cost of credit. What action could it use to cause an increase in the interest rates? |
|
Definition
| Sell government securities, increase the reserve requirements, or increase the discount rate |
|
|
Term
| The original mortgagor is NOT released from liability if the title to real property is taken |
|
Definition
|
|
Term
| The purpose of the standardized closing disclosure document |
|
Definition
| Summarize and simplify the transaction and provide full transparency and disclosure. |
|
|
Term
| The rates for documentary stamps are determined by |
|
Definition
|
|
Term
| What term is applied to the practice of keeping low-income people out of a particular neighborhood? |
|
Definition
|
|
Term
| Broker Jones committed fraud in a real estate transaction involving 6 investors in a limited partnership. What is the maximum recovery possible from the Recovery Fund that results in a single judgment as a result of this fraudulent activity? |
|
Definition
|
|
Term
|
Definition
|
|
Term
| A mortgagor defaulted on his loan payments and the lender foreclosed. Some states allow the party that was foreclosed the right to redeem the property following foreclosure. Where applicable, this right is called |
|
Definition
| statutory right of redemption |
|
|
Term
| Expenses on a closing statement are |
|
Definition
| single entry debits on page 2 |
|
|
Term
| The comparable sales approach usually CANNOT be used when estimating the value of |
|
Definition
| special purpose buildings |
|
|
Term
| A judgment is awarded against a licensee for $100,000. What is the maximum percentage the complainant may be compensated from the Recovery Fund? |
|
Definition
| $50,000 as it was a single judgment |
|
|
Term
| A licensee is being disciplined by the Florida Real Estate Commission for multiple violations of Florida Statute 475. Which penalty may the Commission NOT impose? |
|
Definition
| a fine not to exceed $5,000 and/or imprisonment not to exceed one year. |
|
|
Term
| What is the only warrant found in a bargain and sale deed? |
|
Definition
|
|
Term
| Mrs. Jones sells a parcel of property to Mr. Mason who thereafter leases the property to Mrs. jones. The seller has entered into a |
|
Definition
|
|
Term
|
Definition
| Is a requirement of all contracts |
|
|
Term
| If a broker is the escrow agent and a dispute arises concerning the disposition of escrowed funds, what should the broker's first action be |
|
Definition
| notify the Florida Real Estate Commission within 15 days from the date of the last parties demand for escrowed funds. |
|
|
Term
| A broker has an exclusive right of sale listing to sell and owner's property, with no other authority granted. What type of agency does the broker have with the principal? |
|
Definition
| Special (definite beginning and definite ending with only one service provided, listing) |
|
|
Term
| The Federal Reserve CANNOT change or control the money supply by |
|
Definition
| altering the income tax rate |
|
|
Term
| When must a written "No Brokerage Relationship Disclosure Notice" be provided to a customer. |
|
Definition
| Not a requirement as we are now a transaction broker state. Although you may still be in a No Brokerage relationship, you have to show a paper of the relationship to the customer for that to happen. |
|
|
Term
| The 1988 Fair Housing Amendments Act expanded on the Civil Right Ace of 1968 to include banning discrimination on the basis of |
|
Definition
|
|
Term
| What municipal ordinances specify the standards for altering, remodeling, and new construction? |
|
Definition
|
|
Term
| A summary suspension is ordered by the |
|
Definition
| Secretary of the Department of Business and Professional Regulations |
|
|
Term
| To whom is the original judgment assigned when money is to be paid from the Real Estate Recovery Fund? |
|
Definition
| Florida Real Estate Commission. |
|
|
Term
| The federal Reserve actions taken to affect interest rates are know as |
|
Definition
|
|
Term
| The monthly payment under FHA 203B may NOT include |
|
Definition
| PMI this is for convention loans |
|
|
Term
| George has applied for a loan with Acme Savings and Loan. His gross monthly income averages $4100. He has a monthly car payment of $425 and owes a balance on two credit cards accounts with payments totaling $75.00 as the minimum monthly payment for both. If approved,. his monthly mortgage payment will be $825.00. What is George's monthly housing expense ratio? What is George's total obligation ratio? then if the lender charges 2 points and the interest rate on the loan is 9%, what is the amount of the discount and also what is the lenders effective yield. |
|
Definition
| 20% and 32%, 1/4 and 9.25 |
|
|
Term
| The real estate market can best be described as ________ and __________ |
|
Definition
|
|
Term
| What type market exists when there is an excess of demand over supply? |
|
Definition
|
|
Term
| Jane is a widow who has lived in her home outside Clearwater downtown area for the past 15 years. Although she is totally blind, she continues to live alone. the city tax rate is 5.5 mills and the county rate is 7.5 mills, and the school board rate is 6.5 mills. Her home is assessed for $186,000 for tax purposes. If she files for all allowable exemptions, what is the amount of tax? |
|
Definition
$2052.50
186000-51000=135000 X .0075= $1012.50 County tax. Then 186000-26000=160000 X .0065 = 1040.00 School board tax add together. |
|
|
Term
| The relationship between supply and demand in the real estate market is indicated by? |
|
Definition
|
|
Term
| The city of Floraville has adopted a budget calling for expenditures of $1,800,000 for the coming year. Of this amount $650,000 is expected to come from other sources other than real estate taxes. There are 1500 homes that qualify for the homestead tax exemption. The total of all assessed values in $202,500,000. What millage rate will be required for the city to meet its budget? |
|
Definition
| 9 Mills. 1800000-650000=$1150000 needed to be raised which is the numerator. and 1500 X $50,000 = $75,000,000 subtracted from $202,500,000 = $127,500,000 which is denominator. so $1150000/$127,500,000 = .009 or 9 Mills |
|
|
Term
| A new loan in the amount of $73,550 is being originated. What is the amount of the state intangible taxes on the mortgage? |
|
Definition
|
|
Term
| The city is paving the street in front of Bill's home. The cost of the paving is estimated to be $18.50 per lineal foot and the city has agreed to pay 20% of the cost. If Bill has a lot measuring 115' X 150', what will Bill's share of the assessment be? |
|
Definition
| $851.00 ($18.50 X 115' = total assessment of $2127.50. The city pays 20% or $425.50 leaving Bill to pay $1702. But Bill only pays to the middle of the street or 1/2 of the amount left Answer $851.00 |
|
|
Term
| The buyer has agreed to assume an existing mortgage loan having a balance of $86,346. Interest for the month of closing is $697.00. closing is scheduled for July 14th, with the day of closing belonging to the seller. How is the interest proration entered on the closing disclosure document. |
|
Definition
| $314.77 Debit Seller Credit Buyer page 3 ($697 / 31 days X 14 seller days = $314.77) |
|
|
Term
| A buyer wished to assume the sellers existing one-year insurance policy purchased on January 1 of the current year. If the policy costs $565 and the day of closing, which belongs to the seller is May 23rd, what is the amount of the proration and how is it entered on the closing disclosure? |
|
Definition
| $343.64 ( $565 / 365 X 222 buyer days = 343.64)Debit buyer, credit Seller page 3 |
|
|
Term
| Real estate taxes are $1034. If a closing is to take place on April 16, with the day of closing belonging to the seller and the 365-day method is used, what is the amount of the proration and how is it handled? |
|
Definition
| $300.28 Debit Seller Credit buyer page 3. ($1034 / 365 X 106 seller days= $300.28 |
|
|
Term
| A mortgage in the amount of $283,255 is being assumed. What is the amount of documentary taxes that must be paid. |
|
Definition
For Buyer $991.56 For Seller $1983.10
(Doc on note 283255 / 100 = 2832.55 round up to 2833 x .35 = $991.56. Intangible tax only on New Mortgage not assumed |
|
|
Term
| If a property sold for $402,750 what amount must be paid for the documentary stamp tax on the deed if the loan to value is 80%. |
|
Definition
| $2819.60 ($402750 / 100 round up to 4028 X .70= $2,819.60 LTV has nothing to do with Doc stamps on the deed |
|
|
Term
| A property is being sold for $198,350 and the buyer is taking title subject to an existing mortgage in the amount of $161,220. The total of the taxes due in this transaction are (is)? |
|
Definition
| $1,388.80 ($198,350 / 100 = 1983.50 round up to 1984 X .70 =$1,388.80 |
|
|
Term
| If you begin at a point and go north ninety degrees east, you would be traveling in what direction? |
|
Definition
|
|
Term
| If the subject property has three bedrooms, the comparable has four bedrooms, and a bedroom is worth $5,000, the correct adjustment would be |
|
Definition
| Subtract $5,000 from the comparable |
|
|
Term
| A relatively new 4-bedroom home with only one bathroom would be a example of |
|
Definition
|
|
Term
| The first step in the appraisal process is to |
|
Definition
| Establish the function then define the problem. |
|
|
Term
| Who are the parties involved in a deed of trust? |
|
Definition
| Beneficiary, Trustee, Trustor |
|
|
Term
| What type of depreciation CANNOT be recovered? |
|
Definition
|
|
Term
| Depreciation or obsolescence that results from ordinary wear and tear is called |
|
Definition
|
|
Term
| An appraiser estimating the value of a three-year-old home in a rural area should be most concerned with |
|
Definition
|
|
Term
| What type of deed would be used to return title to the Trustor when a deed of trust is satisfied? |
|
Definition
|
|
Term
| What appraisal principle states that homes in a neighborhood of similar homes should have similar values? |
|
Definition
|
|
Term
| Prior to acceptance of an offer, the earnest money deposit belongs to the |
|
Definition
|
|
Term
| A house valued comparable to all other homes in the neighborhood was assessed at a tax base of $5,000 less than others. Excluding any special tax exemption, the property should sell for |
|
Definition
|
|
Term
| To avoid an undue hardship imposed by zoning regulations a property owner may request |
|
Definition
|
|
Term
| When a seller takes back a second mortgage it is entered on the closing disclosure as a |
|
Definition
| Debit to the seller and a credit to the buyer |
|
|
Term
| Leverage is used with the expectation of |
|
Definition
| increasing the yield on an investment by using borrowed money |
|
|
Term
| What is deducted from potential gross income to calculate effective gross income when using the income capitalization approach to appraising? |
|
Definition
| Vacancy and collection losses |
|
|
Term
| What is the current maximum amount of a VA guaranteed loan? |
|
Definition
|
|
Term
| When a mortgage is paid in full, which document should be delivered to the mortgagor? |
|
Definition
|
|
Term
| The purpose of an estoppel certificate is to |
|
Definition
| provide information to the mortgagee and mortgagor as to the payoff as of a particular date. |
|
|
Term
| Real estate physically is |
|
Definition
| indestructible and immobile |
|
|
Term
| Violations of which activity is classified as a first-degree misdemeanor under the criminal statutes? |
|
Definition
|
|
Term
| A listing would be terminated as a result of |
|
Definition
| destruction of the improvements |
|
|
Term
| What is required to create a joint tenancy |
|
Definition
| the four unities of possession, interest, time and title. |
|
|
Term
| An encumbrance affects the |
|
Definition
| title (the rights in the property) |
|
|
Term
| Which method of describing property would NOT be utilized by a licensed surveyor in developing a legal description? |
|
Definition
| a street number and address |
|
|
Term
| The city of Sunnybrook, Florida owns one-third of all the real property within the city limits including schools, highway right-of-ways, public building, and common areas. How is the city taxed on these properties. |
|
Definition
| They are not as they are used for governmental services. they are immune |
|
|
Term
| If no clause appears in a contract concerning damages, any damages awarded as a result of a breach of contract are? |
|
Definition
|
|
Term
| Following expiration of their licenses, sales associates may |
|
Definition
| collect commissions they legally earned before the expiration date. |
|
|
Term
| A sales associate received their initial license on December 12, of 2016. What day will that license expire? |
|
Definition
|
|
Term
| A contractor agreed to build a house on an owner's property. This is an example of |
|
Definition
|
|
Term
| Cracks in masonry building become a concern when this occurs |
|
Definition
|
|
Term
| What does "Freddie Mac" Stand for |
|
Definition
| Federal Home Loan Mortgage Corporation |
|
|
Term
| By what right does the government enforce zoning regulations? |
|
Definition
|
|
Term
| Which party normally pays for documentary stamps on the deed |
|
Definition
|
|
Term
| A two-party arrangement that uses the property as security and creates a lien on the property that may be removed by foreclosure is known as a |
|
Definition
|
|
Term
| When the mortgagor fulfills all obligations under a note, what clause protects his rights to the property? |
|
Definition
|
|
Term
| True or false - 1/36th of a township and a section are essentially the same? |
|
Definition
|
|
Term
| Which disciplinary action could the Department of Business and Professional Regulations impose for a violation of Chapter 475? |
|
Definition
| Notice of non compliance, citation or a full hearing. |
|
|
Term
| An owner promises to give a listing to only one broker setting forth the price, terms, time and commission, but reserves the right to seller the property without paying any commission, What type of listing has the seller given? |
|
Definition
|
|
Term
| If a husband and wife both sign a note indicating that they are jointly and severally liable for a debt |
|
Definition
| both parties are liable jointly and severally |
|
|
Term
| To be valid, a deed must be |
|
Definition
|
|
Term
| What is the only warrant found in a bargain and sale deed? |
|
Definition
|
|
Term
| Building activity is related to the business cycle. The initial phase of the business cycle is expansion. What is the correct order of the other phases? |
|
Definition
| peak, contraction, trough |
|
|
Term
| How much are the annual taxes on a homestead property assessed at $265,000 if the tax rate is 22 mills? |
|
Definition
| $4730.00 ($265,000 - 50,000 exemption = $215,000 X .022 = $4730) |
|
|
Term
| When an estate is held in trust, which party has legal title to the property? |
|
Definition
|
|
Term
| In the Government system of surveying, the range is the area between what? |
|
Definition
|
|
Term
| What is the purpose of the trim notice that is mailed out in August by the tax collectors office? |
|
Definition
| To notify the current owner that future tax amounts may be different that it is today. |
|
|
Term
| A shoe store is considering a lease where the landlord charges a cost per square foot, common area fees, and in addition a portion of the amount of gross sales. What kind of lease is this? |
|
Definition
|
|
Term
| A township contains is how many miles square? |
|
Definition
|
|
Term
| Which statutes deal with the time period to bring a legal action to enforce a contract? |
|
Definition
|
|
Term
| In order to become a Broker Associate, is one of the requirements to open and maintain an office? |
|
Definition
| No this is a requirement to become a broker |
|
|
Term
| What type of relationship has probably been formed if two or more parties agree to combine their efforts for a single business transaction? |
|
Definition
|
|
Term
| Which concept of value pertains to appraisals of profitable business enterprises or opportunities? |
|
Definition
|
|
Term
| In order to qualify as a Special Assessment, what must this do with relation to the property? |
|
Definition
| It must increase the property value |
|
|
Term
| The four factors of production are? |
|
Definition
| Capital, Entrepreneurial ability, land and labor (CELL) |
|
|
Term
| If four people own a vacant lot and each can leave their proportionate ownership to their heirs, how do they hold ownership rights or title rights? |
|
Definition
|
|
Term
| What type of an easement are Sewer and water? |
|
Definition
|
|
Term
| How long does a broker have to get an escrow check into the escrow account? |
|
Definition
|
|
Term
| The area between two consecutive meridians is called? |
|
Definition
|
|
Term
| Industrial zoning is based on? |
|
Definition
|
|
Term
| A block of sections 6 sections wide and 6 sections tall is called? |
|
Definition
|
|
Term
| The size of a subsection of a township that is a fraction of 1/64 if a section is how many acres? |
|
Definition
| 10 Acres (10/640 equals 1/64) |
|
|
Term
| A Variance is granted by? |
|
Definition
| Zoning board of adjustments |
|
|
Term
| If a decedent has no heirs, what happens to the property of the decedent after death? |
|
Definition
| It will revert to the county by escheat |
|
|
Term
| An equitable interest is what? |
|
Definition
| A financial interest in property that does not usually involve legal ownership at that point. |
|
|
Term
| What do you call a mortgagor in a title theory state? |
|
Definition
| A trustor at there is no mortgage |
|
|
Term
| Name a closing items that is not a prorated between the buyer and seller? |
|
Definition
|
|
Term
| A tenant is in a lease for a commercial space. When the tenant is required to pay all operating expenses as well as lease payments this is a |
|
Definition
|
|
Term
| A transaction broker in a residential transaction may represent which party (ies) in the sale of the property? |
|
Definition
| Neither the buyer or the seller |
|
|
Term
| What type of a license does a corporate sole need to sell real estate for others? |
|
Definition
| People are licensed and corporations are registered. A corporation Sole can not provide real estate services to others. |
|
|
Term
| May an unlicensed associate go to closing to pick up a check earned while property licensed? |
|
Definition
| Yes, you are paid based on performance |
|
|
Term
| FREC rules start with what combination of letters and numbers? |
|
Definition
|
|
Term
| What is the minimum amount of time a Broker must be licensed before applying to the Governor for a position on the FREC |
|
Definition
| 2 years. The one licensee with a minimum of 2 years bay be a broker in that period. Don't confuse licensee as a sales associate, it is anyone with a license. |
|
|
Term
| The classes protected against discrimination by the Fair Housing Act of 1968 are? |
|
Definition
| Race, religion, color, national origin, sex |
|
|
Term
| When the investor does not have to pay all the income received on the investment to the lender, he/she is experiencing |
|
Definition
|
|
