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All these Guides and Answers are to help pass your Sales Associate ( Pre-License ) Course Exam and your State Real Estate Sales Associate Exam for the states of Florida, Alabama, Arkansas, Connecticut, Georgia, Illinois, Mississippi and Nebraska.

Are you ready to pass the Sales Associate (Pre-License) Course Exam and your State Real Estate Sales Associate Exam? Believe us , we know how frustrating memorizing all the information to pass the exam can be. We have helped countless people pass the exam with our question and answer pages. As a BONUS, you will also get the "End of Pre-License Course Exam questions" (BONUS #1 MATERIAL included, not BONUS #2 MATERIAL) . All this material plus trivia questions and the math questions! SAVING YOU DAYS, WEEKS AND MONTHS OF STUDYING!

example questions:

1. Define Principal meridian - imaginary line running north and south and intersecting a base line at a definite point, used by surveyors as reference to locate land under the government survey system

2. 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?

Answer: Plottage

3. A borrower does NOT have the right to cancel which loan contract within three business days?

4. 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?

5. 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?

6. 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?

7. 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

8. Which expense may be deducted when calculating taxable income for an individual homeowner?

9. A benefit of investing in real estate does NOT include

10 . The loan–to–value ratio for a home purchased for $265,000 with a down payment of

$66,250 is

11. Which governmental power is used to acquire land for public use?

12. The direction opposite South 45 degrees West in a metes–and–bounds description is

13. Which amount is used to compute the state documentary stamp tax on the deed?

14. 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?

15. A strip of land that separates one land use from another is referred to as a(n) ?

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

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

18. Which type of legal description is used only where plat maps have been recorded in the public records?

19. 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?

20. Which variable does NOT influence the supply of real estate?

21. A lead–based paint disclosure must be given to-tenants and buyers of all residential property built before?

22. Which expense is NOT an operating expense in calculating net operating income (NOI)?

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

24. Which type of deed provides the grantor the best assurance of no future liability?

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

26. 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?

27. The overall capitalization rate (OAR) is determined by analyzing which two components of similar properties in the subject property's market area?

28. Payment collection and record keeping associated with mortgage loans is referred to as?

29. 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?

30. What type of foundation is characterized by a crawl space below the structure?

31. A licensed sales associate decides to have personalized key rings made. Which statement is TRUE regarding the key rings?

32. The established useful asset life for nonresidential income–producing property under the IRS code is what number of years?

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

34. An escrow account may NOT be established in a-stock brokerage company doing business in Florida.

35. Which type of value takes into consideration an individual's equity and income tax implications?

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

37. Which statement regarding state intangible taxes on new mortgages is TRUE?

38. Real estate licensees who specialize in the sale, purchase, or lease of businesses are referred to as-business brokers.

39. What is 9.26 mills converted to the decimal form?

40. Which statement is TRUE regarding Florida's telemarketing law?

41. Which law requires lenders to provide borrowers with an estimate of settlement costs at the time of loan application or within three business days?

42. 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?

43. Which contract would be considered a residential transaction under Florida Statute 475?

44. Taking which action is an example of constructive notice?

45. The Florida Real Estate Commission (FREC) does NOT have the authority to impose which penalty?

46. Which clause in the deed is a promise that the grantor owns the estate that is being conveyed?

47. 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.

48. 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?

49. 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?

50. Tax advantages of owning a home do NOT include?

51. A township has 36 parcels called "sections." Section 36 would be located in which corner?

52. Which statement is TRUE regarding an amortized mortgage?

53. 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?

54. Within how many days is the landlord required to notify tenants if the landlord intends to impose a claim on the deposit?

55. Which statement concerning Department of Veterans Affairs (VA) mortgage loans is FALSE?

56. Which statement concerning Florida Real Estate Commission (FREC) qualifications is FALSE?

57. A broker's license was revoked. The licenses of the sales associates registered with the broker will become

58. 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?

59. The covenant of further assurance is included in which type of statutory deed?

60. What legal document allows a purchaser of a cooperative to occupy a particular unit?

61. Which item is entered on the closing statement as a credit to the seller?

62. A real estate license application received by the DBPR expires after what period of time?

63. Which individual is exempt from real estate licensure?

64. 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?

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

66. 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?

67. 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?

68. A roof design that incorporates an overhang on all sides is called

69. Which requirement must a deed contain in order to be valid?

70. Which action by the Fed will reduce the supply of money in circulation?

71. 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?

72. 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?

73. An owner of an apartment complex pays $50 to each tenant that refers a person who becomes a tenant. This arrangement is?

74. 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?

75. Which action associated with water rights will cause a decrease in land mass?

76. 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?

77. Which statement is FALSE regarding a notice of noncompliance?

78. Right of survivorship is contained in which tenancy?

79. A Florida–licensed attorney is exempt from what education requirement?

80. Which business organization may NOT register as a real estate broker?

81. 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.

82. Which deficiency would be classified as external obsolescence?

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 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.

84. Which instrument is usually recorded?

85. All national chartered commercial banks are members of which entity?

86. Part IV of Florida Statute 475 pertains to?

87. 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?

88. What is the statute of limitations for written contracts?

89. Which document would be used to prevent future land owners of a particular parcel of land from selling firearms on the site?

-------

1. Which lien is an example of a specific lien?

2. A transaction broker discloses to a buyer who is considering making an offer on listed property that the seller will go as much as $10,000 lower than the listed price. Which duty has the licensee violated?

3. An appraiser calculates his fee based upon a percentage of the subject property’s market value. This is:

4. Which statement is TRUE regarding VA loans?

5. What township is located three tiers south and two ranges west of T3N R2W?

6. A small neighborhood restaurant is allowed to continue to operate even though current zoning ordinances do not allow commercial use. The property owner has what type of exception to the zoning code?

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

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

9. Planning commissions commonly do NOT have the final authority to decide on

10. A home has excessive electric bills in the summer months due to single pane sliding glass doors along the west wall. In this instance which type of depreciation will the appraiser likely consider?

11. Which type of window is the least energy efficient?

12. The Federal Reserve’s duties do NOT include

13. New owners acquire residential property before January 1st of this year. The owners have until what date in the current year to file for the Florida homestead tax exemption?

14. A group license-allows a sales associate or broker associate employed by an owner

15. Which statement is TRUE regarding a title company holding the escrow funds?

16. A contractor builds homes on several vacant lots in an established subdivision of 12 to 20–year–old homes. The contractor advertises the homes for sale to prospective buyers. What type of residential construction is this?

17. When real property is pledged as security for a debt it is known as

18. Which legal procedure is used to determine a fair price in an eminent domain action?

19. Which violation of real estate law is a misdemeanor of the first degree?

20. A buyer and a seller are disputing a contract for sale and purchase. They agree to submit

the matter to a third party who will make a binding determination regarding the matter.

This type of settlement is called

21. A fractional piece of land less than a full quarter section located along the banks of a lake

is known as a

22. Three brothers join together to purchase property. The brothers want their interest in the

property to go to their spouses in the event of their deaths. They have created which type

of estate or tenancy?

23. Which statement is TRUE regarding the federal telemarketing law?

24. What is the statute of limitations for written contracts?

25. When leased property is sold the security deposits and advance rents

26. Risk of vandalism is classified as which type of risk?

27. A lead–based paint disclosure must be given to

28. Which property is exempt from property taxes?

29. The law which requires lenders to provide borrowers with good faith estimates of probable

closing costs at the time of application for a loan is the

30. A parcel of real estate has been left to a woman through her husband’s will for her use and

enjoyment during her lifetime, with the provision that the property goes to her stepson at

her death. What interest does the woman hold?

31. 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?

32. Which individual is exempt from real estate licensure?

33. Property values have increased in a residential neighborhood approximately 8 percent per

year. An appraiser chooses a comparable sale that occurred six months ago in the same

neighborhood. Which adjustment will be required?

34. Martha, Ellen, and Howard purchased an investment property as joint tenants. Ten years

later Howard sold his interest in the property to Andrew. Andrew recently died. Who will

receive Andrew’s interest in the investment property?

35. The Florida Building Energy

36. Which item is added to rental income to calculate effective gross income?

37. 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 a ___?

38. Which statement is TRUE regarding a fee waiver for military veterans?

39. Which legal description contains 2.5 acres?

40. Which variable influences the demand for real estate?

41. The four characteristics of value do NOT include which characteristic?

42. A real estate firm has a property management agreement with a woman. A licensed sales

associate from the firm calls the woman to inform her that he has found a tenant for the

woman’s residence. The woman asks the sales associate, “Do they have dark skin?” How

should the sales associate reply?

43. Which action associated with water rights will cause the uncovering of additional land due

to the gradual receding of water?

44. The title to a parcel of real property is not effectively conveyed until a valid deed is

45. Which expense may NOT be deducted when calculating taxable income for an investment

property?

46. A broker complied with an escrow disbursement order (EDO). Later, the buyer sued the broker and the buyer was awarded a judgment of $25,000. The buyer’s attorney fees and courts costs totaled $3,500. The real estate broker’s attorney’s fees totaled $4,000.

Punitive damages of $10,000 were also awarded by the court. What is the maximum amount that can be paid from the Real Estate Recovery Fund as a result of the judgment?

47. IRS regulations require buyers to withhold what percent of the gross sale price when

purchasing property from a foreign seller?

48. Which duty is ONLY required in single agent relationships?

49. Which entity guarantees mortgage backed securities with the full faith and credit of the U.S. government?

50. Which solution is NOT a remedy for the breach of a real estate sale contract?

51. A closing is set for July 15. How will the property taxes be entered on the closing

statement?

52. Under the statute of frauds, which element is required for contracts pertaining to the purchase and sale of real property (except for certain specific exceptions)?

53. Which statute gives a real estate broker lien rights against an owner’s net sale proceeds for earned commission?

54. A sales associate received a prospect’s binder deposit on Tuesday morning. That afternoon

the sales associate presented the prospect’s offer, and it was accepted by the seller. The

sales associate turned the binder deposit over to his broker on Wednesday morning. The

broker has until the end of business on which day to deposit the check into the escrow

account?

55. A broker may reopen a branch office in the same location during the same license period

56. Which information must be disclosed to a prospective buyer regarding a particular property?

57. A sales associate sold and closed on two homes and delivered the commission checks to

his broker on Wednesday. When the sales associate asked for his split of the commission

checks on Friday, the broker indicated that he had spent all of the money on overhead and

now had nothing with which to pay the sales associate. The broker can be charged with-conversion.

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?

59. 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?

60. The legal evidence that gives a purchaser the right of occupancy in a cooperative unit is a

61 .The direction opposite South 20 degrees West in a metes–and–bounds description is

62. The term used to measure the amount of energy an electrical appliance consumes is

63. Which property would be defined as residential real estate under Chapter 475, Florida Statutes?

64. One method of controlling the money supply is for the Federal Reserve to increase or

decrease the amount of funds member banks must set aside. What is this method called?

65. A local lender charges five discount points on a conventional mortgage loan. How much will the discount points increase the return to the lender?

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

67. What is the legal term for a type of evidence that, unless refuted by evidence to the

contrary, will prove a case?

68. A broker received conflicting demands from the buyer and the seller for the earnest money deposit. The broker unsuccessfully attempted to resolve the issue between the parties to the contract. Eleven business days after receiving conflicting demands 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?

69. You are analyzing an investment property. You forecast the effective gross income to be

$396,000. The operating expenses for this property, including a $4,400 reserve for

replacements, total $176,000. What is the property’s net operating income?

70. The earnest money deposit normally appears on the closing statement as a

71. How does a quitclaim deed differ from a bargain–and–sale deed?

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

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

74. What is the per diem amount that Florida Real Estate Commission (FREC) members receive for participating in official meetings and other FREC business?

75. A DBPR investigator is authorized, in cases that involve a first–time offense of a minor violation, to issue a notice of noncompliance.

76. Who issues a recommended order at the conclusion of a formal hearing?

77. In lien theory states, the borrower has title to the property and the lender has a lien.

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

79. 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?

80. A license is ineffective when it is

81. Which requirement must be met for individuals acquiring a Florida sales associate’s license through mutual recognition?

82. A comparable property recently sold for $210,000. Compared with the subject property, the comparable is built of superior materials valued at $10,000. The comparable also has less square footage than the subject property, valued at $15,000. What is the adjusted sale price of the comparable?

83. 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?

84. An investor’s own funds used to purchase investment real estate are called

85. Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans differ in that

86. Which clause in a mortgage instrument allows the mortgagee to advance the due date of the unpaid balance if the borrower defaults on the loan?

87. Which clause in a deed indicates the duration of the estate being conveyed?

88. A real estate agent has been licensed in Texas for one year. The licensee worked for a Texas broker but recently moved to Florida. The agent wants to open his own brokerage in Florida so he recently completed the Florida broker prelicense course. Is the Texas licensee eligible to take the Florida broker license exam?

89. A business owner has a five–year variable lease. The first year of the lease calls for rent of

$23.50 a square foot based on a beginning index of 189. The index increases to 194 at the

beginning of the second year. What is the new rental rate?

90. A developer purchased two 135–front–foot lots for $22,900 net each and divided them into three lots of equal front footage. The developer sold the lots for $230 per front foot.

Calculate the developer’s percentage of profit. (Round to nearest whole percentage point.)

91. An appraiser has assigned the following weights to three adjusted sale prices:

Comparable 1: $429,500 45 percent weight

Comparable 2: $425,750 30 percent weight

Comparable 3: $410,900 25 percent weight

What is the reconciled estimated market value of the subject property?

92. A duplex is scheduled to close on February 15 (not a leap year). The seller collected rent for February at the first of the month amounting to $588 per unit. According to the purchase and sale agreement, the buyer is due the rental income for the day of closing.

Calculate the proration using the actual number of days in the month.

93. A multifamily unit consists of 10 two–bedroom apartments that rent for $900 per month

and 15 three–bedroom apartments that rent for $1,200 per month. The vacancy and

collection loss is estimated to be 6 percent. Management is 5 percent of effective gross

income. What is the annual vacancy and collection loss allowance for this property?

94. You are appraising a three–year–old, single–family residence. The total square footage of the livable area is 2,500. The garage is 500 square feet. According to figures obtained from a cost–estimating service, the base construction cost per square foot of livable area is $82 and $66 per square foot structure.

95. Property tax rates are: County 9.5 mills, City 8.8 mills, and School Board 9.5 mills. A homestead has been assessed at $195,000 for tax purposes, and the owner has qualified for homestead tax exemption. What is the homeowner’s savings resulting from the homestead exemption?

96. Buyers have obtained a mortgage loan of $122,000 at 8 1?2 percent interest. The loan will be amortized by equal monthly payments of $938.07 over 30 years that include principal and interest. How much of the buyers’ second month’s payment will be applied to

principal?

97. A prospective borrower is considering applying for a FHA–insured mortgage loan. The borrower has an estimated monthly housing expense of $1,486. His total monthly obligations are $2,050. If the borrower’s gross income is $98,400, what is his monthly housing expense ratio? (Round answer to nearest whole percent.)

98. Calculate all applicable documentary stamp taxes and intangible taxes associated with financing the transaction for a property located in Pinellas County.

99. Gross income is calculated by subtracting the cost of goods sold from revenue.

100. Net income is calculated by subtracting expenses such as SG&A (selling, general and administrative expenses), interest payments and taxes from gross income.

101. You can put some numbers to these steps to see what the formula looks like:

Potential gross income $50,000

– Vacancy and collection loss (10 percent of

$50,000) –$5,000

Additional income $3,000

Effective gross income $48,000

Expenses

Fixed $10,000

Variable $23,000

Reserves $5,000

– Total expenses – $38,000

Net operating income $10,000

102. value (V) x capitalization rate (R) = Net operating income (I)

===========

Which individual is NOT exempt from real estate licensure under F.S. 475?

A)

A court-appointed personal representative liquidating the real property of an estate

B)

A person who sells cemetery lots for compensation

C)

A business broker who negotiates leases of business property only

D)

A salaried county employee who appraises railroad property for tax purposes

Question #2 of 100

The rate of interest that the Federal Reserve Bank charges member banks for borrowing from the Federal Reserve Bank is called

A)

the prime rate.

B)

the reserve requirement.

C)

discount points.

D)

the discount rate.

Question #3 of 100

A broker's license was involuntary inactive for two years and one month. To operate again as an active licensee, the broker must complete

A)

FREC Course I and pass the sales associate’s licensing exam.

B)

42 hours of continuing education and pass the continuing education course exam.

C)

FREC Course II and pass the broker’s licensing exam.

D)

60 hours of the broker’s post-licensing education course, 28 hours of continuing education, and pass the broker’s licensing exam.

Question #4 of 100

The law requiring that the annual percentage rate be disclosed to consumers is the

A)

Truth in Lending Act/Regulation Z.

B)

Florida "Little FTC Act."

C)

Equal Credit Opportunity Act.

D)

Real Estate Settlement Procedures Act.

Question #5 of 100

A prospective tenant purchased a rental list from a broker and then rented a duplex that the list said included all utilities. The tenant discovered that only water was included in the rent and notified the broker within the legislated time limit. The tenant is entitled to

A)

no refund because the tenant agreed to rent the property.

B)

75% of the rental list fee.

C)

100% of the fee paid.

D)

nothing unless the request for a refund is made in writing.

Question #6 of 100

If a seller refuses to pay a broker her sales commission after the residential property is sold, the broker may

A)

file a suit in the courts for her commission.

B)

refuse to permit the closing to occur.

C)

keep the binder deposit as just compensation.

D)

file a vendor’s lien on the owner’s property.

Question #7 of 100

Which statement concerning tenancy by the entireties is FALSE?

A)

The deed must specifically state intent to create such a tenancy.

B)

The estate includes right of survivorship.

C)

The property must be owned by a wife and her husband.

D)

It is a form of concurrent ownership.

Question #8 of 100

Sales associate Terry Stoufer may have which information entered on his license, if applicable?

A)

Terry Stoufer, LLC

B)

Best Homes, Inc.

C)

Terry Stoufer Enterprises, LLC

D)

Terry’s Real Estate Services

Question #9 of 100

A homeowner originally purchased a new home for $244,900. During the period of ownership, the homeowner spent $27,000 in capital improvements. The homeowner sold the home 16 years later for $329,900. The homeowner paid a brokerage fee of 6% of the sale price and paid other closing costs totaling $2,750. What was the homeowner's capital gain from the sale?

A)

$35,510

B)

$85,000

C)

$35,456

D)

$62,456

Question #10 of 100

A title theory state is one in which a mortgage

A)

creates only an encumbrance on title to a property.

B)

transfers title to the lender or escrow agent until the loan is paid.

C)

creates a tenancy in common until the loan is paid.

D)

creates a joint tenancy for the lender until the loan is paid.

Question #11 of 100

Failure to comply with the statute of frauds will result in

A)

an illegal contract.

B)

a revocation of licensure.

C)

an unenforceable contract.

D)

a charge of fraud.

Question #12 of 100

A real estate company represents a motel owner who wishes to list one of his motels for sale. The owner has told the listing agent that he does not want to sell the motel to any racial minorities. Which statement is TRUE?

A)

The listing agent may not refuse to show or sell the motel to a minority buyer; however, the owner may refuse to sell to certain individuals if he sells the property "for sale by owner."

B)

It is a violation of the Fair Housing Act to abide by the owner’s wishes.

C)

To refuse to sell or lease any real property based on a party’s race is a violation of the federal Civil Rights Act of 1866.

D)

Because this is not a sale of a residential dwelling under the Fair Housing Act, the listing agent may honor the owner’s instructions.

Question #13 of 100

A single agent broker received an offer on a listed property at the seller's price and terms. Before informing the seller, the broker received a higher offer. The broker submitted only the first offer, and the seller, his principal, accepted it. The broker

A)

has fulfilled his duty to the seller because the offer was for the seller’s full price and terms.

B)

is not required to submit the second offer.

C)

is guilty of conversion.

D)

has violated his fiduciary duty to his principal.

Question #14 of 100

Three claimants have come before the Commission requesting relief from the Real Estate Recovery Fund. All three claimants were involved in the same real estate transaction. Payment for their claims, in the aggregate, is limited to

A)

$25,000.

B)

$50,000.

C)

$150,000.

D)

$75,000.

Question #15 of 100

Which savings association is federally chartered?

A)

Federal Savings Association

B)

Trust Savings, N.A.

C)

National Savings and Loan

D)

First National Savings Association

Question #16 of 100

What authority originates from the U.S. Constitution and relates to protection of health and welfare of citizens at local levels?

A)

Police power

B)

Situs

C)

Escheat

D)

Community protection power

Question #17 of 100

A developer who wants to develop a new subdivision must submit

A)

an existing land-use study to the planning commission.

B)

a site plan to the zoning board of adjustment.

C)

a subdivision plat map to the planning commission.

D)

a thoroughfare study to the Department of Transportation.

Question #18 of 100

A lender quotes a mortgage loan of $265,000 at 4.5% interest. The monthly payment is $1,342.72. How much of the second monthly payment will apply to the principal reduction?

A)

$350.28

B)

$351.72

C)

$347.65

D)

$348.97

Question #19 of 100

If all legislated requirements have previously been met, an active broker in Florida may hold an active license in

A)

Florida only.

B)

Florida and any other state or foreign country whose licensing laws have not been violated.

C)

any other state or foreign country whose licensing laws have not been violated, provided the Florida license is placed on inactive status.

D)

Florida and any other state whose licensing laws have not been violated; however, a licensee may hold only one active license at any one time.

Question #20 of 100

In Florida, real property is assessed on January 1 of each year, and property taxes become a lien on the property on

A)

January 1, the same year.

B)

December 31, the same year.

C)

November 1, the same year.

D)

April 1, the next year.

Question #21 of 100

A real estate brokerage company is a transaction broker for a buyer. The buyer wants to purchase a new home so the sales associate takes him to three model centers listed by three competing real estate companies. The sales associate must give a written no brokerage relationship notice to

A)

the model home employees at each model center.

B)

the buyer.

C)

no one.

D)

the owner-developer of each new homes subdivision.

Question #22 of 100

Which element is NOT essential in a valid real estate sale contract?

A)

Competent parties

B)

A legal objective or purpose

C)

The vendor’s signature

D)

An earnest money deposit

Question #23 of 100

A real estate license may be revoked without prejudice for which action?

A)

Issuance of a license by mistake of the Commission

B)

Culpable negligence

C)

Conversion

D)

Failure to account and deliver escrow funds

Question #24 of 100

The documentary stamp tax on deeds is based on the

A)

entire sale price of the property.

B)

amount of the mortgage loan.

C)

amount of the new mortgage.

D)

"new" money involved in the transaction.

Question #25 of 100

A tenant signed a 10-year lease requiring a monthly base rent of $1,900, plus 2% of all monthly gross sales volume over $95,000. The tenant also must pay all property taxes, insurance, and other costs normally considered property owner's costs. This is a

A)

fixed lease.

B)

variable sale lease.

C)

net lease.

D)

gross lease.

Question #26 of 100

Title to real property is technically conveyed when the deed is

A)

recorded in the public records.

B)

acknowledged.

C)

signed and witnessed.

D)

voluntarily delivered and voluntarily accepted.

Question #27 of 100

You are appraising a five-year-old, single-family home. The livable area is 60 feet by 50 feet. The garage is 24 feet by 20 feet. According to figures obtained from a cost-estimating service, the base construction cost per square foot of livable area is $103 and $92 per square foot for the garage. Calculate the reproduction cost new of the structure.

A)

$358,440

B)

$353,160

C)

$303,720

D)

$345,440

Question #28 of 100

The duties of a real estate licensee, owed to a buyer or a seller who engages the real estate licensee as a single agent, do NOT include

A)

dealing honestly and fairly.

B)

limited confidentiality, unless waived in writing by a party.

C)

presenting all offers and counteroffers in a timely manner, unless previously directed otherwise in writing.

D)

loyalty.

Question #29 of 100

A woman has homesteaded her residence. Her home has an assessed value of $279,000. She is a nonveteran who is totally and permanently disabled as a result of a serious car accident. She is also legally blind. What is her cumulative county tax exemption on her homesteaded residence?

A)

$50,500

B)

$55,000

C)

$51,000

D)

$26,000

Question #30 of 100

A broker has a listing priced at $120,000. An uninformed buyer offers $125,000 for the property. The broker buys the property for $120,000, then sells it for $125,000. Which statement is FALSE?

A)

The broker has violated her duties to the seller.

B)

The $5,000 profit is called a "secret profit."

C)

The $5,000 profit is called an "overage."

D)

This is legal as long as the broker withdraws from the listing first.

Question #31 of 100

Which statement does NOT describe a planned unit development?

A)

Industrial parks are a welcomed offshoot of the PUD concept.

B)

Dwelling units are typically clustered, with planned green space areas between clusters.

C)

The open space areas are maintained by a community association.

D)

A variety of types of housing may be used.

Question #32 of 100

The financial term applied to the use of borrowed funds to finance the purchase of an office building is

A)

disintermediation.

B)

intermediation.

C)

liquidity.

D)

leverage.

Question #33 of 100

Essential elements of a deed do NOT include

A)

signature of a competent grantee.

B)

voluntary delivery and acceptance.

C)

good or valuable consideration.

D)

signature of two witnesses.

Question #34 of 100

When the Fed wants to ease a tight money supply, it may

A)

buy Treasury securities.

B)

issue new Treasury securities.

C)

increase the discount rate.

D)

raise the reserve requirement.

Question #35 of 100

A licensee makes a statement that is material to the transaction as though it were a fact when the licensee does not know whether the statement is true or false, and the buyer relies on the statement. As a result of the statement made by the licensee, the buyer suffers damages. This situation constitutes

A)

deceptive services.

B)

culpable negligence.

C)

fraud.

D)

breach of trust.

Question #36 of 100

A residential zone requires at least 7,500 square feet per lot. The developer is reserving 25 percent of the land for streets, sidewalks, and a community center. The tract of land for the development consists of 175 acres. How many residential lots are available for development?

A)

813

B)

762

C)

1,106

D)

254

Question #37 of 100

Depreciation (cost recovery)

A)

does not include the mortgaged portion of an apartment building in the amount to be depreciated.

B)

may be taken on a principal residence.

C)

is an allowable deduction that requires no current outlay of cash.

D)

includes the cost of land in the amount to be depreciated.

The statute of frauds applies to

A)

the transfer of personal property.

B)

acts of fraud by licensees.

C)

instruments of conveyance of real property.

D)

all legal contracts and other documents.

Question #39 of 100

The statute of limitations is the authority that outlines the

A)

period of time during which a contract may be enforced.

B)

requirement that real estate sale contracts be in writing.

C)

essential elements of a contract.

D)

remedies available in case of breach.

Question #40 of 100

A man owns a farm in fee simple. He deeds the farm to a friend until the friend dies, at which time a woman will acquire a fee simple title to the farm. The woman's interest in the farm is a

A)

reversion estate.

B)

life estate.

C)

fee simple estate.

D)

remainder estate.

Question #41 of 100

A developer purchased three oceanfront lots, each measuring 75 by 110 feet, for $20 per square foot. The developer later sold the lots for $200,000 each. What was the developer's percentage of profit on the sale of the three lots? (Round to nearest percentage.)

A)

21%

B)

2%

C)

25%

D)

18%

Question #42 of 100

A broker who changes the business address must notify the Commission of the address change within how many days?

A)

5

B)

60

C)

10

D)

30

Question #43 of 100

A buyer who obtains a mortgage loan that covers the purchase of a condominium plus furniture, appliances, and other personal property, such as towels and kitchen utensils, has a

A)

wraparound mortgage.

B)

blanket mortgage.

C)

package mortgage.

D)

chattel mortgage.

Question #44 of 100

The following taxes were paid at the closing of a new home: $1,540 state documentary stamp tax on the deed, $693 state documentary stamp tax on the note, and $396 state intangible tax on the mortgage. What was the purchase price of the home?

A)

$440,000

B)

$220,000

C)

$346,500

D)

$198,000

Question #45 of 100

A property closes on June 10, with the day of closing charged to the buyer. The buyer is assuming the seller's mortgage loan with its principal balance of $227,500 at 4.5% interest. Which entry will appear on the closing statement?

A)

Credit to seller and debit to buyer in the amount of $252.43

B)

Credit to seller and debit to buyer in the amount of $589.01

C)

Debit to seller and credit to buyer in the amount of $589.01

D)

Debit to seller and credit to buyer in the amount of $252.43

Question #46 of 100

The purchase price of a business minus the value of the tangible assets of that business equals the intangible assets of the business. This is called

A)

goodwill.

B)

common stock.

C)

real property.

D)

personal property.

Question #47 of 100

Which variable does NOT influence demand?

A)

Availability of construction loans

B)

Consumer tastes and preferences

C)

Income of consumers

D)

Availability of mortgage credit

Question #48 of 100

A licensed real estate broker has been hired by a lender to appraise a home for a buyer who has applied for an FHA loan. Which statement is TRUE regarding this situation?

A)

The broker’s license entitles him to appraise this property.

B)

The broker may not charge for this assignment.

C)

The broker is required to be a state-certified appraiser to perform this appraisal assignment.

D)

The broker may not accept this appraisal assignment because to do so is a conflict of interest.

Question #49 of 100

A sales associate received a $5,000 earnest money deposit from a buyer. She immediately delivered the deposit to her broker. The broker deposited the check on the third business day into his general operating account.

A)

This is the proper procedure for handling earnest money deposits.

B)

This is an example of commingling of escrow funds.

C)

This is the proper procedure, provided the broker uses a title company that has trust powers.

D)

The broker is guilty of dishonest dealing by trick, scheme, or devise.

Question #50 of 100

A transaction broker does NOT have which duty?

A)

Full fiduciary duties to both the buyer and the seller

B)

Duty of using skill, care, and diligence in the transaction

C)

Duty of accounting for all funds

D)

Duty to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer

Question #51 of 100

Question ID: 554130

The bundle of legal rights associated with real property ownership does NOT include the right of

A)

control.

B)

disposition.

C)

possession.

D)

intent.

Question #52 of 100

If you have located a township numbered T2S, R4E, the township due south of that township is

A)

T2N, R1E.

B)

T2S, R3E.

C)

T3S, R4E.

D)

T2S, R5E.

Question #53 of 100

Which action is NOT a requirement under TILA-RESPA?

A)

Give mortgage applicant the loan estimate disclosure within three business days

B)

Give a copy of the special information booklet to the mortgage applicant within three business days

C)

Give mortgage applicant a list of competing lenders so that the consumer can comparison shop for the best rate

D)

Give the mortgage applicant a closing disclosure at least three business days before closing

Question #54 of 100

A sales associate who is employed by an owner-developer who owns properties in the name of various entities may be issued

A)

multiple licenses.

B)

a commercial license.

C)

a group license.

D)

a branch office license.

Question #55 of 100

A mortgage in which changes in the interest rate may cause changes in the monthly payment amount is called

A)

a partially amortized mortgage.

B)

a graduated-payment mortgage.

C)

an escalator mortgage.

D)

an adjustable-rate mortgage.

Question #56 of 100

The seller instructs the listing broker not to show his home to members of a protected class. The broker informs the seller that this is a violation of fair housing laws, but the seller is insistent. Which choice is the broker's best course of action under these circumstances?

A)

Withdraw from the listing agreement

B)

Follow the seller’s instructions because to do otherwise would violate the broker’s fiduciary duties to the seller

C)

Report the seller to the DBPR

D)

Report the incident to the Fair Housing Administration

Question #57 of 100

Individuals who solicit mortgage loans, accept applications for mortgage loans, and negotiate the terms of new mortgage loans on behalf of a borrower are called mortgage

A)

agents.

B)

lenders.

C)

loan originators.

D)

finders.

Question #58 of 100

Constructive notice is

A)

information advertised in the newspaper.

B)

provided by recording in the public records.

C)

information learned by reading, seeing, or hearing.

D)

notarizing a conveyance.

Question #58 of 100

Constructive notice is

A)

information advertised in the newspaper.

B)

provided by recording in the public records.

C)

information learned by reading, seeing, or hearing.

D)

notarizing a conveyance.

Question #59 of 100

Which valuation assignment is exempt from USPAP requirements?

A)

Appraisal assignment conducted by a real estate broker for the purpose of an estate sale

B)

Broker’s price opinion prepared for a lender concerning a short sale

C)

Appraisal for the purpose of refinancing the first mortgage loan

D)

Appraisal report prepared by a certified appraiser

Question #60 of 100

The government survey method of legal description

A)

features a critical reference called the point of beginning.

B)

was used in the 13 original colonies.

C)

has as a basis a principal meridian and a base line.

D)

is the most accurate method.

Question #61 of 100

An appraiser has assigned the following weights to three adjusted sale prices:

• Comparable 1: $322,500, 40% weight

• Comparable 2: $319,000, 35% weight

• Comparable 3: $312,000, 25% weight

What is the recorded estimated market value of the subject property?

A)

$318,650

B)

$286,225

C)

$270,275

D)

$317,425

Question #62 of 100

The formula to calculate the overall capitalization rate is

A)

NOI × value (or price).

B)

NOI ÷ owner’s equity.

C)

debt service × value (or price).

D)

NOI ÷ value (or price).

Question #63 of 100

A comparable property has one more bedroom ($8,000) and is on a slightly larger lot ($2,000) than the subject property. The comparative market analysis requires a net adjustment of

A)

minus $8,000 to the comparable property.

B)

minus $10,000 to the comparable property.

C)

plus $2,000 to the subject property.

D)

plus $10,000 to the subject property.

Question #64 of 100

Which governmental entity must be informed when the FREC takes disciplinary action against a real estate licensee?

A)

Florida Department of Administrative Law

B)

County courthouse where the licensee resides

C)

Division of Firearms and Tobacco

D)

Division of Florida Condominiums, Timeshares, and Mobile Homes

Question #64 of 100

Which governmental entity must be informed when the FREC takes disciplinary action against a real estate licensee?

A)

Florida Department of Administrative Law

B)

County courthouse where the licensee resides

C)

Division of Firearms and Tobacco

D)

Division of Florida Condominiums, Timeshares, and Mobile Homes

Question #65 of 100

Which term refers to a situation where, during the early years of a loan, the principal balance increases?

A)

Graduated payments

B)

Negative amortization

C)

Positive leverage

D)

Reverse annuity

Question #66 of 100

Which information is confidential?

A)

Minutes of the meetings of the FREC

B)

An examinee’s grade on the state licensing examination

C)

The name and address of the principal broker for a particular brokerage entity

D)

Final disciplinary action taken against a licensee

Question #67 of 100

Which statement is FALSE regarding a corporation for profit that is doing business as a real estate broker?

A)

The corporation must be registered with the FREC.

B)

There must be at least one officer who is an active real estate broker.

C)

All stockholders must be registered with the FREC as inactive brokers.

D)

The broker must file the articles of incorporation with the Florida Department of State.

Question #68 of 100

In the cost approach, estimating accrued depreciation involves estimating

A)

the value of allowable expenses.

B)

effective gross income.

C)

the amount of allowable cost recovery.

D)

the loss in value of the improvements.

Question #69 of 100

A man is a 72-year-old retired college professor. The local lender to whom the man applied for a 30-year mortgage denied the man's loan application, even though he has sufficient income from his pension plan and an excellent credit history.

A)

This is an example of redlining.

B)

This is a violation of fair housing laws.

C)

The lender’s actions violate the Equal Credit Opportunity Act.

D)

The lender’s actions are legal because it is unlikely that the man will survive the term of the loan.

Question #70 of 100

Business brokers appraise businesses using appraisal methods similar to real estate appraisal EXCEPT

A)

liquidation analysis.

B)

working capital analysis.

C)

asset appreciation analysis.

D)

stock, bond, and debenture analysis.

Question #71 of 100

The Florida Real Estate Commission is empowered by law to

A)

impose prison sentences up to 60 days.

B)

reprimand, fine, or otherwise discipline licensees.

C)

levy fines up to, but not exceeding, $500.

D)

assess damages resulting from breach-of-contract suits.

Question #72 of 100

In relation to section 1 of a township, section 12 is due

A)

west.

B)

east.

C)

north.

D)

south.

Question #73 of 100

Which expense is subtracted to derive NOI?

A)

Income taxes

B)

Depreciation

C)

Mortgage payments

D)

Vacancy and collection losses

Question #74 of 100

A seller transfers title to a buyer with a general warranty deed. In which clause of the deed does the seller define the quality of ownership interest conveyed

(description exceeds maximum possible length)