Real Estate Final Exam (150 Questions ) #1

A real estate licensee has a buyer agency agreement. What is the seller in this situation?

An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform?

When can a landlord evict a disabled blind or disabled tenant from the premises?

4. Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer's broker, the seller and the listing broker?

A buyer bought a property without telling the seller of his intended purpose for the property. The contract contains no contingency clauses and it is a properly executed contract. After the closing, the buyer is unable to obtain the zoning he needs for his commercial project. What is the contract at this stage?

6. The seller and the buyer finally agreed to a purchase price of $203,500 with the closing to occur on June 15. The taxes for the year in the amount of $2,500 have not been paid by the seller. (Taxes are paid in arrears). How much would the tax proration amount to, and how would it appear on a full settlement statement? Base your answer on a 365 day year, and the buyer is responsible for the day of settlement.

A seller listed his home for six months on February 26. On April 29, a buyer made an offer on the property. The listing broker presented the offer to the seller on April 30. The seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the closing took place on June 15, when did the listing expire?

The sellers listed their property for six months on February 26 for $522,500. They agreed to pay the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made an offer on the property on March 29 for $510,000. The seller countered the offer on April 1 at $517,500, and the buyer accepted the counter offer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement?

The seller and the buyer agreed to a purchase price of $270,000 with the closing to occur on June 15. The seller's loan balance after the June 1 payment was $170,000. with an interest rate of 6%.The monthly payment was $1,800 principal and interest. What was the loan balance the day of closing, and how much interest did the seller owe the bank?

The buyer and seller agreed to a purchase price of $310,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement?

A home improvement company was negotiating with a homeowner to add on two rooms to a home. The company agreed to take a second mortgage as long as the homeowner also included the rest of the property in the loan. The company and the homeowner agreed to a price and the company provided the necessary disclosure form on Monday and the homeowner signed the agreement at noon the following day. Assuming that the week had five business days, until what time could the homeowner rescind the loan?

The seller under a land contract is called

On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How long did he have the loan?

Are recording fees and title insurance premiums part of the Truth in Lending statement?

A mortgage broker

The Smiths' purchased a residence for $750,000. They made a down payment of $150,000 and agreed to assume the seller's existing mortgage, which had a current balance of $230,000. The Smiths' financed the remaining $370,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a

On a $500,000 loan the borrower is required to pay two points. How much does the borrower have to pay the lender?

The discount points charged by a lender on a federal VA or FHA loan are a percentage of the

An increase in the availability of money would lead to which effect?

When the amortized payment of a mortgage remains constant over the period of the loan but leaves an outstanding balance to be paid at the end, this payment is called

In an installment land contract, what type of title did the seller retain?

Which of the following is true of a second mortgage?

Usury MOST nearly means

A borrower bought a $174,000 house with no down payment. The loan was probably

A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on the loan was $1,400. What was the interest rate on the loan?

Which of the following describes a mortgage that requires principal and interest payments at regular intervals and is called the liquidation of debt by periodic installment until the debt is satisfied?

Which is the most common form of mortgage?

Under RESPA, a copy of Real Estate Settlement Costs And You must be given

Which of the following is a closing expense paid by the seller?

An impound or reserve account MOST benefits whom?

What are impound or reserve accounts also known as?

The HUD-1 form is

A VA loan may be granted for the purchase of a one-family to four-family property if

Which of the following would usually occur in a sale-and-leaseback transaction?

A standardized yardstick expressing the true annual cost of borrowing is expressed as the what?

RESPA would prohibit which of the following acts?

In most states, by paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is this right called?

The lender is required, under RESPA, to provide a detailed "Good Faith Estimate (GFE)" statement at the time of loan application or within three business days to

In which of the following markets may a lender sell a loan that a mortgage banker has previously originated?

Though 30 year loans are more common, 15 year loans are considered standard, conventional loans.

Under an FHA graduated payment mortgage, which of the following fluctuates over the term of the loan?

Who are graduated payment mortgages aimed to>

The maximum permissible "loan to value ratios" are

Are there any state-mandated qualifying requirements for conventional loans?

A buyer wants to take out an FHA loan. The broker should refer the buyer directly to

An owner advertised "beautiful acreage; only $5,000 down; owner will personally finance down payment." Would this be in violation of the Truth in Lending Act?

What is Regulation Z?

A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an example of interim financing to the mortgage company and is called

The primary purpose of Truth in Lending is to

Why is the RESPA closing statement allowed to be examined on or before closing?

If a single parent is applying for a real estate loan, when would the fact have to be revealed that part of the parent's income is from child support?

When the lender under a deed of trust requires title insurance, who would be the most likely person to pay for it?

Trustor is another name for?

The Pickets are purchasing a home for $780,000 and the lender is giving them a 90% loan at 5% interest, plus a 2% loan origination fee. How much is the loan origination fee?

Discrimination is prohibited in lending practices under

A buyer assumes the mortgage. How is the owner relieved of the liability?

Which type of loan will result in the largest reduction of the principal balance most quickly?

Who is the largest purchaser in the secondary market?

What does Fannie Mae stand for?

Which transaction requires a securities license?

Who is NOT an originator of primary loans?

A buyer wanted to use a promissory note for consideration on the purchase of a property. Can he do this?

If advertised alone, which would be in violation of Truth in Lending?

Why would a mortgagee have an appraisal on the property?

Seller Jolita lists her house with Broker Fred. Fred then buys Jolita's house and collects the agreed-upon commission. This is an example of

An owner was selling his own home. Can he advertise the down payment?

Which is true about restrictive covenants?

Looking at shopping centers in the appraisal process, the social fiber of the community and distances from schools is called

Which best describes why a buyer purchases a home using the market data approach?

How many feet in one yard?

A scale drawing shows a room to be 3 inches by 4-1/2 inches. Carpet, which is $15 per square yard, is to be installed in the room. If the scale is 1 inch to 4 feet, how much would it cost to install the carpet?

A tenant leased 3,000 square feet at $10 per square foot and 8% of gross income. The total annual rent she paid was $60,000. What was the gross income on which she paid percentage rent?

The Rose family owns a home in a semi-rural area, which is about five years old. Recently announced plans for a new regional airport will place their home directly in line with a main runway ending 1 mile before their home. If the airport is constructed, will this diminish the value of the Rose Home?

Mrs. Jones, an appraiser, is appraising a single family residence for which she has located six closely comparable properties, all sold within the past six months. The subject property is rented for $1,500 per month. It is a custom-built home, approximately three years old. Mrs. Jones would probably give the most weight in her final estimate of value to which of the following appraisal methods?

Which is the best example of functional obsolescence?

A real estate agent should tell the buyer, his customer, which of the following?

A square is 1/8 of a mile by 1/8 of a mile. How many acres is this?

The first step in an appraisal is

A recorded subdivision plat is used in the

An appraiser is usually paid

The primary survey line running north and south in the rectangular survey system is the

The zoning commission of Jefferson County requires that all new construction in a specific area adhere to a specific type of architecture. What type of zoning is this?

The appraisal approach most likely to be used in valuing a public library building would be

Physical deterioration is considered curable whenever

The economic life of an investment can be described as

When an appraiser correlates the three approaches into a final estimate, he

Apartment houses in an area were selling for $100,000 and a buyer offered $100,000 for an apartment building. The buyer is operating on the principle of

A feature found in a comparable property that is not present in the subject property will result in

Can brokers provide Legal Advice?

When an appraiser uses the phrase "effective age," he is referring to

The Adams family purchased the largest and most expensive house in a new subdivision. Five years later, when they were ready to move, they discovered the monetary value of the home had gone up proportionately less than the other houses in the neighborhood. This phenomenon is an example of the principle of

In valuing a single family residence by the comparison approach, an appraiser would make adjustments to

Some expenses paid at closing must be __________ between the buyer and the seller. The most common items that fall into this category include taxes, insurance, and utilities.

How does one determine the gross rent multiplier?

Restrictive covenants that run with the land

In doing a market analysis, an appraiser found a recently sold property where the owners had just gone through a divorce. The property had been listed for $260,000 for 3 months but was purchased for $170,000 by one of the spouses. Should the appraiser use this as a comparable?

* What is an arm's length transaction?

For the past 30 years, the Lois has operated a neighborhood grocery store. Last week the city council passed a zoning ordinance that prohibits packaged food sales in the area where the Lois's grocery store is located. The store is now an example of a/an

With how many states does Florida have a reciprocal, or mutual recognition agreement with?

* Name the 8 states that Florida has a reciprocal, or mutual recognition agreement with?

At age 18, Leslie is considering what to do when she graduates from high school in 9 months. Can she begin taking prelicense coursework during her final year of high school?

* What must a listing agreement include?

After a long dispute with a bankrupt and corrupt Florida broker, the Gonzalez family was awarded a judgment for $12,500 in actual damages and $87,500 in punitive damages, for a total of $100,000. They were then surprised find that the Real Estate Recovery Fund would not cover all $100,000. Which of the following is TRUE?

Ralph is a sales person with Sunlight Real Estate Brokers and when he shows his client Ben a property listed by Xavier Realty, Ben decides to make an offer on the property. Ralph notices that Ben has written the earnest money deposit check to be made payable to the wrong name. Which of the following statements accurately describes the error and ideal corrective action?

Marhall has a court order against a bankrupt broker for $75,000 in damages caused by the broker's misconduct. How much will Marshall receive from the Recovery Fund?

Alejandro is a salesperson at Rococo Real Estate Brokerage in Pensacola. While visiting his daughter in Daytona, Alejandro sees a property offered by Daytona Diligent Realty which he proceeds to sell to a client back in Pensacola. Alejandro receives 5% commission from Daytona Diligent Realty. Is there anything wrong with this situation, and if so, what is the key legal condition?

What type of Acts were developed to make laws aimed at controlling zoning and property use?

What Florida Act was initiated to limit urban sprawl and encourage a more compacted development of land use?

Mario signed an exclusive listing with Paula to sell his apartment complex. After a few weeks Mario cancelled the listing agreement and contacted an auction house to turn the property quickly. Paula feels she is owed a commission. Is she correct?

What are the goals of planning and zoning?

Beth wanted a new entrance sign to her brokerage. She took the old sign down, but following a problem with the supplier, after 2 months still hadn't put up a new one. Beth received a citation for not having a proper entrance sign displayed. If Beth wants to dispute the citation which of the following is TRUE?

John has been farming his land in Florida for nearly 22 years. His principal crops are cabbage and oranges. He also raises pigs and horses for sale on his 280-acre property. He has consistently used conservation methods and fertilizing to maintain the value of the land. He has also reforested where possible on his property. He is currently seeking some tax relief. Is he likely to get relief?

***What is the Florida Green Belt Law?

Wilma accepted an offer on her home from a buyer who provided a $3,500 earnest money deposit, but thereafter neither she nor her broker heard from the buyer. What is the most accurate way the broker should handle this situation and the $3,500?

Moe relocated from Brooklyn to Florida, qualified for a Florida broker's license and opened a small office in Palm Beach. His family back in Brooklyn say he should open an office in Brooklyn too. Could Moe do this legally?

Lane, a broker, listed a small cottage near the causeway at $250,000, but the seller finally had to accept an offer of only $230,000. When Lane met with the parties, both the buyer and her client asked her to prepare a second contract in the amount of $250,000 "so the mortgage company will give us a higher loan." Is there anything wrong with Lane following his client's and the buyer's wishes?

If the board determines a proposed site does not conform with existing land use plans and zoning ordinances, what steps may the board take?

Broker Marge was swamped, and asked Jilly and Kelly to help with 1 of her clients. Jilly is a non-licensed secretary and Kelly is a real estate licensee working in a non-representative role with the seller. Who could help Marge and provide the seller with a comparative market analysis (CMA)?

Eve and her husband Adrian have homesteaded property. Adrian owns investment real estate in severalty and has expressed his desire that his investment property would go to his friend Rex. When Adrian dies testate, which of the following statements is TRUE regarding the situation?

When Theresa's neighbor Joe died, his son informed Theresa that he was going to enforce the easement he and Joe had running along the back edge of Theresa's property. Theresa said that since Joe hadn't enforced it in 18 years, he had lost the right because the easement automatically terminated in that amount of time. Was she correct?

Millie and Britt have owned 2 homes for the past 7 years, 1 in Manhattan and 1 in Tampa. 6 years ago they separated, and Millie decided to stay in Manhattan, with Britt electing to live in Tampa. They now want to sell the house in Manhattan and buy Millie a condo. Can Britt and Millie exclude up to $500,000 of gain when they sell the home?

What are the 5 major zoning classifications of property?

Salesperson Jerri helped her sister Summer get a job with Calhoun Title Company. As a way of saying thanks, Summer sends Jerri a $200 referral fee from the Title Company for every transaction that Jerri closes through Calhoun Title. Knowing Florida real estate law, Jerri had a lawyer friend add a phrase in her sale and purchase documentation stating that the buyer "agrees to use Calhoun Title Co." Which of the following statements is accurate regarding this situation?

A sales associate is selling her home and wants to promote it through her firm while acting as the sales agent. What must she include in any advertisements?

When a licensee moves from the state of Florida to another state, what must they do?

When Ang, owner and principal broker for ABC Realty, helped his niece Seria purchase a property, he did not have Seria sign a disclosure form. According to Florida law, what kind of brokerage relationship will Ang have with his niece?

Rita fell in love with a home built in 1905. She was surprised when the listing broker gave her a lead-based paint disclosure form at closing. Which of the following is TRUE?

When Rex obtained his Florida sales associate license he misrepresented the facts and concealed that his insurance license in another jurisdiction had been revoked more than 20 years before. Which of the following is a mandated penalty according to Florida law?

What is the acronym for the process of adverse posession to take place in Florida?

*** What does P.O.A.C.H. stand for?

Eldon arrived in Coral Gables and found the perfect apartment. He signed a written agreement with the property owner, but the contract had no date of termination. Which of the following most accurately describes Eldon's situation?

A buyer is visiting open houses and runs across a nice looking home for sale. Can the listing agent show the buyer the home?

Which best describes a subagent?

A mortgage in Florida may not contain both a prepayment penalty clause and which of the following?

Private home ownership in Florida is subject to which of the following?

After failing his Florida licensing exam Doug decided to change his career path and began working as an administrator for the FHA. With FHA approval, Doug gave lists of foreclosed properties to broker Paige, under the provision that Paige would pay him a percentage of commissions earned by her company on properties from that list. Which of the following is TRUE?

Beacon Real Estate has signed agency agreements with the Platts and the Browns. The Browns like the Platts' home and want to make an offer. Can Providence represent both parties?

A broker has just secured a new listing. If he wants to erect a "For Sale" sign on the property, what must he do first?

What is the correct term for a Florida real estate licensee working under the direction of a broker?

A sales associate, Jose, entered agency agreements with both the Cunninghams (sellers) and Marissa (buyer). Jose helped Marissa write an offer for $5,000 less than the asking price and presented it to the Cunninghams. Jose pressured the Cunninghams to accept the lower offer since the house had been on the market for 3 months with little interest. Is this allowable?

When applying for the Florida real estate licensure examination, what does a candidate need to submit?

In Florida can a real estate agent list a property for sale based on the "net price"?

Which of the following brokers is in violation of the recent updates to Florida statutes regarding brokerage offices? Which of the following is in violation of brokerage office and sign requirements?

Cody bought a house in the fall which was found to have a leaky roof during the following spring's rainstorms. The sellers had discussed the roof leaks with transaction broker, but the transaction broker decided not to divulge those details to the Cody and now claims Cody did not specifically ask about the roof. Which is TRUE?

Valencia, a real estate sales associate, is developing a website to promote her services. Which of the following CAN she post on her site?

To comply with the statutes, which of the following actions must broker Haley take when she moves her office from Winter Park to Sanford?

What is an accepted practice when it comes to managing a sales escrow account?

A broker has had his license suspended for misrepresentation. Which of the following is TRUE?

Can a successful sales associate who is ambitious to generate new business, place a series of advertisements in the newspaper?

A broker has had his license suspended for failure to properly market his listings. The Whitfields obtain a civil court judgment against him for the damages resulting from his action. Which of the following represents the maximum Recovery Fund payment authorized by the updated statutes for this situation?

* What is the maximum payment from the Recovery Fund to 1 person or from 1 transaction?

What are the maximum aggregate payment from the Recovery Fund for multiple claims against a single licenseeis?

With regards to the 2003 changes to the Florida Statutes, which of the following limitations has been placed on FREC in the collection of fees for the Recovery Fund? FREC can assess fees

A sales associate decides to sell his own property without using a broker. Which of the following is TRUE regarding any advertising the sales associate may wish to do?

Which of the following is considered a material fact that MUST be disclosed per the Florida statutes?

With regards to appraisal services, which of the following holds TRUE?

A real estate licensee is acting as a transaction broker facilitating the sale of a commercial building. Which of the following is correct regarding transaction brokerage in Florida?