Take A Practice Test! Start testing your knowledge today, please enter your information below to proceed. NameEmailPhone Number1) A sales associate works for ABC Realty Company in Naples, Florida. While the sales associate is visiting a friend in St. Petersburg, he sees a waterfront lot listed by XYZ Realty. The sales associate sells the lot to his friend, and XYZ Realty pays the sales associate a 10% commission. As long as the sales associate's real estate license is active, it is legal for XYZ Realty to pay the sales associate a commission. The sales associate may be compensated by XYZ Realty because it is the listing company. For this transaction to be legal, the 10% commission must be classified as a finder's fee. Both the sales associate and the broker of XYZ have violated Florida's Real Estate License Law.2) A sales associate changes her residence from Gainesville, Florida, to Tallahassee, Florida. She remains employed by the same brokerage company. Which statement is TRUE? The sales associate must notify the DBPR of her change in mailing address within ten days after the change. Because the sales associate did not change employers, she does not need to notify the DBPR. The sales associate must notify the DBPR of the change in residence within 60 days of the change. The sales associate's broker must notify the DBPR of the change in mailing address.3) The seller accepted an offer on a home. The contract was contingent on several inspections. Several weeks prior to the closing, the sale fell through due to one of the inspections. Which statement is TRUE regarding the retention of documents? The broker is not obligated to retain a copy of the property file because the transaction did not close. The broker is required to keep a copy of the property file for five years. The broker may dispose of the "dead files" after two years. The broker is only obligated to retain documentation regarding disbursement of the earnest money deposit.4) A transaction broker does NOT have which duty? Accounting for all funds Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer Using skill, care, and diligence in the transaction Loyalty5) Which statement is TRUE regarding townships? A township is a parcel containing 36 square miles. A township contains 640 acres. Townships are a part of the metes-and-bounds method of legal description. Checks are smaller units that make up a township.6) The process by which private property is acquired through judicial process to build a police station is called condemnation. escheat. foreclosure. hypothecation.7) A broker wants to become associated legally with Carol Homes Realty, Inc. What is the licensee required to do to maintain an active broker license with the company? The licensee must have an ownership interest in the company. The licensee must be registered as an officer or director of the corporation. The licensee's name must appear on the brokerage entrance sign. The licensee must register with the Florida Department of State.8) An acknowledgment is a notary seal. recorded document. declaration by the signer that the signing is of his or her own free will. constructive notice.9) A 130-unit apartment complex contains 80 one-bedroom apartments that rent for $750 per month and 50 two-bedroom apartments that rent for $950 per month. The one-bedroom units are 10% vacant, and the two-bedroom units are 5% vacant. Calculate the projected annual effective gross income for this investment property. $107,500 $1,189,500 $1,290,000 $1,344,00010) The income capitalization approach to value requires collection of data pertaining to reproduction costs of improvements. expected future expenses. market evidence of depreciation. recent land sales.11) Three individuals purchase a property without the right of survivorship. Their estate is referred to as a joint tenancy. leasehold estate. tenancy in common. tenancy by the entireties.12) A candle company pays the property owner rent in the amount of $500 per month plus 3% of gross sales revenue. The candle company has entered into what type of lease agreement? Gross lease Percentage lease Indexed lease step-up lease13) A broker has appointed two sales associates to be designated sales associates in a real estate transaction. Chapter 475, F.S., does NOT require the buyer and seller to each sign an asset disclosure indicating that each has assets of at least $1 million. that the designated sales associates give the buyer and seller the single agent disclosure explaining the duties of a single agent. that the designated sales associates give the buyer and seller a disclosure explaining how confidential information will be handled. the transaction to involve a residential sale.14) A buyer makes a written offer on a seller's property. The seller makes a counteroffer, which the buyer accepts. The listing broker conveys the buyer's written acceptance to the seller. At this point, the offer becomes an express contract. a parol contract. a ratified offer. a contingent contract. 15) An applicant responded "No" to the question on her real estate application regarding whether she had ever been found guilty of a crime. Four years ago, the applicant was divorced and lost her job. She found another job a short time later but went ahead and cashed two unemployment checks totaling $700. The applicant went to court for illegally cashing the unemployment checks. She repaid the $700 and adjudication of her guilt was withheld. What action, if any, will the FREC likely take? Because the incident took place four years ago, the FREC will probably take no action. Because adjudication of guilt was withheld, the Commission will not have any information concerning the case. The Commission will likely consider this to be a case of obtaining a license by fraud, misrepresentation, or concealment and revoke or suspend the license, or deny a license if not yet issued. The FREC will likely issue a notice of noncompliance.16) A broker had an exclusive listing to sell a small apartment complex. The owner canceled the listing agreement before an offer was presented and then entered into a lease-management agreement with a third party. Is the broker entitled to a commission? Yes, because the seller has entered into an agreement with another broker Yes, if the broker can find a buyer for the property prior to the expiration date specified in the original listing agreement No, because the broker did not meet the conditions for payment of commission prior to the cancellation of the agreement No, because the broker did not have an exclusive right to lease agreement with the owner17) A sales associate has a dispute with his former broker over a commission. What recourse does the sales associate have to resolve the commission dispute? The sales associate can request the FREC to issue an escrow disbursement order. The sales associate can sue the principal named in the listing contract that is in dispute. The sales associate can sue his former broker and request the civil courts to resolve the matter. The sales associate can seek relief from the Real Estate Recovery Fund.18) A property owner sometimes falls behind in paying his debts. He owns homesteaded property. The homesteaded property is protected from which debt? The tax collector's office for delinquent property taxes on the principal residence A pool company for an in-ground swimming pool at the owner's principal residence, which he charged on his credit card Delinquent mortgage payments on his principal residence An overdue installment loan to purchase furniture for his principal residence19) A sales associate sells a property for $98,500. The listing broker has agreed to pay the sales associate's broker 40% of the total sale commission of 8%. The sales associate receives 55% of all commissions the sales associate earns. How much commission did the sales associate receive? $1,418.40 $1,733.60 $2,127.60 $2,600.4020) A broker may NOT establish an escrow account in a Florida credit union. commercial bank. savings association. stock brokerage account.21) Annual property taxes are $1,460. Closing is June 1. Using the 365-day method of proration, how is this entered on the composite closing statement? Charge day of closing to the buyer. Debit seller $608, credit buyer $608 Debit buyer $856, credit seller $604 Debit buyer $856, credit seller $856 Debit seller $604, credit buyer $60422) A broker who changes the business address must notify the Commission of the address change within how many days? 60 30 10 523) A real estate licensee indicates on his business cards that he is a REALTOR®. However, the sales associate has not paid dues to the Florida REALTORS® for two years and has allowed his membership to lapse. Can the FREC discipline this licensee for using the REALTOR® logo on his business cards? No, the FREC has no jurisdiction over the use of the term REALTOR®. Yes, the FREC can fine the licensee $300 for misrepresenting that he is a REALTOR®. No, only the Florida Association of REALTORS® can discipline this licensee. No, the term REALTOR® is used interchangeably with the term sales associate.24) If a real estate sales associate fails to complete the 45-hour post-licensing course prior to the expiration of the initial license, what happens to the license? The license automatically reverts to an involuntary inactive license. The license remains inactive until the licensee completes the education requirement and pays a late fee. The license reverts to inactive status and the licensee is issued a notice of noncompliance. The license becomes null and void.25) A broker chooses not to maintain an escrow account. Which statement is TRUE regarding this situation? Brokers are required to maintain an escrow account. If the title company is handling the closing, the title company may hold the earnest money deposit in escrow. If an attorney is conducting the closing, the attorney may hold the deposit in escrow provided the broker is a signatory on the account. The broker is subject to disciplinary action by the FREC.26) Two close friends own a nursery as joint tenants with right of survivorship. One owner died unexpectedly. Who now owns the nursery? If the deceased owner was married at the time of her death, her interest in the nursery will descend to her spouse. The surviving owner will have to wait until the deceased owner's estate is probated before taking sole ownership of the property. If the deceased owner has minor children, the children will receive a remainder estate for the deceased owner's interest in the nursery, and the surviving owner will take a life estate. The surviving owner becomes sole owner of the nursery by operation of law.27) A sales associate's first license renewal period expires at the end of March. What education is required for the sales associate to renew the license? 14-hour continuing education course 45-hour post-licensing course Broker prelicense course 7-hour core law course 28) What is the maximum allowable homestead exemption for a 65-year-old widower who is legally blind? $25,500 $30,500 $50,500 $51,00029) A Presbyterian church owns a nursing home for its members. The church admits only church members to the nursing facility. Is this legal? No, this is a violation of the Fair Housing Act. Yes, the church is exempt under the Fair Housing Act and may restrict the use of the facility to its members. The church has violated the Civil Rights Act of 1866. The church may only exclude others if they paid cash for the facility and did not finance the purchase of the nursing home facility. 30) If a prospective buyer suspects that there is an encroachment on a property she is considering purchasing, to which document should she refer? A recent survey seller's deed Title insurance policy Blueprints31) What is the distance between the south boundary of Section 1 and the north boundary of Section 36 in the same township? 3 miles 4 miles 5 miles 6 miles32) A sales associate decided to move from Tallahassee, Florida, to Macon, Georgia. Which statement(s) is (are) TRUE? The sales associate must notify the DBPR of her change in mailing address within 15 days after the change. The sales associate must notify the DBPR of the change in residency within 60 days of becoming a nonresident. The sales associate must place her real estate license in an inactive status. The sales associate is exempt from all renewal requirements while living out-of-state and for six months thereafter.33) A mortgage must include a due-on-sale clause. a legal description. a granting clause. the mortgagee's signature.34) The loan-to-value ratio offered by a local financial institution is 75%. If a buyer wishes to acquire a property selling for $129,500, the buyer will need to make a down payment of $1,727. $5,180. $32,375. $97,125.35) A licensed real estate sales associate conducted an appraisal for a fee. The FREC found the licensee to be in violation of the Uniform Standards of Professional Practice. Real estate licensees are not required to abide by the USPAP. The licensee is subject to suspension or revocation of his or her real estate license. Only the Appraisal Board can impose a penalty in this case—the FREC does not have authority over appraisal matters. Real estate sales associates may not conduct appraisals for a fee unless they are also certified or licensed real estate appraisers.36) A sales associate regularly does cold calling for potential listings. The sales associate called a party who informed the associate that he was on the national do-not-call list and did not want to be disturbed. Which statement applies to this situation? The sales associate can be fined for calling a person who is listed on the do-not-call list. The sales associate made an honest mistake and should jot down the phone number so that she won't disturb the man again. Real estate licensees are not bound by the national do-not-call restrictions. As long as the sales associate initially identified herself and the name of the brokerage company for which she works, she has acted properly.37) The monthly payment for principal and interest on a $92,000 loan at 7½% for 30 years is $643.28. What amount of the second month's payment will be applied to principal? $68.28 $68.71 $574.57 $57538) A railroad track easement is which type of easement? Appurtenant Necessity Prescription In gross39) A written disclosure form is NOT required regarding which brokerage relationship? Create a transaction broker relationship Transition from single agent to transaction broker Appoint designated sales associates in a qualifying nonresidential transaction Written disclosures are required for all of the brokerage relationships described above 40) If a broker receives conflicting demands on escrowed property, the broker must notify the FREC, in writing, within 15 business days of the last demand and institute one of four settlement procedures unless the transaction concerns a time-share unit. concerns a residential sale contract on HUD-owned property. involves commercial real estate. concerns the sale of a business opportunity on leased land.41) The purpose of the Real Estate Settlement Procedures Act is to ensure uniform credit costs. that elderly applicants have an opportunity to secure long-term financing. that buyers are informed regarding the amount and type of charges they can expect at closing. that the annual percentage of interest is disclosed.42) A sales associate finds a buyer for another brokerage firm's listing. The buyer gives the sales associate an earnest money deposit check made payable to the sales associate personally. What should the sales associate do? Deposit the check in his own account and then immediately write a check payable to the listing company Put a limited endorsement on the back of the check to the listing broker's escrow account Return the check to the buyer and request that the buyer make out a new check payable to the escrow account of the sales associate's broker Cash the43) A couple have been married for 40 years. They have owned and sold several homes during their marriage and have rolled over the gain from the sale of previous homes. The husband is planning on retiring at age 60, and so the couple has decided to sell their spacious family home and buy a smaller condo. How does the current tax law affect their capital gains on the sale of their family home? The couple can take their one-time tax exclusion on the gain from the sale of their home. As long as the couple meets the two-year principal-residence test, they may exclude up to $500,000 of gain when they sell the home, if filing jointly. The couple must pay all of the deferred gain on the previous homes. However, any gain on their current residence is excluded up to $500,000, if filing jointly. The couple must pay a reduced long-term capital gain on the rollover only.44) Which survey method is used when developed subdivisions have been recorded? survey method Lot and block method subdivision method Metes-and-bounds method45) Can a real estate licensee working in a nonrepresentative role with a seller provide the seller a CMA? No, providing a CMA for a seller can only be done in a transaction broker or single agent capacity. No, providing a CMA would constitute a fiduciary relationship with the seller. Yes, provided the seller signs a notice that states that the seller will not construe the CMA to create an agency relationship. Yes, there is no restriction in Chapter 475, F.S., to prevent a licensee from preparing a CMA for a buyer or seller. 46) A prospective tenant wants to install a ramp to the front door and handrails in the bathroom of a bungalow cottage. Which applies here? If the landlord is the property owner (no management company is involved), the owner does not have to allow the tenant to make modifications to the property. The owner is responsible for the cost of modifying the dwelling, provided the tenant agrees to sign a one-year (or longer) lease agreement. The tenant may make the modification at her own expense. Owners of less than four units do not have to allow a tenant to make modifications to a residential dwelling.47) A licensed real estate sales associate recently purchased a condo and moved out of his former apartment. Is the sales associate required to notify the DBPR? As long as the sales associate continues to work under the same broker, there is no need to notify the DBPR. The sales associate must notify the DBPR of the change in his current mailing address within ten days after the change. The sales associate must notify the Commission within 60 days of a change in residency. If the sales associate's license is inactive, the licensee is not required to notify the DBPR. 48) A broker was served a citation. The broker wants to dispute the citation. Which statement applies to this situation? The broker may dispute the citation within 30 days of its being served. The broker must pay the fine and then petition for a reconsideration. The broker must pay the citation without challenge or risk further disciplinary action. The broker may dispute the citation by attending the next scheduled Commission meeting.49) The market value of a site is determined by its current use. zoning. highest and best use. physical characteristics.50) If probable cause is found to exist, the probable cause panel will direct the DBPR to file a formal complaint against the subject of the investigation. Which statement is TRUE? At this point the licensee will be scheduled to attend an informal hearing before the FREC. At this point the findings of the probable cause panel are reduced to a stipulation and mailed to the licensee. The licensee is entitled to either a formal or informal hearing, or the licensee may agree to a stipulation. The FREC makes a determination regarding whether to dismiss the case.51) The Commission's authority to adopt administrative rules is an exercise of which power? Executive Administrative Quasi-judicial Quasi-legislative52) A landlord has become frustrated that one of her tenants has not paid his rent, so while the tenant is away, the landlord has a locksmith change the locks on the apartment. The landlord is within her rights as a property owner-landlord to regain possession of the property. The landlord's actions are a violation of Florida's Landlord and Tenant Act. As long as the landlord posted a three-day notice and the three days have passed, she may legally change the locks. Only the sheriff may legally change the locks.53) A previous owner has stipulated that future owners of a tract of land may not operate any type of business on the property that produces a toxic substance of any kind and might potentially harm a natural spring on the property. Where would a real estate licensee interested in listing this property find this information? EPA property report Local zoning code Deed restrictions survey of the property54) A broker wants to change one of his branch office locations. What must he do? The broker must send a letter to the DBPR notifying it that the broker is transferring his branch office registration from one location to another. The broker must fill out a change of address form only. The broker must register the new location and pay the appropriate fee. The broker must register the new location without paying an additional fee.55) Broker Ellen Sammis of Newcomer Realty, Inc., is opening a real estate office. What information is NOT required on her exterior entrance sign? Ellen Sammis Licensed Real Estate Broker REALTOR® Newcomer Realty, Inc.56) Which business structure is designed to protect personal assets? General partnership sole proprietorship Corporation Joint venture57) Which individual is required to have a real estate license? A mortgage broker working for a lender in the loan processing department A property manager who is paid an annual salary and is provided an apartment A broker who exclusively markets business opportunities A person who sells cemetery lots58) A broker purchased a list of FHA foreclosure properties from an employee of the FHA. The broker has promised to pay the FHA employee a percentage of all commissions earned by her company resulting from FHA foreclosure sales on the list. The broker has violated Chapter 475, F.S., by compensating an unlicensed person for performing services that require a real estate license. The broker may compensate the FHA employee because he is a salaried employee of a government agency. FHA foreclosure properties are exempt from the Florida Real Estate License Law. The broker is allowed to compensate the FHA employee as long as he does not provide real estate services to the buyer and seller. 59) Under the Truth-in-Lending Act, certain words trigger disclosures of the amount or percentage of down payment, the terms of repayment, and the annual percentage rate. Which statement is NOT a "triggering term"? The amount of down payment in a credit sale transaction The amount of any payment The number of payments The name of the lender60) A commercial tenant pays a pro-rata share of the property taxes, hazard insurance, and utilities. The tenant has what type of lease? Net lease Expense lease Prorated lease Percentage lease61) A tenant rents a college apartment and pays rent on the tenth of every month. The tenant has a written agreement with the property owner; however, there is no specified termination date. Which statement is TRUE? The tenant is a tenant at sufferance. The tenant must be given at least 15 days' notice to vacate prior to the end of the monthly period. The tenant is a holdover tenant. The tenant must be given 30 days' notice to vacate if the owner wants to end the lease.62) A Florida broker has multiple licenses. She is an active broker for Brokerage Company One as well as Brokerage Company Two. A sales associate for Brokerage Company One has procured a listing as a single agent to sell a condo. A sales associate for Brokerage Company Two is a single agent of a buyer who has entered into a contract to purchase the condo. Which applies? Because the Florida broker is the broker of both brokerage companies, this is an illegal dual agency relationship. This is a legal arrangement because two separate real estate firms are involved. The buyer and seller must agree to allow the Florida broker to transition to a transaction broker to complete this sale. The Florida broker has violated Chapter 475, F.S.63) A court awarded a judgment to a couple against a broker for $30,000 actual damages and for $45,000 punitive damages regarding a real estate brokerage transaction. What is the maximum amount of reimbursement available to the couple from the Real Estate Recovery Fund? $30,000 $50,000 $75,000 $150,00064) Which expense associated with a principal residence is deductible for income tax purposes? Depreciation Operating expenses Maintenance costs Property taxes65) A husband and wife own homesteaded property. The husband owns investment real estate in severalty. The husband dies testate and bequeaths his investment real property to his sister. Which statement is TRUE? The sister is the remainder of the deceased husband's entire estate. The wife owns the principal residence in severalty and 50% of the investment property. The wife may file for an elective share of the investment property in addition to having 100% interest in the principal residence. The wife is entitled to all of the homesteaded property only.66) A broker obtained a judgment from a Florida court against the seller for an unpaid commission. May the broker record the judgment? Real estate licensees are prohibited from doing anything that would create a lien on an owner's property. The broker is prohibited from recording a judgment against a principal. The broker's only recourse is to seek relief from the Real Estate Recovery Fund. The broker may record the judgment in the county where the debtor owns property.67) At age 19, an applicant was charged with one count of petty theft. She paid a fine during a ten-minute court proceeding and was not sentenced to probation or any other penalty. Nine years later, the applicant is completing her sales associate application. How should the applicant respond to the question on the application concerning whether she has ever been convicted of a crime, found guilty, or entered a plea of guilty or no contest even if adjudication was withheld? The applicant was a minor when the incident occurred, so it was expunged at age 21. Because the applicant was not sentenced, there is no record of the petty theft, and therefore, she does not need to disclose the incident on her application. The applicant must disclose the petty theft incident on her application. The crime will most likely not be discovered in the fingerprint check, so she can simply answer "No" to the question on her application. 68) The N½ of the NE¼ of the SW¼ and the S½ of the SE¼ of a section contains 2.5 acres. 20 acres. 80 acres. 100 acres.69) An individual is eligible to seek recovery from the Real Estate Recovery Fund if the seller was an active licensed sales associate selling the home for-sale-by-owner. at the time the real estate contract was executed, the sales associate's license was in inactive status. the claim is based on a final judgment against the active licensee involved in a real estate brokerage transaction. the individual wishes to avoid a court process.70) A customer obtained a judgment against a real estate licensee for negligent conduct involving a real estate brokerage transaction. The licensee had an inactive license at the time that the negligence occurred. If the customer is unable to collect on the judgment, can the customer be reimbursed from the Real Estate Recovery Fund? Yes, it is irrelevant that the real estate license was inactive. Yes, provided the amount of the claim does not exceed $25,000. No, the license must have been active when the incident occurred. No, because of negligence on the part of the licensee.71) Two friends discuss the purchase and sale of a tract of land over a beer one Friday night. They jot down the sale price and other terms and conditions on a bar napkin and each signs his name on the napkin. This is an unenforceable contract. a valid contract. a parol contract. an offer.72) If the Fed wants to stimulate a sluggish economy, it may choose to raise the reserve requirement. sell securities in the open market. decrease the prime rate. lower the discount rate.73) A sales associate decides to mail personalized notepads to the residents of a neighborhood. The notepads include the associate's picture plus her name, phone number, and email address. The sales associate paid the cost of printing and mailing the notepads. Which statement applies to this situation? The notepads are a form of real estate advertisement and, therefore, must include the name of the brokerage firm. The name of the brokerage firm is required in newspaper advertisements and For Sale signs only. Because the sales associate paid for the printing and mailing of the notepads, she can choose the wording and content. The sales associate needs to add her license status to the information printed on the notepads. 74) A sales associate has become frustrated with buyers who use his time and expertise and then make an offer to purchase through another real estate company. To help "tie" prospective buyers to the sales associate, he requires prospective buyers to deposit $500 with the real estate company to show intent to deal through the sales associate's broker. If the buyer makes a purchase, the $500 is applied to the earnest money deposit. However, if the prospective buyer does not make a purchase, the deposit is forfeited. Which statement is TRUE regarding this arrangement? This is a constructive way to prevent buyers from jumping from one sales associate to another. The $500 is an illegal kickback. The $500 is a trust fund and must be paid to John's broker. The $500 is a referral fee.75) The following are paired relationships EXCEPT 36 sections—1 township. 24 miles square—check. range—north-south. meridian—east-west.76) A buyer made an offer to purchase and paid a $500 earnest money deposit. The seller accepted the offer. A few weeks later, the transaction fell through. Neither the buyer nor the seller has made a claim on the escrowed deposit. Attempts to contact the buyer and seller have been unsuccessful. What should the broker do with the earnest money deposit? The broker should give the buyer and seller at least one month to make a claim for the deposit. The broker should notify the FREC that the broker is holding abandoned funds. The broker should refund the deposit to the buyer because that is who paid the earnest money deposit. The broker must notify the FREC within 15 business days that the broker has a good-faith doubt.77) A buyer makes an offer to purchase a home built in the early 1970s that is listed by a real estate company. Prior to signing the contract for purchase and sale, what MUST occur? The buyer must give an earnest money deposit to the broker. The seller must disclose any known presence of lead-based paint in the home. The buyer must sign a release waiving the right to a paint inspection. The buyer must have the home inspected for lead-based paint.78) A property owner purchased a weather vane. He bolted the weather vane to his roof ridge. The weather vane is personal property. a fixture. constructive property. considered air rights.79) The broker of record for a real estate company is working with a buyer as a buyer's single agent. The buyer has become interested in a property listed by the brokerage as a transaction broker. Which statement applies to this situation? The real estate company may serve as a transaction broker with the seller and as a single agent for the buyer to complete this transaction. The broker must appoint a designated sales associate to represent the buyer before completing the transaction. The real estate company cannot be a transaction broker for one party and a single agent for the other party. The broker may complete the transaction but he can only collect a commission from the buyer.80) The statement that there must be at least a two-hour fire wall rating between attached common walls would most likely appear in the zoning code. building code. condominium documents. deed restrictions.81) A landlord is a graduate student. The landlord owns a duplex that she rents to college students. The landlord has an inactive real estate license and collects the rent on her own behalf. Which statement is TRUE regarding this situation? The landlord is required to maintain deposit money and advance rents in compliance with the Florida Residential Landlord and Tenant Act. Because there are only two dwelling units, the landlord does not have to set aside rental deposits and advance rent. Because the landlord has a real estate license, she must set aside the rental deposits. Owners are exempt from rental deposit requirements stipulated in the Florida Residential Landlord and Tenant Act.82) Variables that influence demand do NOT include availability of mortgage credit. population size and household composition. availability of skilled labor. consumer tastes or preferences.83) Buyer and seller have entered into a real estate contract. The broker neglected to include a closing date on the contract. Which statement is correct? This is a valid and enforceable contract. This is an unenforceable contract. The contract is void. The broker can be disciplined for fraud and misrepresentation.84) A property sold two years ago for $120,000. An appraiser estimates that properties in the market area where the parcel is located have appreciated 5% annually. How much is the property worth today, assuming no other factors? $126,000 $132,000 $132,300 $144,00085) A buyer is considering making an offer to purchase a 50-unit beachfront time-share development from the seller. The buyer and seller have requested that a licensed real estate sales associate act as a single agent representative for each of them. Which statement applies to this situation? The sales associate must give the buyer and seller the single agent disclosure. This arrangement is a violation of Chapter 475, F.S. Because this is residential property, it does not qualify for designated sales associate representation. The buyer and the seller must each have assets in excess of $1 million.86) An investor owns a 30-unit apartment complex that produces a net monthly rental income of $9,200. This monthly income represents a 9.5% annual return for the owner during the first year of ownership. What did the investor pay for the building? (Round to the nearest dollar.) $96,842 $116,211 $1,042,100 $1,162,10587) Which entity may NOT register as a real estate broker? Nonprofit corporation sole proprietorship Corporation sole Limited liability partnership88) The subject property is a three-bedroom, two-bath home. A comparable property is a three-bedroom, two and one-half-bath home. An appraiser has determined that the extra half bath is worth about $2,200. What adjustment should the appraiser make? subtract $2,200 from the estimated value of the subject property. subtract $2,200 from the comparable's transaction price. Add $2,200 to the comparable's transaction price. Add $2,200 to the estimated value of the subject property.89) A home is located in the historic district of Tampa. The home was built in the early 1900s. The seller gives the buyer a lead-based paint disclosure at the closing. Which statement applies to this situation? The law requires the seller to give the buyer the disclosure prior to entering into a contract. Homes located in a historic district are exempted from the lead-based paint disclosure requirements. The seller's actions are in compliance with the law. The disclosure is only required if the buyer intending to occupy the property has children under age five.90) A sales associate has not completed his continuing education prior to the expiration of his license. In a previous renewal cycle, the sales associate completed his post-licensing requirement. What should the sales associate do? Mail in his renewal card and fee prior to the expiration of his license and then do his continuing education requirement at the earliest opportunity. Complete his education requirement and send in the renewal fee, renewal application, late fee, and the appropriate DBPR form to reactivate his license. Complete 21 hours of in-class instruction. Retake the 45-hour post-licensing course.91) A Florida-licensed broker wants to register an office located in New York City as his principal real estate office. May he do so? No, the brokerage office must be located within the State of Florida. Yes, a broker's principal office may be located outside the State of Florida as long as the broker's escrow account is maintained in a Florida institution. No, only a branch office may be located outside the State of Florida. Yes, a broker's registered principal office may be located outside the State of Florida. However, the broker must have all escrow funds held in trust by a Florida-based title company.92) A broker receives a $100 referral fee from a title company for every transaction that closes through the title company. Because of this, the broker has inserted a sentence into his standard contract for sale and purchase requiring the buyer to use that particular title company. Which statement(s) applies to this situation? This is a legal referral fee because the title company is disclosed to the buyer and seller in the sale and purchase agreement. The broker has violated the Florida Fair Housing Act. The title company has violated the Truth in Lending Act. Both the broker and the title company have violated the Real Estate Settlement Procedures Act. 93) The township located due East of T1N, R1E is T1N, R2E. T1N, R1W. T2N, R1E. T1S, R2E.94) Which parties constitute an arm's length transaction? Medallion Financial Services, Inc., to Medallion Taxi Enterprises, Inc. Mrs. Sammis, mother, to Dean Sammis, son Mr. Perez to Miss Root (not related) Microfirm, Inc., to Net, Inc. (Microfirm is a shareholder of Net, Inc.) 95) To be in compliance with federal laws regarding lead-based paint, which requirement does NOT apply regarding dwellings built prior to 1978? sellers and lessors must disclose the presence of known lead-based paint in residential dwellings. sale contracts and leases must include specific lead-based paint warning and disclosure language. Buyers and tenants must acknowledge that they have received the warning and disclosure. Buyers must have the property inspected for lead-based paint.96) The city is proposing to pave the streets in your neighborhood at a cost of $47 per foot. The city will absorb 30% of the cost. Your lot has a front footage of 110 feet. Assuming there are homes on both sides of the street, calculate the amount of your paving assessment. $1,551.50 $1,809.50 $3,619 $5,17097) The adjusted sale prices of three comparables are $87,900, $88,500, and $82,750. The appraiser applies weights of 30%, 50%, and 20%, respectively. Calculate the indicated value of the subject property. $86,383 $87,170 $87,950 $88,10098) A broker sold a home for $150,000. The broker then, at the request of the buyer and seller, prepared a second contract at $180,000 to present to a mortgage company. Which statement is TRUE regarding this situation? As long as the property will appraise for $180,000, this is legal. As long as the seller agrees to the dual contract arrangement, this is legal. It is illegal to enter into a dual contract for the purpose of securing a larger loan. The broker has violated his fiduciary duty to the seller.99) A prospective tenant was evicted from a previous apartment for failure to pay rent. The prospective tenant has inspected an apartment and wishes to enter into a lease agreement with the landlord. May the landlord refuse to rent to this tenant? No, this would be a violation of the Fair Housing Act. Yes, provided the tenant is not disabled. Yes, based on the tenant's poor credit history. No, this would be a violation of the Fair Credit Act. 100) Discount points are a charge to financial lenders for borrowing from the Federal Reserve Bank. an up-front charge, usually paid by the developer to lower the buyer's mortgage interest rate for the first one to three years. up-front charges to the FHA for mortgage insurance. a charge by a lender to increase the interest yield on a mortgage.