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FLORIDA REAL ESTATE EXAM
TEST QUESTIONS WITH 100%
CORRECT ANSWER S LATEST
UPDATE
Question 1: A statutory deed in which the grantor makes
no warranties to the grantee about the quality or extent of
the title being conveyed is:
- Special Warranty Deed
- Bargain and Sale Deed
- Quitclaim Deed
- General Warranty Deed
CORRECT ANSWER : A quitclaim deed in Florida does
not offer any warranty to the grantee. It conveys whatever interest the grantor has on the property. It is usually used to make corrections or to cure clouds on title. The quitclaim deed does not contain the clause of seizin and uses the words quitclaim, remise and release. The general warranty deed is the deed that conveys title with all guarantees to the grantee.
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Question 2: Which of the following is not a characteristic
advantage of real estate investment?
- Rate of Return
- Leverage
- Liquidity
- Equity Buildup
CORRECT ANSWER: The advantages of real estate as
an investment are the rate of return, tax advantages, hedge against inflation, leverage and equity buildup. Real Estate is not considered a liquid investment in the short term.
Question 3: When a developer plans for a large project in
Florida, studies need to be performed regarding the project's impact in the community before the city
approves it. These studies are summarized in a:
- Planned Unit Development filing
- Environmental Impact Statement
- Special Exceptions Rider
- Developments of Regional Impact Statement
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CORRECT ANSWER : An Environmental Impact
Statement is a summarized report that shows the long term impact of the project on waste-disposal systems, air quality, traffic, the local economy and so forth.
Question 4: Mark bought a house in an old neighborhood
and remodeled it with high-end materials. He even hired a home decorator to give the last touches to it. The house looked beautiful, and Mark was pleased with it. However, a year later his employer offered him a better job in a distant location, and Mark decided to sell the house before relocating. After all, he would make good money on the sale because all the improvements he did to the house, and he will be able to buy in his new location instead of renting. Mark hired realtor Trevor who came by the house and prepared a Comparative Market Analysis for Mark. The results of the report were very disappointing for him because the house has not acquired enough equity to make the profit he imagined. This is an
example of:
- External Obsolescence
- Overimprovement
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- Market Conditions
- Physical Obsolescence
CORRECT ANSWER : An overimprovement occurs
when an owner invests more money than what is reasonably expected to recapture. External obsolescence is any loss in value due to changes in the neighborhood or area where the house is located, for example, an active Railtrack, a new speedway and anything that can make the location less desirable by prospective buyers. External obsolescence is incurable because it is out of the control of the property owner. Physical obsolescence is directly related to the condition of the property such as wear and tear, structural issues, defective air conditioning, old roof.
Question 5: How many acres are there in the N 1/4 of the
NE ½ of the SW ¼ and the SE ½ of the NW ¼?
- 80 acres
- 20 acres
- 100 acres
- 2.5 acres