50 Most Asked Questions On Florida Real Estate State Exam Questions And Correct Detailed Answers (Verified Answers) Already Graded A+

50 Most Asked Questions On Florida Real Estate State Exam Questions And Correct Detailed Answers (Verified Answers) Already Graded A+

• How many acres and square feet are there in the legal description N1/2 of the SE1/4

of the NW1/4 and the N1/2 of the S1/2 of the SE1/4 of the N1/4 of section 11?

• 20 acres and 3,450,000 square feet
• 30 acres and 1,306,800 square feet
• 30 acres and 2,613,600 square feet
• 80 acres and 3,484,800 square feet

Correct Answer: b. 30 acres and 1,306,800 square feet

• If the subject property has three bedrooms and the comparable property has two

bedrooms, and a bedroom is worth $10,000, the correct adjustment is to:

• Add $10,000 to the subject value.
• Add $10,000 to the comparable value.
• Subtract $10,000 from the subject value.
• Subtract $10,000 from the comparable value.

Correct Answer: b. Add $10,000 to the comparable value.

• William, who holds title in fee simple of a 35-acre property, deeds the land to Robert

until Robert dies. At that time, Tonya is to receive title to the land. Which statement is true concerning this situation?

• William has a life estate and Robert has a remainder estate.
• William and Robert have life estates.
• Robert has a life estate and Tonya has a remainder estate.

• William has a life estate.

Correct Answer: c. Robert has a life estate and Tonya has a remainder estate.

• Which of the following statements concerning market value is true?
• Market value is the most probable price a property should bring in a competitive and

open market under all conditions, requisite to a fair sale under certain guidelines published by Fannie Mae and Freddie Mac.

• Market value is the same as price.
• Market value is the value an investor would typically pay.
• Market value is the same as the cost of the property.

Correct Answer: a. Market value is the most probable price a property should bring in a competitive and open market under all conditions, requisite to a fair sale under certain guidelines published by Fannie Mae and Freddie Mac.

• Which mortgage clause allows the mortgagee the right to demand the outstanding

loan balance plus accrued interest in the event that the borrower sells or transfer any interest in the property without the lenders prior written consent?

• Due-on-sale Clause
• Escape clause
• Acceleration clause
• Estoppel clause

Correct Answer: a. Due-on-sale Clause

• When a lender declares all the unpaid balance due and payable as a result of

default, the lender is exercising which clause in a mortgage?

• Due-on-sale clause
• Escape clause
• Acceleration clause
• Estoppel clause

Correct Answer: c. Acceleration clause

• Which of the following is not true concerning kickbacks?

• Not all kickbacks are illegal.
• A real estate licensee may not be paid a fee for referring buyers to a title company.
• Kickbacks cannot violate RESPA (Real Estate Settlement Procedures Act).
• All kickbacks are illegal.

Correct Answer: d. All kickbacks are illegal.

• What is the status of a sales associates' license if he/she does not complete the

required post licensing education prior to his/her first renewal cycle?

• Involuntary inactive
• Void and inactive
• Suspended
• Null and void

Correct Answer: d. Null and void

• How is the binder deposit shown on the Closing Disclosure Form?
• Credit to the buyer, debit to the seller
• Credit to the seller
• Credit to the buyer
• Debit to the buyer, credit to the seller

Correct Answer: c. Credit to the buyer

• Which of the following describes leverage?
• Leverage is the same as cash flow.
• Leverage is the use of borrowed funds to purchase assets or to finance an investment.
• Leverage can only be positive.
• Leverage is when an investor uses his equity to finance an investment.

Correct Answer: b. Leverage is the use of borrowed funds to purchase assets or to finance an investment.

• Which of these describes of a non-freehold estate that includes a definite

specified amount of time?

• Tenancy at will
• Estate by the entireties
• Life estate
• Estate for years

Correct Answer: d. Estate for years

• What are the documentary stamp taxes on the deed on a property that sold for

$468,310 and has an assumed mortgage of $125,000 and a new mortgage of $205,000 with a list price of $500,000?

• $3,278.80
• $4,158.20
• $2,450.00
• $3,194.10

Correct Answer: a. $3,278.80

• Broker Kenny has decided to send out flyers to increase his revenue. Kenny had his

licensed assistant send out 500 flyers to business owners in the city. On the flyers it was explained that for every buyer or seller that they send Kenny, he will give them a referral fee of $50. Which applies?

• Brokers can give referral fees to anyone, sales associates cannot.
• No violation has occurred because the referral fee was not over $50.
• Kenny is in violation of F.S. 475 and could be punished by the Commission.
• Kenny can give referral fees to anyone he chooses, but only if they provide an actual

referral to him.Correct Answer: c. Kenny is in violation of F.S. 475 and could be punished by the Commission.

• Which of the following is a set of administrative rules developed by The Florida

Real Estate Commission?

• Chapter 621j
• F.S. 120