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Florida Real Estate - Practice exam 100 Questions And Correct Detailed Answers (Verified Answers) Already Graded A+
- An active Florida broker accompanies her husband when he goes on active military
duty in Ohio for five years. She is not active in real estate in Ohio. Upon their return to
Florida, she:
• A) Must place her license in involuntary inactive status.• B) Need not complete any continuing education or reactivation education for those five years and for up to 2 years after honorable discharge.• C) Must complete 14 hours of continuing education before practicing again.• D) Must retake the state licensing exam.Correct Answer: B) Need not complete any continuing education or reactivation education for those five years and for up to 2 years after honorable discharge.
2. To substitute a borrower in a mortgage with another borrower is called:
• A) Subordination • B) Novation • C) Assignment of mortgage • D) Hypothecation
Correct Answer: C) Assignment of mortgage
- A tenant signs a lease for less than a year. What is his interest in the property?
• A) Freehold estate • B) Remainder estate • C) Life estate • D) Leasehold estate
Correct Answer: D) Leasehold estate
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- Which is an example of a functional obsolescence?
• A) Peeling paint on the exterior • B) One car garage • C) A nearby noisy highway • D) Termite damage to the foundation
Correct Answer: B) One car garage
- In case of breach by the buyer, most real estate contracts include a provision that
the earnest money be regarded as:
• A) Liquidated damages to the seller • B) Punitive damages to the broker • C) Compensatory damages to the buyer • D) Specific performance funds
Correct Answer: A) Liquidated damages to the seller
- A home was purchased with a down payment of $36,000 and a loan of $200,000 at
6.5% for 30 years. Monthly payments are $1,264.14. What is the loan to value ratio?
• A) 75%
• B) 80%
• C) 85%
• D) 90%
Correct Answer: C) 85%
(Explanation: $36,000 + $200,000 = $236,000 Purchase price; $200,000 ÷ $236,000 = 0.8474 or 85% rounded.)
- A rental investment property is scheduled to close on September 10. The buyer gets
day of closing. The rent is $1900. How much is debited and/or credited at closing and to whom?• A) $1330 Credit to Seller and $1330 Debit to Buyer • B) $1330 Credit to Buyer and $1330 Debit to Seller
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• C) $570 Credit to Buyer and $570 Debit to Seller • D) $633 Credit to Buyer and $633 Debit to Seller
Correct Answer: B) $1330 Credit to Buyer and $1330 Debit to Seller
(Explanation: There are 30 days in September, so there are 21 days that the seller owes the buyer including the day of closing. Divide $1900 by 30 = 63.33 x 21 days = $1,330)
- What are the similarities between a Business Brokerage and a Real Estate
- Pam's home has an assessed value of $301,000. She qualifies for the Florida
Brokerage?• A) 1) Both deal with Real Property 2) Both require a Real Estate License 3) Both involve Long-term Liabilities • B) 1) Both deal with Personal Property only 2) Both require a Series 7 License 3) Both involve Short-term Liabilities • C) 1) Both deal with Intangible Assets 2) Both require a Business Degree 3) Both involve Equity only • D) 1) Both deal with Chattels 2) Both require an Appraisal License 3) Both involve No Liabilities Correct Answer: A) 1) Both deal with Real Property 2) Both require a Real Estate License 3) Both involve Long-term Liabilities
homestead exemption. The area she lives in has the following taxes: County tax rate is 8.6 mills, City tax rate is 4 mills and the school district tax rate is 6.1 mills. How much will the property taxes be?
• A) $3,500.50
• B) $4,846.20
• C) $5,120.00
• D) $5,628.70
Correct Answer: B) $4,846.20
(Explanation: $301,000 - $50,000 = $251,000 x .0126 [8.6 + 4] = $3,162.60; $301,000 - $25,000 = $276,000 x .0061 = $1,683.60; $3,162.60 + $1,683.60 = $4,846.20)
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- A sales associate was issued a citation for failing to timely notify the Commission
of her change of address. How many days does the licensee have to either pay the citation or file an objection to the alleged violation?• A) 10 days • B) 15 days • C) 30 days • D) 60 days
Correct Answer: C) 30 days
11. Effective age means:
• A) The actual chronological age of the property • B) How old the building or house appears to be • C) The remaining useful life of the property • D) The age recorded on the original building permit
Correct Answer: B) How old the building or house appears to be
12. The indestructability of land refers to:
• A) Scarcity • B) Situs • C) Durability • D) Immobility
Correct Answer: C) Durability
- If religion is a protected class under the Fair Housing Act, how can a church restrict
the renting of homes to only members of their church?• A) Churches and private clubs are exempt as long as they do not discriminate in accepting membership.• B) Religion is no longer a protected class under the Fair Housing Act.• C) Only commercial properties are exempt from the rule.• D) They must pay an exemption fee to the federal government.
