REE 3043 TEST QUESTIONS AND
ANSWERS ALL CORRECT
When existing loans are sold by originators to investors or from one investor to another,
these transactions are the secondary mortgage market. - Answer ✔ Secondary
mortgage market
The value of money changes over time - Answer ✔ Time value of money
Earning may not be there, could lose your principle, liquidity risk ( it is not easily
converted into cash ) - Answer ✔ Financial risks
Present value of your cash inflows minus the present value of your cash outflows Or
difference between cost and value, must know your required rate of return when using
the NPV analysis - Answer ✔ NPV ( Net Present Value )
That discount rate that equates the value of the cash outflows and cash inflows to $0.00
- Answer ✔ IRR ( Internal Rate of Return )
Document that has the positive and negatives of investing in a property. Used for
regulations ( Reg. ) D Underwritings - Answer ✔ PPM ( Private Placement
Memorandum )
Periodic payments are sufficient to pay off the full amount of the loan plus all of the
interest by the end of the term.
- was a common type of mortgage until a few years ago. Starting to come back now. -
Answer ✔ Fully amortizing loan
You pay only the interest on the loan for the entire loan and then pay the principle at the
end of the loan. - Answer ✔ Interest only loan
___________ bring buyers and sellers together and earn a percentage of the contract
price - Answer ✔ brokers
Brokers and salesperson also do leasing such as office, retail, industrial and for
apartments - Answer ✔ true
_____________________ the first license one would obtain. can work a whole career
without getting a broker's license - Answer ✔ salesperson license
salesperson splits commission with broker - Answer ✔ true
, When you have a salesperson license you have to work under a broker - Answer ✔ true
Commission must be paid to the __________ who then pays salesperson - Answer ✔
true
_________________________ sales persons and brokers act as transactional agents,
they represent the transaction buyer and seller - Answer ✔ transaction broker
How to get a salesperson license - Answer ✔ 36 hour course
pass school goldcoast exam
pass state exam
In florida, salesperson and broker licenses have to renew every - Answer ✔ 2 years
Renewal License requirements Salesperson - Answer ✔ 14 hours every 2 years
45 hours for salesperson in first two years
Renewal License requirements Broker - Answer ✔ 60 hours includes 14 hours
14 hours in 2nd renewal
simply someone who belongs to a board to realtors
must be licensed to be in board
if licensed, you do not have to be in board
900 +/- yearly dues
to facilitate sales by offering the MLS to members - Answer ✔ realtor
When seller hires firm, they are hiring the broker - Answer ✔ all offers must be
presented to seller
buyers of property can also hire brokers - Answer ✔ true
Sales person is an _________ and an _________ of the broker. - Answer ✔ employee
agent
Sales person cannot do anything to harm the broker - Answer ✔ true
There is a __________ relationship between property owner and broker - Answer ✔
fiduciary
ANSWERS ALL CORRECT
When existing loans are sold by originators to investors or from one investor to another,
these transactions are the secondary mortgage market. - Answer ✔ Secondary
mortgage market
The value of money changes over time - Answer ✔ Time value of money
Earning may not be there, could lose your principle, liquidity risk ( it is not easily
converted into cash ) - Answer ✔ Financial risks
Present value of your cash inflows minus the present value of your cash outflows Or
difference between cost and value, must know your required rate of return when using
the NPV analysis - Answer ✔ NPV ( Net Present Value )
That discount rate that equates the value of the cash outflows and cash inflows to $0.00
- Answer ✔ IRR ( Internal Rate of Return )
Document that has the positive and negatives of investing in a property. Used for
regulations ( Reg. ) D Underwritings - Answer ✔ PPM ( Private Placement
Memorandum )
Periodic payments are sufficient to pay off the full amount of the loan plus all of the
interest by the end of the term.
- was a common type of mortgage until a few years ago. Starting to come back now. -
Answer ✔ Fully amortizing loan
You pay only the interest on the loan for the entire loan and then pay the principle at the
end of the loan. - Answer ✔ Interest only loan
___________ bring buyers and sellers together and earn a percentage of the contract
price - Answer ✔ brokers
Brokers and salesperson also do leasing such as office, retail, industrial and for
apartments - Answer ✔ true
_____________________ the first license one would obtain. can work a whole career
without getting a broker's license - Answer ✔ salesperson license
salesperson splits commission with broker - Answer ✔ true
, When you have a salesperson license you have to work under a broker - Answer ✔ true
Commission must be paid to the __________ who then pays salesperson - Answer ✔
true
_________________________ sales persons and brokers act as transactional agents,
they represent the transaction buyer and seller - Answer ✔ transaction broker
How to get a salesperson license - Answer ✔ 36 hour course
pass school goldcoast exam
pass state exam
In florida, salesperson and broker licenses have to renew every - Answer ✔ 2 years
Renewal License requirements Salesperson - Answer ✔ 14 hours every 2 years
45 hours for salesperson in first two years
Renewal License requirements Broker - Answer ✔ 60 hours includes 14 hours
14 hours in 2nd renewal
simply someone who belongs to a board to realtors
must be licensed to be in board
if licensed, you do not have to be in board
900 +/- yearly dues
to facilitate sales by offering the MLS to members - Answer ✔ realtor
When seller hires firm, they are hiring the broker - Answer ✔ all offers must be
presented to seller
buyers of property can also hire brokers - Answer ✔ true
Sales person is an _________ and an _________ of the broker. - Answer ✔ employee
agent
Sales person cannot do anything to harm the broker - Answer ✔ true
There is a __________ relationship between property owner and broker - Answer ✔
fiduciary
