FREC Practice Test exam questions and verified correct answers 2024
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Course
FREC
Institution
FREC
1. Which of the following statements is true regarding a mortgage loan originator (MLO)?
a. A mortgage loan originator is the same as a mortgage broker.
b. A mortgage loan originator must have a separate license.
c. A mortgage loan originator makes loans.
d. A mortgage loan originator must have...
1. Which of the following statements is true regarding a mortgage loan originator (MLO)?
a. A mortgage loan originator is the same as a mortgage broker.
b. A mortgage loan originator must have a separate license.
c. A mortgage loan originator makes loans.
d. A mortgage loan originator must have a real estate license. - correct answer B
2. A real estate appraiser's fee for professional service is based on which of the following?
a. A percentage of the property's gross income.
b. A percentage of the fair market value of the property.
c. The time and difficulty of the appraisal.
d. A percentage of the property's sales price. - correct answer C
3. Which of the following best describes the real estate brokerage business?
a. Service business
b. Simple business
c. Business with few opportunities available
d. Construction business - correct answer A
4. All of the following are responsibilities of a property manager, EXCEPT:
a. Renting property for an absentee owner.
b. Collecting rent.
c. Overseeing maintenance.
d. Preparing leases - correct answer D
,5. What does the term "farming" refer to in real estate?
a. Specializing in one geographic area
b. Working in a cooperative manner
c. Specializing in agricultural properties
d. Specializing in the sales of orange groves or cattle farms - correct answer A
6. Which insurance policies can a real estate licensee offer to the public without additional state
licensing?
a. Flood insurance
b. Fire insurance
c. Renter's insurance
d. None of the above - correct answer D
7. What is the purpose of the National Association of REALTORS?
a. Preserve the right of individuals to own real property through an exchange of information.
b. Organize antigovernment activities.
c. Promote unethical practice of real estate professionals.
d. Promote unethical practice of real estate professionals. - correct answer A
8. What does the designation of REALTOR® signify?
a. Anyone in possession of a real estate license is a REALTOR®
b. The designation identifies the real estate professional as a member of the NAR.
c. The designation is evidence that the licensee has an extensive background in the real estate
profession.
d. The designation is evidence that the licensee has completed extensive real estate studies. - correct
answer B
9. A developer contracts to build a home according to the buyer's specifications. This is an example of
which type of building?
a. Tract
, b. Custom
c. Speculative
d. Subdivision - correct answer B
10. Which of the following best describes licensees who are involved in business brokerage?
a. They must be able to analyze financial statements and understand balance sheets.
b. They are not required to know much about the business they are selling.
c. They must have a separate license.
d. They never become involved in the tax aspects of the business. - correct answer A
11. Real estate licensees are required to be knowledgeable in all of the following areas, EXCEPT:
a. Marketing
b. Valuation
c. Property transfer
d. Accounting - correct answer D
12. Which service provided by real estate licensees requires the most experience and knowledge?
a. Property management
b. Counseling
c. Appraising
d. Agricultural sales - correct answer B
13. An appraiser who is registered, licensed, or certified under F.S. 475 Part II, must be utilized in which
of the following?
a. All appraisals
b. The appraisal of residential property
c. The appraisal of nonresidential property
d. Federally-related transactions - correct answer D
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