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FL RE Practice Exam Prep Questions and Answers Fully Solved
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FL RE Practice Exam Prep
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FL RE Practice Exam PrepThe financial term applied to the use of borrowed funds to finance the purchase of an
office building is - answer LEVERAGE.
Leverage is the use of borrowed funds to finance the purchase of an asset.
A developer purchased three oceanfront lots, each measuring 75 by 110 feet, for $20
per square foot. The developer later sold the lots for $200,000 each. What was the
developer's percentage of profit on the sale of the three lots? (Round to nearest
percentage.) - answer21%
Which entity may NOT be registered as a real estate brokerage? - answer
CORPORATION SOLE.
A corporation sole is an artificial or fictitious person formed by an ecclesiastical body
and may not register as a broker.
Title to real property is technically conveyed when the deed is - answer VOLUNTARILY
DELIVERED AND VOLUNTARILY ACCEPTED.
Title to real property is conveyed when the deed is voluntarily delivered to and accepted
by the grantee.
Which statement is TRUE regarding the monthly payments on a 30-year, fully amortized
loan? - answerInitially, interest is the larger portion of the payment.
The following taxes were paid at the closing of a new home: $1,540 state documentary
stamp tax on the deed, $693 state documentary stamp tax on the note, and $396 state
intangible tax on the mortgage. What was the purchase price of the home? - answerThe
answer is $220,000.
The solution is: Part ÷ Rate = Value; $1,540 doc stamps on deed ÷ $.70 rate = 22,000
tax increments; 22,000 × $100 = $220,000 purchase price.
A prospective tenant purchased a rental list from a broker and then rented a duplex that
the list said included all utilities. The tenant discovered that only water was included in
the rent and notified the broker within the legislated time limit. The tenant is entitled to -
answer100% of the fee paid
A seller listed a home for $200,000 and agreed to pay a commission rate of 5%. The
MLS stated that the commission would be shared between the listing office and the
, selling office on a 50-50 basis. The home was sold four weeks later for 90% of the list
price. The listing broker paid the listing sales associate 50% of the listing office's
commission. The selling broker paid the selling associate 60% of the selling office's
commission. How much commission did the selling sales associate receive? -
answer$2,700
A title theory state is one in which a mortgage - answertransfers title to the lender or
escrow agent until the loan is paid.
Local government exercises its greatest effect on the real estate business by -
answerusing zoning, taxation, and the planning process.
What authority originates from the U.S. Constitution and relates to protection of health
and welfare of citizens at local levels? - answerPolice power
Police power is the authority of government to protect the property, life, health, and
welfare of its citizens.
A licensed real estate broker has been hired by a lender to appraise a home for a buyer
who has applied for an FHA loan. Which statement is TRUE regarding this situation? -
answerThe broker is required to be a state-certified appraiser to perform this appraisal
assignment.
The rate of interest that the Federal Reserve Bank charges member banks for
borrowing from the Federal Reserve Bank is called - answerthe discount rate
Which valuation assignment is exempt from USPAP requirements? - answerBroker's
price opinion prepared for a lender concerning a short sale
A man is a 72-year-old retired college professor. The local lender to whom the man
applied for a 30-year mortgage denied the man's loan application, even though he has
sufficient income from his pension plan and an excellent credit history. - answerThe
lender's actions violate the Equal Credit Opportunity Act.
A sales associate who is employed by an owner-developer who owns properties in the
name of various entities may be issued - answera group license.
A group license is issued to a sales associate or broker associate to work various
properties owned by affiliated entities under one owner developer.
A licensee makes a statement that is material to the transaction as though it were a fact
when the licensee does not know whether the statement is true or false, and the buyer
relies on the statement. As a result of the statement made by the licensee, the buyer
suffers damages. This situation constitutes - answerfraud
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