Florida Real Estate Broker Exam Questions With Correct Answers

Technical skills - Answer Skills that include time management, preparing Cmas, and completing contracts. Desk cost - Answer Dividing total office expenses by number of sales associates Institutional advertising - Answer Advertising that describes the firm, its personnel, and its services. Fixed expense - Answer Occupancy costs are an example of what type of expenses? Cash basis accounting - Answer What is the most simple type of accounting and is used by most small business taxpayers? 100 sqft - Answer What is the minimum amount of sqft a sales associate should have for office space? Managing by exception - Answer When a broker compare the results of his income and expense statements with the budget, finds variances, and takes corrective action, he is using what philosophy of management? Business plan - Answer A document that provides direction for an organization as well as all the steps and procedures involved in accomplishing its goals. January 31 - Answer What is the latest date that a broker can give thier employees w-2 forms and give thejr associates form 1099 for the previous year? Variable expense - Answer What type of expense are commissions paid to sales associates? Commingling - Answer The illegal practice of mixing a customers funds with brokers own funds. Conversion - Answer The unauthorized use or possession of another persons property. Trust liability - Answer The total sum of all deposits recieved 3rd Degree Felony - Answer Practicing real estate without a license is what type of penalty? two members - Answer How many serve on the probable cause panel? Chairman of FREC - Answer Who appoints two members to serve on the probable cause panel? $150,000 - Answer What is the max payment based on judgments against one broker or sales associate from the Real Estate Recovery Fund? Administrative Law Judge - Answer Who submits a recommended order to the DBPR? 15 days - Answer How many days does a broker have to fix an issue once received a notice of noncompliance? Stipulation - Answer A voluntary agreement between opposing counsels in a disciplinary case is called what? 1st degree Misdemeanor - Answer Failing to provide accurate and current rental info for a fee holds what kind of penalty? $5000 - Answer What is the max fine for each violation under Chapter 455 that a licensee could be fined? Appraisal Qualifications Board - Answer What is the source within the appraisal profession for establishing minimum education and experience? Principle of diminishing returns/ overimprovement - Answer When an owner adds a third bedroom to a home and the increase in the homes value is LESS than the cost of improvement. Market Value - Answer The consensus of the interactions of many buyers and sellers in a particular market. B. Must be Written - Answer Appraisals involving federally related transactions: A.may be oral or written? B. must be written Sales comparison approach to value - Answer An approach to value based on the theory that knowledgeable purchaser would pay no more than the cost of acquiring a substitute property. Cost-depreciation approach - Answer An approach to value based on the theory that a knowledgeable purchaser would pay no more than the cost of acquiring an equally desirable site, combined with building an acceptable substitute structure. Negative - Answer Do External diseconomies have a negative or positive impact on value? External economies - Answer What result from positive external factors that enhance property value? The Principle of Anticipation - Answer What principle is based on the premise that the expectation of future benefits creates value? USPAP - Answer What are the accepted standards for real estate appraising called? Certified Residential Appriaser - Answer What type of appraiser can issue reports only for one to four residential units? Principle of Highest and Best Use - Answer What principle states that the values of sites and properties are maximized when the real estate is used most efficiently? Financial Institutions Reform, Recovery, and Enforcement Act. - Answer What federal law sets forth the requirements for the appraisal industry regarding education and experience of licensed and state-certified appraisers and appraisal standards of practice? Self-contained - Answer What type of narrative appraisal report is the MOST detailed? Principle of Substitution - Answer What principle holds that when several goods or services offering similar benefits are available, consumers tend toward the one with the lowest price. Liquidation Value - Answer What type of value is associated with a rapid sale? Highest and best use - Answer The MOST probable and legal utilization of a parcel of land that creates the greatest real estate value. Assemblage - Answer The process of consolidating several smaller parcels of land into a single larger parcel of land. Going-concern value - Answer The value of an operating business enterprise, including the enterprises's goodwill, such as the intangible asset associated with the business's reputation, recognition of its name and franchise, and customer loyalty. Appraisal Qualifications Board - Answer Which appraisal entity is responsible for establishing the federal education requirements for appraisers? Demand, Utility, Scarcity, and Transferability (DUST) - Answer What are the four characteristics of Value? Bachelor's Degree in any field of study or 30 college semester credit hours - Answer What is the minimum education requirement for a certified GENERAL appraiser? Conformity - Answer What appraisal principle suggests that residential real estate values reach their highest potential when homes are located within a subdivision of homes that are similar in size, quality of workmanship, and amenities? Trade Fixture - Answer An article a commercial tenant attaches as part of the tenant's trade. Cost-depreciation - Answer A special-use property, like a county library, would most likely be valued using what type of approach to value? Normal Sales Price - Answer The price a property would have sold for at the time of the transaction if the transaction had been consistent with the market. (an appraiser makes adjustments for financing and conditions of sale) heterogeneous - Answer The word that describes real property and that every parcel is unique. Quantity Survey Method - Answer The MOST detailed method to estimate building costs. Successive Sales analysis - Answer A Sales analysis that involves locating properties that have recently sold two more times and are located in the same neighborhood as the subject and then using those properties to determine the amount of adjustment required for market conditions. Gross Rent Multiplier - Answer The ratio between a property's gross monthly rental income and the sales price of the property is called? Reproduction Cost - Answer What type of cost, replacement or reproduction, does Fannie Mae and Freddie Mac require on the Uniform Residential Appraisal Form? Pro forma income statement - Answer What is an appraiser's best estimate of income and expenses for the follow year or two? Greater - Answer The higher the debt-to-worth ratio, the (greater/less) the financial leverage and risk. Liquidation Value - Answer The proceeds of the sale of all business assets, less the business's liabilities. Accrual Basis Accounting - Answer The presence of accounts receivable and accounts payable indicates what type of accounting method? Current Ratio - Answer The ratio found by diving current assets by current liabilities Quick Ratio - Answer The ratio found by dividing current assets less inventories by current liabilities. Separable intangible assets - Answer Items that are sometimes missing from a firm's balance sheet, and that an appraiser should make an adjustment to include such as fanchises and copyrights. Book Value - Answer What type of value is found when you subtract depreciation from an asset's original cost?