COMPASS BECOMING A REAL ESTATE AGENT COURSE FINAL EXAM

1. A real estate professional who oversees the day-to-day operation of a specific property on behalf of the owner is a(n)

2. The examination application must be accompanied by:

3. Which is a service of real estate that requires a real estate license?

4. Regarding internet advertising, it is not appropriate to place the brokerage firm’s name:

5. If the DBPR fails to approve or deny a license application within 60 days, what will happen?

6. A brokerage office may be operated as which business entity?

7. A licensee may make a listing solicitation phone call to someone whose name appears on the national do-not-call list if:

8. Which statement about advertising is false?

9. The rules passed by the FREC are contained in

10. Carol is a broker who limits her real estate practice to mobile home parks. The FREC recently imposed a disciplinary fine on Carol for an administrative rule violation. What happens next?

11. Sue’s active duty army husband was killed in Afghanistan in July of 2016. Sue’s real estate license is due to renew in January of 2020. What license renewal exemptions are available to Sue?

12. A group license is used

13. Which brokerage relationship is a customer required to enter into with a licensee?

14. Broker Bob has a 2015 disclosure document that he needs to retain for 5 years. In 2019, or the 4th year of retention, the document is called into evidence for a civil action. In what year is Bob legally allowed to destroy that document?

15. In a designated sales associate relationship, what duties must a broker disclose to the clients?

16. If an agency relationship terminates because one of the parties defaulted, which of the following is true?

17. Among the fiduciary duties imposed on a real estate agent is the requirement to

18. If a potential buyer discloses financial qualifications to a seller’s agent, the agent is required to

19. Which of the following is a dual agency situation?

20. In which of the following contact situations would a seller’s agent be expected to disclose his agency relationships?

21. An office is considered a temporary shelter provided that

22. According to Florida law regarding work and the workplace,

23. Which of the following is NOT permitted to hold third party funds in an escrow account?

24. Although Florida law prohibits a broker from intermingling his own funds with trust funds in an escrow account, the law does allow the broker to deposit ___________ of personal or business funds to cover account maintenance fees.

25. Sales associate Tracy accepted an earnest money check on Wednesday, December 24th. Tracey must turn the check over to her broker by end of business on

26. During a conflict over disbursement of escrow funds, under what condition would a declaratory judgment be sought?

27. Which of the following situations does not require the broker to notify the FREC concerning escrow funds disbursement?

28. Which of the following compensation actions is illegal?

29. Which of the following entities may not register as a brokerage?

30. Duplicating brokerage records is prohibited when

31. When the DBPR completes its complaint investigation, what action takes place next?

32. Which part of the complaint process is confidential and not open to the public?

33. Multiple claims for payments from the Recovery Fund based on the same transaction are limited to a total of ________ regardless of the number of claims, claimants, or land parcels involved.

34. Except in cases of an emergency, landlords must give tenants at least __________ notice before entering the rental unit to make repairs.

35. The classes protected against discrimination by the Fair Housing Act of 1968 are

36. Which of the following actions represents discriminatory advertising?

37. Which of the following actions is allowed under federal fair housing laws?

38. May Southfeldt believes a real estate agent has kept her from seeing a certain property for rent because she is a woman. What actions should she take if she wants legal satisfaction for her complaint?

39. Developers of cooperatives must provide buyers ________ days after the contract has been signed to cancel.

40. The “bundle of rights” refers to a set of rights

41. Which of the following is true of littoral rights?

42. Two people own a house, each having an undivided equal interest. Which of the following best describes what they own?

43. If the duration of an owner’s rights in an estate cannot be determined, the owner possesses

44. Which of the following is true of a joint tenancy?

45. Two individuals can own a house as tenants by the entireties if

46. When an estate is held in a trust, who holds legal title?

47. When is a deed NOT used to transfer a property to a new owner?

48. If the owner of property A has a court-ordered easement to drive across property B because it is the only way for A to have access to a public road, the easement is a(n)

49. An encroachment is

50. How is a lien terminated?

51. The question of who owns title to a property is generally a function of

52. The type of deed that offers the grantee the fullest protection against claims to the title is the

53. If an owner of real property dies without leaving a will and with no legal heirs, what will generally happen to the property?

54. The type of lease in which the landlord pays all of the operating expenses of the property is a(n)

55. The special purpose map that shows all of the parcels within a city and is used to assess property is called a

56. What are the dimensions of a township?

57. A sale involving a _________________ requires a disclosure that states there is no guaranteed resale price.

58. The necessary condition of mutual consent may be found lacking in a contract if

59. A homeseller signs a listing agreement with a broker and the next week decides not to sell and revokes the listing. Which of the following is true?

60. A breach of contract is

61. Which of the following conditions is necessary for a customer to qualify as “ready, willing, and able?”

62. A real estate sales associate brings a buyer to a “For Sale By Owner” transaction. The home sells for $245,000, and the seller agrees to pay a commission of 3%. The sales associate is on a 65% commission schedule with her broker, who pays her 65% minus office expenses of $500. How much will the sales associate receive from this transaction?

63. To be enforceable, a contract for the sale of real estate must

64. Which of the following is an essential element of a valid contract for the sale of real estate?

65. A buyer signs an earnest money agreement and gives it to the broker who showed her the property she is buying. After leaving the broker’s office, she reconsiders and decides she prefers a different property. How long does she have to take back her offer?

66. To create an enforceable option-to-buy contract, there must be an exchange of

67. What is a lien-theory state?

68. The document that provides evidence that a certain property is pledged as collateral for a loan is the

69. How much is a discount point?

70. For a loan that is not backed by the Federal Housing Administration or Veterans Administration, and for which the borrower is making a down payment of less than 20%, the lender is likely require the borrower to obtain

71. The Equal Credit Opportunity Act prohibits a lender from

72. A conventional mortgage loan is one that is

73. Which of the following describes a purchase money mortgage financing arrangement?

74. A borrower of a $95,000 interest-only loan makes annual interest payments of $8,312.50. What interest rate is the borrower paying?

75. The difference between what a borrower has to pay to purchase a property and the amount a lender will lend on the property is the

76. If a particular loan falls under Regulation Z’s right of rescission provision,

77. A borrower obtains a 30-year, fully amortizing mortgage loan of $30,000 at 8%. What is the principal balance at the end of the loan term?

78. How much documentary stamp tax will be owed on the deed when an individual finances the purchase of a $400,000 single-family home in Miami with a cash down payment of $20,000?

79. John bought a single-family home in Tampa, Florida, for $600,000. He paid a cash down payment of $100,000 and financed $500,000. He has tax payments that must be made on this purchase. Which type of tax payment would be $1,750?

80. When should a buyer undertake a “buyer’s walk-through” of a property that is under contract?

81. If the Real Estate Settlement Procedures Act applies to a transaction, the lender must

82. If an item to be prorated affects buyer and seller, and no outside party, which of the following statements is true?

83. A seller received a rental payment of $100 in advance. At closing, the seller has “earned” only $32 of this rent. What should appear on the closing statement?

84. If the price of an item is increasing, one can usually assume that

85. A person paid $150,000 for a house with the intention of renting it out for $1,000 per month. The economic principle that led the person to pay this price based on the property’s ability to generate this future income is known as

86. In the final step of an appraisal, the appraiser reconciles the value estimates derived by the various appraisal approaches by

87. One of the strengths of the sales comparison approach is that it

88. In making dollar adjustments in the sales comparison approach, the appraiser

89. A house is being appraised using the sales comparison approach. The house has three bedrooms, two bathrooms, and a patio. The appraiser selects a comparable house that has three bedrooms, 2.5 bathrooms, and no patio. The comparable house just sold for $100,000. A half-bath is valued at $5,000, and a patio at $1,000. Assuming all else is equal, what is the adjusted value of the comparable?

90. The principle underlying depreciation from physical deterioration is that

91. Which of the following statements properly describes how to apply the income capitalization approach to appraisal?

92. An apartment building that sold for $450,000 had monthly gross rent receipts of $3,000. What is its monthly gross rent multiplier?

93. To engage in business brokerage, a broker must hold a real estate license because

94. A homeowner sold her house and had net proceeds of $191,000. Her adjusted basis in the home was $176,000. She immediately bought another house for $200,000. What was her capital gain?

95. Multiplying the tax rate times the taxable value determines the

96. Certain classes of property owner and types of property are exempted or immune from real property taxation. The protected categories include

97. What is a tax deed?

98. Certain land use regulations are enacted to ensure that new development does not exceed a local government’s ability to support it. These regulations are referred to as

99. To obtain a change of the zoning for a particular property, for example, from residential to commercial, a property owner would ask the zoning board for a(n)

100. Among other provisions, the Superfund Act (CERCLA) and Superfund Amendment and Reauthorization Act of 1986 provided that