COMPASS SALES ASSOCIATE POST-LICENSING FINAL EXAM II

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

loan-to-value ratio.
lender's profit margin.
buyer's down payment.
origination fee.

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

gross lease.
proprietary lease.
index lease.
net lease.

What form of eviction has occurred when a tenant vacates the lease premises and declares the lease void due to the landlord’s failure to maintain habitability?

Tenant eviction
Actual eviction
Landlord eviction
Constructive eviction

What is the NFIP responsible for?

Designating the flood zones
Reducing the financial impact of flooding on both private and public structures
Determining the base flood elevations for counties
Running FEMA

Which material was traditionally used for soil stack and soil pipe with joints poured of hot lead?

Galvanized iron
Copper
Cast iron
Aluminum

Which of the following is true of littoral rights?

They revert to the state when the property is sold.
They cannot be transferred.
They are a personal right belonging to an individual owner, not attaching to the real property.
They transfer with the property when the property is sold.

Members of the U.S. armed forces who are in good standing with FREC are exempt from license renewal requirements for _____ after being discharged from active duty.

1 year
2 years
5 years
forever

If the landlord wants to inspect a rental unit, he is required to give _____ notice prior to entry.

12 hours
24 hours
48 hours
1 week

How do you estimate the percentage of annual appreciation?

Multiply the total appreciation by the number of years operated.
Divide the total appreciation by the number of years owned.
Multiply the last 5 years of appreciation by the number of years rented.
Divide the total appreciation by the number of years rented.

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?

Carol’s license will now be rendered null and void.
Carol will no longer be allowed to practice.
The FREC must notify the Division of Florida Condominiums, Timeshares, and Mobile Homes of the violation.
The Division of Florida Condominiums, Timeshares, and Mobile Homes must deny Carol’s license renewal application.

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

large development projects undergo an environmental impact survey immediately after completion of construction.
industrial users of real estate comply with air quality standards.
the EPA would give financial help to homeowners to remedy any hazardous situation resulting from radon, asbestos, or lead-based paint.
parties responsible for improper disposal of hazardous waste could be charged for the cleanup costs.

A condominium unit can be owned jointly, in trust, in ________, or in any other manner allowed by state law.

severalty
a proprietary tenancy
exclusive tenancy
periodic tenancy

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

trust deed or mortgage.
promissory note.
loan commitment.
collateral acknowledgment.

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

contain clearly defined contingencies.
be written.
be recorded.
have an expiration date.

What form of protection covers losses resulting from criminal or negligent acts of an employee?

Casualty loss
Workers compensation
Surety bond
Consequential loss

What is the potential gross income minus allowance for vacancy and credit losses?

Potential gross income
Net operating income
Effective gross income
Pre-tax cashflow

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

A broker, following the instructions of the seller, advertises the property as for sale to Christian families only.
A home seller, acting without a broker, places a "for sale– mature, single men only" sign in front of the house.
The owner of four rental houses advertises one of the properties for rent "to married couples, no children, no pets."
The owner of a duplex who resides in one of the units refuses to rent the other unit to a non-Christian.

Which of the following parties, if any, is exempt from prelicense education?

Veterans
Parties who have a real estate license in any other state.
Individuals who earned a 4-year degree or higher in real estate from a school of higher education
No one is exempt.

Michael, a seller, asks his agent how old the buyer was who just made an offer on his house. What should the agent say?

The agent should tell him the buyer’s approximate age.
The agent should ignore the question.
The agent should explain that it is illegal to give out such information.
The agent should tell him the age over the phone so there is no record of it.

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)

easement by prescription.
personal easement.
easement by necessity.
easement in gross.

How is a lien terminated?

Payment of the debt that is the subject of the lien and recording of the satisfaction.
Transfer of the property that has the lien.
Recording of another lien that is superior.
Death of the lienor or lienee.

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

recreational properties.
properties owned by a government agency.
properties that comply with the Americans with Disabilities Act.
properties occupied by single-parent families.

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

CDD
HOA
cooperative
timeshare

A conventional mortgage loan is one that is

backed by the Federal National Mortgage Association.
insured under Section 203(b) of the Federal Housing Administration loan program.
guaranteed by the Government National Mortgage Association.
not FHA-insured or VA-guaranteed.

Professional liability is of two general types: unprofessional conduct and _______.

breach of contract.
environmental violations.
sexual harassment.
antitrust violations.

The duty of _____ requires the agent to place the interests of the client above those of all others.

Loyalty
Obedience
Confidentiality
Preservation

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

a promise to sell and a promise to buy.
valuable consideration and a right to buy.
valuable consideration and a promise to buy.
a down payment and a post-dated contract for sale.

What happens if a homeowner lets his or her insurance policy lapse?

Most lenders will place a new policy on the home.
The bank will foreclose on the home.
The lender will place an owner-placed insurance policy on the home.
The lender is not concerned with the home insurance past the first year.

What type of lease charges varying levels of rent based on the income generated by the tenant?

Income lease
Net lease
Percentage lease
Graduated lease

Which of the following actions represents discriminatory advertising?

Telling prospective buyers about the positive and negative aspects of a certain neighborhood.
Telling a prospective seller that now would be a good time to put a property on the market.
Advertising a property as available to individuals of a particular race.
Telling a prospective buyer that the agent is too busy to show the buyer properties personally on a given day.

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

The seller does not comply with the closing schedule but does not provide the broker with disbursement instructions.
Both the seller and the buyer provide disbursement instructions, but the instructions are different.
The buyer fails to meet the financing provisions within the sales contract.
The transaction fails to close, and the buyer does not respond to the broker’s requests for disbursement instructions.

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.

$25,000
$50,000
$100,000
$150,000

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

demand for the item is decreasing in relation to supply of the item.
demand for the item is increasing in relation to supply of the item.
supply of the item is increasing.
demand for the item and supply of the item are increasing.

How long does a licensee have to notify the DBPR about any address changes?

7 days
14 days
30 days
10 days

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

utilities code.
infrastructure rules.
concurrency regulations.
intergovernmental interventions

A group license is used

when several sales associates serve the same client.
when a broker employs several sales and broker associates.
when an owner/developer owns properties through multiple entities all controlled by the same individual.
when a corporation or partnership owns several properties and employs several brokers who handles those properties for sale or lease.

Routine maintenance of a rental property includes regular inspections, minor repairs, and _______.

regular painting of exterior areas.
planned replacement of a roof.
scheduled replacement of a washer.
scheduled upkeep of operating systems such as air conditioning.

The duty of _______ requires the agent to put the client’s interests above those of everyone else.

loyalty
obedience
confidentiality
disclosure

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

only real estate licensees understand the requirements of a business sale transaction.
a business sale usually involves a transfer of a real property interest.
a business entity is considered a type of tangible property.
a business cannot operate as its own real estate broker.

What happens if a licensee fails to maintain his or her E & O insurance?

He or she can be fined $350 and be required to renew it immediately.
His or her license expires.
The licensee can be fined by $500 and be required to renew within two weeks.
Nothing, it is the responsibility of the broker to maintain the insurance.

What types of properties do community association managers take care of?

Mobile home parks
Groups of industrial parks
Portfolios
Malls

Which of the following closing costs is a seller customarily responsible for?

Existing mortgage payoff
Home inspection
Home insurance
Appraisal fee

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

Apply a desired rate of return to the price paid for an income property.
Divide the income a property generates by a desired rate of return.
Estimate the amount of income a property must generate to return the capital amount invested in it.
Estimate the rate of return a property owner receives from income generated by the property.

Multiplying the tax rate times the taxable value determines the

assessed value.
tax base.
tax levy.
SOH limitations.

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

give the seller a booklet describing settlement costs and procedures.
use a prescribed form to disclose settlement costs to the buyer.
sign an agreement with seller and buyer to act as closing agent.
allow the buyer to inspect the closing statement at least one week prior to the closing date.

How long does the initial license application remain valid for?

10 years
7 years
2 years
6 months

Cody owns a home where the total tax rate is 10 mills. The assessed property value of the house is $345,000. What is the tax amount?

$3,450
$345
$3,000
$1,500

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?

A debit to the seller and credit to the buyer for $32.
A debit to the seller for $68 and a credit to the buyer for $32.
A debit to the seller for $32 and a credit to the buyer for $100.
A debit to the seller and credit to the buyer for $68.

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

the end of the same day the funds were received excluding weekends.
the end of the same day the funds were received including weekends.
the end of the next business day excluding weekends.
the end of the fifth business day following receipt of the funds.

The Equal Credit Opportunity Act prohibits a lender from

refusing a loan because the property is located in a certain area.
including income from self-employment in the borrower's qualifying income.
requiring both spouses to sign the loan application form.
refusing a loan because a borrower has a defective credit report.

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)

amendment.
special exception.
plat approval.
special ordinance.

What is a lien-theory state?

A state in which a lienor holds legal title to a secured property.
A state in which a mortgage is considered to be a lien against a secured property.
A state that allows a real estate owner's creditors to record liens against the owner's property.
A state in which a lien is considered as a conveyance.

What year was the EPA established?

1970
2010
2015
1990

Which of the following compensation actions is illegal?

A licensee accepts a gift from an appraisal company for referring clients to that company.
A licensee pays a property surveyor for regularly providing surveying services.
A property manager pays a $25 referral fee to one tenant for referring a prospective tenant.
A licensee informs all involved parties prior to accepting a kickback from a mortgage lender.

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

The DBPR’s investigation
The probable cause proceedings
The formal complaint
The formal hearing

If a license applicant is currently on probation,

he or she will automatically be denied licensure.
he or she should submit a letter from the probation officer showing the status of his/her probation.
he or she should wait for the criminal background check to be completed before submitting any documentation.
he or she should wait until the probation is ended before applying for licensure.

If the seller is a foreign person, the buyer must withhold _____ of the purchase price at closing and forward the withheld amount to the IRS.

10%
5%
25%
15%

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?

$8,000
$760
$1,330
$2,400

Condominium ownership consists owning ______ unit(s) together with the associated interest in the common elements.

the interior and load bearing walls and airspace of one apartment
the airspace of one
one collectively owned
an indivisible interest in all

A shareholder of a co-op acquires a ______ lease.

proprietary
property
apartment
triple net

A breach of contract is

a termination of the contract by the mutual consent of the parties.
financial damage suffered by a party because another party has nullified a contract provision.
a lawsuit to force a party to discharge the contract.
the failure of a party to perform according to the terms of the contract.

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?

She will be exempt from paying a renewal fee.
She will be exempt from continuing education requirements.
She will be exempt from all renewal requirements.
None; Sue’s active duty husband died more than 2 years preceding her license renewal date.

The fiduciary duties an agent owes a customer are honesty, fairness, and _____.

availability.
obedience.
disclosures.
confidentiality.

Two important distinctions between a CMA and an appraisal are objectivity and _______.

conformity
comprehensiveness.
real estate licensure.
market value.

What is a narrow window next to an entry door?

Sidelight
Skylight
Dutch window
Slit window

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

The beneficiary.
The trustor.
The trustee.
The grantor.

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

The customer's offer must be accepted.
he customer must be legally capable of completing the transaction.
he customer must be legally capable of completing the transaction.
The customer must have no business relationship with the agent.

Which policy is designed for upper-bracket houses?

HO-5
HO-7
HO-4
HO-2

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

the lender has the right to change the terms of the loan within a certain period.
the lender has the right to accelerate repayment of the loan because of a change in the borrower's credit status.
the borrower has the right to pay off the loan ahead of schedule with no penalty.
the borrower has a limited right to cancel the transaction within a certain period.

In a _____ time-share, tenants in common own undivided interests in the property.

leasehold
cooperative
freehold
standard

How much investment interest on a debt can be deducted from an income property investment?

25% of the net income from the property
Up to $5,000 for every $10,000 in net income from the property
75% of the net income from the property
Up to the amount of net income received from the property

A transaction broker is not bound by ______ duties.

honesty
fair dealing
fiduciary
reasonable care

The ____ authorizes an official to seize and sell a foreclosed property.

lis pendens
writ of execution
public sale
right of redemption

The fiduciary duties an agent owes the client are skill, care and ______.

marketing.
diligence.
networking.
compensation.

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

they so elect at the time of acquiring title.
they are blood relatives.
they are married.
they incorporate.

What is a tax deed?

A conveyance instrument for a property that is sold to enforce a tax lien.
A document recorded in title records showing that property taxes have been paid.
A notice to a homeowner that a tax lien has been entered against the property.
A document that gives a municipal authority the power to collect an individual tax bill

When is a contract executory?

Upon closing
When the contract is fully perfomed
Within 10 days of the contract ceasing to be a binding agreement
When the signatories have yet to perform their respective obligations and promises

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

A bank gives a buyer a senior mortgage loan that fully covers the cost of purchasing the property.
The buyer gives the seller a mortgage and note as part of the purchase price of the property.
A land trust holds title to the property while the buyer makes periodic installment payments to the seller.
The seller uses the purchase money obtained from the buyer's mortgage loan to repay the seller's outstanding loan balance.

Which statute bans sending unwanted email ‘commercial messages’ to wireless devices?

CAN-SPAM Act
Email Advertising Act, or EAA
TCPA
Internet Marketing Act

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

keep the information in confidence.
disclose the information to the buyer's agent.
disclose the information to the seller.
verify the buyer's statements before disclosing them to the client.

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

Single agent duties
Transaction broker duties
Nonrepresentation duties
None

How much is a discount point?

.1% of the loan amount.
1% of the loan amount.
10% of the loan amount.
It depends on the interest rate and the loan amount.

Brokers are required to hold security deposits in a separate trust account. The trust account must be with

a qualified depository institution.
any bank or escrow company the broker chooses.
a title company.
a law firm.

The _______ is a measure of efficiency of insulation against heat transfer.

I-factor
efficiency factor
insulation factor
R-factor

The gross proceeds on a FIRPTA-regulated property sale are $95,000. What is the required withholding amount?

$9,500
$18,000
$25,000
$14,250

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

Each owns fifty percent of the physical house and the land it rests on.
Each owns one hundred percent of the physical house and the land it rests on.
Each owns fifty percent of the estate represented by the real property, but no physical portion of the real property.
Each owns one hundred percent of the estate represented by the real property and fifty percent of the physical house and the land it rests on.

What is a triangular end wall that is defined by the two slopes of a roof and a line joining the eaves?

Gambrel
Gable
Mansard
Ridge

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

When the new owner has inherited the property.
When the current owner is donating the property to a charity.
When the new owner has purchased the property.
When the current owner is gifting the property to another family member.

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

Not for profit corporation
Joint venture
Limited partnership
Sole proprietorship

Which statute requires that buyers be given accurate information reflecting their closing costs?

ECOA
Closing Costs Information Act
Clear Cooperation Act
RESPA

If a seller defaults in a contract, the buyer can sue for ________ to compel the seller to transfer legal title upon payment of the contract price.

compliance
specific performance
conditional completion
The buyer cannot sue the seller if the seller defaults

In identifying net operating income, building repairs and maintenance expense must be deducted from _______.

gross income.
depreciation.
building reserves.
tax liability.

How old does an individual need to be to apply for a real estate license?

18 years old
20 years old
21 years old
There is no age requirement.

An office is considered a temporary shelter provided that

only transaction closings are conducted there.
it is in a building with stationary construction.
it is registered as a temporary shelter.
sales associates are not permanently assigned there.

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

property manager.
asset manager.
maintenance technician.
management consultant.

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?

$1,000.
$30,000.
$220
Zero.

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

the two parties did not discuss every possible interpretation of the contract's provisions.
the offer which was accepted is vague.
one party did not have the legal authority to sign the contract.
the agreement is unwritten.

Typically, a seller conveys a(n) _______ interest by means of a general warranty deed.

fee simple
leasehold
mineral rights lease
adverse possession

What is a vulcanized sheet of rubber or other seamless material applied to decking called?

Membrane
Slate
Roofing paper
Shingle

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

Immediately after the offer is accepted.
Immediately after closing.
As shortly before the closing date as possible.
As soon as all inspections have been completed.

Which of the following is a dual agency situation?

Two agents share the exclusive right to represent the same client.
One agent represents both sides in a transaction.
A selling agent from one brokerage works with a listing agent from another brokerage to complete a transaction.
One agent represents two sellers at the same time.

Which statute states that current landowners as well as previous owners of a property may be held liable for environmental violations?

Environmental Disclosure Amendment of 1986
CERCLA and Superfund Amendment of 1986
Lead-based Paint Act of 1992
Brownfields Law

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

All obligations are extinguished.
Both parties must continue to perform all obligations of the agreement.
The defaulting party may have a financial liability.
The damaged party has no claim against the defaulting party.

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

adds value to a comparable that is inferior to the subject property.
adds value to the subject property if it is inferior to a comparable.
subtracts value from a comparable that is inferior to the subject property.
subtracts value from the subject property if it is inferior to a comparable.

Florida is mandated to provide reciprocal licensure for U.S. military members under

a Reciprocal License Agreement.
a Mutual Recognition Agreement.
the Occupational Opportunity Act.
House Bill 455.

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

refuse offers the agent knows will be unacceptable to the principal.
present all offers to the principal.
advise the principal against accepting an offer that is below full price.
advise a prospect that the principal will not accept the prospect's offer in order to elicit a better offer.

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

8.75%.
7.29%.
.729%.
9.125%.

The principle underlying depreciation from physical deterioration is that

eventually, a property loses all of its value.
a property loses a portion of its value each year because of economic obsolescence.
a property loses the same increment of value each year over the economic life of the property.
the value lost to depreciation is incurable.

Unauthorized practice of law is a _____.

felony
misdemeanor
no lo contendre misdemeanor
capital offense

What is another name for the Fair Housing Act?

Civil Housing Act
Title VIII of the Civil Rights Act of 1968
Anti-racism Act
Neutrality In Housing Act

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

A final order is issued.
A letter of noncompliance is issued.
An investigative report is submitted to the Probable Cause Panel.
A recommended order is submitted to the FREC.

Which of the following is a fibrous material that has been wadded together, backed with foil or paper and formed into a roll?

Fiberglass
Foam
Asbestos
Batting

Which type of tenancy has a specific initial term, but continues after the expiration of that term?

Periodic
At will
For years
At sufferance

If an applicant was convicted of a crime 7 years prior to applying for licensure, under what circumstances could the applicant be denied a license?

The applicant is still on probation.
The applicant’s crime showed a lack of good moral character.
The applicant served time in jail for the crime.
Under no circumstances could the applicant be denied a license after 7 years has passed.

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

disregarding the high and low extreme results.
averaging the results of all three approaches.
weighing the applicability of the approaches and considering the quality of data supporting each approach.
choosing the result that is closest to the average for properties in the immediate neighborhood.

Florida law regulates the broker’s accounting obligations and ________.

bank accounts.
operating fuds deposits.
inspection reports.
escrow practices.

An agent has the duty to inform the client of all ______ that might affect the client’s interest in the property transaction.

material facts
obvious and hidden defects
customer financial qualifications
recorded or unrecorded encroachments

A licensee who has been on involuntary inactive status for 12-24 months may complete an FREC-prescribed _____ education course towards reactivating the license.

28-hour
14-hour
32-hour
48-hour

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

enjoyed by the owner of a property.
that is inseparable from a parcel of real estate.
guaranteed to citizens by the Declaration of Independence.
specified in a deed or land contract.

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

who has a bill of sale for the property.
who has physical possession of the property.
who has the best evidence of ownership.
who has a deed for the property.

Under ______ it is illegal for a real estate licensee to accept a kickback from any business providing a service used to close a real estate transaction.

FREC
DBPR
RESPA
EPA

What is retention of risk?

Taking steps to reduce the probability or the severity of a potential loss
Entering into an activity in spite of known risks and taking full responsibility for the consequences
Passing the risk to another party, by contract or other means
Refraining from an activity that carries risk

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

Single agent
Transactional broker
Dual agency
None

Which of the following is a tenant responsibility?

Keeping the stairways in good repair.
Leaving the unit in as clean a condition as it was at the start of the lease.
Providing pest control.
Keeping the plumbing system in working order.

Who may be exempt from completing Florida prelicense education requirements?

Any nonresident applying for licensure in Florida
Any member of the U.S. armed forces
Anyone with a 4-year college degree in real estate
Any spouse of a U.S. military veteran

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

The item must be prorated and recorded as a debit to one party and a credit to the other party for the same amount.
The item must be prorated and recorded as a debit to one party; the remainder is recorded as a credit to the other party.
The party who is owed money receives a credit for the entire item, and the party who owes money receives a debit for the prorated amount.
The party who owes money receives a debit for the portion owed and a credit for the portion that is not owed.

In the sales comparison approach to valuation, adjustments can be made to _________________ to arrive at the value estimate

the subject or the comparable
both the subject and the comparable
the comparable only
the subject only

Florida statutes define a resident as a person who has resided in Florida continuously for a period of ____ within the preceding year.

6 months
4 months
8 months
12 months

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

12.5
.01
.08
150

A loan clause that gives a lender the option to accelerate a loan if the buyer conveys the property to another party is called the ___________.

closing day clause.
past-due clause.
due-on-sale clause
financing clause.

The “amount realized from a sale” is also known as the ____________.

value gained.
net proceeds from sale.
profit amount.
gross income.

The rules passed by the FREC are contained in

F.S. Chapter 120.
F.S. Chapter 475.
Chapter 61J2 of the Florida Administrative Code.
F.S. Chapter 455.

Under Florida law, the four resolution alternatives in an escrow conflict are arbitration, mediation, litigation and _______.

disbursement judgment.
court settling.
declaratory judgment.
escrow dispute.

What is the basic annual deduction for a residential rental property?

2.564%
4.746%
3.636%
5.354%

Which home style is an adaptation of classical and Georgian styles featuring tall windows and curved stairs?

English colonial
Prairie
Federal
Greek revival

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

Price based on certified appraisal.
Signature of the listing broker.
Offer and acceptance.
Social Security numbers of seller and buyer.

Words like “brokerage” and _____ are not allowed to be used for advertising teams within a brokerage.

“team”
“realty”
Any word is allowed as long as the team name is larger than the broker name.
There are no rules regarding team advertisements.

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

It will revert to the state or county by escheat.
It will transfer to the decedent's executor.
It will be divided equally among adjoining property owners.
It will become a public easement.

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

The agent is showing the client's property to a prospective buyer.
The agent tells an acquaintance at a party about the client's property.
The agent answers questions about the client's property for a telephone caller responding to a newspaper ad.
The agent is showing a potential buyer houses in a certain price range in the multiple listing book.

An encroachment is

an easement that has not been recorded on the title of the burdened property.
an unauthorized physical intrusion of one property into another.
a right granted by a property owner to the owner of an adjoining property to build a structure that protrudes across the property boundary.
a structure that does not comply with a zoning ordinance.

The ADA applies to private employers with _____ or more employees.

5
7
10
15

The seller receives an offer of $650,000 on a property listed for $679,000. How much is the offer as a percent of the listing price?

90%
96%
85%
104%

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

3
5
10
15

What is the easiest hazard to detect and mitigate?

Site contamination
Underground storage tanks
Faulty septic tank
Radon

Which insurance coverage is used for rental income losses resulting from a disaster?

Consequential loss, use, and occupancy
Employers’ compensation
E&O insurance
General liability

Which of the following is created to serve the long-term specific needs of its community and is a local unit of special-purpose government?

HOA
Community Development District
CDA
Home Occupancy Association

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

takes into account the subject property's investment value.
reveals the profit margin of the builder or developer of the subject property.
discovers the underlying value of the subject property apart from the influence of competing properties.
takes into account the competitive value of specific amenities of the subject property.

If Broker Alice changes her trade name, what regulatory action is required?

There is no requirement.
She cannot change her trade name
She must provide a letter stating she changed their trade name.
She must have a new license issued.

In which of the following instances is age discrimination legal?

In a retirement community if all residents are 35 or older.
In a retirement community if 20% of the dwellings have one person who is 55 years or older.
In government-designated retirement housing
Fair housing laws never allow age discrimination.

For whom does Florida waive the initial license application fee?

A member of the U.S. armed forces currently on active duty
The surviving spouse of a military member who died while on active duty
An individual who meets the criteria to be considered low income
A military veteran who applied for licensure within 5 years of his/her honorable discharge from active duty

According to Florida law regarding work and the workplace,

sales associates may work out of their own residential office.
sales associates may work for multiple brokers at the same time.
sales associates must be registered with an employing broker.
sales associates’ names must appear on office entrance signage.

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?

$191,000
$9,000
$15,000
None

The agency relationship between the agent and the client ________compensation.

never includes
always includes
does not necessarily include
does not allow

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

plot map.
plat map.
tax map.
survey map.

What are expenses for constructing major new improvements called?

Curable obsolescence
Reserve expenditures
Capital expenditures
Repairs

What is the first step in the sales comparison approach?

Weight values indicated by adjusted comparables
Select a capitalization rate
Estimate potential gross income
Identify comparable sales

Which insurance policy covers the HVAC system?

Dwelling coverage
HVAC insurance
Other structures coverage
Loss of use insurance

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

A mortgage lender
An attorney
A title company
A broker

Jessica bought a property for $300,000 with a loan of $285,000. The house has appreciated $35,000 and she has reduced the original loan by $10,000. What is Jessica’s current equity?

$50,000
$60,000
$70,000
$80,000

If the comparable is better than the subject, _______ comparable.

add value to the
keep value the same as the
subtract value from the
you should adjust the subject, not the

Homeowner policies should insure the home for at least ____ of the home’s replacement cost.

50%
100%
75%
80%

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

12 hours
24 hours
36 hours
48 hours

Adding a bathroom to a house raises the appraised value by $10,000. This is the result of which principle of value in operation?.

Change
Substitution
Contribution
Anticipation

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?

The seller has no contractual obligations to the broker.
The contract remains in full force until the expiration date.
The broker may have a claim for damages.
The seller cannot sign a listing agreement with another broker.

The benefits a buyer expects to derive from a property over a holding period determines what the buyer is willing to pay for it. What is this principle of value called?

Transferability
Anticipation
Contribution
Utility

The three types of foreclosure processes that enforce mortgage liens are judicial foreclosure, non-judicial foreclosure and ______ foreclosure.

tax
official
strict
standard

What are the dimensions of a township?

One-mile square.
Six miles by six miles.
Six square miles.
Thirty-six miles by thirty-six miles.

What is the increment of excess value created by assemblage called?

Plottage value
Progression value
Leftover value
Residual value

Which insurance policy includes more than one type of coverage?

Monoline policy
Collective policy
Package policy
Monopoly policy

Which of the following is the term for the practice of inducing owners in an area to sell or rent in order to avoid impending change in the ethnic makeup of the neighborhood?

Blockbusting
Restricting MLS participation
Redlining
Steering

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

The application is automatically approved.
The application is automatically denied.
The Department must notify the applicant that the 60-day deadline has been extended.
Nothing will happen as the Department has 90 days to approve or deny applications.

How can Allison defer her capital gains tax?

She can use a Section 1058 exchange.
She can participate in a stock market exchange.
Allison can defer her capital gains tax by using a Section 1031 exchange.
Allison cannot defer her capital gains tax.

Duplicating brokerage records is prohibited when

done by an unlicensed assistant.
done by a sales associate who is changing employers.
not authorized by the employing broker.
done at the request of the FREC.

All licensees must complete continuing education each license period that includes 3 hours of

Real Estate Mathematics.
the Principles and Practices of real estate.
Appraisals.
Core Law.

A house bought for $300,000 appreciates $10,500 each year for 4 years. What is the total appreciation?

$31,500
$40,000
$42,000
$30,000

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

race only.
religion and gender only.
race, color, religion, and national origin.
age and gender only.

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

general warranty deed.
special warranty deed.
quitclaim deed.
bargain and defend deed.

What are the principal areas of real estate regulation?

Demolition
Condemnation
Taxation
Maintenance

What is the legal action called where, in a trust dispute, a broker holding the disputed trust funds removes himself from the dispute by placing the funds in a court depository?

Litigation
Interpleader action
Arbitration
Escrow removal

Which law protects consumers from a developer’s misrepresentation of material facts about a property being purchased sight unseen through means of interstate commerce or the mail?

Interstate Land Sales Full Disclosure Act
ECOA
Consumer Protection Act
Bulk Sales Act

Which of the following is true of a joint tenancy?

The tenants can determine the size of the share owned by each tenant.
The size of the tenant's shares is determined by the amount of equity each has invested in the property.
The tenants have an equal and indivisible ownership interest.
There can be no more than two co-owners, and each has a fifty percent interest.

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?

File charges of illegal discrimination with the police department that has jurisdiction over the local area.
File a complaint with HUD and/or file suit against the offending parties in a state or federal court within the prescribed time period.
Wait two years and then file a civil suit in federal court.
File a civil suit in federal court to force HUD to enforce the Fair Housing Amendments Act of 1988.

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

an indeterminate legal estate.
a leased fee simple estate.
a freehold estate.
a leasehold estate.

How do you calculate the value of an income property?

Divide the income by the capitalization rate.
Divide the gross rental income by the costs.
Multiply the capitalization rate by the income.
Multiply the effective income by the capitalization rate.

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

When the broker is claiming part of the escrow funds
When the funds are held by an attorney
When the funds are held by a title company
When third party arbitrators are acting as judges

COMPASS SALES ASSOCIATE POST-LICENSING FINAL EXAM II

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

17. Question

18. Question

19. Question

20. Question

21. Question

22. Question

23. Question

24. Question

25. Question

26. Question

27. Question

28. Question

29. Question

30. Question

31. Question

32. Question

33. Question

34. Question

35. Question

36. Question

37. Question

38. Question

39. Question

40. Question

41. Question

42. Question

43. Question

44. Question

45. Question

46. Question

47. Question

48. Question

49. Question

50. Question

51. Question

52. Question

53. Question

54. Question

55. Question

56. Question

57. Question

58. Question

59. Question

60. Question

61. Question

62. Question

63. Question

64. Question

65. Question

66. Question

67. Question

68. Question

69. Question

70. Question

71. Question

72. Question

73. Question

74. Question