COMPASS BECOMING A REAL ESTATE BROKER Course Final Examination I

1. Multiple licenses are issued only to:

2. How long is an initial application for licensure valid?

3. A licensee may remain an involuntary inactive licensee:

4. An applicant must take and pass the state licensure exam within _____ of completing prelicense education.

5. If an applicant for a broker license has been licensed as a Florida sales associate during the preceding 5 years,

6. All nonresidents applying for a license in Florida

7. All broker licensees are required to complete ________ of post-license education.

8. A licensee may complete a 28-hour education course to reactivate a license that has been on involuntary inactive status for

9. An active broker’s office:

10. Tom obtained his sales associate license in April of 2016 and renewed that license on March 31, 2018. His next renewal date was scheduled for March 31, 2020. However, Tom obtained his broker license on July 8, 2019. When does this broker license need to be renewed?

11. When a sales associate license is first issued, it is on inactive status. How does the sales associate activate the license?

12. If a licensee changes his residential address, what must he do?

13. Which statement is true regarding Florida brokerage relationships?

14. In which relationship is a licensee prohibited from assisting both the buyer and the seller in the same transaction?

15. Which of the following duties is owed by a transaction broker?

16. What determines whether a location is a branch office?

17. The agent and principal may terminate the agency relationship by mutual consent

18. One of the agent’s fiduciary duties that continues even after a listing agreement expires is

19. A sign at the entrance of the office does not need to contain?

20. Among the duties of a broker who is acting as a transaction broker, is

21. Which of the following is not required for a real estate office in Florida?

22. A sign at the entrance to a brokerage office

23. Blind advertising occurs when

24. A property buyer gave sales associate Tracy an earnest money check on Tuesday, December 23rd. The check must be deposited into the broker’s escrow account by the end of business on

25. Sales associate Tracy accepted an earnest money check on Wednesday, December 24th. Tracy must turn the check over to her broker no later than

26. Escrow account records must be kept for

27. If escrow funds are placed in an interest-bearing account, to whom must the interest be disbursed?

28. If there is a conflict over escrow fund disbursement, what is the first step the broker should take?

29. Which of these statements is true regarding opinions of title?

30. Which of the following is prohibited?

31. If a complainant withdraws a filed complaint, which of the following actions may happen?

32. When the Probable Cause Panel finds there is no probable cause, what happens next?

33. When are the special fees for funding the Recovery Fund suspended?

34. In Florida, rental security deposits are limited to

35. The fair housing law that first protected people against discrimination in housing based on race was the

36. Which of the following is an example of blockbusting?

37. The practice of redlining is specifically prohibited by

38. Under federal fair housing laws, the owner of a ten-unit apartment building may legally

39. Sales involving a(n) _______________ require a disclosure statement to the buyer that the buyer should not execute the contract until he or she has read the disclosure summary.

40. By definition, personal property

41. Which of the following is included in surface rights?

42. In what kind of estate does ownership revert to the grantor of the estate if usage fails to conform to a stated condition in the grant?

43. If a tenant occupies a leased property without the consent of the landlord after a lease expires, the type of estate that results is called

44. A tenant in common can

45. If a joint tenant sells his or her interest to an outside party,

46. When a joint tenant dies, what happens to the tenant’s interest in the estate?

47. Which of the following is NOT required when recording a real property transfer in Florida?

48. In what kind of easement is there a dominant tenement and a servient tenement?

49. A court might grant an easement by prescription if

50. A lien is a

51. Which of the following best describes actual notice?

52. Title can be voluntarily transferred by

53. One of the conditions an adverse possessor must meet in order to obtain legal title to a property is

54. Among a landlord’s primary obligations in a lease is

55. Which type of map includes the property owner’s name, mailing address, sales data, valuations, building information, and site address?

56. A legal description of a property is one which

57. Which item would be included in the Florida Transfer Disclosure Statement?

58. The valuable consideration necessary to make a contract valid must be

59. A contract that conveys an interest in real estate must

60. Which of the following contracts can be assigned to another party?

61. An implied contract may be deemed to exist if

62. An agent signs a listing agreement with a home seller, but then becomes too busy to fulfill the agreement. To alleviate the problem, the agent assigns the agreement to a competing broker. Which of the following is true about this situation?

63. In assisting a buyer or seller to complete an offer to purchase, what should an agent do to reduce the risk of committing an unauthorized practice of law?

64. A buyer makes an offer to purchase a house, and the seller accepts the offer. Both parties sign the sale contract, but the buyer fails to provide an earnest money deposit. What are the seller’s obligations to the buyer?

65. What kind of interest does the buyer own after a real estate sale contract is signed by the principal parties?

66. Which of the following is true of a contract for deed transaction?

67. Mortgage financing is the practice of

68. What is the function of a note in a mortgage or trust deed financing arrangement?

69. If a borrower obtains an interest-only loan of $75,000 at an annual interest rate of 8%, what is the monthly interest payment?

70. Which of the following is true of an amortizing loan?

71. What is a loan-to-value ratio?

72. A loan applicant has an annual gross income of $36,000. How much will a lender allow the applicant to pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 28%?

73. A VA certificate of eligibility determines

74. The borrower in a mortgage loan transaction is known as the

75. If a lender discovers that an applicant for a mortgage loan has borrowed the down payment from a relative and has to repay that loan, the lender is likely to

76. The Federal Reserve’s Regulation Z applies to which loans?

77. Under the Equal Credit Opportunity Act, a lender, or a real estate agent who assists a seller in qualifying a potential buyer, may not

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

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

80. During the period between the signing of the sale contract and the closing date,

81. To avoid violating the Real Estate Settlement Procedures Act, parties who are providing services to the buyer or seller in a transaction must

82. Which of the following items is paid in arrears?

83. A sale transaction closes on April 1, the ninety-first day of the tax year. The day of closing belongs to the seller. Real estate taxes for the year, not yet billed, are expected to be $3,150. According to the 365-day method, what is the seller’s share of the tax bill?

84. If demand is increasing, what would be the likely effect on real estate prices in an area where the municipality has declared a moratorium on new construction?

85. According to federal banking law, which of the following is a “federally related transaction” requiring a certified appraiser to perform the appraisal?

86. Which of the following situations illustrates the principle of contribution?

87. Which of the following statements properly describes the central concept of the sales comparison approach?

88. The best comparable property for use in the sales comparison approach is the one that

89. Which of the following statements properly describes the methodology of the cost approach to appraisal?

90. A property is being appraised by the cost approach. The appraiser estimates that the land is worth $10,000 and the replacement cost of the improvements is $75,000. Total depreciation from all causes is $7,000. What is the indicated value of the property?

91. A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $30,000, vacancy and credit losses of $1,500, and operating expenses of $10,000. Using a capitalization rate of nine percent, what is the indicated value (to the nearest $1,000)?

92. The act that required federally-related appraisals to be conducted by a certified appraiser is known as

93. A house sold for $350,000. The seller paid a brokerage commission of six percent, legal fees of $600, and had other closing costs of $3,000. What are the net proceeds from the sale?

94. A homeowner bought a house five years ago for $250,000. Since then, the homeowner has spent $6,000 to pave the driveway and has added a central heating/air-conditioning system at a cost of $10,000. What is the homeowner’s adjusted basis if the house is sold today?

95. In Florida, unpaid property taxes become delinquent

96. Which of the following statements is true in regard to Florida’s Save Our Homes (SOH) amendment?

97. A homeowner receives a tax bill that includes an amount for the library district, taxed at $1.00 per $1,000, and the fire protection district, taxed at $2.00 per $1,000. How much does the taxpayer have to pay for these two items if the property’s taxable value is $470,00?

98. What is the purpose of the Florida Community Planning Act?

99. What is the relationship between master planning and zoning ordinances?

100. What is the difference between a variance and a nonconforming use?