COMPASS PRACTICE EXAM

Which of the following professionals involved in the real estate business are most concerned about managing real estate for clients?

Authorities conduct comprehensive land use planning in order to

A shop was originally built in a commercial zone. The zone has since been changed to a residential zone. Zoning authorities permit the use, most likely as

A government entity takes title to a leased property by way of eminent domain. What happens to the lease?

In Florida, when a tax certificate is purchased at a tax certificate sale, the certificate is valid for

An example of conversion is

A suburb has a growing need for single-family housing, but the land available for new construction is running low. In this case, it is likely that the price of existing homes

In the contracting process, a licensee must be careful to avoid

An important characteristic of a promissory note is that a. it

A type of agency relationship that is illegal in Florida is

In the sale of a business, liabilities are considered when

An income property is bought for $500,000. Gross income is $100,000, and net operating income is $60,000. Cash flow is $10,000. What is the return on investment (ROI)?

A primary objective of residential zoning is to

A broker responsible for handling a trust account is violating the law by

In which type of community is there a governing body responsible for providing community development services?

Interests in a condominium differ from those in a cooperative, in that

An office building rents for $600,000, has expenses of $400,000, and a cash flow of $100,000. The prevailing gross rent multiplier is 8. Using the GRM, what is the value of the building?

A property is purchased for $200,000. Improvements account for 75% of the value. Given a 39-year depreciation term, what is the annual depreciation expense?

A parcel is described as the SW 1/4 of the N 1/2 of the E 1/2 of Section 14. What is its acreage?

An option-to-purchase expires. The landlord agrees to extend it in exchange for a higher price. The optionee claims he can exercise the option within the redemption period. Which is true?

A person has occupied a property for seven years, and no one has ever attempted to evict her or cooccupy the parcel. In this case, the person might base a claim of legal ownership on

An owner completes a contract to sell her property. Before closing, she runs into financial trouble and assigns the contract to her mortgagor. Which of the following is true?

A real estate license ceases to be in force when

An owner obtains a loan and gives the mortgagee a mortgage on the property as collateral. The mortgagor/owner retains title to the property, and the mortgagee records a lien. This is an example of

A lender may terminate foreclosure proceedings if the defaulting borrower executes

Florida disclosure requirements apply to

A homeowner’s tax bill for a taxing district is derived by

Florida places an intangible tax on

A landlord promises to compensate a broker for procuring a tenant, provided the landlord’s brother decides not to rent the property within a month. This would be an example of a(n)

Real estate can be defined as

Dower can best be defined as

An agent obtains a listing which ensures compensation for procuring a customer, provided the agent is the procuring cause. This agent has entered into a(n)

A landlord refuses to rent to a single pregnant woman. The woman feels there has been illegal discrimination. How long do she have to file a complaint with the Florida commission on Human Relations?

Buyers and sellers rely on escrow accounts in order to

A lender is charging 2.75 points on a $240,000 loan. How much must the borrower pay for points?

A $250,000 interest-only loan carries a 7% rate. Monthly payments are

An Assessor Parcel Number’s primary use is

What is an agent’s duty regarding inspections?

An owner’s agent is showing a buyer an apartment building. The buyer questions the agent as to whether some cracking paint contains lead. The agent’s best course of action is to

A warehouse building lacks sufficient ceiling height for the operation of modern forklifts. This is an example of

A distinct feature of a joint tenancy is that joint tenants

What is mediation?

An unlicensed applicant may be denied licensure if he presented himself as a licensee prior to applying for a license

A sales associate or broker associate must notify the FREC of a change of employing broker within ___ of the change.

A Florida licensee representing an owner as a single agent must be careful to