Fl Real Estate Final Review

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Can a CMA be referred to or represented as an appraisal?: No
Involves purchasing one or more lots and constructing a home without securing a buyer in advance of construction.: Spec Home
What are the two types of Real Estate Licenses?: Sales Associate and Broker
Will you ever see "Broker Associate" on a license?: No, it will just say Broker.
Should you disclose information about Shoplifting on your Real Estate Application?: Yes
Should you disclose information about No lo contendre on your Real Estate Application?: Yes
Should you disclose information about bankruptcy on your Real Estate Application?: No
Should you disclose information about Reckless Driving on your Real Estate Application?: Yes
Should you disclose information about a misdemenor on your Real Estate Application?: Yes
Should you disclose information about being denied a state license in another state on your Real Estate Application?: Yes
Any resident licensee who becomes a nonresident must notify the Commission within how many days of the change in residency and comply with all nonresident requirements?: 60
All licensees are required by rule to inform the DBPR in writing of a change in mailing address within how many days after the change?: 10
Each licensee who applies for Florida licensure from a state or jurisdiction that has a current mutual recognition agreement with Florida must do what?: Take and pass a written Florida-specific real estate law examination which consists of 40 questions.
Before the first renewal date, what are the consequences of not completing the 45-hour post licensing education course?: It will become null and void, and you will need to requalify by repeating the prelicensing course and retaking the state licensing exam.
Under what condition can a Florida broker pay a referral fee to a broker licensed in another state?: So long as the foreign broker does not violate Florida law.
FREC consists of how many members?: Seven
Four members of the FREC must be what?: Licensed Florida Real Estate Brokers who have held active licenses during the five years preceeding the appointment.
Two members of the FREC must be what?: Consumer members who have never been real estate brokers or sales associates.
One member of the FREC must be what?: Licensed broker or sales associate who has held an active license during the two years preceding appointment.
Who appoints commission members of the FREC?: The Governor
How many years do FREC commission members serve?: Four years, and cannot serve for more than two consecutive terms.
At least one member of the FREC must be how hold?: 60 or older
What are the responsibilities of the Quasi-judicial area of FREC?: responsibilities include the power to grant or deny license applications, to determine license law violations, and to administer penalties.
Licensees must notify the DBPR in writing within how many days of a change in current mailing address?: 10
Real estate licenses expire on which two dates?: March 31st or September 30th
For the first renewal, explain the dates for assigning a renewal date: At least 18 months, but not to exceed 24 months.
When a licensee has been involuntary inactive for more than 12 months, but less than 24 months, licensees are required to do what?: complete two 14 hour continuing education courses
A term used to mean that a sales associate is registered with an owner-developer who owns properties in the name of various entities.: Group License
Residential Sale consists of what?: Defined as the sale of residential property of four or fewer units, or the sale of agrigultural property of ten or fewer acres.
Disclosure requirements of a residential sale do not apply to:: Non residential transactions, rental or leasing of property, auctions, appraisals, dispositions of any interest in business opportunities, except for properties with four or fewer residential units.
What must be included on the sign of all active real estate brokerage offices?: Broker's Name
Trade Name if one used
The words "licensed real estate broker"
Brokers must immediately place trust funds into their escrow account no later than when?: the end of the third business day after their sales associate has received it.
Sales associates must immediately deliver earnest money deposits to their broker-employer no later than when?: the end of the next business day
What are the three exceptions to the notice requirements for sales escrow accounts:: Hud Owned Properties
Condos
Financing falls through
Process whereby with the consent of all parties to the dispute, the matter is submitted to a disinterested third party.: Arbitration
Under what circumstance do advance fee requirements not apply?: Real estate brokers auctioning real property
What is the Finder's Fee exemption?: What a property management firm or owner of an apartment complex pay, up to $50, to an unlicensed person who is a tenant.
Can a corporation sole be registered as a real estate broker?: No
Composed of two members of the FREC who are appointed by the chairperson of the commission.: Probable-cause panel
A session which testimony and arguments are presented, especially before an official.: Hearing
In order for a licensee to continue practicing real estate during the appeal process, the court must grant what?: A stay of enforcement
To obtain a stay of enforcement of the final order, the court must first issue this.: Writ of supersedeas
Statements of alleged violations and the penalties to be imposed.: Citations
A licensee receiving a citation has how many days to accept or reject the alleged violations?: 30
Violation of F.S. 475 or any lawful order, rule or regulation is legally a what?: Misdemeanor
Why can a corporation only be fined?: A corporation cannot be imprisioned
Which two violations of real estate license law are first degree misdemeanors?: Unlawfully collecting an advance fee for listing a real property

Failing to provide accurate and curent rental information for a fee
What is the penalty for a first degree misdemeanor ?: A fine of not more than $1,000 and/or up to one year in jail.
What is the felony of a person performing real estate services for compensation without a real estate license?: Third degree
prohibits any type of discrimination based on race in any real estate transaction without exception.: Civil Rights Act of 1866
Blockbusting is a violation of what?: The Fair Housing Act
Use the entry, or rumor or the entry, of a protected class into a neighborhood to persuade owners to sell: Blockbusting
Ensures that financial institutions and firms engaged in extending credit will make credit available with fairness and without discrimination on the basis of race, color, religion, national origin, sex, marital status, age or receipt of income from publi: Equal Credit Opportunity Act
When borrowers apply for a mortgage, loan, they must be given which RESPA disclosures?: Special Informatio Booklet

Good Faith Estimate

Servicing Disclosure Statement
How soon do borrowers need to receive RESPA disclosures?: At time of loan application, or within three business days.
What is the only way to commingle funds?: Post a surety bond with the clerk of the circuit court in the total amount of the security deposits and advance rents, or $50,000, whichever is less, and pay the tenant 5% per year simple interest.
The landlord has how many days to notify the tenant if he/she intends to impose a claim on the deposit.: 30
Gradual receding of water, uncovering additional land.: Reliction
Movable items not attached to real property: Personal Property
Item of personal property converted t oreal property by attaching it to the real property with the intention that it become permanently a part thereof: Fixture
When the life estate ends, the property reverts to the original grantor or goes to a third party called: Remainderman
The size of homesteaded property is restricted to: 160 acres outside a municipality or up to 1/2 acre if the property is located within the city.
Owners purchase shares of stock in the corporation, and the result of the stock purchase is that the ownership of hte stock entitles the purchaser to a: Proprietary Lease with the right to occupy the unit for the life of the corporation.
Instrument by which a condominium is created. It describes the interest that each purchaser aquires and the rights and liabilities of the unit owners.: Declaration
A prospective purchaser of an existing condominium unit who has entered into a contract for purchase must receive, at the sellers expense, the following five documents:: Declaration of Condominium

Articles of Incorporation of the association

Bylaws and rules of the Association

Same year end Financial information the condo association provided to owners the previous year

Frequently Asked Questions
Requires that the developer include a disclosure in the contract stating that the buyer of a new residential unit may cancel the contract within: 15 days of signing the contract
Defined as a written instrument used to convey an interest in real property.: Deed
What does a deed convey?: Legal title
A legal instrument used to convey title to real and personal property after someone's death.: Will
Indicates the deceased prepared a will during his or her lifetime.: Testate
Provides for a government, normally a state government, to take the property of an owner who dies intestate and without any known heirs entitled to receive the property.: Escheat
Accomplished by recording the information in the public records.: Constructive notice
Issued for the total purchase price of the property.: Owner's policy
Is an owner's policy transferrable?: No
Issued for unpaid mortgage amount: Lender's policy
Is a lender's policy transferrable?: yes
Promise that the grantor owns the property and has the right to convey title: Covenant of seisin
To have and to hold: Habendum clause
Contains all the convenants and warranties available to give the grantee every possible future guarantee to title protection.: General Warranty Deed
Guarantees the grantor will forever warrant and defend the grantee's title against all lawful claims.: Warranty Forever
Transfer of title to property is not effective until: the conveyance instrument (usually a deed) is delivered to and accepted by the grantee
The tenant pays fixed rent plus property costs such as maintenance and operating expenses.: Net Lease
Net Leases are used typically on which type of property?: Commercial
The terms Net, Net-Net, and Triple-Net mean what?: used in commerical real estate where each net indicates the tenant is assuming more and more expenses.
If a property owner changes the designated rental agent, all security deposits or advance rents being held by the former rental agent must be: transferred to the new agent with an accounting showing the amounts to be credited on each tenant's behalf.
mortgage lien and a Vendor's lein: Associated with Voluntary alienation
a judgement lien, property tax lien, federal income tax lien, special assessment lien, State intangible tax lien, Estate tax lien, construction lien: Associated with involuntary Alienation
A buyer of property is unable to make the full down payment required, the seller will allow a: purchase money mortgage to make up the money the buyer is unable to produce.
Any portion of the sale price remaining unpaid to the vendor creates a: vendor's lien
What is the vertical strip 6 miles west of the Tallahassee Principle Meridian: R1W
How many sections are in a town ship: 36
Each section in a township is how many miles across?: 1
Fractional pieces of land less than a full quarter section located along the banks of lakes and streams.: Government lot
How many acres are in one section?: 640
How many square feet in an acre?: 43,560
In order to be enforceable, contracts that convey an interest in real property must be: In writing and Signed
The statute of frauds applies to the following types of contracts:: Purchase and Sale
Option
Lease agreements for more than one year
Listing agreements for more than one year
What is the statute of limitations for oral contracts?: 4 years
A valid enforceable contract has four essentials:: Contractural capacity of the parties (competent)

Offer and acceptance

Legality of object

Consideration
If a buyer did not receive a HOA disclosure the contract is: Voidable
a contract, but because of the manner or method in which it was brought about, one of the parties is permitted to avoid his or her contractual duties.: Voidable Contract
Must a seller perform a lead-based paint test?: No, just provide the disclosure
Title to a mortgaged property is conveyed to: the lender through a mortgage deed
Refers to pledging of property as security for payment of a loan without surrendering possession of the property: Hypothecation
Authorizes the mortgagee to accelerate or advance the due date of the entire unpaid balance if the mortgagor does not remedy the default.: Acceleration Clause
Requires that the lender waive the right to a deficiency judgement against the borrower. It relieves the borrower of personal liablitiy to repay the loan.: Exculpatory Clause
Because they do not have a due-on sale clause, VA loans are: assumable, even by non-veterans
Are closing costs for a VA loan included?: No
In a contract for deed the title to the real property: remains with the seller until the loan is paid.
Occurs when the monthly mortgage payment amounts are less than needed to pay the monthly interest costs, causing unpaid amount to be added to the loan balance.: Negative Amortization
Designed to aid the elderly homeowners where they exchange equity they have aquired in their homes over a period of years for monthly income.: Reverse Annuity Mortgage
Rapidly increases the equity in a property by increasing the monthly payments by a certain percentage each year, and applying these increases to the principal.: Growing Equity Mortgage
FHA requirements currently allow up to what percentage for Housing Expenses and Monthly gross income?: up to 29
FHA requirements currently allow up to what percentage for Total Monthly obligations and Monthly gross income?: up to 41
The formula to calculate the Housing Expense Ratio is:: Monthly Housing Expense (PITI) divided by Monthly Gross Income
The formula to calculate the Total Obligation Ratio is:: Total Monthly obligations divided by Monthly Gross Income
How do you calculate the loan to value ratio?: Loan Amount divided by Price equals the LTV
The central bank of the United States: The Federal Reserve
What does the Federal Reserve influence?: Availability of funds

Cost of money and credit
The federal Reserve System consists of: 7 member board of governors
12 Reserve Banks located across the nation
Members of the Board of Governors are appointed by: the president and confirmed by the senate
The interest rate charged member banks for borrowing money from the Fed: Discount Rate
The amount of funds that an institution must hold in reserve against deposit of liabilities.: Reserve requirements
federal agency that plays an important role in achieving the HUD's goal of providing low cost mortgage credit to traditionally underserved sectors of the housing market.: Ginnie Mae
A method of increasing a lender's yield.: Discount Points
Explain the first step to amortizing a mortgage: Principl balance x Annual Interest divided by 12 equals the first month's interest.
Explain the second step to amortizing a mortgage: Monthly mortgage payment - first month's interest equals payment on the principal
Explain the last step to amortizing a mortgage: Beginning principal balance - principal payment equals new principal balance
Stamps on deed: $0.70 per $100
Stamps on notes: $0.35 per $100
Intangible on new mortgages: $0.002 per $1.00 of debt
Determined by its ability to command other goods in exchange.: Value
Refers to the amount of money for which a good is actually sold.: Price
The total expenditure required to bring a new improvement into existence plus the cost of the land.: Cost
The most profitable use to which a property may be put is the property's highest and best use which must be:: Legally permissable (zoning)

Physically possible

Financially feasible
In a Sales Comparison Approach, the Reconciliation percentages must equal: 100
If correction of a defect would result in as much added value as the cost to correct, the defect is said to be: curable
Defect in which the cost of curing the defect is greater than the value added by the cure.: Incurable
Anything inferior due to operational inadequacies, poor design, or changing tastes and preferences.: Functional Obsolescence
Any loss of value due to influences originating outside the boundaries of the property.: External Obsolescence
The age indicated by the structure's condition and utility.: Effective Age
The resulting amount when vacancy and collection losses are subtracted from potential gross income.: Effective Gross Income (EGI)
The resulting amount when all operating expenses are subtracted from effective gross income: Net operating Income (NOI)
The total annual income a property would produce with 100 percent occupancy and no collection or vacancy losses.: Potential Gross Income (PGI)
A rule of thumb for estimating the market value of income producing residential property; the ratio to convert rental income into market value.: Gross rent multiplier (GRM)
Rule of thumb for estimating the market value of commercial and industrial properties; the ratio to convert annual income into market value.: Gross Income Multiplier (GIM)
Refers to people's preferences, both physical and economic, for a certain area owing to factors such as weather, job opportunities, and transportation facilities.: Situs
interior lots that suffer from their location due to the car headlights shining in the house.: T-Intersection lot
Pressure-treated lumber is treated with: chemicals to make it resistant to wood rot and termites.
Balloon framing is more expensive type of construction compared with platform construction because: the cost of quality 18 to 20 foot studs and higher labor costs.
How is a roof's pitch measured?: as the vertical distance or height in inches, divided by the horizontal distance in feet. (Rise/Run)
Work performed by the voltage and current is measured in: Watts
delivers potable water to the various parts of the home: High pressure system
carries wastewater away from the home: low pressure system
The ability to convert noncash assets into cash quickly; refers to a firm's cash position and it's ability to meet obligations.: Liquidity
Risk that can be transferred to an insurer such as the risk of vandalism, fire, and so forth.: Static Risk
If benefits from borrowing exceed the cost of borrowing, it is called: Positive Leverage
If the borrowed funds cost more than they are producing, it is called: negative leverage
What are the four methods of appraising businesses?: Comparable sales analysis
Reproduction or Replacement Cost less depreciation analysis
Income Capitalization Analysis
Liquidation Analysis
What is the first step in seeking an adjustment on the assessed value of your home?: contact the county property appraiser or representative of that office.
What are some examples of immune properties?: County courthouse and military facilities
To be eligible to file for the homestead tax exemption, applicants must: reside in the home and have legal title to the property as of January 1.
In addition to the regular homestead exemption, Veterans who are at least 10% disabled by military service connected misfortune are entitlted to: an additional $5,000 exemption
Caps how much the assessed value of homesteaded property may increase in a given year.: Save our home Amendment
Issed for each delinquent property: tax certificate
If homeowners itemize their deductions, they may deduct: Mortgage interest and Property Taxes
The owner's original cost plus buying expenses plus capital improvements: Adjusted basis
While reserve for replacements is deducted when determining NOI, when computing taxable income it is: not a cash expense, and is not deductible
The five characteristics of the real estate market that set it apart from other markets: Immobility of real estate

The market is slow to respond to change in supply and demand

Land is indestructible

Real estate is unique

Government controls influence on market through zoning, building codes, taxes, etc.
Name four variables that influence supply: Avalibility of skilled labor

Availability of construction loans and financing
Availability of land
Availability of materials
An analysis of employment in the primary industries of a region.: Economic Base Studies
Businesses that attract outside money into the area: Base Industries
Businesses that attract local money: Service Industries
Classification of real property for various purposes; the government power to control and supervise the utilization of privately owned real property.: Zoning Ordinances
Strip of land separating one land use from another.: Buffer zone
Allows a property owner to vary from strict compliance with all or part of a zoning code because to comply would force an undue hardship on the property owner.: Variance
Recorded in public record: constructive notice
mortgage payment goes up in percentage each year, therefore equity goes up: Growing Equity Mortgage
fixed amount: Net lease
Binder Deposit is a credit to whom: Buyer
In an ARM, add index to: margin
who Guarantees?: Ginnie Mae
Housing expense ratio for FHA is: 29%
State Doc Stamp Deed is on: Purchase Price
Does a deed have to be recorded?: No
Branch office of a bank is an example of: Base Industry
Mishandling Escrow funds is an example of: 2nd Degree Misdemeanor
Water right: Reliction
Size of lot on homesteaded property: 1/2 acre
A provision in a deed to real property that stipulates the estate or interest the grantee is to receive and the type of title conveyed.: Habendum
Purchase price mortgage: debit seller credit buyer
settlement costs: RESPA
Deed to be valid: properly witnessed
Tenancy by entireties: husband & wife
Good Faith: RESPA
Mortgage title policy: Mortgage Amount
Owners title: protects buyer
Owner owns and has the right to convey: Seisin Clause

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