question

A tenant was required to pay $1200 as security deposit. Three weeks after making the deposit, the landlord passed along to the tenant by phone the mandatory information concerning his deposit of funds. Why has the landlord violated F.S. 83?

answer

The landlord failed to notify the tenant in writing of the bank name, address, and other information regarding the deposit

question

Sales associate Donald hired Sam as a personal assistant. Sam normally spent his day preparing marketing material under the direction of Sam. However, when Donald was out of town, Sam handled transported a contract to Donalds sellers to get it signed. What describes this situation?

answer

This is a legal act as long as he acted only as a courier

question

Which property is exempt from property taxes? 1) Church 2) County courthouse 3) Public school 4) Air force base

answer

Church

question

If the Federal Reserve votes to raise the discount rate, how will this likely affect interest rates on short-term credit? 1) They will likely increase 2) They will likely decrease 3) There will likely be no effect because the discount rate affects mortgage rates only 4) There will likely be no effect on short-term rates because the discount rate is charged directly to borrowers

answer

They will likely increase

question

When complaints of an alleged violation of the Florida statute, DBPR rule, or FREC rule; the following steps are taken in the following order 1) A complaint is filed, an investigation of the complaint is made, an informal hearing is conducted, a probable cause hearing is held, a formal complaint is issued if probable cause was found, a formal hearing is conducted, a final order is issued and finally a Judicial review is made (if initiated by the licensee) 2) A complaint is filed, an investigation of the complaint is made, a probable cause determination is made, a formal complaint is issued if probable cause was found, an informal hearing or formal hearing is conducted, a final order is issued and finally a Judicial review is made (if initiated by the licensee) 3) A formal complaint is issued, an investigation of the complaint is made, a probable cause determination is made, an informal hearing or formal hearing is conducted, a final order is issued and finally a Judicial review is made (if initiated by the licensee) 4) A complaint is filed, an investigation of the complaint is made, a probable cause determination is made, a formal complaint is issued if probable cause was found, formal hearing is conducted, a Judicial review is made, a final order is issued.

answer

A complaint is filed, an investigation of the complaint is made, a probable cause determination is made, a formal complaint is issued if probable cause was found, an informal hearing or formal hearing is conducted, a final order is issued and finally a Judicial review is made (if initiated by the licensee)

question

The constitutional homestead law protects real property from forced sale to satisfy which type of delinquent debt?

answer

1) Real property taxes 2) Mortgage lien on the homesteaded property 3) Construction lien for home improvements 4) Credit card debt

question

The federal telemarketing laws restricts telephone solicitation calls to what hours? 1) 8:00 AM to 5:00 PM 2) 8:00 AM to 6:00 PM 3) 8:00 AM to 9:00 PM 4) 9:00 AM to 8:00 PM

answer

8:00 AM to 9:00 PM

question

Which lien is an example of a superior lien? 1) Judgment 2) Income tax 3) Vendor 4) Special assessment

answer

Special assessment

question

If a tenant vacates rented premises at the end of a lease, how many days does the landlord have by law to notify the tenant if the landlord intends to claim part of the tenants security deposit?

answer

30 DAYS

question

An appraiser is estimating the value of a villa with an attached garage. She found three comparable villas however none of the comps have pools only carports. The appraiser estimates that the garage has a value of $18,000. How would the difference be handled? 1) Add $18,000 to the mid-priced comp only 2) Add $18,000 to all the comps 3) Subtract $18,000 from all the comps 4) Subtract $18,000 from the subject property

answer

Add $18,000 to all the comps

question

Which is not a remedy for breach of contract? 1) Compensatory damages 2) Specific performance 3) Liquidated damages 4) Mitigated performance

answer

Mitigated performance

question

A sales associates license expired 20 months ago. What MUST this sales associate do to again work as a real estate sales associate? 1) Complete Course I and pass the end-of-course exam 2) Complete 14 Hours of continuing education 3) Complete a 28-Hour Commission-prescribed education course 4) Pass the state license exam

answer

Complete a 28-Hour Commission-prescribed education course

question

If 2 discount points were purchased by the buyer on a conventional mortgage of $100,000, what would the effect be? 1) The lenders yield would increase by ¼% 2) The buyer would have to pay $2000 for the cost of the discount points 3) The buyer would experience a reduction in interest rate compared to not purchasing the points 4) All of the above

answer

All of the above

question

The established useful asset life for nonresidential income-producing property under the IRS code is what number of years? 1) 15.5 2) 27.5 3) 31 4) 39

answer

39

question

Which activity is NOT a real estate service? 1) Mortgaging real property 2) Advertising real property 3) Renting real property 4) Auctioning real property

answer

Mortgaging real prope

question

Which statement is TRUE regarding homeowners association disclosure requirements? 1) The contract is not voidable even if the disclosure summary is not provided to the buyer before executing the contract 2) The buyer cannot waive the right to void the contract if the disclosure has not been provided 3) The buyer is advised to execute the contract without receiving hoa disclosures 4) If the buyer decides to walk away from the contract, he can do so verbally

answer

The buyer cannot waive the right to void the contract if the disclosure has not been provided

question

caveat emptor

answer

let the buyer beware

question

margin

answer

A premium added to the index rate representing the lender's cost of doing business. Associated with Variable Rate Mortgages. Also called "spread"

question

morgagee

answer

a lender in a loan transaction

question

mortgagor

answer

person who is receiving the loan funds

question

Nonconforming loan

answer

A loan that doesn't meet loan standards set by fannie Mae or Freddie Mac. Often exceeding loan limits

question

Certificate of reasonable value (CRV)

answer

A required form indicating the appraised value of property being financed with a VA loan.

question

anti-trust laws

answer

Laws designed to encourage the open market by making it illegal to conspire to eliminate competition.

question

ANTI-TRUST LAWS Price-fixing

answer

setting rates across competitors

question

ANTI-TRUST LAWS Market allocation

answer

agree not to compete in specific areas

question

commingling

answer

The illegal act of placing client or customer funds with personal funds

question

conversion

answer

the illegal use of money received on behalf of the principal

question

procuring cause

answer

the acts of a real estate licensee that created the sale of property despite who has written the contract

question

discount point

answer

a term used for a percentage of the principal loan amount charged by the lender. each point is equal to 1% of the loan amount

question

short sale

answer

sale of a property in which the sales price is less than the remaining unpaid balance of the mortgage debt.

question

subject to

answer

a clause in a contract specifying exceptions or contingencies of a purchase.

question

real estate

answer

land plus extending downward to the center of the earth and upward infinitely into space, including all things permanently attached to it, whether naturally or built.

question

real estate recovery fund

answer

A fund established to cover claims of aggrieved parties who have suffered monetary damage through the actions of real setae professionals. conditions apply to collect from the fund.

question

revocation

answer

canceling or annulling license privileges or rights.

question

civil rights act of 1866

answer

the act that prohibits racial discrimination in the sale and rental of housing-without exception.

question

blockbusting

answer

the illegal practice of inducing homeowners to sell their property by making representations regarding the entry of prospective entry of persons of a particular race or national origin into the neighborhood.

question

FAIR HOUSING ACT

answer

The federal law that prohibits discrimination in housing based on race, color, religion, sex, disability, familial status, and national origin.

question

appurtenant easement

answer

an easement that is annexed to the ownership of one parcel and allows the owner use of the neighbor's land.

question

condemnation

answer

A proceeding to exercise the power of eminent domain, through which government agency takes ownership of private property for public use. Fair compensation is given to the owner.

question

deed restrictions

answer

Clauses contained within a deed limiting the future use of the property. Deed restrictions may impose a variety of limitations and conditions such as the size of buildings or the types of buildings that can be built.

question

dominant tenement

answer

A property that includes in its ownership the rights to use an easement on another's property.

question

usury

answer

charging interest at a higher rate than the maximum rate established by state law.

question

easement

answer

a right to use the land of another for a specific purpose, such as rights-of-way or utilities.

question

easement by necessity

answer

An easement allowed by law as necessary for the full access of a parcel of real estate.

question

reproduction cost

answer

The construction cost at current prices of an exact duplicate of the subject property.

question

conveyance

answer

Transferring title to a real property.

question

acre

answer

land equal to 43,560 square feet

question

air lots

answer

designed airspace over a piece of land. an air lot, like surface property, may be transferred

question

market value

answer

the most probable price that a property would bring in an arm's length transaction under normal conditions on the open market.

question

base line

answer

The main imaginary line running east and west crossing a principal meridian (north/south) at a definite point in the government survey system of legal description.

question

benchmarks

answer

permanent reference marks or points established for use by surveyors in measuring differences in elevation.

question

datum

answer

a horizontal plan from which heights an depths are measured.

question

variable rate mortgage

answer

A mortgage loan in which the interest rate varies depending on market conditions.

question

front footage

answer

The measurement of a parcel of land by the number of feet of street or road frontage.

question

regulation z

answer

Implements the Truth and Lending Act, requiring credit institutions to inform borrowers of the true cost of obtaining credit

question

acknowledgement

answer

A formal declaration made before a duly authorized officer, usually a notary public, by a person who signed a document.

question

alienation

answer

The act of transferring property to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession.

question

bargain and sale deed

answer

A deed that carries with it no warranties against liens or other encumbrances but that does not imply that the grantor has the right to convey title. The grantor may add warranties to the deed.

question

reversionary right

answer

The return of the rights of possession and quiet enjoyment to the lessor at the expiration of the lease. Or at the end of a life estate.

question

deed in trust

answer

An instrument that grants a trustee under a land trust full power to sell, mortgage, and subdivide a parcel of real estate. The beneficiary controls the trustee's use of these powers under the provisions of the trust agreement.

question

devise

answer

A transfer of real property by will. The decedent is the devisor and the recipient is the devisee.

question

law of diminishing returns

answer

The point at which additional property improvements do not increase the property's income value. over improvements.

question

execution

answer

the signing and delivery of an instrument. also, a legal order directing an official to enforce a judgment against the property of a debtor.

question

abstract of title

answer

the history of the recorded ownership of real estate

question

actual notice

answer

being served.

question

Attorney's opinion of title

answer

An abstract of title that an attorney has examined and has certified to be, in the attorney's opinion, an accurate statement of the facts concerning the property's ownership.

question

marketable title

answer

good or clear title, reasonably free from the risk of litigation over possible defects.

question

mortgage insurance premium (MIP)

answer

The FHA insurance that is a percentage of the loan amount that the borrower is charged as a premium

question

gross income supplier (GIM)

answer

a figure use as a multiplier of the gross annual income of a property to produce an estimate of the property's value; usually use for commercial property. (more that 4 units)

question

private mortgage insurance (pmi)

answer

Insurance provided by a private carrier that protects a lender against loss in the event of a foreclosure and deficiency.

question

single agency

answer

agency relationship in which the agent represents only 1 party to the transaction. involves fiduciary duties.

question

negligent misrepresentation

answer

occurs when the real estate professional "should have" known that a statement about a material fact was false.

question

fiduciary relationship.

answer

A relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.

question

dual agency

answer

Representing both parties to a transaction as their fiduciary agent. Illegal in Florida.

question

economic life

answer

the number of years during which an improvement will add value to land.

question

RESPA (REAL ESTATE settlement procedures act) respa

answer

The federal law that requires certain discourses to consumers about mortgage loan settlements. The law also prohibits the payment of receipt of kickbacks and certain kind of referral fees.

question

options

answer

aN agreement to keep open for a set period an offer to sell or purchase property. options are unilateral contract as they only obligate the seller to the terms during the offer period. must be in writing.

question

statue of frauds

answer

state law that requires certain instruments, such as deeds, real estate sales contracts, and certain leases, to be in writing to be legally enforceable.

question

special assessment

answer

a fee imposed against specific parcels of real estate that will benefit from a proposed public improvement like a street or a sewer.

question

net lease

answer

a lease requiring the tenant to pay not only net but also cost incurred in maintaining the property, including taxes, insurance, utilities, and repairs.

question

triggering terms

answer

specific credit terms such as down payment, monthly payment, and amount of finance charge or term of loan that when used in an advertisement means that specific disclosures must be made per the Truth in lending act.

question

tax basis

answer

the point from which gains and losses are figured for tax purposes.

question

truth in lending act (TILA)

answer

feDERAL government regulates the lending practices of mortgage lenders through this act.

question

assessment

answer

the imposition of a tax, charge, or levy.

question

assessed value

answer

the value set on a property for taxation purposes.

question

ad valorem tax

answer

general tax. a tax levied according to value, generally used to refer to real estate tax.

question

index

answer

an objective economic indicator to which the interest rate for an adjustable-rate mortgage is tied.

question

acceleration clause

answer

mortgage clause that causes the entire balance to become due.

question

accretion

answer

the process of additional land through deposits.

question

alluvion

answer

increased land through deposits- the land deposits, not the process (the process is called accretion)

question

attorney in fact

answer

the person who is authorized to perform an act for another through possessing power - of-attorney

question

blanket mortgage

answer

one mortgage covering more than one parcel.

question

blind advertising

answer

advertising property for sale or rent without properly disclosing the brokerage information.

question

buffer zone

answer

land separating one land use from another.

question

bundle of rights

answer

legal rights that attach to ownernship of property; disposition, enjoyment, exclusion, possession and control.

question

chattel

answer

personal property

question

concurrency

answer

Stipulation in florida's growth ACT that requires water and treatment provisions to be in place prior to approval of growth.

question

decedent

answer

person who is an heir

question

dedication

answer

giving of land by a developer to the government

question

defeasance clause

answer

obligates the lender to surrender the title once the terms of the loan have been met.

question

Designated sales associate

answer

Allowable only with commercial sales (4 or more units) where by both parties have assets of 1 million or more and are represented by sales associates within the same brokerage as single agents.

question

escheat

answer

ownership of property passes to the state when an owner dies without a will or heirs.

question

estate by entirety

answer

husband and wife ownership of property

question

estate in severalty

answer

single ownernship

question

going concern value

answer

value that includes reputation as well as property

question

good faith doubt

answer

when a broker is unsure of whether earnest money should be returned to the buyer or seller

question

granting clause

answer

deed provision that specifics the parties involved in the transfer and includes the words of conveyance.

question

habendum clause

answer

To have and to hold....clause in the deed describing the interest being conveyed.

question

hypothecation

answer

the pledging of property as a security for a loan.

question

immune property

answer

when no property tax is paid on the property as it is owned by the government.

question

intermediation

answer

deposits pooled together

question

intestate

answer

to die without a will

question

laissez-faire

answer

non-interference of the government

question

lis pendens

answer

when a legal action is pending

question

littoral rights

answer

rights of owners of land abutting an ocean, sea, or lake-associated with tides.

question

mechanics lien

answer

lien place against a property due to work done by someone such as a roofer. also called a construction lien.

question

note

answer

the instrument that lays out the terms of a loan.

question

novation

answer

the substitution of one party for another removing the original party from being liable.

question

package mortgage

answer

A loan common in commercial real estate that covers real property and personal property.

question

percentage lease

answer

when a tenant pays a base rent plus a percentage of geo sales.

question

planned unit development (PUD)

answer

a type of development where mixed land use is carefully laid out and allows for huh density of population.

question

plottage

answer

value that is added by combining property

question

primary mortgage market

answer

there marker where the buyer secures a loan

question

quasi-judicial

answer

FREC powers which include the ability to discipline licensees.

question

quasi-legislative

answer

FREC powers which include the ability to create rules and regulations.

question

quit claim deed

answer

to convey title without assurances except releasing any claim of ownership.

question

real estate investment trust (reit)

answer

pooling investment money to become property owners.

question

restrictive covenants

answer

whereas deed restrictions may be placed on one parcel, restrictive covenants are restrictions on an entire development

question

reparian rights

answer

ownership along the banks of rivers and streams. remember littoral rights deals with tides such as oceans

question

SITUS

answer

The affect of a buyer's desire for location on a property's value.

question

steering

answer

direct buyers to or away from an area of town based on them being a member of a protected c

question

stipulation

answer

agreement between licensee and attorney for the DBPR as to a penalty a license faces- avoids having a hearing.

question

tenancy at sufferance

answer

when a tenant continues to reside in a property after the lease has ended.

question

tenancy at will

answer

when a tenancy can be terminated with notice.

question

township

answer

6 miles by 6 miles divined into 36 sections

question

vendor's lien

answer

a lien creed by the seller when a purchase money mortgage is provided by the seller

question

voluntary relinquish

answer

when a licensee requests that the DBPR cancel a license

question

writ of supersedeas

answer

the instrument that puts a stay of enforcement in place (which postpones the implementation of a decision by FREC)

question

YIELD

answer

The rate of return.

question

Homeowner Association Disclosure - Florida Statute 720

answer

Florida law, chapter 720 F.S., requires disclosure of important Homeowner's Association, ( HOA) information prior to signing a contract for sale. If the disclosure is not given, the purchaser is not bound and may cancel the contract at any time before closing. The homeowner association disclosure must be supplied by the developer, or by the parcel owner if the sale is by an owner that is not the developer. Any contract or agreement for sale shall refer to and incorporate the disclosure summary and shall include, in prominent language, a statement that the potential buyer should not execute the contract or agreement until they have received and read the disclosure summary required by this section.

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