Deck 1: Florida

Question 1

A real estate broker hired a sales agent and entered into a written contract of employment, designating then as an Independent Contractor. Such status permits the sales agent to do all of the following except:

A)Advertise listed properties in their own name
B)Sue to collect commission in their own name
C)Work for several brokers at one time
D)Perform their services only through their employing broker

Answer 1

Perform their services only through their employing broker

Question 2

A broker is required to keep their principal informed of all material facts. A broker who holds a listing from the seller must disclose which of the following facts when presenting an offer?

A)The purchaser is not of the Caucasian race
B)A cooperating broker will be presenting a higher offer the following day
C)The buyer's lender is insisting on an impound account
D)None of the above

Answer 2

A cooperating broker will be presenting a higher offer the following day

Question 3

Broker Newman sold a property owned by Robins to buyer Nichols. Later when the first rains of the season began, buyer Nichols found that the roof leaked badly. Thereupon, the buyer sued both the seller and the broker for the cost of the necessary repairs. In the same action, the seller sued broker Newman because seller Robins had told the broker of the leaky roof. Broker Newman's testimony revealed that the broker was aware of the leaky roof but had not mentioned it to buyer Nichols because "the subject never came up." Based on the foregoing information, the most likely result of the court action would be:

A)On the basis of the principle of caveat emptor, the buyer was not entitled to recover from either the broker or the seller
B)The buyer recovered from the broker, but the seller would not be considered liable
C)The buyer recovered from the seller, but the broker would not be liable
D)The buyer would be successful in the suit against both the seller and the broker; the seller would be successful in the suit against the broker

Answer 3

The buyer would be successful in the suit against both the seller and the broker; the seller would be successful in the suit against the broker

Question 4

Adams sold his house to Brooks, who did not record the deed, but took up residency there. Adams then sold the same property to Carr, who reviewed the county recorder's records, but did not examine the property. Adams gave Carr a deed, which Carr recorded. Which of the following would be true concerning title to the property?

A)Carr and brooks are co-owners of the property
B)Carr now owns the property because he recorded his deed first
C)Carr has recourse against Brooks for failure to record
D)Brooks maintains title

Question 5

For income tax purposes, on which of the following could depreciation be taken?

A)Raw land
B)Owner occupied residential property
C)Owner occupied farmhouse
D)Peach orchards

Question 6

For an inflation hedge, one would most likely put their money into:

A)A savings account
B)Government backed trust deeds or mortgages
C)Long term government bonds
D)Equity assets

Question 7

Certain factors to be considered in evaluating business property are given special names by appraisers. The name given to the factor which affords the advantage of display area and entrances on two streets is called:

A)Pedestrian court
B)Corner influence
C)100% location
D)Accessibility

Question 8

Principal characteristics of Fee Simple Title include all of the following EXCEPT:

A)It is free of encumbrances
B)It may be willed
C)It is transferable
D)It is of indefinite duration

Question 9

Olivia, the owner of Blackmore, sold it to Andrea, but reserved to herself a life estate, and remained in possession of it. Later, Olivia sold her life estate to Beatrice, and surrendered possession of it to her. Andrea then demanded immediate possession as the fee owner. In this situation:

A)Andrea is entitled to possession
B)Beatrice can sue for the return of her purchase price
C)Olivia is liable for damages to Andrea
D)Beatrice can retain possession as long as Olivia is alive

Question 10

Jed gives David a written option allowing David to buy Jed's house for $100,000 within eighteen months from the date of the option. David gives Jed $0.25 payment in exchange for the option. The option is:

A)Void for lack of sufficient consideration
B)Voidable for lack of consideration, but only at Jed's discretion
C)Valid; the consideration is sufficient
D)Unenforceable because the option right extends beyond one year

Question 11

Mortgage interest rates usually decrease when:

A)The supply of mortgage money increases substantially
B)Inflationary trends are on the upswing
C)Businesses are expanding and making large capital expenditures
D)The Federal Reserve Board increases the reserve requirements for member banks

Question 12

Which of the following would be in violation of Florida law concerning escrow accounts?

A)The real estate broker who holds an escrow for a buyer and a seller whom they had represented in the sale
B)The real estate broker who solicits escrows from their fellow brokers and agrees to make no charge for the work
C)The attorney at law who handles an escrow for a fee on behalf of their clients
D)The licensed escrow company that is incorporated and advertises for escrows for a fee

Question 13

The Real Estate Commissioner issues special permits to real estate brokers for:

A)Business opportunity transactions
B)Subdivision lot transactions
C)Mineral, oil, and gas transactions
D)Cemetery lot sales

Question 14

Under the Truth-in-Lending Law, which of the following is not to be included in the finance charge?

A)Appraisal fee
B)Loan points
C)Time/price differential
D)Finder's fees and similar charges

Question 15

Concerning the following, which would be correct?

A)A note is the security for a trust deed
B)A trust deed has more value than a note
C)A trust deed is security for a note
D)The note must be recorded to perfect a lien on the property

Question 16

A broker secures a listing, negotiates a sale, and the parties enter escrow. Before escrow closes, the broker's license is revoked, and the seller refuses to pay the commission because the broker is unlicensed. To collect the commission, the broker must do the following:

A)Prove that they introduced the buyer to the seller
B)Prove that they were licensed at the time of sale
C)Prove that they executed the sales contract
D)None of the above: The broker cannot sue for a commission in view of their license revocation

Question 17

Loans which are approved under the Federal Land Bank System are originated and serviced by:

A)The National Farm Loan Association
B)The Farm Home Administration
C)The Federal Land Bank System
D)National banks

Question 18

In a timeshare seminar that was advertised to 10,000 people, the timeshare people did not reveal the minimum attendance required for the prize giveaways. Is this a violation of the Real Estate Law?

A)No, the Real Estate Law does not regulate advertising for timeshares
B)Yes, anyone giving away prizes must disclose in advance the minimum attendance required for the giveaways
C)No, the law specifically allows the seller of the timeshare to surprise the consumer by requiring attendance at a presentation
D)Yes, unless the prize us in excess of $10,000

Question 19

A deposit receipt does not contain the clause that states that in case of buyer default, the broker is entitled to part of the buyer's forfeited deposit. If the buyer defaults, according to this contract, the broker is entitled to:

A)Half the normal commission
B)No commission
C)Half of the forfeited deposit
D)His full commission

Question 20

Under the "Bulk Sales Law', who would assume liability for stock-in-trade if no notice were given?

A)Seller
B)Buyer
C)Broker and creditors
D)Creditors

Question 21

After six lots have been sold in a subdivision, the Real Estate Commissioner is informed of misrepresentation in the sales program. The Commissioner could halt the sale of more lots by:

A)Voiding the public report
B)Attaching the unsold lots
C)Issuing a Desist and Refrain order
D)Filing an accusation in court

Question 22

A lease for a three-year term which called for rent to be paid quarterly expired. If at the end of the term, the landlord were to accept another payment of rent, the lease would be:

A)Extended another three years
B)A periodic tenancy
C)Extended for a term not to exceed one year
D)Cancelled in any event

Question 23

Marx usually takes a shortcut to one of his barns by driving across McDonald's land. He has been making the drive almost every day for the past twenty-eight years. McDonald had often asked Marx to stop this practice. Marx now says he has a legal right to continue this use of McDonald's land. Marx's right, if valid, is an easement by:

A)Necessity
B)Implication
C)Prescription
D)Misfeasance

Question 24

The annual residential tax obligation is determined by the:

A)Board of Equalization
B)Board of Supervisors
C)County Assessor's Office
D)Treasurer's Office

Question 25

A deposit receipt must contain a:

A)Termite clause
B)Subordination clause
C)Broker's safety clause
D)None of the above