Florida Real Estate Practice Exam

2024 Edition

Take this free Florida Real Estate Practice Exam to get an idea of the topics on the exam administered by the Florida Department of Business and Professional Regulation. The actual exam has 100 questions and 3 1/2 hours is given to complete it. For complete practice, check out our Complete 100 Question Florida Real Estate Sales Associate Practice Exam with the same number of questions as the actual exam plus 300 bonus core real estate questions.

View Answers as You Go

View 1 Question at a Time

1.	A statutory deed in which the grantor makes no warranties to the grantee about the quality or extent of the title being conveyed is:
		a. Special Warranty Deed
		b. Bargain and Sale Deed
		c. Quitclaim Deed
		d. General Warranty Deed
A quitclaim deed in Florida does not offer any warranty to the grantee. It conveys whatever interest the grantor has on the property. It is usually used to make corrections or to cure clouds on title. The quitclaim deed does not contain the clause of seizin and uses the words quitclaim, remise and release. The general warranty deed is the deed that conveys title with all guarantees to the grantee. Incorrect answer. Please choose another answer.

2.	Although real estate investment offers many advantages to an investor, it has some negative aspects as well. Which of the following is not a characteristic advantage of real estate investment?
		a. Rate of Return
		b. Leverage
		c. Liquidity
		d. Equity Buildup
The advantages of real estate as an investment are the rate of return, tax advantages, hedge against inflation, leverage and equity buildup. Real Estate is not considered a liquid investment in the short term. Incorrect answer. Please choose another answer.

3.	When a developer plans for a large project in Florida, studies need to be performed regarding the project's impact in the community before the city approves it. These studies are summarized in a:
		a. Planned Unit Development filing
		b. Environmental Impact Statement
		c. Special Exceptions Rider
		d. Developments of Regional Impact Statement
An Environmental Impact Statement is a summarized report that shows the long term impact of the project on waste-disposal systems, air quality, traffic, the local economy and so forth. Incorrect answer. Please choose another answer.

4.	Mark bought a house in an old neighborhood and remodeled it with high-end materials. He even hired a home decorator to give the last touches to it. The house looked beautiful, and Mark was pleased with it. However, a year later his employer offered him a better job in a distant location, and Mark decided to sell the house before relocating. After all, he would make good money on the sale because all the improvements he did to the house, and he will be able to buy in his new location instead of renting. Mark hired realtor Trevor who came by the house and prepared a Comparative Market Analysis for Mark. The results of the report were very disappointing for him because the house has not acquired enough equity to make the profit he imagined. This is an example of:
		a. External Obsolencence
		b. Overimprovement
		c. Market Conditions
		d. Physical Obsolencence
An overimprovement occurs when an owner invests more money than what is reasonably expected to recapture. External obsolescence is any loss in value due to changes in the neighborhood or area where the house is located, for example, an active Railtrack, a new speedway and anything that can make the location less desirable by prospective buyers. External obsolescence is incurable because it is out of the control of the property owner. Physical obsolescence is directly related to the condition of the property such as wear and tear, structural issues, defective air conditioning, old roof. Incorrect answer. Please choose another answer.

5.	How many acres are there in the N 1/4 of the NE ½ of the SW ¼ and the SE ½ of the NW ¼?
		a. 80 acres
		b. 20 acres
		c. 100 acres
		d. 2.5 acres
To determine the number of acres from the legal description of property, you first must remember that there are 640 acres in one section. 1. Take the denominators of each fraction in the legal description and multiply them. 4 x 2 x 4 = 32 2. Take 640 and divide by results of the multiplication of the denominators 640 ÷ 32 = 20 acres You must remember that if the legal description contains the conjunction “and” this means you need to do two separate transactions and add them at the end to arrive at the correct amount of acres. 3. Repeat step 1. 2 x 4 = 8 4. Repeat step 2. 640 ÷ 8 = 80 acres 5. Now add the results from steps 2 and 4 to find the total amount of acres. 20 acres + 80 acres = 100 acres. Incorrect answer. Please choose another answer.

6.	All of the following are protections granted by the Florida Constitution to homestead property except:
		a. Granting tax exemptions when assessing property taxes.
		b. Granting protection to the family in case of deceased of the titled owner.
		c. Granting protection of the size of homestead in case of Bankruptcy.
		d.Granting protection from enforcing of the vendor's liens.
Florida allows property owners to homestead their principal residence. The benefits of the homestead are the protection of the family in case the owner on the title dies and the allowance of up to $50,000 in property tax exemption. The Homestead also protects the size of the property (160 acres of contiguous land and improvements outside the city and ½ acre within the city) as well as the protection of personal property (up to $1,000) in case of bankruptcy and to protect from the forced sale to pay for personal debts. Nevertheless, the homestead does not protect from foreclosure if the homestead property is the collateral to a defaulted mortgage loan, neither from unpaid property taxes, special assessments, foreclosure for unpaid condo association fees or homeowners association fees, or vendor and construction liens secured by the property. Incorrect answer. Please choose another answer.

7.	The four essential elements of a valid contract are:
		a. The contractual capacity of the parties, Earnest money, Legal purpose, Consideration.
		b. Legal purpose, Consideration, Offer and acceptance, Notarization.
		c. Offer and acceptance, Consideration, Acknowledgment, Contractual capacity of the parties.
		d. Consideration, Offer and acceptance, Contractual capacity of the parties, Legal purpose.
For a real estate contract to be legally sufficient in Florida, the parties must be of contractual legal capacity, meaning that they are not mentally disabled and are of legal age to contract. Also, there must be consideration, which means the benefits each party bargains for. There should also be offer and acceptance; both parties need to agree on the terms of the contract voluntarily. The contract also should have a legal purpose, avoiding any illegal provision on it like establishing payments of commissions to parties who are not licensed. There is no legal need to acknowledge or notarize a real estate contract, nor to have earnest money or acknowledgment. Incorrect answer. Please choose another answer.

8.	Peter rents an office in a class A building in FL. He pays a monthly amount of $2,500 on an annual lease. The monthly payment includes the use of internet, electricity and cleaning. Peter has a:
		a. Net lease
		b. Percentage lease
		c. All inclusive Lease
		d. Gross Lease
In a gross lease in Florida, the tenant (lessee) pays a fixed amount that can include the payment for utilities and other related services while the landlord (lessor) pays for insurance, taxes, maintenance, and utilities. The net lease also is known as "triple net," on the contrary, makes the tenant responsible for expenses of maintenance, utilities, taxes, and insurance. The percentage lease stipulates that the tenant will pay rent based on the gross sales received from his business in the leased property. There is no all-inclusive lease. Incorrect answer. Please choose another answer.

9.	A building of 1200 units has currently 348 units for rent. Calculate the building vacancy rate.
		a. 33%
		b. 71%
		c. 29%
		d. 41%
Calculate the vacancy rate as follows: The number of vacant units available for rent divided by the total number of units in the building will determine the vacancy rate. 348 vacant units ÷ 1200 units = 0.29 or 29% vacancy rate. Or you can use the following forumula: 1200 units x R/100 = 348 units 1200 x R/100 = 348 1200 x R = 34,800 R = 29% vacancy rate Incorrect answer. Please choose another answer.

10.	In Florida, the priority of mortgage liens is determined by:
		a. The date of the closing.
		b. The date of the application for the mortgage loan.
		c. The date of recording.
		d. The date of the loan approval.
The priority of a mortgage lien is determined by the date in which the document is registered with Clerk of the Courts in the county in which the property is located. This is also known as the recording date of the document. The date of the application, loan commitment or closing is not relevant. Incorrect answer. Please choose another answer.

11.	The Right to Reinstate clause provides for the mortgagor's right to:
		a.Sell or transfer the property without the lender's prior consent.
		b. To stop foreclosure proceedings provided the mortgagor pays all sums that are due.
		c. To pay off the loan early without penalty.
		d. To receive a deferment of payment for six months in case of a hardship.
The Right to Reinstate clause provides for the mortgagor's right to reinstate the original repayment terms in the note after the mortgagee initiated the acceleration clause and provided all sums that are due are paid, including the expenses incurred by the mortgagee to enforce the mortgage. If the mortgagor attempts to sell or transfer the property without the lender's prior consent, the lender can advance the due date of the debt through the Acceleration Clause. The Prepayment Penalty clause provides for the mortgagor's ability to pay off the debt before the due date. There is no covenant in the mortgage that allows for deferments of payments on the mortgage. Incorrect answer. Please choose another answer.

12.	The two instruments created with a mortgage loan are:
		a. The purchase contract and the deed.
		b. The promissory note and the mortgage.
		c. The closing statement and the mortgage.
		d. The general warranty deed and the promissory note.
The two instruments created by the origination of a mortgage loan are the promissory note which is the legal instrument that services as evidence of the debt and the mortgage which is the instrument that pledges the property as security for the debt. Incorrect answer. Please choose another answer.

13.	Joshua's father is a real estate investor in Florida. He purchases vacant lots and constructs single-family homes. He has three houses finished that he needs to sell. In the summer, Joshua, who just graduated from high school, was looking for something to do that could bring him some income to save for a car he wanted to buy. The father asked Joshua to help him sell the houses and promised that he would pay him $1,000 for each house sold. Joshua accepted and spent the whole summer doing open houses and trying to find qualified buyers for the houses but without success. At the end of the summer, the houses were still on the market. Under the provisions of Florida Statute 475 this:
		a. Is permissible because there's an exception that allows relatives to sell property as long as the compensation does not exceed $1,000.
		b. is a violation of the statute because only a real estate licensee can provide real estate services and receive compensation for it.
		c. is a violation of the statute, although only the father violated it because he was the one offering to pay a commision.
		d. is not a violation. Neither Joshua nor his father violated the statute because the houses were not sold and therefore no commission was paid.
This scenario is a violation of the Florida real estate law because only a real estate licensee can provide real estate services and receive compensation for it. It is a violation of Chapter 475 to provide real estate services to others for compensation of any type if the person providing such services does not hold a current and active real estate license at the time, unless specifically exempted by the law. It is a third-degree felony with a penalty of not more than $5,000 and/or up to five years in jail per offense. There is no exception for relatives or compensation under $1,000. Even though no commission was paid, both father and son violated the statute with their agreement. Incorrect answer. Please choose another answer.

14.	A licensee did not disclose that one of his listings had a code violation. As a result, the buyer was affected. This situation is considered:
		a. Culpable negligence
		b. Material fact
		c. Moral Turpitude
		d. Fraud
The licensee intentionally deceived the buyer with the purpose of closing the sale and earn his commission. The law prohibits deceptive practices. When a sales associate or broker intentionally omits information that is relevant and material to a transaction, the licensee is guilty of fraudulent and dishonest dealing by trick, scheme or device. Incorrect answer. Please choose another answer.

15.	Joan is representing Richard in the sale of his home as a single agent in FL. William, another sales associate in her office, has a buyer who shows interest in visiting the property because it fits his buying criteria. Before Joan can show the property to William and his buyer, which steps does she needs to follow?
		a. She needs to find out what is the best time for Richard to allow them in the property.
		b. She needs to obtain the seller's signature on a Consent to Transition to Transaction Broker. Then she can show the property to William and his buyer.
		c. She needs to ask William and his buyer to sign a Consent to Transition to Transaction Broker before they visit the property.
		d. She needs to secure the signature of the seller and the buyer in a Consent to Transition to Transaction Broker before showing the property.
Joan needs to secure the signature of Richard, her seller, and the signature of William's buyer in a Consent to Transition to Transaction Broker before showing the property. Florida law prohibits a dual agency. Therefore, in order for a brokerage that has a Single Agent Relationship with a buyer or a seller to assist both parties on a real estate transaction, the licensee must change to a Transaction Brokerage Relationship with the prior written consent of the parties. Incorrect answer. Please choose another answer.

16.	Linda Mae is hired by a landlord to rent his property in Florida. She lists the property and advertises it in social media. Immediately she receives a call from a prospective tenant. They are a family of four, from Argentina and want to establish their new residence in the area. Linda Mae makes an appointment and shows the property to the family the next day in the morning. They fall in love with the property and offer to provide their deposit and all their documentation that same day to secure the rent. Linda Mae calls her landlord to give him the good news. The landlord asks about the tenants, and when he finds out that they are Hispanic, he refuses to accept them. As much as Linda Mae tries to persuade him, he refuses to accept those tenants. What should Linda Mae do now?
		a. Linda Mae should tell the landlord that his position is discriminatory and violates the Florida Fair Housing Act, therefore if he is not willing to reconsider his position she is withdrawing from the listing.
		b. Linda Mae should tell the tenants that the Landlord does not rent to Hispanic families and that she will look for another property for them.
		c. Linda Mae should tell the tenants that the landlord withdrew the property from the market because it needs some unexpected repair.
		d. Linda Mae should tell the landlord that he must rent to the applicant's to avoid a law suit.
The Florida Fair Housing Act prohibits discriminatory acts based on race, sex, disability, nationality, religion, color, or familial status. Real Estate licensees must ensure there is equal access to housing. Any charge of discrimination is considered valid by HUD unless there is evidence that can refute such charge. In a case of discrimination in which a licensee is involved, the burden of proof is placed on the broker to prove his/her innocence to HUD. Also, the Florida Real Estate Commission might initiate disciplinary proceedings against the licensee. Incorrect answer. Please choose another answer.

17.	A homestead property is located outside the city limits in Pasco County, FL. The assessment value of the property is $190,000.00. The city tax rate is 7.8 mills, the county tax rate is 9.8 mills, and the school board's rate is 5.7 mills. The owner is an army veteran with 10% disability as a result of his service in Iraq. He is also a widower and has qualified and received homestead tax exemption. How much does the owner have to pay for property taxes?
		a. $1,318.10
		b. $ 766.65
		c. $1,088.10
		d. $2,227.25
To calculate the property taxes, you take the following steps: 1. You should remember that the school board only recognizes the base exemption of $25,000.00. City and County, on the contrary, recognize the entitlement of the owner to an additional $25,000 exemption when the property's assessed value is greater than $75,000.00. 2. Figure out Taxable Value for School Taxes $190,000 assessed value - $25,000 base homestead exemption - $5,000 additional exemption for service disability - $500 widower exemption = $ 159,500.00 taxable value for school taxes. 3. Figure out Taxable Value for County Taxes $190,000 assessed value - $50,000 homestead exemption - $5,000 additional exemption for service disability - $500 widower exemption = $134,500 taxable value for county taxes. 4. Figure out Tax Due $ 159, 500.00 x .0057 = $ 909.15 school taxes $ 134, 500.00 x .0098 = $ 1,318.10 county taxes City taxes do not apply because the property is out of city limits. $909.15 + $1,318.10 = $2,227.25 Incorrect answer. Please choose another answer.

18.	Discount points are a loan fee charged by the lender to:
		a. Originate the loan
		b. Secure the interest rate
		c. Lower the interest rate on the loan
		d. Qualify the borrowers for the loan
The discount points are a fee paid by the borrower or a third party such as the developer to obtain a lower interest rate on a loan. The fee paid to originate the loan is the Origination fee. The fee paid to the secure the interest rate is the lock fee. There is no fee charged to qualify a borrower for a loan. Incorrect answer. Please choose another answer.

19.	Marlon is a listing agent that just took a listing that calls for a graduated sales commission structure. The commission is 4% for the first $400,000 of the sale price. 5.5% on the next $100,000 and 7% of the amount over $500,000. What is the total commission if the property sells for $575,000?
		a. $21,500.00
		b. $23,500.00
		c. $25,750.00
		d. $26,750.00
Calculate the answer as follows: $400,000 x 4% = $16,000 $100,000 x 5.5% = $5,500.00 $75,000 x 7% = $5,250.00 $16,000 + $5,500 + $5,250.00 = $26,750.00 Incorrect answer. Please choose another answer.

20.	Real estate licensees provide specialized services to others for compensation. They market their expert information and knowledge in three meaningful areas:
		a. Property transfer, maintenance companies, and insurance companies.
		b. Property transfer, market conditions, and how to market real estate and businesses.
		c. Market conditions, schools in the area, and the population in the area.
		d. How to market real estate and businesses, knowledge of termites and mold.
A competent real estate licensee must know the legal steps and requirements to transfer property and of the conditions that can invalidate a real estate contract. They also need to know the changes in market conditions for sales and leases, the changes in the zoning laws and the building moratoriums. Finally, they need to know the most effective ways to market each of the listings they procure. To be an expert, a licensee does not need to know maintenance or insurance companies, nor be knowledgable on schools and populations of the area; this information would be helpful to the clients but is not determinant to the experience of the agent. An agent should never provide information about mold or termites other than recommending the buyers to seek an inspection to avoid conflicts of interest or misrepresentations. Incorrect answer. Please choose another answer.

21.	Falsifying a license application is a:
		a. Misdemeanor of second degree
		b. Misdemeanor of first degree
		c. Felony of the third degree.
		d. Disqualification of the candidate from applying for a term of 10 years
It is a third-degree felony to falsify information on a license application. The penalty is a fine of not more than $5,000 and/or up to five years in prison. Incorrect answer. Please choose another answer.

22.	As part of the license application, the candidates must provide their social security number. This is a requirement of the Florida law to:
		a. To determine if the applicant is a US citizen.
		b. To determine if the applicant is a legal resident.
		c. To determine if the applicant has good credit.
		d. To determine if the applicant is in compliance with child support obligations.
The social security number is required by Florida Law in all professional license applications to determine if the applicant is in compliance with child support obligations. Florida Real Estate law does not require an applicant to be a US citizen or a legal resident of the country nor does it require a credit verification of the applicants. Incorrect answer. Please choose another answer.

23.	Stephanie is the broker of record for Happy Realty. She just received notice from one of her agents that there are conflicting demands in a failed sale. Chapter 475, F.S., provides a dispute resolution when there are conflicting demands. What is the period Stephanie has to notify the Florida Real Estate Commission (FREC) of the situation?
		a. 15 calendar days
		b. 10 calendar days
		c. 10 business days
		d. 15 business days
The broker has 15 business days to notify FREC in writing of the conflicting demands. From the time she received the conflicting demands, she has 30 business days to implement one of the four settlement procedures. Incorrect answer. Please choose another answer.

24.	Henry is a successful real estate agent who does not have enough time to handle his client base. He just thought of a solution that would help him improve his service, hire a personal assistant. The assistant will take over some time-consuming tasks. However, he needs to be careful because if he hires an unlicensed assistant this person could only perform those activities approved by FREC. What would the unlicensed personal assistant be allowed to do?
		a. Showing the listed property
		b. Assemble documents for closing
		c. Perform pre-closing walk-thru
		d. Answer questions about a listing
An unlicensed personal assistant is not allowed to show property, he cannot perform walkthrus neither he can answer questions regarding a listing unless he is reading this information on a written flyer or other document approved by the licensee. Other clerical tasks, such as assembling documents for closing, having keys made for company listings, ordering inspections and gathering information for comparative market analysis are allowed by FREC. Incorrect answer. Please choose another answer.

25.	The powers and duties of the FREC include three important areas, the executive powers, the quasi-legislative and the quasi-judicial powers. What is NOT a responsibility of the quasi-judicial powers of the FREC?
		a. Grant or deny applications.
		b. Fine, suspend and revoke licenses.
		c. Dictate sentence for criminal violations of Chapter 475.
		d. Determine violations of the law.
FREC, under its quasi-judicial responsibility, makes determinations of violations, imposes administrative penalties such as fines, carrys out suspension and revocation of licenses and also grants or denies applications. But in the cases of criminal violations of the law, its responsibility is only to report such violations to the state's attorney. Incorrect answer. Please choose another answer.

Quality starts with who wrote the material. Our writers:

Diane Dean, LPC, RN-BC, MA, is a licensed professional counselor and educator with 20 years of experience...
more

Stacy Fruhling, LCPC,LCADC, NCC. MAC, is an adjunct professor in psychology and counseling at the...
more

Lisa Slade, MS, LPC, NCC, is an adjunct professor in psychology, counseling, sociology...
more

Our Practice exam covers the actual NCE Domains:

The NCE contains 200 multiple-choice, non-sectioned questions. There are different versions of the test. Test questions.
There are different versions of the text. Test questions come from a pool of questions that have been extensively reviewed and researched for content accuracy and clarity

Below are the six domains tested by the NBCC on the NCE:

Professional Practice & Ethics
Intake Assessment and Diagnosis
Areas of Clinical Focus
Treatment Planning
Counseling Skills and Interventions
Core Counseling Attributes

Covering the Eight CACREP Common Core Areas:

Professional Counseling Orientation and Ethical Practice
Social and Cultural Diversity
Human Growth and Development
Career Development
Counseling and Helping Relationships
Group Counseling and Group Work
Assessment and Testing
Research and Program Evaluation

Free Sample Questions

Related Links

NCE Resources
NCE State Guides
Addiction Conselor Practice Exam
NCMHCE Practice Test
ASWB Practice Test

1/25

Florida Real Estate Property Characteristics and Deed

1.	A statutory deed in which the grantor makes no warranties to the grantee about the quality or extent of the title being conveyed is:
		a. Special Warranty Deed
		b. Bargain and Sale Deed
		c. Quitclaim Deed
		d. General Warranty Deed
A quitclaim deed in Florida does not offer any warranty to the grantee. It conveys whatever interest the grantor has on the property. It is usually used to make corrections or to cure clouds on title. The quitclaim deed does not contain the clause of seizin and uses the words quitclaim, remise and release. The general warranty deed is the deed that conveys title with all guarantees to the grantee. Incorrect answer. Please choose another answer.

2/25

Florida Real Estate Property Characteristics and Deed

2.	Although real estate investment offers many advantages to an investor, it has some negative aspects as well. Which of the following is not a characteristic advantage of real estate investment?
		a. Rate of Return
		b. Leverage
		c. Liquidity
		d. Equity Buildup
The advantages of real estate as an investment are the rate of return, tax advantages, hedge against inflation, leverage and equity buildup. Real Estate is not considered a liquid investment in the short term. Incorrect answer. Please choose another answer.

3/25

Florida Real Estate Property Characteristics and Deed

3.	When a developer plans for a large project in Florida, studies need to be performed regarding the project's impact in the community before the city approves it. These studies are summarized in a:
		a. Planned Unit Development filing
		b. Environmental Impact Statement
		c. Special Exceptions Rider
		d. Developments of Regional Impact Statement
An Environmental Impact Statement is a summarized report that shows the long term impact of the project on waste-disposal systems, air quality, traffic, the local economy and so forth. Incorrect answer. Please choose another answer.

4/25

Florida Real Estate Property Characteristics and Deed

4.	Mark bought a house in an old neighborhood and remodeled it with high-end materials. He even hired a home decorator to give the last touches to it. The house looked beautiful, and Mark was pleased with it. However, a year later his employer offered him a better job in a distant location, and Mark decided to sell the house before relocating. After all, he would make good money on the sale because all the improvements he did to the house, and he will be able to buy in his new location instead of renting. Mark hired realtor Trevor who came by the house and prepared a Comparative Market Analysis for Mark. The results of the report were very disappointing for him because the house has not acquired enough equity to make the profit he imagined. This is an example of:
		a. External Obsolencence
		b. Overimprovement
		c. Market Conditions
		d. Physical Obsolencence
An overimprovement occurs when an owner invests more money than what is reasonably expected to recapture. External obsolescence is any loss in value due to changes in the neighborhood or area where the house is located, for example, an active Railtrack, a new speedway and anything that can make the location less desirable by prospective buyers. External obsolescence is incurable because it is out of the control of the property owner. Physical obsolescence is directly related to the condition of the property such as wear and tear, structural issues, defective air conditioning, old roof. Incorrect answer. Please choose another answer.

5/25

Florida Real Estate Property Characteristics and Deed

5.	How many acres are there in the N 1/4 of the NE ½ of the SW ¼ and the SE ½ of the NW ¼?
		a. 80 acres
		b. 20 acres
		c. 100 acres
		d. 2.5 acres
To determine the number of acres from the legal description of property, you first must remember that there are 640 acres in one section. 1. Take the denominators of each fraction in the legal description and multiply them. 4 x 2 x 4 = 32 2. Take 640 and divide by results of the multiplication of the denominators 640 ÷ 32 = 20 acres You must remember that if the legal description contains the conjunction “and” this means you need to do two separate transactions and add them at the end to arrive at the correct amount of acres. 3. Repeat step 1. 2 x 4 = 8 4. Repeat step 2. 640 ÷ 8 = 80 acres 5. Now add the results from steps 2 and 4 to find the total amount of acres. 20 acres + 80 acres = 100 acres. Incorrect answer. Please choose another answer.

6/25

Florida Real Estate Property Characteristics and Deed

6.	All of the following are protections granted by the Florida Constitution to homestead property except:
		a. Granting tax exemptions when assessing property taxes.
		b. Granting protection to the family in case of deceased of the titled owner.
		c. Granting protection of the size of homestead in case of Bankruptcy.
		d.Granting protection from enforcing of the vendor's liens.
Florida allows property owners to homestead their principal residence. The benefits of the homestead are the protection of the family in case the owner on the title dies and the allowance of up to $50,000 in property tax exemption. The Homestead also protects the size of the property (160 acres of contiguous land and improvements outside the city and ½ acre within the city) as well as the protection of personal property (up to $1,000) in case of bankruptcy and to protect from the forced sale to pay for personal debts. Nevertheless, the homestead does not protect from foreclosure if the homestead property is the collateral to a defaulted mortgage loan, neither from unpaid property taxes, special assessments, foreclosure for unpaid condo association fees or homeowners association fees, or vendor and construction liens secured by the property. Incorrect answer. Please choose another answer.

7/25

Florida Real Estate Contracts and Leases

7.	The four essential elements of a valid contract are:
		a. The contractual capacity of the parties, Earnest money, Legal purpose, Consideration.
		b. Legal purpose, Consideration, Offer and acceptance, Notarization.
		c. Offer and acceptance, Consideration, Acknowledgment, Contractual capacity of the parties.
		d. Consideration, Offer and acceptance, Contractual capacity of the parties, Legal purpose.
For a real estate contract to be legally sufficient in Florida, the parties must be of contractual legal capacity, meaning that they are not mentally disabled and are of legal age to contract. Also, there must be consideration, which means the benefits each party bargains for. There should also be offer and acceptance; both parties need to agree on the terms of the contract voluntarily. The contract also should have a legal purpose, avoiding any illegal provision on it like establishing payments of commissions to parties who are not licensed. There is no legal need to acknowledge or notarize a real estate contract, nor to have earnest money or acknowledgment. Incorrect answer. Please choose another answer.

8/25

Florida Real Estate Contracts and Leases

8.	Peter rents an office in a class A building in FL. He pays a monthly amount of $2,500 on an annual lease. The monthly payment includes the use of internet, electricity and cleaning. Peter has a:
		a. Net lease
		b. Percentage lease
		c. All inclusive Lease
		d. Gross Lease
In a gross lease in Florida, the tenant (lessee) pays a fixed amount that can include the payment for utilities and other related services while the landlord (lessor) pays for insurance, taxes, maintenance, and utilities. The net lease also is known as "triple net," on the contrary, makes the tenant responsible for expenses of maintenance, utilities, taxes, and insurance. The percentage lease stipulates that the tenant will pay rent based on the gross sales received from his business in the leased property. There is no all-inclusive lease. Incorrect answer. Please choose another answer.

9/25

Florida Real Estate Contracts and Leases

9.	A building of 1200 units has currently 348 units for rent. Calculate the building vacancy rate.
		a. 33%
		b. 71%
		c. 29%
		d. 41%
Calculate the vacancy rate as follows: The number of vacant units available for rent divided by the total number of units in the building will determine the vacancy rate. 348 vacant units ÷ 1200 units = 0.29 or 29% vacancy rate. Or you can use the following forumula: 1200 units x R/100 = 348 units 1200 x R/100 = 348 1200 x R = 34,800 R = 29% vacancy rate Incorrect answer. Please choose another answer.

10/25

Florida Real Estate Mortgages and Liens

10.	In Florida, the priority of mortgage liens is determined by:
		a. The date of the closing.
		b. The date of the application for the mortgage loan.
		c. The date of recording.
		d. The date of the loan approval.
The priority of a mortgage lien is determined by the date in which the document is registered with Clerk of the Courts in the county in which the property is located. This is also known as the recording date of the document. The date of the application, loan commitment or closing is not relevant. Incorrect answer. Please choose another answer.

11/25

Florida Real Estate Mortgages and Liens

11.	The Right to Reinstate clause provides for the mortgagor's right to:
		a.Sell or transfer the property without the lender's prior consent.
		b. To stop foreclosure proceedings provided the mortgagor pays all sums that are due.
		c. To pay off the loan early without penalty.
		d. To receive a deferment of payment for six months in case of a hardship.
The Right to Reinstate clause provides for the mortgagor's right to reinstate the original repayment terms in the note after the mortgagee initiated the acceleration clause and provided all sums that are due are paid, including the expenses incurred by the mortgagee to enforce the mortgage. If the mortgagor attempts to sell or transfer the property without the lender's prior consent, the lender can advance the due date of the debt through the Acceleration Clause. The Prepayment Penalty clause provides for the mortgagor's ability to pay off the debt before the due date. There is no covenant in the mortgage that allows for deferments of payments on the mortgage. Incorrect answer. Please choose another answer.

12/25

Florida Real Estate Mortgages and Liens

12.	The two instruments created with a mortgage loan are:
		a. The purchase contract and the deed.
		b. The promissory note and the mortgage.
		c. The closing statement and the mortgage.
		d. The general warranty deed and the promissory note.
The two instruments created by the origination of a mortgage loan are the promissory note which is the legal instrument that services as evidence of the debt and the mortgage which is the instrument that pledges the property as security for the debt. Incorrect answer. Please choose another answer.

13/25

Florida Real Estate Sales Associate Practice and Ethics

13.	Joshua's father is a real estate investor in Florida. He purchases vacant lots and constructs single-family homes. He has three houses finished that he needs to sell. In the summer, Joshua, who just graduated from high school, was looking for something to do that could bring him some income to save for a car he wanted to buy. The father asked Joshua to help him sell the houses and promised that he would pay him $1,000 for each house sold. Joshua accepted and spent the whole summer doing open houses and trying to find qualified buyers for the houses but without success. At the end of the summer, the houses were still on the market. Under the provisions of Florida Statute 475 this:
		a. Is permissible because there's an exception that allows relatives to sell property as long as the compensation does not exceed $1,000.
		b. is a violation of the statute because only a real estate licensee can provide real estate services and receive compensation for it.
		c. is a violation of the statute, although only the father violated it because he was the one offering to pay a commision.
		d. is not a violation. Neither Joshua nor his father violated the statute because the houses were not sold and therefore no commission was paid.
This scenario is a violation of the Florida real estate law because only a real estate licensee can provide real estate services and receive compensation for it. It is a violation of Chapter 475 to provide real estate services to others for compensation of any type if the person providing such services does not hold a current and active real estate license at the time, unless specifically exempted by the law. It is a third-degree felony with a penalty of not more than $5,000 and/or up to five years in jail per offense. There is no exception for relatives or compensation under $1,000. Even though no commission was paid, both father and son violated the statute with their agreement. Incorrect answer. Please choose another answer.

14/25

Florida Real Estate Sales Associate Practice and Ethics

14.	A licensee did not disclose that one of his listings had a code violation. As a result, the buyer was affected. This situation is considered:
		a. Culpable negligence
		b. Material fact
		c. Moral Turpitude
		d. Fraud
The licensee intentionally deceived the buyer with the purpose of closing the sale and earn his commission. The law prohibits deceptive practices. When a sales associate or broker intentionally omits information that is relevant and material to a transaction, the licensee is guilty of fraudulent and dishonest dealing by trick, scheme or device. Incorrect answer. Please choose another answer.

15/25

Florida Real Estate Sales Associate Practice and Ethics

15.	Joan is representing Richard in the sale of his home as a single agent in FL. William, another sales associate in her office, has a buyer who shows interest in visiting the property because it fits his buying criteria. Before Joan can show the property to William and his buyer, which steps does she needs to follow?
		a. She needs to find out what is the best time for Richard to allow them in the property.
		b. She needs to obtain the seller's signature on a Consent to Transition to Transaction Broker. Then she can show the property to William and his buyer.
		c. She needs to ask William and his buyer to sign a Consent to Transition to Transaction Broker before they visit the property.
		d. She needs to secure the signature of the seller and the buyer in a Consent to Transition to Transaction Broker before showing the property.
Joan needs to secure the signature of Richard, her seller, and the signature of William's buyer in a Consent to Transition to Transaction Broker before showing the property. Florida law prohibits a dual agency. Therefore, in order for a brokerage that has a Single Agent Relationship with a buyer or a seller to assist both parties on a real estate transaction, the licensee must change to a Transaction Brokerage Relationship with the prior written consent of the parties. Incorrect answer. Please choose another answer.

16/25

Florida Real Estate Sales Associate Practice and Ethics

16.	Linda Mae is hired by a landlord to rent his property in Florida. She lists the property and advertises it in social media. Immediately she receives a call from a prospective tenant. They are a family of four, from Argentina and want to establish their new residence in the area. Linda Mae makes an appointment and shows the property to the family the next day in the morning. They fall in love with the property and offer to provide their deposit and all their documentation that same day to secure the rent. Linda Mae calls her landlord to give him the good news. The landlord asks about the tenants, and when he finds out that they are Hispanic, he refuses to accept them. As much as Linda Mae tries to persuade him, he refuses to accept those tenants. What should Linda Mae do now?
		a. Linda Mae should tell the landlord that his position is discriminatory and violates the Florida Fair Housing Act, therefore if he is not willing to reconsider his position she is withdrawing from the listing.
		b. Linda Mae should tell the tenants that the Landlord does not rent to Hispanic families and that she will look for another property for them.
		c. Linda Mae should tell the tenants that the landlord withdrew the property from the market because it needs some unexpected repair.
		d. Linda Mae should tell the landlord that he must rent to the applicant's to avoid a law suit.
The Florida Fair Housing Act prohibits discriminatory acts based on race, sex, disability, nationality, religion, color, or familial status. Real Estate licensees must ensure there is equal access to housing. Any charge of discrimination is considered valid by HUD unless there is evidence that can refute such charge. In a case of discrimination in which a licensee is involved, the burden of proof is placed on the broker to prove his/her innocence to HUD. Also, the Florida Real Estate Commission might initiate disciplinary proceedings against the licensee. Incorrect answer. Please choose another answer.

17/25

Florida Real Estate Sales Associate Practice and Ethics

17.	A homestead property is located outside the city limits in Pasco County, FL. The assessment value of the property is $190,000.00. The city tax rate is 7.8 mills, the county tax rate is 9.8 mills, and the school board's rate is 5.7 mills. The owner is an army veteran with 10% disability as a result of his service in Iraq. He is also a widower and has qualified and received homestead tax exemption. How much does the owner have to pay for property taxes?
		a. $1,318.10
		b. $ 766.65
		c. $1,088.10
		d. $2,227.25
To calculate the property taxes, you take the following steps: 1. You should remember that the school board only recognizes the base exemption of $25,000.00. City and County, on the contrary, recognize the entitlement of the owner to an additional $25,000 exemption when the property's assessed value is greater than $75,000.00. 2. Figure out Taxable Value for School Taxes $190,000 assessed value - $25,000 base homestead exemption - $5,000 additional exemption for service disability - $500 widower exemption = $ 159,500.00 taxable value for school taxes. 3. Figure out Taxable Value for County Taxes $190,000 assessed value - $50,000 homestead exemption - $5,000 additional exemption for service disability - $500 widower exemption = $134,500 taxable value for county taxes. 4. Figure out Tax Due $ 159, 500.00 x .0057 = $ 909.15 school taxes $ 134, 500.00 x .0098 = $ 1,318.10 county taxes City taxes do not apply because the property is out of city limits. $909.15 + $1,318.10 = $2,227.25 Incorrect answer. Please choose another answer.

18/25

Florida Real Estate Sales Associate Practice and Ethics

18.	Discount points are a loan fee charged by the lender to:
		a. Originate the loan
		b. Secure the interest rate
		c. Lower the interest rate on the loan
		d. Qualify the borrowers for the loan
The discount points are a fee paid by the borrower or a third party such as the developer to obtain a lower interest rate on a loan. The fee paid to originate the loan is the Origination fee. The fee paid to the secure the interest rate is the lock fee. There is no fee charged to qualify a borrower for a loan. Incorrect answer. Please choose another answer.

19/25

Florida Real Estate Sales Associate Practice and Ethics

19.	Marlon is a listing agent that just took a listing that calls for a graduated sales commission structure. The commission is 4% for the first $400,000 of the sale price. 5.5% on the next $100,000 and 7% of the amount over $500,000. What is the total commission if the property sells for $575,000?
		a. $21,500.00
		b. $23,500.00
		c. $25,750.00
		d. $26,750.00
Calculate the answer as follows: $400,000 x 4% = $16,000 $100,000 x 5.5% = $5,500.00 $75,000 x 7% = $5,250.00 $16,000 + $5,500 + $5,250.00 = $26,750.00 Incorrect answer. Please choose another answer.

20/25

Florida Real Estate Sales Associate Practice and Ethics

20.	Real estate licensees provide specialized services to others for compensation. They market their expert information and knowledge in three meaningful areas:
		a. Property transfer, maintenance companies, and insurance companies.
		b. Property transfer, market conditions, and how to market real estate and businesses.
		c. Market conditions, schools in the area, and the population in the area.
		d. How to market real estate and businesses, knowledge of termites and mold.
A competent real estate licensee must know the legal steps and requirements to transfer property and of the conditions that can invalidate a real estate contract. They also need to know the changes in market conditions for sales and leases, the changes in the zoning laws and the building moratoriums. Finally, they need to know the most effective ways to market each of the listings they procure. To be an expert, a licensee does not need to know maintenance or insurance companies, nor be knowledgable on schools and populations of the area; this information would be helpful to the clients but is not determinant to the experience of the agent. An agent should never provide information about mold or termites other than recommending the buyers to seek an inspection to avoid conflicts of interest or misrepresentations. Incorrect answer. Please choose another answer.

21/25

Florida Real Estate Sales Associate Practice and Ethics

21.	Falsifying a license application is a:
		a. Misdemeanor of second degree
		b. Misdemeanor of first degree
		c. Felony of the third degree.
		d. Disqualification of the candidate from applying for a term of 10 years
It is a third-degree felony to falsify information on a license application. The penalty is a fine of not more than $5,000 and/or up to five years in prison. Incorrect answer. Please choose another answer.

22/25

Florida Real Estate Sales Associate Practice and Ethics

22.	As part of the license application, the candidates must provide their social security number. This is a requirement of the Florida law to:
		a. To determine if the applicant is a US citizen.
		b. To determine if the applicant is a legal resident.
		c. To determine if the applicant has good credit.
		d. To determine if the applicant is in compliance with child support obligations.
The social security number is required by Florida Law in all professional license applications to determine if the applicant is in compliance with child support obligations. Florida Real Estate law does not require an applicant to be a US citizen or a legal resident of the country nor does it require a credit verification of the applicants. Incorrect answer. Please choose another answer.

23/25

Florida Real Estate Sales Associate Practice and Ethics

23.	Stephanie is the broker of record for Happy Realty. She just received notice from one of her agents that there are conflicting demands in a failed sale. Chapter 475, F.S., provides a dispute resolution when there are conflicting demands. What is the period Stephanie has to notify the Florida Real Estate Commission (FREC) of the situation?
		a. 15 calendar days
		b. 10 calendar days
		c. 10 business days
		d. 15 business days
The broker has 15 business days to notify FREC in writing of the conflicting demands. From the time she received the conflicting demands, she has 30 business days to implement one of the four settlement procedures. Incorrect answer. Please choose another answer.

24/25

Florida Real Estate Sales Associate Practice and Ethics

24.	Henry is a successful real estate agent who does not have enough time to handle his client base. He just thought of a solution that would help him improve his service, hire a personal assistant. The assistant will take over some time-consuming tasks. However, he needs to be careful because if he hires an unlicensed assistant this person could only perform those activities approved by FREC. What would the unlicensed personal assistant be allowed to do?
		a. Showing the listed property
		b. Assemble documents for closing
		c. Perform pre-closing walk-thru
		d. Answer questions about a listing
An unlicensed personal assistant is not allowed to show property, he cannot perform walkthrus neither he can answer questions regarding a listing unless he is reading this information on a written flyer or other document approved by the licensee. Other clerical tasks, such as assembling documents for closing, having keys made for company listings, ordering inspections and gathering information for comparative market analysis are allowed by FREC. Incorrect answer. Please choose another answer.

25/25

Florida Real Estate Sales Associate Practice and Ethics

25.	The powers and duties of the FREC include three important areas, the executive powers, the quasi-legislative and the quasi-judicial powers. What is NOT a responsibility of the quasi-judicial powers of the FREC?
		a. Grant or deny applications.
		b. Fine, suspend and revoke licenses.
		c. Dictate sentence for criminal violations of Chapter 475.
		d. Determine violations of the law.
FREC, under its quasi-judicial responsibility, makes determinations of violations, imposes administrative penalties such as fines, carrys out suspension and revocation of licenses and also grants or denies applications. But in the cases of criminal violations of the law, its responsibility is only to report such violations to the state's attorney. Incorrect answer. Please choose another answer.

100% PASS Guarantee or YOUR MONEY BACK All tests.com products are Risk Free. No Time Limit.

About Us
Contact
Sitemap