FLORIDA REAL ESTATE – FIFTH SIMULATION

#1. What is the main difference between freehold and leasehold estates?

Freehold is limited in time

Leasehold includes ownership

Freehold includes ownership

Leasehold has no contract

#2. How are property taxes calculated in Florida?

Market value × tax rate

Assessed value × millage rate

Appraised value × 2%

Loan amount × 1.5%

#3. What is the main purpose of a homestead exemption?

Reduce property taxes

Avoid foreclosure

Increase resale value

Waive closing costs

#4. What is required to form a valid contract?

Witnesses and seal

Legal purpose, offer, acceptance, consideration

Notarization and escrow

Broker involvement

#5. Which action would result in a citation from FREC?

Using ‘Realtor’ title

Late CE course

Advertising without broker name

Listing FSBO property

#6. What is a bilateral contract?

Only one party is bound

Both parties make promises

Only buyer agrees

Only seller benefits

#7. Which type of deed is used to clear a cloud on title?

Warranty deed

Bargain and sale deed

Quitclaim deed

Special warranty deed

#8. What does the covenant of seisin guarantee?

Deed was recorded

Title insurance applies

The grantor owns the property

Mortgage is satisfied

#9. The effective age of a property refers to:

Time since purchase

Time since built

Age based on condition

Time left to depreciate

#10. How does the IRS classify real estate agents for tax purposes?

Employees

Self-employed contractors

W-2 workers

Consultants

#11. Which of the following is NOT a protected class under the federal Fair Housing Act?

Color

Religion

Marital status

National origin

#12. Which type of listing allows a seller to employ multiple brokers and pay only the one who sells?

Exclusive agency

Net listing

Open listing

Exclusive right of sale

#13. What does the due diligence period allow a buyer to do?

Secure financing

Negotiate price

Inspect property and cancel if needed

Get insurance

#14. The rate of return used in the income approach to valuation is called:

Interest rate

Cap rate

Discount rate

Loan constant

#15. Which property type is exempt from the federal Fair Housing Act?

Single-family home sold by owner without agent

Apartment with 10 units

New subdivision

HUD-owned home

#16. A real estate licensee must disclose their license status when:

Selling any property

Advertising their broker

Buying property for themselves

Renting commercial space

#17. How many sections are in a township?

12

24

36

48

#18. A broker can be disciplined by FREC for which action?

Referring an appraiser

Holding escrow in interest account

Failing to present all offers

Changing office location

#19. A transaction broker must disclose representation:

Before the first showing

Before closing

Upon signing

No written disclosure required

#20. What is the penalty for violating RESPA?

License suspension only

Civil penalty and up to one year in jail

Warning

Fines only

#21. A developer uses what to show lot sizes, streets, and easements?

Blueprint

Survey

Plat map

Zoning map

#22. What is blockbusting?

Charging high prices

Telling owners to sell based on incoming minorities

Raising rent based on race

Overpricing to minorities

#23. The document that shows a property’s legal boundaries is the:

Deed

Plat map

Legal notice

Mortgage

#24. What is the rescission period for a timeshare purchased from a developer?

3 days

7 days

10 days

14 days

#25. When must escrow funds be deposited by the broker?

By end of same day

Next business day

Within 3 business days of receipt

After inspection

#26. What is the difference between a general and a special agent?

General agent has limited duties

Special agent has ongoing responsibilities

General agent has broader authority

Special agent can sell real estate

#27. What is the primary function of the secondary mortgage market?

Make loans directly to buyers

Buy existing mortgages

Set interest rates

Regulate mortgage brokers

#28. Which agency oversees RESPA enforcement?

HUD

FBI

FTC

FREC

#29. What is the term for interest paid on the original principal and accumulated interest?

Simple interest

Accrued interest

Compound interest

Discounted interest

#30. Which property would use the cost-depreciation approach most effectively?

Vacant lot

Historic home

Retail center

New government building

#31. What does ‘time is of the essence’ mean in a contract?

Flexible dates

Performance must occur on time

Time is not enforced

Deadlines are negotiable

#32. How long is the rescission period for a condominium resale?

3 calendar days

5 business days

7 calendar days

10 business days

#33. What is the term for a lender increasing interest to compensate for a low credit score?

Usury

Rate adjustment

Credit loading

Risk-based pricing

#34. What type of tenancy is created when a tenant remains without consent?

Tenancy in common

Tenancy for years

Tenancy at sufferance

Tenancy at will

#35. Which instrument is evidence of a debt?

Deed

Mortgage

Promissory note

Escrow agreement

#36. How many hours of pre-license education are required for a broker license?

45

63

72

100

#37. What is the purpose of a mortgage lien?

To insure the title

To secure the loan

To transfer title

To ensure closing

#38. Which law requires lenders to disclose APR to borrowers?

RESPA

TILA

Fair Credit Reporting Act

SAFE Act

#39. What does an acceleration clause allow a lender to do?

Reduce the loan interest

Increase monthly payments

Declare full balance due

Change loan term

#40. How are real estate commissions determined in Florida?

Fixed by DBPR

Negotiated between broker and client

Set by FREC

Based on MLS rules

#41. What is a blind ad?

An ad that omits price

An ad missing broker information

An ad with wrong address

A radio ad

#42. What is the document used to change public records regarding property ownership?

Title policy

Deed

Affidavit

Survey

#43. Which law prohibits discrimination in lending based on age, sex, or marital status?

RESPA

ECOA

FCRA

ADA

#44. What is the purpose of a home warranty?

Protect title

Cover future repairs

Lower taxes

Ensure loan repayment

#45. What is the role of the DBPR?

Provide MLS services

Discipline licensees

Appraise property

Handle evictions

#46. What is the purpose of zoning?

Control land use

Set property taxes

Increase home value

Issue licenses

#47. What is a plottage increase?

Decrease from dividing land

Value increase from combining lots

Easement right

Zoning rule

#48. Which of the following is a voluntary lien?

Judgment

Mortgage

Tax lien

Mechanic’s lien

#49. A property manager is typically responsible for:

Marketing real estate

Conducting appraisals

Maintaining and leasing property

Negotiating loans

#50. Which of the following is considered real property?

A trade fixture

A mobile home on blocks

A chandelier installed in dining room

A garden hose

ARE YOU READY?

LET’S PRACTICE!

Results

#1. What is the main difference between freehold and leasehold estates?

#2. How are property taxes calculated in Florida?

#3. What is the main purpose of a homestead exemption?

#4. What is required to form a valid contract?

#5. Which action would result in a citation from FREC?

#6. What is a bilateral contract?

#7. Which type of deed is used to clear a cloud on title?

#8. What does the covenant of seisin guarantee?

#9. The effective age of a property refers to:

#10. How does the IRS classify real estate agents for tax purposes?

#11. Which of the following is NOT a protected class under the federal Fair Housing Act?

#12. Which type of listing allows a seller to employ multiple brokers and pay only the one who sells?

#13. What does the due diligence period allow a buyer to do?

#14. The rate of return used in the income approach to valuation is called:

#15. Which property type is exempt from the federal Fair Housing Act?

#16. A real estate licensee must disclose their license status when:

#17. How many sections are in a township?

#18. A broker can be disciplined by FREC for which action?

#19. A transaction broker must disclose representation:

#20. What is the penalty for violating RESPA?

#21. A developer uses what to show lot sizes, streets, and easements?

#22. What is blockbusting?

#23. The document that shows a property’s legal boundaries is the:

#24. What is the rescission period for a timeshare purchased from a developer?

#25. When must escrow funds be deposited by the broker?

#26. What is the difference between a general and a special agent?

#27. What is the primary function of the secondary mortgage market?

#28. Which agency oversees RESPA enforcement?

#29. What is the term for interest paid on the original principal and accumulated interest?

#30. Which property would use the cost-depreciation approach most effectively?

#31. What does ‘time is of the essence’ mean in a contract?

#32. How long is the rescission period for a condominium resale?

#33. What is the term for a lender increasing interest to compensate for a low credit score?

#34. What type of tenancy is created when a tenant remains without consent?

#35. Which instrument is evidence of a debt?

#36. How many hours of pre-license education are required for a broker license?

#37. What is the purpose of a mortgage lien?

#38. Which law requires lenders to disclose APR to borrowers?

#39. What does an acceleration clause allow a lender to do?

#40. How are real estate commissions determined in Florida?

#41. What is a blind ad?

#42. What is the document used to change public records regarding property ownership?

#43. Which law prohibits discrimination in lending based on age, sex, or marital status?

#44. What is the purpose of a home warranty?

#45. What is the role of the DBPR?

#46. What is the purpose of zoning?

#47. What is a plottage increase?

#48. Which of the following is a voluntary lien?

#49. A property manager is typically responsible for:

#50. Which of the following is considered real property?