FLORIDA REAL ESTATE – SEVENTH SIMULATION

#1. Which law requires disclosure of lead-based paint in homes built before 1978?

RESPA

FIRPTA

Lead-Based Paint Hazard Reduction Act

TILA

#2. What does a title insurance policy protect against?

Future property damage

Title defects and hidden liens

Zoning changes

Appraisal errors

#3. The term ‘commingling’ refers to:

Converting property

Mixing personal and escrow funds

Paying commissions

Combining MLS listings

#4. What is the purpose of an escrow account?

Hold title documents

Secure financing

Hold funds safely during transaction

Avoid taxes

#5. Which property would benefit most from the income approach to valuation?

Apartment building

Vacant lot

Single-family home

School

#6. Which of the following is a physical characteristic of land?

Scarcity

Situs

Indestructibility

Transferability

#7. What type of notice is created by recording a deed?

Actual notice

Constructive notice

Voluntary notice

Legal notice

#8. Which clause allows a lender to demand full loan repayment upon default?

Due-on-sale clause

Acceleration clause

Subordination clause

Defeasance clause

#9. How is joint tenancy different from tenancy in common?

Ownership shares differ

Survivorship rights exist

Separate deeds issued

Limited use allowed

#10. In Florida, real estate commissions are:

Set by DBPR

Negotiable between parties

Limited by FREC

Based on appraisal

#11. What is the maximum criminal penalty for unlicensed real estate activity in Florida?

Second-degree misdemeanor

First-degree misdemeanor

Third-degree felony

Civil violation

#12. A seller lists a home and excludes a chandelier. How should this be handled?

Tell the buyer later

Ignore it

Disclose in listing agreement and contract

Remove before showings

#13. What type of agent is a property manager?

Special agent

General agent

Transactional agent

Universal agent

#14. What is required for a legal real estate contract?

Appraisal

Loan pre-approval

Offer and acceptance

Broker commission

#15. A developer selling 25 or more lots must provide buyers with:

Flood report

Tax history

Property report

Survey

#16. Which type of tenancy does not have a fixed end date?

Tenancy at sufferance

Tenancy for years

Tenancy at will

Joint tenancy

#17. A broker receives a deposit check on Monday. When must it be deposited?

By Tuesday

By Wednesday

By Thursday

By Friday

#18. What is the purpose of a CMA?

Loan underwriting

Estimating insurance

Determining market value

Evaluating flood zones

#19. Which of the following would terminate an offer?

Counteroffer

Buyer interest

Escrow deposit

MLS listing

#20. What is the IRS form used to report sales of real property by foreign persons?

1099

W-2

FIRPTA

1040

#21. The Statute of Frauds requires contracts for real property to be:

Verbal

Notarized

Written

Recorded

#22. How is ‘market value’ defined?

Price paid at auction

Assessed value for taxes

Most probable price under fair conditions

Loan amount

#23. Which duty applies in all brokerage relationships?

Loyalty

Confidentiality

Full disclosure

Account for all funds

#24. A single agent relationship requires what disclosure?

No written disclosure

Oral notice

Written disclosure before showing property

Consent to transaction broker

#25. Which action by a broker would be considered conversion?

Depositing escrow into a trust account

Using client funds for personal use

Holding escrow for 10 days

Paying commission to a salesperson

#26. What is an exclusive right of sale listing?

Seller can list with multiple brokers

Only one broker is paid regardless of who sells

Broker guarantees sale

Seller must sell to buyer

#27. Which type of lease is based on the tenant’s gross income?

Net lease

Percentage lease

Variable lease

Ground lease

#28. Which term describes the process of evaluating a borrower’s ability to repay a loan?

Pre-approval

Underwriting

Escrow analysis

Appraisal

#29. A ‘net listing’ bases commission on:

A flat fee

The seller’s desired proceeds

Appraised value

Time on market

#30. A real estate license expires:

1 year from issue

2 years from issue

On March 31 or September 30

After closing

#31. What is the function of a deed?

Evidence of loan

Proof of appraisal

Transfer ownership

Secure a mortgage

#32. What is a life estate?

Estate with right of survivorship

Estate for the life of the owner or another

A lease agreement

Temporary property transfer

#33. Who is responsible for the accuracy of closing disclosure in federally related loans?

Title company

Listing agent

Lender

Buyer

#34. What is meant by ‘equity’ in real estate?

Loan amount

Purchase price

Market value minus debt

Appraisal value

#35. A real estate licensee is required to complete how many hours of post-licensing education?

14

30

45

63

#36. A sales associate receives a deposit check late. What should the broker do?

Return it

Hold it

Deposit within 3 business days

Refuse it

#37. Which appraisal principle states that a property’s value is influenced by the cost of acquiring an equally desirable substitute?

Conformity

Anticipation

Substitution

Contribution

#38. A property manager’s first responsibility is to:

The tenants

The public

The broker

The property owner

#39. A property’s value is negatively affected by neighboring properties. This is called:

Regression

Progression

Conformity

Contribution

#40. What is the difference between a mortgage and a promissory note?

Mortgage is a promise to repay

Note is security instrument

Note is evidence of debt, mortgage secures it

Mortgage sets interest rate

#41. What type of mortgage allows for future advances?

Open-end mortgage

Blanket mortgage

Package mortgage

Reverse mortgage

#42. Who owns common areas in a condominium?

Developer

Homeowners’ association

Each individual

City

#43. What is a lien priority based on?

Loan size

Date of recording

Credit score

Property value

#44. What is the key purpose of the Save Our Homes amendment in Florida?

Limit real estate commissions

Prevent zoning changes

Cap annual increases in assessed value

Provide home insurance

#45. Which type of deed is commonly used in real estate transfers?

Quitclaim deed

General warranty deed

Tax deed

Guardian deed

#46. Who must sign a real estate sales contract for it to be enforceable?

Broker and seller

Buyer and seller

Buyer only

Broker only

#47. In which situation can a broker legally keep interest earned on escrow funds?

Never

If stated in contract and agreed upon

Only over $500

With lender’s approval

#48. Which of the following is a fiduciary duty owed by a single agent?

Accounting only

Full disclosure and loyalty

Limited confidentiality

Caveat emptor

#49. What is the primary duty of a transaction broker?

Obedience