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Tricky Real Estate Exam Questions Flashcards | StudBud
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Tricky Real Estate Exam Questions
Tricky Real Estate Exam Questions
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1
Which original instrument or statement would a buyer not receive at or after closing?
a mortgage
a closing statement
a deed
a title insurance policy
2
How much personal money may a broker place in a property management escrow account?
None
$5000
$1000
$200
3
The clause in a deed that shows the type of estate being conveyed is the
premises clause
tenendum clause
habendum clause
granting clause
4
Interest rate the Fed Reserve Bank charges member banks for borrowing from them is called?
the prime rate
discount points
the reserve requirement
discount rate
5
Broker lincese invol. inactive for 2 yrs 1 month what must they do to legally operate again?
60hr broker post course,28hr continuing ED,pass broker exam
42 hr of continued ED & pass continued ED course exam
FREC Course 1, pass the sale's associate licensing exam
FREC Course 2, pass the brokers licensing exam
6
Which of the following is
NOT
true regarding FHA mortgages?
Allows borrower/seller may pay points on FHA mortgage loan
FHA insures fixed,adjustable rate& shared appreciation mort.
Secretary of HUD establishes interest rates on FHA mortgages
MIP is paid to FHA in full at closing, & monthly afterwards
7
FHA section 245 refers to which of the following?
It allows for periodic adjustment of the interest rate
It is for residential loans exceeding for units
It is for subsidized interest payments
It allows for gradual increase of payment
8
When evaluating the borrower's attitude & willingness to pay a debt, the lender considers their
credit rating
income
all of the above
assets
9
A buyer goes to court & demands specific performance. If court agrees, the seller would have to
pay for title insurance
pay liquidated damages
return the good faith deposit
convey title as agreed
10
Which disclosure must be given to the buyer of both new and resale residential condo units?
Estimated Operating Cost
Prospectus
Declarartion
Governance form
11
What is the opposite of north 10 degrees east?
south 10 degrees west
south 10 degree north
north 10 degree west
south 10 degrees east
12
Lease where the tenant pays rent,prop. taxes,ins.&other cost usually the responsibility of
P.O.
gross lease
variable sales lease
fixed lease
net lease
13
If you are not to be disturbed with claims upon your title, you would want a
warrant of further assurance
a warrant of seisin
warrant forever
a warrant of quiet enjoyment
14
A man negotiated an FCC TV deal and was paid. He's not a licensed broker/sales assoc. The man
must secure a communications license from DBPR
has violated SEC regulations
has not violated F.S. 475
has acted as an unlicensed real estate broker
15
A real estate option contract must
all of the above
be written
have valuable consideration
contain specified terms
16
What clause in the mortgage allows the lender ti accelerate the loan if the property is sold?
Prepayment clause
due on sale
seisin
subordination
17
A 72 yrs old man is denied a loan even though he has great credit and payment history. This is
an example of redlining
legal bc his age makes it unlikely he will repay the loan
a violation of fair housing laws
violates the Equal Credit Opportunity Act
18
F.S. prohibits discrimination in hotels,rest. & all public places according to national origin?
Civil Rights Act of 1866
Fair Housing Act of 1968 (as amended)
Civil Rights Act of 1964
Florida Fair Housing Act
19
The type of loan where payments are not sufficient to pay off is due in a final single payment
reverse annuity mortgage
wraparound mortgage
term mortgage
variable mortgage
20
An option contract for real property must be in writing
only if for a period longer than a year
to avoid misunderstandings
if other than valuable consideration is used
always
21
Amount (m) homeowners with Homestead Exept. for 2 preceding yrs transfer to new home under SOH
100,000
500,000
$50,000
225,000
22
What time period must landlords of 5 or more units let tenants of method used to hold sec. dep?
30 days
21 days
3 business days
15 days
23
A title theory state is one in which a mortgage....
creates only an encumbrance on title to a property
transfers title to lender or escrow agent until loan is paid
creates tenancy in common for lender until loan is paid
creates a joint tenancy for lender until loan is paid
24
The formula to calculate the overall capitalization rate (OAR) is....
NOI divided by owner's equity
debt divided by service x value( or price)
NOI divided by value( or price)
NOI x value( or price)
25
An offer may be terminated by all of the following actions
EXCEPT
notice revoking the offer after consideration is given
presenting the offer on a timely basis
expiration of a reasonable or specified time period
death or insanity of either party
26
Which is true about a promissory note?
all of the above
It is the borrower's pledge of collateral for the property
It is not required to be part of a mortgage loan transaction
It shows the loan amount,interest rate, term & payment due
27
Which of the following is unilateral contract?
contract for deed
exclusive right of sale contract
open listing contract
contract of the sale of land
28
All of the following is correct about property descriptions by monuments
EXCEPT
expensive equipment is necessary
a description is imprecise
monuments may be moved
references may be destroyed
29
Constructions loan proceeds are disbursed:
att the beginning of the project
in draws after specified stages of construction are complete
only after the project is complete
in drafts during the project as needed by the builder
30
Which expense is subtracted to derive NOI?
Vacancy and collection losses
Mortgage payments
Income Taxes
Depreciation
31
When a party lists a property on an exclusive listing contract, which is correct?
they may list with more than one broker
they will pay commission no matter who sells the property
they give the broker the right to sign contracts for them
reserves right to sell the property & list w/ only 1 broker
32
An option contract for real property without consideration is
valid and binding
voidable by the optionee
not an option
voidable by the optionor
33
A person must hold an active real estate license if, for expressed or implied compensation they
manage an apartment building complex on site for salary only
rent mobile home lots in a mobile home park
manage condo rentals as a salary manager 4 single unit-owner
advertise a list of available rental properties
34
No matter how many ppl involved in same trans the Real Estate Rec fund will pay what per claim?
$50,000
$25,000
$75,000
$150,000
35
Bus. brokers appraise businesses using methods similar to real estate transactions
EXCEPT
working capital analysis
asset appreciation analysis
stock, bond, & debenture analysis
liquidation analysis
36
A man earned commission off the sale of a laundry mat with 6 more yrs left on the lease,the man
must be registered with FREC as real estate licensee
must be registered w/ FL Retail Commission as bus. broker
must be registered with FREC as business broker
needn't be registered w/ a state agency given the situation
37
The deed used to transfer title of a minor's property is a
personal representative's deed
committee's deed
quitclaim deed
guardian's deed
38
Which savings association is federally chartered?
Trust Savings, N.A.
National Savings and Loan
First National Savings Association
Federal Savings Association
39
The term "subject to the mortgage" written in a deed accomplishes the following
2. it relieves the buyer of liability
1. it acknowledges the debt
both 1 & 2 only
3. it relieves the seller of liability
40
Who can bid for property at a foreclosure sale?
2. the broker
1. the mortgagor/ mortgagee
1, 2, & 3
3. the public
41
Broker has a listing, gets an offer for more than ask, buys himself & resells. Which is false?
The profit from the sale is called an "overage"
The broker has violated the his duties to the seller
This is legal if the broker w/draws from the listing first.
The profit from the sale is called a "secret profit"
42
A contract for sale using a street address for property description is
not valid under the Statute of Frauds
valid,but may result in dispute as to precise boundaries
a violation of Chapter 475, F.S.
valid but only if contract is witnessed & notarized
43
A licensee makes statements material to a trans that cause damages to buyer,they are guilty of?
deceptive services
breach of trust
capable negligence
fraud
44
The use of natural or other "monuments" in land surveying is
more exact because of the type of instrument used
not a legal way of measuring
used to describe more rectangular land than any other method
outdated but still in many deeds
45
Which is a governmental insurance company?
The Department of Veteran's Affairs
Fannie Mae
Ginnie Mae
FHA
46
Title is
the evidence of right which a person has to possess property
any instrument which creates or declares legal rights
a piece of paper
a legal instrument transferring freehold estate between ppl
47
Which is a correct statement?
revocation is a mutual agreement to cancel contract
listing 2 'effect sale' doesn't close,entitled to commission
binder deposit isn't essential to real estate contract
The statute of limitations on a parol contract is 5 yrs
48
An individual who acts as an intermediary between potential tenants and the property owner is?
a property manager
community association manager
Absentee owner
a rental agent
49
Which item is entered on the Closing Disclosure as a credit tip the seller?
Purchase price
Prorated prop taxes that have not been paid before closing
Seller's mortgage paid of at closing
Prepaid rent on rental property
50
Requirements of a valid deed do
NOT
include
good or valuable consideration
voluntary delivery and acceptance
signature of competent grantee
signature of two witnesses
51
Abert agrees to sell, Bill agrees to buy but doesn't give deposit. Which applies?
Both 1 & 3
1. Promises to buy & sell is adequate consideration
3. This agreement must be in writing to be enforceable
2. This is not binding as there is no consideration
52
the call is "North 90 degrees east". This line would run
east and west
north by Northeast
north by east
north and south
53
Refers to a mortgage where during the early years of the loan, the principle balance increases
Gradual payments
Negative Amortization
Positive Leverage
Reverse annuity
54
The statutory right of redemption allows which of the following?
specified allowable time before foreclosure can be initiated
specified allowable time before the loan can be accelerated
a time until default
time until the loan can be paid off before foreclosure
55
What requires a real estate sales contract to be in writing?
the statute of limitations
the Florida real estate license law
the Florida Association of REALTORS
the statute of frauds
56
an amortized mortgage where the payment gradually increase is known as
an open-end mortgage
a conventional mortgage
a variable-rate mortgage
a graduated payment mortgage
57
The purpose of the constitutional homestead is to
allow only husband & wife to own property
be sure spouse gets at least 30% of net distribution estate
prohibit homestead from being foreclosed by mortgage company
to exempt execution
58
What deed clause seller defines the quality of ownership interest conveyed to the buyer?
Habendum
Convent if quiet enjoyment
Convenant of further assurance
Seisin
59
Which of the following affect the validity of a deed?
failure to record
failure to have 3 witnesses
failure to sign
failure to acknowledge
60
When is the FHA mortgage insurance premium paid?
semiannually
at closing, then monthly
just at closing
monthly
