A Planned Unit Development (PUD) is best described as a (an):

area more dense than residential zoning, designed to maximize development.

The purpose of the Mortgage Insurance Premium (MIP) charged to a buyer with an FHA loan is to:

protect the lender due to the low down payments made by FHA borrowers.

Which terms listed below are required for a valid deed?

An accurate legal description and signature of the grantor

Which characteristic of value and component, would cause the lender to refuse to make a new loan for a buyer?

Transferability – the title is not marketable

Which statement listed below is the best example of mortgage fraud?

A mortgage loan applicant omits information on the loan application form

What two items must occur before the Eminent Domain of a property- either all or part can occur?

There must be a condemnation proceeding and the owner must be compensated.

Every real estate brokerage sign must be located:

on the entry door or close to it.

Which phrase best describes the term undivided interest when speaking of co-ownership or concurrent interest?

All owners have a shared interest in one property; not divided

A real estate license is required in Florida if one negotiates a sale as part of a business relationship with:

another individual and expects compensation related to the transaction.

John owns a unit. The tenant is disabled and wants to make adjustments to the home. What are Johns options as the owner?

This can’t be refused. The tenant tenant can pay and must restore unit.

Which items are expenses associated with the property that are used to arrive at NOI by deducting from Effective Gross I

Taxes, insurance, management fees, maintenance, utilities and reserves.

When a cap rate used with income capitalization is high, the following relationship with sales price exists:

risk and cap rate are higher, the sales price is usually lower.

There was an offer of $250,000 the seller pay closing costs. They put 10% down w 1 discount. What’s the total cash need

$27,250 ($25,000x0.10)= $225,000x0.10= $2,250. $25,000+$2,250=$27,250

VA loans require less cash from veteran borrowers because there is:

no down payment, but there are closing costs.

The Government Rectangular Survey Method numbers sections within a township from:

1-36 beginning in the upper NE corner of the township like a snake

Which phrase below best describes the meaning of the term Annual Percentage Rate (APR)?

The true and actual cost of the amount financed.

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1-20 Real Estate Practice Exam

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Questions 20

Answers

1
A Planned Unit Development (PUD) is best described as a (an):
area more dense than residential zoning, designed to maximize development.
shared ownership of common area and expenses.
zoning classification used by cities to designate low income housing.
HOA where the ownership has fewer deed restrictions than other types of ass
2
The purpose of the Mortgage Insurance Premium (MIP) charged to a buyer with an FHA loan is to:
set a minimum standard for lending with an FHA loan product.
protect the lender due to the low down payments made by FHA borrowers.
pay the Federal Government for help with the mortgage lending process.
cover the cost of the FHA appraisal
3
Which terms listed below are required for a valid deed?
An accurate legal description and signature of the grantor
A date and a promise of undue influence
Signatures of the grantee and grantor
The date and signature of the grantee
4
A complaint was filed against Joe a third time. If found guilty, the maximum fine he can face is:
$2,000
$1,000
$10,000
$5,000
5
Which characteristic of value and component, would cause the lender to refuse to make a new loan for a buyer?
Transferability – the title is not marketable
Utility – the property is on a golf course and the buyer is not a golfer
Demand – there are many other properties like this one
Situs – the location is not desirable
6
What is the base Homestead Exemption?
$25,000
$50,000
$50,000 less school taxes
$35,000
7
Which statement listed below is the best example of mortgage fraud?
A VA buyer pays more than the Certificate of Reasonable value with his own
A borrower with a low credit pays a higher note rate so the loan is funded
An FHA finances FHA mortgage insurance since he is short on cash
A mortgage loan applicant omits information on the loan application form
8
A licensee has been notified that there is formal complaint against him. How long does he have to respond?
35 days
50 days
20 days
5 days
9
What two items must occur before the Eminent Domain of a property- either all or part can occur?
The property must have a loss of value and the owner must want to sell.
The owner must want to sell the property and the court must find a buyer.
There must be a condemnation proceeding and the owner must be compensated.
There must be a property assessment and owner agreement with outcome.
10
Every real estate brokerage sign must be located:
on the entry door or close to it.
on a 3x3 sign in the parking lot next to the office.
where it is easy to see.
immediately inside of the entrance to the building.
11
Which phrase best describes the term undivided interest when speaking of co-ownership or concurrent interest?
The interest in the property is shared but only one owner may legally use
All owners have a shared interest in one property; not divided
The owner’s name are all listed on the same insurance policy
Property taxes go to only one owner not all owners
12
A real estate license is required in Florida if one negotiates a sale as part of a business relationship with:
another individual and expects compensation related to the transaction.
a buyer for a property that is owned by the negotiator.
the owner of a mobile home as a courtesy.
an employer and sells real estate as a part of his salaries employment.
13
John owns a unit. The tenant is disabled and wants to make adjustments to the home. What are Johns options as the owner?
This can’t be refused. The tenant tenant can pay and must restore unit.
The wheel chair ramp is okay, not the cabinet. John can refuse the tenant.
John does not need to allow the repairs; he is the owner and has rights.
John must allow the repairs and may not charge the tenant for the cost.
14
Which items are expenses associated with the property that are used to arrive at NOI by deducting from Effective Gross I
Mortgage payment, taxes, and insurance
Mortgage, Interest, taxes and insurance.
Taxes, insurance, management fees, maintenance, utilities and reserves.
Insurance, maintenance, management fees and interest
15
When a cap rate used with income capitalization is high, the following relationship with sales price exists:
cap rate and risk are low, the sales price is low as well.
risk and cap rate are higher, the sales price is usually lower.
risk is high and the sales price is correspondingly high.
risk is low and the sales price is low.
16
There was an offer of $250,000 the seller pay closing costs. They put 10% down w 1 discount. What’s the total cash need
$22,500 ($25,000x0.10)= $225,000x0.10= $2,250. $25,000+$2,250=$27,250
$25,000 ($25,000x0.10)= $225,000x0.10= $2,250. $25,000+$2,250=$27,250
$20,000 ($25,000x0.10)= $225,000x0.10= $2,250. $25,000+$2,250=$27,250
$27,250 ($25,000x0.10)= $225,000x0.10= $2,250. $25,000+$2,250=$27,250
17
VA loans require less cash from veteran borrowers because there is:
no down payment, but there are closing costs.
a small down payment.
no closing costs and no down payment.
a down payment, but no closing costs.
18
The Government Rectangular Survey Method numbers sections within a township from:
1-24 in the upper NW corner of the township with a vertical pattern
1-12 from left to right depending upon the size of the section
1-6 in each township- as all township have six sections
1-36 beginning in the upper NE corner of the township like a snake
19
Which phrase below best describes the meaning of the term Annual Percentage Rate (APR)?
The amount of the purchase price in relationship to the amount borrowed
A RESPA rule that requires a special document at closing.
A contract that reveals the cost paid when a house is purchased.
The true and actual cost of the amount financed.
20
A buyer for a property enters into a contract for purchase. He later finds that the home is bankrupt. This filing may:
delay the closing.
require Joe to sue his seller for specific performance.
terminate the contract.
have no effect on the sale.

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