Welcome to the 2016 -2017 Florida Real Estate Practice Test Online.

1. How much are Doc stamps on the Deed?

• 50 cents
• $5.00
• $1.00
• 70 cents per $100
• Doc stamps are paid on the total purchase price of the property and they are 70 cents per $100.

2. How much are Doc stamps on the Note?

• 25 cents
• $1.00
• 35 cents per $100
• 70 cents
• Doc stamps on the Note are 35 cents per $100. They are paid on NEW mortgages and ASSUMED Mortgages. It is NOT paid on ''subject'' to mortgages.

3. How much is intangible tax on a real estate purchase mortgage?

• .002
• .5
• 1
• 5.00
• Intangible tax is .002 multiplied by the total Mortgage, intangible tax is paid on NEW mortgages ONLY.

4. Joe bought a house for $125,000 CASH. How much will he have to pay in Doc stamps? (If the seller will not pay)

• $950.00
• $795.00
• $875.00
• $0
• Since there is no mortgage, the only payment Joe will have to make is Doc stamps on the DEED. They are 70 cents per $100 therefore $125,000 / 100 x .70 = $875

5. When a broker receives commission for the sale of a property even though she did not sell it, she most likely has which type of agreement with the property owner?

• Transaction Broker
• No Broker Relationship
• Exclusive Right of Sale
• Exclusive Agency
• When a broker has an exclusive right of sale agreement with the property owner, the broker receives commission regardless of who sells the property.

6. How many consumer members are there of the Florida Real Estate Commission (FREC)

• 1
• 2
• 3
• 4
• FREC has 7 Members: 4 Real Estate Brokers 1 Real Estate Broker or Sales Associate & 2 Consumer Members

7. Property management is becoming common because of

• Market fluctuation
• Development
• Absentee owners
• Financing
• Owners of property who do not reside at the property and instead rely on professionals to manage the property including renting it to a tenant, are known as Absentee owners.

8. By Florida law real estate APPRAISERS must abide by

• NAR
• USPAP
• BPO
• REALTOR
• Florida law requires real estate APPRAISERS to abide by the Uniform Standards of Professional Appraisal Practice (USPAP)

9. A broker can charge a fee for a Broker Price Opinion (BPO)

• True
• False
• A broker MAY charge a fee for a Broker Price Opinion of a property as long as it is not labeled as an APPRAISAL or a federally related loan.

10. What must developers submit to the local planning board?

• Permit
• Subdivision plat map
• Letter of Intent
• Inspection results
• Developers must submit a subdivision plat map to the local planning board. A subdivision plat map details the subdivision of land into lots or tract.

11. Which is NOT a type of residential construction?

• Speculative Homes
• Custom Homes
• Tract Homes
• Block Homes
• Speculative Homes are when a developer builds without a buyer in advance. Custom homes are when a developer builds a home as per a buyer's specifications. Tract homes are when a developer builds a model home for other buyers to mimic.

12. Joe wants to develop a house in an already developed subdivision, he has to match a certain architectural design. Most likely there is a ___________________.

• Lien
• Deed Restriction
• Dedication
• Restrictive covenant
• A Restrictive covenant is recorded by a developer in the public records on a whole subdivision which affects how the land can be used such as design and square footage.

13. Buyer Rick wants to sell alcoholic beverages from a new property he bought. The previous owner of the property put a ____________ on the property which does not permit him to do so.

• Restrictive Covenant
• Deed restriction
• Plat Map
• Assignment
• A deed restriction is placed on a property by an owner which limits a future owners land use.

14. How many hours are required for the Florida Real Estate Sales Associate post licensing course?

• 45 hours
• 50 hours
• 63 hours
• 14 hours
• Florida real estate associates are required to take a 45 hour post licensing course within 2 years of becoming a licensed agent.

15. Toby has a 4 year real estate degree from Florida University which Florida Real Estate COURSE is he NOT exempt from?

• Sales Associate Pre-License Course
• Broker Pre-License Course
• Post- License Course
• Continuing Education
• A person with a 4 year real estate degree is exempt from the Sale Associate Pre and Post License course, they are also exempt from the Broker pre-license course. They are NOT exempt from the 14 hour continuing education every 2 years.

16. If a brokers licensed is suspended, the employed sales associates licenses become

• Null and Void
• Involuntary Inactive
• Suspended
• Voluntary Inactive
• The sales associates licenses will be placed on involuntary inactive until they register with a new broker.

17. Which individual is exempt from a real estate license?

• Susan showing rental homes
• Lisa Selling cemetery lots
• Rick auctioning of real property
• Sam receiving salary and commission from his broker
• You do not need to have a real estate license to sell cemetery lots.

18. Members of the Florida Real Estate Commission (FREC) are appointed by the Governor and Confirmed by the State Senate

• True
• False
• Members of the Florida Real Estate Commission (FREC) are appointed by the Governor and Confirmed by the State Senate

19. Fiduciary duties are generally associated with what type of representation

• Transaction Broker
• Single Agent
• Dual Agent
• No Broker Relationship
• A single agent has fiduciary duties which are complete compliance with the principal (buyer or seller) and accepts employment of ONLY seller or ONLY the buyer.

20. A transaction broker

• Provides limited representation to a buyer and seller
• Has fiduciary duties
• Has a principal relationship
• Is a single agent
• A transaction broker provides limited representation and does not have fiduciary duties to a seller or buyer.

21. When must a No Brokerage Relationship disclosure be made?

• Entering a contract
• After the showing of property
• At the time of sale
• Before the showing of property
• In a No Broker relationship a disclosure must be made before showing of property.

22. Broker Bianca wants to change from a Single Agent relationship to a Transaction broker

• She must get written permission from her principal.
• She may not do so.
• She must ask her broker.
• She must seek an attorney.
• If Bianca wants to change representation from a single agent to a transaction broker she must get written permission from her employing principal (buyer or seller).

23. Designated sales associates can be assigned in a non-residential transaction if

• FREC appoints them.
• The broker signs off on it.
• The buyer and seller each have assets of $1 million dollars or more
• A No Broker Relationship disclosure is signed.
• In a non-residential transaction where the buyer and seller each have over $1 million dollars in assets, an employing broker can assign a designated sales associate for a buyer and one for a seller.

24. Which is a broker NOT required to have visible on their office sign?

• Trade Name
• Licensed Real Estate Broker
• Broker Name
• Address
• Brokers are required to have their Trade name, the words ''Licensed Real Estate Broker and their Full name on their office sign.

25. Sean the tenant pays the landlord monthly rent and is NOT responsible for property taxes or insurance, Sean has which type of lease?

• Ground Lease
• Variable Lease
• Net Lease
• Gross Lease
• Gross lease- tenant pays rent and landlord pays taxes, insurances, and repairs. Net Lease- tenant pays rent PLUS costs such as taxes and insurance. Percentage lease- tenant pays rent based on a gross sales earned on leased property. Variable lease- tenant pays rent which may increase in future. Ground lease- tenant pays rent for land and builds a building on land.

26. Intersecting in Tallahassee Principle Meridian is North to South and Base Line Meridian is East to West.

• True
• False
• Principle Meridian - North to South Base Line Meridian - East to West

27. How many acres are in one square mile?

• 90 acres
• 640 acres
• 120 acres
• 190 acres
• In a section there is one square mile also known as 640 acres.

28. The SW1/4, NE1/4, SE1/4, NW1/4 contains how many acres?

• 1.5 acres
• 640 acres
• 9 acres
• 2.5 acres
• Multiply the denominators of the fraction and then divide the result by 640. 4 * 4 * 4 *4 = 256 and then 640 /256 = 2.5 acres

29. Jen is selling her house which was built in 1977 what must she disclose to the buyer at closing?

• Previous owner name
• Lead-based paint
• Garage door height
• Clerk contact
• If the house was built prior to 1978 a lead-based paint disclosure must be given to the buyer or renters.

30. A buyer must be given an ad valorem property tax disclosure which states

• Buyer is exempt from property taxes in that area.
• Buyers future property tax amount may differ from the sellers.
• Property taxes are paid in arrears.
• Seller is not responsible for property tax.
• A buyer must be given a disclosure concerning property tax ad valorem which cautions the buyer not to rely on the amount of the sellers property tax as it may vary in the future.

31. Which lien has priority over all other liens?

• Mechanic Lien
• Property Tax Lien
• Vendor Lien
• Construction Lien
• When selling the property a property tax lien MUST be satisfied before any other lien regardless of lien date.

32. The mortgagee advances the due date of the unpaid mortgage this is known as

• Due On Sale Clause
• Defeasance Clause
• Prepayment Clause
• Acceleration Clause
• The Acceleration clause authorizes the mortgagee to accelerate the due date of the entire unpaid balance.

33. Mortgage loan originators do not make loans.

• True
• False
• Mortgage loan originators also known as mortgage brokers find loans for borrowers.

34. In which market are loans created?

• Federal market
• Primary market
• Secondary market
• Treasury market
• The primary market contains lenders that originate loans for borrowers.

35. Which market buys and sells existing mortgages?

• Federal market
• Treasury market
• Primary market
• Secondary market
• The secondary market is an investor market where participants like Fannie Mae, Freddie Mac and Ginnie Mae purchase mortgages from the primary market.

36. Ginnie Mae approved mortgage-backed securities _____________.

• Carry the full faith and credit guarantee of the federal government.
• Are to be paid on closing date.
• Are sold to the primary market.
• Do not have to pay fees.
• Ginnie Mae mortgage backed securities carry the full faith and credit guarantee of the federal government.

37. The Federal Reserve 'Regulation Z' requires Lenders disclose the annual percentage rate (APR) in appliance with

• The Real Estate Procedures Act
• Equal Credit Opportunity Act
• The Truth in Lending Act
• The Civil Rights Act of 1866
• The Truth in Lending Act requires lenders to disclose the annual percentage rate and costs associated with credit.

38. At the time of the mortgage loan application The Real Estate Settlement Procedures Act (RESPA) requires

• Good Faith Estimate
• Insurance
• Lien
• APR
• In appliance with the Real Estate Settlement Procedures Act (RESPA) a Good Faith Estimate and HUD's Settlement cost booklet is to be disclosed at the time of mortgage loan application.

39. Financial institutions must make credit available without discrimination of race in accordance with

• The Civil Rights Act of 1866
• The Real Estate Procedures Act
• The Truth in Lending Act
• The Equal Credit Opportunity Act
• The Equal Credit Opportunity Act states that financial institutions are not to discriminate based on race, color, religion, national origin, sex, marital status, age or receivers of public assistance.

40. Down payments are not required on VA (Veteran Affairs) loans

• True
• False
• The VA charges a funding fee to cover certain costs however a down payment is NOT required on VA loans.

41. How many square feet are in an acre?

• 1,200
• 4,356
• 43,560
• 640
• There are 43,560 square feet in one acre.

42. Potential gross income minus vacancy and collection losses is

• Effective gross income
• Net income
• Total income
• Potential income
• Effective income is potential gross income minus vacancy and collection losses. To calculate Net operating income minus operating expenses from the effective gross income.

43. Chris has been driving through Ashley's property for the past 20 years to get to work, Chris has which type of easement

• Appurtenant
• Gross
• Prescription
• Necessity
• Easement by prescription is created after continuous usage of another's property for 20 years.

44. Jim the sales associate receives an escrow deposit on Tuesday when is the deadline to turn it over to his broker?

• Wednesday
• Thursday
• Friday
• Saturday
• Jim must turn the escrow deposit over to his broker by the end of the the next business day of receiving it (Wednesday).

45. Tenancy by the entireties convey title at the same time and must be

• Husband & Wife
• Unequal percentage
• Tenants in common
• Undivided interest
• Tenancy by the entireties is a tenancy between husband and wife and the right of survivorship must exist.

46. A developer of 20 or more new residential units must give a __________ to a buyer.

• Interval
• Time Share
• Plat Map
• Prospectus
• A developer must give a purchaser a prospectus which gives condominium details.

47. Testate is when a person prepared a will before death and Intestate is when a person dies without a will prepared.

• True
• False
• If a person prepares a will and then dies this is known as testate, if the person dies without a will this is known as intestate.

48. Drew the tenant pays the landlord rent in advance and a security deposit, the landlord puts the funds in his personal account

• The landlord must put the funds in an interest bearing escrow account
• The landlord is allowed to put the funds in his personal account
• The landlord is not allowed to put the funds in his personal account they must be put in a separate account
• The landlord is allowed to put the funds in his personal account as long as he does not spend them
• The law requires the landlord to put the advance funds in a separate account and the landlord is not allowed to mix the funds with personal funds.

49. A licensee may receive kickback as long as

• It is after the closing
• It is under $1000
• A licensee may not receive kickback
• The buyer and seller are fully aware of the kickback
• Kickback is a fee paid to a licensee associated with a real estate transaction for non real estate services such as a referral. Licensee may receive this ''referral fee'' under certain circumstances and all parties (buyer and seller) must be informed.

50. The Department of Business and Professional Regulation (DBPR) is under which Florida Statute

• Chapter 61j2
• Chapter 475
• Chapter 455
• Chapter 20
• The Department of Business and Professional Regulation (DBPR) is under the Chapter 455 Florida Statute.

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VR Universal Realty provides this practice exam only for review purposes only and is no way implying that VR Universal Realty is a real estate school or provides real estate classes. These questions ARE NOT from the Florida Real Estate Exam they are purely instances that occur in the real estate industry.