Florida Real Estate State Exam Flashcards

These flashcards are designed to help you quickly review and retain the key concepts you need to pass the Florida Real Estate State Exam. Each card focuses on important terms, laws, formulas, and principles commonly tested on the exam. Use this study deck to reinforce your understanding, test your memory, and strengthen your exam readiness. Perfect for quick reviews, daily practice, or last-minute preparation before test day. Study consistently, challenge yourself in Learn Mode, and move one step closer to becoming a licensed Florida real estate professional.

A real estate broker is asked to perform an opinion of value for a homeowner who wants to sell their property but does not need a formal appraisal. What type of valuation service may the broker legally provide?

a. Comparative market analysis (CMA)
b. Certified appraisal
c. Federally related appraisal
d. Mortgage valuation report

✅ Correct Answer: A Comparative market analysis (CMA)

Explanation:
A real estate broker may prepare a comparative market analysis (CMA) or broker price opinion to estimate a property's value. However, a formal appraisal used in federally related transactions must be performed by a licensed or certified appraiser.

Which document establishes the legal framework and ownership structure of a condominium?
a. Articles of incorporation
b. Bylaws
c. Prospectus
d. Declaration of condominium

✅ Correct Answer: D

Explanation:
The Declaration of Condominium legally creates the condominium and defines ownership interests, restrictions, and common elements.

A property owner hires a person to locate tenants for a rental property and pays the person a commission for each tenant secured. This individual is best described as a
a. leasing agent
b. property manager
c. rental agent
d. community association manager

✅ Correct Answer: C

Explanation:
A rental agent specializes in locating tenants and arranging leases for property owners.

If a real estate contract fails to meet the requirements of the statute of frauds, the contract is considered
a. void
b. illegal
c. unenforceable
d. rescinded

✅ Correct Answer: C

Explanation:
The statute of frauds requires certain contracts, including real estate contracts, to be in writing. If they are not written, they are unenforceable in court.

Which type of property is NOT covered under federal fair housing laws?
a. Duplex rental property
b. Commercial warehouse
c. Apartment building
d. Condominium unit

✅ Correct Answer: B

Explanation:
The Fair Housing Act applies only to residential housing, not commercial property such as office buildings or warehouses.

A broker receives an earnest money deposit on Monday morning. When must the broker place the funds into the escrow account?
a. By the end of Monday
b. By the end of Tuesday
c. By the end of the third business day
d. Within seven days

✅ Correct Answer: C

Explanation:
Florida law requires escrow funds to be deposited no later than the end of the third business day after receipt.

A real estate broker is asked to perform an opinion of value for a homeowner who wants to sell their property but does not need a formal appraisal. What type of valuation service may the broker legally provide?

a. Comparative market analysis (CMA)
b. Certified appraisal
c. Federally related appraisal
d. Mortgage valuation report

✅ Correct Answer: A

Explanation:
A real estate broker may prepare a comparative market analysis (CMA) or broker price opinion to estimate a property's value. However, a formal appraisal used in federally related transactions must be performed by a licensed or certified appraiser.

A broker sells property to a buyer but fails to verify that the property is zoned for the buyer's intended use. The broker's actions most likely constitute

a. culpable negligence
b. fraud
c. misrepresentation
d. breach of contract

✅ Correct Answer: A

Explanation:
Culpable negligence occurs when a licensee fails to use reasonable skill and care in performing professional duties.

Which clause in a mortgage prevents the buyer of a property from assuming the existing loan without lender approval?

a. Acceleration clause
b. Prepayment clause
c. Due-on-sale clause
d. Defeasance clause

✅ Correct Answer: C

Explanation:
The due-on-sale clause allows the lender to require the loan to be paid in full if the property is sold.

Florida landlords must notify tenants in writing of how their security deposit will be held within

a. 7 days
b. 14 days
c. 21 days
d. 30 days

✅ Correct Answer: D

Explanation:
Florida law requires landlords to notify tenants within 30 days regarding the handling of their security deposit.

A seller instructs a broker not to show a property to buyers of a certain race. What should the broker do?

a. Follow the seller’s instructions because the broker owes fiduciary duties to the seller
b. Withdraw from the listing agreement
c. Report the seller to the county courthouse
d. Ignore the instruction and continue marketing the property normally

✅ Correct Answer: B

Explanation:
A broker cannot participate in discriminatory practices. If a seller insists on violating fair housing laws, the broker’s best action is to withdraw from the listing agreement.

Which brokerage relationship disclosure is required when a real estate licensee represents a buyer as a single agent?
a. No brokerage relationship notice
b. Consent to transition notice
c. Single agent disclosure
d. Transaction broker disclosure

✅ Correct Answer: C

Explanation:
Florida requires written disclosure of the brokerage relationship. When a licensee represents a buyer as a single agent, the required disclosure is the Single Agent Notice/disclosure.

Which government agency administers the Real Estate Recovery Fund?

a. Department of Financial Services
b. Florida Department of Business and Professional Regulation
c. Florida Real Estate Commission
d. Department of State

Explanation:
The Florida Real Estate Commission (FREC) administers the Real Estate Recovery Fund, which compensates individuals who suffer damages due to licensee misconduct.

Which duty is owed to a customer in a no-brokerage relationship?

a. Loyalty
b. Honest and fair dealing
c. Full disclosure
d. Confidentiality

✅ Correct Answer: B

Explanation:
Even when no brokerage relationship exists, licensees must still treat customers with honesty and fairness.

Which loan type is most commonly originated by mortgage lenders that specialize in real estate financing?

a. Bridge loans
b. Conventional loans
c. Blanket loans
d. Reverse mortgages

✅ Correct Answer: B

Explanation:
Mortgage lenders commonly originate conventional mortgage loans, which are not insured or guaranteed by a government agency.

A real estate developer owns several properties through multiple corporations and partnerships. A sales associate working for this developer may receive

a. multiple broker licenses
b. a group license
c. a developer license
d. an inactive license

✅ Correct Answer: B

Explanation:
A group license allows a sales associate to work for multiple entities owned by the same developer.

A lease that requires the tenant to pay property taxes, insurance, and maintenance expenses in addition to rent is called a

a. gross lease
b. percentage lease
c. variable lease
d. net lease

✅ Correct Answer: D

Explanation:
In a net lease, the tenant pays some or all operating expenses associated with the property in addition to rent.

Which situation may result in a license being revoked without prejudice?

a. Fraud
b. Culpable negligence
c. Issuance of the license by mistake
d. Conversion of escrow funds

Which situation may result in a license being revoked without prejudice?

a. Fraud
b. Culpable negligence
c. Issuance of the license by mistake
d. Conversion of escrow funds

If a real estate license becomes null and void because it was not renewed, the individual must

a. complete continuing education
b. request a hardship extension
c. reapply and pass the state exam again
d. pay a late renewal fee

Explanation:
When a license becomes null and void, the individual must requalify for licensure, including retaking the state licensing exam.

Which of the following individuals must hold an active Florida real estate license?

a. Executor of a will selling estate property
b. Individual selling cemetery lots for a cemetery company
c. Person selling time-share periods for compensation
d. Corporate employee selling company-owned land

✅ Correct Answer: C

Explanation:
Selling timeshare periods for compensation requires proper licensure; executors and certain corporate employees may be exempt, and cemetery sales are regulated separately.

Which factor contributes to the demand for real estate?

a. Increase in zoning restrictions
b. Decrease in population
c. Increase in consumer income
d. Increase in construction costs

✅ Correct Answer: C

Explanation:
Demand for real estate is influenced by several factors including population growth, income levels, consumer preferences, and availability of financing. Higher consumer income typically increases purchasing power and housing demand.

A broker performs a comparative market analysis (CMA) for a property owner. Which of the following is TRUE regarding a CMA?

a. It is a legally binding appraisal
b. It must be performed by a licensed appraiser
c. It is used primarily for mortgage lending decisions
d. It is an estimate of value based on comparable sales

✅ Correct Answer: D

Explanation:
A comparative market analysis estimates value by comparing the subject property to recently sold similar properties. It is not an official appraisal.

Which action is considered a violation of Florida real estate license law regarding escrow deposits?

a. Placing escrow funds in a broker’s personal account
b. Depositing escrow funds within three business days
c. Placing escrow funds in a trust account
d. Notifying the buyer and seller of escrow placement

✅ Correct Answer: A

Explanation:
Escrow funds must be placed in a proper escrow or trust account, not in a broker’s personal account. Doing so constitutes commingling.

Which appraisal principle states that the value of a property is affected by the value of nearby properties?

a. Substitution
b. Regression and progression
c. Contribution
d. Anticipation

✅ Correct Answer: B

Explanation:
Regression and progression describe how nearby property values can influence a property's value (better or worse surrounding properties affect value).

Which federal law requires lenders to disclose the true cost of credit to borrowers?

a. RESPA
b. Equal Credit Opportunity Act
c. Truth in Lending Act
d. Housing and Community Development Act

✅ Correct Answer: C

Explanation:
The Truth in Lending Act (TILA) requires disclosure of the annual percentage rate (APR) and other credit terms to consumers.

Which brokerage relationship allows a broker to assist both parties in a transaction without representing either as a fiduciary?

a. Single agency
b. Dual agency
c. Transaction brokerage
d. Subagency

✅ Correct Answer: C

Explanation:
A transaction broker provides limited representation to both parties without fiduciary duties such as loyalty or confidentiality.

Which license law violation involves mixing escrow funds with personal or business funds?

a. Conversion
b. Commingling
c. Fraud
d. Misrepresentation

✅ Correct Answer: B

Explanation:
Commingling occurs when escrow funds are mixed with a broker’s personal or business funds.

Which document is used to transfer ownership of real property?

a. Lease agreement
b. Deed
c. Mortgage note
d. Promissory note

✅ Correct Answer: B

Explanation:
A deed is the legal document used to transfer title to real property from the grantor to the grantee.

Which situation would most likely increase the demand for housing?

a. Rising unemployment
b. Lower mortgage interest rates
c. Decreasing population
d. Declining wages

✅ Correct Answer: B

Explanation:
Lower mortgage interest rates make home financing more affordable, which generally increases demand for housing.

Which economic factor has the greatest impact on the supply of new housing?

a. Cost of construction
b. Population growth
c. Income levels
d. Consumer preferences

Explanation:
The cost of construction materials and labor significantly affects the supply of new housing because developers base building decisions on profitability.

Question 31

Which appraisal approach is most commonly used to estimate the value of single-family homes?

a. Income approach
b. Cost approach
c. Sales comparison approach
d. Gross rent multiplier

✅ Correct Answer: C

Explanation:
The sales comparison approach is commonly used for residential properties because comparable sales data is readily available.

Which clause in a deed describes the estate being conveyed?

a. Granting clause
b. Habendum clause
c. Covenant clause
d. Warranty clause

✅ Correct Answer: B

Explanation:
The habendum clause describes the estate being conveyed (the 'to have and to hold' clause).

Which action requires a real estate license in Florida?

a. Selling one’s own property
b. Managing property for others for compensation
c. Selling cemetery lots for a nonprofit organization
d. Acting as executor of a will

✅ Correct Answer: C

Explanation:
Individuals selling cemetery lots for compensation must hold an active real estate license.

What is the maximum payment per transaction from the Florida Real Estate Recovery Fund?

a. $25,000
b. $50,000
c. $150,000
d. $1,000,000

✅ Correct Answer: B

Explanation:
The Real Estate Recovery Fund has a maximum payout of $50,000 per transaction (subject to other statutory limits).

Which federal law prohibits discrimination in lending?

a. Fair Housing Act
b. Equal Credit Opportunity Act
c. RESPA
d. Truth in Lending Act

✅ Correct Answer: B

Explanation:
The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending based on race, religion, national origin, sex, marital status, or age.

Local governments regulate land use primarily through

a. mortgage regulations
b. zoning laws
c. federal housing laws
d. private restrictions

✅ Correct Answer: B

Explanation:
Local governments regulate land use through zoning ordinances, which control property uses such as residential, commercial, or industrial.

Which condition must be disclosed to a buyer because it materially affects property value?

a. A previous owner died in the home
b. The home is located in a flood zone
c. The seller is relocating due to divorce
d. The neighbors have children

✅ Correct Answer: B

Explanation:
Material facts that affect property value, such as flood hazards, must be disclosed to potential buyers.

Which feature is common in planned unit developments (PUDs)?

a. Strict separation of land uses
b. Clustering of housing with shared open space
c. Industrial facilities within residential zones
d. Individual maintenance of public areas

✅ Correct Answer: B

Explanation:
Planned unit developments (PUDs) commonly feature clustered housing with shared/open space maintained by an association.

If a broker voluntarily surrenders their license to avoid disciplinary action, the action is known as

a. suspension
b. voluntary relinquishment
c. emergency revocation
d. administrative closure

✅ Correct Answer: B

Explanation:
Voluntary relinquishment occurs when a licensee gives up their license to avoid disciplinary proceedings.

When a licensee makes a statement without knowing whether it is true and a buyer relies on it to their detriment, the licensee may be guilty of

a. breach of contract
b. fraud
c. negligent misrepresentation
d. deceptive trade practice

✅ Correct Answer: C

Explanation:
Making a statement without verifying its accuracy that results in damages may constitute negligent misrepresentation.

Which action may the Florida Real Estate Commission take for a minor first-time violation by a licensee?

a. Notice of noncompliance
b. License revocation
c. Criminal prosecution
d. Civil judgment

✅ Correct Answer: A

Explanation:
For a minor violation, the DBPR may issue a Notice of Noncompliance, which allows the licensee to correct the violation without formal disciplinary action.

A property owner transfers ownership of land to another person for the duration of that person’s life. After that person dies, ownership transfers to a third party. The third party holds a

a. reversionary interest
b. remainder interest
c. fee simple estate
d. leasehold estate

✅ Correct Answer: B

Explanation:
A remainder interest occurs when property ownership transfers to a third party after the termination of a life estate.

Which analysis method is commonly used when appraising businesses but is NOT a standard real estate appraisal method?

a. Sales comparison analysis
b. Income analysis
c. Working capital analysis
d. Cost analysis

✅ Correct Answer: C

Explanation:
Working capital analysis is used in business valuation but is not typically used in real estate appraisal.

Which government power allows local governments to regulate land use for the protection of public health and safety?

a. Eminent domain
b. Escheat
c. Police power
d. Taxation

✅ Correct Answer: C

Explanation:
Police power allows governments to regulate land use through zoning and building codes to protect public welfare.

Which element is NOT required for a valid real estate contract?

a. Legal objective
b. Competent parties
c. Earnest money deposit
d. Mutual consent

✅ Correct Answer: C

Explanation:
A valid contract requires competent parties, mutual consent, consideration, and legal purpose. An earnest money deposit is not required.

Which clause allows a borrower to regain property before foreclosure by paying all delinquent payments and fees?

a. Defeasance clause
b. Acceleration clause
c. Equity of redemption
d. Alienation clause

✅ Correct Answer: C

Explanation:
The equity of redemption allows a borrower to stop foreclosure by paying all amounts owed before the foreclosure sale.

The statute of limitations refers to

a. the time period during which legal action may be taken
b. the time required to record a deed
c. the time allowed to cancel a contract
d. the time required to close a transaction

✅ Correct Answer: A

Explanation:
The statute of limitations sets the time limit within which legal action must be filed.

When the terms of a contract are clearly stated in spoken or written words, the contract is

a. implied
b. executed
c. express
d. unilateral

✅ Correct Answer: C

Explanation:
An express contract clearly states its terms either verbally or in writing.

Which item appears as a debit to the buyer and a credit to the seller on the Closing Disclosure?

a. Purchase price of the property
b. Seller’s mortgage payoff
c. Buyer’s loan origination fee
d. Recording fees

✅ Correct Answer: D

Explanation:
Certain closing costs, including recording fees, may appear as debits to the buyer and credits to the seller depending on the transaction terms.

Which statement about tenancy by the entireties is FALSE?

a. It can only be created between married couples
b. It includes the right of survivorship
c. It can be created between any two individuals
d. It is a form of concurrent ownership

✅ Correct Answer: C

Explanation:
Tenancy by the entireties is a form of ownership only available to married couples.

The use of borrowed funds to increase potential investment return is known as

a. liquidity
b. leverage
c. appreciation
d. capitalization

✅ Correct Answer: B

Explanation:
Leverage is the use of borrowed funds to increase potential return on an investment.

Which mortgage allows interest rates and monthly payments to adjust periodically?

a. Fixed-rate mortgage
b. Adjustable-rate mortgage
c. Reverse mortgage
d. Blanket mortgage

✅ Correct Answer: B

Explanation:
An adjustable-rate mortgage (ARM) has interest rates that adjust periodically based on market indexes.

Depreciation for tax purposes refers to

a. the decline in property value due to market conditions
b. a tax deduction based on property wear and tear
c. the loss of property value due to zoning changes
d. an increase in property value over time

✅ Correct Answer: B

Explanation:
Tax depreciation is an allowable deduction representing wear and tear/obsolescence of improvements over time.

Constructive notice occurs when

a. a buyer receives written disclosure
b. a document is recorded in public records
c. a contract is signed by both parties
d. a broker verbally informs a buyer

✅ Correct Answer: B

Explanation:
Recording a document in the public records provides constructive notice to the public.

The covenant of quiet enjoyment guarantees

a. peaceful possession without interference from others claiming title
b. that neighbors will not create noise disturbances
c. that property taxes will remain constant
d. that the property is free of zoning restrictions

✅ Correct Answer: A

Explanation:
The covenant of quiet enjoyment protects the grantee/tenant’s right to peaceful possession without disturbance by someone claiming superior title.

Which federal law requires lenders to provide loan cost disclosures including APR?

a. RESPA
b. Truth in Lending Act
c. Equal Credit Opportunity Act
d. Fair Housing Act

✅ Correct Answer: B

Explanation:
The Truth in Lending Act (TILA) requires disclosure of APR and other key loan-cost terms.

Question 57

Florida’s Save Our Homes portability provision allows homeowners to transfer up to how much tax benefit to a new homestead?

a. $25,000
b. $50,000
c. $225,000
d. $500,000

✅ Correct Answer: D

Explanation:
Save Our Homes portability allows homeowners to transfer up to $500,000 of homestead tax savings to a new Florida homestead.

In a metes-and-bounds legal description, measurements begin at the

a. section corner
b. township line
c. point of beginning
d. range marker

✅ Correct Answer: C

Explanation:
Metes-and-bounds descriptions begin at the Point of Beginning (POB) and trace the property boundaries.

A mortgage loan that includes both real estate and personal property as collateral is called a

a. blanket mortgage
b. wraparound mortgage
c. package mortgage
d. graduated payment mortgage

✅ Correct Answer: C

Explanation:
A package mortgage includes both real property and certain personal property as collateral.

Which right is NOT included in the bundle of rights associated with property ownership?

a. Possession
b. Control
c. Disposition
d. Intent

✅ Correct Answer: B

Explanation:
The bundle of rights includes possession, control, enjoyment, exclusion, and disposition.

Which type of concurrent ownership includes the right of survivorship?

a. Tenancy in common
b. Joint tenancy
c. Tenancy for years
d. Cooperative ownership

✅ Correct Answer: B

Explanation:
Joint tenancy includes the right of survivorship, meaning when one owner dies, their ownership interest automatically passes to the surviving owners.

In a title theory state, the mortgage lender

a. receives legal title to the property until the loan is repaid
b. only holds a lien on the property
c. becomes a joint tenant with the borrower
d. owns the property during foreclosure

✅ Correct Answer: A

Explanation:
Under title theory, the lender holds legal title to the property until the mortgage loan is fully repaid.

Which loan condition occurs when the loan balance increases rather than decreases during repayment?

a. Positive amortization
b. Negative amortization
c. Partial amortization
d. Interest-only financing

✅ Correct Answer: B

Explanation:
Negative amortization occurs when payments are insufficient to cover interest, causing the loan balance to increase.

During the early years of a fully amortized mortgage loan, which statement is TRUE?

a. Principal payments are greater than interest payments
b. Interest payments are greater than principal payments
c. Principal and interest payments are equal
d. Interest payments decrease to zero

✅ Correct Answer: B

Explanation:
In the early years of amortization, interest makes up the larger portion of each payment.

Which secondary mortgage market participant guarantees mortgage-backed securities backed by government loans?

a. Fannie Mae
b. Freddie Mac
c. Ginnie Mae
d. Federal Housing Administration

✅ Correct Answer: C

Explanation:
Ginnie Mae (GNMA) guarantees mortgage-backed securities backed by FHA/VA and other government-insured/guaranteed loans.

A brokerage maintains an escrow account containing both sales escrow deposits and property management funds. What is the maximum amount of brokerage funds allowed in this account?

a. $500
b. $1,000
c. $5,000
d. $10,000

✅ Correct Answer: C

Explanation:
Florida law allows a broker to place up to $5,000 of brokerage funds in a sales escrow account to maintain the account.

Which of the following is an example of an ad valorem tax?

a. Special assessment
b. Property tax
c. Income tax
d. Sales tax

✅ Correct Answer: B

Explanation:
An ad valorem tax is based on the value of property, which is how real estate property taxes are calculated.

Which real estate professional is exempt from Florida continuing education requirements?

a. Out-of-state licensee
b. Broker with 10 years experience
c. Florida attorney in good standing with the Florida Bar
d. Sales associate with inactive license

✅ Correct Answer: C

Explanation:
A Florida attorney in good standing with the Florida Bar is exempt from the real estate continuing education requirement.

A developer planning a new subdivision must submit which document to the planning commission?

a. Zoning variance application
b. Subdivision plat map
c. Title abstract
d. Environmental disclosure

✅ Correct Answer: B

Explanation:
Subdivision plat maps show lots, streets, and easements and are submitted for local approval.

Which appraisal method is most appropriate when valuing a public building such as a library or school?

a. Sales comparison approach
b. Income approach
c. Cost approach
d. Market extraction approach

✅ Correct Answer: C

Explanation:
The cost approach is commonly used for special-purpose/public buildings that rarely sell and do not produce typical income.

A property sold quickly at auction due to financial distress. This value is best described as

a. investment value
b. liquidation value
c. market value
d. assessed value

✅ Correct Answer: B

Explanation:
Liquidation value reflects a forced or quick sale under distress conditions.

The value of a business beyond its physical assets is known as

a. working capital
b. goodwill
c. market value
d. replacement value

✅ Correct Answer: B

Explanation:
Goodwill is the intangible value of a business, such as reputation and customer loyalty.

A broker deposits escrow funds into the brokerage operating account. This is an example of

a. conversion
b. commingling
c. proper escrow handling
d. fiduciary compliance

✅ Correct Answer: B

Explanation:
Commingling occurs when escrow funds are mixed with business or personal funds.

Which name may legally appear on a real estate license?

a. Personal business trade name
b. Corporation owned by the licensee
c. The brokerage firm employing the licensee
d. Any advertising name used by the licensee

Explanation:
A license should reflect the name of the brokerage firm with which the licensee is registered/associated.

Which statement about advertising is FALSE?

a. Advertisements must identify the brokerage firm
b. Flyers are considered advertising
c. Ads must include the broker’s registered name
d. All advertisements must include the brokerage address

✅ Correct Answer: D

Explanation:
Ads must identify the brokerage; however, including the brokerage office address is not required in all advertising.

Which statement about a real estate brokerage corporation is FALSE?

a. It must be registered with the FREC
b. It must have at least one officer who is a licensed broker
c. All officers must hold real estate licenses
d. Articles of incorporation must be filed with the state

✅ Correct Answer: D

Explanation:
A brokerage corporation must be registered with FREC and have at least one broker officer, but not all officers must be licensed.

A broker who changes their business address must notify the Florida Real Estate Commission within

a. 5 days
b. 10 days
c. 30 days
d. 60 days

✅ Correct Answer: B

Explanation:
Florida law requires brokers to notify the FREC of an address change within 10 days.

In the rectangular survey system, section numbers increase

a. north to south
b. south to north
c. east to west
d. west to east

✅ Correct Answer: D

Explanation:
Sections within a township follow a serpentine numbering pattern, alternating direction each row.

A lender refuses to approve a mortgage loan because the applicant is elderly despite having strong credit and income. This action violates

a. Fair Housing Act
b. Equal Credit Opportunity Act
c. RESPA
d. Truth in Lending Act

✅ Correct Answer: B

Explanation:
ECOA prohibits discrimination in lending decisions, including discrimination based on age.

Which element is NOT required for a valid deed?

a. Grantor’s signature
b. Legal description
c. Consideration
d. Signature of the grantee

✅ Correct Answer: D

Explanation:
A deed requires the grantor’s signature, legal description, and delivery, but the grantee does not need to sign.

An honorably discharged veteran applying for a Florida real estate license within a certain period of discharge may qualify for which benefit?

a. Waiver of the application fee
b. Waiver of the license examination
c. Waiver of fingerprint processing
d. Waiver of the recovery fund fee

✅ Correct Answer: A

Explanation:
Florida law allows certain honorably discharged veterans to receive a waiver of the initial application fee when applying for licensure within a specified time after discharge.

A person who accepts mortgage loan applications and negotiates loan terms for compensation is called a

a. mortgage lender
b. loan originator
c. mortgage broker
d. loan processor

✅ Correct Answer: B

Explanation:
A person who takes applications and negotiates loan terms for compensation is a mortgage loan originator (loan originator).

Which authority does the Florida Real Estate Commission have regarding licensees?

a. Imprison licensees for violations
b. Reprimand or fine licensees
c. Award damages in lawsuits
d. Cancel civil contracts

Explanation:
FREC can discipline licensees (e.g., reprimand, fine, suspend, revoke) but does not cancel civil contracts.

If a seller refuses to pay a real estate commission after closing, the broker may

a. cancel the sale contract
b. file a lawsuit for the commission
c. retain the buyer’s deposit
d. revoke the seller’s title

✅ Correct Answer: B

Explanation:
A broker may file a civil lawsuit to recover a commission owed under the listing agreement.

Which township is located directly south of Township 2 South, Range 4 East?

a. Township 1 South, Range 4 East
b. Township 3 South, Range 4 East
c. Township 2 South, Range 5 East
d. Township 3 North, Range 4 East

Which township is located directly south of Township 2 South, Range 4 East?

a. Township 1 South, Range 4 East
b. Township 3 South, Range 4 East
c. Township 2 South, Range 5 East
d. Township 3 North, Range 4 East

Which township is located directly south of Township 2 South, Range 4 East?

a. Township 1 South, Range 4 East
b. Township 3 South, Range 4 East
c. Township 2 South, Range 5 East
d. Township 3 North, Range 4 East

✅ Correct Answer: A

Explanation:
Florida property taxes become a lien on January 1, the date property is assessed.

Which valuation assignment may be completed by a real estate broker without following USPAP standards?

a. Mortgage refinancing appraisal
b. Court-ordered appraisal
c. Broker price opinion
d. Government appraisal

✅ Correct Answer: C

Explanation:
A broker price opinion (BPO) may be prepared by a broker and is not a USPAP appraisal assignment.

For real estate licensing purposes, a Florida resident is defined as a person who has lived in the state continuously for at least

a. one month
b. two months
c. three months
d. four months

✅ Correct Answer: D

Explanation:
For licensing purposes, a Florida resident is someone who has resided continuously in the state for four months.

A broker holding escrow funds may NOT place the funds in

a. a Florida commercial bank
b. a savings association
c. a Florida credit union
d. an out-of-state bank

✅ Correct Answer: D

Explanation:
Escrow funds generally must be held in a Florida banking institution; an out-of-state bank is not permitted unless properly authorized/handled under Florida rules.

A broker lists a commercial motel property for sale. The seller instructs the broker not to sell to members of a certain race. Which statement is TRUE?

a. The broker may follow the seller’s instructions because the property is commercial
b. The seller may discriminate if selling without a broker
c. The broker must refuse the instruction
d. The Civil Rights Act of 1866 prohibits racial discrimination in all real property transactions

✅ Correct Answer: D

Explanation:
The Civil Rights Act of 1866 prohibits discrimination based on race in all real property transactions, including commercial properties.

A property closes on June 10. The buyer assumes the seller’s mortgage. Which entry appears on the closing statement?

a. Debit seller, credit buyer
b. Credit seller, debit buyer
c. Debit buyer only
d. Credit buyer only

✅ Correct Answer: B

Explanation:
Mortgage assumption is typically a credit to the seller and a debit to the buyer for the assumed balance.

State documentary stamp tax on deeds in Florida is calculated based on

a. property assessed value
b. mortgage balance
c. purchase price of the property
d. loan interest rate

✅ Correct Answer: C

Explanation:
Documentary stamp tax on deeds is based on the consideration/purchase price (with local variations for Miami-Dade).

If zoning requires 7,500 square feet per residential lot, which factor determines the number of buildable lots?

a. Density requirements
b. Zoning ordinances
c. Minimum lot size regulations
d. Property tax rates

If zoning requires 7,500 square feet per residential lot, which factor determines the number of buildable lots?

a. Density requirements
b. Zoning ordinances
c. Minimum lot size regulations
d. Property tax rates

A lender evaluating a borrower’s debt-to-income ratio is analyzing

a. borrower’s equity position
b. borrower’s ability to repay the loan
c. property market value
d. property depreciation rate

✅ Correct Answer: B

Explanation:
The debt-to-income ratio measures the borrower’s ability to repay a loan based on monthly obligations.

When estimating construction cost for a property using cost per square foot, the appraiser is applying the

a. income approach
b. cost approach
c. market comparison approach
d. capitalization approach

✅ Correct Answer: B

Explanation:
Cost per square foot is a method used within the cost approach to estimate replacement/reproduction cost.

Capital gain from the sale of property is calculated as

a. sale price minus purchase price
b. sale price minus adjusted basis
c. sale price minus loan balance
d. sale price minus market value

✅ Correct Answer: B

Explanation:
Capital gain equals sale price minus the adjusted basis, which includes purchase price plus improvements and selling costs.

A homeowner with a homestead exemption receives a reduction in

a. assessed value
b. just value
c. taxable value
d. market value

✅ Correct Answer: C

Explanation:
The homestead exemption reduces taxable value (not market/just value).

An investor sells property for more than the purchase price and earns a return on investment. This gain is known as

a. depreciation
b. leverage
c. appreciation
d. amortization

✅ Correct Answer: C

Explanation:
Appreciation is the increase in property value over time.

A real estate commission is typically calculated based on

a. listing price
b. sales price
c. assessed value
d. mortgage amount

✅ Correct Answer: B

Explanation:
Commissions are typically calculated as a percentage of the sales price.

When an appraiser assigns different weights to comparable sales to determine value, the process is called

a. averaging
b. market extraction
c. weighted analysis
d. capitalization

✅ Correct Answer: C

Explanation:
Assigning different weights to comparables is weighted analysis.