CRAM 1

1: In which area of brokerage has absentee ownership increased the demand? a) Business opportunity brokerage | b) Commercial sales | c) Agricultural sales | d) Property management

d) Property management. Ch. 1, Specialization within the Real Estate Profession: Absentee owners need someone local to market, rent, collect income, supervise repairs, and protect the asset; those duties create demand for property management.

2: How is a real estate appraiser typically paid? a) A fee based upon seniority | b) A fee based upon time and difficulty of the appraisal | c) A fee based upon the value of the property appraised | d) A commission based upon the value of the property

b) A fee based upon time and difficulty of the appraisal. Ch. 1, Appraising: Appraisers are paid a fee based on the time and difficulty of the assignment. Payment cannot be a commission or be tied to the appraised value because that would threaten independence.

3: What does the local planning agency have the authority to approve? a) Building permits | b) Deed restrictions | c) Escheat actions | d) A subdivision plat map

d) A subdivision plat map. Ch. 19, Authority of the Local Planning Agency: A local planning agency reviews and approves subdivision plat maps. Building permits are normally issued by the building department; deed restrictions are private controls; escheat is a state power.

4: What is it called when a developer gives land to a governmental body? a) Eminent domain | b) Condemnation | c) Lis pendens | d) Dedication

d) Dedication. Ch. 1, Construction and Development: Dedication is the voluntary gift of land by a private owner or developer for public use, often for streets or parks. Eminent domain is a forced taking; condemnation is the legal process used to take it.

5: What business is a licensee engaged in who markets, leases, and maintains property for someone else? a) Property management | b) Business brokerage | c) Universal agency | d) Estoppel

a) Property management. Ch. 1, Specialization within the Real Estate Profession: Marketing, leasing, collecting rents, arranging maintenance, and otherwise operating another person's property is property management.

6: In which service of real estate must a licensee disclose the agency relationship and the responsibilities of that relationship to the public? a) Residential sales | b) Residential leasing | c) Real estate appraisals | d) Real estate auctions

a) Residential sales. Ch. 4, Disclosure Requirements: Florida's Brokerage Relationship Disclosure Act applies to residential sales. The statutory disclosure requirements generally do not apply to residential rentals, appraisals, or auctions.

7: Which power authorizes the FREC to pass or revise rules? a) Ministerial powers | b) Quasi-executive | c) Quasi-judicial | d) Quasi-legislative

d) Quasi-legislative. Ch. 3, The FREC, Powers of the Commission: Quasi-legislative power lets FREC adopt and revise rules that implement Chapter 475. Quasi-judicial power involves deciding violations; executive/ministerial functions administer the law.

8: All of the following would be grounds for suspension or revocation of a real estate license, EXCEPT: a) Not giving the proper agency disclosure | b) Falsifying information on a license application | c) Not being a resident of Florida | d) False advertising

c) Not being a resident of Florida. Ch. 2, General Qualifications; Ch. 6, Exhibit 6.3: Florida residency is not required for a Florida real estate license. Misrepresentation on an application, false advertising, and failure to give a required disclosure can support discipline.

9: Sandy works as a sales associate for a broker and has been asked to work weekends for a developer to sell new homes on commission. What must Sandy do to work for the developer? a) Transfer her license from the broker to the owner-developer | b) Notify the broker where she can be found on weekends | c) Contact the state and be issued a group license | d) Contact the state and be issued multiple licenses

a) Transfer her license from the broker to the owner-developer. Ch. 2, Employment; Ch. 5, Sales Associate’s Duties, Change of Employer or Address: A sales associate may have only one registered employer at a time. Sandy must transfer her license to the owner-developer before performing commissioned real estate services for that developer.

10: What does the license law require a licensee to complete before the first renewal of a Florida real estate license? a) A continuing education course | b) A minimum number of transactions | c) A post-licensing course | d) A REALTOR orientation course

c) A post-licensing course. Ch. 2, Renewing a Florida Real Estate License: Before the first renewal, a sales associate must complete the prescribed post-license course. After the first renewal, the regular continuing-education requirement applies.

11: In a brokerage corporation, the officers and directors can be active or inactive brokers or nonlicensed registered persons. If someone who is nonlicensed and registered wants to become a broker, what must they do? a) File an application with the secretary of state | b) Only take a 40-question law exam | c) Qualify for a broker license in the same way as anyone else | d) Demonstrate two years of experience in the real estate business

c) Qualify for a broker license in the same way as anyone else. Ch. 2, Obtaining a Florida Real Estate License, License Categories, Broker; Ch. 5, Real Estate Brokerage Corporation: Being registered as a nonlicensed corporate officer or director does not waive broker qualifications. The person must qualify for and obtain a broker license through the normal process.

12: Who would be exempt from the real estate licensing law? a) An apartment manager in an on-site rental office renting for two years | b) A condominium manager leasing units for two years on salary | c) A mortgage broker negotiating a lease for one year | d) A person who rents mobile home lots

d) A person who rents mobile home lots. Ch. 2, Individuals Who are Exempt from Licensure: A person renting mobile-home lots is within a statutory exemption. The other activities described involve compensated real estate services that do not fit the stated exemption.

13: Which entity provides the best protection for the public during a real estate transaction? a) The National and State Association of REALTORS | b) The punishment of licensees dealing dishonestly | c) The NAR Code of Ethics | d) FREC and the license law

d) FREC and the license law. Ch. 2, Purpose of the Law; Ch. 3, The Florida Real Estate Commission: FREC and Florida's license law provide governmental regulation and enforceable public protection. REALTOR associations and their ethics rules apply only to members.

14: Which of the following is a characteristic of a group license? a) It allows a broker to have branch offices. | b) It allows a sales associate to work for more than one broker. | c) It may be held by a sales associate or broker associate. | d) It allows a broker to qualify for more than one brokerage firm.

c) It may be held by a sales associate or broker associate.. Ch. 3, Group License and Multiple Licenses, Group License: A group license may be issued to a sales associate or broker associate employed by an owner-developer with affiliated entities. It does not permit employment by unrelated brokers.

15: All of the following are exempt from F.S. 475, EXCEPT: a) Trustees for an estate | b) Personal representatives for an estate | c) Mortgage brokers engaged in financing activities | d) Business brokers

d) Business brokers. Ch. 2, Individuals Who are Exempt from Licensure: Business brokers who sell businesses that include or involve real property must be licensed. Trustees and personal representatives acting within their duties, and mortgage brokers doing only financing, may qualify for exemptions.

16: Complete the sentence. A broker who holds more than one broker license: a) Holds multiple licenses | b) Is in violation of the license law | c) Must register one as a branch license | d) Can have only one active at a time

a) Holds multiple licenses. Ch. 3, Group and Multiple Licenses: A broker holding more than one broker license holds multiple licenses, commonly to qualify more than one brokerage entity. This differs from a group license held by an associate for affiliated owner-developers.

17: Complete the sentence. General partners in a brokerage partnership that are not qualified to perform the services of real estate must be registered: a) As inactive sales associates | b) As ostensible partners | c) As inactive broker associates | d) For identification purposes

d) For identification purposes. Ch. 5, Types of Business Formations: Nonlicensed general partners must be registered for identification purposes. They cannot perform licensed services merely because they are partners.

18: Bill’s license expired on September 30. On February 14, of the following year, he wants to renew it. If it is not his first renewal, what must Bill do? a) Start over with a pre-license course | b) Pay a late fee and complete two 14- hour continuing education classes | c) Pay a late fee and complete 14 hours of continuing education | d) Pay a late fee and complete 45 hours of post-license education

c) Pay a late fee and complete 14 hours of continuing education. Ch. 2, Renewing a Florida Real Estate License: Because the license has been involuntary inactive for less than 12 months, Bill pays the late fee and completes 14 hours of continuing education. Longer inactivity can require additional education, and more than two years makes the license null and void.

19: Ron and his spouse each have real estate licenses before he enters the military. Ron is stationed in Washington, D.C., and his spouse accompanied him there. If they make their licenses inactive: a) Only Ron is exempt from renewal requirements until six months after he is discharged. | b) Only Ron is exempt from renewal requirements until 12 months after he is discharged. | c) Ron and his spouse are exempt from renewal requirements until two years after Ron’s discharge. | d) Ron and his spouse are exempt from renewal requirements until 12 months after Ron’s discharge.

c) Ron and his spouse are exempt from renewal requirements until two years after Ron’s discharge.. Ch. 3, Licensing Periods, Renewal: An active-duty member stationed outside Florida and an accompanying licensed spouse may keep inactive licenses without renewal until 12 months after discharge.

20: What is the status of a sales associate’s license if the sales associate works for a broker, and that broker loses their license? a) Unaffected | b) Suspended | c) Revoked | d) Involuntary inactive

d) Involuntary inactive. Ch. 3, Void and Ineffective Licenses: When the employing broker's license becomes ineffective, the sales associate's license becomes involuntary inactive because an associate cannot operate without an active registered employer.

21: The Florida Real Estate Commission may do all of the following, EXCEPT: a) Impose imprisonment as a penalty | b) Pass rules to implement the license law | c) Make determination of violations | d) Establish licensing fees

a) Impose imprisonment as a penalty. Ch. 6, Range of Penalties: FREC may make rules, decide violations, and set fees within statutory authority, but it cannot imprison anyone. Imprisonment is imposed by a court as a criminal penalty.

22: Karl’s license expired on September 30, 2019. On February 10, 2023, he decides to activate it again. Which is correct? a) He must complete 28 hours of continuing education. | b) His license is null and void. | c) He must complete 42 hours of continuing education. | d) He must complete 45 hours of post- license education.

b) His license is null and void.. Ch. 3, Active and Inactive License Status: A license that remains involuntary inactive for more than two years automatically becomes null and void. It cannot simply be reactivated with accumulated continuing education.

23: A real estate broker has entered into a single agency relationship with the sellers of a three-bedroom, two- bath house. One of the agents in that broker’s office has found an investor wanting to hire the brokerage firm as a single agent. For the investor to be shown this seller’s house: a) The broker can work as a dual agent for both the buyer and the seller. | b) This would be legal as long as the broker assigns a designated agent for each party. | c) The seller must be informed that the brokerage firm is representing the buyer. | d) Both the seller and the investor must agree to transition to transaction broker status.

d) Both the seller and the investor must agree to transition to transaction broker status.. Ch. 4, Authorized Real Estate Brokerage Relationships: Florida prohibits dual agency. Because the brokerage already represents the seller as a single agent, both parties must give informed consent to transition to transaction-broker status before the firm can work with both sides.

24: What must be given to a seller who is about to enter into a fiduciary relationship with a brokerage firm? a) Single Agency Notice | b) Transition to Transaction Broker Notice | c) Transaction Broker Notice | d) No Brokerage Relationship Notice

a) Single Agency Notice. Ch. 4, Authorized Real Estate Brokerage Relationships: A fiduciary brokerage relationship is single agency, so the seller must receive the Single Agency Notice before or when entering that relationship.

25: What should a sales associate do if their employing broker instructs them not to show properties to people of a certain race? a) Ignore the broker’s instruction | b) Follow the broker’s instruction | c) Ask the broker to put the instruction in writing | d) Find a new employer

d) Find a new employer. Ch. 7, Federal Fair Housing Laws: The instruction is unlawful racial discrimination. A sales associate must not participate in it and should terminate the employment relationship rather than remain subject to an employer directing illegal conduct.

26: Which form requires the signature of all parties? a) No Brokerage Relationship Notice | b) Transaction Broker Notice | c) Single Agent Notice | d) Transition to Transaction Broker

d) Transition to Transaction Broker. Ch. 4, Brokerage Relationship Disclosure Act: Transitioning from single agency to transaction brokerage requires the prior written consent/signatures of the principal(s). The other statutory notices are disclosures but do not require all parties' signatures in the same way.

27: In which instance must the agency disclosure forms developed by the state be used? a) Commercial leasing | b) Residential leasing | c) Residential sales | d) Residential auctions

c) Residential sales. Ch. 4, Brokerage Relationship Disclosure Act: The state-developed brokerage relationship disclosure forms are required for residential sales. Statutory exemptions cover areas such as nonresidential transactions and rentals.

28: Which duty does a broker owe to a customer? a) Full disclosure | b) Avoid adverse interests | c) Obedience | d) Disclose known facts affecting the value of residential property

d) Disclose known facts affecting the value of residential property. Ch. 4, Authorized Real Estate Brokerage Relationships: Even without fiduciary representation, a broker owes a customer honesty and fairness, accounting for funds, and disclosure of known material facts affecting residential property that are not readily observable.

29: What must all advertising of listed property contain? a) Name of the sales associate | b) Telephone number for the brokerage firm | c) Name of the brokerage firm | d) Telephone number of the sales associate

c) Name of the brokerage firm. Ch. 5, Guidelines for Advertising: Every real estate advertisement must make clear that it is from a brokerage and include the registered brokerage firm's name. A sales associate's personal name or phone number alone is insufficient.

30: Sales associate Glenn works for broker John. If Glenn receives an escrow deposit on Tuesday, what should he do? a) Deliver it to his broker by Friday (third business day) | b) Hold deposit until contract is accepted | c) Deliver it to his broker immediately (next business day) | d) Deliver it to his escrow account immediately

c) Deliver it to his broker immediately (next business day). Ch. 5, Depositing Escrow Funds: A sales associate must deliver a deposit to the employing broker by the end of the next business day. The broker then has until the end of the third business day after receipt to place it in escrow.

31: A broker may hold escrow deposits in any of the following, EXCEPT: a) A savings association | b) A commercial bank | c) A credit union | d) A mutual fund

d) A mutual fund. Ch. 5, Escrow Funds, Escrow (Trust) Account: A broker's escrow account may be maintained in a Florida commercial bank, credit union, or savings association. A mutual fund is not an authorized escrow depository.

32: To whom do listings obtained by a sales associate belong? a) The employing broker | b) The listing sales associate | c) The multiple listing service | d) The local association of REALTORS

a) The employing broker. Ch. 5, Sales Associate’s Duties: Listings procured by a sales associate belong to the employing broker. The associate acts on behalf of the broker and cannot take those listings when changing employers.

33: A broker sells a rental list to a prospective tenant for $200. In a written agreement, the broker states that the fee is nonrefundable. This is: a) Legal because it was disclosed in advance | b) Illegal under F.S. 475 | c) Legal but not ethical | d) Legal because the fee was less than $500

b) Illegal under F.S. 475. Ch. 5, Rental Information: A rental-information fee cannot be made completely nonrefundable. Florida law provides refund rights, including a 75% refund if the renter does not obtain a rental and applies within the statutory period.

34: A sales associate wants to use a trade or fictitious name. Which statement applies? a) The name must be registered with the county clerk. | b) The name must be registered with FREC. | c) This would violate F.S. 475. | d) The name must be registered with the secretary of state.

c) This would violate F.S. 475.. Ch. 5, Fictitious (or Trade) Names: A sales associate may not register or operate under a fictitious or trade name; doing so would violate Chapter 475. A brokerage may use a properly registered trade name.

35: Jim is a sales associate applicant but has failed the state exam twice. After reviewing his most recent exam, he feels that some of the questions he missed were really correct and marked wrong in error. What may Jim do? a) File a complaint against the testing company | b) Request a retest at no charge | c) File a written objection to the questions during the scheduled question review | d) Request an informal hearing before FREC

c) File a written objection to the questions during the scheduled question review. Ch. 2, The State License Exam: During the scheduled exam review, an applicant may file a written objection challenging a question believed to have been incorrectly scored.

36: Craig is a real estate sales associate working for ABC Realty, Inc. Craig decides to have refrigerator magnets made to give out to the public. What must he include on the magnets? a) Since Craig is paying for them, he can put anything he wants on them. | b) They must contain Craig’s license status. | c) They must contain the name ABC Realty, Inc. | d) They must contain the word REALTOR or broker.

c) They must contain the name ABC Realty, Inc.. Ch. 5, Guidelines for Advertising: The magnet is advertising and must contain the registered name of the brokerage firm, ABC Realty, Inc., so the public knows the responsible brokerage.

37: A borrower applied for and received an adjustable-rate mortgage (ARM). The interest rate increased more than the periodic cap would allow. The new payment does not cover the full interest that is added to the principal balance and deferred. What is this called? a) Negative amortization | b) Index rate | c) Margin | d) Teaser rate

a) Negative amortization. Ch. 13, Adjustable-Rate Mortgage (ARM): Negative amortization occurs when a payment is too small to cover accrued interest; unpaid interest is added to principal, causing the loan balance to increase.

38: Which business entity may NOT register as real estate brokerage firm? a) Corporation | b) Corporation not for profit | c) Corporation sole | d) General partnership

c) Corporation sole. Ch. 5, Types of Business Formations: A corporation sole cannot register as a real estate brokerage. Corporations, nonprofit corporations, and general partnerships may register if they satisfy licensing requirements.

39: When there is a dispute over escrow funds, the procedures include four choices. Which choice involves a third person recommending a solution? a) Arbitration | b) Mediation | c) Litigation | d) Escrow disbursement order

b) Mediation. Ch. 5, Dispute Settlement Procedures: In mediation, a neutral third party helps the parties communicate and recommends or facilitates a solution, but does not impose a binding decision. Arbitration produces a decision by the arbitrator.

40: Which step follows the investigation in the complaint process? a) Probable cause determination | b) Administrative complaint | c) Formal hearing | d) Informal hearing

a) Probable cause determination. Ch. 6, The Disciplinary Process: After DBPR investigates, the probable-cause panel determines whether sufficient grounds exist to proceed. If probable cause exists, an administrative complaint follows.

41: Complete the sentence. If a licensee does not dispute a citation, it has the same effect as a: a) Cease and desist order | b) Reprimand | c) Final order | d) Formal complaint

c) Final order. Ch. 6, Citation Authority: An undisputed citation becomes a final order. Disputing it triggers the process for a hearing rather than automatic finality.

42: What is the maximum criminal penalty that a court could impose for a second-degree misdemeanor? a) $2,000 fine and/or two years in jail | b) $1,000 fine and/or one year of jail time | c) $500 fine and/or 60 days of jail time | d) $5,000 fine and/or five years in jail

c) $500 fine and/or 60 days of jail time. Ch. 6, Criminal Penalties: A second-degree misdemeanor carries a maximum $500 fine and/or 60 days in jail. More serious maximums apply to first-degree misdemeanors and felonies.

43: Who has the right to file a complaint against a licensee with the DBPR? a) FREC | b) Anyone | c) DRE | d) DBPR

b) Anyone. Ch. 6, The Disciplinary Process: Anyone may file a legally sufficient complaint with DBPR; the complainant need not be a customer, licensee, or government agency.

44: Which punishment would FREC likely impose for a first offense against a broker found guilty of a minor violation? a) $500 fine | b) Notice of noncompliance | c) Citation | d) Suspension

b) Notice of noncompliance. Ch. 6, Administrative Penalties: For a first-time minor violation, FREC will generally use a notice of noncompliance, allowing correction before stronger discipline. Citations and fines address specified or repeated violations.

45: What is the maximum number of years that FREC may suspend a real estate license? a) 3 | b) 5 | c) 10 | d) 15

c) 10. Ch. 6, Range of Penalties - Suspension: FREC may suspend a real estate license for up to 10 years. Revocation is different because it terminates the license rather than pausing it.

46: For multiple claims against a licensee, what is the maximum reimbursement from the Florida Real Estate Recovery Fund? a) $150,000 | b) $50,000 | c) $25,000 | d) $15,000

a) $150,000. Ch. 6, Florida Real Estate Recovery Fund: The Recovery Fund's aggregate cap for judgments arising from the acts of one licensee is $150,000. The separate per-transaction cap is $50,000.

47: Complete the sentence. The Florida Real Estate Recovery Fund: a) Is replenished from state taxes if needed | b) Covers punitive damages | c) Is to protect licensees | d) Is funded from licensing fees

d) Is funded from licensing fees. Ch. 6, Florida Real Estate Recovery Fund: A licensee generally cannot recover from the Fund for losses connected with a transaction in which the licensee acted as a principal, and spouses of the judgment debtor are excluded.

48: Where must the appeals of FREC final orders be filed? a) Circuit Court of Appeals | b) District Court of Appeals | c) Offices of the Association of REALTORS | d) Offices of the Department of Financial Services

b) District Court of Appeals. Ch. 6, The Disciplinary Process: A claimant must first obtain a final civil judgment and make reasonable collection efforts before seeking Recovery Fund payment; the Fund is a remedy of last resort.

49: What is the maximum fine the Commission could impose against a licensee who was found guilty of two violations of Chapter 475, F.S.? a) $10,000 | b) $7,500 | c) $5,000 | d) $1,000

a) $10,000. Ch. 6, Range of Penalties: FREC can impose up to $5,000 per violation. Two violations therefore permit a maximum administrative fine of $10,000.

50: What charge may be filed against a broker who fails to pay their sales associate? a) Culpable negligence | b) Concealment | c) Commingling | d) Failure to account

d) Failure to account. Ch. 6, Fraudulent Activities: A broker who wrongfully withholds compensation owed to an associate may be charged with failure to account. Associates must seek compensation through their employing broker.

51: The Fair Housing Act of 1968 (as amended) prohibits discrimination based upon: a) Race, color, citizenship, sex, family status, or religion | b) Race, color, religion, sex, age, national origin, or handicap | c) Race, color, religion, sex, national origin, family status, or handicap | d) Race, color, age, residency, sex, national origin, or handicap

c) Race, color, religion, sex, national origin, family status, or handicap. Ch. 7, Federal Fair Housing Laws: The federal Fair Housing Act protects race, color, religion, sex, national origin, familial status, and disability/handicap. Age and citizenship are not federal protected classes under this act.

52: What law requires that buyers be given a good faith estimate of closing costs prior to closing? a) Florida Statute 475 | b) Truth-in-Lending Act | c) Sherman/Clayton Antitrust Act | d) RESPA

d) RESPA. Ch. 13, Laws Regarding Fair Credit and Lending Procedures: RESPA requires advance disclosure of settlement/closing costs and regulates settlement services. Truth in Lending focuses on the cost and terms of consumer credit.

53: A licensee picks the properties a particular buyer is shown based on the race of the buyer. What is this illegal act? a) Redlining | b) Blockbusting | c) Steering | d) Commingling

c) Steering. Ch. 7, Federal Fair Housing Act: Steering is channeling buyers toward or away from locations based on a protected characteristic. Redlining concerns lending/insurance areas; blockbusting pressures owners to sell using demographic fear.

54: Telling homeowners that minority families are moving into their neighborhood in an attempt to get them to sell their home and move is referred to as which of the following? a) Steering | b) Redlining | c) Blockbusting | d) Boycotting

c) Blockbusting. Ch. 7, Federal Fair Housing Act: Blockbusting is inducing owners to sell by suggesting that members of a protected class are entering the neighborhood and property values will decline.

55: Broker Bill has been hired to rent Mrs. Brown’s apartment building located in a large college town. Broker Bill quotes lower rents and deposits to females because he has found through experience that they will cause less trouble than males, and females will maintain their apartments in much better condition. This is: a) True and therefore no problem | b) A violation of the Civil Rights Act of 1866 | c) A violation of the Equal Rental Opportunity Act of 1972 | d) A violation of the Fair Housing Act of 1968

d) A violation of the Fair Housing Act of 1968. Ch. 7, Federal Fair Housing Laws: Charging different rent or deposits based on sex is prohibited discrimination under the Fair Housing Act, even if the broker believes a stereotype is supported by experience.

56: Which is correct according to the Florida Residential Landlord and Tenant Act? a) Deposits may be held in an interest- bearing account, and the landlord keeps the interest. | b) Deposits may not be held in a non- interest-bearing account. | c) Deposits may be commingled into the landlord's personal account, provided the landlord has posted a surety bond with a notary public. | d) Landlord must inform tenant within 30 days how the deposit is being held.

d) Landlord must inform tenant within 30 days how the deposit is being held.. Ch. 7, Florida Residential Landlord and Tenant Act: The landlord must notify the tenant in writing within 30 days of receiving the security deposit, stating how and where it is held and whether interest will be paid.

57: A developer advertises homes for sale with a total down payment of $1,500. The developer knows that all of the houses with that amount of down payment have been sold. Is this transaction covered under truth-in-lending laws? a) No, because the advertising was done by a builder/developer, not a broker | b) Yes, because this is bait and switch advertising and is illegal | c) No, because single-family residence is exempt from Regulation Z | d) Yes, because this is puffery and is illegal

b) Yes, because this is bait and switch advertising and is illegal. Ch. 5, False Advertising; Ch. 13, Laws Regarding Fair Credit and Lending Procedures: Advertising a favorable down payment when the advertised homes are unavailable is bait-and-switch advertising. The conduct is deceptive and illegal; being a developer does not excuse it.

58: What is the main purpose of Regulation Z? a) Require lenders to disclose the true cost of credit to consumers | b) Require lenders to disclose closing costs to borrowers | c) Require brokers to disclose closing costs to buyers | d) Require sales associates to disclose commissions to customers

a) Require lenders to disclose the true cost of credit to consumers. Ch. 13, Laws Regarding Fair Credit and Lending Procedures, Truth-in-Lending Act: Regulation Z implements Truth in Lending and requires disclosure of the true cost of consumer credit, including finance charge and annual percentage rate, so borrowers can compare credit.

59: Under the Truth in Lending Act, in credit advertising, which would not be considered a “triggering term”? a) $1,500 down | b) Easy terms | c) 6% interest | d) 10% down

b) Easy terms. Ch. 13, Laws Regarding Fair Credit and Lending Procedures, Triggering Terms: 'Easy terms' is vague and therefore not a triggering term. Specific credit terms such as the amount/percentage down or stated interest rate trigger additional disclosure requirements.

60: A broker receives a kickback or referral fee from a title insurance company. This practice is: a) Legal | b) A violation of RESPA | c) Legal; however, not recommended | d) Illegal; however, FREC will allow it to continue as long as the broker is active

b) A violation of RESPA. Ch. 13, Laws Regarding Fair Credit and Lending Procedures: RESPA prohibits kickbacks and referral fees for settlement-service business when no actual compensable service is performed.

61: A property that borders a river or stream includes which rights? a) Allodial | b) Alluvial | c) Littoral | d) Riparian

d) Riparian. Ch. 8, Real and Personal Property: Riparian rights belong to property bordering a flowing body of water such as a river or stream. Littoral rights apply to lakes, seas, and oceans.

62: The courts usually apply legal tests to determine if personal property has become a fixture. Which of the following is included in those tests? a) Date of purchase | b) Extent of the parties | c) Relationship of the parties | d) All of the above

c) Relationship of the parties. Ch. 8, Real Estate Transaction Property Distinctions: The legal fixture tests include annexation, adaptation, and intent, with the relationship of the parties helping determine intent. Date of purchase is not the controlling test.

63: An owner of a piece of real estate has purchased the materials to fence the backyard. What type of property is the fencing material? a) Trade fixture | b) Real estate | c) Personal property | d) Fixture

c) Personal property. Ch. 8, Real and Personal Property: Fence materials that have been purchased but not yet attached to the land remain personal property. After permanent installation, the fence ordinarily becomes a fixture and real property.

64: Three friends buy a property together with equal shares at the same time. If they have the right of survivorship, what type of tenancy have they created? a) Joint tenancy | b) Tenancy in common | c) Tenancy for years | d) Tenancy by the entireties

a) Joint tenancy. Ch. 8, Estates: Joint tenancy is created through the four unities and includes right of survivorship. Tenancy in common has no automatic survivorship; tenancy by the entireties is limited to spouses.

65: Who owns the property in a tenancy by the entireties? a) Two cohabitating adults | b) Spouses | c) Entirely one person | d) An entire family

b) Spouses. Ch. 8, Freehold Estates: Tenancy by the entireties is ownership by married spouses, treated as one legal unit and including survivorship.

66: What type of tenancy exists when a tenant remains in possession of a property after their rights have expired? a) Joint tenancy | b) Tenancy by the entireties | c) Tenancy at will | d) Tenancy at sufferance

d) Tenancy at sufferance. Ch. 8, Estates: A holdover tenant who remains after the lawful tenancy expires has a tenancy at sufferance. A tenancy at will exists by consent without a definite term.

67: The purpose of the homestead exemption is to protect the surviving spouse and children and to exempt property from foreclosure for: a) Property taxes | b) Debts other than direct debts and federal liens | c) Mortgage debts | d) All debts

b) Debts other than direct debts and federal liens. Ch. 8, Constitutional Homestead Rights: Florida constitutional homestead protects the residence from forced sale for general debts, but not specified direct debts such as property taxes, mortgages, construction liens, or federal liens.

68: Which tenancy contains the right of survivorship? a) In common | b) Joint | c) Sufferance | d) At will

b) Joint. Ch. 8, Estates: Joint tenancy contains a right of survivorship: a deceased joint tenant's interest passes automatically to the surviving joint tenant(s).

69: The initial tax exemption for homestead is available only to owners that: a) Claimed the property as their principal residence as of January 1 and filed by April 15 | b) Claimed the property as their principal residence as of January 1 and filed by March 1 | c) Claimed their property as their principal residence as of March 1 and filed by April 15 | d) Recorded their deed by January 1 and filed by April 1

b) Claimed the property as their principal residence as of January 1 and filed by March 1. Ch. 18, Homestead Tax Exemption: To receive the initial Florida homestead tax exemption, the owner must occupy the property as the principal residence as of January 1 and timely file by March 1.

70: What would the best bundle of rights with a timeshare include? a) Right to use | b) Interval ownership | c) Membership | d) Leasehold

b) Interval ownership. Ch. 8, Timeshares: Interval ownership gives a timeshare purchaser an ownership interest for a recurring time period and therefore the strongest bundle of rights among the choices. A right-to-use plan is contractual rather than ownership.

71: How is the right to occupy a cooperative evidenced? a) Tenancy in common | b) Joint tenancy | c) Deed | d) Proprietary lease

d) Proprietary lease. Ch. 8, Cooperatives: A cooperative occupant owns shares in the corporation and receives the right to occupy a unit through a proprietary lease, not a deed to the unit.

72: What term refers to the power that the government has to take land for the public good? a) Encumbrance | b) Escheat | c) Eminent domain | d) Easement

c) Eminent domain. Ch. 9, Methods of Acquiring Title, Transfer by Involuntary Alienation: Eminent domain is the government's power to take private property for public use with just compensation. Condemnation is the procedure used to exercise that power.

73: Which clause in a deed states that the grantor was in possession and has the right to sell the property? a) Seisin | b) Granting | c) Premises | d) Habendum

a) Seisin. Ch. 9, Clauses in Deeds: The covenant of seisin is the grantor's promise that the grantor owns the estate being conveyed and has the right to convey it.

74: What is actual notice? a) Recording the deed in the public records | b) Possession of the property that can be seen and heard | c) Less valid than constructive notice | d) Notarizing the documents of transfer

b) Possession of the property that can be seen and heard. Ch. 9, Title, Notice of Ownership: Actual notice is direct knowledge, including visible possession or facts a person has seen or heard. Recording gives constructive notice to the world.

75: Complete the sentence. A deed must be: a) Notarized | b) Witnessed | c) Recorded | d) Signed by the grantee

b) Witnessed. Ch. 9, Deeds, Transferring Title: A Florida deed must be signed by the grantor in the presence of two subscribing witnesses. Recording and notarization help protect/record title but are not what makes delivery effective between the parties.

76: How is a quitclaim deed most often used? a) As a tax deed | b) As a way to clear clouds on title | c) As a personal representative’s deed | d) As a guardian’s deed

b) As a way to clear clouds on title. Ch. 9, Types of Deeds: A quitclaim deed transfers whatever interest the grantor may have without warranties, so it is commonly used to release a possible claim and clear a cloud on title.

77: Complete the sentence. The ownership of a property actually transfers from the grantor to the grantee when the deed is: a) Notarized and recorded | b) Delivered and accepted | c) Signed by the grantee and witnessed | d) Signed by the grantee and recorded

b) Delivered and accepted. Ch. 9, Deeds – Transferring Title: Title passes when a properly executed deed is delivered by the grantor and accepted by the grantee. Recording protects priority and provides constructive notice but is not the transfer event itself.

78: What is the purpose of a title search? a) Locate all important documents for a closing | b) Issue title insurance | c) Give constructive notice | d) Run a chain of title

d) Run a chain of title. Ch. 9, Protecting Title: A title search traces the chain of title and identifies recorded ownership interests, liens, encumbrances, and defects before closing or issuance of title insurance.

79: What is a title? a) A deed of conveyance | b) A legally binding contract | c) A piece of paper | d) A bundle of ownership rights

d) A bundle of ownership rights. Ch. 9, Title, Title to Real Property: Title is not a physical document; it is the legal bundle of ownership rights in real property. A deed is an instrument used to convey title.

80: Private restrictions are enforced by private citizens. Which of the following is the strongest control they have over a property owner? a) Leases | b) Easements | c) Deed restrictions | d) Liens

c) Deed restrictions. Ch. 9, Private Limitations on Property Ownership: Deed restrictions are powerful private controls because they directly limit how land may be used and can be enforced through court action such as an injunction.

81: Which statement correctly applies to owner’s title insurance? a) It is transferable to new owners. | b) It protects the mortgagee from title defects. | c) It protects the buyer from title defects. | d) It is required on all transactions.

c) It protects the buyer from title defects.. Ch. 9, Title Insurance: An owner's title policy protects the buyer/owner against covered title defects. A lender's policy separately protects the mortgagee and decreases with the loan balance.

82: Which deed contains no warrants or promises? a) General warranty deed | b) Bargain and sale deed | c) Special warranty deed | d) Quitclaim deed

d) Quitclaim deed. Ch. 9, Types of Deeds: A quitclaim deed contains no covenants or warranties of title; it conveys only whatever interest, if any, the grantor has.

83: If an owner dies intestate with no known heirs, how can the state take the property? a) Elective share | b) Dower rights | c) Eminent domain | d) Escheat

d) Escheat. Ch. 9, Methods of Acquiring Title, Transfer by Involuntary Alienation: Escheat transfers property to the state when an owner dies intestate with no lawful heirs. Eminent domain is a taking for public use, not inheritance succession.

84: How many acres does the following legal description contain? The S 1/2 of the SW 1/4 of the NW 1/4 and the N 1/2 of the NW 1/4 of the SW 1/4 of a Section a) 20 | b) 40 | c) 625 | d) 640

b) 40. Ch. 10, Government Survey Method, Calculating Acreage in a Parcel Containing Contiguous Tracts: Each tract is 640 x 1/2 x 1/4 x 1/4 = 20 acres. The two contiguous 20-acre tracts total 40 acres.

85: The southeast corner of Section 31, Township 1 North, Range 3 West, is how many miles from Tallahassee? a) 17 | b) 18 | c) 23 | d) 24

a) 17. Ch. 10, Government Survey Method: Range 3 West extends 18 miles west of the Tallahassee principal meridian. The southeast corner of Section 31 is one mile east of the range's western edge, so 18 - 1 = 17 miles.

86: The horizontal strip of land six miles wide immediately north of the Tallahassee baseline would be: a) Township 1 East | b) Section 1 North | c) Range 1 North | d) Township 1 North

d) Township 1 North. Ch. 10, Government Survey Method: A township tier is a horizontal strip six miles wide. The first tier immediately north of the baseline is Township 1 North; ranges are vertical columns east or west of the meridian.

87: What type of listing can be held by more than one broker at the same time? a) Open listing | b) Exclusive right of sale listing | c) Exclusive listing | d) All of the above

a) Open listing. Ch. 11, Types of Listing Contracts: An open listing is nonexclusive, so an owner may list with multiple brokers and owes commission only to the broker who is the procuring cause.

88: Which action can terminate a contract? a) Novation | b) Performance | c) Rejection | d) Subrogation

b) Performance. Ch. 11, Contract Termination: Performance terminates a contract when the parties fully carry out their obligations. Novation substitutes a new contract or party but is not the best general answer here.

89: Which item is an essential element of a sales contract? a) An offer and acceptance | b) Witnesses | c) A notary seal | d) An earnest money deposit

a) An offer and acceptance. Ch. 11, Essentials of a Valid Contract: Offer and acceptance (mutual assent) is essential to a valid sales contract. Witnesses, notarization, and earnest money are not universally required elements.

90: What does the statute of frauds require? a) Lawsuits about oral contracts must be filed within four years | b) All contracts must be in writing | c) To be enforceable, a contract transferring an interest in real estate must be in writing | d) Violations are punishable by fines not to exceed $1,000

c) To be enforceable, a contract transferring an interest in real estate must be in writing. Ch. 11, Statute of Frauds: The statute of frauds requires contracts transferring an interest in real estate to be in writing and signed to be enforceable. It does not require every kind of contract to be written.

91: What is stated in the statute of limitations? a) The sentencing guidelines for violations of the law | b) The time frame in which a contract can be enforced | c) To be enforceable, real estate contracts must be written | d) Contracts must be notarized to be enforceable

b) The time frame in which a contract can be enforced. Ch. 11, Statute of Limitations: The statute of limitations sets the time within which a party must bring an action to enforce rights under a contract.

92: The essential elements of a contract include all of the following, EXCEPT: a) Consideration | b) Offer and acceptance | c) Competent parties | d) Notarized

d) Notarized. Ch. 11, Essentials of a Valid Contract: Notarization is not an essential element of a valid contract. Essential elements include competent parties, offer and acceptance, consideration, legal purpose, and required writing.

93: In states which operate under title theory, the borrower: a) Transfers ownership to the mortgagee or a third party until paid | b) Transfers possession to the mortgagee or a third party until paid | c) Pledges the property as security on the loan | d) Creates a tenancy in common with the lender

a) Transfers ownership to the mortgagee or a third party until paid. Ch. 12, Title Theory of Mortgages: Under title theory, legal title is held by the lender or a third-party trustee until the debt is paid, while the borrower retains equitable rights and possession.

94: What is the amount of guarantee based upon for a VA guaranteed loan? a) Appraised value | b) Assessed value | c) Loan amount | d) Sale price

c) Loan amount. Ch. 13, VA Guaranteed Loans: The VA guarantee is calculated from the loan amount. The VA guarantees part of an eligible veteran's loan; it does not insure the loan like FHA.

95: Fill in the blanks. Conventional lenders usually want the buyer’s housing ratio not to exceed ____ and the total obligations ratio not to exceed ______. a) 31%, 43% | b) 29%, 41% | c) 29%, 36% | d) 28%, 36%

d) 28%, 36%. Ch. 12, Income Ratios - Conventional: Traditional conventional underwriting ratios are 28% for housing expense and 36% for total monthly obligations. The ratios use gross monthly income.

96: What is the name for the legal document that pledges a property as security for a loan? a) Promissory note | b) Mortgage | c) Title | d) Bond

b) Mortgage. Ch. 13, Conventional Mortgage Loans: The mortgage is the security instrument that pledges real property for repayment. The promissory note is the borrower's personal promise to pay and states the debt terms.

97: What does the FHA do with respect to mortgage lending? a) Purchases existing loans | b) Makes loans | c) Guarantees loans | d) Insures loans

d) Insures loans. Ch. 13, Types of Mortgages: FHA does not directly make or guarantee private mortgage loans; it insures approved lenders against qualifying borrower default.

98: What is it called when a buyer buys a property and takes over responsibility on an existing loan? a) Agreement for deed | b) Subject to the mortgage | c) Assumption of the mortgage | d) Any of the above

c) Assumption of the mortgage. Ch. 12, Methods of Purchasing Mortgaged Property: In an assumption, the buyer takes over the existing mortgage obligation and becomes responsible for repayment, typically with lender approval. Buying subject to does not make the buyer personally liable on the note.

99: When calculating housing and total obligations ratios, which income value does the lender use? a) Gross monthly income | b) Net monthly income | c) Gross annual income | d) Net annual income

a) Gross monthly income. Ch. 13, Qualifying for a Loan, Income Ratios: Both housing and total-obligation ratios divide monthly expenses by gross monthly income, before payroll deductions.

100: Which type of loan uses both real and personal property as security? a) Blanket mortgage | b) Purchase money mortgage | c) Package mortgage | d) Chattel mortgage

c) Package mortgage. Ch. 8, Real and Personal Property: A package mortgage secures one loan with both real property and personal property, such as a furnished home. A chattel mortgage covers personal property only; a blanket mortgage covers multiple parcels.