Prepare for your Florida 45 Hour Post-Licensing Real Estate exam with these practice questions and answers. This guide covers Florida real estate law, contracts, ethics, and advanced practices.
Q: A married couple have prequalified for a $240,000 conventional mortgage. If they put 20% down, they can buy a house for
Answer: $300,000
Q: What facts need not be disclosed in a real estate transaction?
Answer: The property was the site of a homicide.
Q: What is a good graphic to show a seller that there will be more activity if the property is competitively priced?
Answer: The pricing pyramid
Q: A home sells for $310,500. Expenses of the sale are $4,800. The brokerage fee is $18,630. Prorations for taxes and interest are $5,036. The mortgage payoff is $181,500. What are the seller’s proceeds from the sale?
Answer: $100,534
Q: Filing a suit to quiet title is used when
Answer: a title defect is found, which is difficult to remove by ordinary means.
Q: What are the benefits of restrictive covenants?
Answer: Maintain and enhance value
Q: What’s the downside for a principal who has a single agent?
Answer: Responsible for the single agent’s acts
Q: What is the likely cause of a contract for sale of real estate being ruled as unenforceable?
Answer: Unwritten agreement
Q: Aside from a property’s location, what is the most important factor that influences market value?
Answer: Highest and best use
Q: The margin is
Answer: the percentage added to the index of an adjustable-rate mortgage that results in the calculated rate.
Q: A home sells for $370,000. The mortgage payoff is $262,500. What is the seller’s equity?
Answer: $107,500
Q: How often do mortgage loan originators need to have a criminal background check?
Answer: Every year
Q: A written listing agreement with a self-renewing clause
Answer: is void.
Q: When you explain the pricing process during a listing presentation, you would NOT ordinarily discuss
Answer: the process of closing a sale.
Q: What are the three keys to prospecting success?
Answer: Organization, numbers, and consistency
Q: A sales associate, to test his understanding of what the customer has said, uses words that are similar, but not exactly the same as the customer’s. This is called
Answer: paraphrasing.
Q: Which party may pay a licensed personal assistant for selling activities?
Answer: It is not legal to pay a personal assistant—whether licensed or unlicensed—a portion of a real estate commission.
Q: In a relatively new neighborhood with 524 homes, 72 houses were sold. The turnover index in this neighborhood is
Answer: 13.7% // 7%. 72 houses sold ÷ 524 total homes = .137 or 13.7%
Q: The Florida Realtors®/Florida Bar Residential Contract for Sale and Purchase is best for
Answer: a residential sale.
Q: Sometimes when a buyer is not quite ready and wants to think about it a while longer, the salesperson should
Answer: ask permission to prepare the paperwork as if they were buying, then go over it.
Q: An exclusive agency listing is used when
Answer: an owner lists with a broker on the basis that if the property is sold by a broker, the broker is entitled to a commission, but if the owner sells his own property, he owes no commission.
Q: If a selling sales associate attempts to present an offer without the listing agent being present,
Answer: it would likely alienate the seller because the seller has more trust in the listing sales associate.
Q: A single agent broker must give a brokerage relationship disclosure when a transaction is
Answer: the sale of a duplex.
Q: A woman had a fourth bedroom built onto her house last year that cost $75,000. A recent appraisal valued the bedroom at $52,000. This demonstrates the principle of
Answer: contribution.
Q: When should the price be covered when presenting an offer?
Answer: Last
Q: At what rate do taxpayers pay for short-term capital gains?
Answer: The investor’s ordinary income tax rate
Q: A buyer can save money by making at least a 20% down payment because
Answer: the buyer won’t have to pay for mortgage insurance.
Q: The total room count in a house would include
Answer: bedrooms.
Q: The four basic loan processing procedures are
Answer: checking the borrower’s ability to repay, appraising collateral’s property value, preparing loan documents, and checking the title of the collateral.
Q: The three types of operating expenses of an income property are
Answer: reserves for replacements, fixed, and variable.
Q: Which emails are illegal under the CAN-SPAM Act?
Answer: Misleading from and to information in the email
Q: A home is being appraised for a mortgage loan. One of the comparable properties is smaller than the subject property, and the appraiser estimates the difference to be $7,800. The appraiser will make
Answer: a plus $7,800 adjustment to the comparable.
Q: Which purchase and sale agreement item supersedes the other?
Answer: Handwritten clause supersedes the printed clause
Q: Which listings may be entered into the MLS?
Answer: Exclusive agency listings and exclusive right-of-sale listings
Q: Florida law requires brokers to
Answer: give sellers the copies of written listing agreements within 24 hours.
Q: A sales associate is talking with a customer. When the customer crosses his legs, the associate smiles and crosses his arms. The associate is using a reflecting method called
Answer: matching.
Q: A substantial good-faith deposit and a bank preapproval letter means that the buyer is
Answer: ready, willing, and able.
Q: What are the requirements for persons disturbing lead-based paint in a house?
Answer: The person must be certified and follow specific work procedures.
Q: Reconciliation is
Answer: the resolution of several adjusted values on a comparative market analysis.
Q: Which would be considered a preclosing duty?
Answer: Making a walk-through inspection of the property
Q: A buyer is closing on the purchase of a residence. The ad valorem taxes for the year are estimated to be $2,640. The closing date is February 1, and the day of closing belongs to the buyer. Using the 365-day method, what is the proration?
Answer: Debit seller, credit buyer $224.22
Q: Under the Americans with Disabilities Act, there must be at least one accessible parking space for every
Answer: 25 spaces.
Q: What is the purpose in having your buyers write a letter to the seller saying why they want to buy the home?
Answer: To help sellers favor your buyers over competing buyers
Q: An economic contraction is
Answer: the phase of a business cycle after a recession in which consumer confidence is shaken and consumers reduce spending.
Q: What is the most likely reason why a sales associate sets appointments with the seller using a range of time rather than a specific time?
Answer: Because a prospective buyer may stay longer in some houses than the sales associate had planned
Q: A sales associate was preparing a comparative market analysis for a three-bedroom home. One of the three comparable sales he reviewed had an extra bedroom and a larger lot. He made a $7,000 adjustment for the extra garage stall and a $4,000 adjustment for lot size. Which is TRUE about his analysis?
Answer: The subject home is less valuable than the comparable property.
Q: Pyramiding gives the impression of
Answer: superiority.
Q: What must be given to borrowers within three days after the loan application?
Answer: Loan estimate
Q: A noncash expense similar to depreciation that accounts for the eventual wearing out of major components of the property is called
Answer: reserves for replacements.
Q: The components of a full title report are
Answer: a survey, a physical inspection of the collateral, and a search of the records.
Q: A sales associate wants to earn at least $45,000 next year. If the average commission from listings sold is $3,000, how many listings must she sell in order to achieve that portion of her goals?
Answer: 15
Q: A person who calls for the address of a property is likely
Answer: looking at a real estate classified ad.
Q: A feature of a biweekly mortgage is
Answer: 26 annual payments.
Q: An economic recovery is defined as
Answer: two successive quarterly increases in the gross domestic product.
Q: What are the five categories of a sales associate’s leads?
Answer: Close friends and family, friends, customers, acquaintances, and targeted strangers
Q: A person may not send a commercial advertising fax unless he has
Answer: an established business relationship.
Q: Under the Americans with Disabilities Act, if the removal of barriers can be accomplished with little difficulty or expense, it is considered
Answer: readily achievable.
Q: Social media is defined as
Answer: technology for people who want to create and share information in the virtual communities they join.
Q: Which is NOT a requirement for a listing?
Answer: Having a self-renewing clause
Q: The minimum legal description for a platted subdivision would include
Answer: subdivision name, county, lot and block number, plat book and page number.
Q: What are the best sources for a property’s legal description that will be used in a contract?
Answer: The county clerk’s office, owner’s deed, previous title policy
Q: What is NOT the purpose for making a preclosing walk-through inspection?
Answer: To check that all items are in working order
Q: Which professional providing services to the real estate industry must have a high school diploma, complete a 120-hour course, and pass a state examination?
Answer: Home inspector
Q: Information on the do-not-call registry includes
Answer: the person’s phone number.
Q: When a loan officer looks over a person’s credit score, she knows that the most important factor in setting that score is the applicant’s
Answer: payment history.
Q: The Fair Housing Act does NOT protect persons
Answer: in a same-sex relationship.
Q: What usually happens when a listed property is overpriced?
Answer: The listing expires.
Q: In what case would sales tax be required for personal property included in a house sale?
Answer: If the contract for the sale of the house includes a list and separate valuation of the personal property
Q: Where is the best place to find expired listings?
Answer: The MLS
Q: Owners of 800 homes in a subdivision list their houses, on average, every eight years. If a sales associate farms that neighborhood and lists 20% of the homes, how many homes can she expect to list this year?
Answer: 20 // 800 homes ÷ 8 years = 100 homes listed annually. 100 × .20 = 20 homes listed by the sales associate.
Q: A salesperson wishes to take home $80,000 annually. If taxes, dues, advertising, and fees are about 35% of his total earnings, he should set his goal at around
Answer: $123,000. // Divide the desired earnings by .65 (100% – 35%). $80,000 ÷ .65 = $123,077, rounded to $123,000.
Q: A sales associate is estimating the prepayments for a new loan that will close on April 12. If the first payment is due on June 1, how will the prepaid interest be calculated for the closing statement?
Answer: The buyer will be charged from April 12 through April 30.
Q: Which federal law requires fair consideration of consumer loan applications from women, minorities, part-time employees, and others who may have suffered prejudicial treatment in the past?
Answer: The Equal Credit Opportunity Act
Q: If a neighborhood has good turnover but has a low price range
Answer: it is unlikely to be a good farm area.
Q: In order to make successful prospecting calls, a sales associate should
Answer: be consistent, making them at the same time each day.
Q: Open listings
Answer: may be oral, written, or implied.
Q: Effective gross income is
Answer: the amount remaining when vacancy and collection losses are subtracted from potential gross income.
Q: It is a bad idea for sales associates to
Answer: personally perform the preclosing walk-through inspection to be certain all items are in working order.
Q: If the seller defaults, and the contract was written using the Florida Realtors®/Florida Bar Residential Contract for Sale and Purchase, the buyer
Answer: may get the binder back and cancel the contract
Q: Which is correct about real estate licensees who prepare an appraisal?
Answer: The appraisal cannot be used by a bank for a new loan.
Q: A property sold for $149,300. How much must be paid for the documentary stamp taxes on the deed?
Answer: $1,045.10
Q: When at least 80% of units in a complex have at least one occupant who is at least 55 years of age,
Answer: the owners can advertise it as “adults only.”
Q: Which is NOT a requirement for a successful listing presentation?
Answer: Must be younger than 60 years old
Q: Which is an operating expense of an income property?
Answer: Management fee
Q: A person who has an immediate need to buy is called
Answer: a Priority 1 buyer.
Q: When you talk with a for sale by owner about her property, your principal objective should be to
Answer: make an appointment.
Q: The Civil Rights Act of 1866 prohibits discrimination based on
Answer: race.
Q: The sphere of influence is NOT
Answer: a farm area
Q: Hearing, understanding, and evaluation are part of what type of skill set?
Answer: Listening
Q: A show list consists of
Answer: apartments that are currently available for rent and in excellent condition.
Q: A sales associate who asks a prospective buyer, “How many bedrooms do you need in the house?” is
Answer: qualifying the buyer’s housing objectives.
Q: A sales associate receives a good-faith deposit from a buyer on Wednesday. The broker must deposit the funds into the escrow account no later than the following
Answer: Monday.
Q: Antitrust laws
Answer: prohibit price fixing.
Q: At closing, a seller will be asked to sign an affidavit that
Answer: there are no liens or rights to file a lien on the property.
Q: When staging the home, the seller should
Answer: highlight with color.
Q: A person applies for a $300,000, 30-year fixed-rate mortgage loan at 4%. The mortgage payment factor is .00477415. Taxes for the year are $4,000, and insurance is $2,400. Her monthly payment for principal, interest, taxes, and insurance (PITI) will be
Answer: $1,965.58. // 58. $300,000 × .00477415 = $1,432.25 principal and interest. $4,000 taxes ÷ 12 months = 333.33. $2,400 insurance ÷ 12 months = 200. $1,432.25 + $333.33 + $200 = $1,965.58 total PITI.
Q: What is a real problem for many for sale by owners when showing the property?
Answer: When curb appeal is not good, buyers often pass by a for-sale-by-owner house without stopping.
Q: A sales associate is qualifying a married couple who are interested in purchasing a house, but who are unable to complete the transaction because they have a house they have to sell first. The sales associate should
Answer: make an appointment to see the home and list it.
Q: Which event automatically allows a buyer to void a purchase and sale contract?
Answer: The appraisal value is lower than the value required in a contract contingency.
Q: An example of redlining occurs when
Answer: a loan officer tells a buyer that the mortgage interest rate will be higher because the home is located in a minority area.