PRACTICE EXAM A

(The answers to the following questions are at the bottom of this page.)

1. To make a claim against the recovery fund, one must do all of the following except

a. Submit proof that the license can't pay the entire judgement
b. Obtain a court judgement against the licensee.
c. Notify F.R.E.C.
d. Post a surety bond.

2. In the event that the salesperson fails to pay for the renewal fee when due, whose license will be affected automatically?

a. Salesperson
b. Salesperson broker
c. Principal broker
d. All salespeople in the firm

3. One of the main purposes of the license laws is to:

a. Protect the licensee from the effects of untrustworthy licensees.
b. Protect the general public.
c. Limit the number of licensees.
d. Resolve disputes between licensees.

4. Which is true concerning real estate contracts?

a. A Seller can be sued for "specific performance' if a contract is not performed.
b. A Seller must sign an agreement to sell if the offeror's terms are exactly in accordance with the listing agreement.
c. The sole remedy for default of the buyer is a suit for specific performance.
d. The contract must be on a pre-printed form to make them binding.

5. When there is a "meeting of the minds" which of the following has been accomplished?

a. Offer and acceptance
b. Satisfaction of contract's major terms
c. Acknowledgement and delivery.
d. Both buyer an seller have discussed the terms.

6. A broker promises to give a $2,000 bonus to the first salesperson who sells five houses. What type of contract is this?

a. Unilateral
b. Executed
c. Bilateral
d. Nominal

7. In connection with a contract for the sale of real estate, a "rider" is

a. An addendum
b. A subrogation
c. A lien
d. A contract.

8. In the usual home purchase transaction, the offeror is most likely to be:

a. The vendee
b. The trustee
c. The mortgagee
d. the lienee

9. The name of the contract that allows the investor to purchase property or not is most likely to be:

a. An Assignment.
b. An option.
c. A deposit receipt.
d. An agreement of sale.

10. All of the following are true concerning an option sale contract except.

a. The optionee can enforce the sale.
b. The option money is usally forfeited if the purchase is not completed.
c. The optionee must sign the contract.
d. The optionor cannot require "specific performance".

11. Which of the following is exempt from obtaining a real estate license to sell real estate?

a. Salesperson from another state.
b. Guardian
c. Part time agent
d. Telephone solicitor for new homes.

12. Assume that a broker is going to rebate a portion of the commission in a real estate transaction. A direct rebate to which of the following would not be a cause for revocation of the license under Chapter 475.

a. The salesperson of another broker.
b. The personnel officer of the buyer's company for a referral.
c. The mortgage loan officer.
d. The principal in a transaction.

13. Assume that ABC Realty Inc. is issued a broker's license. Which of the following is the broker for the corporation?

a. Chairman of The Board of Directors.
b. President of the corporation.
c. Secretary/Treasurer of the Corporation.
d. The person named in the license.

14. A prospect gives a salesperson a promissory note to be used as a binder deposit. The salesperson should:

a. Deposit the note immediately in his escrow account
b. Check with the seller to see if he will accept a note.
c. Sign the back of the note and give it to the broker.
d. None of the above.

15. Regarding advertising of listings:

a. Only the broker may write advertising.
b. Any salesperson may advertise a listing under the supervision of the broker, and in the broker's registered name.
c. Only the listing salesperson may write the ad under the supervision of the broker, & in the broker's registered name.
d. Any saleperson may advertise the listing as along as he/she uses the word "Realtor" in the ad.

16. A broker offers a couple a reduced commission rate, never mentioning that their property borders on a ghetto. This would be considered:

a. Blockbusting
b. Steering
c. Channeling
d. None of the above

17. The vendee is best described as one who:

a. Sells or offers to sell
b. Buys offers to buy
c. Loans money
d. Borrows money

18. Which terms describes a court order to carry out the terms of a signed sales contract?

a. Specific performance
b. Lis pendens
c. Attachment
d. Subpoena

19. If you lost your home in a bankruptcy proceeding, you could recover your property by:

a. Court action
b. Repurchase
c. An automatic one year right to repurchase.
d. The right of redemption.

20. Chuck owns an automobile parts business and rents space in a commercial shopping center. Chuck has installed shelving & display racks for his inventory. The shelving is bolted to the floor and the racks are attached to the walls. The rack and shelving are:

a. Real Property
b. Trade fixtures
c. Property of the landlord
d. All of the above

21. Mrs. Adams, who is a widowed and legally blind, receives a VA pension because of the 25% service-connected disability, a result of her service as a Navy nurse in the Pacific in WWII. She is entitled to a homestead exemption of:

a. $26,000
b. $26,500
c. $30,500
d. $31,000

22. A seller tells a broker that he does not want his house shown to minority prospects since they do no have enough money. The broker's best response:

a. "Our office cannot help you."
b. "Your stipulation violates Fair Housing Act and we cannot sell your house this way."
c. "No brokerage office can follow such instructions. You will have to sell it yourself".
d. Say nothing to the seller and simply show minority propects other properties.

23. F.R.E.C members are appointed by:

a. governor, subject to approval by congress.
b. governor, with approval by the secretary of state.
c. governor, with comfirmation by the senate.
d. secretary of state.

24. A salesperson is guilty of concealment. Which applies?

a. A salesperson cannot be charged with concealment, only their employing broker.
b. His/her license must be suspended
c. His/her license may be revoked.
d. He/she has violated the Statue of Frauds.

25. For a first offense, a licensee could be suspended up to a maximum of:

a. Two years
b. Five years
c. Seven years
d. Ten years

26. A widow who owns a condominium unit holds a:

a. Proprietary lease
b. Proprietary estate
c. Freehold estate
d. Tenancy by entireties

27. In a deed that states 'A for his life", the grantor has what type of interest?

a. Life estate
b. Remainder
c. Reversionary
d. Right of re-entry

28. To find the value of an investment property:

a. Multiply cap rate by NOI
b. Divide cap rate by NOI
c. Divide NOI by cap rate
d. None of the above

29. The interest in real property with the least bundle of rigths
is a:

a. Tenancy at will
b. Fee simple absolute
c. Fee simple subject to condition subsequent
d. Tenancy at sufferance.

30. An "estate for years" in real estate can also be called:

a. A leasehold
b. A fee simple conditional
c. A fee
d. A joint tenancy

31. An example of personal property is:

a. House furnishings
b. Wall to wall carpeting
c. Built in dishwasher
d. Garbage disposal

32. Mr. Smith has been taking a short cut across Mr. Brown's property for 20 years. The tire tracks make it look like a natural road. This is a/an:

a. Encroachment
b. Easement by necessity
c. Easement by prescription
d. Implied easement

33. Owner A and citizen B meet on the street. A says "I would like to sell my house." B gets the description and price of the property and gets an offer from C, which A accepts. This is the second time that B has done this for A. Which applies?

a. A could not legally sell to C
b. There is no violation for Florida State 475.
c. B must be licensed as a brokerl.
d. B must be licensed as a salesperson

34. A salesman takes photo copies of his broker's records and books when he leaves the broker's employ. This constitutes:

a. Larceny
b. Conversion
c. Fraud
d. Breach of trust

35. According to Regulation Z, disclosure of finance charges must be include which of the following:

a. Loan fees
b. Service charge
c. Points
d. All of the above

ANSWERS