PRACTICE EXAM C

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

1. Kim and Kelly bought a building and took title as legal joint tenants. Kelly died testate. Kim now owns the building:

a. As a tenant by the entirety.
b. In severalty
c. In absolute ownership under the law of descent.
d. Subject to the terms of Kelly's will.

2. A listing to sell property and obtain a specified amount for the owner/principal is called a/an:

a.Open listing.
b.Exclusive right-to-sell listing.
c.Net listing.
d.Implied listing.

3. The term 'procuring cause' is most significant in relation to a/an:

a.Open listing
b.Exclusive-agency
c.Exclusive right-to-sell listing
d.Net listing.

4. The difference between police power & eminent domain can best be seen by whether:

a.The action was by a governmental agency.
b. Any compensation was paid to an affected owner.
c. The owner's use was affected.
d. The improvements are to be destroyed.

5.In a multiple listing, a salesperson who negotiates a sale is directly responsible to:

a.The listing broker.
b.His or her employing broker.
c.The cooperating salesperson.
d.The seller.

6. All of the following terminate an agency created by a listing except.

a.Insolvency of the listing broker.
b.Fire destroying the listed property.
c.Insanity of the listing salesperson.
d.Death of the owner.

7. An agent for the seller is considered to have earned a commission:

a.Only if a sale is completed & title is transferred.
b. If a purchaser is produced who is ready willing and able to buy on terms that are acceptable to the purchaser.
c. When an agent presents a written offer for full price, regardless of terms.
d. If a binding contract to purchase is signed even if later the seller defaults.

8.One who has the right to sign the name of the principal to a contract for sale is:

a.The real estate broker.
b.A special agent.
c.An attorney in fact.
d.An attorney at law.

9.If a salesperson uses undue influence in a real estate transaction all of the following would be true except:

a. His or her license could be subject to suspension.
b. His or her license could be subject to revocation.
c. The broker or salesperson would automatically lose their license.
d. The contract could be voidable.

10.What is the appropriate remedy for a broker against a seller who wrongfully refuses to pay an earned commission?

a.File an attachment
b.File a lawsuit.
c.File a lien against the property.
d.File a lis pendens.

11. The IRV formula can be written as:

a.I=V x R
b.V=I divided by R
c.R=I divided by V
d.All of the above

12. A house has an infestation of termites. The salesperson that listed the property is aware that the house has termites. A buyer inquires as to termites and the salesperson tells the buyer there are none. Who may the buyer hold responsible?

a.Seller
b.Broker
c.Salesperson
d.Broker and salesperson

13. A prospect asks a salesperson if a house is in a flood plane. The salesperson is unsure but answers "no" because it is obvious that the prospect is interested in purchasing the property. Later the prospect finds that the property is in a flood plane. What type of violation has occurred?

a.Concealment
b.Culpable negligence
c.Conspiracy
d.Fraud

14.Buyer Kim withdraws an offer to purchase a property before the seller has accepted and asks the broker to return the escrow money. The broker should:

a.Turn the money over to the seller.
b.Return the money to the buyer.
c.Retain the money as the commission
d.Notify FREC in writing within 15 business days.

15. All of the following active licenses may become inactive except:

a. Broker
b. Broker salesperson
c. Salesperson
d. None of the above

16. When a prospective buyer is in the locality & is able to inspect the property, the prospect ordinarily has a right to rely on the broker's representation as to:

a.Future value of the property.
b.Nothing the broker says.
c.Everything the broker says.
d.Concealed details of construction of the building.

17. An assignment of the property rights in a real estate contract constitutes:

a.A lease.
b.An encumbrance.
c.A lien.
d.A conveyance

18. A clause in a mortgage or a sales contract that requires punctual performance is described as:

a.Specific performance
b.Time is of the essence
c.Escalation.
d.Subrogation.

19. In creating a limited partnership:
I.An instrument must be filed with the Florida Secretary of State.
II. There must be one or more general partners.
III. The limited partners must make an investment of cash or property only.
IV. The limited parners must be active in dealing with the public.

a. I and IV
b. I,II and III
c. II,III and IV
d. I,II, III and IV

20. Broker Dan creates a catchy fictitious trade name for his firm. The trade name:

a.Has to be entered in the Commission records.
b. Must be registered with the Florida Secretary of State.
c. Can be one of several trade names that Dan uses for his firm.
d. Is illegal because according to Florida Statue 475.42, a broker must use his own name in the name of his firm.

21. The license of the active broker in a partnership is suspended. The licensee of the salespersons are:

a.Suspended.
b.Denied.
c.Cancelled.
d.Mediated.

22. Each active real estate broker must display a sign:
I.On or about the entrance to the office the principal office.
II. On or about the entrance to all branch offices.
III. With letters at least two inches height.
IV. That includes the broker's trade name, if any.

a. I only
b. I,II, IV only
c. II and IV only
d. I, II, III and IV

23. The Federal Fair Housing Act exempts from its requirements which of the following?

a.Discrimination in the rental of rooms or units in a 4 family dwelling where the owner resides in one of the units and is handling the transaction.
b. Denying a person access to multiple listing service on account of race.
c. Steering.
d. Blockbusting

24. The Federal Fair Housing Act prohibits discrimination based on which of the following:

a.Race, national origin or color.
b.Religion, sex or age.
c.Religion, sex or military status.
d.Race, sex or marital status.

25. Which of the following is a protected person under the 1968 Fair Housing Law as amended.

a.A person currently addicted to cocaine.
b. An alcoholic
c. A person 50 years old seeking to lease a unit in a qualified retirement home.
d. A person with poor credit.

26. A contract with a promise of performance on only one side
is called a/an:

a.Implied contract
b.Bilateral contract
c.Executed contract
d.Unilateral contract

27. Expenses on a closing statement are:

a.Prorated between parties.
b.Always double entries.
c.Always debits.
d.Both a and b.

28. Which of the following may 'date back' and have a priority earlier than the date of recording?

a.Vendor's lien
b.Mechanic lien
c.Mortgage lien
d.Real estate tax lien

29. How is the payment of closing costs determined?

a.By agreement
b.By statute
c.By custom
d.By the seller's attorney

30. The broker's obligation to customers include the duty:

a.Of confidentiality.
b.Of undivided loyalty.
c.To use skill, care and diligence.
d.All of the above.

ANSWERS