PRACTICE EXAM D

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

1. A salesperson in a residential property management office is asked by the owner if the prospective tenants belong to a minority. The salesperson tells the owner "I can't discuss minority status, but they are from Canada." whereupon the owner signs the rental agreement.

a.The salesperson's license may be subject to suspension or revocation
b.The owner violated the law, but the salesperson did not.
c. Individual owners of a rental unit are not covered by the fair housing laws.
d. This is an ethical, but not a legal violation.

2 An individual who is employed by a principal to handle a particular transaction for the principal is a:

a. Third party
b. Special agent
c. General agent
d. Universal agent

3. An agency relationship is terminated:
I.When it is renounced by the agent
II.When the purchase contract is signed
III.When the subject property is destroyed.
IV. At the will either party without notice.

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

4. A Florida property owner has moved to Texas and asks his daughter who lives in Florida to sell four residential lots he owns in Ocala. In fact, he tells her if she sells three of the lots, he will give her the fourth. The daughter agrees but is able to sell only two of the four lots, and takes no compensation from her father.

a. Florida law exempts from licensure family members who act for each other in property transactions.
b. No law was violated, because the daughter did not accept money from her father.
c. The daughter, who is unlicensed, does not come under the Rules of the FREC.
d. The daughter is in violation of F.S. 475.

5. Real property ads and yard signs of a licensed real estate broker must include the name of the:

a. Broker/salesperson who obtained the listing.
b. Broker only.
c. Seller or broker's principal.
d. Brokerage firm.

6. Carol C. Doctor, broker of Doctor Homes Inc., is ordering the sign for her new office. She is required to have all of the following on her sign except.

a. Licensed Real Estate Broker
b. Doctor Homes Inc.
c. 1000 No. Gulf to Bay Blvd.
d. Carol C. Doctor

7. Under a level payment plan mortgage, the:

a. Principal portion increases at a uniform rate.
b. Principal balance decreases at a uniform rate.
c. Interest portion decreases at a uniform rate.
d. Principal portion increases, but not a uniform rate.

8. For a deed to be valid, which of the following is required?

a. Signature of the grantee
b. Seal
c. Recording
d. Witnesses

9. Which of the following is real estate?
I. Refined oil
II.Cut trees
III.Easements
IV.Cemetery lots

a. I, III, and IV only.
b. I and III only.
c. III only.
d. None of the above.

10. The single agent listing broker owes a direct fiduciary responsibility to whom?

a.The listing salesperson.
b.The buyer.
c.The buyer's broker.
d.The seller.

11.The best description of a special agent would be a person who:

a. Is an attorney.
b. Is a broker
c. Has limited authority.
d. Has contractual authority

12. All of the following are fiduciaries except a:

a. Principal
b. Trustee.
c. Guardian.
d. Receiver

13.All records, books, and accounts must be kept:

a.In each branch office according to where the transaction originated.
b. In the broker's principal office for five years.
c. In the office where the salesman who obtained the listing works.
d. In the broker's principal office for two years after the transaction are closed.

14. The exterior sign on Broker Dan Dealer's branch office:
I.Must have letters one inch high.
II.Must state "Branch Office of Dan Dealer, Broker"
III. Is not necessary as branch offices do not require signs.

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

15. Only a husband and wife may hold title to real property as:

a. Joint tenants
b. Tenants by the entireties
c. Tenants in common
d. Tenants by the severalty

16.Which of the following events would create a tenancy in common?

a. Transfer of one joint tenant's interest to a third party.
b. Death of one of two joint tenants.
c. Transfer of one joint tenant's interest to the other joint tenant.
d. Death of one of four joint tenants.

17. If title to a farm is held in tenancy by the entireties, which of the following is true?

a. A specifically enforceable contract to sell the farm must be signed by husband and wife.
b. A creditor of one spouse can assert a valid lien on the farm.
c. Either husband or wife can partition the property
d. The shares may be unequal.

18. If inaccurate information is provided to a rental prospect on May 1st, what is the last day that the prospect can demand a refund of his/her rental list fee?

a. May 31st
b. June 1st
c. June 30th
d. July 1st

19. A broker's actions create an immediate danger to the public welfare. This is grounds for a:

a.Suspension
b.Revocation
c.Summary suspension
d.Involuntary inactive status

20. A license expires:

a. At the end of the one year renewal period.
b. Every two years
c. On the effective date
d. On the date shown thereon

21. Police power is the right of the government to
I. Regulate real property use in the public interest
II. Acquire private realty for public use
III. Levy taxes on real property
IV. Enforce zoning regulations

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

22. A voidable contract is one that is:

a. Legally insufficient and thus not recognized by law.
b. Not binding on either party.
c. Signed on a holiday.
d. Binding on one of the parties.

23. The interest that a purchaser acquires when the offer to purchase has been accepted is:

a. A freehold estate
b. An estate in fee simple
c. Equitable title
d. Legal title

24. Which is the most essential element for an enforceable real estate contract?

a.Being written.
b.Witnessed.
c.Date of contract.
d.Time of closing

25. Thomas Reed, the only active broker in a real estate brokerage partnership, forgot to account properly for his escrowed funds. His license was suspended. The registration of the only other partner was:

a. Revoked
b. Suspended
c. Cancelled
d. Unaffected

26. Florida statues prohibit FREC members from serving on the
commission for more than

a.One two year term
b.One four year term
c.Two consecutive two year terms
d.Two consecutive four year terms

27. A salesperson employed by the listing Broker represents a buyer who makes an offer, which exactly matches the terms of the listing agreement. Before the offer is presented the broker receives two more offers, both from the other brokers, one for less than the listing price (but all cash) and one for more than the listing price but asking the seller to hold a mortgage. The best course of action for the broker is:

a. Present the offer with the highest sales price.
b. Present all the offers at the same time.
c. Present the "all cash" offer first.
d. Present the offers in chronological order.

28. Under the T.I.L. Laws the annual percentage rate must be revealed to which of the following consumers?

a. Applicant for a residential first mortgage.
b. Applicant for a commercial first mortgage.
c. Applicant for an industrial first mortgage.
d. All of the above.

29. Under the advertising regulations of Regulaton Z, all are true except:

a.Interest rates cannot be mentioned alone, but rather the "annual percentage rate" must be stated.
b.General terms such as "liberal terms available","small down payments accepted"or "FHA financing" may be used.
c. Violations are enforced by the FTC.
d. Real estate brokers are regulated as "arrangers of credit".

30. A minority group is moving into an area immediately adjacent to an old subdivision. X Realty offers in good faith to list homes in the subdivision at a lower rate if the owners list within 45 days.There is no mention of race.Which of the following is true?

a.The brokers license can be revoked.
b.This is blockbusting.
c.Such practice is not illegal.
d.Brokers cannot lower their standards of commission.

ANSWERS