PRACTICE EXAM E

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

1. The Federal Fair Housing Act provides that a "prima facie" case against the broker for discrimination will be established in a complaint against the broker, if he or she fails to do which
of the following?

a. Display H.U.D. Equal Opportunity poster.
b. Join an affirmative marketing program.
c. Join H.U.D anti-discrimination task force.
d. Attend mandatory classes on fair housing.

2. At what stage in the typical real estate transaction is the sales contract signed by the buyer and the seller?

a. Prior to the issuance of the buyer's title insurance.
b. Immediately after the lender commits to the loan.
c. At the same time as recordation.
d. Before the listing contract.

3.The failure to meet an obligation when due as specified in a real estate contract, is best described as:

a. Damage
b. Defect
c. Default
d. Distraint

4. The provision in a real estate contract, providing for loss of the buyer's deposit money in the event of buyer's default, is known as:

a. Liquidated damages.
b. Nominal damages.
c. Punitive damages.
d. Release damages.

5. Tenancy in common is most directly related to which of the following?

a. Survivorship.
b. Ownership.
c. Probate.
d. Partition.

6. The four units of time, title, interest and possession normally would be found in:

a. Tenancy in common
b. Partnership
c. Mortgage or trust deed
d. Joint tenancy

7. The tenancy in common must have the unity of:

a. Time
b. Title
c. Interest
d. Possession

8. 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.

9. A man who is selling his house asks every prospective buyer about the buyer's religious affiliations, and refuses to show the house to non-Christians. This seller:
I. has violated the Civil Rights Act of 1866
II. has violated the 1968 Fair Housing Act.
III. may be punished by the FREC
IV. has violated no law.

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

10. Two licensed Florida brokers and a licensed Florida salesperson join together to buy, renovate, and resell an apartment building. Under Chapter 475 F.S.:

a.This is a partnership and must be registered with the FREC.
b. There is no need to register with FREC
c. This is a limited partnership and must be in registered with FREC.
d. Brokers may not include a salesperson in the transaction, and have violated the law.

11. 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

12. Mary and George listed their vacation home with Broker C and indicated an urgency to sell. An out of town buyer submits a written offer for the property at full listing price and no contingencies, but requests a reply within 24 hours. Broker C can't find Mary or George, and has left them urgent messages to call. The buyer calls for an answer after 22 hours have passed. The broker.

a. should tentatively accept the offer
b. may take no action
c. has a fiduciary duty to accept.
d. must refuse the offer.

13. 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.

14. Two identical lots directly across the street from each other in the development are priced at $45,000 and $65,000 respectively. We might conclude this would be an example of:

a. Assemblage
b. Plottage
c. Situs
d. Regression

15. The space between the base line and the next East and West parallel line, is called a:

a. tier
b. township
c. range
d. both A and B

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

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

17.The lender places a notice in public records that foreclosure
proceedings have begun on the recorded property. This is an example of:

a. An act of interpleader.
b. A certiori proceedings
c. Lis pendens
d. Actual notice

18. Small investors, wary of stock market performance, are placing cash in savings until the market stabilizes. This is an example of:

a. Progression
b. Regression
c. Intermediation
d. Disintermediation

19. 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

20. Under what right or rights may the government take realty if an individual dies intestate?
I. Police power
II. Escheat
III. Taxation
IV. Eminent domain

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

21. Depreciation is contributed to by which of the following:
1.External obsolescence
2.Physical deterioration
3.Functional obsolescence

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

22. A licensee can lose his or her license for which of the following?

a. Using money received as commission to pay for the office rent.
b. Paying a commission to an unlicensed person.
c. Splitting fees with a cooperating broker.
d. Negotiating a sale.[/B]

23. Which of the following is exempt from registering the trade name (if one is used) with the DBPR?

a. Brokerage corporation
b. Brokerage partnership
c. Real estate broker
d. All of the above

24. Which of the following is true concerning the difference between owning a condo and owning a co-operative?

a. A buyer can be deeded fee simple interest in a condominium unit.
b. The owner of a co-op apart.owns undivided tenancy in common interest in his or her unit.
c. Only the condo owner is entitled to exclusive possession.
d. Only the co-owner is entitled to property tax deductions.

25. Binder deposit would be shown on the closing statement as a debit to the seller in what circumstance?

a. Never
b. When the deposit is given to the seller prior to closing.
c. When the deposit is given directly to the seller.
d.When the deposit is given to the title company upon contract signing

26. During the course of business a broker was asked, by his principal, what his opinion was regarding the title on the real property he was negotiating for . Legally, the broker could:

a. Give his opinion as to the surety and marketability of the title as long as the statement was based on a recent opinion
from a qualified attorney regarding title to that specific property.
b. Offer his opinion with the caveat that he is not an expert in such matters.
c. Call a title company for an opinion
d. Tell the potential purchaser to seek a Legal opinion or purchase title insurance.

27. In real estate terminology, the vendee is the:

a. Seller of the property
b. Buyer of the property
c. Broker
d. Lawyer

28. Regarding "Lis Pendes" which of the following is true.
I. It is related to a foreclosure on the property
II.It serves constructive notice to interested parties.
III It is prepared by the mortgagor.

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

29. Broker has an exclusive right of sale listing from a seller and does not have a Power of Attorney. What type of agent is the broker for this transaction?

a. General Agent
b. Transaction Agent
c. Specific Agent
d. Special Agent

30. According to the 1968 Fair Housing Act, a broker must do which of the following:

a. Show all of her listings to all prospective inquiring buyers.
b. Assist a group of buyers and sellers in their real estate needs regardless of their race, religion or national origin
c. Inform their principal of a potential buyer who is Asian.
d. Show houses in all neighborhoods.

ANSWERS