Real Estate Exam Practice Questions with Verified Answers
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Course
Licensed Realtor
Institution
Licensed Realtor
The formula to calculate the overall capitalization rate is - Answer-NOI ÷ value (or price).
A real estate license may be revoked without prejudice for which action?
A) Failure to account or deliver escrow funds
B) Culpable negligence
C) Conversion
D) Issuance of a license by mistake of t...
Real Estate Exam Practice Questions
with Verified Answers
The formula to calculate the overall capitalization rate is - Answer-NOI ÷ value (or
price).
A real estate license may be revoked without prejudice for which action?
A) Failure to account or deliver escrow funds
B) Culpable negligence
C) Conversion
D) Issuance of a license by mistake of the Commission - Answer-Issuance of a license
by mistake of the Commission
Which variable does NOT influence demand?
A) Income of consumers
B) Consumer tastes and preferences
C) Availability of construction loans
D) Availability of mortgage credit - Answer-Availability of construction loans
In Florida, real property is assessed on January 1 of each year, and property taxes
become a lien on the property on ?? - Answer-January 1, the same year.
If a seller refuses to pay a broker her sales commission after the residential property is
sold, the broker may
A) keep the binder deposit as just compensation.
B) file a suit in the courts for her commission.
C) refuse to permit the closing to occur.
D) file a vendor's lien on the owner's property. - Answer-file a suit in the courts for her
commission.
Which term refers to a situation where, during the early years of a loan, the principal
balance increases? - Answer-Negative amortization
A sales associate received a $5,000 earnest money deposit from a buyer. She
immediately delivered the deposit to her broker. The broker deposited the check on the
third business day into his general operating account.
A) This is an example of commingling of escrow funds.
B) This is the proper procedure, provided the broker uses a title company that has trust
powers.
C) The broker is guilty of dishonest dealing by trick, scheme, or devise.
, D) This is the proper procedure for handling earnest money deposits. - Answer-This is
an example of commingling of escrow funds.
A residential zone requires at least 7,500 square feet per lot. The developer is reserving
25 percent of the land for streets, sidewalks, and a community center. The tract of land
for the development consists of 175 acres. How many residential lots are available for
development? - Answer-762
The original law requiring that the annual percentage rate be disclosed to consumers
was which Act? - Answer-Truth in Lending Act.
A developer purchased three oceanfront lots, each measuring 75 by 110 feet, for $20
per square foot. The developer later sold the lots for $200,000 each. What was the
developer's percentage of profit on the sale of the three lots? (Round to nearest
percentage.) - Answer-21%
Which statement is FALSE regarding a corporation for profit that is doing business as a
real estate broker?
A) There must be at least one officer who is an active real estate broker.
B) The broker must file the articles of incorporation with the Florida Department of State.
C) The corporation must be registered with the FREC.
D) All stockholders must be registered with the FREC as inactive brokers. - Answer-All
stockholders must be registered with the FREC as inactive brokers.
Which federal law made bait-and-switch advertising a federal offense? - Answer-Truth
in Lending Act (TILA)
A buyer or seller must be given a brokerage relationship disclosure for which
transaction?
A) Owner who lists a 10-unit town house property
B) Purchaser of 15 acres of land zoned for 15 residential homes
C) Purchaser of an auctioned residential property
D) Purchaser of a single-family home working with a single agent buyer's broker -
Answer-Purchaser of a single-family home working with a single agent buyer's broker
Which individual must hold an active real estate license?
A) A person who sells time-share periods for customers
B) An executor of a will who is selling the real property of a deceased individual
C) A person employed by Meadow Hills Cemetery to sell cemetery lots
D) A salaried employee of an oil company who buys and sells land on behalf of the
company - Answer-A person who sells time-share periods for customers
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