FL Real Estate Exam - Magnolia
School all terms
What is leverage? - Answer-Use of borrowed funds to purchase assets or to finance an investment
How is the binder deposit notated on the closing disclosure? - Answer-Credit buyer - BDCB
What is the status of a sales associates license but they do not complete the required post licensing
education prior to their first renewal cycle - Answer-Null and void
How many sections are in a Township? - Answer-36 (square miles)
Which mortgage clause allows the mortgagee the right to demand the outstanding loan balance plus
secured interest in the event that the borrower sells or transfers any interest in the property without
the lenders prior written consent - Answer-Due on sale clause
What requirement is not apply regarding dwellings built prior to 1978 - Answer-Buyers must have the
property inspected for lead-based paint
Two close friends on a daycare center as joint tenants with the right of Survivorship. One owner passed
away, who owns the daycare center? - Answer-Surviving owner becomes soul owner of the daycare
center by operation of law
,The subject property is a three-bedroom, two-bath home. A comparable property is a three-bedroom,
two and one-half-bath home. An appraiser has determined that the extra half bath is worth about
$2,200. What adjustment should the appraiser make? - Answer-Subtract $2200 from the comparable
Which of the following is incorrect concerning FHA and VA mortgages? - Answer-VA is the government
insured loan and could be accompanied by an origination fee
FHA (Federal Housing Administration) mortgage - Answer-Government insured loan
Origination fee
VA (Veterans Affairs) mortgage - Answer-Government guaranteed loan
Funding fee
Origination fee
What lien takes priority first and second? - Answer-Property Tax, Special Assessment
Intangible tax is noted on the closing disclosure as - Answer-Debit to the buyer
What is a blind ad? - Answer-Doesn't list the realty company or brokerage
Which of the following is a penalty for first time minor violation that is not accompanied by a fine? -
Answer-Notice of noncompliance
Nonlicensed assistants may perform which activity? - Answer-Handout objective written information on
a rental property
Two brothers have decided to purchase investment property in or not sure how they want to take title.
The brothers wives have looked into the options and have decided that in the event that one of the
,brothers die, his wife would like to receive title. With his information how would they take title? -
Answer-Tenancy in Common
A father intended to leave his house to a son and executed a general warranty deed to the property and
gave it to her son. Shortly after, the father died, before the deed could be recorded. Which applies? -
Answer-This one has title to the property because title to the property was conveyed when the father
delivered the deed to his son and his son voluntarily excepted it
Which of the following clauses or covenants in a deed states that the grantor owns the property and has
the right to convey it? - Answer-Covenant of seisin (own it and have right to sell it)
Amy, Bob, Frank, and Francine all co-own of Beach House on St. Petersburg Beach. Frank died, and his
co-ownership of the property passed, according to his will, to his son. How do these parties own the
property? - Answer-Tenants in common
Which statement is true about the monthly payments on a 30-year fully amortized loan? - Answer-
Initially, interest is the largest portion of the payment
beginning of loan - Answer-most payments go to interest
What are the rights flowing through your property called? - Answer-Riparian rights
If a sales associate picks up an escrow check on Tuesday, when does the broker have to deposit it into
the escrow account? - Answer-Immediately, as defined, by Friday / 3 business days
If the title company is holding the escrow check, what must be on the purchase and sales contract
regarding the title company? - Answer-The name, address, and phone number of the title company
A broker sold an up-to-date and accurate rental list to a customer on June 10th for $475.00 On June
14th the customer decided not to obtain a rental and then orally demanded, and should receive, how
, much of a refund? - Answer-$356.25 - only within 30 days - mistake 100% get back - didn't like the list
then 75%
Which statement is false concerning the primary mortgage market in the secondary mortgage market? -
Answer-The primary objective of the second mortgage market is to create new loans for borrowers to
increase the money supply for lenders
Primary mortgage market - Answer-Always between the buyer(borrower) and lender
Consists of lenders that originate new mortgage loans for borrowers.
Secondary Mortgage - Answer-An existing loan is bought
What part of an adjustable rate mortgage adjusts? - Answer-Index
What are the two components of an adjustable rate mortgage? - Answer-Index and margin
Which of the following methods of surveying property is used in subdivision where plat maps have been
recorded? - Answer-Law and block aka plat method
Plat maps or subdivision survey method is? - Answer-Lot and block
What type of notice is also called legal notice and is achieved by recording documents in public records?
- Answer-Constructive notice
In which theory of lending does a borrower retain ownership (title)? - Answer-Lien theory
What title theory state is Florida? - Answer-Lien theory state (long and LEAN)
School all terms
What is leverage? - Answer-Use of borrowed funds to purchase assets or to finance an investment
How is the binder deposit notated on the closing disclosure? - Answer-Credit buyer - BDCB
What is the status of a sales associates license but they do not complete the required post licensing
education prior to their first renewal cycle - Answer-Null and void
How many sections are in a Township? - Answer-36 (square miles)
Which mortgage clause allows the mortgagee the right to demand the outstanding loan balance plus
secured interest in the event that the borrower sells or transfers any interest in the property without
the lenders prior written consent - Answer-Due on sale clause
What requirement is not apply regarding dwellings built prior to 1978 - Answer-Buyers must have the
property inspected for lead-based paint
Two close friends on a daycare center as joint tenants with the right of Survivorship. One owner passed
away, who owns the daycare center? - Answer-Surviving owner becomes soul owner of the daycare
center by operation of law
,The subject property is a three-bedroom, two-bath home. A comparable property is a three-bedroom,
two and one-half-bath home. An appraiser has determined that the extra half bath is worth about
$2,200. What adjustment should the appraiser make? - Answer-Subtract $2200 from the comparable
Which of the following is incorrect concerning FHA and VA mortgages? - Answer-VA is the government
insured loan and could be accompanied by an origination fee
FHA (Federal Housing Administration) mortgage - Answer-Government insured loan
Origination fee
VA (Veterans Affairs) mortgage - Answer-Government guaranteed loan
Funding fee
Origination fee
What lien takes priority first and second? - Answer-Property Tax, Special Assessment
Intangible tax is noted on the closing disclosure as - Answer-Debit to the buyer
What is a blind ad? - Answer-Doesn't list the realty company or brokerage
Which of the following is a penalty for first time minor violation that is not accompanied by a fine? -
Answer-Notice of noncompliance
Nonlicensed assistants may perform which activity? - Answer-Handout objective written information on
a rental property
Two brothers have decided to purchase investment property in or not sure how they want to take title.
The brothers wives have looked into the options and have decided that in the event that one of the
,brothers die, his wife would like to receive title. With his information how would they take title? -
Answer-Tenancy in Common
A father intended to leave his house to a son and executed a general warranty deed to the property and
gave it to her son. Shortly after, the father died, before the deed could be recorded. Which applies? -
Answer-This one has title to the property because title to the property was conveyed when the father
delivered the deed to his son and his son voluntarily excepted it
Which of the following clauses or covenants in a deed states that the grantor owns the property and has
the right to convey it? - Answer-Covenant of seisin (own it and have right to sell it)
Amy, Bob, Frank, and Francine all co-own of Beach House on St. Petersburg Beach. Frank died, and his
co-ownership of the property passed, according to his will, to his son. How do these parties own the
property? - Answer-Tenants in common
Which statement is true about the monthly payments on a 30-year fully amortized loan? - Answer-
Initially, interest is the largest portion of the payment
beginning of loan - Answer-most payments go to interest
What are the rights flowing through your property called? - Answer-Riparian rights
If a sales associate picks up an escrow check on Tuesday, when does the broker have to deposit it into
the escrow account? - Answer-Immediately, as defined, by Friday / 3 business days
If the title company is holding the escrow check, what must be on the purchase and sales contract
regarding the title company? - Answer-The name, address, and phone number of the title company
A broker sold an up-to-date and accurate rental list to a customer on June 10th for $475.00 On June
14th the customer decided not to obtain a rental and then orally demanded, and should receive, how
, much of a refund? - Answer-$356.25 - only within 30 days - mistake 100% get back - didn't like the list
then 75%
Which statement is false concerning the primary mortgage market in the secondary mortgage market? -
Answer-The primary objective of the second mortgage market is to create new loans for borrowers to
increase the money supply for lenders
Primary mortgage market - Answer-Always between the buyer(borrower) and lender
Consists of lenders that originate new mortgage loans for borrowers.
Secondary Mortgage - Answer-An existing loan is bought
What part of an adjustable rate mortgage adjusts? - Answer-Index
What are the two components of an adjustable rate mortgage? - Answer-Index and margin
Which of the following methods of surveying property is used in subdivision where plat maps have been
recorded? - Answer-Law and block aka plat method
Plat maps or subdivision survey method is? - Answer-Lot and block
What type of notice is also called legal notice and is achieved by recording documents in public records?
- Answer-Constructive notice
In which theory of lending does a borrower retain ownership (title)? - Answer-Lien theory
What title theory state is Florida? - Answer-Lien theory state (long and LEAN)
