FREC Course I Practice Exam | 100% Correct
Answers | Verified | Latest 2024 Version
a licensed real estate broker has been hired by a lender to appraise a home for a buyer. who has applied
for an FHA loan. Which statement is TRUE regarding this situation?
A. the broker may not charge for this assignment
B. the broker's license entitles him to appraise this property
C. the broker is required to be a state-certified appraiser to perform this appraisal assignment
D. the broker may not accept this appraisal assignment because to do so is a conflict of interest - ✔✔C.
the broker is required to be a state-certified appraiser to perform this appraisal assignment
(unit 16)
Which disclosure must be given to the buyer of both new and resale residential condominium units? -
✔✔declaration
- a condominium is created by recording the declaration of condominium and is part of the
condominium documents that must be given to all condominium purchasers
the financial term applied to the use of borrowed funds to finance the purchase of an office building is -
✔✔leverage
(unit 17)
a single agent broker received an offer on a listed property at the seller's price and terms. before
informing the seller, the broker received a higher offer. the broker submitted only the first offer, and the
seller, his principal, accepted it. the broker - ✔✔has violated his fiduciary duty to his principal
(unit 4)
a real estate brokerage company is a transaction broker for a buyer. the buyer wants to purchase a new
home so the sales associate takes him to three model centers listed by three competing real estate
companies. the sales associate must give a written no brokerage relationship notice to - ✔✔no one
(Unit 4)
, the seller instructs the listing broker not to show his home to members of a protected class. the broker
informs the seller that this is a violation of fair housing laws, but the seller is insistent. which choice is
the broker's best course of action under these circumstances - ✔✔withdraw from the listing agreement
a tenant signed a 10-year lease requiring a monthly base rent of $1,900, plus 2% of all monthly gross
sales volume over $95,000. the tenant also must pay all property taxes, insurance, and other costs
normally considered property owner's costs. this is a - ✔✔net lease
The Florida Real Estate Commission is empowered by law to - ✔✔fine or otherwise discipline licensees
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? - ✔✔21% (14)
in Florida, real property is assessed on January 1 of each year, and property taxes become a lien on the
property on - ✔✔January 1, the same year
Which government entity must be informed when the FREC takes disciplinary action against a real estate
licensee? - ✔✔Division of Florida Condominiums, Timeshares, and Mobile Homes (3)
in a deed, the warranty of quiet enjoyment pertains to - ✔✔peaceful possession undisturbed by others'
claim of title (9)
a seller listed a home for $200,000 and agreed to pay a commission rate of 5%. the MLS stated that the
commission would be shared between the listing office and the selling office on a 50-50 basis. the home
was sold four weeks later for 90% of the list price. the listing broker paid the listing sales associate 50%
of the listing office's commission. the selling broker paid the selling associate 60% of the selling office's
commission. how much commission did the selling sales associate receive? - ✔✔$2,700. (14)
which action is NOT a requirement under TILA-RESPA?
a. give the mortgage applicant a closing disclosure at least three business days before closing
b. give mortgage applicant a list of competing lenders so that the consumer can comparison shop for the
best rate
c. give a copy of the special information booklet to the mortgage applicant within three business days
Answers | Verified | Latest 2024 Version
a licensed real estate broker has been hired by a lender to appraise a home for a buyer. who has applied
for an FHA loan. Which statement is TRUE regarding this situation?
A. the broker may not charge for this assignment
B. the broker's license entitles him to appraise this property
C. the broker is required to be a state-certified appraiser to perform this appraisal assignment
D. the broker may not accept this appraisal assignment because to do so is a conflict of interest - ✔✔C.
the broker is required to be a state-certified appraiser to perform this appraisal assignment
(unit 16)
Which disclosure must be given to the buyer of both new and resale residential condominium units? -
✔✔declaration
- a condominium is created by recording the declaration of condominium and is part of the
condominium documents that must be given to all condominium purchasers
the financial term applied to the use of borrowed funds to finance the purchase of an office building is -
✔✔leverage
(unit 17)
a single agent broker received an offer on a listed property at the seller's price and terms. before
informing the seller, the broker received a higher offer. the broker submitted only the first offer, and the
seller, his principal, accepted it. the broker - ✔✔has violated his fiduciary duty to his principal
(unit 4)
a real estate brokerage company is a transaction broker for a buyer. the buyer wants to purchase a new
home so the sales associate takes him to three model centers listed by three competing real estate
companies. the sales associate must give a written no brokerage relationship notice to - ✔✔no one
(Unit 4)
, the seller instructs the listing broker not to show his home to members of a protected class. the broker
informs the seller that this is a violation of fair housing laws, but the seller is insistent. which choice is
the broker's best course of action under these circumstances - ✔✔withdraw from the listing agreement
a tenant signed a 10-year lease requiring a monthly base rent of $1,900, plus 2% of all monthly gross
sales volume over $95,000. the tenant also must pay all property taxes, insurance, and other costs
normally considered property owner's costs. this is a - ✔✔net lease
The Florida Real Estate Commission is empowered by law to - ✔✔fine or otherwise discipline licensees
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? - ✔✔21% (14)
in Florida, real property is assessed on January 1 of each year, and property taxes become a lien on the
property on - ✔✔January 1, the same year
Which government entity must be informed when the FREC takes disciplinary action against a real estate
licensee? - ✔✔Division of Florida Condominiums, Timeshares, and Mobile Homes (3)
in a deed, the warranty of quiet enjoyment pertains to - ✔✔peaceful possession undisturbed by others'
claim of title (9)
a seller listed a home for $200,000 and agreed to pay a commission rate of 5%. the MLS stated that the
commission would be shared between the listing office and the selling office on a 50-50 basis. the home
was sold four weeks later for 90% of the list price. the listing broker paid the listing sales associate 50%
of the listing office's commission. the selling broker paid the selling associate 60% of the selling office's
commission. how much commission did the selling sales associate receive? - ✔✔$2,700. (14)
which action is NOT a requirement under TILA-RESPA?
a. give the mortgage applicant a closing disclosure at least three business days before closing
b. give mortgage applicant a list of competing lenders so that the consumer can comparison shop for the
best rate
c. give a copy of the special information booklet to the mortgage applicant within three business days
