REAL ESTATE FUNDAMENTALS NEWEST 2024-2025 ACTUAL EXAM
1. A city acquires a 10' strip of a property owner's land for a public walking trail. The
owner's home is not affected and she is able to use the land. Is the owner eligible for
compensation?: Yes, because the city is using its power of eminent domain for public good
2. A broker price opinion is often requested: By a bank
3. Repairing the roof, recoating the driveways, replacing lighting, and cleaning out the
gutters on an apartment building are considered by the property manager and the owner
to be part of the job. This is considered:: Preventative maintenance and is needed to
maintain the value of the property
4. The city is replacing all the streets, curbs, and gutters in Middleville. The homeowners on
both sides of the street are charged special assessment taxes to cover the cost. Mr. Kyle
has a 120-front-foot lot. The cost of the construction is $90 per front-foot for each
affected homeowner, and the city will pay 25% of the cost. How much will the cost be to
Mr. Kyle in special assessment taxation?: $4,050
5. Broker Bill takes his Broker course and passes it. He applies and receives his license on
time. He pays all the appropriate fees and he begins his work. ( He does not have a 4 year
degree in real estate ). He is not sure which course or courses to take to renew his license
the 1st time. What must Broker Bill do?: Broker Bill must complete two 30 hour courses
equaling 60 hours of post-license course in his first renewal period
6. An investment group bought a building with 12 apartments for $872,473. The apartments
rent monthly: 3 @ $600, 3 @ $750, 3 @ $800, and 3 penthouses @ $1000. The group has
a 7% vacancy rate and expenses of $9,490. What will be the annual rate of return on this
building?: 11%
7. The system that uses measurements, monuments, compass readings, and a POB is
called:: Metes and bounds
8. Ken, a transaction broker, worked with both the buyer and seller in the sale of a home.
The sale went well and it closed on time. Later, the seller discovered that Ken had told
the buyer that the seller was willing to take a lower price than was specified on the listing
agreement in order to "speed up the sale" and Ken told the buyer a specific price to offer.
Which describes the situation?: Ken violated the limited confidentiality required for his job
9. Steve is interested in learning how to become a single agent business broker. He needs to
know the steps in selling a business. What are the steps in a business sale?: Note all the
assets and liabilities that belong to the business, list the business for sale, determine the
value of the business, using all or some of the appraisal methods
10. Steve is interested in learning how to become a single agent business broker. He
needs to know the steps in selling a business. What is not a step in a business sale?:
Represent the buyer and obtain a purchase agreement
11. A legal description of a piece of real property should be complete enough so that a
reasonably competent:: Surveyor could find it
,12. The Florida Real Estate Commission (FREC) was first organized in 1926. It is composed
of 7 members who are appointed by the Governor and approved by the Senate. Its
primary purpose for being in existence is to:: Protect the public
13. A broker from Nebraska wants a license in Florida. He takes a written exam of 40
questions and passes 35 of them. The broker has taken advantage of the written
agreements between the states for real estate licensing. This is an example of?: A mutual
recognition agreement between the states of Florida and
Nebraska, created for real estate licensing
14. John is considering purchasing a commercial building. His accountant is working with
him to determine the property's value to John. The initial cost of an investment property
plus the cost of any additional improvements less qualified deductions represents the?:
Adjusted basis
15. Jim Jones, the landlord, rents a property to Tom Smith, a handicapped person. Mr.
Smith, with Mr. Jones' permission, modifies the house to suit his needs. When the lease
expires, which of the following requirements would not have to be met by Mr. Smith?:
Restore the wide doorways that were installed for his wheelchair to their original size
16. Jim Jones, the landlord, rents a property to Tom Smith, a handicapped person. Mr.
Smith, with Mr. Jones' permission, modifies the house to suit his needs. When the lease
expires, which of the following requirements would have to be met by Mr. Smith?:
Remove the grab rails in the bathroom that were installed for his use, raise the kitchen
cabinets that were lowered for his use, repair the walls where the grab bars were removed
17. In what section of a Closing Disclosure would you find information regarding the loan
term, purpose of the loan, product type, loan type and loan ID number?: Loan
Information
18. A very important person bought a home at Lake Geneva, WI. He purchased a home
and in the mortgage he also included the boat, boat dock, and boat house. What type of
mortgage did this important person have?: Package Mortgage
19. Justin is an unlicensed person and he has been appointed a trustee of a special needs
trust for his nephew. The trust will be funded by the sale of the property of his brother.
Justin lists, sells, and puts the money into the trust as required. What best describes this
situation?: Justin needs a license since he is acting for another in selling a property
20. The Federal Housing Administration (FHA) insures loans for lenders of real property.
Which statement about FHA loans is FALSE?: The buyer does not have to make a down
payment
21. The Federal Housing Administration (FHA) insures loans for lenders of real property.
What is true about FHA loans?: The buyer must pay a one-time insurance premium, the
buyer will not have to pay a pre-payment penalty if the property is sold prior to loan payoff,
the buyer may have to pay "points" to the lender
22. . A notice of noncompliance may be issued for a first-time minor offense or a minor
violation. Who can issue this notice?: The DBPR investigator
23. A developer is considering building a community for Senior Citizens. He sets up a
building that is occupied only by tenants 62 yrs or older. He designs community areas with
, barrier-free access and he advertises to older people in retirement magazines. A niece of
one of the owners requests permission to move in with her 2 children and live with her aunt
in the building. The homeowners and the developers refuse to let her move in. Are the
justified in doing this?: The developer may discriminate against the children and their mother
because senior housing is exempt under Federal Fair Housing when certain conditions have
been met
24. Local governments promote health, safety, and general welfare by establishing::
Zoning ordinances
25. Hypothecation most nearly means the:: property is pledged as collateral for the loan if
the buyer defaults
26. The buyer of an industrial complex wants the broker to place the earnest money in an
interest bearing account. The broker does this, clearly identifying all parties who are to
receive the interest and the date the earned interest is to be disbursed. With only the verbal
consent of the buyer, he places the money in an insured account in a depository in Florida.
When the time comes to disburse the account, the broker will write a check to the buyer for
the interest as the buyer agreed. How would you describe this situation?: The broker must
obtain the seller's permission to do this in writing prior to following the buyer's instructions
27. The federal government allows a homeowner certain deductions when filing the long
form for income tax. Which is not an allowable deduction?: Hazard insurance premiums
28. Neighbors have gotten into a quarrel over a black walnut tree that sits on Mr. Jones'
property. The limbs extend over to Mr. Simpson's property, and the fruit falls everywhere.
Mr. Simpson wants the limbs removed from his property. Does he have legal reason for
wanting this done?: Yes. The tree is legally invading Mr. Simpson's air space and is an
encumbrance on the property
29. A prospective buyer submits an offer to purchase a home for $256,000. The seller
changes the price to $260,000, initials the change, signs the offer, and sends it back to the
purchaser. What has occurred here?: The seller has rejected the initial offer and has become
the offeror of a counter offer
30. A listing contract that spells out terms and conditions for the seller and broker is what
type of agency agreement?: Written or expressed agency agreement
31. A fully amortized loan has a 360 month payment schedule with principal and interest
payments of $2588 each month. The amortization of this loan will pay off the loan in::
30 years
32. At a listing appointment, the seller of a large, expensive home on the water gives
specific instruction to the sales associate not to show the home to anyone from a
certain protected class. The sales associate tells the seller this is a clear act of
discrimination, but the property owner insists. The sales associate should:: Refuse the
listing
33. What is the major difference between acquiring title by voluntary alienation compared
to involuntary alienation?: Voluntary alienation means that the grantor is involved in the
transfer; in involuntary alienation the grantor is either not involved or it is against his
wishes
1. A city acquires a 10' strip of a property owner's land for a public walking trail. The
owner's home is not affected and she is able to use the land. Is the owner eligible for
compensation?: Yes, because the city is using its power of eminent domain for public good
2. A broker price opinion is often requested: By a bank
3. Repairing the roof, recoating the driveways, replacing lighting, and cleaning out the
gutters on an apartment building are considered by the property manager and the owner
to be part of the job. This is considered:: Preventative maintenance and is needed to
maintain the value of the property
4. The city is replacing all the streets, curbs, and gutters in Middleville. The homeowners on
both sides of the street are charged special assessment taxes to cover the cost. Mr. Kyle
has a 120-front-foot lot. The cost of the construction is $90 per front-foot for each
affected homeowner, and the city will pay 25% of the cost. How much will the cost be to
Mr. Kyle in special assessment taxation?: $4,050
5. Broker Bill takes his Broker course and passes it. He applies and receives his license on
time. He pays all the appropriate fees and he begins his work. ( He does not have a 4 year
degree in real estate ). He is not sure which course or courses to take to renew his license
the 1st time. What must Broker Bill do?: Broker Bill must complete two 30 hour courses
equaling 60 hours of post-license course in his first renewal period
6. An investment group bought a building with 12 apartments for $872,473. The apartments
rent monthly: 3 @ $600, 3 @ $750, 3 @ $800, and 3 penthouses @ $1000. The group has
a 7% vacancy rate and expenses of $9,490. What will be the annual rate of return on this
building?: 11%
7. The system that uses measurements, monuments, compass readings, and a POB is
called:: Metes and bounds
8. Ken, a transaction broker, worked with both the buyer and seller in the sale of a home.
The sale went well and it closed on time. Later, the seller discovered that Ken had told
the buyer that the seller was willing to take a lower price than was specified on the listing
agreement in order to "speed up the sale" and Ken told the buyer a specific price to offer.
Which describes the situation?: Ken violated the limited confidentiality required for his job
9. Steve is interested in learning how to become a single agent business broker. He needs to
know the steps in selling a business. What are the steps in a business sale?: Note all the
assets and liabilities that belong to the business, list the business for sale, determine the
value of the business, using all or some of the appraisal methods
10. Steve is interested in learning how to become a single agent business broker. He
needs to know the steps in selling a business. What is not a step in a business sale?:
Represent the buyer and obtain a purchase agreement
11. A legal description of a piece of real property should be complete enough so that a
reasonably competent:: Surveyor could find it
,12. The Florida Real Estate Commission (FREC) was first organized in 1926. It is composed
of 7 members who are appointed by the Governor and approved by the Senate. Its
primary purpose for being in existence is to:: Protect the public
13. A broker from Nebraska wants a license in Florida. He takes a written exam of 40
questions and passes 35 of them. The broker has taken advantage of the written
agreements between the states for real estate licensing. This is an example of?: A mutual
recognition agreement between the states of Florida and
Nebraska, created for real estate licensing
14. John is considering purchasing a commercial building. His accountant is working with
him to determine the property's value to John. The initial cost of an investment property
plus the cost of any additional improvements less qualified deductions represents the?:
Adjusted basis
15. Jim Jones, the landlord, rents a property to Tom Smith, a handicapped person. Mr.
Smith, with Mr. Jones' permission, modifies the house to suit his needs. When the lease
expires, which of the following requirements would not have to be met by Mr. Smith?:
Restore the wide doorways that were installed for his wheelchair to their original size
16. Jim Jones, the landlord, rents a property to Tom Smith, a handicapped person. Mr.
Smith, with Mr. Jones' permission, modifies the house to suit his needs. When the lease
expires, which of the following requirements would have to be met by Mr. Smith?:
Remove the grab rails in the bathroom that were installed for his use, raise the kitchen
cabinets that were lowered for his use, repair the walls where the grab bars were removed
17. In what section of a Closing Disclosure would you find information regarding the loan
term, purpose of the loan, product type, loan type and loan ID number?: Loan
Information
18. A very important person bought a home at Lake Geneva, WI. He purchased a home
and in the mortgage he also included the boat, boat dock, and boat house. What type of
mortgage did this important person have?: Package Mortgage
19. Justin is an unlicensed person and he has been appointed a trustee of a special needs
trust for his nephew. The trust will be funded by the sale of the property of his brother.
Justin lists, sells, and puts the money into the trust as required. What best describes this
situation?: Justin needs a license since he is acting for another in selling a property
20. The Federal Housing Administration (FHA) insures loans for lenders of real property.
Which statement about FHA loans is FALSE?: The buyer does not have to make a down
payment
21. The Federal Housing Administration (FHA) insures loans for lenders of real property.
What is true about FHA loans?: The buyer must pay a one-time insurance premium, the
buyer will not have to pay a pre-payment penalty if the property is sold prior to loan payoff,
the buyer may have to pay "points" to the lender
22. . A notice of noncompliance may be issued for a first-time minor offense or a minor
violation. Who can issue this notice?: The DBPR investigator
23. A developer is considering building a community for Senior Citizens. He sets up a
building that is occupied only by tenants 62 yrs or older. He designs community areas with
, barrier-free access and he advertises to older people in retirement magazines. A niece of
one of the owners requests permission to move in with her 2 children and live with her aunt
in the building. The homeowners and the developers refuse to let her move in. Are the
justified in doing this?: The developer may discriminate against the children and their mother
because senior housing is exempt under Federal Fair Housing when certain conditions have
been met
24. Local governments promote health, safety, and general welfare by establishing::
Zoning ordinances
25. Hypothecation most nearly means the:: property is pledged as collateral for the loan if
the buyer defaults
26. The buyer of an industrial complex wants the broker to place the earnest money in an
interest bearing account. The broker does this, clearly identifying all parties who are to
receive the interest and the date the earned interest is to be disbursed. With only the verbal
consent of the buyer, he places the money in an insured account in a depository in Florida.
When the time comes to disburse the account, the broker will write a check to the buyer for
the interest as the buyer agreed. How would you describe this situation?: The broker must
obtain the seller's permission to do this in writing prior to following the buyer's instructions
27. The federal government allows a homeowner certain deductions when filing the long
form for income tax. Which is not an allowable deduction?: Hazard insurance premiums
28. Neighbors have gotten into a quarrel over a black walnut tree that sits on Mr. Jones'
property. The limbs extend over to Mr. Simpson's property, and the fruit falls everywhere.
Mr. Simpson wants the limbs removed from his property. Does he have legal reason for
wanting this done?: Yes. The tree is legally invading Mr. Simpson's air space and is an
encumbrance on the property
29. A prospective buyer submits an offer to purchase a home for $256,000. The seller
changes the price to $260,000, initials the change, signs the offer, and sends it back to the
purchaser. What has occurred here?: The seller has rejected the initial offer and has become
the offeror of a counter offer
30. A listing contract that spells out terms and conditions for the seller and broker is what
type of agency agreement?: Written or expressed agency agreement
31. A fully amortized loan has a 360 month payment schedule with principal and interest
payments of $2588 each month. The amortization of this loan will pay off the loan in::
30 years
32. At a listing appointment, the seller of a large, expensive home on the water gives
specific instruction to the sales associate not to show the home to anyone from a
certain protected class. The sales associate tells the seller this is a clear act of
discrimination, but the property owner insists. The sales associate should:: Refuse the
listing
33. What is the major difference between acquiring title by voluntary alienation compared
to involuntary alienation?: Voluntary alienation means that the grantor is involved in the
transfer; in involuntary alienation the grantor is either not involved or it is against his
wishes
