Gold Coast RE 1001 Cram, Practice Math
and Final Exam
240. A broker from Tampa sells a property listed by a Miami broker. At closing, the Miami
broker refuses to pay the Tampa broker's share of the commission. Charges are filed by
FREC against the Miami broker for failure to account. The Commission has the Miami broker
subpoenaed, but the broker fails to appear. The Miami broker:
a. Does not have to appear
b. May be fined for contempt of court
c. Could have license suspended or
revoked by FREC
d. Both b and c are correct - ANS-D. Both b and c are correct
\1. A $40,000 mortgage for a term of 20 years was originated at an 8% interest rate, with
monthly mortgage payments of $334.58. What is the principal balance remaining after the
second monthly payment?
a. $39,932.09
b. $39,863.72
c. $39,794.90
d. $39,725.62 - ANS-B. $39,863.72
\1. In which area of brokerage has absentee ownership increased the demand?
a. Business opportunity brokerage
b. Commercial sales
c. Agricultural sales
d. Property management - ANS-D. Property management
\1. When must a written No Brokerage Relationship (nonrepresentation) Notice be provided
to customers?
a. Immediately upon the signing of a listing agreement
b. At an open house when providing a brochure containing information about the property
c. Before showing homes that are listed
d. In every real estate transaction - ANS-C. Before showing homes that are listed
\10. Calculate the number of acres in a property with the following legal description: SW 1/4
of the SW 1/4 of the SE 1/4 and the E 1/2 of the E 1/2 of the SW 1/4 of Sec. 23
a. .625
b. 1.25
c. 2.50
d. 50 - ANS-D. 50
\10. The sales comparison approach usually CANNOT be used when estimating the value of
which of the following?
,a. Income-producing industrial property
b. Income-producing commercial property
c. Residential property
d. Special-purpose properties - ANS-D. Special-purpose properties
\10. What does the license law require that a licensee complete before the first renewal of a
Florida real estate license?
a. A continuing education course
b. A minimum number of transactions
c. A post-licensing course
d. A REALTOR® orientation course - ANS-C. post-licensing course
\100. If a lender charges four points on a loan with an interest rate of 11%, what would be
the approximate yield to the lender?
a. 11.25%
b. 11.50%
c. 11.75%
d. 11.85% - ANS-B. 11.50%
\100. Which type of loan uses both real and personal property as security?
a. Blanket mortgage
b. Purchase money mortgage
c. Package mortgage
d. Chattel mortgage - ANS-C. Package mortgage
\1000. An investor realizes a net income of $925 per month on a $111,000 investment. What
is his yield (return on investment)?
a. 9%
b. 10%
c. 11%
d. 12% - ANS-B. 10%
\1001. After I have passed my state exam, I need to:
a. Celebrate!
b. Pat myself on the back; I've worked hard
c. Sign up to take my post-license course immediately
d. All of the above, in this order - ANS-D. All of the above, in this order
\101. Which remedies are available when a seller breaches a contract?
a. A suit for specific performance
b. Buyer gets deposit returned
c. A or b but not both
d. Notifying FREC - ANS-C. A or b but not both
\102. What term refers to the right of a mortgagor to stop a foreclosure process by paying
the entire balance, interest and so on?
a. Equity of estoppel
b. Right of redemption
,c. Right of defeasance
d. Equity of disposition - ANS-B. Right of redemption
\103. Which type of mortgage is known as seller financing?
a. Package mortgage
b. Term mortgage
c. Second mortgage
d. Purchase money mortgage - ANS-D. Purchase money mortgage
\104. Where are the interest rate, payment, and other terms of a loan found?
a. Note
b. Lease
c. Satisfaction
d. Mortgage - ANS-A. Note
\105. Which statement is correct in a lien-theory state such as Florida?
a. The borrower will obtain title only after
the loan is paid.
b. Foreclosure will take place much quicker
than in title theory states.
c. The borrower conveys title to the lender
using a deed of trust.
d. The mortgage serves as a lien against
the property. - ANS-D. The mortgage serves as a lien against the property
\106. Which of the following is a characteristic of an amortized or level payment mortgage?
a. The early payments are mostly interest
b. The early payments are mostly principal
c. Each monthly payment increases and the
balance decreases
d. With each monthly payment, the interest
increases and the balance decreases - ANS-A. the early payments are mostly interest
\107. Which term refers to the process of sand deposits building up over time, causing an
increase in land?
a. Reliction
b. Accretion
c. Erosion
d. Alluvion - ANS-B. Accretion
\108. Which estate or tenancy is the most comprehensive?
a. Fee simple
b. Life estate
c. Estate for years
d. Free sample estate - ANS-A. Fee simple
\109. Which term refers to the government's right to limit or control the actions of citizens in
the form of such things as zoning codes and building codes?
, a. Police power
b. Eminent domain
c. Escheat
d. Taxation - ANS-A. Police power
\11. A property is rectangular and measures 500' x 640'. How many acres does it contain?
a. 5.21
b. 6.38
c. 7.35
d. 9.24 - ANS-C. 7.35
\11. In a brokerage corporation, the officers
and directors can be active or inactive brokers or nonlicensed registered persons. If
someone who is nonlicensed and registered wants to become a broker, what must he or she
do?
a. File an application with the secretary of state
b. Only take a 40-question law exam
c. Qualify for a broker license in the same
way as anyone else
d. Demonstrate 2 years of experience in the
real estate business - ANS-C. Qualify for a broker license in the same
way as anyone else.
\11. Which of the following describes expenses on a closing statement?
a. Prorated between parties
b. Always entered as double entries
c. Always entered as debit entries
d. Entered as disbursements - ANS-C. Always entered as debit entries
\110. Which process is used by the government to take private land for public use?
a. Escheat
b. Encroachment
c. Condemnation
d. Acknowledgment - ANS-C. Condemnation
\111. Which term refers to the interest that is charged when banks borrow from the Federal
Reserve?
a. Prime rate
b. Discount points
c. Usury rate
d. Discount rate - ANS-D. Discount rate
\112. If a lender charges 8% interest plus 2 points, what is the approximate yield on the
loan?
a. 9.00%
b. 8.50%
c. 8.25%
and Final Exam
240. A broker from Tampa sells a property listed by a Miami broker. At closing, the Miami
broker refuses to pay the Tampa broker's share of the commission. Charges are filed by
FREC against the Miami broker for failure to account. The Commission has the Miami broker
subpoenaed, but the broker fails to appear. The Miami broker:
a. Does not have to appear
b. May be fined for contempt of court
c. Could have license suspended or
revoked by FREC
d. Both b and c are correct - ANS-D. Both b and c are correct
\1. A $40,000 mortgage for a term of 20 years was originated at an 8% interest rate, with
monthly mortgage payments of $334.58. What is the principal balance remaining after the
second monthly payment?
a. $39,932.09
b. $39,863.72
c. $39,794.90
d. $39,725.62 - ANS-B. $39,863.72
\1. In which area of brokerage has absentee ownership increased the demand?
a. Business opportunity brokerage
b. Commercial sales
c. Agricultural sales
d. Property management - ANS-D. Property management
\1. When must a written No Brokerage Relationship (nonrepresentation) Notice be provided
to customers?
a. Immediately upon the signing of a listing agreement
b. At an open house when providing a brochure containing information about the property
c. Before showing homes that are listed
d. In every real estate transaction - ANS-C. Before showing homes that are listed
\10. Calculate the number of acres in a property with the following legal description: SW 1/4
of the SW 1/4 of the SE 1/4 and the E 1/2 of the E 1/2 of the SW 1/4 of Sec. 23
a. .625
b. 1.25
c. 2.50
d. 50 - ANS-D. 50
\10. The sales comparison approach usually CANNOT be used when estimating the value of
which of the following?
,a. Income-producing industrial property
b. Income-producing commercial property
c. Residential property
d. Special-purpose properties - ANS-D. Special-purpose properties
\10. What does the license law require that a licensee complete before the first renewal of a
Florida real estate license?
a. A continuing education course
b. A minimum number of transactions
c. A post-licensing course
d. A REALTOR® orientation course - ANS-C. post-licensing course
\100. If a lender charges four points on a loan with an interest rate of 11%, what would be
the approximate yield to the lender?
a. 11.25%
b. 11.50%
c. 11.75%
d. 11.85% - ANS-B. 11.50%
\100. Which type of loan uses both real and personal property as security?
a. Blanket mortgage
b. Purchase money mortgage
c. Package mortgage
d. Chattel mortgage - ANS-C. Package mortgage
\1000. An investor realizes a net income of $925 per month on a $111,000 investment. What
is his yield (return on investment)?
a. 9%
b. 10%
c. 11%
d. 12% - ANS-B. 10%
\1001. After I have passed my state exam, I need to:
a. Celebrate!
b. Pat myself on the back; I've worked hard
c. Sign up to take my post-license course immediately
d. All of the above, in this order - ANS-D. All of the above, in this order
\101. Which remedies are available when a seller breaches a contract?
a. A suit for specific performance
b. Buyer gets deposit returned
c. A or b but not both
d. Notifying FREC - ANS-C. A or b but not both
\102. What term refers to the right of a mortgagor to stop a foreclosure process by paying
the entire balance, interest and so on?
a. Equity of estoppel
b. Right of redemption
,c. Right of defeasance
d. Equity of disposition - ANS-B. Right of redemption
\103. Which type of mortgage is known as seller financing?
a. Package mortgage
b. Term mortgage
c. Second mortgage
d. Purchase money mortgage - ANS-D. Purchase money mortgage
\104. Where are the interest rate, payment, and other terms of a loan found?
a. Note
b. Lease
c. Satisfaction
d. Mortgage - ANS-A. Note
\105. Which statement is correct in a lien-theory state such as Florida?
a. The borrower will obtain title only after
the loan is paid.
b. Foreclosure will take place much quicker
than in title theory states.
c. The borrower conveys title to the lender
using a deed of trust.
d. The mortgage serves as a lien against
the property. - ANS-D. The mortgage serves as a lien against the property
\106. Which of the following is a characteristic of an amortized or level payment mortgage?
a. The early payments are mostly interest
b. The early payments are mostly principal
c. Each monthly payment increases and the
balance decreases
d. With each monthly payment, the interest
increases and the balance decreases - ANS-A. the early payments are mostly interest
\107. Which term refers to the process of sand deposits building up over time, causing an
increase in land?
a. Reliction
b. Accretion
c. Erosion
d. Alluvion - ANS-B. Accretion
\108. Which estate or tenancy is the most comprehensive?
a. Fee simple
b. Life estate
c. Estate for years
d. Free sample estate - ANS-A. Fee simple
\109. Which term refers to the government's right to limit or control the actions of citizens in
the form of such things as zoning codes and building codes?
, a. Police power
b. Eminent domain
c. Escheat
d. Taxation - ANS-A. Police power
\11. A property is rectangular and measures 500' x 640'. How many acres does it contain?
a. 5.21
b. 6.38
c. 7.35
d. 9.24 - ANS-C. 7.35
\11. In a brokerage corporation, the officers
and directors can be active or inactive brokers or nonlicensed registered persons. If
someone who is nonlicensed and registered wants to become a broker, what must he or she
do?
a. File an application with the secretary of state
b. Only take a 40-question law exam
c. Qualify for a broker license in the same
way as anyone else
d. Demonstrate 2 years of experience in the
real estate business - ANS-C. Qualify for a broker license in the same
way as anyone else.
\11. Which of the following describes expenses on a closing statement?
a. Prorated between parties
b. Always entered as double entries
c. Always entered as debit entries
d. Entered as disbursements - ANS-C. Always entered as debit entries
\110. Which process is used by the government to take private land for public use?
a. Escheat
b. Encroachment
c. Condemnation
d. Acknowledgment - ANS-C. Condemnation
\111. Which term refers to the interest that is charged when banks borrow from the Federal
Reserve?
a. Prime rate
b. Discount points
c. Usury rate
d. Discount rate - ANS-D. Discount rate
\112. If a lender charges 8% interest plus 2 points, what is the approximate yield on the
loan?
a. 9.00%
b. 8.50%
c. 8.25%
