FL RE Practice Test UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Which of these best describes a scenario that would lead to a construction lien?
a mortgage created for the purpose of financing a home purchase
a seller paid for work to be done a property prior to sale
a worker has not been paid for work done on a property
an owner refuses government work within property lines - CORRECT ANSWER a
worker has not been paid for work done on a property
A sales associate specializes in commercial sales. They should have expert knowledge of:
schools in the area
increasing cash flow
governmental regulations affecting farms
industrial subdivisions - CORRECT ANSWER increasing cash flow
When Toni signed an option to buy some undeveloped land outside of the city she lived in,
she fully expected to be in a position build on it before the option window closed. Now, with
six months remaining on her option, Toni sees that is no longer a possibility for her.
Unfortunately, the seller has made it clear that they are not willing to return the option fee to
Toni.
So, short of purchasing the property (exercising the option), is there anything that Toni can do
to keep from losing part or all of the option fee she paid?
Toni can demand return of the option fee as unilateral contracts are not enforceable.
Toni could assign the option to another individual in exchange for part or all of the fee she
originally paid.
There is nothing that Toni could do to keep from losing her option fee.
,In spite of what the seller said, Toni has the right, as the optionee, to demand return of the fee
in full anytime before the o - CORRECT ANSWER Toni could assign the option to
another individual in exchange for part or all of the fee she originally paid.
Hila wants to remove her kitchen cabinets so she can take them with her when she moves. If
Hila does this, she will be performing the act of:
severance
adoption
annexation
affixation - CORRECT ANSWER severance (add)
Rashid grants a life estate to Lily. Upon Lily's death, Rashid regains ownership of the estate.
What type of interest did Rashid hold in this estate?
conditional interest
determinable interest
reversionary interest
remainder interest - CORRECT ANSWER reversionary interest
How many hours of CE are Florida licensees required to complete per renewal cycle,
excluding the first renewal?
60
45
14
3 - CORRECT ANSWER 14
How do you find the value of a business's goodwill?
,add the value of the tangible and intangible assets
add the value of the assets to the going concern value
assess how much the goodwill could be sold for if it was separated from the rest of the
business
subtract the value of the tangible assets from the going concern value - CORRECT
ANSWER subtract the value of the tangible assets from the going concern value (add
to challenge questions)
Florida is a lien-theory state, which means that, with traditional mortgage lending, a buyer
(borrower) will hold deed to the property during the life of the loan while the lender places a
lien on the property until the loan is paid in full. Carmen, however, has 20 years to go on the
loan for her Del Ray Beach condo and she has equitable title only.
Evaluate this scenario and choose the answer that BEST explains how this could be.
Carmen's equity in the home is less than 5%, which allows the traditional lender to retain
legal title to the property.
Carmen has a seller-financed, installment sales contract loan.
Carmen obtained financing from a lender out-of-state that is not subject to lien theory lending
rules.
Carmen signed an "equitable title" amendment to her traditional mortgage loan contract with
the Florida lender. - CORRECT ANSWER Carmen has a seller-financed, installment
sales contract loan.
If a licensee working with a party has the duty to account for all funds entrusted to the
licensee, what do you know about the relationship the licensee has with the party?
Based on the duty owed, you know that the licensee and the party are in a transaction broker
relationship.
Based on the duty owed, you know that the licensee and the party are in a single agent
relationship.
Based on the duty owed, you know that the licensee and the party are in a no brokerage
relationship.
, Based on the duty owed, the licensee and the party could be in any one of the three
authorized relationships in Florida. - CORRECT ANSWER Based on the duty owed,
the licensee and the party could be in any one of the three authorized relationships in Florida.
A building receives $100,000 in rental income in a year. The unoccupied units would bring in
an additional $40,000 if they were occupied. What is the potential gross income of the
building?
$400,000
$60,000
$160,000
$140,000 - CORRECT ANSWER $140,000
Darla is suing Arlo for specific performance. If she is successful, what will happen?
Darla will be released from the contract without penalty.
Arlo will have to refund Darla's earnest money.
Arlo will have to pay punitive damages to Darla.
Arlo will be required to perform according to the terms of the contract. - CORRECT
ANSWER Arlo will be required to perform according to the terms of the contract.
There has been a lot of new construction in Ace City. New apartment complexes have been
opening all over town. Assuming that demand remains stable, infer the effect that this will
have on rent prices.
Rent rates won't change. Supply does not effect price; only demand affects price.
Rent rates should go up in response to the increase in supply.
Rent rates should go down now that there is more supply in relation to demand.
Rent rates will be raised to make up for the for the renters who have switched to
homeownership. - CORRECT ANSWER Rent rates should go down now that there is
more supply in relation to demand.
QUESTIONS AND CORRECT ANSWERS
Which of these best describes a scenario that would lead to a construction lien?
a mortgage created for the purpose of financing a home purchase
a seller paid for work to be done a property prior to sale
a worker has not been paid for work done on a property
an owner refuses government work within property lines - CORRECT ANSWER a
worker has not been paid for work done on a property
A sales associate specializes in commercial sales. They should have expert knowledge of:
schools in the area
increasing cash flow
governmental regulations affecting farms
industrial subdivisions - CORRECT ANSWER increasing cash flow
When Toni signed an option to buy some undeveloped land outside of the city she lived in,
she fully expected to be in a position build on it before the option window closed. Now, with
six months remaining on her option, Toni sees that is no longer a possibility for her.
Unfortunately, the seller has made it clear that they are not willing to return the option fee to
Toni.
So, short of purchasing the property (exercising the option), is there anything that Toni can do
to keep from losing part or all of the option fee she paid?
Toni can demand return of the option fee as unilateral contracts are not enforceable.
Toni could assign the option to another individual in exchange for part or all of the fee she
originally paid.
There is nothing that Toni could do to keep from losing her option fee.
,In spite of what the seller said, Toni has the right, as the optionee, to demand return of the fee
in full anytime before the o - CORRECT ANSWER Toni could assign the option to
another individual in exchange for part or all of the fee she originally paid.
Hila wants to remove her kitchen cabinets so she can take them with her when she moves. If
Hila does this, she will be performing the act of:
severance
adoption
annexation
affixation - CORRECT ANSWER severance (add)
Rashid grants a life estate to Lily. Upon Lily's death, Rashid regains ownership of the estate.
What type of interest did Rashid hold in this estate?
conditional interest
determinable interest
reversionary interest
remainder interest - CORRECT ANSWER reversionary interest
How many hours of CE are Florida licensees required to complete per renewal cycle,
excluding the first renewal?
60
45
14
3 - CORRECT ANSWER 14
How do you find the value of a business's goodwill?
,add the value of the tangible and intangible assets
add the value of the assets to the going concern value
assess how much the goodwill could be sold for if it was separated from the rest of the
business
subtract the value of the tangible assets from the going concern value - CORRECT
ANSWER subtract the value of the tangible assets from the going concern value (add
to challenge questions)
Florida is a lien-theory state, which means that, with traditional mortgage lending, a buyer
(borrower) will hold deed to the property during the life of the loan while the lender places a
lien on the property until the loan is paid in full. Carmen, however, has 20 years to go on the
loan for her Del Ray Beach condo and she has equitable title only.
Evaluate this scenario and choose the answer that BEST explains how this could be.
Carmen's equity in the home is less than 5%, which allows the traditional lender to retain
legal title to the property.
Carmen has a seller-financed, installment sales contract loan.
Carmen obtained financing from a lender out-of-state that is not subject to lien theory lending
rules.
Carmen signed an "equitable title" amendment to her traditional mortgage loan contract with
the Florida lender. - CORRECT ANSWER Carmen has a seller-financed, installment
sales contract loan.
If a licensee working with a party has the duty to account for all funds entrusted to the
licensee, what do you know about the relationship the licensee has with the party?
Based on the duty owed, you know that the licensee and the party are in a transaction broker
relationship.
Based on the duty owed, you know that the licensee and the party are in a single agent
relationship.
Based on the duty owed, you know that the licensee and the party are in a no brokerage
relationship.
, Based on the duty owed, the licensee and the party could be in any one of the three
authorized relationships in Florida. - CORRECT ANSWER Based on the duty owed,
the licensee and the party could be in any one of the three authorized relationships in Florida.
A building receives $100,000 in rental income in a year. The unoccupied units would bring in
an additional $40,000 if they were occupied. What is the potential gross income of the
building?
$400,000
$60,000
$160,000
$140,000 - CORRECT ANSWER $140,000
Darla is suing Arlo for specific performance. If she is successful, what will happen?
Darla will be released from the contract without penalty.
Arlo will have to refund Darla's earnest money.
Arlo will have to pay punitive damages to Darla.
Arlo will be required to perform according to the terms of the contract. - CORRECT
ANSWER Arlo will be required to perform according to the terms of the contract.
There has been a lot of new construction in Ace City. New apartment complexes have been
opening all over town. Assuming that demand remains stable, infer the effect that this will
have on rent prices.
Rent rates won't change. Supply does not effect price; only demand affects price.
Rent rates should go up in response to the increase in supply.
Rent rates should go down now that there is more supply in relation to demand.
Rent rates will be raised to make up for the for the renters who have switched to
homeownership. - CORRECT ANSWER Rent rates should go down now that there is
more supply in relation to demand.
