GOLD COAST Real Estate Exam Test Questions And
Answers Verified 100% Correct
The brokers sales associate is now their general agent, and becomes a subagent of all
the brokers principals
Brokers customer - ANSWER The party whom the broker does not represent as an
agent, and with whom the broker attempts to be successful in achieving the purpose of
his or her employment by the principal.
Fiduciary duties owed by a broker to principal - ANSWER Confidentiality- required to
keep any harmful information received from the principal confidential, even after
relationship ends.
Obedience- an agent must obey all legal instructions of the principal or withdraw from
the relationship. If Illegal instruction is given and principal persists, agent must withdraw.
Loyalty- may not place the interest of anyone else above those of the principal.
Full disclosure- required to report any fact or rumor to the principal that may affect his or
her decision
Consent to transition to Transaction Broker - ANSWER may be change at any time
during the relationship between an agent and principal, provided the agent gives the
written disclosure required and the principal gives his or her written consent before a
change in the relationship occurs.
Must be in writing to the principal as a separate and distinct document or included as
part of other documents such as listing agreement or others agreement for
representation.
Non representation (No Brokerage relationship) - ANSWER When in this relationship,
a broker may provide specified services for a fee. Care must be taken not to confuse or
mislead the customer by inappropriate words or acts that could suggest the licensee
has assumed a role that is different from the one originally agreed upon.
A customer may choose not to be represented, in which cases the broker must provide
the customer with a No Brokerage Relationship Notice (usually a for sale by owner)
Duties:
,Deal honestly and fairly
Account for all funds
Disclose all known facts that affect the value of residential property
Listing contract - ANSWER The brokers employment contract.
When a broker is employed to find a purchaser, he or she is entitled to
compensation when a ready, willing, and able buyer has met all of the sellers
requirements. This is accomplished when the buyer makes an offer in accordance
with the terms of the listing agreement, whether or not a sale is consummated.
Payment of Commision - ANSWER A borrowers earns the right to compensation by
performance. Once the broker has performed, the employer owes a commission to the
broker even if the employer fails to conclude the transaction.
If commission amount hasn't been specified by terms of an employment contract, a
customers commission rate would be due based on the type of property and fee the
broker would normally charge
Illegal commission - ANSWER A broker cannot collect a commission from both both
parties in a transaction without the knowledge and consent of both parties
RESPA- Real Estate Settlement Procedure Act - ANSWER Allows brokers to pay
referral fees between real estate agents and brokers without disclosure,
Referral Fees - ANSWER A Florida broker may pay a referral fee to, or share a
commission with, a broker licensed or registered by another state or foreign country.
The out of state or foreign broker may accompany the customer to Florida, but may not
participate in the transaction in any manner.
If the out of state or foreign broker comes into Florida and provides real estate services,
within the transaction, no referral fee or commission can be paid
A Florida broker may not pay compensation, fees, or share commission with unlicensed
individuals In exchange for soliciting or referring business. Includes gifts or
reimbursement of expenses.
The sharing of a brokerage compensation by a licensee with a party to the transaction
with full disclosure to all interested parties is not considered a violation
Surveyors Method (Metes and Bounds) - ANSWER The oldest method of land
description and provides the most accurate type of legal description.
Point of Beginning - ANSWER The survey begins by giving directions from the
monument to the edge of the property, which is called the Point Of Beginning.
When the survey returns to the POB it is called a closing
In essence, a person starts at a known point, goes to POB on the property, and walks
,around the property until returning to the POB.
Example: surveyors method (metes and bounds) - ANSWER The opposite of north 37
degrees East is South 37 degrees West
Township - ANSWER Six miles square, and contains 36 square miles
In the government survey method, a township is further subdivided into 36 sections
(Starting at 1 in the top right hand corner and zig zagging back and forth til 36)
Section subdivided - ANSWER Each section is 1 sq mile, or 640 acres
When a section is subdivided into quarters, each resulting subsection contains 160
acres (1/4 of 640 acres)
Plat Method - ANSWER "Recorded plat" method, or "Lot and block Method", A
Method of legal description used to identify small parcels of property in subdivided
areas and cities
Check - ANSWER The intersection of guide meridians and correction lines that forms a
24 mile square. Called a ....
APN- Assessors Parcel Number - ANSWER A number that is assigned to a parcel of
real property by a county property assessor to uniquely identify that property within the
jurisdiction
County appraiser officers use many different terms interchangeably, including ID
Number, Folio Number, Assessor Identification Number (AIN), Parcel Identification
Number(PIN), and Parcel Control Number(PCN). These terms are used synonymously
with APN
Common Area Measurments - ANSWER One acre contains 43,560 sq ft
One section contains 640 acres
One township is six miles square, contains 36 square miles, 36 Sections
Example: Calculating the Area Of A Rectangle - ANSWER Example: A 2 acre lot has a
front foot measurement of 120'. Find the depth of the license lot..
Solution: 1. Convert acres to square feet, since the front foot measurement is in feet:
2 Acres x 43,560 square feet per acre= 87,120 sq ft
2. Divide the square footage by the unknown front foot measurement to find the depth
of the property:
, 87,120 sq / 120 front feet= 726 feet (depth)
Essentials Of A Valid Contract - ANSWER Offer and Acceptance: There must be an
offer and acceptance, agreement , or meeting of the minds
Consideration: A
Price - ANSWER The amount that is actually paid in a real estate transaction.
Amount that the buyer is willing to pay and the amount the seller is willing to accept
Liquidation Value - ANSWER Th amount that remains after all assets of a business
have been sold in a hurried, but not forced, sale and all liabilities have been paid.
The value of a failing business that is not expected to continue. It can also be used to
estimate the minimal value of a Profitable business.
Market Value - ANSWER The market value of a property is the most probable price at
which specified property rights should sell.
The most common type of value
Principal of Highest and Best use - ANSWER States that the best use for the property,
known as its highest, best, and most profitable use, is that which will most likely
produce the greatest net return to the land over a given period of time. This net return is
realized in terms of money or other amenities.
Principal of Substitution - ANSWER Recognizes that no one would pay more for a
property than the amount necessary to acquire an acceptable substitution.
Highest and Best Analysis - ANSWER This assists in determining whether the present
use is the best use, or if an alternative should be considered to maximize the value of
the land and improvements of the property (property value)
Sales Comparison Approach - ANSWER Also referred to as the "Comparable Sales
Approach", is used to estimate the value indicated by the recent sales of comparable
properties in the market. This approach is a direct application of the Principal of
Substitution.
Step 3: Adjust the comparable sales price - ANSWER adjustments are always made to
the Comparable property, but never to the Subject property
If the Comparable property is superior to the subject property, the comparable sales
price is adjusted downward by the value of the superior features; superior means
subtract. If the comparable property is inferior to the subject property, the comparable
Answers Verified 100% Correct
The brokers sales associate is now their general agent, and becomes a subagent of all
the brokers principals
Brokers customer - ANSWER The party whom the broker does not represent as an
agent, and with whom the broker attempts to be successful in achieving the purpose of
his or her employment by the principal.
Fiduciary duties owed by a broker to principal - ANSWER Confidentiality- required to
keep any harmful information received from the principal confidential, even after
relationship ends.
Obedience- an agent must obey all legal instructions of the principal or withdraw from
the relationship. If Illegal instruction is given and principal persists, agent must withdraw.
Loyalty- may not place the interest of anyone else above those of the principal.
Full disclosure- required to report any fact or rumor to the principal that may affect his or
her decision
Consent to transition to Transaction Broker - ANSWER may be change at any time
during the relationship between an agent and principal, provided the agent gives the
written disclosure required and the principal gives his or her written consent before a
change in the relationship occurs.
Must be in writing to the principal as a separate and distinct document or included as
part of other documents such as listing agreement or others agreement for
representation.
Non representation (No Brokerage relationship) - ANSWER When in this relationship,
a broker may provide specified services for a fee. Care must be taken not to confuse or
mislead the customer by inappropriate words or acts that could suggest the licensee
has assumed a role that is different from the one originally agreed upon.
A customer may choose not to be represented, in which cases the broker must provide
the customer with a No Brokerage Relationship Notice (usually a for sale by owner)
Duties:
,Deal honestly and fairly
Account for all funds
Disclose all known facts that affect the value of residential property
Listing contract - ANSWER The brokers employment contract.
When a broker is employed to find a purchaser, he or she is entitled to
compensation when a ready, willing, and able buyer has met all of the sellers
requirements. This is accomplished when the buyer makes an offer in accordance
with the terms of the listing agreement, whether or not a sale is consummated.
Payment of Commision - ANSWER A borrowers earns the right to compensation by
performance. Once the broker has performed, the employer owes a commission to the
broker even if the employer fails to conclude the transaction.
If commission amount hasn't been specified by terms of an employment contract, a
customers commission rate would be due based on the type of property and fee the
broker would normally charge
Illegal commission - ANSWER A broker cannot collect a commission from both both
parties in a transaction without the knowledge and consent of both parties
RESPA- Real Estate Settlement Procedure Act - ANSWER Allows brokers to pay
referral fees between real estate agents and brokers without disclosure,
Referral Fees - ANSWER A Florida broker may pay a referral fee to, or share a
commission with, a broker licensed or registered by another state or foreign country.
The out of state or foreign broker may accompany the customer to Florida, but may not
participate in the transaction in any manner.
If the out of state or foreign broker comes into Florida and provides real estate services,
within the transaction, no referral fee or commission can be paid
A Florida broker may not pay compensation, fees, or share commission with unlicensed
individuals In exchange for soliciting or referring business. Includes gifts or
reimbursement of expenses.
The sharing of a brokerage compensation by a licensee with a party to the transaction
with full disclosure to all interested parties is not considered a violation
Surveyors Method (Metes and Bounds) - ANSWER The oldest method of land
description and provides the most accurate type of legal description.
Point of Beginning - ANSWER The survey begins by giving directions from the
monument to the edge of the property, which is called the Point Of Beginning.
When the survey returns to the POB it is called a closing
In essence, a person starts at a known point, goes to POB on the property, and walks
,around the property until returning to the POB.
Example: surveyors method (metes and bounds) - ANSWER The opposite of north 37
degrees East is South 37 degrees West
Township - ANSWER Six miles square, and contains 36 square miles
In the government survey method, a township is further subdivided into 36 sections
(Starting at 1 in the top right hand corner and zig zagging back and forth til 36)
Section subdivided - ANSWER Each section is 1 sq mile, or 640 acres
When a section is subdivided into quarters, each resulting subsection contains 160
acres (1/4 of 640 acres)
Plat Method - ANSWER "Recorded plat" method, or "Lot and block Method", A
Method of legal description used to identify small parcels of property in subdivided
areas and cities
Check - ANSWER The intersection of guide meridians and correction lines that forms a
24 mile square. Called a ....
APN- Assessors Parcel Number - ANSWER A number that is assigned to a parcel of
real property by a county property assessor to uniquely identify that property within the
jurisdiction
County appraiser officers use many different terms interchangeably, including ID
Number, Folio Number, Assessor Identification Number (AIN), Parcel Identification
Number(PIN), and Parcel Control Number(PCN). These terms are used synonymously
with APN
Common Area Measurments - ANSWER One acre contains 43,560 sq ft
One section contains 640 acres
One township is six miles square, contains 36 square miles, 36 Sections
Example: Calculating the Area Of A Rectangle - ANSWER Example: A 2 acre lot has a
front foot measurement of 120'. Find the depth of the license lot..
Solution: 1. Convert acres to square feet, since the front foot measurement is in feet:
2 Acres x 43,560 square feet per acre= 87,120 sq ft
2. Divide the square footage by the unknown front foot measurement to find the depth
of the property:
, 87,120 sq / 120 front feet= 726 feet (depth)
Essentials Of A Valid Contract - ANSWER Offer and Acceptance: There must be an
offer and acceptance, agreement , or meeting of the minds
Consideration: A
Price - ANSWER The amount that is actually paid in a real estate transaction.
Amount that the buyer is willing to pay and the amount the seller is willing to accept
Liquidation Value - ANSWER Th amount that remains after all assets of a business
have been sold in a hurried, but not forced, sale and all liabilities have been paid.
The value of a failing business that is not expected to continue. It can also be used to
estimate the minimal value of a Profitable business.
Market Value - ANSWER The market value of a property is the most probable price at
which specified property rights should sell.
The most common type of value
Principal of Highest and Best use - ANSWER States that the best use for the property,
known as its highest, best, and most profitable use, is that which will most likely
produce the greatest net return to the land over a given period of time. This net return is
realized in terms of money or other amenities.
Principal of Substitution - ANSWER Recognizes that no one would pay more for a
property than the amount necessary to acquire an acceptable substitution.
Highest and Best Analysis - ANSWER This assists in determining whether the present
use is the best use, or if an alternative should be considered to maximize the value of
the land and improvements of the property (property value)
Sales Comparison Approach - ANSWER Also referred to as the "Comparable Sales
Approach", is used to estimate the value indicated by the recent sales of comparable
properties in the market. This approach is a direct application of the Principal of
Substitution.
Step 3: Adjust the comparable sales price - ANSWER adjustments are always made to
the Comparable property, but never to the Subject property
If the Comparable property is superior to the subject property, the comparable sales
price is adjusted downward by the value of the superior features; superior means
subtract. If the comparable property is inferior to the subject property, the comparable
