FL RE Practice Test questions and
answers rated A+
a worker has not been paid for work done on a property - correct answer ✔✔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
increasing cash flow - correct answer ✔✔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
Toni could assign the option to another individual in exchange for part or all of the fee she
originally paid. - correct answer ✔✔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
severance (add) - correct answer ✔✔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
reversionary interest - correct answer ✔✔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
14 - correct answer ✔✔How many hours of CE are Florida licensees required to complete per
renewal cycle, excluding the first renewal?
,60
45
14
3
subtract the value of the tangible assets from the going concern value (add to challenge
questions) - correct answer ✔✔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
Carmen has a seller-financed, installment sales contract loan. - correct answer ✔✔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.
, Based on the duty owed, the licensee and the party could be in any one of the three authorized
relationships in Florida. - correct answer ✔✔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.
$140,000 - correct answer ✔✔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
Arlo will be required to perform according to the terms of the contract. - correct answer
✔✔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.
answers rated A+
a worker has not been paid for work done on a property - correct answer ✔✔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
increasing cash flow - correct answer ✔✔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
Toni could assign the option to another individual in exchange for part or all of the fee she
originally paid. - correct answer ✔✔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
severance (add) - correct answer ✔✔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
reversionary interest - correct answer ✔✔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
14 - correct answer ✔✔How many hours of CE are Florida licensees required to complete per
renewal cycle, excluding the first renewal?
,60
45
14
3
subtract the value of the tangible assets from the going concern value (add to challenge
questions) - correct answer ✔✔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
Carmen has a seller-financed, installment sales contract loan. - correct answer ✔✔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.
, Based on the duty owed, the licensee and the party could be in any one of the three authorized
relationships in Florida. - correct answer ✔✔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.
$140,000 - correct answer ✔✔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
Arlo will be required to perform according to the terms of the contract. - correct answer
✔✔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.
