FLORIDA REAL ESTATE PRINCIPLES,
PRACTICES & LAW (SIMULATOR
EXAM 1) KEY CONCEPTS AND
EXPLANATIONS
The United States Supreme Court ruling in Jones v. Mayer, as it pertains to real
property, focuses on
A) discrimination.
B) misrepresentation by land
developers.
C) truth-in-lending.
,D) informing buyers of latent defects. - correct answers ✔✔A) discrimination.
In 1968, the U.S. Supreme Court, in the case of Jones v. Mayer, upheld the Civil Rights
Act of 1866, which prohibits discrimination on the basis of race.
A valuation product used by lenders involved in short sales of distressed property is
called a
A) comparative market analysis.
B) broker's price opinion.
C) nonconforming valuation estimate.
D) certified appraisal. - correct answers ✔✔B) broker's price opinion.
A broker's price opinion (BPO) is a written opinion of value often requested by lenders
involved in short sales.
A buyer obtains a mortgage loan of $340,000, and the lender agrees to make the loan
at 4% interest with the buyer to pay 3 points at closing. What is the lender's effective
yield on the loan?
A) 4.75%
B) 4.25%
C) 4.0%
D) 4.375% - correct answers ✔✔D) 4.375%
(12)
1 ÷ 8 = .125 × 3 points = 0.375
4% + .375 = 4.375% effective yield
In Florida, which brokerage relationship is NOT legal?
A) Single agent—principal
B) Transaction broker—customer
,C) Nonrepresentation—facilitator
D) Dual agent in a residential transaction - correct answers ✔✔D) Dual agent in a
residential transaction
Dual agency is prohibited under 475.272(1), F.S.
Developers selling lots in a subdivision of 25 or more lots that is nationally promoted
through advertising must provide potential buyers, prior to their signing a purchase
contract, with a
A) copy of Regulation Z.
B) Settlement Statement.
C) Property Report.
D) Statement of Record. - correct answers ✔✔C) Property Report.
The Interstate Land Sales Full Disclosure Act is designed to protect consumers from
misrepresentation by land developers. Purchasers must be furnished a Property Report
before signing a purchase contract or lease
The day of closing
A) is always charged to the seller.
B) is always charged to the buyer.
C) if belonging to the seller, means that the seller is charged one less day.
D) if belonging to the seller, means that the seller is charged one extra day. - correct
answers ✔✔D) if belonging to the seller, means that the seller is charged one extra day.
In some areas or by negotiation, the day of closing will be charged to the seller. In that
situation, the seller is charged with an additional day.
A tenant in a 50-unit apartment complex paid a $1,200 security deposit. The tenant
received a receipt for the $1,200. Three weeks later, the landlord informed the tenant by
phone the name of the bank where the tenant's security deposit was being held. Why
has the landlord violated F.S. 83?
, A) A security deposit of $1,200 is an "unconscionable agreement or provision."
B) The landlord failed to notify the tenant within 15 days of the manner in which his
funds were held.
C) The landlord collected a security deposit exceeding legal limits.
D) The landlord failed to notify the tenant in writing of the bank name, address, and
other information concerning the $1,200 security deposit. - correct answers ✔✔D) The
landlord failed to notify the tenant in writing of the bank name, address, and other
information concerning the $1,200 security deposit.
The Florida Residential Landlord and Tenant Act requires that the landlord inform
tenants in writing, within 30 days from the receipt of advance rent or security deposit, of
the manner in which the tenant's funds are being held.
A sublease will result in a lease of
A) a portion of the leased rights and interests.
B) the entire premises by a new tenant.
C) all of the leased premises for the full duration of the remainder of the original lease.
D) the entire premises located below ground level. - correct answers ✔✔A) a portion of
the leased rights and interests.
A sublease is affected when the lessee assigns less than the entire property or assigns
all of the property for less than the full remaining period.
A license applicant has completed the 63-hour sales associate prelicense course.
Within what period of time after being issued a course completion slip for the prelicense
course MUST the applicant pass the state license exam?
A) Two years
B) Indefinitely
C) Six months
D) One year - correct answers ✔✔A) Two years
PRACTICES & LAW (SIMULATOR
EXAM 1) KEY CONCEPTS AND
EXPLANATIONS
The United States Supreme Court ruling in Jones v. Mayer, as it pertains to real
property, focuses on
A) discrimination.
B) misrepresentation by land
developers.
C) truth-in-lending.
,D) informing buyers of latent defects. - correct answers ✔✔A) discrimination.
In 1968, the U.S. Supreme Court, in the case of Jones v. Mayer, upheld the Civil Rights
Act of 1866, which prohibits discrimination on the basis of race.
A valuation product used by lenders involved in short sales of distressed property is
called a
A) comparative market analysis.
B) broker's price opinion.
C) nonconforming valuation estimate.
D) certified appraisal. - correct answers ✔✔B) broker's price opinion.
A broker's price opinion (BPO) is a written opinion of value often requested by lenders
involved in short sales.
A buyer obtains a mortgage loan of $340,000, and the lender agrees to make the loan
at 4% interest with the buyer to pay 3 points at closing. What is the lender's effective
yield on the loan?
A) 4.75%
B) 4.25%
C) 4.0%
D) 4.375% - correct answers ✔✔D) 4.375%
(12)
1 ÷ 8 = .125 × 3 points = 0.375
4% + .375 = 4.375% effective yield
In Florida, which brokerage relationship is NOT legal?
A) Single agent—principal
B) Transaction broker—customer
,C) Nonrepresentation—facilitator
D) Dual agent in a residential transaction - correct answers ✔✔D) Dual agent in a
residential transaction
Dual agency is prohibited under 475.272(1), F.S.
Developers selling lots in a subdivision of 25 or more lots that is nationally promoted
through advertising must provide potential buyers, prior to their signing a purchase
contract, with a
A) copy of Regulation Z.
B) Settlement Statement.
C) Property Report.
D) Statement of Record. - correct answers ✔✔C) Property Report.
The Interstate Land Sales Full Disclosure Act is designed to protect consumers from
misrepresentation by land developers. Purchasers must be furnished a Property Report
before signing a purchase contract or lease
The day of closing
A) is always charged to the seller.
B) is always charged to the buyer.
C) if belonging to the seller, means that the seller is charged one less day.
D) if belonging to the seller, means that the seller is charged one extra day. - correct
answers ✔✔D) if belonging to the seller, means that the seller is charged one extra day.
In some areas or by negotiation, the day of closing will be charged to the seller. In that
situation, the seller is charged with an additional day.
A tenant in a 50-unit apartment complex paid a $1,200 security deposit. The tenant
received a receipt for the $1,200. Three weeks later, the landlord informed the tenant by
phone the name of the bank where the tenant's security deposit was being held. Why
has the landlord violated F.S. 83?
, A) A security deposit of $1,200 is an "unconscionable agreement or provision."
B) The landlord failed to notify the tenant within 15 days of the manner in which his
funds were held.
C) The landlord collected a security deposit exceeding legal limits.
D) The landlord failed to notify the tenant in writing of the bank name, address, and
other information concerning the $1,200 security deposit. - correct answers ✔✔D) The
landlord failed to notify the tenant in writing of the bank name, address, and other
information concerning the $1,200 security deposit.
The Florida Residential Landlord and Tenant Act requires that the landlord inform
tenants in writing, within 30 days from the receipt of advance rent or security deposit, of
the manner in which the tenant's funds are being held.
A sublease will result in a lease of
A) a portion of the leased rights and interests.
B) the entire premises by a new tenant.
C) all of the leased premises for the full duration of the remainder of the original lease.
D) the entire premises located below ground level. - correct answers ✔✔A) a portion of
the leased rights and interests.
A sublease is affected when the lessee assigns less than the entire property or assigns
all of the property for less than the full remaining period.
A license applicant has completed the 63-hour sales associate prelicense course.
Within what period of time after being issued a course completion slip for the prelicense
course MUST the applicant pass the state license exam?
A) Two years
B) Indefinitely
C) Six months
D) One year - correct answers ✔✔A) Two years
