FREC EXAM 1 NEWEST 2026 (GRADED A+ 100% DETAILED VERIFIED ANSWERS)
Which disclosure must be given to the buyer of both new and resale residential condominium
units? - ANSWER✅ declaration
A condominium is created by recording the declaration of condominium and is part of the
condominium documents that must be given to all condominium purchasers.
Which survey term is associated with a metes-and-bounds description? - ANSWER✅ point
of beginning
The Florida Real Estate Commission is empowered by law to - ANSWER✅ reprimand, fine,
or otherwise discipline licensees. (unit 6)
In Florida, real property is assessed on January 1 of each year, and property taxes become a
lien on the property on - ANSWER✅ January 1, the same year. (unit 18)
Which statute prohibits discrimination in hotels, restaurants, and other places of public
accommodation if such discrimination is based on national origin? - ANSWER✅ Civil Rights
Act of 1964 (unit 7)
A person must hold an active real estate license if, for express or implied compensation, the
person - ANSWER✅ advertises a list of available rental properties.
,In order to claim ownership of the property by adverse possession of the person claiming
ownership must meet certain requirements for what period of time? - ANSWER✅ Seven
years.
The person claiming ownership must enter into adverse, open, hostile, and exclusive
possession of the property for a period of seven continuous here's the possessor must also
pay our real estate taxes for all seven years of possession any other requirements of
Florida statutes
The second mortgage on the buyers closing statement should be entered as________? -
ANSWER✅ A credit.
The buyer gives a second mortgage to the lender in return for money to purchase property
the money shows as a credit to the buyer on the closing statement.
Which is the most comprehensive type of appraisal report? - ANSWER✅ Narrative
reports.
A narrative reports give the reasoning and conclusions of the appraiser and maybe more
than 50 pages. **A CMA is not an appraisal
Which type of loan is designed to help senior citizens that have sizable equity in the home to
gradually pull out their equity to help with living expenses? - ANSWER✅ Reverse annuity.
,Reverse annuity mortgages allow homeowners to receive a lump sum or monthly advance on
the line of credit based on the equity in their homes. for reversed annuity mortgage the
borrower must be over 62 and at least of 1/3 equity in the property
Regression - ANSWER✅ Dan has build a 3000 square-foot house in the neighborhood of
less expensive 2300 square-foot houses. The principle that his house will be adversely
affected is called what?
When a loan has negative amortization the: - ANSWER✅ The term of the loan decreases.
The payments are not even enough to pay the interest portion on the loan there for the
interest is deferred by adding it to the outstanding balance.
The section immediately due north of section 15 is section what? - ANSWER✅ 10
What is the federal law that requires a buyer to receive a good faith estimate of closing
costs? - ANSWER✅ RESPA.
Requires lenders to provide good faith estimates of settlement cost no more than three
business days following the date of a mortgage loan application
Never, because the fair housing act of 1988 - ANSWER✅ Never, because the fair housing
act of 1988
, Don owns a six story apartment building. She's concerned for the safety of her tenant so she
decides the families with small children my only rent on the first floor or second floor. This
is except a bowl when?
Property management - ANSWER✅ Property managementThe marketing, leasing and
maintaining real property for someone is called what?
Give a three day notice - ANSWER✅ If a tenant is behind on the rent payments and the
landlord is starting the evection process, the first step in would be to:
Substitution. - ANSWER✅ The buyer would substitute the less expensive propertyThe
economic principle which states that an informed buyer will pay no more for a property then
for another property he thinks is just as good is:
Conformity - ANSWER✅ A property holding their best value if they fit in or match the
surrounding properties
Contribution - ANSWER✅ The value of an improvement is not based on the cost to install it
but rather how much it adds to the overall value of the property
In Florida real property taxes become delinquent on: - ANSWER✅ April 1 of the following
year
The broker.
Which disclosure must be given to the buyer of both new and resale residential condominium
units? - ANSWER✅ declaration
A condominium is created by recording the declaration of condominium and is part of the
condominium documents that must be given to all condominium purchasers.
Which survey term is associated with a metes-and-bounds description? - ANSWER✅ point
of beginning
The Florida Real Estate Commission is empowered by law to - ANSWER✅ reprimand, fine,
or otherwise discipline licensees. (unit 6)
In Florida, real property is assessed on January 1 of each year, and property taxes become a
lien on the property on - ANSWER✅ January 1, the same year. (unit 18)
Which statute prohibits discrimination in hotels, restaurants, and other places of public
accommodation if such discrimination is based on national origin? - ANSWER✅ Civil Rights
Act of 1964 (unit 7)
A person must hold an active real estate license if, for express or implied compensation, the
person - ANSWER✅ advertises a list of available rental properties.
,In order to claim ownership of the property by adverse possession of the person claiming
ownership must meet certain requirements for what period of time? - ANSWER✅ Seven
years.
The person claiming ownership must enter into adverse, open, hostile, and exclusive
possession of the property for a period of seven continuous here's the possessor must also
pay our real estate taxes for all seven years of possession any other requirements of
Florida statutes
The second mortgage on the buyers closing statement should be entered as________? -
ANSWER✅ A credit.
The buyer gives a second mortgage to the lender in return for money to purchase property
the money shows as a credit to the buyer on the closing statement.
Which is the most comprehensive type of appraisal report? - ANSWER✅ Narrative
reports.
A narrative reports give the reasoning and conclusions of the appraiser and maybe more
than 50 pages. **A CMA is not an appraisal
Which type of loan is designed to help senior citizens that have sizable equity in the home to
gradually pull out their equity to help with living expenses? - ANSWER✅ Reverse annuity.
,Reverse annuity mortgages allow homeowners to receive a lump sum or monthly advance on
the line of credit based on the equity in their homes. for reversed annuity mortgage the
borrower must be over 62 and at least of 1/3 equity in the property
Regression - ANSWER✅ Dan has build a 3000 square-foot house in the neighborhood of
less expensive 2300 square-foot houses. The principle that his house will be adversely
affected is called what?
When a loan has negative amortization the: - ANSWER✅ The term of the loan decreases.
The payments are not even enough to pay the interest portion on the loan there for the
interest is deferred by adding it to the outstanding balance.
The section immediately due north of section 15 is section what? - ANSWER✅ 10
What is the federal law that requires a buyer to receive a good faith estimate of closing
costs? - ANSWER✅ RESPA.
Requires lenders to provide good faith estimates of settlement cost no more than three
business days following the date of a mortgage loan application
Never, because the fair housing act of 1988 - ANSWER✅ Never, because the fair housing
act of 1988
, Don owns a six story apartment building. She's concerned for the safety of her tenant so she
decides the families with small children my only rent on the first floor or second floor. This
is except a bowl when?
Property management - ANSWER✅ Property managementThe marketing, leasing and
maintaining real property for someone is called what?
Give a three day notice - ANSWER✅ If a tenant is behind on the rent payments and the
landlord is starting the evection process, the first step in would be to:
Substitution. - ANSWER✅ The buyer would substitute the less expensive propertyThe
economic principle which states that an informed buyer will pay no more for a property then
for another property he thinks is just as good is:
Conformity - ANSWER✅ A property holding their best value if they fit in or match the
surrounding properties
Contribution - ANSWER✅ The value of an improvement is not based on the cost to install it
but rather how much it adds to the overall value of the property
In Florida real property taxes become delinquent on: - ANSWER✅ April 1 of the following
year
The broker.
