ACEABLE AGENT FL RE COURSE EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
The FREC has 30 days to check for errors and omissions in applications and notify the applicant
about the issue.
Kaitlyn is applying for her Florida sales associate license. How many days does the FREC have to
notify her of any errors or omissions in her application?
A marketable title is a title that is free from significant encumbrances or defects (such as liens)
that might otherwise prevent a purchaser from enjoying or eventually selling the property.
Odonis' client is concerned about the marketability of their title. Odonis advises that if they
want their title to be marketable, they need to focus on clearing up all:
Common Law
Can be traced back to customs and precedent established by court decisions over the centuries
in England
Alfie bought the home subject to the mortgage. (A property sold subject to the existing loan
retains its original loan. The seller is responsible for making the payments to the bank, and the
buyer makes the payments to the seller. The seller transfers the title to the buyer, but retains
responsibility for the loan. The bank does not sign off on this agreement — it is done under the
table between the buyer and seller.) Alice is the only one who assumed the loan. (Assumption is
when a buyer takes over a loan from a seller with the lender's permission. The loan is officially
transferred to the buyer with the title of the property, and the buyer makes the remainder of
the loan payments.) The difference between assuming a mortgage and buying subject to is that
the lender is not aware of Alfie's subject-to mortgage, and did not approve the transfer.
Which of these situations BEST describes a buyer assuming a mortgage?
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Offering tax preparation services for borrowers is not something lenders do. Collecting property
taxes in an escrow account and paying them for the borrower ensures that a tax lien won't take
priority in case of default.
What is one way lenders prevent other liens from hopping ahead of them in the debt priority
line?
A thin market indicates that there are few buyers and sellers in an area. An increase in building
permits means that there will be an increase in supply.
Real estate licensee Jamie discovers that there is an increase in the number of building permits
being issued in her town. What can she expect will result from this?
Real estate is land and improvements. Real property is land, improvements, and the bundle of
rights.
How is real estate different from real property?
The use of designated sales associates in a nonresidential in-house transaction allows a
brokerage to offer fiduciary representation to both sides of the transaction under certain
circumstances. One of those circumstances is that parties to the in-house transaction must sign
a disclosure notice consenting to the use of designated sales associates, and declaring that they
are financially eligible (both parties must have assets of one million dollars or more).
Why does each party in a designated sales associate transaction have two disclosures to sign?
The fact that there are two parties and in an in-house transaction means that this must be a
nonresidential transaction with designated sales associates. This is only allowed if the parties
have assets equal to or in excess of one million dollars.
In what kind of in-house transaction can there be two parties, each with a licensee providing
fiduciary levels of representation? What would that tell you about the assets held by the two
parties?
Use the following formula to calculate the percentage put down on a property: Down payment
÷ Purchase price = Percentage down. $85,000 ÷ $320,000 = 0.265, or 26.5%
Ozzy bought a house. He put down $85,000. The purchase price of the house was $320,000.
What percentage did Ozzy put down?
Large residential properties typically require a large amount of hands-on management and
upkeep. The advantage is that the residential property market is less volatile than commercial
markets.
Carmela is part of an investment group that wants to purchase a property. She's debating
between a large residential development and an office space. When you're laying out the pros
and cons of each kind of property, what is one advantage of residential property you would
share with her?
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, A multiple offer situation occurs when more than one party submits an offer on a single
property. There could be two people, or, in some hot markets, more than 10 people all trying to
buy the same home. That's not what's happening here, as Stevie's revised offer is a
counteroffer. A counteroffer is considered a rejection of the original offer, meaning the original
offer dies with the submission of a counteroffer. A counteroffer is basically a new offer!
Stevie receives an offer for his house. He takes part of that offer and adds new language. He
sends it to the buyer. This revised offer:
That's the savings on only school taxes. We need to add the savings for city and county property
taxes, too. Total exemptions x Tax rate = Property tax savings. If a home has an assessed value
above $75,000, the owner gets the base $25,000 exemption plus an additional $25,000
exemption on city and county taxes only. So, let's do school taxes first: $25,000 x 0.0091 =
$227.50. (That's what you got! Now keep going!) For city and county, add the mills first to get
18.2 mills. $50,000 x 0.0182 = $910. $227.50 + $910 = $1,137.50
Ella's house assessed for $91,000. The tax rate for city, county, and school taxes was 9.1 mills
each.
How much did she save in property taxes this year?
To find the debt-service ratio, just divide the NOI by the debt service. For Misha, that equals 2.5.
Misha is applying for a commercial mortgage so she can finally open up a laser tag facility. She is
able to convince the lender that the facility will have a net operating income (NOI) of $500,000
per year. This, along with an annual debt service of $200,000.
What is Misha's debt-service ratio?
Because Florida is a lien theory state, the borrower will sign a mortgage instead of a trust deed.
A homebuyer is taking out a loan to purchase a home in Florida, which is a lien theory state. The
lender has them sign a promissory note and what other document?
A rising supply paired with stable demand creates a renter's market. Rent rates should go down
now that there is more supply in relation to demand.
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.
A farm area is a specific area that a real estate associate chooses to specialize in and become an
expert in. Farm areas can look different. Maybe it's a certain area of town, or maybe it's an area
with only industrial properties.
Target marketing involves agents utilizing a farm area. Which of the following describes an agent
utilizing a farm area?
There's a three-day cancellation period with resale condos.
Addie is buying a condo from a former owner. How long after receiving her condo documents
and signing the contract does she have to cancel the contract?
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS GRADED A+
2025/2026
The FREC has 30 days to check for errors and omissions in applications and notify the applicant
about the issue.
Kaitlyn is applying for her Florida sales associate license. How many days does the FREC have to
notify her of any errors or omissions in her application?
A marketable title is a title that is free from significant encumbrances or defects (such as liens)
that might otherwise prevent a purchaser from enjoying or eventually selling the property.
Odonis' client is concerned about the marketability of their title. Odonis advises that if they
want their title to be marketable, they need to focus on clearing up all:
Common Law
Can be traced back to customs and precedent established by court decisions over the centuries
in England
Alfie bought the home subject to the mortgage. (A property sold subject to the existing loan
retains its original loan. The seller is responsible for making the payments to the bank, and the
buyer makes the payments to the seller. The seller transfers the title to the buyer, but retains
responsibility for the loan. The bank does not sign off on this agreement — it is done under the
table between the buyer and seller.) Alice is the only one who assumed the loan. (Assumption is
when a buyer takes over a loan from a seller with the lender's permission. The loan is officially
transferred to the buyer with the title of the property, and the buyer makes the remainder of
the loan payments.) The difference between assuming a mortgage and buying subject to is that
the lender is not aware of Alfie's subject-to mortgage, and did not approve the transfer.
Which of these situations BEST describes a buyer assuming a mortgage?
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Offering tax preparation services for borrowers is not something lenders do. Collecting property
taxes in an escrow account and paying them for the borrower ensures that a tax lien won't take
priority in case of default.
What is one way lenders prevent other liens from hopping ahead of them in the debt priority
line?
A thin market indicates that there are few buyers and sellers in an area. An increase in building
permits means that there will be an increase in supply.
Real estate licensee Jamie discovers that there is an increase in the number of building permits
being issued in her town. What can she expect will result from this?
Real estate is land and improvements. Real property is land, improvements, and the bundle of
rights.
How is real estate different from real property?
The use of designated sales associates in a nonresidential in-house transaction allows a
brokerage to offer fiduciary representation to both sides of the transaction under certain
circumstances. One of those circumstances is that parties to the in-house transaction must sign
a disclosure notice consenting to the use of designated sales associates, and declaring that they
are financially eligible (both parties must have assets of one million dollars or more).
Why does each party in a designated sales associate transaction have two disclosures to sign?
The fact that there are two parties and in an in-house transaction means that this must be a
nonresidential transaction with designated sales associates. This is only allowed if the parties
have assets equal to or in excess of one million dollars.
In what kind of in-house transaction can there be two parties, each with a licensee providing
fiduciary levels of representation? What would that tell you about the assets held by the two
parties?
Use the following formula to calculate the percentage put down on a property: Down payment
÷ Purchase price = Percentage down. $85,000 ÷ $320,000 = 0.265, or 26.5%
Ozzy bought a house. He put down $85,000. The purchase price of the house was $320,000.
What percentage did Ozzy put down?
Large residential properties typically require a large amount of hands-on management and
upkeep. The advantage is that the residential property market is less volatile than commercial
markets.
Carmela is part of an investment group that wants to purchase a property. She's debating
between a large residential development and an office space. When you're laying out the pros
and cons of each kind of property, what is one advantage of residential property you would
share with her?
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, A multiple offer situation occurs when more than one party submits an offer on a single
property. There could be two people, or, in some hot markets, more than 10 people all trying to
buy the same home. That's not what's happening here, as Stevie's revised offer is a
counteroffer. A counteroffer is considered a rejection of the original offer, meaning the original
offer dies with the submission of a counteroffer. A counteroffer is basically a new offer!
Stevie receives an offer for his house. He takes part of that offer and adds new language. He
sends it to the buyer. This revised offer:
That's the savings on only school taxes. We need to add the savings for city and county property
taxes, too. Total exemptions x Tax rate = Property tax savings. If a home has an assessed value
above $75,000, the owner gets the base $25,000 exemption plus an additional $25,000
exemption on city and county taxes only. So, let's do school taxes first: $25,000 x 0.0091 =
$227.50. (That's what you got! Now keep going!) For city and county, add the mills first to get
18.2 mills. $50,000 x 0.0182 = $910. $227.50 + $910 = $1,137.50
Ella's house assessed for $91,000. The tax rate for city, county, and school taxes was 9.1 mills
each.
How much did she save in property taxes this year?
To find the debt-service ratio, just divide the NOI by the debt service. For Misha, that equals 2.5.
Misha is applying for a commercial mortgage so she can finally open up a laser tag facility. She is
able to convince the lender that the facility will have a net operating income (NOI) of $500,000
per year. This, along with an annual debt service of $200,000.
What is Misha's debt-service ratio?
Because Florida is a lien theory state, the borrower will sign a mortgage instead of a trust deed.
A homebuyer is taking out a loan to purchase a home in Florida, which is a lien theory state. The
lender has them sign a promissory note and what other document?
A rising supply paired with stable demand creates a renter's market. Rent rates should go down
now that there is more supply in relation to demand.
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.
A farm area is a specific area that a real estate associate chooses to specialize in and become an
expert in. Farm areas can look different. Maybe it's a certain area of town, or maybe it's an area
with only industrial properties.
Target marketing involves agents utilizing a farm area. Which of the following describes an agent
utilizing a farm area?
There's a three-day cancellation period with resale condos.
Addie is buying a condo from a former owner. How long after receiving her condo documents
and signing the contract does she have to cancel the contract?
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
