FLORIDA REAL ESTATE SALES
ASSOCIATE STATE EXAM QUESTIONS
AND ANSWERS | 2026 UPDATE | 100%
CORRECT.
Receiver - ANS (trustee) manages a property during the foreclosure process, collects the
rents, and maintains the property
receivership clause - ANS - used in mortgages on income-producing real estate
- if the investor should default, the lender may appoint a trustee/receiver
subordination agreement - ANS - written contract in which a lender who has secured a loan
by a mortgage or deed of trust agrees with the property owner to subordinate the first loan to a
new loan (giving the new loan priority in any foreclosure or payoff)
- used to grant first lien status to a lien holder who would otherwise be secondary to a first lien
FHA Section 203(b) mortgage insurance - ANS provides basic mortgage insurance for the
purchase or refinance of owner-occupied one-to-four-family properties
to qualify for an FHA loan, a borrower must not exceed a housing expense ratio of ___% and a
total obligations ratio of ___% - ANS 31;43
the amount of mortgage insurance premiums required on an FHA insured mortgage loan
includes the payment of both an __________ and an __________ - ANS up-front mortgage
insurance premium (UFMIP); annual mortgage insurance premium (AMIP)
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 47
,interest rates of an FHA insured mortgage loan is determined by _______________, and interest
rates are established by __________________ in the marketplace - ANS negotiations
between the lender and the borrower; supply and demand
conventional mortgage loans - ANS - any loan that is not insured or guaranteed by an agency
of the government
- predominant method in which single-family residences are financed
- made by lending institutions and private lenders
purchase money mortgage - ANS - (seller financing) any mortgage loan obtained from the
seller when the proceeds of the loan are used to purchase real property
- used in situations where the buyer cannot qualify for a mortgage through other lending
channels
package mortgage - ANS includes both real and personal property as security for a loan
chattel mortgage - ANS uses only personal property as security for a loan
monetary policy - ANS - the actions of the Board of Governors
- regulate the cost and availability of credit in the US
- its actions effectively control the supply of money in the economy
tight money market - ANS limiting the supply of money and credit
reserve requirement - ANS the percentage of the money on deposit in a bank that cannot be
used for lending purposes and must be transferred to a district Federal Reserve Bank
if the reserve requirement is increased, the amount of money available for lending is
__________, which may cause interest rates to _________ - ANS decreased;increased
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 47
,a decrease in the reserve requirement would result in ____________ for lending, which would
cause interest rates to __________ - ANS more money available; decrease
discount rate - ANS the rate of interest that is charged by the Federal Reserve to a member
bank on funds loaned
who meets regularly throughout the year to review open market operations? - ANS the
Federal Open Market Committee (FOMC)
when FOMC decides to sell government securities with interest rates higher than banks pay on
savings accounts, this action removes money from the economy, also known as __________,
makes less money available for loans, referred to as __________, which causes interest rates to
__________. when that happens, __________ money is borrowed, causing the economy to
slow down - ANS disintermediation; making money tighter; rise; less
promissory note - ANS - evidence of a personal debt, contains the names of the parties, the
rate of interest, the amount of money borrowed, and the loan repayment terms
- contract between the lender and the borrower
hypothecation - ANS the pledge of property as security for a loan
a valid mortgage must (5 requirements): - ANS - be in writing
- be signed by the mortgagor
- conform to the same requirements as any valid contract
- contain the legal description of the property
- be witnessed by two persons
when a loan has been paid in full in a lien theory state, the mortgagor should receive a
__________ from the mortgagee within ____ days of the loan payoff - ANS letter of
satisfaction; 60
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 47
, real estate syndicate - ANS an organization formed for the purpose of real estate investment
what is the most common legal entity used in real estate syndication? - ANS a limited
partnership
you can demand a full refund if the rental information provided under a contract is not current
or accurate within how many days? - ANS 30
if you do not obtain a rental, you are entitled to receive a return of ___% of the fee paid, if you
make such demand within 30 days of this contract date - ANS 75%
a fee of $____ is added to the license fee for both new and renewal licenses for brokers in order
to maintain the Recovery Fund - ANS $3.50
a fee of $_____ is added to the license fee for both new and renewal licenses for sales
associates in order to maintain the Recovery Fund - ANS $1.50
income approach - ANS - used to estimate the value that a property's net earning power will
support
- used to estimate the value of income producing property and for the valuation of a business
the government survey method is also known as what? - ANS rectangular method
Tallahassee Principal Meridian - ANS north/south line
Tallahassee Baseline - ANS east/west line
the north/south lines are drawn parallel to the principle meridian and are called ___________,
or ___________ lines - ANS meridians, range
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 47
ASSOCIATE STATE EXAM QUESTIONS
AND ANSWERS | 2026 UPDATE | 100%
CORRECT.
Receiver - ANS (trustee) manages a property during the foreclosure process, collects the
rents, and maintains the property
receivership clause - ANS - used in mortgages on income-producing real estate
- if the investor should default, the lender may appoint a trustee/receiver
subordination agreement - ANS - written contract in which a lender who has secured a loan
by a mortgage or deed of trust agrees with the property owner to subordinate the first loan to a
new loan (giving the new loan priority in any foreclosure or payoff)
- used to grant first lien status to a lien holder who would otherwise be secondary to a first lien
FHA Section 203(b) mortgage insurance - ANS provides basic mortgage insurance for the
purchase or refinance of owner-occupied one-to-four-family properties
to qualify for an FHA loan, a borrower must not exceed a housing expense ratio of ___% and a
total obligations ratio of ___% - ANS 31;43
the amount of mortgage insurance premiums required on an FHA insured mortgage loan
includes the payment of both an __________ and an __________ - ANS up-front mortgage
insurance premium (UFMIP); annual mortgage insurance premium (AMIP)
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 47
,interest rates of an FHA insured mortgage loan is determined by _______________, and interest
rates are established by __________________ in the marketplace - ANS negotiations
between the lender and the borrower; supply and demand
conventional mortgage loans - ANS - any loan that is not insured or guaranteed by an agency
of the government
- predominant method in which single-family residences are financed
- made by lending institutions and private lenders
purchase money mortgage - ANS - (seller financing) any mortgage loan obtained from the
seller when the proceeds of the loan are used to purchase real property
- used in situations where the buyer cannot qualify for a mortgage through other lending
channels
package mortgage - ANS includes both real and personal property as security for a loan
chattel mortgage - ANS uses only personal property as security for a loan
monetary policy - ANS - the actions of the Board of Governors
- regulate the cost and availability of credit in the US
- its actions effectively control the supply of money in the economy
tight money market - ANS limiting the supply of money and credit
reserve requirement - ANS the percentage of the money on deposit in a bank that cannot be
used for lending purposes and must be transferred to a district Federal Reserve Bank
if the reserve requirement is increased, the amount of money available for lending is
__________, which may cause interest rates to _________ - ANS decreased;increased
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 47
,a decrease in the reserve requirement would result in ____________ for lending, which would
cause interest rates to __________ - ANS more money available; decrease
discount rate - ANS the rate of interest that is charged by the Federal Reserve to a member
bank on funds loaned
who meets regularly throughout the year to review open market operations? - ANS the
Federal Open Market Committee (FOMC)
when FOMC decides to sell government securities with interest rates higher than banks pay on
savings accounts, this action removes money from the economy, also known as __________,
makes less money available for loans, referred to as __________, which causes interest rates to
__________. when that happens, __________ money is borrowed, causing the economy to
slow down - ANS disintermediation; making money tighter; rise; less
promissory note - ANS - evidence of a personal debt, contains the names of the parties, the
rate of interest, the amount of money borrowed, and the loan repayment terms
- contract between the lender and the borrower
hypothecation - ANS the pledge of property as security for a loan
a valid mortgage must (5 requirements): - ANS - be in writing
- be signed by the mortgagor
- conform to the same requirements as any valid contract
- contain the legal description of the property
- be witnessed by two persons
when a loan has been paid in full in a lien theory state, the mortgagor should receive a
__________ from the mortgagee within ____ days of the loan payoff - ANS letter of
satisfaction; 60
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 47
, real estate syndicate - ANS an organization formed for the purpose of real estate investment
what is the most common legal entity used in real estate syndication? - ANS a limited
partnership
you can demand a full refund if the rental information provided under a contract is not current
or accurate within how many days? - ANS 30
if you do not obtain a rental, you are entitled to receive a return of ___% of the fee paid, if you
make such demand within 30 days of this contract date - ANS 75%
a fee of $____ is added to the license fee for both new and renewal licenses for brokers in order
to maintain the Recovery Fund - ANS $3.50
a fee of $_____ is added to the license fee for both new and renewal licenses for sales
associates in order to maintain the Recovery Fund - ANS $1.50
income approach - ANS - used to estimate the value that a property's net earning power will
support
- used to estimate the value of income producing property and for the valuation of a business
the government survey method is also known as what? - ANS rectangular method
Tallahassee Principal Meridian - ANS north/south line
Tallahassee Baseline - ANS east/west line
the north/south lines are drawn parallel to the principle meridian and are called ___________,
or ___________ lines - ANS meridians, range
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 47
