BOB HOGUE PRACTICE EXAM 9/2025 (BOB HOGUE
SCHOOL OF REAL ESTATE - FLORIDA REAL ESTATE
PRINCIPLES, PRACTICES & LAW LINDA CRAWFORD
44TH EDITION) 117 UPDATED QUESTIONS WITH
CORRECT ANSWERS.
What authority originates from the U.S. Constitution and relates to protection
of health and welfare of citizens at local levels?
A)
Situs
B)
Community protection power
C)
Escheat
D)
Police power Answer - D)
Police power
Police power - The authority of government to protect the property, life,
health, and welfare of its citizens.
,Situs refers to prospective buyers' preference for a certain area.
Escheat provides for a government, normally a state government, to take the
property of an owner who dies intestate and who has no known heirs entitled
to receive the property. The power of escheat is a practical solution to ensure
that property is always owned by someone.
You have been hired to appraise the local public library building. The approach
that is likely to be the MOST relevant is the
A)
comparable sales approach.
B)
income approach.
C)
public land and property approach.
D)
cost approach. Answer - D)
cost approach.
single-family homes / a vacant lot in an established neighborhood - sales
comparison approach
income-producing property - income approach
special-purpose properties like hospitals, schools, or government buildings,
newly constructed homes, cross-checking the other two approaches - cost
approach
,Three claimants are requesting relief from the Real Estate Recovery Fund. All
three claimants were named in a single judgment (the same real estate
transaction). What is the maximum payment from the Recovery Fund for this
claim?
A)
$75,000
B)
$1,000,000
C)
$150,000
D)
$50,000 Answer - D) $50,000
The maximum payment from the fund for a single transaction is $50,000
T / F - Brokers and sales associates should NOT prepare deeds, mortgages, or
promissory notes. Answer - T - Unless they are also attorneys, brokers and
sales associates who prepare such legal documents could jeopardize their real
estate licenses.
T / F - A buyer brokerage agreement is an employment contract between the
brokerage and a buyer. Answer - T - A buyer brokerage agreement is an
employment contract with a buyer.
T / F - The statute of limitations for an oral contract is five years. Answer - F -
The statute of limitations for an oral contract is four years.
T / F - Love and affection is an example of valuable consideration. Answer - F -
Love and affection is an example of good consideration because it cannot be
measured in terms of money.
, T / F - An implied contract is one in which some or all of the obligations or
conditions of a contract are NOT stated expressly. Answer - T - With an implied
contract, the obligations or conditions of the contract may be reasonably
implied by the acts of the parties or by the nature of the transaction.
T / F - A signed sale contract between the time of signing and the time of title
closing is an executed contract. Answer - F - A sale contract between the time
of signing and the time the title is conveyed from the grantor to the grantee is
an executory contract.
T / F - A real estate contract that includes a radon gas contingency is a voidable
contract. Answer - T - A real estate contract that includes a radon contingency
is voidable because if the contingency is not satisfied and released, the offer
and acceptance element of an enforceable contract is not met.
T / F - A real estate sale contract is an example of a bilateral contract. Answer -
T - A bilateral contract obligates both parties to perform in accordance with the
terms of the contract. A sale contract is a bilateral contract because both the
seller and the buyer are obligated to perform.
T / F - The person making an offer is the offeree. Answer - F - The offeree is the
person receiving the offer.
makes offer - offeror
receives offer - offeree
T / F - An electronic signature can be accepted as part of a real estate contract.
Answer - T - Letters and other written communications, including a signature,
may be sent by electronic means or facsimile, and will be considered part of
the contract.
SCHOOL OF REAL ESTATE - FLORIDA REAL ESTATE
PRINCIPLES, PRACTICES & LAW LINDA CRAWFORD
44TH EDITION) 117 UPDATED QUESTIONS WITH
CORRECT ANSWERS.
What authority originates from the U.S. Constitution and relates to protection
of health and welfare of citizens at local levels?
A)
Situs
B)
Community protection power
C)
Escheat
D)
Police power Answer - D)
Police power
Police power - The authority of government to protect the property, life,
health, and welfare of its citizens.
,Situs refers to prospective buyers' preference for a certain area.
Escheat provides for a government, normally a state government, to take the
property of an owner who dies intestate and who has no known heirs entitled
to receive the property. The power of escheat is a practical solution to ensure
that property is always owned by someone.
You have been hired to appraise the local public library building. The approach
that is likely to be the MOST relevant is the
A)
comparable sales approach.
B)
income approach.
C)
public land and property approach.
D)
cost approach. Answer - D)
cost approach.
single-family homes / a vacant lot in an established neighborhood - sales
comparison approach
income-producing property - income approach
special-purpose properties like hospitals, schools, or government buildings,
newly constructed homes, cross-checking the other two approaches - cost
approach
,Three claimants are requesting relief from the Real Estate Recovery Fund. All
three claimants were named in a single judgment (the same real estate
transaction). What is the maximum payment from the Recovery Fund for this
claim?
A)
$75,000
B)
$1,000,000
C)
$150,000
D)
$50,000 Answer - D) $50,000
The maximum payment from the fund for a single transaction is $50,000
T / F - Brokers and sales associates should NOT prepare deeds, mortgages, or
promissory notes. Answer - T - Unless they are also attorneys, brokers and
sales associates who prepare such legal documents could jeopardize their real
estate licenses.
T / F - A buyer brokerage agreement is an employment contract between the
brokerage and a buyer. Answer - T - A buyer brokerage agreement is an
employment contract with a buyer.
T / F - The statute of limitations for an oral contract is five years. Answer - F -
The statute of limitations for an oral contract is four years.
T / F - Love and affection is an example of valuable consideration. Answer - F -
Love and affection is an example of good consideration because it cannot be
measured in terms of money.
, T / F - An implied contract is one in which some or all of the obligations or
conditions of a contract are NOT stated expressly. Answer - T - With an implied
contract, the obligations or conditions of the contract may be reasonably
implied by the acts of the parties or by the nature of the transaction.
T / F - A signed sale contract between the time of signing and the time of title
closing is an executed contract. Answer - F - A sale contract between the time
of signing and the time the title is conveyed from the grantor to the grantee is
an executory contract.
T / F - A real estate contract that includes a radon gas contingency is a voidable
contract. Answer - T - A real estate contract that includes a radon contingency
is voidable because if the contingency is not satisfied and released, the offer
and acceptance element of an enforceable contract is not met.
T / F - A real estate sale contract is an example of a bilateral contract. Answer -
T - A bilateral contract obligates both parties to perform in accordance with the
terms of the contract. A sale contract is a bilateral contract because both the
seller and the buyer are obligated to perform.
T / F - The person making an offer is the offeree. Answer - F - The offeree is the
person receiving the offer.
makes offer - offeror
receives offer - offeree
T / F - An electronic signature can be accepted as part of a real estate contract.
Answer - T - Letters and other written communications, including a signature,
may be sent by electronic means or facsimile, and will be considered part of
the contract.
