FLORIDA REAL ESTATE CLASS FINAL EXAM

FLORIDA REAL ESTATE CLASS FINAL EXAM

QUESTIONS AND DETAILED CORRECT

ANSWERS AGRADE 2024

RATED

Which is an example of a voluntary lien?

• construction
• special assessment
• mortgage
• tax certificate - ANSWER✔✔C.

A Vendor's lien is an example of

• general lien
• involuntary lien
• lien against the purchaser
• specific lien - ANSWER✔✔D. Specific lien - affects only the specific property

What is opposite of North 9 degrees East? - ANSWER✔✔South 9 degrees West Which parcel of land contains exactly 4 acres?

• 330' x 396' 1 / 4

• 330' x 462'
• 400 x 4.356'
• 528' x 330' - ANSWER✔✔D. (528 x 330 = 174,240 divided by 43,560 = 4)

Starting at the SE corner of a section thence West 660 ft to a point, thence North 330 ft to a point, thence East 660 ft to a point and thence to the point of beginning. This tract contains how many acres?

• 2
• 3
• 4

D. 5 - ANSWER✔✔...A

which tract of land has a perimeter of 834.84 linear feet?

• 100.00' x 834.84'
• 100.00' x 417.42'
• 200.84' x 215.84'
• 208.71' x 208.71' - ANSWER✔✔D. (208.71 + 208.71 + 208.71 + 208.71 = 834.84)

Before Tax Cash Flow is what? - ANSWER✔✔net operating income minus debt service "Current market value less mortgage debt" describes what term? - ANSWER✔✔equity Which is NOT a benefit of investing in real estate?

• depreciation allowance that reduces taxable income
• hedge against inflation 2 / 4

• liquidity
• positive leverage - ANSWER✔✔liquidity

Which type of risk is associated with the loss of purchasing power due to an unexpected increase in inflation?

• business
• interest rate
• liquidity
• purchasing power - ANSWER✔✔Purchasing Power

Positive Leverage

• increases the return on equity from using debt financing
• is selling an investment property at a profit
• is the difference between a high interest rate and a lower interest rate
• is the difference between a high rate of return on RE and a lower return on other

types of investments - ANSWER✔✔increases the return on equity from using debt financing The use of leverage

• has no effect on the yield on investment
• may increase or decrease the yield on investment
• Will decrease the yield on investment
• will increase the yield on investment - ANSWER✔✔MAY increase or decrease the

yield on investment 3 / 4

Regarding the RE market, which statement is TRUE?

• Govt regulations have little influence on the market
• The market is influenced by the immobility of RE
• the market is not influenced by the physical characteristics of land
• The market is quick to respond to changes in supply and demand - ANSWER✔✔

The market is influenced by the immobility of RE Regarding the RE market, which statement is FALSE? The market is

• Influence by the immobility of land
• regulated by FREC and the DBPR
• segmented into submarkets
• slow to adjust to changes in supply and demand - ANSWER✔✔B. regulated by

FREC and the DBPR The price of RE increases. Which will likely occur?

• RE rental rates will increase
• RE sales will not be affected.
• The demand for RE will increase
• The interest rate will decrease - ANSWER✔✔A. RE rental rates will increase

Which variable influences the supply of new real estate?

• availability and cost of construction financing
• income of consumers
• / 4