Real Estate Exam Simulator (100 Questions, 3 Hours, 100% to Pass, Unlimited retakes) Updated Version 2023 Questions You Answered Incorrectly
3. All of the following services require a real estate license, EXCEPT:
(a) Leasing (b) Mortgaging (c) Buying (d) Selling
Your answer: a
Correct Ans: b
The most common services of real estate requiring a real estate license are appraising (in a non-federally related transaction), buying, auctioning, renting, selling, advertising real estate services, leasing, and exchanging. F.S. 475.01 specifies the services that require a valid active real estate license to perform. As discussed in Chapter 1, mortgage loan originators require a separate license issued by the FDFS.Reference: Chapter 2, Activities Requiring a Real Estate License, Statutory Services of Real Estate, Memory Device: "A BAR SALE"
- Jones, Smith, and Charles bought a parcel of land with equal and undivided interest. Jones and Smith were brokers and Charles was not. Jones and Smith decided to let Charles handle the resale of
the land. Charles had no experience but managed to find someone that bought the property. Because of this, Jones and Smith decided to give Charles 40% of the profit and divide the balance equally.Which of the following applies?(a) Since Charles is selling his own land, Charles does not have to be registered.(b) Charles can do this because Jones and Smith are brokers.(c) Charles can do this if Charles is an attorney.(d) Chapter 475 has been violated.
Your answer: a
Correct Ans: d
A partner would need a license if receiving a portion of the profits not in line with their ownership proportion.Reference: Chapter 5, Types of Business Formations, Real Estate Brokerage Partnership
- A property in Palm Beach County recently sold for $220,000. The purchaser arranged an 80% loan to finance the property. Calculate the documentary stamp tax on the deed.
(a) $770 (b) $1,232 (c) $1,320 (d) $1,540
Your answer: b
Correct Ans: d
Currently, the tax on the deed is calculated at the rate of $.70 per $100 of value, or fractional part thereof, based on the sales price of the property, other than in Dade County, which is calculated at a rate of $.60 per $100 of value. In the absence of any agreement to the contrary, the seller would be responsible for the payment of this tax.
Step 1: $220,000 Sales Price ÷ $100 = 2,200 tax units
Step 2: If any decimals had resulted, the number of tax units would have been increased to the next higher whole number.Step 3: 2,200 tax units x $0.70 = $1,540 State documentary tax on the deed, which would normally be a debit to the seller.
Reference: Chapter 14, Expenses, State Documentary Stamp Tax on the Deed
- A property owner is registered on both the state and federal "do not call" lists. Which statement correctly applies to solicitation calls to this owner by a licensee?
(a) Calls may only be made between 9:00 a.m. and 8:00 p.m.(b) Calls may not be made when representing a buyer.(c) Calls could result in a fine of up to $15,000.(d) Calls are not permitted when attempting to obtain a listing.
Your answer: a
Correct Ans: d
A licensee may call an owner whose name appears on a "do not call" list when representing a buyer interested in buying the property but may NOT use the showing in an attempt to obtain a listing.
Reference: Chapter 7, Telephone Solicitation Laws
- Complete the statement. When determining prorations on a closing statement, the day of closing: (a) belongs to
the closing agent.(b) is determined by agreement.(c) is the responsibility of the seller.(d) is charged to the buyer.
Your answer: a
Correct Ans: b
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When calculating prorations, the day of closing may, by agreement, be entirely allocated to the seller or to the buyer, regardless of the time of day the closing takes place. The day of closing, therefore, "belongs to" either the seller or the buyer for purposes of prorating. If the day of closing were to be the "seller's day," prorations would be calculated as of midnight, the day of closing. If the day of closing were to be a "buyer's day," the calculations would be as of midnight the day before closing.
Reference: Chapter 14, Prorations and Prepayments, Day of Closing
- A house is valued at $65,000.00. The monthly rent is $500.00, monthly debt service is $375.00, and annual taxes are $840.00. If there are no other expenses, what is the
GRM?(a) 75 (b) 80 (c) 130 (d) 108.3
Your answer: b
Correct Ans: c
GRM = Price ÷ Gross monthly rent = $65,000 ÷ $500 = 130
Reference: Chapter 16, Income Approach, Gross Multiplier Technique - GRM
- A man wanted to buy a $39,000 house. He was told the sale price couldn't exceed 2.5 times his income. How much must he earn per week? (a) $7,250
(b) $300 (c) $350 (d) $375
Your answer: c
Correct Ans: b
Math Concept: 2.5 x Annual income = $39,000; Annual income / 52 weeks = earnings needed per week Solution: Annual Income
= $39,000 ÷ 2.5 = $15,600
Earnings needed = $15,600 Annual income ÷ 52 weeks = $300 per week
Reference: Chapter 12 (General math computation)
- A sales associate collected a $4,800 commission on the sale of the NE 1/4 of the NW 1/4 of the SW 1/4 of a section. The broker's share of the 10% commission was 60%. How much did the property
sell for per acre?(a) $8,000 (b) $10,000 (c) $12,000 (d) $120,000
Your answer: b
Correct Ans: c
Sales associate share is 40%. $4,800 = Total commission x 40%, so the Total commission = $4,800 ÷ 0.40 = $12,000, which is 10% of the Sales price. $12,000 Commission = Sales price x 0.10; Sales price = $12,000 ÷ 0.10 = $120,000; Acreage = 640 ÷ 4 ÷ 4 ÷ 4 = 10 acres; Cost per acre = $120,000 ÷ 10 acres = $12,000.Reference: Chapter 10, Calculating Acreage in a Parcel from a Legal Description; See also, Chapter 11, Listing Contracts, Calculating a Brokerage Commission
- An investor realizes a net income of $925 per month on a $111,000 investment. What is his yield (return on investment)? (a) 9%
(b) 10% (c) 11% (d) 12%
Your answer: d
Correct Ans: b
Solution: Annual income = $925 x 12 months = $11,100;
Return = $11,100 Annual income ÷ $111,000 Investment = 0.10 or 10%
Reference: Chapter 17, Evaluating Investment Properties
- Clifford is a developer and he wishes to build a shopping center. In order to build it he must combine 5 smaller pieces of land into one large lot. What is this process know as?
(a) Plottage (b) Leverage (c) Assemblage (d) Nonconforming use
Your answer: a
Correct Ans: c
Combining smaller lots into a larger lot is assemblage. The increase in value caused by assemblage is called plottage. Reference: Chapter 16, Appraisal Concepts and Definitions, Types of Value - Plottage Value
- What is a broker associate?
(a) A broker who employs sales associates (b) A sales associate (c) A broker who is employed as a sales associate (d) A sales associate who is employed as a broker
Your answer: d
Correct Ans: c
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