State: Florida | Category: Real Estate | All tests in this Category:
Practice Test 1 Practice Test 21. A mortgage recorded against Florida real property is an example of which type of lien?
Mortgages are consensual, voluntary liens created by agreement between borrower and lender.
2. The cost approach is most appropriate for valuing:
The cost approach works best for new or unique properties where comparable sales are limited. Older homes may have significant depreciation, making other approaches more reliable.
3. Reroofing requires a building permit in Florida.
Reroofing typically affects structural safety and requires a permit to ensure proper installation and code compliance.
4. A potential buyer asks a licensee about the seller's bottom-line price. In a single-agent relationship, how should the licensee respond?
In a single-agent relationship, confidential terms (including the seller's bottom-line price) should not be disclosed without consent; provide objective market data instead.
5. Which adjustment is made when a comparable property is smaller than the subject?
If a comparable is smaller than the subject, its price is increased to make it comparable to the subject property.
6. A ceiling fan permanently installed in a home is classified as:
A permanently installed ceiling fan is considered a fixture, thus part of real property.
7. A subordination clause most benefits which party?
The trustor benefits because a new loan can take priority over an existing loan, allowing for additional financing options.
8. Which duty is primarily the responsibility of a Florida landlord in a residential lease?
Florida law requires landlords to maintain residential premises in a habitable condition and comply with applicable building and housing codes; this is a key statutory duty.
9. Which scenario demonstrates lack of capacity and may render a contract voidable?
Minors typically lack full capacity and may disaffirm contracts unless the contract is for necessities or otherwise ratified upon reaching adulthood.
10. The Florida Disclosure of Agency Relationship (BRDA) must be given at which time?
BRDA disclosures must be provided at first substantive contact with a prospective client or customer, before substantial discussions about the property.
11. Effective gross income is calculated by:
Effective gross income = potential gross income – vacancy and collection losses, representing the actual expected income from the property.
12. In Florida, which statement best describes tenancy in common?
Tenants in common may hold unequal shares; there is no right of survivorship and each co-tenant can transfer their interest independently.
13. How many hours of continuing education are required for a Florida license renewal, and what topics are typically included?
Florida requires 14 hours of continuing education per renewal cycle, typically including Core Law and Ethics (among other topics).
14. Private mortgage insurance (PMI) protects the lender against:
PMI provides financial protection to lenders if a borrower defaults on a mortgage with a low down payment.
15. To change the zoning of a parcel from residential to commercial, what is the proper process in Florida?
Rezoning changes the zoning district boundaries; a comprehensive plan amendment would modify land-use designations in the plan, which is a separate process.
16. What type of tax is Florida property tax commonly described as?
Florida property taxes are ad valorem, meaning they are based on the property's value.
17. A mortgage loan where only interest is paid during the term and the principal is due at the end is called:
A straight note, also called an interest-only loan, requires the borrower to pay only interest during the term. The entire principal is due as a lump sum at maturity.
18. In Florida, if the seller responds to an offer with a different price or terms, what is the legal effect?
A response that modifies terms constitutes a counteroffer, thereby rejecting the original offer.
19. Which term refers to property rights that are transferred separately from the land itself?
Appurtenances are rights or interests that are attached to the land but can be transferred with it.
20. Which of the following is typically NOT a zoning relief mechanism?
Rezoning is a reclassification of the zoning district, not a relief from existing requirements. Variance and special exception are relief tools; a rezoning changes district designation.