Florida Pre-License Questions. Please answer all 10 questions. Thanks in advance!

1. Mary is a real estate broker who is looking to enter into a listing agreement to sell David's house. Why would David prefer to enter into an Exclusive Agency agreement rather than an Exclusive Right to Sell agreement?

A. The Exclusive Agency agreement will allow David to not pay a commission to Mary.

B. The Exclusive Agency agreement will allow David to work with more than one broker.

C. The Exclusive Agency agreement gives David the option to find a buyer himself and not have to pay Mary a commission.

D. The Exclusive Agency agreement limits the amount paid in commission to only 3% of the sales price.

2. Arthur paid $106,500 for a large lot. If he paid $88.75 per acre, how many acres did he buy?

A. 460 acres

B. 1,200 acres

C. 620 acres

D. 520 acres

3. A military spouse with an active New York real estate license has relocated with his wife to a duty station in Jacksonville . What does the husband need to do to get his FL real estate license?

A. He needs to submit the relevant supporting documentation in order to be issued a license without taking an exam.

B. He can practice real estate in Florida without applying for a license because he qualifies for a military exemption.

C. He can apply for permission from his wife's commanding officer to sell properties to military families relocating to the area.

D. He must complete the 63-hour pre-licensing course and pass the state licensing exam.

4. Net operating income is a before-tax figure used to analyze the profitability of income-generating real estate investments. Which of the following would not be used to calculate NOI?

A. Subtraction of operating expenses.

B. Subtraction of vacancy rate.

C. Estimation of annual gross income.

D. Calculation of replacement cost.

5. John owns a small rental cottage in St Augustine and his mother Brenda lives nearby in a rented apartment. He is concerned about her having a secure home to live in after her retirement so he decides to convey the cottage to her for the rest of her life, after which, ownership will revert to him. What would John's attorney probably have advised him to do to achieve these goals?

A. Convey a tenancy at sufferance to Brenda.

B. Convey a life estate to Brenda with the right of reversion to John.

C. Establish a Trust with his mother as one of the trustees.

D. Convey a tenancy by the entireties to Brenda, pur autre vie.

6. A veteran has applied for a VA loan to finance a house that he wants to buy. The Certificate of Reasonable Value indicates that the property is worth $115,000 but the sellers will not accept less than $125,000. Can the veteran still use VA financing to buy the house?

A. Not unless the sellers agree to drop the price since the Certificate of Reasonable Value is the highest price that can be paid.

B. Yes, the veteran can use his own savings to pay the amount in excess of the VA certified value as a down payment and use the VA financing for the rest.

C. No, the veteran cannot use his VA guarantee because the home is priced higher than the reasonable value.

D. Yes, as long as the veteran gets a second mortgage to make up the difference between the certified value and the price.

7. Why would a school building be appraised using the cost approach?

A. A school building is a unique building that will most likely not have any comparable sales.

B. A school building is considered an income producing property.

C. A school building is considered a residential property.

D. A school building will have two or more comparable sales to use.

8. A person has completed a pre-license course of 63 classroom hours, 50 minutes each. At the end of the course she scored an 85% on the test and she has filed the appropriate fees and paperwork to obtain a license. She took the state examination within the proper time period and scored 80% on the test. She has not found a broker to place her license. What does this situation mean?

A. The person did not pass the test; the scores were too low.

B. The person is entitled to an active sales associate license.

C. The person is entitled to an inactive sales associate license.

D. The person is entitled to a brokers license.

9. Miami is realizing a boom in an area of low priced housing with beautiful palm trees. The location is reasonably close to public transportation and within a short ride of downtown office buildings. Many buyers are buying up these old, low priced homes and bulldozing them down. They are then building new $500,000 homes on the sites. This is an indication of what principle of value?

A. Highest and best use

B. Contribution

C. Substitution

D. Conformity

10. Alex is a transaction broker who represents the seller in a transaction. The seller is looking to sell their single-family home. Based on the following facts, what is Alex required to disclose to prospective buyers: 1) There are cracks in the house's foundation. 2) The house has not been painted in over 20 years. 3) Based on the local zoning laws, the house cannot be expanded.

A. Alex must disclose the cracks in the foundation only, since this is considered a material fact.

B. Alex must disclose all three of these facts since a transaction broker must disclose everything he knows about the property.

C. The seller must disclose the cracks in the foundation, and Alex must disclose the remaining two facts.

D. Alex does not have to disclose anything since transaction brokers are not required to do so.