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Florida Real Estate Exam Questions and
Answers 2025 Update.
Samuel wants to do a 1031 exchange. He sold his investment property and has identified the property he'd like to buy next. Within how many days must he close on this property in order for it to qualify as part of the exchange? - Correct answer a. 180 b. 30 c. d. a. He has 45 days to identify a property he would like to purchase and 180 days to close on it, from time of sale. In which form of co-ownership is a person's ownership inheritable? - Correct answer a. Joint tenancy b. Tenancy by the entirety c. Tenancy in common d. Tenancy in severalty c. Tenancy in common allows for a persons share to be inheritable, it does not automatically pass forth to the rest of the owners like in joint tenancy (this is called the right of survivorship). How long do prospective tenants have to request a refund after purchasing a rental list? - Correct answer a. 10 days b. 15 days c. 30 days d. 360 days C. 30 days.... tenants have up to 30 days to request a 75% refund if they do not purchase a rental Which method best describes the foreclosure process in Florida? - Correct answer a. Caveat emptor b. Judicial c. Lis pendens d. Non-judicial
b. The state of florida offers a judicial foreclosure process A judicial foreclosure is known as a lien theory process. Basically, the homeowner has legal title to the property... Unlike title theory, where as the owner has equitable title Which of the following statements about the Florida property tax disclosure is NOT true? - Correct answer a. It can be included in the sales contract itself. b. It cautions buyers not to rely on the current year's tax to predict what they'll have to pay. c. It gives buyers a rough estimate of the property tax they'll pay in the coming year. d. It must be provided to sellers when they sign their agency agreement. c. This disclosure doesn't provide any estimates of future property tax amounts. Which act simplifies, clarifies, and modernizes consumer protection laws and makes them more consistent with federal trade laws? - Correct answer a. Fair Housing Act b. Federal Duplicate Law Condensation Act c. Federal Trade Commission Act d. Florida Deceptive and Unfair Trade Practices Act d. The Florida Deceptive and Unfair Trade Practices Act is the act that simplifies, clarifies, and modernizes consumer protection laws and makes them more consistent with federal trade laws. To comply with the statute of frauds, an option contract must be ______. - Correct answer a. In writing and signed by the optionee b. In writing and signed by the optionor c. In writing and witnessed by an attorney d. On file at the local courthouse b. To comply with the statute of frauds, an option contract must be in writing and signed by the optionor (seller).
b. She must disclose potential health threats to anyone in the area when showing the property. c. She must disclose the existence of an environmental hazard in the area. d. The property can't be sold until the site is removed from the NPL. c. A property with a known Superfund site in the vicinity requires disclosure, as this is a material fact. Curtis wants to do a 1031 exchange. He just closed on his property. How many days does he have to identify a new property? - Correct answer a. 180 b. 30 c. 45 d. 60 c. Investors who want to use the 1031 tax-deferred exchange must identify the new property within 45 days of closing and must close on that property within 180 days from the date of sale of the first property. Which option describes a real property tax lien? - Correct answer a. General and involuntary b. General and voluntary c. Specific and involuntary d. Specific and voluntary c. A buyer representation agreement establishes an agency relationship between which parties? - Correct answer a. Buyer and broker b. Buyer and salesperson c. Seller and broker d. Seller and salesperson a. You may hear a buyer representation agreement called the buyer/broker agreement. This is a contract between the buyer and the broker. Remember, all real estate activities are conducted under the broker's license.
What must be filed for the eviction process to begin after a landlord has waited three days and serves a tenant a notice to pay or vacate the premises? - Correct answer a. A complaint for eviction b. A writ of possession c. Evictus nuncus d. The lease a. The eviction process is handled by the court, and it begins when a landlord files a complaint for eviction with the county court. Which of the following could an investor who sells an apartment house buy using a 1031 exchange? - Correct answer a. Duplex, office building, or warehouse b. Duplex only c. Office building only d. Warehouse or office building only a. Any of these would be allowed with a 1031 exchange. Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this? - Correct answer a. Easement by prescription b. Easement in gross c. Express easement d. Visible easement a. Easements by prescription are created through continuous, exclusive, and long-term use of another's property without actual permission. Robin has great credit and was able to secure a loan for her ocean-side dream home. Her 30-year, fixed-rate loan is for an amount that's above conventional loan limits. What type of loan does Robin have? - Correct answer a. A conforming Freddie Mac loan b. A government loan c. An FHA loan d. A non-conforming loan
c. Mortgage and lease d. Residential and commercial b. The two major investment choices for REITs are mortgage and equity. If a property's income value is $200,000 and it's earning a net operating income of $40,000, what is the cap rate? - Correct answer a. 20% b. 25% c. 40% d. 5% a. The cap rate is 20%. To calculate cap rate, divide the income by the property value. The formula for this is rate = income / value. Spark City has built a new city courthouse. The construction caused a landslide, which buried most of Joe's farmland; now it can no longer be used for farmland. Joe is bringing an action against the city for his property loss. What is this an example of? - Correct answer a. Condemnation b. Eminent domain c. Foreclosure d. Inverse condemnation d. Inverse condemnation occurs when action is brought against the government when its police powers have caused an adjacent land owner's property to decrease in value. Joanie sees herself as a mover and shaker, a leader, someone who jumps in and gets things done. She likes to be involved and in charge. When she decides to start investing in real estate, which of these choices is she most likely to select as her investment vehicle? - Correct answer a. A multi- family residential income property b. A real estate investment trust c. A real estate mortgage investment conduit d. A real estate syndicate membership a. Since Joanie seems like an active, hands-on sort of person, she's most likely to choose a residential income property where she'll be in charge of the property rather than passive options like the REIT, REMIC, or syndicate.
Lien Theory What is Florida? Lien Theory or Title Theory? Who holds the title? - Correct answer -Florida is a Lien Theory State -In lien theory states the borrow holds the title and owns the house, but a promissory note signed by the borrower gives the lender the right to seize and sell the house should the borrow default -The document that places a lien on the property is a mortgage Title Theory Who holds the title to the property? Is it easier for a lender to foreclose on a property? - Correct answer - In title theory states, the borrower receives the deed, but the lender keeps the title and owns the house until the borrower pays off the loan -The borrower doesn't "actually" own the property until the mortgage is paid off and the lender releases the deed. -Since the lender already owns the property, it is much easier for a lender to foreclose on a property in a title theory state. Constructive Notice - Correct answer Recordation ensures that the buyer's ownership is protected. It provides constructive notice of the sale/purchase, which means that the record is publicly available to anyone who does a records search. Actual Notice - Correct answer Parties have personal knowledge of the particular event General Warranty Deed - Correct answer A deed in which the grantor fully warrants good, clear title to the premises. Used in most real estate deed transfers, a general warranty deed offers the greatest protection of any deed.
An option contract gives the potential buyer, who is known as the optionee, the right to purchase the property of the seller, or optionor, as some time in the future Energy Efficiency brochure - Correct answer Requires buyers to receive a brochure before or at the time of executing the sales contract, about the option of receiving an energy efficiency rating on the property being purchased Property Tax Disclosure - Correct answer buyers should not rely on the sellers current property taxes as the amount of property taxes the buyers may be obliged to pay in the year subsequent to purchase. a change in ownership or property improvements triggers reassessments of the property that could result in higher property taxes form-based planning - Correct answer City planning where experts of different fields work together Traditional based planning - Correct answer Specialists from different areas of expertise work separately and focus on designing "their" areas What is the difference between a variance and a special use permit? A. A special use permit is permanent, whereas a variance is temporary. B. A special use permit requires a show of hardship; a variance doesn't. C. A variance is permanent, whereas a special use permit is temporary. D. A variance requires a show of hardship; a special use permit doesn't. - Correct answer D. A variance requires a show of hardship; a special use permit doesn't What is a comprehensive plan? A. A blueprint for new construction projects B. A detailed plan that supplements a master plan and its implementation C. A long-term master plan for the development of a city or county D. A map of all of the zones in a district - Correct answer C. A long-term master plan for the development of a city or county FAR, or floor area ratio, includes ________.
A. All of the habitable structures on a lot B. All structures, including habitable structures and parking structures, but not parking lots C. None of the habitable structures on a lot D. The area within parking lots or parking structures - Correct answer A. All of the habitable structures on a lot You're on a planning board that's discussing how to keep the city more livable by reducing building density. The subject of bulk zoning comes up. What is your response? A. "That applies to commercial areas only." B. "That's a great way to meet our objectives." C. "That's crazy. We're trying to reduce density, not increase it." D. "That will work for residential areas, but what about commercial?" - Correct answer B. "That's a great way to meet our objectives." What's the next step in the adoption process for a comprehensive plan once the background studies have been performed? A. Developers bid on areas they would like to develop. B. Residents vote on the plan. C. The plan is reviewed at a public hearing by the local legislative body. D. The plan is reviewed at a public hearing by the planning commission. - Correct answer D. The plan is reviewed at a public hearing by the planning commission. Who or what entity determines the final results of the comprehensive plan? A. The commission and local legislative body, with input from the public B. The governor C. The planning commission D. The public - Correct answer A. The commission and local legislative body, with input from the public What purpose does bulk zoning serve? A. It homogenizes the look of the area. B. It keeps similar races together. C. It provides increased density.
Ginnie Mae (GNMA or the Government National Mortgage Association) purchases government loans on the secondary market. Homeowners may transfer the SOH benefit to a subsequent home. In order to do this, their homestead exemption must have been in place on their current home for _________________ preceding years. A. One of the previous two B. The last 10 C. The last five D. The last two - Correct answer A. One of the previous two "The homestead exemption must have been in place for one of the two preceding years, and the benefit transferred is limited to $500,000." How does the Federal Housing Finance Agency affect mortgages? A. It acts as a watchdog and focuses specifically on educating consumers about mortgage loans. B. It controls how much money is available to banks. It also controls interest rates, which affect how much mortgages cost. C. It lends money to other financial institutions (not end-users), which makes more money available for mortgages and keeps down the costs of borrowing money. D. It sets limits for conforming loans and controls the amount of money that lower-income people can borrow. - Correct answer D. It sets limits for conforming loans and controls the amount of money that lower-income people can borrow. "The FHFA sets limits for conforming loans and controls the amount of money that lower-income people can borrow, which helps prevent housing market-related financial crises." In what year was the Americans with Disabilities Act made law? A. 1950 B. 1978 C. 1988 D. 1990 - Correct answer D. 1990 What is the most likely effect when the Fed sells securities on the open market?
A. Banks will have more money to lend. B. Interest rates will decrease. C. The economy may grow due to an increased money supply. D. The economy may slow down due to a decreased money supply. - Correct answer D. The economy may slow down due to a decreased money supply. "When the Fed sells securities, it takes money out of the market. This decreases the supply of money in the market and potentially slows down the economy." Someone who's been given the authority to act on behalf of someone else is a(n) ______. A. Agent B. Client C. Mortgage lender D. Trustor - Correct answer A. Agent "The term agent, though often used to refer to a real estate licensee, means someone who's been given the authority to act on someone else's behalf in some capacity." To comply with the statute of frauds, an option contract must be ______. A. In writing and signed by the optionee B. In writing and signed by the optionor C. In writing and signed by the optionor On file at the local courthouse - Correct answer C. In writing and signed by the optionor To comply with the statute of frauds, an option contract must be in writing and signed by the optionor (seller). Which two duties of the transaction broker are shared with the single agent? Account for all funds and obedience Confidentiality and full disclosure Maintain limited confidentiality and deal honestly and fairly
individual is not a trade name; therefore he can't register Sirius Shepard Realty. "Sirius would only be able to register Sirius Seasoned Sales as a trade name and not Sirius Shepard Realty because his actual name is not considered a trade name." Before beginning development of a condominium building, what must the developer do? Create an estimated operating budget Create the condo association Record a declaration of condominium Record a declaration of intent - Correct answer Record a declaration of condominium "The developer must record a declaration of condominium before beginning development. This is recorded in county records where the property will be located." In Florida, which of the following scenarios is considered a violation of FTC advertising rules? Marcy just listed the Brown property with the following description: "2, square feet of living space for a total of 2,800, including two outbuildings and an unfinished garage." Sarah has just started her career as a solo agent and decides to try a new marketing campaign slogan: "Come let our team of hard-working agents find you the home of your dreams!" Shelia just closed on the Martin property yesterday. She's taken down all the signs and online listings for it. Virginia posted an MLS listing for the Kennedy property without her principal broker's approval. - Correct answer Sarah has just started her career as a solo agent and decides to try a new marketing campaign slogan: "Come let our team of hard-working agents find you the home of your dreams!"
"While it may seem innocent enough, claiming to be a part of a team when you aren't is misleading and deceptive advertising." Luke recently moved from a condominium to a cooperative. With a cooperative, his share of mortgage interest and real estate taxes will be ______. Considered as capital gains Deductible on his personal income tax returns Fully refundable to him Not deductible on his personal income tax returns - Correct answer Deductible on his personal income tax returns As the resident in a cooperative, his share of mortgage interest and real estate taxes is deductible on personal income tax returns. Stefan is an unlicensed assistant for the Ace Team at Acme Realty in Florida. Which of these activities can he perform? Calculate commissions for team members. Explain listing information to a client. Host an open house. Solicit business for the team. - Correct answer Calculate commissions for team members. "Unlicensed assistants can't perform any activities that require a real estate license. Prohibited activities include hosting open houses, showing homes, explaining listing information to a consumer, and soliciting business, among others." Juan secures a fixed rate amortized 30-year loan for $295,000 at 4.25%. If his monthly P&I payment is $1,750, how much interest does he pay in the second month of the loan? $1,038. $1,042. $1,044. $1,750 - Correct answer $1,042.
General vs. Special Agents - Correct answer General agents have an ongoing responsibility for all of the dealings related to a specific piece of property. an example of this would be a property manager Special agents: have limited authority to act on behalf of their clients. Buyer and seller agents fall into this category Sub-agent - Correct answer sub agent works for another agent, who is representing the seller, so the sub agent indirectly works for the seller What are the three duties licensees owe to all customers and clients? - Correct answer D ealing honestly and fairly A ccounting for all funds D isclosing all known facts that materially affect the value of the property (DAD) Transaction Broker - Correct answer - Transaction broker is the presumed agency in florida and is the only relationship that does not require a written disclosure to be signed... A transaction broker is a broker who provides a limited form of representation to the buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity. D ealing honesty and Fairly A ccounting for all funds D isclosing all known facts that materially affect the value of residential real property P resenting all offers and counter-offers in a timely manner U sing skill, care and diligence in all transactions M aintaining confidentiality A ny additional duties that are entered into written agreement Licensees who have no brokerage relationship still have duties to potential sellers and buyers - Correct answer D A D debt service ratio - Correct answer This is used to determine whether the a properties income will cover its monthly mortgage payments
this is calculated by diving NOI/annual debt service A DCR of less than one indicates negative cash flow Prorated Expenses - Correct answer Typically the seller pays the costs for property taxes, utilities, etc. on the day of closing Prorations can be calculated one of two ways 1). using a statutory year (360 days) 2.) calendar year (365 days) The real estate taxes assessed on the property are $785 for the year. The taxes arent due until the following january 1st. Closing is held on May 31st... Here is how that would look on the closing statement - Correct answer Accrued period of taxes owed by the seller at closing using the statutory year:
- $785.00/12 = $65.42 per month -$65.43 x 5 full months (jan 31st- May 31st) = $327. The seller will recieve a "debit" and buyer a "credit" the seller is paying for his 5 months of property taxes from january to may Now, what if the seller is closing mid month, lets say June 15th? Well... we would just divide that monthly fee of 65.42 and divide it by 30. that would get us a daily amount of $2.18, we then multiply that by 15 and add that to the previous 5 months... Documentary stamp tax - Correct answer - Paid at a rate of 70 cents per $
- Commonly paid by the seller Documentary stamp tax on notes - Correct answer - calculated at a rate of 35 cents for every $100 of the unpaid balance once the note is executed Intangible Tax on New Mortgages - Correct answer NEW loan amount x $.002 = cost of intangible tax
