Determine your answer, then click the arrow to see the correct response.
Which of the Following Statements About Florida's Homestead Exemption Is True?
A) It applies to all properties owned by the homeowner
B) It protects the entire value of the property from creditors
C) It offers tax benefits to homeowners on their primary residence
D) It automatically renews each year without application
Correct Answer: C) It offers tax benefits to homeowners on their primary residence
Explanation: Florida’s homestead exemption provides tax benefits for homeowners on their primary residence, reducing the taxable value of the property.
An Agent Represents a Buyer in a Transaction. The Seller Offers the Agent a Bonus if the Sale Closes Within 30 Days. What Must the Agent Do?
A) Accept the bonus without informing the buyer
B) Refuse the bonus
C) Disclose the bonus to the buyer and obtain their consent
D) Report the bonus to FREC
Correct Answer: C) Disclose the bonus to the buyer and obtain their consent
Explanation: The agent must disclose the bonus to the buyer and obtain their consent to avoid a conflict of interest.
What Type of Contract Is Used To Give a Prospective Buyer the Right To Purchase Property at a Specified Price Within a Certain Period?
A) Exclusive right-to-sell agreement
B) Open listing agreement
C) Option contract
D) Lease-purchase agreement
Correct Answer: C) Option contract
Explanation: An option contract gives the prospective buyer the right to purchase property at a specified price within a certain period.
In Florida, Which Agency Relationship Does NOT Require a Written Disclosure?
A) Single agent
B) Transaction broker
C) No brokerage relationship
D) Dual agent
Correct Answer: B) Transaction broker
Explanation: In Florida, transaction brokers do not require a written disclosure, unlike single agents and no brokerage relationships.
Which of the Following Statements Is True Regarding Escrow Accounts in Florida Real Estate Transactions?
A) Escrow funds can be commingled with the broker’s personal funds
B) Escrow accounts must be interest-bearing
C) Escrow funds must be deposited into an escrow account within three business days
D) The buyer can withdraw escrow funds at any time without penalty
Correct Answer: C) Escrow funds must be deposited into an escrow account within three business days
Explanation: Florida law requires that escrow funds be deposited into an escrow account within three business days of receipt by the broker.
What Is the Primary Function of a Property Management Agreement in Florida?
A) To determine the property’s market value
B) To outline the terms and conditions of the property management services
C) To establish the sale price of the property
D) To document the buyer’s financing terms
Correct Answer: B) To outline the terms and conditions of the property management services
Explanation: A property management agreement specifies the terms and conditions under which the property manager will provide services to the property owner.
Which of the Following Is TRUE Regarding Florida's "As Is" Residential Contract for Sale and Purchase?
A) The seller must repair any defects found during the inspection period
B) The buyer cannot cancel the contract if defects are found
C) The seller is not obligated to make any repairs
D) The buyer must waive their right to an inspection
Correct Answer: C) The seller is not obligated to make any repairs
Explanation: The “As Is” Residential Contract for Sale and Purchase in Florida states that the seller is not obligated to make any repairs, but the buyer has the right to inspect the property and can cancel the contract if defects are found.
In Florida, What Is the Required Disclosure for Properties Located in a Community Development District (CDD)?
A) Flood zone status
B) Radon gas presence
C) Special assessments and fees
D) Property tax history
Correct Answer: C) Special assessments and fees
Explanation: Sellers must disclose to buyers the special assessments and fees associated with properties located in a community development district (CDD).
A Buyer Is Interested in Purchasing a Condominium in Florida. What Document Must the Seller Provide to the Buyer According to Florida Law?
A) Title insurance policy
B) Property inspection report
C) Condominium governance form
D) HOA rules and regulations
Correct Answer: C) Condominium governance form
Explanation: Sellers of condominiums in Florida must provide buyers with a condominium governance form, which includes information about the association and its rules.
What Is the Primary Difference Between a Broker's Price Opinion (BPO) and an Appraisal in Florida?
A) BPOs are only used for residential properties
B) BPOs are less detailed than appraisals
C) BPOs do not require a licensed professional
D) BPOs are legally binding, while appraisals are not
Correct Answer: B) BPOs are less detailed than appraisals
Explanation: A broker’s price opinion (BPO) is generally less detailed and less formal than a full appraisal, which must be conducted by a licensed appraiser and follows stricter guidelines.