There are two adjoining properties. An easement allows property A to use the access road that belongs to property B. In this situation, property B is said to be which of the following in relation to property A

a.    Dominant tenement

b.    Subordinate tenant

c.    Servient estate  

d.    Conditional life tenant

A parcel is described as the SW 1/4 of the N 1/2 of the E 1/2 of Section 14. What is its acreage?

a.    160 acres   

b.    80 acres

c.    40 acres   

d.    20 acres

To derive value using the income capitalization approach,one must
a.    divide the capitalization rate by net income.

b.    multiply net income times the capitalization
               rate.

c.    divide the capitalization rate into net income.

d.    multiply cash flow by the capitalization rate.

An office building rents for $600,000, has expenses of $400,000, and a cash flow of $100,000. The prevailing gross rent multiplier is 8. Using the GRM, what is the value of the building?

 a. $800,000   

 b.    $1,600,000

 c. $3,200,000   

 d.    $4,800,000

An important characteristic of a promissory note is that

 a.    it is assignable.

b.    it must be secured by collateral.    

 c.    it is not a negotiable instrument.

 d.    it must be recorded to be enforceable.

A borrower earns $3,000/month and makes credit card and car note payments of $500. A conventional lender requires a 27% income ratio. What monthly amount for housing expenses (principal, interest, taxes, insurance) will the lender allow this person to have in order to qualify for a conventional mortgage loan?

a. $810  

  b.675

c. $972  

  d.1,040

A $250,000 interest-only loan carries a 7% rate. Monthly payments are

a.  $1,750.

b. $1,458.

c. $17,500.

d.    Cannot be determined without loan term data.

The capital gain on sale of an investment is computed as

a.    beginning basis plus gain.

b.    sale price minus beginning basis.

c.    net sales proceeds minus beginning basis.

d.    net sales proceeds minus adjusted basis.

The formula for return on equity is

a.    cash flow divided by equity.

b.    required yield times gross income.

c.    net operating income divided by equity.

d.    cash flow times the capitalization rate.

Mary Bright bought a home for $80,000, paying $10,000 down and taking a mortgage loan of $70,000. The following year she had a new roof put on, at a cost of $2,000. What is Mary's adjusted basis in the house if she now sells the house for $100,000?

a. $12,000   

b.    $72,000

c. $18,000   

d.    $82,000

An office building has a potential income of $500,000 and vacancy of 10%. Its cash-paid bills total $300,000, and annual depreciation is $5,000. Payments on the loan total $100,000. What is the property's pre-tax cash flow?

a. $45,000   

b.    $50,000

c. $150,000   

d.    $155,000

A canal dredging project is to cost $100,000. There are 40 properties along the canal, and 40 others across the street from the canal. The total canal footage to be dredged is 2,500 feet. How much will the assessment be for a 150-foot property on the canal?

a. $1,250

b. $3,000

c.    $2,500

d.    $6,000

One aim of the statute of frauds is to

a.    set time limits for disputing contract provisions.

b.    require certain conveyances to be in writing.

c.    prevent fraudulent assignments of listing
         agreements.

d.    make all oral agreements unenforceable.

An agent obtains a listing which ensures compensation for procuring a customer, provided the agent is the procuring cause. This agent has entered into a(n)

a.    exclusive right-to sell agreement.

b.    exclusive agency agreement.

c.    open listing.

d.    net listing.

A landlord promises to compensate a broker for procuring a tenant, provided the landlord's brother decides not to rent the property within a month. This would be an example of a(n)

a.    exclusive right-to-lease agreement.

b.    exclusive agency agreement.

c.    open listing.

d.    net listing.

A sale transaction on rental property closes on December 16. The landlord received the December rent of $713 on December 1. Assuming the closing day is the seller's, and that the 365-day method is used for prorating, which of the following entries would appear on the settlement statement?

a.    Debit seller $345.00

b.    Credit seller $713.00

c.    Debit buyer $345.00

d.    Credit buyer $368.00

A broker took earnest money from a buyer. He deposited the money in the trust account, but when his electric bill was due, the broker deposited the buyer's money into the broker's business account. This is:

a) Misrepresentation.
b) Puffing.
c) Commingling.
d) Conversion.

Which CANNOT register with the Department to perform real estate services to the public?

a) A sole proprietor
b) A corporation
c) A partnership
d) A corporation sole

The principal statutes affecting the investigative and litigation activities of the Antitrust Division are the:

a) Statue of Frauds Act.
b) Sherman and Clayton Acts.
c) Statute of Agency Act.
d) Truth in Lending Act.

______was enacted because Congress felt that consumers needed protection from "... unnecessarily high settlement charges caused by certain abusive practices that have developed in some areas of the country."

a) Truth In Lending Law (Regulation Z)
b) Real Estate Settlement Procedures Act (RESPA)
c) Sherman Anti-Trust Law (SATL)
d) The Settlement Charges Abuse Act (TSCAA)

What Florida agency is responsible for investigating real estate complaints?

a) FREC
b) The Governor's office
c) DBPR
d) DAH

___________________________provides independent Administrative Law Judges to conduct hearings pursuant to Florida Statutes, pursuant to other law, and under contract with governmental entities.

a) The Division of Administrative Hearings (DOAH)
b) The Division of Real Estate in Florida
c) The Division of Housing and Urban Development
d) The Division of Florida Statutes and Laws

he__________administers and enforces the real estate license law, Chapter 475, Part I, Florida Statutes.

a) HUD
b) RESPA
c) FREC
d) FNMA