Step2Study

Florida Real Estate Sales Associate Examination Content Outline practice questions

214 free questions with answers and explanations.

Practice test
  1. 1.A land surveyor is preparing a legal description for a large, irregularly shaped parcel of land located in a rural area where natural monuments and boundaries are prominent. Which legal description method is MOST likely to be used for this property?Real Estate Property and Ownership
  2. 2.A married couple in Florida wants to purchase an investment property and ensure that if one spouse dies, the surviving spouse automatically inherits the deceased spouse's share without the need for probate. Which form of concurrent ownership should their real estate agent recommend?Real Estate Property and Ownership
  3. 3.A land parcel is shaped like a trapezoid with parallel sides measuring 150 feet and 250 feet, and a perpendicular distance between them of 200 feet. What is the area of this parcel in square feet?Real Estate Math
  4. 4.A property owner wants to sell their home but discovers that a utility company has the right to run power lines across a portion of their backyard, even though no active lines are currently present. This right was granted years ago by a previous owner. What type of interest does the utility company hold?Real Estate Property and Ownership
  5. 5.A residential property sold for $420,000. The buyer's closing costs, excluding the down payment, totaled $12,500. The seller's closing costs, including the commission, amounted to $28,000. What are the net proceeds for the seller from this transaction?Real Estate Math
  6. 6.A buyer is reviewing a property survey that shows a utility company has the right to run power lines across a portion of the property. This right is granted to the utility company for the benefit of providing services to the general public, not specifically for an adjoining property. What type of encumbrance is this?Real Estate Property and Ownership
  7. 7.A buyer is interested in a property that includes a detached shed, a custom-built gazebo, and several fruit-bearing trees. During negotiations, the seller states they intend to remove the shed and gazebo before closing, claiming they are personal property. The buyer believes these items should convey with the land. Which of the following legal concepts would most likely determine whether the shed and gazebo are real or personal property?Real Estate Property and Ownership
  8. 8.A developer plans to build a residential subdivision on a 15-acre parcel of land. If 20% of the land must be reserved for common areas and roads, and each residential lot requires 10,000 square feet, how many residential lots can be created?Real Estate Math
  9. 9.A buyer is closing on a property on July 20th. The annual property taxes are $3,650 and have been paid in full by the seller for the entire year. Assuming a 365-day year, how will the property taxes be prorated at closing, and who owes what to whom?Real Estate Math
  10. 10.A buyer is considering two comparable homes in the same neighborhood. Home A recently sold for $450,000 and has a brand-new roof (estimated value $20,000) and an updated kitchen (estimated value $30,000). Home B, the subject property, has an older roof and a dated kitchen. Using the sales comparison approach, what would be the adjusted sales price of Home A when comparing it to Home B?Real Estate Property and Ownership
  11. 11.A property owner holds a fee simple estate in their home. They decide to grant their elderly aunt the right to live in the home for the remainder of her life, after which the property will revert to the original owner's children. What type of estate has the owner primarily granted to their aunt?Real Estate Property and Ownership
  12. 12.A commercial property owner is appealing their property tax assessment, believing the county appraiser has overvalued their property. The property was recently purchased for $1,200,000, but the county's assessed value is $1,500,000. If the local millage rate is 20 mills and the owner qualifies for a $50,000 homestead exemption (though this is a commercial property), what is the annual property tax liability based on the county's assessment, assuming no other exemptions apply?Real Estate Property and Ownership
  13. 13.A landowner holds title to their property in 'fee simple absolute.' Which of the following best describes the nature of this estate?Real Estate Property and Ownership
  14. 14.A property owner is considering selling their home and wants to understand its current market value. An appraiser is hired and decides to use the Income Capitalization Approach. Which type of property would this approach be most appropriate for?Real Estate Property and Ownership
  15. 15.A land surveyor is preparing a legal description for a new residential subdivision. They begin by establishing a permanent reference point, often a brass plate embedded in concrete, from which all subsequent measurements and angles will be derived. What is this foundational reference point called?Real Estate Property and Ownership
  16. 16.A buyer is considering purchasing a commercial property that has an existing encroachment from an adjacent building's awning extending over the property line. The buyer is concerned about potential legal issues. What type of encumbrance does this situation represent?Real Estate Property and Ownership
  17. 17.A potential buyer is reviewing the legal description of a property and sees that it refers to 'Lot 17, Block B, of the Palm Lakes Subdivision as recorded in Plat Book 3, Page 45, Public Records of Lee County, Florida.' What type of legal description is being used for this property?Real Estate Property and Ownership
  18. 18.A buyer is purchasing a property in Florida and discovers that the previous owner failed to pay property taxes for the last three years. Which of the following statements correctly describes the status of these unpaid taxes?Real Estate Property and Ownership
  19. 19.A married couple in Florida wishes to purchase a vacation home. They want to ensure that if one spouse passes away, the surviving spouse automatically inherits the deceased's share of the property without going through probate. Which form of concurrent ownership should their real estate agent recommend?Real Estate Property and Ownership
  20. 20.An investor is considering purchasing a commercial property that generates a net operating income (NOI) of $90,000 annually. Similar properties in the area have recently sold at a capitalization rate of 9%. What is the estimated market value of this property using the income capitalization approach?Real Estate Math
  21. 21.A buyer is making a 15% down payment on a $320,000 home purchase. The lender's loan-to-value (LTV) ratio is 85%. What is the loan amount the buyer is seeking?Real Estate Math
  22. 22.A property owner wants to transfer their property to their daughter, but they want to retain the right to live on the property for the remainder of their life. Which type of estate should the owner create to achieve this goal?Real Estate Property and Ownership
  23. 23.A real estate agent is explaining different forms of concurrent ownership to a married couple. The couple wants to own the property with rights of survivorship, meaning if one spouse dies, the other automatically inherits the deceased's share without probate. Which form of ownership would best suit their needs?Real Estate Property and Ownership
  24. 24.A tenant farmer leases agricultural land under an agreement that allows them to remove their crops, which they planted and cultivated, even after the lease has expired. What legal term describes these crops?Real Estate Property and Ownership
  25. 25.A tenant is renting a commercial space for their bakery business. They install a large, custom-built oven, industrial mixers, and specialized lighting fixtures. At the end of the lease term, the tenant plans to remove these items and relocate their business. Assuming no specific agreement otherwise, how are these items generally classified?Real Estate Property and Ownership
  26. 26.A buyer is obtaining a new loan for $300,000 at an interest rate of 4.5% for 30 years. The lender charges 2 discount points. How much will the buyer pay for these discount points at closing?Real Estate Math
  27. 27.A property measures 75 feet by 120 feet. If the cost of fencing is $15 per linear foot, how much would it cost to fence the entire perimeter of the property?Real Estate Math
  28. 28.An appraiser is valuing a unique, historic church property where there are no recent comparable sales and it does not generate income. Which appraisal approach would be considered the most reliable for estimating its value?Real Estate Property and Ownership
  29. 29.A survey of a rural property indicates that the property boundaries are defined by natural markers such as a large oak tree, a creek, and a pile of rocks. This method of describing property is most characteristic of which legal description system?Real Estate Property and Ownership
  30. 30.A homeowner has a mortgage on their property. The mortgage document contains a clause stating that if the homeowner defaults on the loan, the lender has the right to take possession of the property and sell it to satisfy the debt. What type of lien does this mortgage create?Real Estate Property and Ownership
  31. 31.An appraiser is tasked with valuing a newly constructed, specialized hospital building. There are no recent comparable sales of similar hospital properties in the area. Which appraisal approach would be MOST appropriate for this valuation?Real Estate Property and Ownership
  32. 32.A developer is planning a new residential community and wants to ensure that all homes maintain a consistent aesthetic and minimum size. They include specific clauses in the deeds for each lot, limiting the type of fencing and requiring architectural review for exterior modifications. What legal mechanism is the developer primarily employing to achieve these goals?Real Estate Property and Ownership
  33. 33.An investor purchased a rental property for $500,000. Annual gross rental income is $60,000. Annual operating expenses (excluding debt service) are $15,000. What is the investor's cash-on-cash return if the property was purchased with a 20% down payment and the annual mortgage payments (principal and interest) are $25,000?Real Estate Math
  34. 34.A seller lists their property for $350,000. They agree to pay a 6% commission to the listing broker, who then agrees to split 50% of that commission with the buyer's broker. If the property sells for the listed price, how much will the buyer's broker receive?Real Estate Math
  35. 35.A buyer is purchasing a condominium unit and receives a copy of the recorded declaration of condominium. This document specifies the common elements, individual unit boundaries, and responsibilities of the unit owners. What type of estate does the buyer typically acquire in the individual condominium unit?Real Estate Property and Ownership
  36. 36.A developer plans to build a new residential community and wants to ensure that utility companies have the right to install and maintain power lines and sewer pipes across individual lots. Which type of encumbrance would be most appropriate for this purpose?Real Estate Property and Ownership
  37. 37.An appraiser is using the cost-depreciation approach to value a 15-year-old commercial building. The appraiser estimates the current cost to construct a new, similar building is $1,000,000. The building has an estimated economic life of 50 years. What is the accrued depreciation of the building for the cost-depreciation approach?Real Estate Property and Ownership
  38. 38.A buyer is reviewing a property survey that indicates a discrepancy in the boundary line description compared to the fence line. The survey uses metes and bounds. Which of the following elements is a primary characteristic of a metes and bounds legal description?Real Estate Property and Ownership
  39. 39.A buyer is interested in a property that includes a built-in bookshelf, a custom-designed chandelier, and a detached garden shed. During negotiations, the seller states they intend to remove the chandelier before closing. Which of the following is the MOST important factor in determining if the chandelier is a fixture?Real Estate Property and Ownership
  40. 40.A buyer is interested in a property described using the Rectangular Survey System. The legal description states: 'The SE 1/4 of the NW 1/4 of Section 12, Township 3 South, Range 2 East.' If one section contains 640 acres, how many acres are in this described parcel?Real Estate Property and Ownership
  41. 41.A buyer's agent is representing a client in the purchase of a property. The agent receives confidential information from their client about their absolute maximum budget for the purchase. The seller's agent, during casual conversation, attempts to elicit this information. What is the buyer's agent's ethical and legal obligation regarding this information?Real Estate Contracts and Agency
  42. 42.A real estate broker is acting as a single agent for a seller. The broker discovers that the property's septic system is failing, a fact the seller is unaware of. What is the broker's primary duty regarding this discovery?Real Estate Contracts and Agency
  43. 43.A real estate investor is analyzing a potential office building acquisition using the debt service coverage ratio (DSCR). The property is projected to have a Net Operating Income (NOI) of $200,000 annually, and its total annual debt service (principal and interest payments) is $160,000. What is the property's DSCR?Real Estate Investment and Business Brokerage
  44. 44.A business broker is valuing a small restaurant for sale. The restaurant's annual net income is $120,000. Similar restaurants in the area have recently sold at a multiple of 3.5 times their net income. What is the estimated value of the restaurant using this method?Real Estate Investment and Business Brokerage
  45. 45.A buyer is interested in purchasing a property but wants the option to buy it within the next year at a predetermined price, without being obligated to buy. What type of contract should they enter into with the seller?Real Estate Contracts and Agency
  46. 46.A real estate investor is evaluating a potential apartment complex acquisition. The property has a gross potential income of $500,000, a vacancy and collection loss of 5%, and operating expenses (excluding debt service) totaling $150,000. What is the property's Net Operating Income (NOI)?Real Estate Investment and Business Brokerage
  47. 47.A real estate sales associate is advising a client interested in investing in commercial property. The client is primarily concerned with minimizing personal liability and ensuring the business continues uninterrupted even if one of the owners leaves. Which business structure would best meet these objectives?Real Estate Investment and Business Brokerage
  48. 48.A buyer makes an offer on a property. The seller counters the offer with slightly different terms. In contract law, what is the legal effect of the seller's counteroffer on the buyer's original offer?Real Estate Contracts and Agency
  49. 49.A real estate investor is comparing two potential investment properties. Property A has a lower purchase price and requires more hands-on management, while Property B has a higher purchase price but is in a prime location with strong tenant demand and professional management already in place. The investor has a high-risk tolerance but prefers a stable, predictable income stream. Which type of risk is the investor primarily trying to mitigate by potentially choosing Property B?Real Estate Investment and Business Brokerage
  50. 50.A property manager is approached by a prospective tenant with a service animal, but the 'no pets' policy of the building is strictly enforced. The property manager informs the tenant that the animal is not allowed. Under the Fair Housing Act, what is the appropriate action for the property manager to take?Real Estate Investment and Business Brokerage