State exam final prep

Which approach to value is typically used to estimate the value of special purpose properties?

Cost depreciation approach

Income capitalization approach

There is a dispute over an escrow deposit and the broker intends to fight for a portion. Which of the following remedies would NOT be appropriate?

Bill of interpleader

Mediation

Which of the following statements is correct regarding an option contract?

It gives a buyer the right to purchase for a specified time at a specified price

It requires the buyer to buy at a specific price for a specific time.

What elements are NOT necessary for someone to have a cause of action against a real estate agent for fraud?

The licensee received financial gain because of misstatements or failure to disclose

The buyer relied on the misstatement

Anthony is in the US Army and while stationed in Florida he obtained his real estate license. A year later he was transferred to California, but seven years later he retires from the military and returns to Florida. What must he do if he wishes to sell real estate?

He can request a reissue of his license within 6 months of his discharge

He would be required to take 28 hours of reactivation education

Karl's license expired on September 30,2022. On January 15, 2025 he wants to activate it again. Which of the following is correct?

Karl's license is null and void.

Karl must complete 14 hours of education

Which of the following correctly the taxes that the buyer must typically pay when purchasing a home with a new mortgage?

Both the intangible tax and the note tax

Intangible tax only

Subdivision restrictive covenants control size, style and compatibility and would be enforced by whom?

Private Citizens

County Zoning board

All of the following statements about conventional mortgage are accurate, EXCEPT:

Conventional loans are generally less risky to lenders than FHA or VA loans

Conventional loans traditionally carry higher interest rates than do FHA or VA loans

The income approach to appraisal is a direct application of the principle of substitution and which other appraisal principal?

Principal of anticipation

Principal of contribution

When property taxes paid in arrears are prorated, how is the amount entered on the settlement statement?

Debited to the seller and credited to the buyer

Credited to the seller and debited to the buyer

All of the following are authorized alternatives for a broker to use in order to resolve an escrow dispute, BUT:

Obtain an attorney's opinion

Seek an escrow disbursement order from the commission

The pledge of property as security for a loan without delivering a title is called what?

Hypothecation

Assumption

At various times the seller could be which of the following?

Grantor

Mortgagor

Which method of legal description starts at a point of beginning POB and uses angels of direction and distances to describe property?

Metes and bounds

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