Download Post-License Final Exam 2025 Verified Questions and Correct Answers and more Exams Sales Management in PDF only on Docsity!
Post-License Final Exam 2025 Verified Questions
and Correct Answers
3 Keys to prospecting success - correct answer>>1. Number of contacts 2. Consistency of Contacts 3. system for tracking contacts Broker Price Opinion (BPO) - correct answer>>an estimated value for a property owned by the bank Matched Pair (or Paired) Sales Technique - correct answer>>entails estimating the value of various physical differences by locating other properties that have sold in the area, of which, one that has a particular feature you are trying to value and another one that does not Preparing the CMA - correct answer>>The sale price of any property will be closely related to those that have recently sold and are most similar to the subject property. When preparing a CMA the value must be based on recently sold properties. In preparing the CMA you should focus on using recently sold properties, usually those sold within the last 6 months. Comparable Sales Approach - correct answer>>Used to estimate the value indicated by the recent sales of comparable properties in the market. The price at which a property will most likely sell is closely related to the price at which similar properties in the same market have previously sold. This approach is usually the most applicable method for appraising residential properties. Income Approach - correct answer>>Based on the assumption that the value of a property is related to the amount of income that it can produce in the future. This is the approach investors use to determine how much they'll pay 3 approaches to estimating value - correct answer>>1. Cost-depreciation 2. Income approach 3. comparable sales approach Highest and best use analysis - correct answer>>Every property has a single use which produces the greatest income and return Principle of substitution - correct answer>>Recognizes that no one would pay more for a property than the amount necessary to acquire on acceptable substitute
Contribution - correct answer>>What the market recognizes as the change in value that an improvement makes to a property rather than what that improvement actually costs. Example: Kitchen Price vs. Value - correct answer>>As opposed to value, price is the amount which is actually paid in a real estate transaction Investment Value - correct answer>>Value of particular property to a particular investor Assessed Value - correct answer>>Value assigned by the property appraiser for ad valorem tax purposes Appraisal vs. CMA - correct answer>>Comparative Market analysis may not be referred to as an appraisal Appraisal Regulation - correct answer>>All appraisals used in federally related transaction must be prepared in compliance with USPAP by appraisers who are registered licensed or certified under Part II F.S. 475 Illegal Dual Agency - correct answer>>Any attempt to represent both parties in a transaction would create an illegal dual agency Additional Duties of Single Agent - correct answer>>Confidentiality, obedience, loyalty, full disclosure Duties of: Transaction Broker, No Brokerage, Single Agent - correct answer>>Deal honestly and fairly, Account for all funds, disclose all known facts that affect the value of residential property Collect Money only from Employer - correct answer>>A sales associate may not collect money in a connection with a real estate transaction except in the name of the employer. A sales associate receives compensation only from employing broker Handling Deposits - correct answer>>Must deliver deposit to Broker or Employer no later than the end of the business day following the receipt of the item to be deposited Advertising - correct answer>>Must include: licensed name of Brokerage Firm, last name must be what is registered with commission, on website firm name must be placed next to contact info. May not be fraudulent - could result in the issuance of a citation and fine of $
Required Skills - correct answer>>expert knowledge in valuation, marketing, and property transfer Code of Ethics - correct answer>>Act in the best interest of both the client and any 3rd parties to a transaction. Golden Rule. 17 articles that depict duties to the clients, public, and other real estate licensees FAR - correct answer>>Florida Association of REALTORS NAR - correct answer>>National Association of REALTORS. largest most prestigious, works for legislation that is favorable to the industry and it enforces professional standards of conduct through its Code of Ethics. REALTOR is a trademark of NAR Counseling - correct answer>>counselors give advice to consumers about property, They are experts Federally Related Transaction - correct answer>>one in which a loan is made by a federally regulated leading institution that uses real property Appraising - correct answer>>Must be performed by an appraiser who is registered, licensed or certified under Part II of F.S. 475 Property Management - correct answer>>grown over the years and has become major service offered. Absentee owners - correct answer>>owners who buy income properties as investment depend on professionals to manage them are called absentee owners. Timeshare Properties - correct answer>>condo unit that is subdivided into ownership time periods. includes the right to use the property for a period of time AKA interval ownership Industrial Properties - correct answer>>warehouses and manufacturing facilities Commercial Properties - correct answer>>apartment buildings, strip malls, office space, shopping centers Residential Transaction - correct answer>>Improved residential property of four units or fewer. Unimproved property intended for less than four units. agricultural properties of less than 10 acres. leases with options to purchase of four or less residential units
Farming - correct answer>>licensees will concentrate on one type of style of property or on one particular neighborhood Transition to Transaction Broker - correct answer>>a single agent relationship may be changed to a transaction broker relationship at anytime during the relationship between an agent and principal, provided the agent gives written disclosure required and the principal gives their written consent before a change in the relationship occurs Push Marketing - correct answer>>using various activities to get your message in front of your ideal client. Newspaper ads, magazine ads, radio Pull Marketing - correct answer>>social media sites : facebook, twitter, linkedin, etc. The Listing Presentation - correct answer>>when you are face to face with the seller, you have to explain to them why it is to their benefit to hire you. You only have one chance to do it and you have to do it in a relatively short period of time. Thing to Bring to the listing presentation - correct answer>>Sellers Property disclosure statement Professional Resume - correct answer>>You professional resume should list your professional qualifications Personal Profile - correct answer>>A good personal profile should incude your experience, education, professional, affiliations, and community involvement. You can also add information about your background, family, and hobbies, but this is optional. Keep your personal profile up to date. as your business grows, so will your experience, education, and affiliations. Marketing Statements - correct answer>>Specifically, I will market your property through: MLS, Home Highlight sheets to all agents, direct mail and email campaigns, open houses Home Preparation and Staging Tips - correct answer>>Buyers look for homes that are in move-in condition and free of clutter; homes they can actually visualize themselves living in. We call it emotional possession.
Mortgage Loan Originators - correct answer>>do not make loans. they arrange loans by taking applications and searching for lenders who offer the lowest interest rates and easiest borrower qualification Secondary Mortgage Market - correct answer>>the federal government has been instrumental in the organization of the secondary mortgage market. the principal secondary lenders are governmental or quasi-governmental agencies and include Ginnie Mae, Fannie Mae, and Freddie Mac Loan Fees - correct answer>>Consist of points/origination fees. The lenders advantage comes from obtaining income in the form of the interest and finance charges on the loan, thus making the loan an investment for the lender. In order to increase the yield on the investment, lenders often charge other fees when the borrower gets the loan. Loan to value ration - correct answer>>referred to as LTV. is the ratio of the mortgage principal to the value of the property the borrowers are purchasing Amortization - correct answer>>the payment goes first to the interest and then to the principal. over the life of the loan, the amount that goes toward interest decreases, while the amount that goes to principal increases. In the early years of the loan, the principal payment is very small, so it takes several years for the borrower to increase their equity in the property. However, closer to the end of the repayment period, the borrower's equity increases much more quickly. Fixed rate or Level payment - correct answer>>monthly payment remains the same over the term of the loan. In each succeeding monthly payment, the amount applied to pay interest on the loan is reduced and the amount applied to repay the loan principal is increased. The principal amount originally borrowed will be completely repaid at the end of the loan term. Conventional Loans - correct answer>>generally amortized over specific time period Private Mortgage insurance (PMI) - correct answer>>federal lending regulators usually require PMI when the loan amount exceeds 80% of the property value. Housing expense ratio (front-end) - correct answer>>the combined principal, interest, taxes, and insurance payment (PITI) divided by the borrowers gross monthly income
Blanket Loan - correct answer>>covers more than one piece of property. land developers commonly use blanket mortgages when they buy a plot of land and divide it into many separate lots. Federal Housing Administration FHA - correct answer>>does not build homes or loan money directly. They insure loans made by approved lending institutions, including qualified mortgage companies, savings and loan associations, and commercial banks. VA loan - correct answer>>does not require a down payment Truth in Lending - correct answer>>Title I of the Consumer Credit Protection Act, is a implemented by regulation z. this law requires lenders to disclose to buyers the true cost of obtaining credit, so that borrowers can compare the costs of carious lenders. regulation z applies to all loans that are secured by a residence. Listing Inventory - correct answer>>the very best source for obtaining buyer Qualifying the buyer - correct answer>>once you have your systems in place for generating buyers, you will need to qualify those buyers. You must learn to work with only qualified buyers. working with an unqualified buyer is a huge waste of your time. Exclusive Buyer Broker Agreement - correct answer>>This agreement has advantages for you than the showing agreement. it establishes an exclusive representation with a buyer, provides for a retainer fee, and contains a limitation of your liability with respect to tax, legal, environmental, engineering, or other specialized advice. This agreement also includes a protection period where by the clients will still owe you compensation within so many days after the agreement terminates if they purchase a property that you introduced them to during the agreement term. Seller's Real Property Disclosure - correct answer>>with a written disclosure it will substantially reduce liability by making full disclosure easier to prove. Pre- Qualification or Pre- approval letter - correct answer>>if the buyer can provide this from a mortgage loan originator, it strengthens the offer by showing the seller that they are financially qualified to obtain the financing needed to close the transaction. Statute of Fraud - correct answer>>first enacted in England in 1677. It was intended to provide protection against fraud in the transfer of real property. It requires any contract for the transfer of a right or interest in land to be in writing in order to be enforceable.
is a measure of the ability of the material to resist the flow of heat and is expressed in BTU's that can be transmitted through one thickness of material in one hour. Polybutylne (PB) - correct answer>>pipe, which is usually colored either blue or gray, can also be used for either cold or hot water. a class action lawsuit was filed against the manufacturers of this type of pipe due to repeated claims of leakage around the joints. Hot water heaters - correct answer>>tanks are protected from explosion by insertion of a temperature and pressure relief valve in or near the top of the tank British Thermal Units (BTU) - correct answer>>the capacity of a heating or air- conditioning system is rated in this. Air condition system - correct answer>>central air-conditioning systems operate by circulating liquid refrigerant, usually Freon, which is under pressure through copper tubing to an evaporator, generally locate din the attic. the heated gas is pumped by a compressor, which is located outside of the home through a condenser. Moisture collects on the evaporator. the drain line can be clogged with algae, and the pipe will overflow causing costly repairs. Circuit Protection* - correct answer>>areas of a house that present a greater risk of electrical shock require ground faults interrupters (GFIs) these are typically found outside and in kitchens and baths Regulation of the construction industry* - correct answer>>the purpose of building codes are to protect the public health, safety, and general welfare as they relate to the construction and occupancy of buildings and structures. Federal Fair Housing Laws - correct answer>>primary purpose of these laws are to protect the public, prospective renters, and buyers of real estate from discrimination; however, these laws also offer protection for real estate professionals who are members of the protected classes Civil Rights Act of 1866 - correct answer>>prohibits discrimination based on race in the purchase, sale, or lease of real property, it covers only race as a protected class and applies to everyone 1988 Fair housing amendment - correct answer>>this was an expansion to include handicap and familial status
Steering or Channeling* - correct answer>>practice of directing homebuyers toward or away from homes in certain neighborhoods or in a multiunit building in order to preserve or alter the makeup of that neighborhood with respect to race, religion, sex, or national origin. this is a violation against a buyer by limiting choices Blockbusting* - correct answer>>the practice of inducing owners to sell by telling them that persons of a protected class are moving into the neighborhood and the results will be detrimental to the neighborhood Redlining** - correct answer>>the illegal practice of refusing mortgage financing or insurance based on a specific geographical location, age of the property, the income level of the residents, or the racial composition of the area Exemption to fair housing law - correct answer>>fair housing laws allow for exemptions in some areas. however there are no exemptions, exceptions, or excuses for racial discrimination Americans with disabilities act (ADA) - correct answer>>common problems addressed: wheelchair ramps, support bars in restrooms, handicap parking spaces, installation height of fire extinguishers. Readily Achievable - correct answer>>owners of small business serving the public must remove physical barriers that are easy to accomplish without much difficulty or expense. large business with more resources are expected to take a more active role. Stigmatized Properties - correct answer>>properties where real or rumored events have occurred but don't physically affect the property but it advisedly impacts it's desirability. no legal action can be taken against a broker, license, owner, or property owner for failure to disclose such information. it is illegal to discriminate against qualified person in housing based on HIV or AIDS. How many black families live in this neighborhood? - correct answer>>"I am prohibited by federal law from discussing race, color, religion, national origin, gender, handicap, and familial status." Fair Housing Advertising Word and Phrase List (not allowed) - correct answer>>able- bodied, no handicap parking, mature individuals, no unemployed Fair Housing Advertising Word and Phrase List (allowed) - correct answer>>Christian (caution) guest house, handicap accessible, quite neighborhood, single family home
Rent proration - correct answer>>the buyer will be the new property owner and will be responsible for the property beginning on the day of closing. therefore, the buyer is entitled to portion of the rent amount that was paid for the month "Subject to" - correct answer>>means that buyer acknowledge the fact that the one they are buying has a lien against it, but the buyer does not accept any personal responsibility for the repayment of that debt. The buyer and the seller have privately contracted for this purchase agreement. if the buyer does not pay loan, the lender may foreclose and the buyer will lose the home. howerever, if the lender does not receive sufficient money from the foreclosure to satisfy the debt, the buyer cannot be held responsible Stamp on a new deed - correct answer>>before a deed can be recorded in the public records, documentary stamps must be purchase and affixed to the deed. $0.70 per $ value. ($0.60 in Dade County). in the absence of any agreement to the contrary, the seller is responsible for the payment of this tax. Intangible tax on new mortgage liens - correct answer>>calculated at the rate of 2mills (.002) on the total amount of a new mortgage. Tax payable by seller in closings - correct answer>>purchased subject to a mortgage. state documentary stamp tax on deeds Pre- closing (walk- through) inspections - correct answer>>1. to confirm that the seller has vacated the property and that it is ready for occupancy 2. to determine that the seller did not damage the property during their move Waiver of principal payments - correct answer>>when the lender allows the delinquent borrower to suspend the payment of the principal and just pay the interest. any suspended payments are added to the principal, which results in higher payments later in the loan term Deferred interest - correct answer>>when the lender suspends the borrower's interest payments Restructure the mortgage loan - correct answer>>if the borrower is not personally liable for the original loan, called a non recourse loan, the lender could decide to make the borrower personally liable as part of the loan restructuring agreement.
Recasting - correct answer>>the process of redesigning a loan. most frequently done by changing the terms, either temporarily or permanently Transfer the mortgage to a new owner - correct answer>>if the borrower cannot meet their monthly mortgage payments and are in danger of default, they may be able to find another person who can purchase the property and, either assume the mortgage, or take the property subject to the existing mortgage. a new buyer may be willing to accept this mortgage transfer if they think that the value of the property is more than the mortgage value Deed in Lieu of Foreclosure / voluntary conveyance - correct answer>>if the borrower and the lender agree that the property is more valuable than the mortgage balance, the lender may consent to pay some money back to the borrower for their equity in the property. if the value of the property is less than the mortgage balance, the lender may still be willing to accept the title and release the borrower from the debt Tax consequence - correct answer>>if the ender does forgive the deficiency loan balance, the IRS may consider this forgiveness of debt to be income and therefore taxable to the borrower as a gift from the lender Short sale transaction - correct answer>>sale transaction in while a seller, confronted with the threat of a foreclosure, enters into a settlement agreement with the lender where the lender consents to a sales price for the property that is below the outstanding loan balance. in other words, the sale proceeds to fall short of the amount owed to the lender. Requirements for short sale - correct answer>>the lender in a short sale transaction generally requires that the real property has been offered for sale on the market for a certain number of days at a reasonable price in order for the lender to feel confident that the short sale offers being presented are legit offers from legit buyers in that real estate market. the lender will qualify the property value with either a BPO, actual appraisal, or both. short sale seller must qualify by missing payments or showing financial hardship Establishing Financial Hardship - correct answer>> Foreclosure process - correct answer>>officially begins when the lender records a lis pendens (notice of lawsuit) and files the lawsuit against the defaulting borrower with the appropriate court where the property is located
Interval ownership - correct answer>>the buyer purchases real property and receives a deed just like in other types of real property ownership. this ownership allows the owner all of the ownership rights available. this is thought to be the best way to purchase and own a timeshare. this owner has the right to resell, gift, or will that ownership. right to use/ vacation lease - correct answer>>the buyer does not purchase ownership rights but just the right to use and possess a unit for a specified period of time during any one year for a stated number of years. when that stated number of years is over the buyer has used up all of their use and possession rights and has nothing left. Required HOA disclosures - correct answer>>florida law requires that a homeowners association disclosure be provided to buyers when membership in such an association is required. initial developers and subsequent owners must disclose to a buyer who signs a sales contract Community association management license (CAM) - correct answer>>certain property managers who are employed and compensated by the community associations are required by florida law to obtain this Compensated property management activities * - correct answer>>controlling or disbursing association funds, determining how or when to prepare budgets or other financial documents for community association, coordinating maintenance for the residential development Real property investment - correct answer>>the goal of investing is to realize profits. investors do this by weighing several factors. these factors include risk, liquidity, and leverage. liquidity - correct answer>>refers to an assets ability to be easily converted through an act of buying or selling without causing a significant movement in price and with minimum loss of value. liquid market - correct answer>>market where there are ready and willing buyers and sellers at all times illiquid asset - correct answer>>one which is not readily sale-able due to uncertainty about its value or a lull in the market in which it is regularly traded
leverage - correct answer>>the use of borrowed funds to increase the potential return of an investment Positive leverage - correct answer>>when the rate of return exceeds the cost of borrowing, the leverage is said to be favorable Negative leverage - correct answer>>when the cost of borrowing is greater than the return, then the leverage is unfavorable or negative advantage of investments in real estate industry * - correct answer>>IRS federal income tax deductions, allowances, and credits Unimproved Property - correct answer>>investment in this property is probably the riskiest of all property investments as it can be the most illiquid of all property types. long-term investment with negative cash flow Reason for investment - correct answer>>to flip: when an investor buys a property with an intention to sell it as soon as possible operating expenses - correct answer>>fixed expenses, variable expenses, and a reserve for replacements fixed expenses (FE) - correct answer>>include costs that do not change with the level occupancy, such as a real estate taxes and hazard insurance Real estate deductions and exemptions - correct answer>>the IRS allows certain real estate deductions and exemption on an itemized income tax return. property tax deduction, mortgage interest deduction, depreciation. Amount realized - correct answer>>also known as net proceeds from sale. sale price - cost of sale = ____________ unrealized capital gains - correct answer>>potential gain on an investment if it were to be sold. Capital Loss - correct answer>>and individual assumes this if they sell an asset for less than the purchase price Tax Depreciation - correct answer>>deduction that allows an investor to write off the cost of his or her investment in income-producing property over a prescribed period.
Traditional/full service model - correct answer>>the broker provides substantial support services for the associates in the office. associates are typically hired at an entry level commission split of 50% to 60%. the commission is on a graduated scale and increases for the associate as their production increases. the broker provides various support services to enhance and support associate production. high or 100% commission model - correct answer>>the broker usually charges a monthly desk fee to the associate and a small fee for every closing, around $395 or so. the desk fee is due and payable every month whether the associate closes a transaction or not. the broker provides little or no support to the associate Policy and Procedures Manual - correct answer>>to make sure that all members of your brokerage company understand your philosophy and their roles and responsibilities as employees in the business. use great care to express the exact purpose of your brokerage company to avoid misinterpretation bad quality trait of a manger - correct answer>>micro managing, needing to be in control of every detail
