A sales associate was asked by an Asian couple to show them homes located in areas where families were also Asian. The couple felt they would be more at home with other Asian families. How should the agent respond?

A) Explain why Asian areas are great areas to live in.

B) Explain the Fair Housing Act and show the buyers through the MLS, all homes they are eligible to purchase. The buyers will then choose where they wish to look.

C) Talk about how most of the families in Brooklyn Heights are Asian, and there are a variety of Thai, Japanese, and Vietnamese families in the area.

D) Tell them that because her only language is English, she cannot communicate with the Asian families, but will find someone to help them.

B) Explain the Fair Housing Act and show the buyers through the MLS, all homes they are eligible to purchase. The buyers will then choose where they wish to look.

Annualized debt service on an investment piece of property most nearly means:

A) The amount of the monthly principal and interest, annualized.

B) The amount the investor owes for their liabilities.

C) The amount of money needed for a down payment.

D) The amount of money used in effective gross income.

A) The amount of the monthly principal and interest, annualized.

What type of disclosure is required for ad valorem taxes to the buyer?

A) There is no disclosure required. It is up to the buyer to find out for himself.

B) The buyer should be provided a statement either in the contract or on a separate document that the buyer should not rely on the seller's current taxes as the amount the buyer will have to pay.

C) The taxes the buyer has to pay will be much higher after the closing on the property, so it doesn't have to be disclosed at closing.

D) No disclosure is required under Florida law for the current taxes of the seller.

B) The buyer should be provided a statement either in the contract or on a separate document that the buyer should not rely on the seller's current taxes as the amount the buyer will have to pay.

Susie has been found guilty by the FREC and has been issued a Probation Order. How long will the probation last and when will it begin?

A) The probation is for 30 days and will begin as soon as the FREC meets.

B) The probation is for 90 days and will begin 30 days after the filing of the final order.

D) The probation is for 120 days and begins 60 days after the filing of the final order.

The probation is for five years and will begin as soon as all appeals have been heard.

B) The probation is for 90 days and will begin 30 days after the filing of the final order.

An investor purchased a property in January for $350,000. The contract specified that $300,000 of the purchase price was for the improvement only, with the remainder for land. The investor made a down payment of $50,000 and financed the rest. The mortgage is for 30 years at 7% interest and a monthly payment of $1,995.91. The property has 12 apartments which rent for $650 a month. Vacancy and collection losses are at 5%. Operating expenses are 30% of the effective gross income and include reserves of $10,000. What is the effective gross income for this building?

A) $78,920

B) $88,920

C) $90,750

D) $93,600

B) $88,920

Andrea is the managing broker of Real Realty Corp. in Sanford. She was suddenly taken ill to the point where she can no longer perform the managing brokerage duties. What should happen next?

A) No new brokerage business may take place, and the company has 14 calendar days to replace Andrea.

B) Phil (a licensed broker director) can fill the vacancy without any problem until Andrea returns.

C) The brokerage must close until Andrea is better.

D) All listings and sales are suspended, and the licensees under the broker are involuntarily inactive.

A) No new brokerage business may take place, and the company has 14 calendar days to replace Andrea.