Florida Real Estate Sales Associate — All Questions

If a purchase contract specifies a closing date and a separate possession date, the possession date determines when the:

• a.Buyer is entitled to occupy the property✓
• b.Property is first advertised for sale in all cases
• c.Listing agreement first takes effect
• d.Deposit must be placed in escrow

The possession date sets when the buyer may take physical occupancy, which can differ from the closing date. Contracts should state clearly whether possession occurs at closing or another time.

Under Florida's Uniform Vendor and Purchaser Risk Act, if the property is materially damaged before title or possession passes, the risk of loss generally falls on the:

• a.County government
• b.Listing broker
• c.Buyer, in every case
• d.Seller✓

Under the Florida risk-of-loss statute, the seller generally bears the risk of material damage until title or possession transfers to the buyer. If neither has passed, the buyer may typically cancel and recover the deposit.

A buyer of a resale condominium in Florida generally has a right to cancel within a set period after receiving the required condominium documents, which is:

• a.1 year
• b.3 business days✓
• c.30 calendar days
• d.6 months

Florida gives a resale condominium buyer a 3-business-day right to cancel after receiving the condominium disclosure documents. The cancellation window protects buyers who need time to review association materials.

A purchaser of a Florida timeshare interest generally has a statutory right to cancel the contract within:

• a.10 calendar days✓
• b.45 days
• c.3 business days
• d.24 hours

Florida law gives a timeshare purchaser a 10-day right to cancel the purchase contract. This cooling-off period cannot be waived by the buyer.

Under Florida case law (Johnson v. Davis), a seller of residential property must disclose:

• a.Only cosmetic issues visible from the street
• b.Only defects the buyer specifically asks about in all cases under Florida law in every transaction
• c.Nothing, because all sales are caveat emptor
• d.Known facts that materially affect value and are not readily observable to the buyer✓

The Johnson v. Davis rule requires a seller to disclose known material defects that are not readily observable and not known to the buyer. This duty applies to residential transactions in Florida.

For a home built before 1978, federal law requires the seller to provide the buyer with a disclosure about:

• a.A guarantee of no future repairs
• b.The seller's personal credit score
• c.Known lead-based paint and related hazards✓
• d.The exact resale value in ten years in all cases

The federal lead-based paint disclosure rule applies to most housing built before 1978. Sellers must disclose known lead hazards and provide the EPA pamphlet and a disclosure form.

To convey or mortgage Florida homestead property owned by a married person, the law generally requires that:

• a.Both children must consent
• b.The spouse also join in signing the deed or mortgage✓
• c.Only the titleholder needs to sign in all cases under Florida law
• d.The county commission must approve

Florida's constitution protects homestead property, and a married owner generally must have the spouse join in any conveyance or mortgage of the homestead. This applies even if only one spouse holds title.

The difference between a deed and title is that a deed is:

• a.The written instrument used to convey ownership, while title is the ownership itself✓
• b.Issued by the government, while title is issued by the buyer in all cases under Florida law
• c.A type of mortgage, while title is a lease
• d.The ownership itself, while title is the document

A deed is the physical, written instrument that transfers an interest in real property. Title is the abstract concept of ownership and the bundle of rights that the deed conveys.

Before a deed can be recorded in the Florida public records, the grantor's signature typically must be:

• a.Notarized by the buyer's lender
• b.Published in a local newspaper
• c.Approved by the homeowners association in all cases under Florida law in every transaction
• d.Acknowledged before a notary (in addition to the required witnesses)✓

For recording, a deed must be acknowledged before a notary public, and Florida also requires two subscribing witnesses to the grantor's signature. Proper acknowledgment allows the deed to be recorded and provide constructive notice.

When an owner dies with a valid will directing who receives the real property, that transfer is called a:

• a.Dedication
• b.Descent
• c.Devise✓
• d.Escheat

A gift of real property by will is a devise, and the recipient is a devisee. If the owner dies without a will, the property passes by descent under the state's intestacy laws.

A claimant seeking title by adverse possession in Florida generally must possess the land openly, continuously, and hostilely for:

• a.30 years regardless of taxes
• b.6 months under color of title
• c.1 year with no other requirements in all cases under Florida law
• d.7 years, typically while paying the property taxes✓

Florida's adverse possession statute generally requires open, notorious, continuous, and hostile possession for 7 years, usually with payment of taxes. Meeting all statutory elements is necessary to claim title.

The substitution of an entirely new contract for an existing one, extinguishing the old obligation with all parties' consent, is:

• a.Ratification
• b.Novation✓
• c.Assignment
• d.Rescission

Novation replaces an existing contract or party with a new one, discharging the original obligation. It requires the agreement of all parties, unlike a simple assignment of rights.

A backup offer that a seller accepts while already under contract with another buyer generally:

• a.Has no legal effect whatsoever
• b.Immediately cancels the first contract
• c.Forces the seller to sell to both buyers in all cases under Florida law
• d.Becomes the primary contract only if the first contract falls through✓

A backup offer is a secondary contract that moves into first position only if the primary contract terminates. It gives the seller a ready replacement buyer without breaching the existing deal.

A percentage lease is one in which the tenant's rent is based on:

• a.A fixed amount that never changes over the term in all cases
• b.The landlord's mortgage payment each month
• c.A base rent plus a percentage of the tenant's gross sales✓
• d.The assessed value of the land only

A percentage lease is common in retail, where the tenant pays a base rent plus a percentage of gross sales. It lets the landlord share in a successful tenant's business volume.

Under a gross lease, the landlord is generally responsible for paying:

• a.Nothing, because the tenant pays every cost in all cases under Florida law in every transaction
• b.Only the tenant's utility bills
• c.The property's operating expenses, such as taxes, insurance, and maintenance✓
• d.The tenant's business income taxes

In a gross lease, the tenant pays a flat rent and the landlord covers operating expenses like taxes, insurance, and maintenance. A net lease, by contrast, shifts some of those expenses to the tenant.

The key difference between assigning a lease and subleasing is that an assignment transfers:

• a.Only part of the space for part of the remaining term in all cases under Florida law
• b.The tenant's entire remaining interest in the lease to a new party✓
• c.The landlord's duties to the original tenant
• d.Ownership of the building to the tenant

An assignment transfers the tenant's whole remaining leasehold interest to the assignee. A sublease transfers only part of the term or space, with the original tenant remaining liable to the landlord.