FRESA - Florida Real Estate Sales Associate Exam

Question 21: An appraiser in Sarasota describes the total period during which improvements are expected to contribute value to a property, which she distinguishes carefully from how long the structure will physically stand. Which term does she use to name that period?

Chronological age of the building

Effective age of the building

Physical life of the structure

Economic life of the improvements

Question 22: An appraiser in Ocala is required to follow uniform standards governing how appraisals must be developed and reported, including ethics and competency requirements that apply nationwide. Which body of standards is she following when she signs her report?

The uniform standards of professional appraisal practice

The Florida real estate license law

The commission's advertising rules

The federal fair housing regulations

Question 23: An appraiser practicing in Ocala holds a state credential and asks which part of the Florida real estate chapter governs her licensure and discipline, as distinct from the part covering brokers and sales associates. Which part governs her?

Part One of the chapter

Part Two of the chapter

Part Three of the chapter

Part Four of the chapter

Question 24: A homeowner in Ocala insures her house and learns that the policy amount reflects what rebuilding the structure would cost rather than what the property would sell for, since the land itself cannot burn. Which value is that?

Market value of the property

Assessed value on the tax roll

Insurable value of the improvements

Investment value to a buyer

Question 25: An investor in Naples tells her appraiser that a property is worth more to her than to anyone else because of her unusual tax situation and her ownership of the adjoining parcel. Which value is she describing to her personally?

Investment value to that particular owner

Market value under ordinary conditions

Insurable value of the improvements

Assessed value for tax purposes

Question 26: An appraiser in Ocala completes a report and dates her opinion of value as of a specific day, explaining to her client that conditions before or after that day are outside what her conclusion covers. Which date is that?

The report delivery date

The inspection scheduling date

The effective date of the appraisal

The client's decision deadline

Question 27: A lender's loan officer in Ocala telephones an appraiser and suggests that the file needs a value at least equal to the contract price if the deal is going to close for everyone involved. How should she respond?

The appraiser should accommodate the request

Such pressure on an appraiser is improper

The appraiser must withdraw from all assignments

Proper if disclosed in writing

Question 28: An appraiser in Ocala values a restaurant that is operating profitably, and she includes the business income, the equipment, and the established customer base along with the real estate in her total figure. What kind of value has she estimated?

Insurable value of the property

Market value of the real estate

Going concern value of the enterprise

Assessed value on the tax roll

Question 29: An appraiser in Ocala explains that four broad categories of influence shape property values in every market, running from physical characteristics through economic conditions, government action, and the preferences of people living nearby. Which framework is that to her class?

The four forces influencing value

The four unities of joint tenancy

The four elements of a contract

The four agents of production

Question 30: An appraiser in Naples explains that adding more and more improvements to a site eventually stops producing proportionate increases in value, and that past a certain point additional spending returns almost nothing. Which principle is she describing to her class?

The principle of substitution

The law of diminishing returns

The principle of conformity

The law of supply and demand

Question 31: A property owner in Ocala compares the figure on her tax notice with the price a neighbor recently received for a nearly identical home, and she finds the two numbers noticeably different from one another. What explains the difference?

The two figures must always match exactly

The tax figure is always higher

The sale proves the assessment wrong

Assessed value and market value differ

Question 32: A sales associate in Ocala prepares a written analysis of value for a homeowner deciding whether to list, using recent comparable sales in the neighborhood, and she is careful about what she calls the document. What may she call it?

She may call it a limited appraisal

She may not call it an appraisal

Appraisal is permitted when unpaid

Appraisal is permitted with broker consent

Question 33: An investor in Fort Myers subtracts her annual mortgage payments from the net operating income her small apartment building produces, arriving at the amount left in her pocket before she considers income taxes. Which figure has she reached?

Cash flow before taxes

Effective gross income

Potential gross income

Equity buildup over time

Question 34: An investor in Ocala notices that every monthly payment on her rental property reduces the loan balance while the property itself slowly appreciates, steadily increasing her ownership stake without any additional cash outlay. What is that called in the property?

Leverage on the investment

Cash flow before taxes

Equity buildup in the property

Depreciation for tax purposes

Question 35: An investor in Naples worries that she may be unable to sell her office building quickly if she suddenly needs cash, and her advisor names the specific category of investment risk that concern falls under. Which risk is that?

Business risk from operations

Financial risk from borrowing

Purchasing power risk from inflation

Liquidity risk from slow conversion

Question 36: An investor in Ocala buys a small share in a professionally managed company that owns shopping centers across several states, receives dividends from the rents, and can sell her shares on an exchange. What has she purchased through a broker?

A limited partnership interest

A joint venture agreement

A real estate investment trust share

A general partnership interest

Question 37: An investor in Ocala reduces her taxable income each year by claiming an annual deduction for the wearing out of the improvements on her rental property, even though the building has not lost market value. Which deduction is that?

Amortization of the loan balance

Cost recovery through depreciation

A capital gains exclusion

An operating expense deduction

Question 38: A licensee in Ocala is selling a dry cleaning business and explains to the buyer that part of the price reflects the established reputation and repeat customers rather than the equipment or the lease. What is that component?

Goodwill of the business

Inventory on the shelves

Leasehold improvements

Working capital reserves

Question 39: An investor in Naples sells a rental property she has owned for several years and realizes a profit over her adjusted basis, and her accountant explains how federal tax law treats that profit on an investment asset. How is it treated?

It is entirely tax free

It is taxed as ordinary wages

It is generally treated as capital gain

It is exempt because of depreciation

Question 40: A homeowner in Ocala completes a large addition in August and wonders whether it will be reflected on this year's tax roll or on next year's. Her licensee explains the date Florida uses for assessing real property. Which date is it?

The date the permit is issued

The date construction is finished

The first day of the fiscal year

January first of each year

FRESA Florida Real Estate Sales Associate Exam - Set 5 - Part 2