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FL Real Estate Law Specialist practice questions

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Question 1Florida specialist real-estate law: the instrument, title, transaction and remedy

Under Florida Statute 689.01, what execution formality is required to validly convey a fee simple interest in Florida real property by deed?

  1. The grantor's signature made in the presence of two subscribing witnesses Correct answer.
  2. The grantor's signature notarized only, with no witnesses required
  3. The signatures of both grantor and grantee before one witness
  4. Recording within 30 days of execution to be valid between the parties

Explanation

Section 689.01 requires that any conveyance of a freehold estate in Florida real property be in writing and signed by the grantor in the presence of two subscribing witnesses. Florida is among the small minority of states still requiring two witnesses on a deed.

Question 2Florida specialist real-estate law: the instrument, title, transaction and remedy

A grantor conveys Florida land to a grantee by general warranty deed. Which covenant of title does the general warranty deed provide that a statutory special warranty deed does NOT?

  1. A warranty against encumbrances arising during the grantor's ownership
  2. A covenant of marketable record title under Chapter 712
  3. A covenant that the deed was properly delivered
  4. A warranty against all title defects, including those predating the grantor's ownership Correct answer.

Explanation

A general warranty deed warrants title against all defects, including those arising before the grantor owned the property. A special warranty deed warrants only against defects arising 'by, through, or under' the grantor during the grantor's own ownership.

Question 3Florida specialist real-estate law: the instrument, title, transaction and remedy

A married couple takes title to a Florida home as 'John Doe and Jane Doe, husband and wife.' A judgment creditor of John alone records a judgment. Under Beal Bank, SSB v. Almand & Associates, what is the creditor's ability to reach the home?

  1. The creditor may force a partition sale of John's undivided one-half interest
  2. The creditor may place a lien on the entire property and force its sale
  3. The creditor cannot reach the property because tenancy by the entireties is presumed and protects it from a creditor of one spouse Correct answer.
  4. The creditor may reach the property only if John dies before Jane

Explanation

Property jointly held by a Florida married couple is presumed to be a tenancy by the entireties (Beal Bank). A judgment creditor of only one spouse cannot lien or force the sale of entireties property; both spouses must be liable on the debt.

Question 4Florida specialist real-estate law: the instrument, title, transaction and remedy

Which of the following is an essential element for a Florida deed to effectively transfer title from grantor to grantee?

  1. Recitation of the actual purchase price paid
  2. Payment of documentary stamp tax before signing
  3. A survey attached as an exhibit
  4. Delivery of the deed with intent to pass title presently Correct answer.

Explanation

Delivery with present donative or transactional intent is essential to pass title; a deed that is signed but never delivered conveys nothing. Acceptance by the grantee is presumed when the conveyance is beneficial.

Question 5Florida specialist real-estate law: the instrument, title, transaction and remedy

A Florida deed describes the grantee's estate as 'to A for life, then to B.' What present possessory and future interests are created?

  1. A holds a life estate; B holds a vested remainder in fee simple Correct answer.
  2. A holds a fee simple determinable; B holds a possibility of reverter
  3. A holds a tenancy for years; B holds an executory interest
  4. A and B hold as joint tenants with right of survivorship

Explanation

A grant 'to A for life, then to B' gives A a life estate measured by A's life and gives B a vested remainder in fee simple that becomes possessory at A's death. B is a presently identified person whose interest is not subject to a condition precedent.

Question 6Florida specialist real-estate law: the instrument, title, transaction and remedy

Under Florida's homestead protection in Article X, Section 4 of the Florida Constitution, which creditor CAN force the sale of a homestead?

  1. A credit card company holding a recorded money judgment
  2. A business partner with a judgment for breach of a partnership agreement
  3. A hospital with a judgment for unpaid medical bills
  4. A mortgage lender holding a properly executed purchase-money mortgage on the homestead Correct answer.

Explanation

Article X, Section 4 exempts homestead from forced sale by most creditors but expressly excepts obligations contracted for the purchase, improvement, or repair of the property, plus taxes and assessments. A purchase-money mortgage falls within this exception and can be foreclosed.

Question 7Florida specialist real-estate law: the instrument, title, transaction and remedy

A Florida decedent is survived by a spouse and a minor child and attempts by will to devise the homestead solely to a friend. What is the effect of the devise under the homestead provisions of Article X, Section 4(c)?

  1. The devise is fully valid because Florida allows free devise of homestead
  2. The friend takes the homestead subject only to a 30-day right of occupancy by the spouse
  3. The devise is void; the homestead passes under the constitutional and intestacy framework, with a life estate to the spouse and remainder to descendants (or per the spouse's election) Correct answer.
  4. The homestead escheats to the State because the devise is invalid

Explanation

When a decedent is survived by a spouse or minor child, the homestead cannot be devised away (except to the spouse if there is no minor child). A devise that violates this restriction is void, and the homestead descends under section 732.401, giving the spouse a life estate with remainder to descendants, or the spouse may elect a one-half tenancy in common.

Question 8Florida specialist real-estate law: the instrument, title, transaction and remedy

Grantor delivers a deed conveying Blackacre to 'A and B as joint tenants with right of survivorship.' Under Florida law, what is required to create a valid joint tenancy with right of survivorship?

  1. Nothing beyond naming two grantees, because Florida presumes survivorship
  2. Recording of a separate survivorship affidavit
  3. That the grantees be married to each other
  4. Express language clearly creating the right of survivorship, because Florida presumes a tenancy in common absent such language Correct answer.

Explanation

Florida abolished the common-law presumption favoring joint tenancy; a conveyance to two or more persons is presumed to create a tenancy in common unless the instrument expressly provides for the right of survivorship (Fla. Stat. 689.15). Clear survivorship language is therefore essential.

Question 9Florida specialist real-estate law: the instrument, title, transaction and remedy

Which type of Florida deed conveys whatever interest the grantor may have, without any warranties of title?

  1. Quitclaim deed Correct answer.
  2. Special warranty deed
  3. General warranty deed
  4. Statutory short-form warranty deed under section 689.02

Explanation

A quitclaim deed conveys only the grantor's present interest, if any, and makes no covenants of title. It is commonly used to clear clouds on title or transfer between family members, but it offers the grantee no title protection.

Question 10Florida specialist real-estate law: the instrument, title, transaction and remedy

A Florida property owner grants a written easement allowing a neighbor to cross her driveway for vehicle access. The easement benefits the neighbor's adjoining parcel. This is best classified as what kind of interest?

  1. An easement in gross, personal to the neighbor
  2. A license revocable at will
  3. A profit a prendre
  4. An appurtenant easement that runs with the dominant and servient estates Correct answer.

Explanation

An easement that benefits a particular parcel of land (the dominant estate) is appurtenant and runs with the land, binding successive owners of the servient estate and benefiting successive owners of the dominant estate. The neighbor's adjoining parcel is the dominant tenement.

Question 11Florida specialist real-estate law: the instrument, title, transaction and remedy

Under Florida law, a deed must contain a legal description sufficient to identify the land. Which description is generally adequate for recording and conveyance?

  1. The property's street address alone
  2. The county property appraiser's parcel identification number standing alone
  3. A lot-and-block reference to a recorded plat, a metes-and-bounds description, or a government survey (section/township/range) description Correct answer.
  4. A description by reference to the seller's mortgage account number

Explanation

A sufficient legal description identifies the land with certainty, typically by lot and block of a recorded plat, metes and bounds, or the government rectangular survey. These descriptions allow the parcel to be located on the ground.

Question 12Florida specialist real-estate law: the instrument, title, transaction and remedy

A Florida grantor conveys 'to the City so long as the land is used as a public park, and if it ceases to be so used, the land shall revert to the grantor.' What estate and future interest result?

  1. Fee simple subject to a condition subsequent; grantor retains a right of entry
  2. Fee simple absolute with an unenforceable restriction
  3. Life estate; grantor retains a reversion
  4. Fee simple determinable; grantor retains a possibility of reverter Correct answer.

Explanation

Durational language ('so long as') followed by an automatic reverter creates a fee simple determinable, with the grantor retaining a possibility of reverter that vests automatically upon the stated event. The estate ends by its own terms if the condition fails.

Question 13Florida specialist real-estate law: the instrument, title, transaction and remedy

Effective January 1, 2024, Florida amended its deed-recording requirements regarding witnesses. What did that change add for instruments executed on or after that date?

  1. It required that the post office address of each witness be included on the instrument Correct answer.
  2. It eliminated the two-witness requirement for deeds
  3. It required all deeds to be electronically recorded only
  4. It required three subscribing witnesses for warranty deeds

Explanation

Effective January 1, 2024, Florida law (Fla. Stat. 695.26) requires that the post office address of each subscribing witness appear on instruments such as deeds presented for recording. The two-witness requirement of section 689.01 remains in place; the change adds witness address information.

Question 14Florida specialist real-estate law: the instrument, title, transaction and remedy

A Florida life tenant fails to pay the property taxes and allows the roof to collapse from neglect, diminishing the value to the remainderman. What doctrine allows the remainderman to seek relief?

  1. The rule against perpetuities
  2. The Marketable Record Title Act
  3. The doctrine of worthier title
  4. The doctrine of waste Correct answer.

Explanation

A life tenant owes duties to the remainderman not to commit waste, including paying ordinary taxes and interest on encumbrances and not permitting the property to deteriorate (permissive waste). The remainderman may sue to enjoin or recover for waste.

Question 15Florida specialist real-estate law: the instrument, title, transaction and remedy

An owner conveys Florida property to her son by quitclaim deed but keeps the deed in her desk drawer, telling no one, intending it to take effect only at her death. Has title passed?

  1. Yes, because the deed was signed and witnessed
  2. Yes, because a quitclaim deed is effective upon signing
  3. No, because there was no delivery with present intent to pass title Correct answer.
  4. No, because quitclaim deeds cannot be used between family members

Explanation

A deed must be delivered with present intent to convey. Retaining the deed without parting with control and intending it to operate only at death shows no present delivery, so no title passes; such an attempted testamentary transfer fails outside the will formalities.

Question 16Florida specialist real-estate law: the instrument, title, transaction and remedy

Under Florida's recording act (Fla. Stat. 695.01), Florida follows which type of recording priority rule?

  1. Pure race statute, where the first to record always wins
  2. First-in-time, first-in-right with no protection for later purchasers
  3. Race-notice statute, requiring the subsequent purchaser both to take without notice and to record first
  4. Notice statute, protecting a subsequent purchaser for value who takes without notice of a prior unrecorded interest Correct answer.

Explanation

Florida is a notice jurisdiction: under section 695.01, an unrecorded conveyance is not good against a subsequent purchaser for valuable consideration who takes without notice. The later bona fide purchaser prevails even if it does not record first.

Question 17Florida specialist real-estate law: the instrument, title, transaction and remedy

Under Florida's Marketable Record Title Act (Chapter 712), what is the 'root of title'?

  1. The most recent title transaction recorded at least 30 years before marketability is being determined Correct answer.
  2. The original Spanish or government land grant
  3. The deed currently vesting title in the present owner
  4. The earliest recorded instrument in the chain of title

Explanation

Under section 712.01, the 'root of title' is the last title transaction purporting to create or transfer the estate that was recorded at least 30 years before the date marketability is determined. MRTA extinguishes most claims dependent on matters predating the root of title.

Question 18Florida specialist real-estate law: the instrument, title, transaction and remedy

A title examiner finds a deed in the chain that conveys to a grantor who is not the same person as the grantee in the immediately prior deed, creating a missing link. This defect is commonly called what?

  1. A wild deed
  2. A scrivener's error
  3. An after-acquired title
  4. A gap or break in the chain of title Correct answer.

Explanation

A break in the chain of title occurs when there is a missing conveyance, so the record does not show how title passed from one owner to the next. The examiner must locate the missing instrument or obtain curative documentation before certifying marketable title.

Question 19Florida specialist real-estate law: the instrument, title, transaction and remedy

Under Chapter 712, a homeowners' association wants to preserve its declaration of covenants from extinguishment by the Marketable Record Title Act. What mechanism does MRTA provide?

  1. Obtaining a court declaration that MRTA does not apply to associations
  2. Recording a lis pendens against every lot in the community
  3. Filing a notice of preservation in the public records to preserve the covenants for an additional 30-year period Correct answer.
  4. Re-recording the original plat without amendment

Explanation

MRTA allows interest holders, including HOAs, to file a notice of preservation under sections 712.05-712.06 to prevent extinguishment of covenants and restrictions. The properly recorded notice preserves the interest and restarts the statutory period.

Question 20Florida specialist real-estate law: the instrument, title, transaction and remedy

Which of the following is NOT extinguished by the Marketable Record Title Act, even if it predates the root of title?

  1. A private restrictive covenant from a 1955 subdivision deed, never re-recorded
  2. An old mortgage satisfied decades ago but never released of record
  3. A stale option to purchase recorded before the root of title
  4. The rights of the United States or the State of Florida, and certain easements held by public utilities or government in use Correct answer.

Explanation

Section 712.04 preserves certain interests from extinguishment, including rights of the United States and the State of Florida, and recorded or unrecorded easements/rights of public utilities and governmental agencies that are in use. Most private stale claims predating the root are extinguished.

Question 21Florida specialist real-estate law: the instrument, title, transaction and remedy

A buyer's title commitment lists Schedule B-I requirements and Schedule B-II exceptions. What is the function of Schedule B-II in a Florida title insurance commitment?

  1. It lists the matters the policy will NOT insure against, such as recorded easements and restrictions Correct answer.
  2. It lists the conditions that must be satisfied before the policy issues
  3. It states the dollar amount of coverage
  4. It identifies the proposed insured and the estate being insured

Explanation

Schedule B-II of a title commitment lists the exceptions from coverage, the encumbrances and matters of record (easements, restrictions, mineral reservations, etc.) that the policy will not insure over. The buyer's attorney reviews these to assess what burdens the title.

Question 22Florida specialist real-estate law: the instrument, title, transaction and remedy

In a Florida title examination, an examiner discovers an unsatisfied money judgment recorded against the seller. How does a recorded Florida money judgment generally affect the seller's non-homestead real property in the county?

  1. It has no effect because judgments do not attach to real property in Florida
  2. It attaches only to the seller's homestead
  3. It automatically forecloses the property after 30 days
  4. It becomes a lien on the seller's non-exempt real property in the county when a certified copy is recorded in the official records Correct answer.

Explanation

Recording a certified copy of a money judgment in a county's official records creates a judgment lien on the debtor's real property in that county (other than homestead). The lien must typically be satisfied or released to deliver marketable title.

Question 23Florida specialist real-estate law: the instrument, title, transaction and remedy

What is the recording effect of a properly recorded deed under Florida law as to a later purchaser of the same land?

  1. It transfers title to the county clerk until claimed
  2. It guarantees the grantor had good title
  3. It provides constructive notice to subsequent purchasers and creditors of the conveyance Correct answer.
  4. It is required for the deed to be valid between grantor and grantee

Explanation

Proper recording in the official records imparts constructive notice to the world of the recorded instrument, defeating a later purchaser's claim to be a bona fide purchaser without notice. Recording protects priority; it does not warrant the grantor's title.

Question 24Florida specialist real-estate law: the instrument, title, transaction and remedy

A title search reveals a deed recorded outside the chain of title because the grantor never appears as a record owner. A later buyer purchases without actual knowledge of it. What is the status of that off-record deed as to the later buyer?

  1. It must be honored under the Marketable Record Title Act
  2. It binds the later buyer because all recorded instruments give notice
  3. It is automatically void as a forgery
  4. It is a wild deed that does not impart constructive notice to a subsequent purchaser Correct answer.

Explanation

A 'wild deed' is recorded but lies outside the searchable chain of title because its grantor is not a record owner. Because a reasonable title search would not locate it, it does not impart constructive notice and does not defeat a subsequent bona fide purchaser.

Question 25Florida specialist real-estate law: the instrument, title, transaction and remedy

An attorney examining title must determine whether title is 'marketable' for purposes of a sale contract. Marketable title under Florida contract law generally means title that:

  1. A reasonable, prudent purchaser, well-informed as to the facts and the law, would accept without fear of litigation Correct answer.
  2. Is perfect and free from every conceivable defect or doubt
  3. Has been insured by a title company at full value
  4. Has been held by the seller for at least 30 years

Explanation

Marketable title is title a reasonably prudent, well-informed purchaser would accept, free from reasonable doubt and not subject to the hazard of litigation. It need not be perfect; minor, non-substantive defects do not render title unmarketable.

Question 26Florida specialist real-estate law: the instrument, title, transaction and remedy

Under the Florida Bar/Florida Land Title Association uniform title standards, when a title defect is found, what is the preferred way to resolve a stale or technical defect of record?

  1. Ignore it if the seller assures the attorney it is not a problem
  2. File a quiet title action in every case regardless of severity
  3. Record a quitclaim deed from the buyer to the seller
  4. Obtain appropriate curative instruments, affidavits, or rely on applicable title standards and statutes such as MRTA Correct answer.

Explanation

Title examiners resolve defects through curative measures: corrective deeds, affidavits, releases, and reliance on title standards or statutes like MRTA and curative acts. Litigation (quiet title) is reserved for defects that cannot be cured by record evidence.

Question 27Florida specialist real-estate law: the instrument, title, transaction and remedy

A 2018 deed in the chain reserved a private easement to a prior owner but is described in the muniments of title beginning with the root. Under MRTA, what is the effect of an interest disclosed by the muniments of title since the root?

  1. It is extinguished automatically because MRTA extinguishes all pre-root interests
  2. It is converted into a fee simple in the easement holder
  3. It is preserved because section 712.03 excepts interests disclosed by the muniments of title on which the estate is based since the root Correct answer.
  4. It must be re-recorded annually to remain valid

Explanation

Section 712.03 preserves estates, interests, easements, and use restrictions that are disclosed by, or defects inherent in, the muniments of title on which the estate is based, beginning with the root of title. MRTA does not extinguish interests properly reflected in the post-root chain.

Question 28Florida specialist real-estate law: the instrument, title, transaction and remedy

A Florida residential real estate purchase contract is signed by buyer and seller, but the legal description is left blank and is described only as 'Seller's house on Oak Street.' What statute-of-frauds problem does this present?

  1. None, because oral descriptions are acceptable for residential sales
  2. The statute of frauds does not apply to purchase contracts, only to deeds
  3. The contract is automatically valid once earnest money is paid
  4. The contract may be unenforceable because the writing must contain or reference a sufficient description of the land under the statute of frauds (Fla. Stat. 725.01) Correct answer.

Explanation

Florida's statute of frauds (Fla. Stat. 725.01) requires contracts for the sale of land to be in writing, signed by the party to be charged, and to contain or reference a description sufficient to identify the property. A vague description risks unenforceability for indefiniteness.

Question 29Florida specialist real-estate law: the instrument, title, transaction and remedy

Under the doctrine of equitable conversion as applied in Florida, what happens to the parties' interests once a valid, enforceable land sale contract is signed but before closing?

  1. The buyer is treated as the equitable owner; the seller holds legal title as security for the purchase price Correct answer.
  2. The seller remains both legal and equitable owner until the deed is delivered
  3. Title passes immediately and the contract becomes a deed
  4. The buyer holds no interest until recording the deed

Explanation

Under equitable conversion, once an enforceable land contract exists, equity regards the buyer as the equitable owner of the real property and the seller as holding legal title in trust as security for the unpaid price. This affects risk of loss and devolution on death.

Question 30Florida specialist real-estate law: the instrument, title, transaction and remedy

In a Florida residential sale, the seller fails or refuses to close on a valid contract for the sale of unique real property. What remedy is generally available to the ready, willing, and able buyer?

  1. Only return of the deposit, with no other remedy
  2. Treble damages under the statute of frauds
  3. Specific performance to compel conveyance, because real property is considered unique Correct answer.
  4. Automatic transfer of title without court action

Explanation

Because each parcel of real property is considered unique, money damages are deemed inadequate, and a buyer may seek specific performance to compel the seller to convey. The buyer must show readiness, willingness, and ability to perform.

Question 31Florida specialist real-estate law: the instrument, title, transaction and remedy

Under Florida law (Fla. Stat. 689.25 and case law such as Johnson v. Davis), what disclosure duty does a seller of residential real property owe a buyer?

  1. No duty; Florida is strictly caveat emptor for all home sales
  2. A duty to disclose only matters of public record
  3. A duty to disclose facts materially affecting the value of the property that are not readily observable and not known to the buyer Correct answer.
  4. A duty to guarantee the home is defect-free

Explanation

Johnson v. Davis (Fla. 1985) holds that a seller of a home must disclose facts materially affecting the value of the property that are not readily observable and are not known to the buyer. This modified the old caveat emptor rule for residential sales.

Question 32Florida specialist real-estate law: the instrument, title, transaction and remedy

A Florida purchase contract provides for a $20,000 earnest-money deposit and states that, on buyer default, the seller may retain the deposit as 'liquidated damages.' Under Florida law, such a clause is generally enforceable if:

  1. The deposit equals exactly ten percent of the price
  2. It is always enforceable because the parties agreed to it
  3. The seller actually suffered no damages
  4. The amount is a reasonable forecast of damages and actual damages were difficult to ascertain at contract formation Correct answer.

Explanation

A liquidated-damages clause is enforceable in Florida if the damages were not readily ascertainable at the time of contracting and the stipulated sum is a reasonable estimate of probable damages, not a penalty. If it operates as a penalty, courts will not enforce it.

Question 33Florida specialist real-estate law: the instrument, title, transaction and remedy

At a Florida real estate closing, the parties prorate property taxes, prepaid items, and adjust for the deposit and mortgage payoff. What document itemizes these debits and credits between buyer and seller?

  1. The closing/settlement statement (e.g., ALTA settlement statement or Closing Disclosure) Correct answer.
  2. The title commitment
  3. The promissory note
  4. The estoppel letter

Explanation

The closing or settlement statement itemizes all debits and credits to buyer and seller, including prorations, payoffs, deposits, and closing costs. For most federally related residential mortgage loans, the Closing Disclosure serves this function under TRID rules.

Question 34Florida specialist real-estate law: the instrument, title, transaction and remedy

A condominium buyer in Florida signs a contract to purchase a resale unit. What disclosure-related right does Florida's Condominium Act give a resale buyer regarding the association?

  1. No rights; condo resales are exempt from disclosure
  2. A right to cancel within 30 days for any reason
  3. A right to receive governing documents and a frequently asked questions and answers sheet, with a 3-business-day cancellation right when required documents are not timely provided Correct answer.
  4. A right to refuse to pay any assessments for the first year

Explanation

Under section 718.503, a resale condominium buyer is entitled to certain governing documents and a Q&A sheet. When required documents are not timely furnished, the buyer has a 3-business-day right to cancel after receiving them (subject to the statute's specifics).

Question 35Florida specialist real-estate law: the instrument, title, transaction and remedy

Documentary stamp tax on a Florida deed is generally calculated based on what amount, and at what rate (outside Miami-Dade County)?

  1. The assessed value, at a flat $1.00 per deed
  2. The mortgage amount, at $0.35 per $100
  3. The consideration paid, at $0.70 per $100 (or fraction thereof) of consideration Correct answer.
  4. The buyer's income, at a graduated rate

Explanation

Documentary stamp tax on deeds in Florida (other than Miami-Dade County) is $0.70 per $100 of the consideration. The $0.35 per $100 rate applies to promissory notes/mortgages (documentary stamps on the obligation), a separate tax.

Question 36Florida specialist real-estate law: the instrument, title, transaction and remedy

A Florida 'AS IS' residential purchase contract (the FAR/BAR AS IS form) gives the buyer an inspection period. What is the buyer's principal right during that inspection period?

  1. To demand the seller repair all defects at the seller's expense
  2. To extend the closing indefinitely
  3. To unilaterally reduce the purchase price by the cost of repairs
  4. To cancel the contract within the inspection period in the buyer's sole discretion and recover the deposit, while the seller is not obligated to make repairs Correct answer.

Explanation

Under the AS IS contract, the seller has no obligation to repair, but the buyer may cancel within the inspection period at the buyer's sole discretion and receive a refund of the deposit. The buyer's leverage is the cancellation right, not a repair demand.

Question 37Florida specialist real-estate law: the instrument, title, transaction and remedy

Florida's good-funds principle governs disbursement at closing. Under the Florida closing agent's good-funds rules, a closing agent generally may not disburse against which of the following until it is collected?

  1. An uncollected personal or business check that has not yet cleared Correct answer.
  2. A cashier's check issued by a Florida financial institution
  3. A wire transfer received into the agent's trust account
  4. A certified check that has been deposited and collected

Explanation

Florida's good-funds statute (Fla. Stat. 695.265) and title-industry rules require that funds be collected before disbursement; a closing agent should not disburse against an uncollected personal or business check. Wires and certain collected instruments are treated as good funds.

Question 38Florida specialist real-estate law: the instrument, title, transaction and remedy

A Florida buyer's contract is contingent on obtaining financing. The buyer makes a good-faith effort but is denied a loan within the financing period and timely notifies the seller. What is the typical result?

  1. The buyer forfeits the deposit for failing to close
  2. The seller may compel the buyer to pay cash
  3. The contract is terminated and the buyer is entitled to return of the deposit Correct answer.
  4. The buyer must accept seller financing

Explanation

A financing contingency conditions the buyer's obligation on obtaining a qualifying loan. If, after a good-faith effort, the buyer is denied and gives timely notice within the financing period, the contract terminates and the deposit is refunded.

Question 39Florida specialist real-estate law: the instrument, title, transaction and remedy

Under FIRPTA (the Foreign Investment in Real Property Tax Act), when a foreign person sells U.S. real property, the buyer generally must:

  1. Pay the seller's entire capital gains tax
  2. Report the sale to the Florida Department of State
  3. Withhold a percentage of the amount realized and remit it to the IRS unless an exemption or reduced rate applies Correct answer.
  4. Obtain a Florida real estate license

Explanation

FIRPTA requires the buyer (transferee) to withhold a portion of the amount realized (commonly 15%) on a disposition by a foreign seller and remit it to the IRS, unless an exemption or reduced withholding certificate applies. The buyer is liable if it fails to withhold.

Question 40Florida specialist real-estate law: the instrument, title, transaction and remedy

A buyer and seller dispute whether 'time is of the essence' applies to the closing date in a Florida contract that does not expressly so state. What is the general rule?

  1. Time is automatically of the essence in all Florida land contracts
  2. Only the seller is bound to the closing date
  3. The closing date is merely a suggestion with no legal effect
  4. Absent an express 'time is of the essence' clause or circumstances showing such intent, a reasonable time to perform is allowed and a short delay is not necessarily a material breach Correct answer.

Explanation

In Florida, time is not of the essence in a land contract unless the contract so provides or circumstances demonstrate that the parties so intended. Without that, a party is generally entitled to a reasonable time to perform, and a minor delay may not be a material breach.

Question 41Florida specialist real-estate law: the instrument, title, transaction and remedy

What instrument creates the lien securing repayment of a residential home loan in Florida, the predominant lien-theory device used in this state?

  1. A mortgage, under which the borrower retains title and grants a lien to the lender Correct answer.
  2. A deed of trust with a trustee holding legal title
  3. A land trust agreement
  4. A satisfaction of mortgage

Explanation

Florida is a lien-theory, mortgage state: the borrower (mortgagor) retains legal title and grants the lender (mortgagee) a lien on the property as security. Florida mortgages are foreclosed judicially under Chapter 702.

Question 42Florida specialist real-estate law: the instrument, title, transaction and remedy

How are mortgages foreclosed in Florida?

  1. By nonjudicial power-of-sale conducted by a trustee
  2. By strict foreclosure without any sale
  3. Judicially, in equity, through a court action under Chapter 702 Correct answer.
  4. Automatically 90 days after default with no court involvement

Explanation

Section 702.01 provides that all mortgages are foreclosed in equity through a judicial proceeding. The lender files suit, obtains a final judgment of foreclosure, and the property is sold at a clerk's judicial sale.

Question 43Florida specialist real-estate law: the instrument, title, transaction and remedy

When does a Florida mortgagor's common-law equity of redemption terminate in a judicial foreclosure?

  1. Thirty days after the final judgment regardless of sale
  2. Upon the filing of the foreclosure complaint
  3. When the clerk files the certificate of sale (or as otherwise specified by the judgment), cutting off the right to redeem Correct answer.
  4. It never terminates; Florida allows redemption forever

Explanation

Under section 45.0315, the mortgagor may cure the default and redeem at any time before the later of the clerk's filing of the certificate of sale or the time specified in the foreclosure judgment. After that point, the right of redemption is cut off.

Question 44Florida specialist real-estate law: the instrument, title, transaction and remedy

A lender forecloses a Florida mortgage, and the judicial sale yields less than the debt owed. What may the lender pursue for the shortfall?

  1. Nothing; Florida prohibits any recovery beyond the sale proceeds
  2. Treble the deficiency as a statutory penalty
  3. Immediate seizure of the borrower's homestead
  4. A deficiency judgment for the difference between the debt and the fair value of the property (subject to statutory limits) Correct answer.

Explanation

Florida allows a deficiency judgment for the difference between the total debt and the property's fair market value at the time of sale, subject to limits in section 702.06 and a statute of limitations (one year for residential 1-4 unit properties under section 95.11(5)(h)).

Question 45Florida specialist real-estate law: the instrument, title, transaction and remedy

In a Florida foreclosure, what is the function and effect of recording a notice of lis pendens?

  1. It provides notice of the pending litigation so that persons acquiring an interest after it is recorded take subject to the outcome of the foreclosure Correct answer.
  2. It satisfies the underlying mortgage debt
  3. It transfers title to the foreclosing lender
  4. It releases all junior liens immediately

Explanation

A lis pendens (Fla. Stat. 48.23) gives constructive notice of pending litigation affecting title. Interests acquired after a properly recorded lis pendens are bound by the judgment, and junior interests not joined but on notice may be foreclosed or barred as provided by statute.

Question 46Florida specialist real-estate law: the instrument, title, transaction and remedy

Two mortgages encumber the same Florida property: Mortgage A was recorded first, Mortgage B second, and both lenders took without notice issues. In a foreclosure by Mortgage A, what is Mortgage B's status?

  1. Mortgage B has priority because second mortgages are senior
  2. Mortgage B is unaffected and survives the foreclosure regardless
  3. Mortgage B is a junior lien; foreclosure of the senior Mortgage A, if B is properly joined, extinguishes B's lien on the property (B may pursue any surplus) Correct answer.
  4. Mortgage B and Mortgage A share equal priority

Explanation

Under Florida's notice recording system, the first-recorded mortgage generally has priority. Foreclosure of the senior mortgage, with the junior lienholder joined as a defendant, extinguishes the junior lien on the property; the junior may claim any surplus from the sale.

Question 47Florida specialist real-estate law: the instrument, title, transaction and remedy

A Florida county records a tax certificate for unpaid ad valorem property taxes. How does a property-tax lien rank against a previously recorded private mortgage?

  1. Junior to the mortgage because the mortgage was recorded first
  2. Equal in priority and shared pro rata
  3. Superior to the mortgage; ad valorem tax liens are first priority and survive a private foreclosure unless paid Correct answer.
  4. Automatically extinguished by the mortgage

Explanation

Under Florida law (Fla. Stat. 197.122), ad valorem property tax liens are superior to all other liens, including prior recorded mortgages. They are paramount and generally must be paid; a private mortgage foreclosure does not wipe out the tax lien.

Question 48Florida specialist real-estate law: the instrument, title, transaction and remedy

Documentary stamp tax and a separate nonrecurring tax apply to a recorded Florida mortgage. What is the additional tax imposed specifically on the recording of a mortgage securing real property?

  1. No additional tax beyond the deed doc-stamp tax
  2. A flat $500 recording surcharge
  3. Sales tax at 6 percent of the loan amount
  4. A documentary stamp tax on the note plus nonrecurring intangible tax of $0.002 (2 mills) per dollar of the secured obligation Correct answer.

Explanation

A Florida mortgage triggers documentary stamp tax on the note/written obligation ($0.35 per $100) plus the nonrecurring intangible personal property tax of $0.002 (2 mills) per dollar of the indebtedness secured by the mortgage (Fla. Stat. ch. 199).

Question 49Florida specialist real-estate law: the instrument, title, transaction and remedy

After a Florida mortgage loan is paid in full, what must the mortgagee do, and within what statutory period under Fla. Stat. 701.04?

  1. Execute and deliver (or record) a satisfaction of mortgage within the statutory period after full payment and written request, or face liability Correct answer.
  2. Nothing; the lien expires automatically
  3. File a new mortgage releasing the old one
  4. Wait 30 years for MRTA to clear the lien

Explanation

Section 701.04 requires the mortgagee, upon full payment and proper request, to execute and deliver a satisfaction of mortgage within the statutory period (e.g., within 30 days of receiving payment in full). Failure can expose the lender to damages.

Question 50Florida specialist real-estate law: the instrument, title, transaction and remedy

A seller conveys Florida property and finances part of the price, taking back a mortgage at the same closing. This purchase-money mortgage generally enjoys what priority?

  1. Priority over judgment liens and other claims that would otherwise attach to the buyer the instant title vests, because the buyer never held the property free of the purchase-money mortgage Correct answer.
  2. Junior to all prior judgment liens against the buyer
  3. No priority; it is treated like any later-recorded mortgage
  4. Priority only if recorded within 90 days

Explanation

A purchase-money mortgage given as part of the same transaction by which the buyer acquires title takes priority over pre-existing claims against the buyer (such as prior judgment liens), because the buyer's title and the PMM lien arise simultaneously; the buyer never owned the land free of the PMM.