Florida — Financing — Florida Real Estate — State Law Practice Test

This Florida Real Estate — State Law Florida — Financing practice set has 8 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Florida — Financing bank with the correct answer and an explanation. The practice quiz above draws 8 questions at random from the same bank.

1. Florida is a "lien theory" state with respect to mortgages. What does this mean for the relationship between a Florida borrower and lender?

   • The borrower keeps legal title and the lender holds only a lien as security — Correct answer
   • The lender holds legal title until the loan is paid in full
   • A trustee holds title for the lender's benefit
   • Title is split equally between borrower and lender

   Explanation: In a lien-theory state, the borrower (mortgagor) keeps legal title to the property and the lender (mortgagee) holds only a lien as security — the lender does not hold title and must foreclose to take the property. Lien theory（留置权理论 / teoría del gravamen）: FL rule that the borrower keeps title and the lender holds a lien. Source: Florida mortgage law (lien-theory state).

   Handbook: Florida Financing — lien-theory mortgages (FL mortgage law)

2. A buyer signs a $200,000 promissory note secured by a Florida mortgage. At the rate set by Florida law, how much Florida documentary stamp tax is due on the NOTE?

   • $700 — Correct answer
   • $1,400
   • $400
   • $350

   Explanation: Florida's documentary stamp tax on promissory notes is $0.35 per $100 (or fraction) of the obligation. $200,000 ÷ $100 = 2,000 increments × $0.35 = $700. (The $2,450 cap applies only to notes NOT secured by Florida real property; a mortgage-secured note like this one is uncapped.) Documentary stamp tax on notes（票据印花税 / impuesto de sellos sobre pagarés）: $0.35/$100 in FL. Source: §201.08 FS.

   Handbook: Florida Financing — documentary stamp tax on notes $0.35/$100 (§201.08 FS)

3. A new Florida mortgage secures a $200,000 loan on Florida real property. At the Florida nonrecurring intangible tax rate, how much intangible tax is due on the new MORTGAGE?

   • $400 — Correct answer
   • $700
   • $1,400
   • $200

   Explanation: Florida's nonrecurring intangible tax on a new mortgage is $0.002 per $1 (2 mills) of the secured obligation. $200,000 × 0.002 = $400. This is in addition to the documentary stamp tax on the note. Intangible tax（无形资产税 / impuesto sobre intangibles）: 2 mills ($0.002/$1) on new FL mortgages. Source: §199.133 FS.

   Handbook: Florida Financing — nonrecurring intangible tax on mortgages $0.002/$1 (§199.133 FS)