Assignment 1 - Business Flashcards
Broker
The broker negotiates with both parties to secure an agreement of the minds and does follow-up with other appropriate entities to close the transaction.
Farming
Real estate brokers and sales associates often specialize in a particular geographic area or property type. This method of target marketing is often called “farming”, the idea is for the professional to become more personally familiar with the residents and vice
Appraisal
4) Real estate licensees may appraise real property provided they do not represent themselves as state-certified, registered or licensed appraisers
5) Real estate licensees must comport to USPAP when conducting appraisals of real property–define USPAP
BPO
Sales associates may perform BPOs only at the direction and under the control and management of the associate’s employing broker. If a sales associate or broker associate performs a BPO, the compensation must be paid to the broker and not directly to the sales associate or broker associate who prepared the BPO. The USPAP standards of practice do not apply to brokers, broker associates, and sales associates who, in the ordinary course of business, perform CMAs or broker price opinions.
FREAB
The Florida Real Estate Appraisal Board (FREAB) is headquartered in Orlando and consists of nine members. The FREAB administers and enforces the real estate appraiser license law, Chapter 475, Part II, and Florida Statutes.
S&Ls
Provide the majority of financing for owner-occupied single family dwellings in the U.S. and are considered second in asset size to commercial banks. S&Ls provide primarily conventional mortgages for single family dwellings but do offer a smaller percentage in Federal Housing Association (FHA) insured and Veterans Association (VA) guaranteed loans. Traditionally, these loans are provided for the local community in proximity to the S&L. They are either state chartered or federally chartered institutions.
Commercial Banks
Comprise the largest assets of financial sources but are primarily involved with short-term construction loans typically six months to a year or more in duration. They are either nationally or state chartered. Nationally chartered banks are supervised by the Comptroller of the Currency and are required to be members of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve System (FRS). They must also include the word “National” as part of their title. State-chartered commercial banks are regulated by their individual states and have no requirements for membership in FDIC or FRS.
Subdivision Plat Map
A subdivision plat map details the layout of the proposed building site including buildings, infrastructure and landscaping and must be approved before any construction or marketing can begin. Once the subdivision plat map is approved, it is then recorded in the public records.
Types of Residential Construction
a) Speculative (spec) homes, built without having a specific buyer in mind. Sometimes these homes are used as displays; many times they are used for buyers who need a house in a hurry and can’t wait to have a new home built. “Spec” homes help keep construction crews busy during off-peak times.
b) Tract homes are a type of speculative building. A new subdivision will feature several model homes. Buyers select a floor plan from the models and a lot on which to build in the new subdivision.
c) A custom home is one that is built for a specific buyer, usually using an architect and drawings that the buyer has formulated. Custom homes are built one at a time and are generally much more expensive than other homes.
Salesperson
Any salesperson that performs such services is required to work for a broker and is not allowed to operate independently and without supervision
