Ch. 1-8 Flashcards
What are property related functions?
creation/improvements management demo investment ownership regulation transfer
What % of our economy is directly/indirectly linked to real estate activity?
25%
What is property transfer?
transfer permanent ownership by deed, will, inheritance
What is needed to know market conditions?
market saturation, how it can be financed, property sales, property value
How do you market real estate?
with pricing, relationships with other agents, service buyers and sellers.
What is farming?
scouting out one particular geographical area and ultimately specializing in that area.
What is a residential property?
home of single family, duplex, triplex, quad or vacant land zoned for <4 units, farm land < 10 acres
What is commercial property?
Income producing property >4 units
What is industrial property
(usually) manufactures or distributes products
What is agricultural property?
> 10 acres
Who can be a property manager?
licensed rel estate brokers
Fiduciary
Act on behalf of someone
What are the property managers duties?
preventative, routine, repair, and construction maintenance
How do you asses property value?
appraisal, brokerage price opinion (BPO), comparative market analysis
Comparative market analysis
recent home sales, homes on market, listed but not sold homes
MLS (multiple listing service)
database of homes >1 year old. Increase seller exposure and buyer options.
Assemblage
developer assembles small pieces of land to create one large
Subdivision plat map
visual of where each lot and street will go. *must allocate land for public use
What are land developer duties?
acquire land, subdivide and develop, plat map and recording, construction
What is the new license application process?
apply for assoc RE1 license, RE11 broker applies for assoc, 30 days to notify of any issues and 90 for approval/deny
Denial of licensure
Failure to pay, fingerprint, or pass exam. Incorrect application or under investigations
Requirements for post license course
required during first license period, 45 class hours with 90% attendance, score 75% or higher
When is a license null and void?
If not met requirements within 2 years
_______ is the executive branch of FL state government
Dept of Business and Professional Regulation
______ operates as consumer protection agency
Dept of Business and Professional Regulation
What are the DBPR three areas of enforcement?
- Div of Professions
- Div of Regulation
- Bureau of Education & Testing
What are a few components of the Bureau of Education & Testing?
protects he safety & welfare of public by examining and licensing professionals. 5 exec directors, 8 offices, 2 satellite offices.
What is the FREC?
FL real estate commission; create rules for taking exams and licenses.
Who makes up the FREC?
7 volunteers; 4 licensed brokers (5+ yrs), 1 broker or assoc (2+ yrs), 2 consumers (1 60+ yrs old)
What are the actions of the FREC?
make rules that power as laws, publish, educate, investigate, impose disciplinary action, create certificates which hold up in court.
What is the administration arm of the FREC
Div of Real Estate
What are the services of the Div of Real Estate?
record keeping, examination, legal services, investigation
What is the broker license renewal period?
First renewal period: 18-24 mths then every 2 yrs. 60hrs of continuing education
What is the assoc license renewal period?
45 hours of post-license education, you are required to complete 14 hours of Florida real estate continuing education during every two-year license period thereafter.
What are the two ways your license inactive?
Voluntary: not renewed, paid, or continued ed
Involuntary: imposed by FREC- unpaid renewal fee or renew, incomplete education, works for inactive broker.
When is a real estate license effective?
Once notified by the Div of Real Estate
Who are the principal, agent, and customer?
p= client a= broker c= 3rd party (a prospect not represented by agent)
What is a listing agreement
authorizes broker to work for compensation. Governed by contract and agency law
Describe agency law
defines roles of all parties, fiduciary duties of agent, and agents scope of authority.
What is the broker’s relationship act?
(1) Cannot be represented by a dual agency
(2) Disclosure of authorized forms of brokerage representation
(3) Single agents may represent either a buyer or a seller, but not both, in a real estate transaction
(4) Transaction brokers provide a limited form of non-fiduciary representation to a buyer, a seller, or both in a real estate transaction.
It was created to inform and educate the public regarding the types of authorities
Caveat Emptor
“Let the buyer beware”
Law currently on record is _____?
statutory law
Procedures set by precedent from previous cases?
common law
What are the 3 types of agency?
- Universal (handles all delegated business of principal)
- General (handles multiple transactions. Assoc is general agent)
- Agency coupled with intrest (when licensee partners in ownership of property and represents partners)
What are 3 ways an agency relationship is created?
- written
- implied
- ratification (two people meet, seller agrees to work with agent
4 types of agency relationships
- no brokerage
- single agent
- transaction: rep transaction with no fiduciary responsibility
- designated sales assoc: non-residential transactions
The result of failing to disclose
deny app for renewal, probation, suspend, fine up to $1,000,
How long must disclosure forms be kept?
5 years and 2 more after legal proceeding
What terminates an agency?
purchase/sale complete, listing agreement expired, quit/fired, mutual consent, change in property (zoning,etc), bankruptcy
Where do you register office?
with DBPR
What are the signage laws for an office?
sign at entrance or adjacent to door, each branch office needs sign, home office applies too: trade name, broker name
When do the funds get deposited into escrow?
within 3 days of receipt from the principal.
-10 days to get written verification of receipt of funds when the escrow agent is a title company, attorney, or not selected by seller
Who can access escrow account and when?
Only signatory broker and must be reconciled within 30 days of the last reconciliation. Up to $1,000 in each acct of his/her own money.
Can broker have an interest bearing escrow acct?
Yes, but name of receiver and date to distribute must be in writing.
what book keeping is required for an escrow acct?
Must be reconciled monthly with all deposits noted; deposit slips, books, statements, name(s), outstanding checks, itemized list of broker’s liabilities,
What do you do when there is a dispute over the return of earnest money?
Broker has 15 days, from demand, to report to FREC. And if broker has good faith doubt then has 30 days to mediate, arbitrate, litigate.
What do you do when there is a dispute over the return of earnest money?
Broker has 15 days, from demand, to report to FREC. And if broker has good faith doubt then has 30 days to escrow disbursement order, mediate, arbitrate, litigate. 10 days to notify FREC, once settled.
what are the two terms of a refund on a rental property
75% of broker fee back if tenant does not find rental
100% broker fee back if information is inaccurate. Must be requested in 30 days.
What is “puffing”?
When a broker gives ‘opinion of title’ and talks up the property.
What types of commission can broker receive?
% of sale
flat fee
both
What is the Sherman Anti-trust Act?
Forbids price fixing and dividing broker territories by price or location. Fine can be up to 10yrs in jail or up to $1M in fines.
What are the stipulations on “kickbacks”
“ok” from laborer recommendation (i.e. carpet installer), but not a mortgage or title company.
What is RESPA?
Real Estate Settlement Procedures Act: Protects consumers against kickbacks and referral fees
What is required with broker change of address?
10 days to notify FRECwith DBPR form with address change and names of employees. Failure is ineffective licenses and fine.
What are the four types of real estate partnerships?
- sole propriatership
- general partnership (assoc cannot be partner)
- limited partnership (must file with sec of state)
- corporation
What are the sources of the standard ethics code?
- federal & state legislation
- state real estate licensing regulation
- self regulation
what are the steps to remedy a complaint of ethics?
- file with DBPR (FREC concludes guilt)
- investigate
- probable cause (30 days to “judge”)
- formal complaint
- informal hearing
- formal hearing
- final order
- judicial review
How long is probation?
90 days starting within 30 days of final order.
Civil Rights Act of 1866
discrimination in real estate
Civil Rights Act of 1964
discrimination in subsidized housing
Federal Fair Housing Act 1968
discrimination in housing against race, religion
Housing and Community Development Act of 1974
added discrimination against gender
Fed Fair Housing Amendment of 1988
added discrimination against mental or physical handicap
“Steering”
leading buyer away from an area
“redlining”
Lender outlining an area to avoid
“blockbusting”
panic selling
what is not covered in the discrimination acts?
age, marital status, and occupation
where do discrimination complaints get directed?
Federal district court or HUD
Landlord and Tenant Act
- year to year- 60 days notice to vacate
- qtr to qtr- 30 days notice to vacate
- month to month-15 days notice to vacate
- week to week- 7 days notics
What is included in land rights?
surface area, beneath surface, all things permanently attached to Earth.
“accretion”
land deposits of soil by water action
“errosian”
vearing away of land by flowing water
“avulsion”
sudden land loss by natural disaster
“alluvial plain”
soil deposited by river
“reliction”
increase in land due to receding water
What are riparian rights?
water rights for land bordering navigable water (river or stream)
What are littoral rights?
Water rights for land bordering a shore (ocean, delta, sea or lake)
“annexation”
changes personal (agricultural) property to real i.e. a tree planted
“Fructus industriales”
Growing crops are personal property. Crops are transferred as a part of real estate
“fructus naturales”
perennials that do not require cultivation are “real property”
Real vs. Personal property
Real is land and privileges and personal is readily movable
what is the bundle of rights that come with a real estate purchase
sale, use of, lease, encumber (borrow against), exclude (no trespassing signs), will, occupy, cultivate, share, trade, mortgage, dedicate
