Chapter 1 Flashcards
Econimist believe real estate represen
directly and indirectly 25% of US economy
The real estate brokeage by deifnition
is that business which brings interested parties together to sell, lease, and rent or exchange real property.
Real Estate Farming is
When professionals specialize in one particular geographic area or property type
There are six major real estate specialties which are
Residential - in Florida is a family home that is a single family dwelling, a duplex, a triplex (3 units) or a quad (4 units), or vacant land that has been zoned for 4 units or less
Commercial
Industrial property
Agricultural property - ranch or farm land
Business opportunity
Special Purpose property - schools, churches, nursing homes, etc.
In Florida, most owners are
Absentee property owners, who own but do not reside
Fiduciary means
a person having a duty to act primarily for another’s benefit. It involves duties such as good faith, trust, special confidence and candor.
A property management agreement must have
The name and address of the owner
The name and address of the property manager
An address and legal description of the property
The start and end date of the agreement
Specific services to be rendered
Extent of the property managers’ authority
Procedures for reporting on the status of the property
Method and schedule of compensation
Signature of owner
Signature of the property manager
Four maintenance type that a property manager must perform
Preventative maintenance - is work done before expensive repair work is needed such as caulking windows and doors, changing furnace filters etc.
Routine maintenance is consists of lawn mowing, cleaning carpets and other day to day cleanup, which keeps the property in order for tenancy
Repair Maintenance involves fixing the broken water heater or dishwasher. A property in disrepair is hard to rent.
Construction Maintenance is a total remodel or addition.
The property manager owes to the property owner
honesty
accuracy
disclosure of material facts
An appraisal is
is an estimation of value. It is done by appraisers using specific techniques and is done for a variety of reasons including obtaining a loan, obtaining insurance value,
An appraiser usually does is what called a
fee base appraisal
There are three level of appraisals
Registered Trainee appraiser – must work under guidance of a Certified Residential Appraiser or a Certified General Appraiser;
Certified Residential Appraiser – Appraises residential properties;
Certified General Appraiser – may perform any type of commercial or residential appraisal.
Appraisers are regulated by
The Florida Real Estate Appraisal Board (FREAB) is headquartered in Orlando and consists of nine members.
Anyone who appraises property must conform to
the USPA (Uniform Standards of Professional Appraisal Practice
USPA
Sets the standards to promote and maintain a high level of public trust in professional appraisal practice
Broker price opinion is requested
- From a local expert to collect data and provide it in a specific format to the requesting bank.
- These opinions may be to determine a quick sale price for a short sale property, a foreclosed property which is to be listed, or a deed in lieu of foreclosure property which has been given to the company by a borrower.
When land is prepared to be developed into subdivisions or commercial ventures, there are several steps that a developer must take
land acquisition
subdividing and development
subdivision plat map and recording
construction
Assemblage is when
the developer is “repurposing” property for its highest and best use, he may assemble several small pieces of land to create a large piece;
The subdivision plat map is
a visual drawing of where each lot and block will be located, as well as streets, parks and utilities. This is submitted to the municipality for consideration. When it is approved, the plat map is recorded in the county where the property is located.
Many times as a condition of approval of the plat map, a sub-divider is required
to dedicate a certain portion of land for public use for such things as streets, parks, schools, or green areas. A builder buys the property and establishes subdivision covenants and restriction for use in that subdivision alone. The restrictions are private restrictions. Public restrictions
In residential home construction, three types of homes are usually built.
“Spec” homes mean speculation homes, built without having a specific buyer in mind
Tract homes are built to a certain set of guidelines used for a particular subdivision.
A custom home is one that is built for a specific buyer
Professional organizations for the Real Estate profession
National Association of REALTORS® (NAR), FloridaREALTORS® (FR), and the local Board (association) of REALTORS®
