Extreme Focus Flashcards
How are appraisers paid?
Appraisers charging the based on the difficulty of the work. Appraisers are not pay any commission to reduce the possibility of a conflict of interest
What is uniform standards of professional appraisal practices
Guidelines to follow when providing appraisal services
What applicants cautioned to do
Complete the application very carefully, particularly with respect history concerning felonies, misdemeanors, and traffic offenses
Non-residential applicant who wishes to become licensee in Florida must consent to what
To service section on the license application and the consent must be notarized
What are the eight states that the frec entered into mutual recognition agreements
Alabama Arkansas Connecticut Georgia Indiana Mississippi Nebraska and Oklahoma
What does frec consider to define a resident
A person who has resided in Florida continuously for a period of four calendar months or more within the preceding year regardless of whether the person resided in a recreational vehicle hotel rental unit or other temporary or permanent location
What must applicants be to qualify
Be 18 have a high school diploma or equivalent possess a Social Security number be honest trustworthy and be confident and qualified to make real estate transactions and negotiations with investors and others
What does course one consist of
60 hours of instruction Plus three hours of examination The end of course examination consists of 100 questions with one point each and is normally on the night with 45 questions on principles and practices 45 questions on the real estate law and 10 math questions
How many hours is the sales associate post requirement
45 hours
After completing the post licensing education requirements during the initial Licensees complete at least what
14 hours during every two year period after that
How many hours of instruction and end of course exam hours must a broker must a broker complete
69 hours of instruction +3 hours for that and of course examination
What are the four settlement procedures Male
mediation arbitration litigation and escrow disbursement order
What are the more ways to determine a fixture Irma
intent relationship method adaptation
What Classifies joint Tenancy PITT
Possession interest title and time
What are private restrictions DELL
Deed Restriction Easements Lease & Liens
What are government restrictions PET
Police Power
Eminent Domain
Taxation
Disposition
Sell or give away
Use
Control
Possession
Occupy
Exclusion
Quiet enjoyment
Ch 475
Florida Real Estate Law
455
Regulation of Professions & Occupations (DBPR)
61j2
Florida real estate commission (FREC)
28
Division of Administrative Hearings
120
Administrative Procedures Act
Real Estate service includes any real estate activity involving compensation for performing the service for another ABARSALE
Advertise real estate services, Buy, Appraise, Rent or provide rental information or lists, Sell, Auction, Lease, Exchange
Are property owners and salaried employees of business entities exempt from having a real estate license?
Yes
Who else is exempt from holding a real estate license
People selling Cemetery lots, and Attorneys who are paid to do so
FREC members do not receive a salary but how much are they paid
50$ per day for each day they attend an official meeting and each day they participate in other commission business
All real estate licenses are issued with what two expiration dates
March 31st and September 30th
How many months after a licensee gets back from serving his country does he have to follow renewal provisions?
6 Months
What status does your license go into when you voluntarily choose to not practice real estate
Voluntary inactive
If a licensee fails to renew an active or voluntary inactive license before the renewal period what happens
Your license reverts to involuntary inactive
If your license is suspended, you are prevented from working for a period of time. What is the max
10 years
A broker who holds more than one Florida broker license is said to hold what?
A Multiple License
When is a Group license issued to sales associates
when they are registered under an owner developer. An owner developer may own properties in the names of various entities
Who is a Principal
A person who delegates authority to another
Who is an agent
A person entrusted with another’s business is authorized to represent and act for the principal
What does a fiduciary act in
A position of trust or confidence for another. The fiduciary owes complete allegiance to the principal
What is a transaction broker?
A broker who provides limited representation to a buyer , a seller, or both in a real estate transaction, but who does not represent either party in a fiduciary capacity or as a single agent
Define a Single Agent
A broker who represents, as a fiduciary, either the buyer or the seller, but no both, in the same transaction (Full Disclosure)
What are the three duties a real estate licensee working in a no brokerage relationship capacity.
Deal honestly and fairly, disclose all known facts that materially affect the value of residential real property that are not readily observable to the buyer, account for all funds entrusted to the license
To gain the principal’s written consent to a change in relationship, the buyer and/or seller must either sign or initial the what
Consent to transition to transaction broker notice set forth in Chapter 475 F.S
What is Misrepresentation
The misstatement of fact or omission or concealment of a factual matter
What actions can lead to action for fraud
The licensee made a misstatement or failed to disclose a material fact, the licensee either knew or should have known that the statement was not accurate, The party to whom the statement was made relied on the misstatement, the party to whom the statement was made was damaged as a result
Are sales associates permitted to open offices of their own?
No, they must be registered from and work out of an office maintained and registered in the name of their employer
What must active real estate brokers display on the interior or exterior of the entrance to their office
1) Trade Name
2) Brokers Name
3) The words “Licensed Real Estate Broker”, or “Lic. Real Estate Broker”
What must advertisements clearly reveal?
Tye licensed name of the brokerage firm. Advertisements that fail to disclose the license name of the brokerage firm are blind advertisements
When does sales associates that receive a binder deposit from a customer or principal
They need to deliver it to their employer or broker immediately, which means no later than the end of the next business day
When must brokers place trust funds into an escrow account
No later than the end of the third business day after their sales associate has received it.
What does it mean to commingle funds.
ILLEGAL practice of mixing funds with your own money
What is Conversion
The unauthorized control or use of another person’s personal property.
If a broker who maintains an escrow account receives conflicting demands on escrow property what must he do
He must notify the FREC, in writing, within 15 business days of receiving the conflicting demands unless specifically exempted
What are the four settlement procedures
Mediation - Non Binding
Arbitration - Binding (Third party makes the binding decision / Arbitrator)
Litigation - Lawsuit filed by disputing party so the matter can be resolved in court
Escrow Disbursement Order (EDO) - A broker may request that the FREC issue an EDO determining who is entitled to the disputed funds
If a broker received payment before the service is completed what must he do
Must be placed into the broker’s escrow or trust until the services are completed
Any broker who furnishes rental information to a prospective tenant for a fee must provide the prospective tenant with a contract pr receipt that community a provision for repayment under what specific conditions
It must state that a prospective, who does not obtain a rental is entitled to be repaid 75% of the fee paid if requested within 30 days. If the information provided us not current or is inaccurate in any material respect
What do the Sherman - Cayton Act & the Federal Trade Commission acts
Preserve competition and ensures the restraint of trade (Under these laws, you may not fix commission rates)
Kick back are unearned fees paid to a licensed associate with a real estate transaction for non-real-estate services . When are kickbacks legal?
Kickbacks are legal if all parties agree to the terms in writing prior to the kickback being received
Larceny means what
Theft
Ostensible Partnership (Quasi-Partnership) is the appearance of a partnership. This is considered fraudulent.
Brokers who share an office building must display separate signs and use separate telephone numbers
What are the seven steps of the complaint process?
1) Complaint is files
2) Investigation of the complaint
3) Probable cause determination
4) Formal Complaint is filed if probable cause is found
5) Informal Hearing or formal hearing is conducted
6) Final order is issued
7) Judicial review
What is the most severe penalty that FREC is authorized to impose?
Revocation (Max suspension is 10 years)
The commission may impose an administrative penalty for violations of the law or rules and regulations.
Denial of application, refusal to rectify a license for renewal and revocation of a license for not more than 10 years. ( Fines may not exceed 5,000$ for each separate violation)
What kind of penalties can the courts enforce if a person has performed any real estate services without a license
Civil Penalties
The DBPR can issue fines up to $5,000 per count to a person it finds guilty of unlicensed real estate activity
The DBPR can issue fines up to $5,000 per count to a person it finds guilty of unlicensed real estate activity
A violation of F.S. 475 or any lawful order, rule or regulation is legally a misdemeanor of the second degree
It may be punished by a fine of not more than $500 and/or by imprisonment for not more than 60 days
The penalty for failing to providing accurate and current rental information is what
a misdemeanor of the first degree and is a fine not more than $1,000 and or/ up to one year in jail
What is the Florida real estate recovery fund?
Its purpose is to reimburse an individual or business entity judged by a Florida court to have suffered monetary damages as the result of an act committed by a broker or sales associate. A claim for recovery may not be considered unless a civil suit resulted in a final judgement against an individual licensee as defendant
Monetary limits of claim are
$50,000 (For one transaction) or 150,000 for more than one transaction
What is fraud
Fraud is the intentional deceit for the purpose of inducing another to rely on information to part with some valuable asset or legal right
The civil Rights Act of 1866 prohibits discrimination based on what?
Race
The fair housing act created protected classes of people and prohibits discrimination when selling or renting residential property when based on what?
Race, Color, Religion, Sex, Handicap Status, Familial Status, National Origins. Covers single family houses and multi family housing
What does the Equal Credit Opportunity Act ensure what
Ensures credit to be maid available with fairness without discrimination to: Race, Color, Religion, National Origin, Sex, Marital Status, Age, or income from public assistance programs
What is Steering
Channeling of homeowners away from particular neighborhoods because they are of a protected class
What is Blockbusting
Blockbusting is to use the entry, or rumor of entry, of entry, of a protected class into a neighborhood to persuade owners to sell
What is Redlining
Redlining is to deny loans or insurance coverage by a lender or insurer that presents different terms or conditions for homes in certain neighborhoods
The truth in lending act is implemented by federal reserve Regulation Z
The law requires lenders to disclose the annual percentage rate of interest and finance charges imposed on consumers within three business days of accepting a loan application
What does the growth management act require
Requires a concurrency provision. Requiring the infrastructure to be in place before new development can begin
How many days do landlords have to return a security deposit and any accrued interest if no claim is made?
15 days
How many days does the landlord have to impose a claim on the deposit?
30 days
How many days does a landlord have to correct the noncompliance and resolve a problem?
7 days
What are two surface rights?
Riparian Rights and Littoral Rights
Riparian Rights
associated with land abutting the banks of a river or stream
Littoral Rights
Associated with land abutting ocean or lake (Large body of water)
What does a Fee simple Estate mean
means absolute and complete ownership, subject only to governmental restrictions
Life estates give owners fewer rights than the owner of a fee simple estate. The life estate owner owns the property only for the period of the lifetime of the individual. When the life estate ends, the property returns to the original grantor or goes to a third party called a what?
Remainderman
What is a tenancy at will?
A lease agreement that has a beginning date, but no fixed termination date, is known as a tenancy at will
When a tenant stays in possession of the property beyond the ending date, it is known as what?
A tenancy of sufferance
When two or more persons wish to share the ownership of a single property, they may choose to do so as what? (Most common between people who are not married)
Tenants in common
What is joint tenancy characterized by?
Right of survivorship. The surviving co-owner(s) receive a share of the deceased tenants rights
What is a tenancy by entireties
a joint tenancy between husband and wife
Non marital assets are separate property includes what?
property the husband or wife owned separately prior to the marriage
Florida law provides for the divorcing couple’s assets to be divided
equally
The important result of the stock purchase is that ownership of the stock entitles the purchaser to a proprietary lease and the right to occupy the unit for the life of the corporation
Co-op
The buyer of a new condominium can cancel the contract within 15 calendar days of signing the contract.
The buyer of a RE-Sell Condominium can cancel the contract within 3 business days after the date execution of the contract
Purchasers of timeshares and vacation plans may cancel their contract with in _______ calendar days of contact signing
10
Interval ownership is what in timeshare ownership
fee simple ownership and contains the same rights as any other property conveyed by deed.
Right-to-use is what in timeshare ownership?
Grants rights with the right-touse forms of time-sharing that are temporary in nature.
Voluntary Alienation
Deeds conveys the legal title and Wills are a legal instrument used to convey title to real and personal property after a person’s death
Involuntary Alienation is what?
Example: Foreclosure, Decent leaves the property of the deceased to legal descendants if they don’t have a will
What does Escheat mean
Escheat provides for a government to take the property of an owner who dies intestate (Without a will), and without any known heirs entitled to receive the property
Adverse Possession
Arises when the true owner of record fails to maintain possession and another seizes the property
Eminent domain is what?
Gives government the right to take land from an owner through a legal process referred to as Condemnation, as long as the taking is for public purpose
What is Actual Notice
Direct knowledge acquired in the course of a transaction
How is constructive notice accomplished
accomplished by recording the information in the public records
Title Insurance: owners policy
is not transferable and is issued for the total purchase price of the property
Title insurance: lenders policy
is transfereable is issued for the unpaid mortgage amount
Clauses in a deed: Habendum clause
Limits the estate or tenancy being conveyed and is entered before or after the restrictions or limitations on the property’s use (To have and to hold)
Clauses in a deed: The premises section of deed name
parties to the deed and date of the deed
Clauses in a deed: A seisin is a promise that the grantor
owns the property and has the right to convey title
The covenant against encumbrances
states that the property is free from liens or other encumbrances, except as noted in the deed
What are deed restrictions
part of the deed and affect a particular property
Restrictive Covenants are
recorded along with the subdivision plat and usually affect the entire subdivisions
Easements are what
Rights use a portion of an owners land for a specific portion
Easement Appurtenant
Benefits an adjacent parcel of land
Easement in gross
benefits an individual or a business entity
Easement by Prescription
Created by longtime usage such as 20 years of open
What is an Encroachment
Unauthorized use of another property
What does meat and bounds mean
Mete refers to distance and bounds refer to direction
What is the principal meridian
The beginning reference is the intersection of the north/south line
What is the baseline
the east/west line
What is a township
A square tract of land measuring six miles on each side and including 36 sections formed by the crossing of range and township lines
Statutes of frauds requires what
contracts conveying an interest in real property must be in writing and signed to be enforceable
Statute of limitations
Designates the period of time during which the terms of the contract may be enforced
Written contracts are _____ years
5
Oral contrats are ____ years
4
What is a parol contract
An oral agreement and an informal contract
What is a bilateral Contract
obligates both parties
What is a unilateral contract
obligates only one party
Counteroffer
indicates willingness to contract, but on terms or conditions different from those contained in the original offer. the original offer is dead and cannot later be accepted
Specific Performance
Wronged party may sue to have the courts force the other party to perform as the contract specifically states
Liquidated Damages
The parties will stipulate an amount of money in the contract to be paid in case of default by the buyer
Rescission
To rescind is to cancel or annul the contract
Compensatory Damages
Suit for damages; the party bringing the suit seeks an amount of money equal to the extent of loss suffered
Open listing
An employment contract given to any number of brokers who work simultaneously to sell the owners property
Exclusive-Right-Of-Sale Listing
when seller gives the listing to a selected broker, who then becomes the exclusive real estate agent of the owner, for the sale of the property during the time the listing contract is in affect
Radon gas disclosure:
A disclosure statement on real estate sale and lease contracts that consists only of what radon is
Lead-Based paint
Disclosures of lead-based paint must be given with any home, purchased or rented, that was pre built 1978
Homeowners Association disclosure
Provides buyers with a disclosure summary regarding the association, the existence of restrictive covenants, and any assessments that the association imposes
Property tax disclosures
Prospective buyers of residential property must be presented a disclosure summary concerning ad valorem takes before or at the time of execution
Lien theory is what
States the borrower retains title to the property.
Title theory
Title to mortgaged property goes to the mortgage/lender or a third party
Promissory note
Legal instrument that represents the evidence of a debt
Mortgage
Is an instrument that pledges the property as security for a debt. The legal document that represents the lien on the real estate that secures the debt
Hypothecation
Refers to the pledging of property, as a security for payment of a loan without surrounding possession of the property
What is an Assignment
Ownership of a mortgage is transferred from one company or individual to another
What does equity of redemption allow?
Allows the mortgage or to prevent foreclosure by paying the principal and interest due plus any expenses
What does a receivership clause allow
Allows a receiver to be appointed to collect income from the property and use the income to make mortgage payments in the event of default
Va loans
Partially guarantees mortgage loans made to veterans by private lenders. Covers the top portion of the loan
Maximum VA loan guarantees 104,250 or 25% of the loan amount
They can take out basically as much as they want
What does a package mortgage include
Both real and personal (chattel) as security for the debt
What is the loan-value ratio
Relationship between amount borrowed and appraised of a property
What is a primary market
A market where securities or goods are actually created
What is a secondary mortgage market
An investor market that buys and sells existing mortgages
What is intermediation
Process practiced by financial thrift institutions that serve as financial middlemen between depositors and borrowers
When does disintermediation occur?
Occurs when funds are withdrawn from intermediary financial institutions, such as banks and savings associations, and are invested in instruments yielding a higher return
Fannie Mae, Freddie Mac, & ginnie mae
Secondary market participates that buy up existing mortgages
What does liquidity mean
Selling an investment very quickly without the loss of ones capital
Illiquidity
Is the inability to sell an investment quickly
Leverage
Is when investors use others money (lender)
Equity
Investors use their own money
Positive and negative leverage
Positive is making money and negative is loosing money
What do business enterprise brokers normally deal in?
Cooperate transactions involving the sale and purchase of businesses that provide goods and services
What do business opportunity brokers typically deal in?
The sale and purchase of smaller businesses
What is goodwil
Intangible asset attributed to a business’s reputation and the expectation of continued customer loyalty
The vale f an established business property compared with the value of just the physical assets of a business that is not yet established is called what
The going concern value
When do property taxes become a lien on all real estate in Florida?
On January 1st each year
How much is the homestead
25,000
Widows, legally blind persons, and non veterans who are disabled qualify for $___ exemption
500
Veterans who are at least 10% disabled by military service connected misfortune are entitled to how much homestead exemption
5,000
What does the Florida green belt law authorize?
Authorizes county property appraisers to assess agricultural land used for agricultural purposes according to its current value as agricultural land
What doe the save a home amendment cap
How much the assessed value of homesteaded property may increase on a given year
When a property owner fails to pay property taxes
It is auctioned off to bidders they bid on percentages starting at 18% and going down
Authority
1) subdivision plat approval
2) site plan
3) sign control
Basic Background Studies:
- Population background studies - most basic & important
- Area economic base studies (industry)
- Existing land-use studies
- Physiographic studies (water & soil conditions)
- Recreation and community facilities studies (Park, Playground, beaches)
- Thoroughfare studies (traffic circulation)
Residential Zoning is regulated density or the
of homes per acre
What is the purpose of Commercial Zoning
To regulate intensity of use
Industrial zoning
Intended to regulate intensity of use
What is a variance
Allows a property owner to vary from strict compliance with all or part of a zoning code because to comply would force an undue hardship on the property owner
Nonconforming use
Grandfathered in
