Florida Statues - Flashcards
FREC - Florida Real Estate Commission
commission 7 members appointed by the governor, subject to confirm by the senate
4 members licensed brokers(active license 5yrs)
1 member licensed broker or licensed sales associate active for 2 years
2 members - persons who are not, have never been brokers or sales associates
at lease on member 60 years age or older
Serve 4 year team
statutory law
laws that are currently on record in the country
Common law
procedures that have set by precedent of cases that have gone before.
Create Agency relationships
A Principal/clients/s (or principals)
A task to be done
An Agent
Universal agent:
Power of Attorney and is called an Attorney-in-Fact
General Agent
handles multiple transactions of a principal/client
example - property management
Agency coupled with an Interest:
real estate licensee is a partner in the ownership of the property as well as represents the partners in an agency relationship.
Special Agent
handles one transaction for one seller of one property
broker can represent several sellers on one house each at one time but never the seller and buyer for a transaction.
Written or Expressed Agency
s created when a written or oral contract is entered into where the parties state the intent of their relationship in a contract.contract is in writing with specific terms to comply with the Statute of Frauds* to prevent misunderstanding.
Implied Agency
reated by the Act of the Parties. –acts or conduct of the parties involved indicate that they have a relationship. The clearest example of this type of agreement is when a person hails a taxi, gets in the taxi, tells the driver where he wants to go and the driver takes him there
Ratification of Agency
always created after the fact -principal accepts the conduct of a person who acted without prior authorization as the principal’s agent, such as a licensee who shows a property without a current listing agreement and then the seller agrees to work with the person (creating an agency) to sell the property. This type of agency relationship is very difficult to prove, and may have other legal problems.
Statute of Frauds
s an old English statute passed in 1677 which has been adopted in almost all of the United States . Its purpose is to prevent fraud among the parties by requiring that all contracts be in writing, and signed by all the parties to be charged. This will be covered more in contract law.
Caveat Emptor
Knowledge is the key. Caveat emptor means: Let the Buyer Beware.
When an agent represents the seller as a principal, a fiduciary relationship is created.
A fiduciary relationship is one of utmost trust:
When an agency relationship is created the Principal (seller in this case) is called a Client. In this situation there is no relationship between the broker and the buyer.
disclosed dual agency & undisclosed agency is
illegal in the state of florida
Importance of disclosure
all parties in a residential transaction have the right to disclosure of material acts when in an agency or no relationship transaction
Florida law describes residential sales as
the sale of improved resident property of 4 units or fewer, the sale of unimproved residential property intended for use of four units or fewer, or the sale of agricultural property of 10 acres of fewer.
Florida disclosure rules do not apply to
- non residential transactions
the rental or leasing of real property, unless an option to purchase or all of a portion of the property improved with four or fewer residential units is given
auctions
appraisals
dispositions of any interest in business enterprises or business opportunities, except for property w/ four or fewer residential units.
FOUR TYPES OF AGENCY
- no brokerage relationship - agent represents one side or the other transaction but not the party who is given the form
- Single agent broker - agent who represents either the buyer or the seller in the transaction but not both
- transaction broker - an agent who provides limited representation to a buyer, a seller or both, in a real estate transaction but does not represent either at a fiduciary compact
- designated sales associate - special case for non residential transactions 2 licensees under the direction of one broker act as single agents - both buyer and seller must verify assets of more than $1 million.
presumption of transaction brokerage (STATE)
state - presumed that all licensees are operating as a transaction brokers unless a single agent or no broker relationship is established, in writing, with a customer.
Transaction broker
provides limited confidentiality- unless waived in writing by a party - limited representation to a buyer or seller - florida law - customers are not responsible for the acts of a transaction broker and licensees wilt work for one party to the detriment of the other
Record keeping State statues
broker shall preserve one legible copy all all books, accounts an rebreeds including disclosure docs for at least 5 years from the date of document.
documents must be kept for 2 years after any legal proceedings.
Rentals Companies
475.453 Rental information; contract or receipt; refund; penalty.—
(1) Each broker or sales associate who furnishes a rental information list to a prospective tenant, for a fee paid by the prospective tenant, shall provide such prospective tenant with a contract or receipt, which contract or receipt contains a provision for the repayment of any amount over 25 percent of the fee to the prospective tenant if the prospective tenant does not obtain a rental. If the rental information list provided by the broker or sales associate to a prospective tenant is not current or accurate in any material respect, the full fee shall be repaid to the prospective tenant upon demand. A demand from the prospective tenant for the return of the fee, or any part thereof, shall be made within 30 days following the day on which the real estate broker or sales associate has contracted to perform services to the prospective tenant. The contract or receipt shall also conform to the guidelines adopted by the commission in order to effect disclosure of material information regarding the service to be provided to the prospective tenant.
(2) The commission may adopt a guideline for the form of the contract or receipt required to be provided by brokers or sales associates pursuant to the provisions of subsection (1).
(3)(a) Any person who violates any provision of subsection (1) is guilty of a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.
(b) In addition to the penalty prescribed in paragraph (a), the license of any broker or sales associate who participates in any rental information transaction which is in violation of the provisions of subsection (1) shall be subject to suspension or revocation by the commission in the manner prescribed by law.
The penalty for advertising obsolete or otherwise inaccurate rental lists is a fine up to $1,000 and/or up to one year in prison. This is a first degree misdemeanor.
the Allodial system.
All property in the United States is under the allodial system. Estate= Status To what extent do you own or lease your property? To what degree do you own it? What is the nature of your ownership? Do you own the entire bundle of rights? Have you sold any of your rights? Are you leasing the property? Do you have a mortgage on the property?
Grantor gives to the Grantee a Deed
Testator makes a will
Devisor gives to a Devisee a Devise
Testator gives to a Beneficiary a Bequest.
Grantor gives to the Grantee a Deed
Testator makes a will
Devisor gives to a Devisee a Devise
Testator gives to a Beneficiary a Bequest.
