L1-L3: Overview of Real Estate, Qualification Requirements & Law

Question 1

Types of properties to sell & lease (5)

Answer 1

1) commercial
2) residential
3) industrial
4) agricultural
5) business opportunity (tangible property & intangible)

Question 2

What are the 3 main valuation products

real estate hinges on the concept of value

Answer 2

1) appraisal
2) comparative market analysis (comp)
3) broker’s price opinion

Question 3

What is the COMPARATIVE MARKET ANALYSIS (cma)

Answer 3

Report that compares prices of recently sold or listed homes (comparables) in order to estimate the market value of a similar property (subject property) located in the same area.

Usually done by real estate agent (listing agent)

Question 4

BROKER’S PRICE OPINION (bpo)

Answer 4

The less formal form of valuation
Shorter than CMA
More common for commercial properties

AKA,Broker’s Opinion of Value

It’s the broker’s opinion of the value of a piece of real property, given in writing

Question 5

Appraisal

Answer 5

An official valuation of a property’s value by a licensed appraiser

It’s impartial and supported by relevant market information and the most realiable form of valuation

Overseen and regulated by the Uniform Standards of Professional Appraisal Practice

Question 6

Dedication

Answer 6

Gift of land to the government for public use (ie. park, sidewalk, roads, gutters, etc)
Gifted by the property owner (common for developers)

Question 7

Farm Area

market/sales

Answer 7

AKA, Target Market

A specific area a real estate associate chooses to specialize and become and expert in

Question 8

MLS

Answer 8

Multiple Listing Service

A database in which local member brokers share listings so other brokers can easily find buyers for those properties

Question 9

Property Management

Answer 9

Vocation of renting or leasing someone’s real property on their behalf in exchange for compensation.

Possible responsibilities: landlord, marketing, relationship and rent collection

Question 10

Special-Purpose Property

Answer 10

A property created with a special, and often limited, purpose in mind.
Ie. churches, schools, cemeteries, government held land, etc

Question 11

Subdivision Plat Map

Answer 11

The proposed map of a to-be developed subdivision indicating proposed lots, streets and other important organizational information

Question 12

Caveat Emptor

Answer 12

Buyer Beware.

The real estate industry is operated concept that a buyer is responsible for verifying the quality and value of the goods prior to the purchase.

Question 13

What are real estate services?

Answer 13

Buying
Selling
Leasing
Renting
Auctioning
Appraising
Exchanging
Negotiating for
Closing on 

————> real property or business for compensation

And advertising the ability to do any of the above

Question 14

Multiple licenses VS Group licenses

Answer 14

Multiple licenses —-> for brokers only that want to conduct multiple brokerage businesses

Group licenses —-> for sales associates or broker associates that conduct transactions for multiple entities owned by the same owner-developer

Question 15

Active License

Answer 15

A current and valid license (renewed every 2 years)

Question 16

Inactive License

Answer 16

It’s temporary. Cannot legally engage in activities

Can be voluntary (cancellation is requested by licensee, becoming null and void) or involuntary (failure to renew or no brokerage, reactivated with course and fee)

Question 17

Void License

Answer 17

Non valid. Depending on situation, can be reinstated.

Question 18

License that “ceases to be in force”

Answer 18

License that is not active due to failure to notify FREC of important change

Question 19

(LAW)

The 4 Florida Statute Chapters and 1 Administrative Code

Answer 19

Chapter 475 - the what of real estate law (regulates brokers, agents, schools and appraisers)
Chapter 120 - the Administrative Procedure Act (how to decide and implement citations)
Chapter 20 - Codifies is the executive branch and sets the DBPR
Chapter 455 - sets the rules for the professions regulated by DBPR

61J2 - It is the how. Sets of rules created by FREC to administrate and enforce laws

Question 20

(LAW)

Chapter 475 of the Florida Statute

Answer 20

The what of real estate law. It regulates brokers, agents, schools and appraisers.

Question 21

(LAW)

Chapter 120 of the Florida Statute

Answer 21

The Administrative Procedure Act. The how to decide and implement citations.

Question 22

(LAW)

Chapter 20 of the Florida Statute

Answer 22

It codifies the executive branch and sets the DBPR

Question 23

(LAW)

Chapter 455 of the Florida Statute

Answer 23

It sets the rules for the professions regulated by DBPR

Question 24

61J2 of the Florida Administrative Code

Answer 24

It is the how. It sets the rules create by the Florida Real Estate Commission to administrate and enforce laws.

Question 25

(Legal terms)

Nolo Contendere

Answer 25

Plea where defendant doesn’t admit guilt to a crime they are accused of but accept punishment as though they have been found guilty

Question 26

(Legal terms)

Prima Facie Evidence

Answer 26

Evidence that in/of itself is sufficient to prove a fact

Question 27

(Legal terms)

Sealing

Answer 27

Putting a criminal record under highly restricted access

Question 28

(Legal terms)

Adjudication Withheld

Answer 28

Court puts defendant in probation instead of imposing a sentence

Question 29

(Legal terms)

Expungement

Answer 29

Removing a criminal record and destroying it.

Question 30

Types of law that make Florida Law

Answer 30

Florida law is a blend of common, statutory and administrative law

Question 31

Florida Real Estate Commission

Answer 31

The FREC is a quasi-judicial body/agency Who is executive powers and decision making power.
It regulates real estate and appraisal licensees through education and compliance.
Is under DBPR.
It’s main goal is to protect the public interest.

7 Members: 4 brokers, 1 sales associate or broker, 2 members of the general public.