Melodee's Highlights Flashcards
The real estate professional brings to the transaction expert knowledge regarding:
valuation, marketing and property transfer
Being able to discern important differences and properly understand how they translate into value is:
valuation
Knowing where and how to ___ property is knowledge the licensed professional brings to the transaction.
market
The overwhelming majority of real estate licensees are involved in:
residential brokerage
A RESIDENTIAL transaction is defined as:
- The sale of any improved residential property of four units or less.
- Unimproved property intended for four units or less.
- Agricultural properties of 10 acres or less.
- Leases with options to purchase all or a portion of improved property of four or less residential units.
- Dispositions of business interests involving property of four or less residential units.
Concentrating on one type or style of property or on one particular neighborhood is a practice called:
farming
The art of estimating the value of real property is called:
appraising
Appraisers must present a ___ defensible ___ of ___.
non-biased, defensible opinion of value
Appraisal fees are based on the ___, ___ and ___ involved for completion of the assignment.
time, effort and expense
Appraisal fees are NOT based on the ___ of the ___.
value of the property
Appraisals used in a ___ ___ ___ must be prepared in compliance with USPAP by appraisers registered, licensed or certified under Part ___ of F.S. 475.
federally related transaction, Part II of F.S. 475
A federally related transaction is one in which a loan is made by a federally regulated lending institution with a transaction value greater than $___.
$250,000
USPAP stands for:
Uniform Standards of Professional Appraisal Practice
___ ___ ___ can perform an appraisal under the real estate license law if the appraisal is not to be used in a federally related transaction, the transaction value is $___ or less and is prepared in accordance with ___.
Real estate licensees, $250,000, USPAP
Real estate brokers and sales associates typically prepare CMAs, also known as a:
comparative market analysis
A ___ may not be referred to as an appraisal.
comparative market analysis
___ is a highly specialized service and requires a greater level of knowledge and experience than any other facet of the real estate profession.
counseling
The ___ ___ ___ ___ awards the designation “CPM,” Certified Property Manager.
Institute of Real Estate Management (IREM)
CPM stands for:
Certified Property Manager
A developer that acquires a large tract of land and builds a model center from which sales may be made is called:
tract building
The transfer of ownership of streets and sidewalks from developer to the city or county upon completion of a subdivision is referred to as:
dedication
___ is when a contractor builds on their own land with the hope of locating a purchaser after construction has completed.
speculative building
When a contractor is employed to build on an owner’s land to the owner’s specifications, it is called:
custom building
Zoning, property taxation, building and health codes, and regulations and building moratoriums affecting development are done at the:
local level
A broker who is working for an employer is said to be an:
agent
The Real Estate License Law was officially designed Chapter ___ of the Florida Statutes in ___.
475, 1941
Applicants for a Florida real estate license are NOT required to be a ___ of Florida or a ___ of the U.S.
resident, citizen
Applicants for a Florida real estate license must be ___ or older, with a ___ education or equivalent.
18, high school
Members of the ___ ___ are exempt from taking the 63-hour prelicense course for sales associate.
Florida Bar
If an application to take a state examination is denied by the Florida Real Estate Commission, the applicant is allowed ___ days to file for a formal hearing before an ___ ___ ___.
21 days, administrative law judge
Sales associates may be licensed under a ___ or ___.
broker or owner-employer (such as a developer)
Owner-employers are ___ with the ___ but are NOT licensed.
registered with the DBPR
All sales associates, whether active or inactive, must complete a ___-hour post licensing course prior to the expiration date of their ___ ___ ___.
45-hour, initial licensing period
Failure to complete the required post licensing course will cause the license to become ___.
void (sorry, start over)
Only licensees who have received a 4-year degree in real estate are ___ from taking the ___ ___ ___.
exempt, post licensing course
Licensees, whether active or inactive, must complete ___ hours of ___ ___ PRIOR TO renewal during every ___ year license period.
14, continuing education, 2
Florida does not have ___ with any other state with regard to real estate licensing.
reciprocity
Currently, Florida has ___ ___ agreements with real estate commissions of eight states.
mutual recognition
If ___, “He who collects, pays his own debts.”
unlicensed
The most common services of real estate are (hint: A BAR SALE)
Appraising Buying Auctioning Renting Selling Advertising Real Estate Services Leasing Exchanging
Persons granted authority under a power of attorney to act for others are known as:
attorneys in fact
Persons appointed by a court of law to perform services of real estate are known as:
court appointees
Court appointees may perform services of real estate, but only for a ___ or ___, NOT a ___.
fee or salary, NOT a commission
The Florida Real Estate License Law requires a sales associate or broker associate to be employed as an ___ of either a broker or owner-employer before performing real estate services for ___.
agent, compensation
Sales associates and broker associates both act as a broker’s ___ and can only work for ___ broker at a time.
agents, one
An ___ is an individual or entity that is in the business of buying, owning and/or developing real estate and is registered with the ___.
owner-developer, DBPR
F.S. ___ created the Department of Business and Professional Regulation (DBPR).
455
The DBPR is authorized to issue ___ and ___ orders, administer ___, take ___, issue ___ and adopt ___ concerning violations that may be submitted for ___.
cease and desist orders, administer oaths, take depositions, issue subpoenas, and adopt rules
The Department does NOT have the authority to ___ ___ against unlicensed person but may seek one from the ___.
issue injunctions, courts
For specified offenses by a licensee, the DBPR may issue a ___ ___ ___ or ___.
notice of noncompliance or citation
The DBPR DOES have the power to issue a ___ ___ ___ ___ against an UNLICENSED party, and citations may be issued with an administrative fine not to exceed $___ per ___.
cease and desist order, $5000 per offense
The DBPR may act as a plaintiff in a ___ ___, in which case a civil penalty of not less than $___ or more than $___ may be imposed.
civil action, $500 or more than $5000
There are ___ members on the Florida Real Estate Commission.
seven
Members of the FREC are ___ by the ___, subject to confirmation by the ___.
appointed by the Governor, Senate
___ members must be actively licensed ___ ___ ___, licensed in Florida for at least ___ years prior to their FREC appointment.
Four members, real estate brokers, 5 years
___ member of the FREC may be any actively licensed real estate licensee, licensed in Florida for at least ___ years prior to their appointment.
ONE, 2 years
The ___ members of the FREC who cannot hold or ever have held a real estate license are known as ___ ___.
TWO, lay members
One member of the Commission must be at least ___ years of age.
60 years of age
FREC members are appointed for a ___-year term and may not serve more than ___ consecutive terms.
4-year term, 2 consecutive terms
FREC members have ___ ___ number of years they may serve, as long as no more than two terms are consecutive.
no maximum number of years
The FREC is an ___ ___, delegated certain powers under F.S. ___.
administrative agency, F.S. 475
The publication of books, keeping licensees and the public informed of changes in the law or rules governing real estate and furthering the education of potential and current licensees, as well as investigating complaints falls under the ___ ___ of the FREC.
executive powers
The power to make and pass rules regulating the operation of licensees and the real estate profession fall under the FREC’s ___ ___.
quasi-legislative powers
A ___ vote of the Commission is required enact rules and do not require ___ of any agency or the legislature.
quorum vote, approval
Rules enacted by the FREC do not become effective until ___ days after they have been filed with the ___ ___ ___.
20 days, filed with the Secretary of State
Licensees may be issued a ___ or ___ ___ of up to $___ per offense, placed on ___, ___ for up to ___ years or permanently ___.
reprimand or administrative fine, $5000 per offense, placed on probation, suspended for up to 10 years or permanently revoked.
Upon passing the state examination, an applicant received an ___ license status.
inactive
All real estate licenses expire on ___ or ___ of the appropriate year.
March 31st or September 30th
A licensee who fails to renew a license at expiration, in OTHER THAN the initial license period, automatically becomes ___ ___ and can remain in this status for ___ years.
involuntarily inactive, 2 years
Once the DBPR has received a completed ___ ___, a licensee becomes active and may begin performing services of real estate for compensation.
transaction form
An individual that does not request renewal, pay the required fees or maintain their continuing education requirements will ___ be placed in an ___ ___ status.
automatically, involuntarily inactive
Inactive real estate licensees ___ legally perform or be compensated for real estate services.
CANNOT
A sales associate or broker associate may have only ___ registered employer at a time.
ONE
One owner-developer with affiliated organizations providing real estate services in different geographic locations requires a ___ ___.
group license
A broker can be issued additional licenses in two or more capacities by requesting ___ ___.
multiple licenses
___ law is enforced by ___ ___.
Statutory law is enforced by criminal courts.
A ___ agent is authorized by the employer to perform a ___ ___.
special agent, single act
REMEMBER: one transaction. S.A. can do an S.A.
Sales associates and broker associates are always ___ agents of their broker.
general
A ___ agent is authorized to act for and represent the ___ in ___ ___, without limitation, generally authorized by power of attorney.
universal agent, principal in ALL MATTERS.
REMEMBER: universALL.
A real estate sales associate is a ___ ___ of the broker and automatically becomes a ___ of all the broker’s principals.
general agent, subagent
A transaction broker provides ___ ___ to a buyer, a seller or both.
limited representation
Anyone not represented in a single agency relationship is a ___.
customer
A ___ ___ is a broker who represents, as a fiduciary, either the buyer or seller but NOT both in the same transaction.
single agent
A ___ is the party with whom a real estate broker has entered in a single agent relationship.
principal
REMEMBER: principal is represented, customer is not.
A consent to ___ to ___ ___ is the ONLY brokerage relationship form that MUST be ___.
transition to transaction broker, signed
A ___ ___ ___ notice must be described and disclosed IN WRITING ___ showing a property.
no brokerage relationship notice, before showing a property
A broker is presumed to be acting as a ___ ___ unless a single agency or no brokerage relationship has been established by a written agreement with a customer.
transaction broker
A transaction broker has a duty not to discuss ___, ___, ____ or other information that may harm a party’s bargaining position.
price, motivation, terms
An ___ ___ is created when a broker accepts employment under a single agency agreement.
agency relationship
As an agent of the principal, a broker is obligated to obtain the ___ ___ and ___ possible for that principal.
best price and terms
The ___ ___ relationship is the ONLY one that establishes a ___ relationship and requires the principal’s ___ and ___.
single agency, fiduciary, trust and confidence
If an agent breaches fiduciary duties owed to their principal, the principal can bring ___ ___ against the agent for ___.
civil action against the agent for damages
The only duties owned to a customer with a no brokerage relationship are dealing ___ and ___, ___ all known facts, and accounting for all ___ entrusted to the licensee.
honesty and fairly, disclosing all known facts, and accounting for all funds
A broker has a duty to transmit ___ and ___ offers to the employer including oral offers or offers made without a binder deposit.
any and all
Failure to present any offer may be considered ___ or ___ ___ ___ and could result in disciplinary action against the broker.
concealment or breach of trust
A broker earns a right to compensation by ___.
performance
___ + ___ + ___ = compensation
employment, performance, active and valid license
An out-of-state or foreign BROKER may be paid a referral fee or commission, but may NOT ___ in the transaction in any manner.
participate
The terms “caveat emptor” and “buyer beware” are synonymous with an ___ ___ relationship.
arm’s length
NOTE: Licensees may NEVER deal with anyone at arm’s length since the law requires the fair and honest treatment of all persons.
A licensee assigned by a broker to act as a single agent of a buyer or seller in a nonresidential transaction is title a ___ ___ ___.
designated sales associate
Planning has the four basic goals of creating an optimal ___ and ___ environment, reducing the cost of ___ both in the ___ and ___, allowing the ___ number of properties to achieve their ___ and ___ use, and to prevent ___ ___ ___ by limiting the potential encroachment of ___ ___.
social and economic environment / growth both in the present and future / maximum number / highest and best use / losses in value / incompatible uses
The review and approval of sites plans, signs and subdivision plans falls under the authority of:
the planning commission
REMEMBER: “I sighted a sub with a sign!”
A ___ study examines trends over the past 20 or 30 years and the path of development and movement of people over time.
population study
Soil types and the load-bearing capacity of the land are studied through a ___ study.
physiographic
A study of local business activity is called an:
economic base analysis
Basic industries or businesses are also called ___.
export
___ ___ is an attempt to zone by the criteria of preventing low-income or minority land users from buying in a certain area and is illegal.
exclusionary zoning
Residential zoning is based on ___.
density
___ limits the number of dwelling units allowed per acre.
density
A request for ___ is a request to differ from specific or literal interpretation from the ordinance.
variance
EXAMPLE: Minimum of 7500 square feet to develop. Owner only has 7400 but can apply and most likely receive a variance allowing construction.
A variance may be granted when an ordinance imposes an ___ ___ on an owner.
undue hardship
A ___ ___ is a request to depart from the use provide for by the zoning ordinance.
special exception
EXAMPLE: A church in a residential neighborhood
A ___ ___ predates current zoning and typically is granted legal permission to continue as such – termed as grandfathering.
nonconforming use
___ ___ establish standards under which buildings must be designed and constructed.
building codes
PUD stands for:
planned unit developments
Planned unit developments are also known as ___ ___.
cluster zoning
PUDs must include a portion of land reserved for ___ ___ usage.
common area
To compensate developers for serving land for common use, PUDs can include smaller than normal lots or “___ ___ ___” and patio homes to be built.
zero lot line
A buyer must be given a copy of the ___ ___ ___ form prior to purchasing a property located within a PUD.
Homeowner’s Association Disclosure form
The restriction that does not allow a building permit to be issued until adequate infrastructure is provided is a requirement of the ___ ___.
concurrency rules
Zoning is derived from governmental authority originating from ___ ___.
police powers
The four factors of production are (Hint: CELL)
capital, entrepreneurial ability, land, labor
REMEMBER: You’ve gotta have the money, wanna be in the business, find the land then the people to build on it
The demand for real estate relates to (Hint: PIC POC)
price, income, credit, population, consumer preferences
When there are more buyers than sellers, a ___ market exists.
sellers’ market
When there are more sellers than buyers, a ___ market exists.
buyers’ market
When the vacancy ratio is about 5%, ___ and ___ in the residential market are thought to be reasonably in balance.
supply and demand
___ and ___ are inversely related.
price and demand
Demand will typically increase as prices ___.
rise
The availability of ___ is said to be the barometer of the real estate market.
credit
Each parcel of land is ___ or ___ in some way from all others.
unique or different
Real estate is not a ___ product. It is ___.
homogenous, heterogenous
Compared to other markets, real estate is ___ and ___.
unorganized and inefficient
The real estate market is ___ in nature.
local
Situs means:
“customer preference” or “fixed as to location (latin)” or “Where do you prefer to be seated? SIT US there, please.”
EXAMPLE: a principal that MUST live in that neighborhood because of the good schools within it.
Combining two or more parcels of real estate under the ownership of one party is known as:
assemblage
REMEMBER: assemblage is combining. plottage value is the combined value of that combination if its value is greater
If combined parcels of real estate have a greater value together than they did as separate parcels, the increase in value is known as:
plottage value
Improvements to land are relatively ___.
permanent
The real estate market is ___ to ___ to changes in supply and/or demand.
slow to respond
Highest and best use of a parcel is met by four criteria: use must be ___ permissible, ___ possibly, ___ feasible and maximally ___.
legally permissible
physically possible
financially feasible
maximally productive
An economic term used to identify value resulting from the location of a parcel of land is:
situs
Physically, real estate is characterized as being ___, ___ and ___.
indestructible, immobile and heterogenous
Real estate taxes are ___ ___ taxes, which means “___ ___ ___”.
ad valorem, “according to value”
The estimate of value determined by the county property appraiser is called the ___ ___ and must be based on the concept of ___ ___.
assessed value, based on the concept of just value
NOTE: just value means the “fair value”
Owners can protest a property assessment by requesting an ___ conference with the ___ ___ ___.
informal conference, with the county property appraiser
Qualifying properties can be entitled to a homestead tax exemption of up to $___.
$50,000
To qualify for the homestead tax exemption, one must own the property AND be a ___ on or before ___ 1st and file before ___ 1st each year.
resident, January 1st and file between that and March 1st EACH year.
The property must be the owner’s ___ ___ to qualify for homestead tax exemption.
primary residence
The assessed value of homestead property is limited as to the amount of increase the county property appraiser may assign to the lesser of ___% or the percentage change in the ___ ___ ___.
3% or the percentage change in the Consumer Price Index (CPI).`
As of 2009, the annual cap on non-homestead properties is ___%.
10%
Property owned by churches and nonprofit organizations receive a ___ ___ ___ from payment of property taxes.
100 percent exemption
Property owned by local, state and federal governments are ___ and ___ assessed for subject to taxation when used to provide government services.
immune and not assessed
NOTE: Government owned buildings that are leased to private businesses ARE subject to real estate taxes.
___ ___ are tax levies to pay for specific public improvements that add value to the property.
special assessments
EXAMPLES: paving a street, central water or sewer connection, street lighting, etc.
If the property owner does not pay property taxes before ___ 1st of the year following the assessment, the taxes become ___.
April 1st, delinquent
Real estate property taxes are ___ as an expense when calculating federal income taxes for homeowners who file itemized returns.
dedutible
Taxpayers can deduct ___ interest paid for acquiring, constructing or substantially improving a principal or secondary residence.
mortgage
Married couples who have owned and use the principal residence for a least ___ of the previous ___ years prior to sale may exclude up to $___ of gain on the sale from taxation.
2 of the previous 5 years, $500,000 of gain
The maximum rate of interest on a tax certificate is ___%.
18%
Agricultural properties are limited in assessed value as a result of ___ ___.
greenbelt laws
Entries on closing statements are identified as ___ and ___.
debits and credits
Closing statements reflect the financial relationship of the seller and buyer as of the moment of closing, and is only valid on the ___ of ___.
day of closing
Rent is usually paid in ___.
advance
The seller is ___ for the amount of rent that applies to the buyer’s period of ownership.
debited
___ is the amount actually paid in a real estate transaction.
price
The four elements that interact to create or affect the value of real estate are (HINT: DUST)
demand, utility, scarcity and transferability
___ value is the amount remaining after all assets of a business have been sold in a hurried but not forced sale and all liabilities have been paid.
liquidation
NOTE: can also be used to estimate the minimum value of a profitable business
The principle of ___ recognizes that no one would pay more for a property than the amount necessary to acquire an acceptable substitute.
principle of substitution
NOTE: If the buyer can pay less and get the same, he will!
The principle of ___ focuses on the affect of changes in supply and demand.
competition
The principle of ___ applies when a higher-priced property is constructed in an area of lower-priced properties.
regression
The principle of ___ applies when a lower-priced property is built in an area of more expensive property.
progression
NOTE: The lower-priced property PROGRESSES in value TOWARDS the level of the more expensive properties.
The principles of ___ and ___ tend to create price conformity within an area.
progression and regression
The three categories of depreciation are: ___, ___ and ___.
physical deterioration, functional obsolescence, and external obsolescence
___ obsolescence is considered to be incurable.
external
The income capital approach is based on the appraisal principles of ___ and ___.
substitution and anticipation
NOTE: Future income is converted into a present value
