The real estate professional brings to the transaction expert knowledge regarding the following:
Valuation, Marketing, & property transfer.
Many licensees will concentrate on one type or style of property or on one particular neighborhood, a practice called
Finding and __________ in a particular neighborhood or type of property is considered to be one of the best ways to success in residential sales.
The value of a business included its income, tangible and intangible assets and good will in addition to value of the real property.
Going concern value.
Appraisals used in a ____________ must be prepared in compliance with USPAP by appraisers registered, licensed or certified under Part II of F.S. 475, which is administered by the Florida Real Estate Appraisal Board.
Federally related transaction.
___________ provide professional advice to members of the public based on their personal judgement.
Real estate counselors are usually compensated on a ________, regardless of whether or not the advice issued.
When a contractor builds on his or her own land with the hope of locating a purchaser after construction has been complete, it called
Speculative building or building on spec.
A developer that acquires a large tract of land and builds a model center from which sales may be made is called
The ownership of streets and sidewalks is typically conveyed by a developer to the city or county upon a completion of construction of a subdivision. This transfer of ownership is referred to as ____________ and gives the public the right of use.
At the local level planning and zoning, property taxation, building and health codes and regulations and building moratoriums affecting development ____________ play a significant role in the cost and desirability of real estate.
Applicants for the Florida real estate license ________ required to be a resident of the state of Florida, or to be citizen of the United States.
Applicants must have attained the age of majority, which in Florida is ___ or older, and have
18, a high school education or equivalent.
Applicants must disclose __________ other than minor traffic infractions.
Any criminal convictions.
Failure to answer correctly may result in
Disciplinary action, including denial or revocation.
___________ are common in retail centers and malls.
A percentage lease is a lease in which the pays a monthly _____ _____ plus a percentage of the annual or monthly gross sales of goods sold on the premises.
Base rent ("Flat fee").
Upon the tentant's vacating of the premises, the landlord has ____ days to return the security deposit including accrued interest, if any, if there is no intention of making a claim for damages against the deposit. If the landlord intends to make a claim for damages against the deposit, the landlord has ___ days in which to notify the tenant.
15 , 30
Post a _____ _____ with the clerk of circuit court in the county in which the dwelling unit is located in the amount of the total security holdings or $50,000, whichever is less.
The landlord options and procedures for handling the security deposit money and advance rent are as follows:
Non-interest bearing account, interest-bearing bearing, or post a surety bond with the clerk of the circuit court.
_________ was passed in 1990 with the purpose of providing the same employment opportunities to qualified individuals with disabilities that are available to persons without disabilities and to provide access for all such persons to public buildings.
The Americans with Disabilities Act (ADA).
__________ is the refusal by a lender to approve a mortgage loan based on a property being located in a certain geographical area, the age of the property, the income level of the residents or the racial composition of the area.
___________ an individual, directly or indirectly, into or away from a neighborhood of the basis of race, color, religion, sex, or national origin.
Steering or channeling.
__________ which consists of inducing an owner to list or sell on the basis that the neighborhood is deteriorating or becoming transitional due to an influx or minority persons.
___________________ specifically prohibits the following when based on race, religion, sex, or national origin.
The 1968 Federal Fair Housing Act.
If the Florida Real Estate Recovery Fund total amount reaches __________ collection of the fees are discontinued until the amount in the recovery fund falls below _______.
$1,000,000 , $500,000
Once a payment is made from the Recovery Fund in the name of the licensee, the real estate license of the individual is ______ ______ until the money has been repaid plus interest.
Reimbursement from the recovery funds for a _______ ________ is limited to a maximum of $50,000 or the unsatisfied portion of the judgement, whichever is less.
Single judgement ("One Single transaction").
If the licensee does not agree with the final order of the Commission, a ________ for review may be filed with the ______ ______ ______ _____ within ____ days of the final order.
Petition, Florida District Court of Appeals, 30
DBPR ______ injuctions & the courts ______ them.
The defendant has the right to respong to or answer the complaint, the right to present evidence and cross-examine witness and the right to be respresented by legal counsel. The __________ can _______ subpoenas for witnesses and compel attendance of a witness.
Administrative law judge, issue
At any conclusion of the investigation, the investigtor submits a report to the DRE that _______ contain any __________ of the investigator.
Cannot, personal opinions or recommendations
A __________ complaint is one that alleges a violation of law or rule has occured and contains sufficient suppporting evidence. The DRE ______ investigagte legally sufficient complaints.
Legally sufficient, must
A _______ can be issued for specified violations by the DRE when no substantial threat to the public health, safety, and welfare exists or if a violation is in the process of being corrected.
The Commission adopted the __________ to handle minor violations by licensees.
Notice of Noncompliance Rule
A _________ is considered to be minor that does not result in economic or physical harm to persons or adversely affect the public health, safety, welfare, or create a significant threat of harm.
Suspension is considered to be a _______ penalty.
__________ fines may be imposed by the Commission for violations of law or rules in amounts up to ______ per offense.
There is only ___ activity classified in Chapter 475 as a first degree misdemeanor. A first-degree is punishable by a fine up to $ _____ and/or imprisonment not to exceed ____ year.
One, $1,000, 1
Any person who violates the requirement concerning _______, information and contracts is gulity of a first-degree misdemeanor.
Rental lists (Rental information violations)
________ that acts as a broker or sales associate without beig the holder of a valid and current _____ license is gulity of a thrid-degree felony punishable by a criminal fine of up to _____ and/or imprisonment up to ___ years.
Anyone, active, $5,000, 5
The ______ must be advertisted one time in a newspaper distributed within the county where the offices of the business are located.
No business is allowed to use the word ________ in it's name unless it is formed legally as a corporation or unless the words _____.
Company, not inc
A real estate brokerge corporation must provide proof of legal corporate existence prior to inital registration with the Department. The corporation will be _______, and the names of all officers and directors of the corporation are registered. At least one corporate _______ must be licensed as an active real estate broker.
A _________ is an artifical person created by law.
Corporation for profit
The owners of the corporations are issued shares of stock in the coropration and are known as _________.
A _________ is similar to a partnership in some respects.
Joint venture or joint adventure
The participants in a joint venture have ___________ liability.
Joint and several
A ___________ is a ________ business involing a single transaction or predetermined number of transaction.
Joint venture, temporary
A __________ can provide real estate brokerage services if composed or separate real estate brokers. In this stiuation, the ___________ is not required to ________ with the DBPR as the broker are already licensed and permitted to perform services of real estate.
Joint venture, registered
A _______ partnership, often simply called partnership, is a business formation in which two or more persons agree to share the profits or losses of a business.
If a partnership is sued, the partners are named ______ and as _______ of the partnership.
_________ is the misstatement or omission of facts.
_________ occurs if a broker operates in a reckless, careless and excessively negligent manner.
______ occurs when a broker fails to disclose information to a party, to whom the broker has such a duty and that is material to his or her decision.
The broker would file a ___________ if he or she did not claim any rights to the deposit under dispute.
Bill of Interpleader
The award is _______ and can be enforced in a civil law suit if the responsible party fails to abide by the decision.
If all parties giver written consent, an escrow dispute can be submitted to _________. If the parties submit the dispute to _________, they agreeing advance by contract to abide by the __________ decision.
Arbitration, arbitration, arbitrator's.
If all parties give written. consent, an escrow dispute can be submitted to __________. It's a third party the _________ a solution.
Conflicting demands from the buyer and seller demanding that the broker release escrowed funds is termed an __________.
If a broker receives conflicting demands for escrowed funds, or if the broker has _______ as to which person is entilted to escrowed property, the broker must give ______ notification to the Florida Real Estate Commission within ____ business days from the date of the last party's demand.
Good faith doubt, written, 15
The missue of, commingling or intermigling of, or failure to account for funds or property entrusted to any licesensee is known as _________.
Postdated checks are considered to be _________ and can be accepted as earnest money with seller's approval.
Brokers, sales associates and broker assoicates are entitled to deal in real property for personal benefit. Licensees must make known their status as licensees to members of te public. This disclosure must take place _______ to but is not required to place in the preliminary stages of the transaction such as newspaper advertising.
A ________ is any real estate advertisment that does ____ contain the registered or ______ name of the broker or for which there is doubt that the ad is that of a real estate broker.
Blind ad, not, trade.
A sales associate or broker associate's name may appear in the ad in addition to the registered name of the brokerage. If licensee includes his or her personal name in the ad, the licensee's _______ must appear exactly as it is registered with the Commission.
If a branch office is closed and later reopened in the ______ location during the ___________ liscense period, a reissue of the license may be requested, without additional ______.
Same, same 2-year, fee.
The sign of a broker operating as a sole proprietorship _______ contain the broker's trade name, if any, the name of the broker and the words "_____________".
Licsensed (or Lic.) Real Estate Broker.
The brokerage office must consist of at least one _______ room in a building of_________ where negotiations and the closing of real estate transactions can be conducted with privacy.
Enclosed, stationary construction.
If a broker closes a branch office, the registration of the branch office cannot be _______. Each new branch office location must be _______ with DBPR, and the appropiate fee must be paid
A Florida broker may. pay a ______ fee to, or ______ a commission with, a broker licensed or registered by another state or foregin country.
___________ is legally quite distinct from condominium ownership. A cooperative association is a corporation that buys and owns a ______ building.
Cooperative ownership, multiiunit.
_________ enjoy the same benefits of ownership as any other owner of real estate.
The amount of protected by homestead rights is limited to _______ acre if the homestead is located within a municipality or to _____ acres if located outside of a municiplatity.
Property owned by one spouse as _________ can be sold during the owner's lifetime without the concurrence of his or her spouse.
In the event of a divorce the ownership converts to a __________, unless otherwise dictated by a court.
Tenancy in common.
___________, also called legal notice, is achieved by recording documents in the public records.
_________ a document has the same legal effect as showing it to the entire world.
__________ legal principle under which an owner may lose title to another person who has taken control of the property.
A deed must meet the following requirements to be valid:
Be in writing, name the parties, legal description of the property, specify legal rights to be coveyed, include consideration & to be signed by a competent grantor and witnessed by two persons.
Habendum clause also called _________ clause, specifies the ________ being conveyed.
"to have and to hold" , legal rights.
A _______ deed contains no warrants of any kind.
________ deeds are most frequently used to ___________.
Quitclaim, cure defects in title.
The ______ states that any interest they ____ have in the property is relinquished to the grantee. The grantor does not _______ to have any rights in the property, but and he or she may have are being conveyed.
Grantor, may, promise.
The _______ warranty deed, or _________, is also a type of bargin and sale deed.
General, simply warranty deed
The ______ promises to defend the title against ________.
Grantor, any all claims.
The _______ warranty deed is the most common type of deed, and provides the ________ to the grantee of any deed.
General, most protection.
If a real estate sales contract does not specify the type of deed to be given, a _______ warranty deed ______ be used.
A ________ deed is a form of ______ warranty deed used to convey ownership of indiviual condominium units from the association to the public.
_______ allows local, state or federal government, railroads, public utilites and public housing authorities to obtain ownership to private property, called a ______.
Eminent domain, taking.
______ liens take precedence over all other types of liens.
________ are assessed and become a lien on January 1 of each year, even though the owner does not know the amount until the tax bill is recevied after Nov 1st of the same year. Since the assessment is from January 1, but not known or payable until Nov, taxes are paid in the ______.
Real Estate taxes, arrears.
There are three superior liens:
Real Estate taxes, Special assessment lien, federal state tax lien.
_______ liens for improvements such as road paving, sidewalks and sewers attach to a property until full amount of the lien has been paid.
__________ become a lien at the time of death.
Federal estate tax lien.
A mortgage is a ______ pledge of property as security for repayment of a loan.
_________ is where a contractor or builder that has not been paid money due to them, is entitled to a lien against property for materials or labor used to build or improve the property.
Mechanic's (construction) lien.
The _______ method, also known as the metes and bounds method, can be used to describe regularly or irregularly shaped tracts of real estate.
_______ are measurements of distance such as inches, feet, yards and miles.
_______ refer to compass directions to property boundaries.
The inital reference point for a survey begins at a known point, called a _________.
Monuments can be ______ or _______ and are found set in the ground.
The survey begins by giving directions from the monument to the edge of the property, which is called the ___________ .
Point of Begining (POB).
________ is 6 miles square and contains 36 square miles.
The __________, also known as the lot and block system, is a method of legal desrciption used to identify small parcels of property in subdivided areas and cities.
The following four essential elements are necessary to create a valid contract:
Lawful subject, agreement, consideration, two or more competent parties.
There must be an offer and acceptance, or meeting of the minds is know as _______. A ________ understanding of the terms of the contract has been reached when an offer made by one party is accepted by another party.
A contract must specify a ______ consideration. Either _______ or _______ consideration may be sufficient.
Valuable, valuable, good.
_______ consideration is money or anything of value that can be converted to money. This includes cash, personal property, real property or ________.
Valuable, enforcable promises.
Love and affection, which are incapable of being expressed in terms of money, are called ___________.
An _______ contract exist when some or all of the terms and conditions can be assumed or _____ by the nature of the agreement or the words and actions of the parties.
The orginial __________ was enacted in England in ____ to provide protection against fraud in the sale of real property. It requires a contract for the transfer of a right or interest in land or ________ to be ______ to be ________.
Statute of Frauds, 1677, real estate, in writting, enforceable.
An offer is terminated bt the following:
Acceptance, Withdraw, Rejection.
Legal remedies exist to allow the ______ the injured party to seek court action to enforce rights created by the agreement.
There are three basic remedies for a breach of contract as follows:
Suit for cancellation, suit for specific performance, and Suit for damages.
________ damages are those agreed upon and specified in the contract. Example: Ask for the deposit.
________ damages are those that are not specified in the contract, but are determined by a court.
The Statue of Limitations provide _______ within which partie are allowed to bring legal action to enforce their rights under contract. The periods allowed for various types or contracts are as follows:
Time limits, Parol contracts, wriiten contracts.
Parol contracts. If contract is entirely oral, action must be brought within __ years.
Written contracts. A contract wholly in writing may be enforced if action is brought within ___ years.
_____________ does nit terminate a contract.
An assignment of contract.
The sale, transfer or subrogation of rights in a contract is called an _______.
The party granting the rights is the______; the party receiving the rights is the ______.
The ___________ contract gives the broker the best protection.
Exclusive righr of sale.
An _______ contract is a ______ to buy a property during a specific period of time, at a specified price.
Option ("Lay-a-way"), right.
The property owner giving the right is called the _______ ("only obligated party") the party receiving the right is called the _______.
Sellers of residential property in Florida are required to ______ any material defects. The use of an "as is" provision in a contract _____ relieve the seller of this responsiblity.
Disclose, does not.
Lien theory allows the ________ of the property during the loan period.
Retain the ownership.
The note (a.k.a. ________ ) is evdience of a ________ debt and contains the names of the parties, the rate of interest, the amount of money borrowed and the loan repayment terms. The note is a contract between the _______ and the _________.
Promissory note, personal, lender, borrower.
When the loan has been paid in full, the mortgagor should recieve from the mortgagee a __________. This letter states that the terms of the loan have been fully met. The letter should be ________ in the public records to offset the lien created by the earlier recording of the mortgage.
Letter of satisfaction, recorded.
The ________ clause allows a lender to in crease the increase the interest rate based on the occurance of an event, such as change in the use of the property.
Lender's charge ________ to increase the profit on the loan. One point is equal to ___________ in dollars.
Discount points, 1% of the loan amount.
To calulate the Loan-to-Value (LTV), the loan amount is divided by the lesser of the sales price or appriased value as shown in the following:
Loan amount/Sales price or appraised value = Loan-to-value ratio.
If all lien holders have been paid from the proceeds of the foreclosure sale, any excess remaining is paid to the ___________.
The federal _____________ (RESPA) of 1974 covers most __________ mortgage loans used to finace the purchase of one-to-four family properties.
Real Estate Procedure Act, residential.
RESPA standardizes real esate closings by requiring:Good faith estimates ___ days after application is submitted to the lender, loan applicant to be provided with the information booklet entitled "_____________"(which also includes the sevice disclosure) & HUD to be provided to the borrower at least ___ day prior to closing.
3, Setttlement Costs & You, 1.
The Consumer Credit Protection Act 1968, also known as as the _____________, was enacted to assure the _____________ receive meaningful information concerning the true coast of credit.
Truth-in-Lending Act, consumers.
Regulation ___, published by the Board of Governs of the Federal Reserve, requires that borrowers be clearly shown the cost of credit in both _____ and in _______.
Z, dollars, percentages.
The __________ (FHA) does not make loans. Instead, it ______ loans made by approved local lenders.
Federal Housing Administration, insures.
______________ (also known as ____ ) was introduced by the Mortgage Guarantee Insurance Corporation (MGIC) in 1957 ans is currently available from several competing firms. Federal lending regulators usually require the insurance when the loan amount exceeds ___ percent of the value of the property.
Private mortgage insurance, PMI, 80.
The word "_____" comes from the Latin "amorte" which means "to kill." The __________, then, is the principal portion of the payment used to repay the loan.
Life insurance companies are the ______________ for financing both apartment projects and commerical properties ( such as ________________).
Largest source of funds, shopping centers.
Nickname Fannie Mae.
Federal National Mortgage Association (FNMA).
Nickedname Ginnie Mae.
Government National Mortgage Assocaition (GNMA).
Nickmaned Freddie Mac.
Federal Home Loan Mortgage Corporation (FHLMC).
The principal secondary lenders are _________ or ___________ agencies and include the following organizations: ________, ________ and _________.
Principle __________ recognizes that no one would pay more for a property than the amoutn necessary to acquire an acceptable substitue. This princple is the basis for all mathematical methods used by apprasiers to estimate value.
_____ is the amount actually paid in a real esate transaction.
The ____________ approach is the real estate market speaking through past sales, and is a direct application of the principle of substitution. The ________ states that is similair or comparable properties are available for sale, the one with the lowest price will attract the greatest demand.
Comparable, princple of substitution.
The subject property is _______ to the comparable, the comparable sales prices is adjusted upward; if the subject property is _______ to the comparable property, the comparable sales price is adjusted downward.
An overimproved property also suffers ________ obolesence since it will not sell in the market for the amount invested.
The _________ approach may be the only approach available to estimate the value of speical-purpose facilities such as schools, chruches, courthouses.
_____ roof are quite common, but have one serious deficiency: in heavy winds, such as a tornado or hurricane, wind can catch the underside of the gable and lift the roof off the house.
The capacity of a heating or AC system is rated in ________ and must be designed based on the number of the cubic feet of space, typical weather conditions, and the level of insulation. Systems are commonly sized as "tons." One "ton" equals _____.
British thermal units (BTUs), 12,000 BTUs.
Areas of a house that present a greater risk of electirical shock require _________(GFIs). There are typically found _______ and in the kitchen and _______.
Appraisals used in a federally related transaction which is administered by the _____.
Florida Real Estate Appraisal Board.
Realtors prepare this, which is a value estimate based on recent sales of similar properties in the same neighborhood.
Comparative Market Analysis (CMA).
A CMA may not be referred to as a(n) ____.
An applicant for a Florida real estate license who is a non resident or licensees who become nonresidents (within 60 days) must file a(n)...
... irrevocable consent to service form with the Department.
Applicants must answer question 1 of their application carefully and disclose all convictions. Failure to answer correctly may result in disciplinary action, including...
... denial or revocation.
If an applicant to take a state examination is denied by the Flroida Real Estate Commission, the applicant must be notified ____ and allowed ___ days to file for a formal hearing.
in writing, 21
This term indicates an individual's right to provide real estate services.
This term indicates the status and place of operation for both individuals and businesses.
This has a no grace period.
All sales associates, including attorneys with a sales associate license, whether actively or inactively licensed, must complete a ____ hr post license course prior to the expiration date of their initial license period.
Failure to complete the post license education will cause the license to become...
... void and the license will be out of business.
To get a new license (if lost due to not doing the postlicense education), he or she would be required to take the ____ hour prelicense course over again and pass another state exam.
An applicant for a broker's license may choose to continue employment in a ___ capacity with a current employer subsequent to passing the state exam.
If an applicant who becomes a broker decides to work under a broker, they have what license?
If an applicant who becomes a broker decides to work under a broker, they are called what?
Does Florida have reciprocity with any other state(s)?
This would allow for licnsees of one state to practice in another state.
Florida has entered into contractual aggreements with a limited number of states recognizing the similarity in the content of their mutual educational and experience requirements.
A nonresident of Florida that has been ____ in another state for ____ year(s) or more who wishes to become licensed in Florida (and the state has mutual recognition) may take a test of ___ questions and get ___ answers right.
actively licensed, 1, 40, 30
A nonresident of Florida passes the mutual recognition exam, do they need to take a prelicense course?
No. But they must take a postlicense course
"For another" indicates the service is being performed for another person or entity, not for the one performing the service. True of False?
What is considered compensation?
Anything that isn't a handshake or a thank you.
If Laura (not licensed) buys a home in Florida for Bob what can she not do?
Laura (not licensed) sells her own home in Florida. Is it legal?
Yes. You need a license if it's for another person.
Persons granted authority under a power of attorney to act for others in some capacity such as signing legal documents.
Attorney in fact.
Persons who may perform legal services on behalf of their clients; tehy may prepare documents, handle closings and give legal advice. They may not perform services of real estate for compensation, be paid sales commissions or referral fees.
Attorney at law.
Subject to the same rules that apply to attorneys at law.
Certified Public Accountants (CPA).
Persons appointed by a court of law to perform sercives of real estate. They may do so for a fee or salary but not a commission.
Court appointees are paid how?
Fee or salary, but not a commission.
Trustees, Receivers, Masters in chancery, court-appointed appraisers are exempt under the category of:
Cemetery lot salespersons are not exempt. True or False?
False. Cemetary lot salespersons ARE exempt.
A sales associate or broker associate must be employed as an agent to a broker or owner-employer ___ performing real estate for compensation.
An individual or entity that is in the business of buying, owning and/or developing real estate.
The owner-employer is ____ with the Department but receives no _____.
Registered, real estate license.
There are seven member of _____.
Florida Real Estate Commission (FREC).
FREC members are appointed by the ___, suject to the confirmation by the _____.
___ members must be actively licensed real estate brokers that have been licensed in Florida for at least ____ years prior to their appointment; ____ member(s) may be any actively licensed real state licensee who had been licensed in Florida for at least ___ years prior to his/her appointment. ____ member(s), also called _____, cannot hold or have ever held a real estate license prior to their appointment. One member must be over ____ years old.
4 members, 5 years, 1 member, 2 years, 2 members, lay members, 60 years old
FREC's executive powers can be exercised by the chairperson alone, delegated by quorum vote, or decided upon by a majority?
Chairman alone OR can be delegated by quorum vote.
This power gives the FREC the power to make and pass rules regulating the operation of licensees and the real estate profession.
The initial license period is how long?
No less than 18 months, no more than 2 years.
All licenses expire on which two dates in the year?
March 31 or September 30.
This replaces a prior license and is requested when a license is about to expire.
The DBPR mails a notice of renewal to the last known address of the licensee approximately how many days prior to the date of license expiration?
Renewals are effective when?
When received by the Department.
The request for a renewal must be made prior to the expiration of the current license to prevent the license from becoming what?
An individual that does not request renewal, pay the required fees or maintain his or her continuing education requirements will automatically be placed in what status?
Sally has missed the deadline for her continuing education. Her license is now...
Lisa didn't pay the required fees by the time they were due. Her license is...
John's license was put on involuntary inactive. He has until what time period to get it changed?
If a broker's license is suspended, revoked or otherwise void or ineffective, the licenses of all persons licensed under such a broker become...
Group license is an actual license. True or False?
Group license is a term used, not an actual license. True or False?
If a licensee decided to no longer practice real estate, he or she could turn the license back into the department. The license would then be...
A sales associate or broker associate may have ____ registered employer(s) at a time.
A single real estate license that can be obtained if the sales associate or broker assocaite works for one owner-developer with affiliated organizations providing real estate services in DIFFERENT GEOGRAPHIC AREAS.
A group license.
A group license is used only if the properties are...
Located in different geographic areas.
What term is usually associated with "brokers only"?
Who can be issued a multiple licenses?
A broker only.
A broker can be issued additional licenses in two or more capacities by requesting what?
Authorized by the employer to perform a SINGLE act.
As of what date in history are all residential real estate professionals required to disclose the Brokerage Relationship Disclosure Act?
October 1, 1997.
A residential transaction is defined as what?
Property with four units or less, vacant land intended for four units or less, agricultural property of 10 acres or less, leases with four units or less, dispositions of businesses with four or less residential units.
The role of a transaction broker is to provide what?