Aceable Agent FL RE Course
43% of $5,000 is equal to $2,150. If you subtract Johan's student loan debt from that number, you get the highest monthly payment Johan will be allowed, which is $1,650.
Johan has a monthly income of $5,000. He also has a monthly student loan payment of $500. The mortgage he wants to take out limits the borrower's debt-to-income ratio to 43%. What is the highest monthly payment Johan will be allowed?
This is correct. If a state uses it, a Torrens certificate is the absolute BEST form of title evidence. If a Torrens certificate cannot be obtained for a property, then title insurance serves as the second best evidence of title. These are followed by an opinion and certificate of title.
Kae is a broker. She asks her sales associate to collect evidence of title for the property they are working with. They bring Kae evidence of title in the form of: A Torrens certificate An opinion of title A certificate of title Title insurance Rank the types of evidence of title the sales associate brought Kae from the best to the worst.
The FREC has 30 days to check for errors and omissions in applications and notify the applicant about the issue.
Kaitlyn is applying for her Florida sales associate license. How many days does the FREC have to notify her of any errors or omissions in her application?
Voluntarily giving up a license is called canceling it, not ceasing to be in force. Most likely, Kat changed her employing broker without notifying the FREC within 10 days. Licenses cease to be in force in situations where license holders fail to notify the FREC of important changes.
Kat's sales associate license ceases to be in force. What is the most likely cause for this license status?
Sometimes a license application is denied for, well, sloppiness. A license application can be denied by the FREC if the applicant fails to fill out the application completely. In these cases, as long as the applicant corrects the errors, they can reapply.
Kate doesn't fill out all of her license renewal application. What is the likely consequence?
A legal description does not need to cite the owner of the home. Furthermore, a street address like this one does not count as a legal description for a property in official documents like contracts and deeds. Legal descriptions must be determined via metes and bounds, lot and block, or the government survey system.
A property that is being sold is exclusively identified on the sales contract as 24029 Wisteria St., Naples, FL 34101. Is this a valid legal description?
Many clients will need third-party financing, which can come from commercial banks, savings associations, credit unions, and mortgage brokerage companies.
A sales associate needs to direct their client to a few sources of third-party financing. You tell the sales associate to look into:
The monthly cost of the HOA fees is $128 ($1,536 ÷ 12 = $128). So, if the buyer owes the seller for 5 months, you just need to multiply $128 by 5. That equals $640.
A seller paid $1,536 in HOA fees at the beginning of the year. The buyer closed on the property and took possession with exactly 5 months left in the year. Using the 360-day calendar, how much would the buyer owe the seller in prorated HOA fees?
One section equals 640 acres, so to find the total number of acres in 4 sections of land in a township, use the formula 640 acres x 4 = 2,560 acres.
;Williams Family Farms purchased 4 sections of land in a township. How many acres did they buy?
Use the IRV formula: Net operating income (I) ÷ Capitalization rate (R) = Value (V). So, $250,000 ÷ 0.04 = $6,250,000. The building's value is $6,250,000.
A building has an NOI of $250,000 and a cap rate of 4%. Using the income approach, what is the value of the building?
A special warranty deed protects against defects that occurred while the grantor held title. A quitclaim deed is a type of deed that conveys any interest, title, or right to a parcel of land the grantor has at the time the deed is executed, but those interests are uncertain.
A client is purchasing a house that was sold in a tax sale three years ago. The seller is very enthusiastic. They agree to convey: Interests Title Rights But it sounds too good to be true. You ask the seller if they can guarantee what they agree to convey. When they say no and tell you they can make almost no guarantees, you know they will be using a:
Under the Florida Residential Landlord and Tenant Act, if the tenant does not reply to the landlord objecting to the claim within 15 days after receipt of the landlord's notice, the landlord will collect the claim and must mail the tenant the remaining deposit, if any.
A former tenant receives written notification 15 days after their move-out that the landlord intends to use part of their security deposit to pay for damages caused by the tenant. How long does the tenant have to file an objection to the landlord's claim on the security deposit?
Bert Applebee is a mortgage broker. A mortgage broker is a licensed professional who connects buyers to mortgage loans that are then financed by a lender.
A homebuyer is looking to find a mortgage. He goes to the office of Bert Applebee, who presents him with some options for mortgages. The homebuyer chooses one he likes, and Bert contacts the lender and negotiates the terms for the homebuyer. The lender then originates the loan for the homebuyer. What job does Bert Applebee most likely have?
Because Florida is a lien theory state, the borrower will sign a mortgage instead of a trust deed.
A homebuyer is taking out a loan to purchase a home in Florida, which is a lien theory state. The lender has them sign a promissory note and what other document?
The tenant should deliver WRITTEN notice to the landlord, stating that if the landlord doesn't fix the window in SEVEN days, they will move out. This is per the Florida Residential Landlord and Tenant Act.
A landlord has not repaired a broken window in a tenant's unit, even though the lease states that all repairs must be made within a week. What should the tenant do?
It looks like you didn't subtract the earnest money. Remember, that money has already been paid as a deposit, so it will be subtracted from the amount the buyer will need to bring to closing. The buyer will need to bring an additional $93,000 to the closing. First, calculate the loan amount using the formula for solving for part: Total x Percentage = Part. ($350,000 x 0.70 = $245,000). Then, subtract the earnest money and the loan amount from the purchase price: $350,000 - $12,000 - $245,000 = $93,000
A property is sold for $350,000. The buyer has paid $12,000 in earnest money and is obtaining a 70% loan. Based on the information provided, how much additional cash will the buyer have to bring to the closing day?
General agency is the appropriate classification of agency for property managers because they have a broad range of ongoing responsibilities related to a specific concern and they require the ability to bind the client (renter) on behalf of the owner.
A property manager handles a variety of jobs on behalf of the property owner, including the ongoing responsibility of maintenance, rent collection, and signing new tenants to lease contracts. Which of the following classifications of agency is therefore appropriate for a property manager?
Under the Florida Residential Landlord and Tenant Act, the tenants' security deposits and advance funds need to be transferred to the new property management company, along with an accounting of how much should be credited to each tenant.
A property owner decides to use a new property management company to manage the apartment complex she owns. What needs to happen?
This is incorrect because the storage area is a limited common element (meaning jointly owned by all of the condo owners but only used by Maribel). That means the HOA or condo association is responsible for repairs.
Maribel owns a condo that has exclusive use of a storage area in the basement. If a pipe breaks in the basement and the storage area floods, who is responsible for paying for repairs to the floor?
Under the Florida Residential Landlord and Tenant Act, the landlord must give the tenant written notice demanding either payment of rent within THREE business days or else the tenant will lose possession of the premises (i.e., be evicted). The written notice can be mailed, personally delivered, or if the tenant is absent from the premises, left at the residence. The three-day time limit begins at the date of notice delivery and does not include Saturday, Sunday, or legal holidays.
A tenant does not pay rent on the required day. The landlord sends them a written notice stating that they must pay the rent within a certain number of business days, or the landlord will start eviction proceedings. What is this number of days?
Tax requirement ÷ Tax base = Tax rate. Find the tax base first, which is Total assessed value - Total exemptions = Tax base. That's $60,000,000 - $9,000,000 = $51,000,000. So, 225,000 ÷ $51,000,000 = 0.0044 = 4.4 mills
A town has a total assessed value of $60,000,000 and total exemptions of $9,000,000. If the town's budget is $225,000, what is its tax rate?
There's a three-day cancellation period with resale condos.
Addie is buying a condo from a former owner. How long after receiving her condo documents and signing the contract does she have to cancel the contract?
Applicants must disclose all arrests, guilty pleas, traffic incidents, nolo contendere pleas, and items still under investigation. They also need to provide court records and character letters with the application.
An applicant for a sales associate license is filling out their application. A few years ago, they were arrested for a misdemeanor and pled guilty. Since then, they have served out their probation and not had any more legal issues. What should this applicant do regarding their criminal history as part of their application?
A farm area is a specific area that a real estate associate chooses to specialize in and become an expert in. Farm areas can look different. Maybe it's a certain area of town, or maybe it's an area with only industrial properties.
Target marketing involves agents utilizing a farm area. Which of the following describes an agent utilizing a farm area?
Fixtures can often be a source of confusion or contention in a real estate transaction. Corey should talk to the seller about the light fixtures. Then, if the seller agrees to leave them, he should get it in writing in the contract.
Arnav is interested in a residential property because he loves the antique light fixtures installed in every room. Corey is the license holder helping Arnav find a property. What is Corey's responsibility regarding the light fixtures?
The Florida Real Estate Commission is not made up of volunteers. Aurora is most likely a member of the local planning board. This group is made up of appointed volunteers who are not required to be professional city planners.
Aurora has no formal training in urban planning, but she volunteers her time to represent her community and make decisions about its future growth. Aurora is most likely a member of the:
An acknowledgment is a party's notarized profession that they are signing a document voluntarily. Consideration is something of value exchanged by the parties as evidence of agreement to the terms of a contract.
Baruch states in the contract that he will pay $350,000 for a property. The $350,000 is the:
There is no disclosure requirement for a single agent relationship in a nonresidential transaction. Agricultural property in excess of 10 acres is considered nonresidential. Therefore, Broker Casey acted appropriately in not using the disclosure form.
Broker Casey entered into a single agent relationship with Jane to sell her 13-acre ranch. He did not provide her with a written brokerage relationship disclosure. Was that an error on his part?
In a back-n-forth negotiation, the parties can change out roles from offeror (the person making an offer) to offeree (the person receiving the offer). That happens when the original offer is responded to by a counteroffer, which is a rejection of the original offer and a new offer all in one.
Buddy thinks one of Holly's marbles would be a great addition to his collection. As offeror, Buddy proposes a swap: two of his blue marbles for one of her green marbles. Holly listens to Buddy's offer and then counters with her own: one of her green marbles for two of Buddy's blue marbles AND one red marble. What are the roles played by each party to this marble negotiation?
Common Law
Can be traced back to customs and precedent established by court decisions over the centuries in England
Large residential properties typically require a large amount of hands-on management and upkeep. The advantage is that the residential property market is less volatile than commercial markets.
Carmela is part of an investment group that wants to purchase a property. She's debating between a large residential development and an office space. When you're laying out the pros and cons of each kind of property, what is one advantage of residential property you would share with her?
The DBPR can issue a notice of noncompliance for a first-time, MINOR violation by a licensee. A violation is considered minor if it does not result in economic or physical harm to a person or adversely affect public health, safety, or welfare or create a significant threat of such harm.
Catherine, a broker, receives a notice of noncompliance from the DBPR. This means that her violation was:
Being a salaried employee is not relevant. Cemetery lots are not considered real property in Florida, so Chapter 475 doesn't apply to Cathy.
Cathy, a non-license holder, works for a cemetery as a salesperson. In addition to her salary, she gets an annual bonus for every cemetery lot she sells. Is Cathy in violation of Chapter 475 F.S.? Why or why not?
Property taxes in Florida
Cities, counties, and school boards, as well as special tax districts, levy property taxes in Florida. Property taxes are ad valorem taxes, which means they are based on the assessed value of a property.
A joint venture is a temporary business arrangement used to complete one or a fixed number of transactions. It cannot be registered as a brokerage.
Clarissa and Miguel, who are not spouses, create a temporary business arrangement to complete a single business transaction. They want to register as a brokerage. Is this allowed?
The price per square foot is $100. So, 200 fewer square feet in a property would mean $20,000 less in value. So, the subject property is valued at $280,000.
Comp 1 is 3,000 sq. ft. and was sold for $300,000. The subject property is 2,800 sq. ft. If that was the only difference in the properties, using the sales comparison approach, what would the value of the subject property be?
First, find the annual interest payment by multiplying $440,000 by 6% to get $26,400. Next, divide $26,400 by 12 to give you a monthly interest payment of $2,200.
Jaselle took out an amortized loan of $440,000 with a 6% interest rate. Her monthly payment is $2,638.02. How much will she pay in interest on her first monthly payment?
Use the formula Asking price ÷ Total sq. ft. = Price per sq. ft. So, $214,000 ÷ 1,100 sq. ft. = $194.55/sq. ft. Jeff is selling his house for $194.55 per square foot.
Jeff is selling his 1,100-square-foot house for $214,000. What's the price per square foot?
Punitive damages are rarely sought or awarded in breach of contract suits, except in cases of fraudulent misrepresentation. , Punitive damages are awarded in unusual cases where the defendant's behavior is viewed as intentional and particularly harmful. The purpose of punitive damages is both to punish the offender and to deter others from this behavior in the future. That's not what will happen here. If the courts rule for specific performance, it compels the party to fulfill the contract as originally agreed. (The most common circumstance where you'll see the remedy of specific performance applied in real estate is with a purchase agreement where either the seller or the buyer sues to force the other party to go through with the sale when the defaulting party would rather pay damages of some sort.) So, if Darla successfully sues Arlo for specific performance, he will be required to fulfill the terms of the contract.
Darla is suing Arlo for specific performance. If she is successful, what will happen?
If this was an internet advertisement, Dean would be required to include point of contact information such as his email address. However, since this is the sign for his brokerage office, it must include his name and the words "Licensed Real Estate Broker" or "Lic. Real Estate Broker." It'd also need to include a trade name, if applicable.
Dean owns a brokerage. His graphic designer tells him to put his name on the entrance sign and nothing else. However, Dean must include:
A client's right to terminate (revoke) an agency agreement at any time with a broker does NOT automatically release the client from liability for doing so. The language of the contract will likely indicate under what conditions, if any, a client might be held liable for early client-initiated termination.
Does a client always have the right to terminate (revoke) an agency relationship agreement at any time with a broker? If so, does this also mean a client could do so without liability?
There are four documents that MUST be given to all condo buyers, whether they are the first purchaser of the unit or a subsequent buyer. They're known as the "condominium documents," and they outline all the important information about the condo buildings and condo association. They are the declaration, the articles of incorporation, the bylaws, and Frequently Asked Questions (FAQs). Resale condos require a condo declaration but not a prospectus.
Ella is buying a condo from the current owner. Which of these documents must the owner give her?
That's the savings on only school taxes. We need to add the savings for city and county property taxes, too. Total exemptions x Tax rate = Property tax savings. If a home has an assessed value above $75,000, the owner gets the base $25,000 exemption plus an additional $25,000 exemption on city and county taxes only. So, let's do school taxes first: $25,000 x 0.0091 = $227.50. (That's what you got! Now keep going!) For city and county, add the mills first to get 18.2 mills. $50,000 x 0.0182 = $910. $227.50 + $910 = $1,137.50
Ella's house assessed for $91,000. The tax rate for city, county, and school taxes was 9.1 mills each. How much did she save in property taxes this year?
FHA-approved lenders
FHA loans are usually funded by:
Real estate licensees can make a claim to the Fund IF AND ONLY IF they were the buyer, seller, lessor, or lessee (as long as they weren't acting in their capacity as a real estate licensee at the time). Other than that, the Fund provides reimbursement to ANY person, partnership, or corporation who has suffered monetary damages (as decided by a Florida civil court) by an agent as part of a real estate transaction.
Farrah, a real estate agent, bought a condo. She did not act as a licensee during the transaction, but hired another licensee to represent her. During the course of the transaction, the agent representing her converted her funds. Farrah sued the agent and received a final judgment against him in civil court. He was unable to pay. Can Farrah make a claim to the Recovery Fund?
HUD requires that the complaint be filed within one year of the alleged violation.
Fran wants to file a fair housing violation with HUD. How long does she have, from the alleged violation?
Oral contracts can be valid and legally binding. This is not a contract because there is no evidence of the exchange of consideration. Here's how it works: Even though Fred and Barney came to an agreement that Fred would move into Barney's guest room, we have no knowledge of any consideration being offered by Fred in exchange for this privilege. Without consideration, an agreement or contract is not legally binding. The legal philosophy behind this is that a person cannot do something of value without receiving something of value in turn. So, at this point, this arrangement does not constitute a valid contract.
Fred wants to live in the guest room of Barney's flagstone townhouse. Barney verbally agrees to let Fred move in — even though there has been no discussion of what Barney gets out of this arrangement. Has a valid, legally binding contract been entered into?
The obligation of confidentiality does not terminate when employment terminates.
Graciela is leaving Atlas Realty and moving to another brokerage. She can't wait to tell her new brokerage all the details about her most recent transaction at her old brokerage. Graciela should remember:
Real estate is land and improvements. Real property is land, improvements, and the bundle of rights.
How is real estate different from real property?
A 30-year mortgage will include 360 monthly payments.
How many monthly payments will be made in a 30-year mortgage?
You may have calculated the wrong part, let's check: First, find the amount lost on the sale. $300,000 - $250,000 = $50,000. Now, use Part ÷ Total = Percentage. This results in $50,000 ÷ $300,000 = 0.17, or 17% loss.
Hydra purchases a house for $300,000. A year later, she sells her house for $250,000. What is Hydra's percentage loss?
Jim and Bob's lifelong friendship, coupled with Jim's announcement of his raise, are both factors that could lead to an implied agency relationship.
Jim and Broker Bob are lifelong friends. A year ago, Jim told Bob that he'd sure love to move into a bigger house, but he'd need to make more money. Today, during their weekly pickleball match, Jim informed Bob that he got a raise. Which of the following BEST explains why implied agency could arise from this scenario?
Joey's agency agreement terminated as result of an "operation of law" known as "destruction." Peter ended his agency agreement through "acts of the parties," specifically by what is known as "revocation."
Joey's agency agreement ended when the home he was going to purchase washed away in a flood. Peter terminated his agency agreement because he didn't trust his broker any longer. What can be said of Joey's and Peter's causes for agency termination?
While handling tenant conflicts might be one responsibility of a property manager, it is not their primary concern. Property managers have many responsibilities, but their most important responsibility is to realize the highest return possible on the owner's investment.
Ileanel is starting a new job as a property manager. She asks you for advice on what she should focus her efforts on. You tell her:
A contract for deed is a sales contract in which the buyer pays the seller for the property in multiple installments for a predetermined length of time. It's also known as an installment sales contract or land contract. The buyer receives equitable title until they pay their final installment to the buyer. Then they get legal title.
In a contract for deed, what does the buyer receive (until they pay off the entire loan)?
In lien-theory states like Florida, borrowers of traditional lender-financed mortgages hold the deed during the life of the loan. This is not true, however, with seller-financed, installment sales contracts. (In an installment sales contract, the seller takes on the role of a lender, accepting a down payment on the purchase price of a property with scheduled installment payments.) During the life of this type of loan, the buyer holds equitable title to the property, while the seller retains legal title in trust for the buyer until the loan is paid in full.
In lien-theory states like Florida, a borrower holds the deed to a property during the life of a traditional lender-financed loan. Carmen, however, only has equitable title to her Florida condo until she pays off her loan. What is the best explanation for this?
For a complaint to be investigated, it needs to be in writing and legally sufficient. A complaint does not need to concern a violation that occurred in Florida, or concern real estate. It can be anonymous or confidential.
In order for the DBPR to investigate a complaint, the complaint must be:
The fact that there are two parties and in an in-house transaction means that this must be a nonresidential transaction with designated sales associates. This is only allowed if the parties have assets equal to or in excess of one million dollars.
In what kind of in-house transaction can there be two parties, each with a licensee providing fiduciary levels of representation? What would that tell you about the assets held by the two parties?
You definitely do need a license to sell single-family homes unless you are the owner of the home. Because Ingeborg is the owner of the property she sold, it is allowed under Chapter 475.
Ingeborg is selling her Florida home. She is not licensed to sell real estate in Florida. Is this allowed under Chapter 475, F.S.? Why or why not?
Jack's broker is obligated to present all offers, regardless of how the broker feels about them. (The only exception to the "present all offers" rule is if the client explicitly instructs the agent not to present offers that don't meet the client's criteria.) The broker is not obligated to present the offers in any particular order.
Jack's broker received three offers on Jack's cottage. The first was a full-price offer without any conditions or contingencies. The second offer was insulting, really... just a handful of beans. The third and last offer was a full-price offer, contingent on Jack not removing the beanstalk from the property when he moved out. What are the obligations of Jack's broker?
It looks like you added instead of subtracting. To find the equity that Larissa holds, simply subtract the debt from the value of the property. She owns $210,000 of the property (640,000 - 430,000).
Larissa owns a property worth $640,000. She owes the bank $430,000 on her mortgage. How much equity does Larissa currently have in the property?
Jenny and Tom had not entered into any type of agency agreement, gratuitous or not, but they allow the impression of agency to exist — which hurt the buyers. If the courts find Jenny and Tom liable for the buyers' damages, it will be ruling that agency by estoppel exists. (Agency by estoppel is created AFTER the actions giving the impression of agency have already occurred. It is used to create legal accountability for the agent or the principal responsible for creating the impression of agency when that impression hurts a third party. Both Jenny and Tom gave the buyers the impression that Jenny was representing Tom when she showed them Tom's place.)
License Holder Jenny knew her neighbor Tom was considering selling his house. Although Tom hadn't entered into an agency agreement of any type with Jenny, he also didn't object when Jenny brought clients by to see his place. Things got ugly, though, when some buyers made an offer on Tom's house only to hear it really wasn't for sale. The buyers, who missed out on the opportunity to make an offer on another home because of their interest in Tom's place, sued both Tom and Jenny. What form of agency might be used as the legal basis for the buyers' lawsuit?
Commercial banks provide financial services to the general public and businesses. Maddy is a mortgage broker and mortgage brokers do not work for commercial banks but connect buyers to lenders. Mortgage brokers are middlemen (middlepeople) who are paid a finder's fee (usually paid by the lender) for connecting the buyer to different financing options.
Maddy works in the real estate finance industry. She connects buyers with different mortgage options and tries to make real estate deals happen. She knows the various lending options out there for buyers. What does Maddy work for?
This is incorrect because a certificate of occupancy does not address the number of occupied units. A certificate of occupancy indicates that the building has passed its final inspection and can be occupied.
Magnolia Point is a newly constructed apartment complex that just received a certificate of occupancy. What does this mean?
Suspension of telemarketing rights is not a penalty associated with violating Florida's Telemarketing Act. The penalty for violating Florida's Telemarketing Act is $10,000 per call.
Manuela violates Florida's Telemarketing Act by calling several hundred people who are on the National Do Not Call Registry. What penalty will she likely incur?
To calculate the PITI/mortgage payment, first find the monthly insurance ($2,220 ÷ 12 = $185) and property tax amounts ($4,200 ÷ 12 = $350). Then add each of the monthly payments together: $185 + $350 + $1,250 = $1,785
Marcel is a homeowner. His monthly principal and interest payment is $1,250. His annual insurance payment is $2,220. His annual property taxes are $4,200. Calculate his monthly PITI/mortgage payment.
To find the debt-service ratio, just divide the NOI by the debt service. For Misha, that equals 2.5.
Misha is applying for a commercial mortgage so she can finally open up a laser tag facility. She is able to convince the lender that the facility will have a net operating income (NOI) of $500,000 per year. This, along with an annual debt service of $200,000. What is Misha's debt-service ratio?
This is incorrect because zoning happens on a city level, not a state level. Monique will need to get the site plan approved by the city planning board.
Monique is a developer working on a new event center for the city. Who does she need to approve the site plans?
Causes for agency termination under the operation of law include performance; expiration; destruction or condemnation; death, incapacitation, or bankruptcy; and loss of broker license. Causes for agency termination under acts of the parties include mutual agreement, revocation, renunciation, and breach of agreement.
Mutual agreement, revocation, renunciation, and breach of agreement are all causes for termination of agency due to:
The alienation clause triggers the right of the lender to demand payment in full of the loan upon the sale or conveyance of the property; aka the due on sale clause. The satisfaction of mortgage clause requires the lender to remove the lien and record the satisfaction of the mortgage once it has been fully paid off.
Yolanda is a homeowner with a mortgage. She paid it off. What is the clause that requires the lender to remove the lien from her property, now that she's repaid her debt?
A marketable title is a title that is free from significant encumbrances or defects (such as liens) that might otherwise prevent a purchaser from enjoying or eventually selling the property.
Odonis' client is concerned about the marketability of their title. Odonis advises that if they want their title to be marketable, they need to focus on clearing up all:
Yes, the contract was discharged due to expiration. However, when the expiration date in a contract passes, the contract discharges as an operation of law, not acts of the parties. Remember, when contracts are discharged by operation of law, they are discharged as a result of the application of law without regard to the desires, intent, or agreement of the parties — as opposed to acts of the parties, which DO reflect the intent of at least one of the parties to the contract.
On New Year's Day, Emily signed a six-month listing agreement with Broker Blake to sell her home. As of July 1st, a buyer had not been found. Do Emily and Blake still have a contract, or has it been discharged? If so, for what reason and how would it be classified?
Use the following formula to calculate the percentage put down on a property: Down payment ÷ Purchase price = Percentage down. $85,000 ÷ $320,000 = 0.265, or 26.5%
Ozzy bought a house. He put down $85,000. The purchase price of the house was $320,000. What percentage did Ozzy put down?
[(Front feet x Amount per linear foot) x Owner percentage] ÷ 2 = Street paving assessment. [300 ft. x 22) x 0.55] ÷ 2 = $1,815. Remember, we divide by 2 to account for the fact that the homeowner only pays for their half of the street. The homeowner on the other side of the street is responsible for the other half.
Paul's street is getting paved. His lot is 300 ft. by 500 ft. It will cost $22 per linear foot for the city to pave the street, and the city is paying 45% of the total cost. How much is Paul's special assessment?
This comp is too far away. The three-bedroom, three-bath, ten-year-old property located a quarter-mile away that sold four months ago is the best option. The others are either too far away, too old, or too dissimilar.
You are doing a CMA on a four-bedroom, three-bath, five-year-old property. Choose the BEST comp for that property from this list:
A thin market indicates that there are few buyers and sellers in an area. An increase in building permits means that there will be an increase in supply.
Real estate licensee Jamie discovers that there is an increase in the number of building permits being issued in her town. What can she expect will result from this?
Under the Florida Residential Landlord and Tenant Act, here are the steps for eviction: 1. The landlord delivers notice to the tenant of their eviction. 2. If the tenant doesn't leave in the allotted time, the landlord must file a complaint for eviction in the court of the county where the dwelling is located. Typically, the sheriff's department delivers the complaint to the tenant. 3. The tenant has five days to file a response in defense. The tenant can try to defend for their continued possession, in which case the courts will have to render a judgment. 4. If the tenant doesn't answer the complaint but stays on the premises, the landlord must get a final judgment from the court. 5. If the judgment is in favor of the landlord, the landlord can gain possession after a 24-hour notice is posted on the dwelling. 6. At the time the sheriff executes the writ of possession or at any time after, the landlord or their agent may remove any personal property found on the premises to or near the property line. The landlord may request the sheriff to stand by to keep the peace while the landlord changes the locks and removes the personal property from the premises.
Tenant Tiffany receives an eviction notice from her landlord. However, she refuses to leave. What is the NEXT step the landlord should take?
The disclosure of facts that are not readily observable that could materially affect the value of a property is a duty that licensees have in all of the approved brokerage relationships in Florida, including a no brokerage relationship. Ira's awareness of radon gas in the area where the house is located could affect property value and must be disclosed.
Sales Associate Ira has entered into a no brokerage relationship with Buyer Gwen. The home that Gwen is looking at is in an area where many houses are known to have issues with radon gas seeping in through the basement. Ira knows that the seller had it tested and small amounts of radon were detected. Select the statement that BEST describes Ira's duties to Gwen.
Lawful objective means that the contract cannot require any illegal activities or outcomes. When a contract contains lawful objective, it takes all necessary laws and statutes into consideration. Romeo and Juliet are in the blissful contractual condition known as "offer and acceptance" or "the meeting of the minds," which simply means that all the terms and conditions needed for full acceptance of the offer have been agreed upon — even if it took some back-n-forth of offers and counteroffers to get there.
Seller Romeo and Buyer Juliet have finally agreed in principle to all the conditions and terms of a sales contract for Romeo's palace. For a while there, it appeared that Juliet's request for the addition of a moat was going to be a deal-breaker. But once the parties settled that point of contention, everything else fell into place. What is the essential element of a contract illustrated in this scenario?
Licensees who specialize in industrial real estate will likely need to focus on the challenges associated with owning properties such as manufacturing plants, distribution facilities, or storage facilities. Licensees who specialize in agricultural real estate will need to stay on top of the challenges associated with farm ownership.
Some sales associates will need to have expert knowledge of the economic challenges some farms may have. These sales associates likely specialize in what type of real estate?
A multiple offer situation occurs when more than one party submits an offer on a single property. There could be two people, or, in some hot markets, more than 10 people all trying to buy the same home. That's not what's happening here, as Stevie's revised offer is a counteroffer. A counteroffer is considered a rejection of the original offer, meaning the original offer dies with the submission of a counteroffer. A counteroffer is basically a new offer!
Stevie receives an offer for his house. He takes part of that offer and adds new language. He sends it to the buyer. This revised offer:
Granting licenses is a quasi-judicial FREC power. Determining fee amounts for applications and exams is an example of one of the FREC's executive powers
The FREC has executive, quasi-judicial, and quasi-legislative powers. Select the FREC duty that would be categorized as an executive power.
Let's check the math: You paid $180,000 for the lot. (2 acres x $90,000 = $180,000.) After subdividing and selling each lot for $40,000, you make $160,000 ($40,000 x 4 = $160,000). You lose $20,000 on the sale ($160,000 - $180,000 = -$20,000). Part ÷ Total = Percentage, so $20,000 ÷ $180,000 = 0.11, or 11% loss.
You purchase a two-acre lot at $90,000 per acre. If you subdivide the lot into four lots and sell each of those lots for $40,000, what will your percentage of profit or loss be?
Alfie bought the home subject to the mortgage. (A property sold subject to the existing loan retains its original loan. The seller is responsible for making the payments to the bank, and the buyer makes the payments to the seller. The seller transfers the title to the buyer, but retains responsibility for the loan. The bank does not sign off on this agreement — it is done under the table between the buyer and seller.) Alice is the only one who assumed the loan. (Assumption is when a buyer takes over a loan from a seller with the lender's permission. The loan is officially transferred to the buyer with the title of the property, and the buyer makes the remainder of the loan payments.) The difference between assuming a mortgage and buying subject to is that the lender is not aware of Alfie's subject-to mortgage, and did not approve the transfer.
Which of these situations BEST describes a buyer assuming a mortgage?
The statute of frauds, the statute of limitations, and the doctrine of laches all have the potential to render unenforceable an otherwise valid contract. They do not create a condition wherein an invalid contract becomes valid.
The statute of frauds, the statute of limitations, and the doctrine of laches all have the potential to:
A rising supply paired with stable demand creates a renter's market. Rent rates should go down now that there is more supply in relation to demand.
There has been a lot of new construction in Ace City. New apartment complexes have been opening all over town. Assuming that demand remains stable, infer the effect that this will have on rent prices.
What is the difference between a sublease and an assignment?
This is incorrect because a sublease does not need to be reconfigured to fit two tenants. The difference between a sublease and an assignment is a sublease does not release the original tenant from responsibility, while an assignment does.
As a rule of thumb, each point a borrower pays increases the lender's yield by 1/8 of 1%, or 0.125%.
Trina decides to pay one point in order to lower her interest rate. How does Trina paying one point affect her lender's yield?
Total sq. ft. ÷ 43,560 sq. ft./acre = Acres. So, 400,000 sq. ft. ÷ 43,560 sq. ft./acre = 9.18 acres. Then, multiply by 20 to find the occupants per acre: 9.18 acres x 20 occupants/acre = 183.65 occupants. Since you can't have 0.65 renters, the maximum is 183 occupants.
Urban Homes purchased a lot in order to build a new apartment building. The lot is 400,000 sq. ft. City regulations dictate that there can be density no greater than 20 occupants per acre. What's the maximum number of occupants this lot can accommodate?
It looks like you multiplied the sales rate by the operating expenses before subtracting that total from the fixed rent. To calculate rent under a percentage lease, use the formula: Fixed Rent + (Overage x Sales rate) = Rent. $1,200 + ($5,000 x 0.03) = $1,350
Virginia leases a property through a percentage lease. Her base rent is $1,200. In June, her property earns $5,000. Last month her rent was $3,000. 3% of her monthly sales go towards rent. Her operating expenses are $450. How much did Virginia pay for rent in June?
Offering tax preparation services for borrowers is not something lenders do. Collecting property taxes in an escrow account and paying them for the borrower ensures that a tax lien won't take priority in case of default.
What is one way lenders prevent other liens from hopping ahead of them in the debt priority line?
In markets where sales prices are high, supply will increase as more sellers are motivated to fetch higher prices. Demand will decrease as fewer buyers are willing to pay high prices.
When the price of real estate is high in a given market, what can you predict about supply and demand in that market?
This is incorrect because building codes are enforced by local government. The main difference between zoning ordinances and building codes is that zoning deals with the use of land, whereas building codes deal with building design and safety.
Which of these accurately differentiates between zoning ordinances and building codes?
Multiple people can't own a property in severalty. Ownership in severalty means sole ownership, so Roy is the owner in severalty.
Which of these describes a property held in severalty?
The cash flow statement shows how much cash is being generated in a set time period and how it's being used to cover a company's debts.
Which of these financial documents will show you how much cash is being generated in a set time period and how it's covering that company's debts?
Melissa is giving her neighbor a license (or possibly an easement, depending on the level of formality). The correct answer is Marco, the property owner selling the right to extract gas from beneath his farm to the gas company. Subsurface (or mineral) rights deal with stuff below the ground.
Which of these property owners is exercising their subsurface rights?
Because Steve, Leland, and Stu have the right of survivorship (meaning if one dies, their portion of the property goes to the other co-owners, not their heirs), they have a joint tenancy with the right of survivorship. Cara and Jose are the tenants in common, because they do not have the right of survivorship. If one of them dies, their portion of the property will pass to their heirs, not the other co-owner.
Which of these scenarios BEST describes property held as tenants in common?
The use of designated sales associates in a nonresidential in-house transaction allows a brokerage to offer fiduciary representation to both sides of the transaction under certain circumstances. One of those circumstances is that parties to the in-house transaction must sign a disclosure notice consenting to the use of designated sales associates, and declaring that they are financially eligible (both parties must have assets of one million dollars or more).
Why does each party in a designated sales associate transaction have two disclosures to sign?
positive leverage
borrowing money to extend your investment reach and profits.
