Azure FL Real Estate Pre-Licensing Course REVIEW

Penalties can include: Fines - Up to $_______ for each offense; License Suspension - Up to _____ years; License Revocation - ______________ practice real estate in the state of Florida.

$5,000 for each offense; 10 years; Permanent loss of the ability to practice real estate in the state of Florida.

Business opportunity

(or bizopp) involves the sale or lease of any product, service, equipment ,etc. that will enable the purchaser -to begin a business. It involves not only the sale of the property but the business itself. It may actually be for the sale of a business without the real estate as many businesses operate in locations utilizing a lease rather than purchasing the real estate where the business is based.

Florida Statutes 475: · real estate licensees may perform an appraisal for compensation as long as the appraisal follows USPAP standards,

- appraisal is NOT for federally related transactions, - is not referring to him or herself as an actual certified appraiser. - may collect a fee for an appraisal, it may only be a flat fee and - NOT a commission based on purchase price.

Basic requirements must be met by all applicants for real estate licensure:

-18 years of age or older -high school diploma or equivalent (G.E.D.) -SSN -honest, trustworthy, truthful, of good character. -competent & qualified -Disclose: convicted of a crime; name alias; denied a real estate license application in another state; or license suspended or revoked; been found guilty of any practice or conduct that would have been grounds for suspension or revocation under Florida Real Estate License Law (F.S. 475)

Local government regulates parts of the real estate industry through

1) Property Taxation 2) Zoning 3) Building Codes 4) Building Permits 5) Occupancy Certificates

What are the Limitations to Claims on the Florida Real Estate Recovery Fund (claims that cannot be made against the fund)?

1) real estate license, 2) spouse of a licensee, 3) licensee sued was also the owner of the property; 4) if the defendant didn't have a real estate license, 5) judgments made against brokerage corporations, partnerships, limited liability companies, and limited liability partnerships.

Federal government various federal agencies and regulations that influence real estate ownership:

1. Department of Housing and Urban Development 2. Federals Housing Administration 3. Department of Veteran Affairs 4. Environmental Protection Agency 5. Internal Revenue Service

The state has how many days from the receipt of an application to notify the applicant of any errors or omissions? Under what Florida Statute?

30 days Florida Statutes 120.60

The Florida Real Estate Commission (FREC) is made up of 7 members, what are they?

4 brokers, 1 broker OR associate with (2 proceeding years' experience) 2 unlicensed members.

broker price opinion (BPO)

A broker price opinion (BPO) is the estimated value of a property as determined by a real estate broker or other real estate licensee working under the direction of a broker.

license/registration

A document issued by the Department of Business and Professional Regulation, which certifies that the licensee is or was duly licensed on the effective date shown

A ________ is an individual who has a broker's license, but has chosen to work in real estate under the direct supervision and control of a broker or owner/employer.

BROKER ASSOCIATE

The ___________ license entitles an individual to perform real estate services, for compensation, for the public.

Broker

There are two types of real estate licenses issued in Florida:

Broker Sales Associate

An individual qualified to be issued a broker's license but works under the direction of another broker.

Broker Associate

This area specializes in the marketing and sales of up and running businesses (going concern operations

Business Brokerage or Business Opportunity Brokerage (requires an understanding of both tangible assets, e.g. inventory, and intangible assets, e.g. goodwill

The marketing and sale of a going concern operation

Business Opportunity Brokerage (Florida requires that business brokers have a real estate license to market business opportunities)

Real Estate Services:

Buy, advertise, rent, sell, auction, lease, and exchange (BAR SALE)

Community Association Manager (CAM)

CAMs manage the workings of associations such as HOA. management > 10 units or a budget of >$100,000 must be licensed with the Department of Business and Professional Regulation (DBPR)

Chapter 20 F.S. established ________.

Chapter 20 F.S. created the organizational structure of the Executive Branch of the Florida government, which established DBPR (Department of Business and Professional Regulation) was established to implement policies and oversee professions to be regulated.

General provisions of The Department of Business and Professional Regulation were passed under what Florida Statute, as The Regulation of Professions and Occupations.

Chapter 455 F.S.

Applicants for a Florida real estate license are not required to have Florida residency or United States Citizenship under what Law?

Chapter 455.10 The Regulation of Professions and Occupations, was passed to define the general legal practice and procedures for the DBPR

Civil Rights Act of 1866

Civil Rights Act of 1866 made it illegal to discriminate in the sale or leasing of real estate based on race and without exception

Any form of remuneration, payment, or value; as valuable consideration, which includes benefits other than cash or tangible goods.

Compensation

home is built by a contractor exactly to the specifications of a buyer.

Custom building homes

Real estate sales associates are licensed and registered by the

DBPR (Department of Business and Professional Regulation)

Each prospective licensee must submit to the ______, a completed, notarized application or electronic application, fingerprints, and appropriate application fee.

Department of Business and Professional Regulation, Division of Real Estate

The ______ was established under the DBPR and works in conjunction with FREC.

Division of Real Estate (DRE)

The Recovery Fund can also be used to reimburse a consumer who won a court case against a broker who followed an _______________. •The fund would pay the broker's costs and legal fees. __________ will not be paid.

Escrow Disbursement Order (EDO). Punitive damages will not be paid. In this case, the broker's license would not be suspended.

________ granted the authority to keep records, conduct investigations, and has power to grant, deny, suspend, and revoke licenses.

FREC (Florida Real Estate Commission)

Fair Housing Act (Civil Rights Act of 1968)

Fair Housing Act. prohibit discrimination in the sale, rental, and financing of housing based on race, color, religion, and national origin.

Title VIII of the Civil Rights Act of 1968 is referred to as the ________Act

Fair Housing Act. prohibit discrimination in the sale, rental, and financing of housing based on race, color, religion, and national origin.

Also involved in the governmental regulation of real estate practitioners is the _____

Florida Department of Business and Professional Regulation (DBPR) Division of Real Estate (DRE)

____ was empowered to implement, interpret, and enforce the provisions of Chapter 475.

Florida Real Estate Commission (FREC)

Florida Administrative Code 61J2 established the ________________.

Florida Real Estate Commission rules.

Example, ______________ states that a fee can be charged to a licensee regulated by the DBPR whereas ________________ states how much will be charged for a Real Estate License decided by FREC.

Florida Statute 120; Chapter 61J2 F.A.C (Florida Administrative Code)

Under Florida Statute, Chapter 475 defines as

Governs real estate brokers, sales associates, and schools; It regulates the real estate industry, intent to protect the health, safety, and welfare of the public.

3 entities of government which influence real estate decisions:

Local, State, Federal governments: Local - implements zoning laws, building codes, and establish property taxes; State - has implemented many laws protecting our environment and waterfront properties; Federal - various federal agencies and regulations that influence real estate ownership

Chapter 475 F.S. is divided into 4 parts:

PART I: Oversees the regulations of REAL ESTATE BROKERS, SALES ASSOCIATES, AND SCHOOLS (ss. 475.001-475.5018) Part II: " " Real Estate Appraisers Part III: Commercial Real Estate Sales Commission Lien Act Part IV: Commercial Real Estate Leasing Commission Lien Act.

Under Florida Statute, Chapter 475 is divided into 4 areas

Part I: Real estate BROKERAGE Part II: Real estate APPRAISERS Part III: Commercial Real Estate SALES COMMISSION LIEN ACT Part IV: Commercial Real Estate LEASING COMMISSION LIEN ACT

Under Florida Statute, Chapter 20 defines as

Part of the Executive Branch of the Florida government, created The Department of Business and Professional Regulation (DBPR); to implement policies and oversee professions to be regulated.

Florida Resident

Person who has resided in Florida for >4 months

The local government is authorized to enact laws to protect the health, safety, and welfare through its use of:

Police Powers

Evidence that is valid and admissible on its face requiring no further proof of authenticity

Prima Facie Evidence

caveat emptor

Prior to Licensing Law, all risk and responsibility was on the buyer, known as "Let the buyer beware."

main role of property manager

Property manager's role is to protect the owner's investment and maximize owner's returns

Licensees are prohibited from using the term ______ unless they are current members in good standing with local, state and national associations of REALTORS®.

REALTOR®

Acts as a consultant by performing research on the subject real property and its community location, and making recommendations about the subject property's ultimate value.

Real Estate Counselor

Chapter 475 F.S. is called the ________________.

Real Estate Professions Act.

Development

Real estate development is a ​group of similarly constructed ​buildings placed in an ​area by a developer. (The developer will also typically install infrastructure which is defined as the sewer, water, electrical, streets, and storm drains necessary for the support of a development)

Authorization by the state to place an applicant on the register (record) of officially recognized individuals and businesses

Registration

Chapter 20 F.S. regulates________.

Regulation is specifically imposed when the unregulated practice can harm the public, the public is not adequately protected by other laws, and less restrictive means of regulation are not available. By DBPR

Chapter 455 F.S. is known as The ___________________

Regulation of Professions and Occupations (RPO)

5 Major Types of Real Estate; areas of sales that a licensee may specialize in:

Residential, Commercial, Industrial, Agricultural, Businesses

developers must submit a ______ of the proposed project to the applicable local government that will identify where streets and lots will be located.

SUBDIVISION PLAT MAP (Once approved, the Subdivision Plat Map is recorded in the public records of the county where the subject property is located.)

A licensed agent, employed by a broker, receive compensation from the broker

Sales Associate

The _______ license entitles an individual to perform real estate services, for compensation, for the public, but does so under the direct supervision and control of an active broker or owner/employer (developer)

Sales Associate

When a builder builds homes before a buyer is found for the property.

Speculative building Spec homes are when the developer buys lots and constructs homes

3 types of residential constructions:

Speculative homes Tract homes Custom homes

The process of preparing the land site for subdividing the parcel into individual, smaller parcels:

Subdivision

Florida Real Estate Commission "FREC"

The body that oversees and regulates the real estate license law and licensed individuals that participate in the real estate business

Subdivision Plat Map

The layout of a subdivision of land into lots, roads and other infrastructure by the developer to a local government agency Plat map shows the subdivision of land into lots and/or tracts. Typical annotation includes a boundary description, lot dimensions, directional bearings, street names, lot numbers, tracts, easements, and right-of-way.

Property Management

The process of directing, controlling, operating, and maintaining real estate for a third party; "managing" property that is available for lease. Duties include maintaining and handling all the activities of leasing and care of the piece of real estate property.

Real estate licensees may appraise real property provided they do not represent themselves as state-certified, registered or licensed appraisers. True or False?

True

Three phases of development and construction involve:

[1] land acquisition [2] Subdividing and Development, [3] Recording of the Plat Map,

Real Estate Brokerage

a business where a "managing" broker oversees the Broker Associate & Sales Associates that work for the brokerage and provide real estate services to clients for compensation.

Real estate broker

an intermediary between buyers and sellers and tenants and landlords. They oversee the activities of sales agents in a brokerage real estate office. Broker licensed by the DBPR to carry out real estate services. Receive compensation for the services.

All compensation for the property management work done must be paid to?

broker, not directly to the licensee.

There are several major sources of lendable funds for real estate financing:

commercial banks savings and loan associations, mortgage bankers credit unions, Corporations Private individuals

Developers often___________ land to a governmental body for public use when developing land.

dedicate

Appraisal

estimate of the value of property

State government

implemented many laws 1. Document Stamps 2. Taxes 3. Protected areas 4. License Law

Adjudication Withheld

instead of actually having been found guilty by a judge, a person is put on probation. When a criminal final judgment is withheld or not recorded in public record.

Non-resident applicants must sign an ______ in order to be issued a Florida license, which means that the applicant agrees that Florida courts and Florida authorities have jurisdiction over any matter relating to the license.

irrevocable consent to service

Chapter 120 Florida Statute

is the Administrative Procedure Act. It established procedural and discipline processes for licensees under the DBPR.

MLS (Multiple Listing Service)

is where information about houses for sale listed by real estate agents are compiled into an online database. The information is shared with other agents through the system.

Chapter 455 F.S.

known as The Regulation of Professions and Occupations; passed to define the general legal practice and procedures for the DBPR

Subdivision plat maps

maps show how land will be developed with details: lot lines, lot dimensions, directional bearings, street names, lot numbers, tracts, easements, Right-of-ways.

A sales associate can only place their license with how many employer at a time?

one

Land Acquisition

process of acquiring the land that will be developed.

appraiser

professional who has the knowledge and expertise necessary to estimate the value of property

Chapter 475 F.S. is called the Real Estate Professions Act. It regulates the real estate industry to ______________________

protect the health, safety, and welfare of the public.

1988 amendment to the Fair Housing Act added protection from ______

protection from discrimination based on familial status and handicap status.

Per Florida Statutes 177.091, plat maps must be recorded into the ______________

public records.

5 major sales specialties of a real estate brokerage include

sales and leasing property management property valuation financing counseling

USPAP (Uniform Standards of Professional Appraisal Practice)

standards, rules and guidelines that must be followed by any professional conducting an appraisal.

To conduct these services without a real estate license is "practicing real estate without a license and is punishable as what degree and under Florida Statutes

third-degree felony. Florida Statutes 475

The reason appraisers are not compensated on a percentage of the subject property's value is:

to avoid a conflict of interest situation

Dedication

voluntary transfer of land by its owner for public use and accepted for public use such as for streets or schools.

Florida Statute 455 granted the DBPR the legal powers to

•Investigate complaints •Issue subpoenas •Issue cease and desist orders •Issue citations

Comparative Market Analysis

An informal estimate of market value performed by a real estate licensee for the seller to assist in arriving at an appropriate listing price, or if working with the buyer, an informal estimate of market value to assist the buyer in arriving at an appropriate offering price

Property Manager:

Anyone who is paid a commission or paid on a transactional basis for conducting property management services must be licensed. involves finding tenants to occupy the space, collecting monthly rental payment, maintaining the property, and upkeep of the grounds.

Exempt from CAM licensure:

Apartment complexes, commercial, single-family properties

Property management has become a growing industry in Florida due to the increase of:

Absentee Owners

Under Florida Statute, Chapter 120 defines as

Administrative Procedure Act; 1. procedural process for all governmental agencies in Florida (Regulate the regulator); 2. established discipline procedures for licensees. 3. hold FREC and licensees to specific standards

Nolo Contendre

A plea of no contest entered in a criminal court of law; same as "plea of guilty"

Follow-Up

A post-closing communication initiated by a licensee to maintain customer contact and goodwill "touching" farm area individuals monthly or on a regular basis with mailings, emails, door hangers, etc.

Absentee Owner

A property owner who does not reside on the property and who usually relies on a property manager to oversee the investment

Farm Area

A selected and limited geographical area/ neighborhood to which a sales associate devotes special attention and study cultivating buyers and sellers

special purpose property

A special purpose property is a property that is designed specifically for one type of use. unique design and layout which makes it difficult to use the property for another purpose without a major redesign.